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Salina KS AA (Taxable GO Bonds) 2023-A_600597-20047_MLWTRANSCRIPT OF PROCEEDINGS AUTHORIZING THE ISSUANCE OF $1,000,000 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) Legal Opinion Gilmore & Bell, P.C. Wichita, Kansas 600597.20047\CLOSING DOCS V.2 TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 Gilmore & Bell, P.C. 05/16/2023 $1,000,000 SALINAAIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 CLOSING LIST The transcript of proceedings will be prepared in electronic format unless otherwise noted, for the above referenced issue (the "Bonds"), and distributed as follows: 1. Salina Airport Authority (Salina, Kansas) (the "Issuer") [Original +electronic] 2. Greg Bengtson, Salina, Kansas ("Issuer's Counsel") 3. Attorney General of the State of Kansas [Original] 4. State Treasurer, Topeka, Kansas (the "Paying Agent") 5. UMB Bank, n.a., Kansas City, Missouri (the "Original Purchaser") 6. Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri (the "Municipal Advisor") 7. Gilmore & Bell, P.C., Wichita, Kansas ("Bond Counsel") Document Number PROCEEDINGS AUTHORIZING THE IMPROVEMENTS 1. Airport Authority Improvements • Excerpt of Minutes of the governing body meeting evidencing passage of adoption of Resolution No. 22-02 • Resolution No. 22-02 authorizing Airport Authority improvements • Excerpt of Minutes of the Salina, Kansas City Commission meeting evidencing first reading of Ordinance No. 22-11103 • Minutes of the Salina, Kansas City Commission meeting evidencing passage of Ordinance No. 22-11103 • Ordinance No. 22-11103 authorizing the improvements and issuance of bonds • Summary of Ordinance No. 22-11103 and Affidavit of Publication of Summary of Ordinance No. 22-11103 600597.20047\CLOSING DOCS V.2 i PROCEEDINGS AUTHORIZING THE SALE AND ISSUANCE OF THE BONDS 2. Excerpt of Minutes of the governing body meeting evidencing adoption of Resolution No. 23-06 3. Resolution No. 23-06 authorizing the offering for sale of the Bonds 4. Notice of Bond Sale, Preliminary Official Statement and Certificate Deeming Preliminary Official Statement Final 5. Affidavit of publication of the Summary Notice of Bond Sale in the Salina Journal 6. Affidavit of publication of the Summary Notice of Bond Sale in the Kansas Register 7. Official Statement 8. Continuing Disclosure Undertaking 9. Excerpt of Minutes evidencing adoption of Resolution No. 23-07 10. Resolution No. 23-07 authorizing the issuance and prescribing the form and details of the Bonds 11. Refunded Notes Redemption Documents • Call for Redemption · Notice of Call for Redemption · Paying Agent's Certification CLOSING DOCUMENTS 12. Transcript Certificate Exhibit A -Statement of Cost Exhibit B -Schedule of Outstanding General Obligation Indebtedness 13. Uniform Facsimile of Signature Certificates 14. Authorization of State Treasurer to use facsimile signature and seal 15. Specimen Bond and Bond Printer's Certificate 16. Agreement Between Issuer and Agent 17. DTC Blanket Letter of Representations 18. Rating Letter -Moody's 600597.20047\CLOSING DOCS V.2 ii 19. Closing Certificate Exhibit A -Receipt for Purchase Price Exhibit B -Receipt and Representation Exhibit C -Debt Service Schedule & Proof of Yield LEGAL OPINIONS 20. Approving legal opinion of Gilmore & Bell, P.C. 21. Approval letter of Attorney General MISCELLANEOUS DOCUMENTS 22. Closing Letter * * * * * 600597.20047\CLOSING DOCS V.2 111 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF SALINA AIRPORT AUTHORITY (SALINA, KANSAS) HELD ON MARCH 16, 2022 Gilmore & Bell, P.C. 03/09/2022 The governing body met in regular session at the usual meeting place of the Authority, at 8:00 a.m., the following members being present and participating, to-wit: Present: KRISTIN GUNN, KENT BUER, TOD ROBERG, ALAN EICHELBERGER, and STEPHANIE CARLIN Absent: NONE The Secretary declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) Thereupon, there was presented a Resolution entitled: A RESOLUTION PROVIDING STATUTORY AUTHORITY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE SALINA AIRPORT AUTHORITY FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN CAPITAL IMPROVEMENTS AT THE SALINA REGIONAL AffiPORT AND AIRPORT INDUSTRIAL CENTER Thereupon, Director KENT BUER moved that the Resolution be adopted. The motion was seconded by Director TOD ROBERG. The Resolution was duly read and considered, and upon being put, the motion for the adoption of said Resolution was carried by the vote of the governing body, the vote being as follows: Yea: KRISTIN GUNN, KENT BUER, TOD ROBERG, ALAN EICHELBERGER, and STEPHANIE CARLIN Nay: NONE Abstained: NONE Thereupon, the Chair declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 22-02 and was signed by the Chair and attested by the Secretary. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597.20046-PROJECT AUTIIORIZATION RESOLUTION -HANGAR 606,626 On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the Salina Airport Authority (Salina, Kansas), held on the date stated therein, and that the official minutes of such proceedings are on file in my offi~e. (SEAL) 600597.20046-PROJECT AUTHORIZATION RESOLUTION -HANGAR 606, 626 RESOLUTION NO. 22-02 A RESOLUTION PROVIDING STATUTORY AUTHORITY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE SALINA AIRPORT AUTHORITY FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN CAPITAL IMPROVEMENTS AT THE SALINA REGIONAL AIRPORT AND AIRPORT INDUSTRIAL CENTER WHEREAS, the SalinaAirportAuthority (Salina, Kansas) (the "Authority") is a legally constituted public airport authority, duly created, organized and existing under the Constitution and laws of the State, including specifically K.S.A 27-315 to 27-326 et seq. (the "Act"); and WHEREAS, the governing body of the Authority (the "Governing Body") has considered the need for certain internal improvements as further described herein and found it necessary and advisable to construct such improvements; and WHEREAS, the Governing Body further finds and determines that it is necessary and advisable to authorize the issuance of general obligation bonds of the Authority under the Act to provide funds to pay to pay for the costs of such improvements. THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALINA AIRPORT AUTHORITY AS FOLLOWS: Section 1. Project Authorization. The construction of the following internal improvements is hereby authorized: • The design, construction, acquisition and installation of equipment necessary to construct an aircraft paint facility in Hangar 606 at the estimated cost of $7,900,000 (the "Hangar 606 Paint Facility Project") • The design and construction of improvements to Hangar 626 to house aircraft modification, maintenance, repair and overhaul operations at the estimated cost of $2,500,000 (the "Hangar 626 MRO Project") • The design and construction of improvements to the aircraft apron areas, taxi areas, and employee parking areas associated with Hangars 606 and 626 at the estimated cost of $1,850,000 (the "Hangar 606 & 626 Pavement Project" and collectively with the Hangar 606 Paint Facility Project and Hangar 626 MRO Project, the "Project") Section 2. Bond Authorization. The issuance of general obligation bonds (the "Bonds") of the Authority under the Act in an amount not to exceed $12,250,000 to pay all or a portion of the costs of the Project is hereby authorized. Pending the issuance of the Bonds, the Authority may issue its temporary notes to provide financing for the Projects. The issuance of the general obligation bonds of the Authority is subject to further resolution of the Authority. Section 3. Reimbursement. The Bonds may be issued to reimburse expenditures made on or after the date which is 60 days before the date of this Resolution, pursuant to Treasury Regulation § 1.150-2. Section 4. The Executive Director, the Director of Administration and Finance, Stifel, Nicolaus & Company, the Authority's Financial Advisor and Gilmore & Bell, P.C., the Authority's Bond 600597.20046-PROJECT AUTHORIZATION RESOLUTION· HANGAR 606,626 Counsel, are hereby authorized and directed to take such other action as may be necessary to carry out the intent of this Resolution. Section 5. This Resolution shall take effect immediately upon its adoption. 600597.20046 -PROJECT AUTHORIZATION RESOLU110N -HANGAR 606,626 ADOPTED by the governing body of the Authority on March 16, 2022. SALINA AffiPORT AUTHORITY :--::--1---~~~~",!-~~;.,©,&a::'.'.~~r-- N Chai (SEAL) AITEST:l /j ~ B . -A~ .. e::h~ y. --L.,,F ____ _ Nai~la .. · ich~ Secretary 600597.20046-PROJECT AUTHORIZATION RESOLUTION -HANGAR 606, 626 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON MARCH 28, 2022 The City Commission of the City of Salina, Kansas met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Trent W. Davis, M.D., Mayor, Mike Hoppock, Greg Lenkiewicz, Bill Longbine and Karl Ryan. Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) Thereupon, there was presented an Ordinance entitled: AN ORDINANCE UNCONDITIONALLY APPROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS BY THE SALINA AIRPORT AUTHORITY FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN CAPITAL IMPROVEMENTS LOCATED AT THE SALINA REGIONAL AIRPORT AND AffiPORT INDUSTRIAL CENTER. Thereupon, Commissioner Hoppock moved that said Ordinance be passed on first reading. The motion was seconded by Commissioner Lenkiewicz. Said Ordinance was duly read and considered, and upon being put, the motion for the passage on first reading of said Ordinance was carried by the vote of the governing body, the vote being as follows: (SEAL) Aye: 5 Nay: 0 ************** (Other Proceedings) On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE --- .,, ~ ~ z a. UI " 7A 'I? I E g re 0 (.) 22-0087 II I II I' I, h i, I· ;j I! I l· l I I. l ---- CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS April 4, 2022 4:00 p.m. I I Mayor Davis asked the Clerk for verification that notice had been sent for today's City l Commission meeting. The Clerk replied yes. I ' The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in 1 Room 107, City-County Building. A roll call was taken followed by the Pledge of I Allegiance and a moment of silence. 1 Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Michael i L. Hoppock, Greg Lenkiewicz, Bill Longbine and Karl Ryan. I ! Also present: Mike Schrage, City Manager, Jacob Wood, Deputy City Manager, Shawn :' Henessee, Assistant City Manager, Greg Bengtson, City Attorney; and JoVonna A. ! Rutherford, City Clerk. A WARDS AND PROCLAMATIONS I (3.1) Recognition of the month of April 2022, as Child Abuse Prevention Month in the I city of Salina. Lora Kinner, CAPS Community Engagement Coordinator, read the !j proclamation and announced related activities. I I (3.2) Recognition of the month of April 2022, as Fair Housing Month in the city of Salina. I John Burchill, Human Relations Commission Chair, read the proclamation and J announced related activities. -,, PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME I None. CONSENT AGENDA (5.1) Approve the minutes of March 28, 2022. 11 ,. I Moved by Commissioner Ryan, seconded by Commissioner Hoppock, to approve the consent I agenda as presented. Aye: (5). Nay (0). Motion carried. '! I '! ADMINISTRATION I ll (6.1) Approve Ordinance No. 22-11103, on second reading, unconditionally approving I: the issuance of general obligation bonds by the Salina Airport Authority for the purpose of financing the cost. of certain capital improvements located at the Salina Regional Airport and Airport Industrial Center. Mayor Davis stated Ordinance No. 22-11103 was passed on first reading on March 28, 2022 and no comments have been received since that time. Page I ~ I ,, -~:-~88 ;; ~oved :~:~~~ssio~e:R::,:cond:d by Comntlssioner Lenkie~c~ to approve Ordi~ce No.1 I: 22-11103 on second reading. A roll call vote was taken. Aye: (5). Nay (0). Motion carried. · I 1 22-0089 fl ' 11 fl I i' I lj 11 I (6.2) f Authorize sale of General Obligation Internal Improvement Bonds Series 2022-A I (6.2a) Receive report on bids received on sales of Bonds. 11 1 1· (6.2b) (6.2c) Approve Ordinance No. 22-11102, on second reading, authorizing the I~ i.ssuance an~ de~ivery of $8,195,000 (subject to ch~ge) principal amount of 1 : General Obhgat10n Internal Improvement Bonds, Senes 2022-A. I Approve Resolution No. 22-8041, prescribing the form and details of and 1' authorizing the delivery of $8,195,000 (subject to change) principal amount of General Obligation Internal Improvement Bonds, Series 2022-A. lj Debbie Pack, Director of Finance and Administration, explained the request, fiscal impact and action options. I l David Arteberry, Stifel Nicolaus, provided a report on bids received on the sale of bonds. A short discussion ensued related to bond maturity and the difference between low and high 1' bids. l Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve Ordinance No. l 22-11102, on second reading. A roll call vote was taken. Aye: (5). Nay (0). Motion carried. 22-0090 j Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve Resolution No. Iii j 22-8041. Aye: (5). Nay (0). Motion carried. ii (6.3) Approve Resolution No. 22-8042 and authorize the City Manager to execute a management agreement with Salina Tennis Alliance relating to the operation of the Salina Tennis Facility. Jeff Hammond, Director of Parks & Recreation, explained the request, fiscal impact and action options. A discussion followed which included quarterly financials, calendar of events, flexibility of . annual agreement with Salina Tennis Alliance, management of the tennis facility, I completion timeline, insurance, liability, sales tax, tennis lessons, court reservations and use, j and program scholarships. Ben Windholz, Salina, Kansas, inquired about expenses and maintenance at the tennis facility including clubhouse, restrooms, courts and mowing. Fwther discussion followed related to improvements and maintenance. Clark Renfro, Salina, Kansas, stated he was delighted that the project has been started and I that the project should be completed in August. Mr. Renfro also stated they continue to receive donations and support for the tennis facility. Page2 22-0191 E l i I I j Greg Bengtson, City Attorney, explained the amendments to the agreement in that a diagram had been added as well as clarification of communication between the city and the Salina Tennis Alliance. ! Moved by Commissioner Ryan, seconded by Commissioner Longbine, to approve Resolution No. 1. 22-8042, with amendments to the agreement as presented. Aye: (5). Nay (0). Motion carried. (6.4) Consider renewal of land lease for property located at approximately Section Thirty (30), Township Fourteen (14) South, Range (2) West in Saline County Kansas and bounded by the old and new channels of the Smoky Hill River. Shawn Henessee, Assistant City Manager, explained the request, fiscal impact and action options. Cheryl Murray, Salina, Kansas, shared that she was Arnold Tillberg's daughter and Mr. , Tillberg has continuously farmed the parcel in question for the last 56 years and is still active today. Ms. Murray provided a brief history and context of the land and stated Mr. Tillberg would like to continue the lease and relationship. Mike Schrage, City Manager, stated there were no concerns or complaints about the Tillberg lease; and, Mayor Davis confirmed Mr. Tillberg wanted to continue farming the ground. Tom Pestinger, Salina, Kansas, shared that he has the utmost respect for the Tillbergs. Mr. Pestinger stated the issue came up because they wanted to put a sod farm on the property and he initially thought Great Life owned the property, not the city. A discussion followed about acreage, water rights, legal transfer of property, lease, subleasing and action to be taken. Mayor Davis requested a three minute recess after which time the meeting resumed. No action was taken on Item 6.4. DEVELOPMENT BUSINRSS II (7 .1) Approve Ordinance No. 22-1 1107, on first reading, changing the zoning district I classification from Salin~ County AG (Agricultural) zoning district to R-2 (Multiple Family Residential) on a 53.26 acre tract of land located at the north end of Foxboro Drive, east of Centennial Road. Dean Andrew, Director of Planning, explained the request, fiscal impact and action options. Lance Cochran, Salina, Kansas, stated the applicant had applied for a BASE grant first and the Rural Housing Incentive District (RHID) second. If the RHID is not approved, the project probably will not go forward. Dalton McDowell, Salina, Kansas, stated nothing can be guaranteed from the government and inquired why the effort was being made if the RHID may not be approved. Page 3 .. ~ ii 11 I I I A discussion took place regarding the development process, necessary steps and risks taken by the developer. Norman Mannel, Salina, Kansas, inquired about a survey of the property. ~ 22-®92 II Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to approve Ordinance No. 1 1· fl: '. .. 22-11107, on first reading. Aye: (5). Nay (0). Motion carried. ; i Mayor Davis excused himself from the meeting due to a previously scheduled engagement. '. i Vice Mayor Ryan subsequently presided over meeting. 8 Mayor Hoppock recused himself. I I (7.2) Approve Ordinance No. 22-11108, on first reading, amending the Future Land Use I Map of the Salina, Kansas Comprehensive Plan to change the future land use designation of property located on the south side of West Cloud Street west of I Broadway Boulevard from future Suburban Residential to future Urban Residential I in support of multi-family housing in this location. 22-0093 1 Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Ordinance I No. 22-11108, on first reading, Aye: (3). Nay (0). Motion carried. I (7.3) Approve Ordinance No. 22-11109, on first reading, changing the zoning district j! classification from MH-P (Manufactured Home Park) and R-1 (Single-Family{: Residential) to R-2.5 (Multi-Family Residential) to allow construction of multi-; family.apartments at property addressed as 721 West Cloud Street. l I A question was posed regarding storm drain runoff which was referred to the department of : Public Works to be addressed. 22-0094 Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Ordinance j No. 22-11109, on first reading. Aye: (3). Nay (0). Motion carried. I Commissioner Hoppock returned to the meeting. OTHER BUSINESS Commissioner Ryan wished the KU men's basketball team the best of luck. I I CITIZENS FORUM I Chad Farber, Salina, Kansas, shared his thoughts on the new baseballs and softballs at Bill 1.· • .. Burke being a marketing opportunity. j I :I Page4 I ADJOURNMENT Moved by Commissioner Hoppock, seconded by Commissioner Longbine, that the regular meeting 1 of the Board of City Commissioners be adjourned. Aye: (4). Nay: (0). Motion carried. The meeting ;I adjourned at 6: IO p.m. I Ii [SEAL] Page5 I II I I 'I I ORDINANCE NUMBER 22-11103 AN ORDINANCE UNCONDITIONALLY APPROVING THE ISSUANCE OF GENERAL OBLIGATION BONDS BY THE SALINA AIRPORT AUTHORITY FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN CAPITAL IMPROVEMENTS LOCATED AT THE SALINA REGIONAL AIRPORT AND AIRPORT INDUSTRIAL CENTER. WHEREAS, on March 16, 2022, the Board of Directors of the Salina Airport Authority (the "Authority") adopted a resolution approving the issuance of not to exceed $12,250,000 of general obligation bonds of the Authority to pay the cost of certain capital improvements located at the Salina Regional Airport and Airport Industrial Center, including, but not limited to: • The design, construction, acquisition and installation of equipment necessary to construct an aircraft paint facility in Hangar 606 at the estimated cost of $7,900,000 (the "Hangar 606 Paint Facility Project") • The design and construction of improvements to Hangar 626 to house aircraft modification, maintenance, repair and overhaul operations at the estimated cost of $2,500,000 (the "Hangar 626 MRO Project") • The design and construction of improvements to the aircraft apron areas, taxi areas, and employee parking areas associated with Hangars 606 and 626 at the estimated cost of $1,850,000 (the "Hangar 606 & 626 Pavement Project" and collectively with the Hangar 606 Paint Facility Project and Hangar 626 MRO Project, the "Project") as authorized by K.S.A. 27-315 to 27-326, inclusive; and WHEREAS, K.S.A. 27-323 provides that the Authority shall forward a copy of such resolution to the Mayor of the City, who shall present such resolution of the governing body of the City for its approval or disapproval. SO NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CIT\' OF SALINA, KANSAS AS FOLLOWS: Section 1. That the resolution of the Authority adopted on March 16, 2022, providing for the issuance of not to exceed $12,250,000 of general obligation bonds of the Authority for the plll])ose of financing the costs of the Project is hereby unconditionally approved. Section 2. That this ordinance shall be in full force and effect from and after its adoption and publication once, or publication of a summary thereof, in the official city newspaper. [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] PASSED by the City Commission the 4th day of April, 2022, and SIGNED by the Mayor. Trent W. Davis, M._D., Mayor lot SE —— SA AAS = ee JoVonna,A. Rutherford, City Clerk PASSED by the City Commission the 4th day of April, 2022, and SIGNED by the Mayor. [Seal] Trent W. Davis, ATTEST: (Published in The Salina Journal on April 8, 2022) SUMMARY OF ORDINANCE NUMBER 22-11103 On April 4, 2022, the City of Salina, Kansas, passed Ordinance No. 22-11103. The ordinance unconditionally approves the Salina Airport Authority's issuance of general obligation bonds and/or temporary notes to fund certain improvements. A complete copy of the ordinance is available at www.saJina-ks.gov for not less than 7 days following the publication date of this summary or in the office of the City Clerk, 300 W. Ash Street, free of charge. This summary is certificated to be legally accurate and sufficient pursuant,to the laws of the State of Kansas by the city attorney. The publication summary set forth above is certified this ~day of April, 2022. L C ALi The Garden City Telegram PO Box 631367 Cincinnati, OH 45263-1367 The Hays Daify News I Salina Journal The Hutchinson News I The ottawa Herald PROOF OF PUBLICATION City Of Salina City Of Salina 300WASH ST SALINA KS 67401 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 04/08/2022 Sworn to and subscribed before on 04/08/2022 My commision expires Publication Cost: $33.90 Order No: 7141160 # of Copies: Customer No: 601533 1 PO#: THIS IS NOT AN INVOICE! Please do no/ use this form/or paymenl remittance . _.,_ NANCY HEYRMAN • Notary Public . = State of Wisconsin SUMMARY OF ORDINANCE NUMBER 22-11103 On April 4, 2022, the City of Salina, Kansas, passed Ordi- nance No. 22-11103. The ordi- nance unconditionally approves the Salina Airport Authority's issuance of general obligation bonds and/or tern po ra ry notes to fund certain improvements. A complete copy of the ordi- nance is available at www.salina-ks.gov for not less than 7 days following the publication date of this summary or in the office of the City Clerk, 300 W. Ash Street, free of charge. This summary is certificated to be legally accurate and suffi- cient pursuant to the laws of the State of Kansas by the city attorney. The pub I ication summary set forth above is certified this 4th day of April, 2022. Greg Bengtson, City Attor- ney Page 1 of 1 EXCERPT OF MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OF Gilmore & Bell, P.C. 04/11/2023 THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) HELD ON APRIL 19, 2023 The Board of Directors (the "Governing Body") met in regular session at the usual meeting place at 8:00 A.M., the following members being present and participating, to-wit: TOD ROBERG, KRISTIN GUNN, STEPHANIE CARLIN, DON BOOS and JOHN O'BRIEN Absent: None The Chair declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The matter of providing for the offering for sale of General Obligation Bonds of the Authority came on for consideration and was discussed. There was presented a resolution entitled: A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION BONDS OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS). Director STEPHANIE CARLIN moved the adoption of the Resolution. Director DON BOOS seconded the motion to adopt the Resolution. Thereupon, the Resolution was read and considered, and, the question being put to a vote, the vote thereon was as follows: Aye: TOD ROBERG, KRISTIN GUNN, STEPHANIE CARLIN, DON BOOS and JOHN O'BRIEN. Nay: NONE. The Chair declared the Resolution duly adopted by the Governing Body and the Board Clerk designated the same Resolution No. 23-06. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597 .2004 7\SALEDOCS CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the Governing Body of the Salina Airport Authority (Salina, Kansas), held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) 600597 .2004 7\SALEDOCS (Signature Page to Excerpt of Minutes) Gilmore & Bell, P.C. 04/11/2023 RESOLUTION NO. 23-06 A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION BONDS OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS). WHEREAS, The Salina Airport Authority (Salina, Kansas) (the "Issuer" or "Authority"), pursuant to K.S.A. 27-315 to 27-326, inclusive, and the resolutions set forth below (collectively, the "Authorizing Resolutions") has previously authorized certain improvements described as follows (collectively the "Improvements"): Project Description Land Acquisition General Aviation Hangar, Air Terminal Concourse and Building 595 Projects Hangar 626 MRO Project & Aircraft Apron, Taxi & Parking Facilities Aviation Fuel Facility, additional improvements to General Aviation Hangar, Hangar 626 MRO Projects Total: Res.No. 20-04 21-08 22-02 23-04 Amount $2,200,000 3,500,000 4,350,000 10,235,000 $20,285,000 WHEREAS, the City Commission of the City of Salina, Kansas, pursuant to K.S.A. 27-323 and Ordinance Nos. 20-11038, 21-11078, 22-11103, and 23-11147 has approved the Authorizing Resolutions and unconditionally authorized the Issuer to issue general obligation bonds to pay the costs of the Improvements, as set forth in the Authorizing Resolutions; and WHEREAS, the Authority desires to issue its general obligation bonds in order to permanently finance a portion of the costs of the Improvements and retire the following temporary notes of the Authority, which were issued to temporarily finance a portion of the costs of the Improvements (collectively the "Refunded Notes"): Dated Maturity Original Redemption Redemption Series Date Date Amount Amount Date 2020 09/01/2020 09/01/2023 $2,100,000 $2,100,000 06/08/2023 2021-1 11/10/2021 09/01/2023 3,545,000 3,545,000 06/08/2023 2022-1 07/07/2022 07/01/2023 1,000,000 1,000,000 06/08/2023 WHEREAS, the Authority has selected the firm of Stifel, Nicolaus & Company, Incorporated, (the "Financial Advisor"), as Financial Advisor for one or more series of general obligation bonds of the Authority to be issued in order to provide funds to permanently finance a portion of the costs of the Improvements and to retire the Refunded Notes; and WHEREAS, one of the duties and responsibilities of the Authority is to prepare and distribute a preliminary official statement relating to said general obligation bonds; and 600597 .2O047\SALEDOCS WHEREAS, the Authority desires to authorize the Fianacial Advisor and Gilmore & Bell, P.C., Wichita, Kansas, the Issuer's bond counsel ("Bond Counsel"), in conjunction with the Director of Administration and Finance and other representatives of the Authority to proceed with the preparation and distribution of a preliminary official statement and notice of bond sale and to authorize the distribution thereof and all other preliminary action necessary to sell said general obligation bonds. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS), AS FOLLOWS: Section 1. The Authority is hereby authorized to offer at competitive public sale the following general obligation bonds (collectively, the "Bonds") of the Issuer: Description Taxable General Obligation Bonds General Obligation Bonds (Subject to AMT) General Obligation Bonds Series 2023-A 2023-B 2023-C as more fully described in the Notice of Bond Sale, which is hereby approved in substantially the form presented to the governing body of the Authority this date, with such modifications as may be approved by the Director of Administration and Finance. Section 2. The Director of Administration and Finance, in conjunction with the Financial Advisor and Bond Counsel, is hereby authorized and directed to cause to be prepared a preliminary official statement (the "Preliminary Official Statement") relating to the Bonds and to use such document in connection with the sale of the Bonds. Section 3. The Director of Administration and Finance, in conjunction with the Financial Advisor and Bond Counsel, is hereby authorized and directed to give notice of said bond sale by publishing a summary of the Notice of Bond Sale not less than 6 days before the date of the bond sale in a newspaper of general circulation in Saline County, Kansas, and the Kansas Register and by distributing copies of the Notice of Bond Sale and Preliminary Official Statement to prospective purchasers of the Bonds. Proposals for the purchase of the Bonds shall be submitted upon the terms and conditions set forth in the Notice of Bond Sale, and awarded or rejected in the manner set forth in the Notice of Bond Sale. Section 4. For the purpose of enabling the purchaser of the Bonds (collectively, the "Purchaser") to comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the Chair and Director of Administration and Finance are hereby authorized: (a) to approve the form of the Preliminary Official Statement and to execute the "Certificate Deeming Preliminary Official Statement Final" in substantially the form attached hereto as Exhibit A as approval of the Preliminary Official Statement, such official's signature thereon being conclusive evidence of such official's and the Authority's approval thereof; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to the Municipal Securities Rulemaking Board; and (c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the Rule. Section 5. The Authority agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official 600597 .20047\SALEDOCS 2 Statement to enable the Purchaser to comply with the requirements of the Rule and with the requirements of Rule G-32 of the Municipal Securities Rulemaking Board. Section 6. The Chair, Director of Administration and Finance and the other officers and representatives of the Issuer, the Financial Advisor and Bond Counsel are hereby authorized and directed to take such other action as may be necessary to: (a) carry out the sale of the Bonds; and (b) make provision for payment and/or redemption of the Refunded Notes. The agreement for financial advisory services between the Authority and the Financial Advisor is hereby approved in substantially the form presented. The Director of Administration and Finance is authorized to execute such agreement with such changes as counsel to the Authority shall approve. The transactions described in this Resolution may be conducted, and documents related to the Bonds may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 7. This Resolution shall be in full force and effect from and after its adoption by the Governing Body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597 .20047\SALEDOCS 3 ADOPTED by the board of directors on April 19, 2023. (SEAL) ATTEST: Kou Cilh Vincl horse Boajd Clerk 600597.20047\SALEDOCS (Signature Page to Sale Resolution) Zz Chait TEP ep, Gen ee | fs fe ot < we ~ OFM e ah ates } a4 ; 4 fey, ; lt oe “pee ee esa i oe % aig hua : "ty 5 aS ar ee Cal ne . a = 2. . og oF i = ye open: + ¢ oe ES OME ee Pee ly Pe so © fea a Cis “y ae, oh 2 - had ee Sy at any 2 ry pe ers ! a ed 8 eo 2° ; Py Pe a Cad us : ey She Te <B, ae f ye . yy 8, SE” dasa gagga8t ADOPTED by the board of directors on April 19, 2023. (SEAL) ATTEST: 600597 .20047\SALEDOCS (Signature Page to Sale Resolution) EXHIBIT A CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL ________ _,2023 Re: Salina Airport Authority (Salina, Kansas), Taxable General Obligation Bonds, Series 2023-A, General Obligation Bonds, Series 2023-B (Subject to AMT), General Obligation B_onds, Series 2023-C (collectively, the "Bonds") The undersigned are the duly acting Chair and Director of Administration and Finance of the Salina Airport Authority (Salina, Kansas) (the "Issuer"), and are authorized to deliver this Certificate to the respective purchaser (collectively, the "Purchaser") of the above-referenced Bonds on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. To the knowledge of the Issuer, the information contained in the Preliminary Official Statement, other than the sections entitled "The Depository Trust Company," ["The Bond Insurance Policy,"] "Ratings," "Legal Matters," "Tax Matters," and Appendices Band C, for which the Issuer expresses no opinion, and except for the omission of certain information such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters, is true in all material respects, does not contain any untrue statement of a material fact and does not omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. 600597 .20047\SALEDOCS SALINA AIRPORT AUIBORITY (SALINA, KANSAS) By:----------- Title: Chair By: ----------- Title: Dir. Administration and Finance Principal Amount $1,000,000* 8,870,000* 6,855,000* *Subject to change OFFICAL NOTICE OF BOND SALE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) Description Taxable General Obligation Bonds General Obligation Bonds (Subject to AMT) General Obligation Bonds Series 2023-A 2023-B 2023-C Gilmore & Bell, P.C. 04/11/2023 Reference "Series 2023-A Bonds" "Series 2023-B Bonds" "Series 2023-C Bonds" The Series 2023-A Bonds are referred to as the "Taxable Bonds." The Series 2023-B Bonds and Series 2023-C Bonds are collectively referred to as the "Tax Exempt Bonds." (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Separate bids for the purchase of each series of the above-referenced bonds (collectively, the "Bonds") of the Salina Airport Authority (Salina, Kansas) (the "Issuer") herein described will be received on behalf of the Issuer by the Issuer's Financial Advisor until 11 :00 A.M. applicable Central Time (the "Submittal Hour"), on MAY 16, 2023 (THE "SALE DATE") All bids will be publicly evaluated at said time and place and the award of each series of the Bonds to the respective successful bidder (collectively, the "Successful Bidder") will be acted upon by the by the board of directors of the Issuer (the "Governing Body") at its meeting to be held at 8:00 A.M. on May 17, 2023. No oral or auction bids will be considered. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Each series of Bonds shall be sold separately, and bidders may bid on any series of Bonds. Terms of the Bonds. General. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). The Bonds will be dated June 7, 2023 (the "Dated Date"), and will become due in principal installments as follows: Series 2023-A Bonds. The Series 2023-A Bonds shall become due in principal installments as follows: 600597.20047\SALEDOCS Payment Date (September 1) 2032 Principal Amount* $1,000,000 Series 2023-B Bonds. The Series 2023-B Bonds will become due in principal installments as follows: Payment Date (September 1) 2032 2033 2034 2035 2036 Principal Amount* $ 100,000 1,140,000 1,175,000 1,225,000 1,275,000 Payment Date (September 1) 2037 2038 2039 2040 Principal Amount* $1,330,000 1,390,000 1,135,000 100,000 Series 2023-C Bonds. The Series 2023-C Bonds will become due in principal installments as follows: Payment Date (September 1) 2039 2040 2041 Principal Amount* $350,000 1,450,000 1,615,000 Payment Date (September 1) 2042 2043 Principal Amount* $1,685,000 1,755,000 The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on March 1 and September 1, beginning on March 1, 2024 (the "Interest Payment Dates"). * Principal Amount Subject to Change. The Issuer reserves the right to adjust (increase or decrease) the total principal amount of any series of the Bonds and the principal amount of any maturity, depending on the purchase price bid and the offering prices specified by the Successful Bidder, subject to minimum Authorized Denominations. If there is an adjustment in the final aggregate principal amount of any series of the Bonds or the principal amount of any maturity as described above, the Issuer will notify the Successful Bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m., applicable Central Time, on the Sale Date. Any adjustment in principal amount for any series will maintain the Successful Bidder's compensation set forth on the original bid form as a percentage of the total principal amount of such series against the final aggregate principal amount for the Bonds and maturities thereof, as adjusted. At the request of the Issuer, the Successful Bidder agrees to execute a revised bid form or repayment schedule reflecting the adjusted principal amounts and purchase price. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of each series of the Bonds or the schedule of principal payments as described herein. Place of Payment and Registration Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of each Bond will be payable at maturity or earlier redemption to the owners thereof whose names are on the registration books (the "Register") of the Bond Registrar (the "Registered Owner") upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the "Record Date"): (a) mailed by the Paying Agent to the address of such Registered Owner as shown on 600597 .20047\SALEDOCS 2 the Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co., by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas (the "State"). The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Registered Owners. Book-Entry-Only System The Bonds shall be initially registered in the name of Cede & Co., as the nominee of The Depository Trust Company ("DTC") and no beneficial owner will receive certificates representing their interests in the Bonds. During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds, DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to its participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that: (a) DTC determines not to continue to act as securities depository for the Bonds, or (b) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will discontinue the book-entry-only form of registration with DTC. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners, replacement Bonds in the form of fully registered certificates. Reference is made to the Preliminary Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. Series 2023-A Bonds. The Series 2023-A Bonds shall not be subject to redemption prior to their stated maturity Series 2023-B Bonds. At the option of the Issuer, the Series 2023-B Bonds maturing in the years 2033 and thereafter will be subject to redemption and payment prior to maturity on September 1, 2032, and thereafter, as a whole or in part (selection of the amount of Series 2023-B Bonds to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as percentage of the principal amount), plus accrued interest thereon to the date of redemption. 600597 .20047\SALEDOCS 3 Series 2023-C. At the option of the Issuer, the Series 2023-C Bonds maturing in the years 2033 and thereafter will be subject to redemption and payment prior to maturity on September 1, 2032, and thereafter, as a whole or in part (selection of the amount of Series 2023-C Bonds to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as percentage of the principal amount), plus accrued interest thereon to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Series 2023-B Bonds or Series 2023-C Bonds scheduled to mature in consecutive years issued as term bonds (the "Term Bonds") scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY®. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the date fixed for redemption. All notices of redemption shall state the date of redemption, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by Kansas law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to K.S.A. 27-315 to 27- 326, inclusive, as amended, and separate resolutions adopted by the Governing Body (collectively, the "Bond Resolution") for the purpose of paying a portion of the cost of certain capital improvements (the "Improvements"). The Bonds shall be general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. Submission of Bids. Separate bids shall be submitted for each series of the Bonds, which shall be sold separately. Email bids should not be preceded by a cover sheet and should be sent only once to arteberryd@stifel.com. Confirmation of receipt of email bids may be made by contacting the Financial Advisor at the number listed below. Electronic bids via PARITY® must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Bond Sale. Any bid submitted shall include the initial offering prices to the public for each maturity of the applicable series of Bonds. If provisions of this Notice of Bond Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately. The Issuer and Financial Advisor shall not be responsible for failure of transmission of any bid. Information about the electronic bidding services of PARITY® may be obtained from Ipreo at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) 849-5023. 600597 .2004 7\SALEDOCS 4 Conditions of Bids Separate proposals will be received for each series of the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed a rate equal to the daily yield for the 10-year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday next preceding the day on which the Bonds are sold, plus 3% with respect to the Tax Exempt Bonds and 4% with respect to the Taxable Bonds; ( c) no supplemental interest payments will be considered; and (d) each interest rate specified shall be a multiple of 1/8 or 1/100 of 1 %. No bid for less than 98.50% of the principal amount of each series of the Bonds and accrued interest thereon to the date of delivery will be considered. Each bid shall specify: (a) the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid; (b) the purchase price offered by the bidder; ( c) the net interest cost (expressed in dollars) on the basis of such bid; and (d) an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the bid form. The Issuer will be entitled to rely on such certifications. Each bidder agrees that, if it is awarded any series of the Bonds, it will provide the certification described under the captions "Establishment of Issue Price" and "Reoffering Prices -Taxable Bonds" in this Notice. Good Faith Deposit. General. Each bid shall be accompanied by a good faith deposit (the "Deposit") in an amount equal to 2% of the principal amount of the applicable series of the Bonds as stated on the initial page of this Notice, payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the Successful Bidder to comply with the terms of its bid. Each Deposit must be in the form of a wire transfer of Federal Reserve funds (as described below), immediately available for use by the Issuer. The Deposit is only required from the Successful Bidder for each Series of Bonds and must be received by 2:00 p.m. applicable Central Time on the Sale Date. If a bid is accepted, the Deposit, or the proceeds thereof, will be held by the Issuer until the Successful Bidder has complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price, at the option of the Issuer. If a bid is accepted, but the Issuer fails to deliver the Bonds to the Successful Bidder in accordance with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the Successful Bidder. If a bid is accepted but the Successful Bidder defaults in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. No interest on any Deposit shall be paid by the Issuer. Deposit Submission Details. The wire transfer shall be submitted to a financial institution designated by the Issuer, and wire transfer instructions may be obtained from the Financial Advisor at the address set forth on the last page of this Notice. The wire transfer Deposit must reference "Salina Airport Authority, Good Faith Deposit, Series 2023-A, Series 2023-B, or Series 2023-C." Contemporaneously with the submission of the wire transfer Deposit, such bidder shall send an email to the Financial Advisor and Director of Finance and Administration at the email address set forth on the last page of this Notice, including the following information: (i) notification that a wire transfer has been made; (ii) the amount of the wire transfer; (iii) the wire transfer federal reference number; (iv) the name of the bidder for which the wire transfer is to be credited as a Deposit; and (v) if the name of the bidder as shown on PARITY does not match the name shown as the beneficiary on the wire instructions, the email will also state that the bidder is identified by the beneficiary's name on the wire instructions. 600597 .20047\SALEDOCS 5 Basis of Award General. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any disputes arising hereunder shall be governed by the laws of the State, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within Kansas with regard to such dispute. Any bid received after the Submittal Hour on the Sale Date will be rejected or returned to the bidder. Award. Each series of the Bonds shall be awarded separately. Subject to the receipt of the Deposit set forth above, the award of each series of the Bonds will be made on the basis of the lowest true interest cost ("TIC"), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium or discount, if any. Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the bid form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Financial Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the Director of Administration and Finance will determine which bid, if any, will be accepted, and such determination is final. Ratings The Issuer's outstanding general obligation bonds are rated by Moody's Investors Service, Inc. ("Moody's"). The Issuer has applied to Moody's for ratings on the Bonds. Additional information regarding such application and ratings are further described in the Preliminary Official Statement, as hereinafter described. Any explanations of the significance of such ratings (as well as any positive or negative outlooks thereon or potential changes to any rating in the near future) should be obtained from Moody's. Bond Insurance The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds, and will not pay the premium in connection with any policy of municipal bond insurance desired by any Successful Bidder. In the event a bidder desires to purchase and pay all costs associated with the issuance of a policy of municipal bond insurance in connection with any series of the Bonds, such indication and the name of the desired insurer must be set forth on the bidder's bid form and the bid must be accompanied by a commitment from the selected insurer and shall specify all terms and conditions to which the Issuer will be required to agree in connection with the issuance of such insurance policy. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. 600597 .20047\SALEDOCS 6 CUSIP Numbers The CUSIP Service Bureau will be requested to assign CUSIP identification numbers to the Bonds, and such numbers shall be printed on the Bonds; however, neither the failure to assign any such number to or print any such number on any Bond, nor any error with respect thereto, shall constitute cause for the failure or refusal by the Successful Bidder to accept delivery of and to make payment for the Bonds in accordance with the terms of this Notice and of its bid. The Financial Advisor will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. All expenses in relation to the printing of the CUSIP numbers and the expenses of the CUSIP Service Bureau for the assignment thereof shall be the responsibility of and shall be paid for by the Issuer. Delivery and Payment The Issuer will pay for printing the Bonds and will deliver each series of the Bonds properly prepared, executed and registered without cost on or about JUNE 7, 2023 (the "Closing Date"), at DTC for the account of the Successful Bidder. Each Successful Bidder will be furnished with an electronic version of the certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be received by 12:00 noon, applicable Central Time, on the Closing Date, in Federal Reserve funds immediately available for use by the Issuer. The Issuer will deliver a single Bond for each maturity of each series of the Bonds registered in the nominee name of DTC. Establishment of Issue Price (a) In order to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the "Code"), each Successful Bidder will be required to assist the Issuer in establishing the "issue price" of the appropriate series of the Tax Exempt Bonds and complete, execute and deliver to the Issuer prior to the Closing Date, a written certification in a form acceptable to the Successful Bidder, the Issuer and Bond Counsel (the "Issue Price Certificate") containing the following for each maturity of the appropriate series of the Tax Exempt Bonds: (1) the interest rate; (2) the reasonably expected initial offering price to the "public" (as said term is used in Treasury Regulation Section 1.148-l(f) (the "Regulation")) or the sale price; and (3) pricing wires or equivalent communications supporting such offering or sale price. However, such Issue Price Certificate may indicate that the Successful Bidder has purchased such series of Tax Exempt Bonds for its own account in a capacity other than as an underwriter or wholesaler. and currently has no intent to reoffer such series of Tax Exempt Bonds for sale to the public. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received by the Financial Advisor or Bond Counsel on behalf of the Issuer. (b) The Issuer intends that the sale of each series of the Tax Exempt Bonds pursuant to this Notice shall constitute a "competitive sale" as defined in the Regulation. In support thereof: (1) the Issuer shall cause this Notice to be disseminated to potential bidders in a manner reasonably designed to reach potential bidders; (2) all bidders shall have an equal opportunity to submit a bid; (3) the Issuer reasonably expects that it will receive bids for each series of the Tax Exempt Bonds from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Tax Exempt Bonds; and ( 4) the Issuer anticipates awarding the sale of each series of the Tax Exempt Bonds to the bidder that provides a bid with the lowest TIC in accordance with the section hereof entitled "Basis of Award." 600597. 2004 7\SALEDOCS 7 (c) Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Tax Exempt Bonds as specified therein. The Successful Bidder shall constitute an "underwriter" as said term is defined in the Regulation. By submitting its bid, the Successful Bidder confirms that it shall require any agreement among underwriters, a selling group agreement or other agreement to which it is a party relating to the initial sale of the applicable series of the Tax Exempt Bonds, to include provisions requiring compliance with provisions of the Code and the Regulation regarding the initial sale of such Tax Exempt Bonds. (d) If all of the requirements of a "competitive sale" are not satisfied, the Issuer shall advise the Successful Bidder of such fact at the time of award of the sale of the applicable series of the Tax Exempt Bonds to the Successful Bidder and the following provisions shall apply such series of Tax Exempt Bonds. In such event, any bid submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of such Tax Exempt Bonds, the Successful Bidder shall advise the Issuer if a "substantial amount" (as defined in the Regulation (10%)) of any maturity of such Tax Exempt Bonds has been sold to the public and the price at which such substantial amount was sold. The Issuer will treat such sale price as the "issue price" for such maturity, applied on a maturity-by-maturity basis. The Issuer will not require the Successful Bidder to comply with that portion of the Regulation commonly described as the "hold-the-offering-price" requirement for the remaining maturities, but the Successful Bidder may elect such option. If the Successful Bidder exercises such option, the Issuer will apply the initial offering price to the public provided in the bid as the issue price for such maturities. If the Successful Bidder does not exercise that option, it shall thereafter promptly provide the Issuer the prices at which a substantial amount of such maturities are sold to the public; provided such determination shall be made and the Issuer notified of such prices not later than three (3) business days prior to the Closing Date. Any change in the issue price of any of the Tax Exempt Bonds after the Submitta.l Hour will not affect the purchase price for the Tax Exempt Bonds submitted in the bid of the Successful Bidder. (e) This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the "IRS") or the Securities and Exchange Commission (the "SEC"), or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Reoffering Prices -Taxable Bonds. In conjunction with an audit or inquiry by the Securities and Exchange Commission (the "SEC") relating to the pricing of the Series 829 Bonds or other federal or state regulatory authority regarding the retention of pricing data for the Taxable Bonds, at the request of the Issuer, the Successful Bidder will provide information explaining the factual basis for the Successful Bidder's representations relating to the pricing of the Taxable Bonds, other than information that would identify customers (e.g., name or account number). This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time but shall not extend to any customer data or other confidential or proprietary information of the Successful Bidder. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement "deemed final" by the Issuer except for the omission of certain information as provided in the Rule, copies of which may be obtained from the Financial Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the 600597 .20047\SALEDOCS 8 Successful Bidder's proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be ordered by the Successful Bidder at its expense. Continuing Disclosure The SEC has promulgated amendments to the SEC Rule requiring continuous secondary market disclosure for certain issues. In the resolutions authorizing each series of the Bonds, the Issuer has covenanted to enter into an undertaking (the "Undertaking") for the benefit of the holders of such Bonds to send to the MSRB through the Electronic Municipal Market Access facility ("EMMA"), or other applicable entity as required or permitted under the SEC Rule, certain financial information and operating data annually and to provide notice to the MSRB of certain events, pursuant to the requirements of the SEC Rule. For further information regarding the Undertaking, reference is made to the caption "CONTINUING DISCLOSURE" in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2022 is as follows: Equalized Assessed Valuation of Taxable Tangible Property ............................................................. . Tangible Valuation of Motor Vehicles ................................................. . Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations ............................... . $503,880,021 54,903.252 $558,783,273 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold and excluding the Temporary Notes being retired, is $34,670,000. Legal Opinion Each series of the Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., WICHITA, KANSAS, Bond Counsel, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the interest on the Tax Exempt Bonds being excludable from gross income for federal income tax purposes and the interest on the Bonds being exempt from income taxation by the State. Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Bonds. Electronic Transactions. The transactions described herein may be conducted and related documents may be sent, received and stored by electronic means or transmissions. All bid documents, closing documents, certificates, ordinances, resolutions and related instruments may be executed by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents ( or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned or from the Fiancial Advisor at the addresses set forth below: 600597 .20047\SALEDOCS 9 Issuer: DATED: April 19, 2023. Salina Airport Authority (Salina, Kansas) 3237 Arnold Ave Salina, Kansas 67401 Phone No. 785-827-3914 Fax No. 785-827-2221 Email: shellis@salair.org Financial Advisor: Stifel, Nicolaus & Company, Incorporated 4801 Main Street, Suite 530 Kansas Issuer, Missouri 64112 Attn: David Arteberry Phone No. 816-203-8733 Fax No. 816-203-8757 Email: arteberrvd@stifel.com 600597 .2004 7\SALEDOCS SALINAAIRPORT AUTHORITY (SALINA, KANSAS) By Michelle R. Swanson Director of Administration and Finance PRELIMINARY OFFICIAL STATEMENT DATED MAY 9, 2023 New Issue Moody's Rating-"Aa3" The interest on the Series 2023-A Bonds [(including any original issue discount properly allocable to an owner thereof)] is included in gross income for federal income tax purposes. In the opinion of Gilmore & Bell, PC., Bond Counsel to the Issuer, under existing law and assuming continued compliance with cerlain requirements of the Internal Revenue Code of 1986, as amended (the "Code'J: (1) the interest on the Series 2023-B Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes but is an item of tax preference for purposes of the federal alternative minimum tax; (2) the interest on the Series 2023-C Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative tax; (3) the interest on the Bonds is exempt from income taxation by the State of Kansas; and (4) the Bonds have not been designated as "qualified tax-exempt obligations" within the meaning of Code § 265(b)(3). Bond Counsel notes that for tax years beginning after December 31, 2022, interest on the Series 2023-B Bonds and Series 2023-C Bonds may be included in adjusted financial statement income of applicable corporations for purposes of determining the applicability and amount of the federal corporate alternative minimum tax. See "TAX MATTERS" in this Official Statement. SALINA Airport . A~™ $1,000,000* TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $8,870,000* GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) $6,855,000* GENERAL OBLIGATION BONDS SERIES 2023-C Dated: Date of Delivery Due: As shown herein The Taxable General Obligation Bonds, Series 2023-A (the "Series 2023-A Bonds") the General Obligation Bonds, Series 2023-B (subject to AMT)(the Series 2023-B Bonds") and the General Obligation Bonds, Series 2023-C (the "Series 2023-C Bonds") (the Series 2023-A Bonds, Series 2023-B Bonds and the Series 2023-C Bonds referred to collectively herein as the "Bonds") will be issued by the Salina Airport Authority (Salina, Kansas) (the "Authority" or the "Issuer") as fully registered bonds, without coupons and, when issued, will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company ("OTC"), New York, New York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the Bond owners or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (herein defined) of the Bonds. Principal of and semiannual interest on the Bonds will be paid from moneys available therefor under the Resolution (herein defined) by the State Treasurer of Kansas, as paying agent and bond registrar (the "Paying Agent"). So long as DTC or its nominee, Cede & Co. is the Bond owner, such payments will be made directly to such Bond owner. DTC is expected, in turn, to remit such principal and interest to the DTC Participants (herein defined) for subsequent disbursement to the Beneficial Owners. Principal of the Bonds will be payable on each September 1 in the years shown on the inside cover. Interest on the Bonds will be payable on each March 1 and September 1, beginning on March 1, 2024. MATURITY SCHEDULES (see inside front cover) The Bonds constitute general obligations of the Issuer, payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas. See "THE BONDS -Security" herein. The Bonds are offered when, as and if issued by the Issuer subject to the approval of legality by Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the Issuer. Certain other matters will be passed upon by Greg Bengtson, Esq., counsel to the Issuer. It is expected that the Bonds will be available for delivery through the facilities of DTC, New York City, New York, on or about June 7, 2023. EACH SERIES OF THE BONDS WILL BE OFFERED AND SOLD SEPARATELY. BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF SALE: On or before 11:00 a.m., Central Time On Tuesday, May 16, 2023 THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUES. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. *Preliminary; subject to change Maturity 09-01-32 Maturity 09-01-32 09-01-33(3) 09-01-34(3) 09-01-35(3) 09-01-36131 09-01-37131 09-01-3813) 09-01-39(3) 09-01-4013' Maturity 09-01-(_] 09-01-Ll MATURITY SCHEDULES $1,000,000(1) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A Amount $1,000,000 Yield $8,870,000111 GENERAL OBLIGATION BONDS SERIES 2023-B Amount $100,000 1,140,000 1,175,000 1,225,000 1,275,000 1,330,000 1,390,000 1,135,000 100,000 SERIAL BONDS [SERIES 2023-B TERM BONDS Amount Base cus1p<2> 794760 Base cus1p<2> 794760 Base cus1p<21 794760 Maturity 09-01-39131 09-01-40(3) 09-01-41(3) 09-01-42'31 09-01-43131 Maturity 09-01-Ll 09-01-Ll t1lPreliminary; subject to change. MATURITY SCHEDULES $6,855,0QQ(ll GENERAL OBLIGATION BONDS SERIES 2023-C Amount $350,000 1,450,000 1,615,000 1,685,000 1,755,000 SERIAL BONDS [SERIES 2023-C TERM BONDS Amount Rate Base cus1P111 794760 Base cus1P121 794760 t2lCUSIP numbers have been assigned to these issues by CUSIP Global Services ("CGS") which is operated on behalf of the American Bankers Association by FactSet Research Systems, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above. 13l"fhe Series 2023-B Bonds and Series 2023-C Bonds maturing on or after September 1, 2033 are subject to redemption prior to maturity at the option of the Issuer beginning on September 1, 2032 and thereafter, in whole or in part at any time, at a price equal to 100% of the principal amount thereof plus interest accrued to the redemption date. [The Term Bonds are also subject to mandatory redemption. See "THE BONDS-Redemption Provisions" herein.] IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY DVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE BONDS AND EXCHANGE COMMISSION UNDER THE BONDS ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE BONDS AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE BONDS LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY DR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOKING STATEMENTS" AS DEFINED IN THE PRIVATE BONDS LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOK/NG STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. THIS PRELIMINARY OFFICIAL STATEMENT IS DEEMED TO BE FINAL {EXCEPT FOR PERMITTED OMISSIONS) BY THE ISSUER FOR PURPOSES OF COMPLYING WITH RULE 15c2-12 OF THE BONDS AND EXCHANGE COMMISSION. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. SALINA AIRPORT AUTHORITY Salina Regional Airport/Industrial Center 3237 Arnold Avenue Salina, Kansas 67401 BOARD OF DIRECTORS Tod Roberg, Chair & Boardmember Stephanie Carlin, Vice Chair & Boardmember John O'Brien, Secretary & Board member Donald Boos, Treasurer & Board member Kristin Gunn, Past Chair & Boardmember APPOINTED OFFICIALS Timothy F. Rogers, A.A.E., Executive Director Michelle R. Swanson, C.M., Director of Administration and Finance Maynard Cunningham, Director of Facilities and Construction David Sorell, Manager of Operations Kasey Windhorst, Business and Communications Manager & Board Clerk AUTHORITY'S COUNSEL Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas CERTIFIED PUBLIC ACCOUNTANTS AdamsBrown, LLC Great Bend, Kansas BOND COUNSEL Gilmore & Bell, P.C. Wichita, Kansas MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No person has been authorized by the Issuer or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been given or authorized by the Issuer or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the Issuer from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 2 THE DEPOSITORY TRUST COMPANY................................................................................................... 8 THE FINANCING PLAN......................................................................................................................... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS ......................................................................... 10 LEGAL MATTERS ................................................................................................................................. 13 TAX MATTERS..................................................................................................................................... 13 RATINGS.............................................................................................................................................. 16 MUNICIPAL ADVISOR.......................................................................................................................... 16 UNDERWRITING................................................................................................................................. 16 ABSENCE OF MATERIAL LITIGATION................................................................................................... 17 CONTINUING DISCLOSURE................................................................................................................. 17 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 18 APPENDIX A: INFORMATION CONCERNING THE AUTHORITY THE SALINA AIRPORT AUTHORITY................................................................................................. A-2 DEBT SUMMARY OF THE AUTHORITY........................................................................................... A-7 FINANCIAL INFORMATION OF AUTHORITY................................................................................... A-9 THE CITY OF SALINA ...................................................................................................................... A-15 APPENDIX B: CONTINUING DISCLOSURE UNDERTAKING APPENDIX C-1: AUTHORITY'S AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2021 APPENDIX C-2: AUTHORITY'S UNUADITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING DECEMBER 31,2022 General $1,000,000* TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $8,870,000* GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) INTRODUCTORY STATEMENT $6,855,000* GENERAL OBLIGATION BONDS SERIES-C This Official Statement is provided for the purpose of presenting certain information concerning the Salina Airport Authority, Salina, Kansas (the "Authority" or the "Issuer"), and the offering of the $1,000,000* Taxable General Obligation Bonds, Series 2023-A (the "Series 2023-A Bonds"), $8,870,000* General Obligation Bonds, Series 2023-B (Subject to AMT} (the "Series 2023-B Bonds"), and $6,855,000* General Obligation Bonds, Series 2023-C (the "Series 2023-C Bonds")(the Series 2023-A Bonds, Series 2023-B Bonds and Series 2023-C Bonds are collectively referred to herein as the "Bonds"), of the Issuer dated June, 7, 2023. The Series 2023-B Bonds and Series 2023-C Bonds are furthered referred to as the "Tax-Exempt Bonds." The Bonds are being issued to provide permanent financing certain capital improvement projects of the Issuer, and to pay the costs associated with the issuance of the Bonds. See "THE FINANCING PLAN" herein. The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas (the "City"). See "THE BONDS -Security" herein. APPENDIX A, containing selected financial data relating to the Issuer, is an integral part of this Official Statement and should be read in its entirety. All financial and other information presented herein has been provided by the Issuer and other sources deemed to be reliable. The Issuer's Municipal Advisor, Stifel, Nicolaus & Company, Kansas City, Missouri, assisted to compile this information but did not independently verify the accuracy thereof. Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the section LEGAL MATTERS and accordingly expresses no opinion as to the accuracy or sufficiency of any other information contained herein. The presentation of information herein, including tables of receipts from various taxes, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the Issuer. No representation is made that past experience, as might be shown by such financial or other information, will necessarily continue or be repeated in the future. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Resolution, hereinafter defined, of the governing body of the Issuer authorizing the issuance of the Bonds. Copies of the Resolution are available upon request to the Issuer or the Municipal Advisor. *Preliminary; subject to change 1 Additional Information Additional information regarding the Issuer or the Bonds, including basic Bond documentation, may be obtained from Stifel, Nicolaus & Company, Incorporated, Public Finance Department, 4801 Main Street, Suite 530 Kansas City, Missouri 64112, telephone 816-203-8733. The Issuer has provided for compliance with secondary market disclosure requirements as further described in the section titled CONTINUING DISCLOSURE. THE BONDS Authority The are being issued pursuant to and in full compliance with the Constitution and statutes of the State including K.S.A. 27-315 to 27-326, inclusive, each as amended and supplemented from time to time, and resolutions adopted by the governing body of the Issuer on May 17, 2023. The authorizing resolutions for each series of the Bonds are collectively referred to herein as the "Resolution"). Security The Bonds shall be general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as'the same becomes due. The Bonds shall not constitute a debt or obligation of the City. Levy and Collection of Annual Tax, Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description of the Bonds The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds shall be dated as of the Dated Date, shall become due in the amounts on the Stated Maturities, subject to redemption and payment prior to the Stated Maturities (as applicable), and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid, on the Interest Payment Dates in the manner hereinafter set forth. 2 Designation of Paying Agent and Bond Registrar The Issuer will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Resolution. The Issuer reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the Issuer shall at all times meet the requirements of Kansas law [and shall be approved by the Bond Insurer]. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar" and "Paying Agent"} has been designated by the Issuer as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. Method and Place of Pa yment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. The "Record Date" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day} of the calendar month next preceding such Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the Issuer of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See "THE BONDS-Book-Entry Bonds; Securities Depository." Payments Due on Saturdays. Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. 3 Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): (a) if the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Resolution. 4 Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in .a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Series 2023-B and Series 2023-C Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. 5 Redemption Provisions Optional Redemption -Series 2023-A Bonds. The Series 2023-A Bonds will not be subject to redemption and payment prior to their Stated Maturity. Optional Redem ption -Series 2023-B Bonds. At the option of the Issuer, the Series 2023-B Bonds maturing on September 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on September 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Series 2023-B Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. [Mandatory Redemption -Series 2023-B Term Bonds. The Series 2023-B Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-B Term Bonds: *Final Maturity] Principal Amount $ __ _ Year * Optional Redemption -Series 2023-C Bonds. At the option of the Issuer, the Series 2023-C Bonds maturing on September 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on September 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Series 2023-C Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. [Mandatory Redemption -Series 2023-C Term Bonds. The Series 2023-C Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-C Term Bonds: *Final Maturity] Principal Amount $ __ _ Year * Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shall determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denominations in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized 6 Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. 7 THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond certificate will be issued for each scheduled maturity of the Bonds, and will be deposited with OTC. 2. OTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. OTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants'. accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the OTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants" and together with the Direct Participants, the "Participants"). OTC has a Standard & Poor's rating of "AA+". The OTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the OTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner'') is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither OTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual 8 procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. THE FINANCING PLAN The Projects Proceeds from the sale of the Bonds, along with other available funds, will be used to provide permanent financing for the acquisition of land, construction of general aviation hangars, terminal building improvements, improvements to two existing hangar buildings owned by the Authority, taxiway upgrades and construction of a new aviation fuel facility (collectively, the "Projects"). Portions of the Projects were initially funded with proceeds from the sale of general obligation temporary notes of the Issuer. Proceeds from the sale of the Bonds will be used to redeem the outstanding notes, provide additional funding for the Projects, and pay costs associated with the issuance of the Bonds. 9 Sources and Uses of Funds The following is a report of the sources and uses of funds associated with the Financing Plan, exclusive of accrued interest. Sources: Principal Amount of the Bonds Available Funds of Issuer Total Funds Available Uses: Redemption Funds Improvement Costs Costs of Issuance Underwriter's Discount Total Uses of Funds Series 2023-A Series 2023-B RISK FACTORS AND INVESTMENT CONSIDERATIONS Series 2023-C A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERINGS SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE ISSUER OR THE UNDERWRITERS. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the Issuer or the taxing authority of the Issuer. Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the Issuer in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. 10 Debt Service Source The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. Taxpayers may also challenge the fair market value of property assigned by the county appraiser. The effects of such legislative changes and successful challenges to the appraiser's determination of fair market value could affect the Issuer's property tax collections. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material impact on the Issuer's financial situation. See "APPENDIX A - FINANCIAL INFORMATION -Property Valuations and Property Tax Levies and Collections." Kansas Public Employees Retirement System As described in "APPENDIX A -FINANCIAL INFORMATION -Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Public Employees Retirement System -Local Group (the "Plan"). Under existing law, employees make contributions and the Issuer makes all employer contributions to the Plan; neither the employees nor the Issuer are directly responsible for any unfunded accrued actuarial liability ("UAAL"). However, the Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS' Valuation Reports, the Local Group had an UAAL of approximately $1.783 billion in calendar year 2021. (Premium on Bonds The initial offering prices of certain maturities of the Tax-Exempt Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof. Any person who purchases such Bonds, whether during the initial offering or in a secondary market transaction, should consider that the Tax-Exempt Bonds are subject to redemption at par under the various circumstances described under ''THE BONDS - Redemption Provisions."] No Additional Interest or Mandatory Redemption upon Event of Taxability The Resolution does not provide for the payment of additional interest or penalty on the Tax-Exempt Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State. Suitability of Investment The federal tax exempt feature of the Tax-Exempt Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Tax-Exempt Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, 11 will not be adversely amended or modified, thereby rendering the interest earned on the Tax-Exempt Bonds includable in gross income for federal income tax purposes. The Issuer has covenanted in the Resolution and in other documents and certificates to be delivered in connection with the issuance of the Tax-Exempt Bonds to comply with the provisions of the Code, including those which require the Issuer to take or omit to take certain actions after the issuance of the Tax-Exempt Bonds. Because the existence and continuation of the excludability of the interest on the Tax-Exempt Bonds depends upon events occurring after the date of issuance of the Tax-Exempt Bonds, the opinion of Bond Counsel described under ''TAX MATTERS" assumes the compliance by the Issuer with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Tax-Exempt Bonds in the event of noncompliance with such provisions. The failure of the Issuer to comply with the provisions described above may cause the interest on the Tax-Exempt Bonds to become includable in gross income as of the date of issuance. Market for the Bonds Ratings. The Bonds have been assigned the financial rating set forth in the section hereof titled "RATING." There is no assurance the rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of the rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of the Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of the financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the Issuer, or a material adverse change in the financial condition of the Issuer, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Cybersecurity Risks Security breaches, including electronic break-ins, computer viruses, attacks by hackers and similar breaches could create disruptions or shutdowns of the Issuer and the services it provides, or the unauthorized disclosure of confidential personal, health-related, credit and other information. If a security breach occurs, the Issuer may incur significant costs to remediate possible injury to the affected persons, and the Issuer may be subject to sanctions and civil penalties. Any failure to maintain proper functionality and security of information systems could interrupt the Issuer's operations, delay receipt of revenues, damage its reputation, subject it to liability claims or regulatory penalties and could have a material adverse effect on its operations, financial condition and results of operations. Natural Disasters or Terrorist Attacks The occurrence of a terrorist attack in the Issuer, or natural disasters, such as fires, tornados, earthquakes, floods or droughts, could damage the Issuer and its systems and infrastructure, and interrupt services or otherwise impair operations of the Issuer. Infectious Diseases State and local governmental authorities continue efforts to contain and limit the spread of COVID-19. Future revenue collections, including property tax collections that are essential to repayment of the Bonds, may deviate from historical or anticipated levels due to COVID-19 or other infectious diseases. 12 LEGAL MATTERS Legal matters incident to the authorization, issuance, and sale of the Bonds by the Issuer are subject to the approval of Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the Issuer. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the Authority and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned "INTRODUCTORY STATEMENT," "THE BONDS," "LEGAL MATTERS," "TAX MATTERS," and "APPENDIX B -CONTINUING DISCLOSURE UNDERTAKING". Payment of the legal fee of Bond Counsel is contingent upon the delivery of the Bonds. TAX MATTERS The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in the Bonds or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Tax Status of 2023-A Bonds Interest Taxable. The interest on the Series 2023-A Bonds [including any original issue discount properly allocable to an owner thereof] is included in gross income for federal income tax purposes. Opinion of Bond Counsel -Series 2023-A Bonds Kansas Tax Exemption. The interest on the Series 2023-A Bonds is exempt from income taxation by the State of Kansas. Other Tax Consequences -Series 2023-A Bonds Original Issue Discount. For Federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Series 2023-A Bond over its issue price. The stated redemption price at maturity of a Series 2023-A Bond is the sum of all payments on the Series 2023-A Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Series 2023-A Bond is the first price at which a substantial amount of the Series 2023-A Bonds of that maturity have been sold to the public. If the original issue discount on a Series 2023-A Bond is more than a de minimis amount (generally¼ of 1% of the stated redemption price at maturity of the Series 2023-A Bond multiplied by either (a) the number of complete years to the maturity date of the Series 2023-A Bond, or (b) the weighted average maturity of the Series 2023-A Bond, in the case of a Series 2023-A Bond providing for the mandatory, or in certain cases optional, payment prior to its maturity date), then that Series 2023-A Bond will be treated as issued with original issue discount. The amount of original issue discount that accrues to an owner of a Series 2023-A Bond during any accrual period generally equals (1) the issue price of that Series 2023-A Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Series 2023-A Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Series 2023-A Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be included 13 in gross income for federal income tax purposes, and will increase the owner's tax basis in that Series 2023-A Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount.] Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Series 2023-A Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Series 2023-A Bond is the sum of all payments on the Series 2023-A Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate}. The issue price of a Series 2023-A Bond is generally the first price at which a substantial amount of the Series 2023-A Bonds of that maturity have been sold to the public. Under Section 171 of the Code, the owner of a Series 2023-A Bond having bond premium may elect to amortize the premium over the term of the Series 2023-A Bond using constant yield principles, based on the purchaser's yield to maturity. An owner of a Series 2023-A Bond amortizes bond premium by offsetting the qualified stated interest allocable to an accrual period with the bond premium allocable to that accrual period. This offset occurs when the owner takes the qualified stated interest into income under the owner's regular method of accounting. If the premium allocable to an accrual period exceeds the qualified stated interest for that period, the excess is treated by the owner as a deduction under Section 171(a)(l} of the Code. As premium is amortized, the owner's basis in the Series 2023-A Bond will be reduced by the amount of amortizable bond premium properly allocable to the owner. Prospective investors should consult their own tax advisors concerning the calculation and accrual of bond premium.] Sale, Exchange, Legal Defeasance or Retirement of Series 2023-A Bonds. Upon the sale, exchange, legal defeasance or retirement (including redemption} of a Series 2023-A Bond, an owner of the Series 2023-A Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property actually or constructively received on the sale, exchange, legal defeasance or retirement of the Series 2023-A Bond (other than in respect of accrued and unpaid interest} and such owner's adjusted tax basis in the Series 2023-A Bond. To the extent a Series 2023-A Bond is held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Series 2023-A Bond has been held for more than 12 months at the time of sale, exchange or retirement. Opinion of Bond Counsel -Tax-Exempt Bonds In the opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, under the law existing as of the issue date of the Bonds: Federal Tax Exemption. The interest on the Tax-Exempt Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes. Alternative Minimum Tax-Series 2023-B Bonds. The interest on the Series 2023-B Bonds is an item of tax preference for purposes of computing the federal alternative minimum tax. Alternative Minimum Tax -Series 2023-C Bonds. The interest on the Series 2023-C Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bond Counsel's opinions are provided as of the date of the original issue of the Tax-Exempt Bonds, subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Tax-Exempt Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause the inclusion of interest on the Tax-Exempt Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Tax-Exempt Bonds 14 Other Tax Consequences -Tax-Exempt Bonds Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Tax-Exempt Bond over its issue price. The stated redemption price at maturity of a Tax-Exempt Bond is the sum of all payments on the Tax-Exempt Bond other than "qualified stated interest'' (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Tax-Exempt Bond is generally the first price at which a substantial amount of the Series 2023-B Bonds or the Series 2023-C Bonds, as appliable, of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Tax- Exempt Bond during any accrual period generally equals (1) the issue price ofthatTax-Exempt Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Tax- Exempt Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Tax-Exempt Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Tax-Exempt Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount.] Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Tax- Exempt Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Tax-Exempt Bond is the sum of all payments on the Tax-Exempt Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Tax-Exempt Bond is generally the first price at which a substantial amount of the Series 2023-B Bonds or the Series 2023-CBonds, as applicable, of that maturity have been sold to the public. Under Code § 171, premium on tax-exempt obligations amortizes over the term of the Tax-Exempt Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Tax-Exempt Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Tax-Exempt Bond prior to its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium.) Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Tax-Exempt Bond, an owner of the Tax-Exempt Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Tax-Exempt Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Tax-Exempt Bond. To the extent the Tax-Exempt Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Tax-Exempt Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Tax-Exempt Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Tax-Exempt Bonds should be aware that ownership of the Tax-Exempt Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, certain applicable corporations subject to the corporate alternative minimum tax, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the 15 Tax-Exempt Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Tax- Exempt Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Tax-Exempt Bonds, including the possible application of state, local, foreign and other tax laws. Bond Counsel notes that for tax years beginning after December 31, 2022, the interest on the Tax-Exempt Bonds may be included in adjusted financial statement income of applicable corporations for purposes of determining the applicability and amount of the federal corporate alternative minimum tax. No Other Opinions. Bond Counsel expresses no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds, except as expressly provided herein. Purchasers of the Bonds should consult their tax advisors as to the applicability of these tax consequences and other income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. RATING Moody's Investors Service ("Moody's") has assigned a rating of "Aa3" to the Bonds. Any explanation as to the significance of such rating may be obtained only from said rating agency. Ratings are not recommendations to buy, sell, or hold the Bonds, and such rating may be subject to revision or withdrawal at any time by the rating agency. Any downward revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the Issuer in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement but has not independently verified the accuracy or completeness of the information contained herein. The Municipal Advisor has assisted the Issuer with other matters relating to the issuance of the Bonds. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Series 2023-A Bonds were purchased at competitive public sale by [ ], (the "Series 2023-A Underwriter") on the basis of lowest true interest cost. The Series 2023-A Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-A Bonds at a price equal to the principal amount of the Series 2023-A Bonds, [plus a reoffering premium of $_][less an underwriting discount of$[ ). The Series 2023-B Bonds were purchased at competitive public sale by [ L (the "Series 2023-B Underwriter") on the basis of lowest true interest cost. The Series 2023-B Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-B Bonds at a price equal to the principal amount of the Series 2023-B Bonds, [plus a reoffering premium of$ __ ) [less an underwriting discount of$[ ). The Series 2023-C Bonds were purchased at competitive public sale by [ L (the "Series 2023-C Underwriter") on the basis of lowest true interest cost. The Series 2023-C Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-C Bonds at a price equal to the principal amount of the Series 2023-C Bonds, [plus a reoffering premium of $_][less an underwriting discount of$[ ). The Bonds will be offered to the public initially at the prices determined to produce the yield to maturity or applicable redemption date set forth on the inside cover page of this Official Statement. The Underwriter for each Series of Bonds may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into 16 investment trusts) at prices other than the price stated on the inside cover page hereof and may change the initial offering price from time to time subsequent to the date hereof. In connection with the offering, the Underwriter for each Series of Bonds may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The Bonds will be offered to the public initially at the prices determined to produce the yield to maturity or applicable redemption date set forth on the inside cover page of this Official Statement. The Underwriter for each Series of Bonds may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at prices other than the price stated on the inside cover page hereof and may change the initial offering price from time to time subsequent to the date hereof. In connection with the offering, the Underwriter for each Series of Bonds may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. ABSENCE OF MATERIAL LITIGATION The Issuer, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the Issuer, any judgment rendered against the Issuer in such proceedings would not materially adversely affect the financial position of the Issuer. The Issuer certifies that there is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the Issuer or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of said Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 1Sc2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Bonds, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the MSRB. Pursuant to the Disclosure Undertaking, the Issuer has agreed to file its Annual Report with the national repository ("EMMA") not later than June 30 immediately following the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2021. In the Bond Resolution, hereinafter defined, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B -CONTINUING DISCLOSURE UNDERTAKING." For the past five years the Issuer has complied with applicable continuing disclosure undertakings in all material respects, except: For the fiscal year ended December 31, 2019, the Issuer filed its audited financial statements promptly upon receipt, however the Issuer inadvertently failed to link such audited financial statements to the CUSIPs for all outstanding bonds. On July 12, 2021, the Issuer corrected the CUSIP linking and document title issues described in this paragraph. 17 The Issuer received the audited financial statements for the fiscal year ended December 31, 2018 on September 26, 2019. Such audited financial statements were filed with the MSRB through EMMA on December 30, 2019. On July 13, 2021, the Issuer filed a notice of failure to file with respect to such filing. CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the Issuer. This Official Statement is hereby duly approved by the governing body of the Issuer as of the date on the cover page hereof. This Official Statement is submitted in connection with the issuance of the Bonds and may not be reproduced or used as a whole or in part for any other purpose. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. 18 SALINA AIRPORT AUTHORITY SALINA, KANSAS 2022 Estimated Actual Valuation (1) 2022 Assessed Valuation General Obligation Bonds (2) FINANCIAL OVERVIEW SALINA AIRPORT AUTHORITY Population (2022 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Debt to Estimated Actual Valuation Ratio of General Obligation Debt to Estimated Assessed Valuation Outstanding Temporary Notes (3) Outstanding Lease Obligations Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ $ $ $ $ $ $ $ $ 3,705,559,200 558,783,273 34,670,000 46,868 739.74 0.94% 6.20% 0 358,352 211,737,281 246,407,281 5,257 6.65% 44.10% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled "FINANCIAL INFORMATION -Estimated Actual Valuation". (2) Includes the Bonds. (3) Does not include outstanding temporary notes to be redeemed with proceeds from the sale of the Bonds. See "THE FINANCING PLAN." (4) Includes $72,250,000 of general obligation sales tax bonds issued by Saline County. These bonds are first supported by a dedicated local option sales tax. For a more detailed explanation of the overlapping debt of the other jurisdictions, see "DEBT SUMMARY OF THE AUTHORITY-Overlapping Debt". (5) Includes outstanding general obligation bonds of the Authority and general obligation bonds of overlapping jurisdictions. A-1 THE SALINA AIRPORT AUTHORITY History and Organization The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted by the City by the surplus property and public airport authority act of the State of Kansas. The Authority was created for the purpose of accepting as surplus property portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Municipal Airport and the Salina Airport Industrial Center. In 2012, the Salina Municipal Airport was renamed the Salina Regional Airport. Relationship Between the Authority and the City. The Authority is managed and controlled by a five- member Board of Directors appointed by the City of Salina City Commission. The City Commission also approves the issuance of new general obligation debt of the Authority and approves the Authority's operational mill levy. The City does not approve the Authority's mill levy for the repayment of general obligation debt. The tax levying ability of the Authority is granted and restricted by specific Kansas statutes relating to such matters, and is not similar in some instances to the ability of the City to levy taxes. However, because the two jurisdictions maintain identical taxing boundaries, all information concerning assessed valuation, estimated actual valuation, and largest taxpayers of the City will also apply to the Authority. Additionally, information concerning assessment procedures, reappraisal and assessment ratios are all mandated by state statutes applicable equally to both governmental units. Governance. The Authority is governed by a five-member Board of Directors appointed by the governing body of the City (the "Board"). Each director serves a three-year term with at least one but no more than two terms expiring in each year. No director can serve for more than eight consecutive years. The governing body of the City maintains the right, by a majority vote, to remove any director of the Authority from Office. The Board appoints the Executive Director who is the chief executive officer of the Authority. The Executive Director and his staff of 16 employees manage and operate the Salina Regional Airport and the Salina Airport Industrial Center. The current executive director is Timothy F. Rogers, A.A.E., who has held the position since 1985. The present directors of the Authority, along with the expirations of their current terms of office, are as follows: Description Namenitle Tod Roberg, Chairman Stephanie Carlin, Vice Chairman John O'Brien, Secretary Donald Boos, Treasurer Kristin Gunn, Past Chairman Term Expires February 28, 2024 February 28, 2024 February 28, 2025 February 28, 2026 February 28, 2026 The Salina Regional Airport (the "Airport") is the only commercial service airport serving Salina/Saline County and the 24-county area, which comprises North Central Kansas. The Airport also services the corporate, business, private aviation and flight training needs of industry, business and individuals in the area. The Airport is also used by Kansas State University-Salina ("K-State Salina"). The campus of K-State Salina is located adjacent to the Airport. K-State Salina offers degrees in professional flight training, airframe and power plant maintenance, UAS, airport management and avionics technology. Adding to the increased enplanement count is the Airport's status as an Airport of Embarkation/Debarkation by the Fort Riley, Kansas Army Installation located just 60 miles to the east of Salina on 1- 70. The Airport also accommodates a wide variety of aircraft including business jets, military, flight training and general aviation aircraft. During 2022, the Salina Air Traffic Control Tower logged over 68,000 aircraft operations serving the needs of over 7,000 business jets, the professional flight training department of Kansas State University, A-2 general aviation and military aircraft. The Airport's fixed base operator, Avflight Salina, delivered over 2.371 million gallons of fuel to the wide variety of aircraft utilizing the Airport during 2022 and 282,730 as of February 2023. The Salina Regional Airport is served by SkyWest Airlines d/b/a United Express with daily flights to United Airlines Denver and Chicago hubs. SkyWest Airlines receives a USDOT Essential Air Service Program subsidy for daily flights at Salina. The current annual subsidy is $3,310,166 per year. During CY 2022 the Salina Airport recorded 37,835 total passengers. The Airport and Airport Industrial Center is home for over 123 businesses and organizations. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Community Economic Development Organization, the Salina Area Chamber of Commerce, and the Kansas Department of Commerce for the retention of existing business and industry and the recruitment of new business and industry. Sources of Revenue The Authority finances its operations through the local property tax levy, airfield revenues, building and land rent, and other miscellaneous sources as indicated below for the last three fiscal years: 2020 2021 2022 %of %of %of Amount Total Amount Total Amount Total Operating Revenues Airfield $941,238 17.78% $1,083,607 19.8% $1,301,354 23.1% Building & Land Rent 1,543,756 29.16 1,689,044 30.9 1,759,176 31.2 Other 167,352 3.16 121,073 2.2 130,518 2.3 Total Operating 2,652,346 50.10 $2,893,724 $3,191,048 Property Taxes $2,639,481 49.86% $2,570,657 47.0% $2,431,667 43.2% Interest Earnings 2,161 0.04 1,311 0.02 8,383 0.10 Total Revenues $5,293,988 $5,465,692 $5,631,098 Note: Figures do not include gains on sales of assets or grants Businesses and Organizations The following is a list of the larger businesses and organizations located at the Airport and Airport Industrial Center . . /JU-~ SJ.:/!t!J2t:Jrt 4 .,'kion.ai~ " A~SUID.Ollrpmd:ioa • Ag~ t Dlt'BYCmlllltODatiaaal:Eligbt:l>l!p,lrt1D!m f Bmlbudier-~DK. I ~Avadan J dTil.Aitl'mol * ~ amt-J!,,Car " :n&r<ll A,iati<m AdlrJmistntiao I n, Rileyt 1,3 f HeiaenBl'Olher! t. 11.uU / IAG ltl!IJltils !I HOIIS«aastom:.A:,lllc. .. .Jetst:rffm • X".aDAsAEmr~GuDdAAsl" n. 1: ~St:N-~CoIJepormmaa ii ~nampmt/·~ f !Amg:Nt&:mnir .lbmillO!mer >tAaias~l ;1 Plaf!IP!Dast«s, Ltd " c:enini sates~ , ~AmuouS!!n'ices * Sl:!''WS.Ailtines a,t,/a tn!li1!4Ai:rbes f ~SHmityAdministrmcm A-3 '33 m s: ~ z Cl m ;;o 0 "TI -I :c: VI "'O )> G) m r-1' m .i:,. :!:I c:, r-)> z ;:,,;: z -I m z -I 6 z )> r-r-~ •• •• ·-·~ • -••• • •• -••• + -•••• t I tt 111·mmn_,i(lf'ltll'UPl'lf lffl flJIJilif illi.lJ. '.·• eh·JJ·.!·.· ·-1H1 1-,J1J i·f· t rl rM ! ~-1ltt1-1., I I -i-·11 ~ r ' 1· r ,j ' . ~ f I r.··. i. ' I ' ~ r" r~ ?:tii '· l,, 1~:; .. ....... •• •• • •• • •••• -• ••• • • -f ~ li ...... -. -... . l:t 111 ... · p 1-•1·· f"l·l1~1.1. ii. 1· 11,~J-~fJJJl:I ,~111. ·vtJ~~fJ· ,~ ·1 w ·, 1 . I I f l J . iJ 11 J F I ,, I ( t f ll I ! I J I V ! i Principal Customers According to the Authority's records, the following companies represent the ten largest sources of building and land rent revenue for the Authority for the fiscal year ending December 31, 2022. % of Operating Company Revenue Lease Revenue* 1 Vision Aviation $398,381 12.48% Avflight Salina 361,777 11.34 Kansas Erosion Products, LLC 282,500 8.85 Stryten Salina, LLC 210,840 6.61 SFC Global Chain Supply 131,502 4.12 Universal Forest Products (UFP) 114,676 3.59 NASA 88,145 2.76 Kansas State University-Salina 87,874 2.75 USSOCOM (Jaded Thunder) 84,151 2.64 Kansas Military Board (RSMS, Salina, KS) 50,773 1.90 *Total operating and direct lease revenue for 2022 was $1,820,619. This revenue excludes funds generated from the Authority's property tax mill levy. Economic Development Activities According to the Economic Impact Study 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in April 2021, businesses and organizations at the Salina Regional Airport and Airport Industrial Center employed 7,005 employees with a total level economic activity for 2020 of approximately $1,297,934,889. The report also cited that the Airport/Airport Industrial Center accounted for 13.0% of the employment in Saline County and 35.8% of the total economic activity in Saline County. The Authority, the City, Saline County, Salina Community Economic Development Organization, and the Chamber of Commerce have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and K-State Salina. Additionally, a "build-to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In 2020, Schwan's Company broke ground on a new 400,000 square foot expansion at the existing manufacturing facility located within the Airport Industrial Center. The project has created 225 new jobs in 2023. In late 2022, production began in a portion of the facility. Construction is now nearing completion on the remaining balance. Pension and Employee Retirement Plans The Issuer participates in the Kansas Public Employees Retirement System ("KPERS") established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members each of whom serve four-year terms. The board of trustees appoints an executive director to serve as the managing officer of KPERS and manage a staff to carry out daily operations of the system. As of December 31, 2021, KPERS serves approximately 333,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: A-5 (a) Kansas Public Employees Retirement System; (bl Kansas Police and Firemen's Retirement System; and (c) Kansas Retirement System for Judges. These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest of the three plans, accounting for approximately 95% of the members. The Kansas Public Employees Retirement System is further divided into two separate groups, as follows: (a) State/School Group -includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, the majority of which comes from the State General Fund. (bl Local Group -all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan's qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a "contributory" defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The Issuer's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009), KPERS Tier 2 members (covered employment on or after July 1, 2009), or KPERS Tier 3 members (covered employment on or after January 1, 2015). In 2021, the Legislature authorized the issuance of revenue bonds to provide net proceeds of up to $500 million (the "Revenue Bonds") the proceeds of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The Revenue Bonds in the principal amount of $504,535,000 were issued August 26, 2021. The repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be pledged to the repayment of the Revenue Bonds. Due to the authorization of the Revenue Bonds, the Legislature changed the State/School employer contribution rate from 14.09% to 13.33% for fiscal year 2022 and from 13.86% to 13.11% for fiscal year 2023. In 2022, the Legislature authorized additional contributions totaling $1.125 billion in four payments to be deposited into the KPERS trust fund for the School Group. Typically when such additional contributions are made by the State, the statutory employer contribution rates for the following two fiscal years are recertified by the Legislation; however the recertification has not yet occurred. For more information about the Legislature's actions related to KPERS, please see the 2021 Valuation Report referenced below. The Issuer's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The Issuer's contribution is 8.90% of the employee's gross salary for calendar year 2022. The Issuer's contribution is projected to change to 8.43% of gross compensation for calendar year 2023. In addition, the Issuer contributes 1% of the employee's gross salary for Death and Disability Insurance for covered employees. According to the Valuation Report as of December 31, 2021 (the "2021 Valuation Report") the KPERS Local Group, of which the Issuer is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1. 783 billion at the end of 2021. The amount of the UAAL in 2021 changed from the previous year's amount due to the factors discussed in the 2021 Valuation Report; such report also includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group. A copy of the 2021 Valuation Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth A-6 on the KPERS website or in the 2021 Valuation Report, which is the most recent financial and actuarial information available on the KPERS website relating to the funded status of the KPERS Local Group. The 2021 Valuation Report sets the employer contribution rate for the period beginning January 1, 2024, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 9.26% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by the end of the actuarial period set forth in the 2021 Valuation Report. The statutory contribution rate of employers currently equals the 2021 Valuation Report's actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UAAL can be expected to diminish over time. The required employer contribution rate may increase up to the maximum statutorily allowed rate, which is 1.2% in fiscal year 2017 and thereafter. The Issuer is required to implement GASB 68 -Accounting and Financial Reporting for Pensions. KPERS produces a Schedule of Employer and Nonemployer Allocations and Schedules of Pension Amounts by Employer and Nonemployer (the "GASB 68 Report") which provides the net pension liability allocated to each KPERS participant, including the Issuer. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the Issuer has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. DEBT SUMMARY OF THE AUTHORITY Current Indebtedness of the Authority Upon issuance of the Bonds, the Authority will have the following outstanding indebtedness. General Obligation Bonds: Amount Final Amount Purpose Series of Issue Maturitv Outstanding Internal Imp. & Refunding (Taxable) 2015-A $3,075,000 09-01-25 $255,000 Refunding (Taxable) 2017-A 10,255,000 09-01-30 9,420,000 Refunding 2017-B 4,835,000 09-01-31 4,710,000 Refunding 2019-A 675,000 09-01-29 490,000 Refunding (Taxable) 2019-B 3,455,000 09-01-23 870,000 Improvements (Taxable) 2021-A 2,345,000 09-01-31 2,200,000 Improvements (Taxable) 2023-A 1,000,000* 09-01-32 1,000,000* Improvements (AMT) 2023-B 8,870,000* 09-01-40 8,870,000* Improvements 2023-C 6,855,000* 09-01-43 6,855,000* Total $34,670,000 *Preliminary; subject to change Lease Purchase Obligation: Amount Maturity Outstanding Series Project of Issue Date Amount 2020 Building 824 Improvements• $460,000 08-01-30 $358,352 * Lease payments expected to be made from revenues generated from Authority's sublease of Building 824 to Durham School Services. A-7 Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Temporary Notes: Series 2022-1 2021-1 2020-1 Project Hangar 626 Improvements Terminal, Restrooms, Warehouse Land Acquisition Amount of Issue $1,000,000 3,545,000 2,100,000 Maturity Date 07-01-23 09-01-23 09-01-23 Outstanding Amount* $0 0 Q $0 *Redeemed with the proceeds from the sale of the Bonds. See the "THE FINANCING PLAN" herein. Annual Debt Payments of the Authority The following is a list of annual debt service requirements for the Authority's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2023-A Series 2023-B Series 2023-C Principal Interest Principal Interest Bonds Interest Bonds Interest Total $1,710,000 $498,753 1,760,000 454,540 1,810,000 411,120 1,865,000 363,633 1,905,000 312,193 1,960,000 257,412 2,020,000 199,467 2,005,000 138,205 2,070,000 76,005 160,000 15,985 165,000 13,265 170,000 10,130 170,000 6,900 175,000 3,500 $17,945,000 $2,761,108 Historical Debt Information of the Authority The following table shows historical balances of outstanding general obligation bonds and temporary notes for the Authority during the most recent five-year period. Bonds/Notes Debt to Debtto Debt Outstanding Assessed Estimated Actual Per Year December 31 Valuation Valuation Po1;1ulation Capita 2022 $24,590,000 4.40% 0.66% 46,868 $529.09 2021 25,217,949 4.88 0.74 46,481 538.81 2020 23,100,000 4.52 0.69 46,803 496.24 2019 22,425,000 4.40 0.68 46,550 480.03 2018 20,770,000 4.26 0.66 46,716 441.97 2017 21,990,000 4.57 0.71 46,994 464.55 Legal Debt Limits In accordance with Kansas statutes, the Authority is permitted to issue general obligation bonds in an aggregate amount not to exceed 10% of the total assessed valuation of the City. The issuance of the general obligation bonds by the Authority is subject to the approval of the governing body or, at the discretion of the governing body, a 15-day protest period. The City has unconditionally approved the issuance of the Bonds. A-8 Debt Payment Record The Authority has always met principal and interest payments on all outstanding general obligation debt when due and payable. Future Indebtedness Over the next two years, the Authority anticipates that it may need to issue additional general obligation temporary notes in an amount of approximately $3.1 million to provide additional funding for the new fuel facility project. Such notes are expected to be redeemed with federal grants and/or proceeds from the sale of general obligation bonds. See THE FINANCING PLAN -The Projects herein. The Authority is continually evaluating additional commercial and other economic opportunities. There can be no assurance that the Authority will not opt to issue additional general obligation debt to support such endeavors in the future. The issuance of general obligation bonds is at the sole discretion of the governing body of the Authority, subject to the approval of the City of Salina. The Authority will also periodically consider the issuance of non-general obligation debt such as lease purchase agreements and lease revenue bonds. Overlapping Debt The following table shows the overlapping general obligation bonded indebtedness of the Authority. The percent of an overlapping jurisdiction's debt that is applicable to the Authority is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the Authority by the total assessed valuation of such jurisdiction. Jurisdiction City of Salina(1l Unified School District No. 305'1' Saline County(2H3l t1lAs of closing date of the bonds. Amount Outstanding $69,145,000 93,575,000 72,818,554 Estimated Share of the Authority Amount $69,145,000 87,614,273 54,978,008 $211,737,281 Percentage 100.00% 93.63 75.50 12llncludes $72,250,000 of general obligation bonds issued by Saline County which are "double barrel" obligations to be repaid first by a dedicated 0.50% local option sales and use tax, which is projected to completely cover annual debt service, but ultimately supported by a general obligation pledge of the County. (2lAs of June 2022. Source: Saline County Clerk's Office, Stifel, Nicolaus & Company, Incorporated and audited financial statements. FINANCIAL INFORMATION OF AUTHORITY Property Tax Levy Limits The Authority has the ability by statute to levy up to three mills with approval from the governing body of the City for operational purposes. An additional one mill may be levied in order to match grants, subject to a notice and protest period. These mill limits do not apply to the Authority's ability to levy unlimited taxes for the repayment of its general obligation debt. The Authority's mill levy for 2022 was 4.968 mills. The mill rate consists of a one mill levy to match grant proceeds received by the Authority, and the balance of the mill rate is used to support debt service on the Authority's general obligation bonds. The Authority has never utilized the permitted three mill levy for operations and currently has no plans to do so in the future. A-9 Tax Levies The County Clerk determines property tax levies based upon budgets submitted by taxing entities within the County and the assessed valuations provided by the Appraiser and spreads the levies on the tax rolls. The following table gives the total tax levies for all taxing jurisdictions per $1,000.00 assessed valuation of the City for the last five years. Nov Nov Nov Nov Nov 2018 2019 2020 2021 2022 ~ ~ ~ ~ ~ City of Salina 28.394 29.720 30.650 30.452 30.348 Salina Library 6.014 5.913 5.880 6.028 5.510 State Education & Other 1.500 1.500 1.500 1.500 1.500 Unified School District No. 305 57.522 55.508 55.454 54.903 53.425 Airport Authority* 4.998 5.372 5.037 4.838 4.968 Central Kansas Extension District 1.476 1.198 1.206 1.196 1.111 Saline County 38.437 41.097 40.606 39.782 38.860 Total 138.341 140.308 140.333 138.699 135.722 *Authority's historical levy includes 1 mill for matching federal grants with the remaining mills used for payment of debt service on general obligation bonds. See FINANCIAL INFORMATION OF AUTHORITY-"Property Tax Limits". Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November assessed valuation of the Authority and the City in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate Pro~ertlt Utilities Vehicle Valuation 2022 $468,723,852 $9,542,807 $25,613,362 $54,903,252 $558,783,273 2021 427,732,694 8,154,030 23,975,182 56,545,812 516,407,718 2020 423,573,121 9,343,057 23,436,340 54,589,132 510,941,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 2014 376,131,346 13,652,885 17,670,147 48,865,900 456,320,278 2013 370,390,092 17,769,120 16,948,264 48,882,411 453,989,887 A-10 Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see FINANCIAL INFORMATION -"Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides estimated actual valuations for the Authority and the City in the years indicated. Largest Taxpayers Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Residential Real Estate Equalization Ratio N/A 10.86% 10.78 11.44 11.17 11.04 11.36 11.28 11.65 11.55 Estimated Actual Value $3,705,559,200 3,392,138,959 3,325,193,918 3,292,557,745 3,150,409,123 3,097,885,103 3,046,949,034 2,968,008,193 2,917,267,724 2,889,385,914 According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2022 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. Company Evergy, Inc. SFC Global Supply Chain Inc Kansas Gas Service Sam's Real Estate Business Trust/Wal mart Salina Regional Health Properties Inc. Central Mall Realty Holding LLC S&B Motels Union Pacific Railroad Co. Menard Inc. Individual Total Property Tax Collections Type of Business Utility Manufacturing Utility Discount Store Motel Retail Shopping Center Motel Railroad Retail Shopping Center Commercial %of Assessed Total Valuation Valuation $16,402,623 2.94% 11,272,565 2.02 5,746,609 1.03 4,739,506 0.85 4,346,082 0.78 3,142,587 0.56 2,894,902 0.52 2,323,522 0.42 2,284,161 0.41 2,256,168 0.40 $55,408,725 9.92% Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county A-11 to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the Authority in the years shown. Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount ~ Amount % 2022* 4.968% $2,499,976 $1,496,177 59.85% $1,496,606 59.86% 2021 4.838 2,216,174 2,178,553 98.30 2,199,328 99.24 2020 5.037 2,273,827 2,251,285 99.01 2,266,239 99.67 2019 5.372 2,413,660 2,356,433 97.63 2,412,115 99.94 2018 4.998 2,152,299 2,107,328 97.91 2,151,410 99.96 2017 4.992 2,132,134 2,082,567 97.68 2,131,568 99.97 2016 4.396 1,841,679 1,802,833 97.89 1,841,353 99.98 2015 4.396 1,804,238 1,768,092 98.00 1,803,974 99.99 2014 4.486 1,807,084 1,771,278 98.02 1,806,825 99.99 2013 4.504 1,817,896 1,813,028 99.73 1,814,155 99.79 *As of March 2023 Accounting, Budgeting and Auditing Procedures The Authority's financial statements are prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. The Authority follows an accrual basis of accounting. It is the Authority's practice to annually prepare a budget report for the following calendar year. The report is developed by the executive director and submitted to the Authority's Board of Directors. Customarily, the budget for any year is completed in the December preceding such year. However, in the instance where a tax is to be levied by the Authority, a preliminary capital budget is prepared by the preceding July 28th. Kansas statutes make no provisions or requirements for the Authority to prepare a budget. The Authority also voluntarily prepares a multi- year financial forecast for long-term planning (5 to 10 years). Kansas law prohibits cities and other governmental units from creating indebtedness unless there is money on hand in the proper fund and unencumbered by previous commitments with which to pay the indebtedness. The execution of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the payment of the amount represented by the commitment. It makes no difference that the amount may not have to be paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the issuance of debt, in the form of bonds, notes, or warrants, pursuant to statutory authority, referendum or by the State Board of Tax Appeals. In the event debt is issued, funds need not be on hand for future payments. Kansas statutes make no provisions or requirements for the Authority to adhere to this cash basis law. In 2021, the Kansas Legislature passed legislation {the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c) and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the Authority) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county (including the Authority). If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify, by July 20, the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing A-12 subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (5) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to be held between August 20 and September 20, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the county clerk's notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by governing body approval of a resolution or ordinance, and thereafter the taxing subdivisions will hold the public hearing and adopt the budget by majority vote of its governing body. The amount of tax to be levied and the adopted budget must be certified to the county clerk by October 1. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over-collected based on the amount of the levy that was in excess of the revenue neutral rate. The Authority cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Bonds, or the general rating of the Authority. A change in the rating on the Bonds or a change in the general rating of the Authority may adversely impact the market price of the Bonds in the secondary market. Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the Authority are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by AdamsBrown, LLC, CPA, Great Bend, Kansas. Copies of the audit reports for the past five (5) years are on file with the Authority and are available for review. The audit for the Fiscal Year ended December 31, 2021 is attached hereto as APPENDIX C-1. The Authority's unaudited financial statements for the Fiscal Year ended December 31, 2022 are attached as APPENDIX C-2. Although the Authority believes that the information in the unaudited financial statements accurately reflects the financial condition of the Authority as of December 31, 2022, there can be no assurance that such information will not change upon audit. The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties under the direction of State statutes. The Saline County appraiser annually determines the appraised valuation of property located in the County. The appraiser's determination is based on a number of criteria established by Kansas statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates described below to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. A-13 Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. Property Assessment Rates Property subject to ad valorem taxation is divided into two classes, real property and personal property. Real property is divided into seven subclasses; there are six subclasses of personal property. The real property {Class 1) subclasses are: {i) real property used for residential purposes including multi-family mobile or manufactured homes and the real property on which such homes are located, assessed at 11.5%, (ii) agricultural land, valued on the basis of agricultural income or productivity, assessed at 30%, (iii) vacant lots, assessed at 12%, {iv) real property, owned and operated by a not-for-profit organization not subject to federal income taxation, pursuant to Code §501, assessed at 12%, (v) public utility real property, except railroad real property, assessed at the average rate that all other commercial and industrial property is assessed, assessed at 33%, {vi) real property used for commercial and industrial purposes and buildings and other improvements located on land devoted to agricultural use, assessed at 25%, and {vii) all other urban and real property not otherwise specifically classified, assessed at 30%. Tangible personal property {Class 2) subclasses are: (i) mobile homes used for residential purposes, assessed at 11.5%, (ii) mineral leasehold interests, except oil leasehold interests, the average daily production from which is 5 barrels or less, and natural gas leasehold interests, the average daily production from which is 100 mcf or less, which shall be assessed at 25%, assessed at 30%, {iii) public utility tangible personal property, including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed, assessed at 33%, {iv) all categories of motor vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985, assessed at 30%, (v) commercial and industrial machinery and equipment which if its economic life is 7 years or more, shall be valued at its retail cost, when new, less seven-year straight-line depreciation, or which, if its economic life is less than 7 years, shall be valued at its retail cost when new, less straight-line depreciation over its economic life, except that, the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property, assessed at 25%, and (vi) all other tangible personal property not otherwise specifically classified, assessed at 30%. All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants' and manufacturers' inventories, other than public utility inventories included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, is exempt from property taxation. Equalization Ratios Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to compare the assessed valuation of real property to estimated market value based on property sale prices. The study derives an equalization ratio which, when divided into assessed valuation, provides a means to approximate actual market value. According to the 2021 Preliminary Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.86%, and commercial and industrial property was 23.33%. The equalization ratio has no impact on the assessed valuation used to establish property tax rates. A-14 THE CITY OF SALINA, KANSAS Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2022 U.S. Census Bureau estimate of 46,868. The City is the county seat for Saline County, which had an estimated 2022 U.S. Census Bureau population of 53,596. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Name Trent W. Davis, M.D. Michael L. Hoppock Greg Lenkiewicz Bill Longbine Karl F. Ryan Economic Characteristics Title Mayor Vice Mayor Commissioner Commissioner Commissioner Term Expires 2024 2024 2026 2026 2024 The City of Salina benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the City. Such companies include Schwan's Global Supply Chain, Inc., Salina Vortex, GeoProbe, Bergkamp, Kasa Industrial Controls, Premier Pneumatics, Great Plains Manufacturing, PKM Steel, Crestwood Cabinets, McShares, Inc., Pepsi Cola, , Stryten Manufacturing, Advance Auto Parts Distribution Center, and One Vision Aviation. Currently, manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The government sector and wholesale trade industries make up the second tier of Salina employers. The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the City to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City's "trade pull factor" is generally within the top 10 of larger cities in Kansas according to Kansas Department of Revenue. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2022 to be 25,651 persons. The estimated median household income for the City in 2021 was $52,702, and owner-occupied housing rates in the City were 63.3%. A-15 Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot grocery store. Dick's Sporting Goods and Marshalls clothing store opened in a building formerly occupied by Sutherland Lumber Company. In addition, several new restaurants have opened or expanded, including Olive Garden, Longhorn Steakhouse, Scooter's Coffee, Starbucks, Taco Bell, Daimaru Steakhouse and YaYa's Euro Bistro. These openings and expansions are in addition to other economic development activity at the Airport Industrial Center. Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent estimated total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Schwa n's Global Supply Chain, Inc. Great Plains Manufacturing Stryten Manufacturing City of Salina Salina Vortex Saline County Walmart Source: Salina Chamber of Commerce Population Product/Business Healthcare School System Manufacturing Agricultural & Landscaping Equipment Battery Manufacturer City Government Manufacturing Local Government Discount Retail Estimated Employment 1,875 1,500 1,200 1,200 700 425 385 325 250 The City of Salina has a population that is approaching metropolitan area status. This is defined by the U.S. Census Bureau as cities with 50,000 inhabitants or more. According to the U. S. Census Bureau, the City's citizens had a median age of 39 years in 2021. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. U.S. Census Year Bureau Population 2022 46,868 2021 46,481 2020 46,803 2019 46,550 2018 46,716 2017 46,994 2016 47,336 2015 47,813 2014 47,867 2013 47,846 A-16 Labor Force The following tables show the labor force figures for the City of Salina. Total Unemployment Year Labor Force EmQloy:ed UnemQloy:ed Rate 2023 (Jan) 25,506 24,762 744 2.9% 2022 25,651 25,011 640 2.5 2021 24,944 24,172 772 3.1 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 Income The following table shows the per capita personal income for residents of Saline County and the State during the years indicated: Year 2021 2020 2019 2018 2017 2016 2015 Source: Kansas Statistical Abstract Retirement Sy:stems Saline County: N/A $53,520 50,099 49,201 47,632 45,448 44,140 State of Kansas $59,324 55,677 53,453 51,474 48,869 47,510 47,386 The City of Salina participates in KPERS, including membership in the Kansas Police and Fire Retirement System ("KP&F"). Police and Fire Protection The City of Salina provides police and fire protection services to residents of the City and surrounding areas. The two departments employ 429 full-time employees by the City. Firefighting services are provided from four stations located throughout the City with 87 full-time firefighters. The fire department operates 50 vehicles and provides emergency medical services. The Department was recently upgraded to an Insurance Services Office rating of 2. The police department employs 123 personnel, of which 69 are sworn positions. The Department operates 52 police vehicles, including patrol vehicles, motorcycles, and scooters. Both Departments are accredited by their respective professional organizations. Education The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is over 6,900. A-17 Additionally, there are a number of parochial institutions that operate two grade schools, two junior high schools, and one senior high school. The City is home to five regional or private upper-level specialty schools. The Kansas Highway Patrol has a training academy located in Salina. Kansas State University -Salina offers a variety of two-and four-year aviation and technology degree programs. Areas of emphasis include civil, electrical and mechanical engineering technologies, aeronautical studies, and avionics. The campus is located entirely within the boundaries of the Salina Airport Industrial Center. Approximately 742 students are currently enrolled in the school. Kansas Wesleyan University was founded in 1886 and is located within the City. Currently, Kansas Wesleyan maintains an enrollment of approximately 812 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than 50 major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. The City is served by the Salina Regional Airport and scheduled air service is provided by United Airlines. The airline offers daily scheduled passenger air service to Denver International Airport and Chicago O'Hare International Airport. Utilities and Infrastructure Evergy, Inc. supplies electricity and Kansas Gas Service provides natural gas to the City. The City owns its own water and sewage system. Additionally, the City is responsible for street maintenance and police and fire protection for the Airport. SBC provides telephone service. Two cellular phone companies provide service to the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 394-bed (223 staffed) regional facility. SRHC is an acute care facility for the diagnosis and treatment of all types of diseases and conditions, and includes a cancer treatment center and two medical office buildings. The institution is also a 50% partner in a separate surgical hospital adjacent to the Asbury campus of SRHC. Several other facilities providing mental health services, counseling, and alcohol and drug dependency treatment programs are located in the City. Financial Institutions Four banks are headquartered in the City and reported combined deposits in excess of $1.271 billion as of Spring, 2022. A savings bank has a branch office in the City. There are several credit unions available in the city. A-18 Source: Kansas Bank Directory Other Information Public recreation facilities available to city residents include 27 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. Building Permits Issued Building permits issued by the City currently maintain steady levels. This table reflects both private developments as well as the expansion to the educational facilities in the community. The five-year history of the total value of permits issued is: Year Value 2023* $14,366,327 2022 211,920,402 2021 27,383,463 2020 27,706,623 2019 20,544,765 2018 71,862,718 2017 59,975,197 2016 97,910,328 2015 56,989,007 2014 24,214,432 * As of March 2023 [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY) A-19 Sales Tax Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. The total sales tax for goods and services in the City is 8. 75%, which consists of 6.5% imposed by the State, 1% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table shows total local option sales tax revenues received by the City in recent years. The Authority does not receive any sales tax revenue. (ll As of March 2023 Year 2023(l) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Local Option Sales & Use Tax Receiptsl2l $7,442,512 28,234,699 25,769,740 22,917,565 22,531,009 22,048,388 21,773,571 17,771,248 17,749,281 17,288,446 16,703,832 12l Collections prior to October 1, 2016 represent taxes attributable to a .40% sales tax that was replaced with the . 75% 2016 sales tax. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was .90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue. A-20 APPENDIX B Continuing Disclosure Undertaking APPENDIX B Continuing Disclosure Undertaking [THIS PAGE INTENTIONALLY LEFT BLANK]lTHIS PAGE INTENTIONALLY LEFT BLANK] CONTINUING DISCLOSURE UNDERTAKING DATED AS OF JUNE 7, 2023 BY SALINA AIRPORT AUTHORITY (SALINA, KANSAS) SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) DATED JUNE 7, 2023 B-1 GENERAL OBLIGATION BONDS SERIES 2023-C CONTINUING DISCLOSURE UNDERTAKING This CONTINUING DISCLOSURE UNDERTAKING dated as of June 7, 2023 (the "Continuing Disclosure Undertaking"), is executed and delivered by SALINA AIRPORT AUTHORITY (SALINA, KANSAS) (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance by the Issuer of its Taxable General Obligation Bonds, Series 2023-A, General Obligation Bonds, Series 2023-B (Subject to AMT); and General Obligation Bonds, Series 2023-C (collectively, the "Bonds"), pursuant to resolutions adopted by the governing body of the Issuer ( collectively, the "Bond Resolution"). 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Bond Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Annual Financial Report, if any, so long as the Comprehensive Annual Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Bonds and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not B-2 include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Bonds required to comply with the Rule in connection with the offering of the Bonds. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than the June 30 immediately following the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2022, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, in substantially the format contained in the Official Statement relating to the Bonds. A more detailed explanation of the accounting basis and method of preparation of the financial statements is contained in the Official Statement relating to the Bonds. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Bonds, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Bonds, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section: provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become the last day of the sixth month after the end of the Issuer's new fiscal year. B-3 (b) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Bonds ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. If the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Bonds, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. B-4 Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Bond Resolution or the Bonds, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. B-5 Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Bond Resolution or the Bonds shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court oflaw. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] B-6 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. (SEAL) Board Clerk SALINAAIRPORT AUTHORITY (SALINA, KANSAS) (Signature Page to Disclosure Undertaking) B-7 Chair EXHIBIT A FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in tables in the following sections contained inAppendixA of the final Official Statement relating to the Bonds: · Assessed Valuation ·Tax Levies · Property Tax Collections · Largest Taxpayers · Principal Customers · Current Indebtedness of the Authority* * This Operating Data is also available in the Issuer's financial information portion of its Annual Report. B-8 APPENDIX C-1 2021 Financial Statements The following is a portion of the comprehensive annual financial report of the Salina Airport Authority for the fiscal year ended December 31, 2021, prepared by the Authority and audited by AdamsBrown, LLC, Certified Public Accountants, Great Bend, Kansas. [THIS PAGE INTENTIONALLY LEFT BLANK][THIS PAGE lNrENTIONALL Y LEFT BLANK] Annual Report For the fiscal year ended December 31, 2021 SALINA AIRPORT AUTHORITY, KANSAS The audited financial statements for the Salina Airport Authority (Salina, Kansas) (the "Authority") for the fiscal year ended December 31, 2021 is attached as Exhibit A. Together, the Authority's audited financial statements and its operating data previously filed June 28, 2022 on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system website at www.emma.msrb.org completes the City's Annual Report, which is required to be filed pursuant to the City's continuing disclosure obligations (collectively, the "Undertaking") pursuant to Rule l 5c2-12 under the Securities Exchange Act of 1934, as amended, for the securities listed on Schedule 1. [The City previously submitted unaudited financial statements for the fiscal year ended fiscal year ended December 31, 2021, as required by the Undertaking.] The information contained in this Annual Report is current as of December 31, 2021 or as otherwise indicated. Certain information in this Annual Report has been provided by third-party sources. Nothing contained in the Undertaking or this Annual Report is, or should be construed as, a representation by any person, including the City, that this Annual Report includes all of the information that may be material to a decision to invest in, hold or dispose of any of the securities listed on Schedule 1, or any other securities of the Authority. Nothing contained For additional information, contact: Shelli Swanson Director of Administration and Finance Salina Airport Authority (Salina, Kansas) 3237 Arnold Avenue Salina, KS 67401 (785) 827-3914 shellis@salair.org SALINA AIRPORT AUTHORITY (SALINA, KANSAS) Date: June 30, 2022 Schedule 1 SERIES 2021-1 NOTES Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Temporary Notes, Series 2021-1 November 10, 2021 SERIES 2021-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Bonds, Series 2021-A August 17, 2021 SERIES 2017-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Refunding Bonds, Series 2017-A July 12, 2017 SERIES 2017-B BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) General Obligation Refunding Bonds, Series 2017-B July 12, 2017 SERIES 2015-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Bonds, Series 2015-A August 28, 2015 Exhibit A Audited financial statements of the Authority for the fiscal year ended December 31, 2021 Exhibit A Audited financial statements of the Authority for the fiscal year ended December 31, 2021 2 ◄ -'I f I I I COMPREHENSIVE ANNUAL FINANCIAL REPORT SALINA AIRPORT AUTHORITY A Component Unit of the City of Salina, Kansas For the Fiscal Years Ended December 31, 2021 and 2020 Prepared by the Management of the Salina Airport Authority www.salinaairport.com CUSIP #794760XXX 3237 Arnold I Salina, KS 67401 I 785-827-3914 www.salinaairport.com I www.flysalina.com FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT ofthe SALINA AIRPORT AUTHORITY A Component Unit of the City of Salina, Kansas For the Fiscal Years Ended December 31, 2021 and 2020 SALINAAirport -/1,.f/,,n,.1:i,. -=N_,,.,..,,,,.,.,., SALINAAirpf/i ,~eetde,, SALINA AIRPORT AUTHORITY TABLE OF CONTENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Years Ended December 31, 2021 and 2020 INTRODUCTORY SECTION Letter of Transmittal ......................................................................................... 1-5 Certificate of Achievement for Excellence in Financial Reporting .................. 6 Principal Officers .............................................................................................. 7 Authority Staff Members .................................................................................. 8 Organizational Chart ......................................................................................... 9 Salina Regional Airport Aerial View ................................................................ 10 FINANCIAL SECTION Independent Auditors' Report ........................................................................... 11-13 Management's Discussion and Analysis ......................................................... 14-21 Basic Financial Statements Statements of Net Position .............................................................................. 22-23 Statements of Revenues, Expenses and Changes in Net Position ................................................................................ 24 Statements of Cash Flows (Direct Method) .................................................... 25-26 Notes to Financial Statements ........................................................................... 27-50 Required Supplemental Information Schedule of Employer's Proportionate Share of the Net Pension Liability ... 51 Schedule of Employer Contributions ............................................................. 52 Schedule of Changes in Death and Disability Total OPEB Liability and Related Ratios ..................................................................... 53 Supplemental Information Schedules of Revenues, Expenses and Changes in Net Position ................... 54-56 Capital Expenditures ...................................................................................... 57 Taxable General Obligation Bonds -Series 2015-A ..................................... 58 Taxable General Obligation Bonds -Series 2017-A ..................................... 59 Taxable General Obligation Bonds -Series 2017-B ..................................... 60 General Obligation Bonds -Series 2019-A ................................................... 61 Taxable General Obligation Bonds -Series 2019-B ..................................... 62 General Obligation Bond Temporary Notes -Series 2020-1 ........................ 63 Taxable General Obligation Bonds-Series 2021-A ..................................... 64 General Obligation Bond Temporary Notes-Series 2021-A ....................... 65 Taxable Lease Purchase Agreement .............................................................. 66 Insurance in Force .......................................................................................... 67 STATISTICAL SECTION Statistical Table of Contents .......................................................................... 68 Total Annual Revenues, Expenses and Changes in Net Position History ..... 69-70 Changes in Cash and Cash Equivalents History ............................................ 71-72 Capital Expenditure History .......................................................................... 73 General Obligation Debt Service Coverage ................................................... 74 Local Government Mill Levy Rates, Direct and Overlapping ....................... 75 Principal Customers ....................................................................................... 76 Mill Levy Revenue ........................................................................................ 77 Air Traffic, Fuel Flowage, and Enplanement Trends .................................... 78 Principal Employers ....................................................................................... 79 Airport/Industrial Center Information ............................................................ 80 Saline County Demographic and Economic Statistics ................................... 81 Saline County Largest Taxpayers and Tax Collection Statistics ................... 82 COMPLIANCE Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................................... 83-84 Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ..................................................................................................... 85-87 Schedule of Expenditures of Federal Awards ................................................... 88 Notes to Schedule of Expenditures of Federal Awards .................................... 89 Schedule of Findings and Questioned Costs ..................................................... 90-91 Summary Schedule of Prior Audit Findings ..................................................... 92 ii Chainnan Kent Buer SALINAAirport =IJ~- Vite Chair Tod Roberg Secretary Alan Elchelberger Executive Director Timothy F. Rogers, A.A.E. Treasurer Stephanie Carlin Pait Chairman Kristin Gunn Dir. of Administration & Finance Michelle R. Swanson, C.M. Dir. of Facilities & Consll'uction Maynard Cunningham Manager of Operation, David Sorell Business & communications Manager ICasey L Windhorst Board Attorney Greg A. Bengtson June 30, 2022 Salina Airport Authority Board of Directors 3237 Arnold Ave. Salina, KS 67401 To the Board of Directors of the Salina Airport Authority: The Comprehensive Annual Financial Report of the Salina Airport Authority (the "Authority") for the fiscal years ended December 31, 2021 and 2020 is hereby submitted in accordance with the Kansas Statutes Annotated (K.S.A. 27-324). As required by the statute, the City of Salina will be furnished copies of the Authority's 2021 Comprehensive Annual Financial Report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the Executive Director of the Authority. To the best of our knowledge and belief, the data as presented is accurate in all material aspects, is presented in a manner designed to fairly set forth the fiscal position and results of the operation of the Authority as measured by its financial activity, and all disclosures necessary to enable the reader to gain maximum understanding are included in the report. This Comprehensive Annual Financial Report is presented in accordance with generally accepted accounting principles (GAAP) and pursuant to K.S.A. 27-324, an audit of the books, accounts, and financial statements has been completed by the Authority's independent certified public accountants, AdamsBrown, LLC. The independent audit is in accordance with the Kansas Municipal Audit and Accounting Guide. GAAP requires that management provide an overview and analysis to accompany the financial statements in the form of a Management Discussion and Analysis (MD&A). It is recommended that this letter of transmittal be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditor in the Financial Section of this report. REPORTING ENTITY The Salina Airport Authority is a body corporate and politic. The Authority was created by the City of Salina in April 1965 (Sec. 4-16, Salina City Code) pursuant to the authority granted by the City by the surplus property and public airport authority act of the State of Kansas (K.S.A. 27-315 et seq.) The Authority was created for the purpose of accepting as surplus property, portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. INTRODUCTORY FY 2021 The Board appoints the Executive Director, who is the chief executive officer of the Authority. The Executive Director hires the remaining employees of the Authority. The Executive Director and his staff of fourteen full-time and two part-time employees manage and operate the Salina Regional Airport and the Salina Airport Industrial Center. The Salina Regional Airport is the only commercial service airport serving Salina/Saline County and the 24-county area, which comprises north central Kansas. The Airport also services the corporate, business, private aviation, and flight training needs of industry, business, and individuals in the area. The Airport is also used by Kansas State University-Salina (KSUS). The Aerospace and Technology Campus ofKSUS is located adjacent to the Airport and is one of the nation's top five aviation programs. The college offers degrees in professional flight training, airframe and power plant maintenance, and avionics technology. The Salina Regional Airport and Airport Industrial Center is home for over 100 businesses and organizations. Over fifty of the businesses and organizations are tenants of the Authority. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Area Chamber of Commerce, and the Salina Community Economic Development Organization for the retention of existing business and industry and the recruitment of new business and industry. ECONOMIC CONDITIONS AND OUTLOOK Local Economv The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the city to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City had the fifth highest ''trade pull factor" of all Kansas first class cities in a report published in October 2021 by the Kansas Department of Revenue Office of Policy and Research. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. Saline County is in the center of one of the most productive agricultural areas in the United States. Every five years the United States Department of Agriculture conducts a comprehensive summary of agriculture activity for each state in the US. According to the 2017 Census, 609 farms were located on 358,243 acres. Farm crops and livestock sales reached $73.6 million according to the 2017 Census. According to the Kansas Department of Agriculture, the total economic impact of agriculture food and food processing sectors on the Saline County economy is over $1.29 billion annually, creates 4,226 jobs, and 12% of the Gross Regional Product. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the city. The City, Saline County, the Chamber of Commerce, Salina Community Economic Development Organization, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment and providing training for 2 INTRODUCTORY FY 2021 employees through the Salina Area Technical College and the Kansas State University Salina Aerospace and Technology Campus. Additionally, a "build-to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. Additionally, Salina launched a $160 million downtown redevelopment project that broke ground in April of 2018 and is one of the largest public-private partnerships in the history of the city. The streetscape and utility improvements were completed in 2019 and since the beginning of the redevelopment the construction of a Homewood Suites hotel, Old Chicago restaurant, new entertainment center/bowling alley, and a car museum have been completed. A river renewal project is also on the horizon. The community has 1,200 acres ofindustrial sites available in North Salina, the South Industrial District, and the Airport Industrial Center. Sites range in size from 1 to 240 acres, and are available for aviation, manufacturing, and distribution and warehouse businesses. Economic Condition of the Airport and Airport Industrial Center According to a report published in April 2021 by the Docking Institute of Fort Hays State University, as of December 31, 2020, over 100 businesses and organiz.ations are located at the Salina Regional Airport and Airport Industrial Center. The total level of economic activity generated by the private businesses, educational institutions, military units, public institutions, and other entities for 2020 was $1,297,934,889. Combined, Airport and Airport Industrial Center economic activity contributed approximately 42.5% of the total economic activity in Saline County during 2020. The total employment associated with Airport and Airport Industrial Center economic activity was 7,005 jobs which equals 17.6% of the total employment in Saline County. Future Economic Outlook Despite the impact of COVID-19, the future economic outlook for both Salina and the Authority looks favorable. Continued growth in service, retail and manufacturing sectors is expected. Salina Regional Airport businesses including 1 Vision Aviation, Kansas State University Salina, and the Kansas Army National Guard, continue to work on facility expansion plans. Salina Airport Industrial Center businesses and organizations including Schwan's Food Manufacturing Inc., Kansas Erosion Products, Universal Forest Products, Superior Plumbing and Heating Co., and Salina Area Technical College, continue to work on facility expansions and improvements. Salina Regional Airport continues to thrive as a forward operating location for aviation businesses, military, and special operation missions. With its proximity to the Smoky Hill Air National Guard Bombing Range, the Airport continues to host military units from around the country for training purposes. The Salina Airport Authority in partnership with the Salina Area Chamber of Commerce, the Salina Community Economic Development Organiz.ation, the City of Salina, and Saline County, continues to execute an economic development strategic plan that includes specific goals and tasks intended to result in job growth, increased primary jobs, payroll, new capital investment and the leasing of available space at the Airport Industrial Center. 3 INTRODUCTORY FY 2021 FINANCIAL CONTROLS The Authority follows generally accepted accounting principles applicable to governmental unit enterprise funds. Accordingly, the financial statements are prepared on the accrual basis. Management of the Authority is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Authority are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of fmancial 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 requires estimates and judgments by management. LONG-TERM FINANCIAL PLANNING Increasing the Authority's unreserved, undesignated fund balance has been a priority of the organization. The Authority's Board of Directors has a stated plan of maintaining the Authority's cash reserve fund equal to $1.8 million or greater. Having sufficient liquidity has allowed the Authority to respond to opportunities that arise quickly such as improvements to facilities and infrastructure to secure new businesses and industry to the Airport. During 2020 and 2021, the Authority was awarded a total of $2.8 million to be used for airport operating expenditures and equipment under the CARES and CRRSAA federal COVID-19 grant relief programs. Additionally, on July 27, 2021, the Authority was awarded a $1,078,987 grant under the ARPA act of 2021. The proceeds for the forementioned COVID relief grants can be used for any lawful purposes for which airport revenues can be utilized. The grant funds could be used to reimburse for airport expenditures dating back to January 20, 2020. The Authority utilized the funds to maintain the safe and secure operation of the Airport while managing through the effects of the pandemic and to maintain our targeted unreserved fund balance. Also, as part of the strategic plan of recruiting business and industry to fill available facilities vacated by three principal customers since 2012, the Authority has developed a systematic method of evaluating projects including definitive trigger points, lease pro-forma requirements, lease calculation methodology, and other qualitative measures prior to capital improvement projects. GFOA CERTIFICATE OF ACHIEVEMENT Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Salina Airport Authority for its comprehensive annual financial report for the fiscal year ended December 31, 2020. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. 4 INTRODUCTORY FY 2021 A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS The support of the Authority's Board of Directors and Audit Committee has been instrumental in the preparation of this report. The Board has been actively involved in the preparation and review of this report and is committed to responsible and progressive financial reporting. Also acknowledged is the assistance of the Authority's auditor, AdamsBrown, LLC, the Authority's accounting advisor, Larry Harris, Woods & Durham, Chartered., Saline County Clerk's Office, the Salina Area Chamber of Commerce, Debbie Pack, Director of Finance for the City of Salina, and the University of Kansas Institute for Public Policy and Business Research and the Kansas Department of Human Resources Labor Market Information Services, in the preparation of this report. Respectfully submitted, Timothy F. Rogers, A.A.E. Executive Director Salina Airport Authority cc: The City of Salina Board of Commissioners Michelle R. Swanson, C.M. Director of Administration and Finance Salina Airport Authority 5 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Salina Airport Authority Kansas For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 Executive Director/CEO 6 INTRODUCTORY fY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL OFFICERS AS OF DECEMBER 31 , 2021 BOARD OF DIRECTORS Kristin Gunn Chairman Kent Buer Vice-Chairman Brian Weisel Secretary AUTHORITY'S COUNSEL Greg A. Bengtson Clark, Mize & Linville, Chartered Salina, Kansas AUTHORITY'S FINANCIAL ADVISOR Stifel, Nicolaus & Company, Inc. Kansas City, Missouri Tod Roberg Treasurer Alan Eichelberger Past Chairman AUTHORITY'S BOND COUNSEL Gilmore & Bell Kansas City, Missouri AUTHORITY'S AUDITOR AdamsBrown, LLC 2006 Broadway, Suite 2A P.O. Drawer J Great Bend, KS 67530 7 INTRODUCTORY FY2021 SALINA AIRPORT AUTHORITY Staff Members as of December 31, 2021 Tim Rogers EJ<ecutJve Director Kasey Windhorst Business & Communications Manager Kyle Moyer Mx/Ops/ARFF Supervisor Malachi Russo Mx/Ops/ARFF Technician Jett Moyer ARFF/Ops Spedalist Shelli Swanson Director of Admin & Finance DavidSof"ell Manager of Operations Kim Colby Mx/Ops Technician Andrew Hodge ARFF/Ops Officer Matthew Kuffier AR.FF/Ops Specialist Maynard Cunningham Director of Focltities & Construction Michelle Moon Airport Administration Specialist Tim Claassen Mx/Ops/ARFF Technician Zach Turner AR FF/Ops Specialist Evan Moffitt AR ff/Ops Spedo/ist 8 SALINAAIrport —e—EeEEE * SESS SSS Nithhortly ES December 2021 Citizens of Salina Satine City Commission SAA Board of Directors Kristin Gunn, Chainnan Kent Buer. View Chair Bran Weisel Secretyry Tod Reberg. Treasurer Alan Eichelberger, Past Char Executive Director Timothy F. Rogers, A.A.E Director of Admin. & Finance Michelle R. Swanson, C.M Business & Communications Manager Kasey L. Windhorst PANisgevolumaceloatiel-itk-Lile)] Administrative Assistant Vacant ilteateliom ileler gy Director of Facilities and Construction Maynard Cunningham ittal-le(-tmorm@ys|—ic-lijelecd David Sorell MX/Ops/ARFF Supervisor Kyle Moyer Mx/Ops Technician Kim Colby MX/Ops/ARFF Technician Tim Claassen Mx/Ops/ARFF Technician Matachi Russo Mx/Ops/ARFF Technician AVé- text al Part Time Maintenance ARFF/Ops Officer Andrew Hodge ARFF/Ops Specialist Zach Turner ARFF/Ops Specialist Jett Moyer ARFF/Ops Specialist Matthew Kuffler ARFF/Ops Specialist Evan Moffitt INTRODUCTORY Fy 2021 SAL: LI. NAAnpor ‘Aviation 4, Salina Regional Service sige SLNAirport SUN SALINAAirport 10 INTRODUCTORY FY 2021 SALINAAirport '-A~-- /~Aviation s.L Al Service IV/Center ~ SALINAAitp{fj 1~ (Je,Je,,, . '. To the Board of Directors Salina Airport Authority Salina, Kansas Opinion ~. ADAMS BROWN,, Strategic Allies and CPAs adamsbrowncpa.: INDEPENDENT AUDITORS' REPORT We have audited the financial statements of the business-type activities of Salina Airport Authority, a component unit of the City of Salina, Kansas, as of and for the years ended December 31, 2021 and 2020, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above presentfairly, in all material respects, the respective financial position of the business-type activities of Salina Airport Authority as of December 31, 2021 and 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS), the Kansas Municipal Audit and Accounting Guide, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Salina Airport Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is above beyond Adar ::, 1 r > r, 11 Salina Airport Authority Page2 not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part offinancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise Salina Airport Authority's basic financial statements. The introductory section, supplemental information, statistical section, and single audit information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. Such information is the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing 12 Salina Airport Authority Page 3 and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinions, based on our audit and the procedures performed as described above, the information as noted above is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audits of the basic financial statements and, accordingly, we do not express an · opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2022, on our consideration of the Salina Airport Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. AJ~,li ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 13 FINANCIAL FY 2021 MANAGEMENT'S DISCUSSION AND ANALYSIS The management of the Salina Airport Authority offers the readers of the Authority's audited financial statements this narrative overview and analysis of the fmancial activities of the Salina Airport Authority for the fiscal year ended December 31, 2021. The Salina Air Traffic Control Tower (ATCT) ended 2021 having handled 80,970 aircraft operations. This represented a 34% increase in total aircraft operations over the prior year which had seen a dip of 21 % from 2019 and a 10.5% YOY increase from 2018. Not unlike other airports across the country, air traffic was significantly hampered in 2020 due to the COVID-19 pandemic. However, in 2021, not only did the airport experience a recovery in operations it also saw the impact of the pent-up demand in the industry. Categories of aircraft operations at Salina including air carrier, air taxi, and general aviation all saw double-digit decreases as high as 47% as compared to 2020. Military operations were the only category of airport operations that posted a decrease; 41 % for itinerant traffic and 38% for local traffic as compared to 2020. The military traffic had a sharp increase in 2020 over 2019 and 2021 was closer to expected levels of military traffic. Even during the pandemic, Salina continued to host military training exercises for all branches of the armed forces and serves as an Airport of Embarkation/Debarkation (APOE/APOD) for Kansas' army military installation known at Fort Riley. The growth in the pre- pandemic years was a result of growth in both local and itinerant military traffic as well as air taxi and local civilian operations. Also, the 2019, and now 2021 air traffic growth coincides with record enrollment in K-State's professional pilot program. K-State Salina's expanded professional pilot and helicopter flight training programs had assisted in the upward trend in air traffic in previous years as well as an overall increase in commercial business traffic. At the end of 2021, posting the 34% YOY increase moved the Salina Regional Airport into the number one ranked FAA contract towered airport in the state for air traffic operations and fuel delivered. Salina's 2021 ATCT's national ranking for airport operations is 81 out of 256 federal contract towered airports. Salina continues to remain strong as a mid-continent refueling stop and has earned the recognition as "America's Fuel Stop". At the end of 2021, world-class Fixed Based Operator (FBO), Avflight Corporation, completed its eighth year as the aircraft fueling operator at the Salina Regional Airport. Avflight provides fueling and ground services to the wide mix of air traffic that includes business jets, air carrier, military, and general aviation. Avflight is part of the Avfuel-branded FBO network of over 650 independently owned FBOs around the globe. In addition, Salina continues to remain strong as a base of operations for military and civilian flight training. The 8.7% YOY decrease in 2021 was primarily due to the significant fuel sales because of hosting Jaded Thunder in 2019 and 2020. This multi-force military training exercise results in substantial fuel delivered to the numerous aircraft involved with the activity. During 2020, despite COVID-19, Avflight still delivered 2.3 million gallons, representing a .72% increase over the 2019. Since Avflight's 2014 takeover of the fueling operation at SLN, fuel sales have seen 3 years with double digit year-over-year increases. Commercial airline service is afforded to Salina through the Department of Transportation's (DOT) Essential Air Service Program (EAS). On December 21, 2017, the United States Department of Transportation (the Department) selected SkyWest Airlines, Inc. (SkyWest), to provide EAS at Salina, Kansas, using SO-passenger Canadair Regional Jet CRJ200 aircraft for a two-year contract term from April 1, 2018, through March 31, 2020, for SkyWest to provide Salina with 12 weekly round trips to 14 FINANCIAL FY 2021 Denver International Airport (DEN) and/or Chicago O'Hare International Airport (ORD). The service is branded as United Express and was subsequently renewed to provide service through March 31, 2023. From 2017 to 2018, the Airport saw an increase of 46.6% with the jump to 50-seatjet service, operated by SkyWest Airlines, to both United's Chicago and Denver hubs. Of significance is the fact that passenger enplanements exceeding 10,000 annually, allows the airport to receive $1 million per year in Federal Aviation Administration entitlement dollars for eligible airport capital improvements. From 2018 to 2019, the Salina Regional Airport's passenger enplanements continued the positive trend increasing 4.38% because of the Sky West's performance and the market responding. Additionally, the airport continued to serve numerous aircraft as an APOE/APOD for Fort Riley as described above. As the home of the Army's 1st Infantry division, Fort Riley utilizes the infrastructure at the Airport for the deployment of service men and women and cargo to training venues and military missions throughout the world. In addition to an increase in military aircraft activity, the Airport has benefited from the increase in commercial airline charter operations as a result of serving as an APOE/ APOD. Right before the effects of the COVID-19 pandemic hit air travel, Salina's air service and passenger enplanements were reaching new heights. The passenger roundtrip enplanements of 2,712 for SkyWest service during the month of December 2019 was more than double the 1,168 of December 2018. On March 5, 2020, the tag with Hays, KS was removed and the Salina to Denver service became non-stop and the spring break week that followed was the record load factor week for the year. As the air travel reductions were realized around the globe as the pandemic threat continued, Salina's passenger numbers also dropped, and the year ended 50.16% less than 2019. As air travel resumed and the effects of the pandemic lessened, commercial passenger enplanements returned and exceeded the pre-pandemic levels seen in 2019 with an 85.4% increase from 2020 to 2021 and a 5.8% increase when comparing 2019 to 2021. The changes in the Authority's major airport activity indicators for the past three years are as follows: 2021 2020 2019 Enplanements -Scheduled Air Carrier & Charter Flights 19,580 10,561 21,189 % increase / (decrease) 85.40% -50.16% 4.38% Aircraft Operations -All Categories 80,970 60,448 76,553 % increase / (decrease) 33.95% -21.04% 10.48% Fuel Flowage -(gallons delivered) 2,096,198 2,295,009 2,278,659 % increase / (decrease) -8.66% 0.72% -5.64% AIRPORT INDUSTRIAL CENTER ACTIVITY AND HIGHLIGHTS The Authority owns over 1.2 million sq. ft. of manufacturing, warehouse, and office space at the Airport Industrial Center. As further described herein, the building and land revenue generated by the Authority's leasing activity constitutes a significant portion of the annual operating revenue budget. During 2021, building and land rents equaled $1,689,045 or 58.4% of operating revenue. At the end of 2021, the Authority had an occupancy rate of 82% in its building inventory, up from the 80% at a the end of 2020. The Authority has made great strides in recent years in re-leasing a portion of the 484,003 sq. ft. of property vacated by Hawker Beechcraft Corporation (HBC) division in Salina in 2012. 