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Transcript of Proceedings Salina KS (GO Int Imp Bonds) 2024-A_600596-20255_MLWTRANSCRIPT OF PROCEEDINGS AUTHORIZING THE ISSUANCE OF $10,970,000 CITY OF SALINA, KAN_SAS Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Legal Opinion Gilmore & Bell, P.C. Wichita, Kansas 600596.20255\CLOSING DOCS DATED JULY 2, 2024 $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 CLOSING LIST The transcript of proceedings will be prepared in electronic format unless otherwise noted, for the above referenced issue (the "Bonds"), and distributed as follows: 1. City of Salina, Kansas (the "Issuer") [Original+ electronic] 2. Greg Bengtson, Esq., Clark, Mize & Linville Chartered, Salina, Kansas ("Issuer's Counsel") 3. Attorney General of the State of Kansas [Original] 4. State Treasurer, Topeka, Kansas (the "Paying Agent") 5. UBS Financial Services Inc., New York, New York (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. Proceedings Relating to the Official City Newspaper • Minutes of the governing body meeting evidencing first reading of Charter Ordinance No.42 • Minutes of the governing body meeting evidencing passage of Charter Ordinance No. 42 • Charter Ordinance No. 42 exempting the City from the Provisions of K.S.A. 64-101 • Affidavit of Publication of Charter Ordinance No. 42 • Minutes of the governing body meeting evidencing adoption of Resolution No. 23-8180 • Resolution No. 23-8180 designating the City of Salina, Kansas website as the official City newspaper • Certificate of No Protest 2. Lakeview Estates Addition No. 2 Phase 1 • Project estimate • Map of Improvement District • Petition • Minutes of the governing body meeting evidencing adoption of Resolution No. 22-8028 • Resolution No. 22-8028 authorizing improvements (recorded) • Affidavit of Publication of Resolution No. 22-8028 600596.20255\CLOSING DOCS 3. Magnolia Hills Estates Addition No. 2, Phase 2 • Project estimate • Map of Improvement District • Petition • Minutes of the governing body meeting evidencing adoption of Resolution No. 22-8044 • Resolution No. 22-8044 authorizing improvements (recorded) • Affidavit of Publication of Resolution No. 22-8044 4. Wheatland Valley Addition, Phase 1 • Project estimate • Map of Improvement District • Petition • Minutes of the governing body meeting evidencing adoption of Resolution No. 21-7964 • Resolution No. 21-7964 authorizing improvements (recorded) • Affidavit of Publication of Resolution No. 21-7964 5. Fire Apparatus • Excerpt of Minutes of the governing body meeting evidencing adoption of Resolution No. 23-8169 • Resolution No. 23-8169 declaring it necessary to acquire firefighting equipment • Notice of Intent and Affidavit of Publication of Notice of Intent • Certificate of No Protest SPECIAL ASSESSMENT PROCEEDINGS 6. Excerpt of Minutes of the governing body meeting accepting the following documents: • Statement of Final Costs • Assessment Roll Certification • Notice of Public Hearing • Form of Notice of Hearing and Statement of Cost Proposed to be Assessed 7. Affidavit of Publication -Notice of Public Hearing 8. Certificate of Mailing -Notice of Public Hearing 9. Excerpt of Minutes of the governing body meeting evidencing passage of Ordinance No. 24-11202 10. Ordinance No. 24-11202 levying special assessments 11. Affidavit of Publication of Ordinance No. 24-11202 12. Certificate of Mailing -Notice of Assessment 13. Certificate of Treasurer -Assessments Paid in Cash 600596.20255\CLOSING DOCS ii PROCEEDINGS AUTHORIZING THE SALE AND ISSUANCE OF THE BONDS 14. Excerpt of Minutes of the governing body meeting evidencing adoption of Resolution No. 24-8207 15. Resolution No. 24-8207 authorizing the offering for sale of the Bonds 16. Notice of Bond Sale, Preliminary Official Statement and Certificate Deeming Preliminary Official Statement Final 17. Affidavit of publication of the Summary Notice of Bond Sale in the Salina Journal 18. Affidavit of publication of the Summary Notice of Bond Sale in the Kansas Register 19. Official Statement 20. Continuing Disclosure Undertaking 21. Excerpt of Minutes of the governing body meeting evidencing opening of the bids, acceptance of the best bid of the Original Purchaser, passage of Ordinance No. 24-11210 and adoption of Resolution No. 24-8217 22. Ordinance No. 24-11210 authorizing the issuance of the Bonds 23. Affidavit of publication of Ordinance No. 24-11210 24. Resolution No. 24-8217 prescribing the form and details of the Bonds 25. Ordinance No. 16-10838 and Resolution No. 16-7380 authorizing the Series 2016-ABonds CLOSING DOCUMENTS 26. Transcript Certificate Exhibit A -Statement of Costs Exhibit B -Schedule of Outstanding General Obligation Indebtedness 27. Uniform Facsimile of Signature Certificates 28. Authorization of State Treasurer to use facsimile signature and seal 29. Specimen Bond and Bond Printer's Certificate 30. Agreement Between Issuer and Agent 31. DTC Blanket Letter of Representations 32. Rating Letter -Moody's 33. Closing Certificate 600596.20255\CLOSING DOCS iii 34. Federal Tax Certificate Exhibit A -Internal Revenue Service Form 8038-G and evidence of filing Exhibit B -Receipt for Purchase Price Exhibit C -Receipt and Representation Exhibit C-1 -Certificate of Municipal Advisor Exhibit D -Description of Property Comprising the Financed Improvements and List of Reimbursement Expenditures Exhibit E -Sample Annual Compliance Checklist Schedule 1 -Debt Service Schedule & Proof of Yield LEGAL OPINIONS 35. Approving legal opinion of Gilmore & Bell, P.C. 36. Approval letter of Attorney General MISCELLANEOUS DOCUMENTS 37. Closing Letter * * * * * 600596.20255\CLOSING DOCS lV CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS August 14, 2023 4:00 p.m. Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of tp:e Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A. roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a ·quorum: Mayor Michael L. Hoppock (presiding), Trent W. Davis, M.D ., Bill Longbine and Karl Ryan. Greg Lenkiewicz arrived at 4:03 p.m. Also present: Mike Schrage; City Manager; Jacob Wood, Deputy City Manager; Shawn Henessee, Assistant City Manager; Greg Bengtson, City Attorney; and Nikki Goding, Deputy City Clerk. AWARDS AND PROCLAMATIONS None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (5.1) Approve the minutes of the meeting of August 7, 2023. 2J.;0227 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve the consent agenda as presented. Aye: (4). Nay (0). Motion carried. This motion was carried prior to Commissioner Lenkiewicz' s arrival. ADMINJSTRA TION (6.1) First reading of Ordinance No. 23-11165 levying special assessments against certain lots of property to pay the cost of abatement of nuisances. Debbie Pack, Director of Finance and Administration, explained the request, fiscal impact, and action options. There were no questi,9ns or comments from the Commission or the public, 23-0228 Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Ordinance 23-11165 on first reading, levying special assessments to pay the cost of nuisance abatements. Aye: (5). Nay (0). Motion carried. (6.2) Approve Charter Ordinance No. 42, on first reading, exempting the City of Salina from the provisions of K.S.A. 64-101 regarding newspapers in which legal publications may be made and providing substitute and additional provisions on the same subject. Page I "' "' :: z a. w , "' 23-0229 Shawn Henessee, Assistant City Manager, explained the request, fiscal impact, and action options. A discussion on what happens during the necessary 60 day waiting per:iod and the . . . rights of the public to oppose a charter ordinance was had. There was also some suggestion ofusing the website in conjunction with the official City paper for a trial period to . get City staff and the public used to the potential that the City website could be the official channel for legal publications in the future. Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Charter Ordinance No. 42 on first reading. A two-thirqs vote was necessary to advance the motion. Aye: (5). Nay (0). Motion carried. (6.3) Authorize the Mayor to sign the Salina Area Chamber of Commerce's letter to the Salina Regional Health Center and Blue Cross Blue Shield of Kansas regarding rate negotiations. • Mike Schrage, City Manager, explained the request, fiscal impact, and action options. The Commissioners expressed support for the letter and their hopes that Salina Regional Health Center and Blue Cross Blue Shield will reach an agreement. Mayor Hoppock and C01umissioner Davis e~plained that, as the letter is impartial and unbiased, their person~ connections to Salina Regional Health Center do not constitute a conflict cf interest. •• Laura Curry~ Salina, KS, asked about whether SRHC is privately or publically owned. 23-0230 Moved by Commissioner Lenkiewicz, seconded by Commissioner Davis, to authorize the Mayor to sign the Salina Area Chamber of Commerce's letter to the Salina Regional Health Center and Blue Cross Blue Shield of Kansas regarding rate negotiations. DEVELOPMENT BUSINESS (7.1) Approve Resolution No. 23-8145 authorizing City staff to prepare and submit a grant application to the Federal Home Loan Bank Topeka ("FHLB Topeka") for the Affordable Housing Program; selecting Equity Bank, Salina, Kansas, as the City's qualifying FHLB Topeka Memberforpurposes of the grant; and authorizing the City Manager to execute required Memorandums of Understanding, Michelle Martin, Supervisor of Community Relations, explained the request, fiscal impact, and action options. Topics of the following conversation included what kinds of accountability measures would be in place to ensure the money is used responsibly, the requirements for those who wish to apply for the grant money, the process for interested contractors to follow, and the processes City staff followed to identify the target portion of the City. Lauren Driscoll, Director of Community and Development Services, and Amanda Jarvis, Lead for America Fellow, were on hand to offer mote in-depth information on the overall research done in order to pursue the grant. Page2 23-0231 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve Resolution No. 23- 8145. Aye: (5). Nay (0). Motion carried. z Q. w OTHER BUSINESS Mayor Hoppock explained that he has had numerous communications regarding the homeless encampment on 7th Street behind the Old Chicago. The Commissioners and City Manager discussed different ways to continue to address the homelessness issues in Salina. Talk oftightening up parts ofthe City code relating to things such as loitering and public intoxication was had, but ultimately it was stated that the City cannot fine and legislate its way out of homelessness. Further public outreach and forums· may be necessary and.desired. CITIZENS FORUM Rose Base, Salina, Kansas, brought forward her concerns about the Salina Animal Shelter as a fonner employee of the shelter . .She wanted to petition for open hours to return to the shelter. She pointed out that licensing and laW11 care seemed lacking, irrigation of the dog park was neglected, and that animal control .is no longer handled by Salina animal services. Carroll Junge!, Salina, Kansas, said she had left a message with the animal shelter wanting to provide a donation but never received a call back. When she visited the shelter in person the following day, she was frustrated that, of three employees there, no one had called h~r back She also stated that the employees suggested she ma,y have. called the wrong city all together, though she was certain that was not the case. Linda Reynolds, -Salina, Kansas, .explained that the inability to openly visit with all the dogs lead to her adopting a sweet dog who was also far too strong for her, meaning she had to rehome that dog because she was never given sufficient time to get to know him. Laurie Hall, Salina, Kansas, talked about how she kept adopting all the dogs she fostered and worked for the City for over 20 years. She was disappointed that the animal shelter was dark and cold. The shelter used to be bright and lively, the animals and volunteers were happy, and the landscaping was beautiful. Mark Trostle, Salina, Kansas, stressed that taxpayer dollars pay for the shelter, so it really should be ppen to the public. He worried that the shelter is hiding something due to a recently failed inspection. Ben Windholz, Salina, Kansas; wanted to apologize to Salina Tennis Association for blaming them for the unkempt lawn at the tennis courts after receiving a message from the Iawncare company who is.contracted to mow there. Norman Manne!, Salina, Kansas, shared thoughts on water rights and homelessness. Vicki Kerbs, Salina, Kansas, also expressed concern with the current state of the animal shelter. Page3 z n. w Laura Curry, Salina, Kansas, shared her experiences with adopting a dog and trying to surrender a kitten. She felt the overall experience was odd and also wondered why she hadn't heard backwhen inquiring on applying as a foster home for the animals. Kathy Schwartz, Salina, Kansas, read that the shelter is not accepting cats. She wondered how citizens could step in to help. Commissioner Longbine interjected to say he has advocated for opening the shelter back up but has gotten nowhere. Carol Reed, Salina, Kansas, inquired about who in the City is responsible for getting the shelter to reopen to the public. She also commented on the 7th Street homeless and the fear ofresidents tojust enjoy being outside in that area. Michelle Timpson, Ottawa County, Kansas, highlighted her efforts to turn in animals she picked up from the border between Saline and Ottawa counties and how she was unable to bring the animals to the Salina Animal Shelter .. She touched on the differences between Salina and the shelters in Colorado where she moved from, and noted that the shelter should do better in regards to spaying and neutering the feral and stray cats. EXECUTIVE SESSION 23-0232 Moved by Commissioner Lenkiewicz, seconded by Commissioner Davis, to recess into Executive Session for 25 minutes following a 5 minute break, to discuss with special legal counsel the subject of confidential legal considerations relating to points of negotiation with Salina Destination Development, LLC, regarding the City's multi-family housing project, based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney- client relationship pursuant to K.S.A. 75-4319(b)(2). Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 5:48 p.m. The City Commission recessed into executive session at 5 :48 p.m. and reconvened at 6:'19p.m. Also present in the executive session were Mike Schrage, City Manager; Jacob Wood, Deputy City Manager; Shawn Henessee, Assistant City Manager; Greg Bengtson, City Attorney; and specialized financial counsel Matt Webster online. 23-0233 Moved by Commissioner Lenkiewicz, seconded by Commissioner Ryan, to recess into Executive Session for 10 additional minutes tq discuss with special legal counsel the subject of confidential legal considerations relating to points of negotiation with Salina Destination Development, LLC, regarding the City's multi-family housing project, based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pursuant to K.S.A. 75-4319(b )(2). Aye: (5). Nay: (0 ), Motion carried. The meeting adjourned at 6:20p.m. The City Commission recessed into executive session at 6:20 p.m. and reconvened at 6:30 p.m. Page4 z 0.. w c (.) Also present in the executive session were Mike Schrage, City Manager; Jacob Wood, Deputy City Manager; Shawn Henessee, Assistant City Manager; Greg Bengtson, City Attorney; and specialized financial counsel Matt Webster online. No action was taken. ADJOURNMENT Moved by Conunissioner Longbine, seconded by Commissioner Ryan, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:31 p.m. 4// ~ [SEAL] Michael L. Hoppo~ I hereby certify that the above and foregoing is a true and correct copy of the minutes of the meeting of the Governing Body of the City of Salina held on August 14, 2023. N1kki Goding, City Clerk Page 5 CITY OF SALINA, KANSAS REG:(JLAR ME£TING OF THE BOARD OF COMMISSIONERS August 21, 2023 4:00 p.m. Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City Commission meeting, The Clerk replied yes. The Regular Meeting of the :Soard of Conunissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a q1.1orum: Mayor Michael L. Hoppock (presiding), Trent W. Davis, M.D., Greg Lenkiewicz, Bill Longbine, and Karl Ryan, AhJo present: Mike Schrage, City Manager; fa.cob Wood, Deputy City Manager; Shawn Fienessee, Assistant City Manager; Greg Bengtson, City Attorney; and Nikki Goding, Deputy City Clerk. • AWARDS AND PROCLAMATIONS None. fUBLIC HEARINGS ,AND ITEMS SCHEDlJL~D. FORA CERTAIN TIME None. CONSENT AGENDi\ (5.1) Approve the minutes of the meeting of August 14,2023. (5.2) Approve Resolution No. 23 ... 8413 appointing members to citizen boards, commissions, and committees.' 23 .. 0235 Moved by Commissioner Davis; seconded by Commissioner Longbine, to approve the consent agenda as presented. Aye: (5). Nay (0). Motion carried. Mayor Hoppock thanked all of the citizens who applied and showed interest in the boards and;commissions. ADMINISTRATION (6.1) Approve Ordinance No. 23-11165, on second reading, levying special assessments agii,i.n$t certain lots and pieces of property to pay the cost of abatement ofnuisances; .Mayor Hoppock stated that Ordinance No. 23-11165 was approved on first reading on August 14, 2023 and since that ti1,11e,.no cotntnents have been received. 23-0236 Moved by Commissioner Ryan, seconded ·by Commissioner Davis, to approve Ordinance No. 23- 11165 onsecond reading. A roll call vote was taken. Aye: (5} Nay (0). Motion carried. (6 .2) Approve Charter Orclinance No. 42,. on second reading, exempting the City of Salina from the provisions of K.S.-A. 64-101 regatdirtg newspapers in which legal pubHcations may be made and providing substitute and additional provisions on the same su,bject, Page I Mayor Hoppock stated that Charter Ordinance No. 42 was approved on first reading on August 14, 2023 and since that time, one comment has been received. via e .. mail. The Commissioners had. a discussion about concerns voic.ed by citizens on social media that adopting • this chartet ordinance is some way for the City to obscure information. They highlighted that this action is meant to save money, and is in no way intended to be deceitful. The adoption ofthe charter ordinance does not change the official Cicy newspaper; it only enables the City to pe able to change it if it so chooses. Shawn Henessee, Assistant City Manager, added further details about other municipalities in Kansas that are moving forward with the intention of designating their websites as official media for legal publications. There was also some explanation on how eitizens can sign up for notifications through the website so that no information is missed. 23-0237 Moved by Commissioner Longbine, seconded by Commissioner Davis, to approve Charter Ordinance No. 42 on. second tea.ding. A two-thirds vote was necessary to advance the motion. A roll call vote was taken. Aye: (5). Nay,(O). Motion carried. DEVELOPMENT BUSINESS (7 .1) Approve Ordinance :No. 23-11171, on first reading, approving the Salina On Tap as. a special event and aQ.thorizing the consumption of alcoholic liquor within the boundaries of barricaded public areas at such event. Dean Andrew, Director of Planning, e>eplained the. request, fiscal impact, and action options. Mike Schrage, City Manager, asked if a rain date had been chosen for the event. Hannah Holt, Bvent Organizer with Meridian Media, stated no rain date is in place but an insurance polfoyis in case of inclement weather. 23,;0238 Moved by Commissioner Davis, seconded by Commissio.rter Ryan, to approve Ordmance No. 23- 11171 on first reading. Aye: (5). Nay (O}. Motion carried. • (7.2) Approve Ordinance No. 23-11 l'.70, on first reading, relating to Application #M23--9, filed by the Salina City Planning Commission, requesting an amendment to the Future tan(i Ose M$p of the Salina, Kansas Comprehensive Plan to change the future land use designation of property located on the west side of North Ohio Street soµth of the l-70 Highway from a future Conservation and: Commercial land ~e area to a future Employment Area. Mayor Hoppotk recused himself due to a c()nflict and turned the meeting over to Vice-Mayor Longbine. Dean Andrewt Director of Planning, explained the request, fiscal impact, and . action options. Page2 23-0239 z n. lJj .E ai Ill -g .; 't) '5 ~ 8 There were no questions or cotntt1ents from the Commissioners or the Public. Moved by Commissioner Ryan, seconded by ComIDissiQner Davis, to -concur with the recommendations of the Planning Commission · and ;ipprove Ordinance No. 23-11170 on first reading. Aye: {4). Nay (0). Motion carried. Mike Schrage, City Manager, asked if the City Conunission would like staff to proceed on expanding and amending the Overlay District per Mr. Andrew's c.orrtments that doing so would bring the new location in line with the standards that applied to the previously chosen location. Mr. Andrew stated he would .prefer this direction be given by formal motion, but deferred to City Attorney Oreg Bengtson for his guidance. Mr. Bengtson :stated that, given the consensus of the Commission, it would be a.dvisabfo to move ahead with preparing an amendment of the Overlay District as welt May-0r Hoppock rejoinedthe meeting: OTH.ERBtJSlNESS Commissioner Longbine brought up concerns. about safety regarding the bus stop near Thomas Park Some conyersatfon was had about . alternatives for location, lack of communication from Greyhound, and concems for riders who may not have access to cell phones or proper lighting when the bus drops them off at 3:00 a,tn, Mayor Hoppock mentior1ed any :Gonunents or questions relating to the child care presentation by Uµited Way at the study session should be directed to City Manager Mike Schrage. CITIZENS FORUM Linda. Reynolds, Salina, Kaw;as, asked if the Coll1.ttii$sioners have visited the Animal Shelter since the previm.J.s meeting; She also related that her 1 S.;.year-old cqµsin, who works downtown, got a parking ticket in a parking lot where lawn chairs are staged, and wQndered wh)'those people .don't get tickets for overstaying their parking while ·her cousin did. Mayor lloppock added that there has been discussion With staff at the Animal Shelter. Debrah Corrales, Salina, Kansas,. highlighted discrepancies between DNA tests performed Qn the same dog at the Animal Shelter. She lamented that the dog was put down after the second DNA test :based purely on the breed, despite the dog sboWing no signs of violence the first time it was turned into the shelter and the fact that its breed didn,t even match on the two tests. She asked for a repeal of bteed specific legislation. Page 3 Dalton McDowell, Salina, Kansas, asked why the. Ani111al Shelter can't at least open on a rotating schedule to the public. He also explained that a dog that was stolen from Hays and dropped off in Salin'¼ causing a situation .at ·the shelter because the dog was· adopted out instead of held while its ownetshlp was investigated. EXECUTIVE SESSION Moved by Commissioner Lenkiewicz, seconded by Commissioner Davis, to recess into Executive Session for 45 minutes to discuss with special legal couusel the subject pf confidential legal . considerations relating to points .of negotiation with Salina Destination Development; LLC, regarding the Cityfs muhi,{amily housing project, based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship pwstiant to K.S.A. 75-4319(0)(2).. The open me.eting will resume in this room at 5:30 p.m. Aye: (SJ. Nay: (0). Motfrmcarried. The meetingadjoumedat4:45p.m. The City Commission recessed into e:'l{ecutive session at 4:45 p.in. and reconvened at 5:28.p.m. Also present in the executive session were Mike Schrage, City Manager; Jacob Wood, Deputy City Manager; Sl~awn Henessee, Assistant City Manager; Greg Bengtson,. City Attorney; special legal counsel Stephen Spwks and specialized financial counsel Matt Webster were in attendance ·ortline. 23 .. 0241 Moved by Commissioner· Lenkiewicz, seconded by Oom111issioner Davis, to recess into Executive Session for 30 minutes, following: a 2. minute break to discuss with special legal counsel the .subject of confidential legal considerations relating to points of negotiation with Salina l)estination Development, LLC, regarding the City's mulfi .. family housing. project, based upon the need for consultation with an attorney for the public body which woQ,ld be ·deemed privileged in the attorney- client .relationship pursuant to K.S.A. 75-4319(b)(2). The open meeting will resume in this room at 5:30 p.m.. Aye; (5}. Nay: (0). Motion ·carried. The meeting adjourned at 5:30 p.m. The City Commission 'recessed into executive session at 5:30 p;m. and reconvened at 6:02p.m. Also present in the exec1.1tive .session were Mike Schrage~ City Manager; Jacob Wood, Deputy City Manager; Shawn Heness~. Assistant City Manager; Greg Bengtson, City Attorney; special legal counsel Stephen $p@rks and specialized financial counsel Matt Webstetwere in attendance online. No action was taken. ADJOURNMENT 23-0242 Moved by Commissioner Ryan, secpnded by Coirunissioner Davis, that the. regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. Th~ meeting adjonmed at 6:0J p.l)'l. ~/ ~ [SEAL] Michael L. Hoppo • .· • .• • Page4 . . . . . 1~ ..... I hereby certify that the above and foregoing is a true and correct copy of the minutes of the meeting of the Governing Body of the City of Salina held on August 21, 2023. Nikki Goding, City Clerk PageS z 0.. w -' C (Published in the Salina·.li·our~al. ~+ 25 an.d 5eptem(Rr _L 2023) Effective be y J_, 2023 CHARTER ORDINANCE NUM:QER 42 A CHARTER ORDINANCE EXEMPTING THE CITY OF SALINA FROM THE PROVISIONS OF K.S.A. 64-101 REGARDING NEWSPAPERS IN WHICJI LEGAL PUBLICATIONS MAY BE MADE AND PROVIDING SUBSTITUTE AND ADDITIONALPROVISIONSONTHESAME SUBJECT. BEIT ORDAINED by the Governing Body of the City ofSaJina, Kansas: Section One. Election to Exempt. The City of Salina, ,Kansas (the "City''), by virtue ofthe powers vested in it by Article 12, Section 5, of the Constitution of the State of Kansas, hereby elects to exempt itself from and make inapplicable to it Section 64-10 l, Kansas Statutes Annotated, which statute applies to the City but is not unifonnly applicable to all cities~ and thereby provides substitute and additional provisions on the same subject as set forth in this Charter Ordinance. Section Two. Substitute and Additional. Provisions. The Governing Body shall designate from time to time by resolution one or more newspapers anci/or the City's designated website as the official newspaper(s) of the City for publication of legal notices, advertisements or publications of any kind which may be required to be published in the official city newspaper by the laws of the State of Kansas or of the City. Section Three. Currently Designated Official City Newsp~per. Any newspaper that has been designated as an official City newspaper as of the effective date of this Charter Ordinance shall • contin:ue to be an official City newspaper unless or until such time as :the Governing Body shall adopt a .resolution providing otherwise. Section .Four. J>ublication of Ordinance. This Charter Ordinance shall be published in its entirety once each week for two {2) consecutive weeks in the official City newspaper. Section. Five, Effective Date. This Charter Ordinance shall take effect 61 days after final publication unless a sufficient petition for a referendum is filed and a referendum held on the Charter Ordinance as provided in. Alticle 12, Section 5,. subsection (c)(3) of the Constitution of the State of Kansas, in which case this Charter Ordinance shall become effective if approved by a majority of the electors voting thereon. Section Six. Records. Upon its effective date, this Charter Ordinance shall be recorded by the Salina City Clerk in a book maintained for charter ordinances ofthe City and a certified copy shall be filed with the Kansas Secretary of State. Passed by the. Governing. Body, not less than two-thirds of the members-elect voting in favor hereof. [SEAL] ATTEST: Nikki Goding, Deputy City Cler Introduced: August 14, 2023 Passed: August 2 0023, by a vote_ of 2 yes; . no; .Q_ abstarn I hereby certify that the above and foregoing is a true and correct copy of Charter Ordinance No. 42 that was adopted by the Governing Body of the City of Salina at their regular meeting on August 21, 2023. LOCAL1Q Salina Journal The Hutchinson News The Topeka Capital-Journal AFFIDAVIT OF PUBLICATION Nikki Goding City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 08/25/2023, 09/01/2023 Sworn to and subscribed before on 09/01/2023 My commission expi,~ ~ ?f Publication Cost: Tax Amount: Payment Cost: Order No: Customer No: PO#: $482.40 $0.00 $482.40 9197719 594307 #of Copies: 1 THIS IS NOT AN INVOICE! Please do not use this form for payment remittance. L ... RYAN SPELLER Notary Public Stote of Wisconsin t a ,4~ PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 2 (Published In the sauna Journal August 25, and September 1, 2023) Effective November 1, 2023 CHARTER ORDINANCE NUMBER 42 A CHARTER ORDINANCE EXEMPTING THE CITY OF SALINA FROM THE PROVISIONS OF K.S.A. 64- 101 REGARDING NEWSPA- PERS TN · WHICH LEGAL PUBLICATIONS MAY BE MADE AND PROVIDING SUBSTITUTE AND ADDI- TIONAL PROVISIONS ON THE SAME SUBJECT. BE IT ORDAINED bv the Governing Bodv of the City of Salina, Kansas: Section One. Electron to Exempt, The City of Salina, Kansas (the "City"), by virtue of the powers vested In It by Article 12, Section 5, of the Constitution of the State of Kansas, hereby elects to exempt itself from and make lnappllcable to it Section 64-101, Kansas Statutes Annotated, which statute applies to the City but Is not uniformly appllca-ble to arr cities, and thereby provides substitute and addl- tronar provisions on the same sublect as set forth in this Charter Ordinance. Section Two. Substitute and Additional Provisions. The Governing Body shall desl9-nate from time to time by resolutlon one or more news-papers and/or the City's desl11noted website as the official newspaper(s) of the Cltv for publication of Ie11al notices, advertisements or publlcotlons of any kind which may be required to be published in the official city newspaper by the raws of the State of Kansas or of the Cltv. Section Three. Currently Designated Offlclal City Newspaper. Anv newspaper that has been designated as an offlclal City newspaper os of the effective date of this Charter Ordinance shall continue ta be an offlclol crtv newspaper unless or until such time as the Governing Body shall adopt a resolution providing otherwise. Section Four. Publication of Ordinance. This Charter Ordinance shall be published In Its enllretv once each week for two (2) consecutive weeks in the officio! City newspaper. Section Five. Effective Date. This Charter Ordi- nance shall toke effect 61 days after flnol pUblicatlon unle55 a sufficient petition for a referendum Ts flied and a referendum held on the Charter Ordinance as provided In Article 12, Section s, subsection (c)(J) of the Constitution or the State of Kansas, In which case this Charter Ordinance shall become effective If approved by a malorlty of the electors voting thereon. Section Six. Records. Upon Its effective dote, this Char-ter Ordinance shall be recorded by the Salina City Clerk In a book maintained for charter ordinances of the City and a certified copy shall be flied with the Kansas Secretary of State. Passed by the Governing Body, not less than tw1r thirds of the members-elect voting in favor thereof. Introduced: August 14, 2023 Passed: August 21, 2023, by a vote of _5_ ves ; _o_ no; _o_ abstain u/ Mjchg1:t L Hopo& Michael L. Hoppack, Movor [SEALJ ATTEST: tsJ Nikki Godln11, Nikki Goding, Deputy City Clerk 8/25, 9/1/2023 919nl9 I• CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS Dec.ember 18, 2023 4:00 p.m. Mayor Hoppock asked the Clerk for verification that .notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room I 07, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Michael L. Hoppock (presiding), Trent W. Davis, M.D., Bill Longbine, and Karl Ryan. Oreg Lenkiewicz arrived at 4: 12 p.m. Also present: Mike Schrage, City Manager; Jacob Wood, Deputy City Manager; Shawn Henessee, Assistant City Manager; Greg Bengtson, City Attorney; and Nikki Goding, City Clerk. • Aw ARDS AND PROCLAMATIONS (3.1) Recognition of the Retirement of Fire Inspector Jeff Daily. Mayor Hoppock read the proclamation and awarded Mr; Daily a framed copy of his proclamation. Mr. Daily said some words as well, reminding the public and his fellow firefighters of the mission statement ofthe Salina Fire Department. PUBLIC HEARINGS AND ITEMS SCHEDULED .FOR A CERTAIN TIME ( 4.1) Public Hearing for 2023 Amended Budget. Mayor Hoppock opened the public hearing. Debbie Pack, Director of Finance, explained the request, fiscal impact, and actionoptions. Mayor Hoppock closed the public hearing. 23-0393 Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve the 2023 Amended Budget. Aye: (4). Nay: (0). Motion carried. CONSENT AGENDA (5.1) Approve the minutes of the meetingofDecember"l l, 2023. (5.2) Award the bid for ProjectNo. 23006; 2023 Broadway Medians, to Smoky Hill, LLC of Salina in the amount of $358,50925 with a $17,925.46 {5%) construction contingency for a total project authorization not to exceed $376,434.71 and authorize the City Manager to execute a contract with Sllloky Hill, LLC upon fulfillment of all prerequisites Uilder the bid documents. (5.3) Authorize the City Manager to execute an agreement for the purchase of 6 wastewater pumps from Envirqnmental & Process Systems, Inc. ofLenexa, Kansas. (5.4) Award the bid for Project No. 23036, Salina Downtown Water Treatment Chlorination Facility -Roof Replacement, to Meridian Roofing Solutions in the amotirtt of $102,180 with a $10,218 (10%) construction contingency for a total project authorization not to exceed $112,398 and authorize the City Manager execute Page 1 .,, ';! ;: z a. uJ ., i i ., ?; ., C 0 u (5.5) (5.6) a contract with Meridian Roofing Solutions upon fulfillment of all prerequisites under the bid documents. Award the bid for Project No. 21030, 'Project No, 1 Water Main Replacement, to Smoky Hill, LtC in the amount of $1,996,886 with a $99,844 (5%) construction contingency for a total project authorization not to exceed $2,096,730 and authorize the City Manager to execute a contract with Sm9ky Hill, LLC upon fulfillment of all prerequisites under the bid documents. . Approve Resolution No. 23-8179 amending Resolution No. 18~7559 to extend the 2018-2023 Neighborhoocl Revitalization Plan Tax Rebate PrQgram until January 22, 2024. Commissioner Davis asked about the unusual 1-0% construction contingency for the chlorination facility roof replacement, to whi~h Martha Tasker, Director of Utilities, stated ifs to cover anything unexpected upon removal of the old roof. Mayor Hoppock requested item 5.2 be removed from the consent agenda due to a late- arriving email from a concerned citizen. Commissioner Lenkiewicz arrived at 4:12 p.m., shortly before the votes were taken to approve the consent agenda. 23-0394 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve items 5.1 and 5.3 through 5.6 as presented. Aye: (5).Nay: (0). ·Motion carried. City Manager Mike Schrage explained that a citizen raised a question on the plarts for the Broadway medians, having noticed that one of the medians was showing longer than its current measurement. Mr. Schrage clarified that the lengthening shown in the plans was an error, and that the plans .had since been revised to show the correct intended measurement. Commissioner Longbine expressed concern about weeds _and vegetation on the medians south of .Crawford Street. He also asked if the pavers scheduled to be stained had been completed. City Engineer Dan Stack advised that the pavers were stained, but that it's more apparent close up than when driving past them. 23-0395 Moved by Commissioner Davis, seconded by Commissioner Longbine, to approve consent agenda item 5 .2 and award. the bid for Project No. 23006, 2023 Broadway .Medians, to Smoky Hill, LLC of Salina in the amount of $358,509.25 with a $17,925.46 (5%} construction contingency. Aye: (5). Nay: (0). Motjon carried. ADMINIStRATION (6.1) Approve Ordinance No. 23-11190 on. second reading amending the Zoning Ordinance to add group day care homes providing care fqr no more than twelve (12) chil<.iren. in .an unoccupied ·dwelling to the list·of conditional uses allowed in the RS (Single-Family Residential Suburban), R (Single~Family Residential), R-1 (Single- Family Residential), R-2 (Multiple-Family Residential), R-2.5 (Multiple-Family Residential), R-3 (Multiple-Family Residential), and MH-S (Manufactured Home Subdivision) z~ning districts. Page2 23-0196 :!! ~ z c.. w ~ ~ <I! 23-0397 23-0398 23-0399 Mayor Hoppock stated Ordinance No. 23-11190 was passed on first reading on December 11, 2023. Since that time, no comments have been received. Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Ordinance No. 23-11190 on second reading. A roll call vote was taken. Aye: (5). Nay:(0). Motion carried. (6.2) Approve Ordinance No. 23-11188 on second reading amending Chapter 2 of the Salina Code pertaining to administration by amending • and repealing Article XII, Public Improvement Procedures. • • Mayor Hoppock stated that Ordinance No. 23-11188 was passed on first reading on December 11, 2023. Since that time, no comments have been received. Moved by Commissioner Ryan, seconded by Co.tnmissioner Davis; to approve Ordinance No. 23- 11188 on second reading. A roU call vote was taken. Aye: (5). Nay: (0). Motion carried. (6.3) Salina Community Theatre Association Expansion (6.3a) Authorize the Mayor to execute a Special Warranty Deed with Covenants regarding conveyance of real estate associated with the Salina Community Theatre Association for the purpose of expansion of the theatre facility into Founders Park. (6.3b) Authorize the City Manager to execute an Amendment and Complete Restatement of the Community Theatre Maintenance and Operating f Agreement withthe Salina Community Theatre Association. 1 Jacob Wood, Deputy City Manager, explained the request, .fiscal impact, and action options. Moved by Commissioner Ryan, seconded by Commissioner .Davis, to authorize the Mayor to execute a Special Warranty Deed with Covenants regarding conveyance of teal estate associated with the Salina Community Theatre Association {SCT A) for the purpose of expansion ofthe theatre facility into Founders Park for delivery to the SCtA by the City Manager following and conditional upon approval and execution of an Amendment and •Complete. Restatement of the Community Theatre Maintenance and Operating Agreement by the authorized signatories for the City and the SCT A. Aye: (5). Nay: (0). Motion carried. Moved by Commissioner Ryan, seconded by Commissioner Davis, to authorize the City Manager to execute an Amendment and Complete Restatement of the Community Theatre Maintenance and Operating Agreement with the Salina Community Theatre . Association. Aye: (5). Nay: (0). • Motion carried. • • (6.4) Approve Resolution No, 23-8180 designating the Official City Newspaper for the City of Salina to be the City of Salina, Kansas website and designating an alternative newspaper for those notices notrequired to .be in the Official City Newspaper. Shawn Henessee, Assistant City Manager; explained the request, fiscal impact, and action options. The ensuing discussion touched on where the Salina Journal is currently published, the pricing differences between the Journal and Salina3 ll, the growing familiarity among the Page3 I I I ~;, 23-0400 z flj Commissioners on using the website to view legal notices, and the overall preference of keeping the alternative newspaper option local, with only Commissioner Ryan voicing dissent. Moved by ~ommissioner Longbine, seconded by Commissio_ner Lenkiewicz, tO ·approve Resolution No. 23-8180 and designating Salina311 as the location for notice· publication for notices not required to. be published in the Official City Newspaper. Aye: (4 ). Nay: (I-Ryan). Motion carried. DEVELOPMENT BUSINESS (7 .1) Consider the application submitted by . Salina Destination Development, LLC and approve Ordinance No.23-11189 annexing a 41.92 acre tract of land located on the west side of Virginia Drive south of West Magnolia Road. Dean Andrew, Planning and Zoning Administrator, explained the request, fiscal impact, and action options. 23-0401 Moved by Commissioner Lenkiewicz; seconded by Commissioner Longbine, to approve Ordinance No; 23-11189 annexing this 41.92 acre tractinto the City; A roll call vote was taken. Aye: (5}. Nay: (0). Motion carried. (7.2) Approve Resolution No. 23-8177 describing the corporate limits of the City of Salina for 2023. Dan Stack, City Engineer, explained the request, fiscal impact, and action options. City Surveyor John Harvey was recognized for his work in preparing the resolution, while City Attorney Greg Bengtson shared an. anecdote about how corporate limits used to be ordinances that needed publication, which used to be very expensive; until an amendment initiated by the City revised the statutes requiring this format for the limits-a similar cost saving measure to 11Sing the City's web$ite for publications now. Commissioner Longbine also asked Mr. Stack to elaborate on why the City's boundaries can't just bemade into one big, even square, to which he and City Manager Mike Schrage shared the difficulties associated with annexing privately owned land that would make that possible. 23-0402 Moved by Commjssioner Longbine, seconded by Commissioner Lenkiewicz, to approve Resolution No. 23-8177. Aye: (5). Nay: (0). Motion carried. (7.3) Approve Ordinance No. 23-11191 amending Section 36-74 (a)(3)b of the Subdivision Regulations to allow the City Commission to determine whether public sidewalks· must be installed or may be deferred through approval of a development agreement in cases where an existing abutting street meets the interim street standard except for the existence of a public sidewalk abutting the proposed subdivision. Dean Andrew, Planning and Zoning Administrator, explained the request, fiscal impact, and action options. Page4 Commissioner Davis expressed concerns that allowing developers to delay sidewalks, especially for residential development, would end up costing the City more in the long run while being a net negative for citizens desiring alternative methods of conveyance other than vehicles. The conversation among the Commissioners touched on the desire to further amend the language to exclude residential development from the possibility of deferral in these particulartypes of development agreements. • • Mark Augustine, Salina, Kansas, hoped that his development agreement could be amended if this ordinance does pass with the possible amendments as his development is commercial; and any sidewalk built at the time of development would not connect anywhere yet. Jeff Maes, ComPro Realty, also supported more flexibility in assessing sidewalks on a case- by-case basis, reiterating that no one has problems with sidewalks; rather, the problem is with sidewalks that go nowhere but are constructed because of development requirements. City Attorney Greg Bengtson asked for a small break in order to confer with City Manager Mike Schrage about language needed for the desired amendment to the text presented. Mayor Hoppock requested a five minute break at 5:45 p.m., with the meeting resuming at 5:SOp.m. The meeting reconvened with language drafted by Mr. Bengtson that the new text amendment be prefaced by text referring specifically to nonresidential developments. 23-0403 Moved by Commissioner Davis, seconded by Conmilssioner Longbine, to approve Ordinance No. 23-11191 with the amended language stated by the City Attorney to Section 36-74 (a)(3)(b)iii prefacing the text presented with "in the case of a nonresidential subdivision or a nonresidential component of a mixed-use subdivision ... '' A roJl call vote was taken. Aye: (5). Nay: (0). Motion carried. • (7 A) Accept offered street right-of .. way arid easement dedications from South Ohio Land, I LLC to serve a proposed replat of Lot 5, Block 5 and Lots l and 2, Block 6 of the I Corrected Plat of Liberty Addition No. 2, to create five (5) platted building lots on a 61.9 acre tract of land located on the west side of South Ohio Street south of ,f Schilling Road (to be platted and known as Liberty Addition No, 3). Dean Andrew, Planning and Zoning Administrator, explained the request, fiscal impact, and action options. A short discussionfollowed on the new curb cuts. and access. 