15 FINANCIAL FY 2021 SUMMARY OF OPERATIONS AND CHANGES IN NET POSITION Even with the uncertainty in the aviation industry and the COVID-19 pandemic the financial condition of the Authority improved during 2021. The Authority has effectively dealt with major cost increases in employee health benefits including medical insurance premiums,. utility costs, commercial property insurance premiums and other operating expenses. In addition, the Authority has managed through the termination of four operating revenue leases from three principal tenants since 2012, representing nearly $850,000 in annual operating revenue. Fortunately, since 2012, the Authority has added more than twenty new tenants, diversifying its tenant base and the operating revenues have steadily increased with 2021 reaching a historic high ofnearly $2.9 million. SUMMARY OF OPERA TIO NS HIGHLIGHTS Significant items affecting the Summary of Operations and Changes in Net Position for 2021, 2020 and 2019 are as follows: 2021 2020 2019 Operating revenues $ 2,893,724 $ 2,652,346 $ 2,432,958 Operating expenses (2,810,996) (2,471,725) (2,355,435) Excess of revenues over expenses before depreciation 82,728 180,621 77,523 Depreciation (3,065,984) (3,016,267) (2,898,650) Loss before non-operating revenues and expenses (2,983,256) (2,835,646) (2,821,127) Non-operating revenues and (expenses), net 1,903,527 (570,774) 1,497,105 Loss before capital contributions (1,079,729) (3,406,420) (1,324,022) Capital contributions 2,717,177 2,100,818 1,727,674 Net position Increase (decrease) in net position 1,637,448 (1,305,602) 403,652 Total net position, beginrung of year 21,197,183 22,502,785 22,099,133 Total net position, end of period $22,834,631 $21,197,183 $22,502,785 16 FINANCIAL FY 2021 • Operating revenues have increased in recent years due to new tenants and releasing properties and diversifying the tenant base as mentioned previously, with 2021 and 2020 revenues posting ten- year highs. Although fuel flowage fees derived from the delivery and sale of aviation fuel at the Airport dipped by 5.38% in 2021, this revenue stream jumped significantly when it increased 41% in 201 7 where it reached the highest level in the previous seven years and in 2020, despite COVID-19 it increased by 2.9% over 2019. Military activity at the Airport continues to remain strong and the field at KSLN continues to have a steady stream of based training operations that generate hangar rent, fuel flowage, and other rental revenue. • The Authority's operating expenses increased by 13.7% in 2021 and 4.9% in 2020 after a 3.12% YOY decrease in 2019. From 2011 to 2017, the Authority posted year-over-year decreases in operating expenses. After slipping to a vacancy rate of 58% in early 2012, the Authority loss of revenue attributable to the closure of Hawker Beechcraft, required significant cost-cutting measures. With the occupancy rate having improved by over 20% by the end 2020 and continuing in 2021, the Authority was able to expend dollars on deferred airfield. building and equipment maintenance. o The 2020 and 2021 increases in operating expenses was a result of increased leasing activity and building occupancy. Ironically, demand for warehouse, manufacturing, and hangar space continued even through the heights of the pandemic for both short and long- term tenancies. These factors work in tandem and when occupancies increase, related operating expenses follow suit. Also, certain tenants requested an increased level of disinfecting requiring up to twice-daily services which was even more critical with the Authority's level of short-term, transient leasing activity. o In early 2020 after the outbreak of the pandemic and considering the economic impact uncertainty at the time, the Authority implemented a cash conservation and expense evaluation program. The effects of the pandemic on the financial performance of the Authority were monitored monthly as to provide the ability to respond quickly in the event of a downturn in total revenues, which fortunately did not occur. o During 2012-2019, the Authority made a concerted effort to hold and reduce operating costs by reducing travel and meeting expense as well as reducing all dues and subscriptions and cancelling all non-essential items. • Depreciation expense increased due to very capital-intensive years with exceeding $3 million in 2021 and 2020. • Capital grants and contributions during 2021 and 2020 totaled $2,717,177 and $2,100,818 respectively, with the significant projects including the design of the rehabilitation of the Authority's primary runway, Terminal Building Master Plan update, and rehabilitation of the Authority's largest aircraft hangar, Hangar 959, for a new Part 145 maintenance tenant. $1.2 million of the 2021 capital grants included reimbursement for Airport operating expenses and equipment acquisition under federal COVID relief grants including CARES, CHRRSAA and ARPA grants as further discussion in the Notes to the Financial statements. Additionally, the 17 FINANCIAL FY 2021 Authority received $74,258 in FEMA grant funds to mitigate storm damage on an large-bay aircraft hangar. • Ad-valorem tax revenue (mill levy) received by the Authority as a local taxing entity decreased 2.6.% from 2020 to 2021 and increased 11.3% from 2019 to 2020. The 2021 decrease was associated with a reduction in funds needed for the Authority's debt service payments. Interest received on investments was relatively flat in 2020 and 2021 and decreased only slightly ($850) YOY. FINANCIAL POSITION SUMMARY The Statement of Net Position depict the Authority's financial position as of point in time -December 31 -and reflects the residual difference between all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the Authority. The net position represents the residual interest in the Authority's assets after deducting liabilities. The Authority's net position was $22,834,631 at the close of 2021, a $1.6 million increase from December 31, 2020. The Authority's net position reflects its heavy investment in capital assets including land, buildings, airfield infrastructure and machinery and equipment, less any related debt used to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Authority's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A condensed summary of the Authority's total net position at December 31st for the previous three years is shown on the following page. 2021 2020 2019 ASSETS Current and other assets $ 6,866,321 $ 2,662,550 $ 1,512,621 Capital assets 42,527,517 42,261,174 44,110,767 Total Assets 49,393,838 44,923,724 45,623,388 DEFERRED OUfFLOWS OF RESOURCES 1,085,654 1,232,712 1,276,204 LIABILITIES Long-term debt outstanding $ 23,927,207 $ 19,771,494 $ 20,984,752 Other liabilities 3,488,150 5,121,333 3,370,643 Total Liabilities 27,415,357 24,892,827 24,355,395 DEFERRED IN'FLOWS OF RESOURCES 229,504 66,426 41,412 NET POSITION Net investment in 16,889,510 18,717,283 21,698,665 cap ital assets Unrestricted 5,945,121 2,479,900 804,120 Net Position $ 22,834,631 $ 21,197,183 $ 22,502,785 18 FINANCIAL FY2021 REVENUES The following chart shows the major sources and the percentage of total operating revenues for the year ended December 31, 2021 : ■Alrfiold • Building and land r,nt ·. Other rewnua A summary of revenues for the past three years is shown below. Total revenue increased 6.17% from 2020 to 2021 and 9.3% from 2019 to 2020, following a slight decrease of .09% or $4,341 from 2018 to 2019. 2021 set another ten-year high in operating revenue. The positive trend in operating revenue is a result of the increase in building and land rental attributable to increased occupancy rates. Other operating income has increased as a result of new sources of income including equipment rental to visiting military units and flight test activity. Operating Revenue: Airfield Building and land rent Other revenue Total Operating Non-Operating Income: Mill Levy Interest Income Gain on sale of assets Total Non-Operating TOTAL REVENUE $ $ 2021 1,083,607 1,689,044 121,073 2,893,724 2,570,657 1,311 154,774 2,726,742 5,620,466 $ $ 2020 941,238 1,543,756 167,352 2,652,346 2,639,481 2,161 2,641,642 5,293,988 $ $ 2019 927,921 1,349,788 155,249 2,432,958 2,371,463 17,954 21,263 2,410,680 4,843,638 19 FINANCIAL FY 2021 EXPENSES The following chart shows the major expense categories and the percentage of total operating expenses for the year ended December 31, 2021: ■ Administrative ■ Maintenance A summary of expenses for the past three years is shown below. Total operating expenses increased 13.7% in 2021 and 4.9% in 2020 following a 3.1% decrease over the prior year in 2019. Prior to 2017 and increased building occupancy resulting in higher revenues, the Authority had taken significant steps to hold operating expenses down, including completing more facility maintenance projects in-house and reducing administrative expenses such as travel and meetings. From 2011-2017, the Authority reduced operating expenses year-over-year for each of the six years. 2021 2020 2019 Operating Expenses Administrative $ 1,734,025 $ 1,630,020 $ 1,524,897 Maintenance 1,076,971 841,705 830,538 Total Operating 2,810,996 2,471,725 2,355,435 Non-Operating Expenses Interest Expense 738,945 771,821 840,390 Bond Issue Costs 84,270 44,885 73,185 Loss on Sale of Assets 2,395,710 Total Non-Operating 823,215 3,212,416 913,575 TOTAL EXPENSES $ 3,634,211 $ 5,684,141 $ 3,269,010 20 FINANCIAL FY 2021 CAPITAL ACQUISITIONS AND CONSTRUCTION ACTMTIES Capital grants and contributions during 2021 totaled $2,717,177 which included funding through the Federal Aviation Administration's Airport Improvement Program to provide 100% grant funding for the Authority's design of the rehabilitation of the Airport's primary runway. In addition, the Authority received $1,922,449 in funding support from COVID relief grants as mentioned previously that allowed the Authority to purchase needed airfield equipment to assist in the maintenance and operations of the airfield and commercial service Terminal Building. The Authority acquired $3,370,794 in capital assets during 2021. Significant items included the renovation of the M.J. Kennedy Air Terminal concourse, the acquisition of over $900,000 in airfield equipment and the construction of a general aviation restroom facility. Additional information on the Authority's capital assets can be found in Note Ill (C) in the notes to the financial statements and within the Supplemental Section of this report. Capital asset acquisitions exceeding $1,000 are capitalized at cost and are depreciated over their useful lives, with the exception of land. The Authority's capital assets are financed using Federal and State grants with matching Authority funds, debt issuance and Authority revenues. Additional information can be found in Note I (G) in the notes to the financial statements. DEBT ADMINISTRATION The outstanding long-term debt of the Authority was $23,927,207 net of unamortized bond discounts at and current maturities at December 31, 2021. This debt consists of general obligation bonds and temporary notes and a lease purchase agreement. Maturities range from 2023 through 2036. Both principal and interest are payable from the Authority's mill levy revenue. Details of the Authority's debt can be found in Note III (D) in the notes to the financial statements. REQUEST FOR INFORMATION This Management's Discussion and Analysis is designed to provide detailed information on the Authority's operations and the financial results of those operations to all those with an interest in the Authority's financial affairs. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Administration and Finance by e-mail: shellis@salair.org or in writing to, Salina Airport Authority, 3237 Arnold Ave., Salina, KS 67401. Respectfully submitted, /~)~ Timothy F. Rogers, A.A.E. Executive Director Michelle R. Swanson, C.M. Director of Administration and Finance 21 FINANCIAL FY 2021 SALINA AIRPORT AUTHORITY STATEMENTS OF NET POSITION December 31, 2021 and December 31, 2020 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash Accounts Receivable, Net of Allowance for Uncollectibles Prepaid expenses Total Current Assets NON-CURRENT ASSETS Capital Assets Land Buildings, Improvements and Equipment, Net of Depreciation Construction in Progress Total Non-Current Assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES Deferred KPERS Pension Funds Deferred KPERS OPEB Deferred Advanced Refunding Total Deferred Outflows of Resources TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES December 31 2021 2020 $ 5,303,767 1,545,489 17,065 6,866,321 9,920,765 30,621,531 1,985,221 42,527,517 49,393,838 197,575 803 887,276 1,085,654 $ 50,479,492 $ 2,255,880 390,970 15,700 2,662,550 9,874,567 32,181,015 205,592 42,261,174 44,923,724 214,164 4,727 1,013,821 1,232,712 $ 46,156,436 The accompanying notes are an integral part of these financial statements. 22 FINANCIAL FY 2021 SALINA AIRPORT AUTHORITY STATEMENTS OF NET POSITION December 31, 2021 and December 31, 2020 ( continued) LIABILITIES. DEFERRED INFLOWS OF RESOURCES AND NET POSITION December 31 CURRENT LIABILITIES Accounts Payable Accrued Property Tax Accrued Special Assessments Unearned Rental and Marketing Income Accrued Interest Current Portion of Compensated Absences Current Maturities of Long-Term Debt Total Current Liabilities NON-CURRENT LIABILITIES Bonds and Notes Payable, Less Current Maturities Net Pension Liability Net OPEB Liability Security Deposits Returnable Total Non-Current Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred KPERS Pension Funds Deferred KPERS OPEB Total Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Unrestricted Net Position TOT AL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 2021 2020 $ 769,715 54,005 1,282 90,478 193,171 53,228 1,710,800 2,872,679 23,927,207 509,789 13,911 91,771 24,542,678 27,415,357 218,778 10,726 229,504 16,889,510 5,945,121 22,834,631 $ 50,479,492 $ 125,641 40,159 1,282 105,228 211,244 51,799 3,772,397 4,307,750 19,771,494 715,670 13,924 83,989 20,585,077 24,892,827 58,465 7,961 66,426 18,717,283 2,479,900 21,197,183 $ 46,156,436 The accompanying notes are an integral part of these financial statements. 23 FINANCIAL FY 2021 SALINA AIRPORT AUTHORITY STATEMENTS OF REVENUES, EXPENSES and CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 Operating Revenues Airfield Building and Land Rent Other Revenue Total Operating Revenues Operating Expenses Administrative Maintenance Total Operating Expenses Revenues Over Expenses Before Depreciation Depreciation Operating Loss Before Non-Operating Revenues and Expenses Non-Operating Revenues and (Expenses) Mill levy Interest on Investments Interest Expense Bond Issuance Costs Gain (Loss) on Sale of Assets Total Non-Operating Revenues and (Expenses) Loss Before Capital Contributions Capital Contributions Net Position Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, End of Year January 1 to December 31 2021 2020 $ 1,083,607 1,689,044 121,073 2,893,724 1,734,025 1,076,971 2,810,996 82,728 (3,065,984) (2,983,256) 2,570,657 1,311 (738,945) (84,270) 154,774 1,903,527 (1,079,729) 2,717,177 1,637,448 21,197,183 $ 22,834,631 $ 941,238 1,543,756 167,352 2,652,346 1,630,020 841,705 2,471,725 180,621 (3,016,267) (2,835,646) 2,639,481 2,161 (771,821) (44,885) (2,395,710) (570,774) (3,406,420) 2,100,818 (1,305,602) 22,502,785 $ 21,197,183 The accompanying notes are an integral part of these financial statements. 24 SALINA AIRPORT AUTHORITY STATEMENTS OF CASH FLOWS (DIRECT METHOD) FINANCIAL FY 2021 For the Years Ended December 31, 2021 and December 31, 2020 Januai:y 1 to December 31 2021 2020 CASH FLOWS FROM OPERA TING ACTMTIES Cash Received from Providing Services $ 1,739,205 $ 3,109,625 Cash Paid to Employees for Services (921,910) (854,885) Cash Paid to Suppliers for Goods and Services (1,133,826) (2,133,137) Net Cash Provided (Used) by Operating Activities (316,531) 121,603 CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Property, Plant and Equipment (3,370,794) (1,501,297) Acquisition of Land Subsequently Donated (Net) (2,061,088) Proceeds from Capital Grants 2,717,177 2,100,818 Proceeds from Property Tax 2,570,657 2,639,481 Proceeds from Sale of Capital Assets 193,240 Principal Payments on Debt (3,772,338) (1,428,211) Proceeds of New Borrowing 5,866,454 2,560,000 Bond Issuance Costs (84,270) (44,885) Interest Paid on Long-term Debt (757,019) (787,723) Net Cash Provided by Capital and Related Financing Activities 3,363,107 1,477,095 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Deposits 1,311 2,161 INCREASE IN CASH 3,047,887 1,600,859 CASH BALANCE -January 1 2,255,880 655,021 CASH BALANCE -December 31 $ 5,303,767 $ 2,255,880 The accompanying notes are an integral part of these financial statements. 25 SALINA AlRPORT AUTHORITY STATEMENTS OF CASH FLOWS (DIRECT METHOD) ( continued) FINANCIAL FY 2021 For the Years Ended December 31, 2021 and December 31, 2020 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERA TING ACTIVITIES J anuaiy 1 to December 31 OPERATING LOSS ADJUSTMENTS RECONCILING OPERA TING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Depreciation Decrease (Increase) in Operating Assets Accounts Receivable Prepaid Expenses Change in Deferred Outflows of Resources Increase (Decrease) in Operating Liabilities Accounts Payable (Operations) Accrued Payroll Expenses Accrued Property Tax and Special Assessments Current Portion of Compensated Absences Unearned Rental Income Security Deposits Net Pension Liability Change in Deferred Inflows of Resources Total Adjustments NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 2021 2020 $ (2,983,256) $ (2,835,646) 3,065,984 3,016,267 (1,154,519) 457,279 (1,365) (6,347) 147,059 43,492 644,075 (741,507) (402) 13,846 (14,996) 1,429 12,604 (14,750) 56,020 7,782 26,425 (205,894) 83,400 163,078 25,014 2,666,725 2,957,249 $ (316,531) $ 121,603 The accompanying notes are an integral part of these financial statements. 26 SALINA AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2021 and 2020 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity FINANCIAL FY 2021 The Salina Airport Authority (Authority) was established by the City of Salina, pursuant to Chapter 27, Article 3, of the Kansas Statutes Annotated for the purpose of acquiring surplus federal government property, specifically the former Schilling Air Force Base, located near the City of Salina. The Authority operates, maintains, and develops the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is controlled by a five-member Board of Directors appointed by the Salina City Commission and, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 61, the Authority is considered to be a component unit of the City of Salina. The Authority is discreetly presented in the City's financial statements. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for state and local governments in the United States of America. The Authority consists of a single enterprise fund. Enterprise funds are classified as proprietary funds by the GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be recovered through user fees and rents. The financial statements are prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. Revenues from airlines, fuel flowage fees, building and land rents, and rental car commissions are reported as operating revenues. Transactions, which are capital, financing or investing related, and the sale of assets, related to economic development, are reported as non-operating revenues. All expenses related to operating the Airport and Industrial Center are reported as operating expenses. Interest expense and financing costs are reported as non-operating expenses. C. Use of Estimates Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect certain reported amounts and disclosures that can affect these financial statements. Actual results could differ from those estimates. 27 FINANCIAL FY 2021 D. Property Taxes The Authority has the ability by statute to levy up to three mills with approval from the governing body of the City for operational purposes. An additional one mill may be levied in order to match grants, subject to a notice and protest period. These mills do not apply to the Authority's ability to levy unlimited taxes for the repayment of its general obligation debt. E. Adopted Accounting Pronouncements GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, enhances the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and simplifies accounting for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. F. Pending Accounting Pronouncements The Authority is preparing to implement the following Statements of Governmental Accounting Standards, established by the Governmental Accounting Standards Board (GASB) on or before the required implementation date. Management is currently evaluating the effect that the standards will have on the financial statements. ► GASB Statement No. 87, Leases. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 91, Conduit Debt Obligations. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2022. ► GASB Statement No. 92, Omnibus 2020. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 93, Replacement of Interbank Offered Rates. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. ► GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. ► GASB Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans -an amendment to GASE Statements No. 14 and No. 84, and a supersession of 28 FINANCIAL FY 2021 GASB Statement No. 32. The requirements ofthis Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Implementation Guide 2019-3, Leases. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position. 1. Cash and Investments The Authority'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 date of acquisition. The Authority held no investments during these years. 2. Receivables Accounts Receivable. The Authority records revenues when services are provided. All receivables are shown net of an allowance for uncollectibles. 3. Inventories The Authority maintains no significant inventory of office and maintenance supplies. These items are expensed as purchased and no inventory is recorded in these financial statements. The Authority uses the consumption approach in valuing inventories of A vgas sold for retail. That is, the purchase is recorded as a current asset on the cost basis and the expenditure is deferred until the inventory is consumed under the weighted average cost method. 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 5. Capital Contributions Airport Improvement Program -Certain expenditures for airport capital improvements are significantly funded through the Federal Aviation Administration's Airport Improvement Program (AIP) and the Kansas Department of Transportation's Airport Improvement Program (KAIP), with certain matching funds of the Authority. Capital funding provided under the AIP grant programs are considered earned as the related allowable expenditures are incurred. Grants received under the AIP programs are reported in the Statement of Revenues, Expenses and Changes in Net Position, as non-operating revenues and expenses as capital contributions. Defense Reutilization Marketing Office Program -The Authority is a participant in the Defense Reutilization Marketing Office (DRMO) program. The DRMO entity disposes of United States military surplus property. The property is first offered for reutilization with the Department of Defense, transferred to other federal agencies or donated to state and local governments. 29 FINANCIAL FY 2021 The Authority's policy is to record capital assets having a cost (or by implication fair value) in excess of $1,000 at acquisition. The Authority's capitalization policy with respect to capital assets is to expense capital assets costing $1,000 or less. Freight or other expenses necessary to put the asset into service equal to or greater than $1,000, are capitalized. The Authority estimates the United States military donated items to have a value equal to 20% of cost. Items having an original cost by the military ofless than $5,000 will be valued at $1 with memo of original cost. Items having an original cost of more than $5,000 will be valued at 20% of original cost rounded to the nearest $1 ,000 with a memo to the file of the original cost. The Authority keeps record of the military donated assets having an original cost by the military of $5,000 or less in order to meet the tracking requirement and will treat as a consumable because the Authority believes the fair value of these is less than $1 ,000 each. If the Authority receives reliable written information indicating this procedure has produced a value significantly different from fair value, an adjustment to that value will be made. Donated DRMO property with a value in excess of $1,000 is reported in the Statement of Revenues, Expenses and Changes in Net Position, as non-operating revenues and expenses as capital contributions. The Federal Aviation Administration, as the oversight agency, requires that the Airport track all the contributed property and the property must be held for at least one year prior to disposition. 6. Capital Assets Capital assets purchased or constructed are recorded at cost. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets' lives are not included in capital assets cost. Capital assets donated to the Authority are recorded at their estimated acquisition value at the date of donation. Donated assets include property and equipment transferred to the Authority from the United States of America, September 9, 1966 and recorded at acquisition value at that date. The Authority maintains a capitalization threshold of $1,000. Capital assets are depreciated using the straight-line method over the following estimated useful lives: 7. Compensated Absences Assets Buildings Equipment Vehicles Airfield Years 5-50 5-10 7-10 10-30 Substantially all full-time employees receive compensation for vacations, holidays, illness and certain other qualifying absences. The number of days compensated for various categories of 30 FINANCIAL FY2021 absence is generally based on length of service. Liabilities relating to these absences are recognized as incurred and included in accrued expenses. Per the Authority's compensation policy, the paid time off is not able to accrue beyond a one-year period, therefore all such liabilities are recorded as current. 8. Deferred Outflows and Inflows of Resources In addition to assets, the statement of net position may report a separate section for deferred outflows of resources. Deferred outflows ofresources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority currently reports deferred charges on early retirement on debt refunding. The deferred charge onrefunding results from the difference in the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The Authority also reports a collective deferred outflow ofresources related to pensions and deferred outflows for OPEB, which is described further in Note IV A and Note IV G, respectively. In addition to liabilities, the statement of net position may report a separate section for deferred inflows ofresources. Deferred inflows ofresources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow ofresources (revenue) until that time. The Authority reports a collective deferred inflow of resources related to pensions and OPEB, which is described further in Note IV A and Note IVG, respectively. 9. Net Position In proprietary fund financial statements net position is classified into three components: • Net investment in capital assets -consisting of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, leases, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. • Restricted net position -consisting of net position with constraints placed on its use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governmcovents; or (2) law through constitutional provisions or enabling legislation. The Authority first utilizes restricted resources to finance qualifying activities. • Unrestricted net position -All other net position that does not meet the definition of "restricted" or "net investment in capital assets". II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Cash-Basis Law (KSA 10-1113) The Authority was in compliance with this law at all times during the year. 31 III. FINANCIAL FY 2021 B. Depository Security (KSA 9-1402) The Authority's funds were adequately secured at all times during the year. DETAILED NOTES A. Deposits As of December 31, 2021 and 2020, the Authority had cash and cash equivalents as listed below: 2021 Gross Cash Balances Cash $ 5,253,946 $ Less: Deposits in Transit and Petty Cash (3,299) Add: Uncleared Checks 72,135 Bank Balance 5,322,782 Less: FDIC Coverage 525,745 Balances Securable by Collateral $ 4,797,037 $ Security Provided by Depositories $ 6,314,632 $ The Authority had the following investments and maturities: Year 2021 2020 Investment Type Kansas Municipal Investment Pool Kansas Municipal Investment Pool Fair Value $ 49,821 149,384 Maturities Less than 1 Year $ 49,821 149,384 2020 2,106,496 (11,665) 34,959 2,129,790 537,548 1,592,242 2,001,818 Rating U.S. AAAfi'Sl+ AAAfi'Sl+ The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest, by the U.S. government or any agency thereof, with maturities up to four years. No more than ten 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 Authority 's policies relating to deposits and investments are governed by various Kansas Statutes (KSA). Those statutes specify the type of deposits and investments as well as the securing of those deposits and investments. 32 ' FINANCIAL FY 2021 Interest rate risk -In accordance with Kansas Statute 12-1675, the Authority manages its exposure to interest rate fluctuations by limiting all time investments to maturities of less than two years. Credit risk -State law limits the amount of credit risk by restricting governments to specific investment types as listed in KSA 12-1675. The Authority's policy is to place idle funds in certificates of deposit, United States obligations, and the Kansas Municipal Investment Pool (KMIP). The KMIP was rated AAAf/Sl+ by Standard & Poor's as of the date of this report. The KMIP is permitted to invest in fully collateralized certificates of deposit, certain obligations of the United States, certain repurchase/reverse repurchase agreements, and other types of investments. Maturity information released by the KMIP showed that the investment pool consisted of investment with a maturity date of 365 days or less. Custodial credit risk deposits-The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Kansas Statutes 9-1402 and 9-1405 require that governments obtain security for all deposits. The Authority manages its custodial credit risk by requiring the financial institutions to grant a security interest in securities held by third-party custodial banks. Monies in the Kansas Municipal Investment Pool are not required to have pledged securities. Custodial credit risk -investments. For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. State statutes require investments to be adequately secured. Concentration of credit risk -This is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Authority manages this risk by placing funds with financial institutions only after contacting all eligible institutions in the taxing area and monies in the Kansas Municipal Investment Pool are diverse according to the policies of the investment pool. 100% of the Authority's investments is in KMIP, which results in a concentration of credit risk. B. Receivables Receivables as of year-end, including the applicable allowance for uncollectible accounts, are as follows: Receivables Accounts $ Grants Less: Allowance for Uncollectibles Total $ 2021 94,058 1,452,931 (1,500) 1,545,489 $ $ 2020 178,682 213,788 (1,500) 390,970 33 FINANCIAL FY 2021 C. Capital Assets The following is a summary of the changes in capital assets during the current and preceding year: Balance Balance January 1, December 2021 Additions Dispositions Reclassify 31, 2021 Capital Assets Non-Depreciable Land $ 9,874,567 $ 46,198 $ $ $ 9,920,765 Construction in Progress 205,592 1,779,629 1,985,221 Total Non-Depreciable 10,080,159 1,825,827 11,905,986 Depreciable Buildings and Improvements 30,521,989 485,933 (24,855) 30,983,067 Airfield and Improvements 46,303,393 128,021 (2,822,496) 43,608,918 Equipment 5,799,934 931,013 (699,171) 6,031,776 Total Depreciable 82,625,316 1,544,967 (3,546,522) 80,623,761 Total Non-Depreciable & Depreciable 92,705,475 3,370,794 (3,546,522) 92,529,747 Accumulated Depreciation Buildings and Improvements (16,532,370) (1,150,795) 24,855 (17,658,310) Airfield and Improvements (29,655,836) (1,631,452) 2,822,495 (28,464,793) Equipment (4,256,095) (283,737) 660,705 (3,879,127) Total Accumulated Depreciation (50,444,301) (3,065,984) 3,508,055 (50,002,230) Total Capital Assets $ 42,261,174 $ 304,810 $ (38,467) $ $ 42,527,517 34 FINANCIAL FY 2021 BaJance BaJance January 1, December 2020 Additions Dispositions Reclassify 31, 2020 Capital Assets Non-Depreciable Land $ 10,166,124 $ 43,066 $ (334,623) $ $ 9,874,567 Construction in Progress 132,218 186,591 113,217) 205,592 Total Non-Depreciable 10298,342 229,657 (334,623) (113,217) 10,080,159 Depreciable Buildings and Improvements 29,839,596 682,393 30,521,989 Airfield and Improvements 45,808,087 382,089 113,217 46,303,393 Equipment 5,592,776 207,158 5,799,934 Total Depreciable 81,240,459 1,271.640 113,217 82,625,316 Total Non-Depreciable & Depreciable 91,538,801 1,501,297 (334,623) 92,705,475 Accumulated Depreciation Buildings and Improvements (15,394,873) (1,137,497) (16,532,370) Airfield and Improvements (28,024,512) (1,631,324) (29,655,836) Equipment ( 4.008.649) (247,446) (4,256,095) Total Accumulated Depreciation (47,428,034) (3,016,267) (50.444,301 ) Total Capital Assets $ 44,110,767 $ {1.514,970) $ (334.623 ) $ $ 42,261,174 D. Long-Term Liabilities Following is a summary of changes in long-term liabilities during the current and preceding year: Long-Term Liabilities Current Portion of Compensated Absences General Obligation Bonds Less: Unamortized Discount Lease Purchase Agreement Net Pension Liability and OPEB Special Assessment Debt Security Deposits Returnable Total Long-Term Liabilities Current Maturities Long-Term Liability Net Balance January 1, 2021 $ 51,799 23,100,000 (18,564) 460,000 729,594 2,455 83,989 $24,409,273 (3,824,196) $20,585,077 Additions $ 17,092 5,890,000 (23,546) 14,955 $ 5,898,501 Reductions $ 15,663 3,730,000 59 39,942 205,894 2,455 7,173 $ 4,001,186 Current Balance Maturities December December 31,2021 31,2021 $ 53,228 $ 53,228 25,260,000 1,670,000 (42,051) 420,058 40,800 523,700 91,771 $26,306,706 $ 1,764,028 (1,764,028) $24,542,678 35 FINANCIAL FY 2021 Current Balance Balance Maturities January 1, December December 2020 Additions Reductions 31,2020 31,2020 Long-Tenn Liabilities Current Portion of Compensated Absences $ 39,195 $ 18,661 $ 6,057 $ 51,799 $ 51,799 General Obligation Bonds 22,425,000 2,100,000 1,425,000 23,100,000 3,730,000 Less: Unamortized Discount (17,703) (861) (18,564) Lease Purchase Agreement 460,000 460,000 39,942 Net Pension Liability and OPEB 646,194 83,400 729,594 Special Assessment Debt 4,805 2,350 2,455 2,455 Security Deposits Returnable 57.564 36,341 9 916 83,989 Total Long-Term Liabilities $ 23,155,055 $ 2i698i402 $ 11442.462 $ 24,409,273 $ 3i8241196 Current Maturities (1,466,515) (3,824.196) Long-Tenn Liability Net $ 21,688,540 $ 20,585,077 The following is a detailed listing of the Authority's long-term debt including general obligation bonds, lease purchase agreements, and special assessment debt at December 31, 2021: General Obligation Debt General Obligation 2015-A, due 2025 General Obligation 2017-A, due 2030 General Obligation 2017-B due 2031 General Obligation 2019-A due 2029 General Obligation 2019-B due 2023 General Obligation 2021-A due 2036 General Obligation Temporary Notes 2019-1 due 2021 General Obligation Temporary Notes 2020-1 due 2023 General Obligation Temporary Notes 2021-1 due 2023 Plus Unamortized Bond Premium Less: Unamortized Bond Discount Total General Obligation Debt Taxable Lease Purchase Agreement -Direct Borrowing Bldg. 824 Lease Purchase, due 2030 Total Long Term Debt Interest Expense in 2021 is as follows: General Obligation Bonds Special Assessment Debt Capital Leases Orii:inal Issue $ 3,075,000 10,255,000 4,835,000 675,000 3,455,000 2,345,000 2,250,000 2,100,000 3,545,000 460,000 Amortization of Bond Discount, Premium & Deferred Refundings Total Debt Interest Expense Interest Rates 1.50-3.55% 1.61-3.35% 2.00-3.00% 2.10-3.10% 2.80-3.00% 0.25-2.00% 2.50% 0.48% 0.45% 3.30% Bonds Outstandini: $ $ $ $ 430,000 9,935,000 4,735,000 555,000 1,615,000 2,345,000 2,100,000 3,545,000 18,163 (60,214) 25,217,949 420,058 25,638,007 598,007 110 14,223 126,605 738,945 36 FINANCIAL FY 2021 Annual debt service requirements to maturity for general obligation bonds and temporary notes to be paid with tax levies and rental revenue as follows: Bonds Year Outstanding Interest Due Total 2022 $ 1,670,000 $ 564,031 $ 2,234,031 2023 7,355,000 524,787 7,879,787 2024 1,760,000 454,541 2,214,541 2025 1,810,000 411,120 2,221,120 2026 1,865,000 363,633 2,228,633 2027-2031 9,960,000 983,283 10,943,283 2032-2036 840,000 49,780 889,780 $ 25,260,000 $ 3,351,175 $ 28,611,175 The Authority's outstanding 2020-1 and 2021-1 temporary notes will be refinanced in 2023 with Authority issued general obligation bonds. The Authority has entered into lease agreement as lessee for financing the Building 824 - Transportation Facility Expansion. This year, $20,694 was included in depreciation expense. This lease agreement qualifies as a capital lease and therefore have been recorded at the present value of their future minimum lease payments as of the inception date. The assets acquired through capital leases are as follows: Building 824 -Transportation Facility Expansion Less Accumulated Depreciation Net Book Value $ $ 413,874 (31,040) 382,834 Annual debt service requirements to maturity for a taxable lease purchase agreement will be paid with building and land rental revenues as follows: Lease Purchase Year Outstanding Interest Due Total 2022 $ 40,800 $ 13,528 $ 54,328 2023 42,157 12,171 54,328 2024 43,560 10,768 54,328 2025 45,009 9,319 54,328 2026 46,507 7,821 54,328 2027-2030 202,025 15,285 217,310 $ 420,058 $ 68,892 $ 488,950 37 FINANCIAL FY 2021 E. Capital Contributions Since its inception, the Authority has received capital contributions through Federal and State grants as follows: Federal State Total Inception to Date $ 37,997,481 2,465,849 $ 40,463,330 2021 $ 2,716,326 $ 2,716,326 2020 $ 1,760,718 250,000 $ 2,010,718 The Authority has designated $90,000 to be used as an insurance increase reserve or to accelerate future debt service payments. As of December 31, 2021, the reserve had been funded but not used. IV. OTHER INFORMATION A. Defined Benefit Pension Plan Description of Pension Plan. The Authority participates in a cost-sharing multiple-employer pension plan (Pension Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting/or Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System (KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS provides benefit provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49: Public employees, which includes: • State/School employees • Local employees • Police and Firemen • Judges Substantially all public employees in Kansas are covered by the Pension Plan. Participation by local political subdivisions is optional, but irrevocable once elected. Those employees participating in the Pension Plan for the Authority are included in the Local employees group. KPERS issues a stand-alone comprehensive annual financial report, which is available on the KPERS website at www.kpers.org. Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members with ten or more years of credited service may retire as early as age 55, with an actuarially reduced monthly benefit. Normal retirement is at age 65 , age 62 with ten years of credited service, or whenever a member's combined age and years of service equal 85. 38 FINANCIAL FY 2021 Monthly retirement benefits are based on a statutory formula that includes final average salary and years of service. When ending employment, members may withdraw their contributions from their individual accounts, including interest. Members who withdraw their accumulated contributions lose all rights and privileges of membership. For all pension coverage groups, the accumulated contributions and interest are deposited into and disbursed from the membership accumulated reserve fund as established by K.S.A. 74-4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lump-sum payment of up to 50% of the actuarial present value of the member's lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of the lump sum. Benefit increases, including ad hoc post-retirement benefit increases, must be passed into law by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of the State of Kansas. The 2012 Legislature made changes affecting new hires, current members and employers. A cash balance retirement plan (KPERS 3) was created for new hires starting after January 1, 2015. Normal retirement age for KPERS 3 is 65 with five years of service or 60 with 30 years of service. Early retirement is available at age 55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on the account balance at retirement. For all pension coverage groups, the retirement benefits are disbursed from the retirement benefit payment reserve fund as established by K.S.A. 74-4922. Contributions. Member contributions are established by state law and are paid by the employee according to the provisions of Section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates are determined based on the results of an annual actuarial valuation. The contributions and assets of all groups are deposited in the Kansas Public Employees Retirement Fund established by K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserve basis. For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in contribution rates for KPERS employers. Annual increases in the employer contribution rates related to subsequent benefit enhancements are not subject to these limitations. The statutory cap increase over the prior year contribution rate is 1.2% of total payroll for the fiscal year ended June 30, 2021. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rates are as follows: 2021 2020 Local Employees Actuarial Statutory Employer Emplover Rate Capped Rate 8.87% 8.87% 8.61% 8.61% 39 FINANCIAL FY 2021 Member contribution rates as a percentage of eligible compensation for the fiscal year 2021 are 6.00% for local employees. Contributions to the pension plan for the Authority were $79,143 and $75,190 for the years ended December 31, 2021 and 2020, respectively. Employer Allocations. Although KPERS administers one cost-sharing multiple-employer defined benefit pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined contribution rate by group. Following this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense are determined separately for each of the following groups of the plan: • State/School • Local • Police and Firemen • Judges To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify additions, deductions, and :fiduciary net position applicable to each group. The allocation percentages presented for each group in the schedule of employer and nonemployer allocations are applied to amounts presented in the schedules of pension amounts by employer and nonemployer. The allocation percentages for the Authority's share of the collective pension amounts as of December 31, 2021 and 2020, are based on the ratio of its contributions to the total of the employer and nonemployer contributions of the group for the fiscal years ended June 30, 2021 and 2020. The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 30, 2021, the Authority's proportion for the local employees group was 0.042484%, which was a increase of .0012% from its proportion measured at June 30, 2020. Net Pension Liability. At December 31, 2021 and 2020, the Authority reported a liability of $509,789 and $715,670, respectively, for its total proportionate share of the net pension liability. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of December 31 , 2020, which was rolled forward to June 30, 2021 , using the following actuarial assumptions: Assumptions Price inflation Salary increases, including wage increases Long-term rate ofretum, net of investment expense, and including price inflation 2.75% 3.50% to 12.00% including inflation 7.25% 40 FINANCIAL FY 2021 Mortality rates were based on the RP-2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2016. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study conducted for the three year period January 1, 2016 through December 31, 2018. The experience study is dated January 7, 2020. The long-term expected rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return ( expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates of arithmetic real rates ofreturn for each major asset class as of the most recent experience study, dated January 7, 2020, as provided by KPERS' investment consultant, are summarized in the following table: Long-term Long-term Asset class target allocation expected real rate of return U.S. Equities 23.50% S.20% Non-ll.S. flluities 23.SO 6.40 Private Equity 8.00 9.SO Private Real Estate 11.00 4.45 Yield Oliven 8.00 4.70 Real Rel.um 11.00 315 fJX«llll(OfTle 11.00 15S Short Term Investments 4.00 0.25 Total 100.00% Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the contractually required rate. The local employers do not necessarily contribute the full actuarial determined rate. Based on legislation passed in 1993 and subsequent legislation, the employer contribution rates certified by the Board may not increase by more then the statutory cap. The statutory cap was 1.2%. Sensitivity of the Authority's proportionate share of the net pension liability to changes in the discount rate. The following presents the Authority's proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the Authority's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage point lower (6.25%) or 1-percentage point higher (8.25%) than the current rate: 41 1% Decrease (6.25%) $ 838,554 1% Decrease (6.50%) $ 1,007,234 2021 Discount Rate (7.25%) $ 509,789 2020 Discount Rate (7.50%) $ 715,670 1 % Increase (8.25%) FINANCIAL FY 2021 $ 234,079 1% Increase (8.50%) $ 470,540 Pension Expense. For the years ended December 31, 2021 and 2020, the Authority recognized pension expense of $50,796 and $89,686 respectively, which includes the changes in the collective net pension liability, projected earnings on pension plan investments, and the amortization of deferred outflows of resources and deferred inflows of resources for the current period. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31 , 2021 and 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions: 2021 2020 Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Differences Between Actual and Expected Experience $ 20,123 $ 4,616 $ 11,950 $ 9,201 Net Differences Between Projected and Actual Earnings on Investments 181,025 83,502 Changes in Proportion 34,068 33,137 40,138 49,264 Changes in Assumptions 100,353 43,107 Contributions Made After Measurement Date 43,031 35,467 Total $ 197,575 $ 218,778 $ 214,164 $ 58,465 The $43,031 reported as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 42 Deferred Year Ended Outflows (Inflows) December 31 , of Resources 2022 2023 2024 2025 2026 Total B. Deferred Compensation Plan $ $ (1,081) (8,824) (18,175) (40,318) 4,164 (64,234) FINANCIAL FY 2021 The Authority offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all Authority 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 Authority's general creditors. C. Flexible Benefit Plan (I.R.C. Section 125) The Authority has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All Authority employees working more than 20 hours per week are eligible to participate in the Plan beginning after thirty days of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D. Risk Management The Authority is exposed to various levels of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. There has been no significant reduction in the Authority's insurance coverage from the previous year. In addition, there have not been settlements in excess of the Authority's coverage in any of the prior three years. E. Contingent Liabilities The Authority 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 are subject to audit. Any disallowed claims resulting from such audits could become a liability of the Authority. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the Authority at December 31, 2021 and 2020. 43 FINANCIAL FY 2021 F. Other Postemployment Benefits (OPED) As a component unit of the City of Salina, the Authority participates in the City's defined benefit health care plan that is administered by the City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. K.S.A 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. As a component unit of the primary government, the Authority is not required to make contributions to the plan. The OPEB cost, actuarial valuations of the ongoing plan and net OPEB obligations for the Authority as a sub-group of the plan, are calculated and recorded in the City's Comprehensive Annual Financial Report. G. Other Postemployment Healthcare Benefits (KPERS) Plan Description. The Authority participates in the KPERS Long-Term Disability plan, a single-employer defined benefit other postemployment benefit (OPEB) plan (the Plan), which is administered by the Kansas Public Employees Retirement System (KPERS). The Plan provides long-term disability benefits and a life insurance benefit for disabled members to KPERS members, as provided by K.S.A. 74-4925. The Plan is administered through a trust held by KPERS that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. Benefits. Benefits are established by statute and may be amended by the KPERS Board of Trustees. The Plan provides long-term disability benefits equal to 60 percent (prior to January 1, 2006, 66 2/3 percent) of annual compensation, offset by other benefits. Members receiving long-term disability benefits also receive credit towards their KPERS retirement benefits and have their group life insurance coverage continued under the waiver of premium provision. The monthly long-term disability benefit is 60 percent of the member's monthly compensation, with a minimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income, which include Social Security primary disability or retirement benefits, workers compensation benefits, other disability benefits from any other sources by reason of employment, and earnings from any form of employment. If the disability begins before age 60, benefits are payable while the disability continues until the member's 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits are payable while the disability continues, for a period of five years or until the member retires, whichever occurs first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime. The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member's annual rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the time of the last date on payroll. If the member has been disabled for five or more years, the annual compensation or salary rate at the time of death will be 44 FINANCIAL FY 2021 indexed using the consumer price index, less one percentage point, to compute the death benefit. If a member is diagnosed as terminally ill with a life expectancy of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the group life insurance coverage to an individual insurance policy. Employees Covered by Benefit Terms. At the valuation date, the following members were covered by the benefit terms: Active Employees Disabled Employees Total 2021 14 14 2020 14 14 Total OPEB Liability. The Authority's total KPERS OPEB liability of $13,911 and $13,924 for December 31, 2021 and 2020, respectively, which was measured as of June 30, 2021 and 2020 and was determined by an actuarial valuation as of December 31, 2020 and 2019, which was rolled forward to June 30, 2021 and 2020, using the following actuarial assumptions: Discount Rate Implicit Inflation Rate Mortality Rates 2.16% for 2021 and 2.21 % for 2020 2.75% Local Males: 90% ofRP-2014 M Total Dataset +2 Local Females: 90% ofRP-2014 F Total Dataset+ 1 Generational mortality improvements were projected for future years using MP-2021 Post-disability mortality rates are included in long-term disability claim termination rates. Salary Increases 3.50% to 10.00% based on years of service Payroll Growth 3.00% Actuarial Cost Method Entry Age Normal The discount rate was based on the bond buyer general obligation 20-bond municipal index. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study for the period of January 1, 2016 through December 31, 2018. Changes in the Total OPEB Liability Balance at December 31, 2020 $ 13,924 ----'----Changes for the Year: Service Cost Interest on Total OPEB Liability Effect of Economic/Demographic Gains or Losses Effect of Assumptions Changes or Inputs Benefit Payments Net Changes Balance at December 31, 2021 3,797 392 (4,212) 10 (13) $ 13,911 --------- 45 I FINANCIAL FY 2021 Sensitivity of the Total KPERS OPEB Liability to Changes in the Discount Rate. The following presented the total KPERS OPEB liability of the Authority, as well as what the Authority's total KPERS OPEB liability would be if it were calculated using a discount rate that is I-percentage-point lower (1.16%) or I-percentage-point higher (3 .16%) than the current discount rate: 2021 1% Decrease Discount Rate 1% Increase (1.16%) (2.16%) (3.16%2 $ 14,040 $ 13,911 $ 13,649 2020 1% Decrease Discount Rate 1% Increase (1.16%) (2.16%) (3.16%) $ 14,114 $ 13,924 $ 13,610 Sensitivity of the Total KPERS OPEB Liability to Changes in the Healthcare Cost Trend Rates. The following presented the total KPERS OPEB liability of the Authority calculated using the current healthcare cost trend rates as well as what the Authority's total KPERS OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates. The reader should note that healthcare trend rates do not affect the liabilities related to the long-term disability benefits sponsored by KPERS, but this exhibit is provided as it is a required disclosure under GASB 75. 2021 2020 1% Decrease $ 13,911 13,924 Health Cost Trend Rates $ 13,911 13,924 1% Increase $ 13,911 13,924 For the year ended December 31, 2021 and 2020, the Authority recognized OPEB expense of $10,748 and $11,170, respectively. Deferred Outflows of Resources and Deferred Inflows of Resources. The Authority reported deferred outflows and inflows related to other postemployment benefits from the following sources: Differences Between Actual and Expected Experience Changes in Assumptions Benefit Payments Made After Measurement Date Total 2021 2020 Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources $ -$ 10,603 803 123 $ 803 $ 10,726 ---- Resources Resources $ -$ 897 3,830 7,813 148 $ 4,727 $ 7,961 ====-- Amounts reported as deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: 46 FINANCIAL FY 2021 Year Ended December 31, 2022 $ (1,343) 2023 (1,343) 2024 (1,343) 2025 (1,343) 2026 (1,335) Thereafter (3,216) Total $ (9,923) H. Environmental Matter The U.S. Department of Defense transferred property located at the fonner Schilling Air Force Base (the Base or Site) to the Authority on or about September 9, 1966. The property is now known to contain areas of extensive soil and groundwater contamination, which is a result of the use and disposal of chlorinated solvents during military operations at the Base from 1942 until Base closure in 1965. The U.S. Department of Defense is responsible for the investigation and remediation of contamination caused by military activities at current and former military bases. The U.S. Army Corps of Engineers (Corps) is the lead agency for the Department at formerly used defense sites. The Corps has investigated the soil and groundwater contamination at the Site under the regulatory oversight of the U.S. Environmental Protection Agency (EPA) and the Kansas Department of Health and Environment (KDHE). The Site is not designated as a National Priority List Superfund site, but investigation and remediation are required to be in compliance with the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). A November 23, 2020, Consent Decree approved by the U.S. District Court for the District of Kansas provides the Salina Public Entities the funds necessary to undertake the cleanup of the former Schilling AFB environmental contamination without requiring local matching funds. The project will be administered by means of the November 3, 2020 Former Schilling Air Force Base Site Environmental Project Management Agreement approved by the Salina Public Entities' respective governing boards. The management agreement provides for the administrative structure necessary to enable the Salina Public Entities to collectively complete the cleanup activities detailed in the KDHE CAD. On January 6, 2021, the U.S. Treasury transferred $65,900,000 to the City of Salina's "Former SAFB Environmental Project Fund" established by City ordinance for the purpose of segregating the settlement proceeds from all other City funds. In March 2021, KDHE approved an amended Consent and Final Order (CAFO) that reaffirms the KDHE's July 2019, Corrective Action Decision (CAD) scope of work for final Remedial Design (RD) and Remedial Action (RA). The final RD and RA work will be funded by funds on deposit in the Former SAFB Environmental Project Fund. Once the remedial action is completed the site will be CERCLA compliant. 47 FINANCIAL FY 2021 Based on the terms of the Court-approved Consent Decree and presently known information concerning total estimated costs for the project, the Authority does not expect but acknowledges the potential for future financial liability. At this time, however, that potential liability is regarded by the Authority as sufficiently contingent that no reasonable estimate of the potential liability can be made. Therefore, no liability related to the matter has been recorded. I. Rental Income Under Operating Leases A significant portion of the operating revenue of the Authority is generated through the leasing of airport and building space to airport fixed base operators and others on a fixed fee as well as a contingent rental basis. Ownership risks are retained by the Authority, and accordingly, such leases are treated as operating leases. The following is a schedule of minimum future rentals on non-cancellable operating leases to be received in each of the next five years and thereafter: J. Major Customers Years Ending December 31. 2022 2023 2024 2025 2026 Thereafter Total $ 1,758,220 1,260,191 713,503 286,395 202,431 1,313,993 $ 5,534,733 The Authority received significant operating revenue from A vflight Salina, Kansas Erosion Products, LLC., 1 Vision Aviation, Stryten Salina, LLC, and SFC Global Supply Chain. Rent from these five tenants equals 40.64% of operating revenue for the year ended December 31, 2021. Additionally, for the year ended December 31, 2020, the Authority's top five tenants A vflight Salina, Kansas, Erosion Products, LLC., 1 Vision Aviation, Exide Battery, and the United States Special Operations Command. Rent from these five tenants equals 43.02% of operating revenue. K. Non-Operating Revenue and (Expenses) Net non-operating revenue and expense consisted of the following for the years ended December 31, 2021 and 2020: 48 Mill Levy Interest Income Gain (Loss) on Sale of Assets Total Interest Expense General Obligation Bonds and Temporary Notes Special Assessment Debt Capital Leases Bond Issuance Costs Amortization of Bond Discount Total Net Non-Operating Revenue and (Expenses) L. Commitments Under Operating Lease FINANCIAL FY 2021 December 31, 2021 2020 $ 2,570,657 $ 2,639,481 1,311 2,161 154,774 (2,395,710) 2,726,742 245,932 (598,007) (646,227) (110) (215) (14,223) (84,270) (44,885) (126,6052 (125,379} (823,215) (816,706) $ 1,903,527 $ (570,774) The Authority has entered into a certain non-cancellable operating lease agreement which will expire in 2024, for the rental of office and computer equipment. During 2021 and 2020, the Authority paid $12,128 in rental fees. Minimum rentals, on an annual basis hereafter are as follows: M. Subsequent Events Years Ending December 31, 2022 2023 2024 Total $ 12,128 12,128 2,536 $ 26,792 On March 10, 2022, SkyWest Airlines notified the U.S. Department of Transportation (USDOT) that the airline intends to terminate United Express service at Salina, KS and twenty- eight other United Express communities. The SkyWest decision also impacted essential air service at the Kansas communities ofHays, Dodge City, and Liberal. The decision is not driven by any failure in the US Department of Transportation (USDOT) Essential Air Service Program (EAS) or the communities. The ongoing national pilot shortage has resulted in service cuts by all U.S. airlines. SkyWest lacks the pilots needed to meet demand and is reducing flying across its network. On June 24, 2022, SkyWest Airlines notified the USDOT of the airline's decision to withdraw the March 10, 2022 termination notice for Salina, KS. The filing rescinded the airline's notice of intent to terminate the essential air service at the Salina Regional Airport. 49 FINANCIAL FY 2021 On March 16, 2022, the SAA Board of Directors adopted a resolution authorizing up to $12.25 million in General Obligation Bond financing for the rehabilitation of two aircraft hangars and associated pavement rehabilitation. Subsequently on April 4, 2022, the City of Salina adopted an ordinance authorizing the same. The first hangar would be for the purposes of converting the existing hangar into a facility that could accommodate the painting of regional jet and narrow body jet aircraft. The Authority has an existing aircraft maintenance, repair, and overhaul (MRO) tenant on the Salina Regional Airport that is interested in leasing the hangar to expand its operations to include aircraft paint. The second hangar would be upgraded to include additional improvements in support of additional MRO capacity of the Airport. In addition to the improvements to the two aircraft hangars, the project authorization also includes the hangars associated pavements such as aprons, ramps and taxilanes. The Authority is progressing with the $12.25 authorization in a phased approach which initially included a $1 million taxable General Obligation Temporary Note (GOTN) expected to close on July 7, 2022. This 2022-1 GOTN will finance the design of the aircraft paint facility design. Completing the design will include obtaining construction bids that will allow the Authority to determine the amount of the $12.25 million needed to finance the project and secure the tenant lease agreement necessary to service the debt. 50 REQUIRED SUPPLEMENTAL lNFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Kansas Public Employees Retirement System Measurement Date Proportion of the net pension liability Proportionate share of the collective net pension liability Covered payroll from the period July 1 -June 30" Net pension liability as a percentage of covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability Notes to the Schedule Changes in assumptions. June 30 2021 0.424840% $ 509,789 $ 819,071 62.24% 76.40% December 31, 2021 June30 2Q~Q 0.041281% $ 715,670 $ 778,919 91.88% 66.30% June 30 2019 June 30, 2018 June 30, 2017 0.045289% 0.043452% 0.041662% $ 632,856 $ 605,630 $ 603,456 $ 830,413 $ 777,734 $ 708,538 76.21% 77.87% 85.17% 69.88% 68.88% 67.12% June 30, 2016 0.037666% $ 582,704 $ 645,485 90.27% 65.10% As a result of the experience study completed in November 2016, there were several changes made to the actuarial assumptions and methods since the prior valuation are as follows: •The price inflation assumption was lowered from 3.00% to 2.75%. •The investment return assumption was lowered from 8.00% to 7.75%. •The general wage growth assumption was lowered from 4.00% to 3.50%. •The payroll growth assumption was lowered from 4.00% to 3.00%. Changes from the November 2016 experience study that impacted individual groups arc listed below: June 30 2015 0.041581% $ 545,977 $ 694,613 78.60% 64.95% •The post-retirement health mortality assumption was changed to the RP-2014 Mortality Table, with adjustments to better fit the observed experience for the various KPERS groups. The most recent mortality improvement scale, MP-2016, is used to anticipate future mortality improvements in the valuation process through the next experience study. •The active member mortality assumption was modified to also be based on the RP-2014 Employee Mortality Table with adjustments. •The retirement rates for the select period (when first eligible for unreduced benefits under Rule of 85) were increased, but all other retirement rates were decreased. •Disability rates were decreased for all three groups. •The termination of employment assumption was increased for all three groups. •The interest crediting rate assumption for KPERS 3 members was lowered from 6.50% to 6.25%. As a result of the experience study completed in January 2020, there were several changes made to the actuarial assumptions and methods since the prior valuation. The changes that impact all groups were effective December 31, 2019 and include: •The investment return assumption was lowered from 7.75% to 7.25%. •The general wage growth assumption was lowered from 3.50% to 3.25%. •The payroll growth assumption was lowered from 3.00% to 2.75%. Changes from the January 2020 experience study that impacted individual groups are listed below: •Retirement rates were adjusted to partially reflect observed experience. •Termination rates were increased for most KPERS groups. • Disability rates were reduced. •Factors for the State group that are used to anticipate higher liabilities due to higher final average salary at retirement for pre-1993 hires were modified to better reflect actual experience. •The administrative expense load for contributions rates was increased from O .16% to O .18%. *Information reported above is as of the KPERS measurement date of June 30. GASB 68 requires a presentation of IO years. As of June 30, 2021 only seven years of information was available. "Covered payroll is measured as of the measurement date ending June 30. 51 Contractually required employer contribution $ Contributions in relation to the contractually required contribution Contribution deficiency (excess) $ Covered payroll" $ Contributions as a percentage of covered-employee payroll " Covered payroll is measured as of the fiscal year ended December 31. 2021 SALINA AJR.PORT AlITHORITY SCHEDULE OF EMPLOYER CONTRIBUTIONS Kansas Public Employees Retirement System Last Ten Fiscal Years 2020 2019 2018 2017 71,580 $ 75,190 $ 83,638 $ 78,940 $ 66,198 (71,580) (75,190) (83,638) (78,940) (66,198) $ $ $ $ 892,259 $ 782,417 $847,208 $840,466 $758,750 8.02% 9.61% 9.87% 9.39% 8.72% REQUlRED SUPPLEMENTAL TNFORMAT!ON FY 2021 2016 2015 2014 2013 2012 $ 61,622 $ 70,005 $ 68,904 $ 66,865 $ 66,766 (61,622) Fo,oosi (68,904) (66,865) (66,766) $ $ $ $ $ $652,874 $672,878 $709,510 $747,901 $800,522 9.44% 10.40% 9.71% 8.94% 8.34% 52 REQUIRED SUPPLEMENT AL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULE OF CHANGES lN THE SALINA AIRPORT AUTHORITY'S DEATH AND DISABILITY TOTAL OPEB LIABILITY AND RELATED RATIOS December 31, 2021 2021 2020 2019 2018 Measurement Date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB Liability Service Cost $ 3,797 $ 3,430 $ 2,843 $ 2,825 Interest Cost 392 587 541 533 Effect of Economic/Demographic Gains or Losses (4,212) (4,295) (1,324) (4,199) Effect of Assumption Changes or Inputs 10 864 152 (87) Benefit Payments Net Change in Total Liability -Beginning of Year (13) 586 2,212 (928) Total OPEB Liability-Beginning of Year 13,924 13,338 11,126 12,054 Total OPEB Liability-End of Year $ 13,911 $ 13,924 $ 13,338 $ 11,126 Covered-Employee Payroll $ 800,448 $ 801,486 $ 826.640 $ 706,882 Total OPEB liability as a percentage of covered employee payroll 1.74% 1.74% 1.61% 1.57% Actuarially determined contribution $ $ 3,831 $ 4,219 $ 2,137 Actual contribution $ $ 3,831 $ 4,219 $ 2,137 Contributions as a percentage of covered payroll 0.00% 0.48% 0.51% 0.30% Notes to Schedule Changes of Assumptions and Other Inputs Changes of assumptions and other inputs reflect the effects of changes in the discount rate from 3.58% on June 30, 2017, 3.87%onJune 30, 2018, 3.5%onJune 30, 2019, 2.21%on June 30, 2020 and 2.16%onJune 30, 2021. *GASB 75 requires presentation often years. Until a full 10-year trend is compiled, the Authority will 53 SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 January 1 to December 31 2021 2020 Operating Revenues Airfield Fuel Flowage Fees Hangar Rent Landing Fees Ramp Rent Total Airfield Building and Land Rent Agri Land Rent Building Rents Land Rents Tanlc Rent Total Building and Land Rents Other Revenue Airport Marketing Commissions ARFF Training Other Income Total Other Revenue Total Operating Revenues $ $ 180,416 $ 190,668 808,802 634,594 30,047 55,856 64,342 60,120 1,083,607 941,238 67,463 67,683 1,342,498 1,221,999 264,920 240,100 14,163 13,974 1,689,044 1,543,756 20,000 60,420 21,381 14,999 2,460 77,232 91,933 121,073 167,352 2,893,724 $ 2,652,346 54 SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 ( continued) January 1 to December 31 2021 2020 Operating Expenses Administrative A/E, Consultants, Brokers $ 38,249 $ 15,830 Airport Promotion 230,943 194,563 Bad Debt Expense 107 54,847 Computer Network Administration 30,062 42,730 Dues and Subscriptions 30,653 26,388 Employee Retirement 61,544 100,855 FICA and Medicare 68,468 56,065 Industrial Development 31,000 28,000 Insurance,Property 204,106 174,784 Insurance, Medical 194,650 172,253 Kansas Unemployment Tax 9,342 802 Legal and Accounting 55,169 32,810 Office Salaries 575,076 546,022 Office Supplies 8,222 6,647 Other Administrative 17,941 14,607 Postage 1,116 1,648 Property Taxes 136,383 130,562 Special Events 2,498 Telephone 25,386 16,729 Training 2,520 4,405 Travel and Meetings 10,590 9,473 Total Administrative Expenses $ 1,734,025 $ 1,630,020 ( continued) 55 SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 ( continued) January 1 to December 31 Maintenance Expenses Airfield Maintenance Airport Security Building Maintenance Equipment Fuel and Repairs Fire Services Grounds Maintenance Maintenance Salaries Other Maintenance Expenses Snow Removal Expense Utilities Total Maintenance Expenses Total Operating Expenses Surplus of Revenues over Expenses Before Depreciation Depreciation Operating Loss Before Non-Operating Revenues and Expenses Non-Operating Revenues and (Expenses) Mill Levy Interest Income on Investments Interest Expense Bond Issuance Costs Gain (Loss) on Sale of Assets Total Non-Operating Revenue (Expenses) Loss Before Capital Contributions Capital Contributions Net Position Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, End of Year 2021 $ 38,861 6,582 150,087 101,396 22,798 14,255 345,746 18,555 9,200 369,491 1,076,971 2,810,996 82,728 (3,065,984) (2,983,256) 2,570,657 1,311 (738,945) (84,270) 154,774 1,903,527 (1,079,729) 2,717,177 1,637,448 21,197,183 $ 22,834,631 2020 $ 70,644 666 118,472 72,011 21,936 10,960 299,035 23,084 4,599 220,298 841,705 2,471,725 180,621 (3,016,267) (2,835,646) 2,639,481 2,161 (771,821) (44,885) (2,395,710) (570,774) (3,406,420) 2,100,818 (1,305,602) 22,502,785 $ 21,197,183 56 SUPPLEMENTAL INFORMATION FY 2021 AIRFIELD IMPROVEMENTS SALINA AIRPORT AUIBORITY CAPITAL EXPENDITURES January 1 to December 31 New underground seivice and 2 ground mounted lights for Fossett Airfield perimeter security fencing improvements Airfield guidance sign and lighting upgrades Airfield ramp improvements (north of Guard ramp) Total Airfield Improvements BUILDINGS KDOR DMV course rehabilitation Bldg. 313 electrical upgrades Bldg. 394 improvements Bldg. 498 restroom improvements B520, Unit E improvements Bldg. 614 roof replacement Bldg. 655 fire supression system upgrades Bldg. 724 restroom remodel Bldg. 820 roof replacememt Bldg. 824 restroom remodel. Bldg. I 021 improvements Bldg. 1029 electrical upgrades Bldg. I 059 electrical upgrades Hangar 504 improvements Hangar 600 3 ton HV AC heat pump Hangar 606 improvements Hangar 959 improvements Total Building Improvements EQUIPMENT Aircraft rescue and firefighting equipment Airfield equipment Communications equipment Computer equipment Office equipment Shop equipment Terminal bldg. equipment Vehicles Total Equipment Additions CONSTRUCTION IN PROGRESS Airfield improvements Building improvements Total Construction in Progress LAND Rail spur upgrades TOTAL CAPITAL EXPENDITURES 2021 $ 6,565 26,581 87,412 7,463 128,021 67,388 7,200 16,903 12,749 5,011 139,287 7,282 18,935 13,218 19,583 41,705 2,780 2,780 23,156 5,191 19,957 82,808 485,933 53,524 57,336 112,469 2,492 18,811 430,437 7,025 248,919 931,013 506,319 1,273,310 1,779,629 46,198 $ 3,370,794 57 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2015-A December 31 , 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 13,693 2023 8,443 2024 6,043 2025 3,195 $ 31,374 August 28, 2015 $ 3,075,000 2.672% September 1, 2025 $ 2,645,000 $ 430,000 Bond Principal $ 175,000 80,000 85,000 90,000 $ 430,000 58 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2017-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 290,308 2023 278,463 2024 265,600 2025 228,160 2026 187,598 2027-2030 385,827 $ 1,635,956 July 12, 2017 $ 10,255,000 3.0353% September I, 2030 $ 320,000 $ 9,935,000 Bond Principal $ 515,000 525,000 1,440,000 1,475,000 1,335,000 4,645,000 $ 9,935,000 59 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENT AL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2017-B December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 141,800 2023 141,300 2024 140,550 2025 139,800 2026 139,050 2027-2031 468,600 $ 1,171,100 July 17, 2017 $ 4,835,000 2.0-3.0% September 1, 2031 $ 100,000 $ 4,735,000 Bond Principal $ 25,000 25,000 25,000 25,000 310,000 4,325,000 $ 4,735,000 60 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BONDS SERIES 2019-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 15,163 2023 13,635 2024 12,043 2025 10,385 2026 8,530 2027-2029 13,505 $ 73,261 July 10, 2019 $ 675,000 2.775% September 1, 2029 $ 120,000 $ 555,000 Bond Principal $ 65,000 65,000 65,000 70,000 70,000 220,000 $ 555,000 61 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2019-B December 31 , 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 47,705 2023 26,100 $ 73,805 July 10, 2019 $ 3,455,000 2.915% September 1, 2023 $ 1,840,000 $ 1,615,000 Bond Principal $ 745,000 870,000 $ 1,615,000 62 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BOND TEMPORARY NOTES SERIES 2020-1 December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 10,080 2023 10,080 $ 20,160 September 1, 2020 $ 2,100,000 0.480% September 1, 2023 $ $ 2,100,000 Bond Principal $ 2,100,000 $ 2,100,000 63 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2021-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 32,387 2023 30,813 2024 30,305 2025 29,580 2026 28,455 2027-2036 165,130 $ 316,670 August 17, 2021 $ 2,345,000 1.728% September 1, 2036 $ $ 2,345,000 Bond Principal $ 145,000 145,000 145,000 150,000 150,000 1,610,000 $ 2,345,000 64 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORlTY GENERAL OBLIGATION BOND TEMPORARY NOTES SERlES 2021-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 12,895 2023 15,953 $ 28,847 November 10, 2021 $ 3,545,000 0.450% September 1, 2023 $ $ 3,545,000 Bond Principal $ 3,545,000 $ 3,545,000 65 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE LEASE PURCHASE AGREEMENT 2020 December 31, 2021 Schedule of Lease Interest and Principal Payments Due in Lease Year Interest 2022 $ 13,528 2023 12,171 2024 10,768 2025 9,318 2026 7,821 2027-2030 15,287 $ 68,893 August 12, 2020 $ 460,000 3.300% September 1, 2030 $ 39,942 $ 420,058 Lease Principal $ 40,800 42,157 43,560 45,009 46,507 202,025 $ 420,058 66 SUPPLEMENTAL INFORMATION FY 2021 Insurance Policy Old Republic Insurance Company Pol. #OCA V04369405 Old Republic Insurance Company Pol. #PR00262107 Zurich Pol. #ERP4509814-02 Cincinnati Insurance Companies Pol. #ENP0563029 Cincinnati Insurance Companies Pol. #ENP0563029 Hartford Fire Insurance Company Pol. #37FA0293328-21 SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31, 2021 Type of Coverage Worker's compensation and employer's liability Bodily Injury & liability Hangar keepers Deluxe property-building, contents, stock, Vehicles & equipment Bodily injury/property damage Medical payments Uninsured motorists Underinsured motorist Inland marine -equipment Crime policy Employee theft, forgery, alteration, computer ACE American Insurance Company Public officials and employment practices liability Pol. #071465974 003 Each claim Aggregate limit Great American Alliance Ins. Co. Underground storage tank liability Pol. # KST7882933-27 Each incident Aggregate limit Defense expense limit each incident HDI Specialty Insurance Company Pol.# SCYLD2514230000 Commercial Cyber Insurance Each incident Aggregate limit Amount of Coverage $ 1,000,000 $ 2,000,000 $ 1,000,000 $ 70,000,000 $ 1,000,000 $ 5,000 $ 1,000,000 $ 1,000,000 $ 1,585,851 $ 250,000 $ 2,000,000 $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 100,000 $ 2,000,000 $ 2,000,000 67 STATISTICAL Table of Contents STATISTICAL FY 2021 This part of the Salina Airport Authority's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall financial health. Financial Trends 69-73 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Debt Capacity 74-75 This schedule presents information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Revenue Capacity 76-77 These schedules contain information to help the reader assess the government's revenue source. Operating Information 78 This schedule contains service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Demographic and Economic Information 79-82 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 68 STATISTICAL FY 2021 SALINA AIRPORT AUTHORJTY TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET POSITION HISTORY FOR YEARS ENDED DECEMBER 31, 2012 2013 2014 TOTAL REVENUES OPERA TING REVENUES Airfield $ 548,193 $ 411,522 $ 572,681 Fuel flowage fees 189,370 128,277 150,110 Building and land rent 1,365,853 1,474,057 1,136,063 Other revenue 56,752 53,902 50,499 TOTAL OPERATING REVENUES 2,160,168 2,067,758 1,909,353 TOTAL EXPENSES OPERATING EXPENSES Administrative 1,245,267 1,232,833 1,198,445 Maintenance 869,091 872,877 860,760 TOT AL OPERA TING EXPENSES 2,114,358 2,105,710 2,059,205 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 45,810 (37,952) (149,852) DEPRECIATION 2,514,587 2,588,107 2,588,599 OPERATING LOSS (2,468,777) (2,626,059) (2,738,451) NON-OPERATING INCOME AND (EXPENSES) Mill levy 1,767,338 1,788,284 1,993,889 Interest on investments and financing lease 1,500 676 437 Interest expense (1,175,063) (1,120,831) (1,087,440) Bond Issue Costs Gain (loss) on sale of assets 51,853 50,904 TOTAL NON-OPERA TING INCOME AND (EXPENSES) 593,775 719,982 957,790 LOSS BEFORE CAPITAL CONTRJBUTIONS (1,875,002) (1,906,077) (1,780,661) CAPITAL CONTRJBUTIONS 1,779,827 623,029 799,762 INCREASE (DECREASE) IN NET POSITION (95,175) (1,283,048) (980,899) NET POSITION AT YEAR END COMPOSED OF: Net investment in capital assets 25,339,916 24,818,560 24,510,104 Restricted Unrestricted 1,171,551 409,859 (262,584) $26,511,467 $ 25,228,419 $ 24,247,520 69 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY TOT AL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET POSITION HISTORY FOR YEARS ENDED DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 $ 529,973 $ 530,889 $ 510,263 $ 586,108 $ 742,672 $ 750,570 $ 903,190 189,532 145,280 202,728 194,647 185,249 190,668 180,417 1,068,335 1,174,553 1,310,833 1,383,282 1,349,788 1,543,756 1,689,044 88,663 106,144 189,476 335,855 155,249 167,352 121,073 1,876,503 1,956,866 2,213,300 2,499,892 2,432,958 2,652,346 2,893,724 1,253,045 1,183,681 1,264,135 1,567,514 1,524,897 1,630,020 1,734,025 698,173 714,188 896,488 863,656 830,538 841,705 1,076,971 1,951,218 1,897,869 2,160,623 2,431,170 2,355,435 2,471,725 2,810,996 (74,715) 58,997 52,677 68,722 77,523 180,621 82,728 2,584,667 2,569,109 2,593,092 2,761,019 2,898,650 3,016,267 3,065,984 (2,659,382) (2,510,112) (2,540,415) (2,692,297) (2,821,127) (2,835,646) (2,983,256) 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 286 3,387 974 3,745 17,954 2,161 1,3 ll (l,109,013) (964,113) (573,533) (827,143) (840,390) (771,821) (738,945) (8,329) (147,664) (73,185) (44,885) (84,270) 48,289 6,903 22,081 5,375 21,263 (2,395,710) 154,774 967,636 1,054,861 1,345,160 1,520,944 1,497,105 (570,774) 1,903,527 (1,691,746) (1,455,251) (1,195,255) (1,171,353) (1,324,022) (3,406,420) (1,079,729) 217,ll2 943,219 1,280,204 1,474,356 1,727,674 2,100,818 2,717,177 (1,474,634) (512,032) 84,949 303,003 403,652 (1,305,602) 1,637,448 22,516,034 21,862,166 19,753,708 22,491,023 21,698,665 18,717,283 16,889,510 (280,767) (138,931) 2,054,476 (391,890) 804,120 2,479,900 5,945,121 $ 22,235,267 $ 21,723,235 $ 21,808,184 $ 22,099,133 $ 22,502,785 $ 21,197,183 $ 22,834,631 70 ST A TIS TI CAL FY 2021 SALINA AIRPORT AUTHORITY CHANGES IN CASH AND CASH EQUIVALENTS HISTORY FOR YEARS ENDED DECEMBER 31, CASH FLOWS FROM OPERA TING ACTIVITIES Cash received from providing services Cash paid to employees for services Cash paid to suppliers for goods and services NET CASH PROVIDED (USED) IN OPERA TING ACTIVITIES 2012 $ 2,091,754 (784,733) (1,345,746) (38,725) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of property, plant and equipment (4,789,419) Acquisition ofland subsequently donated (net) Proceeds from capital grants 1,755,598 Change in grants receivable Proceeds from property tax 1,767,338 Proceeds from sale of capital assets Principal payments on debt (1,154,007) Proceeds of new borrowing Deferred advanced refunding Bond defeasance and issue costs paid Interest paid on long-term debt (1,190,236) NET CASH PROVIDED (USED) IN CAPITAL AND RELATED FINANCING ACTIVITIES (3,610,726) CASH FLOWS FROM INVESTING ACTIVITES Interest received on deposits 1,500 NET INCREASE (DECREASE) IN CASH (3,647,951) CASH, beginning of year 5,308,083 CASH, end of year $ 1,660,132 2013 $ 2,162,181 (766,300) (1,469,899) (74,018) (1,238,629) 623,029 1,788,284 218,361 (959,134) (1,131,523) (699,612) 676 (772,954) 1,660,132 $ 887,178 2014 $ 1,849,824 (731,571) (1,170,505) (52,252) (1,348,143) 799,762 1,993,889 81,652 (972,729) (1,099,052) (544,621) 437 (596,436) 887,178 $ 290,742 71 ST A TIS TI CAL FY 2021 SALINA AIRPORT AUTHORITY CHANGES IN CASH AND CASH EQUIVALENTS HISTORY FOR YEARS ENDED DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 $ 1,922,061 $ 1,868,694 $ 2,162,372 $ 2,621,123 $ 1,730,112 $ 3,109,625 $ 1,739,205 (698,148) (724,184) (821,501) (845,650) (841,568) (854,885) (921,910) (1,292,263) (1,124,098) (1,249,957) (578,006) (1,616,484) (2,133,137) (1,133,826) (68,350) 20,412 90,914 1,197,467 (727,940) 121,603 (316,531) (301,637) (1,489,872) (2,073,730) (2,851,457) (3,182,404) (1,501,297) (3,370,794) (2,061,088) 92,414 943,219 1,280,204 1,474,356 1,727,674 2,100,818 2,717,177 (573,638) 573,638 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 48,289 20,489 32,990 5,375 55,120 193,240 (1,007,271) (1,095,956) (1,253,283) (2,646,876) (5,337,744) (1,428,211) (3,772,338) 722,161 657,000 2,831,470 6,380,000 2,560,000 5,866,454 (1,391,470) (43,159) (8,329) (147,664) (73,185) (44,885) (84,270) (1,042,465) (972,452) (613,911) (879,978) (831,307) (787,723) (757,019) 496,406 (502,526) 1,281,546 (2,559,613) 1,109,617 1,477,095 3,363,107 286 3,387 974 3,745 17,954 2,161 1,311 428,342 (478,727) 1,373,434 (1,358,401) 399,631 1,600,859 3,047,887 290,742 719,084 240,357 1,613,791 255,390 655,021 2,255,880 $ 719,084 $ 240,357 $ 1,613,791 $ 255,390 $ 655,021 $ 2,255,880 $ 5,303,767 72 SALINA AIRPORT AUTHORJTY CAPITAL EXPENDITURE HISTORY Ten Years Ended December 31, 2021 Construction Total Fiscal Building in Capital Year Equipment Additions Land Airfield Progress Expenditures 2012 217,548 2,911,756 306,847 2,225,668 244,851 5,906,670 2013 37,532 172,219 94,514 540,392 429,468 1,274,125 2014 76,670 361,842 44,405 490,653 371,219 1,344,789 2015 144,676 57,048 20,379 30,131 71,623 323,857 2016 105,467 321,854 14,062 23,799 1,024,688 1,489,870 2017 226,478 140,422 30,617 385,751 1,290,462 2,073,730 2018 983,492 114,367 77,012 1,793,701 8,921 2,977,493 2019 388,382 2,461,044 201,006 8,675 123,297 3,182,404 2020 207,158 682,393 43,066 382,089 186,591 1,501,297 2021 931,013 485,934 46,198 128,021 1,779,630 3,370,796 Source: Salina Airport Authority Records 73 SALINA AIRPORT AUTI-IORITY GENERAL OBLIGATION DEBT SERVICE COVERAGE Ten Fiscal Years Ended December 31, 2021 GO Bond Total November Motor Capacity of General Revenue Special Financing GO Outstanding Percentage Total Fiscal Asse&ffll Vehicle Valuation Valuation Obligation Bond Assessment Leases/ Other Temporary Debt Remaining GO of Personal Year Valuation Valuation Total Total Debt Debt Debt Loans Payable Notes (All Types) Capacity Income Capita 2012 403,850,282 47,553,744 451,404,026 45,140,403 24,756,769 103,947 202,617 25,063,333 20,383,634 1.10% 449 2013 405,107,476 48,882,411 453,989,887 45,398,989 23,880,661 66,746 156,791 24,104,198 21,518,328 1.04% 431 2014 407,454,378 48,865,900 456,320,278 45,632,028 22,974,555 48,949 107,966 23,131,470 22,657,473 0.98% 415 2015 416,174,805 50,350,566 466,525,371 46,652,537 22,791,329 30,465 55,696 22,877,490 23,861,208 0.93% 410 2016 425,040,911 51,833,505 476,874,416 47,687,442 21,770,268 11 ,268 657,000 22,438,536 25,260,174 0.90% 407 2017 430,490,209 50,970,796 481,461,005 48,146,101 21,910,515 9,207 2,097,000 24,016,722 24,138,586 0.92% 439 2018 434,451,245 53,336,676 487,787,921 48,778,792 20,705,792 7,054 657,000 21,369,846 27,416,000 0.80% 393 2019 454,467,318 54,687,311 509,154,629 50,915,463 20,157,297 4,805 2,250,000 22,412,102 28,508,166 0.83% 413 2020 456,352,518 54,589,132 510,941,650 51,094,165 18,750,000 2,455 460,000 4,350,000 23,562,455 27,994,165 0.82% 437 2021 459,861,906 56,545,812 516,407,718 51,640,772 19,615,000 420,058 5,645,000 25,680,058 26,380,772 0.89% 476 Note: Details regarding the Authority's outstanding debt can be found in the notes to the financial statements. The special assessment and financing lease/other loans payable debt figures are shown for informational purposes only and not required by statute to be included in the remaining capacity calculation. See the Schedule of Demographic and Economic Statistics on page 81 for personal income and population data. N/A = Data not yet available 74 SALINA AIRPORT AUTHORITY LOCAL GOVERNMENT MILL LEVY RA TES, DIRECT AND OVERLAPPING Ten Years Ended December 31, 2021 Other Unified Salina Salina State Special Fiscal Saline City of School Airport Public of Taxing Year County Salina Dist. #305 Authority Library Kansas Districts Total 2012 34.823 26.19 58.649 4.007 5.452 1.5 1.176 131.797 2013 37.895 26.927 58.116 4.504 5.761 1.5 1.176 135.879 2014 38.047 27.080 55.605 4.486 6.034 1.5 1.285 134.037 2015 38.275 27.311 56.12 4.396 5.895 1.5 1.502 134.999 2016 37.508 27.603 55.743 4.396 5.893 1.5 1.51 134.153 2017 37.321 26.129 56.501 4.992 5.989 1.5 1.475 133.907 2018 38.437 28.394 57.522 4.998 6.014 1.5 1.476 138.341 2019 41.097 29.720 55.508 5.372 5.913 1.5 1.198 140.308 2020 40.606 30.650 55.454 5.037 5.88 1.5 1.206 140.333 2021 39.782 30.452 54.903 4.838 6.028 1.5 1.196 138.699 Note: Funds generated from the Salina Airport Authority's 2020 mill levy become available during calendar year 2021 and are budgeted accordingly. Source: Saline County Clerk 75 · ST A TIS TI CAL FY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL CUSTOMERS Current and Ten Years Ago 2021 2011 Percentage of Percentage of Company Income Rank Total Income Income Rank Total Income Kansas Erosion Products, LLC. 354,515 11.24% A vflight Salina 319,982 2 10.14% 1 Vision Aviation 313 ,699 3 9.94% SFC Global Chain Supply 166,567 4 5.28% 107,179 7 4.65% Stryten Salina, LLC 127,240 5 4.03% Universal Forest Products (UFP) 114,516 6 3.63% Kansas State University-Salina 91,025 7 2.89% 44,496 IO 1.93% NASA 85,364 8 2.71% Durham School Service 64,560 9 2.05% AGCO Corporation 59,182 10 1.88% Kansas Military Board (RSMS, Salina, KS) 589,028 1 25 .53% Hawker Beechcraft Corp. 236,473 2 10.25% Learjet Inc. 187,108 3 8.11% CA V Aerospace, Inc. 168,756 4 7.32% JRM Enterprises, Inc, d/b/a America Jet (formerly Moore's Midway Aviation) 156,849 5 6.80% Flower Aviation 141,709 6 6.14% Two Rivers Vending 53,210 8 2.31% Canadian Royal Air Force 51,109 9 2.22% $ 1,696,650 53.79% $ 1,735,917 75.26% Source: Salina Airport Authority Records 76 Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Salina Airport Authority Records SALINA AIRPORT AUTHORITY MILL LEVY REVENUE Ten Years Ended December 31, 2021 STATISTICAL FY 2021 Mil Levy Revenue 1,767,338 1,788,284 1,993,889 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 77 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY AIR TRAFFIC, FUEL FLOW AGE AND ENPLANEMENT TRENDS Ten Years Ended December 31, 2021 Passenger Enplanements Fiscal Air Traffic Fuel Flowage Scheduled Year Operations Gallons Air Carrier 2012 97,338 2,594,049 2,546 2013 90,131 1,757,980 2,361 2014 91,101 1,971,061 2,138 2015 96,350 2,487,603 1,124 2016 77,111 1,860,912 3,257 2017 61,141 2,622,158 8,877 2018 69,293 2,414,825 14,642 2019 76,553 2,278,659 19,710 2020 60,448 2,295,009 6,331 I 2021 80,970 2,096,198 18,353 Note: One air traffic operation equals one aircraft takeoff and landing Sources: Salina Airport Authority Records Federal Aviation Administration Office of Airport Planning and Program 1 Non-scheduled air carrier data is estimated as data not available from FAA until July of the following calendar year Non-Scheduled Total Air Carrier Enplanements 980 3,526 468 2,829 418 2,556 8,955 10,079 710 3,967 4,973 13,850 5,657 20,299 1,479 21,189 4,230 10,561 1,227 19,580 78 ST A TIS TI CAL FY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL EMPLOYERS Current Year and Ten Years Prior 2021 2011 Percentage of Percentage of Total City Total City Employer Employees Rank Employment Employees Rank Employment Salina Regional Health Center 1,800 1 6.0% 1,300 3 3.8% Unified School District No. 305 1,500 2 5.0% 1,659 2 4.8% Schwan's Global Supply Chain, Inc. 1,200 3 4.0% 1,800 1 5.2% Great Plains Manufacturing 1,175 4 4.0% 250 10 0.7% Stryten Manufacturing 800 5 2.7% 750 4 2.2% City of Salina 425 6 1.4% 465 6 1.3% Salina Vortex 385 7 1.3% Wal-Mart 250 8 0.08% 421 7 1.2% Blue Beacon International 230 9 0.08% Advance Auto Parts Distribution 190 10 0.06% Dillons Stores 343 8 1.0% Philips Lighting Company 490 5 1.4% Solomon Corporation 324 9 0.9% Total 7,955 24.6% 7,802 22.5% Source: Salina Area Chamber of Commerce 79 I ST A TISTICAL FY 2021 SALINA REGIONAL AIRPORT AND SALINA AIRPORT INDUSTRIAL CENTER Airport/Industrial Center Information Airport Code Location: Elevation Tower: FBO: Acreage+/- Runways: Aircraft Rescue & Fire As of December 31, 2021 SLN 3 miles Southwest of City of Salina 1,288 ft. Midwest ATC 0700 -2300 -365 A VFlight Airport Airport Industrial Center 35/17 North/South ILS/GPSNOR/NDB 30/12 Southeast/northwest GPS 36/18 North/South 22/4 West/East Fighting Facility ARFF Station Commercial Air Service Terminal Apron Buildings Employees M.J. Kennedy Air Terminal Bldg. -sq. ft. Vehicle parking spaces Number of Rental Car Agencies in Terminal Commercial Service Ramp -sq. ft. FBO -sq. ft. KS National Guard -sq. ft. General Aviation/ Other -sq. ft. Sq.Ft. Airport Authority Administration Operations Total Airport Authority Employees Source: Salina Airport Authority Records 2011 2,502 396 12,301 X 150 ft. 6,510 X 100 ft. 4,301 X 75 ft. 3,648 X 75 ft. 2,500 10,750 123 1 541,218 319,596 261,523 1,896,664 1,051,631 7 10 17 2021 2,502 291.65 12,301 X 150 ft. 6,510 X 100 ft. 4,301 X 75 ft. 3,648 X 75 ft. 10,000 10,750 217 1 541,218 319,596 261,523 1,896,664 1,163,471 6 9 15 80 SALINA AIRPORT AUTHORITY SALINE COUNTY DEMOGRAPHIC AND ECONOMIC STA TIS TICS Year Po(!ulation 1 2012 55,988 2013 55,740 2014 55,755 2015 55,691 2016 55,142 2017 54,734 2018 54,401 2019 54,224 2020 53,926 2021 55,691 Data Sources: 1Kansas Division of Budget 2 Bureau of Economic Analysis 2 Kansas Statistical Abstract 3U.S. Census Bureau 4 Bureau of Labor Statistics 5Kansas Department of Education Per Capita Personal Income2 41,070 43,078 43,552 44,310 46,020 47,945 47,945 49,983 53,320 n/a 2021 population is an estimated figure notes: n/a= information not yet available Last Ten Fiscal Years Total Personal Median Unemployment K-12 Graduation Income2 Age3 Rate4 Rate5 2,287,072,000 38.3 5.9% 89.4% 2,310,899,000 37.4 5.2% 87.7% 2,366,034,000 36.5 4.3% 86.8% 2,448,164,000 37.7 4.2% 87.1% 2,498,485,000 37.6 3.7% 88.5% 2,597,328,000 37.6 3.2% 84.4% 2,674,141,000 37.9 3.1% 85.5% 2,712,384,000 38.4 3.0% 87.2% 2,875,330,000 38.4 6.7% 92.9% n/a 38.6 3.8% n/a K-12 Enrollment5 9,201 9,197 8,895 9,196 9,114 8,992 8,975 8,527 8,167 8,172 81 ST A TIS TI CAL FY 2021 1 ,argest Iaxpafers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2020 assessed valuations, and the percentage each ta xpayer comprised of the total assessed valuation of the City. %of Type of Assessed Total Company Business Valuation Valuation Evergy, Inc. Utility $19,659,775 3.85% SFC Global Supply Chain Inc Manufacturing 5,927,488 1.16 Kansas Gas Service Utility 5,415,618 1.06 RAF Salina LLC Retail Shopping Center 4,680,507 0.92 S&B Motels Inc Motel 3,010,427 0.59 Central Mall Realty Holding LLC Retail Shopping Center 2.851,701 0.56 Union Pacific Railroad Co. Railroad 2,565,902 0.50 Home Improvement Menard Inc. Store 2,427,090 0.48 Individual Residential 2,367,201 0.46 Sam's Real Estate Business Trust/W almart Discount Store 2 12rn:1z .D..:1.1 Total $48,249,055 10.00% Prouert~ Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the Authority in the years shown. Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount % Amount % 2020* 5.037 $2,287,941 2,187,816 95.62% $2,189,762 95.71% 2019 5.372 2,415,817 2,357,078 97.57 2,392,216 99.02 2018 4.998 2,152,299 2,107,328 97.91 2,144,176 99.62 2017 4.992 2,132,134 2,082,567 97.68 2,128,023 99.81 2016 4.396 1,841,679 1,802,833 97.89 1,840,134 99.92 2015 4.396 1,804,238 1,768,092 98.00 1,803,826 99.98 2014 4.486 1,807,084 1,771,278 98.02 1,806,808 99.98 2013 4.504 1,817,896 1,813,028 99.73 1,814,155 99.79 2012 4.007 1,618,228 1,565,139 96.72 1,600,808 99.39 2011 4.007 1,612,235 1,560,405 96.79 1,598,276 99.13 *As of May 21, 2021 Source: Saline County 82 SALINA AIRPORT AUTHORITY Single Audit Information SALINA AIRPORT AUTHORITY Single Audit Information ,. • ADAMS BROWN,, Strategic Allies -nd CPAs adamsbrowncpa. INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Salina Airport Authority Salina, Kansas We have audited, in accordance with the auditing standards generally accepted in the United States of America, the Kansas Municipal Audit and Accounting Guide and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Salina Airport Authority, as of and for the year ended December 31, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 30, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Salina Airport Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Salina Airport Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of Salina Airport Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Salina Airport Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. above beyond 83 Salina Airport Authority Page 2 Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. AJfA/lM(!jmr,J/1,{1 LLC ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 84 ...ill • ADAMS BROWN~ Strategic Allies and CPAs ada msbrowncpa. INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors Salina Airport Authority Salina, Kansas Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Salina Airport Authority's compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of Salina Airport Authority's major federal programs for the year ended December 31, 2021. Salina Airport Authority's major federal programs are identified in the summary of auditors' results section of the accompanying schedule offindings and questioned costs. In our opinion, Salina Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2021. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance 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 audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Salina Airport Authority and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Salina Airport Authority's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Salina Airport Authority's federal programs. above beyond ,rJ-,-, ~ g5 l Salina Airport Authority Page 2 Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Salina Airport Authority's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance and will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Salina Airport Authority's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Salina Airport Authority's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of Salina Airport Authority's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Salina Airport Authority's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies 86 Salina Airport Authority Page 3 in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. AJO/'ht1f!J~, LLC ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 87 SALINA AIRPORT AUTHORITY Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2021 Federal Grantor/ Pass-through Grantor/ Program Title Federal Assistance Listing Number Agency or Pass-through Number Passed-through to Federal U.S. Department of Transportation Direct Funding Airport Improvement Program COVID-19 Funding Airport Improvement Program Airport Improvement Program Airport Improvement Program Total U.S. Department of Transportation U.S. Department of Homeland Security Direct Funding 20.106 20.106 20.106 20.106 Disaster Grants-Public Assistance (Presidentially Declared Disasters) 97.036 Total Expenditures of Federal Awards 3-20-0072-042-2021 $ 3-20-0072-041-2020 3-20-0072-043-2021 3-20-0072-045-2021 FEMA-4449-DR-KS $ Subrecipients Expenditures ==== 449,216 183,670 1,005,467 1,003,715 2,642,068 74,258 2,716,326 See accompanying notes to schedule of expenditures of federal awards. 88 SALINA AIRPORT AUTHORITY Notes to Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2021 NOTE 1 -BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Salina Airport Authority, and is presented in accordance with generally accepted accounting principles. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). NOTE 2 -INDIRECT COST RATE The Authority has elected not to use the 10% de minimis cost rate allowed under Section 200.414(f) of the Uniform Guidance. NOTE 3 -OTHER EXPENDITURES The Authority did not receive any federal awards in the form of noncash assistance, insurance, loans, or loan guarantees, and incurred no expenditures in relation thereof for the year ended December 31, 2021. 89 SALINA AIRPORT AUTHORITY Schedule of Findings and Questioned Costs For the Year Ended December 31, 2021 SECTION I -SUMMARY OF AUDITORS' RESULTS FINANCIAL STATEMENTS Type of auditors' report issued: Internal control over financial reporting: • Material weakness identified? • Significant deficiency identified? • Noncompliance material to financial statements noted? FEDERAL A WARDS Internal control over major programs: • Material weakness identified? • Significant deficiency identified? Type of auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)? Identification of major programs: Unmodified Yes X Yes X Yes X X X Unmodified Yes X Assistance Listing Number Name of Federal Program or Cluster 20.106 Airport Improvement Program Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? $750,000 Yes X No None reported No No None reported No No 90 SALINA AIRPORT AUTHORITY Schedule of Findings and Questioned Costs For the Year Ended December 31, 2021 SECTION II-FINANCIAL STATEMENT FINDINGS None noted in current year. SECTION III -FEDERAL AW ARD FINDINGS AND QUESTIONED COSTS No material findings or questioned costs are required to be disclosed under the Uniform Guidance. 91 Chairman Kent Buer SALINA Airport __ A~-- Vice Chair Tod l!ob~rg secretary Alan Eichelberger Executive Director Timothy F. Rogers. A.A.E. TrHsurer stephanie (:ar1in Past Chairman Kristin GL,nn Dir. of Administration & Finance Michelle R. Swanson, C.M. Dlr. of Facilities & construction Maynard Cunningham Manager of Operations David Sorell Business & Communications Manager Kasey L Windhorst Board Attorney Greg A. Bengtson Summary Schedule of Prior Audit Findings For the Year Ended December 31, 2021 SECTION II -FINANCIAL STATEMENT FINDINGS No matters noted for the year ended December 31, 2020. SECTION Ill -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No material findings or questioned costs are required to be disclosed under the Uniform Guidance. 92 SALINAAirport SS (| hart”. EE A Saltua Regional SLNAirport SS SALINAAirport Jududstrial Center *. 3237 Arnold | Salina, KS 67401 | 785-827-3914 www.salinaairport.com | www.flysalina.com I • 1rpo /I~ 3237 Arnold I Salina, KS 67401 j 785-827-3914 www.salinaairport.com I www.flysalina.com I' . [THIS PAGE INTENTIONALLY LEFT BLANK][TH£S PAGE INTENTIONALLY LEFT BLANKl APPENDIX C-2 2022 Unaudited Financial Statements The following financial statements for fiscal year 2022 are preliminary and unaudited. However, Authority staff believe that the actual final audited financial statements for 2022, which are expected to be released approximately three weeks after the closing of the Bonds, will not be materially different from the reports contained herein. [THIS PAGE INTENTIONALLY LEFT BLANK][THIS PAGE lNTENTIONALL Y LEFT BLANK] SALINAAIrport DECEMBER 2022 EVN EAN @ Geel Olarelelelirore| 2022 FINANCIAL STATEMENTS Salina Airport Authority Statement of Net Position Prev Year Comparison 04125/2023 As of December 31, 2022 Dec 31, 22 Nov 301 22 $ Change Dec 31, 21 $ Change %Change ASSETS Current Assets Checking/Savings Cash in Bank-Bond Funds 995,068 1,019,481 -24,413 2,651,156 -1,656,088 -62% Cash in bank-Operating Funds 2,121,973 1,966,244 155,729 1,633,363 288,610 16% Cash in Bank -Mill Levy 468,461 734,865 -266,404 818,646 -350,165 -43% Total Checking/Savings 3,585,502 3,720,590 -135,088 5,303,165 -1,717,663 -32% Accounts Receivable 15 · Accounts Receivable 90,230 192,178 -101,948 92,559 -2,329 -3% Total Accounts Receivable 90,230 192,178 -101,948 92,559 -2,329 -3% other Current Assets Other current assets 321,115 28,622 292,493 1,469,995 -1,148,880 -78% 1499 · Undeposited Funds 2,905 10,222 -7,317 602 2,303 383% Total Other Current Assets 324,020 38,844 285,176 1,470,597 -1,146,577 -78% Total Current Assets 3,999,752 3,951,612 48,140 6,866,321 -2,866,569 -42% Fixed Assets Fixed assets at cost 101,856,915 101,402,440 454,475 92,529,748 9,327,167 10% 18B · Less accumulated depreciation -52,907,274 -52,665, 187 -242,087 -50,002,230 -2,905,044 -6% Total Fixed Assets 48,949,641 48,737,253 212,388 42,527,518 6,422,123 15% Other Assets Deferred Outlflow of Resources 1,147,779 1,085,854 62,125 1,085,654 62,125 6% Total Other Assets 1,147,779 1,085,654 62,125 1,085,654 62,125 6% TOTAL ASSETS 54,097,172 531774,519 322,653 50,479,493 3,617,679 7% LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20 · Accounts payable 607,962 895,159 -287,197 759,263 -151,301 -20% Total Accounts Payable 607,962 895,159 -287,197 759,263 -151,301 -20% Credit Cards Total Credit Cards 2,851 4,110 -1,259 -515 3,366 654% Other Current Liabilities 21 · Accrued debt Interest payable 194,893 133,097 61,796 193,171 1,722 1% 22 · Deferred Mill Levy revenue 0 196,542 -196,542 0 0 0% 23 · Debt, current portion 8,397,157 1,710,800 6,686,357 1,710,800 6,686,357 391% 28 · Other current liabilities 290,507 297,781 -7,274 209,962 80,545 38% Total Other Current Liabilitie• 8,882,557 2,338,220 6,544,337 2,113,933 6,768,624 320% Total Current Liabilities 9,493,370 3,237,489 6,255,881 2,872,661 6,620,689 230% Long Term Liabilities Deferred Inflows of Resources 44,489 229,504 -185,035 229,504 -185,035 -81% Net OPEB Liability (KPERS) 9,003 13,911 -4,908 13,911 -4,908 -35% Net Pension Liability 942,015 509,789 432,226 509,789 432,226 85% Security Deposits Returnable 128,146 128,146 0 91,771 36,375 40% 26 · Debt -Long Term 24,927,207 24,927,207 0 25,638,006 -710,799 -3% 285 · Less current portion -8,397,157 -1,710,800 -6,686,357 -1,710,800 -6,686,357 -391% Total Long Tenn Liabilities 17,653,683 24,097,757 -6,444,074 24,772,181 -7,118,498 -29% Total Liabilities 27,147,053 27,335,246 -188,193 27,644,862 -497,809 -2% Equity Invested in Capital Assets net 22,610,045 22,720,883 -110,818 16,644.171 5,765,874 34% Net assets, Designated 90,000 90,000 0 90.000 0 0% 39 • Net assets, Unrestricted 134,586 23,766 110,818 4,263,012 -4,128,426 -97% Net Income 4, 115,4B8 3,604,642 510,846 1,637.448 2,478,040 151% Total Equity 26,950,119 26,439,273 510,846 22,834,631 4,115,468 18% TOTAL LIABILITIES & EQUITY 54,097,172 53,774,519 322,653 50,479,493 3,617,679 7% Salina Airport Authority 11:30 AM Profit & Loss Budget Performance 04/26/2023 January through December 2022 Accrua I Basis Jan -Dec 22 YTD Budget $ Over Budget % of Budget Annual Budget Ordinary Income/Expense Income Airfield revenue Fuel Flowage Fees 213,067 180,000 33,067 118% 180,000 Hangar rent 982,291 815,000 167,291 121% 815,000 Landing fees 39,249 30,450 8,799 129% 30,450 Ramp rent 66,748 65,000 1,748 103% 65,000 Total Airfield revenue 1,301,355 1,090,450 210,905 119% 1,090,450 Building and land rent Agri land rent 67,965 67,000 965 101% 67,000 Building rents -Long Term Short-term leasing 468,763 532,450 -63,687 88% 532,450 Building rents • Long Term • Other 954,118 817,550 136,568 117% 817,550 Total Building rents • Long Term 1,422,881 1,350,000 72,881 105% 1,350,000 Land rent Basic Land Rent 149,889 162,573 -12,684 92% 162,573 Property tax • tenant share 103,801 107,427 -3,626 97% 107,427 Total Land rent 253,690 270,000 -16,310 94% 270,000 Tank rent 14,640 14,040 600 104% 14,040 Total Building and land rent 1,759,176 1,701,040 58,136 103% 1,701,040 Other revenue Airport Marketing 20,000 25,000 -5,000 80"/4 25,000 ARFF Training 5,610 0 5,610 100% 0 Commissions 26,619 19,000 7,619 140% 19,000 Other income 78,290 74,000 4,290 106% 74,000 Total Other revenue 130,519 118,000 12,519 111% 118,000 Total Income 3,191,050 2,909,490 281,560 110% 2,909,490 Gross Profit 3,191,050 2,909,490 281,560 110% 2,909,490 Expense Administrative expenses A/E, consultants, brokers 89,315 34,000 55,315 263% 34,000 Airport promotion 254,190 245,000 9,190 104% 245,000 Bad Debt Expense 0 5,000 -5,000 0% 5,000 Computer/Network Admin. 40,734 28,500 12,234 143% 28,500 Dues and subscriptions 34,724 27,500 7,224 126% 27,500 Employee retirement 145,272 80,088 65,184 181% 80,088 FICA and medicare tax expense 72,480 67,157 5,323 108% 67,157 Industrial development 57,500 60,000 -2,500 96% 60,000 Insurance , property 217,830 230,000 -12,170 95% 230,000 Insurance, medical 198,527 220,000 -21,473 90% 220,000 Kansas unemployment tax 978 1,000 -22 98% 1,000 Legal and accounting 58,386 45,900 12,486 127% 45,900 Office salaries 615,896 550,000 65,896 112% 550,000 Office Supplies 11,015 8,155 2,860 135% 8,155 Other administrative expense 12,645 18,000 -5,355 70% 18,000 Postage 1,503 2,040 -537 74% 2,040 Property tax expense 147,174 144,565 2,609 102% 144,565 Special Events 1,553 1,500 53 104% 1,500 Telephone 21,287 25,000 -3,713 85% 25,000 Training 7,970 10,000 -2,030 80% 10,000 Travel and meetings 13,709 10,000 3,709 137% 10,000 Total Administrative expenses 2,002,688 1,813,405 189,283 110% 1,813,405 2 Jan. Dec 22 YTD Budget $ Over Budget % of Budget Annual Budget Maintenance expenses Airfield maintenance 56,476 50,000 6,476 113% 50,000 Airport Security 377 8,000 -7,623 5% 8,000 Building maintenance 230,196 150,000 80,196 153% 150,000 Equipment fuel and repairs 84,585 90,000 -5,415 94% 90,000 Fire Services 21,018 31,750 -10,732 66% 31,750 Grounds maintenance 17,687 15,000 2,687 118% 15,000 Maintenance salaries 383,515 382,124 1,391 100% 382,124 Other maintenance expenses 26,462 20,000 6,462 132% 20,000 Snow removal expense 22,135 20,000 2,135 111% 20,000 Utllltles 293,787 300,000 -6,213 98% 300,000 Total Maintenance expenses 1,136,238 1,066,874 69,364 107% 1,066,874 Total Expense 3,138,926 2,880,279 258,647 109% 2,880,279 Net Ordinary Income 52,124 29,211 22,913 178% 29,211 Other Income/Expense Other Income Capital contributed 5,325,028 6,183,632 -858,604 86% 6,183,632 Gain on sale of assets 0 20,000 -20,000 0% 20,000 Interest income Interest income on deposits 8,383 1,500 6,883 559% 1,500 Total Interest Income 8,383 1,500 6,883 559% 1,500 MIii levy income 2,431,667 2,456,055 -24,388 99% 2,456,055 Total Other Income 7,765,078 8,661,187 -896,109 90% 8,661,187 Other Expense 2021-05-26 Storm Damage Repairs 7,107 12 7,095 59,225% 12 2021-12-15 Storm Damage Repairs 71,787 12 71,775 598,225% 12 Debt interest expense net Bond issue cost 11,640 45,000 -33,360 26% 45,000 Interest Expense on Debt 706,135 564,530 141,605 125% 564,530 Total Debt Interest expense net 717,775 609,530 108,245 118% 609,530 Depreciation expense 2,905,044 2,905,044 0 100% 2,905,044 Total Other Expense 3,701,713 3,514,598 187,115 105% 3,514,598 Net Other Income 4,063,365 5,146,589 -1,083,224 79% 5,146,589 Net Income 4,116,489 5,175,800 -1,060,311 80% 5,175,800 3 Salina Air1>ort Authority 11:30AM Profit & Loss Prev Year Comparison 04/26/2023 January through December 2022 Accrual Basis Jan -Dec 22 Jan -Dec 21 $ Change % Change Ordinary Income/Expense Income Airfield revenue Fuel Flowage Fees 213,067 180,417 32,650 18% Hangar rent 982,291 808,802 173,489 21% Landing fees 39,249 30,047 9,202 31% Ramp rent 66,748 64,342 2,406 4% Total Ailfield revenue 1,301,355 1,083,608 217,747 20% Building and land rent Agri land rent 67,965 67,463 502 1% Building rents -Long Term Short-term leasing 468,763 400,972 67,791 17% Building rents -Long Term -Other 954,118 941,527 12,591 1% Total Building rents -Long Tenn 1,422,881 1,342,499 80,382 6% Land rent Basic Land Rent 149,889 163,574 -13,685 -8% Property tax -tenant share 103,801 101,346 2,455 2% Land rent -Other 0 0 0 0% Total Land rent 253,690 264,920 -11,230 -4% Tank rent 14,640 14,163 477 3% Total Building and land rent 1,759,176 1,689,045 70,131 4% Other revenue Airport Marketing 20,000 20,000 0% ARFF Training 5,610 2,460 3,150 128% Commissions 26,619 21,381 5,238 24% Other income 78,290 77,231 1,059 1% Total other revenue 130,519 121,072 9,447 8% Uncategorized Income 0 0% Total Income 3,191,050 2,893,725 297,325 10% Gross Profit 3,191,050 2,893,725 297,325 10% Expense Administrative expenses AIE, consultants, brokers 89,315 38,249 51,066 134% Airport promotion Air Serv. Mktg -SAA 246,254 225,727 20,527 9% Airport promotion -Other 7,936 5,216 2,720 52% Total Airport promotion 254,190 230,943 23,247 10% Bad Debt Expense 0 107 -107 -100% computer/Network Admin. 40,734 30,062 10,672 36% Dues and subscriptions 34,724 30,653 4,071 13% Employee retirement 145,272 61,544 83,728 136% FICA and medicare tax expense 72,460 68,468 4,012 6% Industrial development 57,500 31,000 26,500 85% Insurance , property 217,830 204,106 13,724 7% Insurance, medical 198,527 194,650 3,877 2% Kansas unemployment tax 978 9,342 -8,364 -90% Legal and accounting 58,386 55,169 3,217 6% Office salaries 615,896 574,735 41,161 7% Office Supplies 11,015 8,222 2,793 34% other administrative expense Merchant Processing Fees 6,976 10,977 -4,001 -36% other administrative expense -Other 5,669 6,964 -1,295 -19% Total Other administrative expense 12,645 17,941 -5,296 -30% Payroll expenses 0% Postage 1,503 1,116 387 35% Property tax expense 147,174 136,383 10,791 8% Special Events 1,553 2,498 -945 -38% Telephone 21,287 25,386 -4,099 -16% Training 7,970 2,520 5,450 216% Travel and meetings 13,709 10,590 3,119 29% Total Administrative expenses 2,002,688 1,733,684 269,004 16% 4 Jan -Dec 22 Jan -Dec 21 $ Change % Change Maintenance expenses Airfield maintenance 56,476 38,861 17,615 45% Airport Security 377 6,582 -6,205 -94% Building maintenance 230,196 150,087 80,109 53% Equipment fuel and repairs 84,585 101,398 -16,811 -17% Fire Services 21,018 22,798 -1,780 -8% Grounds maintenance 17,887 14,,55 3,432 24% Maintenance saJaries covro-19 Compensation 0 343 -343 -100% Maintenance saJaries -other 383,515 345,748 37,769 11% Total Maintenance salaries 383,515 346,089 37,426 11% Other maintenance expenses 26,462 18,554 7,908 43% Snow removal expense 22,135 9,200 12,935 141% Utilities 293,787 389,491 -75,704 -20% Total Maintenance expenses 1,136,238 1,077.313 58,925 5% Uncategorized Expenses 0 0 0 0% Total Expense 3,138,926 2,810,997 327,929 12% Net Ordinary Income 52,124 82,728 -30,804 -37% Other Income/Expense other Income capital contributed ARPA Grant No. 45 -Equipment 20,368 -20,368 -100% ARPA Grant No. 4S -Operating 75,272 983,347 -908,075 -92% CARES Grant No. 41 -Operating 0 183,670 -183,670 -100% CRRSAA Grant No. 43 -Equipment 280,764 -280,764 -100% CRRSAA Grant No. 43 -Operating 0 724,703 -724,703 -100% Capital contributed -Other 5,249,757 524,325 4,725,432 901% Total Capital contributed 5,325,029 2,717,177 2,607,852 96% Gain on sale of assets 0 154,774 -154,774 -100% Interest income Interest income on deposits 8,383 1,311 7,072 539% Total Interest income 8,383 1,311 7.072 539% Mill Jevy income 2,431,667 2,570,657 -138,990 -5% Total other Income 7,765,079 5,443,919 2,321,180 43% Other Expense 2021.06-26 Storm Damage Repairs 7,107 7,107 100% 2021-12-15 Storm Damage Repairs 71,787 71,787 100% Debt interest expense net Bond issue cost 11,640 84,270 -72,630 -86% Interest Expense on Debt 706,135 738,945 -32,810 -4% Total Debt interest expense net 717,775 823,215 -105,440 -13% Depreciation expense 2,905,044 3,065,984 -160,940 -5% Total Other Expense 3,701,713 3,8119,199 -187,486 -5% Net Other Income 4,063,366 1,554,720 2,508,646 161% Net Income 4,115,490 1,637,448 2,478,042 151% 5 SALINAAirport ,4~ A Mixed Sources "-, '""'a....,...,_,_ IDretl,cilntmlledtDlll'cmand rwcydMIMOdor!H11r. Printed by: lmageMaster. LLC wwwcl.....-.com [ ! . [ J J 5 t r r G r ~ r C. " C " t j C. n 2 n C. " C " " o )I 2 t: CJ n 2 n CJ " C: " C. (" CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL Re: Salina Airport Authority (Salina, Kansas), Taxable General Obligation Bonds, Series 2023-A, General Obligation Bonds, Series 2023-B (Subject to AMT), General Obligation Bonds, Series 2023-C (collectively, the "Bonds") The undersigned are the duly acting Chair and Director of Administration and Finance of the Salina Airport Authority (Salina, Kansas) (the "Issuer"), and are authorized to deliver this Certificate to the respective purchaser (collectively, the "Purchaser") of the above-referenced Bonds on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. To the knowledge of the Issuer, the information contained in the Preliminary Official Statement, other than the sections entitled "The Depository Trust Company," ["The Bond Insurance Policy,"] "Ratings," "Legal Matters," "Tax Matters," and Appendices B and C, for which the Issuer expresses no opinion, and except for the omission of certain information such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters, is true in all material respects, does not contain any untrue statement of a material fact and does not omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. 600597 .2004 7\SALEDOCS SALINA AIRPORT AUTII (SALINA, KANSAS) By:��Title�A ministratio�an7e PROOF OF PUBLICATION Jennifer DeMoss Accounting Gilmore & Bell, P.C. 100 N Main ST# 800 Wichita KS 67202-1311 LOCALiQ Salina Journal The Hutchinson News The Topeka Capital-Journal STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 04/27/2023 Sworn to and subscribed before on 04/27/2023 Notary, State of WI, Co~np, of Brown Cf-<e, ---Z, z My commision expires Publication Cost: $473.28 Order No: 8736163 600307 Customer No: PO#: THIS IS NOT AN INVOICE! Please do not use this fonn for payment remittance. DENISE ROBERTS Notary Pub I ic State of Wisconsin #of Copies: 1 PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 2 SUMMARY NOTICE OF BOND SALE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) Principal Description Sem,s Reference Amount $1,000,000* Taxable General 2023-A "Series 2023-A Obligation Bonds Bonds" General "Series 2023-B 8,870,000* Obligation Bonds 2023-B Bonds" (Subject to AMT) 6,855,000* General Obligation 2023-C "Series 2023-C Bonds Bonds" *subject to change (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Subject lo the Official Notice of Bond Sale, dated April 19, 2023, separate bids for the purchase of each series of the above- referenced bonds (collectively, the "Bonds") of the Salina Airport Author- ity (Salina, Kansas) (the "Issuer") will be received on MAY 16, 2023 until 11:00 a.m., applicable Central nme. Bids may be emailed lo~ ryd@stite!.com or submitted via PARITY". No bid of less than 98.50% of the principal amount of each series of the Bonds and accrued interest thereon to the date of delivery will be considered. Bond Details. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds will be dated June 7, 2023 (the "Dated Date"), and will become due in the years as follows: Series 2023-A Bonds. The Series 2023-A Bonds will become due in principal installments as follows: Payment Date !September 11 2032 Principal Amount* $1,000,000 Series 2023-B Bonds. The Series 2023-B Bonds will become due in principal installments as follows: Payment Date Principal Payment Date Principal (September 1) Amount• (Seot!ID!llllt 11 ~ 2032 $ 100,000 2037 $1,330,000 2033 1,140,000 2038 1,390,000 2034 1,175,000 2039 1,135,000 2035 1,225,000 2040 100,000 2036 1,275,000 Series 2023-C Bonds. The Series 2023-C Bonds will become due in principal installments as follows: Payment Date (September 1) 2039 2040 2041 Principal Amount" $350,000 1,450,000 1,615,000 • Subject to change, see the Notice. Payment Date (September 11 2042 2043 Principal ~ $1 ,685,000 1,755,000 The Bonds will bear interest from ·the date thereof at rates to be determined when the Bonds are sold as hereinafter provided, which in- terest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2024. Book-Entry-Only System. The Bonds shall be registered under a book-entry-only system administered through OTC. Paying Agent and Bond Registrar. Treasurer of the State of Kansas, Topeka, Kansas. Good Faith Deposit. Each bid shall be accompanied by a good faith deposit in the form of a wire transfer in Federal Reserve funds im- mediately available for use by the Issuer in an amount egual to 2% of the principal amount of the applicable series of the Bonds. Delivery. The Issuer will pay for preparation of the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder on or about June 7, 2023 to DTC for the account of the successful bidder. Assessed Valuation and Indebtedness. The Egualized As- sessed Tangible Valuation for Computation of Bonded Debt Limitations for the year 2022 is $558,783,273. The total general obligation indebt- edness of the Issuer as of the Dated Date, including the Bonds being sold, is $34,670,000, which includes the Bonds being sold and excludes the Issuer's Temporary Notes to be retired in connection with the issu- ance of the Bonds. Approval of Bonds. The Bonds will be sold subject to the legal opinion of GILMORE & BELL, P.C., WICHITA, KANSAS, Bond Counsel, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds and delivered to the successful bidder as and when the Bonds are delivered. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned, or from the Financial Ad- visor at the addresses set forth below: DATED: April 19, 2023. Issuer: Salina Airport Authority (Salina, Kansas) 3237 Arnold Ave Salina, Kansas 67401 Phone No. 785-827-3914 Fax No. 785-827-2221 Email: sheUis@salair org Financial Advisor: Stifel, Nicolaus & Company, Incorporated 4801 Main Street, Suite 530 Kansas Issuer, Missouri 64112 Attn: David Arteberry Phone No. 816-203-8733 Fax No. 816-203-8757 Email: arteberryd@stjfel com SK.J5479626 STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: Affidavit of Publication I am the publisher of the Kansas Register, a newspaper published pursuant toK.S.A. 75-430, and the attached is a true copy of the notice that appeared therein on the date given below: April 27, 2023 In Testimony Whereof: I hereto set my hand and cause to be affixed my official seal. Done at the City of Topeka this 27th day of April, A.D. 2023. ~~ SCOTT SCHWAB KANSAS SECRETARY OF STATE Bonds Kansas Register 451 Principal Amount* $155,000 160,000 170,000 180,000 190,000 200,000 205,000 220,000 230,000 240,000 2035 250,000 2036 265,000 Year 2037 2038 2039 2040 2041 2042 2043 2044 2045 35,000 355,000 370,000 390,000 410,000 430,000 450,000 The Bonds w · the date thereof at rates to be de ds are sold as here- inafter provid ill be payable semian- nually on Mar 1 in each year, begin- ning on March 1, Book-Entry-Only The Bonds shall under a book-entry-only system administere DTC. strar sas, Topeka, Kansas. Good Faith Deposi Each bid shall b d (in the manner set forth in the Notice) b deposit in the form of a cashier's or cer · on a bank located in the United Stat wire transfer in Federal Reserve funds · le for use by the Issu- er in the amo Delivery The Issuer wi pay for prepar, ·on of the Bonds and will deliver the ame properly pr ared, executed, and registered wi ut cost to the sue ssful bidder on or about May 25 023, to DTC for the ccount of the suc- cessful bidde Assessed V: ation and Indebtednes The Equ ed Assessed Tangible Va putation o onded Debt Limitations f is $32,493, 8. The total general obligati of the Iss ,er as of the Dated Date, inclu being so , is $15,400,000. A pprov. I of Bonds ation for Com- . the year 2022 indebtedness g the Bonds The nds will be sold subject to the lega: opinion of Gilma & Bell, P.C., Wichita, Kansas, Bond ounsel to the .er, whose approving legal opinion as o the va- lidi of the Bonds will be furnished and paid . or by the , printed on the Bonds, and delivered to he sue- I bidder as and when the Bonds are delive d. · tional Infonnation dditional information regarding the Bonds m tained from the undersigned, or from the Fina dvisor at the addresses set forth below: uer ·ce of the Board of Education A Evone Waggoner, Clerk 601 G e POBox 0 Quinter, 7752 785-754-2470 Fax: 785-754-33 clerk293@quintersc Financial Advisor Piper Sandler & Co. Attn: Dustin Avey 11635 Rosewood St. Leawood, KS 66211 913-345-3375 Fax: 913-345-339 dustin.avey@ Dated March , 2023. goner lerk Unified School Distric 93 (Published in the Kansas Register April 27, 2023.) Salina Airport Authority (Salina, Kansas) Summary Notice of Bond Sale $1,000,000* Taxable General Obligation Bonds Series 2023-A $8,870,000* General Obligation Bonds (Subject to AMT) Series 2023-B $6,855,000* General Obligation Bonds Series 2023-C (General Obligation Bonds Payable from Unlimited Ad Valorem Taxes) Bids Subject to the Official Notice of Bond Sale, dated April 19, 2023, separate bids for the purchase of each series of the above-referenced bonds (collectively, the "Bonds") of the Salina Airport Authority (Salina, Kansas) (the "Issu- er") will be received until 11:00 a.m. (Central Time) May 16, 2023. Bids may be emailed to arteberryd@stifel.com or submitted via PARITY®. No bid of less than 98.50% of the principal amount of each series of the Bonds and accrued interest thereon to the date of delivery will be considered. Bond Details The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds will be dated June 7, 2023 (the "Dated Date"), and will become due in the years as follows: (continued) Vol. 42, No. 17, April 27, 2023 © Kansas Secretary of Stale 2023 452 Kansas Register Bonds Series 2023-A Bonds The Series 2023-A Bonds will become due in principal installments as follows: Payment Date (Sept 1) 2032 Series 2023-B Bonds Principal Amount* $1,000,000 The Series 2023-B Bonds will become due in principal installments as follows: Payment Date Principal Payment Date Principal (Sept.1) Amount* (Sept. 1) Amount* 2032 $100,000 2037 $1,330,000 2033 1,140,000 2038 1,390,000 2034 1,175,000 2039 1,135,000 2035 1,225,000 2040 100,000 2036 1,275,000 Series 2023-C Bonds The Series 2023-C Bonds will become due in principal installments as follows: Payment Date Principal (Sept. 1) Amount* 2039 $350,000 2040 1,450,000 2041 1,615,000 * Subject to change, see the Notice. Payment Date (Sept. 1) 2042 2043 Principal Amount* $1,685,000 1,755,000 The Bonds will bear interest from the date thereof at rates to be determined when the Bonds are sold as here- inafter provided, which interest will be payable semian- nually on March 1 and September 1 in each year, begin- ning on March 1, 2024. Book-Entry-Only System The Bonds shall be registered under a book-entry-only system administered through OTC. Paying Agent and Bond Registrar Treasurer of the State of Kansas, Topeka, Kansas. Good Faith Deposit Each bid shall be accompanied by a good faith deposit in the form of a wire transfer in Federal Reserve funds immediately available for use by the Issuer in an amount equal to 2% of the principal amount of the applicable se- ries of the Bonds. Delivery The Issuer will pay for preparation of the Bonds and will deliver the same properly prepared, executed, and registered without cost to the successful bidder on or about June 7, 2023, to OTC for the account of the success- ful bidder. Assessed Valuation and Indebtedness The Equalized Assessed Tangible Valuation for Com- putation of Bonded Debt Limitations for the year 2022 is $558,783,273. The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $34,670,000, which includes the Bonds be- ing sold and excludes the Issuer's Temporary Notes to be retired in connection with the issuance of the Bonds. © Kansas Secretary of Stale 2023 Approval of Bonds The Bonds will be sold subject to the legal opinion of Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel, whose approving legal opinion as to the validity of the Bonds will be furnished and paid for by the Issuer, print- ed on the Bonds and delivered to the successful bidder as and when the Bonds are delivered. Additional Information Additional information regarding the Bonds may be obtained from the undersigned, or from the Financial Advisor at the addresses set forth below: Issuer Salina Airport Authority (Salina, Kansas) 3237 Arnold Ave. Salina, KS 67401 785-827-3914 Fax:785-827-2221 shellis@salair.org Financial Advisor Stifel, Nicolaus & Company, Incorporated Attn: David Arteberry 4801 Main St., Suite 530 Kansas City, MO 64112 816-203-8733 Fax: 816-203-8757 arteberryd@stifel.com Dated April 19, 2023. Michelle Swanson Director Administration and Finance Salina Airport Authority Doc. No. 051087 Bids (Published in the Kansas Register April 27, 2023.) City of Manhattan, Kansas ummary Notice of Bond Sale $29,335,000* neral Obligation Bonds Series 2023-A Subject to the Notice of md Sale (the "Notice"), separat mail and e ronic bids will be received on behal f the Director o 0 inance of the City of Manhattan, ansas (the "Issuer") the case of email bids, at th ail address set forth b ow, and in the case of elec nic bids, through PARI ntil 11:00 a.m. (Central · e) May 11, 2023, for the purch' e of the above-refer ced bonds (the "Series 2023-A Bon " "Se- ries 2023-I onds," and collectively the "Bonds"). N bid for less an $29,335,000 (100%) of the principal amo t of th eries 2023-A Bonds and accrued interest thereo da te of deli very will be considered ; and no bid for OFFICIAL STATEMENT New Issue Moody's Rating-"Aa3" The interest on the Series 2023-A Bonds is included in gross income for federal income tax purposes. In the opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the "Code''): (I) the interest on the Series 2023-B Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes but II. an item of tax preference for purposes of tl1e federal alternative minimum tax; (2) the interest on the Series 2023-C Bonds is excludable from gross income for federal income tax purposes and is !!fl!. an item of tax preference for purposes of the federal alternative tax; (3) the interest on the Bonds is exempt from income taxation by the State of Kansas; and (4) the Bonds have !1Jl1. been designated as "qualified tax- exempt obligations" within the meaning of Code§ 265(b)(3). Bond Counsel notes that for tax years beginning after December 31, 2022, interest on the Series 2023-B Bonds and Series 2023-C Bonds m,zy be included in adjusted.financial statement income of applicable corporations for purposes of determining the applicability and amount of the federal corporate alternative minimum tax. See "TAX MATTERS" in this Official Statement. $1,000,000 TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A Dated: Date of Delivery SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $8,870,000 GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) $6,855,000 GENERAL OBLIGATION BONDS SERIES 2023-C Due: As shown herein The Taxable General Obligation Bonds, Series 2023-A (the "Series 2023-A Bonds") the General Obligation Bonds, Series 2023-B (subject to AMT)(the Series 2023-B Bonds") and the General Obligation Bonds, Series 2023-C (the "Series 2023-C Bonds") (the Series 2023-A Bonds, Series 2023-B Bonds and the Series 2023-C Bonds referred to collectively herein as the "Bonds") will be issued by the Salina Airport Authority (Salina, Kansas) (the "Authority" or the "Issuer") as fully registered bonds, without coupons and, when issued, will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company ("DTC"), New York, New York. OTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of OTC, references herein to the Bond owners or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (herein defined) of the Bonds. Principal of and semiannual interest on the Bonds will be paid from moneys available therefor under the Resolution (herein defined) by the State Treasurer of Kansas, as paying agent and bond registrar (the "Paying Agent"). So long as OTC or its nominee, Cede & Co. is the Bond owner, such payments will be made directly to such Bond owner. OTC is expected, in turn, to remit such principal and interest to the OTC Participants (herein defined) for subsequent disbursement to the Beneficial Owners. Principal of the Bonds will be payable on each September 1 in the years shown on the inside cover. Interest on the Bonds will be payable on each March 1 and September 1, beginning on March 1, 2024. MATURITY SCHEDULES (see inside front cover) The Bonds constitute general obligations of the Issuer, payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas. See "THE BONDS -Security" herein. The Bonds are offered when, as and if issued by the Issuer subject to the approval of legality by Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the Issuer. Certain other matters will be passed upon by Greg Bengtson, Esq., counsel to the Issuer. It is expected that the Bonds will be available for delivery through the facilities of OTC, New York City, New York, on or about June 7, 2023. This Official Statement is dated May 17, 2023. THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUES. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. Maturity 09-01-32 Maturi!Y 09-01-33 09-01-36 Maturity 09-01-37(3) 09-01-38131 09-01-39(3) Maturity 09-01-40 09-01-43 MATURITY SCHEDULES $1,000,000 TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A Amount $1,000,000 Rate 4.300% $8,870,000 Yield 4.300% GENERAL OBLIGATION BONDS SERIES 2023-B TERM BONDS Amount Rate Yield $1,245,000 5.250% 3.670% 3,765,000 4.000 4.060 SERIAL BONDS Amount Rate Yield 1,355,000 4.000% 4.190% 1,410,000 4.000 4.280 1,095,000 4.000 4.320 $6,855,000 GENERAL OBLIGATION BONDS SERIES 2023-C TERM BONDS Amount Rate Yield $1,900,000 4.000% 3.900% 4,955,000 4.000% 4.000% Base cus1p121 794760 LA4 Base cus1p121 794760 LCO LF3 Base cus1p<21 794760 LGl LH9 us Base cus1p111 794760 LM8 LQ9 !1lCUSIP numbers have been assigned to these issues by CUSIP Global Services ("CGS") which is operated on behalf of the American Bankers Association by FactSet Research Systems, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above. The Series 2023-B Bonds and Series 2023-C Bonds maturing on or after September 1, 2033 are subject to redemption prior to maturity at the option of the Issuer beginning on September 1, 2032 and thereafter, in whole or in part at any time, at a price equal to 100% of the principal amount thereof plus interest accrued to the redemption date. The Series 2023-B and Series 2023-C Term Bonds are also subject to mandatory redemption. See "THE BONDS -Redemption Provisions" herein. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE BONDS AND EXCHANGE COMMISSION UNDER THE BONDS ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE BONDS AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE BONDS LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOK/NG STATEMENTS" AS DEFINED IN THE PRIVATE BONDS LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOK/NG STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOK/NG STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAM/NATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. SALINA AIRPORT AUTHORITY Salina Regional Airport/Industrial Center 3237 Arnold Avenue Salina, Kansas 67401 BOARD OF DIRECTORS Tod Roberg, Chair & Boardmember Stephanie Carlin, Vice Chair & Board member John O'Brien, Secretary & Boardmember Donald Boos, Treasurer & Boardmember Kristin Gunn, Past Chair & Boardmember APPOINTED OFFICIALS Timothy F. Rogers, A.A.E., Executive Director Michelle R. Swanson, C.M., Director of Administration and Finance Maynard Cunningham, Director of Facilities and Construction David Sorell, Manager of Operations Kasey Windhorst, Business and Communications Manager & Board Clerk AUTHORITY'S COUNSEL Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas CERTIFIED PUBLIC ACCOUNTANTS AdamsBrown, LLC Great Bend, Kansas BOND COUNSEL Gilmore & Bell, P.C. Wichita; Kansas MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No person has been authorized by the Issuer or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been given or authorized by the Issuer or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the Issuer from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 2 THE DEPOSITORY TRUST COMPANY................................................................................................... 8 THE FINANCING PLAN......................................................................................................................... 10 RISK FACTORS AND INVESTMENT CONSIDERATIONS......................................................................... 10 LEGAL MATTERS ................................................................................................................................. 13 TAX MATTERS..................................................................................................................................... 13 RATINGS.............................................................................................................................................. 16 MUNICIPAL ADVISOR.......................................................................................................................... 16 UNDERWRITING ................................................................................................................................. 16 ABSENCE OF MATERIAL LITIGATION................................................................................................... 17 CONTINUING DISCLOSURE................................................................................................................. 17 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 17 APPENDIX A: INFORMATION CONCERNING THE AUTHORITY THE SALINA AIRPORT AUTHORITY................................................................................................. 2 DEBT SUMMARY OF THE AUTHORITY........................................................................................... 7 FINANCIAL INFORMATION OF AUTHORITY................................................................................... 10 THE CITY OF SALINA...................................................................................................................... 15 APPENDIX B: CONTINUING DISCLOSURE UNDERTAKING APPENDIX C-1: AUTHORITY'S AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING DECEMBER 31, 2021 APPENDIX C-2: AUTHORITY'S UNUADITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING DECEMBER 31,2022 General $1,000,000 TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A SALINA AIRPORT AUTHORITY (SALINA, KANSAS} $8,870,000 GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT} INTRODUCTORY STATEMENT $6,855,000 GENERAL OBLIGATION BONDS SERIES-C This Official Statement is provided for the purpose of presenting certain information concerning the Salina Airport Authority, Salina, Kansas (the "Authority" or the "Issuer"), and the offering of the $1,000,000 Taxable General Obligation Bonds, Series 2023-A (the "Series 2023-A Bonds"), $8,870,000 General Obligation Bonds, Series 2023-B (Subject to AMT) (the "Series 2023-B Bonds"), and $6,855,000 General Obligation Bonds, Series 2023-C (the "Series 2023-C Bonds")(the Series 2023-A Bonds, Series 2023-B Bonds and Series 2023-C Bonds are collectively referred to herein as the "Bonds"), of the Issuer dated June, 7, 2023. The Series 2023-B Bonds and Series 2023-C Bonds are furthered referred to as the ''Tax-Exempt Bonds." The Bonds are being issued to provide permanent financing certain capital improvement projects of the Issuer, and to pay the costs associated with the issuance of the Bonds. See "THE FINANCING PLAN" herein. The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas (the "City"). See "THE BONDS -Security" herein. APPENDIX A, containing selected financial data relating to the Issuer, is an integral part of this Official Statement and should be read in its entirety. All financial and other information presented herein has been provided by the Issuer and other sources deemed to be reliable. The Issuer's Municipal Advisor, Stifel, Nicolaus & Company, Kansas City, Missouri, assisted to compile this information but did not independently verify the accuracy thereof. Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the section LEGAL MATTERS and accordingly expresses no opinion as to the accuracy or sufficiency of any other information contained herein. The presentation of information herein, including tables of receipts from various taxes, is intended to show recent historic information, and is not intended to indicate future or continuing trends in the financial position or other affairs of the Issuer. No representation is made that past experience, as might be shown by such financial or other information, will necessarily continue or be repeated in the future. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Resolution, hereinafter defined, of the governing body of the Issuer authorizing the issuance of the Bonds. Copies of the Resolution are available upon request to the Issuer or the Municipal Advisor. Additional Information Additional information regarding the Issuer or the Bonds, including basic Bond documentation, may be obtained from Stifel, Nicolaus & Company, Incorporated, Public Finance Department, 4801 Main Street, Suite 530 Kansas City, Missouri 64112, telephone 816-203-8733. The Issuer has provided for compliance with secondary market disclosure requirements as further described in the section titled CONTINUING DISCLOSURE. 1 THE BONDS Authority The are being issued pursuant to and in full compliance with the Constitution and statutes of the State including K.S.A. 27-315 to 27-326, inclusive, each as amended and supplemented from time to time, and resolutions adopted by the governing body of the Issuer on May 17, 2023. The authorizing resolutions for each series of the Bonds are collectively referred to herein as the "Resolution"). Security The Bonds shall be general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City. Levy and Collection of Annual Tax, Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description of the Bonds The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds shall be dated as of the Dated Date, shall become due in the amounts on the Stated Maturities, subject to redemption and payment prior to the Stated Maturities (as applicable), and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid, on the Interest Payment Dates in the manner hereinafter set forth. Designation of Paying Agent and Bond Registrar The Issuer will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Resolution. The Issuer reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the Issuer shall at all times meet the requirements of Kansas law [and shall be approved by the Bond Insurer]. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar" and "Paying Agent") has been designated by the Issuer as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. 2 Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. The "Record Date" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the Issuer of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See "THE BONDS-Book-Entry Bonds; Securities Depository." Payments Due on Saturdays. Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): 3 (a) if the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Resolution. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the 4 Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The Issuer and the Bond Registrar shall not be required {a) to register the transfer or exchange of any Series 2023-B and Series 2023-C Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or {b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Mutilated. Lost. Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (bl there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Redemption Provisions Optional Redemption -Series 2023-A Bonds. The Series 2023-A Bonds will not be subject to redemption and payment prior to their Stated Maturity. Optional Redemption -Series 2023-B Bonds. At the option of the Issuer, the Series 2023-B Bonds maturing on September 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on September 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Series 2023-B Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% {expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. 5 Mandato1y Redemption -Series 2023-B Term Bonds. (a) The Series 2023-B 2033 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-B 2033 Term Bonds *Final Maturity Principal Amount $100,000 1,145,000 Year 2032 2033* (b) The Series 2023-B 2036 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-B 2036 Term Bonds: *Final Maturity Principal Amount $1,205,000 1,255,000 1,305,000 Year 2034 2035 2036* Optional Redemption -Series 2023-C Bonds. At the option of the Issuer, the Series 2023-C Bonds maturing on September 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on September 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Series 2023-C Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. Mandatory Redemption -(a) Series 2023-C 2040 Term Bonds. The Series 2023-C 2040 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-CTerm Bonds: *Final Maturity Principal Amount $375,000 1,525,000 6 Year 2039 2040* (b) The Series 2023-C 2043 Term Bonds shall be subjectto mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on September 1 in each year, the following principal amounts of such Series 2023-C 2043 Term Bonds: * Final Maturity Principal Amount $1,590,000 1,650,000 1,715,000 Year 2041 2042 2043* Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shall determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denominations in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. Aii official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. 7 For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("OTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond certificate will be issued for each scheduled maturity of the Bonds, and will be deposited with OTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. OTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with OTC. OTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the OTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants" and together with the Direct Participants, the "Participants"). DTC has a Standard & Poor's rating of "AA+". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner'') is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of OTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other OTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts 8 such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records .. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. 9 THE FINANCING PLAN The Projects Proceeds from the sale of the Bonds, along with other available funds, will be used to provide permanent financing for the acquisition of land, construction of general aviation hangars, terminal building improvements, improvements to two existing hangar buildings owned by the Authority, taxiway upgrades and construction of a new aviation fuel facility (collectively, the "Projects"). Portions of the Projects were initially funded with proceeds from the sale of general obligation temporary notes of the Issuer. Proceeds from the sale of the Bonds will be used to redeem the outstanding notes, provide additional funding for the Projects, and pay costs associated with the issuance of the Bonds. Sources and Uses of Funds The following is a report of the sources and uses of funds associated with the Financing Plan, exclusive of accrued interest. Series 2023-A Series 2023-B Series 2023-C Sources: Principal Amount of the Bonds $1,000,000.00 $8,870,000.00 $6,855,000.00 Premium ---17,596.25 14,516.00 Available Issuer Fund 52.930.73 --- Total Funds Available $1,000,000.00 $8,940,526.98 $6,869,516.00 Uses: Redemption Fund $986,511.65 $3,549,298.31 $2,102,717.25 Improvement Fund 5,160,546.01 4,587,894.51 Costs of Issuance 9,598.35 85,137.41 65,796.74 Underwriter's Discount 3,890.00 145,545.25 113,107.50 Total Uses of Funds $1,000,000.00 $8,940,526.98 $6,869,516.00 In addition to the proceeds of the bonds, the Issuer will use additional available funds to retire the Refunded Notes and pay a portion of the costs of the Improvements. The Issuer's final allocation of the proceeds of the Bonds may differ from the sources and use shown above. RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERINGS SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECT/VE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE ISSUER OR THE UNDERWRITERS. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the Issuer or the taxing authority of the Issuer. 10 Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the Issuer in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. Debt Service Source The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. Taxpayers may also challenge the fair market value of property assigned by the county appraiser. The effects of such legislative changes and successful challenges to the appraiser's determination of fair market value could affect the Issuer's property tax collections. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material impact on the Issuer's financial situation. See "APPENDIX A - FINANCIAL INFORMATION -Property Valuations and Property Tax Levies and Collections." Kansas Public Employees Retirement System As described in "APPENDIX A -FINANCIAL INFORMATION -Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Public Employees Retirement System -Local Group (the "Plan"). Under existing law, employees make contributions and the Issuer makes all employer contributions to the Plan; neither the employees nor the Issuer are directly responsible for any unfunded accrued actuarial liability ("UAAL"). However, the Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS' Valuation Reports, the Local Group had an UAAL of approximately $1.783 billion in calendar year 2021. Premium on Bonds The initial offering prices of certain maturities of the Tax-Exempt Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof. Any person who purchases such Bonds, whether during the initial offering or in a secondary market transaction, should consider that the Tax-Exempt Bonds are subject to redemption at par under the various circumstances described under "THE BONDS -Redemption Provisions." No Additional Interest or Mandatory Redemption upon Event of Taxability The Resolution does not provide for the payment of additional interest or penalty on the Tax-Exempt Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State. 11 Suitability of Investment The federal tax exempt feature of the Tax-Exempt Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Tax-Exempt Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Tax-Exempt Bonds includable in gross income for federal income tax purposes. The Issuer has covenanted in the Resolution and in other documents and certificates to be delivered in connection with the issuance of the Tax-Exempt Bonds to comply with the provisions of the Code, including those which require the Issuer to take or omit to take certain actions after the issuance of the Tax-Exempt Bonds. Because the existence and continuation of the excludability of the interest on the Tax-Exempt Bonds depends upon events occurring after the date of issuance of the Tax-Exempt Bonds, the opinion of Bond Counsel described under "TAX MATTERS" assumes the compliance by the Issuer with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Tax-Exempt Bonds in the event of noncompliance with such provisions. The failure of the Issuer to comply with the provisions described above may cause the interest on the Tax-Exempt Bonds to become includable in gross income as of the date of issuance. Market for the Bonds Ratings. The Bonds have been assigned the financial rating set forth in the section hereof titled "RATING." There is no assurance the rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of the rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of the Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of the financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the Issuer, or a material adverse change in the financial condition of the Issuer, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Cybersecurity Risks Security breaches, including electronic break-ins, computer viruses, attacks by hackers and similar breaches could create disruptions or shutdowns of the Issuer and the services it provides, or the unauthorized disclosure of confidential personal, health-related, credit and other information. If a security breach occurs, the Issuer may incur significant costs to remediate possible injury to the affected persons, and the Issuer may be subject to sanctions and civil penalties. Any failure to maintain proper functionality and security of information systems could interrupt the Issuer's operations, delay receipt of revenues, damage its reputation, subject it to liability claims or regulatory 12 penalties and could have a material adverse effect on its operations, financial condition and results of operations. Natural Disasters or Terrorist Attacks The occurrence of a terrorist attack in the Issuer, or natural disasters, such as fires, tornados, earthquakes, floods or droughts, could damage the Issuer and its systems and infrastructure, and interrupt services or otherwise impair operations of the Issuer. Infectious Diseases State and local governmental authorities continue efforts to contain and limit the spread of COVID-19. Future revenue collections, including property tax collections that are essential to repayment of the Bonds, may deviate from historical or anticipated levels due to COVID-19 or other infectious diseases. LEGAL MATTERS Legal matters incident to the authorization, issuance, and sale of the Bonds by the Issuer are subject to the approval of Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the Issuer. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the Authority and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned "INTRODUCTORY STATEMENT," "THE BONDS," "LEGAL MATTERS," "TAX MATTERS," and "APPENDIX B -CONTINUING DISCLOSURE UNDERTAKING". Payment of the legal fee of Bond Counsel is contingent upon the delivery of the Bonds. TAX MATTERS The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in the Bonds or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Tax Status of 2023-A Bonds Interest Taxable. The interest on the Series 2023-A Bonds is included in gross income for federal income tax purposes. Opinion of Bond Counsel -Series 2023-A Bonds Kansas Tax Exemption. The interest on the Series 2023-A Bonds is exempt from income taxation by the State of Kansas. 13 Other Tax Consequences -Series 2023-A Bonds Sale, Exchange, Legal Defeasance or Retirement of Series 2023-A Bonds. Upon the sale, exchange, legal defeasance or retirement (including redemption) of a Series 2023-A Bond, an owner of the Series 2023-A Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property actually or constructively received on the sale, exchange, legal defeasance or retirement of the Series 2023-A Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Series 2023-A Bond. To the extent a Series 2023-A Bond is held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Series 2023-A Bond has been held for more than 12 months at the time of sale, exchange or retirement. Opinion of Bond Counsel -Tax-Exempt Bonds In the opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, under the law existing as of the issue date of the Bonds: Federal Tax Exemption. The interest on the Tax-Exempt Bonds including any original issue discount properly allocable to an owner thereof is excludable from gross income for federal income tax purposes. Alternative Minimum Tax-Series 2023-B Bonds. The interest on the Series 2023-B Bonds is an item of tax preference for purposes of computing the federal alternative minimum tax. Alternative Minimum Tax -Series 2023-C Bonds. The interest on the Series 2023-C Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bond Counsel's opinions are provided as of the date of the original issue of the Tax-Exempt Bonds, subject to the condition that the Issuer comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Tax-Exempt Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause the inclusion of interest on the Tax-Exempt Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Tax-Exempt Bonds Other Tax Consequences -Tax-Exempt Bonds Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Tax-Exempt Bond over its issue price. The stated redemption price at maturity of a Tax-Exempt Bond is the sum of all payments on the Tax-Exempt Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Tax-Exempt Bond is generally the first price at which a substantial amount of the Series 2023-B Bonds or the Series 2023-C Bonds, as appliable, of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Tax- Exempt Bond during any accrual period generally equals (1) the issue price of that Tax-Exempt Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Tax- Exempt Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Tax-Exempt Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Tax-Exempt Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount. Original Issue Premium . For federal income tax purposes, premium is the excess of the issue price of a Tax- Exempt Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Tax-Exempt Bond is the sum of all payments on the Tax-Exempt Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Tax-Exempt Bond is generally 14 the first price at which a substantial amount of the Series 2023-B Bonds or the Series 2023-CBonds, as applicable, of that maturity have been sold to the public. Under Code § 171, premium on tax-exempt obligations amortizes over the term of the Tax-Exempt Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Tax-Exempt Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Tax-Exempt Bond prior to its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium. Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Tax-Exempt Bond, an owner of the Tax-Exempt Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Tax-Exempt Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Tax-Exempt Bond. To the extent the Tax-Exempt Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Tax-Exempt Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Tax-Exempt Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Tax-Exempt Bonds should be aware that ownership of the Tax-Exempt Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, certain applicable corporations subject to the corporate alternative minimum tax, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Tax-Exempt Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Tax- Exempt Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Tax-Exempt Bonds, including the possible application of state, local, foreign and other tax laws. Bond Counsel notes that for tax years beginning after December 31, 2022, the interest on the Tax-Exempt Bonds may be included in adjusted financial statement income of applicable corporations for purposes of determining the applicability and amount of the federal corporate alternative minimum tax. No Other Opinions. Bond Counsel expresses no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds, except as expressly provided herein. Purchasers of the Bonds should consult their tax advisors as to the applicability of these tax consequences and other income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. 15 RATING Moody's Investors Service ("Moody's") has assigned a rating of "Aa3" to the Bonds. Any explanation as to the significance of such rating may be obtained only from said rating agency. Ratings are not recommendations to buy, sell, or hold the Bonds, and such rating may be subject to revision or withdrawal at any time by the rating agency. Any downward revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the Issuer in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement but has not independently verified the accuracy or completeness of the information contained herein. The Municipal Advisor has assisted the Issuer with other matters relating to the issuance of the Bonds. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Series 2023-A Bonds were purchased at competitive public sale by UMB Bank, N.A., Kansas City, Missouri, (the "Series 2023-A Underwriter") on the basis of lowest true interest cost. The Series 2023-A Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-A Bonds at a price equal to the principal amount of the Series 2023-A Bonds, less an underwriting discount of $3,890.000. The Series 2023-B Bonds were purchased at competitive public sale by Loop Capital Markets, LLC, San Chicago, Illinois, (the "Series 2023-B Underwriter") on the basis of lowest true interest cost. The Series 2023-B Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-B Bonds at a price equal to the principal amount of the Series 2023-B Bonds, plus a reoffering premium of $17,596.25, less an underwriting discount of $145,545.25. The Series 2023-C Bonds were purchased at competitive public sale by Robert W. Baird &Co., Inc., Milwaukee, Wisconsin, (the "Series 2023-C Underwriter") on the basis of lowest true interest cost. The Series 2023- C Underwriter has agreed, subject to certain conditions, to purchase the Series 2023-C Bonds at a price equal to the principal amount of the Series 2023-C Bonds, plus a reoffering premium of $14,516.00, less an underwriting discount of $113,107.50. The Bonds will be offered to the public initially at the prices determined to produce the yield to maturity or applicable redemption date set forth on the inside cover page of this Official Statement. The Underwriter for each Series of Bonds may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at prices other than the price stated on the inside cover page hereof and may change the initial offering price from time to time subsequent to the date hereof. In connection with the offering, the Underwriter for each Series of Bonds may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. 