23-0404 Moved by Commissioner Lenkiewicz, seconded by Commissioner Davis, to concur with the recommendation· of the Planning Commission and accept the offered street right-of-way and utility easement dedications, to approve ·the vacation of the existing McIntosh Street and a portion of Progress Drive and the break in access on Ohio Street and to authorize the Mayor to sign the plat on behalf of the City. Aye: (5). Nay: (0). Motion carried. (7.5) Authorize the Mayor to execute a Transferee Agreement with ·The Hive Salon and Spa, LLC and Salina2020, Inc. • PageS 23-04f)5 UI 1 0 Mike Schrage, City Manager, explained the request, fiscal impact, and action options. The applicants shared comments on the rehabilitation of the building, their charitable work downtown, and their goals for the future. Moved by Commissioner Davis, sec.onded by Commissioner Ryan, to authorize the Mayor to execute the attached Transferee Agreement with 'The Hive as proposed. Aye: (5). Nay: (0). Motion carried. • • • (7.6) Authorize the Mayor to execute a Transferee Agreement with 125 North Santa Fe, LLC and Salina2020, Inc. Mike Schrage, City Manager, explained the request, fiscal impact, and action options. The applicants detailed their search for the perfect building and the; work they've done to make it into the shop it is today; 23-0406 Moved by Commissioner Longbine, seconded by Commissioner Davis, to authorize the Mayor to execute the attached Transferee Agreement with Flippin' Fabulous as proposed. Aye: (5). Nay: (0). Motion carried. •• OTHERBUSINESS Commissioner Longbine highlighted a story in the Salina Post on his former classmate, Cathy Rider, who is a chemist at the Salina Wastewater Treatment Plant. Commissioner Davis asked for an update on the Greyhound bus stop. Assistant City Manager Shawn Henessee said discussions are happening and a possible new location is in ~~t. • CITJZENS FORUM Norman Mannel, Salina, Kansas, brought forward his concerns on water scarcity and rights. He wondered about th~ history at Founders Patk;, the property being transferred to SCTA. ADJOURNMENT 23-0406 Moved by Commissioner Davis, seconded by Commissioner Ryan, thatthe regular meeting of the Board of City Commissioners be a.djourned. Aye.: (5). Nay: (0). Motion carried. The meeting adjourned at 6:52 p.rn. [SEAL] Nikki Goding, City Clerk U/1.JJ Page6 I hereby certify that the above and foregoing is a true and correct copy of the minutes of the meeting of the Governing Body of the City of Salina on December 18, 2023. ..,, 9 0 u RESOLUTION NUMJJER 23-8180 A RESOLUTION DESIGNATING THE CITY OF SALINA, KANSAS WEBSITE AS THE OFFICIALCITYNEWSPAPERPURSUANTTOCHARTERORDINANCENUMBER42AND REPEALING ALL PRIOR DESIGNATIONS. WHEREAS, the Governing Body of the City of Salina, Kansas ("City") enacted Charter Ordinance Number 42 effective November l, 2023, exempting the City from the provisions of K.S.A . 64-101 regarding newspapers in which legal publications may be made and providing substitute and additional provisions providing that the Governing Body shall designate from time to time by resolution one ~r ~ore newspaper~ and/or the ?ity'S designate<l, we_bsite as the of_ficial n~wspaper(s) of ~e City for f, publ~catio~ of legal n~tlc:s, advertisements or publications of any kind which may b: reqwred to be I published m the official city newspaper by the laws of the State of Kansas or of the City; and 1 WHE_REAS, the Governing Body wishes to so designate the official city newspaper pursuant to I Charter Ordmance Number 42. BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. Findings. The Governing Body finds that the public interest is served by maximizing public access to published notices in the official city newspaper while minimizing the cost to the public for such access and that those objectives can best be achieved by designating the City's official website as the official city newspaper. Section 2. Designation of official city newspaper. The Governing Body hereby designates the City of Salina, Kansas website (https://www~salina-ks.govD (the "City Website") as tile official city newspaper. All documents and evidence of official City action, including ordinances, when required by Kansas statutes to be published in the official city newspaper shall be published on the City Website. Section 3. Designation of alternate source of publication. The Governing Body hereby designates Salina311 as the newspaper ofpublication for all required published notices other than those statutorily required to be published in the official city newspaper. Section 4. Repealer. All prior designations of the official city newspaper are repealed. Section 5. Effective date. The effective date of this resolution shall be Ja,nuary 1, 2024. f: I.) Adopted by the Board ofCommissionersand signed by the Mayor this 18th day of December, 2023. (SEAL) ATTEST: f()JJr,Jj0-&1A~' Nikki Goding, City Clerk cJ Michael L. Hoppock, Mayor I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 23-8180 that was adopted by the Governing Body of the City of 1 Salina at their regular meeting on December 18, 2023. I I I I· !' I CERTIFICATE OF NO PROTEST STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas (the "City"), does hereby certify that the governing body of the City duly passed Charter Ordinance No. 42, on August 21, 2023, that said Charter Ordinance was published once a week for two consecutive weeks (August 25, 2023 and September 1, 2023) in the Salina Journal, the official City newspaper; that more than sixty (60) days have elapsed from the date of the last said publication; and that there has been no sufficient written protest filed in my office against said Charter Ordinance, as provided in Article 12, Section 5 of the Kansas Constitution. WITNESS my hand and official seal on Junet'3, 2024. (Seal) Lakeview Estates Addition No. 2, Phase 1 Total Cost Item# Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 28,000.00 28,000.00 2 Clearing and Grubbing 1 LS 8,000.00 8,000.00 3 Construction Staking 1 LS 5,500.00 5,500.00 4 Traffic Control 1 LS 500.00 500.00 5 Erosion Control 1 LS 11,000.00 11,000.00 6 Construction Entrance 45 Ton 35.00 1,575.00 7 Seeding 1 LS 8,000.00 8,000.00 8 OM-4 Sign 3 Ea 100.00 300.00 9 Common Excavation 455 CY 3.00 1,365.00 10 Embankment 1,164 CY 10.00 11,640.00 11 Concrete Pavement, 6" 2,042 SY 50.00 102,100.00 12 Concrete Pavement, 8" 59 SY 65.00 3,835.00 13 Subgrade Modification, 6" 2,628 SY 6.00 15,768.00 14 Curb & Gutter Type I 1,353 LF 18.00 24,354.00 15 Sidewalk Ramp, Type I 2 Ea 550.00 1,100.00 16 Curb Inlet 6 Ea 10,000.00 60,000.00 17 Storm Sewer, RCP, 24" 81 LF 45.00 3,645.00 18 Storm Sewer, RCP, 30" 225 LF 65.00 14,625.00 19 Storm Sewer, RCP, 36" 553 LF 70.00 38,710.00 20 Storm Sewer, RCP, 42" 254 LF 75.00 19,050.00 21 End Section, RC, 42" 1 LF 2,000.00 2,000.00 22 Riprap 37 Ton 55.00 2,035.00 23 Water Main, 8" 2,169 LF 32.00 69,408.00 24 Fire Hydrant Assembly 1 Ea 4,000.00 4,000.00 25 Water Line Fittings 1 LS 20,000.00 20,000.00 26 Connect to Existing Water Main 2 Ea 3,000.00 6,000.00 27 Connect to Existing Sewer Line 1 Ea 5,000.00 5,000.00 28 Sanitary Sewer, 8" 1,126 LF 32.00 36,032.00 29 Sanitary Sewer Manhole, 4' 5 Ea 9,000.00 45,000.00 30 Extra Depth Manhole 3 LF 200.00 600.00 Subtotal $549,142.00 Developer's Engineering 27,975.00 Contingency 82,371.30 City Expenses 12-6a01 (d) (5%) 27,457.10 Interest, Bonding & Issue 27,457.10 Total $714,402.50 I :-1~ ! ! .. • ""i 7Til'l f0c-s'-;, I ,1:i:111 Ii :::,,: i I i I ! 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OWENS ENGINffR kS I 2093.l a ~2 ; ~ 1:: i~ij i gl •3~i ~ .f i~§i d, ~: lHi i lg it l!la, ~ >' ~~ ~ l !fl~ c.!:i;:. iS~ m N 0 z z 0 E Q ~ ti) Iii I!! ~ w ~ ~~ ra (I) a:: ~ W ~ct O ifl23 s _:ci2 ...I il:ioi ;;;~ ~§;;i i~ ..J UH/J Q. C, PETITION 4414 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). ( collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: Nine hundred thirty-two thousand nine hundred twenty-six dollars and twenty-five cents ($932,926.25). 3. The extent of the proposed improvement district to be assessed is: Block 1, Lots 1 through 9, and Block 2, Lots 1 through 3, all in the Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. (the "Improvement District"). 4. The proposed method of assessment shall be: The costs of the Improvements shall be more specifically apportioned to property within the Improvement District as follows: The Street Improvements shall be assessed equally per lot to Block 1, Lot 1 and Block 2, Lot 1, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Improvements shall be assessed on an equally per square feet basis to Block 1, Lots 1 through 5, Block 2, Lots 1 through 3, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Stormwater Improvements shall be assessed equally on an per square foot basis to Block 1, Lots 1 through 3, Block 2, Lots 1 through 3, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Water Improvements shall be assessed on an equally per square foot basis to all lots within the Improvement District. 5. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition certifies1, under oath, that: (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; ( c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and 1 These certifications are only required to be made by petitioners for special assessment financing in new developments. 2 ( d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. 3 STANLEY C. BYQUIST st~,°9:f.'.~v:1 Stanley C. Byquist, Owner LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN ffiE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots 1 through 9, and Block 2, Lots 1 through 3, all in the Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this \J day of ff)C\l(C\i:) , 2022. it. ALLISON HAMM ~ Notary Public -State of Kansas MyAppt. Expires 10~'15·2.~ My appointment expires: The petitioner and its principals do not have a financial interest in any real estate located in the c· . of S lin which is subject to delinquent special assessments or ad valorem taxes as of th date h petition; Saline County Treasurer's Office Date: 3 _/;_:1, ___ )(2-'-"-----9 __ 4 • l - Ii z a. IJJ I ;g ~ 8 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS March 21, 2022 4:00 p.m. Mayor Davis asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Michael L. Hoppock, Greg Lenkiewicz, Bill Longbine and Karl Ryan. Also present: Mike Schrage, City Manager, Jacob Wood, Deputy City Manager, Shawn Henessee, Assistant City Manager, Greg Bengtson, City Attorney; and Jo Vonna A. Rutherford, City Clerk. Tony Sneidar was introduced as the new Salina Fire Department Chief. Chief Sneidar expressed his gratitude for the opportunity, discussed his vision and the future of the Salina Fire Department and indicated he looked forward to working with and for the Salina community. AWARDS AND PROCLAMATIONS None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. CONSENT AGENDA (5.1) Approve the minutes of March 14, 2022. (5.2) Approve Resolution No. 22-8034 appointing members to citizen boards, commissions and committees. (5.3) Awarding the bid for project number 22015, 2022 Ultrathin Bonded Asphalt Surface (UBAS) to APAC Kansas Shears Division of Salina in the amount of $965,046.15 with a 5% construction contingency for a total project authorization not to exceed $1,013,298.46 and authorize the City Manager to execute a contract with APAC Kansas Shears Division of Salina upon fulfillment of all prerequisites under the bid documents. (5.4) Approve Resolution No. 22-8036 accepting and approving a grant agreement with the Kansas Housing Resources Corporation (KHRC) for the 2021 Kansas Moderate Income Housing (Mlli) grant program and authorizing the Mayor to execute the grant agreement and associated implementation and administrative documents. Page 1 ~ 22-0072 Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve the consent agenda as presented. Aye: (5). Nay (0). Motion carried. ADMINISTRATION (6.1) Approve Ordinance No. 22-11104, on second reading, amending Section 42-415.2 of the Zoning ordinance to add travel center and/or truck stop, short term recreational vehicle parking area accessory to hotel, motel, truck stop or travel plaza and mini- warehouses to the list of conditional uses allowed in the South Ninth Street Corridor Overlay District. Commissioner Hoppock recused himself due to a conflict. Mayor Davis stated that the ordinance was first passed on March 7, 2022, and since that time it has been amended to add mini-warehouses to the list of conditional uses. No additional comments were received. 22-0073 Moved by Commissioner Ryan, seconded by Commissioner Longbine, to approve Ordinance No. 22-11104 on second reading. A roll call vote was taken. Aye: (4). Nay (0). Motion carried. Commissioner Hoppock rejoined the meeting. (6.2) Approve Resolution No. 22-8028, related to establishment of a special improvement district in Lakeview Estates Addition No. 2 and authorize the Mayor to execute an Improvement District Development Agreement between the City of Salina and Stanley C. Byquist. Dan Stack, City Engineer, explained the request, fiscal impact and action options. 22-0074 Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to approve Resolution No. 88-8028. Aye: (5). Nay (0). Motion carried. (6.3) Approve Resolution No. 22-8038, amending the Public Safety Pay Schedule to reclassify the Fire Battalion Chief from grade S 10* to grade S9* and amend the position description from exempt to non-exempt. Jacob Wood, Deputy City Manager, explained the request, fiscal impact and action options. A brief discussion took place on Chief Sneidar's involvement in decision making, time clock implementation timeline, overtime and effect of change on pay and benefits. 22-0075 Moved by Commissioner Longbine, seconded by Commissioner Lenkiewicz, to approve Resolution No. 22-8038. Aye: (5). Nay (0). Motion carried. (6.4) General Obligation Bonds. (6.4a) Approve Resolution No. 22-8029, authorizing the offering for public sale of general obligation bonds. Page2 I z ll. w 22-0076 22-0077 22-0078 (6.4b) Approve Ordinance No. 22-11102, on first reading, authorizing the issuance and delivery of approximately $8,200,000 principal amount of general obligation internal improvement bonds. (6.4c) Authorize the City Manager to enter into an agreement with Stifel, Nicolaus & Company, Incorporated to provide Financial Advisor services for the City of Salina for the Issuance of the 2022 general obligation bonds. Debbie Pack, Director of Finance and Administration, explained the request, fiscal impact and action options. A discussion ensued related to funding, threshold for cash payments, useful life of HV AC units and use of special sales tax. Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve Resolution No. 22-8029. Aye: (5). Nay (0). Motion carried. Moved by Commissioner Hoppock, seconded by Commissioner Lenkiewicz, to approve Ordinance No. 22-11102. Aye: (5). Nay (0). Motion carried. Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to authorize the City Manager to sign the Financial Advisory Services Agreement with Stifel, Nicolaus & Company, Inc. Aye: (5). Nay (0). Motion carried. DEVELOPMENT BUSINESS (7.1) Approve Resolution Nos. 22-8031, 22-8032, 22-8033 setting the date for a public hearing to consider whether dangerous structures at 244 E Diamond Dr., 615 S. 9th St., and 619 S Santa Fe shall be condemned and ordered demolished or repaired. Sean Pilcher, Building Official, explained the request, fiscal impact and action options. 22-0079 Moved by Commissioner Ryan, seconded by Commissioner Longbine, to approve Resolution Nos. 22-8031, 22-8032, and 22-8033 setting May 9, 2022, as the public hearing date for the dangerous structures located at 244 E. Diamond Dr., 615 S. 9th St. and 619 S. Santa Fe. Aye: (5). Nay (0). Motion carried. OTHER BUSINESS Commissioner Hoppock stated he has been contacted several times concerning the number of handicapped parking spaces around the Stiefel Theatre. Mike Schrage, City Manager, indicated staff would review the parking issue, as well as the parking issue around The Alley. Commissioner Longbine thanked city staff for their assistance in the downtown overhead lights being changed in color to support Ukraine. Page3 ·1 l ,I ,, I ~f ·I ;l ' ti I z D.. UI ~ 'al "l i j CITIZENS FORUM Dalton McDowell, Salina, Kansas, thanked the street department for their work during the last snow storm and thanked the City Prosecutor for doing a good job. Chad Farber, Salina, Kansas, welcomed Chief Sneidar, provided a few thoughts on the ordinance passed last November and stated his concern with the new trash carts being affected by the wind. Karen Shade, Salina, Kansas, shared her concerns with the City Go buses and bus schedules. EXECUTIVE SESSION (10.1) Request for Executive Session. (JO.la) Possible action to follow. 22-0080 Moved by Commissioner Longbine, seconded by Commissioner Hoppock, to recess into executive session for 20 minutes to discuss with defense counsel the subject of the legal aspects of a suit asserting claims against the City on the basis of allegations of defamation and violation of Kansas common law whistleblower protection and the Fair Labor Standards Act, based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attomey- client relationship, pursuant to K.S.A. 75-73 l 9(b )(2). The open meeting will resume in this room at 5:22 p.m. Aye: (5). Nay: (0). Motion carried. The City Commission recessed into executive session at 5:02 p.m. and reconvened at 5:22 p.m. No action was taken. Also present in the executive session were Mike Schrage, City Manager, Jacob Wood, Deputy City Manager, Shawn Henessee, Assistant City Manager, Greg Bengtson, City Attorney, and Terelle Mock, legal counsel (via Zoom). ADJOURNMENT 22-0081 Moved by Commissioner Ryan, seconded by Commissioner Hoppock, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 5:23 p.m. Trent W. Davis, M.D., Mayor [SEAL] ATTEST:--- Page4 I IIIIIIUllillll Ill II I Ill lllll lllll ll~I IIII IIIIII IIIII IIIII IIIII II~ II I lll 11111111 ..-r-;~•,, REBECCA SEEMAN ( f%~:.:·;;:\~REGISTER OF DEEDS SALINE COUNTY KANSAS :1.,;,•;:. _;;J.Book:1409 Page: 1268-1271 1,t:::,'~~t"Receipt #: 140579 /I ... , Recording Fee: $0.00 ~.... Pages Recorded: 4 1.....,1,. Date Recorded: 3/22/2022 10:49:51 AM Type of Document __ .u:R~es=o~lu=tio~n__.____ _______________ _ Total Recording Fees _ _,,i$~0_Ll,,o~o __________________ _ Return Address CITY OF SALINA ROOM 206 JOVONNA I l (Published in the Salina Journal on t/far-J, .z..1 , 2022) Book I tjoq Page I alP 'f RESOLUTION NUMBER 22-8028 A RESOLUTION SETTING FORTH FINDJNGS AND DETERMJNATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on March .tL 2022, proposing certain improvements pursuant to K.S.A. 12-6a01 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; ( c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and (f) a request that such improvements be made without notice and hearing as required by K.S.A. 12-6a04(a); and WHEREAS, the owners of record of I 00% the property liable to be assessed under the Petition have signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and detennines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements''). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately I, 126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). "' "' z a. w "' .• ni en t ;;; :g g C 8 I I l (b) (c) (d) The estimated cost of the Improvements is: Book 140't Page lllo Nine hundred thirty-two thousand nine hundred twenty-six dollars and twenty-five cents ($932,926.25). The extent of the improvement district to be assessed are: Block 1, Lots 1 through 9, and block 2, Lots 1 through 3, all in the Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. (the "Improvement District"). The apportionment of cost between the Improvement District and the city at large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. ( e) The method of assessment against property within the Improvement District shall be: The Street Improvements shall be assessed equally per lot to Block 1, Lot I and Block 2, Lot I, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Sanitary Sewer Improvements shall be assessed on an equally per square feet basis to Block I, Lots I through 5, Block 2, Lots I through 3, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Stormwater Improvements shall be assessed on an equally per square foot basis to Block I, Lots l through 3, Block 2, Lots 1 through 3, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Water Improvements shall be assessed on an equally per square foot basis to all lots within the Improvement District. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authorizes the levying of assessments and the issuance of bonds therefor, all in accordance with K.S.A. 12-6a01 et seq .. Section 3. The City expects to make capital expenditures from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes (collectively, the "Bonds") of the City in the maximum principal amount of $932,926.25. 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 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. 2 f l . . "' "' Section 6. city newspaper. Book 1409 Page l'd.1/ This Resolution shall take effect after its adoption and publication once in the official ADOPTED AND PASSED this 21st day of March, 2022 (SEAL) JoVonna Trent. W. Davis, M.D., Mayor I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 22-8028 that was adopted by the Governing Body of the City of Salina at their regul eetino arc ,., 2022 3 PROOF OF PUBLICATION City Of Salina 300WASH ST SALINA KS 67401 LOCALiQ The Garden City Telegram The Hays Daily News I sallna Journal The Hutchinson News I The Ottawa Herald STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 03/24/2022 Swom to and subscribed before on 03/24/2022 My commision expires Publication Cost: $251.99 Order No: 7079132 Customer No: 601533 PO#: THIS IS NOT AN INVOICE! Plerue do not use this form for payment remittance. SARAH BERTELSEN \ • t\Jotary Public \.= State of Wisconsin # of Copies: -1 PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 4 Page 1 of3 RESOLUTION NUMBER 22-8028 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVIS-ABILITY OF AND AUTHO- RIZING THE CONSTRUC-TION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12· 6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on March 17, 2022, praposing certain improvements pursuant to K.S.A. 12-6001 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed Improve- ments; (bl the estimated or probable cost of the proposed improvements; (cl the extent of the propased Improvement district to be assessed for the cost of the PrOPOsed improvements; (dl the proposed method of assessment; (el the praposed apportionment of the cost between the improvement district and the City at large; and (fl a request that such improve- ments be made without notice and hearing as required by K.S.A. 12- 6004(0); and WHEREAS, the owners of record of 100% the property liable to be assessed under the Petition hove signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-600~ provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the PrellmlnarY Engineering Estimate and Feasibility Report prepared by the City Engineer cmd agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition Is sufficient, and further finds and determines that It is necessary cmd advisable to make the follow- ing improvements: (al The nature of the improvements ore as follows: The curb, gutter, pavement, and grading for approxi- mately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approxi- mately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurte-nances thereto (the "Storm Drainage Improvements"). The installation of approxi- mately 2,033 lineal feel of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The Installation of approxi- mately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and oil appurtenances thereto Pa~2of3 (the ~Sanitary Sewer Improvements"). (collectively, the 'Improve- ments•). {bl The estimated cost of the lmProvemenfs is: Nine hundred thirty-two thOusand nine hundred twentv-six dollars and twenty-five cents ($932,926.25). (cl The extent of the improvement district to be assessed ore: Block I, Lots 1 through 9, ond Block 2, Lots 1 through 3, oll in the Lakeview Estates Addition No. 2 to the City of Solina, Saline Countv, Kansas. (the 'Improvement District•). (dl The DPPOrtionment of cost between the Improve- ment District and the citv ot large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be Paid bv the City at Large. (el The method of assess- ment against property within the Improvement District shall be: The Street Improvements shall be assessed ecwolly per lot to Block 1, Lot 1 ond Block 2, Lot 1, all in Lake- view Estates Addition No. 2 to the Cltv of Salina, Saline County, Kansas. The Sonitorv Sewer lmPravements shalt be as5essed on an equally per square feet basis to Block 1, Lots 1 through 5, Block 2, Lots 1 through 3, all in Lake- view Estates Addition No. 2 to the Citv of Salina, Saline County, Konsas. The Stormwoter Improve-ments shal I be assessed on on equally per sauare foot basis to Block 1, Lois 1 through 3, Block 2, Lots 1 through 3, all in Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. The Water Improvements shall be assessed on on equallv per square foot basis to all lots within the Improvement District. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are neces· sarv, and authorizes them to be made in accordance with the Petition ond the findings set forth In this Resolution, and further authorizes the levying of assessments and the issuance of bonds there- for, all in accordance with K.S.A. 12-6001 et seq .. section 3. The City expects to make capital expenditures from and after the dote of this Resolution in connection with the Improvements described herein, and Intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes (collectively, the "Bonds") of the City in the maximum principal amount of $932,926.25. The Bonds may be issued to reimburse expenditures made on or after the date which is 60 davs before the date of this Resolution, pursuant to Trea-sury Regulatlon 1.150-2. section 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 6. This Resolution shall take effect after its Page3of3 adoption and publication once In the official city news- P<Jper, ADOPTED AND PASSED this 21st day of March, 2022 Trent W. Davis, M.D., Mayor (SEAL) JoVonna Rutherford, City Clerk Magnolia Hills Estates No. 2 Phase 2 Engineer's Estimate of Probable Construction Cost Item# Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 27,000.00 27,000.00 2 Clearing and Grubbing 1 LS 8,000.00 8,000.00 3 Embankment 564 SY 2.00 1,128.00 4 Common Excavation 1,807 CY 3.00 5,421.00 5 Concrete Pavement, 6" 4,120 SY 50.00 206,000.00 6 Subgrade Modification, 6" 4,659 SY 6.00 27,954.00 7 Curb & Gutter 2,416 SY 17.00 41,072.00 8 Sidewalk Ramp, Type I 9 LF 520.00 4,680.00 9 Valley Gutter 112 Ea 65.00 7,280.00 10 Curb Inlet 2 Ea 10,000.00 20,000.00 11 Storm Sewer, RCP, 24" 121 LF 45.00 5,445.00 12 Rip Rap 37 SY 55.00 2,035.00 13 Connect to Existing Water Main 3 Ea 3,000.00 9,000.00 14 Water Pipeline, 6" 928 LF 25.00 23,200.00 15 Long Service Line, 1½" 4 LF 800.00 3,200.00 16 Short Service Line, 1" 8 Ea 150.00 1,200.00 17 Fire Hydrant Assembly 2 Ea 4,000.00 8,000.00 18 Water Fittings 1 LS 15,000.00 15,000.00 19 Connect to Existing Manhole 2 Ea 1,000.00 2,000.00 20 Sewer Pipeline, 8" 806 LS 32.00 25,792.00 21 Sewer service pipeline, 4" 663 Ea 25.00 16,575.00 22 Sewer tees, 8" x 4" 15 LF 150.00 2,250.00 23 Sanitary Sewer Manhole, 4' 4 LF I 8,850.00 35,400.00 24 Adjustment of Manhole I 2 LF 800.00 1,600.00 25 Extra Depth Manhole 14 Ea 200.00 2,800.00 26 OM-4Sign 3 Ea 100.00 300.00 27 Construction Staking 1 Ea 5,500.00 5,500.00 28 Traffic Control 1 LF 500.00 500.00 29 Erosion Control 1 LS 11,000.00 11,000.00 30 Temp Construction Entrance 45 Ton 35.00 1,575.00 -31 Seeding 1 LS 8,000.00 8,000.00 Subtotal $528,907.00 Developer's Engineering I 17,100.00 Contingencies 79,336.05 City Expenses 12-6a01 (d) (5%) 26,445.35 Interest, Bonding & Issue 26,445.35 Total $678,233.75 kas YII l.Q ~SYN l~ 3 8 ~\} 7 4 5 6 ~ ~ 0 0 0 0 ~ ~ 2 3 Cf ... b ~\P DEER HOLLO LANE ~'b OG ~v 1 PHASE2 PETITION 4412 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 383 lineal feet ofKasyn Lane, 595 lineal feet ofHuntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements") and The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: Seven hundred seventy-nine thousand two hundred fifty-one dollars and twenty-five cents ($779,251.25). 3. The extent of the proposed improvement district to be assessed is: Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9; Block 8, Lot I, all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. (collectively, the "Improvement District"). 4. The proposed method of assessment shall be: Each platted lot in the Improvement District shall be assessed equally per lot. In the event all or part of the lots or parcels in the proposed Improvement District are rep]atted before assessments have been levied, the assessments against the replatted area shall be recalculated on the basis of the method of assessment set forth herein. Where the ownership of a single lot is or may be divided into two or more parcels, the assessment to the lot so divided shall be assessed to each ownership or parcel on a square foot basis. S. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A.12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition certifies 1, under oath, that: (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five.year period immediately preceding the date of the petition; (c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and (d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five•year period immediately preceding the date of the petition. 1 These certifications are only required to be made by petitioners for special assessment financing in new developments. 2 LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9; Block 8, Lot 1, all in Magnolia HiJJs Estates Addition No. 2 to the City of Salina, Saline County, Kansas. STATEOFKANSAS ) ) SALINE COUNTY ) I, the undenigned Notary Public, hereby certify that the ~i~ture appearing above ~ and that tbis document was signed before me on this~ day of -~------'-----'' 2022. Notary Public The petitioner and its principals do not have a financial interest in any real estate located in the city of Salina which is subject to delinquent special assessments or ad valorem taxes as oftbQT~Uon; Saline County Treasurer's Office 3 22-0136 22-0137 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS May 23, 2022 4:00 p.m. Mayor Davis asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Clerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Trent W. Davis, M.D. (presiding), Michael L. Hoppock, Greg Lenkiewicz, Bill Longbine and Karl Ryan. 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. AWARDS AND PROCLAMATIONS (3.1) Recognition of the day of June 4, 2022, as Relay for Life Day in the city of Salina. Karen Wood, Co-Chair of the Relay for Life of Saline County Event Leadership Team, read the proclamation and announced related activities. (3.2) Recognition of the day of June 3, 2022, as National Gun Violence Awareness Day in the city of Salina. Cori Sherman-North, Co-Leader of the Salina Group of Mom's Demand Action for Gun Sense in America, read the proclamation and announced related activities. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (4.1) Public Hearing-Ordinance No. 22-11113 ( 4.1 a) Conduct Public Hearing. (4.lb) Approve Ordinance No. 22-11113, on first reading, vacating Logan Avenue arid the north-south alley west of the relocated Dry Creek Channel. Commissioner Hoppock recused himself. Dean Andrew, Director of Planning, explained the request, fiscal impact and action options. Mayor Davis opened the public hearing. There were no comments. Mayor Davis closed the public hearing. Moved by Commissioner Longbine, seconded by Commissioner Ryan, to approve Ordinance No . 22-11113 vaca6ng Logan A venue and the north-south alley west of the relocated Dry Creek channel, on first reading. Aye: (5). Nay (0). Motion carried. Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to find that a compelling public interest exists to allow first and second reading of the ordinance on the same day. Aye: (5). Nay (0). Motion cruTied. J I I' Page 1 1j l I! 22-0138 Moved by Commissioner Lenkiewicz, seconded by Commissioner Ryan, to approve Ordinance No. 22-11113 vacating Logan A venue and the north-south alley west of the relocated Dry Creek channel, on second reading. A roll call vote was taken. Aye: (4). Nay (0). Motion carried. Commissioner Hoppock returned to the meeting. CONSENT AGENDA (5.1) Approve the minutes of May 16, 2022. 22-0J39 Moved by Commissioner Ryan, seconded by Commissioner Longbine, to approve the consent agenda as presented. Aye: (5). Nay (0). Motion carried. ADMINISTRATION (6.l) Approve Ordinance No. 22-11112, on second reading, creating an amended PC-5 on a 44 acre tract of land located on the east side of South Ninth Street north of Water Well Road. Mayor Davis stated that Ordinance No. 22-11112 was passed on first reading on May 9, 2022; and, since that time, no comments have been received. 22-0140 Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to approve Ordinance No. 22-11112, on second reading. A roll call vote was taken. Aye: (5). Nay (0). Motion carried. (6.2) Authorize the Mayor to sign a letter of support for a Saline County ARPA Grant funding application to fund conducting a survey of the impact of fines and fees on individual offenders within the 28th District Judicial Court, 28th District Judicial Com1 Community Corrections and Salina Municipal Court as well as to evaluate the cost of collecting fines and fees and impact on government personnel using the current collection process( es). Mike Schrage, City Manager, explained the request, fiscal impact and action options. Annie Grevas, Director of Community Corrections explained the request in further detail. A brief discussion followed which included fines and fees, community service, revocation of driver's licenses and legislative reporting. Chad Farber, Salina, Kansas, stated it was an interesting study and he was interested to see the data that arrives. Carol Reed, Salina, Kansas, made a comment about money spent on surveys. Kristin Gunn, Salina, Kansas, responded to citizens' comments. Additional discussion followed on the cost of the study and fines and fees. 11 I I 22-0141 Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to authorize the Mayor to sign a letter of support for the ARP A grant application to be submitted by the 28th District Judicial ! Court Commw1ity Con-ections requesting grant funding to conduct a survey of the impacts of fines ;: and fees on individual offenders in the 28th District Judicial Com1, 28th District Judicial Court Community Corrections and Salina Municipal Court. Aye: (5). Nay (0). Motion carried. Page 2 11 Ii DEVELOPMENT BUSINESS (7.1) Consider the repeal of Resolution No. 98-5276 which established a policy for the installment time period allowed for the payment of special assessments. Dean Andrew, Director of Planning, explained the request, fiscal impact and action options. A discussion ensued which included time periods, bonds, financing, benefit to developers and homeowners, tax deductibility of special assessments, policy, repayment schedule, and special circumstances. I I 22-0142 Jon Blanchard, Salina, Kansas, encouraged a 20-year plan with no special circumstances. Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve Resolution No. 22-8053, repealing Resolution No. 98-5276. Aye: (5). Nay (0). Motion carried. (7.2) Approve Resolution No. 22-8044 establishing a special improvement district for water, sanitary sewer, street, and drainage improvements in Magnolia Hills Estates No. 2, Phase 2 and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hills, Inc. Commissioner Hoppock recused himself for Item 7.2 and Item 7.3. Dan Stack, City Engineer, explained the request, fiscal impact and action options. 22-0143 Moved by Commissioner Longbine, seconded by Commissioner Ryan, to approve Resolution No. 22-8044 with a bond payment period of twenty (20) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hills, Inc. noting special circumstances of material costs and shortages. Aye: (4). Nay (0). Motion carried. (7.3) Approve Resolution No. 22-8045 establishing a special improvement district for water, sanitary sewer, street, and drainage improvements in Stone Lake Phase 3c and authorize of the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. Dan Stack, City Engineer, explained the request, fiscal impact and action options. A brief discuss was held regarding costs and availability of materials. II Dalton McDowell, Salina, Kansas, stated costs are still increasing and there are still major JI supply chain issues. Ben Windholz, Salina, Kansas, inquired about plans to pave Schilling Road east of Ohio Street. Dean Andrew, Director of Planning, provided that the city and county previously agreed that the county would assume ownership and maintenance of Schilling Road east of Ohio; and, thus, a conversation needs to be held with the county. A discussion followed regarding traffic control at the intersection of South Ohio and Schilling Road. Page 3 " 22-0144 ;: a I.,., • Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to approve Resolution No. 22-8045 with a bond payment period of twenty (20) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC noting special circumstances of material costs and shortages. Aye: (4). Nay (0). Motion carried. Commissioner Hoppock returned to the meeting. (7.4) Accept an expanded public draining easement dedication on a portion of Lot I, Block 1 of the Hageman Addition to the City of Salina. Dean Andrew, Director of Planning, explained the request, fiscal impact and action options. 22-0145 Moved by Commissioner Ryan, seconded by Commissioner Hoppock, to accept the offered drainage easement dedication for the expanded detention basin serving the USD No. 305 Hageman Operations Center. Aye: (5). Nay (0). Motion carried. 22-0146 (7.5) Approve Resolution No. 22-8050 determining that the city is considering establishing an RHID (Rural Housing Incentive District) within the city and set a public hearing date for the creation of an RHID (Rural Housing Incentive District). Lauren Driscoll, Director of Community & Development Services, explained the request, fiscal impact and action options. I A discussion developed related to interest rates, market, option of the developer to cease building, city's risk, timeline, process, policy review and tax abatements. Moved by Commissioner Ryan, seconded by Commissioner Longbine, to approve Resolution No. 22-8050 and set a public hearing date of June 27, 2022, for the creation of a Rural Housing Incentive District. Aye: (5). Nay (0). Motion carried. (7 .6) Approve Ordinance No. 22-11114 adopting and creating a Downtown Arts and Entertainment District. I ,, Lauren Driscoll, Director of Community & Development Services, explained the request, .1, fiscal impact and action options. A brief discussion followed which included support of the idea, evolution of the district, conflicts of events and uses and reservation system. Norman Mannel, Salina, Kansas, shares his thoughts on security issues associated with the district. Jon Blanchard, Salina, Kansas, stated the district was a great idea, regulations needed to be kept loose and communication is key. Brad Anderson, Director of Arts and Humanities, stated the intent was not being too restrictive but being a good partner to business owners and it will take a lot of coordination. Page 4 II 22-0147 22-0148 i i ,! Leslie Bishop, Executive Director, Salina Downtown, Inc., acknowledged there will be security issues and those will be addressed. l,,1 Moved by Commissioner Hoppock, seconded by Commissioner Lenkiewicz, to approve Ordinance 1 No. 22-11114, on first reading. Aye: (5). Nay (0). Motion carried. OTHER BUSINESS Commissioner Hoppock thanked all those involved with the new stage . . Commissioner Longbine shared his concerns about the city commission email system. Commissioner Ryan shared that the Smoky Hill River Festival is 16 days away and hundreds of volunteer opportunities are available. CITIZENS FORUM Norman Mannel, Salina, Kansas, stated the city will be opening up a can of wom1s if it allows all the activity downtown. Ben Windholz, Salina, Kansas, shared his experience with the downtown sculpture tour and sculpture voting. Chad Farber, Salina, Kansas, stated that the citizens of Salina should be eternal grateful for the men and women who have given their lives for freedom. Mr. Farber also thanked the Governing Body for their service. Jon Blanchard, Salina, Kansas, shared his thoughts on the staffing levels at the Salina Police Department, recruitment and retention, the placement of the downtown stage and city commission emails. EXECUTIVE SESSION I Moved by Commissioner Longbine, seconded by Commissioner Ryan that the city commission recess into executive session for 15 minutes to discuss the subject of legal considerations relating to the South Park property with legal counsel based upon the need for consultation with an attorney for !I jl the public body which would be deemed privileged in the attorney-client relationship, pursuant to K.S.A. 75-7319(b)(2). A five minute recess was requested to be taken prior to the executive I session. The open meeting will resume in this room at 7:44 p.m. Possible action to follow. Aye: I 1 (5). Nay (0). Motion carried. I I I The City Commission recessed into executive session at 7:29 p.m. and reconvened at 7:44 p.m. No action was taken. Also present in the executive session were Mike Schrage, City Manager, Jacob Wood, Deputy City Manager, Shawn Henessee, Assistant City Manager, and Greg Bengtson, City Attorney. Page 5 --____;:c__._::.._===== ADJOURNMENT 22-0149 Moved by Commissioner Hoppock, seconded by Commissioner Ryan, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 7:44 p.m. --;:;--~.}) vi_:0 r.NO [SEAL] Trent W. Davis, M.D., Mayor Page 6 11111111 ~II IIIII Ill II I II 11111111111111111 IIIUI IIUI 1111111111111111111111111 /4t""•~• REBECCA SEEMAN ~ ~;::·;i{}P,EGISTER OF DEEDS SALINE COUNTY KANSAS .,:::: . .J:lBook:1412 Page: 1113-1116 tr£;_':./Recei~ #: 141711 Recording Fee: $0.00 Pages Recorded: 4 CJJ Date Recorded: 5/25/2022 10:17:34 AM RESOLUTION NO. 22-8044 RECORDING FEES: $0.00 RETURN ADDRESS: CITY CLERK ROOM 206 i l (Published in the Salina Journal on Jf/,,/ d 7 . ~ 1412 Page: 1114 RESOLUTION NUMBERll-8044 A RESOLUTION SETTING FORTH FINDINGS AND DETEI'<MINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING fflE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A.12-.6a01 et seq. WH.El\E/\S, a petition was filed wit'n the City CiefK for \he City m Sa\ina. Kansas {the "City") on April 19, 2022, proposing certain improvements pursuant to K.S.A. l 2-6a01 et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; ((l) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; {d) the proposed methQCI of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and (f) a. request that such improvements be made without notice and hearing as required by K.S.A. 12-6a04(a); and WHEREAS, the owners of record of l 00% the property liable to be assessed under the Petition have signed \M l>-aitioo; ant\ WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration ofthe Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BV nIE GOVERNING BODY OF TIIE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and determines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: the curb, gutter, pavement, and grading for approximately 3 83 lineal feet of Kasyn Lanet 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements") and The installation of approximately 121 lineal feet of stonn sewer pipe, inlets, manholes and all appurtenances thereto (the ''Storm Drainage Improvements"). The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the ''Water System Improvements'•). (b) Boole 1412 Page: 1115 The installation of approximately 806 lineal feet of eight-inch sanitary sewer main. service connections for sewer lines, manholes, and all appurtenances then:to (the "Sanitary Sewer Improvements''), (collecdvely, the .. lmprol'emeaa"). The estimated cost of the Improvements is: Seven hundred seventy-nine thousand two hundred fifty-one dollars and twenty-five cents ($779,251.25). (c) The extent of the proposed improvement district to be assessed is: ✓. ,,. ✓ . Blocks. Lots 6 through 9; Block 6, Lots 2 through 3~ Block 7, Lots 1 through 9; ,1 Block 8, Lot 1. all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. (collectively, the "Improvement District"). ( d) The apportionment of cost between the Improvement District and the City at Large is: One hWldred percent (100%) of the total cost of the Improvements shall be assessed· to the hnprovement District and 7.eto percent (0%) shall be paid by the City at Large. Each platted lot in the Improvement District shall be assessed equally per lot. (e) The method of assessment against property within the Improvement District shall be: Each platted Jot in the Improvement District shall be as~d equally per lot. In the event all or part of the lots or parcels in the proposed Improvement District are replatted before assessments have been le\'.ied, the assessments against the replattod area shall be recalculated on the basis of the method of ass~ment set forth herein. Where the ownership of a single lot is or may be divided into two or more parcels, the assessment to the lot so divided shall be assessed to each ownership or parcel on a square foot basis. Section 2. The Governing Body hereby declaies that the Improvements described in. this Resolution are neceswy~ and authoriz.es them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authoru:cs the levying of assessments and the iuuance of bonds therefon.,, all in accordance with K.S.A. 12-6a01 el seq .. Section 3, The City expects to make capital expenditures from and after the date of 1his Resolution in connection with the bnprovements described herein, and intends to reimburse itself for such expend~s with the procecd.9 of one or more series of general obligation bonds and temporary notes of the City in the maximum principal amount of $179,251.2S. Section 4. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 5. city newspaper. This Resolution shall take effect after its passage and publication once in the· official 2 Boole 1412 Page: 1116 ADOPTED AND PASSED this~ day of May, 2022 (SEAL) JoVonna Trent W. Davis, MD., Mayor I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 22-8044 that was adopted by the Governing Body of the City of Salina at their fJ!il n eeti,og ~ . _ 2022. / ~~:ir.._ 3 PROOF OF PUBLICATION City Of Salina City Of Salina 300WASHST SALINA KS 67401 LO CALiQ The Garden City Telegram The Hays Daily News I Salina Journal The Hutchinson News I The Ottawa Herald 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: 05/27/2022 Sworn to and subscribed before on 05/27/2022 Legal Clerk Notary, State My commision expires Publication Cost: $500.49 Order No: 7339605 Customer No: 601533 PO#: THIS IS NOT AN INVOICE! Please do 110111.,e thi.sfon11Jor payment remittance. #of Copies: 1 VICKY FELTY Notary Public State of Wisconsin PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 4 RESOLUTION NUMBER 22-8044 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVIS• ABILITY OF AND AUTHO-RIZING THE CONSTRUC· TION OF CERTAIN IMPROVEMENTS PURSUANT TO K~.A. 1~ 6a01 llf /S/lq. WHEREAS, a petition was flied with the Cltv Clerk for the City of Sofina, Kansas (the "City") an April I?, 2022, prop0sin11 certain Improve-ments pursuant to K.S.A. 12· 6o01 et seq. cthe "Pefltlon"); and WHEREAS, the Petition set,. forth: (ol the 11eneroI nature of the proposed Improve-ments; (bl the estimated or probable cost of the PrOPOsed Improvements; (cl the extent of the PrOPosed Improvement district to be assessed for the cost of the prop0sed Improvements; Cd) the PrOPOsed method of assessment; (el the proposed appartlonment of the cost between the Improvement district and the Citv at large; and (fl o request that such Improve-ments be made without notice and hearing as required bV K.S.A. 12-6004(0): and WHEREAS, the owners of record of 100% the property liable to be assessed under the Petition hove signed the Petition I and WHEREAS, no signatures hove been withdrawn from the Petition before the Governing Bodv began consideration of the Petition; and WHEREAS, K.S.A. 12--6004 provides that the Governing Bodv may authorize and order Public Improvements without notice and hearing after a sufficient petition has been filed; oner WHEREAS, the Governing Sodv has reviewed and considered the Prellmlnarv Engineering Estlmale and Feaslblllty Repart Prepared bv the City Engineer and agrees with the conclusions sel forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, cind further finds arid determines that II Is necessary and advisable to make the follow- Ing fmProvements: (a) The nature of the Improvements are as follows: The curb, gutter, pavement, ond 11radin11 far opproKI· matefy 383 llneal feet of Kasyn Lane, 595 nneal feel of Huntwoatl Drive, 136 lineal feet of Deer Hollow Lane, and 71 llneaf feet of Dunnwood Drive (the "Street Improvements'') and The Installation of approxl-malefy 121 llneal feet of storm sewer pipe, Inlets, manholes and all appurte- nances thereto (1he "Storm Dralna119 Improvements"). The Installation of approxi-mately 797 llneol feet of six-Inch and 140 l1neal feet of eight-Inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The Installation of approxi- mately 806 lineal feet of eiuht-lnch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectlvelv, the "lmprave-mentl'J. (b) The estimated cost of the Improvements Is: Seven hundred seventy-nine thousand two hundred flftv-one dollars and twentv-flve cents ($779,251.25). (cl The extent of the prgposed Improvement district ta be assessed ls: Block 5, Lots 6 throu11h 9; Block 6, Lats 2 through 3; Black 7, Lots 1 ttirough 9; Block 8, Lot 1, all in Magno- lia H Ills Estates Addition No. 2 to the City of Sallna, Saline County, Kansas. (collectively, the • Improve- ment District'). (d) The apportionment of cost between the Improve- ment District and the Cl!v at Larue Is: One hundred Percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) stian be paid by the City at Large. Each Pio.tied lot In the Improvement District sho.11 be assessed equally per lot. (el The method of o.ssess-ment against property within the Improvement District shall be: Each platted lot In the Improvement District shall be assessed equally per lot. In the event all or part ol the lats or Parcels In the proposed lmr:,rovement District o.re replotted before o.ssessments have been levied, the assessments against the replotted area shall be rec al cu lated on the basis of the method of assessment set forth herein. Where the ownership of a slnele lot Is or mav be divided Into two or more parcels, the assessment to the lot so divided shall be o.ssessed to each ownership or parcel on a square foot basis. Section 2. The Governing Body hereby declares that the Improvements described In this Resolullon are neces-sary, and authorizes them to be made In accordance with the Petition o.nd the findings set forth In this Resolution, and further authorizes the levying of assessments ond the Issuance of bonds ther• fore, all In accord<1nce with K.S.A. 12-6001 et seQ .. Page3 of3 Section 3. The City 8KP8CIS to mak8 capital exriendltures from and after the dote of thla Resolutlon In connection with the Improvements described herein, and Intends lo reimburse ltgelf for such expenditures wttn the proceeds of one or more series of 11enerol oblloatlon bonda and temparary notes of the City In the maximum 11rlnclpal amount of S77V ,251.25. Section 4. ihe City Clerk shall flle a certified COPY of this Resaluflon with the Register of Deeds of Saline County, Kansas. Section 5. This Resolulio11 shall take effect after its passage and pubflcatlon once In the offlclal city newspa-per, ADOPTED AND PASSED this 23rd day of Moy, 2022 Trent w. Davis, M.D., Mayor (SEAL) JoVonna A. Rutherford, CllY Clerk Petition 4401 Wheatland Valley Addition Preliminary Cost Distribution for Wheatland Valley Addition Water ss SS Line A' Street Storm Detention Trail General Misc Total Block I Lot I $722.57 3,899.45 361.54 471.!7 $5,454.73 Lot2 $722.57 3.899.45 361.54 47Ll7 $5,454.73 Lot 3 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot4 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 5 $722,57 3,899.45 361.54 471.17 $5,454.73 Lot6 $722.57 3.899.45 361.54 471.J 7 $5,454.73 Lot7 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 8 $722.57 3,899.45 361.54 471.17 $5.454.73 Lot9 $722.57 3,899.45 361.54 471. I 7 $5,454.73 Lot JO 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 11 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.4] $38,405.55 Lot 12 5,606.56 6,771.76 $722.57 18;961.32 3,899.45 361.54 47l.I7 675.78 935.41 $38,405.55 Block 2 Water ss SS Line A' Street Stonn Detention Trail General Misc Total Lot I 5,606.56 6.77l.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.4 l $38,405.55 Lot2 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38.405.55 Lot3 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot4 5,606.56 6.771.76 $722.57 18.961.32 3,899.45 361.54 47l.17 675.78 935.41 $38,405.55 Lot 5 5,606.56 6,771.76 $722.57 18;961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Block 3 Water ss SS Line A' Street Storm Detention Trail General Misc Total Lot I 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot.2 5,606.56 6,77L76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 3 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38.405.55 Lot4 5,606.56 6.771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 5 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 47 l. l 7 675.78 935.41 $38,405.55 Lot6 5.606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 7 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38.405.55 Lot8 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 14 Petition 4401 Wheatland Valley Addition Water ss SS Line A' Street Storm Detention Trail General Misc Total Lot 9 \606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38.405.55 Lot 10 5.606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 11 $722.57 3,899.45 361.54 47l.l7 $5,454 .73 Lot 12 $722.57 3,899.45 361 .54 471.17 $5,454.73 Lot 13 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 14 $722.57 3,899.45 361.54 471.17 .$5,454.73 Block4 Water ss SS Line A' Street Storm Detention Trail General Misc Total Lot I Platted Draina~e Easement Platted DrainaS:e Easement Platted Drainage Easement Platted Draina~e Easement Block 5 Water ss ss Line A' Street Storm Trail General Misc Total Lot I $722.57 3,899.45 361.54 471.17 $5,454.73 Lot2 $722.57 3,899.45 361.54 47L17 $5,454.73 Lot3 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot4 $722.57 3,899.45 361 .54 47l.17 $5,454.73 Lot 5 $722.57 3,8()9.45 361.54 471. I 7 $5,454.73 Lot6 $722.57 3,899.45 36 l.54 471.17 $5,454.73 Lot 7 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 8 $722 .57 3,899.45 361.54 471.17 $5,454.73 Lot9 $722.57 3,899.45 361.54 471.17 $5,454.73 Block6 Water ss SS Line A' Street Stonn Detention Trail General Misc Total Lot I $722.57 3,899.45 361.54 471.l7 $5;454.73 Lot2 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot3 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot4 $722.57 3.899.45 361.54 471.17 $5,454.73 Lot5 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot6 5,606.56 6,771.76 $722 .57 18,961.32 3,899 .. 45 361.54 471.17 675.78 935.41 $38,405.55 Lot7 5,606.56 6.771.76 $722.57 18,961.32 3,899.45 361 .54 471.17 675.78 935.41 $38,405.55 Lot 8 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675 .78 935.41 $38,405.55 Lot9 5,606.56 6,771.76 $722.57 18,961 .32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot IO 5,606.56 6.771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 11 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 15 Petition 4401 Wheatland Valley Addition Water ss SS Line A' Street Storm Detention Trail General Misc Total Lot 12 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 47 l.17 675.78 935.4 I $38,405.55 Lot 13 5,606.56 6,771.76 $722.57 18,961.32 3.899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot 14 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38.405.55 Lot IS 5.606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lotl6 5,606.56 6,771.76 $722.57 18,961.32 3,899.45 361.54 471.17 675.78 935.41 $38,405.55 Lot17 $722.57 3,899.45 361.54 471.17 $5,454 .73 Lotl8 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 19 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot20 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 21 $722.57 3,899.45 361.54 47 I.17 $5.454.73 Lot22 $722.57 3,899.45 361.54 47l.17 $5,454.73 Lot23 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot24 $722.57 3,899.45 36).54 471.17 $5,454 .73 Lot25 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot26 $722.57 3,899.45 361 .54 471.17 $5,454.73 Lot27 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot28 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot29 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot30 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot31 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 32 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot 33 $722.57 3.89945 361.54 471.17 $5.454.73 Lot34 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot35 $722.57 3,899.45 361 .54 471.17 $5,454.73 Lot36 $722.57 3,899.45 361.54 471.17 $5,454.73 Lot37 $722.57 3,899.45 361.54 471.17 $5,454.73 City of Salina Water ss SS Line A' Street Stonn Detention Trail General Misc Total 36,280.22 $36,280.22 Total $162,590.13 $196,381.07 $55,637.87 $549,878.14 $300,257.39 $27,838.54 $72,560.44 $19,597.54 $27,126.94 $1,411 ,868 .06 16 of.(·~- -.. ,..: ... ~\.. .. eatlatfd-Va11 PETITION 4401 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: City Clerk's Office Filed We, the undersigned, owners of record of property Jocated within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A. 12-6a01, et seq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 158 lineal feet of Wheatland Circle (the "Street Improvements") and The installation of approximately 1260 lineal feet of a IO feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water main, 2,273 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water Jines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: One million four hundred eleven thousand eight hundred sixty- eight dollars and six cents ($1,411,868.06). 3. The extent of the proposed improvement district to be assessed is: Block 1, Lots 1 through 12; Block 2, Lots 1 through 5; Block 3, Lots 1 through 14; Block 5, Lots 1 through 9; Block 6, Lots 1 through 37, all in Wheatland VaJJey Addition to the City of Salina, Saline County, Kansas. (collectively, the "Improvement District"). 4. The proposed method of assessment shall be: The costs of the Street Improvements, Water System Improvements and Sanitary Sewer Improvements shall be assessed on an equal per-lot basis only to the following lots in the Improvement District (29 lots): Block 1, Lots 10-12 Block 2, Lots 1-5 Block 3, Lots 1-10 Block 6, Lots 6-16 The Costs of the Sanitary Sewer Line A' Improvements, the Storm Drainage Improvements, the Detention Basin and the Trail Improvements shall be assessed on an equal per-lot basis to all lots in the Improvement District within the Improvement District (77 Jots). 5. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent (I 00%) of the total cost of the Street, Stonn Drainage, Water System, Sanitary Sewer Improvements, Sanitary Sewer Line A', Trail Improvements, and the Detention Basin shall be assessed to the Improvement District as set forth above. Fifty percent (50%) of the total cost of the Trail Improvements shall be assessed to the Improvement District and fifty percent to the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A. 12-6a04(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FIRST. Each signer of this Petition certifies1, under oath, that: 1 These certifications are only required to be made by petitioners for special assessment financing in new developments. 2 (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; (c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and (d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. WHEATLAND DEVELOPMENT CO. INC. Danny LEGAL DESCRIP N OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 1, Lots I through 12; Block 2, Lots 1 through 5; Block 3, Lots I through 14; Block 5, Lots I through 9; Block 6, Lots I through 37, all in Wheatland Valley Addition to the City of Salina, Saline County, Kansas. STATE OF KANSAS ) ) SALINE COUNTY ) I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this ~ day of .j u.i)-e , 2021. • ALLISON HAMM -· ••• Notary Public • State of Kansas My Appl. Expires {0-2.5-2 4 My appointment expires: ~-~ Notary Public 3 CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS June 14, 2021 4:00p.m. The City Commission convened at 2:00 p.m. in Room 107, City~County Building, for the study session which included the Lower Smoky Hill Water Supply Access District Meeting and a 2022 Budget Overview. Mayor Hodges asked the Clerk for verification that notice had been sent for today's City Commission meeting. The Oerk replied yes. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City•County Building. Roll call was taken followed by recognition of Flag Day, the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Mayor Melissa Rose Hodges (presiding), Commissioners Trent W. Davis, M.D., Michael L. Hoppock, Aaron Peck and Karl Ryan. Also present: Michael Schrage, City Manager; Jacob Wood, Deputy City Manager; Greg Bengtson, City Attorney; and, JoVonna A. Rutherford, City Clerk AWARDS AND PROCLAMATIONS None. CITIZENS FORUM Norman Manne!, Salina, Kansas, provided thoughts on the United States flag. Mike Mattek, Gypsum, Kansas, declared his support of Salina Media Connection and stated it was a great facility to produce content. Thad Beach, Salina, Kansas, also declared his support of Salina Media Connection, indicated it was a valuable resource that a lot of communities do not have and was hopeful it would be supported. Isaiah Marcotte, Salina, Kansas, an independent film maker, provided his thoughts in support of Salina Media Connection and noted he started out young as a volunteer and it served as a great educational experience for him. Lanay Meier, Salina, Kansas, voiced her support of Salina Media Connection, stated the importance it has served in her life and the need to have more information made available. Brenda Gutierrez, Salina Area United Way, voiced further support of Salina Media Connection and indicated it had provided her the opportunity to interview non•profit businesses in Salina and information had reached the community. Mayor Hodges thanked the citizens for their comments and suggested anticipation of a proposal to be received from Salina Media Connection. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME None. Page 1 CONSENT AGENDA (6.1) Approve the minutes of June 7, 2021. (6.2) Authorize the City Manager to execu~ a Smoky Hill River Festival Sound Provider Agreement Moved by Commissioner Hoppock, seconded by Commissioner Ryan, to approve items 6.1 and 6.2 of the consent agenda as presented. Aye: (5) Nay: (0). Motion carried. ADMINISTRATION (7.1) Approve Resolution No. 21-7966 authorizing the City Manager to sign a Master Equity Lease Agreement and Service Agreement with Enterprise Fleet Management Jacob Wood, Deputy City Manager, explained the request, fiscal impact and action options. Mr. Wood stated a representative of Enterprise was present to answer any questions. A discussion ensued related to condition, insurance, warranty and routine maintenance of leased vehicles. 21-0155 Moved by Commissioner Ryan, seconded by Commissioner Davis, to approve Resolution No. 21- 7966 authorizing the City Manager to sign a Master Equity Lease Agreement and Service Agreement with Enterprise Fleet Management. Aye: (5) Nay: (0) Motion carried. (7.2) Approve Resolution No. 21-7964 relating to a special improvement district for water, sanitary sewer, street, and drainage improvements in Wheatland Valley Addition and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Wheatland Development Co., Inc. Dan Stack, City Engineer, explained the request, fiscal impact, and action options. Mr. Stack confirmed a change to the financial figures on the blue sheet only. Commissioner Hoppock requested information from the developer related to home type. Dan Daley, Dan Daley Construction, Salina, Kansas, the developer, provided basic information related to the development. Mr. Daley explained that homes were required to be a minimum of 1250 square feet and would be priced in the middle range. He further explained that there was an abundance of high end homes but no selection for the middle range home and that market was being targeted. Upon further inquiry, Mr. Daley confirmed the homes could be built on a slab or basement and the development would be open to all builders and/ or individuals that desired to purchase a lot. 21-0156 Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve Resolution No. 21- 7964 relating to a special improvement district for water, sanitary sewer, street, and drainage improvements in Wheatland Valley Addition and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Wheatland Development Co., Inc. Aye: (5) Nay: (0). Motion carried. Page2 l 21-0157 (7.3) Approve Resolution No. 21-7957 relating to an establishment of a special improvement district for trail improvements along the east side of Markley Road required as a condition of the Magnolia Hills Estates Addition No. 2 plat approval and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hill Estates, Inc. Dan Stack, City Engineer, explained the request, fiscal impact and action options. A discussion followed related to the existing trail and the utilization of the existing rock for the sidewalk project Further discussion followed related to the development process from which the phased assessments originated and improvement of the same for future projects as well as continuation of a sidewalk to Magnolia Road and allocation of funding. Moved by Commissioner Davis, seconded by Commissioner Ryan, to approve No. 21-7957 relating to an establishment of a special improvement district for trail improvements along the east side of Markley Road required as a condition of the Magnolia Hills Estates Addition No. 2 plat approval and authorize the City Manager to execute an Improvement District Development Agreement between the City of Salina and Magnolia Hill Estates, Inc. Aye: (5) Nay: (0). Motion carried. DEVELOPMENT BUSINESS None. OTHER BUSINESS None. ADJOURNMENT 21-0158 Moved by Commissioner Ryan, seconded by Commissioner Peck, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 4:51 p.m. Melissa Rose Hodges, Mayor {SEAL] Page3 I 1111111111111111111111111111111 lllll lllll 1111111111111111111111111111111111111111111 ,•/"~~--REBECCA SEEMAN r;;~;::;;;~-t~,REGISTER OF DEEDS SALINE COUNTY KANSAS ?,;;;:,).-)Book:1395 Page: 1128-1131 '••·,,~:~;f~~./ Receipt#: 135577 I' . , Recording Fee: $0.00 Pages Recorded: 4 \-l'J Date Recorded: 6/16/2021 11:04:16 AM Resolution No. 21-7964 City of Salina, Kansas June 14, 2021 I hereby certify that the above and foregoing is a true and correct copy of Resolution No. 21-7964 that was adopted by the Governing Body of the City of Salina at their rPilJ-l◄,fH-Jl1eeti ::, 2021. ,. .. Book: 1395 Page: 1129 (Published in the Salina Journal on ~D:,, lg , 2021) RESOLUTION NUMBER 21-7964 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING mE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 et seq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "Cjtyj on June 9, 2021, proposing certain improvements pursuant to K.S.A. l2-6a0l et seq. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; (c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and (f) a request that such improvements be made without notice and hearing as required by K.S.A. I 2-6a04{a); and WHEREAS, the owners of record of 100% the property liable to be assessed under the Petition have signed the Petition; and. WHEREAS, no sjgnatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW fflEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and detennines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb. gutter, pavement, and grading for approximately 76S lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 1 S8 lineal feet of Wheatland Circle (the "Street Improvements") and The installation of approximately 1,260 lineal feet of a 10 feet wide multi- use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of stonn sewer pipe, inlets, manholes and all appurtenances thereto (the "Stonn Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water main, 2,273 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the .. Water System Improvements"). (b) Boole 1395 Page: 1130 The installation of approximately 1,S02 lineal feet of eight-inch sanitaey sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A• Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the .,Improvements"). The estimated cost of the Improvements is: One million four hundred eleven thousand eight hundred sixty-eight dollars and six cents.($1,411,868.06). (c) The extent of the proposed improvement district to be assessed is: Block l, Lots 1 through 12; Bloek 2, Lots 1 through S; Block 3, Lots 1 through 14; Block 5, Lots 1 through 9; Block 6, Lots I through 37, all in Wheatland Valley Addition to the City of Salina, Saline County, Kansas. (collectively, the 1•Jmprovement District"). (d) The proposed method of assessment shall be: The costs of the Street Improvements, Water System Improvements and Sanitary Sewer Improvements shall be assessed on an equal per-lot basis only to the following lots in the Improvement District (29 lots): Block 1, Lots 10-12 Block 2, Lots 1-S Block 3, Lots 1-10 Block 6, Lots 6-16 The Costs of Sanitary Sewer Line A' Improvements, the Storm Drainage Improvements, the Detention Basin and the Trail Improvements shall be assessed on an equal per-lot basis to all lots within the Improvement District (77 lots). ( e) The proposed apportionment of cost belWeen the Improvement District and the City at Large is: One hundred percent (100%) of the total cost of the Street, Storm Drainage, Water System, Sanitary Sewer Line A', Sanitary Sewer Improvements, Trail Improvements, and the Detention Basin shall be assessed to the Improvement District as set forth above. Fifty percent (SO%) of the total cost of the Trail Improvements shall be assessed to the Improvement District and fifty percent to the City at Large. 2 " Boole 1395 Page: 1131 Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and further authorizes the levying of assessments and the issuance of bonds therefore, all in accordance with K.S.A. l 2-6a0 I et seq .. Section 3. The City expects to make capital expendmues from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes of the City in the maximum principal amount of $1,411,868.06. Section 4. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 5. city newspaper. This Resolution shall take effect after its passage and publication once in the official ADOPTED AND PASSED this 14th day of June, 2021. Melissa Roseodges,Mayo (SEAL) 3 Publisher's Affidavit I, _ __.D~e.,.b ... b""""ie.......,N ... e .... J""so ... n.._ ___ , being duly sworn declare that I am a regal Caardinatar of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution No. 21-7964 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue of C June 18, Subscribed and sworn to before me, this day of A.D.20 Notary Public Printer's Fee $523.50 A. CHRISTY FINK SIii.ill Notary Public • State of Kanm ,,_y Appt. Explrea 1·~1"\.~·-zg ::'.h..1 1=J_ (Published in lhe Salina Journal June 18, 2021) RESOllJTIQN NUMBER . 21:ZW A RESOLUTION SETTING FORTH FINDINGS ANO DETERMINATIONS OF THE GOVERIIING BODY OF THE CITY OF SAUNA, KANSAS ON THE ADVISABILITY OF AND AUTHOIUZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6801 etseq. WHEREAS, a petilion was filed rmh the C~y Clerk for lhe City of Salina, Kansas (lhe 'Cily") on June 9, 2021. proposing certain ~ pursuant to K.S.A. 12-6801 et seq. (the 'Pelition'); arid WHEREAS, lht Palitloo sets forth: (a) lhe general nature ol the proposed lmpriwements, (b) the estimated or probable cost of lhe proposed ilr¥Jrovements; (c) the ex1enl of !he proposed imprOYement dis1rict lo be assessed tor the cost of the ~oposed ~nts; (d) the· proposed melhocl of 8SSNSll18fll; ' (e) the prop06ed appo~lonment o1· the cost between the inprovemen1 dlstrictandtheCityal large,alld(Q a request Ilia! such ~s be made v.ith0ul ndicu and hearing as required by KS.A. 12-6a04(a); ii/Id WHEREAS, the owneis ol record ol 100% the properly frable lo be a"8ssed under the Pet!llon have signed the Petition; and WHEREAS, no slgnetures have been r,ilMrar,n lrtJn the petition before th& Govsmilg Body began cooside!atioo ol the Pe!Mn;and WHEREAS, KS.A 12·6a04 • provides that the Governing Body may atmloril'B and on!er public I~ 'M1hou1 no!lce and hearing after a suffident pelifion has been fded; and WHEREAS, lhe GOV8ming Sooy has reviewed and constdered Ille Pralininary ~ring Estimate ano FeaslbM!y Repl)l't prepared by the City Engineer and agrees IMth lhe conclusions &et forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE C.ITY OF SAUNA, KANSAS, AS FOLLOWS: Section 1. The Govemilg Body hereby finds that the Petition Is sulficiffl, and lullher finds and detemlines that ij is necessary and advisable to malce the following Improvements; (a} The natum ol the ~menls am as follow$: The cum, gutter, pavement, and grading for approidmately 765 lillllal fuel ol Rosebud Lane, 765 lileal feel .of \'/llealland Valley Drivli, •·7 ·arieai feet al Wiro:iower 1:ane. and 158 liMal klet 01 V/hea11and CirrJe (the 'Street m.,rovMlelltsi and The inilalalion ol approximately l,260lineal feet of a I0teelwidetrolli- use path along the HSI side of Mait,.tey Road, adjacent lo the Wheatland Valley Addition (lhe 'Trail IIT!llOYernenls') The installation ol apptOlimalely 1,605 lineal lee! of slOllll sewer pipe .. inlets, manholes and al: apl)t,rienances tilereto (lite 'Storm Drainage lnllrovemenls"). •he Delerilion Basin and, th& Trail Improvements &ha! be a$$essed Ori an equal per-lol basis lo an lots v.ilhin the Improvement District fT7 lots). The installat;on ol approiimatefy 161 Uneal feel of Blx~nch water main, 2,273 lineal feel ol eight-ind! waler main, tire hydran!S, ~ves. fittings, sel\lice connections lor waler Hnas and all appurtenMces lherelo (tha 'Water Syslem {e) Tile proposed apporuonmenl ol OOSI between the Improvement District and the City al Lergeis: lmprovemenl$'), ' One hundred percent (100%) of the total cost of Iha Street, Slorm Drainage, Water System, Sanitary Sewer Line A', Santtary Sewer The lnslaUalion Of approllmalely 1,502 lineal r.t o/ elghHnch sanlary: sewer main. seriite connections 101 SBWBr lines manholes, and all appu,1Sfla/1C8S lherero (the 'S11J1ttary Sewer lrrl)rovements'). The installalion ol approximately 40S lineal feel ol elgh~lncil sanitary aewer main, manholes, and al appurtenances themro (lhe 'Sankary Sewer Line N lrnpn)Vermmts'). The installation or a detention basin and all appurfananteS lhareto (!he 'Detenfion Basin'). Improvements, Trail Improvements, and Iha Detention Baaio shall be assessed to the Improvement Dislricl as set forth above Fifty percent (50%) ol !he IOlal cost ol lhe Trail Improvements shell be assessed to the Improvement Oislrict and fitty percent to the City al large. Secnon 2. The Governing Body hereby declares that the Improvements described in this Resolution a18 necassaiy, and authorizes them to be made In accordance Ytith the Pelilioo and !he findings sel forth In lhis Resolution. and rurther authorizes lhelevyingolassessrnenlsandthe (colleciiwly, '!rnplt)l'llmcr,ts'). the Issuance ol bonds theratore, all in (b) The eSlimated cost of the lmprovemems 1s: One llilior1 lour h1.11died elewn thousand eight hundred sl~•e911 dollals and six cents. ($1,411,868.05). (c) The extent of the propos&d imprOYBIIISnl dist rid 10 be assessed is: B.lock1, Lots1 through 12. Block 2, Lilts 1 through 5; Block 3, l.o1s 1 lhrough 14: Blott 5, Lots 1 through 9 Bloc! 6, lots 1 through 37, all In Wheatland Valley Addition to lhe Cily of Salina, Saijne CO!Jllty, Kansas. (calettively, the 'fn1)1ovement Olslricl'). accordance with K.S.A. 12·6a01 el seq. Section 3 The City expects to make capital e111encfitures lrorn and alter lhe date ol this Resohition lo connection wi1h the Improvements described herein, and Inlands lo revnbursa ilseH for such elC[lendilures wfth lhe proceeds ol one or mor& senes of g1111eral obligation boncfs and temporary notes of Ille City In the maximum principal amount of $1,411,868.06. Section 4. The Cily Cieri! 6hall file a certified C0J)Y ol lhis Resolution wilh the ReglSler of Deeds ol Saline County, Kansas Section 5. This R850lulion. shall take effecl atter hs pa5Sa!J8 and publlcalion once in the official ctty newspaper. ADOPTED AHO PASSED this 14th day o1 June, 2021. Melissa Rose Hodges. Mayor (d) Theproposedme!hodol Attest: 8SS8S9nenl shaB be: JoVonna A Rulheifonl, City Cllllk The toSts of lhe Street (11) Improvements, Waler System Improvements and Sriary Sewer •vements shall be assessed on an equal per-lot baSis only to the ldlolting lots in 1he Improvement District (29 lots): Block t, Lols10-12 Blodr2,Lots 1·5 Blocl< 3, Lots t-10 Block 6, l.ols6-16 The Costs ol Sanitary sewer Line A' lmprovanents, the Slorm Drainage Improvement~, EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON NOVEMBER 27, 2023 The governing body met in regular session at the usual meeting place in the City, at 4:00 P.M., the following members being present and participating, to-wit: Mayor MICHAEL L. HOPPOCK, Commissioners TRENT W. DAVIS, M.D., 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 a Resolution entitled: A RESOLUTION DECLARING IT NECESSARY TO ACQUIRE FIRE FIGHTING EQUIPMENT FOR USE BY THE FIRE DEPARTMENT OF THE CITY OF SALINA, KANSAS, AND TO ISSUE GENERAL OBLIGATION BONDS OF SAID CITY TO PAY THE COSTS THEREOF; AND PROVIDING FOR THE GIVING OF NOTICE OF INTENTION TO ACQUIRE SAID EQUIPMENT AND TO ISSUE SAID GENERAL OBLIGATION BONDS THEREFOR. Thereupon, Commissioner KARL RYAN that said Resolution be adopted. The motion was seconded by Commissioner TRENT W. DA VIS, M.D. Said 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: MICHAELL. HOPPOCK, Commissioners TRENTW. DAVIS, M.D., GREG LENKIEWICZ, BILL LONGBINE and KARL RYAN Nay: NONE. Thereupon, the Mayor declared said Resolution duly adopted and the Resolution was then duly numbered Resolution No. 23-8169 and was signed by the Mayor and attested by the Clerk. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20254\PA -FIRE EQUIPMENT CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL}·. ~;s:s:s:::s~ 600596.20254\P A -FIRE EQUIPMENT (Signature page to Excerpt of Minutes) RESOLUTION NO. 23-8169 A RESOLUTION DECLARING IT NECESSARY TO ACQUIRE FIRE FIGHTING EQUIPMENT FOR USE BY THE FIRE DEPARTMENT OF THE CITY OF SALINA, KANSAS, AND TO ISSUE GENERAL OBLIGATION BONDS OF SAID CITY TO PAY THE COSTS THEREOF; AND PROVIDING FOR THE GIVING OF NOTICE OF INTENTION TO ACQUIRE SAID EQUIPMENT AND TO ISSUE SAID GENERAL OBLIGATION BONDS THEREFOR. WHEREAS, K.S.A. 12-ll0c (the "Act") authorizes any city operating a fire department to acquire fire-fighting equipment for the use of such fire department and to pay the cost thereof by the issuance of general obligation bonds of the city, provided, that, no such bonds shall be issued until the city has first published a notice of its intention to acquire such equipment and to issue its general obligation bonds therefor; and WHEREAS, the City of Salina, Kansas (the "City") operates a fire department (the "Fire Department"), and the governing body of said City hereby finds and determines it to be necessary to acquire fire-fighting equipment for use by the Fire Department and hereby further finds and determines it to be necessary to issue general obligation bonds of the City in order to provide funds to pay all or a portions of the cost thereof; and hereby further finds and determines it to be necessary to provide for the giving of notice of said intention in the manner prescribed by the Act. THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS; Section 1. Declaration of Necessity. It is hereby declared to be necessary to acquire fire- fighting equipment (the "Equipment") for use by the Fire Department, under the provisions of the Act. Section 2. Financing Authority. The estimated cost of acquiring the Equipment is $10,000,000. The costs of the Equipment will be paid from the proceeds of general obligation bonds (the "Bonds") of the City in an amount not to exceed $10,000,000 plus cost of issuance and interest on any temporary financing to be issued by the City for said purpose. Section 3. Reimbursement Authority. The Bonds authorized herein may be issued to reimburse expenditures made on or after the date that is 60 days before the date of this Resolution pursuant to Treasury Regulation § 1.150-2. Section 4. Notice of Intent. A notice of the intention to acquire the Equipment and issue the Bonds to pay the costs thereof, interest on interim financing and associated financing costs shall be published once each week for two (2) consecutive weeks in the official City newspaper. If, within sixty (60) days following the date of such last publication, a petition signed by not less than five percent (5%) of the qualified electors of the City is filed with the City Clerk, then no such Bonds shall be issued until the issuance thereof shall have been approved by a majority of the qualified electors of the City voting on the question of such issuance at an election to be called and held for that purpose. If, however, no such protest petition is timely filed, the City will proceed with the acquisition of the Equipment and the issuance of the Bonds. 600596.20254\FA-FIRE EQUIPMENT 600596.20254\PA-FIRE EQUIP1\.1ENT 2 CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of the Resolution No. 23-8169 of the City of Salina, Kansas adopted by the governing body on November 27, 2023 as the same appears of record in my office. DATED: November 27, 2023. 600596.20254\P A -FIRE EQUIPMENT 2 (Published in the Salina Journal on December 1, 2023, and subsequently on December 8, 2023) NOTICE OF INTENT TO: ALL RESIDENTS OF THE CITY OF SALINA, KANSAS: Public notification is given that the governing body of the City of Salina, Kansas (the "City") adopted a resolution on November 27, 2023, declaring it to be necessary to acquire fire-fighting equipment (the "Equipment") for use by the City Fire Department (the "Fire Department"), under the provisions of K.S.A. 12-1 l0c (the "Act"), at an estimated cost of $10,000,000. The costs of the Equipment will be paid from the proceeds of general obligation bonds of the City (the "Bonds") in an amount of not to exceed $10,000,000 plus costs of issuance and interest on any temporary financing to be issued by the City for said purpose. This Notice of Intent shall be published once each week for two (2) consecutive weeks in the official City newspaper; and if, within sixty (60) days following the date of the last publication, a petition signed by not less than five percent (5%) of the qualified electors of the City, is filed with the City Clerk, no such Bonds shall be issued until the issuance thereof shall have been approved by a majority of the qualified electors of the City voting on the question of such issuance at an election to be called and held for that purpose. If, however, no such protest petition is timely filed, the governing body of the City will proceed with the acquisition of the Equipment and the issuance of the Bonds. DATED: December 1, 2023. /S/ Michael L. Hoppock, Mayor & Commissioner ATTEST: /S/ Nikki Goding, City Clerk 600596.20254\P A -FIRE EQUil'lvIBNT LOCALiQ Salina Journal The Hutchinson News The Topeka Capital-Journal PO Box 631367 Cincinnati, OH 45263-1367 PROOF OF PUBLICATION Nikki Goding Jo Vanna Rutherford City of Salina City Clerk 300 West Ash Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and -continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 12/01/2023, 12/08/2023 Sworn to and subscribed before on 12/08/2023 Notary,~!, bouniy of Brdiii '2 / 7 l 2.--'J My commision expires 7 Publication Cost: $253.26 Order No: 9569272 Customer No: 594307 PO#: THIS IS NOT AN INVOICE! Please do not use this form for payment remittance . # of Copies: 1 .... -"~~:rw~~~-! KAITLYN FELTY 1 Notary Pub I ic State of Wisconsin NOTICE OF INTENT TO; ALL RESIDENTS OF THE C1TY OF SALINA, KANSAS: Public notification is given that the governing body of the City of Salina, Kansas (the "City") adopted a resa- lutlon on November 27, 2023, declaring it to be necessary to acquire fire-fighting equip- ment (the "Equipment") for use by the City Fire Depart- ment (the "Fire Depart- ment"), under the provisions of K.S,A. 12-ll0c (the "Act"), at an estimated cost of $10,000,000. The costs of the Equipment will be paid from the proceeds of general obligation bonds of the City (the "Bonds") In an amount not to exceed $10,000,000 plus cost of issuance and interest on any temporary financing to be issued by the City for said purpose. This Notice of Intent shall be publfshed once each week for two (2) consecutive weeks in the official City newspaper; and If, within sixty (60) days following the date of the lost publication, o petition signed by not less than five percent (5%) of the quallfied electors of the City, is filed with the City Clerk, no such Bonds shall be Issued until the issuance thereof shall hove been approved by a moiority of the qualified electors of the City voting on the ques- tion of such issuance at on election to be called and held for that purpose. If, however, no such protest petition is tlmely filed, the governing body of the City will proceed with the acquisition of the Equipment and the Issuance of the Bonds. DATED: December 1, 2023. /S/ Michael L. Hoppock, Mayor & commissioner ATTEST: /S/ Nikki Goding, City Clerk Page 1 of 1 CERTIFICATE OF NO PROTEST STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) GILMORE & BELL, P.C. 02/06/2024 The undersigned, Clerk of the City of Salina, Kansas (the "City"), does hereby certify that a Notice of Intent was published in the Salina Journal on December 1, 2023 and subsequently on December 8, 2023, pursuant to a resolution adopted by the governing body of the City on November 27, 2023, declaring it necessary to acquire firefighting equipment for use by the City Fire Department at an estimated cost of $10,000,000, and to issue general obligation bonds of the City (the "Bonds"), in an amount not to exceed $10,000,000 plus costs of issuance and interest on interim financing, under the authority of K.S.A. 12-ll0c (the "Act") in order to pay the costs thereof. More than sixty (60) days has elapsed from the date of the last publication of the Notice of Intent; and there has been no sufficient written protest filed in my office against the acquisition of the Equipment or against the issuance of the Bonds, as provided by the Act. WITNESS my hand and official seal on February 6, 2024. (Seal) '-fltk~ CityClerk 600596.20254\P A -FIRE EQUIPl'vlENT EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON APRIL 8, 2024 Gilmore & Bell, P.C. 03/26/2024 The Commission met in regular session at the usual meeting place in the City at 4:00 P.M., the Mayor presided and the following members of the Commission being present and participating, to-wit: Mayor BILL LONGBINE, Commissioners TRENT W. DA VIS, M.D., MIKE HOPPOCK, JERRY IVEY II and GREG LENKIEWICZ Absent: NONE. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) There were presented certain documents relating to the following described improvements previously authorized by the governing body: Lakeview Estates Addition No. 2 Phase 1 -Utility, Street and Drainage Resolution No. 22-8028 The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Magnolia Hills Estates Addition No. 2, Phase 2 -Utility, Street and Drainage Resolution No. 22-8044 The curb, gutter, pavement, and grading for approximately 383 lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements"). The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Wheatland Valley Addition -Utility, Street and Drainage Resolution No. 21-7964 The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 158 lineal feet of Wheatland Circle (the "Street Improvements"). The installation of approximately 1,260 lineal feet of a 10 feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water main, 2,273 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). The documents presented are as follows: Exhibit A -Statement of Final Costs Exhibit B -Assessment Roll Certification Exhibit C -Notice of Public Hearing Exhibit D -Form of Notice of Hearing and Statement of Cost Proposed to be Assessed 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) 2 action: After full consideration thereof, Commissioner GREG LENKIEWICZ moved to take the following 1. Approve each of the documents; 2. Establish April 22, 2024 at 4:00 P.M., or as soon thereafter as may be heard, to meet for the purpose of hearing any and all written or oral objections to the respective assessments set forth therein; 3. Cause the City Clerk to publish the Notice of Public Hearing (Exhibit C) in the official City newspaper not less than 10 days prior to such public meeting date; 4. Mail the Form of Notice of Hearing and Statement of Cost Proposed to be Assessed (Exhibit D) to each and all owners of property affected by such assessments at their last known post office address on the same date as the publication of Notice of Public Hearing; and 5. File each of the documents of record in the office of the City Clerk and make the same available for public inspection. The motion was seconded by Commissioner TRENT W. DA VIS, M.D., and approved by the following roll call vote: Yea: BILL LONGBINE, TRENT W. DAVIS, M.D., JERRY IVEY II, GREG LENKIEWICZ Recused: MIKE HOPPOCK Nay: NONE. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) 3 CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) ~ 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) EXHIBIT A-I CITY OF SALINA, KANSAS LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 STATEMENT OF FINAL COSTS CONSTRUCTION & ENGINEERING CITY COSTS (5%) COSTS OF ISSUANCE TOTAL 600596.20255\12-6A0I ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) A-1 $764,798.79 36,266.44 14,506.58 $815571.81 EXHIBITA-2 CITY OF SALINA, KANSAS MAGNOLIA HILLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 STATEMENT OF FINAL COSTS CONSTRUCTION & ENGINEERING CITY COSTS (5%) COSTS OF ISSUANCE TOTAL 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) A-2 $669,367.86 30,484.37 12,193.75 $712,045.98 EXHIBITA-3 CITY OF SALINA, KANSAS WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 STATEMENT OF FINAL COSTS CONSTRUCTION & ENGINEERING CITY COSTS (5%) COSTS OF ISSUANCE TOTAL 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) A-1 $1,260,309.85 56,947.12 22.778.85 $1 340,035.82 EXHIBITB ASSESSMENT ROLL CERTIFICATION The undersigned having been designated by the City of Salina, Kansas (the "City"), to determine the amounts of the respective assessments and to prepare the proposed Assessment Roll therefor in connection with certain internal improvements previously authorized by the governing body hereby reports that each and all of the respective assessments have been determined to be as shown on the Schedule(s) attached hereto and made a part hereof by reference as though fully set out herein. Dated April 8, 2024. CITY OF SALINA, KANSAS By:~ CityClerk 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) B-1 SCHEDULE 1-1 LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Description of Property Lot 1 Block 1, Lakeview Estates Addition Lot 2 Block 1, Lakeview Estates Addition Lot 3 Block 1, Lakeview Estates Addition Lot 4 Block 1, Lakeview Estates Addition Lot 5 Block 1, Lakeview Estates Addition Lot 6 Block 1, Lakeview Estates Addition Lot 7 Block 1, Lakeview Estates Addition Lot 8 Block 1, Lakeview Estates Addition Lot 9 Block 1, Lakeview Estates Addition Lot 1 Block 2, Lakeview Estates Addition Lot 2 Block 2, Lakeview Estates Addition Lot 3 Block 2, Lakeview Estates Addition 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-1 Amount of Proposed Assessment $257,428.10 109,526.41 139,759.37 7,853.78 4,547.02 2,911.96 2,823.64 3,088.40 4,323.67 147,691.12 67,912.79 67,705.55 SCHEDULE 1-2 MAGNOLIA HILLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 Description of Property Lot 6 Block 5, Magnolia Hills Estates Addition No. 2 Lot 7 Block 5, Magnolia Hills Estates Addition No. 2 Lot 8 Block 5, Ma!'molia Hills Estates Addition No. 2 Lot 9 Block 5, Magnolia Hills Estates Addition No. 2 Lot 2 Block 6, Magnolia Hills Estates Addition No. 2 Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 Lot 1 Block 7, Magnolia Hills Estates Addition No. 2 Lot 2 Block 7, Magnolia Hills Estates Addition No. 2 Lot 3 Block 7, Ma1molia Hills Estates Addition No. 2 Lot 4 Block 7, Magn olia Hills Estates Addition No. 2 Lot 5 Block 7, Magnolia Hills Estates Addition No. 2 Lot 6 Block 7, Ma!rnolia Hills Estates Addition No. 2 Lot 7 Block 7, Magnolia Hills Estates Addition No. 2 Lot 8 Block 7, Magnolia Hills Estates Addition No. 2 Lot 9 Block 7, Maimolia Hills Estates Addition No. 2 Lot 1 Block 8, Mai:molia Hills Estates Addition No. 2 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-2 Amount of Proposed Assessment $44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 SCHEDULE 1-3 WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Property Lot 1 Block 1, Wheatland Valley Addition Lot 2 Block 1, Wheatland Valley Addition Lot 3 Block 1, Wheatland Valley Addition Lot 4 Block 1, Wheatland Valley Addition Lot 5 Block 1, Wheatland Valley Addition Lot 6 Block 1, Wheatland Valley Addition Lot 7 Block 1, Wheatland Valley Addition Lot 8 Block 1, Wheatland Valley Addition Lot 9 Block 1, Wheatland Valley Addition Lot 10 Block 1, Wheatland Valley Addition Lot 11 Block 1, Wheatland Valley Addition Lot 12 Block 1, Wheatland Valley Addition Lot 1 Block 2, Wheatland Valley Addition Lot 2 Block 2, Wheatland Valley Addition Lot 3 Block 2, Wheatland Valley Addition Lot 4 Block 2, Wheatland Valley Addition Lot 5 Block 2, Wheatland Valley Addition Lot 1 Block 3, Wheatland Valley Addition Lot 2 Block 3, Wheatland Valley Addition Lot 3 Block 3, Wheatland Valley Addition Lot 4 Block 3, Wheatland Valley Addition Lot 5 Block 3, Wheatland Valley Addition Lot 6 Block 3, Wheatland Valley Addition Lot 7 Block 3, Wheatland Valley Addition Lot 8 Block 3, Wheatland Valley Addition Lot 9 Block 3, Wheatland Valley Addition Lot 10 Block 3, Wheatland Valley Addition Lot 11 Block 3, Wheatland Valley Addition Lot 12 Block 3, Wheatland Valley Addition Lot 13 Block 3, Wheatland Valley Addition Lot 14 Block 3, Wheatland Valley Addition Lot 1 Block 5, Wheatland Valley Addition Lot 2 Block 5, Wheatland Valley Addition Lot 3 Block 5, Wheatland Valley Addition Lot 4 Block 5, Wheatland Valley Addition Lot 5 Block 5, Wheatland Valley Addition Lot 6 Block 5, Wheatland Valley Addition Lot 7 Block 5, Wheatland Valley Addition Lot 8 Block 5, Wheatland Valley Addition Lot 9 Block 5, Wheatland Valley Addition Lot 1 Block 6, Wheatland Valley Addition Lot 2 Block 6, Wheatland Valley Addition Lot 3 Block 6, Wheatland Valley Addition 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-3 Amount of Proposed Assessment $5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 Lot 4 Block 6, Wheatland Valley Addition Lot 5 Block 6, Wheatland Valley Addition Lot 6 Block 6, Wheatland Valley Addition Lot 7 Block 6, Wheatland Valley Addition Lot 8 Block 6, Wheatland Valley Addition Lot 9 Block 6, Wheatland Valley Addition Lot 10 Block 6, Wheatland Valley Addition Lot 11 Block 6, Wheatland Valley Addition Lot 12 Block 6, Wheatland Valley Addition Lot 13 Block 6, Wheatland Valley Addition Lot 14 Block 6, Wheatland Vallev Addition Lot 15 Block 6, Wheatland Valley Addition Lot 16 Block 6, Wheatland Valley Addition Lot 17 Block 6, Wheatland Valley Addition Lot 18 Block 6, Wheatland Valley Addition Lot 19 Block 6, Wheatland Valley Addition Lot 20 Block 6, Wheatland Valley Addition Lot 21 Block 6, Wheatland Valley Addition Lot 22 Block 6, Wheatland Valley Addition Lot 23 Block 6, Wheatland Valley Addition Lot 24 Block 6, Wheatland Valley Addition Lot 25 Block 6, Wheatland Valley Addition Lot 26 Block 6, Wheatland Valley Addition Lot 27 Block 6, Wheatland Valley Addition Lot 28 Block 6, Wheatland Valley Addition Lot 29 Block 6, Wheatland Valley Addition Lot 30 Block 6, Wheatland Valley Addition Lot 31 Block 6, Wheatland V alle-y Addition Lot 32 Block 6, Wheatland Valley Addition Lot 33 Block 6, Wheatland Valley Addition Lot 34 Block 6, Wheatland Valley Addition Lot 35 Block 6, Wheatland Valley Addition Lot 36 Block 6, Wheatland Valley Addition Lot 37 Block 6, Wheatland Valley Addition 600596.20255\12-6A0I ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-4 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 EXHIBITC (Published in the Official Newspaper of City on April 9, 2024) NOTICE OF PUBLIC HEARING TO: RESIDENTS OF THE CITY OF SALINA, KANSAS You and each of you are hereby notified that the governing body of the City of Salina, Kansas (the "City") will meet for the purpose of holding a public hearing, as provided by K.S.A. 12-6a01 et seq., at City-County Building, 300 W. Ash Street, Salina, KS 67401, in the City, on April 22, 2024, or as soon thereafter as may be heard, at 4:00 P.M. The public hearing is for the purpose of hearing any and all oral or written objections to proposed assessments in connection with the following described improvements: Lakeview Estates Addition No. 2, Phase 1 -Utility, Street and Drainage Resolution No. 22-8028 The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 9, and Block 2, Lots 1 through 3, all in the Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. Cost of Improvements: $815,571.81. 100% to be assessed against the Improvement District and 0% to be paid by the City-at-large Magnolia Hills Estates Addition No. 2, Phase 2 -Utility, Street and Drainage Resolution No. 22-8044 The curb, gutter, pavement, and grading for approximately 383 lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements"). The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) C-1 The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9; Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. Cost of Improvements: $712,045.98. 100% to be assessed against the Improvement District and 0% to be paid by the City-at-large Wheatland Valley Addition -Utility, Street and Drainage Resolution No. 21-7964 The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 158 lineal feet of Wheatland Circle (the "Street Improvements"). The installation of approximately 1,260 lineal feet of a 10 feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water main, 2,273 lineal feet of eight- inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). Property Description: Block l, Lots l through 12; and Block 2, Lots l through 5; Block 3, Lots 1 through 14; Block 5, Lots 1 through 9; Block 6, Lots 1 through 37, all in the Wheatland Valley Addition to the City of Salina, Saline County, Kansas. 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) C-2 Cost of Improvements: $1,340,035.82. 100% of the total cost of the Street hnprovements, Storm Drainage hnprovements, Water System, Sanitary Sewer Line A', Sanitary Sewer hnprovements and the Detention Basin to be assessed against the Improvement District and 50% of the total cost of the Trail Improvements shall be assessed to the hnprovement District and 50% to be paid by the City-at-large An Assessment Roll prepared in accordance with the referenced Resolution(s) approved by the governing body is on file in the Office of the City Clerk and may be examined by any interested party. At the conclusion of the public hearing, the governing body will consider an Ordinance levying such special assessments. DATED April 8, 2024. Isl Nikki Goding, City Clerk 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) C-3 EXHIBITD NOTICE OF HEARING AND STATEMENT OF COST PROPOSED TO BE ASSESSED Property Owner: April 9, 2024 Salina, Kansas You are hereby notified, as owner of record of the property described on Schedule I attached hereto, that there is proposed to be assessed against the property, certain amounts for the costs of certain internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the "City"). The description of the Improvements, the resolution number authorizing the same and the proposed amount of assessment are set forth on Schedule I attached hereto. You are hereby further notified that the governing body of the City will meet on April 22, 2024, at 4:00 P.M., at City-County Building, 300 W. Ash Street, Salina, KS 67401, for the purpose of considering the proposed assessments. The proposed Assessment Roll is on file in my office for public inspection. WRITTEN OR ORAL OBJECTIONS TO THE PROPOSED ASSESSMENTS WILL BE CONSIDERED AT THE PUBLIC HEARING. At the conclusion of the public hearing, the governing body of the City will consider an ordinance levying such special assessments. A subsequent Notice of Assessment will be mailed to affected property owners at that time indicating that each property owner may pay the assessment in whole or in part within thirty (30) days from the date of such notice. Any amount not so paid within the time period prescribed will be collected in 15 annual installments, together with interest on such amounts remaining unpaid at a rate not exceeding the maximum rate therefor as prescribed by K.S.A. 12-6a01 et seq. 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) D-1 Nikki Goding, City Clerk SCHEDULE I LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Description of Property Amount of Proposed Assessment Lot 1 Block 1, Lakeview Estates Addition $257,428.10 Lot 2 Block 1, Lakeview Estates Addition 109,526.41 Lot 3 Block 1, Lakeview Estates Addition 139,759.37 Lot 4 Block 1, Lakeview Estates Addition 7,853.78 Lot 5 Block I, Lakeview Estates Addition 4,547.02 Lot 6 Block 1, Lakeview Estates Addition 2,911.96 Lot 7 Block 1, Lakeview Estates Addition 2,823.64 Lot 8 Block 1, Lakeview Estates Addition 3,088.40 Lot 9 Block 1, Lakeview Estates Addition 4,323.67 Lot 1 Block 2, Lakeview Estates Addition 147,691.12 Lot 2 Block 2, Lakeview Estates Addition 67,912.79 Lot 3 Block 2, Lakeview Estates Addition 67,705.55 MAGNOLIA HILLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 Description of Property Lot 6 Block 5, Magnolia Hills Estates Addition No. 2 Lot 7 Block 5, Maenolia Hills Estates Addition No. 2 Lot 8 Block 5, Maenolia Hills Estates Addition No. 2 Lot 9 Block 5, Ma!!llolia Hills Estates Addition No. 2 Lot 2 Block 6, Magnolia Hills Estates Addition No. 2 Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 Lot 1 Block 7, Magnolia Hills Estates Addition No. 2 Lot 2 Block 7, Ma!molia Hills Estates Addition No. 2 Lot 3 Block 7, Magnolia Hills Estates Addition No. 2 Lot 4 Block 7, Magnolia Hills Estates Addition No. 2 Lot 5 Block 7, Magnolia Hills Estates Addition No. 2 Lot 6 Block 7, Mam olia Hills Estates Addition No. 2 Lot 7 Block 7, Mam olia Hills Estates Addition No. 2 Lot 8 Block 7, Ma!!llolia Hills Estates Addition No. 2 Lot 9 Block 7, Magnolia Hills Estates Addition No. 2 Lot 1 Block 8, Ma!molia Hills Estates Addition No. 2 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-1 Amount of Proposed Assessment $44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Property Lot 1 Block 1, Wheatland Valley Addition Lot 2 Block 1, Wheatland Valley Addition Lot 3 Block 1, Wheatland Valley Addition Lot 4 Block 1, Wheatland Valley Addition Lot 5 Block 1, Wheatland Valley Addition Lot 6 Block 1, Wheatland Valley Addition Lot 7 Block 1, Wheatland Valley Addition Lot 8 Block 1, Wheatland Valley Addition Lot 9 Block 1, Wheatland Valley Addition Lot 10 Block 1, Wheatland Valley Addition Lot 11 Block 1, Wheatland Valley Addition Lot 12 Block 1, Wheatland Valley Addition Lot 1 Block 2, Wheatland Valley Addition Lot 2 Block 2, Wheatland Valley Addition Lot 3 Block 2, Wheatland Valley Addition Lot 4 Block 2, Wheatland Valley Addition Lot 5 Block 2, Wheatland Valley Addition Lot 1 Block 3, Wheatland Valley Addition Lot 2 Block 3, Wheatland Valley Addition Lot 3 Block 3, Wheatland Valley Addition Lot 4 Block 3, Wheatland Valley Addition Lot 5 Block 3, Wheatland Valley Addition Lot 6 Block 3, Wheatland Valley Addition Lot 7 Block 3, Wheatland Valley Addition Lot 8 Block 3, Wheatland Valley Addition Lot 9 Block 3, Wheatland Valley Addition Lot 10 Block 3, Wheatland Valley Addition Lot 11 Block 3, Wheatland Valley Addition Lot 12 Block 3, Wheatland Valley Addition Lot 13 Block 3, Wheatland Valley Addition Lot 14 Block 3, Wheatland Valley Addition Lot 1 Block 5, Wheatland Valley Addition Lot 2 Block 5, Wheatland Valley Addition Lot 3 Block 5, Wheatland Valley Addition Lot 4 Block 5, Wheatland Valley Addition Lot 5 Block 5, Wheatland Valley Addition Lot 6 Block 5, Wheatland Valley Addition Lot 7 Block 5, Wheatland Valley Addition Lot 8 Block 5, Wheatland Valley Addition Lot 9 Block 5, Wheatland Valley Addition Lot 1 Block 6, Wheatland Valley Addition Lot 2 Block 6, Wheatland Valley Addition Lot 3 Block 6, Wheatland Valley Addition Lot 4 Block 6, Wheatland Valley Addition Lot 5 Block 6, Wheatland Valley Addition 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-2 Amount of Proposed Assessment $5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 Lot 6 Block 6, Wheatland Valley Addition Lot 7 Block 6, Wheatland Valley Addition Lot 8 Block 6, Wheatland Valley Addition Lot 9 Block 6, Wheatland Valley Addition Lot 10 Block 6, Wheatland Valley Addition Lot 11 Block 6, Wheatland Valley Addition Lot 12 Block 6, Wheatland Valley Addition Lot 13 Block 6, Wheatland Valley Addition Lot 14 Block 6, Wheatland Valley Addition Lot 15 Block 6, Wheatland Valley Addition Lot 16 Block 6, Wheatland Valley Addition Lot 17 Block 6, Wheatland Valley Addition Lot 18 Block 6, Wheatland Valley Addition Lot 19 Block 6, Wheatland Valley Addition Lot 20 Block 6, Wheatland Valley Addition Lot 21 Block 6, Wheatland Valley Addition Lot 22 Block 6, Wheatland Valley Addition Lot 23 Block 6, Wheatland Valley Addition Lot 24 Block 6, Wheatland Valley Addition Lot 25 Block 6, Wheatland Valley Addition Lot 26 Block 6, Wheatland Valley Addition Lot 27 Block 6, Wheatland Valley Addition Lot 28 Block 6, Wheatland Valley Addition Lot 29 Block 6, Wheatland Valley Addition Lot 30 Block 6, Wheatland Valley Addition Lot 31 Block 6, Wheatland Valley Addition Lot 32 Block 6, Wheatland Valley Addition Lot 33 Block 6, Wheatland Valley Addition Lot 34 Block 6, Wheatland Valley Addition Lot 35 Block 6, Wheatland Valley Addition Lot 36 Block 6, Wheatland Valley Addition Lot 37 Block 6, Wheatland Valley Addition 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-3 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 AFFIDAVIT STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, duly appointed City Clerk for the City of Salina, Kansas (the "City") pursuant to the laws of the state Kansas and the ordinances, resolutions and Code of the City, being oflawful age, first being duly sworn, on oath states: I. On April 9, 2024, the attached Notice was posted by the undersigned or designee on the City's official website www.salina-ks.oov), which website has been designated as the official newspaper of the City. my hand and official seal on June , 2024. ··•••••••••·· ~~ijANIZE:;•••~ : . \ 1870 : . . ·-.. ... . .-.. ~ ••••·· ···••• nstrurileht was subscribed and sworn to or affirmed before me on this _l_J_ day of June, 1kki Goding_/City Clerk, City of Salina, Kansas. (Seal) ~-. SHANOI L, WICKS ~ Notary Public • State I K!!MH My Appt. Expires Notary Public (Published on the City of Salina website (https://www.salina-ks.gov) on April 9, 2024) NOTICE OF PUBLIC HEARING TO: RESIDENTS OF THE CITY OF SALINA, KANSAS You and each of you are hereby notified that the governing body of the City of Salina, Kansas ( the "City") will meet for the purpose of holding a public hearing, as provided by K.S.A. 12-6a01 et seq., at City-County Building, 300 W. Ash Street, Salina, KS 67401, in the City, on April 22, 2024, or as soon thereafter as may be heard, at 4:00 P.M. The public hearing is for the purpose of hearing any and all oral or written objections to proposed assessments in connection with the following described improvements: Lakeview Estates Addition No. 2, Phase 1-Utility, Street and Drainage Resolution No. 22-8028 The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 9, and Block 2, Lots 1 through 3, all in the Lakeview Estates Addition No. 2 to the City of Salina, Saline County, Kansas. Cost of Improvements: $815,571.81. 100% to be assessed against the Improvement District and 0% to be paid by the City-at-large Magnolia Hills Estates Addition No. 2, Phase 2 -Utility, Street and Drainage Resolution No. 22-8044 The curb, gutter, pavement, and grading for approximately 383 lineal feet ofKasyn Lane, 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements"). The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Property Description: Block 5, Lots 6 through 9; Block 6, Lots 2 through 3; Block 7, Lots 1 through 9; Block 8, Lot 1, all in Magnolia Hills Estates Addition No. 2 to the City of Salina, Saline County, Kansas. Cost of Improvements: $712,045.98. 100% to be assessed against the Improvement District and 0% to be paid by the City-at-large Wheatland Valley Addition -Utility, Street and Drainage Resolution No. 21-7964 The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 158 lineal feet of Wheatland Circle (the "Street Improvements"). The installation of approximately 1,260 lineal feet of a 10 feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water main, 2,273 lineal feet of eight- inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). ( collectively, the "Improvements"). Property Description: Block 1, Lots 1 through 12; and Block 2, Lots 1 through 5; Block 3, Lots 1 through 14; Block 5, Lots 1 through 9; Block 6, Lots 1 through 37, all in the Wheatland Valley Addition to the City of Salina, Saline County, Kansas. Cost of Improvements: $1,340,035.82. 100% of the total cost of the Street Improvements, Storm Drainage Improvements, Water System, Sanitary Sewer Line A', Sanitary Sewer Improvements and the Detention Basin to be assessed against the Improvement District and 50% of the total cost of the Trail Improvements shall be assessed to the Improvement District and 50% to be paid by the City-at-large An Assessment Roll prepared in accordance with the referenced Resolution(s) approved by the governing body is on file in the Office of the City Clerk and may be examined by any interested party. At the conclusion of the public hearing, the governing body will consider an Ordinance levying such special assessments. DATED April 8, 2024. Isl Nikki Goding, City Clerk • li.>ll!:,.1 NEWS RELEASES Cti"tJck our the filtest City of Salinc1 news eetease~ to stc1y U~· lO·d~te. NEWS i(f)(i>:,,i.vi-. Public Hearing for 2023 Special Assessments Vlt-wAUNews NEWS ~ ' J... I=== l - .At,:f~.2024 Resolution 24-B196 ..:.+,1 C'-202"f> UTILITY REPAIR ON 5. 11TH STREET ---------- ==-== =--= =--==-- ,'F T°"lE C"T, Of SA '.J.·\.. K.-\NS.:\S NOTICE OF PUBLIC HEARING ,iC-dft:' t:~reb) ri~til1~d tha: t.!le go,~m i'";;J L;,c.:iy o• Ltl~ Ci Ly C \<t a • .C:i:il<.:id..1 lltH:i--City' j N:,1 n:1:.d !a~ th~ purp•.)5-e, of 110'.::I r.g <.i p-1.,-:..J!•:.; re:H. ·g. ib pru-~ .jt,:"'J O} K.S.f\. '2-f,30) e: <,I:!'□~ d~ C ~:i ~:JO"' th•r-=••te1 d!o ~~'.iiJ. ba-tlii:!< ~u. a~ 1~::.t.:i P.M. i:·e ~-L.Uh.:.: ti,,d·wg ,,, 'o• t•:e ~uma!!~ a• r·ean·•g.an~ .;rd o'! cral er •,.._:rn.11.. •• :.,L:,1oe-:. o··= l~ ::,rcor.::seO ::3s::,e~:.m;;mt=z: in ci..:nne:;~ :-,·· . -:t, l"le .Addition No. 2. Phase i -Utility. 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D ..,LrJ,.:~ Yn,:j !:Ch ':.Ob.\ t::1P1d l:".>' lhlD C _y-;,:-la·~-2 '..:.'1\j :.,r;:.~Jt"-d ,11.,.;.:c,;u•di11.,.::1i t. s:r· lhs. ~efe1eoc:.i:c:l !:;!i:i'::C J'Z,Jrl'S; ar-w~:.·.,.;;t b;· Uu,; ~O\•urn ny ::od:;.· 1.: en •.,;, u-,"1 ()f11t:e-d 1'1& C ty C!oark a;·d ·r~;..;.-_. b..-,;.x::11"?imEd ~ a,,:, wl;;.u.::.t&J r.: :.tl)" ~\t trie t."on,_ ...._c;, ... e c J sud~ !iOec:1d· a»e!.:.,nerus. STATE OF KANSAS COUNTY OF SALINE CERTIFICATE OF MAILING ) ) ss: ) The undersigned, City Clerk of the City of Salina, Kansas (the "City"), does hereby certify that on April 9, 2024, I caused to be mailed to each and all of the owners of property affected thereby, at their last known post office address, a Notice of Public Hearing and Statement of the Cost Proposed to be Assessed in connection with certain improvements in the City. A sample copy of the form of such Notice of Hearing and Statement of Cost Proposed to be Assessed is attached hereto. WITNESS my hand and seal as of April 9, 2024. (Seal) ··•••••••••·· .. .. /oRGAN/Z~a\. l 1a10 ; ··. ~ ...... · .. .. ··•··· ···•• [attach sample copy of form] 'i: .. ,.: ; .• i. ;:I 600596.20255\12-6A01 ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) FINANCE DEPARTMENT Nikki Goding City Clerk 300 West Ash • P.O. Box 736 Salina, Kansas 67402-0736 Property Owner: Cityof ~ Sallna TELEPHONE • (785) 309-5735 FAX • (785) 309-5738 E-MAIL Nikki . Godi ng@sa l i na. org WEBSITE · www.salina-ks.gov April 11, 2024 Salina, Kansas You are hereby notified, as owner of record of the property described on Scl,edule I attached hereto, that there is proposed to be assessed against the property, certain amounts for the costs of certain internal improvements (the "Improvements") previously authorized by the governing body of the City of Salina, Kansas (the '"City"). The description of the Improvements, the resolution number authorizing the same and the proposed amount of assessment are set forth on Scl,edule I attached hereto. You are hereby further notified that the governing body of the City will meet on April 22, 2024, at 4:00 P.M., at City-County Building, 300 W. Ash Street, Salina, KS 67401. for the purpose of considering the proposed assessments. The proposed Assessment Roll is on file in my office for public inspection. JVRITTEN OR ORAL OBJECTIONS TO THE PROPOSED ASSESSMENTS WILL BE CONSIDERED AT THE PUBLIC HEARING. At the conclusion of the public hearing, the governing body of the City will consider an ordinance levying such special assessments. A subsequent Notice of Assessment will be mailed to affected property owners at that time indicating that each property owner may pay the assessment in whole or in part within thirty (30) days from the date of such notice. Any amount not so paid within the time period prescribed will be collected in 15 annual installments, together with interest on such amounts remaining unpaid at a rate not exceeding the maximum rate therefor as prescribed by K.S.A. J2-6a01 et seq. 600596.20255\12-6AOI ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) D-1 Nikki Goding, City Clerk SCHEDULE/ LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Description of Property Amount of Proposed Assessment Lot I Block I, Lakeview Estates Addition $257,428.10 Lot 2 Block I, Lakeview Estates Addition 109,526.4] Lot 3 Block I, Lakeview Estates Addition 139,759.37 Lot 4 Block 1, Lakeview Estates Addition 7,853.78 Lot 5 Block 1, Lakeview Estates Addition 4,547.02 Lot 6 Block I, Lakeview Estates Addition 2,911.96 Lot 7 Block 1, Lakeview Estates Addition 2,823.64 Lot 8 Block 1, Lakeview Estates Addition 3,088.40 Lot 9 Block 1, Lakeview Estates Addition 4,323.67 Lot 1 Block 2, Lakeview Estates Addition 147,691.12 Lot 2 Block 2, Lakeview Estates Addition 67,912.79 Lot 3 Block 2, Lakeview Estates Addition 67,705.55 MAGNOLIA HILLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 Description of Property Lot 6 Block 5, Magnolia Hills Estates Addition No. 2 Lot 7 Block 5, Magnolia Hills Estates Addition No. 2 Lot 8 Block 5, Magnolia Hills Estates Addition No. 2 Lot 9 Block 5, Maimolia Hills Estates Addition No. 2 Lot 2 Block 6, Maimo)ia Hills Estates Addition No. 2 Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 Lot 1 Block 7, Ma!!.Dolia Hills Estates Addition No. 2 Lot 2 Block 7, Magnolia Hills Estates Addition No. 2 Lot 3 Block 7, Magnolia Hills Estates Addition No. 2 Lot 4 Block 7, Magnolia Hills Estates Addition No. 2 Lot 5 Block 7, Magnolia Hills Estates Addition No. 2 Lot 6 Block 7, Magnolia Hills Estates Addition No. 2 Lot 7 Block 7, Magnolia Hills Estates Addition No. 2 Lot 8 Block 7, Magnolia Hills Estates Addition No. 2 Lot 9 Block 7, Magnolia Hills Estates Addition No. 2 Lot 1 Block 8, Magnolia Hills Estates Addition No. 2 600596.20255\12-6AOI ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-1 Amount of Proposed Assessment $44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 44,502.87 WHEATLAI'I~ VALLEY ADDITION-UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Property Lot 1 Block 1, Wheatland Valley Addition Lot 2 Block 1, Wheatland Valley Addition Lot 3 Block I, Wheatland Valley Addition Lot 4 Block I, Wheatland Valley Addition Lot 5 Block 1, Wheatland Valley Addition Lot 6 Block I, Wheatland Valley Addition Lot 7 Block l, Wheatland Valley Addition Lot 8 Block I, Wheatland Valley Addition Lot 9 Block 1, Wheatland Valley Addition Lot 10 Block I, Wheatland Valley Addition Lot 11 Block I, Wheatland Valley Addition Lot 12 Block I, Wheatland Valley Addition Lot 1 Block 2, Wheatland Valley Addition Lot 2 Block 2, Wheatland Valley Addition Lot 3 Block 2, Wheatland Valley Addition Lot 4 Block 2, Wheatland Valley Addition Lot 5 Block 2, Wheatland Valley Addition Lot 1 Block 3, Wheatland Valley Addition Lot 2 Block 3, Wheatland Valley Addition Lot 3 Block 3, Wheatland Valley Addition Lot 4 Block 3, Wheatland Valley Addition Lot 5 Block 3, Wheatland Valley Addition Lot 6 Block 3. Wheatland Valley Addition Lot 7 Block 3, Wheatland Valley Addition l.rt S'Block 3 "Wheafland"Y:jlley ;.\dclition , '~CT-. .. Lot 9 Block 3, Wheatland Valley Addition Lot 10 Block 3, Wheatland Valley Addition Lot 11 Block 3, \Vheatland Valley Addition Lot 12 Block 3, Wheatland Valley Addition Lot 13 Block 3, Wheatland Valley Addition Lot 14 Block 3, Wheatland Valley Addition Lot I Block 5, Wheatland Valley Addition Lot 2 Block 5, Wheatland Valley Addition Lot 3 Block 5, Wheatland Valley Addition Lot 4 Block 5, Wheatland Valley Addition Lot 5 Block 5, Wheatland Valley Addition Lot 6 Block 5, Wheatland Valley Addition Lot 7 Block 5, Wheatland Valley Addition Lot 8 Block 5, Wheatland Valley Addition Lot 9 Block 5, Wheatland Valley Addition Lot 1 Block 6, Wheatland Valley Addition Lot 2 Block 6, Wheatland Valley Addition Lot 3 Block 6, Wheatland Valley Addition Lot 4 Block 6, Wheatland Valley Addition Lot 5 Block 6, Wheatland Valley Addition 600596.20255\12-6A0 I ASSESSMENTS (LAKEVIEW, ~IAGNOLIA, WHEATLAND) S-2 Amount of Proposed Assessment $5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 ·~ "1,rl'{i ·~':'JC.. _16,28Y53. _Jj 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 Lot 6 Block 6, Wheatland Valley Addition Lot 7 Block 6, Wheatland Valley Addition Lot 8 Block 6, Wheatland Valley Addition Lot 9 Block 6, Wheatland Valley Addition Lot 10 Block 6, Wheatland Valley Addition Lot 11 Block 6, Wheatland Valley Addition Lot 12 Block 6, Wheatland Valley Addition Lot 13 Block 6, Wheatland Valley Addition Lot 14 Block 6, Wheatland Valley Addition Lot 15 Block 6, Wheatland Valley Addition Lot 16 Block 6, Wheatland Valley Addition Lot 17 Block 6, Wheatland Valley Addition Lot 18 Block 6, Wheatland Valley Addition Lot 19 Block 6, Wheatland Valley Addition Lot 20 Block 6, Wheatland Valley Addition Lot 21 Block 6, Wheatland Valley Addition Lot 22 Block 6, Wheatland Valley Addition Lot 23 Block 6, 'Wheatland Valley Addition Lot 24 Block 6, Wheatland Valley Addition Lot 25 Block 6, Wheatland Valley Addition Lot 26 Block 6, Wheatland Valley Addition Lot 27 Block 6, Wheatland Valley Addition Lot 28 Block 6, Wheatland Valley Addition Lot 29 Block 6, Wheatland Valley Addition Lot 30 Block 6, Wheatland Valley Addition Lot 31 Block 6, Wheatland Valley Addition Lot 32 Block 6, Wheatland Valley Addition Lot 33 Block 6, Wheatland Valley Addition Lot 34 Block 6, Wheatland Valley Addition Lot 35 Block 6, Wheatland Valley Addition Lot 3 6 Block 6, Wheatland Valley Addition Lot 3 7 Block 6, Wheatland Valley Addition 600596.20255\l2-6AOI ASSESSMENTS (LAKEVIEW, MAGNOLIA, WHEATLAND) S-3 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON APRIL 22, 2024 Gilmore & Bell, P.C. 03/26/2024 The governing body met in regular session at the usual meeting place in the City at 4:00 P.M., the following members being present and participating, to-wit: Mayor BILL LONGBINE, Commissioners TRENT W. DA VIS, M.D., MIKE HOPPOCK, JERRY IVEY and GREG LENKIEWICZ Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The Mayor opened a public hearing for the purpose of receiving written or oral objections and considering proposed assessments for the costs of certain internal improvements previously authorized by the governing body of the City. It was determined by the governing body that notice of the public hearing was duly published and mailed in accordance with K.S.A. 12-6a01 et seq. Thereafter, the Mayor adjourned the public hearing. An Ordinance was presented entitled: AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS, AS PREVIOUSLY AUTHORIZED BY RESOLUTION NOS. 22-8028, 22-8044 AND 21-7964 OF THE CITY; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. The Ordinance was considered and discussed, and on motion of Commissioner GREG LENKIEWICZ, seconded by Commissioner TRENT W. DA VIS, M.C., the Ordinance was passed by the following vote: Yea: BILL LONGBINE, TRENT W. DA VIS, M.D., JERRY IVEY, GREG LENKIEWICZ. Recused: MIKE HOPPOCK Nay: NONE. The Mayor declared the Ordinance duly passed and the Ordinance was then numbered Ordinance No. 24-11202, was signed by the Mayor and attested by the City Clerk and the Ordinance or a summary thereof was directed to be published one time in the official newspaper of the City. The City Clerk was further directed to cause a Notice of Assessment to be mailed to each and all of the known property owners affected thereby on the same date that the Ordinance or a summary thereof is published. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) • ··•••••·· .. .. .. . .. loRGAAtz~,/·-. { 1870 ; . . .... ~---.. •· ... . .. .... .... ~ MASTER\TRADITIONAL\PROJAUTH\12-6A01 PROCEEDINGS\12-6A01 ASSESSMENTS (10-09-16) 2 1111111111111111111111111111111111111 IIIII IIII IIUll llllllllll lnl 11111111111111111I ~~-•-;'•, REBECCA SEEMAN t·f:~·~°;t,~.'.>.~EGISTER OF DEEDS SAUNE COUNTY KANSAS f( .. -'.):)eook•1437 Page· 1582-1590 \ .. ._c?1,'/•/ ■--•--,---------~,_•··~-.,~v Receipt #: 152177 Recording Fee: $0.00 ·~---~ Pages Recorded: 9 C,,J Date Recorded: 4/24/2024 9:26:01 AM ORDINANCE NO. 24-11202 RECORDING FEES: $0.00 RETURN TO: CITY CLERK ROOM 206 (Published on the City of Salina website (https://www.salina-.ks.g~lV) on April-23., 2024.) --- ORDINANCE NO. 24-11202 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY mE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS, AS PREVIOUSLY AUTHORIZED BY RESOLUTION NOS. 22-8028, 22- 8044 AND 21-7964 OF THE CITY; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. WHEREAS, the governing body of the City of Salina, Kansas (the "City") has previously authorized certain internal improvements (the "Improvements") to be constructed pursuant to KS.A. 12-6a0 l et seq. (the "Act"); and WHEREAS, the governing body has conducted a public hearing in accordance with the Act and desires to levy assessments on certain property benefited by the construction of the Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. Levy of Assessments. For the purpose of paying the costs of the following described Improvements: Lakeview Estates Addition No. 2 Phase 1 -Utility, Street and Drainage Resolution No. 22-8028 The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of stonn sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1, 126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Magnolia Hills Estates Addition No. 2, Phase 2 -Utility, Street and Drainage Resolution No. 22-8044 The curb, gutter, pavement, and grading for approximately 383 lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements"). The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) I d I f I ' l I Boole 1437 Page: 1584 The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Wheatland Valley Addition -Utility, Street and Drainage Resolution No. 21-7964 1 The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of /I Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and I 58 lineal feet of Wheatland Circle (the "Street Improvements"). j! The installation of approximately 1,260 lineal feet of a 10 feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). I/ The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 161 lineal feet of six-inch water mairi, 2,273 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). there are hereby levied and assessed the amounts (with such clerical or administrative amendments thereto as may be approved by the City Attorney) against the property described on Exi,ibit A attached hereto. Section 2. Payment of Assessments. The amounts so levied and assessed in Section J hereof shall be due and payable from and after the date of publication of this Ordinance. Such amounts may be paid in whole or in part within thirty (30) days from the date of publication of this Ordinance. Section 3. Notification. The City Clerk shall notify the owners of the properties described in Exllihit A attached hereto (insofar as known to the City Clerk) of the amounts of their respective assessments. The notice shaJI also state that unless such assessments are paid within thirty (30) days from the date of publication of this Ordinance or a summary thereof, bonds will be issued therefor, and the amount of such assessment will be collected in installments with interest. Section 4. Certification. Any amount of special assessments not paid within the time prescribed in Section 2 hereof shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) I: I 2 l I I I .. Boole 1437 Page: 1585 -·---------------- manner and at the same time as other taxes are certified and will be collected in 20 annual installments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by the Act. Interest on the assessed amount remaining unpaid between the effective date of this Ordinance and the date the first installment is payable, but not less than the amount of interest due during the coming year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Section 5. Effective Date. This Ordinance shall take effect and be in force from and after its passage, approval and publication of the Ordinance once in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600S96.20255\12·6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 3 11 I l - . . E'. ·- -=- Boole 1437 Page: 1586 -- EXHIBITA-1 LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Descrintion ofProoem Amount of Proposed Assessment Lot I Block I, Lakeview Estates Addition No.2 $257,428.10 Lot 2 Block 1, Lakeview Estates Addition No.2 109,526.41 Lot 3 Block 1, Lakeview Estates Addition No.2 139,759.37 Lot 4 Block 1, Lakeview Estates Addition No.2 7,853.78 ~ Lot 5 Block 1, Lakeview Estates Addition No.2 4,547.02 ~ Lot 6 Block 1, Lakeview Estates Addition No.2 2,911.96 ~ Lot 7 Block 1, Lakeview Estates Addition No.2 2,823.64 ✓Lot 8 Block 1, Lakeview Estates Addition No.2 3,088.40 Lot 9 Block I, Lakeview Estates Addition No.2 4,323.67 ~ /Lot I BJock 2. Lakeview Estates Addition No.2 147,691.12 11 Lot 2 B1ock 2, Lakeview Estates Addition No.2 67,912.79 ~ Lot 3 Block 2, Lakeview Estates Addition No.2 67,705.55 ' 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 5 -· l I I I I I I ·-. -------- EXHIBITA-2 MAGNOLIA HILLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE Boole 1437 Page: 1587 J --.. =-=i ! t RESOLUTION NO. 22-8044 , Description of Property Amount of Proposed Assess men t • ~ Lot 6 Block 5, Magnolia HiJJs Estates Addition No. 2 $44,502.87 • Lot 7 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 1• Lot 8 Block 5, Mal?llolia Hills Estates Addition No. 2 44,502.87 , Lot 9 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 11, Lot 2 Block 6, Magnolia Hills Estates Addition No. 2 44,502.87 v Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 44,502.87 I/ Lot I Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 v Lot 2 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 v Lot 3 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 ~ Lot 4 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 " Lot 5 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 ~ Lot 6 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 1" Lot 7 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 1" .,Lot 8 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 " Lot 9 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 1 Lot I Block 8, Magnolia Hills Estates Addition No. 2 44,502.87 600596.20255\12-GA0l ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 6 l . .- .-- . .. "j -- j II. Boole 1437 Page: 1588 ------Ii --- EXHIBITA-3 WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Propcrtv Lot 1 Block 1, Wheatland Valley Addition 1• Lot 2 Block 1, Wheatland Valley Addition '"v Lot 3 Block 1, Wheatland Valley Addition ,,VLot 4 Block I, Wheatland Valley Addition , ""Lot 5 Block I, Wheatland Valley Addition ,vLot 6 Block l, Wheatland Valley Addition ,:.-Lot 7 Block I, Wheatland Valley Addition vLot 8 Block 1, Wheatland Valley Addition 1 i-Lot 9 Block 1, Wheatland Valley Addition • Lot 10 Block 1. Wheatland Vallev Addition 1/Lot 11 Block 1, Wheatland Valley Addition /Lot 12 Block 1, Wheatland Valley Addition ,.., Lot I Block 2, Wheatland Valley Addition • Lot 2 Block 2, Wheatland Valley Addition 111 Lot 3 Block 2, Wheatland VaJley Addition , Lot 4 Block 2, Wheatland Valley Addition 1v Lot 5 Block 2. Wheatland Valley Addition ,.vLot l Block 3, Wheatland Valley Addition • Lot 2 Block 3, Wheatland Valley Addition .., Lot 3 Block 3, Wheatland Valley Addition .1 Lot 4 Block 3, Wheatland Valley Addition ,..,. Lot 5 Block 3, Wheatland Valley Addition v Lot 6 Block 3, Wheatland Valley Addition I,; Lot 7 Block 3, Wheatland Valley Addition " Lot 8 Block 3, Wheatland Valley Addition ,/ Lot 9 Block 3, Wheatland Valley Addition IV V f./ v , .. Iv '" Iv '" '" 1,/ -" \ V .. • Lot 10 Block 3, Wheatland Valley Addition Lot 11 Block 3, Wheatland Valley Addition Lot 12 Block 3, Wheatland Valley Addition 1.,Lot 13 Block 3, Wheatland Valley Addition Lot 14 Block 3, Wheatland Valley Addition Lot 1 Block 5, Wheatland Valley Addition Lot 2 Block 5, Wheatland Valley Addition Lot 3 Block 5, Wheatland Vallev Addition Lot 4 Block 5, Wheatland VaJlev Addition Lot 5 Block 5, Wheatland Vallev Addition Lot 6 Block 5, Wheatland Valley Addition Lot 7 Block 5, Wheatland Valley Addition Lot 8 Block 5, Wheatland Vallev Addition Lot 9 Block 5, Wheatland Valley Addition Lot I Block 6, Wheatland Vallev Addition Lot 2 Block 6, Wheatland Vallev Addition i"l.,ot 3 Block 6, Wheatland Vallev Addition 600596.2025S\12·6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 7 Amount of Prooosed Assessment $5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5.251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 - 1 ' --. - i ~. !:a - Boole 1431 Page: 1589 r =======-==---=--="-'---------====c=_=-=-=-:=-=-=-=--=--v --:. -~ -------- Lot 4 Block 6, Wheatland Valley Addition Lot 5 Block 6, Wheatland Va1Iev Addition ·"Lot 6 Block 6, Wheatland Valley Addition 1"Lot 7 Block 6, Wheatland Val1ey Addition ' Lot 8 Block 6, Wheatland Valley Addition 1.1 Lot 9 Block 6, Wheatland Valley Addition ," Lot 10 Block 6, Wheatland Valley Addition ., Lot 11 Block 6, Wheatland Valley Addition • Lot 12 Block 6, Wheatland Valley Addition 1 Lot 13 Block 6, Wheatland Valley Addition • Lot 14 Block 6, Wheatland Valley Addition • Lot 15 Block 6, Wheatland Valley Addition • Lot l 6 Block 6, Wheatland Valley Addition 1 Lot 17 Block 6, Wheatland Valley Addition .'Lot 18 Block 6, Wheatland Valley Addition 1.., Lot 19 Block 6, Wheatland Valley Addition 11 Lot 20 Block 6, Wheatland Valley Addition v Lot 21 Block 6, Wheatland VaUey Addition v Lot 22 Block 6, Wheatland Valley Addition 1 v Lot 23 Block 6, Wheatland Valley Addition ·~ Lot 24 Block 6, Wheatland Valley Addition " Lot 25 Block 6, Wheatland Valley Addition ,/ Lot 26 Block 6, Wheatland Valley Addition f{ Lot 27 Block 6, Whe~t1and Valley Addition ~ Lot 28 Block 6, Wheatland Valley Addition i1 Lot 29 Block 6, Wheatland Valley Addition ll Lot 30 Block 6, Wheatland Valley Addition v Lot 31 Block 6, Wheatland Valley Addition .__ Lot 32 Block 6, Wheatland Valley Addition 1v Lot 33 Block 6, Wheatland Valley Addition 11 Lot 34 Block 6, Wheatland Valley Addition I"' Lot 35 Block 6, Wheatland Valley Addition "' Lot 36 Block 6, Wheatland Valley Addition ,/'Lot 37 Block 6, Wheatland Valley Addition 600596.20255\12-GA0l ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 8 - 5,251.92 5,251.92 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 36,289.53 5,251.92 5,251.92 5 251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 5,251.92 ----r . l ii l I t t l I I f l Boole 1437 Page: 1590 ======---- f f PASSED by the governing body of the City of Salina on April 22, 2024 and signed by the Mayor. I hereby certify that the above and foregoing is a true and correct copy of Ordinance No. 24-11202 that was adopted by the Governing Body of the City of Salina at their regular meeting on April 22, 2024. 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 4 .. \ CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original Ordinance; that the Ord,inance was pass~d on Apr_il 24, 2024; that the record of the final vote on its passage is found in the minutes of the meeting of April 22, 2024 in Journal Book No. 52 and that the Ordinance or a summary thereof was published in the Official Newspaper of City on April 23, 2024. DATED: April 24, 2024. 