16 ABSENCE OF MATERIAL LITIGATION The Issuer, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the Issuer, any judgment rendered against the Issuer in such proceedings would not materially adversely affect the financial position of the Issuer. The Issuer certifies that there is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the Issuer or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act or the constitutionality or validity of the indebtedness represented by the Bonds or the validity of said Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Bonds, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the MSRB. Pursuant to the Disclosure Undertaking, the Issuer has agreed to file its Annual Report with the national repository ("EMMA") not later than June 30 immediately following the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2021. In the Bond Resolution, hereinafter defined, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B -CONTINUING DISCLOSURE UNDERTAKING." For the past five years the Issuer has complied with applicable continuing disclosure undertakings in all material respects, except: The Issuer filed its unaudited financial statements and operating data for the fiscal year ended December 31, 2018 on June 30, 2019, one day following the filing deadline required by its outstanding continuing disclosure undertakings. The Issuer received the fiscal year 2018 audit report on September 26, 2019 and filed such report on December 30, 2019. On July 13, 2021, the Issuer filed a notice of failure to file with respect to such filing. For the fiscal years ended December 31, 2017, and December 31, 2019, the Issuer inadvertently failed to link the filing of its audited financial statements for such year to the CUSIPs for all outstanding bonds. On July 12, 2021, the Issuer corrected the CUSIP linking issues described in this paragraph. CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the Issuer. This Official Statement is hereby duly approved by the governing body of the Issuer as of the date on the cover page hereof. This Official Statement is submitted in connection with the issuance of the Bonds and may not be reproduced or used as a whole or in part for any other purpose. This Official Statement does not constitute a contract between the Issuer or the Underwriter and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. 17 SALINA AIRPORT AUTHORllY SALINA, KANSAS 2022 Estimated Actual Valuation (1) 2022 Assessed Valuation General Obligation Bonds (2) FINANCIAL OVERVIEW SALINA AIRPORT AUTHORITY Population (2022 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Debt to Estimated Actual Valuation Ratio of General Obligation Debt to Estimated Assessed Valuation Outstanding Temporary Notes (3) Outstanding Lease Obligations Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ $ $ $ $ $ $ $ $ 3,705,559,200 558,783,273 34,670,000 46,868 739.74 0.94% 6.20% 0 358,352 211,737,281 246,407,281 5,257 6.65% 44.10% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled "FINANCIAL INFORMATION -Estimated Actual Valuation". (2) Includes the Bonds. (3) Does not include outstanding temporary notes to be redeemed with proceeds from the sale of the Bonds. See "THE FINANCING PLAN." (4) Includes $72,250,000 of general obligation sales tax bonds issued by Saline County. These bonds are first supported by a dedicated local option sales tax. For a more detailed explanation of the overlapping debt of the other jurisdictions, see "DEBT SUMMARY OF THE AUTHORITY -Overlapping Debt". (5) Includes outstanding general obligation bonds of the Authority and general obligation bonds of overlapping jurisdictions. A-1 THE SALINA AIRPORT AUTHORITY History and Organization The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted by the City by the surplus property and public airport authority act of the State of Kansas. The Authority was created for the purpose of accepting as surplus property portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Municipal Airport and the Salina Airport Industrial Center. In 2012, the Salina Municipal Airport was renamed the Salina Regional Airport. Relationship Between the Authority and the City. The Authority is managed and controlled by a five- member Board of Directors appointed by the City of Salina City Commission. The City Commission also approves the issuance of new general obligation debt of the Authority and approves the Authority's operational mill levy. The City does not approve the Authority's mill levy for the repayment of general obligation debt. The tax levying ability of the Authority is granted and restricted by specific Kansas statutes relating to such matters, and is not similar in some instances to the ability of the City to levy taxes. However, because the two jurisdictions maintain identical taxing boundaries, all information concerning assessed valuation, estimated actual valuation, and largest taxpayers of the City will also apply to the Authority. Additionally, information concerning assessment procedures, reappraisal and assessment ratios are all mandated by state statutes applicable equally to both governmental units. Governance. The Authority is governed by a five-member Board of Directors appointed by the governing body of the City (the "Board"). Each director serves a three-year term with at least one but no more than two terms expiring in each year. No director can serve for more than eight consecutive years. The governing body of the City maintains the right, by a majority vote, to remove any director of the Authority from Office. The Board appoints the Executive Director who is the chief executive officer of the Authority. The Executive Director and his staff of 16 employees manage and operate the Salina Regional Airport and the Salina Airport Industrial Center. The current executive director is Timothy F. Rogers, A.A.E., who has held the position since 1985. The present directors of the Authority, along with the expirations of their current terms of office, are as follows: Description Name/Title Tod Roberg, Chairman Stephanie Carlin, Vice Chairman John O'Brien, Secretary Donald Boos, Treasurer Kristin Gunn, Past Chairman Term Expires February 28, 2024 February 28, 2024 February 28, 2025 February 28, 2026 February 28, 2026 The Salina Regional Airport (the "Airport") is the oniy commercial service airport serving Salina/Saline County and the 24-county area, which comprises North Central Kansas. The Airport also services the corporate, business, private aviation and flight training needs of industry, business and individuals in the area. The Airport is also used by Kansas State University-Salina ("K-State Salina"). The campus of K-State Salina is located adjacent to the Airport. K-State Salina offers degrees in professional flight training, airframe and power plant maintenance, UAS, airport management and avionics technology. Adding to the increased enplanement count is the Airport's status as an Airport of Embarkation/Debarkation by the Fort Riley, Kansas Army Installation located just 60 miles to the east of Salina on 1- 70. The Airport also accommodates a wide variety of aircraft including business jets, military, flight training and general aviation aircraft. During 2022, the Salina Air Traffic Control Tower logged over 68,000 aircraft operations serving the needs of over 7,000 business jets, the professional flight training department of Kansas State University, general aviation and military aircraft. The Airport's fixed base operator, Avflight Salina, delivered over 2.371 million A-2 gallons of fuel to the wide variety of aircraft utilizing the Airport during 2022 and 282,730 as of February 2023. The Salina Regional Airport is served by SkyWest Airlines d/b/a United Express with daily flights to United Airlines Denver and Chicago hubs. SkyWest Airlines receives a USDOT Essential Air Service Program subsidy for daily flights at Salina. The current annual subsidy is $3,310,166 per year. During CY 2022 the Salina Airport recorded 37,835 total passengers. The Airport and Airport Industrial Center is home for over 123 businesses and organizations. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Community Economic Development Organization, the Salina Area Chamber of Commerce, and the Kansas Department of Commerce for the retention of existing business and industry and the recruitment of new business and industry. Sources of Revenue The Authority finances its operations through the local property tax levy, airfield revenues, building and land rent, and other miscellaneous sources as indicated below for the last three fiscal years: 2020 2021 2022 %of %of %of Amount Total Amount Total Amount Total Operating Revenues Airfield $941,238 17.78% $1,083,607 19.8% $1,301,354 23.1% Building & Land Rent 1,543,756 29.16 1,689,044 30.9 1,759,176 31.2 Other 167,352 3.16 121,073 2.2 130,518 2.3 Total Operating 2,652,346 50.10 $2,893,724 $3,191,048 Property Taxes $2,639,481 49.86% $2,570,657 47.0% $2,431,667 43 .2% Interest Earnings 2,161 0.04 1,311 0.02 8,383 0.10 Total Revenues $5,293,988 $5,465,692 $5,631,098 Note: Figures do not include gains on sales of assets or grants Businesses and Organizations The following is a list of the larger businesses and organizations located at the Airport and Airport Industrial Center . . ~·~':;'-~ ·'""~~ s~~~rporr f ;t ,.'i.!.kia ~ t ~~~~ ii ~ !5iB'na!s ¾ mm.--.~~ Dl!!pOD"l»:::111 -~-~:IIK.. .; ~A-riatioa. ¼dvi!Airl'mol " El3h1tl4'Ule~~'"'A~ . • ~ Rdsal~ ~~-~ .... ~. J;S I~~ :t~i JA.G'llalbls 'I ~~A,1-lK- ... ,Jet 5,tn,ffl) I fQ;Qas.AmN~Glla'liM§F :.Z • IQamu sntel'llt.,ft!l.'Dlit oali!!p af ~ • ~ 'Dmlpmt f Am..~ * ~~11tmb10dtei • Flmum-ironnww. " l'lammasfen, U:d j .~~~ • ~ A...,_.,'lma~ • .slqWet.AimDl!s4/1Ji'\U1l!li~~ " 'DmSpalUl'Cm. 5il!llDm\' Mirn:inisv.mGD A-3 33 m :;:: ~ z c::, m ::0 0 "Tl --i :I: VI "'O )> G) m r-'t" m ~ =:I 0:, s;: z " z --i m z --i 5 z )> r-r-~ ta"' ...-~ ~~"'!'91 .... ill~~ """"'"' -,.,..,., ""' ........ l m .. :Jlf.HU~.-I.U.-'1·f 1'Hf !1'Ul- 1 I 111.Jf n1.·unw11 ,:'1ll .. 1.• j g f Ji futJ · -· ' I-i1'1 ~ I h 't -~ t I , 'I ~ i ~ ~ 1..C: ~;i •:i,.. ·~ is iiitiif iiHiit-if ijlH itni i tH-t t-ifi-mU~Ji i Ii II.! i 'I 1-f. .. ! i:Wi ,,·1r1 '1.IIJP.l 111. 11 .. ~Uf dl.,i11.,UJtW1·.-'H. ff 11 .. :1, t It . J ·J'• I.·.'·· 1r J 2 ';·.·'" .. ·· ; ia.. 11,·. .,q t. . I H J " 'i .. I I . l ! i l , 1.· -1· Principal Customers According to the Authority's records, the following companies represent the ten largest sources of building and land rent revenue for the Authority for the fiscal year ending December 31, 2022. Company 1 Vision Aviation Avflight Salina Kansas Erosion Products, LLC Stryten Salina, LLC SFC Global Chain Supply Universal Forest Products (UFP) NASA Kansas State University-Salina USSOCOM (Jaded Thunder) Kansas Military Board (RSMS, Salina, KS) Revenue $398,381 361,777 282,500 210,840 131,502 114,676 88,145 87,874 84,151 50,773 % of Operating Lease Revenue* 12.48% 11.34 8.85 6.61 4.12 3.59 2.76 2.75 2.64 1.90 *Total operating and direct lease revenue for 2022 was $1,820,619. This revenue excludes funds generated from the Authority's property tax mill levy. Economic Development Activities According to the Economic Impact Study 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in April 2021, businesses and organizations at the Salina Regional Airport and Airport Industrial Center employed 7,005 employees with a total level economic activity for 2020 of approximately $1,297,934,889. The report also cited that the Airport/Airport Industrial Center accounted for 13.0% of the employment in Saline County and 35.8% of the total economic activity in Saline County. The Authority, the City, Saline County, Salina Community Economic Development Organization, and the Chamber of Commerce have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and K-State Salina. Additionally, a "build-to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In 2020, Schwan's Company broke ground on a new 400,000 square foot expansion at the existing manufacturing facility located within the Airport Industrial Center. The project has created 225 new jobs in 2023. In late 2022, production began in a portion of the facility. Construction is now nearing completion on the remaining balance. Pension and Employee Retirement Plans The Issuer participates in the Kansas Public Employees Retirement System ("KPERS") established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members each of whom serve four-year terms. The board of trustees appoints an executive director to serve as the managing officer of KPERS and manage a staff to carry out daily operations of the system. As of December 31, 2021, KPERS serves approximately 333,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: A-5 (a) Kansas Public Employees Retirement System; (bl Kansas Police and Firemen's Retirement System; and (c) Kansas Retirement System for Judges. These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest of the three plans, accounting for approximately 95% of the members. The Kansas Public Employees Retirement System is further divided into two separate groups, as follows: (a) State/School Group -includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, the majority of which comes from the State General Fund. (b) Local Group -all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan's qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a "contributory" defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The Issuer's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009), KPERS Tier 2 members (covered employment on or after July 1, 2009), or KPERS Tier 3 members (covered employment on or after January 11 2015). In 2021, the Legislature authorized the issuance of revenue bonds to provide net proceeds of up to $500 million (the "Revenue Bonds") the proceeds of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The Revenue Bonds in the principal amount of $504,535,000 were issued August 26, 2021. The repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be pledged to the repayment of the Revenue Bonds. Due to the authorization of the Revenue Bonds, the Legislature changed the State/School employer contribution rate from 14.09% to 13.33% for fiscal year 2022 and from 13.86% to 13.11% for fiscal year 2023. In 2022, the Legislature authorized additional contributions totaling $1.125 billion in four payments to be deposited into the KPERS trust fund for the School Group. Typically when such additional contributions are made by the State, the statutory employer contribution rates for the following two fiscal years are recertified by the Legislation; however the recertification has not yet occurred. For more information about the Legislature's actions related to KPERS, please see the 2021 Valuation Report referenced below. The Issuer's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The Issuer's contribution is 8.90% of the employee's gross salary for calendar year 2022. The Issuer's contribution is projected to change to 8.43% of gross compensation for calendar year 2023. In addition, the Issuer contributes 1% of the employee's gross salary for Death and Disability Insurance for covered employees. According to the Valuation Report as of December 31, 2021 (the "2021 Valuation Report") the KPERS Local Group, of which the Issuer is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1.783 billion at the end of 2021. The amount of the UAAL in 2021 changed from the previous year's amount due to the factors discussed in the 2021 Valuation Report; such report also includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group. A copy of the 2021 Valuation Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the 2021 Valuation Report, which is the most recent financial and actuarial information A-6 available on the KPERS website relating to the funded status of the KPERS Local Group. The 2021 Valuation Report sets the employer contribution rate for the period beginning January 1, 2024, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 9.26% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by the end of the actuarial period set forth in the 2021 Valuation Report. The statutory contribution rate of employers currently equals the 2021 Valuation Report's actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UAAL can be expected to diminish over time. The required employer contribution rate may increase up to the maximum statutorily allowed rate, which is 1.2% in fiscal year 2017 and thereafter. The Issuer is required to implement GASB 68 -Accounting and Financial Reporting for Pensions. KPERS produces a Schedule of Employer and Nonemployer Allocations and Schedules of Pension Amounts by Employer and Nonemployer (the "GASB 68 Report") which provides the net pension liability allocated to each KPERS participant, including the Issuer. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The Issuer has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the Issuer has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. DEBT SUMMARY OF THE AUTHORITY Current Indebtedness of the Authority Upon issuance of the Bonds, the Authority will have the following outstanding indebtedness. General Obligation Bonds: Amount Final Amount Purpose Series of Issue Maturitv Outstanding Internal Imp. & Refunding (Taxable) 2015-A $3,075,000 09-01-25 $255,000 Refunding (Taxable) 2017-A 10,255,000 09-01-30 9,420,000 Refunding 2017-B 4,835,000 09-01-31 4,710,000 Refunding 2019-A 675,000 09-01-29 490,000 Refunding (Taxable) 2019-B 3,455,000 09-01-23 870,000 Improvements (Taxable) 2021-A 2,345,000 09-01-31 2,200,000 Improvements (Taxable) 2023-A 1,000,000 09-01-32 1,000,000 Improvements (AMT) 2023-B 8,870,000 09-01-40 8,870,000 Improvements 2023-C 6,855,000 09-01-43 6,855,000 Total $34,670,000 Lease Purchase Obligation: Amount Maturity Outstanding Series Project of Issue Date Amount 2020 Building 824 Improvements• $460,000 08-01-30 $358,352 * Lease payments expected to be made from revenues generated from Authority's sublease of Building 824 to Durham School Services. A-7 Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Temporary Notes: Series 2022-1 2021-1 2020-1 Project Hangar 626 Improvements Terminal, Restrooms, Warehouse Land Acquisition Amount of Issue $1,000,000 3,545,000 2,100,000 Maturity Date 07-01-23 09-01-23 09-01-23 Outstanding Amount* $0 0 Q $0 *Redeemed with the proceeds from the sale of the Bonds. See the "THE FINANCING PLAN" herein. Annual Debt Payments of the Authority The following is a list of annual debt service requirements for the Authority's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2023-A Series 2023-B Series 2023-C Principal Interest Principal Interest Bonds Interest Bonds Interest $1,710,000 $498,753 1,760,000 454,540 $53,033 $456,780 $338,180 1,810,000 411,120 43,000 370,363 274,200 1,865,000 363,633 43,000 370,363 274,200 1,905,000 312,193 43,000 370,363 274,200 1,960,000 257,412 43,000 370,363 274,200 2,020,000 199,467 43,000 370,363 274,200 2,005,000 138,205 43,000 370,363 274,200 2,070,000 76,005 43,000 370,363 274,200 160,000 15,985 $1,000,000 43,000 $100,000 370,363 274,200 165,000 13,265 1,145,000 365,112 274,200 170,000 10,130 1,205,000 305,000 274,200 170,000 6,900 1,255,000 256,800 274,200 175,000 3,500 1,305,000 206,600 274,200 1,355,000 154,400 274,200 1,410,000 100,200 274,200 1,095,000 43,800 $375,000 274,200 1,525,000 259,200 1,590,000 198,200 1,650,000 134,600 1,715,000 68,600 Total $2,208,752 3,062,533 2,908,683 2,916,196 2,904,755 2,904,976 2,907,030 2,830,768 2,833,568 1,963,548 1,962,577 1,964,330 1,962,900 1,964,300 1,783,600 1,784,400 1,788,000 1,784,200 1,788,200 1,784,600 1,783,600 $17,945,000 $2,761,108 $1,000,000 $397,033 $8,870,000 $4,851,593 $6,855,000 $5,111,780 $47,791,516 Historical Debt Information of the Authori!Y The following table shows historical balances of outstanding general obligation bonds and temporary notes for the Authority during the most recent five-year period. Bonds/Notes Debt to Debt to Debt Outstanding Assessed Estimated Actual Per Year December 31 Valuation Valuation Po(!ulation Capita 2022 $24,590,000 4.40% 0.66% 46,868 $529.09 2021 25,217,949 4.88 0.74 46,481 538.81 2020 23,100,000 4.52 0.69 46,803 496.24 2019 22,425,000 4.40 0.68 46,550 480.03 2018 20,770,000 4.26 0.66 46,716 441.97 2017 21,990,000 4.57 0.71 46,994 464.55 A-8 Legal Debt Limits In accordance with Kansas statutes, the Authority is permitted to issue general obligation bonds in an aggregate amount not to exceed 10% of the total assessed valuation of the City. The issuance of the general obligation bonds by the Authority is subject to the approval of the governing body or, at the discretion of the governing body, a 15-day protest period. The City has unconditionally approved the issuance of the Bonds. Debt Payment Record The Authority has always met principal and interest payments on all outstanding general obligation debt when due and payable. Future Indebtedness Over the next two years, the Authority anticipates that it may need to issue additional general obligation temporary notes in an amount of approximately $3.1 million to provide additional funding for the new fuel facility project. Such notes are expected to be redeemed with federal grants and/or proceeds from the sale of general obligation bonds. See THE FINANCING PLAN -The Projects herein. The Authority is continually evaluating additional commercial and other economic opportunities. There can be no assurance that the Authority will not opt to issue additional general obligation debt to support such endeavors in the future. The issuance of general obligation bonds is at the sole discretion of the governing body of the Authority, subject to the approval of the City of Salina. The Authority will also periodically consider the issuance of non-general obligation debt such as lease purchase agreements and lease revenue bonds. Overlapping Debt The following table shows the overlapping general obligation bonded indebtedness of the Authority. The percent of an overlapping jurisdiction's debt that is applicable to the Authority is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the Authority by the total assessed valuation of such jurisdiction. Jurisdiction City of Salina(1) Unified School District No. 305(1) Saline County(2H3l (1lAs of closing date of the bonds. Amount Outstanding $69,145,000 93,575,000 72,818,554 Estimated Share of the Authority Amount $69,145,000 87,614,273 54,978,008 $211,737,281 Percentage 100.00% 93.63 75.50 (2llncludes $72,250,000 of general obligation bonds issued by Saline County which are "double barrel" obligations to be repaid first by a dedicated 0.50% local option sales and use tax, which is projected to completely cover annual debt service, but ultimately supported by a general obligation pledge of the County. (2lAs of June 2022. Source: Saline County Clerk's Office, Stifel, Nicolaus & Company, Incorporated and audited financial statements. A-9 FINANCIAL INFORMATION OF AUTHORITY Property Tax Levy Limits The Authority has the ability by statute to levy up to three mills with approval from the governing body of the City for operational purposes. An additional one mill may be levied in order to match grants, subject to a notice and protest period. These mill limits do not apply to the Authority's ability to levy unlimited taxes for the repayment of its general obligation debt. The Authority's mill levy for 2022 was 4.968 mills. The mill rate consists of a one mill levy to match grant proceeds received by the Authority, and the balance of the mill rate is used to support debt service on the Authority's general obligation bonds. The Authority has never utilized the permitted three mill levy for operations and currently has no plans to do so in the future. Tax Levies The County Clerk determines property tax levies based upon budgets submitted by taxing entities within the County and the assessed valuations provided by the Appraiser and spreads the levies on the tax rolls. The following table gives the total tax levies for all taxing jurisdictions per $1,000.00 assessed valuation of the City for the last five years. Nov Nov Nov Nov Nov 2018 2019 2020 2021 2022 .bfil!Y .bfil!Y .bfil!Y .bfil!Y ~ City of Salina 28.394 29.720 30.650 30.452 30.348 Salina Library 6.014 5.913 5.880 6.028 5.510 State Education & Other 1.500 1.500 1.500 1.500 1.500 Unified School District No. 305 57.522 55.508 55.454 54.903 53.425 Airport Authority* 4.998 5.372 5.037 4.838 4.968 Central Kansas Extension District 1.476 1.198 1.206 1.196 1.111 Saline County 38.437 41.097 40.606 39.782 38.860 Total 138.341 140.308 140.333 138.699 135.722 *Authority's historical levy includes 1 mill for matching federal grants with the remaining mills used for payment of debt service on general obligation bonds. See FINANCIAL INFORMATION OF AUTHORITY -"Property Tax Limits". Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November assessed valuation of the Authority and the City in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate Pro(!erty• Utilities Vehicle Valuation 2022 $468,723,852 $9,542,807 $25,613,362 $54,903,252 $558,783,273 2021 427,732,694 8,154,030 23,975,182 56,545,812 516,407,718 2020 423,573,121 9,343,057 23,436,340 54,589,132 510,941,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 2014 376,131,346 13,652,885 17,670,147 48,865,900 456,320,278 2013 370,390,092 17,769,120 16,948,264 48,882,411 453,989,887 A-10 Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see FINANCIAL INFORMATION -"Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides estimated actual valuations for the Authority and the City in the years indicated. Largest Taxpayers Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Residential Real Estate Equalization Ratio N/A 10.86% 10.78 11.44 11.17 11.04 11.36 11.28 11.65 11.55 Estimated Actual Value $3,705,559,200 3,392,138,959 3,325,193,918 3,292,557,745 3,150,409,123 3,097,885,103 3,046,949,034 2,968,008,193 2,917,267,724 2,889,385,914 According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2022 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. Company Evergy, Inc. SFC Global Supply Chain Inc Kansas Gas Service Sam's Real Estate Business Trust/Wal mart Salina Regional Health Properties Inc. Central Mall Realty Holding LLC S&B Motels Union Pacific Railroad Co. Menard Inc. Individual Total Property Tax Collections Type of Business Utility Manufacturing Utility Discount Store Motel Retail Shopping Center Motel Railroad Retail Shopping Center Commercial %of Assessed Total Valuation Valuation $16,402,623 2.94% 11,272,565 2.02 5,746,609 1.03 4,739,506 0.85 4,346,082 0.78 3,142,587 0.56 2,894,902 0.52 2,323,522 0.42 2,284,161 0.41 2,256,168 0.40 $55,408,725 9.92% Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and A-11 motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the Authority in the years shown. Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount ~ Amount ~ 2022* 4.968% $2,499,976 $1,496,177 59.85% $1,496,606 59.86% 2021 4.838 2,216,174 2,178,553 98.30 2,199,328 99.24 2020 5.037 2,273,827 2,251,285 99.01 2,266,239 99.67 2019 5.372 2,413,660 2,356,433 97.63 2,412,115 99.94 2018 4.998 2,152,299 2,107,328 97.91 2,151,410 99.96 2017 4.992 2,132,134 2,082,567 97.68 2,131,568 99.97 2016 4.396 1,841,679 1,802,833 97.89 1,841,353 99.98 2015 4.396 1,804,238 1,768,092 98.00 1,803,974 99.99 2014 4.486 1,807,084 1,771,278 98.02 1,806,825 99.99 2013 4.504 1,817,896 1,813,028 99.73 1,814,155 99.79 *As of March 2023 Accounting, Budgeting and Auditing Procedures The Authority's financial statements are prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. The Authority follows an accrual basis of accounting. It is the Authority's practice to annually prepare a budget report for the following calendar year. The report is developed by the executive director and submitted to the Authority's Board of Directors. Customarily, the budget for any year is completed in the December preceding such year. However, in the instance where a tax is to be levied by the Authority, a preliminary capital budget is prepared by the preceding July 28th. Kansas statutes make no provisions or requirements for the Authority to prepare a budget. The Authority also voluntarily prepares a multi- year financial forecast for long-term planning (5 to 10 years). Kansas law prohibits cities and other governmental units from creating indebtedness unless there is money on hand in the proper fund and unencumbered by previous commitments with which to pay the indebtedness. The execution of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the payment of the amount represented by the commitment. It makes no difference that the amount may not have to be paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the issuance of debt, in the form of bonds, notes, or warrants, pursuant to statutory authority, referendum or by the State Board of Tax Appeals. In the event debt is issued, funds need not be on hand for future payments. Kansas statutes make no provisions or requirements for the Authority to adhere to this cash basis law. In 2021, the Kansas Legislature passed legislation (the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c) and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the Authority) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county (including the Authority). If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify, by July 20, the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the A-12 proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (S) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to be held between August 20 and September 20, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the county clerk's notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by governing body approval of a resolution or ordinance, and thereafter the taxing subdivisions will hold the public hearing and adopt the budget by majority vote of its governing body. The amount of tax to be levied and the adopted budget must be certified to the county clerk by October 1. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over-collected based on the amount of the levy that was in excess of the revenue neutral rate. The Authority cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Bonds, or the general rating of the Authority. A change in the rating on the Bonds or a change in the general rating of the Authority may adversely impact the market price of the Bonds in the secondary market. Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the Authority are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by AdamsBrown, LLC, CPA, Great Bend, Kansas. Copies of the audit reports for the past five (5) years are on file with the Authority and are available for review. The audit for the Fiscal Year ended December 31, 2021 is attached hereto as APPENDIX C-1. The Authority's unaudited financial statements for the Fiscal Year ended December 31, 2022 are attached as APPENDIX C-2. Although the Authority believes that the information in the unaudited financial statements accurately reflects the financial condition of the Authority as of December 31, 2022, there can be no assurance that such information will not change upon audit. The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties under the direction of State statutes. The Saline County appraiser annually determines the appraised valuation of property located in the County. The appraiser's determination is based on a number of criteria established by Kansas statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates described below to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. A-13 Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. Property Assessment Rates Property subject to ad valorem taxation is divided into two classes, real property and personal property. Real property is divided into seven subclasses; there are six subclasses of personal property. The real property (Class 1) subclasses are: (i) real property used for residential purposes including multi-family mobile or manufactured homes and the real property on which such homes are located, assessed at 11.5%, (ii) agricultural land, valued on the basis of agricultural income or productivity, assessed at 30%, (iii) vacant lots, assessed at 12%, (iv) real property, owned and operated by a not-for-profit organization not subject to federal income taxation, pursuant to Code §501, assessed at 12%, (v) public utility real property, except railroad real property, assessed at the average rate that all other commercial and industrial property is assessed, assessed at 33%, (vi) real property used for commercial and industrial purposes and buildings and other improvements located on land devoted to agricultural use, assessed at 25%, and (vii) all other urban and real property not otherwise specifically classified, assessed at 30%. Tangible personal property (Class 2) subclasses are: (i) mobile homes used for residential purposes, assessed at 11.5%, (ii) mineral leasehold interests, except oil leasehold interests, the average daily production from which is 5 barrels or less, and natural gas leasehold interests, the average daily production from which is 100 mcf or less, which shall be assessed at 25%, assessed at 30%, (iii) public utility tangible personal property, including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed, assessed at 33%, (iv) all categories of motor vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985, assessed at 30%, (v) commercial and industrial machinery and equipment which if its economic life is 7 years or more, shall be valued at its retail cost, when new, less seven-year straight-line depreciation, or which, if its economic life is less than 7 years, shall be valued at its retail cost when new, less straight-line depreciation over its economic life, except that, the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property, assessed at 25%, and (vi) all other tangible personal property not otherwise specifically classified, assessed at 30%. All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants' and manufacturers' inventories, other than public utility inventories included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, is exempt from property taxation. Equalization Ratios Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to compare the assessed valuation of real property to estimated market value based on property sale prices. The study derives an equalization ratio which, when divided into assessed valuation, provides a means to approximate actual market value. According to the 2021 Preliminary Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.86%, and commercial and industrial property was 23.33%. The equalization ratio has no impact on the assessed valuation used to establish property tax rates. A-14 THE CITY OF SALINA, KANSAS Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2022 U.S. Census Bureau estimate of 46,868. The City is the county seat for Saline County, which had an estimated 2022 U.S. Census Bureau population of 53,596. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Name Trent W. Davis, M.D. Michael L. Hoppock Greg Lenkiewicz Bill Longbine Karl F. Ryan Economic Characteristics Title Mayor Vice Mayor Commissioner Commissioner Commissioner Term Expires 2024 2024 2026 2026 2024 The City of Salina benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the City. Such companies include Schwan's Global Supply Chain, Inc., Salina Vortex, GeoProbe, Bergkamp, Kasa Industrial Controls, Premier Pneumatics, Great Plains Manufacturing, PKM Steel, Crestwood Cabinets, McShares, Inc., Pepsi Cola, , Stryten Manufacturing, Advance Auto Parts Distribution Center, and One Vision Aviation. Currently, manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The government sector and wholesale trade industries make up the second tier of Salina employers. The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the City to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City's "trade pull factor" is generally within the top 10 of larger cities in Kansas according to Kansas Department of Revenue. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2022 to be 25,651 persons. The estimated median household income for the City in 2021 was $52,702, and owner-occupied housing rates in the City were 63.3%. A-15 Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot grocery store. Dick's Sporting Goods and Marshalls clothing store opened in a building formerly occupied by Sutherland Lumber Company. In addition, several new restaurants have opened or expanded, including Olive Garden, Longhorn Steakhouse, Scooter's Coffee, Starbucks, Taco Bell, Daimaru Steakhouse and YaYa's Euro Bistro. These openings and expansions are in addition to other economic development activity at the Airport Industrial Center. Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent estimated total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Schwa n's Global Supply Chain, Inc. Great Plains Manufacturing Stryten Manufacturing City of Salina Salina Vortex Saline County Walmart Source: Salina Chamber of Commerce Population Product/Business Healthcare School System Manufacturing Agricultural & Landscaping Equipment Battery Manufacturer City Government Manufacturing Local Government Discount Retail Estimated Employment 1,875 1,500 1,200 1,200 700 425 385 325 250 The City of Salina has a population that is approaching metropolitan area status. This is defined by the U.S. Census Bureau as cities with 50,000 inhabitants or more. According to the U. S. Census Bureau, the City's citizens had a median age of 39 years in 2021. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. U.S. Census Year Bureau Population 2022 46,868 2021 46,481 2020 46,803 2019 46,550 2018 46,716 2017 46,994 2016 47,336 2015 47,813 2014 47,867 2013 47,846 A-16 Labor Force The following tables show the labor force figures for the City of Salina. Total Unemployment Year Labor Force Em!;!IOl(ed Unem!;!IOl(ed Rate 2023 (Jan) 25,506 24,762 744 2.9% 2022 25,651 25,011 640 2.5 2021 24,944 24,172 772 3.1 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 Income The following table shows the per capita personal income for residents of Saline County and the State during the years indicated: Year 2021 2020 2019 2018 2017 2016 2015 Source: Kansas Statistical Abstract Retirement Systems Saline County N/A $53,520 50,099 49,201 47,632 45,448 44,140 State of Kansas $59,324 55,677 53,453 51,474 48,869 47,510 47,386 The City of Salina participates in KPERS, including membership in the Kansas Police and Fire Retirement System ("KP&F"). Police and Fire Protection The City of Salina provides police and fire protection services to residents of the City and surrounding areas. The two departments employ 429 full-time employees by the City. Firefighting services are provided from four stations located throughout the City with 87 full-time firefighters. The fire department operates 50 vehicles and provides emergency medical services. The Department was recently upgraded to an Insurance Services Office rating of 2. The police department employs 123 personnel, of which 69 are sworn positions. The Department operates 52 police vehicles, including patrol vehicles, motorcycles, and scooters. Both Departments are accredited by their respective professional organizations. Education The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is over 6,900. A-17 Additionally, there are a number of parochial institutions that operate two grade schools, two junior high schools, and one senior high school. The City is home to five regional or private upper-level specialty schools. The Kansas Highway Patrol has a training academy located in Salina. Kansas State University -Salina offers a variety of two-and four-year aviation and technology degree programs. Areas of emphasis include civil, electrical and mechanical engineering technologies, aeronautical studies, and avionics. The campus is located entirely within the boundaries of the Salina Airport Industrial Center. Approximately 742 students are currently enrolled in the school. Kansas Wesleyan University was founded in 1886 and is located within the City. Currently, Kansas Wesleyan maintains an enrollment of approximately 812 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than 50 major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. The City is served by the Salina Regional Airport and scheduled air service is provided by United Airlines. The airline offers daily scheduled passenger air service to Denver International Airport and Chicago O'Hare International Airport. Utilities and Infrastructure Evergy, Inc. supplies electricity and Kansas Gas Service provides natural gas to the City. The City owns its own water and sewage system. Additionally, the City is responsible for street maintenance and police and fire protection for the Airport. SBC provides telephone service. Two cellular phone companies provide service to the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 394-bed (223 staffed) regional facility. SRHC is an acute care facility for the diagnosis and treatment of all types of diseases and conditions, and includes a cancer treatment center and two medical office buildings. The institution is also a 50% partner in a separate surgical hospital adjacent to the Asbury campus of SRHC. Several other facilities providing mental health services, counseling, and alcohol and drug dependency treatment programs are located in the City. Financial Institutions Four banks are headquartered in the City and reported combined deposits in excess of $1.271 billion as of Spring, 2022. A savings bank has a branch office in the City. There are several credit unions available in the city. Source: Kansas Bank Directory A-18 Other Information Public recreation facilities available to city residents include 27 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. Building Permits Issued Building permits issued by the City currently maintain steady levels. This table reflects both private developments as well as the expansion to the educational facilities in the community. The five-year history of the total value of permits issued is: Year Value 2023* $14,366,327 2022 211,920,402 2021 27,383,463 2020 27,706,623 2019 20,544,765 2018 71,862,718 2017 59,975,197 2016 97,910,328 2015 56,989,007 2014 24,214,432 * As of March 2023 [REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY) A-19 Sales Tax Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. The total sales tax for goods and services in the City is 8. 75%, which consists of 6.5% imposed by the State, 1% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table shows total local option sales tax revenues received by the City in recent years. The Authority does not receive any sales tax revenue. {ll As of March 2023 Year 2023(l) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Local Option Sales & Use Tax Receiptsl2l $7,442,512 28,234,699 25,769,740 22,917,565 22,531,009 22,048,388 21,773,571 17,771,248 17,749,281 17,288,446 16,703,832 121 Collections prior to October 1, 2016 represent taxes attributable to a .40% sales tax that was replaced with the .75% 2016 sales tax. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was .90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue. A-20 APPENDIX B Continuing Disclosure Undertaking APPENDIX B Continuing Disclosure Undertaking CONTINUING DISCLOSURE UNDERTAKING DATED AS OF JUNE 7, 2023 BY SALINA AIRPORT AUTHORITY (SALINA, KANSAS) SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) DATED JUNE 7, 2023 GENERAL OBLIGATION BONDS SERIES 2023-C CONTINUING DISCLOSURE UNDERTAKING This CONTINUING DISCLOSURE UNDERTAKING dated as of June 7, 2023 (the "Continuing Disclosure Undertaking"), is executed and delivered by SALINA AIRPORT AUTHORITY (SALINA, KANSAS) (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance by the Issuer of its Taxable General Obligation Bonds, Series 2023-A, General Obligation Bonds, Series 2023-B (Subject to AMT); and General Obligation Bonds, Series 2023-C (collectively, the "Bonds"), pursuant to resolutions adopted by the governing body of the Issuer (collectively, the "Bond Resolution"). 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Bond Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Annual Financial Report, if any, so long as the Comprehensive Annual Financial Report contains the financial information and operating data described in Section 2{a}{l} and (2). "Beneficial Owner" means any registered owner of any Bonds and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or (c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Bonds required to comply with the Rule in connection with the offering of the Bonds. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than the June 30 immediately following the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2022, file with the MSRB, through EMMA, the following financial information and operating data ( the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, in substantially the format contained in the Official Statement relating to the Bonds. A more detailed explanation of the accounting basis and method of preparation of the financial statements is contained in the Official Statement relating to the Bonds. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Bonds, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Bonds, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become the last day of the sixth month after the end of the Issuer's new fiscal year. 2 (b) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Bonds ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; ( 4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (1 O) release, substitution or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. If the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a}, the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Bonds, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3 3 Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Bond Resolution or the Bonds, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. 4 Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Bond Resolution or the Bonds shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. (SEAL) Board Clerk SALINAAIRPORT AUTHORITY (SALINA, KANSAS) Chair (Signature Page to Disclosure Undertaking) EXHIBITA FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in tables in the following sections contained in Appendix A of the final Official Statement relating to the Bonds: · Assessed Valuation ·Tax Levies · Property Tax Collections · Largest Taxpayers · Principal Customers · Current Indebtedness of the Authority* * This Operating Data is also available in the Issuer's financial information portion of its Annual Report. A-1 APPENDIX C-1 2021 Financial Statements The following is a portion of the comprehensive annual financial report of the Salina Airport Authority for the fiscal year ended December 31, 2021, prepared by the Authority and audited by AdamsBrown, LLC, Certified Public Accountants, Great Bend, Kansas. Annual Report For the fiscal year ended December 31, 2021 SALINA AIRPORT AUTHORITY, KANSAS The audited financial statements for the Salina Airport Authority (Salina, Kansas) (the "Authority") for the fiscal year ended December 31, 2021 is attached as Exhibit A. Together, the Authority's audited financial statements and its operating data previously filed June 28, 2022 on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access system website at www.emmamsrb.org completes the City's Annual Report, which is required to be filed pursuant to the City's continuing disclosure obligations (collectively, the "Undertaking") pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, for the securities listed on Schedule 1. [The City previously submitted unaudited financial statements for the fiscal year ended fiscal year ended December 31, 2021, as required by the Undertaking.] The information contained in this Annual Report is current as of December 31, 2021 or as otherwise indicated. Certain information in this Annual Report has been provided by third-party sources. Nothing contained in the Undertaking or this Annual Report is, or should be construed as, a representation by any person, including the City, that this Annual Report includes all of the information that may be material to a decision to invest in, hold or dispose of any of the securities listed on Schedule 1, or any other securities of the Authority. Nothing contained For additional information, contact: Shelli Swanson Director of Administration and Finance Salina Airport Authority (Salina, Kansas) 3237 Arnold Avenue Salina, KS 67401 (785) 827-3914 shellis@salair.org SALINA AIRPORT AUTHORITY (SALINA, KANSAS) Date: June 30, 2022 Schedule 1 SERIES 2021-1 NOTES Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Temporary Notes, Series 2021-1 November 10, 2021 SERIES 2021-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Bonds, Series 2021-A August 17, 2021 SERIES 2017-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Refunding Bonds, Series 2017-A July 12, 2017 SERIES 2017-B BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) General Obligation Refunding Bonds, Series 2017-B July 12, 2017 SERIES 2015-A BONDS Issuer: Issue Name: Date of Issuance: Salina Airport Authority (Salina Kansas) Taxable General Obligation Bonds, Series 2015-A August 28, 2015 Exhibit A Audited financial statements of the Authority for the fiscal year ended December 31, 2021 Exhibit A Audited financial statements of the Authority for the fiscal year ended December 31, 2021 2 COMPREHENSIVE ANNUAL FINANCIAL REPORT SALINA AIRPORT AlITHORITY A Component Unit of the City of Salina, Kansas For the Fiscal Years Ended December 31, 2021 and 2020 Prepared by the Management of the Salina Airport Authority www.sali11aaim 01t.com CUSIP #794760XXX 3237 Arnold I Salina, KS 67401 I 785-827-3914 www.salinaairport.com I www.flysalina.com I .. ,, .. ·----- FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT ofthe /Gdi,,,,,.R.~ SLNAirport ~ SALINA AIRPORT AUTHORITY A Component Unit of the City of Salina, Kansas For the Fiscal Years Ended December 31, 2021 and 2020 SALINA Airport . IJ~ .. SALINAAirp/,}l J~e~ SALINA AIRPORT AUTHORITY TABLE OF CONTENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Years Ended December 31, 2021 and 2020 INTRODUCTORY SECTION Letter of Transmittal ......................................................................................... 1-5 Certificate of Achievement for Excellence in Financial Reporting .................. 6 Principal Officers .............................................................................................. 7 Authority Staff Members .................................................................................. 8 Organizational Chart ......................................................................................... 9 Salina Regional Airport Aerial View ................................................................ 10 FINANCIAL SECTION Independent Auditors' Report ........................................................................... 11-13 Management's Discussion and Analysis ......................................................... 14-21 Basic Financial Statements Statements of Net Position .............................................................................. 22-23 Statements of Revenues, Expenses and Changes in Net Position ................................................................................ 24 Statements of Cash Flows (Direct Method) .................................................... 25-26 Notes to Financial Statements .......................................................................... .27-50 Required Supplemental Information Schedule of Employer's Proportionate Share of the Net Pension Liability ... 51 Schedule of Employer Contributions ............................................................. 52 Schedule of Changes in Death and Disability Total OPEB Liability and Related Ratios ..................................................................... 53 Supplemental Information Schedules of Revenues, Expenses and Changes in Net Position ................... 54-56 Capital Expenditures ...................................................................................... 57 Taxable General Obligation Bonds -Series 2015-A ..................................... 58 Taxable General Obligation Bonds -Series 2017-A ..................................... 59 Taxable General Obligation Bonds -Series 2017-B ..................................... 60 General Obligation Bonds -Series 2019-A. .................................................. 61 Taxable General Obligation Bonds -Series 2019-B ..................................... 62 General Obligation Bond Temporary Notes-Series 2020-1 ........................ 63 Taxable General Obligation Bonds-Series 2021-A ..................................... 64 General Obligation Bond Temporary Notes-Series 2021-A ....................... 65 Taxable Lease Purchase Agreement .............................................................. 66 Insurance in Force .......................................................................................... 67 STATISTICAL SECTION Statistical Table of Contents .......................................................................... 68 Total Annual Revenues, Expenses and Changes in Net Position History ..... 69-70 Changes in Cash and Cash Equivalents History ............................................ 71-72 Capital Expenditure History .......................................................................... 73 General Obligation Debt Service Coverage ................................................... 74 Local Government Mill Levy Rates, Direct and Overlapping ....................... 75 Principal Customers ....................................................................................... 76 Mill Levy Revenue ........................................................................................ 77 Air Traffic, Fuel Flo wage, and Enplanement Trends .................................... 78 Principal Employers ....................................................................................... 79 Airport/Industrial Center Information ............................................................ 80 Saline County Demographic and Economic Statistics ................................... 81 Saline County Largest Taxpayers and Tax Collection Statistics ................... 82 COMPLIANCE Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................................................... 83-84 Independent Auditors' Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ..................................................................................................... 85-87 Schedule of Expenditures of Federal Awards ................................................... 88 Notes to Schedule of Expenditures of Federal Awards .................................... 89 Schedule of Findings and Questioned Costs ..................................................... 90-91 Summary Schedule of Prior Audit Findings ..................................................... 92 ii Chairman ~•nt ever SALINAAirport Vice Chair Too Roberg ,AullA,_;JI,, = ~~ - Secretary Alan Elcheit>e,ger Exetutiv.e. Dire~or Timothy f •. Rogers, A.A.E. Treasurer Stephanie can(n Past Chairman KristinµUnn Dir, of Administration& FinanCl>Michelle R. Swanson, C.M. Dir. of1'acilittes&CO!)struttion Maynard C~Mingham Manager of Opefatfon• DaVid Sorell Busines, & communic,mon, Manager k"a<ey L Windhorst Board Attorney Greg A, Bengtso~ June 3 0, 2022 Salina Airport Authority Board of Directors 3237 Arnold Ave. Salina, KS 67401 To the Board of Directors of the Salina Airport Authority: The Comprehensive Annual Financial Report of the Salina Airport Authority (the "Authority") for the fiscal years ended December 31, 2021 and 2020 is hereby submitted in accordance with the Kansas Statutes Annotated (K.S.A. 27-324). As required by the statute, the City of Salina will be furnished copies of the Authority's 2021 Comprehensive Annual Financial Report. Responsibility for both the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the Executive Director of the Authority. To the best of our knowledge and belief, the data as presented is accurate in all material aspects, is presented in a manner designed to fairly set forth the fiscal position and results of the operation of the Authority as measured by its financial activity, and all disclosures necessary to enable the reader to gain maximum understanding are included in the report. This Comprehensive Annual Financial Report is presented in accordance with generally accepted accounting principles (GAAP) and pursuant to KS.A. 27-324, an audit of the books, accounts, and financial statements has been completed by the Authority's independent certified public accountants, AdamsBrown, LLC. The independent audit is in accordance with the Kansas Municipal Audit and Accounting Guide. GAAP requires that management provide an overview and analysis to accompany the financial statements in the form of a Management Discussion and Analysis (MD&A). It is recommended that this letter of transmittal be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditor in the Financial Section of this report. REPORTING ENTITY The Salina Airport Authority is a body corporate and politic. The Authority was created by the City of Salina in April 1965 (Sec. 4-16, Salina City Code) pursuant to the authority granted by the City by the surplus property and public airport authority act of the State of Kansas (K.S.A. 27-315 et seq.) The Authority was created for the purpose of accepting as surplus property, portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in June 1965. By quitclaim deed the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and developing the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. INTRODUCTORY FY 2021 The Board appoints the Executive Director, who is the chief executive officer of the Authority. The Executive Director hires the remaining employees of the Authority. The Executive Director and his staff of fourteen full-time and two part-time employees manage and operate the Salina Regional Airport and the Salina Airport Industrial Center. The Salina Regional Airport is the only commercial service airport serving Salina/Saline County and the 24-county area, which comprises north central Kansas. The Airport also services the corporate, business, private aviation, and flight training needs of industry, business, and individuals in the area. The Airport is also used by Kansas State University-Salina (KSUS). The Aerospace and Technology Campus of KSUS is located adjacent to the Airport and is one of the nation's top five aviation programs. The college offers degrees in professional flight training, airframe and power plant maintenance, and avionics technology. The Salina Regional Airport and Airport Industrial Center is home for over 100 businesses and organizations. Over fifty of the businesses and organizations are tenants of the Authority. One of the primary functions of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport Industrial Center. The Authority works in partnership with the City of Salina, Saline County, Salina Area Chamber of Commerce, and the Salina Community Economic Development Organization for the retention of existing business and industry and the recruitment of new business and industry. ECONOMIC CONDITIONS AND OUTLOOK Local Economy The City serves as a 24-county regional trade center for north central Kansas. Many individuals and businesses within a 70-mile radius travel to the city to purchase consumer goods and services. This designation as a regional trade center is supported by the fact that the City had the fifth highest ''trade pull factor" of all Kansas first class cities in a report published in October 2021 by the Kansas Department of Revenue Office of Policy and Research. City trade pull factor is computed by dividing the per capita sales tax of a city by the statewide per capita sales tax. Saline County is in the center of one of the most productive agricultural areas in the United States. Every five years the United States Department of Agriculture conducts a comprehensive summary of agriculture activity for each state in the US. According to the 2017 Census, 609 farms were located on 358,243 acres. Farm crops and livestock sales reached $73.6 million according to the 2017 Census. According to the Kansas Department of Agriculture, the total economic impact of agriculture food and food processing sectors on the Saline County economy is over $1.29 billion annually, creates 4,226 jobs, and 12% of the Gross Regional Product. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the city. The City, Saline County, the Chamber of Commerce, Salina Community Economic Development Organization, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building permit and inspection fees, refunding of sales tax paid on machinery and equipment and providing training for 2 INTRODUCTORY FY 2021 employees through the Salina Area Technical College and the Kansas State University Salina Aerospace and Technology Campus. Additionally, a "build-to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. Additionally, Salina launched a $160 million downtown redevelopment project that broke ground in April of 2018 and is one of the largest public-private partnerships in the history of the city. The streetscape and utility improvements were completed in 2019 and since the beginning of the redevelopment the construction of a Homewood Suites hotel, Old Chicago restaurant, new entertainment center/bowling alley, and a car museum have been completed. A river renewal project is also on the horizon. The community has 1,200 acres of industrial sites available in North Salina, the South Industrial District, and the Airport Industrial Center. Sites range in size from 1 to 240 acres, and are available for aviation, manufacturing, and distribution and warehouse businesses. Economic Condition of the Airport and Airport Industrial Center According to a report published in April 2021 by the Docking Institute of Fort Hays State University, as of December 31, 2020, over 100 businesses and organizations are located at the Salina Regional Airport and Airport Industrial Center. The total level of economic activity generated by the private businesses, educational institutions, military units, public institutions, and other entities for 2020 was $1,297,934,889. Combined, Airport and Airport Industrial Center economic activity contributed approximately 42.5% of the total economic activity in Saline County during 2020. The total employment associated with Airport and Airport Industrial Center economic activity was 7,005 jobs which equals 17.6% of the total employment in Saline County. Future Economic Outlook Despite the impact of COVID-19, the future economic outlook for both Salina and the Authority looks favorable. Continued growth in service, retail and manufacturing sectors is expected. Salina Regional Airport businesses including 1 Vision Aviation, Kansas State University Salina, and the Kansas Army National Guard, continue to work on facility expansion plans. Salina Airport Industrial Center businesses and organizations including Schwan's Food Manufacturing Inc., Kansas Erosion Products, Universal Forest Products, Superior Plumbing and Heating Co., and Salina Area Technical College, continue to work on facility expansions and improvements. Salina Regional Airport continues to thrive as a forward operating location for aviation businesses, military, and special operation missions. With its proximity to the Smoky Hill Air National Guard Bombing Range, the Airport continues to host military units from around the country for training purposes. The Salina Airport Authority in partnership with the Salina Area Chamber of Commerce, the Salina Community Economic Development Organization, the City of Salina, and Saline County, continues to execute an economic development strategic plan that includes specific goals and tasks intended to result in job growth, increased primary jobs, payroll, new capital investment and the leasing of available space at the Airport Industrial Center. 3 INTRODUCTORY FY 2021 . FINANCIAL CONTROLS The Authority follows generally accepted accounting principles applicable to governmental unit enterprise funds. Accordingly, the financial statements are prepared on the accrual basis. Management of the Authority is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Authority are protected from loss, theft, or misuse and to ensure 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 requires estimates and judgments by management. LONG-TERM FINANCIAL PLANNING Increasing the Authority's unreserved, undesignated fund balance has been a priority of the organization. The Authority's Board of Directors has a stated plan of maintaining the Authority's cash reserve fund equal to $1.8 million or greater. Having sufficient liquidity has allowed the Authority to respond to opportunities that arise quickly such as improvements to facilities and infrastructure to secure new businesses and industry to the Airport. During 2020 and 2021 , the Authority was awarded a total of $2.8 million to be used for airport operating expenditures and equipment under the CARES and CRRSAA federal COVID-19 grant relief programs. Additionally, on July 27, 2021, the Authority was awarded a $1,078,987 grant under the ARPA act of 2021. The proceeds for the forementioned COVID relief grants can be used for any lawful purposes for which airport revenues can be utilized. The grant funds could be used to reimburse for airport expenditures dating back to January 20, 2020. The Authority utilized the funds to maintain the safe and secure operation of the Airport while managing through the effects of the pandemic and to maintain our targeted unreserved fund balance. Also, as part of the strategic plan of recruiting business and industry to fill available facilities vacated by three principal customers since 2012, the Authority has developed a systematic method of evaluating projects including definitive trigger points, lease pro-forma requirements, lease calculation methodology, and other qualitative measures prior to capital improvement projects. GFOA CERTIFICATE OF ACHIEVEMENT Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Salina Airport Authority for its comprehensive annual financial report for the fiscal year ended December 31, 2020. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. 4 INTRODUCTORY FY 2021 A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS The support of the Authority's Board of Directors and Audit Committee has been instrumental in the preparation of this report. The Board has been actively involved in the preparation and review of this report and is committed to responsible and progressive financial reporting. Also acknowledged is the assistance of the Authority's auditor, AdamsBrown, LLC, the Authority's accounting advisor, Lany Harris, Woods & Durham, Chartered., Saline County Clerk's Office, the Salina Area Chamber of Commerce, Debbie Pack, Director of Finance for the City of Salina, and the University of Kansas Institute for Public Policy and Business Research and the Kansas Department of Human Resources Labor Market Information Services, in the preparation of this report. Respectfully submitted, Timothy F. Rogers, A.A.E. Executive Director Salina Airport Authority cc: The City of Salina Board of Commissioners Michelle R Swanson, C.M. Director of Administration and Finance Salina Airport Authority 5 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Salina Airport Authority Kansas For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 ~ p. ~ Executive Director/CEO 6 INTRODUCTORY FY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL OFFICERS AS OF DECEMBER 31. 2021 BOARD OF DIRECTORS Kristin Gunn Chairman Kent Buer Vice-Chairman Brian Weisel Secretary AUTHORITY'S COUNSEL Greg A. Bengtson Clark, Mize & Linville, Chartered Salina, Kansas AUTHORITY'S FINANCIAL ADVISOR Stifel, Nicolaus & Company, Inc. Kansas City, Missouri Tod Roberg Treasurer Alan Eichelberger Past Chairman AUTHORITY'S BOND COUNSEL Gilmore & Bell Kansas City, Missouri AUTHORITY'S AUDITOR AdamsBrown, LLC 2006 Broadway, Suite 2A P.O. Drawer J Great Bend, KS 67530 7 INTRODUCTORY FY 2021 l SALINA AIRPORT AUTHORITY Staff Members as of December 31, 2021 Tim Rogers fxecutive Directar Kasey Wlndhorst Business & communications Manager Kyle.Moyer Mx/Ops/ARr/: 5!1pe:v1sor Mat..cldRussd Mx/Ops/ARrF Technician Jett Moyet ARF'F/Dps Spf!dafist Shelli .Swanson Directe>r of Admin & Finance D,ivid Sorel.I Manage,: of Operotlons Kim Colby Mx/Ops 1echnic:i:an Andrew Hodg!! ARFfi/Ops (Jfficer M.itthew Kuffler ARFF/Dps. Sp~iofist Maynard Cunningham Director of Facilities & Construction Michelle Moon A;,:pon:AdminrstrQtfon Spec,aJist Tim Claassen Mx/Ops/A~Fftechnidan Zach Turner ARFF/Ops Specialist Evan Moffitt AR[:f/Ops Speodlist 8 ' SALINAAitport SS Ahoy, LS December 2021 Citizens of Salina Salina-City Commission Execute: iBJig=leitels Timothy F, Regers, AA E Director of Admin: & Finance Michelle R- Swanson. CM Business & Communications Manager Kasey L. Windhorst PaNissloja@a\cieellsls-teg-}elolg] Specialist Willelnt=Hiom ufelee| Administrative Assistant Vacant Difector of Facilities and Construation WEN iet-ics MO latelicceist-iee) MX/Ops/ARFF Supervisor Kyle Moyer Mix/Ops Technician Kirn Colby MxX/Ops/ARFF Fechnician Tim Claassen Mx/Ops/ARFF Technician Malachi Russo Mx/Ops/AREF Technician Vacant Manager of Operations David Soret! ARFF/Ops Officer Andrew Hodge ARFF/Ops Specialist Zach Tumer ARFF/Ops Specialist Jett Moyer ARFF/OGps Roy aorertstit=)4 Matthew Kuffler ARFF/Ops Specialist Evan Moffitt Part Time Maintenance INTRODUCTORY SAL, LT, NAMport viation A Gina lagu ervice _ SLNAirport SL (Mee SALINA Airpdit 10 INTRODUCTORY FY 2021 · SALINAAirport -=-=IJ.~= ~ SALINAAirp~rt .9~(1-1e,,,.,, 10 "' .. '.,.. BROW N To the Board of Directors Salina Airport Authority Salina, Kansas Opinion Strategic Allies and CPAs ada msbrowncpa .c:C',n INDEPENDENT AUDITORS' REPORT We have audited the financial statements of the business-type activities of Salina Airport Authority, a component unit of the City of Salina, Kansas, as of and for the years ended December 31, 2021 and 2020, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities of Salina Airport Authority as of December 31, 2021 and 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GMS), the Kansas Municipal Audit and Accounting Guide, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Salina Airport Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is above-:-beyond Adams.:;r.:wpi LLC Salina Airport Authority Page2 not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audits were conducted for the purpose of forming opinions on the financial statements that collectively comprise Salina Airport Authority's basic financial statements. The introductory section, supplemental information, statistical section, and single audit information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. Such information is the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing 12 Salina Airport Authority Page3 and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinions, based on our audit and the procedures performed as described above, the information as noted above is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audits of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2022, on our consideration of the Salina Airport Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. AJ~~,LL ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 13 FINANCIAL FY 2021 MANAGEMENT'S DISCUSSION AND ANALYSIS The management of the Salina Airport Authority offers the readers of the Authority's audited financial statements this narrative overview and analysis of the financial activities of the Salina Airport Authority for the fiscal year ended December 31, 2021. The Salina Air Traffic Control Tower (ATCT) ended 2021 having handled 80,970 aircraft operations. This represented a 34% increase in total aircraft operations over the prior year which had seen a dip of 21 % from 2019 and a 10.5% YOY increase from 2018. Not unlike other airports across the country, air traffic was significantly hampered in 2020 due to the COVID-19 pandemic. However, in 2021, not only did the airport experience a recovery in operations it also saw the impact of the pent-up demand in the industry. Categories of aircraft operations at Salina including air carrier, air taxi, and general aviation all saw double-digit decreases as high as 47% as compared to 2020. Military operations were the only category of airport operations that posted a decrease; 41 % for itinerant traffic and 3 8% for local traffic as compared to 2020. The military traffic had a sharp increase in 2020 over 2019 and 2021 was closer to expected levels of military traffic. Even during the pandemic, Salina continued to host military training exercises for all branches of the armed forces and serves as an Airport of Embarkation/Debarkation (APOE/APOD) for Kansas' army military installation known at Fort Riley. The growth in the pre- pandemic years was a result of growth in both local and itinerant military traffic as well as air taxi and local civilian operations. Also, the 2019, and now 2021 air traffic growth coincides with record enrollment in K-State's professional pilot program. K-State Salina's expanded professional pilot and helicopter flight training programs had assisted in the upward trend in air traffic in previous years as well as an overall increase in commercial business traffic. At the end of 2021, posting the 34% YOY increase moved the Salina Regional Airport into the number one ranked FAA contract towered airport in the state for air traffic operations and fuel delivered. Salina's 2021 ATCT's national ranking for airport operations is 81 out of 256 federal contract towered airports. Salina continues to remain strong as a mid-continent refueling stop and has earned the recognition as "America's Fuel Stop". At the end of 2021, world-class Fixed Based Operator (FBO), Avflight Corporation, completed its eighth year as the aircraft fueling operator at the Salina Regional Airport. A vflight provides fueling and ground services to the wide mix of air traffic that includes business jets, air carrier, military, and general aviation. Avflight is part of the Avfuel-branded FBO network of over 650 independently owned FBOs around the globe. In addition, Salina continues to remain strong as a base of operations for military and civilian flight training. The 8.7% YOY decrease in 2021 was primarily due to the significant fuel sales because of hosting Jaded Thunder in 2019 and 2020. This multi-force military training exercise results in substantial fuel delivered to the numerous aircraft involved with the activity. During 2020, despite COVID-19, Avflight still delivered 2.3 million gallons, representing a .72% increase over the 2019. Since Avflight's 2014 takeover of the fueling operation at SLN, fuel sales have seen 3 years with double digit year-over-year increases. Commercial airline service is afforded to Salina through the Department of Transportation's (DOT) Essential Air Service Program (EAS). On December 21, 2017, the United States Department of Transportation (the Department) selected SkyWest Airlines, Inc. (SkyWest), to provide EAS at Salina, Kansas, using SO-passenger Canadair Regional Jet CRJ200 aircraft for a two-year contract term from April 1, 2018, through March 31, 2020, for SkyWest to provide Salina with 12 weekly round trips to 14 FINANCIAL ry 2021 : Denver International Airport (DEN) and/or Chicago O'Hare International Airport (ORD). The service is branded as United Express and was subsequently renewed to provide service through March 31, 2023. From 2017 to 2018, the Airport saw an increase of 46.6% with the jump to 50-seat jet service, operated by SkyWest Airlines, to both United's Chicago and Denver hubs. Of significance is the fact that passenger enplanements exceeding 10,000 annually, allows the airport to receive $1 million per year in Federal Aviation Administration entitlement dollars for eligible airport capital improvements. From 2018 to 2019, the Salina Regional Airport's passenger enplanements continued the positive trend increasing 4.38% because of the SkyWest's performance and the market responding. Additionally, the airport continued to serve numerous aircraft as an APOE/APOD for Fort Riley as described above. As the home of the Army's 1st Infantry division, Fort Riley utilizes the infrastructure at the Airport for the deployment of service men and women and cargo to training venues and military missions throughout the world. In addition to an increase in military aircraft activity, the Airport has benefited from the increase in commercial airline charter operations as a result of serving as an APOE/APOD. Right before the effects of the COVID-19 pandemic hit air travel, Salina's air service and passenger enplanements were reaching new heights. The passenger roundtrip enplanements of 2,712 for SkyWest service during the month of December 2019 was more than double the 1,168 of December 2018. On March 5, 2020, the tag with Hays, KS was removed and the Salina to Denver service became non-stop and the spring break week that followed was the record load factor week for the year. As the air travel reductions were realized around the globe as the pandemic threat continued, Salina's passenger numbers also dropped, and the year ended 50 .16% less than 2019. As air travel resumed and the effects of the pandemic lessened, commercial passenger enplanements returned and exceeded the pre-pandemic levels seen in 2019 with an 85.4% increase from 2020 to 2021 and a 5.8% increase when comparing 2019 to 2021. The changes in the Authority's major airport activity indicators for the past three years are as follows: 2021 2020 2019 Enplanements -Scheduled Air Carrier & Charter Flights 19,580 10,561 21,189 % increase I (decrease) 85.400/o -50.16% 4.38% Aircraft Operations -All Categories 80,970 60,448 76,553 % increase / (decrease) 33.95% -21.04% 10.48% Fuel Flowage -(gallons delivered) 2,096,198 2,295,009 2,278,659 % increase / (decrease) -8.66% 0.72% -5.64% AIRPORT INDUSTRIAL CENTER ACTIVITY AND HIGHLIGHTS The Authority owns over 1.2 million sq. ft. of manufacturing, warehouse, and office space at the Airport Industrial Center. As further described herein, the building and land revenue generated by the Authority's leasing activity constitutes a significant portion of the annual operating revenue budget. During 2021, building and land rents equaled $1,689,045 or 58.4% of operating revenue. At the end of 2021, the Authority had an occupancy rate of 82% in its building inventory, up from the 80% at a the end of 2020. The Authority has made great strides in recent years in re-leasing a portion of the 484,003 sq. ft. of property vacated by Hawker Beechcraft Corporation (HBC) division in Salina in 2012. 15 I FINANCIAL FY 2021 SUMMARY OF OPERATIONS AND CHANGES IN NET POSITION Even with the uncertainty in the aviation industry and the COVID-19 pandemic the :financial condition of the Authority improved during 2021. The Authority has effectively dealt with major cost increases in employee health benefits including medical insurance premiums, utility costs, commercial property insurance premiums and other operating expenses. In addition, the Authority has managed through the termination of four operating revenue leases from three principal tenants since 2012, representing nearly $850,000 in annual operating revenue. Fortunately, since 2012, the Authority has added more than twenty new tenants, diversifying its tenant base and the operating revenues have steadily increased with 2021 reaching a historic high of nearly $2.9 million. SUMMARY OF OPERATIONS IDGIILIGHTS Significant items affecting the Summary of Operations and Changes in Net Position for 2021, 2020 and 2019 are as follows: 2021 2020 2019 Operating revenues $ 2,893,724 $ 2,652,346 $ 2,432,958 Operating expenses (2,810,996) (2,471,725) (2,355,435) Excess of revenues over expenses before depreciation 82,728 180,621 77,523 Depreciation (3,065,984) (3,016,267) (2,898,650) Loss before non-operating revenues and expenses (2,983,256) (2,835,646) (2,821,127) Non-operating revenues and (expenses), net 1,903,527 (570,774) 1,497,105 Loss before capital contributions (1,079,729) (3,406,420) (1,324,022) Capital contributions 2,717,177 2,100,818 1,727,674 Net position Increase (decrease) in net position 1,637,448 (1,305,602) 403,652 Total net position, beginning of year 21,197,183 22,502,785 22,099,133 Total net position, end of period $22,834,631 $21,197,183 $22,502,785 16 FINANCIAL FY 2021 • Operating revenues have increased in recent years due to new tenants and releasing properties and diversifying the tenant base as mentioned previously, with 2021 and 2020 revenues posting ten- year highs. Although fuel flowage fees derived from the delivery and sale of aviation fuel at the Airport dipped by 5.38% in 2021, this revenue stream jumped significantly when it increased 41% in 2017 where it reached the highest level in the previous seven years and in 2020, despite COVID-19 it increased by 2.9% over 2019. Military activity at the Airport continues to remain strong and the field at KSLN continues to have a steady stream of based training operations that generate hangar rent, fuel flowage, and other rental revenue. • The Authority's operating expenses increased by 13.7% in 2021 and 4.9% in 2020 after a 3.12% YOY decrease in 2019. From 2011 to 2017, the Authority posted year-over-year decreases in operating expenses. After slipping to a vacancy rate of 58% in early 2012, the Authority loss of revenue attributable to the closure of Hawker Beechcraft, required significant cost-cutting measures. With the occupancy rate having improved by over 20% by the end 2020 and continuing in 2021, the Authority was able to expend dollars on deferred airfield, building and equipment maintenance. o The 2020 and 2021 increases in operating expenses was a result of increased leasing activity and building occupancy. Ironically, demand for warehouse, manufacturing, and hangar space continued even through the heights of the pandemic for both short and long- term tenancies. These factors work in tandem and when occupancies increase, related operating expenses follow suit. Also, certain tenants requested an increased level of disinfecting requiring up to twice-daily services which was even more critical with the Authority's level of short-term, transient leasing activity. o In early 2020 after the outbreak of the pandemic and considering the economic impact uncertainty at the time, the Authority implemented a cash conservation and expense evaluation program. The effects of the pandemic on the financial performance of the Authority were monitored monthly as to provide the ability to respond quickly in the event of a downturn in total revenues, which fortunately did not occur. o During 2012-2019, the Authority made a concerted effort to hold and reduce operating costs by reducing travel and meeting expense as well as reducing all dues and subscriptions and cancelling all non-essential items. • Depreciation expense increased due to very capital-intensive years with exceeding $3 million in 2021 and 2020. • Capital grants and contributions during 2021 and 2020 totaled $2,717,177 and $2,100,818 respectively, with the significant projects including the design of the rehabilitation of the Authority's primary runway, Terminal Building Master Plan update, and rehabilitation of the Authority's largest aircraft hangar, Hangar 959, for a new Part 145 maintenance tenant. $1.2 million of the 2021 capital grants included reimbursement for Airport operating expenses and equipment acquisition under federal COVID relief grants including CARES, CHRRSAA and ARP A grants as further discussion in the Notes to the Financial statements. Additionally, the 17 FINANCIAL FY 2021 Authority received $74,258 in FEMA grant funds to mitigate storm damage on an large-bay aircraft hangar. • Ad-valorem tax revenue (mill levy) received by the Authority as a local taxing entity decreased 2.6.% from 2020 to 2021 and increased 11.3% from 2019 to 2020. The 2021 decrease was associated with a reduction in funds needed for the Authority's debt service payments. Interest received on investments was relatively flat in 2020 and 2021 and decreased only slightly ($850) YOY. FINANCIAL POSITION SUMMARY The Statement of Net Position depict the Authority's financial position as of point in time-December 31 -and reflects the residual difference between all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the Authority. The net position represents the residual interest in the Authority's assets after deducting liabilities. The Authority's net position was $22,834,631 at the close of 2021, a $1.6 million increase from December 31, 2020. The Authority's net position reflects its heavy investment in capital assets including land, buildings, airfield infrastructure and machinery and equipment, less any related debt used to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Authority's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A condensed summary of the Authority's total net position at December 31st for the previous three years is shown on the following page. 2021 2020 2019 ASSETS Current and other assets $ 6,866,321 $ 2,662,550 $ 1,512,621 Capital assets 42,527,517 42 261 174 44 110 767 Total Assets 49,393,838 44,923,724 45,623,388 DEFERRED OUTFLOWS OF RESOURCES 1,085,654 1,232,712 1,276,204 LIABILITIES Long-term debt outstanding $ 23,927,207 $ 19,771,494 $ 20,984,752 Other liabilities 3,488,150 5,121 333 3 370,643 Total Liabilities 27,415,357 24,892,827 24,355,395 DEFERRED INFLOWS OF RESOURCES 229,504 66,426 41,412 NET POSITION Net investment in 16,889,510 18,717,283 21,698,665 capital assets Unrestricted 5,945,121 2,479,900 804,120 Net Position $ 22,834,631 $ 21,197,183 $ 22,502,785 18 FINANCIAL FY 2021 REVENUES The following chart shows the major sources and the percentage of total operating revenues for the year ended December 31, 2021: •A.ltfietd • eui.ldlns and land 1""t A summary of revenues for the past three years is shown below. Total revenue increased 6.17% from 2020 to 2021 and 9.3% from 2019 to 2020, following a slight decrease of .09% or $4,341 from 2018 to 2019. 2021 set another ten-year high in operating revenue. The positive trend in operating revenue is a result of the increase in building and land rental attributable to increased occupancy rates. Other operating income has increased as a result of new sources of income including equipment rental to visiting military units and flight test activity. Operating Revenue: Airfield Building and land rent Other revenue Total Operating Non-Operating Income: Mill Levy Interest Income Gain on sale of assets Total Non-Operating TOTAL REVENUE $ $ 2021 1,083,607 1,689,044 121,073 2,893,724 2,570,657 1,311 154,774 2,726,742 5,620,466 $ $ 2020 941,238 1,543,756 167,352 2,652,346 2,639,481 2,161 2,641,642 5,293,988 $ $ 2019 927,921 1,349,788 155,249 2,432,958 2,371,463 17,954 21,263 2,410,680 4,843,638 19 FfNANCIAL f-Y 2021 EXPENSES The following chart shows the major expense categories and the percentage of total operating expenses for the year ended December 31, 2021: ■ Administrative Maintenance A summary of expenses for the past three years is shown below. Total operating expenses increased 13. 7% in 2021 and 4.9% in 2020 following a 3 .1 % decrease over the prior year in 2019. Prior to 2017 and increased building occupancy resulting in higher revenues, the Authority had taken significant steps to hold operating expenses down, including completing more facility maintenance projects in-house and reducing administrative expenses such as travel and meetings. From 2011-2017, the Authority reduced operating expenses year-over-year for each of the six years. 2021 2020 2019 Operating Expenses Administrative $ 1,734,025 $ 1,630,020 $ 1,524,897 Maintenance 1,076,971 841,705 830,538 Total Operating 2,810,996 2,471,725 2,355,435 Non-Operating Expenses Interest Expense 738,945 771,821 840,390 Bond Issue Costs 84,270 44,885 73,185 Loss on Sale of Assets 2,395,710 Total Non-Operating 823,215 3,212,416 913,575 TOTAL EXPENSES $ 3,634,211 $ 5,684,141 $ 3,269,010 20 I FINANCIAL FY 2021 CAPITAL ACQUISITIONS AND CONSTRUCTION ACTMTIES Capital grants and contributions during 2021 totaled $2,717,177 which included funding through the Federal Aviation Administration's Airport Improvement Program to provide 100% grant funding for the Authority's design of the rehabilitation of the Airport's primary runway. In addition, the Authority received $1,922,449 in funding support from COVID relief grants as mentioned previously that allowed the Authority to purchase needed airfield equipment to assist in the maintenance and operations of the airfield and commercial service Terminal Building. The Authority acquired $3,370,794 in capital assets during 2021. Significant items included the renovation of the M.J. Kennedy Air Terminal concourse, the acquisition of over $900,000 in airfield equipment and the construction of a general aviation restroom facility. Additional information on the Authority's capital assets can be found in Note Ill (C) in the notes to the financial statements and within the Supplemental Section of this report. Capital asset acquisitions exceeding $1,000 are capitalized at cost and are depreciated over their useful lives, with the exception of land. The Authority's capital assets are financed using Federal and State grants with matching Authority funds, debt issuance and Authority revenues. Additional information can be found in Note I (G) in the notes to the financial statements. DEBT ADMINISTRATION The outstanding long-term debt of the Authority was $23,927,207 net of unamortized bond discounts at and current maturities at December 31, 2021. This debt consists of general obligation bonds and temporary notes and a lease purchase agreement. Maturities range from 2023 through 2036. Both principal and interest are payable from the Authority's mill levy revenue. Details of the Authority's debt can be found in Note III (D) in the notes to the financial statements. REQUEST FOR INFORMATION This Management's Discussion and Analysis is designed to provide detailed information on the Authority's operations and the financial results of those operations to all those with an interest in the Authority's financial affairs. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Administration and Finance by e-mail: shellis@salair.org or in writing to, Salina Airport Authority, 3237 Arnold Ave., Salina, KS 67401. Respectfully submitted, /~)¼-- Timothy F. Rogers, A.A.E. Executive Director Michelle R. Swanson, C.M. Director of Administration and Finance 21 -FINANCIAL FY 2021 ~ ., SALINA AIRPORT AUTHORITY STATEMENTS OF NET POSITION December 31, 2021 and December 31, 2020 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash Accounts Receivable, Net of Allowance for Uncollectibles Prepaid expenses Total Current Assets NON-CURRENT ASSETS Capital Assets Land Buildings, Improvements and Equipment, Net of Depreciation Construction in Progress Total Non-Current Assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES Deferred KPERS Pension Funds Deferred KPERS OPEB Deferred Advanced Refunding Total Deferred Outflows of Resources TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES December 31 2021 2020 $ 5,303,767 1,545,489 17,065 6,866,321 9,920,765 30,621,531 1,985,221 42,527,517 49,393,838 197,575 803 887,276 1,085,654 $ 50,479,492 $ 2,255,880 390,970 15,700 2,662,550 9,874,567 32,181,015 205,592 42,261,174 44,923,724 214,164 4,727 1,013,821 1,232,712 $ 46,156,436 The accompanying notes are an integral part of these financial statements. 22 ' -FINANCIAL FY.2021 . -. 1 SALINA AIRPORT AUTHORITY STATEMENTS OF NET POSITION December 31, 2021 and December 31, 2020 ( continued) LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION December 31 CURRENT LIABILITIES Accounts Payable Accrued Property Tax Accrued Special Assessments Unearned Rental and Marketing Income Accrued Interest Current Portion of Compensated Absences Current Maturities of Long-Term Debt Total Current Liabilities NON-CURRENT LIABILITIES Bonds and Notes Payable, Less Current Maturities Net Pension Liability Net OPEB Liability Security Deposits Returnable Total Non-Current Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred KPERS Pension Funds Deferred KPERS OPEB Total Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Unrestricted Net Position TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 2021 2020 $ 769,715 54,005 1,282 90,478 193,171 53,228 1,710,800 2,872,679 23,927,207 509,789 13,911 91,771 24,542,678 27,415,357 218,778 10,726 229,504 16,889,510 5,945,121 22,834,631 $ 50,479,492 $ 125,641 40,159 1,282 105,228 211,244 51,799 3,772,397 4,307,750 19,771,494 715,670 13,924 83,989 20,585,077 24,892,827 58,465 7,961 66,426 18,717,283 2,479,900 21,197,183 $ 46,156,436 The accompanying notes are an integral part of these financial statements. 23 FINANCIAL FY 2021 SALINA AIRPORT AUTHORITY STATEMENTS OF REVENUES, EXPENSES and CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 Operating Revenues Airfield Building and Land Rent Other Revenue Total Operating Revenues Operating Expenses Administrative Maintenance Total Operating Expenses Revenues Over Expenses Before Depreciation Depreciation Operating Loss Before Non-Operating Revenues and Expenses Non-Operating Revenues and (Expenses) Mill levy Interest on Investments Interest Expense Bond Issuance Costs Gain (Loss) on Sale of Assets Total Non-Operating Revenues and (Expenses) Loss Before Capital Contributions Capital Contributions Net Position Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, End of Year January 1 to December 31 2021 2020 $ 1,083,607 1,689,044 121,073 2,893,724 1,734,025 1,076,971 2,810,996 82,728 (3,065,984) (2,983,256) 2,570,657 1,311 (738,945) (84,270) 154,774 1,903,527 (1,079,729) 2,717,177 1,637,448 21,197,183 $ 22,834,631 $ 941,238 1,543,756 167,352 2,652,346 1,630,020 841,705 2,471,725 180,621 (3,016,267) (2,835,646) 2,639,481 2,161 (771,821) (44,885) (2,395,710) (570,774) (3,406,420) 2,100,818 (1,305,602) 22,502,785 $ 21,197,183 The accompanying notes are an integral part of these financial statements. 24 SALINA AIRPORT AUTHORITY STATEMENTS OF CASH FLOWS (DIRECT METHOD) FINANCIAL FY 2021 For the Years Ended December 31, 2021 and December 31, 2020 January 1 to December 31 2021 2020 CASH FLOWS FROM OPERA TING ACTIVITIES Cash Received from Providing Services $ 1,739,205 $ 3,109,625 Cash Paid to Employees for Services (921,910) (854,885) Cash Paid to Suppliers for Goods and Services (1,133,826) (2,133,137) Net Cash Provided (Used) by Operating Activities (316,531) 121,603 CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Property, Plant and Equipment (3,370,794) (1,501,297) Acquisition of Land Subsequently Donated (Net) (2,061,088) Proceeds from Capital Grants 2,717,177 2,100,818 Proceeds from Property Tax 2,570,657 2,639,481 Proceeds from Sale of Capital Assets 193,240 Principal Payments on Debt (3,772,338) (1,428,211) Proceeds of New Borrowing 5,866,454 2,560,000 Bond Issuance Costs (84,270) (44,885) Interest Paid on Long-term Debt (757,019) (787,723) Net Cash Provided by Capital and Related Financing Activities 3,363,107 1,477,095 CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Deposits 1,311 2,161 INCREASE IN CASH 3,047,887 1,600,859 CASH BALANCE -January 1 2,255,880 655,021 CASH BALANCE -December 31 $ 5,303,767 $ 2,255,880 The accompanying notes are an integral part of these financial statements. 25 I FINANCIAL FY 2021 SALINA AIRPORT AUTHORITY STATEMENTS OF CASH FLOWS (DIRECT METHOD) ( continued) For the Years Ended December 31, 2021 and December 31, 2020 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERA TING ACTIVITIES January 1 to December 31 2021 2020 OPERA TING LOSS $ (2,983,256) $ (2,835,646) ADJUSTMENTS RECONCILING OPERA TING LOSS TO NET CASH PROVIDED (USED) BY OPERA TING ACTIVITIES Depreciation 3,065,984 3,016,267 Decrease (Increase) in Operating Assets Accounts Receivable (1,154,519) 457,279 Prepaid Expenses (1,365) (6,347) Change in Deferred Outflows of Resources 147,059 43,492 Increase (Decrease) in Operating Liabilities Accounts Payable (Operations) 644,075 (741,507) Accrued Payroll Expenses (402) Accrued Property Tax and Special Assessments 13,846 (14,996) Current Portion of Compensated Absences 1,429 12,604 Unearned Rental Income (14,750) 56,020 Security Deposits 7,782 26,425 Net Pension Liability (205,894) 83,400 Change in Deferred Inflows of Resources 163,078 25,014 Total Adjustments 2,666,725 2,957,249 NET CASH PROVIDED (USED) BY OPERA TING ACTIVITIES $ (316,531) $ 121,603 The accompanying notes are an integral part of these financial statements. 26 I ' FTNANCJAL FY 2021 SALINA AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 2021 and 2020 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Salina Airport Authority (Authority) was established by the City of Salina, pursuant to Chapter 27, Article 3, of the Kansas Statutes Annotated for the purpose of acquiring surplus federal government property, specifically the former Schilling Air Force Base, located near the City of Salina. The Authority operates, maintains, and develops the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is controlled by a five-member Board of Directors appointed by the Salina City Commission and, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 61, the Authority is considered to be a component unit of the City of Salina. The Authority is discreetly presented in the City's financial statements. B. Measurement Focus, Basis of Accounting and Basis of Presentation The accompanying financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for state and local governments in the United States of America. The Authority consists of a single enterprise fund. Enterprise funds are classified as proprietary funds by the GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be recovered through user fees and rents. The financial statements are prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. Revenues from airlines, fuel flowage fees, building and land rents, and rental car commissions are reported as operating revenues. Transactions, which are capital, financing or investing related, and the sale of assets, related to economic development, are reported as non-operating revenues. All expenses related to operating the Airport and Industrial Center are reported as operating expenses. Interest expense and financing costs are reported as non-operating expenses. C. Use of Estimates Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect certain reported amounts and disclosures that can affect these financial statements. Actual results could differ from those estimates. 27 FINANCIAL FY 2021 D. Property Taxes The Authority has the ability by statute to levy up to three mills with approval from the governing body of the City for operational purposes. An additional one mill may be levied in order to match grants, subject to a notice and protest period. These mills do not apply to the Authority's ability to levy unlimited taxes for the repayment of its general obligation debt. E. Adopted Accounting Pronouncements GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, enhances the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and simplifies accounting for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. F. Pending Accounting Pronouncements The Authority is preparing to implement the following Statements of Governmental Accounting Standards, established by the Governmental Accounting Standards Board (GASB) on or before the required implementation date. Management is currently evaluating the effect that the standards will have on the financial statements. ► GASB Statement No. 87, Leases. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 91, Conduit Debt Obligations. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2022. ► GASB Statement No. 92, Omnibus 2020. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 93, Replacement of Interbank Offered Rates. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. ► GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023. ► GASB Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans -an amendment to GASB Statements No. 14 and No. 84, and a supersession of 28 FfNANClAL rv 2021 GASE Statement No. 32. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. ► GASB Implementation Guide 2019-3, Leases. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2022. G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position. 1. Cash and Investments The Authority'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 date of acquisition. The Authority held no investments during these years. 2. Receivables Accounts Receivable. The Authority records revenues when services are provided. All receivables are shown net of an allowance for uncollectibles. 3. Inventories The Authority maintains no significant inventory of office and maintenance supplies. These items are expensed as purchased and no inventory is recorded in these financial statements. The Authority uses the consumption approach in valuing inventories of A vgas sold for retail. That is, the purchase is recorded as a current asset on the cost basis and the expenditure is deferred until the inventory is consumed under the weighted average cost method. 4. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 5. Capital Contributions Airport Improvement Program -Certain expenditures for airport capital improvements are significantly funded through the Federal Aviation Administration's Airport Improvement Program (AIP) and the Kansas Department of Transportation's Airport Improvement Program (KAIP), with certain matching funds of the Authority. Capital funding provided under the AIP grant programs are considered earned as the related allowable expenditures are incurred. Grants received under the AIP programs are reported in the Statement of Revenues, Expenses and Changes in Net Position, as non-operating revenues and expenses as capital contributions. Defense Reutilization Marketing Office Program -The Authority is a participant in the Defense Reutilization Marketing Office (DRMO) program. The DRMO entity disposes of United States military surplus property. The property is first offered for reutilization with the Department of Defense, transferred to other federal agencies or donated to state and local governments. 29 FINANCIAL FY 2021 The Authority's policy is to record capital assets having a cost (or by implication fair value) in excess of $1,000 at acquisition. The Authority's capitalization policy with respect to capital assets is to expense capital assets costing $1,000 or less. Freight or other expenses necessary to put the asset into service equal to or greater than $1,000, are capitalized. The Authority estimates the United States military donated items to have a value equal to 20% of cost. Items having an original cost by the military of less than $5,000 will be valued at $ I with memo of original cost. Items having an original cost of more than $5,000 will be valued at 20% of original cost rounded to the nearest $1,000 with a memo to the file of the original cost. The Authority keeps record of the military donated assets having an original cost by the military of $5 ,000 or less in order to meet the tracking requirement and will treat as a consumable because the Authority believes the fair value of these is less than $1,000 each. If the Authority receives reliable written information indicating this procedure has produced a value significantly different from fair value, an adjustment to that value will be made. Donated DRMO property with a value in excess of $1,000 is reported in the Statement of Revenues, Expenses and Changes in Net Position, as non-operating revenues and expenses as capital contributions. The Federal Aviation Administration, as the oversight agency, requires that the Airport track all the contributed property and the property must be held for at least one year prior to disposition. 6. Capital Assets Capital assets purchased or constructed are recorded at cost. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets' lives are not included in capital assets cost. Capital assets donated to the Authority are recorded at their estimated acquisition value at the date of donation. Donated assets include property and equipment transferred to the Authority from the United States of America, September 9, 1966 and recorded at acquisition value at that date. The Authority maintains a capitalization threshold of $1,000. Capital assets are depreciated using the straight-line method over the following estimated useful lives: 7. Compensated Absences Assets Buildings Equipment Vehicles Airfield Years 5 -50 5-10 7-10 10-30 Substantially all full-time employees receive compensation for vacations, holidays, illness and certain other qualifying absences. The number of days compensated for various categories of 30 FINANCIAL FY 2021 absence is generally based on length of service. Liabilities relating to these absences are recognized as incurred and included in accrued expenses. Per the Authority's compensation policy, the paid time off is not able to accrue beyond a one-year period, therefore all such liabilities are recorded as current. 8. Deferred Outflows and Inflows of Resources In addition to assets, the statement of net position may report a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority currently reports deferred charges on early retirement on debt refunding. The deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The Authority also reports a collective deferred outflow of resources related to pensions and deferred outflows for OPEB, which is described further in Note IV A and Note IV G, respectively. In addition to liabilities, the statement of net position may report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority reports a collective deferred inflow of resources related to pensions and OPEB, which is described further in Note IV A and Note IVG, respectively. 9. Net Position In proprietary fund financial statements net position is classified into three components: • Net investment in capital assets -consisting of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, leases, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. • Restricted net position -consisting of net position with constraints placed on its use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other govemmcovents; or (2) law through constitutional provisions or enabling legislation. The Authority first utilizes restricted resources to finance qualifying activities. • Unrestricted net position -All other net position that does not meet the definition of "restricted" or "net investment in capital assets". II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Cash-Basis Law (KSA 10-1113) The Authority was in compliance with this law at all times during the year. 31 m. FINANCIAL FY 2021 B. Depository Security (KSA 9-1402) The Authority's funds were adequately secured at all times during the year. DETAILED NOTES A. Deposits As of December 31, 2021 and 2020, the Authority had cash and cash equivalents as listed below: 2021 Gross Cash Balances Cash $ 5,253,946 $ Less: Deposits in Transit and Petty Cash (3,299) Add: Uncleared Checks 72,135 Bank Balance 5,322,782 Less: FDIC Coverage 525,745 Balances Securable by Collateral $ 4,797,037 $ Security Provided by Depositories $ 6,314,632 $ The Authority had the following investments and maturities: Year 2021 2020 Investment Type Kansas Municipal Investment Pool Kansas Municipal Investment Pool Fair Value $ 49,821 149,384 Maturities Less than 1 Year $ 49,821 149,384 2020 2,106,496 (11,665) 34,959 2,129,790 537,548 1,592,242 2,001,818 Rating U.S. AAAf1/Sl+ AAAf1/S1+ The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest, by the U.S. government or any agency thereof, with maturities up to four years. No more than ten 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 primacy government securities dealers. The Authority's policies relating to deposits and investments are governed by various Kansas Statutes (KSA). Those statutes specify the type of deposits and investments as well as the securing of those deposits and investments. 32 ' FINANCIAL FY 2021 Interest rate risk -In accordance with Kansas Statute 12-1675, the Authority manages its exposure to interest rate fluctuations by limiting all time investments to maturities of less than two years. Credit risk -State law limits the amount of credit risk by restricting governments to specific investment types as listed in KSA 12-1675. The Authority's policy is to place idle funds in certificates of deposit, United States obligations, and the Kansas Municipal Investment Pool (KMIP). The KMIP was rated AAAf/Sl+ by Standard & Poor's as of the date of this report. The KMIP is permitted to invest in fully collateralized certificates of deposit, certain obligations of the United States, certain repurchase/reverse repurchase agreements, and other types of investments. Maturity information released by the KMIP showed that the investment pool consisted of investment with a maturity date of 365 days or less. Custodial credit risk deposits-The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository fmancial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Kansas Statutes 9-1402 and 9-1405 require that governments obtain security for all deposits. The Authority manages its custodial credit risk by requiring the fmancial institutions to grant a security interest in securities held by third-party custodial banks. Monies in the Kansas Municipal Investment Pool are not required to have pledged securities. Custodial credit risk-investments. For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. State statutes require investments to be adequately secured. Concentration of credit risk -This is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Authority manages this risk by placing funds with financial institutions only after contacting all eligible institutions in the taxing area and monies in the Kansas Municipal Investment Pool are diverse according to the policies of the investment pool. 100% of the Authority's investments is in KMlP, which results in a concentration of credit risk. B. Receivables Receivables as of year-end, including the applicable allowance for uncollectible accounts, are as follows: Receivables Accounts Grants Less: Allowance for Uncollectibles Total 2021 $ 94,058 1,452,931 (1,500) $ 1,545,489 $ $ 2020 178,682 213,788 (1,500) 390,970 33 FINANCIAL FY 2021 C. Capital Assets The following is a summary of the changes in capital assets during the current and preceding year: Balance Balance January 1, December 2021 Additions Dispositions Reclassify 31, 2021 Capital Assets Non-Depreciable Land $ 9,874,567 $ 46,198 $ $ $ 9,920,765 Construction in Progress 205,592 1,779,629 1,985,221 Total Non-Depreciable 10,080,159 1,825,827 11,905,986 Depreciable Buildings and Improvements 30,521,989 485,933 (24,855) 30,983,067 Airfield and Improvements 46,303,393 128,021 (2,822,496) 43,608,918 Equipment 5,799,934 931,013 (699,171) 6,031,776 Total Depreciable 82,625,3 16 1,544,967 (3,546,522) 80,623,761 Total Non-Depreciable & Depreciable 92,705,475 3,370,794 (3,546,522) 92,529,747 Accumulated Depreciation Buildings and Improvements (16,532,370) (1,150,795) 24,855 (17,658,310) Airfield and Improvements (29,655,836) (1,631,452) 2,822,495 (28,464,793) Equipment (4,256,095) (283,737) 660,705 (3,879,127) Total Accumulated Depreciation (50,444,301) (3,065,984) 3,508,055 (50,002,230) Total Capital Assets $ 42,261,174 $ 304,810 $ (38,467) $ $42,527,517 34 FINANCIAL FY 2021 Balance Balance January 1, December 2020 Additions Dispositions Reclassify 31,2020 Capital Assets Non-Depreciable Land $ 10,166,124 $ 43,066 $ (334,623) $ $ 9,874,567 Construction in Progress 132,218 186,591 (113,217) 205,592 Total Non-Depreciable 10,298,342 229,657 (334,623) (113,217) 10,080,159 Depreciable Buildings and Improvements 29,839,596 682,393 30,521,989 Airfield and Improvements 45,808,087 382,089 113,217 46,303,393 Equipment 5,592,776 207,158 5,799,934 Total Depreciable 81,240,459 1,271,640 113Jl7 82,625,316 Total Non-Depreciable & Depreciable 91,538,801 1,501,297 (334,623 ) 92,705,475 Accumulated Depreciation Buildings and Improvements (15,394,873) (1,137,497) (16,532,370) Airfield and Improvements (28,024,512) (1,631,324) (29,655,836) Equipment (4,008,649) (247,446) (4,256,095) Total Accumulated Depreciation (47,428,034) (3,016J67) ( 50,444,30 l) Total Capital Assets $ 44,110,767 $ (1,514,970) $ (334,623) $ $ 42,261,174 D. Long-Term Liabilities Following is a summary of changes in long-term liabilities during the current and preceding year: Long-Term Liabilities Current Portion of Compensated Absences General Obligation Bonds Less: Unamortized Discount Lease Purchase Agreement Net Pension Liability and OPEB Special Assessment Debt Security Deposits Returnable Total Long-Term Liabilities Current Maturities Long-Term Liability Net Balance January 1, 2021 $ 51,799 23,100,000 (18,564) 460,000 729,594 2,455 83,989 $24,409,273 (3,824,196) $20,585,077 Additions $ 17,092 5,890,000 (23,546) 14,955 $ 5,898,501 Reductions $ 15,663 3,730,000 59 39,942 205,894 2,455 7,173 $ 4,001,186 Current Balance Maturities December December 31,2021 31, 2021 $ 53,228 $ 53,228 25,260,000 1,670,000 (42,051) 420,058 40,800 523,700 91,771 $26,306,706 $ 1,764,028 (1,764,028) $24,542,678 35 ' FINANCIAL FY 2021 Current Balance Balance Maturities January 1, December December 2020 Additions Reductions 31,2020 31,2020 Long-Term Liabilities Current Portion of Compensated Absences $ 39,195 $ 18,661 $ 6,057 $ 51,799 $ 51,799 General Obligation Bonds 22,425,000 2,100,000 1,425,000 23,100,000 3,730,000 Less: Unamortiz.ed Discount (17,703) (861) (18,564) Lease Purchase Agreement 460,000 460,000 39,942 Net Pension Liability and OPEB 646,194 83,400 729,594 Special Assessment Debt 4,805 2,350 2,455 2,455 Security Deposits Returnable 57.564 36 341 9916 83989 Total Long-Term Liabilities $ 23,155,055 $ 2,698.402 $ 124421462 $ 24,409,273 $ 3,824,196 Current Maturities (l.466.515) (3,824,196) Long-Term Liability Net $ 21,688,540 $ 201585.077 The following is a detailed listing of the Authority's long-term debt including general obligation bonds, lease purchase agreements, and special assessment debt at December 31, 2021: General Obligation Debt General Obligation 2015-A, due 2025 General Obligation 2017-A, due 2030 General Obligation 2017-B due 2031 General Obligation 2019-A due 2029 General Obligation 2019-B due 2023 General Obligation 2021-A due 2036 General Obligation Temporary Notes 2019-1 due 2021 General Obligation Temporary Notes 2020-1 due 2023 General Obligation Temporary Notes 2021-1 due 2023 Plus Unamortized Bond Premium Less: Unamortized Bond Discount Total General Obligation Debt Taxable Lease Purchase Agreement -Direct Borrowing Bldg. 824 Lease Purchase, due 2030 Total Long Term Debt Interest Expense in 2021 is as follows: General Obligation Bonds Special Assessment Debt Capital Leases Orii:inal Issue $ 3,075,000 10,255,000 4,835,000 675,000 3,455,000 2,345,000 2,250,000 2,100,000 3,545,000 460,000 Amortization of Bond Discount, Premium & Deferred Refundings Total Debt Interest Expense Interest Rates 1.50-3.55% 1.61-3.35% 2.00-3.00% 2.10-3.10% 2.80-3.00% 0.25-2.00% 2.50% 0.48% 0.45% 3.30% Bonds Outstandini: $ $ $ $ 430,000 9,935,000 4,735,000 555,000 1,615,000 2,345,000 2,100,000 3,545,000 18,163 (60,214) 25,217,949 420,058 25,638,007 598,007 110 14,223 126,605 738,945 36 FINANCIAL FY 2021 Annual debt service requirements to maturity for general obligation bonds and temporary notes to be paid with tax levies and rental revenue as follows: Bonds Year Outstanding Interest Due Total 2022 $ 1,670,000 $ 564,031 $ 2,234,031 2023 7,355,000 524,787 7,879,787 2024 1,760,000 454,541 2,214,541 2025 1,810,000 411,120 2,221,120 2026 1,865,000 363,633 2,228,633 2027-2031 9,960,000 983,283 10,943,283 2032-2036 840,000 49,780 889,780 $ 25,260 000 $ 3,351,175 $ 28,611,175 The Authority's outstanding 2020-1 and 2021-1 temporary notes will be refinanced in 2023 with Authority issued general obligation bonds. The Authority has entered into lease agreement as lessee for financing the Building 824 - Transportation Facility Expansion. This year, $20,694 was included in depreciation expense. This lease agreement qualifies as a capital lease and therefore have been recorded at the present value of their future minimum lease payments as of the inception date. The assets acquired through capital leases are as follows: Building 824 -Transportation Facility Expansion Less Accumulated Depreciation Net Book Value $ $ 413,874 (31,040) 382,834 Annual debt service requirements to maturity for a taxable lease purchase agreement will be paid with building and land rental revenues as follows: Lease Purchase Year Outstanding Interest Due Total 2022 $ 40,800 $ 13,528 $ 54,328 2023 42,157 12,171 54,328 2024 43,560 10,768 54,328 2025 45,009 9,319 54,328 2026 46,507 7,821 54,328 2027-2030 202,025 15,285 217,310 $ 420,058 $ 68.892 $ 488,950 37 FINANCIAL FY 2021 1 E. Capital Contributions Since its inception, the Authority has received capital contributions through Federal and State grants as follows: Federal State Total Inception to Date $ 37,997,481 2,465,849 $ 40,463,330 2021 $ 2,716,326 $ 2,716,326 2020 $ 1,760,718 250,000 $ 2,010,718 The Authority has designated $90,000 to be used as an insurance increase reserve or to accelerate future debt service payments. As of December 31, 2021, the reserve had been funded but not used. IV. OTHER INFORMATION A. Defined Benefit Pension Plan Description of Pension Plan. The Authority participates in a cost-sharing multiple-employer pension plan (Pension Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting/or Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System (KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS provides benefit provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49: Public employees, which includes: • State/School employees • Local employees • Police and Firemen • Judges Substantially all public employees in Kansas are covered by the Pension Plan. Participation by local political subdivisions is optional, but irrevocable once elected. Those employees participating in the Pension Plan for the Authority are included in the Local employees group. KPERS issues a stand-alone comprehensive annual financial report, which is available on the KPERS website at www.kpers.org. Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members with ten or more years of credited service may retire as early as age 55, with an actuarially reduced monthly benefit. Normal retirement is at age 65, age 62 with ten years of credited service, or whenever a member's combined age and years of service equal 85. 38 FINANCIAL FY 2021 Monthly retirement benefits are based on a statutory formula that includes final average salary and years of service. When ending employment, members may withdraw their contributions from their individual accounts, including interest. Members who withdraw their accumulated contributions lose all rights and privileges of membership. For all pension coverage groups, the accumulated contributions and interest are deposited into and disbursed from the membership accumulated reserve fund as established by K.S.A. 74-4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lump-sum payment of up to 50% of the actuarial present value of the member's lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of the lump sum. Benefit increases, including ad hoc post-retirement benefit increases, must be passed into law by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of the State of Kansas. The 2012 Legislature made changes affecting new hires, current members and employers. A cash balance retirement plan (KPERS 3) was created for new hires starting after January 1, 2015. Normal retirement age for KPERS 3 is 65 with five years of service or 60 with 30 years of service. Early retirement is available at age 55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on the account balance at retirement. For all pension coverage groups, the retirement benefits are disbursed from the retirement benefit payment reserve fund as established by K.S.A. 74-4922. Contributions. Member contributions are established by state law and are paid by the employee according to the provisions of Section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates are determined based on the results of an annual actuarial valuation. The contributions and assets of all groups are deposited in the Kansas Public Employees Retirement Fund established by K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserve basis. For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in contribution rates for KPERS employers. Annual increases in the employer contribution rates related to subsequent benefit enhancements are not subject to these limitations. The statutory cap increase over the prior year contribution rate is 1.2% of total payroll for the fiscal year ended June 30, 2021. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rates are as follows: 2021 2020 Local Employees Actuarial Statutory Employer Employer Rate Capped Rate 8.87% 8.87% 8.61% 8.61% 39 FINANCIAL FY 2021 Member contribution rates as a percentage of eligible compensation for the fiscal year 2021 are 6.00% for local employees. Contributions to the pension plan for the Authority were $79,143 and $75,190 for the years ended December 31, 2021 and 2020, respectively. Employer Allocations. Although KPERS administers one cost-sharing multiple-employer defined benefit pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined contribution rate by group. Following this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense are determined separately for each of the following groups of the plan: • State/School • Local • Police and Firemen • Judges To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify additions, deductions, and fiduciary net position applicable to each group. The allocation percentages presented for each group in the schedule of employer and nonemployer allocations are applied to amounts presented in the schedules of pension amounts by employer and nonemployer. The allocation percentages for the Authority's share of the collective pension amounts as of December 31, 2021 and 2020, are based on the ratio of its contributions to the total of the employer and nonemployer contributions of the group for the fiscal years ended June 30, 2021 and 2020. The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 3 0, 2021, the Authority's proportion for the local employees group was 0.042484%, which was a increase of .0012% from its proportion measured at June 30, 2020. Net Pension Liability. At December 31, 2021 and 2020, the Authority reported a liability of $509,789 and $715,670, respectively, for its total proportionate share of the net pension liability. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of December 31, 2020, which was rolled forward to June 30, 2021, using the following actuarial assumptions: Assumptions Price inflation Salary increases, including wage increases Long-term rate ofreturn, net of investment expense, and including price inflation 2.75% 3.50% to 12.00% including inflation 7.25% 40 FINANCIAL FY 2021 Mortality rates were based on the RP-2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2016. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study conducted for the three year period January 1, 2016 through December 31, 2018. The experience study is dated January 7, 2020. The long-term expected rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return ( expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate ofretum by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates of arithmetic real rates of return for each major asset class as of the most recent experience study, dated January 7, 2020, as provided by KPERS' investment consultant, are summarized in the following table: Long•term Long•term Asset class target allocation expected real r;1te of return US.Equilies 23.S(Jllo S.20'!o Non·IJS. l:qUilkl> 23.50 6.40 Pri~ate Equity 8.00 9.50 Pnvate Real £state 11.-00 us VieltDriven 8.00 uo Rtl!llleWm 11.00 325 ~Income 11.00 1.55 Short letm lnves1111e111S 4.00 0.2.S Tolal 100.()()% Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the contractually required rate. The local employers do not necessarily contribute the full actuarial determined rate. Based on legislation passed in 1993 and subsequent legislation, the employer contribution rates certified by the Board may not increase by more then the statutory cap. The statutory cap was 1.2%. Sensitivity of the Authority's proportionate share of the net pension liability to changes in the discount rate. The following presents the Authority's proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the Authority's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage point lower (6.25%) or I-percentage point higher (8.25%) than the current rate: 41 ' FINANCIAL FY 2021 I 1% Decrease (6.25%) $ 838,554 1% Decrease (6.50%) $ 1,007,234 2021 Discount Rate (7.25%) $ 509,789 2020 Discount Rate (7.50%) $ 715,670 1% Increase (8.25%) $ 234,079 1% Increase (8.50%) $ 470,540 Pension Expense. For the years ended December 31, 2021 and 2020, the Authority recognized pension expense of $50,796 and $89,686 respectively, which includes the changes in the collective net pension liability, projected earnings on pension plan investments, and the amortization of deferred outflows of resources and deferred inflows of resources for the current period. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2021 and 2020, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions: 2021 2020 Deterred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Differences Between Actual and Expected Experience $ 20,123 $ 4,616 $ 11,950 $ 9,201 Net Differences Between Projected and Actual Earnings on Investments 18l,025 83,502 Changes in Proportion 34,068 33,137 40,138 49,264 Changes in Assumptions 100,353 43,107 Contributions Made After Measurement Date 43,031 35,467 Total $ 197,575 $ 218,778 $ 214,164 $ 58,465 The $43,031 reported as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 42 Year Ended December 312 2022 2023 2024 2025 2026 Total B. Deferred Compensation Plan Deferred Outflows (Inflows) of Resources $ (1,081) $ (8,824) (18,175) (40,318) 4,164 (64,234) FINANCIAL FY 2021 The Authority offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all Authority 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 Authority's general creditors. C. Flexible Benefit Plan (I.R.C. Section 125) The Authority has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All Authority employees working more than 20 hours per week are eligible to participate in the Plan beginning after thirty days of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D. Risk Management The Authority is exposed to various levels of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. There has been no significant reduction in the Authority's insurance coverage from the previous year. In addition, there have not been settlements in excess of the Authority's coverage in any of the prior three years. E. Contingent Liabilities The Authority 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 are subject to audit. Any disallowed claims resulting from such audits could become a liability of the Authority. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the Authority at December 31, 2021 and 2020. 43 FINANCIAL FY 2021 F. Other Postemployment Benefits (OPEB) As a component unit of the City of Salina, the Authority participates in the City's defined benefit health care plan that is administered by the City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. KS.A 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. As a component unit of the primary government, the Authority is not required to make contributions to the plan. The OPEB cost, actuarial valuations of the ongoing plan and net OPEB obligations for the Authority as a sub-group of the plan, are calculated and recorded in the City's Comprehensive Annual Financial Report. G. Other Postemployment Healthcare Benefits (KPERS) Plan Description. The Authority participates in the KPERS Long-Term Disability plan, a single-employer defined benefit other postemployment benefit (OPEB) plan (the Plan), which is administered by the Kansas Public Employees Retirement System (KPERS). The Plan provides long-term disability benefits and a life insurance benefit for disabled members to KPERS members, as provided by KS.A. 74-4925. The Plan is administered through a trust held by KPERS that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. Benefits. Benefits are established by statute and may be amended by the KPERS Board of Trustees. The Plan provides long-term disability benefits equal to 60 percent (prior to January 1, 2006, 66 2/3 percent) of annual compensation, offset by other benefits. Members receiving long-term disability benefits also receive credit towards their KPERS retirement benefits and have their group life insurance coverage continued under the waiver of premium provision. The monthly long-term disability benefit is 60 percent of the member's monthly compensation, with a minimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income, which include Social Security primary disability or retirement benefits, workers compensation benefits, other disability benefits from any other sources by reason of employment, and earnings from any form of employment. If the disability begins before age 60, benefits are payable while the disability continues until the member's 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits are payable while the disability continues, for a period of five years or until the member retires, whichever occurs first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime. The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member's annual rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the time of the last date on payroll. If the member has been disabled for five or more years, the annual compensation or salary rate at the time of death will be 44 FINANCIAL FY 2021 1 indexed using the consumer price index, less one percentage point, to compute the death benefit. If a member is diagnosed as terminally i11 with a life expectancy of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the group life insurance coverage to an individual insurance policy. Employees Covered by Benefit Terms. At the valuation date, the following members were covered by the benefit terms: Active Employees Disabled Employees Total 2021 14 14 2020 14 14 Total OPEB Liability. The Authority's total KPERS OPEB liability of $13,911 and $13,924 for December 31, 2021 and 2020, respectively, which was measured as of June 3 0, 2021 · and 2020 and was determined by an actuarial valuation as of December 31, 2020 and 2019, which was rolled forward to June 30, 2021 and 2020, using the following actuarial assumptions: Discount Rate Implicit Inflation Rate Mortality Rates 2.16% for 2021 and 2.21% for 2020 2.75% Local Males: 90% ofRP-2014 M Total Dataset +2 Local Females: 90% of RP-2014 F Total Dataset+ 1 Generational mortality improvements were projected for future years using MP-2021 Post-disability mortality rates are included in long-term disability claim termination rates. Salary Increases 3.50% to 10.00% based on years of service Payroll Growth 3 .00% Actuarial Cost Method Entry Age Normal The discount rate was based on the bond buyer general obligation 20-bond municipal index. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study for the period of January 1, 2016 through December 31, 2018. Changes in the Total OPEB Liability Balance at December 31, 2020 $ 13,924 Changes for the Year: Service Cost Interest on Total OPEB Liability Effect of Economic/Demographic Gains or Losses Effect of Assumptions Changes or Inputs Benefit Payments Net Changes Balance at December 31, 2021 3,797 392 (4,212) 10 (13) $ ___ 1_3...,,9_1_1 _ 45 FINANCIAL FY 2021 Sensitivity of the Total KPERS OPEB Liability to Changes in the Discount Rate. The following presented the total KPERS OPEB liability of the Authority, as well as what the Authority's total KPERS OPEB liability would be if it were calculated using a discount rate that is I -percentage-point lower ( 1.16%) or }-percentage-point higher (3 .16%) than the current discount rate: 2021 1% Decrease Discount Rate 1% Increase {1.16%} {2.16%) (3.16%} $ 14,040 $ 13,911 $ 13,649 2020 1% Decrease Discount Rate 1% Increase (1.16%} (2.16%} {3.16%} $ 14,114 $ 13,924 $ 13,610 Sensitivity of the Total KPERS OPEB Liability to Changes in the Healthcare Cost Trend Rates. The following presented the total KPERS OPEB liability of the Authority calculated using the current healthcare cost trend rates as well as what the Authority's total KPERS OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates. The reader should note that healthcare trend rates do not affect the liabilities related to the long-term disability benefits sponsored by KPERS, but this exhibit is provided as it is a required disclosure under GASB 75. 2021 2020 1% Decrease $ 13,911 13,924 Health Cost Trend Rates $ 13,911 13,924 1% Increase $ 13,911 13,924 For the year ended December 31, 2021 and 2020, the Authority recognized OPEB expense of $10,748 and $11,170, respectively. Deferred Outflows of Resources and Deferred Inflows of Resources. The Authority reported deferred outflows and inflows related to other postemployment benefits from the following sources: Differences Between Actual and Expected Experience Changes in Assumptions Benefit Payments Made After Measurement Date Total 2021 Deferred Deferred Outflows of Inflows of Resources Resources $ -$ 10,603 803 123 $ 803 $ 10,726 ---- 2020 Deferred Deferred Outflows of Inflows of Resources Resources $ $ -$ 897 3,830 7,813 148 4,727 $ 7,961 ---- Amounts reported as deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: 46 FINANCIAL FY 2021 Year Ended December 31. 2022 $ (1,343) 2023 (1,343) 2024 (1,343) 2025 (1,343) 2026 (1,335) Thereafter (3,216) Total $ (9,923) H. Environmental Matter The U.S. Department of Defense transferred property located at the former Schilling Air Force Base (the Base or Site) to the Authority on or about September 9, 1966. The property is now known to contain areas of extensive soil and groundwater contamination, which is a result of the use and disposal of chlorinated solvents during military operations at the Base from 1942 until Base closure in 1965. The U.S. Department of Defense is responsible for the investigation and remediation of contamination caused by military activities at current and former military bases. The U.S. Anny Corps of Engineers (Corps) is the lead agency for the Department at formerly used defense sites. The Corps has investigated the soil and groundwater contamination at the Site under the regulatory oversight of the U.S. Environmental Protection Agency (EPA) and the Kansas Department of Health and Environment (KDHE). The Site is not designated as a National Priority List Superfund site, but investigation and remediation are required to be in compliance with the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). A November 23, 2020, Consent Decree approved by the U.S. District Court for the District of Kansas provides the Salina Public Entities the funds necessary to undertake the cleanup of the former Schilling AFB environmental contamination without requiring local matching funds. The project will be administered by means of the November 3, 2020 Former Schilling Air Force Base Site Environmental Project Management Agreement approved by the Salina Public Entities' respective governing boards. The management agreement provides for the administrative structure necessary to enable the Salina Public Entities to collectively complete the cleanup activities detailed in the KDHE CAD. On January 6, 2021, the U.S. Treasury transferred $65,900,000 to the City of Salina's "Fonner SAFB Environmental Project Fund" established by City ordinance for the purpose of segregating the settlement proceeds from all other City funds. In March 2021, KDHE approved an amended Consent and Final Order (CAFO) that reaffirms the KDHE's July 2019, Corrective Action Decision (CAD) scope of work for final Remedial Design (RD) and Remedial Action (RA). The final RD and RA work will be funded by funds on deposit in the Former SAFB Environmental Project Fund. Once the remedial action is completed the site will be CERCLA compliant. 47 FINANCIAL FY 2021 Based on the terms of the Court-approved Consent Decree and presently known information concerning total estimated costs for the project, the Authority does not expect but acknowledges the potential for future financial liability. At this time, however, that potential liability is regarded by the Authority as sufficiently contingent that no reasonable estimate of the potential liability can be made. Therefore, no liability related to the matter has been recorded. I. Rental Income Under Operating Leases A significant portion of the operating revenue of the Authority is generated through the leasing of airport and building space to airport fixed base operators and others on a fixed fee as well as a contingent rental basis. Ownership risks are retained by the Authority, and accordingly, such leases are treated as operating leases. The following is a schedule of minimum future rentals on non-cancellable operating leases to be received in each of the next five years and thereafter: J. Major Customers Years Ending December 31, 2022 2023 2024 2025 2026 Thereafter Total $ 1,758,220 1,260,191 713,503 286,395 202,431 1,313,993 $ 5,534,733 The Authority received significant operating revenue from Avflight Salina, Kansas Erosion Products, LLC., 1 Vision Aviation, Stryten Salina, LLC, and SFC Global Supply Chain. Rent from these five tenants equals 40.64% of operating revenue for the year ended December 31, 2021. Additionally, for the year ended December 31, 2020, the Authority's top five tenants Avflight Salina, Kansas, Erosion Products, LLC., 1 Vision Aviation, Exide Battery, and the United States Special Operations Command. Rent from these five tenants equals 43.02% of operating revenue. K. Non-Operating Revenue and (Expenses) Net non-operating revenue and expense consisted of the following for the years ended December 31, 2021 and 2020: 48 Mill Levy Interest Income Gain (Loss) on Sale of Assets Total Interest Expense General Obligation Bonds and Temporary Notes Special Assessment Debt Capital Leases Bond Issuance Costs Amortization of Bond Discount Total Net Non-Operating Revenue and (Expenses) L. Commitments Under Operating Lease FINANCIAL FY 2021 December 31, 2021 2020 $ 2,570,657 $ 2,639,481 1,311 2,161 154,774 (2,395,710) 2,726,742 245,932 (598,007) (646,227) (110) (215) (14,223) (84,270) (44,885) ~126,605) (125,379) (823,215) (816,706) $ 1,903,527 $ (570,774) The Authority has entered into a certain non-cancellable operating lease agreement which will expire in 2024, for the rental of office and computer equipment. During 2021 and 2020, the Authority paid $12,128 in rental fees. Minimum rentals, on an annual basis hereafter are as follows: M. Subsequent Events Years Ending December 31 , 2022 2023 2024 Total $ $ 12,128 12,128 2,536 26,792 On March 10, 2022, SkyWest Airlines notified the U.S. Department of Transportation (USDOT) that the airline intends to terminate United Express service at Salina, KS and twenty- eight other United Express communities. The SkyWest decision also impacted essential air service at the Kansas communities of Hays, Dodge City, and Liberal. The decision is not driven by any failure in the US Department of Transportation (USDOT) Essential Air Service Program (EAS) or the communities. The ongoing national pilot shortage has resulted in service cuts by all U.S. airlines. SkyWest lacks the pilots needed to meet demand and is reducing flying across its network. On June 24, 2022, SkyWest Airlines notified the USDOT of the airline's decision to withdraw the March l 0, 2022 termination notice for Salina, KS. The filing rescinded the airline's notice of intent to terminate the essential air service at the Salina Regional Airport. 49 FINANCIAL FY 2021 On March 16, 2022, the SAA Board of Directors adopted a resolution authorizing up to $12.25 million in General Obligation Bond financing for the rehabilitation of two aircraft hangars and associated pavement rehabilitation. Subsequently on April 4, 2022, the City of Salina adopted an ordinance authorizing the same. The first hangar would be for the purposes of converting the existing hangar into a facility that could accommodate the painting of regional jet and narrow body jet aircraft. The Authority has an existing aircraft maintenance, repair, and overhaul (MRO) tenant on the Salina Regional Airport that is interested in leasing the hangar to expand its operations to include aircraft paint. The second hangar would be upgraded to include additional improvements in support of additional MRO capacity of the Airport. In addition to the improvements to the two aircraft hangars, the project authorization also includes the hangars associated pavements such as aprons, ramps and taxilanes. The Authority is progressing with the $12.25 authorization in a phased approach which initially included a $1 million taxable General Obligation Temporary Note (GOTN) expected to close on July 7, 2022. This 2022-1 GOTN will finance the design of the aircraft paint facility design. Completing the design will include obtaining construction bids that will allow the Authority to determine the amount of the $12.25 million needed to finance the project and secure the tenant lease agreement necessary to service the debt. 50 REQUIRED SUPPLEMENT AL rNFORMA TTON FY 2021 SALINA AIRPORT AUTHORITY SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Kansas Public Employees Retirement System Measurement Date Proportion of the net pension liability Proportionate share of the collective net pension liability Covered payroll from the period July I -June 30" Net pension liability as a percentage of covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability Notes to the Schedule Changes in assumptions. June 30. 2021 0.424840% $ 509,789 $ 819,071 62.24% 76.40% December 31, 2021 June 30 2020 0.041281% $ 715,670 $ 778,919 91.88% 66.30% June 30 2019 0.045289% $ 632,856 $ 830,413 76.21% 69.88% June30 2018 0.043452% $ 605,630 $ 777,734 77.87% 68.88% June 30 2017 0.041662% $ 603,456 $ 708,538 85.17% 67.12% June 30 2016 0.037666% $ 582,704 $ 645,485 90.27% 65.10% As a result of the experience study completed in November 2016, there were several changes made to the actuarial assumptions and methods since the prior valuation are as follows: •The price inflation assumption was lowered from 3.00% to 2. 75%. •The investment return assumption was lowered from 8.00% to 7. 75%. •The general wage growth assumption was lowered from 4.00% to 3.50%. •The payroll growth assumption was lowered from 4.00% to 3.000/4. Changes from the November 2016 experience study that impacted individual groups are listed below: June30 2015 0.041581% $ 545,977 $ 694,613 78.60% 64.95% •The post-retirement health mortality assumption was changed to the RP-2014 Mortality Table, with adjustments to better fit the observed experience for the various KPERS groups. The most recent mortality improvement scale, MP-2016, is used to anticipate future mortality improvements in the valuation process through the next experience study. •The active member mortality assumption was modified to also be based on the RP-2014 Employee Mortality Table with adjustments. •The retirement rates for the select period (when first eligible for unreduced benefits under Rule of 85) were increased, but all other retirement rates were decreased. •Disability rates were decreased for all three groups. •The termination of employment assumption was increased for all three groups. •The interest crediting rate assumption for KPERS 3 members was lowered from 6.50% to 6.25%. As a result of the experience study completed in January 2020, there were several changes made to the actuarial assumptions and methods since the prior valuation. The changes that impact all groups were effective December 31, 2019 and include: •The investment return assumption was lowered from 7.75% to 7.25%. •The general wage growth assumption was lowered from 3.50% to 3.25%. •The payroll growth assumption was lowered from 3.00% to 2.75%. Changes from the January 2020 experience study that impacted individual groups are listed below: •Retirement rates were adjusted to partially reflect observed experience. •Termination rates were increased for most KPERS groups. •Disability rates were reduced. •Factors for the State group that are used to anticipate higher liabilities due to higher final average salary at retirement for pre-1993 hires were modified to better reflect actual experience. •The administrative expense load for contributions rates was increased from 0.16% to 0.18%. •Information reported above is as of the KPERS measurement date of June 30. GASB 68 requires a presentation of IO years. As of June 30, 2021 only seven years of information was available. "Covered payroll is measured as of the measurement date ending June 30. 51 Contractually required employer contribution $ Contributions in relation to the contractually required contribution Contribution deficiency (excess) $ Covered payroll" $ Contributions as a percentage of covered-employee payroll " Covered payroll is measured as of the fiscal year ended December 31. 2021 SAUNA AIRPORT AUTHORITY SCHEDULE OF EMPLOYER CONTRIBUTIONS Kansas Public Employees Retirement System Last Ten Fiscal Years 2020 2019 2018 2017 71,580 $ 75,190 $ 83,638 $ 78,940 $ 66,198 (71,580) (75,190) ~83,638} ~78,940} ~66,198} $ $ $ $ 892,259 $ 782,417 $847,208 $840,466 $758,750 8.02% 9.61% 9.87% 9.39% 8.72% REQUIRED SUPPLEl\1ENT AL INFORMATION FY 2021 2016 2015 2014 2013 2012 $ 61,622 $ 70,005 $ 68,904 $ 66,865 $ 66,766 {61,622} FD,005} ~68,904} {66,865} {66,766} $ $ $ $ $ =-$652,874 $672,878 $709,510 $747,901 $800,522 9.44% 10.40% 9.71% 8.94% 8.34% 52 REQUIRED SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY SCHEDULE OF CHANGES IN THE SALINA AIRPORT AUTHORITY'S DEATH AND DISABILITY TOTAL OPEB LIABILITY AND RELATED RATIOS December 31, 2021 2021 2020 2019 2018 Measurement Date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total OPEB Liability Service Cost $ 3,797 $ 3,430 $ 2,843 $ 2,825 Interest Cost 392 587 541 533 Effect of Economic/Demographic Gains or Losses (4,212) (4,295) (1,324) (4,199) Effect of Assumption Changes or Inputs 10 864 152 (87) Benefit Payments Net Change in Total Liability -Beginning of Year (13) 586 2,212 (928) Total OPEB Liability-Beginning of Year 13,924 13,338 11,126 12,054 Total OPEB Liability-End of Year $ 13,911 $ 13,924 $ 13,338 $ 11,126 Covered-Employee Payroll $ 800,448 $ 801,486 $ 826,640 $ 706,882 Total OPEB liability as a percentage of covered employee payroll 1.74% 1.74% 1.61% 1.57% Actuarially determined contribution $ $ 3,831 $ 4,219 $ 2,137 Actual contribution $ $ 3,831 $ 4,219 $ 2,137 Contributions as a percentage of covered payroll 0.00% 0.48% 0.51% 0.30% Notes to Schedule Changes of Assumptions and Other Inputs Changes of assumptions and other inputs reflect the effects of changes in the discount rate from 3.58% on June 30, 2017, 3.87% on June 30, 2018, 3.5% on June 30, 2019, 2.21% on June 30, 2020 and 2.16% on June 30, 2021. *GASB 75 requires presentation of ten years. Until a full 10-year trend is compiled, the Authority will 53 . SUPPLEMENTAL fNFORMA TION FY 2021_: SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 January 1 to December 31 2021 2020 Operating Revenues Airfield Fuel Flowage Fees Hangar Rent Landing Fees Ramp Rent Total Airfield Building and Land Rent Agri Land Rent Building Rents Land Rents Tank Rent Total Building and Land Rents Other Revenue Airport Marketing Commissions ARFF Training Other Income Total Other Revenue Total Operating Revenues $ $ 180,416 808,802 30,047 64,342 1,083,607 67,463 1,342,498 264,920 14,163 1,689,044 20,000 21,381 2,460 77,232 121,073 2,893,724 $ $ 190,668 634,594 55,856 60,120 941,238 67,683 1,221,999 240,100 13,974 1,543,756 60,420 14,999 91,933 167,352 2,652,346 54 SUPPLEMENTAL INFORMATION FY 202 l SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 ( continued) January 1 to December 31 2021 2020 Operating Expenses Administrative A/E, Consultants, Brokers $ 38,249 $ 15,830 Airport Promotion 230,943 194,563 Bad Debt Expense 107 54,847 Computer Network Administration 30,062 42,730 Dues and Subscriptions 30,653 26,388 Employee Retirement 61,544 100,855 FICA and Medicare 68,468 56,065 Industrial Development 31,000 28,000 Insurance, Property 204,106 174,784 Insurance,Medical 194,650 172,253 Kansas Unemployment Tax 9,342 802 Legal and Accounting 55,169 32,810 Office Salaries 575,076 546,022 Office Supplies 8,222 6,647 Other Administrative 17,941 14,607 Postage 1,116 1,648 Property Taxes 136,383 130,562 Special Events 2,498 Telephone 25,386 16,729 Training 2,520 4,405 Travel and Meetings 10,590 9,473 Total Administrative Expenses $ 1,734,025 $ 1,630,020 ( continued) 55 I SUPPLEMENT AL INFORMA TJON FY 2021 ! SALINA AIRPORT AUTHORITY SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the Years Ended December 31, 2021 and December 31, 2020 ( continued) January 1 to December 31 Maintenance Expenses Airfield Maintenance Airport Security Building Maintenance Equipment Fuel and Repairs Fire Services Grounds Maintenance Maintenance Salaries Other Maintenance Expenses Snow Removal Expense Utilities Total Maintenance Expenses Total Operating Expenses Surplus of Revenues over Expenses Before Depreciation Depreciation Operating Loss Before Non-Operating Revenues and Expenses Non-Operating Revenues and (Expenses) Mill Levy Interest Income on Investments Interest Expense Bond Issuance Costs Gain (Loss) on Sale of Assets Total Non-Operating Revenue (Expenses) Loss Before Capital Contributions Capital Contributions Net Position Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, End of Year 2021 $ 38,861 6,582 150,087 101,396 22,798 14,255 345,746 18,555 9,200 369,491 1,076,971 2,810,996 82,728 (3,065,984) (2,983,256) 2,570,657 1,311 (738,945) (84,270) 154,774 1,903,527 (1,079,729) 2,717,177 1,637,448 21,197,183 $ 22,834,631 2020 $ 70,644 666 118,472 72,011 21,936 10,960 299,035 23,084 4,599 220,298 841,705 2,471,725 180,621 (3,016,267) (2,835,646) 2,639,481 2,161 (771,821) (44,885) (2,395,710) (570,774) (3,406,420) 2,100,818 (1,305,602) 22,502,785 $ 21,197,183 'I 56 SUPPLEMENTAL INFORMATION FY 2021 AIRFIELD IMPROVEMENTS SALINA AIRPORT AU1HORITY CAPITAL EXPENDITIJRES January l to December 31 New underground service and 2 ground mounted lights for Fossett Airfield perimeter security fencing improvements Airfield guidance sign and lighting upgrades Airfield ramp improvements (north of Guard ramp) Total Airfield Improvements BUILDINGS KDOR DMV course rehabilitation Bldg. 313 electrical upgrades Bldg. 394 improvements Bldg. 498 restroom improvements B520, Unit E improvements Bldg. 614 roofreplacement Bldg. 655 fire supression system upgrades Bldg. 724 restroom remodel Bldg. 820 roof replacememt Bldg. 824 restroom remodel. Bldg. 1021 improvements Bldg. 1029 electrical upgrades Bldg. l 059 electrical upgrades Hangar 504 improvements Hangar 600 3 ton HV AC heat pump Hangar 606 improvements Hangar 959 improvements Total Building Improvements EQUIPMENT Aircraft rescue and firefighting equipment Airfield equipment Communications equipment Computer equipment Office equipment Shop equipment Terminal bldg. equipment Vehicles Total Equipment Additions CONSTRUCTION IN PROGRESS Airfield improvements Building improvements Total Construction in Progress LAND Rail spur upgrades TOT AL CAPITAL EXPENDITURES 2021 $ 6,565 26,581 87,412 7,463 128,021 67,388 7,200 16,903 12,749 5,011 139,287 7,282 18,935 13,218 19,583 41,705 2,780 2,780 23,156 5,191 19,957 82,808 485,933 53,524 57,336 112,469 2,492 18,811 430,437 7,025 248,919 931,013 506,319 1,273,310 1,779,629 46,198 $ 3,370,794 57 .I Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 ! SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2015-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 13,693 2023 8,443 2024 6,043 2025 3,195 $ 31,374 August 28, 2015 $ 3,075,000 2.672% September 1, 2025 $ 2,645,000 $ 430,000 Bond PrincieaI $ 175,000 80,000 85,000 90,000 $ 430,000 58 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENT AL INFORMATION . FY 2021 1 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2017-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 290,308 2023 278,463 2024 265,600 2025 228,160 2026 187,598 2027-2030 385,827 $ 1,635,956 July 12, 2017 $ 10,255,000 3.0353% September 1, 2030 $ 320,000 $ 9,935,000 Bond Princieal $ 515,000 525,000 1,440,000 1,475,000 1,335,000 4,645,000 $ 9,935,000 59 I Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 202 J. SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2017-B December 31, 2021 Schedule of Bond Interest and Principal Pa men ts Due in Bond Year Interest 2022 $ 141,800 2023 141,300 2024 140,550 2025 139,800 2026 139,050 2027-2031 468,600 $ 1,171,100 July 17, 2017 $ 4,835,000 2.0-3.0% September 1, 2031 $ 100,000 $ 4,735,000 Bond Principal $ 25,000 25,000 25,000 25,000 310,000 4,325,000 $ 4,735,000 60 SUPPLEMENTAL 1INFORMATION FY20211 . 1 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BONDS SERIES 2019-A December 31, 2021 Schedule of Bond Interest and Princi pal Paym ents Due in Bond Year Interest 2022 $ 15,163 2023 13,635 2024 12,043 2025 10,385 2026 8,530 2027-2029 13,505 $ 73,261 July 10, 2019 $ 675,000 2.775% September 1, 2029 $ 120,000 $ 555,000 Bond PrinciEal $ 65,000 65,000 65,000 70,000 70,000 220,000 $ 555,000 61 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2019-B December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 47,705 2023 26,100 $ 73,805 July 10, 2019 $ 3,455,000 2.915% September 1, 2023 $ 1,840,000 $ 1,615,000 Bond PrinciEal $ 745,000 870,000 $ 1,615,000 62 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 1 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BOND TEMPORARY NOTES SERIES 2020-1 December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 10,080 2023 10,080 $ 20,160 I September 1, 2020 $ 2,100,000 0.480% September 1, 2023 $ $ 2,100,000 Bond PrinciEal $ 2,100,000 $ 2,100,000 63 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATJON FY 2021 1 SALINA AIRPORT AUTHORITY TAXABLE GENERAL OBLIGATION BONDS SERIES 2021-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 32,387 2023 30,813 2024 30,305 2025 29,580 2026 28,455 2027-2036 165,130 $ 316,670 August 1 7, 2021 $ 2,345,000 1.728% September 1, 2036 $ $ 2,345,000 Bond PrinciEal $ 145,000 145,000 145,000 150,000 150,000 1,610,000 $ 2,345,000 64 Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BOND TEMPORARY NOTES SERIES 2021-A December 31, 2021 Schedule of Bond Interest and Principal Payments Due in Bond Year Interest 2022 $ 12,895 2023 15,953 $ 28,847 November 10, 2021 $ 3,545,000 0.450% September 1, 2023 $ $ 3,545,000 Bond Principal $ 3,545,000 $ 3,545,000 65 • -• .,. ~ • • ----• ---• ll ·SUP.PLEMENTAL Il\rrORMATION FY 2021 ·, . . .. ~ ·-• Ii Date of issue: Amount of issue: Interest rate: Maturity date: Principal paid: Outstanding balance: SALINA AIRPORT AUTHORITY TAXABLE LEASE PURCHASE AGREEMENT 2020 December 31, 2021 Schedule of Lease Interest and Principal Payments Due in Lease Year Interest 2022 $ 13,528 2023 12,1n 2024 10,768 2025 9,318 2026 7,821 2027-2030 15,287 $ 68,893 August 12, 2020 $ 460,000 3.300% September 1, 2030 $ 39,942 $ 420,058 Lease Princi:eaI $ 40,800 42,157 43,560 45,009 46,507 202,025 $ 420,058 66 SUPPLEMENTAL INFORMATION FY 2021 SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31 , 2021 Insurance Policy Old Republic Insurance Company Pol. #0CA V04369405 Old Republic Insurance Company Pol. #PR00262107 Zurich Pol. #ERP4509814-02 Cincinnati Insurance Companies Pol. #ENP0563029 Cincinnati Insurance Companies Pol. #ENP0563029 Hartford Fire Insurance Company Pol. #37FA0293328-21 ACE American Insurance Company Pol. #G71465974 003 Great American Alliance Ins. Co. Pol. # KST7882933-27 HDI Specialty Insurance Company Pol.# SCYLD2514230000 Type of Coverage Worker's compensation and employer's liability Bodily Injury & liability Hangar keepers Deluxe property-building, contents, stock, Vehicles & equipment Bodily injury/property damage Medical payments Uninsured motorists Underinsured motorist Inland marine -equipment Crime policy Employee theft, forgery, alteration, computer Public officials and employment practices liability Each claim Aggregate limit Underground storage tank liability Each incident Aggregate limit Defense expense limit each incident Commercial Cyber Insurance Each incident Aggregate limit Amount of Coverage $ 1,000,000 $ 2,000,000 $ 1,000,000 $ 70,000,000 $ 1,000,000 $ 5,000 $ 1,000,000 $ 1,000,000 $ 1,585,851 $ 250,000 $ 2,000,000 $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 100,000 $ 2,000,000 $ 2,000,000 67 STATISTICAL Table of Contents STATISTICAL FY 2021 This part of the Salina Airport Authority's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall financial health. Financial Trends 69-73 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Debt Capacity 74-75 This schedule presents information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Revenue Capacity 76-77 These schedules contain information to help the reader assess the government's revenue source. Operating Information 78 This schedule contains service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Demographic and Economic Information 79-82 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government 's financial activities take place. 68 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET POSITION HISTORY FOR YEARSENDEDDECEMBER31, 2012 2013 2014 TOT AL REVENUES OPERA TING REVENUES Airfield $ 548,193 $ 411,522 $ 572,681 Fuel flowage fees 189,370 128,277 150,110 Building and land rent 1,365,853 1,474,057 1,136,063 Other revenue 56,752 53,902 50,499 TOTAL OPERA TING REVENUES 2,160,168 2,067,758 1,909,353 TOTAL EXPENSES OPERA TING EXPENSES Administrative 1,245,267 1,232,833 1,198,445 Maintenance 869,091 872,877 860,760 TOTAL OPERATING EXPENSES 2,114,358 2,105,710 2,059,205 OPERATING INCOME (LOSS) BEFORE DEPRECIATION 45,810 (37,952) (149,852) DEPRECIATION 2,514,587 2,588,107 2,588,599 OPERA TING LOSS (2,468,777) (2,626,059) (2,738,451) NON-OPERATING INCOME AND (EXPENSES) Mill levy 1,767,338 1,788,284 1,993,889 Interest on investments and financing lease 1,500 676 437 Interest expense (1,175,063) (1,120,831) (1,087,440) Bond Issue Costs Gain (loss) on sale of assets 51,853 50,904 TOTAL NON-OPERATING INCOME AND (EXPENSES) 593,775 719,982 957,790 LOSS BEFORE CAPITAL CONTRIBUTIONS (1,875,002) (1,906,077) (1,780,661) CAPITAL CONTRIBUTIONS 1,779,827 623,029 799,762 INCREASE (DECREASE) IN NET POSITION (95,175) (1,283,048) (980,899) NET POSITION AT YEAR END COMPOSED OF: Net investment in capital assets 25,339,916 24,818,560 24,510,104 Restricted Unrestricted 1,171,551 409,859 (262,584) $26,511,467 $ 25,228,419 $ 24,247,520 69 STATISTICAL FY 2021 , SALINA AIRPORT AUTHORITY TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET POSITION HISTORY FOR YEARS ENDED DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 $ 529,973 $ 530,889 $ 510,263 $ 586,108 $ 742,672 $ 750,570 $ 903,190 189,532 145,280 202,728 194,647 185,249 190,668 180,417 1,068,335 1,174,553 1,310,833 1,383,282 1,349,788 1,543,756 1,689,044 88,663 106,144 189,476 335,855 155,249 167,352 121,073 1,876,503 1,956,866 2,213,300 2,499,892 2,432,958 2,652,346 2,893,724 1,253,045 1,183,681 1,264,135 1,567,514 1,524,897 1,630,020 1,734,025 698.173 714,188 896.488 863,656 830,538 841,705 1,076,971 1,951,218 1,897,869 2,160,623 2,431,170 2,355,435 2,471,725 2,810,996 (74,715) 58,997 52,677 68,722 77,523 180,621 82,728 2,584,667 2,569,109 2,593,092 2,761,019 2,898,650 3,016,267 3,065,984 (2,659,382) (2,510,112) (2,540,415) (2,692,297) (2,821,127) (2,835,646) (2,983,256) 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 286 3,387 974 3,745 17,954 2,161 1,311 (1,109,013) (964,113) (573,533) (827,143) (840,390) (771,821) (738,945) (8,329) (147,664) (73,185) (44,885) (84,270) 48,289 6,903 22,081 5,375 21,263 (2,395,710) 154,774 967,636 1,054,861 1,345,160 1,520,944 1,497,105 (570,774) 1,903,527 (1,691,746) (1,455,251) (1,195,255) (1,171,353) (1,324,022) (3,406,420) (1,079,729) 217,112 943,219 1,280,204 1,474,356 1,727,674 2,100,818 2,717,177 (1,474,634) (512,032) 84,949 303,003 403,652 (1,305,602) 1,637,448 22,516,034 21,862,166 19,753,708 22,491,023 21,698,665 18,717,283 16,889,510 (280,767) (138,931) 2,054,476 (391,890) 804,120 2,479,900 5,945,121 $ 22,235,267 $ 21,723,235 $ 21,808,184 $ 22,099,133 $ 22,502,785 $ 21,197,183 $ 22,834,631 70 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY CHANGES IN CASH AND CASH EQUIVALENTS HISTORY FOR YEARS ENDED DECEMBER 31, 2012 2013 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from providing services $ 2,091,754 $ 2,162,181 Cash paid to employees for services (784,733) (766,300) Cash paid to suppliers for goods and services (1,345,746) (1,469,899) NET CASH PROVIDED (USED) IN OPERA TING ACTIVITIES (38,725) (74,018) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of property, plant and equipment (4,789,419) (1,238,629) Acquisition ofland subsequently donated (net) Proceeds from capital grants 1,755,598 623,029 Change in grants receivable Proceeds from property tax 1,767,338 1,788,284 Proceeds from sale of capital assets 218,361 Principal payments on debt (1,154,007) (959,134) Proceeds of new borrowing Deferred advanced refunding Bond defeasance and issue costs paid Interest paid on long-term debt (1,190,236) (1,131,523) J\i'ET CASH PROVIDED (USED) IN CAPITAL AND RELATED FINANCING ACTIVITIES (3,610,726) (699,612) CASH FLOWS FROM INVESTING ACTIVITES Interest received on deposits 1,500 676 NET INCREASE (DECREASE) IN CASH (3,647,951) (772,954) CASH, beginning of year 5,308,083 1,660,132 CASH, end of year $ 1,660,132 $ 887,178 2014 $ 1,849,824 (731,571) (1,170,505~ (52,252) (1,348,143) 799,762 1,993,889 81,652 (972,729) (1,099,052) (544,621) 437 (596,436) 887,178 $ 290,742 71 . ST A TISTICAL FY 2021 SALINA AIRPORT AUTHORITY CHANGES IN CASH AND CASH EQUIVALENTS HISTORY FOR YEARS ENDED DECEMBER 31, 2015 2016 2017 2018 2019 2020 2021 $ 1,922,061 $ 1,868,694 $ 2,162,372 $ 2,621,123 $ 1,730,112 $ 3,109,625 $ 1,739,205 (698,148) (724,184) (821,501) (845,650) (841,568) (854,885) (921,910) (1,292,263) (1,124,098) (1,249,957) (578,006) (1,616,484) (2,133,137) (1,133,826) (68,350) 20,412 90,914 1,197,467 (727,940) 121,603 (316,531) (301,637) (1,489,872) (2,073,730) (2,851,457) (3,182,404) (1,501,297) (3,370,794) (2,061,088) 92,414 943,219 1,280,204 1,474,356 1,727,674 2,100,818 2,717,177 (573,638) 573,638 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 48,289 20,489 32,990 5,375 55,120 193,240 (1,007,271) (1,095,956) (1,253,283) (2,646,876) (5,337,744) (1,428,211) (3,772,338) 722,161 657,000 2,831,470 6,380,000 2,560,000 5,866,454 (1,391,470) (43,159) (8,329) (147,664) (73,185) (44,885) (84,270) (1,042,465) (972,452) (613,911) (879,978) (831,307) (787,723) (757,019) 496,406 (502,526) 1,281,546 (2,559,613) 1,109,617 1,477,095 3,363,107 286 3,387 974 3,745 17,954 2,161 1,311 428,342 (478,727) 1,373,434 (1,358,401) 399,631 1,600,859 3,047,887 290,742 719,084 240,357 1,613,791 255,390 655,021 2,255,880 $ 719,084 $ 240,357 $ 1,613,791 $ 255,390 $ 655,021 $ 2,255,880 $ 5,303,767 72 SALINA AIRPORT AUTHORITY CAPITAL EXPENDITURE HISTORY Ten Years Ended December 31, 2021 Construction Total Fiscal Building in Capital Year Equipment Additions Land Airfield Progress Expenditures 2012 217,548 2,911,756 306,847 2,225,668 244,851 5,906,670 2013 37,532 172,219 94,514 540,392 429,468 1,274,125 2014 76,670 361,842 44,405 490,653 371,219 1,344,789 2015 144,676 57,048 20,379 30,131 71,623 323,857 2016 105,467 321,854 14,062 23,799 1,024,688 1,489,870 2017 226,478 140,422 30,617 385,751 1,290,462 2,073,730 2018 983,492 114,367 77,012 1,793,701 8,921 2,977,493 2019 388,382 2,461,044 201,006 8,675 123,297 3,182,404 2020 207,158 682,393 43,066 382,089 186,591 1,501,297 2021 931,013 485,934 46,198 128,021 1,779,630 3,370,796 Source: Salina Airport Authority Records 73 SALINA AIRPORT AUTHORITY GENERAL OBLIGATION DEBT SERVICE COVERAGE Ten Fiscal Years Ended December 31, 2021 GO Bond Total November Motor Capacity of General Revenue Special Financing GO Outstanding Percentage Total Fiscal Assessed Vehicle Valuation Valuation Obligation Bond Assessment Leases/ Other Temporary Debt Remaining GO of Personal Debt Per Year Valuation Valuation Total Total Debt Debt Debt Loans Payable Notes (All Types) Capacity Income Capita 2012 403,850,282 47,553,744 451,404,026 45,140,403 24,756,769 103,947 202,617 25,063,333 20,383,634 1.10% 449 2013 405,107,476 48,882,411 453,989,887 45,398,989 23,880,661 66,746 156,791 24,104,198 21,518,328 1.04% 431 2014 407,454,378 48,865,900 456,320,278 45,632,028 22,974,555 48,949 107,966 23,131 ,470 22,657,473 0.98% 415 2015 416,174,805 50,350,566 466,525,371 46,652,537 22,791,329 30,465 55,696 22,877,490 23,861,208 0.93% 410 2016 425,040,911 51 ,833,505 476,874,416 47,687,442 21 ,770,268 11,268 657,000 22,438,536 25,260,174 0.90% 407 2017 430,490,209 50,970,796 481,461,005 48,146,101 21,910,515 9,207 2,097,000 24,016,722 24,138,586 0.92% 439 2018 434,451,245 53,336,676 487,787,921 48,778,792 20,705,792 7,054 657,000 21 ,369,846 27,416,000 0.80% 393 2019 454,467,318 54,687,31 I 509,154,629 50,915,463 20,157,297 4,805 2,250,000 22,412,102 28,508,166 0.83% 413 2020 456,352,518 54,589,132 510,941,650 51,094,165 18,750,000 2,455 460,000 4,350,000 23,562,455 27,994,165 0.82% 437 2021 459,861,906 56,545,812 516,407,718 51,640,772 19,615,000 420,058 5,645,000 25,680,058 26,380,772 0.89% 476 Note: Details regarding the Authority's outstanding debt can be found in the notes to the financial statements. The special assessment and financing lease/other loans payable debt figures are shown for informational purposes only and not required by statute to be included in the remaining capacity calculation. See the Schedule of Demographic and Economic Statistics on page 81 for personal income and population data. N/A = Data not yet available 74 SALINA AIRPORT AUTHORITY LOCAL GOVERNMENT MILL LEVY RATES, DIRECT AND OVERLAPPING Ten Years Ended December 31, 2021 Other Unified Salina Salina State Special Fiscal Saline City of School Airport Public of Taxing Year County Salina Dist. #305 Authoritv Library Kansas Districts Total 2012 34.823 26.19 58.649 4.007 5.452 1.5 1.176 131.797 2013 37.895 26.927 58.116 4.504 5.761 1.5 1.176 135.879 2014 38.047 27.080 55.605 4.486 6.034 1.5 1.285 134.037 2015 38.275 27.311 56.12 4.396 5.895 1.5 1.502 134.999 2016 37.508 27.603 55.743 4.396 5.893 1.5 1.51 134.153 2017 37.321 26.129 56.501 4.992 5.989 1.5 1.475 133.907 2018 38.437 28.394 57.522 4.998 6.014 1.5 1.476 138.341 2019 41.097 29.720 55.508 5.372 5.913 1.5 1.198 140.308 2020 40.606 30.650 55.454 5.037 5.88 1.5 1.206 140.333 2021 39.782 30.452 54.903 4.838 6.028 1.5 1.196 138.699 Note: Funds generated from the Salina Airport Authority's 2020 mill levy become available during calendar year 2021 and are budgeted accordingly. Source: Saline County Clerk 75 I STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL CUSTOMERS Current and Ten Years Ago 2021 2011 Percentage of Percentage of Company Income Rank Total Income Income Rank Total Income Kansas Erosion Products, LLC. 354,515 1 11.24% A vflight Salina 319,982 2 10.14% 1 Vision Aviation 313,699 3 9.94% SFC Global Chain Supply 166,567 4 5.28% 107,179 7 4.65% Stryten Salina, LLC 127,240 5 4.03% Universal Forest Products (UFP) 114,516 6 3.63% Kansas State University-Salina 91,025 7 2.89% 44,496 10 1.93% NASA 85 ,364 8 2.71% Durham School Service 64,560 9 2.05% AGCO Corporation 59,182 10 1.88% Kansas Military Board (RSMS, Salina, KS) 589,028 25.53% Hawker Beechcraft Corp. 236,473 2 10.25% Learjet Inc. 187,108 3 8.11% CA V Aerospace, Inc. 168,756 4 7.32% JRM Enterprises, Inc, d/b/a America Jet (formerly Moore's Midway Aviation) 156,849 5 6.80% Flower Aviation 141,709 6 6.14% Two Rivers Vending 53,210 8 2.31% Canadian Royal Air Force 51,109 9 2.22% $ 1,696,650 53.79% $ 1,735,917 75.26% Source: Salina Airport Authority Records 76 Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Salina Airport Authority Records SALINA AIRPORT AUTHORITY MILL LEVY REVENUE Ten Years Ended December 31, 2021 ST A TISTICAL FY 2021 Mil Levy Revenue 1,767,338 1,788,284 1,993,889 2,028,074 2,017,013 2,043,302 2,338,967 2,371,463 2,639,481 2,570,657 77 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY AIR TRAFFIC, FUEL FLO WAGE AND ENPLANEMENT TRENDS Ten Years Ended December 31, 2021 Passenger Enplanements Fiscal Air Traffic Fuel Flowage Scheduled Year Operations Gallons Air Carrier 2012 97,338 2,594,049 2,546 2013 90,131 1,757,980 2,361 2014 91,101 1,971,061 2,138 2015 96,350 2,487,603 1,124 2016 77,111 1,860,912 3,257 2017 61,141 2,622,158 8,877 2018 69,293 2,414,825 14,642 2019 76,553 2,278,659 19,710 2020 60,448 2,295,009 6,331 1 2021 80,970 2,096,198 18,353 Note: One air traffic operation equals one aircraft takeoff and landing Sources: Salina Airport Authority Records Federal Aviation Administration Office of Airport Planning and Program 1 Non-scheduled air carrier data is estimated as data not available from FAA until July of the following calendar year Non-Scheduled Total Air Carrier Enplanements 980 3,526 468 2,829 418 2,556 8,955 10,079 710 3,967 4,973 13,850 5,657 20,299 1,479 21,189 4,230 10,561 1,227 19,580 78 STATISTICAL FY 2021 SALINA AIRPORT AUTHORITY PRINCIPAL EMPLOYERS Current Year and Ten Years Prior 2021 2011 Percentage of Percentage of Total City Total City Employer Employees Rank Employment Employees Rank Employment Salina Regional Health Center 1,800 1 6.0% 1,300 3 3.8% Unified School District No. 305 1,500 2 5.0% 1,659 2 4.8% Schwan's Global Supply Chain, Inc. 1,200 3 4.0% 1,800 1 5.2% Great Plains Manufacturing 1,175 4 4.0% 250 10 0.7% Stryten Manufacturing 800 5 2.7% 750 4 2.2% City of Salina 425 6 1.4% 465 6 1.3% Salina Vortex 385 7 1.3% Wal-Mart 250 8 0.08% 421 7 1.2% Blue Beacon International 230 9 0.08% Advance Auto Parts Distribution 190 10 0.06% Dillons Stores 343 8 1.0% Philips Lighting Company 490 5 1.4% Solomon Corporation 324 9 0.9% Total 7,955 24.6% 7,802 22.5% Source: Salina Area Chamber of Commerce 79 STATISTICAL FY 2021 1 SALINA REGIONAL AIRPORT AND SALINA AIRPORT INDUSTRIAL CENTER Airport/Industrial Center Information Airport Code Location: Elevation Tower: FBO: Acreage+/- Runways: Aircraft Rescue & Fire As of December 31, 2021 SLN 3 miles Southwest of City of Salina 1,288 ft. Midwest ATC 0700 -2300 -365 AVFlight Airport Airport Industrial Center 35/17 North/South ILS/GPSNORINDB 30/12 Southeast/northwest GPS 36/18 North/South 22/4 West/East Fighting Facility ARFF Station Commercial Air Service Terminal Apron Buildings Employees M.J. Kennedy Air Terminal Bldg. -sq. ft. Vehicle parking spaces Number of Rental Car Agencies in Terminal Commercial Service Ramp -sq. ft. FBO-sq. ft. KS National Guard -sq. ft. General Aviation / Other -sq. ft. Sq.Ft. Airport Authority Administration Operations Total Airport Authority Employees Source: Salina Airport Authority Records 2011 2,502 396 12,301 X 150 ft. 6,510x 100ft. 4,301 X 75 ft. 3,648 X 75 ft. 2,500 10,750 123 1 541,218 319,596 261,523 1,896,664 1,051,631 7 10 17 2021 2,502 291.65 12,301 X 150 ft. 6,510 X 100 ft. 4,301 X 75 ft. 3,648 X 75 ft. 10,000 10,750 217 1 541,218 319,596 261,523 1,896,664 1,163,471 6 9 15 80 SALINA AIRPORT AUTHORITY SALINE COUNTY DEMOGRAPHIC AND ECONOMIC STATISTICS ~ Pouulation 1 2012 55,988 2013 55,740 2014 55,755 2015 55,691 2016 55,142 2017 54,734 2018 54,401 2019 54,224 2020 53,926 2021 55,691 Data Sources: 1Kansas Division of Budget 2 Bureau of Economic Analysis 2 Kansas Statistical Abstract 3U .S. Census Bureau 4 Bureau of Labor Statistics 5Kansas Department of Education Per Capita Personal Income2 41,070 43,078 43,552 44,310 46,020 47,945 47,945 49,983 53,320 n/a 2021 population is an estimated figure notes: n/a= information not yet available Last Ten Fiscal Years Total Personal Median Unemployment K-12 Graduation Income 2 Age 3 Rate4 Rate5 2,287,072,000 38.3 5.9% 89.4% 2,310,899,000 37.4 5.2% 87.7% 2,366,034,000 36.5 4.3% 86.8% 2,448,164,000 37.7 4.2% 87.1% 2,498,485,000 37.6 3.7% 88.5% 2,597,328,000 37.6 3.2% 84.4% 2,674,141,000 37.9 3.1% 85.5% 2,712,384,000 38.4 3.0% 87.2% 2,875,330,000 38.4 6.7% 92.9% n/a 38.6 3.8% n/a K-12 Enrollment5 9,201 9,197 8,895 9,196 9,114 8,992 8,975 8,527 8,167 8,172 81 STATISTlCAL FY 2021 1 T,argest Taxpayers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2020 assessed valuations, and the percentage each ta xpayer comprised of the total assessed valuation of the City. %of Type of Assessed Total Company Business Valuation Valuation Evergy, Inc. Utility $19,659,775 3.85% SFC Global Supply Chain Inc Manufacturing 5,927,488 1.16 Kansas Gas Service Utility 5,415,618 1.06 RAF Salina LLC Retail Shopping Center 4,680,507 0.92 S&B Motels Inc Motel 3,010,427 0.59 Central Mall Realty Holding LLC Retail Shopping Center 2.851,701 0.56 Union Pacific Railroad Co. Railroad 2,565,902 0.50 Home Improvement Menard Inc. Store 2,427,090 0.48 Individual Residential 2,367,201 0.46 Sam's Real Estate Business Trust/Walmart Discount Store 2125 !l:lZ D...£ Total $48,249,055 10.00% Prouerty Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the Authority in the years shown. Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount % Amount % 2020* 5.037 $2,287,941 2,187,816 95.62% $2,189.762 95.71% 2019 5.372 2,415,817 2,357,078 97.57 2,392,216 99.02 2018 4.998 2,152,299 2,107,328 97.91 2,144,176 99.62 2017 4.992 2,132,134 2,082,567 97.68 2,128,023 99.81 2016 4.396 1,841,679 1,802,833 97.89 1,840,134 99.92 2015 4.396 1,804,238 1,768,092 98.00 1,803,826 99.98 2014 4.486 1,807,084 1,771,278 98.02 1,806,808 99.98 2013 4.504 1,817,896 1,813,028 99.73 1,814,155 99.79 2012 4.007 1,618,228 1,565,139 96.72 1,600,808 99.39 2011 4.007 1,612,235 1,560,405 96.79 1,598,276 99.13 * As of May 21, 2021 Source: Saline County 82 SALINA AIRPORT AUTHORITY Single Audit Information SALINA AIRPORT AUTHORITY Single Audit Information A• BROWN r Strategic Allies -,· r· CPAs adamsbrowncpa INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Salina Airport Authority Salina, Kansas We have audited, in accordance with the auditing standards generally accepted in the United States of America, the Kansas Municipal Audit and Accounting Guide and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Salina Airport Authority, as of and for the year ended December 31, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 30, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Salina Airport Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Salina Airport Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of Salina Airport Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Salina Airport Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. above beyond 8'3 Salina Airport Authority Page2 Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. AcJ~m~1 LlC ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 84 Af. BROWN,. Strategic Allies~, ~; CPAs adamsbrowncpa INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors Salina Airport Authority Salina, Kansas Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Salina Airport Authority's compliance with the types of compliance requirements identified as subject to audit in the 0MB Compliance Supplement that could have a direct and material effect on each of Salina Airport Authority's major federal programs for the year ended December 31 , 2021. Salina Airport Authority's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, Salina Airport Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2021 . Basis for Opinion on Each Major Federal Program We conducted our audit of compliance 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 audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Salina Airport Authority and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Salina Airport Authority's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Salina Airport Authority's federal programs. above beyond 8'5 Salina Airport Authority Page 2 Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Salina Airport Authority's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance and will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Salina Airport Authority's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Salina Airport Authority's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of Salina Airport Authority's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Salina Airport Authority's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies 86 Salina Airport Authority Page3 in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. AJlk/h1(jm..Jm, LLC ADAMSBROWN, LLC Certified Public Accountants Great Bend, Kansas June 30, 2022 87 SALINA AIRPORT AUTHORITY Schedule ofExpenditures of Federal Awards For the Year Ended December 31, 2021 Federal Grantor/ Pass-through Grantor/ Program Title Federal Assistance Listing Number Agency or Pass-through Number Passed-through to Federal U.S. Department of Transportation Direct Funding Airport Improvement Program COVID-19 Funding Airport Improvement Program Airport Improvement Program Airport Improvement Program Total U.S. Department of Transportation U.S. Department of Homeland Security Direct Funding 20.106 20.106 20.106 20.106 Disaster Grants-Public Assistance (Presidentially Declared Disasters) 97.036 Total Expenditures of Federal Awards 3-20-0072-042-2021 $ 3-20-0072-041-2020 3-20-0072-043-202 l 3-20-0072-04 5-2021 FEMA-4449-DR-KS $ Subrecipients Expenditures 449,216 183,670 1,005,467 1,003,715 2,642,068 74,258 2,716,326 See accompanying notes to schedule of expenditures of federal awards. 88 SALINA AIRPORT AUIBORITY Notes to Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2021 NOTE 1-BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of Salina Airport Authority, and is presented in accordance with generally accepted accounting principles. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). NOTE 2 -INDIRECT COST RATE The Authority has elected not to use the 10% de minimis cost rate allowed under Section 200.414(£) of the Uniform Guidance. NOTE3-OTHEREXPENDITURES The Authority did not receive any federal awards in the form of noncash assistance, insurance, loans, or loan guarantees, and incurred no expenditures in relation thereof for the year ended December 31, 2021. 89 SALINA AIRPORT AUIBORITY Schedule of Findings and Questioned Costs For the Year Ended December 31, 2021 SECTION I-SUMMARY OF AUDITORS' RESULTS FINANCIAL STATEMENTS Type of auditors' report issued: Internal control over financial reporting: • Material weakness identified? • Significant deficiency identified? • Noncompliance material to financial statements noted? FEDERAL A WARDS Internal control over major programs: • Material weakness identified? • Significant deficiency identified? Type of auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)? Identification of major programs: Unmodified Yes X Yes X Yes X X X Unmodified Yes X Assistance Listing Number Name of Federal Program or Cluster 20.106 Airport Improvement Program Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? $750,000 Yes X No None reported No No None reported No No 90 SALINA AIRPORT AUTHORITY Schedule of Findings and Questioned Costs For the Year Ended December 31, 2021 SECTION II-FINANCIAL STATEMENT FINDINGS None noted in current year. SECTION Ill -FEDERAL AW ARD FINDINGS AND QUESTIONED COSTS No material findings or questioned costs are required to be disclosed under the Uniform Guidance. 91 Chairman Kent Buer ~LINAAirport '-,4~ ~ Vl~e(halr Tod Roberg :s.e-cretary Ala~ Eichelberger Executive. DirecfurTir-_Othy F, Rogers, A.A.f. Treasurer Stephanie Carlin Dir~ of Administration & Fillance Mich~le R. Swanson, C.M. Dir. of F.adlities & Constructi.on Ma"(O~rd Cunnmgharr. Past Chairman Krlstir. Gunn Manager Of Operatfon.s Oilvfd: .S_c"."eU 8us1nes~ &Comniunications Manager Kasey L Windhorst Board Attorney Greg A. Bengtson Summary Schedule of Prior Audit Findings For the Year Ended December 31, 2021 SECTION II -FINANCIAL STATEMENT FINDINGS No matters noted for the year ended December 31, 2020. SECTION Ill -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No material findings or questioned costs are required to be disclosed under the Uniform Guidance. 92 SALINAAtrport SM, = LH, Salina Regional SENAirport ee SALINAAirport Judustrial q 1 Center 3237 Arnold | Salina, KS 67401 | 785-827-3914 wwwsalinaairport.com | www.flysalina.com 3237 Arnold I Salina, KS 67401 I 785-827-3914 www.salinaairport.com I www.flysalina.com 0 APPENDIX C-2 2022 Unaudited Financial Statements The following financial statements for fiscal year 2022 are preliminary and unaudited. However, Authority staff believe that the actual final audited financial statements for 2022, which are expected to be released approximately three weeks after the closing of the Bonds, will not be materially different from the reports contained herein. ae SSS Sy | DECEMBER 2022 maxim BIVANINEAN DS Geom elerelulelii=re) 2022 FINANCIAL STATEMENTS Salina Airport Authority Statement of Net Position Prev Year Comparison 04/25/2023 As of December 31 , 2022 Dec 31, 22 Nov 30, 22 $ Change Dec 31, 21 $ Change % Change ASSETS Current Assets Checking/Savings Cash in Bank-Bond Funds 995,068 1,019,481 -24,413 2,651,156 -1,656,088 -62% Cash in bank-Operating Funds 2,121,973 1,966,244 155,729 1,833,363 288,610 16% Cash In Bank· Mill Levy 468,461 734,865 -266,404 818,646 -350,185 -43% Total Checking/Savings 3,585,502 3,720,590 -135,088 5,303,165 -1,717,663 -32% Accounts Receivable 15 · Accounts Receivable 90,230 192,178 -101,948 92,559 -2,329 -3% Total Accounts Receivable 90,230 192,178 -101,948 92,559 -2,329 -3% Other Current Assets Other current assets 321,115 28,622 292,493 1,469,995 -1, 148,880 -78% 1499 · Undeposlted Funds 2,905 10,222 -7,317 602 2,303 383% Total Other Current Assets 324,020 38,844 285,176 1,470,597 -1,146,577 -78% Total Current Assets 3,999,752 3,951,612 48,140 6,866,321 -2,866,569 -42% Fixed Assets Fixed assets at cost 101,856,915 101,402,440 454,475 92,529,748 9,327,167 10% 188 · Less accumulated depreciation -52,907,274 -52,665,187 -242,087 -50,002,230 -2,905,044 -6% Total Fixed Assets 48,949,641 48,737,253 212,388 42,527,518 6,422,123 15% Other Assets Deferred Outlflow of Resources 1,147,779 1,085,654 62,125 1,085,654 62,125 6% Total Other Assets 1,147,779 1,085,654 62,125 1,085,654 62,125 6% TOTAL ASSETS 54,097,172 53,774,519 322,653 50,479,493 3,617,679 7% LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20 • Accounts payable 607,962 895,159 -287,197 759,263 -151,301 -20% Total Accounts Payable 607,962 895,159 -287,197 759,263 -151,301 -20% Credit Cards Total Credit Cards 2,851 4,110 -1,259 -515 3,366 654% Other Current Uabllltles 21 · Accrued debt Interest payable 194,893 133,097 61,796 193,171 1,722 1% 22 · Deferred Mill Levy revenue 0 196,542 -196,542 o 0 0% 23 · Debt, current portion 8,397,157 1,710,800 6,686,357 1,710,800 6,686,357 391% 28 · Other current liabilities 290,507 297,781 -7,274 209,962 80,545 38% Total Other Current Llabllltles 8,882,557 2,338,220 6,544,337 2,113,933 6,768,624 320% Total Current Liabilities 9,493,370 3,237,489 6,255,881 2,872,681 6,620,689 230% Long Term Liabilities Deferred Inflows of Resources 44,469 229,504 -185,035 229,504 -185,035 -81% Net OPEB Liability (KPERS) 9,003 13,911 -4,908 13,911 -4,908 -35% Net Pension Liabiltty 942,015 509,789 432,226 509,789 432,226 85% Security Deposits Returnable 128,146 128,146 0 91 ,771 36,375 40% 26 · Debt -Long Term 24,927,207 24,927,207 0 25,638,006 -710,799 -3% 285 · Less current portion -8,397,157 -1,710,800 -6,686,357 -1 ,710,800 -6,686,357 -391% Total Long Term Liabilities 17,653,683 24,097,757 -6,444,074 24,772,181 -7,118,498 -29% Total Llabllltles 27,147,053 27,335,246 -188,193 27,644,862 -497,809 -2% Equity Invested in Capital Assets net 22,610,045 22,720,863 -110,818 16,844,171 5,765,874 34% Net assets, Designated 90,000 90,000 0 90,000 0 0% 39 • Net assets, Unrestricted 134,586 23,768 110,818 4,263,012 -4,128,426 -97% Net Income 4,115,488 3,604,642 510,846 1,637,448 2,478,040 151% Total Equity 26,950,119 26,439,273 510,846 22,834,631 4,115,488 18% TOTAL LIABILITIES & EQUITY 54,097,172 53,774,519 322,653 50,479,493 3,617,679 7% Salina Airport Authority 11:30 AM Profit & Loss Budget Performance 04/26/2023 January through December 2022 Accrual Basis Jan -Dec 22 YTD Budget $ Over Budget %of Budget Annual Budget Ordinary Income/Expense Income Airfield revenue Fuel Flowage Fees 213,067 180,000 33,067 118% 180,000 Hangar rent 982,291 815,000 167,291 121% 815,000 Landing fees 39,249 30,450 8,799 129% 30,450 Ramp rent 66,748 65,000 1,748 103% 65,000 Total Airfield revenue 1,301,355 1,090,450 210,905 119% 1,090,450 Building and land rent Agri land rent 67,965 67,000 965 101% 67,000 Building rents -Long Term Short-term leasing 468,763 532,450 -63,687 88% 532,450 Building rents -Long Term -Other 954,118 817,550 136,568 117% 817,550 Total Building rents -Long Term 1,422,881 1,350,000 72,881 105% 1,350,000 Land rent Basic Land Rent 149,889 162,573 -12,684 92% 162,573 Property tax -tenant share 103,801 107,427 -3,626 97% 107,427 Total Land rent 253,690 270,000 -16,310 94% 270,000 Tank rent 14,640 14,040 600 104% 14,040 Total Building and land rent 1,759,176 1,701,040 58,136 103% 1,701,040 Other revenue Airport Marketing 20,000 25,000 -5,000 BO% 25,000 ARFF Training 5,610 0 5,610 100% 0 Commissions 26,619 19,000 7,619 140% 19,000 Other income 78,290 74,000 4,290 106% 74,000 Total Other revenue 130,519 118,000 12,519 111% 118,000 Total Income 3,191 ,050 2,909,490 281 ,560 110% 2,909,490 Gross Profit 3,191 ,050 2,909,490 281,560 110% 2,909,490 Expense Administrative expenses A/E, consultants, brokers 89,315 34,000 55,315 263% 34,000 Airport promotion 254,190 245,000 9,190 104% 245,000 Bad Debt Expense 0 5,000 -5,000 0% 5,000 Computer/Network Admin. 40,734 28,500 12,234 143% 28,500 Dues and subscriptions 34,724 27,500 7,224 126% 27,500 Employee retirement 145,272 80,088 65,184 181% 80,088 FICA and medicare tax expense 72,480 67,157 5,323 108% 67,157 Industrial development 57,500 60,000 -2,500 96% 60,000 Insurance , property 217,830 230,000 -12,170 95% 230,000 Insurance, medical 198,527 220,000 -21,473 90% 220,000 Kansas unemployment tax 978 1,000 -22 98% 1,000 Legal and accounting 58,386 45,900 12,486 127% 45,900 Office salaries 615,896 550,000 65,896 112% 550,000 Office Supplies 11,015 8,155 2,860 135% 8,155 Other administrative expense 12,645 18,000 -5,355 70% 18,000 Postage 1,503 2,040 -537 74% 2,040 Property tax expense 147,174 144,565 2,609 102% 144,565 Special Events 1,553 1,500 53 104% 1,500 Telephone 21,287 25,000 -3,713 85% 25,000 Training 7,970 10,000 -2,030 80% 10,000 Travel and meetings 13,709 10,000 3,709 137% 10,000 Total Administrative expenses 2,002,688 1,813,405 189,283 110% 1,813,405 2 Jan -Dec 22 YTD Budget $ Over Budget %of Budget Annua I Budget Maintenance expenses Airfield maintenance 56,476 50,000 6,476 113% 50,000 Airport Security 377 8,000 -7,623 5% 8,000 Building maintenance 230,196 150,000 80,196 153% 150,000 Equipment fuel and repairs 84,585 90,000 -5.415 94% 90,000 Fire Services 21 ,018 31 ,750 -10,732 66% 31,750 Grounds maintenance 17,687 15,000 2,687 118% 15,000 Maintenance salaries 383,515 382,124 1,391 100% 382,124 Other maintenance expenses 26,462 20,000 6,462 132% 20,000 Snow removal expense 22,135 20,000 2,135 111 % 20,000 Utilities 293,787 300,000 -6,213 98% 300,000 Total Maintenance expenses 1,136,238 1,066,874 69,364 107% 1,066,874 Total Expense 3,138,926 2,880,279 258,647 109% 2,880,279 Net Ordinary Income 52,124 29,211 22,913 178% 29,211 Other Income/Expense Other Income Capital contributed 5,325,028 6,183,632 ~58,604 86% 6,183,632 Gain on sale of assets 0 20,000 -20,000 0% 20,000 Interest income Interest income on deposits 8,383 1,500 6,883 559% 1,500 Total Interest income 8,383 1,500 6,883 559% 1,500 Mill levy income 2,431 ,667 2,456,055 -24,388 99% 2,456,055 Total Other Income 7,765,078 8,661 ,187 -896,109 90% 8,661,187 Other Expense 2021-05-26 Storm Damage Repairs 7,107 12 7,095 59,225% 12 2021-12-15 Storm Damage Repairs 71,787 12 71,775 598,225% 12 Debt interest expense net Bond issue cost 11,640 45,000 -33,360 26% 45,000 Interest Expense on Debt 706,135 564,530 141,605 125% 564,530 Total Debt interest expense net 717,775 609,530 108,245 118% 609,530 Depreciation expense 2,905,044 2,905,044 0 100% 2,905,044 Total Other Expense 3,701,71 3 3,514,598 187,115 105% 3,514,598 Net Other Income 4,063,365 5,146,589 -1,083,224 79% 5,146,589 Net Income 4,115,489 5,175,800 -1,060,311 80% 5,175,800 3 Salina Airport Authority 11:30AM Profit & Loss Prev Vear Comparison 04/26/2023 January through December 2022 Accrual Basis Jan -Dec 22 Jan -Dec 21 S Change %Change Ordinary Income/Expense Income Airfield revenue Fuel Flowage Fees 213,067 180,417 32,650 18% Hangar rent 982,291 808,802 173,489 21% Landing fees 39,249 30,047 9,202 31% Ramp rent 66,748 64,342 2,406 4% Total Airfield revenue 1,301,355 1,083,608 217,747 20% Building and land rent Agri land rent 67,965 67,463 502 1% Building rents -Long Term Short-term leasing 468,763 400,972 67,791 17% Building rents -Long Term -Other 954,118 941,527 12,591 1% Total Building rents• Long Term 1,422,881 1,342,499 80,382 6% Land rent Basic Land Rent 149,889 163,574 -13,685 -8% Property tax -tenant share 103,801 101,346 2,455 2% Land rent -Other 0 0% Total Land rent 253,690 264,920 -11,230 -4% Tank rent 14,640 14,163 477 3% Total Building and land rent 1,759,176 1,689,045 70,131 4% Other revenue Airport Marketing 20,000 20,000 0% ARFF Training 5,610 2,460 3,150 128% Commissions 26,619 21,381 5,238 24% Other income 78,290 77,231 1,059 1% Total Other revenue 130,519 121,072 9,447 8% Uncategorized Income 0 0 0 0% Total Income 3,191,050 2,893,725 297,325 10% Gross Profit 3,191,050 2,893,725 297,325 10% Expense Administrative expenses A/E, consultants, brokers 89,315 38,249 51,066 134% Airport promotion Air Serv. Mktg • SAA 246,254 225,727 20,527 9% Airport promotion -Other 7,936 5,216 2,720 52% Total Airport promotion 254,190 230,943 23,247 10% Bad Debt Expense 0 107 -107 -100% Computer/Network Admin. 40,734 30,062 10,672 36% Dues and subscriptions 34,724 30,653 4,071 13% Employee retirement 145,272 61,544 83,728 136% FICA and medlcare tax expense 72,480 68,468 4,012 6% Industrial development 57,500 31,000 26,500 85% Insurance , property 217,830 204,106 13,724 7% Insurance, medical 198,527 194,650 3,877 2% Kansas unemployment tax 978 9,342 -8,364 -90% Legal and accounting 58,386 55,169 3,217 6% Office salaries 615,896 574,735 41,161 7% Office Supplies 11,015 8,222 2,793 34% Other administrative expense Merchant Processing Fees 6,976 10,977 -4,001 -36% Other administrative expense -Other 5,669 6,964 -1,295 -19% Total Other administrative expense 12,645 17,941 -5,296 -30% Payroll expenses 0 0 0 0% Postage 1,503 1,116 387 35% Property tax expense 147,174 136,383 10,791 8% Special Events 1,553 2,498 -945 -38% Telephone 21,287 25,386 -4,099 -16% Training 7,970 2,520 5,450 216% Travel and meetings 13,709 10,590 3,119 29% Total Administrative expenses 2,002,688 1,733,684 269,004 16% 4 Jan. Dec 22 Jan• Dec 21 $Change %Change Maintenance expenses Airfield maintenance 56,476 38,861 17,615 45% Airport Security 377 6,582 -6,205 -94% Building maintenance 230,196 150,087 80,109 53% Equipment ruel and repairs 84,585 101,396 -16,811 -17% Fire Services 21,018 22,798 -1,780 -6% Grounds maintenance 17,687 14,255 3,432 24% Maintenance salaries COVID-19 Compensation 343 -343 -100% Maintenance salaries -Other 383,515 345,746 37,769 11% Total Maintenance salaries 383,515 346,089 37,426 11% Other maintenance expenses 26,462 18,554 7,908 43% Snow removal expense 22,135 9,200 12,935 141% Utilities 293,787 369,491 -75,704 -20% Total Maintenance expenses 1,136,238 1,077,313 58,925 5% Uncategorized Expenses 0 0 0 0% Total Expense 3,138,926 2,810,997 327,929 12% Net Ordinary Income 52,124 82,728 -30,604 -37% Other Income/Expense Other Income Capital contributed ARPA Grant No. 45 -Equipment 0 20,368 -20,368 -100% ARPA Grant No. 45 • Operating 75,272 983,347 -908,075 -92% CARES Grant No. 41 -Op<raung 0 183,670 -183,670 -100% CRRSAA Grant No. 43 . Equipment 0 280,764 -280,764 -100'/4 CRRSAA Grant No. 43 -Operating 0 724,703 -724,703 -100% Capital contributed -Other 5,249,757 524,325 4,725,432 901% Total Capital contributed 5,325,029 2,717,177 2,607,852 96% Gain on sale of assets 154,774 -154,774 -100% Interest income Interest income on deposits 8,383 1,311 7,072 539% Total Interest income 8,383 1,311 7,072 539% Mill levy income 2,431,667 2,570,657 -138,990 -5% Total Other Income 7,765,079 5,443,919 2,321,160 43% Other Expense 2021-05-26 Storm Damage Repairs 7,107 0 7,107 100% 2021-12-15 Storm Damage Repairs 71,787 0 71,787 100% Debt interest expense net Bond issue cost 11,640 84,270 -72,630 -86% Interest Expense on Debt 706,135 738,945 -32,810 -4% Total Debt interest expense net 717,775 823,215 -105,440 -13% Depreciation expense 2,905,044 3,065,984 -160,940 -5% Total Other Expense 3,701,713 3,889,199 -187,486 -5% Net Other Income 4,063,366 1,554,720 2,508,646 161% Net Income 4,115,490 1,637,448 2,478,042 151% 5 CONTINUING DISCLOSURE UNDERTAKING DATED AS OF JUNE 7, 2023 BY SALINA AIRPORT AUTHORITY (SALINA, KANSAS) SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A GENERAL OBLIGATION BONDS SERIES 2023-B (SUBJECT TO AMT) DATED JUNE 7, 2023 GENERAL OBLIGATION BONDS SERIES 2023-C CONTINUING DISCLOSURE UNDERTAKING This CONTINUING DISCLOSURE UNDERTAKING dated as of June 7, 2023 (the "Continuing Disclosure Undertaking"), is executed and delivered by SALINA AIRPORT AUTHORITY (SALINA, KANSAS) (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance by the Issuer of its Taxable General Obligation Bonds, Series 2023-A, General Obligation Bonds, Series 2023-B (Subject to AMT); and General Obligation Bonds, Series 2023-C (collectively, the "Bonds"), pursuant to resolutions adopted by the governing body of the Issuer (collectively, the "Bond Resolution"). 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Bond Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Annual Financial Report, if any, so long as the Comprehensive Annual Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Bonds and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal secunt1es disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. ''Participating Underwriter" means any of the original underwriter(s) of the Bonds required to comply with the Rule in connection with the offering of the Bonds. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than the June 30 immediately following the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2022, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, in substantially the format contained in the Official Statement relating to the Bonds. A more detailed explanation of the accounting basis and method of preparation of the financial statements is contained in the Official Statement relating to the Bonds. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Bonds, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Bonds, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become the last day of the sixth month after the end of the Issuer's new fiscal year. 2 (b) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Bonds ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) def easances; ( 10) release, substitution or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. If the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Bonds, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3 . 3 Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Bond Resolution or the Bonds, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. 4 Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Bond Resolution or the Bonds shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. SALINAAIRPORT AUIBORITY (SALINA, KANSAS) (SEAL) ~1 b YitfdlJocn t- ' Board Clerk (Signature Page to Disclosure Undertaking) EXHIBIT A FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in tables in the following sections contained in Appendix A of the final Official Statement relating to the Bonds: · Assessed Valuation ·Tax Levies · Property Tax Collections · Largest Taxpayers · Principal Customers · Current Indebtedness of the Authority* * This Operating Data is also available in the Issuer's financial information portion of its Annual Report. A-1 EXCERPT OF MINUTES OF A MEETING OF THE BOARD OF DIRECTORS OF Gilmore & Bell, P.C. 05/16/2023 THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) HELD ON MAY 17, 2023 The board of directors (the "Governing Body") met in regular session at the usual meeting place in the Authority, at 8:00 AM., the following members being present and participating, to-wit: TOD ROBERG, KRISTIN GUNN, STEPHANIE CARLIN, DON BOOS and JOHN O'BRIEN Absent: NONE The Chair declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The Director of Administration & Finance reported that pursuant to the Notice of Bond Sale heretofore duly given, bids for the purchase of Taxable General Obligation Bonds, Series 2023-A, dated June 7, 2023, of the Authority had been received. A tabulation of said bids is set forth as EXHIBIT A hereto. The Governing Body reviewed and considered the bids and it was found and determined that the bid of UMB BANK, N.A., KANSAS CITY, MISSOURI, was the best bid for the Bonds, a copy of which is attached hereto as EXHIBIT B. There was presented a Resolution entitled: A RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2023- A, OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS); PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. Director JOHN O'BRIEN moved that (a) the bid be accepted and that the Chair and Board Clerk be authorized and directed to execute the bid form selling the Bonds to the best bidder on the basis of the bid and the terms specified in the Notice of Bond Sale; and (b) that the Resolution be adopted. The motion was seconded by Director KRISTIN GUNN. The motion was carried by a vote of the Governing Body as follows: Yea: ALL. Nay: NONE. 600597.20047\BASICDOCS 2023-A The Chair declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 23-07 and was signed by the Chair and attested by the Board Clerk. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597 .20047\BASICDOCS 2023-A 2 On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE , I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the prn~edings of the Governing Body of the Salina Airport Authority (Salina, Kansas), held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) ken I ii li '0/trrl kT>tr9c oard Clerk 600597.20047\BASICDOCS 2023-A (Signature Page to Excerpt of Minutes) EXHIBIT A BID TABULATION SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION Dated: June 7, 2023 Series 2023-A Good Faith Deposit: $20,000 BIDDERS Bidder Name TIC :u-MB Ba-n~A. !4:3~~5?6: 1Central States Capital Markets, LLC 4.466554• 1Country Club Bank .4.4997061 -~rtW. Baird & Co., Inc. l4.526837 j ·Loop Capital Markets. LLC ·4.528333: . . -·~ ' --. ' Northland Securities, Inc._ __ '4.6674931 600597 .20047\BASICDOCS 2023-A A-1 Sale Date: May 16, 2023 11 :00 AM., Central Time Max Interest Rate: 7.463% EXHIBIT B (BID OF PURCHASER) 600597.20047\BASICDOCS 2023-4 B-] EXHIBITB (BID O.F PURCHASER) 600597 .20047\IlASICDOCS 2021-A B-1 [ Upcoming Calendar J Overview I Result [ Excel ~ UMB Bank N.A. -Kansas City , MO's Bid Salina Arpt Auth $1,000,000 Taxable General Obligation Bonds, Series 2023-A For the aggregate principal amount of $1,000,000.00, we will pay you $996,110.00, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate: Maturity Date Amount $ Coupon % Yield % Dollar Price Bond Insurance 09/01/2032 1,000M 4.3000 4.3000 100.000 Total Interest Cost: $397,033.33 Discount: $3,890.00 Net Interest Cost: $400,923.33 TIC: 4.349556 Total Insurance Premium: $0.00 Time Last Bid Received On:05/16/2023 10:51:37 COST This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: UMB Bank N.A., Kansas City , MO Contact: Kristin Koziol Title : VP Telephone:816-860-7223 Fax: 816-843-4325 Issuer Name: Salina Airport Authority Accepted By: Date: ompany Name: UMB Bank, n.a. Accepted By: Date: 5/16/23 © 1981-2002 i-Deal LLC, All rights reserved, Trnd~m§lr~J. RESOLUTION NO. 23-07 OF Gilmore & Bell, P.C. 04/27/2023 THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) 600597 .20047\BASICDOCS 2023-A ADOPTED MAY 17, 2023 TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A Section l O 1. Section 201. Section 202. Section 203. Section 204. Section 205. Section 206. Section 207. Section 208. Section 209. Section 210. Section 211. Section 212. Section 213. Section 301. Section 401. Section 402. TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 2 ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Authorization of the Bonds ........................................................................................... 9 Description of the Bonds ............................................................................................... 9 Designation of Paying Agent and Bond Registrar ......................................................... 9 Method and Place of Payment of the Bonds .................................................................. 9 Payments Due on Saturdays, Sundays and Holidays .................................................. 10 Registration, Transfer and Exchange of Bonds ........................................................... 10 Execution, Registration, Authentication and Delivery of Bonds ................................ 11 Mutilated, Lost, Stolen or Destroyed Bonds ............................................................... 12 Cancellation and Destruction of Bonds Upon Payment. ............................................. 12 Book-Entry Bonds; Securities Depository .................................................................. 12 Nonpresentment of Bonds ........................................................................................... 13 Preliminary and Final Official Statement .................................................................... 14 Sale of the Bonds ......................................................................................................... 14 ARTICLE III REDEMPTION OF BONDS No Redemption of Bonds ............................................................................................ 14 ARTICLE IV SECURITY FOR BONDS Security for the Bonds ................................................................................................. 15 Levy and Collection of Annual Tax; Transfer to Debt Service Account. ................... 15 ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS AND OTHER MONEYS Section 501. Section 502. Section 503. Section 504. Section 505. Section 506. Section 507. Creation of Funds and Accounts ................................................................................. 15 Deposit of Bond Proceeds and Other Moneys ............................................................. 15 Substitution of Improvements; Reallocation of Proceeds ........................................... 16 Application of Moneys in the Redemption Fund ........................................................ 16 Application of Moneys in Debt Service Account.. ...................................................... 16 Deposits and Investment of Moneys ........................................................................... 17 Application of Moneys in the Costs oflssuance Account... ........................................ 17 600597 .20047\BASICDOCS 2023-A Section 601 . Section 602. Section 603. Section 701. Section 801. Section 802. Section 901 . Section 902. Section 903. Section 904. Section 905. Section 906. Section 907. Section 908. Section 909. ARTICLE VI DEFAULT AND REMEDIES Remedies ..................................................................................................................... 17 Limitation on Rights of Owners .................................................................................. 18 Remedies Cumulative .................................................................................................. 18 ARTICLE VII DEFEASANCE Defeasance ................................................................................................................... 18 ARTICLE VIII CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements ............................................................................................. 19 Failure to Comply with Continuing Disclosure Requirements ................................... 19 ARTICLE IX MISCELLANEOUS PROVISIONS Annual Audit ............................................................................................................... 19 Amendments ................................................................................................................ 19 Notices, Consents and Other Instruments by Owners ................................................. 20 Notices ......................................................................................................................... 21 Electronic Transactions ............................................................................................... 21 Further Authority ......................................................................................................... 21 Severability .................................................................................................................. 21 Governing Law ............................................................................................................ 22 Effective Date .............................................................................................................. 22 EXHIBIT A -FORM OF BONDS ............................................................................................................. A-1 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597 .20047\BASICDOCS 2023·A 11 RESOLUTION NO. 23-07 A RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF TAXABLE GENERAL OBLIGATION BONDS, SERIES 2023- A, OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS); PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. WHEREAS, the Salina Airport Authority (Salina, Kansas) (the "Issuer") is a legally constituted public airport authority, duly created, organized and existing under the Constitution and laws of the State, including specifically K.S.A 27-315 to 27-236 et seq.; and WHEREAS, Issuer has previously authorized certain internal improvements described as follows (collectively the "Improvements"): Project Description Land Acquisition General Aviation Hangar, Air Terminal Concourse and Building 595 Projects Hangar 626 MRO Project & Aircraft Apron, Taxi & Parking Facilities Aviation Fuel Facility, additional improvements to General Aviation Hangar, Hangar 626 MRO Projects Total: Res. No. 20-04 21-08 22-02 23-04 Amount $2,200,000 3,500,000 4,350,000 10,235,000 $20,285,000 WHEREAS, the Issuer desires to issue its general obligation bonds in order to permanently finance a portion of the costs of such Improvements and to retire the following temporary notes of the Issuer, which were issued to temporarily finance a portion of the costs of the Improvements (the "Refunded Notes"): Series 2022-1 Dated Date 07/07/2022 Maturity Date 07/01/2023 Original Amount $1,000,000 Redemption Amount $1,000,000 Redemption Date 06/08/2023 WHEREAS, the governing body of the Issuer is authorized by law to issue the general obligation bonds to pay a portion of the costs of the Improvements; and WHEREAS, the governing body of the Issuer has advertised the sale of the Bonds in accordance with the law and at a meeting held on this date, awarded the sale of such Bonds to the lowest bidder; and WHEREAS, the governing body of the Issuer hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Bonds in the principal amount of $1,000,000 to pay a portion of the costs of the Improvements, including retiring the Refunded Notes, and pay Costs of Issuance. 600597 .20047\BASICDOCS 2023-A 1 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALINA AIRPORT AUTHORITY (SALINA, KANSAS), AS FOLLOWS: ARTICLE I DEFINITIONS Section l 01. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Bond Resolution shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, and K.S.A. 27-315 to 27-326, inclusive, all as amended and supplemented from time to time. "Authority" means the Salina Airport Authority (Salina, Kansas). "Authorized Denomination" means $5,000 or any integral multiples thereof. "Beneficial Owner" of the Bonds includes any Owner of the Bonds and any other Person who, directly or indirectly has the investment power with respect to such Bonds. "Board Clerk" means the duly appointed and/or elected Clerk or, in the Clerk's absence, the duly appointed Deputy Board Clerk or Acting Board Clerk of the Authority. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds. "Bond Counsel" means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. "Bond Payment Date" means any date on which principal of or interest on any Bond is payable. "Bond Register" means the books for the registration, transfer and exchange of Bonds kept at the office of the Bond Registrar. "Bond Registrar" means the State Treasurer and any successors and assigns. "Bond Resolution" means this resolution relating to the Bonds. "Bonds" or "Bond" means the Taxable General Obligation Bonds, Series 2023-A, authorized and issued by the Issuer pursuant to this Bond Resolution. "Business Day" means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. 600597.20047\BASICDOCS 2023-A 2 "Cede & Co." means Cede & Co., as nominee of DTC and any successor nominee of DTC. "Chair" means the duly elected and acting Chair, or in the Chair's absence, the duly appointed and/or elected Vice Chair or Acting Chair of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder by the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Bonds, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses incurred in obtaining municipal bond insurance on the Bonds. "Costs of Issuance Account" means the Costs of Issuance Account for Taxable General Obligation Bonds, Series 2023-A created pursuant to Section 501 hereof. "Dated Date" means June 7, 2023. "Debt Service Account" means the Debt Service Account for Taxable General Obligation Bonds, Series 2023-A created within the Bond and Interest Fund pursuant to Section 501 hereof. "Debt Service Requirements" means the aggregate principal payments (whether at maturity or pursuant to scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers. ''Defaulted Interest" means interest on any Bond which is payable but not paid on any Interest Payment Date. ''Defeasance Obligations" means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; 600597 .20047\BASICDOCS 2023-A 3 (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the rating category then assigned by that Rating Agency to United States Government Obligations. ''Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. "Disclosure Undertaking" means the Continuing Disclosure Undertaking, dated as of the Dated Date, relating to certain obligations contained in the SEC Rule. ''DTC" means The Depository Trust Company, a limited-purpose trust company organized under the laws of the State of New York, and its successors and assigns, including any successor securities depository duly appointed. ''DTC Representation Letter" means the Blanket Letter of Representation from the Issuer and the Paying Agent to DTC which provides for a book-entry system, or any agreement between the Issuer and Paying Agent and a successor securities depository duly appointed. "Event of Default" means each of the following occurrences or events: (a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise; (b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due; or ( c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Bond Resolution (other than the covenants relating to continuing disclosure requirements contained herein and in the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then Outstanding. "Fiscal Year" means the twelve month period ending on December 31. "Funds and Accounts" means funds and accounts created pursuant to or referred to in Section 501 hereof. "Governing Body" means the board of directors of the Issuer. 600597 .20047\BASICDOCS 2023-A 4 ''Improvements" means the improvements referred to in the preamble to this Bond Resolution and any Substitute Improvements. "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by this Bond Resolution. "Interest Payment Date(s)" means the Stated Maturity of an installment of interest on any Bond which shall be March 1 and September 1 of each year, commencing March 1, 2024. ''Issue Date" means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the Purchase Price. "Issuer" means the Authority and any successors or assigns. "Maturity" when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "Notice Address" means with respect to the following entities: (a) To the Issuer at: 3237 Arnold Avenue Salina, Kansas 67401 Fax: (785) 827-2221 (b) To the Paying Agent at: State Treasurer of the State of Kansas Landon Office Building 900 Southwest Jackson, Suite 201 Topeka, Kansas 66612-1235 Fax: (785) 296-6976 ( c) To the Purchaser: UMB Bank, n.a. Municipal Underwriting 1010 Grand Blvd., 2nd Floor P.O. Box 419226 Kansas City, Missouri 64141-6226 Fax: (816) 843-4325 600597.20047\BASICDOCS 2023-A 5 (d) To the Rating Agency(ies): Moody's Municipal Rating Desk 7 World Trade Center 250 Greenwich Street, 23rd Floor New York, New York 10007 S&P Global Ratings, a division of S&P Global Inc. 55 Water Street, 38th Floor New York, New York 10004 or such other address as is furnished in writing to the other parties referenced herein. "Notice Representative" means: (a) With respect to the Issuer, the Board Clerk. (b) With respect to the Bond Registrar and Paying Agent, the Director of Fiscal Services. ( c) With respect to any Purchaser, the manager of its Municipal Bond Department. (d) With respect to any Rating Agency, any Vice President thereof. "Official Statement" means Issuer's Official Statement relating to the Bonds. "Outstanding" means, when used with reference to the Bonds, as of a particular date of determination, all Bonds theretofore authenticated and delivered, except the following Bonds: (a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation; (b) Bonds deemed to be paid in accordance with the provisions of Article VII hereof; and ( c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered hereunder. "Owner" when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register. Whenever consent of the Owners is required pursuant to the terms of this Bond Resolution, and the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Bonds. ''Participants" means those financial institutions for whom the Securities Depository effects book- entry transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at the time of such reference. "Paying Agent" means the State Treasurer and any successors and assigns. "Permitted Investments" shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the 600597 .2004 7\BASICDOCS 2023-A 6 Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in ( c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in ( c) or ( f); (j) receipts evidencing ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the municipality issuing the same; or (1) bonds of any municipality of the State as defined in KS.A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), all as may be further restricted or modified by amendments to applicable State law. "Person" means any natural person, corporation, partnership.joint venture, association, firm,joint- stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body. ''Purchase Price" means the principal amount of the Bonds, less an underwriting discount of $3,890.00. "Purchaser" means UMB Bank, n.a., Kansas City, Missouri, the original purchaser of the Bonds, and any successor and assigns. "Rating Agency" means any company, agency or entity that provides, pursuant to request of the Issuer, financial ratings for the Bonds. "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. "Redemption Date" means, when used with respect to any Bond to be redeemed, the date fixed for the redemption of such Bond pursuant to the terms of this Bond Resolution. ''Redemption Fund" means the Redemption Fund for Refunded Notes created pursuant to Section 501 hereof. "Redemption Price" means, when used with respect to any Bond to be redeemed, the price at which such Bond is to be redeemed pursuant to the terms of this Bond Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. "Refunded Notes" means the Series 2022-1 Notes maturing in the years 2023 in the aggregate principal amount of $1,000,000. "Refunded Notes Paying Agent" means the paying agent for the Refunded Notes as designated in the Refunded Notes Resolution, and any successor or successors at the time acting as paying agent of the Refunded Notes. "Refunded Notes Redemption Date" means June 8, 2023. 600597 .20047\BASICDOCS 2023-A 7 "Refunded Notes Resolution" means the resolution which authorized the Refunded Notes. "Replacement Bonds" means Bonds issued to the Beneficial Owners of the Bonds in accordance with Section 213 hereof. "SEC Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. "Securities Depository" means, initially, DTC, and its successors and assigns. "Series 2022-1 Notes" means the Issuer's Taxable General Obligation Temporary Notes, Series 2022-1, dated July 7, 2022. "Special Record Date" means the date fixed by the Paying Agent pursuant to Article II hereof for the payment of Defaulted Interest. "Standard & Poor's" or "S&P" means S&P Global Ratings, a division of S&P Global Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "State" means the state of Kansas. "State Treasurer" means the duly elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the State. "Stated Maturity" when used with respect to any Bond or any installment of interest thereon means the date specified in such Bond and this Bond Resolution as the fixed date on which the principal of such Bond or such installment of interest is due and payable. "Substitute Improvements" means the substitute or additional improvements of the Issuer described in Article V hereof. "Treasurer'' means the duly appointed and/or elected Treasurer of the Issuer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. 600597 .20047\BASICDOCS 2023-A 8 ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Section 201. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the Taxable General Obligation Bonds, Series 2023-A, of the Issuer in the principal amount of $1,000,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements, including retiring the Refunded Notes; and (b) pay Costs oflssuance. Section 202. Description of the Bonds. The Bonds shall consist of fully registered bonds in an Authorized Denomination, and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds shall be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities as provided in Article III hereof, and shall bear interest at the rates per annum as follows: Stated Maturity September 1 2032 Principal Amount $1,000,000 Annual Rate of Interest 4.30% The Bonds shall bear interest at the above specified rates ( computed on the basis of a 3 60-day year of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner set forth in Section 204 hereof. Each of the Bonds, as originally issued or issued upon transfer, exchange or substitution, shall be printed in accordance with the format required by the Attorney General of the State and shall be substantially in the form attached hereto as EXHIBIT A or as may be required by the Attorney General pursuant to the Notice of Systems of Registration for Kansas Municipal Bonds, 2 Kan. Reg. 921 (1983), in accordance with the Kansas Bond Registration Law, K.S.A. 10-620 et seq. Section 203. Designation of Paying Agent and Bond Registrar. The State Treasurer is hereby designated as the Paying Agent for the payment of principal of and interest on the Bonds and Bond Registrar with respect to the registration, transfer and exchange of Bonds. The Chair of the Issuer is hereby authorized and empowered to execute on behalf of the Issuer an agreement with the Bond Registrar and Paying Agent for the Bonds. The Issuer will at all times maintain a Paying Agent and Bond Registrar meeting the qualifications herein described for the performance of the duties hereunder. The Issuer reserves the right to appoint a successor Paying Agent or Bond Registrar by (a) filing with the Paying Agent or Bond Registrar then performing such function a certified copy of the proceedings giving notice of the termination of such Paying Agent or Bond Registrar and appointing a successor, and (b) causing notice of appointment of the successor Paying Agent and Bond Registrar to be given by first class mail to each Owner. No resignation or removal of the Paying Agent or Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Paying Agent or Bond Registrar. Every Paying Agent or Bond Registrar appointed hereunder shall at all times meet the requirements of KS.A. 10-501 et seq. and KS.A. 10-620 et seq., respectively. Section 204. Method and Place of Payment of the Bonds. The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. 600597 .20047\BASICDOCS 2023-A 9 The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank ABA routing number and account number to which such Owner wishes to have such transfer directed. Notwithstanding the foregoing provisions of this Section, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified in this paragraph. The Issuer shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent at the time of such notice an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than IO days prior to the date of the proposed payment. The Paying Agent shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefore to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice at the address of such Owner as it appears on the Bond Register not less than 10 days prior to such Special Record Date. The Paying Agent shall keep a record of payment of principal and Redemption Price of and interest on all Bonds and at least annually shall forward a copy or summary of such records to the Issuer. Section 205. Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Section 206. Registration, Transfer and Exchange of Bonds. The Issuer covenants that, as long as any of the Bonds remain Outstanding, it will cause the Bond Register to be kept at the office of the Bond Registrar as herein provided. Each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as provided in this Section. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any Authorized Denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. 600597 .20047\BASICDOCS 2023-A IO Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds provided for by this Bond Resolution and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent pursuant to Article III hereof and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest pursuant to this Article II. The Issuer and the Paying Agent may deem and treat the Person in whose name any Bond is registered on the Bond Register as the absolute Owner of such Bond, whether such Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Bond and for all other purposes. All payments so made to any such Owner or upon the Owner's order shall be valid and effective to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Issuer nor the Paying Agent shall be affected by any notice to the contrary. At reasonable times and under reasonable regulations established by the Bond Registrar, the Bond Register may be inspected and copied by the Owners ( or a designated representative thereof) of 10% or more in principal amount of the Bonds then Outstanding or any designated representative of such Owners whose authority is evidenced to the satisfaction of the Bond Registrar. Section 207. Execution, Registration, Authentication and Delivery of Bonds. Each of the Bonds, including any Bonds issued in exchange or as substitutions for the Bonds initially delivered, shall be executed for and on behalf of the Issuer by the manual, electronic or facsimile signature of the Chair, attested by the manual, electronic or facsimile signature of the Board Clerk, and the seal of the Issuer shall be affixed thereto or imprinted thereon. The Chair and Board Clerk are hereby authorized and directed to prepare and execute the Bonds in the manner herein specified, and to cause the Bonds to be registered in the office of the Board Clerk, which registration shall be evidenced by the manual, electronic or facsimile signature of the Board Clerk with the seal of the Issuer affixed thereto or imprinted thereon, and registered in the office of the Clerk of Saline County, Kansas, which registration shall be evidenced by the manual, electronic or facsimile signature of the Clerk of Saline County, Kansas with the seal of Saline County, Kansas affixed thereto or imprinted thereon. The Bonds shall also be registered in the office of the State Treasurer, which registration shall be evidenced by the manual, electronic or facsimile signature of the State Treasurer with the seal of the State Treasurer affixed thereto or imprinted thereon. In case any officer whose signature appears on any Bonds ceases to be such officer before the delivery of such Bonds, such signature shall nevertheless be valid and sufficient for all purposes, as if such person had remained in office until delivery. Any Bond may be signed by such persons who at the actual time of the execution of such Bond 600597 .20047\BASICDOCS 2023-A 11 are the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers. The Chair and Board Clerk are hereby authorized and directed to prepare and execute the Bonds as herein specified, and when duly executed, to deliver the Bonds to the Bond Registrar for authentication. The Bonds shall have endorsed thereon a certificate of authentication substantially in the form attached hereto as EXHIBIT A hereof, which shall be manually executed by an authorized officer or employee of the Bond Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Bonds that may be issued hereunder at any one time. No Bond shall be entitled to any security or benefit under this Bond Resolution or be valid or obligatory for any purpose unless and until such certificate of authentication has been duly executed by the Bond Registrar. Such executed certificate of authentication upori any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Bond Resolution. Upon authentication, the Bond Registrar shall deliver the Bonds to the Purchaser upon instructions of the Issuer or its representative. Section 208. Mutilated, Lost, Stolen or Destroyed Bonds. If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond under this Section, the Issuer and the Paying Agent may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Every new Bond issued pursuant to this Section shall constitute a replacement of the prior obligation of the Issuer, and shall be entitled to all the benefits of this Bond Resolution equally and ratably with all other Outstanding Bonds. Section 209. Cancellation and Destruction of Bonds Upon Payment. All Bonds that have been paid or redeemed or that otherwise have been surrendered to the Paying Agent, either at or before Maturity, shall be cancelled by the Paying Agent immediately upon the payment, redemption and surrender thereof to the Paying Agent and subsequently destroyed in accordance with the customary practices of the Paying Agent. The Paying Agent shall execute a certificate in duplicate describing the Bonds so cancelled and destroyed and shall file an executed counterpart of such certificate with the Issuer. Section 210. Book-Entry Bonds; Securities Depository. The Issuer and Paying Agent have entered into a DTC Representation Letter with DTC. The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds as provided in this Section. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar 600597 .20047\BASICDOCS 2023-A 12 authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraph. The Issuer may decide, subject to the requirements of the Operational Arrangements of DTC ( or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC ( or a successor Securities Depository): (a) If the Issuer determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interests in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to Owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository in accordance with the following paragraph, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of Bonds to the successor Securities Depository in an Authorized Denominations and form as provided herein. Section 211. Nonpresentment of Bonds. If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall 600597.20047\BASICDOCS 2023-A 13 forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four ( 4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay, without liability for interest thereon, to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Section 212. Preliminary and Final Official Statement. The Preliminary Official Statement relating to the Bonds is hereby ratified and approved. For the purpose of enabling the Purchaser to comply with the requirements of Section (b )( 1) of the SEC Rule, the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be "final" as of its date, except for the omission of such information as is permitted by Section (b )(1) of the SEC Rule, and the appropriate officers of the Issuer are hereby authorized, if requested, to provide the Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the SEC Rule. The Official Statement is hereby authorized to be prepared by supplementing, amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The Chair and Board Clerk are hereby authorized to execute the Official Statement as so supplemented, amended and completed, and the use and public distribution of the Official Statement by the Purchaser in connection with the reoffering of the Bonds is hereby authorized. The proper officials of the Issuer are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the Issue Date. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds sufficient copies of the Official Statement to enable the Purchaser to comply with the requirements of the SEC Rule and Rule G-32 of the Municipal Securities Rulemaking Board. Section 213. Sale of the Bonds. The sale of the Bonds to the Purchaser is hereby ratified and confirmed. The Chair and Board Clerk are hereby authorized to execute the official bid form submitted by the Purchaser. Delivery of the Bonds shall be made to the Purchaser on the Issue Date (which shall be as soon as practicable after the adoption of this Bond Resolution), upon payment of the Purchase Price. ARTICLE III REDEMPTION OF BONDS Section 301. No Redemption of Bonds. The Bonds shall not be subject to redemption and payment prior to their Stated Maturity. 600597.20047\BASICDOCS 2023-A 14 ARTICLE IV SECURITY FOR BONDS Section 401. Security for the Bonds. The Bonds shall be general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 402. Levy and Collection of Annual Tax; Transfer to Debt Service Account. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any time said taxes are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS AND OTHER MONEYS Section 501. Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the Issuer the following Funds and Accounts: (a) Redemption Fund. (b) Debt Service Account for Taxable General Obligation Bonds, Series 2023-A (within the Bond and Interest Fund). (c) Costs of Issuance Account for Taxable General Obligation Bonds, Series 2023-A. The Funds and Accounts established herein shall be administered in accordance with the provisions of this Bond Resolution so long as the Bonds are Outstanding. Section 502. Deposit of Bond Proceeds and Other Moneys. The net proceeds received from the sale of the Bonds and certain other funds shall be deposited simultaneously with the delivery of the Bonds as follows: 600597 .20047\BASICDOCS 2023-A 15 (a) An amount necessary to pay the Costs of Issuance shall be deposited in the Costs of Issuance Account. (b) The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited into the Redemption Fund. (c) In addition to proceeds of the Bonds, the Issuer will use available funds to provide for payment of the Refunded Notes. Section 503. Substitution of Improvements; Reallocation of Proceeds. (a) The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Bonds provided the following conditions are met: (1) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement has been duly authorized by the Governing Body in accordance with the laws of the State; (2) a resolution authorizing the use of the proceeds of the Bonds to pay the financeable costs of the Substitute Improvement has been duly adopted by the Governing Body pursuant to this Section, (3) the Attorney General of the State has approved the amendment made by such resolution to the transcript of proceedings for the Bonds to include the Substitute Improvements; and ( 4) the use of the proceeds of the Bonds to pay the financeable cost of the Substitute Improvement will not adversely affect the tax-exempt status of the Bonds under State law. (b) The Issuer may reallocate expenditure of Bond proceeds among all Improvements financed by the Bonds; provided the following conditions are met: ( 1) the reallocation is approved by the Governing Body; (2) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the financeable costs of the Improvement; and (3) the reallocation will not adversely affect the tax-exempt status of the Bonds under State law. Section 504. Application of Moneys in the Redemption Fund. Moneys in the Redemption Fund shall be paid and transferred to the Refunded Notes Paying Agent, with irrevocable instructions to apply such amount to the payment of the Refunded Notes on the Refunded Notes Redemption Date. Any moneys remaining in the Redemption Fund not needed to retire the Refunded Notes shall be transferred to the Debt Service Account. Section 505. Application of Moneys in Debt Service Account. All amounts paid and credited to the Debt Service Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Bonds as and when the same become due and the usual and customary fees and expenses of the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account sums sufficient to pay both principal or Redemption Price of and interest on the Bonds and the fees and expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Bond Registrar and Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Bonds entitled to payment from such moneys. 600597 .20047\BASICDOCS 2023-A 16 Any moneys or investments remaining in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and Interest Fund. Section 506. Deposits and Investment of Moneys. Moneys in each of the Funds and Accounts shall be deposited in accordance with laws of the State, in a bank, savings and loan association or savings bank organized under the laws of the State, any other state or the United States: (a) which has a main or branch office located in the Issuer; or (b) if no such entity has a main or branch office located in the Issuer, with such an entity that has a main or branch office located in the county or counties in which the Issuer is located. All such depositaries shall be members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law. All such deposits shall be invested in Permitted Investments as set forth in this Article or shall be adequately secured as provided by the laws of the State. All moneys held in the Funds and Accounts shall be kept separate and apart from all other funds of the Issuer so that there shall be no commingling with any other funds of the Issuer. Moneys held in any Fund or Account other than the Redemption Fund may be invested in accordance with this Bond Resolution in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account. Section 507. Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after payment of all Costs of Issuance, but not later than the later of 30 days prior to the first Stated Maturity of principal or one year after the date of issuance of the Bonds, shall be transferred to the Debt Service Account. ARTICLE VI DEFAULT AND REMEDIES Section 601. Remedies. The provisions of the Bond Resolution, including the covenants and agreements herein contained, shall constitute a contract between the Issuer and the Owners of the Bonds. If an Event of Default occurs and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Bonds at the time Outstanding shall have the right for the equal benefit and protection of all Owners of Bonds similarly situated: (a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of the Bond Resolution or by the Constitution and laws of the State; (b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and employees to account as if they were the trustees of an express trust; and ( c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Owners of the Bonds. 600597.20047\BASICDOCS 2023-A 17 Section 602. Limitation on Rights of Owners. The covenants and agreements of the Issuer contained herein and in the Bonds shall be for the equal benefit, protection, and security of the Owners of any or all of the Bonds, all of which Bonds shall be of equal rank and without preference or priority of one Bond over any other Bond in the application of the funds herein pledged to the payment of the principal of and the interest on the Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in this Bond Resolution. No one or more Owners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Outstanding Bonds. Section 603. Remedies Cumulative. No remedy conferred herein upon the Owners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred herein. No waiver of any default or breach of duty or contract by the Owner of any Bond shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any Owner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the Owners of the Bonds by this Bond Resolution may be enforced and exercised from time to time and as often as may be deemed expedient. If action or proceedings taken by any Owner on account of any default or to enforce any right or exercise any remedy has been discontinued or abandoned for any reason, or shall have been determined adversely to such Owner, then, and in every such case, the Issuer and the Owners of the Bonds shall, subject to any determination in such action or proceeding or applicable law of the State, be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the Owners shall continue as if no such suit, action or other proceedings had been brought or taken. ARTICLE VII DEFEASANCE Section 701. Defeasance. When any or all of the Bonds, redemption premium, if any, or scheduled interest payments thereon have been paid and discharged, then the requirements contained in this Bond Resolution and the pledge of the Issuer's faith and credit hereunder and all other rights granted hereby shall terminate with respect to the Bonds or scheduled interest payments thereon so paid and discharged. Bonds, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and discharged within the meaning of this Bond Resolution if there has been deposited with the Paying Agent, or other commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Bonds or the interest payments thereon, in trust for and irrevocably appropriated thereto, moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance Obligations, will be sufficient for the payment of the principal of or Redemption Price of said Bonds and/or interest accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any Bonds, no such satisfaction shall occur until (a) the Issuer has elected to redeem such Bonds, and (b) either notice of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an escrow agent to give irrevocable instructions, to the Bond Registrar to give such notice of redemption in compliance with Article III hereof. Any money and Defeasance Obligations that at any time shall be deposited with the Paying Agent or other commercial bank or trust company by or on behalf of the Issuer, for the purpose of 600597.20047\BASICDOCS 2023-A 18 paying and discharging any of the Bonds, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank or trust company in trust for the respective Owners of the Bonds, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All money and Defeasance Obligations deposited with the Paying Agent or such bank or trust company shall be deemed to be deposited in accordance with and subject to all of the provisions of this Bond Resolution. ARTICLE VIII CONTINUING DISCLOSURE REQUIREMENTS Section 801. Disclosure Requirements. The Issuer hereby covenants with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking, the provisions of which are incorporated herein by reference. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Section 802. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its covenants contained in the preceding section, the Purchaser and/or any Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits in equity for the specific performance of such covenant or agreement contained in the preceding section or for the enforcement of any other appropriate legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce any of the duties of the Issuer under such preceding section. Notwithstanding any other provision of this Bond Resolution, failure of the Issuer to comply with its covenants contained in the preceding section shall not be considered an Event of Default under this Bond Resolution. ARTICLE IX MISCELLANEOUS PROVISIONS Section 901. Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such audit, a copy thereof shall be filed in the office of the Board Clerk. Such audit shall at all times during the usual business hours be open to the examination and inspection by any taxpayer, any Owner of any of the Bonds, or by anyone acting for or on behalf of such taxpayer or Owner. Upon payment of the reasonable cost of preparing and mailing the same, a copy of any annual audit will, upon request, be sent to any Owner or prospective Owner. As soon as possible after the completion of the annual audit, the Governing Body shall review such audit, and if the audit discloses that proper provision has not been made for all of the requirements of this Bond Resolution, the Issuer shall promptly cure such deficiency. Section 902. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Bonds or of this Bond Resolution, may be amended or modified at any time in any respect by resolution of the Issuer with the written consent of the Owners of not less than a majority in principal amount of the Bonds then Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly acknowledged or proved in the manner of a deed to be 600597 .20047\BASICDOCS 2023-A 19 recorded, and such instrument or instruments shall be filed with the Board Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Bond; ( c) permit preference or priority of any Bond over any other Bond; or (d) reduce the percentage in principal amount of Bonds required for the written consent to any modification or alteration of the provisions of this Bond Resolution. Any provision of the Bonds or of this Bond Resolution may, however, be amended or modified by resolution duly adopted by the Governing Body at any time in any legal respect with the written consent of the Owners of all of the Bonds at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement this Bond Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity herein, to grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to provide for Substitute Improvements, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Every amendment or modification of the provisions of the Bonds or of this Bond Resolution, to which the written consent of the Owners is given, as above provided, shall be expressed in a resolution adopted by the Governing Body amending or supplementing the provisions of this Bond Resolution and shall be deemed to be a part of this Bond Resolution. A certified copy of every such amendatory or supplemental resolution, if any, and a certified copy of this Bond Resolution shall always be kept on file in the office of the Board Clerk, and shall be made available for inspection by the Owner of any Bond or a prospective purchaser or owner of any Bond authorized by this Bond Resolution, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental resolution or of this Bond Resolution will be sent by the Board Clerk to any such Owner or prospective Owner. Any and all modifications made in the manner hereinabove provided shall not become effective until there has been filed with the Board Clerk a copy of the resolution of the Issuer hereinabove provided for, duly certified, as well as proof of any required consent to such modification by the Owners of the Bonds then Outstanding. It shall not be necessary to note on any of the Outstanding Bonds any reference to such amendment or modification. The Issuer shall furnish to the Paying Agent a copy of any amendment to the Bonds or this Bond Resolution which affects the duties or obligations of the Paying Agent under this Bond Resolution. Section 903. Notices, Consents and Other Instruments by Owners. Any notice, consent, request, direction, approval or other instrument to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Resolution, and shall be conclusive in favor of the Issuer and the Paying Agent with regard to any action taken, suffered or omitted under any such instrument, namely: 600597.20047\BASICDOCS 2023-A 20 (a) The fact and date of the execution by any person of any such instrument may be proved by a certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such instrument acknowledged before such officer the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Bonds, the amount or amounts, numbers and other identification of Bonds, and the date of holding the same shall be proved by the Bond Register. In determining whether the Owners of the requisite principal amount of Bonds Outstanding have given any request, demand, authorization, direction, notice, consent or waiver under this Bond Resolution, Bonds owned by the Issuer shall be disregarded and deemed not to be Outstanding under this Bond Resolution, except that, in determining whether the Owners shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Bonds which the Owners know to be so owned shall be so disregarded. Notwithstanding the foregoing, Bonds so owned which have been pledged in good faith shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Owners the pledgee's right so to act with respect to such Bonds and that the pledgee is not the Issuer. Section 904. Notices. Any notice, request, complaint, demand or other communication required or desired to be given or filed under this Bond Resolution shall be in writing, given to the Notice Representative at the Notice Address and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be given to the Paying Agent. The Issuer, the Paying Agent and the Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. All notices given by: (a) certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of confirmation of receipt. If, because of the temporary or permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice. Section 905. Electronic Transactions. The transactions described in this Bond Resolution may be conducted, and documents related to the Bonds may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents ( or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 906. Further Authority. The officers and officials of the Issuer, including the Chair and Board Clerk, are hereby authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Bond Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 907. Severability. If any section or other part of this Bond Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Bond Resolution. 600597.20047\BASICDOCS 2023-A 21 Section 908. Governing Law. This Bond Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 909. Effective Date. This Bond Resolution shall take effect and be in full force from and after its adoption by the Governing Body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597.20047\BASICDOCS 2023-A 22 ADOPTED by the Board of Directors on May 17, 2023. (SEAb) <~\ ATTEST: ~ 1 f ~.) . Y'Ylr::d mr6l Boa Clerk CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of the Bond Resolution of the Issuer adopted by the Governing Body on May 17, 2023, as the same appears of record in my office. DATED: May 17, 2023. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597.20047\BASICDOCS 2023-A (Signature Page to Bond Resolution) EXHIBITA (FORM OF BONDS) REGISTERED NUMBER REGISTERED $ Interest Rate: Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation (''DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BOND Maturity Date: SERIES 2023-A Dated Date: June 7, 2023 CUSIP: REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the Salina Airport Authority (Salina, Kansas), in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on March 1 and September 1 of each year, commencing March 1, 2024 (the "Interest Payment Dates"), until the Principal Amount has been paid. Method and Place of Payment. The principal or redemption price of this Bond shall be paid at maturity or upon earlier redemption to the person in whose name this Bond is registered at the maturity or redemption date thereof, upon presentation and surrender of this Bond at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The interest payable on this Bond on any Interest Payment Date shall be paid to the person in whose name this Bond is registered on the registration books maintained by the Bond Registrar at the close of business on the Record Date(s) for such interest, which shall be the 15th day (whether or not a business day) of the calendar month next preceding the Interest Payment Date. Such interest shall be payable (a) by check or draf( mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or at such other 600597 .20047\BASICDOCS 2023-A A-1 address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Registered Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Bonds shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Bond Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "Taxable General Obligation Bonds, Series 2023-A," aggregating the principal amount of $1 ,000,000 (the "Bonds") issued for the purposes set forth in the Resolution of the Issuer authorizing the issuance of the Bonds (the "Bond Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 27-315 to 27-326, inclusive, as amended, and all other provisions of the laws of the State of Kansas applicable thereto. General Obligations. The Bonds constitute general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Redemption Prior to Maturity. The Bonds are subject to redemption prior to maturity as set forth in the Bond Resolution. Book-Entry System. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Bond Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature or with respect to each form of Bonds, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will recognize the Securities Depository nominee, while the Registered Owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfer of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfer of principal, interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made 600597 .20047\BASICDOCS 2023-A A-2 in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. This Bond may be transferred or exchanged, as provided in the Bond Resolution, only on the Bond Register kept for that purpose at the principal office of the Bond Registrar, upon surrender of this Bond, together with a written instrument of transfer or authorization for exchange satisfactory to the Bond Registrar duly executed by the Registered Owner or the Registered Owner's duly authorized agent, and thereupon a new Bond or Bonds in any Authorized Denomination of the same maturity and in the same aggregate principal amount shall be issued to the transferee in exchange therefor as provided in the Bond Resolution and upon payment of the charges therein prescribed. The Issuer shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. The Issuer and the Paying Agent may deem and treat the person in whose name this Bond is registered on the Bond Register as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes. The Bonds are issued in fully registered form in Authorized Denominations. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signature of its Chair and attested by the manual, electronic or facsimile signature of its Board Clerk, and its seal to be affixed hereto or imprinted hereon. (Facsimile Seal) ATTEST: SALINA AIRPORT AUTHORITY (SALINA, KANSAS) By: ----~(f=a=c=si=rm=·~1e-) _______ _ Chair By: ----~<t=a=cs=i=rm=·1=e ..... ) _______ _ Board Clerk 600597 .20047\BASICDOCS 2023-A A-3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of Taxable General Obligation Bonds, Series 2023-A, of the Salina Airport Authority (Salina, Kansas), described in the within-mentioned Bond Resolution. Registration Date: _______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By ____________ _ Registration Number: 5349-085-060723-679 LEGAL OPINION The following is a true and correct copy of the approving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was dated and issued as of the date of original issuance and delivery of such Bonds: GILMORE & BELL, P.C. Attorneys at Law 100 N. Main Suite 800 Wichita, Kansas 67202 (PRINTED LEGAL OPINION) BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of$ ____ _, standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do( es) hereby irrevocably constitute and appoint _________ as agent to transfer said Bond on the books of said Bond Registrar with full power of substitution in the premises. Dated ________ _ Name 600597 .20047\BASICDOCS 2023-A A-4 Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By _______________ _ CERTIFICATE OF BOARD CLERK STATE OF KANSAS ) ) ss. COUNTY OF SALINE ) The undersigned, Board Clerk of the Salina Airport Authority (Salina, Kansas), does hereby certify that the within Bond has been duly registered in my office according to law as of June 7, 2023. WITNESS my hand and official seal. (Facsimile Seal) By: ____ (=f=ac~s=inn=·1e""").___ ______ _ Board Clerk CERTIFICATE OF COUNTY CLERK STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) The undersigned, County Clerk of Saline County, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of June 7, 2023. WITNESS my hand and official seal. (Facsimile Seal) By: ----~<f=ac~s=inn=·1=-e).___ ______ _ County Clerk 600597.20047\BASICDOCS 2023-A A-5 CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS STEVEN JOHNSON, Treasurer of the State of Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance of this Bond has been filed in the office of the State Treasurer, and that this Bond was registered in such office according to law on ______ _ WITNESS my hand and official seal. (Facsimile Seal) By: ____ (...,.f=ac"""s=inu=·1=e)'--------- Treasurer of the State of Kansas 600597 .20047\BASICDOCS 2023-A A-6 Treasurer of the State of Kansas Landon State Office Bldg. 900 Southwest Jackson, Suite 201 Topeka, Kansas 66612-1235 The Bennington State Bank 2130 S. Ohio Salina, Kansas 67042 RE: [CERTIFIED MAIL] CALL FOR REDEMPTION SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION TEMPORARY NOTES SERIES 2022-1, DATED JULY 7, 2022 (THE ''NOTES") Notice is hereby given pursuant to K.S.A. 10-129, as amended, and pursuant to the provisions of Resolution No. 22-06 (the "Note. Resolution") of the Salina Airport Authority (Salina, Kansas) (the "Issuer") that the above mentioned Notes described in the attached Notice of Call for Redemption (the "Called Notes"), have been called for redemption and payment on June 8, 2023, subject to ·the availability of funds therefor from the proceeds of general obligation bonds to be issued by the Issuer. The Paying Agent is hereby requested to disseminate the attached Notice of Call for Redemption in accordance with K.S.A. 10-129 and the Note Resolution. After redemption of the Called Notes the Paying Agent is requested to complete the attached Paying Agent's Certification and forward a copy of same to the undersigned. 600597.20047\REDEMPTION DOCS SALINAAIRPORT AUTHORITY (SALINA, KANSAS) C-1 NOTICE OF CALL FOR REDEMPTION TO THE OWNERS OF SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION TEMPORARY NOTES SERIES 2022-1, DATED JULY 7, 2022 (THE "NOTES") Notice is hereby given that pursuant to the provisions of Resolution No. 22-06 (the "Note Resolution") of the Salina Airport Authority (Salina, Kansas) (the "Issuer"), that the following described Notes (the "Called Notes") have been called for redemption and payment on June 8, 2023 (the "Redemption Date"), at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent"). Maturity Date July 1, 2023 Principal Amount $1,000,000 Interest Rate 2.25% ID No. 534956AA1 On such Redemption Date there shall become due and payable, upon the presentation and surrender of each such Called Note, the redemption price thereof equal to 100% of the principal amount of each Called Note, together with interest accrued to the Redemption Date. Interest shall cease to accrue on the Called Notes from and after the Redemption Date, provided such funds for redemption are on deposit with the Paying Agent. Under the provisions of Section 3406(a)(l) of the Internal Revenue Code of 1986, as amended, paying agents making payments of principal on municipal securities may be obligated to withhold a 28% tax on the payment of principal to registered owners who have failed to provide the paying agent with a valid taxpayer identification number. Registered Owners of the Called Notes who wish to avoid the imposition of the tax should provide a certified taxpayer identification number to the Paying Agent when presenting the Called Notes for payment. SALINA AIRPORT AUTHORITY (SALINA, KANSAS) By:------------- Treasurer of the State of Kansas, Topeka, Kansas, as Paying Agent ************************ This Notice of Call for Redemption shall be mailed to the Paying Agent, the Treasurer of the State of Kansas, Topeka, Kansas, the Registered Owners of the Notes and the original purchaser of the Notes, not less than 30 days prior to the Redemption Date. Notice may also be given in accordance with guidelines set forth in Securities and Exchange Commission Release No. 34-23856, but such notice is not required by law. 600597.20047\REDEMPTION DOCS C-2 PAYING AGENT'S CERTIFICATION SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION TEMPORARY NOTES SERIES 2022-1, DATED JULY 7, 2022 (THE "NOTES") The State Treasurer, in its capacity as Paying Agent for the above-captioned Bonds, does hereby certify as follows: 1. Capitalized terms not defined herein shall have the meanings ascribed thereto in the attached Notice of Call for Redemption or the Note Resolution defined therein. 2. The Called Notes have been called for redemption and payment on June 8, 2023 (the "Redemption Date"). 3. The full redemption price of the Called Notes as determined pursuant to the Note Resolution is calculated as follows: Principal Amount of Called Notes Accrued Interest to Redemption Date Total $1,000,000.00 20,287.50 $1,020,287.50 4. There was deposited with the Paying Agent the sum set forth above, which has been irrevocably pledged for the payment of the principal of, redemption premium, if any, and interest on the Called Notes to the Redemption Date. In addition, sufficient funds have been deposited to provide for additional costs associated with such redemption. 5. The Notice of Call for Redemption, a copy of which is attached hereto, was disseminated in accordance with K.S.A. 10-129, as amended, and the Note Resolution. DATED as of June 8, 2023. 600597 .20047\REDEMPTION DOCS TREASURER OF THE STATE OF KANSAS, TOPEKA, KANSAS By: --~~~~~=--=----=--IA.)=-=co..b_-=----=·==----- Director of Fiscal Services C-3 Gilmore & Bell, P.C. 05/16/2023 TRANSCRIPT CERTIFICATE $1,000,000 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 The undersigned Chair and Board Clerk of the Salina Airport Authority (Salina, Kansas) (the "Issuer"), do hereby make this certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above-described bonds (the "Bonds"); and do hereby certify as of May 17, 2023, as follows: 1. Meaning of Words and Terms. Capitalized words and terms used herein, unless otherwise defined herein or the context requires otherwise, shall have the same meanings ascribed to such words and terms in the hereinafter defined Bond Resolution authorizing the Bonds. 2. Organization. The Issuer is a legally constituted airport authority organized and existing under the laws of the State of Kansas. 3. Transcript of Proceedings. The transcript of proceedings (the "Transcript") relating to the authorization and issuance of the Bonds is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript, and the facts stated in the Transcript still exist. In each and every instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Board Clerk. 4. Newspaper. The Salina Journal was the official newspaper of the Issuer at all times during these proceedings. 5. Meetings. All of the meetings of the governing body of the Issuer at which action was taken as shown in the Transcript were either regular meetings or duly adjourned regular meetings or special meetings duly called and held in accordance with law and the rules of the Issuer. 6. Incumbency of Officers. The following named persons were and are the duly qualified and acting officers of the Issuer at and during all the times when action was taken as indicated in the Transcript as follows: Name Title Term of Office Current Tod Roberg Chair & Director 03/01/21 to 02/28/24 Stephanie Carlin Vice Chair & Director 03/01/22 to 02/28/25 John O'Brien Director 03/01/23 to 02/28/26 Donald Boos Director 03/01/23 to 02/28/26 Kristin Gunn Director 03/01/18 to 02/28/24 Kasey Windhorst Board Clerk 01/ 18/23 to Date Former Kent Buer Director 02/14/17 to 2/28/23 Alan Eichelberger Director 02/14/17 to 02/28/23 Brian Weisel Director 03/01/16 to 02/28/22 Troy Vancil Director 03/01/19 to 2/28/21 03/01/08 to 02/28/11 600597 .20047\CLOSING DOCS V.2 7. Execution of Bonds. The Bonds have been executed with facsimile signatures; and the facsimile signatures appearing on the face of the Bonds are facsimiles of the true and genuine signatures of the Chair and Board Clerk of the Issuer; which facsimiles are ratified as a proper execution of said Bonds. Each signature has either been duly filed in the office of the Secretary of State of Kansas pursuant to K.S.A. 75-4001 et seq. or executed in accordance with K.S.A. 16-1601 et seq. A facsimile of the seal of the Issuer is affixed to or imprinted on each of the Bonds and on the reverse side of each of the Bonds at the place where the Board Clerk has executed by facsimile signature the Certificate of Registration; and each Bond bears a Certificate of Registration evidencing the fact that it has been registered in the office of the Board Clerk. A true impression of the seal is set forth adjacent to the signature of the Board Clerk below. The specimen bond included in the Transcript is in the form adopted by the governing body of the Issuer for the Bonds. 8. Authorization and Purpose of the Bonds. The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State, including particularly K.S.A. 27-315 to 27-326, inclusive, as amended, and Resolution No. 23-07 of the Issuer duly adopted by the Governing Body of the Issuer on May 17, 2023 (the "Bond Resolution") for the purpose of paying costs of issuance and: (a) paying a portion of the costs of certain capital improvements (the "Improvements") and (b) retiring the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description Taxable G.O. Temporary Notes Series 2022-1 Dated Date July 7, 2022 Maturity Date July 1, 2023 Amount $1,000,000 The total principal amount of the Bonds does not exceed the cost of the Improvements for which the Bonds are issued. A Statement of Cost is attached hereto as Exhibit A and made a part hereof by reference as though fully set out herein. The interest rates on the Bonds on the date of the sale of the Bonds were within the maximum legal limit for interest rates under K.S.A. 10-1009, as amended. 9. Bonded Indebtedness. The currently outstanding applicable indebtedness of the Issuer, including the Bonds, does not exceed any applicable constitutional or statutory limitations. A Schedule of Bonded Indebtedness, which sets forth all currently outstanding general obligation indebtedness of the Issuer, is attached hereto as Exhibit B and made a part hereof by reference as though fully set out herein. 10. Valuation. The total assessed valuation of the taxable tangible property within the Issuer for the year 2022 is as follows: Equalized Assessed Valuation of Taxable Tangible Property ............................................................. . Tangible Valuation of Motor Vehicles ................................................. . Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations ................................ . $503,880,021 54,903,252 $558,783,273 11. Non-litigation. There is no controversy, suit or other proceedings of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the 600597.20047\CLOSING DOCS V.2 2 Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; or (f) the levy and collection of a tax to pay the principal of and interest on the Bonds. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597 .20047\CLOSING DOCS V.2 3 WITNESS our true and genuine manual signatures and the seal of the Iss Chair (SEAL) 16 '.U i° L ) · Y'iJccilJD c«t_ Board Clerk 600597.20047\CLOSING DOCS (Signature Page to Transcript Certificate) EXHIBIT A STATEMENT OF COST Re: Taxable General Obligation Bonds, Series 2023-A, Dated June 7, 2023, of the Salina Airport Authority (Salina, Kansas) Sources of Funds: Principal Amount of the Bonds Underwriter's Discount Total Uses of Funds: Deposit to Redemption Fund Costs of Issuance 600597 .20047\CLOSING DOCS V.2 A-1 $1,000,000.00 -3,890.00 $996,110.00 $933,580.92 62.529.08 $996,110.00 EXHIBITB SALINA AIRPORT AUTHORITY (SALINA, KANSAS) SCHEDULE OF OUTSTANDING GENERAL OBLIGATION INDEBTEDNESS (as of June 7, 2023) GENERAL OBLIGATION BONDS Description of Dated Indebtedness Date Taxable G.O. Bonds, Series 2015-A 09/28/2015 Taxable G.O. Refunding Final Maturity 9/1/2025 Bonds, Series 2017-A 07/12/2017 9/1/2030 G.O. Refunding Bonds, Series 2017B 07/12/2017 9/1/2031 G.O. Bonds, Series 2019-A 07/10/2019 9/1/2029 G.O. Refunding Bonds, Series 2019-B 07/10/2019 09/01/2023 Taxable G.O. Bonds, Series 2021-A 08/17/2021 09/1/2023 Taxable GO Bonds, Series 2023-A 06/07/2023 09/01/2032 GO Bonds, Series 2023-B (Subject to AMT) 06/07/2023 09/01/2040 GO Bonds, Series 2023-C 06/07/2023 09/01/2043 None1 Description of Indebtedness Total TEMPORARY NOTES Dated Date Final Maturity Original Principal Amount $3,075,000 10,255,000 4,835,000 675,000 3,455,000 2,345,000 1,000,000 8,870,000 6,855,000 Original Principal Amount $ Amount Outstanding $ 255,000 9,420,000 4,710,000 490,000 870,000 2,200,000 1,000,000 8,870,000 6,855,000 $34,670,000 Amount Outstanding $ 1 Excludes Refunded Notes and other series of Notes to be refunded on the issue date of the Bonds. 600597.20047\CLOSING DOCS V.2 B-1 STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: The Certificate of Manual Signature for TOD ROBERG, CHAIR SALINA AIRPORT AUTHO.RlTY, SALINA, KANSAS was filed in this office the 17th day of May, A.D. 2023 as provided by K.S.A. 75-4001 through 75-4007. IN TESTIMONY WHEREOF: I hereto set my hand and cause be affixed my official seal. Done at the City of Topeka, this 17th day of May, A.D. 2023 SCOTT SCHWAB KANSAS SECRETARY OF STATE STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, Scon SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: The Certificate of Manual Signature for KASEY WINDHORST, BOARD CLERK SALINA AIRPORT AUTHORITY, SAUNA, KANSAS was filed in this office the 17th day of May, A.D. 2023 as provided by K.S.A. 75-4001 through 75-4007. IN TESTIMONY WHEREOF: I hereto set my band and cause be affixed my official seal. Done at the City of Topeka, this 17th day of May, A.D. 2023 SCOTT SCHWAB KANSAS SECRETARY OF STATE Office of the Kansas State Treasurer Bond Registration Intranet 900 SW Jackson St., Ste 201 ... Topeka, KS 66612-1235 ... 785-296-3171 May 17, 2023 Pam Jones Gilmore & Bell Pc 100 North Main, Suite 800 Wichita, KS 67202 RE: $1,000,000.00, Salina Air Auth, Kansas Taxable General Obligation Bonds, Series 2023-A Dated June 07, 2023, Registration #5349-085-060723-679 Dear Ms. Jones, This office has been requested to authorize the printing of the State Treasurer's facsimile signature and seal on the above referenced issue. The registration number has been confirmed as correct. Authorization hereby granted May 17, 2023. Sincerely, Shauna Wake, M.B.A. Director of Fiscal Services Office of the Kansas State Treasurer cc Pam Jones Gilmore & Bell Pc c.c. 100 North Main, Suite 800 Wichita, KS 67202 REGISTERED NUMBER REGISTERED $ Interest Rate: Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporation ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF KANSAS ,.-._~ COUNTY OF SALINE .. \ SALINA AIRPORT AUTHORITY (S _ ·L,IN~,J.M~SAS) TAXABLEGENERALOB:OIGA O .BOND S . S 0234}\ CUSIP: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the Salina Airport Authority (Salina, Kansas), in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, and to pay interest thereon at the Interest Rate per annum shown above ( computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on March 1 and September 1 of each year, commencing March 1, 2024 (the "Interest Payment Dates"), until the Principal Amount has been paid. Method and Place of Payment. The principal or redemption price of this Bond shall be paid at maturity or upon earlier redemption to the person in whose name this Bond is registered at the maturity or redemption date thereof, upon presentation and surrender of this Bond at the principal office of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The interest payable on this Bond on any Interest Payment Date shall be paid to the person in whose name this Bond is registered on the registration books maintained by the Bond Registrar at the close of business on the Record Date(s) for such interest, which shall be the 15th day (whether or not a business day) of the calendar month next preceding the Interest Payment Date. Such interest shall be payable (a) by check or draft mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Registered 1 Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Registered Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Bonds shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Bond Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "Taxable General Obligation Bonds, Series 2023-A," aggregating the principal amount of $1,000,000 (the "Bonds") issued for the purposes set forth in the Resolution of the Issuer authorizing the issuance of the Bonds (the "Bond Resolution"). The Bonds are issued by the authOrity of and in full compliance with the provisions, restrictions and limitations of the Constitution and la s of the State of Kansas, including K.S.A. 27-315 to 27-326, inclusive, as amended, and,alf ot~eli p~s of the laws of the State of Kansas applicable thereto. ,, General Obligations. The Bonds constitute~en· o iga ·ons of the Issuer payable as to both principal and interest from ad valorem taxes wki,Gh m2'Y. be le d witliout limitation as to rate or amount upon all the taxable tangible property, r_ea} an& pe on , wi~n the territorial limits of the Issuer. The full faith, credit and resources of the I~!4ier are bereb~ rrevocably pledged for the prompt payment of the principal of and interest on the-&Rds J same·become due. . Redemptr Prior t aturity. The Bonds are subject to redemption prior to maturity as set forth m the Bond Resolttt · . Book-Entr System. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Bond Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature or with respect to each form of Bonds, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will recognize the Securities Depository nominee, while the Registered Owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfer of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfer of principal, interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. 2 Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, TIDS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. This Bond may be transferred or exchanged, as provided in the Bond Resolution, only on the Bond Register kept for that purpose at the principal office of the Bond Registrar, upon surrender of this Bond, together with a written instrument of transfer or authorization for exchange satisfactory to the Bond Registrar duly executed by the Registered Owner or the Registered Owner's duly authorized agent, and thereupon a new Bond or Bonds in any Authorized Denomination of the same maturity and in the same aggregate principal amount shall be issued to the transferee in exchange therefor as provided in the Bond Resolution and upon payment of the charges therein prescribed. The Issuer shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. The Issuer and the Paying Agent may deem and treat the person in whose name this Bond is registered on the Bond Register as the absolute owner he~of for the purpose of receiving payment of, or on account of, the principal or redemption price her~~ and interest due hereon and for all other purposes. The Bonds are issued in fully registered form m Al_J.thon:md--EYenominations. Authentication. This Bond shall not be valid or becomeK'>hligarory f~r any purpose or be entitled to any security or benefit under the Bond Resolution uini.l tne e&icate of :A:uthentication and Registration hereon shall have been lawfully executed by th~B.ond Regilltrar. IT IS HEREBY DECLARED AND ,CERTf.Flfil> that all acts, conditions, and things required to be done and to exist precedem to'and in the ii.ss~e of this Bond have been properly done and performed and do exist in due d regu ar pim atidi:Jhanner as required by the Constitution and laws of the State of Kansas, and that tbe'total in~btedness of the Issuer, including this series of bonds, does not exceed any constitutional or siMmory liini ion. / IN WITN11:SS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signature of its Chair and attested by the manual, electronic or facsimile signature of its Board Clerk, and its seal to be affixed hereto or imprinted hereon. SALINAAIRPORT AUTHORITY (SALINA, KANSAS) ATTEST: By: ~ b -Y\fur/))crt, t Boar Clerk 3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of Taxable General Obligation Bonds, Series 2023-A, of the Salina Airport Authority (Salina, Kansas), described in the within-mentioned Bond Resolution. Registration Date: _______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent Registration Number: 5349-085-060723-679 The following is a true an qpy of.the approving legal opinion of Gilmore & Bell, P.C., Bond Counsel, which was · s ofllie date of original issuance and delivery of such Bonds: GILMORE & BELL, P.C. Attorneys at Law 100 N. Main Suite 800 Wichita, Kansas 67202 Governing Body Salina Airport Authority (Salina, Kansas) UMB Bank, n.a. Kansas City, Missouri Re: $1,000,000 Taxable Genera] Ob]igation Bonds, Series 2023-A, of the Sa1ina Airport Authority (Salina, Kansas), Dated June 7, 2023 We have acted as Bond Counsel in connection with the issuance by the Salina Airport Authority (Salina, Kansas)(the "Issuer"), of the above-captioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defmed herein sha11 have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. 4 Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Bonds are payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds is exempt from income taxation by the State of Kansas. We express no opinion regarding federal tax consequences arising with respect to the Bonds. We express no opinion regarding the accuracy, completene~ ·or s 1ei~ of the Official Statement or other offering material relating to the Bonds ( except to tll e~t, if y, stated in the Official Statement). Further, we express no opinion regarding tax conseq ences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the Bood~and ~e.f oroeability thereof may be limited by bankruptcy, insolvency, reorganization, morator~ aruJ, ciher ~lar laws affecting creditors' rights generally and by equitable principles, whethe corrsid ell at w orin equity . .. This opiniw is givep as of its date, and we assume no obligation to revise or supplement this opinion to reflect ~'facts r circumstances that may come to our attention or any changes in law that may occur after the date of thfs opinion. GILMORE & BELL, P.C. 5 BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of$ _____ , standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do( es) hereby irrevocably constitute and appoint _________ as agent to transfer said Bond on the books of said Bond Registrar with full power of substitution in the premises. Dated ________ _ Name Social\Sec¥fity or Ta_wayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By _______________ _ CERTIFICATE OF BOARD CLERK STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) The undersigned, Board Clerk of the Salina Airport Authority (Salina, Kansas), does hereby certify that the within Bond has been duly registered in my office according to law as of June 7, 2023. By:~ l,. Y\ftfdJlC{l)t- B ard Clerk 6 CERTIFICATE OF COUNTY CLERK STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) The undersigned, County Clerk of Saline County, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of June 7, 2023. By:~~~m,~~£L~ ~/county Clerk CERTIFICATEOFSTATET . OFFICE OF THE TREASURER, STATE OF KANSAS STEVEN JOHNSON, Treasurer of dl: State jif Kansas, does hereby certify that a transcript of the proceedings leading up to the issuance ,o.ftnis ~o ::lias been filed in the office of the State Treasurer, and that this Bond was registered in such\;,ffk, according to law on ____________ _ 7 Certificate of Delivery This will certify that Gilmore & Bell, P.C., Wichita, Kansas has printed and delivered $1,000,000 in registered Bonds for: UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE SALINAAIRPORTAUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 The printed Bonds were delivered as one (1) piece numbered R-1. We also delivered two (2) SPECIMEN notes clearly marked as such. All spoilage and press proofs needed in our manufacture have been destroyed. Gilmore & Bell, P.C. AGREEMENT BETWEEN ISSUER AND AGENT $1,000,000 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 Gilmore & Bell, P.C. 05/16/2023 THIS AGREEMENT, dated as of June 7, 2023, between the Salina Airport Authority (Salina, Kansas), an airport authority and body politic (the "Issuer"), and the State Treasurer of Kansas, as Agent (the "Agent"). WHEREAS, for its lawful purposes, the Issuer has duly authorized the issue of the above- captioned bonds (the "Securities"), and the Issuer wishes the Agent to act as its Paying Agent, Bond Registrar, and Transfer Agent for the Securities: Now, therefore, it is hereby agreed as follows: I. APPOINTMENT Issuer hereby appoints or has heretofore appointed the State Treasurer of Kansas to act as Paying Agent, Bond Registrar and Transfer Agent for the Securities. The State Treasurer of Kansas hereby accepts its appointment as the Paying Agent, Bond Registrar and Transfer Agent. II. BASIC DUTIES A. Issuer or its duly authorized representative agrees to furnish Agent the name(s) and address( es) of the initial registered owner( s) of the Securities together with such registered owners' tax identification (social security) number(s), the maturity date(s), denomination(s) and interest rate(s) for each Security. B. Agent shall manually authenticate the originally issued Securities upon the written order of one or more authorized officers of Issuer. Thereafter, Agent shall manually authenticate all Securities resulting from transfer or exchange of Securities. C. Agent shall maintain an office in the City of Topeka, Kansas, where Securities may be presented for registration, transfer and exchange; and shall also maintain an office in the City of Topeka, Kansas, where Securities may be presented for payment. Agent shall keep a register of the Securities and their transfer and exchange. D. Agent may rely upon any document believed by it to be genuine and to have been signed or presented by the proper person. Agent need not investigate any fact or matter stated in the document. Agent undertakes to perform such duties and only such duties set forth in KS.A. 10-620 et seq., except as specifically provided in this Agreement. E. Agent shall notify the owners of the Securities upon default in payment of principal or interest on the Securities and the Agent shall have no duties or responsibilities thereafter. 600597 .20047\CLOSING DOCS V.2 III. COMPENSATION Issuer covenants and agrees to pay to Agent, as reasonable compensation for the services provided as Agent, an initial setup fee of $300, a registration fee of $30, plus a fee of $1,250, based on a percentage of the aggregate principal amount of the Securities as follows: 1/8 of 1 % (.125%) of the first $10,000,000 1/16 of 1 % ( .0625%) of the next $15,000,000 1/32 of 1 % (.03125%) of the next $25,000,000 1/64 of 1% (.015625%) of the next $50,000,000 1/128 of 1 % (.0078125%) over $100,000,000. This amount will be due at the time of registration unless such fee is to be paid from the proceeds of the bond issue in which case Issuer agrees to pay such fee within two (2) business days of the closing of the bond issue. In addition to the aforementioned fee, Issuer covenants and agrees to pay to Agent the fee as stated and required by K.S.A. 10-505 for performing the duties of paying the principal of the Securities. IV. STANDARD OF PERFORMANCE Issuer shall provide, or shall cause to be provided to Agent, a designation of whether its Securities are to be issued in certificated or uncertificated form, or both. A. STATEMENTS OF OWNERSHIP Agent agrees to provide Statements of Ownership to the owner of uncertificated Securities. Such Statements shall be in accordance with the standards set forth by the Attorney General. All Statements shall be issued in the denominations of $1,000 or $5,000 or integral multiples thereof except for one additional Security in another denomination, which additional Security shall mature in the initial maturity year of the series of the Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Agent shall at all times maintain an adequate supply of Statements of Ownership for any anticipated transfers or exchanges of the Statements. B . CERTIFICATED SECURITIES All certificated Securities issued by Issuer under this Agreement shall be in accordance with the standards set forth by the Attorney General and unless otherwise authorized by Agent, the principal thereof shall be payable only upon surrender of the Security to Agent. All certificates shall be issued in the denomination of $1,000 or $5,000 or integral multiples thereof except one authorized Security in another denomination which additional Security shall mature in the initial maturity year of the series of Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Issuer shall at Issuer's cost provide Agent with an adequate supply of certificates for any anticipated transfers or exchanges of the certificates. Issuer shall be responsible for the payment of the printing or other expenses for such certificates. Issuer shall be responsible for obtaining appropriate "CUSIP" nurnber(s) and shall notify Agent of each number(s) prior to the issuance of the applicable Securities. 600597.20047\CLOSING DOCS V.2 2 C. INTEREST CALCULATIONS Agent shall calculate interest on the basis of $1,000 and $5,000 units, or in the case of one odd denomination, calculate the unit separately. Each intermediate unit calculation is first determined, then rounded to the sixth decimal position; i.e. whenever the seventh decimal place is equal to or greater than five the sixth decimal place is increased by one. The final per unit calculation is subsequently rounded to two decimal positions. (See Attachment "A" for sample calculation.) D. SURRENDER Securities surrendered for payment, cancellation or partial redemption shall be cancelled by Agent and returned to Issuer in accordance with K.S.A. 10-111. E. TRANSFERS AND EXCHANGES 1. When Securities are presented to Agent for transfer or exchange, Agent shall so transfer or exchange such Securities if the requirements of Section 8-401 ( 1) of the Uniform Commercial Code are met. 2. In accordance with the authorizing Resolution or Ordinance of the Issuer (the "Bond Resolution"), payments of interest shall be made to the owner of record of each Security as of the close of business on the fifteenth day of the month preceding each interest payment date. The Agent shall make such payments to the record owner of each Security as set forth on the registration books maintained by Agent as of such date. 3. Agent shall not be required to transfer or exchange any Security during a period beginning on the day following the fifteenth day of the month preceding any interest payment date for such Securities and ending at the close of business on the interest payment date, or to transfer or exchange any Security selected or called for redemption in whole or in part subsequent to the date notice of such redemption is given in accordance with the Bond Resolution authorizing the Securities. F. REGISTRATION DATES AND FUNDS FOR PAYMENTS Date of Registration shall be affixed on the initial Securities. Subsequent transfers or exchanges shall bear a Date of Registration as of the date that all the required documentation is received at the Agent's official place of business. Issuer will provide funds to make any interest or principal payments in accordance with K.S.A. 10-130 and amendments thereto. Agent is hereby authorized to effect any semiannual payment of interest or any principal by charging the Issuer's Fiscal Agency account with Agent. G. REPLACEMENT OF SECURITIES If the owner of a Security claims that a Security has been lost, destroyed or wrongfully taken, Issuer shall issue and Agent shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met. Only Agent shall perform this function. An indemnity bond and affidavit of loss shall be provided to Agent and Issuer at the expense of the owner of the Security. Such indemnity bond and affidavit 600597.20047\CLOSING DOCS V.2 3 of loss must be sufficient in the judgment of Issuer and Agent to protect Issuer and Agent from any loss which any of them may suffer if the Security is replaced. Issuer may charge the Security owner for its expenses in the replacement of a Security. H. REDEMPTIONS Optional Redemption. If any Securities are to be redeemed pursuant to an optional redemption in accordance with their terms, Issuer agrees to give Agent at least fifteen (15) days written notice thereof prior to the notice to be given the Security owners. If there is no provision for notice to the Security owners, Issuer agrees to give at least thirty (30) days written notice to Agent. Notice of Redemption. Agent shall then notify, by ordinary mail, the owner of such Securities to be so redeemed. Agent shall select the Securities to be so redeemed. Agent shall not be required to exchange or register a transfer of any Security for a period of fifteen (15) days preceding the date notice is to be provided to the Security owners for the purpose of selecting Securities on a partial redemption. Further, in the event notice is given to Agent for a complete redemption of the Issue according to the terms of the Bond Resolution, Agent shall not be required to transfer or exchange any Security beginning on the day following the 15th day preceding the date set for redemption. I. MISCELLANEOUS Agent hereby acknowledges receipt of numbered Securities of Issuer (in a number equal to one Security for each maturity) for registration and exchange, and shall safeguard any "blank" Securities held for purpose of exchange or transfer. J. REPORTS Agent shall provide Issuer an annual report of the activity with respect to the issuance of Securities upon written request of Issuer. K. CONSTRUCTION This Agreement shall be construed in accordance with the laws of the State of Kansas and also the Bond Resolution authorizing the issuance of the Securities. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597.20047\CLOSING DOCS V.2 4 (SEAL) ATTEST: 600597 .2O047\CLOSING DOCS SALINAAIRPORT AUTHORITY :~™~~K Chafr / OFFICE OF THE TREASURER OF THE STATE OF KANSAS By e2f~8~ Deputy Director of Fiscal Services (Signature Page to Agreement Between Issuer & Agent) ATTACHMENT "A" SAMPLE $5,000.00000 ........................ Bond Unit X .06875 ........................ Interest Rate = 343.750000 Rounded to six decimal places I 360 ........................ Days per year = .954861 Rounded to six decimal places X 180 ........................ Day in interest period = 171.874980 (Rounded to second decimal= $171.87) Unit interest is then multiplied by the number of units in the maturity. 600597.20047\CLOSING DOCS V.2 A-1 • Blanket Issuer Letter of Representations [To be Completed by Issuer] JIU¥ 2. 1997 ·Attention: t.Tnderwrlting Department-Ellgibllity Tbe Depqsiloiy 1nut Company 55 Water Street1 50th Floor NewYork; NT 10041-0099 Ladieu and Gentlemeia: This Jetter sets forth our understanding with respeet to all issues {the -Sec:witiesM) that Issuer shall request be made <illglble for deposit.by The DepositoryTJ'l1$t Company {"OTC .. ). To tndl!Ce DTC tQ accept the Secudties as eligible {or deposit at DTC. and to act 1n JICC!Ordance with DTC's llules with re$pect to the Sccuri~. lssuer repn=uts to DTC that Issuer Will comply with the requirements $ta.ted in DTC's Operational .Amngements, as they may be amended from time to time. Note: Si;htdule A. co11,tai111 st2tements tua.t P'IC believes GC.'C:utatel)' describe me. the snethod or•~ 1xx&-·t1nby1:r.Wfe11of.securide:s dlstriblltedtfuvughMC.:ind catain =-tedffllllm. . Very truly yours, Salrna A.frport Author.tt::r • (ba!er') By: ~,.~i=",paluRl Cbm:leJ> Stevens. Jr;,.,. Cbail111BD {T~ll:N~klitl~) . 3237 Ara:lold Avcaue 1s~dlim> Sal..ma, l'a:nsas 674~1 (Cltr) (St;i,:) aJpl 913-827•3914 SCHEDULE A (To Blanket Issuer Leiter of Representations) SAMPLE OFFERING DOCUMENT LANGUAGE O.ESCRIBING BOOK-ENTRY~ONLY ISSUANCE (firepin:if by t>TC--hradu:ied mataial ntay ~ applicable only to eenain issues) 1, Tbe Depository Trust Company {"OTC"). New York. NY, will act as securities depository for the securities (the ••Securities"). The Securities will be iS:$Ued as fully•regi$tercd securities registered in the name ofCede .& Co. (DTC-s partnership nominee) or such other IUUne as may be reques~d by an aiJthorized 1epresentative Qf DTC. Oite fully, .. registered Security certificate will be issued f9r [each i$sue ofj the Securities, [each] in the aggregate prmcipal amc,unt of ,such is$ue, and will be depositc:d with DTC. [lf, however, the aggregate principal amount of [any] issue exceeds SS00 million. oQe certificate will be issued with respect to each $500 l)lillion of principal amount. and an additional certificate will be issued with respect to any remaining principal amoUllt ot'$UCh issue,] 2. OTC. tbe world's hugest secPJilies depository, is a limited-purpose trust company organized under the New York Banking Law, a ''banking organization" within the meaning oftbe New York B8llking Law, a member of the Pederal Reserve Systm, a "clearing corporation" within the meaning ofthe New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisiol$ of Section 17A of the Sec~nes Exchange Act of 1934. DTC bolds and provides asset servicing for over 3;5 nrlUion issues of U.S. and non:-U.S. equity issues, corporate and municipal debt issues, and money market i.b.strumimts (from over 100 ~untries) that DTC's participants (''Dire.ct Participants") deposit with DTC. DTC also fa~ilit.ates the post-trade settlement among Direct .ParticipJ).llt$ of sales and other securities tnlQsat:tions in deposited securities, through electronic computerized book-entty transfers and pledges between Direct Participants' accounts. This elimmates the need for physical . movement of securities certificates. Direct Participants include both U.S. and non•U.S. securities brokers and dealers, banks. trust compl!llies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidimy of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company f'or OTC, National Securities Clearing Corporation and Fixed Income Clearing. Corporation, all of which are registered clearing agencies. DTCC is owned by the users pf it$ regufated subsidiaries. Access to the PTC system is also available to others such as bQth U.S. and non-U.S. securities brokers and dealcts, banks, truSt companiei, and tlearing eoq,orations tha:t clear through or maintain !l custodial rclations~ip with a Direct Participant, either ditcctJy or indirectly ("Indirect Participants'"). DTC has Standatd & P9or's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securitjes and Exchange Comniission. More infomtation about DTC oan be found atwww.dtcc.torn and www.dtc.org. 3. Purchase$ of Securities under the DTC system rnust. be made by or through Direct Participants, which will receive a c::tedit for the Securities on OTC's recotds. The own~hip interest of each a~tQal purchaser of each Security ("Beneficial Owner") js in tum to be recorded on the J;)irect and Indirect Participants• records. Beneficial Owners will not receive written confinnation from DTC of their pwchase. Beneficial OwDers are~ however, expected to i:eceivc written confinnations provldi~g details of the transaction. as we11 as periodic statements of their holdiJ\gs, from the Direct <>r Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership mtel'C$ts in the Securities are to be accomplished by entries made on the books of D.irect and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership inter~ in Securities. except in the event that use of the book--entry system for the Securities is discontinued . . 4. To facilita:te subsequent transfers, all Securities depQsited by Direct Particip.ants With OTC are registered in the name of lYfC's partnership nominee, Cede & Cp.~ or such other name as may be requested by an authorized representative of DT<::. The deposit of Securities with OTC and their re;gistration in the name of Cede &. Co. or such other OTC nominee do not effect any change in beneficial ownership. OTC has no knowledge oftbe actual Beneficial Owners .ofthe Securities; DTC's records re.fleet only the identity of the Direct Participants to whos.e accounts such Securities are credited, which may or may not be the Beneficial Own.ers. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. BLOR 03125/08 ScHEl>ULEA (To Blanket Isi:uer Letter orReprcsentalions) 5. Conveyance of notices and other communications by DTC to Direct Participants. by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be sovemed by attangements among them, subject to any statutory or regulatory requirements as may be in effect from rime to time. [Beneficial Owners of Secµrities may wish to take certain st~s to augll'i:ent the transmission to them of -notices of significant e\'ettts with respect to the Secul'ities, s~cb -a,s redemptions, . tenders, defaults, and prQJ)Osed amendments tQ lhe Seturity documents. For ~pie, Beneficial Owners of ~urities may wish to ascerwn that the nomine(: holding the Securities for their benefit bas agreed to obtain and transmit notices. to Beneficial Owners. Jn the alternadve, Beneficial Owner:s may wish to provide their name$ and addresses. to the Jegi$trar and request that copies of notices be provid~ directly to them. J [6. Redemption .-iotices shall be sent to DTC, If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by Jot the •mount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neith.~ DTC nor Cede & Co. (nor any other DTC nominee) will ~nsent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMl Procedures. ·Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible alter the record date. The Onuuous Proxy 8.$slgns Cr.de .& Co. •s consenting or voting rights to those Direct Parti~ipaots to whose accounts Seetniti~ are credited on the rCCQtd date {identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co,, or such other nominee a,s may be requested ;by an authori2:ed representative of DTC. DTC't pnc:tice· is to credit Direct Participants• acco.unts upQn D1'C's receipt of funds lllld cc;µ:esponding detail infonnation from Issuer or Agent, on payable date in accordance with their respective holdings shown on OTC's records, Payinents by Participants to Beneficial Owners will be governed by stimditig instructions and customary pr.tctiee!l; as is the case with securities held for the accourits of et,!Stomers in bearer form or rtgisteted in "street name,'' and wilf be the responsibility of such Participant and tl0t of PT(;. Agent, or W;uer, subject to any statutory or regulatory require~ts jS may be in effect from time to tune. Payment of redemption pt-0ceeds, disttibutioilli, and dividend payments to Cede & Co. (or such other nominee M may be requested by an authorized rqm:scntative Qf DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility ofDTC, and disbursement of sucbpayments to the Beneficial Owners will be the t:esponsibility of Direct and lJidirect Participants. [9. A Beneficial Own~ shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Tender/R.emarketing) Agent;. and shall effect delivery ofsuch Secµrities by causing the Direct Participant to. lra,nsfer the Participant's interest in the Securities, on DTC's rec6tds. to [Tender/Remarketing] Agent The requirement f()r phY,:sicaJ delivery of Seeut:itles in connection with an optional tender or a mandatmy purchase will be deetned satlsfi.ed when the oWJ]ersliip rights in the Secuiities arc transferred by Direct Participants on DIC'$ records and followed by a book-entey credit of tend~d Securities to [TendertR.etnarketing] Agent's OTC accoµnt.] 10. DTC may discontinue providing its services as clepository with respect to th~ Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. · 11. Issuer may d~cide to discontinue '1SC of the system of book-entry-only tnmsfors through OTC (or a successor securities depository). In that event, Security cenificates will be printed and delivered to DTC. ' 12. The inform!ltion in this section conceming OTC and DTC's book-entry system has been obtained ftorn sources that Issuer believes to be reliable, but Issuer talces no responsibility for the accuracy thereof. BLOR 03/25/08 Moooy's INVESTORS SERVICE CREDIT OPINION 8 May 2023 Contacts Heather Guss + 1.214.979.6881 AVP-Analyst heather.guss@moodys.com Nicholas Lehman +1.781.672.1124 VP-Senior Analyst nicholas.lehman@moodys.com CLIENT SERVICES Americas Asia Pacific Japan EMEA 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-5454 .......... . . ..... .. .. .. . . . . .. ...... .. i:' ~' . ' .. l'.: ,, .. : If~ /:· :t, ··:1 'I ,,. r ; ·: ... ;,! . . l:., I : -•' I I• : ·~. . ,·:', : ,;., ··-· Salina Airport Authority, KS Update to credit analysis Summary U.S. PUBLIC FINANCE '! •• . . : ... l I ~·· • 1t ! . . -~", ·\ ... . .. ··.•· I ,..•~ ·, . . ;.I- ' -'., -~ The credit profile for Salina Aiq:1ort Authoritv KS (Aa3) benefits from a moderately sized and growing tax base that is coterminous with the City of Salina ("city", Aa3) and the airport's regional significance as a refueling stop due to its location in the middle of the country and its long runway. Though resident income levels are below average, the cost of living is also low. Despite some future debt plans, the debt and pension burdens will remain manageable. The authority is partially reliant on economically sensitive revenue, and while historically fund balance and liquidity have been volatile and narrow, liquidity has stabilized recently and is expected to remain around current levels given a positive revision to the cash policy. The financial position improved in fiscal 2021 -aided by federal aid -and fiscal 2022 unaudited results are positive. Upon approval of the city council, the authority can levy 3 mills for operations, which has never been accessed, but the flexibility is a credit strength. Credit strengths » Regional significance due to location and long runway » Ability to levy an additional 3 mills with city council approval Credit challenges » Reliance on economically sensitive revenues for operations Rating outlook Outlooks are usually not assigned to local government credits with this amount of debt. Factors that could lead to an upgrade » Significant economic and tax base growth » Significant growth in unrestricted fund balance and liquidity Factors that could lead to a downgrade » Contraction in the economy and tax base » Weakening of fund balance or liquidity » Significant increase in leverage 2 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Key indicators Exhibit 1 Salina Airport Authority, KS 2017 2018 2019 2020 2021 Economy/Tax Base Total Full Value ($000) $3,046,949 $3,097,885 $3,150,409 $3,294,116 $3,325,194 Population 47,513 47,230 46,998 46,706 46,896 Full Value Per Capita $64,129 $65,591 $67,033 $70,529 $70,906 Median Family Income(% of US Median) 88.3% 86.7% 91.3% 85.0% 84.1% Finances Operating Revenue ($000) $4,280 $4,848 $4,844 $5,294 $5,620 Fund Balance ($000) $2,658 $225 $1,450 $3,209 $6,469 Cash Balance ($000) $1,614 $255 $655 $2,256 $5,304 Fund Balance as a % of Revenues 62.1% 4.6% 29.9% 60.6% 115.1% Cash Balance as a % of Revenues 37.7% 5.3% 13.5% 42.6% 94.4% Debt/Pensions Net Direct Debt ($000) 24,096 $21,434 $22,430 $23,562 $25,680 3-Year Average of Moody's ANPL ($000) $1,703 $1,807 $2,010 $2,255 $2,445 Net Direct Debt/ Full Value(%) 0.8% 0.7% 0.7% 0.7% 0.7% Net Direct Debt/ Operating Revenues (x) 5.6x 4.4x 4.6x 4.Sx 4.6x Moody's -ANPL (3-yr average) to Full Value(%) 0.1% 0.1% 0.1% 0.1% 0.1% Moody's -ANPL (3-yr average) to Revenues (x) 0.4x 0.4x 0.4x 0.4x 0.4x Sources: US Census Bureau, Salina Airport Authority's financial statements and Moody's Investors Service Profile The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling Air Force Base, which was closed by the United States Department of Defense in 1965. The authority operates and develops the Salina Regional Airport and the Salina Airport Industrial Center. The authority is coterminous with the City of Salina, the county seat of Saline County (Aa2). The city is the seventh largest city in Kansas (Aa2 stable), with an estimated population of 46,900. Detailed credit considerations Economy and tax base The authority's tax base is projected to remain stable over the near term due to the City of Salina's commercial, retail and medical importance to north central Kansas. Assessed valuations averaged a 3.6% annual increase over the past five years, including a significant 9.2% increase in fiscal 2023 to $3.7 billion. Residential development, as well as private investment to construct additional warehouses, will drive future tax base growth. With a 12,300 foot runway and with its central geographic location, the airport sees a variety of aviation use. Daily commercial service to Denver (Aaa stable) and Chicago (Baa3 stable) is provided by SkyWest Airlines operating as United Express (United Airlines Inc. rated Ba1 stable). The airport also serves as an Airport of Embarkation/Debarkation for the Fort Riley Army installation located 60 miles east of Salina. The airport is also available for corporate, air freight and flight training activity. Popular as a mid-continent fuel stop, the authority benefits from a fuel surcharge collected on each gallon of fuel purchased from the authority's tenant and fixed based operator, Avflight Salina, which delivered 2.4 million gallons of fuel in 2022. The authority owns 1.2 million square feet of manufacturing, warehousing and office space, and is home to over 125 businesses and organizations. Currently, the authority's manufacturi,ng space is 89% leased when accounting for leases that exceed one year (up from 82% in 2021. The three largest tenants -1 Vision Aviation, Avflight Salina, and Kansas Erosion Products -accounted for 32.7% of Th,s publ,cat,on does not announce a credit rating act,on. For any credit ratings referenced in this publicat,on, please see the issuer/deal page on https //ratings.moodys.com for the most updated c1edit rating action 1nformat1on and rating history 8 May 2023 Salina Airport Aut~ority, KS: Update to credit analysis MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE leasing revenue in 2022. The airport also has a partnership with Kansas State Uniyg_rsity's (Aa3 stable) Polytechnic Program which offers degrees in professional flight training, airframe and power plant maintenance, airport management, and avionics. Financial operations and reserves Financial operations improved in fiscal 2021 (ending Dec. 31), as expected, and reserves will remain around current levels based on positive unaudited fiscal 2022 results and year-to-date fiscal 2023 results. The authority receives over half of its revenue (excluding ad valorem taxes that pay debt service) from multiyear leases, which provided some stability in fiscal 2020 despite the steep decline in air traffic. But the remaining operating revenue is economically sensitive because it comes from fees from aircraft landing, a fuel surcharge on each gallon of fuel provided to aircraft, and events that the airport holds annually. Additionally, the airport receives $200,000 annually from the Department of Defense for serving as a forward operating location (FOL) for military aviation units. In fiscal 2021, the authority realized an operating surplus of about $83,000 (net of depreciation). Total cash improved to $5.3 million from $2.3 million (partially due to federal stimulus aid); when removing cash that is restricted for debt service and unspent bond proceeds, unrestricted cash totaled $1.8 million. The authority has a formal policy to maintain unrestricted cash of $1.8 million, which is equal to about 70% of fiscal 2020 operating expenses (net of debt service and depreciation). Fiscal 2022 unaudited results reflect another surplus of about $52,000 and an improvement in cash to about $2 .1 million. The fiscal 2023 budget included a $33,000 surplus and cash is projected to be back to $1.8 million at year-end. The authority can levy up to three mills for operations, subject to approval of Salina's city council. Management has never utilized the levy and currently has no plans to do so. While the limit does not apply to the authority's ability to levy unlimited taxes for the repayment of its general obligation debt, it provides revenue raising flexibility if needed. The authority continues to levy 1 mill for grants due to the achievement of 10,000 enplanements annually. The milestone altered the airport's designation to that of a "primary" airport by the FAA and made the airport eligible for $1 million in FAA grants. The revenue generated by the 1 mill relieves pressure on airport operations to match grant proceeds. Debt and pensions The debt burden will remain manageable because of modest tax base growth and limited future debt plans over the next five years. Post-issuance of the Series 2023 A, Band C bonds, the debt burden will be 0.9% of fiscal 2023 full value. The authority needs to replace its underground fuel storage tanks, and while the majority of the cost will be paid for with FAA grants, the authority will likely be responsible for $1.5 -$3.5 million of the total project costs of $8.5 million; the authority will issue GO notes for its portion. Further, the authority may issue leasehold revenue bonds for various development projects, but the debt would be paid for by the state and developers. Legal security The bonds are general obligations of the authority and are payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable tangible property, real and personal, within the territorial limits of the authority, which is coterminous with the City of Salina. Pensions and OPEB The authority participates in the Kansas Public Employees Retirement System {KPERS), a cost-sharing multiple-employer defined benefit pension plan. Moody's three-year average adjusted net pension liability (ANPL) for the authority is $2.5 million, or 0.4 times 2021 operating revenue and 0.1% of full value. Moody's ANPL reflects certain adjustments we make to improve comparability of reported pension liabilities. The adjustments are not intended to replace the authority's reported pension information, but to improve comparability with other rated entities. We determined the authority's share of liability for the cost-sharing plans administered under KPERS in proportion to its contributions to the plan. ESG considerations Environmental The local government sector generally has low exposure to environmental risks. According to data from Moody's ESG Solutions, the district has high exposure to water stress, medium exposure to heat stress and wildfires, and low exposure to floods. 3 8 May 2023 Salina Airport Authority, KS: Update to credit analysis MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Social Resident income levels are slightly below average with a median family income equal to about 85% of the US median; however, this is mitigated by a below average cost of living with median home values equal to 57% of the US median. Population has been relatively stable due to the city's status as a commercial hub for north central Kansas. The city's 3.3% unemployment rate (Feb. 2023) remained favorable relative to the nation (3 .9%). Governance By statute, the Salina City Commission appoints a five-member authority board of directors. The authority approves its own budget (subject to city consent for any General Purpose Operations levy) and is responsible for repaying its own debt. The mill levy for debt service is set by the authority's board and is not subject to oversight or approval requirements by any other entity. The board appoints the executive director who is the chief executive officer of the authority. The authority practices good governance by operating lean to keep the overall tax rate down, and to rely on operating revenue to fund operations so as not to require the need for the additional three mill levy for operations. 4 8 May 2023 Salina Airport Authority, KS: Update to credit analysis 5 MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE © 2023 Moody's Corpuration, Moody's Investors SPrvlCe, Inc, Moody's Analytics, Inc. dnd/or their licensor, and aft1l1ate, (collectively, "MOODY'S"). 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REPORT NUMBER 1366643 8 May 2023 Salina Airport Authority, KS: Update to credit analysis MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE CLIENT SERVICES Americas Asia Pacific Japan EMEA Moooy's INVESTORS SERVICE 6 8 May 2023 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-S454 Salina Airport Authority, KS: Update to credit analysis CLOSING CERTIFICATE $1,000,000 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 Gilmore & Bell, P.C. 05/16/2023 The undersigned Chair and Board Clerk of the Salina Airport Authority (Salina, Kansas) (the "Issuer"), make this Certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above-described bonds (the "Bonds"); and certify as of June 7, 2023 (the "Issue Date"), as follows: 1. Meaning of Words and Terms. Capitalized words and terms used in this Certificate, unless otherwise defined in this Certificate or the context requires otherwise, have the same meanings ascribed to such words and terms in the Bond Resolution (defined below) authorizing the Bonds. 2. Transcript of Proceedings. The transcript of proceedings relating to the authorization and issuance of the Bonds (the "Transcript"), furnished to the Purchaser of the Bonds, is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript; and the facts stated in the Transcript still exist. In each instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Board Clerk. All certifications made by the Issuer in the Transcript Certificate dated May 17, 2023 are true and correct as of this date and are incorporated in this Certificate by reference. 3. Authorization and Purpose of the Bonds. The Issuer is issuing and delivering the Bonds simultaneously with the delivery of this Certificate, pursuant to and in full compliance with the Constitution and statutes of the State, including particularly K.S.A. 27-315 to 27-326, inclusive, as amended, and Resolution No. 23-07 of the Issuer duly adopted by the Governing Body of the Issuer on May 17, 2023 (the "Bond Resolution") for the purpose of paying costs of issuance and: (a) paying a portion of the costs of certain capital improvements (the "Improvements") and (b) retiring the following temporary notes of the Issuer, issued to temporarily finance the Improvements (the "Refunded Notes"): Description Taxable G.O. Temporary Notes Series 2022-1 Dated Date July 7, 2022 Maturity Dates July 1, 2023 Amount $1,000,000 4. Security for the Bonds. The Bonds are general obligations of the Issuer payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are pledged under the Bond Resolution to the payment of the principal of and interest on the Bonds. In the Bond Resolution, the governing body of the Issuer has covenanted to annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, by levying and collecting the necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. 600597.20047\CLOSING DOCS V.2 5. Sale of Bonds. The Bonds have been sold at rates not in excess of the limitations set forth in KS.A. 10-1009. The Notice of Bond Sale dated April 19, 2023 and included in the Transcript constitutes a full true and correct copy thereof. A copy of such Notice of Bond Sale and Preliminary Official Statement was sent to prospective purchasers of the Bonds, and to all other persons and firms requesting copies of such Notice of Bond Sale and Preliminary Official Statement. The total proceeds to be received by the Issuer from the sale of the Bonds are as evidenced in Exhibit A attached to this Certificate, the purchaser's receipt and representations are contained in Exhibit B attached to this Certificate, and the debt service schedule for the Bonds is contained in Exhibit C attached to this Certificate. The net proceeds received from the sale of the Bonds shall be deposited simultaneously with the delivery of the Bonds as follows: (a) $62,529.08 shall be deposited in the Costs oflssuanceAccount. (b) The remaining balance of the proceeds derived from the sale of the Bonds in the amount of $933,580.92 shall -be deposited in the Redemption Fund. In addition to the proceeds of the Bonds, the Issuer shall contribute additional funds in the amount of $87,107.83 to retire the Refunded Notes. 6. Official Statement. The Official Statement contained in the Transcript constitutes a full, true and correct copy of the Official Statement relating to the Bonds. To the best of our knowledge, the Official Statement, other than the sections entitled "The Depository Trust Company," "Ratings," "Legal Matters," "Tax Matters," "Municipal Advisor," and Appendices B, and C-1 , about which the Issuer expresses no opinion, is true in all material respects, and does not contain any untrue statement of a material fact or does not omit to state a material fact, necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As of this date there has been no material adverse change in the financial condition or the financial affairs of the Issuer since the date of the Official Statement. No other event has occurred which is necessary to be disclosed in the Official Statement in order to make the statements therein not misleading in any material respect as of the date of this Certificate. The Issuer has previously caused to be delivered to the Purchaser copies of the Official Statement. 7. Continuing Disclosure Undertaking. The Issuer has heretofore executed a Continuing Disclosure Undertaking (the "Disclosure Undertaking"), wherein the Issuer has covenanted to disseminate such information as is required in accordance with the provisions of the SEC Rule and the Disclosure Undertaking. In the Bond Resolution, the Issuer has covenanted to apply the provisions of the Disclosure Undertaking to the Bonds. A copy of the Disclosure Undertaking is contained in the Transcript. 8. Non-Litigation. There is no controversy, action, suit, proceeding, or to the best of our knowledge, any inquiry or investigation at law or in equity or before or by any public board or body pending or, to the best or our knowledge, threatened against or affecting the Issuer, its officers or its property, or, to the best of our knowledge, any basis therefor questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; (f) the levy and collection of an ad valorem property tax to pay the principal of and interest on the Bonds; or (g) the federal or state tax-exempt status of the interest on the Bonds; wherein any unfavorable decision, ruling or finding would adversely affect the Issuer, the transactions contemplated by the Bond Resolution or the Official Statement, or the validity or enforceability of the Bonds, which are not disclosed in the final Official Statement. 600597.20047\CLOSING DOCS V.2 2 WITNESS our hands and the seal of the Issuer. Signature Official Title Chair (SEAL) 7 ~u -YVU1ibor&-Board Clerk 600597.20047\CLOSING DOCS (Signature Page to Closing Certificate) EXHIBIT A RECEIPT FOR PURCHASE PRICE $1,000,000 SALINAAIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 The undersigned Director of Administration and Finance of the Salina Airport Authority this day received from UMB Bank, n.a., Kansas City, Missouri, the original purchaser of the above-described bonds (the "Bonds"), the full purchase price of the Bonds, said purchase price and net amount received by the Issuer being calculated as follows: Principal Amount .................................. . Less Discount/Compensation Underwriter's $1,000,000.00 -3,890.00 Total Purchase Price ................ .. Less Good Faith Deposit ...................... . Net Amount Received .............. . DATED: May 3, 2022. 600597.20047\CLOSING DOCS A-1 $996,110.00 -20.000.00 $976,110.00 SALINAAIRPORT AUTHORITY (SALINA, KANSAS) ByVOcCIJ1£ <t~U Director of Administration & Finance EXHIBITB RECEIPT AND REPRESENTATION $1,000,000 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2023-A DATED JUNE 7, 2023 This Receipt and Representation (the "Certificate") is being delivered by UMB Bank, n.a., Kansas City, Missouri (the "Purchaser") in connection with the issuance of the above-described bonds ( the "Bonds"), being issued on the date of this Receipt by the Salina Airport Authority (Salina, Kansas) ( the "Issuer"). Based on its records and information available to the undersigned which the undersigned believes to be correct, the Purchaser represents as follows: 1. Authorized Representative. The undersigned is the duly authorized representative of the Purchaser. 2. Receipt for Bonds. The Purchaser acknowledges receipt by the Depository Trust Company on behalf of the Purchaser on the Issue Date of the Bonds consisting of fully registered "book- entry-only" bonds in Authorized Denominations in a form acceptable to the Purchaser. 3. Public Offering. The Purchaser confirms that it has offered the Bonds to the public on or before the Sale Date at the offering price or prices, or at the corresponding yield or yields, set forth in the Schedule attached hereto. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600597.20047\CLOSING DOCS V.2 B-1 Dated: June 7, 2023. UMB BANK, N.A. KANSAS CITY, MISSOURI ~~R By:---------- 600597.20047\CLOSING DOCS V.2 (Signature Page to Purchaser's Receipt) SCH.BOULE TO RECEIPT ANO HE.PHESENTATIOH Stated Maturity September 1 2032 600597.20047\CLOSING DOCS V.2 Principal Amount $1,000,000 Annual Rate of Interest 4.30% Initial Offering Price 100% (Signature Page to Purchaser's Receipt) EXHIBIT C DEBT SERVICE SCHEDULE AND PROOF OF YIELD 600597 ,.20047\CLOSING DOCS Y.2 EXHIBITC DEBT SERVICE SCHEDULE AND PROOF OF YIELD 6O0597.2O047\CLOSING DOCS V.2 C-1 May 16, 2023 3:03 pm Prepared by Gilmore & Bell Page 1 TAXABLE BOND DEBT SERVICE Salina Airport Authority (Salina, Kansas) Taxable General Obligation Bonds Series 2023A Dated Date 06/07/2023 Delivery Date 06/07/2023 Period Annual Bond Total Ending Principal Coupon Interest Debt Service Debt Service Balance Bond Value 06/07/2023 1,000,000 1,000,000 03/01/2024 31,533.33 31,533.33 1,000,000 1,000,000 09/01/2024 21,500.00 21,500.00 53,033.33 1,000,000 1,000,000 03/01/2025 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2025 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2026 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2026 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2027 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2027 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2028 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2028 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2029 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2029 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2030 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2030 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2031 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2031 21,500.00 21,500.00 43,000.00 1,000,000 1,000,000 03/01/2032 21,500.00 21,500.00 1,000,000 1,000,000 09/01/2032 1,000,000 4.300% 21,500.00 1,021,500.00 1,043,000.00 1,000,000 397,033.33 1,397,033.33 1,397,033.33 This infomuulon is provjded based on the factual infonnation and assumptious provided to Gilmore & Bell, P.C. by a party to or a representative of o party to the pcoposed transaction. This infonuatiou is intended to provide factual infon:nation only and is provided in conjunction with m1r legal representation. It is not intended as financial advice oi-a fiuancial recouunendation to any patty. Giliuore & Bell, P.C. is not a financial advisor or a "municipal advisor,. as defined in the Semuitles Exchange Act of 1934, as amended. May 16, 2023 3:03 pm Prepared by Gilmore & Bell TAXABLE BOND PRICING Salina Airport Authority (Salina, Kansas) Taxable General Obligation Bonds Series 2023A Maturity Bond Component Date Amount Rate Yield Price Serial Bond: 09/01/2032 1,000,000 4.300% 4.300% 100.000 1,000,000 Dated Date 06/07/2023 Delivery Date 06/07/2023 First Coupon 03/01/2024 Par Amount 1,000,000.00 Original Issue Discount Production 1,000,000.00 100.000000% Underwriter's Discount (3,890.00) (0.389000%) Purchase Price 996,110.00 99.611000% Accrued Interest Net Proceeds 996,110.00 Page2 This information is provided based on the factual information and assumptions provided to Gilmore & Bell, P .C. by a party to or a representative of e party to the proposed transaction. This infonnation is intended to provide factual inf01mation only and is provided in conjunction with our le:gal rep1·ese11tat:ion. It is not intended as firumcial advice or a financial recmwnendation lo any paity. Giliuore & Bell, P.C. is not a fl.I\ancial advisor or a "municipal advisor~' as def"wed in the Secudties E..xchange Act of 1934, as amended. May 16, 2023 3:03 pm Prepared by Gilmore & Bell PROOF OF YIELD ON TAXABLE BONDS Salina Airport Authority (Salina, Kansas) Taxable General Obligation Bonds Series 2023A Date Debt Service 03/01/2024 31,533.3.3 09/01/2024 21,500.00 03/01/2025 21,500.00 09/01/2025 21,500.00 03/01/2026 21,500.00 09/01/2026 21,500.00 03/01/2027 21,500.00 09/01/2027 21,500.00 0.3/01/2028 21,500.00 09/01/2028 21,500.00 03/01/2029 21,500.00 09/01/2029 21,500.00 03/01/2030 21,500.00 09/01/2030 21,500.00 03/01/2031 21,500.00 09/01/2031 21,500.00 03/01/2032 21,500.00 09/01/2032 1,021,500.00 1,397,033.33 Proceeds SummaQ Delivery date Par Value Target for yield calculation Present Value to 06/07/2023 @ 4.297979123lo/o 30,565.15 20,401.45 19,972.25 19,552.08 19,140.75 18,738.07 18,343.86 17,957.94 17,580.15 17,210.30 16,848.23 16,493.78 16,146.79 15,807.10 15,474.55 15,149.00 14,830.30 689,788.24 l,000,000.00 06/07/2023 1,000,000.00 1,000,000.00 Page 3 This information is provjded based on the factual information and assumptions provided to Gilmore & Bell, P.C. by a party to 01· a representative of 11 party to the proposed transaction. This infonnatioll is intended to provide :fi:tctual infoanation only and is provided in conjunction with our legal represematlon. It is not intended as financial advice or a fill.fillcial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a "municipal ad-.riso1·" as def'wed in the Securities Exchange Act of 1934~ as amended. Governing Body Jj GILMO:R_EBELL One Main Place -100 North Main, Suite 800 Wichita, Kansas 67202-1311 (316) 267-2091 / (316) 262-6523 FAX/ gilmorebell.com June 7, 2023 Salina Airport Authority (Salina, Kansas) UMB Bank, n.a. Kansas City, Missouri Re: $1,000,000 Taxable General Obligation Bonds, Series 2023-A, of the Salina Airport Authority (Salina, Kansas), Dated June 7, 2023 We have acted as Bond Counsel in connection with the issuance by the Salina Airport Authority (Salina, Kansas)(the "Issuer"), of the above-captioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Bonds are payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds is exempt from income taxation by the State of Kansas. We express no opinion regarding federal tax consequences arising with respect to the Bonds. We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth in this opinion. Salina Airport Authority (Salina, Kansas) Taxable General Obligation Bonds $1,000,000 -Series 2023-A Dated June 7, 2023 Page2 The rights of the owners of the Bonds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. MLW:paj 600597 .20047\0PINION r I I I I' I STATE OF KANSAS OFFICE OF THE ATTORNEY GENERAL KRISW. KOBACH ATTORNEY GENERAL The Honorable Steven Johnson State Treasurer June 7, 2023 Landon State Office Building, Room 201 N Topeka, KS 66612 Dear Mr. Johnson: MEMORIAL HALL 120 SW 10TH AVE., 2ND FLOOR TOPEKA. KS 66612-1597 (785) 296-2215 • FAX (785) 296-6296 WWW.AG.'KS,GOV Pursuant to K.S.A. 10-108, basic or supplemental transcript material is hereby approved and you may register the following: Municipality: Salina Airport Authority (Salina, Kansas) Description: Taxable General Obligation Bond Series: 2023-A Numbered: Registered Dated: June 7, 2023 Aggregate Amount: $1,000,000.00 Date of First Payment: March 1, 2024 Fiscal Agent: Kansas State Treasurer Sincerely, OFFICE OF THE ATTORNEY GENERAL KRIS W. KOBACH RDS:sb cc: Kasey Windhorst, Clerk Gilmore & Bell-Wichita lTiith meyGeneral STIF EL May 31, 2023 REVISED CLOSING MEMORANDUM TO: See Distribution List FROM: David Arteberry RE: Bond Issue Closing Arrangements NAME OF ISSUER: AMOUNT, NAME AND DATE OF ISSUE: TIME, DATE AND PLACE OF CLOSING: SETTLEMENT AMOUNT: METHOD OF FUNDS TRANSFER: Salina Airport Authority Salina, Kansas (the "Authority'') $1,000,000 Salina Airport Authority Taxable General Obligation Bonds Series 2023-A Dated June 7, 2023 (the "Series 2023-A Bonds") 10:00a.m. Wednesday, June 7, 2023 Par Amount of Series 2023-A Bonds Less: Good Faith Deposit Less: Underwriter's Discount Net Amount Due at Closing Wire Transfer of Funds $1,000,000.00 (20,000.00) (3,890.00) $976,110.00 4801 Maio Street, Suite 530 I Kansas City, Missouri 64112 I (816) 203-8728 main Stifel, Nicolaus & Company, Incoiporated I Member SIPC & NYSE I www.stifel.com WIRE TRANSFER INSTRUCTIONS: (UMB Wire #1) (UMB Wire #2) DISBURSEMENT OF FUNDS: (State Treasurer) BOND DELIVERY INSTRUCTIONS: DELIVERY OF TRANSCRIPT AND LEGAL OPINION: PAYMENT OF ISSUANCE COSTS: On Wednesday, June 7, 2023, UMB Bank, N.A. shall wire transfer $933.580.92 to: U.S.Bank:N.A. ABA #: 1010-0018-7 For credit to State Treasurer Operating Account Account#: 145592399581 For further credit to Salina Airport Authority Attn: Shauna Wake On Wednesday, June 7, 2023, UMB Bank, N.A. shall wire transfer $42,529.08 to: U.S. Bank N.A. ABA #: 1010-0018-7 For credit to MIP Account Account#: 145592399656 For further credit to Salina Airport Authority Attn: Shauna Wake The State Treasurer shall use the $933,580.92 received from UMB along with $5,739,123.39 of proceeds received from the sale of the Authority's Series 2023-C Bonds ($6,672,704.31 total) to redeem the following outstanding temporary notes of the Authority: General Obligation Temporary Notes, Series 2020 General Obligation Temporary Notes, Series 2021-1 General Obligation Temporary Notes, Series 2022-1 Total $2,102,717.25 3,549,298.31 1,020,688.75 $6,672,704.31 The Authority deposit the $42,529.08 received from UMB Bank, N.A. along with the good faith deposit for the Series 2023-A Bonds of $20,000.00 (total $62,529.08) into the Costs oflssuance Account created pursuant to the Series 2023-A Bond Resolution adopted by the Authority on May 17th• The Bonds will be delivered to the Depository Trust Company at least one business day in advance of closing. The transcripts and legal opinions will be delivered by Gilmore & Bell upon closing. All costs associated with the issuance of the Series 2023-A Bonds will be paid by the Authority upon presentation of the proper invoices from monies held in the Series 2023- A Cost oflssuance Account. 4801 Main Street, Suite 530 I Kansas City, Missouri 641121 (816) 203-8728 main Stifel, Nicolaus & Company, Incorporated I Member SJPC & NYSE I www.stifel.com