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) A-5 AFFIDAVIT STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, duly appointed City Clerk for the City of Salina, Kansas (the "City") pursuant to the laws of the state Kansas and the ordinances, resolutions and Code of the City, being oflawful age, first being duly sworn, on oath states: 1. On April 23, 2024, the attached Ordinance was posted by the undersigned or designee on the City's official website www.salina-ks.gov), which website has been designated as the official newspaper of the City. y hand and official seal on June 17, 2024. -· ... '!~~f'/ANIZcD\ \ 1870 i . .. •• ...-49 • . .. •:11············•" * Th »"if@re• 1 g instrument was subscribed and sworn to or affirmed before me on this Jl day of June, 2024, by Nikki Goding, City Clerk, City of Salina, Kansas. (Seal) Ii • SHANDI L. WICKS l!!llill Notary Public -State of Kansas My Appt. Expires Notary Public (Published on the City of Salina website (https://www.salina-ks.gov) on April 23., 2024.) ORDINANCE NO. 24-11202 AN ORDINANCE LEVYING SPECIAL ASSESSMENTS ON CERTAIN PROPERTY TO PAY THE COSTS OF INTERNAL IMPROVEMENTS IN THE CITY OF SALINA, KANSAS, AS PREVIOUSLY AUTHORIZED BY RESOLUTION NOS. 22-8028, 22- 8044 AND 21-7964 OF THE CITY; AND PROVIDING FOR THE COLLECTION OF SUCH SPECIAL ASSESSMENTS. WHEREAS, the governing body of the City of Salina, Kansas (the "City") has previously authorized certain internal improvements (the "Improvements") to be constructed pursuant to K.S.A. 12-6a01 et seq. (the "Act"); and WHEREAS, the governing body has conducted a public hearing in accordance with the Act and desires to levy assessments on certain property benefited by the construction of the Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. Levy of Assessments. For the purpose of paying the costs of the following described Improvements: Lakeview Estates Addition No. 2 Phase 1-Utility, Street and Drainage Resolution No. 22-8028 The curb, gutter, pavement, and grading for approximately 665 lineal feet of Lake Way Drive (the "Street Improvements"). The installation of approximately 861 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 2,033 lineal feet of eight-inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,126 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Magnolia Hills Estates Addition No. 2, Phase 2 -Utility, Street and Drainage Resolution No. 22-8044 The curb, gutter, pavement, and grading for approximately 383 lineal feet of Kasyn Lane, 595 lineal feet of Huntwood Drive, 136 lineal feet of Deer Hollow Lane, and 71 lineal feet of Dunnwood Drive (the "Street Improvements"). The installation of approximately 121 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). 600596.20255\12-GA0l ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) I I I, The installation of approximately 797 lineal feet of six-inch and 140 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 806 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). Wheatland Valley Addition -Utility, Street and Drainage Resolution No. 21-7964 The curb, gutter, pavement, and grading for approximately 765 lineal feet of Rosebud Lane, 765 lineal feet of Wheatland Valley Drive, 177 lineal feet of Wildflower Lane, and 158 lineal feet of Wheatland Circle (the "Street Improvements"). The installation of approximately 1,260 lineal feet of a IO feet wide multi-use path along the east side of Markley Road, adjacent to the Wheatland Valley Addition (the "Trail Improvements"). The installation of approximately 1,605 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately I 61 lineal feet of six-inch water main, 2,273 lineal feet of eight-inch water main, fire hydrants, valves, fittings, service connections for water lines and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,502 lineal feet of eight-inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). The installation of approximately 408 lineal feet of eight-inch sanitary sewer main, manholes, and all appurtenances thereto (the "Sanitary Sewer Line A' Improvements"). The installation of a detention basin and all appurtenances thereto (the "Detention Basin"). (collectively, the "Improvements"). there are hereby levied and assessed the amounts (with such clerical or administrative amendments thereto as may be approved by the City Attorney) against the property described on Exl,ibit A attached hereto. Section 2. Payment of Assessments. The amounts so levied and assessed in Section I hereof shall be due and payable from and after the date of publication of this Ordinance. Such amounts may be paid in whole or in part within thirty (30) days from the date of publication of this Ordinance. Section 3. Notification. The City Clerk shall notify the owners of the properties described in Exl,ibit A attached hereto (insofar as known to the City Clerk) of the amounts of their respective assessments. The notice shall also state that unless such assessments are paid within thirty (30) days from the date of publication of this Ordinance or a summary thereof, bonds will be issued therefor, and the amount of such assessment will be collected in installments with interest. Section 4. Certification. Any amount of special assessments not paid within the time prescribed in Section 2 hereof shall be certified by the City Clerk to the Clerk of Saline County, Kansas, in the same 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 2 II manner and at the same time as other taxes are certified and will be collected in 20 annual installments, together with interest on such amounts at a rate not exceeding the maximum rate therefor as prescribed by the Act. Interest on the assessed amount remaining unpaid between the effective date of this Ordinance and the date the first installment is payable, but not less than the amount of interest due during the coming year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Section 5. Effective Date. This Ordinance shall take effect and be in force from and after its passage, approval and publication of the Ordinance once in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 3 PASSED by the governing body of the City of Salina on April 22, 2024 and signed by the Mayor. I (SEAL) ATTEST: II 600596.20255\12-GAOl ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 4 Bill Longinayor 11 l I EXHIBITA-1 LAKEVIEW ESTATES ADDITION NO. 2 PHASE I -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Description of Propertv Amount of Prooosed Assessment Lot 1 Block I, Lakeview Estates Addition $257,428.10 Lot 2 Block 1, Lakeview Estates Addition 109,526.41 Lot 3 Block I, Lakeview Estates Addition 139,759.37 Lot 4 Block 1, Lakeview Estates Addition 7,853.78 Lot 5 Block I, Lakeview Estates Addition 4,547.02 Lot 6 Block I, Lakeview Estates Addition 2,911.96 Lot 7 Block 1, Lakeview Estates Addition 2,823.64 Lot 8 Block I, Lakeview Estates Addition 3,088.40 Lot 9 Block I, Lakeview Estates Addition 4,323.67 Lot 1 Block 2, Lakeview Estates Addition 147,691.12 Lot 2 Block 2, Lakeview Estates Addition 67,912.79 Lot 3 Block 2, Lakeview Estates Addition 67,705.55 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 5 EXHIBITA-2 MAGNOLIA IDLLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 Descri ption of Property Amount of Prooosed Assessment Lot 6 Block 5, Magnolia Hills Estates Addition No. 2 $44,502.87 Lot 7 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 8 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 9 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 2 Block 6, Magn olia Hills Estates Addition No. 2 44,502.87 Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 44,502.87 Lot I Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 2 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 3 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 4 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 5 Block 7, Mamtolia Hills Estates Addition No. 2 44,502.87 Lot 6 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 7 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 8 Block 7, Maimolia Hills Estates Addition No. 2 44,502.87 Lot 9 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot l Block 8, Magnolia Hills Estates Addition No. 2 44,502.87 600596.20255\12-6A01 ASSESSMENTS {LAKEWOOD, MAGNOLIA, WHEATLAND) 6 EXHIBITA-3 WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Prooerty Amount of Proposed Assessment Lot 1 Block I, Wheatland Valley Addition $5,251.92 Lot 2 Block 1, Wheatland Valley Addition 5,251.92 Lot 3 Block 1, Wheatland Valley Addition 5,251.92 Lot 4 Block I, Wheatland Valley Addition 5,251.92 Lot 5 Block I, Wheatland Valley Addition 5,251.92 Lot 6 Block l, Wheatland Valley Addition 5,251.92 Lot 7 Block 1, Wheatland Valley Addition 5,251.92 Lot 8 Block I, Wheatland Valley Addition 5,251.92 Lot 9 Block 1, Wheatland Valley Addition 5,251.92 Lot IO Block I, Wheatland Valley Addition 36,289.53 Lot 11 Block I, Wheatland Valley Addition 36,289.53 Lot 12 Block 1, Wheatland Valley Addition 36,289.53 Lot I Block 2, Wheatland Valley Addition 36,289.53 Lot 2 Block 2, Wheatland Valley Addition 36,289.53 Lot 3 Block 2, Wheatland Valley Addition 36,289.53 Lot 4 Block 2, Wheatland Valley Addition 36,289.53 Lot 5 Block 2, Wheatland Valley Addition 36,289.53 Lot 1 Block 3, Wheatland Valley Addition 36,289.53 Lot 2 Block 3, Wheatland Valley Addition 36,289.53 Lot 3 Block 3, Wheatland Valley Addition 36,289.53 Lot 4 Block 3, Wheatland Valley Addition 36,289.53 Lot 5 Block 3, Wheatland Valley Addition 36,289.53 Lot 6 Block 3, Wheatland Valley Addition 36,289.53 Lot 7 Block 3, Wheatland Valley Addition 36,289.53 Lot 8 Block 3, Wheatland Valley Addition 36,289.53 Lot 9 Block 3, Wheatland Valley Addition 36,289.53 Lot 10 Block 3, Wheatland Valley Addition 36,289.53 Lot l l Block 3, Wheatland Valley Addition 5,251.92 Lot 12 Block 3, Wheatland Valley Addition 5,251.92 Lot 13 Block 3, Wheatland Valley Addition 5,251.92 Lot 14 Block 3, Wheatland Valley Addition 5,251.92 Lot I Block 5, Wheatland Valley Addition 5,251.92 Lot 2 Block 5, Wheatland Valley Addition 5,251.92 Lot 3 Block 5, Wheatland Valley Addition 5,251.92 Lot 4 Block 5, Wheatland Valley Addition 5,251.92 Lot 5 Block 5, Wheatland Valley Addition 5,251.92 Lot 6 Block 5, Wheatland Valley Addition 5,251.92 Lot 7 Block 5, Wheatland Valley Addition 5,251.92 Lot 8 Block 5, Wheatland Valley Addition 5,251.92 Lot 9 Block 5, Wheatland Valley Addition 5,251.92 Lot 1 Block 6, Wheatland Valley Addition 5,251.92 Lot 2 Block 6, Wheatland Valley Addition 5,251.92 Lot 3 Block 6, Wheatland Valley Addition 5,251.92 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 7 I 11 Lot 4 Block 6, Wheatland Valley Addition 5,251.92 Lot 5 Block 6, Wheatland Valley Addition 5,251.92 Lot 6 Block 6, Wheatland Valley Addition 36,289.53 Lot 7 Block 6, Wheatland Valley Addition 36,289.53 Lot 8 Block 6, Wheatland Valley Addition 36,289.53 Lot 9 Block 6, Wheatland Valley Addition 36,289.53 Lot IO Block 6, Wheatland Valley Addition 36,289.53 Lot 11 Block 6, Wheatland Valley Addition 36,289.53 Lot 12 Block 6, Wheatland Valley Addition 36,289.53 Lot 13 Block 6, Wheatland Valley Addition 36,289.53 Lot 14 Block 6, Wheatland Valley Addition 36,289.53 Lot 15 Block 6, Wheatland Valley Addition 36,289.53 Lot 16 Block 6, Wheatland Valley Addition 36,289.53 Lot 17 Block 6, Wheatland Valley Addition 5,251.92 Lot 18 Block 6, Wheatland Valley Addition 5,251.92 Lot 19 Block 6, Wheatland Valley Addition 5,251.92 Lot 20 Block 6, Wheatland Valley Addition 5,251.92 Lot 21 Block 6, Wheatland Valley Addition 5,251.92 Lot 22 Block 6, Wheatland Valley Addition 5,251.92 Lot 23 Block 6, Wheatland Valley Addition 5,251.92 Lot 24 Block 6, Wheatland Valley Addition 5,251.92 Lot 25 Block 6, Wheatland Valley Addition 5,251.92 Lot 26 Block 6, Wheatland Valley Addition 5,251.92 Lot 27 Block 6, Wheatland Valley Addition 5,251.92 Lot 28 Block 6, Wheatland Valley Addition 5,251.92 Lot 29 Block 6, Wheatland Valley Addition 5,251.92 Lot 30 Block 6, Wheatland Valley Addition 5,251.92 Lot 31 Block 6, Wheatland Valley Addition 5,251.92 Lot 32 Block 6, Wheatland Valley Addition 5,251.92 Lot 33 Block 6, Wheatland Valley Addition 5,251.92 Lot 34 Block 6, Wheatland Valley Addition 5,251.92 Lot 35 Block 6, Wheatland Valley Addition 5,251.92 Lot 36 Block 6, Wheatland Valley Addition 5,251.92 Lot 37 Block 6, Wheatland Valley Addition 5,251.92 600596.20255\12-GA0l ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) 8 II E-C !:; salina-ks.go·J/Wnews ~ RESIDENTS BUSINESS GOVERNMENT I WANT TO JOBS PAYMENTS (I) 0 0 Latest NEWS RELEASES Check out the latest City of Salina n~·.v:; releases to stay up-to-date. ,,,,, 3 Brave, Daring and Critty. Women of Kansas and Beyond • Presentation May 2 View All News NEWS .._ ----------------------- /\pr 23. 2024 Ordinances 24-11203 and 24-11204 jll\ 0 0 0 0 NEWS I ■ ..-._ .. • I Ordinance 24-11202 ~ .-' -. __,. 1-_; := I'm bokir.g for * .:!:. .L 0 A /;~) 0 -[§,· e es ~ ,-.. \!l -- ~ C !; salina-ks.gov/Admin/Contents/Contentltems/4h0aecmS8spxqwhla0rxdntfd•/Edit7retumUrl=%2FAdmin%2FCon:ents%2FContentltems%2FNews%3fq%3Dsort%253AP11blished 4:) Salina, KS I Offiei-al W~tte- ('.J Corter• II ~aoe, l;l o..g, a Setu<!Y -e ,, .... f: Adt1~1~s A. A'e,t ti (l'tr1'M c;. c,,, A Corrmcr-Ser~ce~ !'iii No~~u\ Or' -fl.lb 0 FA) [;I l.'w:o IJill ~ .... "!cw News. """ ':u .. ,M Crave-; News Ca~egory I Ord1rar,;es ~6ocutlc!"s l~ ~e,,ortno :=., TrarrM~bers 1) Cor.fg.J~far « Edit News Tit1e ~-~.,•..:•~4• \JfC! _ Permalink htrps:/f.W.w.s,.ilina·ks.gov ordITTance-,24·11202 Category News a) Sr,c-tl1f;l'-t - Date- :3:.t~•-»-~~ End Oat• 0-1/30/2024 At.thor Image NEWS ~ s::.=-== ·~~ ~= ;~ !"e',\SC'toer • S.~-!.·~ ~ ~S95l.t.org Article B l1 At """' h: I: 'Ill a "•' 0 0 111', c-:, n;;J ii +1 e_ * .±. .r. @ l [:: .:, e 11:.FAM :: p t::: '""' ~ 0:l l!J CJ f;i '~) fr xl) .,9 •1 4/14/1014 CERTIFICATE OF MAILING STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, City Clerk of the City of Salina, Kansas, does hereby certify that on April 24, 2024, the date after the date on which Ordinance No. 24-11202 (the "Ordinance") of the City was published, I caused to be mailed to the owners of the properties liable for the assessments set out in the Ordinance, at their Jast known post office addresses, a Notice of Assessment showing the respective assessments levied against their properties and stating the manner in which the assessments wilJ be collected. (Sea]) A sample copy of the form of such Notice of Assessment is attached hereto. WITNESS my hand and sea] as of ApriJ 24, 2024 . .. ······• ........ . l~?,.GANIZE() .... . \ 1870 : ••• ...--4 .... ·•... . .. •· ••••·••• [ attach sample copy of form] Department of Finance & Administration Debbie Pack, Director 300 West Ash Street, Suite 206 P.O. Box 736 Salina, Kansas 67402-0736 Cityof ~ Salina NOTICE OF ASSESSMENT Dear Property Owner: TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-mail: debbie.pack@salina.org Website: www.salina-ks.gov April 25, 2024 City of Salina, Kansas You are hereby notified, as owner of record of the property described on Schedule I attached hereto, that pursuant to Ordinance No. 24-11202 (the "Ordinance") of the City of Salina, Kansas (the "City") there has been assessed against the property the costs of certain internal improvements previously authorized by the governing body of the City (the "Improvements"). The description of the Improvements, the resolution number authorizing the same and the amount of assessment are set forth on Schedule I attached hereto. You may pay this assessment in whole or in part to the City Treasurer of the City within thirty (30) days from the date hereof; and if the amount is not paid within the time period, bonds will be issued therefor, and the balance of such assessment will be collected in 20 annual installments, together with interest on such amounts remaining unpaid at a rate not exceeding the maximum rate therefor as prescribed by K.S.A. 12-6a01 et seq. Interest accruing between the date set forth above and the date the first installment is payable, but not less than the amount of interest due during the coming year on any outstanding bonds issued to finance the Improvements, shall be added to the first installment. The interest for one year on all unpaid installments shall be added to each subsequent installment until paid. Nikki Goding, City Clerk 600596.20255\12-6A0I ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) SCHEDULE/ LAKEVIEW ESTATES ADDITION NO. 2 PHASE 1 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8028 Description of Property Amount of Proposed Assessment Lot I Block I, Lakeview Estates Addition $257,428.10 Lot 2 Block I, Lakeview Estates Addition 109,526.41 Lot 3 Block I, Lakeview Estates Addition 139,759.37 Lot 4 Block I, Lakeview Estates Addition 7,853.78 Lot 5 Block I, Lakeview Estates Addition 4,547.02 Lot 6 Block 1, Lakeview Estates Addition 2,911.96 Lot 7 Block 1, Lakeview Estates Addition 2,823.64 Lot 8 Block 1, Lakeview Estates Addition 3,088.40 Lot 9 Block 1, Lakeview Estates Addition 4,323.67 Lot 1 )3lock 2, Lakeview Estates Addition 147,691.12 Lot 2 Block 2, Lakeview Estates Addition 67,912.79 Lot 3 Block 2, Lakeview Estates Addition 67,705.55 MAGNOLIA IDLLS ESTATES ADDITION NO. 2, PHASE 2 -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 22-8044 Description of Property Amount of Proposed Assessment Lot 6 Block 5, Maenolia Hills Estates Addition No. 2 $44,502.87 Lot 7 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 8 Block 5, Maenolia Hills Estates Addition No. 2 44,502.87 Lot 9 Block 5, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 2 Block 6, Mafillolia Hills Estates Addition No. 2 44,502.87 Lot 3 Block 6, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 1 Block 7, Maenolia Hills Estates Addition No. 2 44,502.87 Lot 2 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 3 Block 7, Maenolia Hills Estates Addition No. 2 44,502.87 Lot 4 Block 7, Mae:nolia Hills Estates Addition No. 2 44,502.87 Lot 5 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 6 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 7 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 8 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot 9 Block 7, Magnolia Hills Estates Addition No. 2 44,502.87 Lot I Block 8, Ma!molia Hills Estates Addition No. 2 44,502.87 WHEATLAND VALLEY ADDITION -UTILITY, STREET AND DRAINAGE RESOLUTION NO. 21-7964 Description of Property Amount of Proposed Assessment Lot I Block 1, Wheatland Valley Addition $5,251.92 Lot 2 Block 1, Wheatland Valley Addition 5,251.92 Lot 3 Block 1, Wheatland Valley Addition 5,251.92 Lot 4 Block I, Wheatland Valley Addition 5,251.92 Lot 5 Block 1, Wheatland Valley Addition 5,251.92 Lot 6 Block I, Wheatland Valley Addition 5,251.92 Lot 7 Block 1, Wheatland Valley Addition 5,251.92 Lot 8 Block 1, Wheatland Valley Addition 5,251.92 Lot 9 Block 1, Wheatland Valley Addition 5,251.92 Lot 10 Block 1, Wheatland Valley Addition 36,289.53 Lot 11 Block 1, Wheatland Valley Addition 36,289.53 Lot 12 Block 1, Wheatland Valley Addition 36,289.53 Lot 1 Block 2, Wheatland Valley Addition 36,289.53 Lot 2 Block 2, Wheatland Valley Addition 36,289.53 Lot 3 Block 2, Wheatland Valley Addition 36,289.53 Lot 4 Block 2, Wheatland Valley Addition 36,289.53 Lot 5 Block 2, Wheatland Valley Addition 36,289.53 Lot 1 Block 3, Wheatland Valley Addition 36,289.53 Lot 2 Block 3, Wheatland Valley Addition 36,289.53 Lot 3 Block 3, Wheatland Valley Addition 36,289.53 Lot 4 Block 3, Wheatland Valley Addition 36,289.53 Lot 5 Block 3, Wheatland Valley Addition 36,289.53 Lot 6 Block 3, Wheatland Valley Addition 36,289.53 Lot 7 Block 3, Wheatland Valley Addition 36,289.53 Lot 8 Block 3, Wheatland Valley Addition 36,289.53 Lot 9 Block 3, Wheatland Valley Addition 36,289.53 Lot 10 Block 3, Wheatland Valley Addition 36,289.53 Lot 11 Block 3, Wheatland Valley Addition 5,251.92 Lot 12 Block 3, Wheatland Valley Addition 5,251,92 Lot 13 Block 3, Wheatland Valley Addition 5,251.92 Lot 14 Block 3, Wheatland Valley Addition 5,251.92 Lot 1 Block 5, Wheatland Valley Addition 5,251.92 Lot 2 Block 5, Wheatland Valley Addition 5,251.92 Lot 3 Block 5, Wheatland Valley Addition 5,251.92 Lot 4 Block 5, Wheatland Valley Addition 5,251.92 Lot 5 Block 5, Wheatland Valley Addition 5,251.92 Lot 6 Biock 5, Wheatland Valley Addition 5,251.92 Lot 7 Block 5, Wheatland Valley Addition 5,251.92 Lot 8 Block 5, Wheatland Valley Addition 5,251.92 Lot 9 Block 5, Wheatland Valley Addition 5,251.92 Lot 1 Block 6, Wheatland Valley Addition 5,251.92 Lot 2 Block 6, Wheatland Valley Addition 5,251.92 Lot 3 Block 6, Wheatland Valley Addition 5,251.92 Lot 4 Block 6, Wheatland Valley Addition 5,251.92 Lot 5 Block 6, Wheatland Valley Addition 5,251.92 Lot 6 Block 6, Wheatland Valley Addition 36,289.53 Lot 7 Block 6, Wheatland Valley Addition 36,289.53 Lot 8 Block 6, Wheatland Valley Addition 36,289.53 Lot 9 Block 6, Wheatland Vallev Addition 36,289.53 Lot 10 Block 6, Wheatland Valley Addition 36,289.53 Lot 11 Block 6, Wheatland Valley Addition 36,289.53 Lot 12 Block 6, Wheatland Valley Addition 36,289.53 Lot 13 Block 6, Wheatland Valley Addition 36,289.53 Lot 14 Block 6, Wheatland Valley Addition 36,289.53 Lot 15 Block 6, Wheatland Valley Addition 36,289.53 Lot 16 Block 6, Wheatland Valley Addition 36,289.53 Lot 17 Block 6, Wheatland Valley Addition 5,251.92 Lot 18 Block 6, Wheatland Valley Addition 5,251.92 Lot 19 Block 6, Wheatland Valley Addition 5,251.92 Lot 20 Block 6, Wheatland Valley Addition 5,251.92 Lot 21 Block 6, Wheatland Valley Addition 5,251.92 Lot 22 Block 6, Wheatland Valley Addition 5,251.92 Lot 23 Block 6, Wheatland Valley Addition 5,251.92 Lot 24 Block 6, Wheatland Valley Addition 5,251.92 Lot 25 Block 6, Wheatland Valley Addition 5,251.92 Lot 26 Block 6, Wheatland Valley Addition 5,251.92 Lot 27 Block 6, Wheatland Valley Addition 5,251.92 Lot 28 Block 6, Wheatland Valley Addition 5,251.92 Lot 29 Block 6, Wheatland Valley Addition 5,251.92 Lot 30 Block 6, Wheatland Valley Addition 5,251.92 Lot 31 Block 6, Wheatland Valley Addition 5,251.92 Lot 32 Block 6, Wheatland Valley Addition 5,251.92 Lot 33 Block 6, Wheatland Valley Addition 5,251.92 Lot 34 Block 6, Wheatland Valley Addition 5,251.92 Lot 35 Block 6, Wheatland Valley Addition 5,251.92 Lot 36 Block 6, Wheatland Valley Addition 5,251.92 Lot 37 Block 6, Wheatland Valley Addition 5,251.92 $1,290,867.81 CERTIFICATE OF CITY TREASURER STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, City Treasurer of the City of Salina, Kansas (the "City"), does hereby certify that within the time allowed by Ordinance No. 24-11202 of the City for the payment of special assessments in cash, property owners specially assessed for the costs of certain internal improvements previously authorized by the governing body of the City, paid in cash the amounts set forth below: Resolution No. 22-8028 22-8044 21-7964 TOTAL WITNESS my hand on June \ 2.. , 2024. City Treasurer 600596.20255\12-6A01 ASSESSMENTS (LAKEWOOD, MAGNOLIA, WHEATLAND) EXCERPT OF MINUTES OF A MEETING OF THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS HELD ON MAY 13, 2024 Gilmore & Bell, P.C. 04/29/2024 The City Commission (the "Governing Body") met in regular session at the usual meeting place in the City at 4:00 P.M., the following members being present and participating, to-wit: Mayor BILL LONGBINE, Commissioners MIKE HOPPOCK, GREG LENKIEWICZ, JERRY IVEY and TRENT W. DAVIS, M.D. Absent: None. The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The matter of providing for the offering for sale of General Obligation Internal Improvement Bonds, Series 2024-A, came on for consideration and was discussed. There was presented a resolution entitled: A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS. Commissioner TRENT W. DA VIS, M.D. moved for the adoption of the Resolution. Commissioner JERRY IVEY seconded the motion to adopt the Resolution. The motion for the adoption of the Resolution was carried by the following vote of the Governing Body: Aye: BILL LONGBINE, MIKE HOPPOCK, GREG LENKIEWICZ, JERRY IVEY and TRENTW. DAVIS, M.D. Nay: NONE. The Mayor declared the Resolution duly adopted by the Governing Body and the Clerk designated the same Resolution No. 24-8207. (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\SALEDOCS CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the Governing Body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) 600596.20255\SALEDOCS 2 RESOLUTION NO. 24-8207 Gilmore & Bell, P.C. 04/29/2024 A RESOLUTION AUTHORIZING THE OFFERING FOR SALE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS. WHEREAS, the City of Salina, Kansas (the "Issuer"), has previously authorized certain improvements described as follows (collectively the "Improvements"): Project Description Lakeview Estates No. 2 Phase 1, Magnolia Hills Estates No. 2 Phase 2 Wheatland Valley Fire Apparatus Total: Res. No. 22-8028 22-8044 21-7964 23-8169 Authority (K.S.A.) 12-6a01 et seq. 12-6a01 et seq. 12-6a01 et seq. 12-ll0c Amount $932,926.25 779,251.25 1,411,868.06 10,000,000.00 $13,124,045.56 WHEREAS, the Issuer proposes to issue its general obligation bonds in order to permanently finance a portion of the costs of such Improvements; and WHEREAS, the City Commission of the Issuer (the "Governing Body") has selected the firm of Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri (the "Municipal Advisor"), as municipal advisor for one or more series of general obligation bonds of the Issuer to be issued in order to provide funds to permanently finance the Improvements; and WHEREAS, the Issuer desires to authorize the Municipal Advisor to proceed with the offering for sale of said general obligation bonds and related activities; and WHEREAS, one of the duties and responsibilities of the Issuer is to prepare and distribute a preliminary official statement relating to said general obligation bonds; and WHEREAS, the Issuer desires to authorize the Municipal Advisor and Gilmore & Bell, P.C., Wichita, Kansas, the Issuer's bond counsel ("Bond Counsel"), in conjunction with the Clerk and other officers and representatives of the Issuer to proceed with the preparation and distribution of a preliminary official statement and notice of 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 CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. There is hereby authorized to be offered for sale the Issuer's General Obligation Internal Improvement Bonds, Series 2024-A (the "Bonds") described in the Notice of Bond Sale, which is hereby approved in substantially the form presented to the Governing Body this date (the "Notice of Bond Sale"). All proposals for the purchase of the Bonds shall be delivered to the Governing Body at its meeting to be held on the sale date referenced in the Notice of Bond Sale, at which meeting the Governing Body shall review such bids and award the sale of the Bonds or reject all proposals. 600596 .20255\SALEDOCS Section 2. The Mayor, Clerk and Director of Finance in conjunction with the Municipal Advisor and Bond Counsel are hereby authorized to cause to be prepared a Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"), and such officials and other representatives of the Issuer are hereby authorized to use such document in connection with the sale of the Bonds. Section 3. The Clerk in conjunction with the Municipal Advisor and Bond Counsel, is hereby authorized and directed to give notice of said bond sale by publishing a summary of the Notice of Bond Sale not less than 6 days before the date of the bond sale in a newspaper of general circulation in Saline County, Kansas, and the Kansas Register and by distributing copies of the Notice of Bond Sale and Preliminary Official Statement to prospective purchasers of the Bonds. Section 4. For the purpose of enabling the purchaser of the Bonds (the "Purchaser") to comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the Mayor, Clerk, City Manager, Director of Finance or other appropriate officers are hereby authorized: (a) to approve the form of the Preliminary Official Statement and to execute the "Certificate Deeming Preliminary Official Statement Final" in substantially the form attached hereto as Exhibit A as approval of the Preliminary Official Statement, such official's signature thereon being conclusive evidence of such official's and the Issuer's approval thereof; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to the Municipal Securities Rulemaking Board; and ( c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the Rule. Section 5. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of the Rule and with the requirements of Rule G- 32 of the Municipal Securities Rulemaking Board. Section 6. The Mayor, Clerk, City Manager, Director of Finance and the other officers and representatives of the Issuer, the Municipal Advisor and Bond Counsel are hereby authorized and directed to take such other action as may be necessary to carry out the sale of the Bonds; provided that any sale of the Bonds shall be subject to further approval by the governing body. The Mayor is hereby authorized and directed to execute the engagement letter related to services to be provided by the Municipal Advisor. 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] 600596.20255\SALEDOCS 2 ADOPTED by the City Commission on May 13, 2024. (SEAL) Bill Longbine,Of ATfEST: EXHIBIT A CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL Re: $11,835,000* City of Salina, Kansas, General Obligation Internal Improvement Bonds, Series 2024-A The undersigned is the duly acting Director of Finance of the City of Salina, Kansas (the "Issuer"), and are authorized to deliver this Certificate to the purchaser (the "Purchaser") of the above- referenced bonds (the "Bonds") on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the "Preliminary Official Statement") relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. To the knowledge of the Issuer, the information contained in the Preliminary Official Statement, other than the sections entitled "The Depository Trust Company," "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, deli very 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. CITY OF SALINA, KANSAS By: Title: Director of Finance 600596.20255\SALEDOCS Gilmore & Bell, P.C. 06/03/2024 NOTICE OF BOND SALE $10,825,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Bids for the purchase of the above-referenced bonds (the "Bonds") of the City of Salina, Kansas (the "Issuer") herein described will be received on behalf of the Issuer by the Issuer's Municipal Advisor until 11:00 A.M. applicable Central Time (the "Submittal Hour"), on JUNE 10, 2024 (THE "SALE DATE") Bids may only be submitted via PARITY® or via email to the Municipal Advisor at artebem d@stifel.com. Facsimile bids and hand-delivered written bids will not be accepted. All bids will be publicly evaluated at said time and place and the award of the Bonds to the successful bidder (the "Successful Bidder") will be acted upon by the City Commission of the Issuer (the "Governing Body") at its meeting to be held at 4:00 p.m. on the Sale Date. No oral or auction bids will be considered. Any qualified bidder may bid on the Bonds. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). The Bonds will be dated July 2, 2024 (the "Dated Date"), and will become due in principal installments on October 1 in the years as follows: Principal Principal Year Amount* Year Amount* 2025 $625,000 2035 $120,000 2026 785,000 2036 125,000 2027 830,000 2037 130,000 2028 875,000 2038 140,000 2029 910,000 2039 145,000 2030 960,000 2040 155,000 2031 1,000,000 2041 160,000 2032 1,060,000 2042 165,000 2033 1,110,000 2043 180,000 2034 1,165,000 2044 185,000 600596.20255\SALEDOCS The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on April 1 and October 1 m each year, beginning on April 1, 2025 (the "Interest Payment Dates"). * Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds or the schedule of principal payments described above, depending on the purchase price and interest rates bid and the offering prices specified by the Successful Bidder, but in no event will the total principal amount of the Bonds exceed $12,100,000. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or the schedule of principal payments as described herein. If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer wilJ notify the Successful Bidder by means of telephone or electronic transmission, subsequently confirmed in writing, no later than 2:00 p.m. applicable Central Time, on the Sale Date. The net production as a percentage of the principal amount of the Bonds generated from the bid of the Successful Bidder wilJ not be decreased as a result of any change in the total principal amount of the Bonds or the principal amount of any maturity. Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of each Bond will be payable at maturity or earlier redemption to the owner thereof whose name is on the registration books (the "Bond Register") of the Bond Registrar (the "Registered Owner") upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the "Record Date") (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas (the "State"). The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners. Book-Entry-Only System. The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds. The Bonds will initially be issued exclusively in "book entry" form and shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner wilJ 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 600596.20255\SALEDOCS 2 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 Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to maturity on October 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% ( expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the "Term Bonds") scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY®. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar, any provider of municipal bond insurance and the Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the Redemption Date. All notices of redemption shall state the Redemption Date, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by State law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the Redemption Date, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq. and K.S.A. 12-ll0c, as amended, and an ordinance and a resolution adopted by the Governing Body (collectively the "Bond Resolution") for the purpose of paying a portion of the cost of certain public improvements (the "Improvements") and refunding a $5,000 portion of the interest payment due on October 1, 2024 on the Issuer's outstanding General Obligation Internal Improvement Bonds, Series 2016-A. The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of 600596.20255\SALEDOCS 3 certain of the Improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. Submission of Bids. Email bids shall be marked "Proposal for General Obligation Internal Improvement Bonds, Series 2024-A and may be submitted to the Municipal Advisor at arteberrrd@stifel.com. Any bidder submitting a bid by email should confirm receipt of the bid by contacting the Municipal Advisor at the telephone 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 Bonds. If provisions of this Notice of Bond Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately. The Issuer and Municipal Advisor shall not be responsible for failure of the transmission or the receipt of any bid. PARITY®. Information about the electronic bidding services of PARITY® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) 849-5023 and from the following website: www.newissuehome.i-deal.com. Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to al] Bonds of the same maturity year; (b) no interest rate may exceed 5.50%; (c) no supplemental interest payments will be considered; (d) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1 %; and (e) no zero percent (0%) interest rates will be permitted. No bid for less than 100% of the principal amount of the Bonds will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid, and an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification. Each bidder agrees that, if it is awarded the Bonds, it will provide the certification described under the caption "Establishment of Issue Price" in this Notice. Good Faith Deposit. The Successful Bidder must supply a good faith deposit (the "Deposit") in the amount of2.00% of the principal amount of the Bonds as indicated on the first page of this Notice payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the Successful Bidder to comply with the terms of its bid. The Deposit must be received by the Issuer by 3:00 p.m. Central Time on the Sale Date. The Deposit shall be submitted by wire transfer in Federal Reserve funds, immediately available for use by the Issuer. No interest on the Deposit will be paid by the Issuer. The Deposit will be held by the Issuer until the Successful Bidder have complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at the option of the Issuer. If a bid is accepted, but the Issuer fails to deliver the 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 the Successful Bidder default in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. Basis of Award. Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost ("TIC"), which will be determined as 600596.20255\SALEDOCS 4 follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium if any. Present value will be computed on the basis of semiannual compounding and a 360- day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Municipal Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the Governing Body will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid received after the Submittal Hour on the Sale Date will not be considered. Any disputes arising hereunder shall be governed by the laws of the State, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within the State with regard to such dispute. The Issuer's acceptance of the Successful Bidder's proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of the laws of the State and a contract between the Issuer and the Successful Bidder for the purposes of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and Rule G-32 of the Municipal Securities Rulemaking Board ("Rule G-32"). The method of acceptance shall be determined solely by the Governing Body. Bond Ratings. The outstanding general obligation bonds of the Issuer are rated "Aa3" by Moody's Investors Service. The Issuer has applied to Moody's Investors Service for ratings on the Bonds herein offered for sale. Such application and ratings are further described in the Preliminary Official Statement, hereinafter described. Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder's Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. If the Successful Bidder elects to purchase the Bonds with municipal bond insurance, certain rating agencies will assign their ratings to the Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by such bond insurer. All costs associated with the purchase and issuance of such municipal bond insurance policy and associated ratings and expenses ( other than any independent rating requested by the Issuer) shall be paid by the Successful Bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the Successful Bidder to accept delivery of the Bonds. CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. The Municipal Advisor will apply for CUSIP numbers pursuant 600596.20255\SALEDOCS 5 to Rule G-34 implemented by the Municipal Securities Rulemaking Board. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Delivery and Payment. The Issuer will pay for the preparation of the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about JULY 2, 2024 (the "Closing Date"), to DTC for the account of the Successful Bidder. The Successful Bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC. Establishment of Issue Price. (a) In order to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the "Code"), the Successful Bidder will be required to assist the Issuer in establishing the "issue price" of the Bonds and complete, execute and deliver to the Issuer prior to the Closing Date, a written certification in a form acceptable to the Successful Bidder, the Issuer and Bond Counsel (the "Issue Price Certificate") containing the following for each maturity of the Bonds: (1) the interest rate; (2) the reasonably expected initial offering price to the "public" (as said term is used in Treasury Regulation Section 1.148-l(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 the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale to the public. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received by the Municipal Advisor or Bond Counsel on behalf of the Issuer. (b) The Issuer intends that the sale of the Bonds pursuant to this Notice shall constitute a "competitive sale" as defined in the Regulation. In support thereof: (1) the Issuer shall cause this Notice to be disseminated to potential bidders in a manner reasonably designed to reach potential bidders; (2) all bidders shall have an equal opportunity to submit a bid; (3) the Issuer reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and (4) the Issuer anticipates awarding the sale of the Bonds to the bidder that provides a bid with the lowest TIC in accordance with the section hereof entitled "Basis of Award." (c) Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Bonds as specified therein. The Successful Bidder shall constitute an "underwriter" as said term is defined in the Regulation. By submitting its bid, the Successful Bidder confirms that it shall require any agreement among underwriters, a selling group agreement or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with provisions of the Code and the Regulation regarding the initial sale of the Bonds. (d) If all of the requirements of a "competitive sale" are not satisfied, the Issuer shall advise the Successful Bidder of such fact at the time of award of the sale of the Bonds to the Successful Bidder and the following provisions shall apply to the Bonds. In such event, any bid submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Successful Bidder shall advise the Issuer if a "substantial amount" (as defined in the Regulation (10%)) of any maturity of the Bonds has been sold to the public and the price at which such 600596.20255\SALEDOCS 6 substantial amount was sold. The Issuer will treat such sale price as the "issue price" for such maturity, applied on a maturity-by-maturity basis. The Issuer will not require the Successful Bidder to comply with that portion of the Regulation commonly described as the "hold-the-offering-price" requirement for the remaining maturities, but the Successful Bidder may elect such option. If the Successful Bidder exercises such option, the Issuer will apply the initial offering price to the public provided in the bid as the issue price for such maturities. If the Successful Bidder does not exercise that option, it shall thereafter promptly provide the Issuer the prices at which a substantial amount of such maturities are sold to the public. Any change in the issue price of any of the Bonds after the Submittal Hour will not affect the purchase price for the Bonds submitted in the bid of the Successful Bidder. (e) This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the "IRS") or the Securities and Exchange Commission (the "SEC") or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement relating to the Bonds, "deemed final" by the Issuer except for the omission of certain information as provided in the Rule, copies of which may be obtained from the Municipal Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the Successful Bidder's proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be ordered by the Successful Bidder at its expense. Continuing Disclosure. In the Bond Resolution, the Issuer has covenanted to annually provide certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds. For further information, reference is made to the caption "CONTJNUING 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 2023 is as folJows: Equalized Assessed Valuation of Taxable Tangible Property ............................................................. . Tangible Valuation of Motor Vehicles ................................................ .. Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations ............................... . $531,447,506 55,673.641 $587,121,147 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $76,620,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., WICHITA, KANSAS, Bond Counsel to the Issuer, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the interest on the Bonds being excludable from gross income for federal income tax purposes and exempt from income taxation by the State. Reference is made to the Preliminary Official 600596.20255\SALEDOCS 7 Statement for further discussion of federal and State income tax matters relating to the interest on the Bonds. Electronic Transactions. The transactions described herein may be conducted and related documents may be sent, received and stored by electronic means or transmissions. All bid documents, closing documents, certificates, ordinances, resolutions and related instruments may be executed by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned or from the Municipal Advisor at the addresses set forth below: DATED: May 13, 2024. Issuer -Good Faith Deposit Delivery Address: Debbie Pack, Director of Finance and Administration City of Salina, Kansas 300 West Ash Street, Room 206 Salina, Kansas 67 402 Phone No.: (785) 309-5735 Fax No.: (785) 309-5711 Email: debbie.pack@salina.or2 Municipal Advisor-Email Bid Delivery Address: Stifel, Nicolaus & Company, Incorporated 4622 Pennsylvania Avenue, Suite 1210 Kansas City, Missouri 64112 Attn: David Arteberry Phone No.: (816) 863-3230 Email: arteben-\ d@stifel.com 600596.20255\SALEDOCS 8 CITY OF SALINA, KANSAS By: Nikki Goding, Clerk PRELIMINARY OFFICIAL STATEMENT DATED JUNE 3, 2024 New Issue Book-Entry Only Moody's Rating: "Aa3" In the opinion of Gilmore & Bell, PC., Bond Counsel to the City, under existing law and assuming continued compliance with cerlain requirements of the Internal Revenue Code of 1986, as amended (the "Code"): (1) the interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, (2) the interest on the Bonds is exempt from income taxation by the State of Kansas, (3) the Bonds have not been designated as "qualified tax-exempt obligations" within the meaning of Code Section 265(b)(3). Bond Counsel notes that for tax years beginning after December 31, 2022, interest on the 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. Cftyof ~ 5alina $10,825,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Dated: Date of Delivery (the "Dated Date") Due: As Shown Herein The General Obligation Internal Improvement Bonds, Series 2024-A Bonds (the "Bonds") will be issued by the City of Salina, Kansas (the "Issuer" or "City"), as fully registered bonds, without coupons. Purchases of the Bonds will be made in book-entry only form in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). Principal on the Bonds will be payable annually on October 1 in the years shown herein. Interest on the Bonds will be payable semiannually on April 1 and October 1 of each year until maturity or earlier redemption, commencing on April 1, 2025 (the "Bond Interest Payment Date"). The Treasurer of the State of Kansas will be designated as paying agent and registrar or the Bonds (the "Paying Agent" and "Bond Registrar"}. The Bonds are subject to redemption at the option of the City as further described herein. See "THE BONDS -Redemption Provisions" herein. MATURITY SCHEDULE (see inside front cover) The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See "THE BONDS -Security" herein. The Bonds are offered when, as and if issued by the City and received by the Underwriter subject to the approval of legality by Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the City. It is expected that the Bonds will be available for delivery through the facilities of OTC, in New York, New York, on or about July 2, 2024. BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF SALE: On or before 11 :00 a.m., Central Daylight Time On Monday, June 10, 2024 THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. * Preliminary; subject to change MATURITY SCHEDULE $10,825,000* GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Serial Bonds Base Principal cus1p<1> Maturi~ Amount Rate Yield 794744 10-01-25 $625,000 10-01-26 785,000 10-01-27 830,000 10-01-28 875,000 10-01-29 910,000 10-01-30 960,000 10-01-31 1,000,000 10-01-32 1,060,000 10-01-33(2) 1,110,000 10-01-34(2) 1,165,000 10-01-35121 120,000 10-01-36(2) 125,000 10-01-37(2) 130,000 10-01-3812) 140,000 10-01-39(2) 145,000 10-01-4012) 155,000 10-01-4112) 160,000 10-01-42(2) 165,000 10-01-43(2) 180,000 10-01-44(2) 185,000 TERM BONDS Base Principal cus1p11i Maturitv Amount Rate Yield 794744 10-01-[_] $( I (_]% [_]% (_] 10-01-LJ $[ I [_]% [_]% [_] 10-01-LJ $( I (_]% (_]% (_] (ll CUSIP is a registered trademark of the American Bankers Association. CUSIP Global Services ("CGS") is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2023 CUSIP Global Services. CUSIP data herein is provided by CGS. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP numbers are provided for convenience of reference only. None of the Issuer, the Underwriter, or their agents or counsel assume responsibility for the accuracy of such numbers. '21 At the option of the City, Bonds maturing on October 1, 2033 and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2032, and at any time thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the City in such equitable manner as it may determine), at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. [The Term Bonds are also subject to mandatory redemption as described herein.] See "THE BONDS -Redemption Provisions" herein. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERAUOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOK/NG STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING 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 SECURITIES AND EXCHANGE COMMISSION. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. CITY OF SALINA, KANSAS City/County Building -Room 206 300WestAsh P.O. Box 736 Salina, Kansas 67402-0736 (785) 309-5700 CITY COMMISSION Bill Longbine, Mayor Greg Lenkiewicz, Vice Mayor Trent Davis, Commissioner Mike Hoppock, Commissioner Jerry Ivey, Commissioner CITY STAFF Mike Schrage, City Manager Jacob Wood, Deputy City Manager Debbie Pack, Finance Director Nikki Goding, City Clerk CITY ATTORNEY Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas BOND COUNSEL Gilmore & Bell, P.C. Wichita, Kansas MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriters and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the City from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. TABLE OF CONTENTS Page INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 1 THE DEPOSITORY TRUST COMPANY................................................................................................... 7 THE FINANCING PLAN......................................................................................................................... 8 SOURCES AND USES OF FUNDS.......................................................................................................... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS......................................................................... 9 LEGAL MATTERS ........................................ :~....................................................................................... 12 TAX MATTERS..................................................................................................................................... 12 RATING............................................................................................................................................... 14 MUNICIPAL ADVISOR.......................................................................................................................... 14 UNDERWRITING ................................................................................................................................. 14 ABSENCE OF MATERIAL LITIGATION................................................................................................... 15 CONTINUING DISCLOSURE................................................................................................................. 15 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 15 APPENDIX A: INFORMATION CONCERNING THE CITY FINANCIAL OVERVIEW OF THE CITY.............................................................................................. A-1 GENERAL INFORMATION CONCERNING THE CITY........................................................................ A-2 ECONOMIC INFORMATION CONCERNING THE CITY..................................................................... A-6 DEBT SUMMARY OF THE CITY....................................................................................................... A-9 FINANCIAL INFORMATION CONCERNING THE CITY...................................................................... A-13 APPENDIX B: FORM OF CONTINUING DISCLOSURE UNDERTAKING APPENDIX C: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDING DECEMBER 31, 2022 APPENDIX D: UNAUDITED FINANCIAL REPORT FOR FISCAL YEAR ENDING DECEMBER 31, 2023 LTHIS PAGE INTENTIONALLY LEFf BLANK] General OFFICIAL STATEMENT CITY OF SALINA, KANSAS $10,825,000* GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A INTRODUCTORY STATEMENT The purpose of this Official Statement is to present certain information concerning the City of Salina, Kansas (the "Issuer" or "City"), and the offering of its $10,825,000* General Obligation Internal Improvement Bonds, Series 2024-A (the "Bonds"). The Bonds are being issued to provide funds to permanently finance certain public improvements with the City. See "THE FINANCING PLAN" herein. The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See "THE BONDS -Security" herein. The Appendices are an integral part of this Official Statement and should be read in their entirety. All financial and other information presented herein has been provided by the City and other sources deemed to be reliable. The presentation of information herein is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. Stifel, Nicolaus & Company (the "Municipal Advisor") has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the City, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the sections captioned "LEGAL MATTERS" and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Bond Resolution (as defined herein). Copies of the Bond Resolution are available upon request to the City or the Municipal Advisor. Additional Information Additional information regarding the City or the Bonds may be obtained from Stifel, Nicolaus & Company, Incorporated, 4622 Pennsylvania Ave, Suite 1210, Kansas City, Missouri 64112, telephone 816-203-8733. THE BONDS Authority The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the state of Kansas, including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq, and K.S.A. 12-ll0c, all as amended and supplemented from time to time, an ordinance passed by the governing body of the City and a resolution adopted by the governing body of the City (collectively, the "Bond Resolution"). *Preliminary; subject to change. 1 Security The Bonds shall be general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefitted by the construction of certain public improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Levy and Collection of Annual Tax, Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds will be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities, and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement. The Bonds shall bear interest (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Bond Interest Payment Date to which interest has been paid, on the Bond Interest Payment Dates in the manner hereinafter set forth. Redemption Provisions Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. [Mandatory Redemption. The Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such Term Bonds: Principal Amount S[ l S[ l S[ l 2 Vear [_l L_l [_ll Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the City shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (bl the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the City defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the City shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. 3 Designation of Paying Agent and Bond Registrar The City will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Bond Resolution. The City reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the City shall at all times meet the requirements of Kansas law. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar" and "Paying Agent") has been designated by the City as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The City shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The City and the Bond Registrar shall not be requ ired (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Bond Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. 4 "Record Date" means, for the interest payable on any Bond Interest Payment Date, the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Bond Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the City of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE BOND PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See "THE BONDS -Book-Entry Bonds; Securities Depository.'' Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. 5 Payments Due on Saturdays. Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The City may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through OTC (or a successor Securities Depository): (a) If the City determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the City, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the City, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the City. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the City may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable 6 statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution. THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond will be issued for each scheduled maturity of the Bonds, and will be deposited with DTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of "AA+". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each 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. S. 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. 7 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. THE FINANCING PLAN Proceeds from the sale of the Bonds will be used to provide long term financing for a portion of the costs of certain public improvements within the City (collectively, the "Projects"), pays costs associated with issuing the Bonds, and to pay a $5,000 portion of the October 1, 2024, interest payment on the City's General Obligation Internal Improvement Bonds, Series 2016-A. The Projects are as follows: Project Description Lakeview Estates No. 2 Phase 1 Benefit District Magnolia Hills Estates No. 2 Phase 2 Benefit District Wheatland Valley Benefit District Fire Fighting Apparatus 8 Resolution 22-8028 22-8044 21-7964 23-8169 Authority (K.S.A) 12-6a01 et seq. 12-6a01 et seq. 12-6a01 et seq. 12-ll0c Principal Amount $520,000 665,000 1,230,000 8,405,000 $10,820,000 SOURCES AND USES OF FUNDS Funds to be used in the Financing Plan will be provided and applied approximately as follows. Sources of Funds: Principal Amount Prepaid Assessments Original Issue Premium Total Sources of Funds Uses of Funds: Deposit to Improvement Fund Deposit to Redemption Fund Costs of Issuance Underwriter's Discount, Rounding Amount, Admin Exp. Total Application RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE CITY OR THE UNDERWRITER. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City or the taxing authority of the City. Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. 9 Debt Service Source; Issuer's Tax Revenues The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Kansas Legislature (the "Legislature") may from time to time adopt changes in the property tax system or method of imposing and collecting property and/or sales taxes within the State. The effects of such legislative changes could affect the Issuer's property tax and sales tax collections, and the impact could be material. Other future events, such as the loss of a major taxpayer, reductions in assessed value, increases in property tax rates of overlapping taxing units, or a decrease in sales tax revenues could increase effective property tax rates and the resulting increase could be material. Taxpayers may also challenge the value of property assigned by the county appraiser. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material adverse effect on the Issuer's financial situation. See APPENDIX A "FINANCIAL INFORMATION CONCERNING THE CITY -Appraisal and Assessment Procedures." Kansas Public Employees Retirement System As described in APPENDIX A "FINANCIAL INFORMATION CONCERNING THE CITY -Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Police and Firemen's Retirement System ("KP&F") and the Public Employees Retirement System -Local Group (the "Local Group" collectively KP&F and the local group are referred to as 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 KP&F had a UAAL of approximately $1.337 billion and Local Group had an UAAL of approximately $1.9S2 billion in calendar year 2022. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes. The City has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the City to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludability of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under "TAX MATTERS" assumes the compliance by the City with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the City to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance. 10 Premium on the Bonds The initial offering prices of certain maturities of the Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof. Any person who purchases such a Bond, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under "THE BONDS-Redemption Provisions". No Additional Interest or Mandatory Redem ption upon Event of Taxability The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State of Kansas. Suitability of Investment The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial cqndition 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. Market for the Bonds Ratings. The Bonds have been assigned the financial ratings set forth in the section hereof titled "RATING". There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. Recent Legislative Proposals Congress and the President periodically work on various proposals to increase income taxes and to reduce tax deductions and expenditures. These discussions have made it clear that the tax exemption of municipal bonds is considered a tax expenditure and as such there is no guaranty that the tax exempt status on municipal bonds will remain unchanged as a result of these discussions. If a legislative change is enacted which results in all, or a portion, of the interest on the Bonds being subjected to Federal income taxes, such legislation or proposals could affect the value or marketability of the Bonds. Charges by the Kansas Legislature could also impact the State tax-exempt status of the Bonds. Prospective purchasers of the Bonds should consult their own tax advisers regarding the impact of any change in law on the Bonds. 11 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. Potential Impacts Resulting from Epidemics or Pandemics The Issuer's finances may be materially adversely affected by unforeseen impacts of future epidemics and pandemics, such as the Coronavirus (COVID-19) pandemic. The Issuer cannot predict future impacts of epidemics or pandemics, any similar outbreaks, or their impact on travel, on assemblies or gatherings, on the local, state or global economy, or on securities markets, or whether any such disruptions may have a material adverse impact on the financial condition or operations of the Issuer, including but not limited to the payment of debt service on any of its outstanding debt obligations. LEGAL MATTERS All matters incident to the authorization and issuance of the Bonds by the City are subject to the approval of Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the City. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the City and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned "THE BONDS", "LEGAL MATTERS", "TAX MATTERS", and APPENDIX B "FORM OF CONTINUING DISCLOSURE UNDERTAKING". TAX MATTERS General The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. 12 Opinion of Bond Counsel In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds: Federal Tax Exemption: The interest on the Bonds [(including any original issue discount properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes. Alternative Minimum Tax. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bank Qualification -The Bonds. The Bonds have not been designated as "qualified tax-exempt obligations" for purposes of Code§ 265(b)(3). Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of Kansas. No Other Opinions. Bond Counsel's opinions are provided as of the date of the original issue of the Bonds, subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds. Other Tax Consequences [Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Bond over its issue price. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Bond during any accrual period generally equals (1) the issue price of that Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount.] [Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code§ 171, premium on tax-exempt obligations amortizes over the term of the Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Bond prior to its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium.) 13 Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. Bond Counsel notes that for tax years beginning after December 31, 2022, the interest on the 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. RATING Moody's Investors Service, has assigned a rating of" Aa3" to the Bonds. Any explanation of the significance of such rating may be obtained only from said rating agency. There is no assurance that the rating will remain for any given period of time or that it may not be lowered or withdrawn entirely by the rating service if, in their judgment, circumstances so warrant. Any such downward change in or withdrawal of the rating may have an adverse effect on the market price of the Bonds. MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the City in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. The Municipal Advisor has also assisted the City with other matters relating to the issuance of the Securities. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Bonds were purchased at public sale by ~[ --~l (the "Underwriter") at a price equal to the par amount of the Bonds, plus a [net premium/discount] of$[ ), less an underwriting discount of$[ ]. 14 ABSENCE OF MATERIAL LITIGATION The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the City, any judgment rendered against the City in such proceedings would not materially adversely affect the financial position of the City. The Transcript of Proceedings will contain a certificate of non-litigation dated as of the closing date and executed by the City to the effect that, except as disclosed in the Official Statement, there is no controversy, suit, or proceeding of any kind pending or, to the knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning, disputing, or affecting in any way the legal organization of the City or its boundaries or the legality of any official act shown to have been done regarding the issuance of the Bonds or the constitutionality or validity of the obligation represented by the Bonds or the means provided for the payment of the Bonds. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Securities, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively, the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. Pursuant to the Disclosure Undertaking, this Issuer shall, not later than the first day of the seventh month after the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2023. In the Bond Resolution, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B - FORM OF CONTINUING DISCLOSURE UNDERTAKING." The Issuer believes it has complied during the past five years with its prior undertakings under the Rule (collectively, the "Prior Undertakings"), except as follows: On September 28, 2020, the Issuer entered into a Loan Agreement with the Kansas Department of Health and Environment to finance improvements to the City's water distribution system. The Ordinance authorizing the Issuer's execution of the Loan Agreement was published on October 1, 2020. On October 16, 2020, the Issuer filed an event notice related to such Loan Agreement. The Issuer's audited financial statements for each of the last five fiscal years have not been available by the filing deadlines set forth in the Prior Undertakings. In compliance with the Issuer's prior disclosure undertakings, the Issuer timely filed unaudited financial statements and promptly filed audited financial statements when they became available. CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the City. This Official Statement is hereby duly approved by the governing body of the City as of the date on the cover page hereof. CITY OF SALINA, KANSAS 15 [THIS PAGE INTENTIONALLY LEI<T BLANK] APPENDIX A FINANCIAL OVERVIEW OF THE CITY 2023 Estimated Actual Valuation (1) 2023 Assessed Valuation Outstanding General Obligation Bonds (2) Population (2022 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Bonded Debt to Estimated Actual Valuation Ratio of General Obligation Bonded Debt to Estimated Assessed Valuation Outstanding Temporary Notes Outstanding State Loans (3) Outstanding Lease Purchase Obligations Outstanding Utility System Revenue Bonds Outstanding Special Obligation Revenue Bonds Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping General Obligation Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ 3,937,680,501 $ 587,121,147 $ 76,620,000 $ $ $ $ $ $ $ $ $ 45,927 1,668 1.95% 13.05% 0 81,074,838 323,173 7,295,000 18,830,000 167,001,740 324,696,578 7,070 8.25% 55.30% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled "FINANCIAL INFORMATION CONCERNING THE CITY-Estimated Actual Valuation". (2) Includes the Bonds. (3) The City intends to repay such loans from the net revenues of its municipal water and sewer system. However, such loans are ultimately secured by the City's full faith and credit. See "DEBT SUMMARY OF THE CITY-Current Indebtedness -State Loans". (4) Includes general obligation sales tax bonds issued by Saline County. Although such bonds are ultimately general obligations of the County, their repayment is being provided for by a dedicated countywide sales tax. The sales tax has generated sufficient revenue each year since its inception to provide for all debt service requirements on the bonds. For a more detailed explanation of the overlapping debt of the other jurisdictions, see "DEBT SUMMARY OF THE CITY -Overlapping Debt." (5) Includes outstanding general obligation bonds, temporary notes and state loans of the City and general obligation bonds of overlapping jurisdictions. A-1 GENERAL INFORMATION CONCERNING THE CITY Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2023 U.S. Census Bureau estimate of 45,927. The City is the county seat for Saline County, which had an estimated 2023 U.S. Census Bureau population of 53,303. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Population Name Bill Longbine Greg Lenkiewicz Trent W. Davis, M.D. Mike Hoppock Jerry Ivey ntle Mayor Vice Mayor Commissioner Commissioner Commissioner Term Expires 2026 2026 2026 2028 2028 The City of Salina anchors the Salina micropolitan statistical area, the sixth largest statistical area in Kansas as delineated by the Office of Management and Budget. According to the U. S. Census Bureau, the City's citizens had a median age of 39 years in 2023. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 A-2 U.S. Census Bureau Population 45,927 46,868 46,481 46,803 46,550 46,716 46,994 47,336 47,813 47,867 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. Educational Facilities The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is approximately 6,600. 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 800 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 800 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than SO major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. The University of Kansas School of Medicine and School of Nursing have a campus in Salina. This campus is aimed at students with a strong desire to practice medicine in rural areas. The School of Medicine has approximately 30 students and the School of Nursing has approximately SO students. The Kansas Center for Rural Health, started in 2022, is also located on the campus. The Kansas Center for Rural Health is focused on improving health disparities and outcomes in rural Kansas through research, education and service. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. The City is served by the Salina Regional Airport and scheduled air service is provided by United Airlines. The airline offers regularly scheduled passenger air service to Denver International Airport and Chicago O'Hare International Airport. A-3 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. Multiple phone and internet service providers are available in the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 393-bed 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 Pension and Employee Retirement Plans The City 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, 2022, KPERS serves approximately 340,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: (a) Kansas Public Employees Retirement System; (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. A-4 (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 City'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 2004, 2015 and 2021, the Kansas Development Finance Authority, on behalf of the State, issued pension obligation bonds and contributed the proceeds thereof to KPERS to assist with improving the status of the unfunded actuarial pension liability. In 2022 the Legislature provided for additional contributions totaling $1.125 billion in four payments to be deposited into the KPERS trust fund for the School Group. For more information about the Legislature's actions related to KPERS, please see the 2022 Valuation Report referenced below. The City'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 City's contribution is 8.43% of the employee's gross salary for calendar year 2023, and is projected to change to 9.26% of the employee's gross salary for calendar year 2024. In addition, the City 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, 2022 (the "2022 Valuation Report") the KPERS Local Group, of which the City is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1.952 billion at the end of 2022. The amount of the UAAL in 2022 changed from the previous year's amount due to the factors discussed in the 2022 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 2022 Valuation Report is available on the KPERS website at kpers.org/about/reports. The City has no means to independently verify any of the information set forth on the KPERS website or in the 2022 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 2022 Valuation Report sets the employer contribution rate for the period beginning January 1, 2025, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 9.60% 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 2022 Valuation Report. The statutory contribution rate of employers currently equals the 2022 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 City has established membership in the Kansas Police and Fire Retirement System ("KP&F") for its police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases. According to the 2021 Valuation Report, KP&F carried an UAAL of approximately $1.140 billion at the end of 2021. For KP&F, the City's employees currently annually contribute 7.15% of their gross salary to the plan. For the year beginning January 1, 2023, the City contributes 22.86% of employees' gross salary, and is projected to change to 23.10% of the employee's gross salary for calendar year 2024. The City 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 City. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The City has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 A-5 Report. It is important to note that under existing State law, the City has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. Other Information Public recreation facilities available to city residents include 26 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. ECONOMIC INFORMATION CONCERNING THE CITY The City of Salina benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the City. Such companies include Schwan's Global Supply Chain, Inc., Vortex Global, GeoProbe Systems, Bergkamp Inc., Kasa Controls and Automation, Coperion K-Tron, Great Plains Manufacturing/Kubota, PKM Steel Service, Crestwood Cabinets, McShares, Inc., Pepsi Bottling, Rev Group, Stryten Energy, Advance Auto Parts Distribution Center, and Superior Contracting. 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. According to the Economic Impact Report, from 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in May 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 17.6% of the employment in Saline County and 42% of the total economic activity in a seven-county area. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2023 to be 25,352 persons. The estimated median household income for the City in 2022 was $52,702, and owner-occupied housing rates in the City were 64.4%. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. The City, Saline County, the Chamber of Commerce, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building A-6 permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and the Kansas State University at Salina. Additionally, a "build- to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot 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. The Salina Airport Authority The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted 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. 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 2023, the Salina Air Traffic Control Tower logged over 81,000 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 2.069 million gallons of fuel to the wide variety of aircraft utilizing the Airport during 2023 and 453,894 as of March 2024. 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 2023 the Salina Airport recorded 15,734 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. A-7 Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Great Plains Manufacturing Schwan's Global Supply Chain, Inc. Stryten Manufacturing City of Salina Salina Vortex Saline County St. Francis Ministries Wal-Mart Source: Salina Chamber of Commerce Income Product/Business Healthcare School System Agricultural & Landscaping Equipment Manufacturing Battery Manufacturer City Government Manufacturing Local Government Discount Retail Retail Estimated Employment 1,900 1,600 950 900 800 440 405 335 300 250 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 Source: Kansas Statistical Abstract Labor Force Saline County N/A $53,320 50,099 49,201 47,632 State of Kansas $59,324 56,099 53,203 51,139 49,033 The following tables show the labor force figures for the City of Salina and the State of Kansas. City of Salina: Total Unemployment Year Labor Force Employed Unemployed Rate 2024 (Apr) 25,099 24,489 610 2.4% 2023 25,352 24,873 479 1.9 2022 25,651 25,011 640 2.5 2021 25,029 24,236 793 3.2 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 2017 26,055 25,198 857 3.3 2016 26,194 25,170 1,024 3.9 2015 26,308 25,286 1,022 3.9 A-8 State of Kansas: Total Unemployment Year Labor Force Emplol£ed Unemplol£ed Rate 2024 (Apr) 1,506,604 1,465,553 41,051 3.0% 2023 1,510,988 1,470,936 40,052 2.7 2022 1,504,932 1,464,834 40,098 2.7 2021 1,500,677 1,451,204 49,473 3.3 2020 1,497,003 1,408,995 88,008 5.9 2019 1,486,620 1,439,563 47,057 3.2 2018 1,491,587 1,445,819 45,768 3.1 2017 1,478,783 1,425,216 53,567 3.6 2016 1,484,001 1,422,122 61,879 4.2 2015 1,493,782 1,431,533 62,249 4.2 Source: Kansas Department of Labor DEBT SUMMARY OF THE CITY Current Indebtedness The following is an overview of the City's outstanding indebtedness by classification as of the dated date of the Bonds. Figures do not include bonds for which payment has been provided through the creation of designated escrow accounts. General Obligation Bonds: Date Amount Final Amount Issued Series Purpose of Issue Maturitll Outstanding 02-15-13 2013-A Taxable Improvements $1,360,000 10-01-28 $535,000 07-29-15 2015-A Revenue and Internal Imp. 6,825,000 10-01-35 4,035,000 07-27-16 2016-A Internal Improvements 6,570,000 10-01-36 4,620,000 07-27-16 2016-B Refunding 13,750,000 10-01-31 6,270,000 07-27-17 2017-A Improvements 9,310,000 10-01-37 7,085,000 11-27-18 2018-A Improvements 2,090,000 10-01-33 1,510,000 04-24-19 2019-A Improvements 11,090,000 10-01-39 9,570,000 04-29-20 2020-A Improvements 5,210,000 10-01-35 3,540,000 11-30-20 2020-B Refunding 8,450,000 10-01-36 6,115,000 04-29-21 2021-A Improvements 7,645,000 10-01-41 7,100,000 09-08-21 2021-B Refunding 6,220,000 10-01-34 5,010,000 04-28-22 2022-A Improvements 7,840,000 10-01-42 7,450,000 08-17-23 2023-A Internal Improvements 2,955,000 10-01-43 2,955,000 07-02-24 2024-A Internal Improvements 10,825,000* 10-01-44 10,825,000* Total $76,620,000 A portion of the City's outstanding general obligation bonds are payable from special assessments levied upon properties benefited by certain internal improvement projects, local option sales tax, and transfers from enterprise funds of the City. If such payments are not provided in a timely manner, the principal of and interest on the bonds must then be paid from the City's ability to levy unlimited ad valorem taxes. See "FINANCIAL INFORMATION -Special Assessments" for a further description of special assessment financing. Temporary Notes: None A-9 Utility System Revenue Bonds: Revenue bonds are payable solely from the net revenues derived by the City from the operation of its combined water and sewage system. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturlt~ Outstanding 09-11-19 Water and Sewer System 2019 $10,330,000 10-01-31 $7,295,000 Lease Obligations: Year Original Final Amount Item Issued Amount Year Outstanding HVAC System 2012 $1,100,000 2027 $323,173 Special Obligation Revenue Bonds: The following special obligation revenue bonds are payable solely from sales tax collected within certain special districts in the City. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. (to be updated) Date Pledged Amount Final Amount Issued Revenue Serles of Issue Maturit~ Outstanding 12-21-18 Sales Tax Revenue 2018-A $18,250,000 12-01-38 $14,510,000 12-21-18 Sales Tax Revenue 2018-B 4,320,000 12-01-38 4,320,000 Total: $18,830,000 State Loans The following is a list of outstanding loans the City has taken out through the Kansas Department of Health and Environment ("KDHE") revolving loan fund program. KDHE loans are typically repaid by net revenues from municipal water or sewer systems. Regardless of the intended source of repayment, the loans are ultimately secured by the City's ability to levy unlimited ad valorem property taxes. Project Year Final Original Amount_ Number Pur~ose Originated Pa~ment Date Amount Outstanding KDHE 2629 Water 2014 08-01-34 $8,562,911 $4,696,122 KDHE 2917 Water 2019 02-01-40 32,000,000 26,728,024 KDHE 2957 Water 2019 02-01-40 4,250,000 3,549,816 KDHE 2998 Water 2019 02-01-40 4,250,000 3,782,582 KDHE 2050 Sewer 2020 03-01-35 1,399,012 818,294 KDHE 2049* Sewer 2021 09-01-42 41,500,000 41,500,000 $81,074,838 *Construction began on this project in 2023 and is expected to be completed in 2026. The Original Amount shown above is the maximum authorized loan amount which is subject to change. As of July 13, 2023, the City has drawn down $20,236,478 of the authorized amount. A-10 Overlapping Debt According to the Saline County Clerk's office and audited financial statements, the following table shows the overlapping general obligation indebtedness of the City. The percent of an overlapping jurisdiction's debt that is applicable to the City is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the City by the total assessed valuation of such jurisdiction. Jurisdiction Salina Airport Authority Saline County(2l Unified School District No. 305 Ill As of the closing date of the Bonds. Amount Outstanding(1J $32,960,000 70,344,519 87,070,000 Estimated Share of the City Amount Percentage $32,960,000 100.00% 52,796,409 75.05 81.245,331 93.31 $167,001,740 (2) Includes $69,845,000 of bonds issued by Saline County the security of which includes a pledge of both property taxes and a dedicated 0.50% countywide retailers' sales tax of the County. The bonds have historically been repaid entirely from the collections of the sales tax and the County anticipates that the bonds will continue to be so paid in the future. Annual Debt Payments The following is a list of annual debt service requirements for the City's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2024-A Bonds Year Principal Interest Principal Interest Total 2024 6,450,000 1,882,815 2025 6,215,000 1,679,566 2026 5,540,000 1,494,896 2027 5,360,000 1,325,539 2028 5,115,000 1,163,904 2029 4,885,000 1,006,696 2030 4,210,000 870,846 2031 4,160,000 757,319 2032 4,105,000 643,974 2033 4,095,000 534,998 2034 3,670,000 423,701 2035 3,520,000 328,213 2036 2,835,000 233,388 2037 1,940,000 156,825 2038 1,210,000 99,550 2039 1,240,000 66,200 2040 510,000 32,050 2041 520,000 19,850 2042 170,000 7,350 2043 45,000 1,800 $65,795,000 $12,727,679 *Includes payments made prior to the closing date of the Bonds. A-11 Historical Debt Information The following table shows historical balances of outstanding general obligation bonds for the City during the period indicated below. Bonds Debt to Debt to U.S. Debt Outstanding Assessed Estimated Actual Census Per Year December 31 Valuation Valuation Poi;iulation Cai;iita 2023 $65,795,000 11.21% 1.67% 45,927 $1,432.60 2022 69,145,000 12.37 1.87 46,868 1,475.31 2021 59,582,649 11.54 1.76 46,481 1,281.87 2020 65,330,000 12.79 1.96 46,803 1,395.85 2019 58,170,000 11.53 1.78 46,550 1,261.22 2018 54,885,000 11.25 1.74 46,716 1,174.87 2017 59,985,000 12.46 1.94 46,994 1,276.44 2016 56,875,000 12.03 1.87 47,336 1,201.52 2015 57,535,000 12.43 1.94 47,813 1,203.33 Future Indebtedness The City annually prepares a multi-year capital improvements plan. This plan identifies and prioritizes potential capital improvement projects within the City and includes the respective funding sources. The latest capital improvements plan includes approximately $36 million of projects to be funded with general obligation debt over the next five calendar years. The plan does not include future residential subdivision improvement projects which might be financed with general obligation bonds payable as to both principal and interest in part from special assessments levied upon the benefitted property. The City typically undertakes such projects after receiving and reviewing a valid petition from property owners. See "FINANCIAL INFORMATION -Special Assessments". Debt Payment Record The City has always met principal and interest payments on all outstanding bonds and temporary notes when due and payable. Legal Debt Limits Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities, including storm and sanitary sewer systems; bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city's debt limitation. A-12 FINANCIAL INFORMATION CONCERNING THE CITY Accounting. Budgeting and Auditing Procedures The City follows a modified accrual basis of accounting for all tax supported funds of the City, including the General Fund. An annual budget of estimated receipts and disbursements for the coming calendar year is required by statute to be prepared for all funds (unless specifically exempted). The budget is prepared utilizing the modified accrual basis which is further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes. The proposed budget is presented to the governing body of the City prior to August 1, with a public hearing required to be held prior to August 15, with the final budget to be adopted by a majority vote of the governing body of the City prior to August 25 of each year (or September 20 if the City must conduct a public hearing to levy taxes in excess of its revenue neutral rate described below). Budgets may be amended upon action of the governing body after notice and public hearing, provided that no additional tax revenues may be raised after the original budget is adopted. The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. In 2021, the Kansas Legislature passed legislation (the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c} and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the City) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county. If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (5) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to he held between August 10 and September 10, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by a majority vote of its governing body, and the amount of tax to be levied must be certified to the county clerk by September 20. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over collected based on the amount of the levy that was in excess of the revenue neutral rate. The City cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Securities, or the general rating of the City. A change in the rating on the Securities or a change in the general rating of the City may adversely impact the market price of the Securities in the secondary market. A-13 Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the City are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by Gordon Certified Public Accountants, Lawrence, Kansas. Copies of the audit reports for the past five (5) years are on file in the Clerk's office and are available for review. The audit for the Fiscal Year ended December 31, 2020 is attached hereto as APPENDIX C. There can be no guarantee that the information included in such unaudited financial statements will not materially change when subject to audit. The City has historically prepared a Comprehensive Annual Financial Report, which includes audited financial statements and other pertinent credit information. Appropriate periodic credit information necessary for maintaining the ratings on the Bonds will be provided by the City to the rating agencies rating the Bonds. The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments in June 1999 ("Statement 34"), which established new requirements for the annual financial reports of state and local governments. Among the major changes embodied in Statement 34, governments will now be required to: (a) report on the overall state of the government's financial health, not just its overall "funds" in a newly required Management's Discussion and Analysis (MD&A), (b) provide the most complete information available about the cost of delivering services to their citizens in the annual report which will now also include financial statements prepared using full accrual accounting for all of the government's activities, (c) include information about the government's public infrastructure assets - such as bridges, roads and storm sewers, and (d) prepare an introductory narrative section analyzing the government's financial performance. The City has implemented Statement No. 34 in its financial statements. The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Financial Statement Summary The following is a summary of the combined revenues, expenditures, and fund balances for the City's General Fund for the most recent years as shown in the City's Comprehensive Annual Financial Reports. This summary has not been prepared or reviewed by the City's auditor. Audited Audited Audited Audited Revenues: 2019 2020 2021 2022 Property Taxes $10,801,226 $11,497,684 $10,820,524 10,554,177 Sales Tax 13,418,742 13,697,179 16,853,083 18,467,819 Other Taxes 5,086,492 4,925,381 5,351,559 6,028,427 Intergovernmental 1,351,967 2,453,021 1,144,657 1,184,485 Charges for Services 5,816,485 4,942,217 5,841,900 6,580,579 Investment Revenue 613,249 256,515 78,253 206,496 Miscellaneous 609,676 981.845 719.637 832.136 Total Revenues $37,778,837 $38,753,842 $40,539,613 $43,467,320 Expenditures: General Government $4,581,505 $5,505,967 $5,629,698 $6,783,483 Public Safety 23,692,445 22,435,061 23,214,758 24,824,641 Public Works 5,473,414 5,101,204 5,464,894 5,846,877 Public Health and Sanitation 816,636 682,439 746,880 800,884 Culture and Recreation 4,379,441 3,037,594 3,732,377 4,025,077 Planning and Development 836,690 673,564 55,174 702,721 Capital Outlay 985.861 608.460 675.363 372,260 A-14 Total Expenditures $40,765,992 $38,044,289 $39,519,144 $43,355,943 Revenues Over (Under) $(2,987,155) $709,553 $1,020,469 $498,176 Other Sources (Uses) 5,551,752 ~929,300 4 900 800 4,266,300 Net Change in Fund Balance 2,564,597 $5,638,853 $5,921,269 $4,764,476 Fund Balance January 1 $6,742,577 $9,503,410 $15,142,263 $21,063,532 Restatement of Prior Year Balance 0 0 0 0 Fund Balance December 31 $9,307,174 $15,142,263 $21,063,532 $25,828,008 Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November 1 assessed valuation of the City, unless otherwise noted, in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate Property Utlllties Vehicle Valuation 2023 $499,863,443 $8,546,299 $23,037,764 $55,673,641 $587,121,147 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 9,353,057 23,436,340 54,589,132 510,951,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 2014 376,131,346 13,652,885 17,670,147 48,865,900 456,320,278 Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see "FINANCIAL INFORMATION CONCERNING THE CITY -Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides November 1 estimated actual valuations for the City in the years indicated. Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Residential Real Estate Equalization Ratio N/A 10.48 10.87 10.79 11.44 11.17 11.04 11.36 11.28 11.65 A-15 Estimated Actual Value $3,937,680,501 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 Special Assessments The City has pursued a policy of utilizing special benefit districts to assign the cost of certain internal improvement projects to the property that directly benefits from the construction. Kansas statutes allow for the creation of special benefit districts to pay for the cost of a variety of improvements including street construction, storm water drains, sanitary sewer system improvements, street lighting, water system improvements, recreational facilities, flood control projects, bridges, and parking facilities. The City has typically utilized special benefit districts to pay for the costs associated with constructing streets, sidewalks, curbs, gutters, and lighting in new residential developments within the City. When a developer requests the use of Special Assessments to finance public improvements, the City requires that they pay 20% of the estimated cost of the project in cash, or file a letter of credit equivalent to 35% of the estimated cost of the project. The letter of credit is released when Certificates of Occupancy have been issued for 3S% of the lots in the development. The creation of special benefit districts, the determination of property benefited, and the method of allocating the cost of the improvement is at the discretion of the City. Property owners have the ability to suggest improvements through a petition process and to comment on the final amount of their assessment. The City may or may not be included as part of the special benefit district. All property owners have the option to pay their portion of the improvement cost with a one-time payment during a 30-day assessment prepayment period or pay in annual installments with interest over a certain number of years. Upon completion of the special benefit district improvement projects and a 30-day prepayment period, the City issues general obligation bonds to provide for permanent project financing. The payment of the principal of and interest on such bonds is paid from the special assessments levied annually on the benefited property. Special assessments are paid at the same time and in the same manner as ad valorem property taxes. If at any time the special assessments received from the property owners are insufficient to provide for the payment of the principal of and interest on the bonds, the City is obligated to provide for the balance of such payments through its ability to levy unlimited ad valorem property taxes. Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the years shown. A-16 Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount ~ Amount ~ 2023* 30.348 $17,087,434 $10,721,698 62.7% $10,728,464 62.8% 2022 30.348 16,777,459 16,086,452 96.0 16,099,745 96.1 2021 30.452 15,125,318 15,125,318 98.3 15,310,315 99.5 2020 30.650 15,028,646 15,028,646 98.7 15,045,546 98.8 2019 29.720 14,538,092 14,538,092 97.2 14,732,831 98.6 2018 28.394 13,427,810 13,427,810 97.4 13,590,888 98.6 2017 26.129 12,381,334 12,381,334 97.3 12,602,044 99.0 2016 27.603 11,564,876 11,320,197 97.9 11,524,101 99.6 2015 27.311 11,209,245 10,984,630 98.0 11,169,600 99.6 *Represents collections through April 2024. Tax Levies Nov Nov Nov Nov Nov 2019 2020 2021 2022 2023 ~ ~ ~ Levy ~ City of Salina 29.720 30.650 30.452 30.348 29.616 Salina Library 5.913 5.880 6.028 5.510 5.614 State Education & Other 1.500 1.500 1.500 1.500 1.500 Unified School District No. 305 55.508 55.454 54.903 53.425 54.461 Airport Authority 4.447 5.037 4.838 4.968 6.190 Central Kansas Extension District 1.198 1.206 1.196 1.111 1.057 Saline County 41.097 40.606 39.782 38.860 39.867 Total 139.383 140.333 138.699 135.722 138.305 Largest Taxpayers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2023 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. %of Type of Assessed Total Company Business Valuation Valuation Evergy, Inc. Utility $13,690,289 2.33% SFC Global Supply Chain Inc Manufacturing 7,345,168 1.25 Kansas Gas Service Utility 5,935,323 1.01 RAF Salina LLC Retail Shopping Center 3,986,505 0.68 Lighthouse Properties Ill, Inc. Hotel 3,234,863 0.55 S&B Motels Motel 2,991,301 0.51 Salina Regional Health Properties Medical 2,589,001 0.44 Union Pacific Railroad Co. Railroad 2,407,233 0.41 Dominion Resources LLC Retail 2,163,076 0.37 Wal-Mart Real Estate Retail 2,030,050 0.35 Total $46,372,818 7.90% A-17 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: *March 2024 Sales Tax Year 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 Value $19,243,675 144,278,110 211,832,283 27,383,463 27,706,623 20,544,765 71,862,718 59,975,197 97,910,328 56,989,007 Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Except as set forth below, Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. In 1982 the voters of Saline County approved a 1.00% countywide local option sales tax. In 1992 voters of the City approved a local option 0.50% citywide sales tax for purposes of helping fund general operations expenditures of the City. Both of these taxes were approved in perpetuity. In May of 2016, voters in the City approved a 0.75% citywide retailers sales tax that will be in existence for 20 years and will be used for capital improvements and economic development (the "2016 Sales Tax"). The 2016 sales tax replaced an existing sales tax of 0.40%. In November of 2020, the voters of Saline County approved an additional 0.50% countywide local option sales tax, the revenues derived from which are dedicated to paying the costs of a new Criminal Justice Complex, such sales tax shall terminate when all costs associated with the Criminal Justice Complex project have been paid, including the retirement of any bonds issued therefor (the "2020 Sales Tax"). No portion of the revenues derived from the 2020 Sales Tax will be distributed to the City. The total sales tax for goods and services in the City is 9.25%, which consists of 6.5% imposed by the State, 1.5% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table lists the local- option sales tax receipts of the City of Salina in the years indicated. A-18 Year 2024(l) 2023 2022 2021 2020 2019 2018 2017 2016(2) 2015 Citywide Local Option Sales & Use Tax Receipts $7,836,437 19,068,649 18,526,850 16,971,338 15,160,656 14,922,405 14,632,584 14,404,702 10,458,630 10,372,573 City's Portion of 1% Countywide Local Option Sales & Use Tax Recei pts $4,035,925 9,928,531 9,707,849 8,798,402 7,756,909 7,608,604 7,415,804 7,368,869 7,312,618 7,376,708 Ill Through May 2024. Aggregate sales and use tax receipts for this period are approximately 2.3% below levels for same period in 2023. 12l Collections prior to October 1, 2016 represent taxes attributable to a 0.40% sales tax that was replaced with the 2016 sales tax of 0.75%. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was 0.90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The Saline County appraiser annually determines the appraised valuation of property located in the City. The appraiser's determination is based on a number of criteria established by Kansas's statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. Property Assessment Rates In order to determine the assessed valuation of a parcel of property for taxation purposes, the county appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992 modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25% and on residential property from 12% to 11.5%. The following table shows the current assessment rates for the different classes of taxable tangible property within the State of Kansas. A-19 Real Property: Residential Commercial and Industrial- Real Property Agricultural Land (1) Agricultural Improvements Vacant Lots Not-for-Profit (2) All Other Personal Property: (3) Mobile Homes Mineral Leaseholds (large) Mineral Leaseholds (small) Commercial & Industrial Machinery & Equipment All Other Utilities: Railroads All Other Public Utilities Motor Vehicles: Property Exempt: 11.5% 25.0 30.0 25.0 12.0 12.0 30.0 11.5% 30.0 25.0 25.0 30.0 federally mandated rate 33.0% 20.0% Property used for the following purposes, or portions thereof, are exempt from taxation provided certain statutory requirements are met: religious, educational, literary, scientific, benevolent, alumni associations, veterans' organizations, or charitable purposes, including parsonages and community service organizations providing humanitarian services. (1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation. (2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does not accommodate buildings or improvements. (3) The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State, all commercial, industrial, telecommunications, and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. 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 2022 Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.48%, and commercial and industrial property was 19.80%. A-20 APPENDIX B Form of Continuing Disclosure Undertaking [fl-IlS PAGE INTENTIONALLY LEFT BLANK] CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 This CONTINUING DISCLOSURE UNDERTAKING dated as of July 2, 2024 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the "Obligations") which are being issued simultaneously herewith as of July 2, 2024, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or (c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial B-1 Report, if any. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a {a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2024, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. B-2 Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] (c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (1 O) release, substitution or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of the trustee, if material; B-3 (15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2{a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuerwith 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 B-4 dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.} B-5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF SALINA, KANSAS (SEAL) Mayor City Clerk B-6 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement {with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Estimated Actual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers B-7 [THIS PAGE INTENTIONALLY LEFT BLANK] APPENDIXC December 31, 2022 Annual Comprehensive Financial Report The following is the Annual Comprehensive Financial Report for the City of Salina, Kansas for the fiscal year ended December 31, 2022, including financial statements as audited by the firm of Gordon CPA LLC, Lawrence, Kansas. Other than auditing said financial statements, Gordon CPA LLC has not performed any procedures relating to this offering document. [THIS PAGE INTENTIONALLY LEFr BLANK] City of Salina, Kansas Independent Auditor's Report, and Financial Statements December 31, 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box 736 Salina, Kansas 67402-0736 For the Fiscal Year Ended December 31, 2022 Prepared by Department of Finance and Administration of City of Salina, Kansas CONTENTS INTRODUCTORY SECTION City of Salina, Kansas December 31, 2022 Letter of Transmittal ............................................................................................................................... i-iv Organizational Chart ................................................................................................................................ v List of Principal Officials ........................................................................................................................... vi FINANCIAL SECTION Independent Auditor's Report .............................................................................................................. 1 Management's Discussion and Analysis ............................................................................................ 5 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ................................................................................................................. 17 Statement of Activities ...................................................................................................................... 19 Fund Financial Statements Balance Sheet -Governmental Funds ............................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ...... 21 Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds ................................................................................................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities ..................................................................... 23 Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis) -General Fund ............................................................... 24 Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis) -Sales Tax Capital Fund ................................................ 25 Statement of Net Position -Proprietary Funds ................................................................................. 26 Statement of Revenues, Expenses, and Changes in Net Position -Proprietary Funds .................. 28 Statement of Cash Flows -Proprietary Funds .................................................................................. 29 Statement of Fiduciary Net Position -Fiduciary Funds .................................................................... 30 Statement of Changes in Fiduciary Net Position -Fiduciary Funds ................................................. 31 Notes to Financial Statements .......................................................................................................... 32 Required Supplementary Information Other MD&A Other Postemployment Benefits Schedule of Changes in the City's Total OPEB Liability and Related Ratios ................................... 78 Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPEB Liability and Related Ratios .................................. 79 KPERS Pension Plan City of Salina, Kansas December 31, 2022 Schedule of the City's Proportionate Share of the Net Pension Liability .......................................... 80 Supplementary Information Combining Schedules and Individual Fund Statements Combining Balance Sheet -Nonmajor Governmental Funds .......................................................... 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds ................................................................................................. 83 Combining Balance Sheet -Nonmajor Special Revenue Funds ...................................................... 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Special Revenue Funds ............................................................................................. 88 Combining Balance Sheet -Nonmajor Permanent Funds ............................................................... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Non major Permanent Funds ...................................................................................................... 93 Internal Service Fund Descriptions ................................................................................................... 94 Combining Statement of Net Position -Internal Service Funds ....................................................... 95 Combining Statement of Revenues, Expenses, and Changes in Net Position -Internal Service Funds ................................................................................................................ 96 Combining Statement of Cash Flows -Internal Service Funds ........................................................ 97 Budgetary Comparison Schedules -Budget and Actual (Non-GAAP Basis) Tourism and Convention Fund ..................................................................................................... 98 Special Gas Fund ......................................................................................................................... 99 Bicentennial Center Fund ........................................................................................................... 100 Business Improvement District Fund .......................................................................................... 101 Neighborhood Park Fund ............................................................................................................ 102 Special Parks and Recreation Fund ........................................................................................... 103 Special Alcohol Fund .................................................................................................................. 104 Sales Tax Economic Development Fund ................................................................................... 105 Arts & Humanities Fund .............................................................................................................. 106 Debt Service Fund ...................................................................................................................... 107 Solid Waste Disposal Fund ......................................................................................................... 108 Water and Sewer Fund ............................................................................................................... 109 Sanitation Fund ........................................................................................................................... 110 Golf Course Fund ....................................................................................................................... 111 Workers' Compensation Reserve Fund ...................................................................................... 112 Health Insurance Fund ............................................................................................................... 113 Central Garage Fund .................................................................................................................. 114 STATISTICAL SECTION City of Salina, Kansas December 31, 2022 Net Position by Component -Last Ten Fiscal Years ...................................................................... 115 Changes in Net Position -Last Ten Fiscal Years ........................................................................... 116 Fund Balances, Governmental Fund -Last Ten Fiscal Years ........................................................ 117 Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years .................................. 118 Tax Revenues by Source, Governmental Funds -Last Ten Fiscal Years ..................................... 119 Assessed and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years ................... 120 Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years ............................................ 121 Principal Property Taxpayers ......................................................................................................... 122 Property Tax Levies and Distributions ............................................................................................ 123 Direct Sales Rate by Taxing Entity ................................................................................................. 124 Water Sales by Class of Customer ................................................................................................. 125 Ratio of Outstanding Debt by Type ................................................................................................ 126 Ratio of Net General Bonded Debt Outstanding ............................................................................ 127 Direct and Overlapping Governmental Activities Debt ................................................................... 128 Legal Debt Margin .......................................................................................................................... 129 Pledged Revenue Coverage .......................................................................................................... 130 Demographic and Economic Statistics ........................................................................................... 131 Principal Employers ........................................................................................................................ 132 lntrod uctory Section DEPARTMENT OF FINANCE AND ADMINISTRATION 300 West Ash, P.O. Box 736 Salina, Kansas 67402-0736 May 21, 2024 To the Citizens of the City of Salina, Kansas: TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 Website: www.salina-ks.gov The Annual Comprehensive Financial Report of the City of Salina, Kansas (the "City") for the year ended December 31, 2022, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position, the changes in financial position/fund balances and, where applicable, the cash flows of all funds of the City. We believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Report Format The Annual Comprehensive Financial Report is presented in three sections: Introductory, Financial and Statistical. The introductory section includes a description of the City, including services provided, and explanation of the City's accounting system and budgetary controls, and a brief discussion of the City's economic condition and outlook. The City's organizational chart is also included to assist the reader in understanding the organizational structure of the City. The financial section includes the Independent Auditor's Report, Management's Discussion & Analysis, Government-wide Financial Statements, Fund Financial Statements, Notes to the Financial Statements, and Individual and Combining Statements and Schedules. The Statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The reader is specifically directed to Management's Discussion and Analysis (MD&A) which immediately follows the Independent Auditor's Report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The budgetary procedures are reviewed by the City Commission each year as a part of the budget process. City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes. However, management control is maintained at the department level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded prior to the release of purchase orders to vendors. Various internal compliance procedures are implemented to ensure proper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. Independent Audit Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a City of the First Class on July 9, 1920. The City has had a Commission-City Manager form of government since 1921 . The Commission is comprised of five members elected at large. Each year the commission chooses one member to serve as Mayor. The City Manager is appointed by the Commission, and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The population of the City reported by the 2022 decennial census was 46,868. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers public housing programs within the City of Salina. The entity also includes one blended component unit which is the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB). SFH QalicB was created for the purpose of providing an indoor sports facility in the downtown core of the city of Salina. In addition, the City of Salina participates in a joint venture with Saline County, the City-County Building Authority for the ownership, operation and maintenance of the City-County Building. This report includes all funds of the City. The City provides a full range of services including police and fire protection, development services, construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural programming; emergency medical services and convention facilities. In addition to general government activities, the City also provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the reporting entity. Economic Outlook and Strength The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the community. Such companies include Vortex Global, GeoProbe Systems, Great Plains Manufacturing/Kubota, and Schwan's Global Supply Chain. Manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near the top of a list of first class cities with respect to "trade pull factor." According to the Kansas Department of Revenue's Annual City Trade Pull Factor report, Salina had a pull of factor of 1.51 in 2022. The pull factor measures the degree to which a city or county area captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting retail trade beyond the expected activity attributable to just the residents of that community. It is apparent from this that Salina continues to serve as a regional economic hub in 2022. Two Salina area company's announced major expansions in the second half of 2020. Schwan's Company announced expansion of its pizza production facility, adding approximately 225 jobs to the Salina area. Kubota announced a new plant for the production of compact track loaders, adding approximately 120 jobs to the Salina area. ii Major Initiatives In April, 2016, voters elected to replace the .40 cent capital improvement sales tax with a .75 cent capital improvement sales tax for a term of 20 years. Priorities for the sales tax are improving neighborhood streets and drainage, preserving stable property tax rates, ensuring a quality park system, constructing and maintaining community improvements, funding equipment for maintenance, repayment of future bonds for large projects and attracting quality jobs. In 2018, the City of Salina issued $22,570,000 in STAR bonds which funded several projects in the City's downtown corridor. In 2020 Homewood Suites opened for business and the majority of the City's Downtown Streetscape project was completed. Other major projects that were on going included gutter and paving on North 9th Street, South Well Field improvements, continued improvements to the water distribution system and preliminary design on the Smoky Hill River Renewal and construction of the Police Training Center project. The City continues to address fiduciary pressures generated by a recessionary economy and the more recent financial impacts of the Covid-19 pandemic. General adjustments to the pay plan for cost of living changes at a rate of 2.0% were implemented in 2022. The City offered merit increases up to 3% in 2022. Capital Improvement Planning The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine" capital-including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate to the nature of the purchase. The second component of the CIP includes major projects that typically require issuance of bonds or notes, although these projects may also be supplemented with available cash and grant financing. The plan is updated each year after an extensive evaluation of the demands on future financial resources. The Capital Improvement program is scheduled for a major revision as the result of the sales tax to be used for that purpose. CIP increases in 2022 and 2023 are a result of the anticipated beginning of the construction of the Smoky Hill River Renewal Project, Fire Station No. 4 and Wastewater Treatment Plant respectively. Due to uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. Few major projects have been planned for 2023 and 2024 until financial resources for those years could be further evaluated. *The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design, acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or more years depending on project magnitude) subsequent to this date. Financial Policies The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. Financial policies contribute to financial stability by: 1. Providing consistent guidance in decision making 2. Establishing appropriate levels of fund balances 3. Governing the use of one time or unanticipated resources 4. Providing a multi-year capital improvements process 5. Establishing responsibilities and deadlines for budget preparation 6. Providing for a balanced annual operating budget 7. Providing guidelines on the use of debt, including appropriate purposes and terms iii 8. Provide a linkage between capital improvement scheduling and long-term debt management planning 9. Require annual audits conducted in accordance with auditing standards generally accepted in the United States of America 10. Require timely and regular interim financial reporting to the Governing body 11. Ensure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). Acknowledgments The preparation of the Annual Comprehensive Financial Report was made possible by the dedicated Finance staff of the City of Salina and the professional advice and efforts of the FORVIS, LLP auditing team. Finally, preparation of this report would not have been possible without the support of the City Commission. iv ( City of Salina ) I CITIZENS I CITY COMMISSION Trent Davis, Mayor Karl Ryan Bill Longbine Greg Lenkiewicz Mike Hoppock City Manager Michael Schrage I I I I Deputy City Assistant City Risk Municipal Management Court Manager Manager Jacob Wood Shawn Henessee I I Development Services Parks & Recreation Police I Lauren Driscoll Jeff Hammond Interim Sean Morton I I I / " ' r ' Parks Division Administration Building Services Recreation Division Patrol Division Neighborhood Services Golf Course Support Division Planning & Zoning Facility Maintenance Community Relations Animal Services Investigative Division '" '-Bicentennial Center ~ ~ I I I Arts & Humanities I I Public Works I Utilities I Brad Anderson Jim Teutsch Martha Tasker I I I ] / Engineering / Smoky Hill Museum Water Plant Division Public Services Wastewater Plant Streets Division Traffic Control Utility Division Flood Control Water Distribution Sanitation Wastewater Solid Waste Collection Central Garage \.. ,I '-- I Continuous Process Human Resources Improvement Natalie Fischer Scott Gardner • Contract Position I Legal Services Clark Mize & Linville Ch artered* I GreJ?, Benl!tson '- I Fire Tony Sne idar I Fire Adminis tration sion Fire Suppres Fire Preventi on EMS I Finance/ Adminis !ration k '" Debbie Pac I City Clerk WaterCusto mer g Accountin Finance I Computer Technolo gy rdner Interim-Scott Ga 'I City of Salina, Kansas List of Principal Officials City Commission Mayor Trent Davis Vice-Mayor Karl Ryan Commissioner Bill Longbine Commissioner Greg Lenkiewicz Commissioner Mike Hoppock City Executive Staff Mike Schrage, City Manager Jacob Wood, Deputy City Manager Shawn Hennessee, Assistant City Manager Greg Bengston, City Attorney Debbie Pack, Director of Finance & Administration Brad Anderson, Director of Arts & Humanities Lauren Driscoll, Director of Community & Development Services Natalie Fischer, Director of Human Resources Scott Gardner, Computer Technology and Continuous Process Improvement Director Sean Morton, Interim Police Chief Martha Tasker, Director of Utilities Jim Teutsch, Director of Public Works Tony Sneidar, Fire Chief FORV/S 1551 N. Waterfront Parkway, Suite 300 I Wichita, KS 67206 P 316.265.2811 I F 316.265.9405 forvls.com Mayor and City Commissioners City of Salina, Kansas Salina, Kansas Opinions Independent Auditor's Report We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas (City), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City'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 governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of December 31, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparisons for the General and Sales Tax Capital funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB), a blended component unit, which represent 11.08%, 11.4 7%, and 5.42% respectively, of the assets, the net position/fund balances and the revenues/additions of the aggregate remaining fund information as of and for the year ended December 31, 2022. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for SFH QalicB, is based solely on the report of the other auditors. We also did not audit the financial statements of the Salina Airport Authority, a discretely presented component unit, which represent 88.23%, 79.30% and 75.67% respectively, of the assets and deferred outflows of resources, net position, and program revenues of the aggregate discretely presented component units as of and for the year ended December 31, 2022. We also did not audit the financial statements of the Housing Authority of the City of Salina, a discretely presented component unit, which represent 11. 77%, 20. 70% and 24.33% respectively, of the assets and deferred outflows of resources, net position, and program revenues of the aggregate discretely presented component units as of and for the year ended December 31, 2022. Those statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely on the reports of the other auditors. FORVIS,. a lrod•mark of FORVIS. l.LP. registered will, tho U $. P<,lont and Trademc,rk Office Mayor and City Commissioners City of Salina, Kansas Page2 Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the Kansas Municipal Audit and Accounting Guide (KMAAG). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of the City of Salina, Kansas 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 opinions. Emphasis of a Matter The 2021 financial statements, before they were restated for the matter discussed in Note 15, were audited by other auditors, and their report thereon, dated October 14, 2022, expressed unmodified opinions. Our opinions are not modified with respect to this, matter. As discussed in Note 6 to the financial statements, in 2022, the City adopted Governmental Accounting Standards Board Statement Number 87, Leases. Our opinions are not modified with respect to this matter. 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 City's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's 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 auditor's report that includes our opinions. 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 GAAS and KMAAG 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. Mayor and City Commissioners City of Salina, Kansas Page 3 In performing an audit in accordance with GAAS and KMAAG, 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 City'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 City'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, pension, and other postemployment benefit information 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. Mayor and City Commissioners City of Salina, Kansas Page4 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining schedules and individual fund statements and budgetary comparison schedules, as listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates 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 audit of the basic financial statements and certain additional procedures, including comparing 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 opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists , we are required to describe it in our report. Wichita, Kansas May 21, 2024 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Management Discussion and Analysis This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal year ended December 31, 2022. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well-rounded picture of the City's financial condition. Financial Highlights • On an accrual basis, the City's government-wide net position increased $28.5 million from current activities with net position change of $3.3 million and $25.1 million in governmental activities and business-type activities, respectively. Of this increase, $17.2 million of the increase to business-type activities related to a restatement for a correct of an error. • At the close of 2022, the City's governmental funds reported combined ending fund balances of $122.2 million, an increase of $9.97 million from the prior year. The General Fund balance increased $4.7 million, the Sales Tax Capital Fund decreased $1.3 million, the Former Schilling AFB Environmental Fund decreased $1 .1 million and all Other Governmental Funds fund balances increased $6.6 million over the prior year. • At the close of 2022, the City's enterprise funds reported a combined ending Net Position of $118.7 million, an increase of $25.1 million compared to the prior year. The Water and Sewer Fund, accounted for most of the increase at $22.2 million (which included the $17.2 million restatement noted above), while the Sanitation Fund and Solid Waste Disposal Funds showed slight increases, the Golf Fund reported a slight decrease to the net position for the year. • Revenues from governmental activities decreased by $61.5 million from the prior year and revenues from business-type activities increased $1.8 million from the prior year. • Revenues from investments increased by $329 thousand. • The City adopted Governmental Accounting Standards Board Statement No. 87, Leases, in 2022. Comparative 2021 information presented herein has not been restated for its adoption. The Basic Financial Statements The basic financial statements of the City include the government-wide financial statements and the fund financial statements. The notes to the financial statements follow the basic financial statements and are essential for the reader's understanding of the financial statements. Other supplementary information, including the combining schedules for nonmajor funds and the budgetary comparison reports, are at the end of this report to provide additional information for the reader. Government-wide Financial Statements The government-wide financial statements present the results of the City's activities using the accrual basis of accounting, the same basis as is used by private sector businesses. These statements focus on the long-term financial picture of the City as a whole. 5 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The Statement of Net Position reports all of the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources. Net position, the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is measure of the City's overall financial health. Net position represents the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net position can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how net position has changed during the fiscal year. One unique feature of this statement is how it shows the revenues and expenses related to specific programs and how much of those programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements show the activities of the City broken down between governmental and business-type activities. Governmental activities are the activities of the City generally supported by taxes, such as public safety (police, fire, and EMS), public works, public health and sanitation, culture and recreation and planning and development. Business-type activities are activities of the City that are intended to recover a significant portion of their costs through user fees and charges. These include water and sewer, refuse collection, the golf course, and operation of the City solid waste facility. The government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as discretely presented component units of the City and the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) as a blended component unit. Note 1, item A in the Notes to the Financial Statements provides a more complete explanation of the relationship between these entities and the City of Salina. Fund Financial Statements The City uses three types of funds to manage its resources: governmental funds, proprietary funds, and fiduciary funds. A fund is a fiscal entity with a set of self-balancing accounts recording financial resources together with all related liabilities and residual equities and balances, and the changes therein. These accounting entities are separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with regulations, restrictions, or limitations. Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred with the exception of long-term debt and similar items which are recorded when due. The focus is on the short-term financial picture of the operations of the individual fund, rather than long-term citywide view provided by the government- wide statements. Major governmental funds are presented in individual columns, while nonmajor governmental funds are aggregated into an "Other Governmental Funds" column. A combining statement for the nonmajor funds is presented as supplementary information in the back of the report. The information presented in these statements can be compared to the governmental activities information in the government-wide statements. The reconciliation at the end of the fund financial statements details the relationship between the two types of financial statements. 6 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are prepared on the accrual basis of accounting and are used to account for business-type activities. Enterprise fund statements present the same information that is in the government-wide statements for business-type activities, but in greater detail. The City of Salina currently operates four enterprise funds: Solid Waste Disposal, Water and Sewer, Sanitation and Golf Course. Internal service funds are used to account for the cost of operations shared by various departments of the City. The City operates three internal service funds. Two of these are for self-insurance activity: Workers Compensation Reserve, and Health Insurance. The remaining accounts for the Central Garage operation. A combining statement for these internal service funds can be found in the supplementary information following the notes to the financial statements. Fiduciary funds are used by the City to account for resources held by the City for a third party. The City of Salina operates one custodial fund. Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used. Permanent funds operated by the City include the Cemetery and Mausoleum Endowments, and the Tri-centennial Commission fund. Notes to the Financial Statements The notes to the financial statements are an integral part of the basic financial statements since they contain valuable additional information necessary for gaining a complete understanding of the City's financial statements. Other Information In addition to the basic financial statements and the notes described above, this report also presents combining statements and schedules and budgetary comparison schedules for nonmajor funds which are reported after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's activities and economy. The City as a Whole This section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support its operations. Each of these revenue streams has a different revenue base. In declining order of magnitude, they are charges for services, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to governmental activities, while charges for services apply to both governmental (25%) and business-type (75%) activities. 7 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Charges for Services account for about 41 % ($42.3 million) of the City's revenue stream. Charges for service depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course fees. Sales Taxes are the next largest component of the revenue mix, providing 30% ($31. 7 million) of the total revenues. The City receives a 1.25% City-wide sales tax, and also a portion of the County- wide 1.5% sales tax. Forty-four percent, (a rate of .75%) of the City-wide sales tax is required to be used for special purposes. The remaining .5%, along with the City portion of the County-wide tax is available for general purposes. The City is affected by the formula used to distribute the County-wide sales tax among participating jurisdictions (only Cities and the County participate, School and other special districts do not). The formula is based, in part, on the property tax efforts of each jurisdiction. As the portion of the overlapping levy attributable to the City of Salina changes so does the City's allocated portion of the County-wide sales tax. This change is recognized bi-annually and can affect the overall allocation of the City's portion of the County-wide sales tax. In 2008, Salina voters approved an increase of the special purpose .25% tax to a .40% tax. The extended tax was to sunset March 31, 2019. The tax was repurposed, for Capital and Economic Development purposes only, as well as retaining a property tax stabilizafion component. In May 2017, Salina voters approved an increase in the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective October 1, 2017, for twenty years. Property Taxes are the third major component of the revenue mix, accounting for 13% ($13.7 million) of total revenues. Property taxes consist of two components: Real estate and personal property taxes which are determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes which are established by a countywide average tax rate and the assessed value of the vehicle. Real estate assessed value increased by 9.5%. The total City mill levy decreased by 1.3%. The overlapping levy decreased in 2022 by 2.8%. Personal property value continued to slide, presumably as a result of removing business equipment from the tax base. Personal property value has now dropped to $9.5 million from its peak of $39. 7 million in 2007. Motor vehicle value decreased 3%. Motor vehicle taxes are distributed based on a formula using prior year's tax effort (similar to the Countywide Sales Tax Distribution). 8 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The following table summarizes the comparative property assessed values and tax levy rates: Fiscal (budget) Year 2022 2021 Change Real estate and personal property assessed valuation $ 503,880,021 $ 459,861,906 $ 44,018,115 City mill levy($ per $1,000) Operating (general fund) 23.612 23.847 (0.235) Debt service 6.736 6.803 (0.067) Total city rate 30.348 30.452 (0.104) Total overlapping levy 135.722 139.738 (4.016) Percent total taxes collected 98.9% 98.0% 0.009 Ratio of total taxes (including delinquent collections) to taxes levied 99.2% 99.1% (0.991) Motor vehicle valuation $ 54,903,252 $ 56,545,812 $ (1,642,560) The unemployment rate in Salina remained at 2.3% at the end of 2022, which was the same in 2021, reflecting general economic conditions. This is still slightly below the statewide and significantly below the national unemployment rate. The total labor force was 29,476 in 2021. In 2022, the top ten property taxpayers accounted for 9.46% of total assessed value. Statement of Net Position Net position may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $345.1 million as of December 31, 2022. This represents an increase in net position of $28.4 million over 2021. A comparative Condensed Statement of Net Position at December 31, 2022 and 2021, follows: Cash and investments Other current assets Noncurn:nt (capita]) assets Total assets Total deferred outflows of resources Total assets and deferred. outflows of resources Current liabilities Noncurrent liabilities Total liabilities Total deferred inflows of resources Net position Net investment in capital assets Restricted for pennanent. funds Reslricted for public works Restricted for debt service Unrestricted Total net position Governmental and Business-type activities net position as a pertent of total net position Cash and investments as a percentage of current liabilities Governmental Activities 2022 2021 Business-type Activities 2022 2021 2022 %of Total Total 2021 130,555 S 120,526 S 49,554 $44,760 S 180,109 33% $ 165,286 19,086 17,262 2,476 2,235 21,562 4% 19,497 ~!;·:: ----::,~5:-,,1:·.,.,~,,...: -~::~:-~~-0 --:64-17,-::-: -~;~--;·~~-~-,~~~"'~ ::::!~~~-~!~:::3 __ I'--0"-'24"-5 ____ 7"-'44"--4 ---"1"'21.:...9 -----'-'90"--3 --"-"IL"-'46"-4----'!""00'l'-"1/o __ .,:a8,"-'34.:...7 377.785 _ ____a;36::a:,3,,a:a85;:..,2 _ ___,:;18aa6:82a...O _ ___.16"'5"'39;:..,2 _ ____a;564=60"-5 529 244 o/o of 2622-2621 Total Change 32% $ 14,823 4% 2,065 1~~ --;::;.;,:::~;.:...~ 100% --~3-11_7 35362 17,820 17,292 6,916 5,539 24,736 12% 22,831 12% 1,905 ----e::;;,;;i""'~:-e-; :::1:~;:1~;:::; ::::::::~~~~,,...;'--_ -_ -_ -:_;:;6.~!;r: 175 752 88% 200.488 100% 165 326 88% _ ........ l,.:aO,c::42"-6 188 157 100% _ ........ 1 .. 2 __ 33 __ 1 -........ '=8-=507~ --~2=2~99~9 --~488 __ --~'=42"--4 --'=8-~99~6 24 423 (5,427) 142,399 548 65,594 2,196 ll 706 226 443 $ 66% 733% 143,768 75,933 56,004 218,331 63% 199,772 63% 18,559 559 548 0% 559 0% (11) 66,698 65,594 19"/o 66,698 21% {1,104) 2,112 1,347 1,132 3,543 1% 3,244 1% 299 22!~!! ""s,---,,/;.,;1i:aa;;!~,.;,-: -=s,--~!;;;a~a;;;;;.,,...6 -=s--='3;;.,a~·a;;;!~.;.-; ----,-100;;;,17~;;,.r: ...,s,--...,.3~;;;6,°"'!~,.;..1 1~~ ""s--2"'1~."'~~ .... ; 70% 697% 34% 717% 30% 808% 100% 100% 728% 724% 9 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The largest segment of the City's net position reflects its investment in capital assets (land, buildings, streets and drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related debt cannot come from liquidation of the asset. Such resources generally must be provided from other sources, such as future taxes or user charges. A small portion of net position is restricted for debt service and permanent funds. The remainder (unrestricted) of net position may be used to meet the City's obligations to citizens and creditors. In 2022, the amount of net investment in capital assets increased by $18.6 million. Amount restricted for debt service increased by $229,000. Amount restricted for public works decreased by $1.1 million. Unrestricted increased by $10.7 million. Outside of these changes, 2022 resulted in a $11,000 decrease to the net position. Total liabilities increased in governmental activities and slightly decreased in business-type activities. In governmental activities, current liabilities decreased, and noncurrent liabilities increased primarily due to a decrease in temporary notes and an increase in net pension liability. Statement of Activities A Comparative condensed Statement of Activities for the years ended December 31 , 2022 and 2021, follows: Governmental Activities Business-;type Activities Total Prima!l Government %of t.of 2022-2021 Revenues 2022 2021 2022 2021 2022 Total 2021 Total change Program Rcnoues Charges for services 12,178 s 9,629 $ 30,146 $ 29,001 $ 42,324 41% $ 38,630 24% s 3,694 Operating grants and contributions 3,407 4,711 3,407 3% 4,711 3% (1,304) Capital grants and contributions 66,150 0% 66,150 40% (66,150) General Re,,enuci 0% Property taxes 13,697 13,885 13,697 13% 13,88l 8% (188) Sales ta~es 31,676 26,720 31,676 30% 26,720 16% 4,9l6 Other taxes 9,452 8,7l9 9,4l2 9"/4 8,759 5% 693 Investment re,renue 487 ll8 487 0% ll8 0% 329 Other miscellaneous (427) 2,406 3,026 2,417 2,l99 2% 4,823 3% (2,224) Other income 398 398 0% 0% 398 Total revenues 70 869 132.418 33172 31418 104 041 100% 163836 100-/4 {59,7951 Expenses General government 16,479 16,098 16,479 18% 16,098 18% 381 Public safety 29,381 23,877 29,381 32% 23,877 27°/o 5,504 Public works 11,141 16,335 11,141 12% 16,335 18% (5,194) Public health and sanitation 1,883 2,315 1,883 2% 2,315 3% (432) Culture and recreation 8,145 6,305 8,l4l 9% 6,305 7% 1,840 Planning end development 3,415 2,289 3,4l l 4% 2,289 3% 1,126 Solid waste disposal 788 1,836 788 1% 1,836 2% (1,048) Water and sewt.'1' 15,885 13,3IO 15,88l 1'1°/4 13,310 15% 2,57l Sanitation 2,675 3,655 2,675 3% 3,6ll 4% (980) Golf course 916 878 916 1% 878 1% 38 Interest on long term debt 2152 2,827 2.ll2 2% 2 827 ____lli_ (675) Total expenses 72 l96 70 046 2od64 19.679 92 860 ---1.QQli 89 725 JOO% 3135 Increase in net assm before transfers and other c,,draordinary items (1,728) 62,372 12,908 11,739 11,180 74,111 (62,931) Transfers and other cxtmordinary items 5 036 16 681 Cl,0361 jl6.68ll Change in net po.sitioa 3,309 79,0l3 7,872 (4,942) 11,180 74,111 (62,931) Net Position, Btgioolng 223,134 144,081 93,l30 96,610 316,664 240,691 7l,973 Prior period adjustment 17 276 l 862 17 276 I 862 15,414 Net position, Beginning restated 223,134 144,081 110,806 98,472 333,940 242,553 91,387 Net Position. Ending 226,443 s 223 134 s 118 678 $ 93,l30 $ 345 120 316.664 28,456 10 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Governmental Activities. Charges for services attributable to governmental activities totaled $12.2 million, operating grants for those purposes were $3.4 million and capital grants totaled $0.0 million. Charges for services increased, operating grants decreased slightly from the prior year due to the 2020 COVID pandemic as most services were paused temporarily. Operating grants decreased due to the American Rescue Plan payment received in 2021. Capital grants decreased due to the City receiving a payment from the U.S. Department of Defense for environmental remediation of the former Schilling Air Force Base in 2021. The balance was funded by general revenues. Sales taxes accounted for $31. 7 million of general revenues, with property taxes providing $13.7 million. The net position increased by $3.3 million as a result of governmental activities. This increase was primarily related to the increases in sales and other taxes. Total expenses for governmental activities for the year ended December 31, 2022, were $72.6 million compared to $70 million in 2021 . Governmental activities represent 78% of the City's total expenses. The largest element of governmental activity expense was public safety, accounting for 40% of the total expenses. Business-type Activities. Business-type activities are primarily supported by user charges. Total expenses for business-type activities for the year were $20.2 million, or 22% of the City's total expenses. The majority of this expense ($15.8 million) is attributable to water and sewer operations, with the other activities costing a combined total of $4.3 million. Net position increased by $7.8 million. This increase was primarily related to the lack of transfers and other extraordinary items in 2022. Fund Financial Analysis Governmental Fund Balances The table below shows the Governmental Fund balances for major and nonmajor funds as of December 31, 2022 and 2021 . Fund 2022 2021 Change General $ 25,828 $ 21,064 $ 4,764 Sales tax capital 8,063 9,402 (1,339) Fonner Schilling AFB environmental 65,594 66,698 (1,104) Debt service 2,196 2,112 84 Capital projects (deficit) (199) (922) 723 Federal grants 155 (136) 291 Other governmental funds 18,552 11,997 6,555 $ 120,188 $ 110,215 $ 9,973 11 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Total governmental fund balances increased by $9.97 million. The reasons for these changes are varied, including higher sales and other tax revenue. Revenues and ExQ.enditures The following table shows a comparison of revenues and expenditures (including other sources and uses) for major and nonmajor funds for the years ending December 31, 2022 and 2021. Fund 2022 2021 Change Revenues (including other financing sources) General $ 49,660 $ 46,346 $ 3,314 Sales tax capital 10,435 9,639 796 Former schilling AFB environmental 210 67,959 (67,749) Debt service 6,895 12,855 (5,960) Capital projects 7,871 20,276 (12,405) Federal Grants 830 1,136 (306) Other governmental funds 19,112 9,722 9,390 Total revenues 95,013 167,933 (72,920) Less other sources (25,574) (37,405) 11,831 Revenues, net of other sources s 69,439 $ 130,528 $ (61 ,089) Expenditures (including other financing uses) General $ 44,896 $ 40,424 $ 4,472 Sales tax capital 11,775 5,447 6,328 Former schilling AFB environmental 1,314 1,956 (642) Debt service 6,810 12,467 (5,657) Capital projects 7,149 17,169 (10,020) Federal Grants 540 1,224 Other governmental funds 12,556 10,315 2,241 Total expenditures 85,039 89,002 (3,278) Less other uses (12,777) (6,399) (6,378) Expenditures, net of other uses $ 72,263 $ 82,603 $ (9,656) 12 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Total revenues, including other sources, decreased $61 million compared to 2021, with Former Schilling AFB Environmental Fund showing the largest decrease between the two years, which was $68 million. Total expenditures decreased $9. 7 million over 2021. The majority of that decrease, $10 million was in the Capital Projects Fund as a result of decreased spending on projects. Proe_rieta[t. Funds The City of Salina operates four enterprise funds as well as three internal service funds. Summarized comparative Statements of Net Position follows for each enterprise fund as of December 31, 2022 and 2021: Solid Waste Disposal Water and Sewer 2022 ~Hl ~~ange ~ii~~ ~lm ~~ange Current assets $ 9,970 $ 9,164 $ 806 $ 40,087 $ 36,210 $ 3,877 Capital assets 3,072 3,206 (134) 129,134 112,719 16,415.00 Deferred outflows 156 115 41 768 569 )99.00 Total assets and deferred outflows 3; !~.!!'~ s li,4S3 $ 714 $ l1i~.989 $ m.m $ 215,4~1 Current liabilities $ 358 $ 2,306 $ (1,948) $ 6,451 $ 3,134 $ 3,317 Noncurrent liabilities 4,470 4,360 110 55,295 59,760 (4,465.00) Deferred inflows 53 153 (100) 316 921 (605.00) Total liabilities ~ :il,SSO ~ 1i,m s (!.!'~!') ~ 6lll62 s 1i3,SI5 tl.m.OOJ Net investment in capital assets $ 3,072 $ 1,185 $ 1,887 $ 71,497 $ 53,250 $ 18,247 Restricted 1,347 1,132 215 Unrestricted 5,247 4,482 765 35,083 31,301 3,782.00 Total net position s s,m $ 5,1i1i7 s i,1i52 ~ !07,927 $ S5,1i8~ I 22.m Current assets as percentage of current liabilities 2789% 397% 621% 1155% Sanitation Golf Course 2022 ~il~l ~~ange ~nu 2021 ~~ange Current assets $ 1,874 $ 1,508 $ 366 $ 99 $ 112 $ (13) Capital assets 976 1,135 (159.00) 388 433 (45.00) Deferred outflows 170 127 43.00 125 91 34.00 Total assets and deferred outflows s J,0ii5 I i,'770 ~ '.BO ~ 1ili ~ 1iJ1i $ (24J Current liabilities $ 82 $ 82 $ $ 25 $ 17 $ 8 Noncurrent liabilities 683 562 121.00 290 216 74.00 Deferred inflows 91 264 (173.00) 28 86 (58.00) Total liabilities ~ m ~ !'i5S ~ (52) s m ~ m I 24 Net investment in capital assets $ 976 $ 1,135 $ (159) $ 388 $ 433 $ (45) Restricted Unrestricted 1,187 727 460 (119) (116) (3) Total net position ~ 2,11i~ ~ l,!i15i $ 301 $ 21i~ ~ J!7 $ (4~) Current assets as percentage of current liabilities 2288% 1839% 393% 659% 13 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Revenues, Ex12enses. and Chang_es in Net Position Summarized comparative Statements of Revenues, Expenses and Changes in Net Position follows for the years ended December 31, 2022 and 2021: Solid Waste Disposal Water and Sewer 2~22 2021 ~Fiange 2022 202~ ~hange Operating revenues $ 4,099 $ 3,636 $ 463 $ 24,742 $ 23,668 $ 1,074 Operating expenses 774 1,746 i972) 14 595 12,078 2 517 Operating income $ 3 326 $ 1,890 $ I 436 $ 10 147 $ 11 590 $ (1,443) Nonoperating revenues (expenses) !141 (90) 76 (1.290) !IJ32l (58) Income (loss) before transfers $ 3,312 $ 1,800 $ 1,512 $ 8,857 $ 10,358 $ (1,501) Transfers in (out) (659) !2.271 ) 1.612 p .890) !13,913) 10023 Change in net position $ 2,652 $ (47! l $ 3 123 $ 4,967 $ (3.555) $ 8,522 Net position Jan I $ 5,666 $ 6,137 $ (471) $ 85,682 $ 87,375 $ (1,693) Restatement 17276 1,862 15 414 Net position Jan 1, restated 5 666 6 137 (471) 102 958 89 237 13 721 Net position Dec 31 $ 8 318 $ 5,666 $ 2,652 $ 107,925 $ 85,682 $ 22,243 Sanitation Golf Course 2022 2021 Change 2022 2021 Change Operating revenues $ 3,474 $ 3,423 $ 51 $ 857 $ 689 $ 168 Operating expenses 2,675 3 655 (980) 916 878 38 Operating income $ 799 $ ~232) $ 1,031 $ (58) $ {189) $ 131 N onoperating revenue (expenses) Income (loss) before transfers $ 799 $ (232) $ 1,031 $ (58) $ (189) $ 131 Transfers in (out) !497) (497) 10 10 Change in net position $ 301 $ (729) $ 1,031 $ \48) $ (1 89) $ 141 Net position Jan I $ 1,862 $ 2,591 $ (729) $ 317 $ 506 $ (189) Restatement Net position Jan 1, restated 1 862 2 591 (729) 317 506 IJ89) Net position Dec 31 $ 2,163 $ 1,862 $ 302 $ 269 $ 317 $ (48) All enterprise funds continue to show healthy net position: 14 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Budgetary Highlights The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis fund balances as of December 31, 2022. Formal budgetary amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Reallocation among departments or line items are not typically recorded as budgetary amendments. However, in addition to formal amendments, departments within the City are allowed to transfer budget between line items within a department. Budgets may also be transferred from department to department within each fund. As a result of these transfers, the original budget and the final budgets may not be the same for departments within a fund. Capital Assets and Debt Administration Capital Assets The total amount invested in Capital Assets for the City as of December 31, 2022, was $351.5 million, net of accumulated depreciation and amortization. The following table illustrates the Capital Asset balances by various classes of assets as of December 31, 2022 and 2021 : Governmental Activity Business-type Activity Total 2022 2021 2022 2021 2022 2021 Equipment, furniture and fixtures $ 2,107 $ 2,378 $ 663 $ 902 $ 2,769 $ 3,280 Vehicles 2,686 2,315 676 885 3,361 3,200 Buildings and improvements 26,568 27,905 7,540 7,964 34,108 35,869 Land 24,647 24,647 2,386 2,386 27,034 27,033 Infrastructure 137,662 140,690 82,592 83,646 220,254 224,336 Leasehold improvements 357 357 357 357 Construction in progress 23,872 20,327 39,713 38,987 63,585 59,314 Total $ 217,899 $ 218,619 $ 133,570 $ 134,770 $ 351,470 s 353,389 15 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Changes to capital assets may be summarized as follows: Additions Retirements Depreciation and amortization Net reductions Governmental $ 6,176 (38) (6,858) Business-type Total $ 2,876 $ 9,052 (25) (63) (4,050) (10,908) $ (721) $ (1,199) $ (1,920) ========= Additional information on the City's capital assets can be found in Note 5. of the notes to the basic financial statements. Debt Management The City's general policy for general obligation bonds is to issue them for no more than 20 years for the City at Large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity may extend to 20 years. The outstanding general obligation bonds for governmental activities as of December 31, 2022, totaled $65,181,972. There were no temporary notes outstanding. Loans payable outstanding in the amount of $12,240,905 related to SFH QalicB, a blended component unit of the City. Business-type activities had $8,696,478 in revenue bonds outstanding and $6,911,392 in general obligation bonds. Revenues generated by user fees are pledged to retire all of the bonds issued by business-type activities. In addition, a loan payable is outstanding in the amount of $43,798,557. The City engaged in the following debt transactions during 2022: • On April 28th, the City issued Series 2022-A, General Obligation Bonds in the amount of $7,840,000 The proceeds were used to finance construction of a 9th Street Bridge, purchase Sanitation Trucks, replace HVAC units at Tony's Pizza Event Center, Design for the Smoky Hill River Renewal Project, Magnolia Hills Estates No. 2, Stone Lake Phase 3A and the Markley Trail. Additional information on the City's debt can be found in Note 6, of the notes to the basic financial statements. Requests for Information This financial report is intended to give the reader a general overview of the City's finances. Questions about information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West Ash Street, Salina, Kansas, 67401 . 16 Assets Current Assets Cash and investments Receivables, net of allowance Accounts Taxes Interest Leases Interest -leases Inventocy Restricted cash and investments Prepaid expenses Total cwrent assets Noaeurrent Assets Capital assets, nondepreciable Construction in progress Land Capital assets, depreciable Less: Accumulated depreciation Leases receivable Total noncurrent assets Total assets Deferred outflows of resources KPERS OPEB deferred outflows of resources OPEB deferred outflows of resources Pension deferred outflows of resources Deferred charge on bond issuance Total deferred outflows of resources See Notes to Financial Statements City of Salina, Kansas Statement of Net Position December 31, 2022 Prima~ Government Total Total Governmental Business-type Total Primary Activities Activities Government $ 130,555,268 $ 49,554,201 $ 180,109,469 2,367,679 1,861,273 4,228,952 16,445,959 16,445,959 5,141 16 5,157 267,481 614,535 882,016 149 641,528 52,030,025 201,671.553 23,872,057 39,713,436 63,585,493 24,646,334 2,386,334 27,032,668 314,964,834 174,223,545 489,188,379 145,584,691 82,753,216 228,337,907 217 898,534 133,570,099 351,468,633 367,540062 185,600,124 553,140,186 28,517 14,165 42,682 381,683 61,958 443,641 9,834,696 1,143,349 10,978,045 10,244,896 1,219,472 11,464,368 Comeonent Units Salina Salina Airport Housing Authorit:z: Authori~ $ 3,588,407 $ 2,538,529 594,360 103,972 682,175 7,997 38,377 141,863 18,746 113 271 4,891,685 2,936,012 475,414 136,350 9,920,765 1,481,569 91,420,736 8,808,594 53,453,721 5,863,078 3,009.970 5].373164 4,563,435 56,264,849 7,499,447 5,788 276 381,567 157,304 760424 1,147,779 157,580 17 City of Salina, Kansas Statement of Net Position (Continued) December 31, 2022 Prlma!1 Government Total Total Total Governmental Business-type Primary Activities Activities Government Liabilities Current Liabilities Accounts payable 2,136,638 429,041 2,565,679 Retainage payable 591,981 591,981 Accrued liabilities 1,336,906 166,528 1,503,434 Accrued interest payable 503,495 502,089 1,005,584 Deposits payable 282,499 282,499 Unearned revenue 6,659,339 6,659,339 Current portion of compensated absences 723,032 160,616 883,648 Current portion of temporary notes payable Current portion of loans payable 3,628,170 3,628,170 Current portion of leases payable 148,302 148,302 Current portion of revenue bonds payable 795,000 795,000 Current portion of general obligation bonds payable 5 720.000 952.000 6.672.000 Total current liabilities 17 819,693 6.915.943 24,735 636 Noncurrent Liabilities Accrued liabilities Compensated absences 918,446 199,640 1,118,086 Security deposits returnable OPEB obligation 3,419,949 556,290 3,976,239 KPERS OPEB obligation 257,078 127,697 384,775 Net pension liability 38,216,024 3,449,776 41,665,800 Loans payable 12,240,905 40,170,387 52,411,292 Leases payable 500,729 500,729 Revenue bonds payable 7,901,478 7,901,478 General obligation bonds payable 59,461,972 5,959,392 65,421,364 Landfill postclosure care liabilities 2.372.698 2 372,698 Total other liabilities 115,015,103 60 737 358 175.752 461 Total liabilities 132 834.796 67,653 301 200488,097 Deferred inflows of resources Property taxes 15,815,648 15,815,648 KPERS OPEB deferred inflows ofresources 215,265 106,930 322,195 Deferred leases OPEB deferred inflows of resources 608,904 98,839 707,743 Pension deferred inflows ofresources l 867 399 282 587 2.149,986 Total deferred inflows of resources 18.507.216 488,356 18,995.572 Total liabilities and deferred inflows ofresources 151.342 012 68 141.657 219,483.669 Net Position Net investment in capital assets 142,398,543 75,932,904 218,331,447 Restricted for: Permanent funds: Expendable 548,172 548,172 Public works 65,593,823 65,593,823 Debt service 2,196,006 1,346,625 3,542,631 Unrestricted 15 706 402 41,398 410 57 104,812 Total net position $ 226 442,946 $ 118,677,939 $ 345 120,885 See Notes to Financial Statements Comeonent Units Salina Salina Airport Housing Authori!l( Authorl!l! 697,635 35,784 222,0% 33,655 I 94,893 70,913 16,497 58,021 2,677 42,157 8.355 000 9.569,802 159 526 24,098 128,146 9,003 942,015 396,633 337,101 16,195,730 17.611.995 420 731 27 181.797 580.257 17,499 6,775 3,580,083 24,205 123 444 3,621 ,787 130219 30,803.584 710 476 24,694,502 4,563,435 154 1914542 2 382 962 $ 261609!044 $ 6,946,551 18 City of Salina, Kansas Statement of Activities For the Year Ended December 31, 2022 Net ~Expenses) Revenue and Changes In Net Position P!!9ram Revenues Prima!l Govemment Com~t Units Opera1ing C.pltal Total Total Salina Salina Charges for Orantsand Grants and Oovemmental Business-type Airport Housing E>tf!!!!SH Services ContribuUons Contrfl>utions Actlvlties ActMtie5 Total Autho~ Aulho!!!l: Gonmmtnlal act1vitic1 General government 16,479,381 5,516,275 259,238 (10,703,868) ( JO, 703,868) Public safety 29,380,775 -4,926,340 1,157,629 (23,296,806) (23,296,806) Public works ll,141,122 407,541 1,405,999 (9,327,582) (9,327,582) Public health and sanitation 1,882,876 60,167 277,304 (1,545,405) (1,545,405) Culture and recreation 8,145,408 967,945 289,816 (6,887,647) (6,887,647) Planning and development 3,415,263 299,885 16,675 (3,098,703) (3,098,703) Interest on long-term debt 2 JSJ.604 !2,151,6041 ,2.151,604! Total governmental activities 72 596 429 l2 178,153 3,406,661 157,0116151 rS70116l51 Bu1inc11-fype adivities Sol.id Waste Disposal 787,730 4,047,428 3,259,698 l,259,698 Water and Sewer 15,885,026 21,839,834 5,954,808 5,954,808 Sanitation 2.675,420 3,474,084 798,664 798,664 Golf Course 915.796 784.528 (131.2681 (131.2681 Total business-type activities 20,263.972 30,145.874 9,881.902 9,881,902 Total primary eovemment 92 860401 42 324,027 3 406,661 (57,011,6151 9,881,902 147,129,713. Campnnrnt units Salina Airport Authority 7,317,904 3,118,576 5,292,019 1,092,691 Salina Housing Authority 2,748,717 382,976 2,166414 155468 J43 859) Total component units 10,066,621 3,501,552 2,166414 5447,487 1,092,691 (43i859t General Revenues Property taxes levied for General purposes 10,705,736 I0,70S,736 2,431,f,fjJ Debt service 2,991,642 2,991,642 M'Dtor vehicle tax G<:neral purposes 2,013,660 2,013,660 Sales tax General purpo,es 16,697,633 16,697,633 Selective purposes 14,978.617 14,978,617 Other ta:(es General pwposes 7,438,260 7,'38,260 Investment revenues 486,951 486,951 8,383 4,209 Interest income • leases l05,299 Miscellaneous (425,781) 3,027,257 2,60),4?6 Gain on disposal of capital assets 398,199 398,199 60,778 12,181 Bond issuance costs (11,640) Transfers, net 5,036300 (5,036,30!!) Total general revenues 60,321,217 12,009,043 I ss 312 174 2,594,487 16,390 Change in net position 3,309,602 7,872,859 11,182 461 3 687 178 127,4691 Net position -beginning, as previously reported 223,133,344 93,529,507 316,662,851 22,921,866 6,974,020 Prior period adjwtment 17,275,573 17,275,513 Net position -beginning. ,emted 223,133,344 J I0,805,080 m,938,◄24 22 921 866 6,974,020 Net position -ending 226,442,946 ll8,677,9J9 345,120,885 $ 26,609,044 6,946,551 See Notes to Financial Statements 19 City of Salina, Kansas Balance Sheet -Governmental Funds December 31, 2022 Former Sales Tax Schilling AFB General Capital Environmental Assets Cash and investments $ 24,903,235 $ 8,337,703 $ 65,823,996 Restricted cash Receivables, net of allowance Accounts 1,274,119 Taxes 13,163,521 Interest 5,141 Inventory 156,576 Due from other funds Total assets $ 39,502,592 $ 8,337,703 $ 65,823,996 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 214,397 274,748 230,173 Retainage payable Accrued expenditures 867,943 Unearned revenue Temporary notes payable Due to other funds Total liabilities 1,082 340 274,748 230,173 Deferred inflows of resources Unavailable revenue -property taxes 12,437,245 Unavailable revenue -other 154,999 Total deferred inflows of resources 12,592,244 Fond Balance Nonspendable 156,576 Restricted 61,424,146 Committed 7,625,529 Assigned 357,738 437,426 4,169,677 Unassigned 25,313,694 Total fund balances 25,828,008 8,062 955 65,593,823 Total liabilities, deferred inflows of resources and fund balances $ 39,502,592 $ 8,337,703 $ 65,823,996 See Notes to Financial Statements Debt Capltal Service Projects $ 2,136,972 $ 766,972 3,282,438 $ 5,419 410 $ 766,972 374,488 591,981 966,469 3,223,404 3,223,404 2,196,006 2,748,819 (2,948,3 I 6 ) 2,196,006 (199,497) $ 5,419,410 $ 766,972 Other Total Federal Governmental Governmental Grants Funds Funds $ 6,876,481 $ 16,437,513 $ 125,282,872 3,069,338 4,343,457 16,445,959 5,141 156,576 $ 6,876,481 19,506,851 146,234,005 62,444 919,900 2,076,150 591,981 14,559 882,502 6,659,339 6,659,339 20,000 20,000 6,721,783 954,459 10,229,972 15,660,649 154,999 15,815,648 156,576 3,937,773 67,557,925 12,448,183 20,073,712 2,166,424 9,880,084 154,698 12 22,520,088 154,698 18,552,392 120,188,385 $ 6,876,481 $ 19,506,851 $ 146,234,005 20 [THIS PAGE INTENTIONALLY LEFT BLANK] City of Salina, Kansas Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2022 Total Governmental Fund Balances Amounts reported for governmental activities in the statement of net position are different because Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds Cost of capital assets Accumulated depreciation Pension contributions are reported as an expense in the funds and as a deferred outflow of resources in the governmental activities in the statement of net position. Pension fundings are reported as a revenue in the funds and as a deferred inflow ofresources in the governmental activities in the statement of net position. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. An internal service fund is used by the City's management to charge the costs of the worker's compensation program. The assets and liabilities of the internal service fund are included with governmental activities. The following liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These liabilities at year end consist of: Compensated absences Net OPEB obligation Net pension liability Bonds payable Loans payable Leases payable Accrued interest on the bonds Net Position of Governmental Activities See Notes to Financial Statements $ 363,483,225 145,584,691 1,641,478 3,677,027 38,216,024 65,181,972 12,240,905 649,031 503,495 $ 120,188,385 217,898,534 10,244,896 (2,691,568) (1,816,406) 4,729,037 (122,109,932) $ 226,442,946 21 City of Salina, Kansas Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Former Sales Tax Schilling AFB Debt Capital General Caeltal Environmental Service Projects Revenues Taxes Real estate taxes $ 10,554,177 $ $ $ 2,991,642 $ Delinquent taxes 117,647 33,912 Motor vehicle taxes 1,652,539 361,121 General sales taxes 16,697,633 Selective sales taxes 10,435,229 Other taxes 6,028,427 Intergovernmental 1,184,485 30,000 Special assessments 1,409,833 Licenses and permits Charges for services 6,580,579 Investment revenue 206,496 209,872 Donations Miscellaneous 832 136 172,199 Total revenues $ 43,854,119 $ 10,435,229 $ 209 872 $ 4,968,707 $ 30,000 Expenditures Current General government $ 6,783,483 $ $ $ $ Public safety 24,824,641 Public works 5,846,877 Public health and sanitation 800,884 Culture and recreation 4,025,077 Planning and development 702,721 Miscellaneous Capital outlay 372,260 1,440,852 1,313,816 3,418,056 Debt service Principal retirement 5,005,734 3,609,999 Interest and other charges 1,804,561 121,137 Total expenditures 43 355 943 I 440 852 1,313,816 6 810 295 7 149 192 Excess (deficiency) of revenue over (under) expenditures 498,176 8 994,377 n,103,944> (1,841,588! p,119,192! Other Financing Sources (Uses) Issuance of bonds 7,840,000 Bond and temporary note premium 1,200 Transfers in 5,806,300 1,925,930 Transfers (out) (1,540,000) ! I 013331850! Total other financing sources (uses) 4 266,300 p 0,333,850) I 925 930 7 841 200 Net change in fund balances 4,764,476 (1,339,473) (1,103,944) 84,342 722,008 Fund balances (Deficit)-Beginning of year 21,063,532 9,402,428 66 697 767 2 111 664 (921,5051 Fund balances (Deficit) -End of year $ 25 828 008 $ 8,062,955 $ 65,593,823 $ 2,196,006 $ (199,497) See Notes to Financial Statements Other Total Federal Governmental Governmental Grants Funds Funds $ $ $ 13,545,819 151,559 2,013,660 16,697,633 4,543,388 14,978,617 6,028,427 830,155 2,740,030 4,784,670 1,409,833 14,600 14,600 966,786 7,547,365 44,360 460,728 104,558 104,558 697,126 1,701,461 $ 830,155 9,110,848 69,438,930 $ $ $ 6,783,483 697,328 25,521,969 5,846,877 539,516 313,223 1,653,623 2,273,867 6,298,944 2,047,963 2,750,684 36,188 36,188 6,084,394 12,629,378 8,615,733 200,129 2,125,827 539,516 11,653,092 72,262,706 290,639 (2,542,244) (2,823,776) 7,840,000 1,200 10,000,711 17,732,941 (902,791) (12,776,641) 9,097,920 12,797,500 290,639 6,555,676 9,973,724 (135,941) 11,996,716 110,214,661 $ 154,698 $ 18,552,392 $ 120,188,385 22 City of Salina, Kansas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended December 31, 2022 Total Net Change In Fund Balances -Governmental Funds Amounts reported for governmental activities in the statement of activities are different because Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net position and allocated over their estimated useful lives as annual depreciation and amortization expenses in the statement of activities. This is the amount by which depreciation and amortization expense exceeds capital outlays in the period. Capital outlays Depreciation and amortization expense Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest increased. An internal service fund is used by the City's management to charge the costs of certain activities to the individual funds. The revenues and expenses of certain internal service funds are reported with governmental activities. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. Some expenses reported in the statement of activities, such as compensated absences and other postemployment benefits, are reported as paid in the governmental funds Pension payments are reported as expenditures in the governmental funds and do not affect the statement of net activities. Other changes Bond, temporary note, and loan proceeds and leases are other financing sources in the governmental funds, but they increase long-term liabilities in the statement of net position and do not affect the statement of activities. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment oflong-term debt and related items. Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Change in Net Position of Governmental Activities See Notes to Financial Statements $ $ 5,488,675 ( 61858,23 I) $ 9,973,724 {1,369,556) (25,777) 220,426 (303,774) 1,213,790 (3,806, 74 I) 280,165 (7,84 I ,200) 4,968,545 3,309,602 23 City of Salina, Kansas Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) General Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Real estate taxes $ 10,681,513 $ 10,681,513 $ 10,554,177 $ (127,336) Delinquent taxes 172,000 172,000 117,647 (54,353) Motor vehicle taxes 1,256,306 1,256,306 1,652,539 396,233 General sales tax 13,418,742 13,418,742 16,697,633 3,278,891 Other taxes 5,242,000 5,242,000 6,028,427 786,427 Intergovernmental 1,169,000 1,169,000 1,184,485 I5,485 Charges for services 5,703,860 5,703,860 6,580,579 876,719 Investment revenue 300,000 300,000 206,496 (93,504) Miscellaneous 368,560 368,560 832,136 463,576 Total revenues 38,311,981 38,311,981 43,854,119 5,542,138 Expenditures Current General government 6,322,722 6,322,722 6,783,483 (460,761) Public safety 22,755,735 22,755,735 24,824,641 (2,068,906) Public works 4,682,841 4,682,841 5,846,877 (1,164,036) Public health and sanitation 800,884 (800,884) Culture and recreation 6,542,559 6,542,559 4,025,077 2,517,482 Planning and development 2,840,206 2,840,206 702,721 2,137,485 Capital outlay 240,000 240,000 372,260 (132,260! Total expenditures 43 384 063 43,384,063 43,355,943 28 120 Excess (deficiency) of revenues over (under) expenditures (5,072,082J jS,072,082) 498,176 5 S70 258 Other Finandng Sourcts (Uses) Transfers in 5,806,300 5,806,300 5,806,300 Transfers (out) (1,655,500) ( 1165S1500) (1,540,000) 115,500 Total other financing sources (uses) 4,150,800 4 150 800 4.266-300 115,500 Net Change in Fund Balance (921,282) (921,282) 4,764,476 5,685,758 Fund Balance, Beginning 21,063,532 21,063,532 19,785,424 (1,278,I0SJ Fund Balanct, Ending s 20,142,250 $ 20,142,250 $ 24,549,900 $ 4,407,650 Reconcilation to GAAP Accounts receivable 1,304,865 Taxes receivable 13,121,855 Inventory 156,576 Accrued wages (867,943) Deferred revenue (12,437,245) GAAP Fund Balance, December 31 $ 25,828,008 See Notes to Financial Statements 24 City of Salina, Kansas Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) Sales Tax Capital Fund For the Year Ended December 31, 2022 Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Selective sales tax $ 9,020,000 $ 9,020,000 $ 10,435,229 $ 1,415,229 Total revenues 9,020,000 9,020,000 10,435,229 1,415,229 Expenditures Capital outlay 1,080,000 1,080,000 1,018,926 61,074 Total expenditures 1,080,000 1,080,000 1,018,926 61,074 Excess ( deficiency) ofrevenues over (under) expenditures 7,940,000 7,940,000 9,416,303 1,476,303 Other Financing Sources (Uses) Transfers (out) (10,333,850) (10,333,850) (10,333,850) Total other financing sources (uses) (10,333,850) (10,333,850) (10,333,850) Net Change in Fund Balance (2,393,850) (2,393,850) (917,547) 1,476,303 Fund Balance, Beginning 9,402,428 9,402,428 9,402,428 Fund Balance, Ending $ 7,008,578 $ 7,008,578 $ 8,484,881 $ 1,476,303 Reconcilation to GAAP Current year encumbrances (421,926) GAAP Net Change in Fund Balance $ (1,339,4732 See Notes to Financial Statements 25 Assets Current assets: Cash and investments Receivables, net of allowance Accounts Interest Inventory and prepaid supplies Total current assets Capital assets: Nondepreciable capital assets: Construction in progress Land Depreciable capital assets: Capital assets Less: accumulated depreciation Total capital assets Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources OPEB deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources See Notes to Financial Statements City of Salina, Kansas Statement of Net Position Proprietary Funds December 31, 2022 Solid Water Waste and Di!!f!2sa1 Sewer Sanitation $ 9,598,676 $ 38,259,558 $ 1,624,957 371,737 1,240,895 248,641 16 586,413 9,970,429 40,086,866 1,873,598 265 39,713,171 682,000 1,689,334 13,304,495 156,759,503 2,848,648 I0,914,668 69,028,270 I 872 464 3,072,092 129,133,738 976_184 13 042 521 169,220,604 2 849 782 1,437 9,203 2,648 7,137 40,318 12,021 147,644 718 854 155,399 156,218 768 375 170 068 Total Internal Enterprise Service Golf Course Funds Funds $ 71,010 $ 49,554,201 $ 5,272,396 1,861,273 16 28 122 614,535 110,905 99,132 52,030,025 5,383,301 39,713,436 15,000 2,386,334 1,310,899 174,223,545 168,234 937,814 82,753,216 154,325 388,085 133,570,099 13,909 487,217 185,600,124 5,397,210 877 14,165 729 2,482 61,958 121,452 1,143,349 50,723 124,811 1,219,472 51,452 26 Liabilities Current liabilities: Accounts payable Interest payable Accrued expenses Meter deposits payable Temporary notes payable City of Salina, Kansas Statement of Net Position (Continued) Proprietary Funds December 31, 2022 Solid Water Waste and Di!!f!OBal Sewer Sanitation Golf Course $ 61,093 $ 356,305 $ 7,860 3,783 32,805 469,284 17,694 103,891 32,411 12,532 282,499 Current portion of compensated absences payable 11,916 98,150 41,609 8,941 Current portion of accrued claims payable Current portion ofloans payable 3,628,170 Cunent portion of general obligation bonds payable 234,000 718,000 Current portion of revenue bonds payable 795,000 Total current liabilities 357.508 6 451 299 81.880 25 256 Noncurrent liabilities: Compensated absences payable 14,811 121,997 51,719 11,113 Accrued claims payable OPEB obligation 64,945 361,358 107,739 22,248 KPERS OPEB obligation 12,953 82,966 23,872 7,906 Net pension liability 468,918 2,232,312 499,782 248,764 Payable from restricted assets Loans payable 40,170,387 General obligation bonds payable 1,535,232 4,424,160 Revenue bonds payable 7,901,478 Landfill postclosure care liabilities 2 372 698 Total noncurrent liabilities 4 469 557 55,294,658 683 112 290 031 Total liabilities 4 827 065 61 745,957 764 992 315287 Deferred inflows of resources KPERS OPEB deferred inflows of resources 10,848 69,472 19,990 6,620 OPEB deferred inflows of resources 11,385 64,318 19,176 3,960 Pension deferred inflows of resources 30 305 182,704 52 303 17275 Total deferred inflows of resources 52,538 316494 91,469 27 85S Total liabilities and deferred inflows of resources 4 879,603 62.062,451 856,461 343 142 Net Position Net investment in capital assets 3,072,092 71,496,543 976,184 388,085 Restricted Restricted for bond retirement 1,346,625 Unrestricted (deficit) 5 247,044 35 083 360 I 187 205 (119.)99) Total net position $ 8,319 136 $ 107,926,528 $ 2,163,389 268 886 See Notes to Financial Statements Total Internal Enterprise Service Funds Funds 429,041 $ 60,488 502,089 166,528 32,460 282,499 160,616 7,407 421,944 3,628,170 952,000 795 000 6915943 522,299 199,640 9,206 556,290 127,697 6,574 3,449,776 161,523 40,170,387 5,959,392 7,901,478 2 372 698 60,737,358 177,303 67,653 301 699,602 106,930 5,505 98,839 282 587 14,518 488 356 20023 68 141 657 719,625 75,932,904 13,909 1,346,625 41 398,4IO 4 715 128 118 677 939 $ 4,729,037 27 City of Salina, Kansas Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2022 Solid Waste Water and Disposal Sewer Sanitation Golf Course Total Operating Revenues Charges for services $ 4,047,428 $ 21,839,834 $ 3,474,084 $ 784,528 $ 30,145,874 Miscellaneous 51,972 2,902.407 30 72 848 3 027 257 Total operating revenues 4 099400 24,742,241 3 474 114 857,376 33,173.131 Operating Expenses Geneml government Public works 639,495 10,883,710 2,516,563 14,039,768 Recreation 870,812 870,812 Depreciation 134-242 3.711.786 158 857 44,984 4 049 869 Total operating expenses 773,737 14,595,496 2,675,420 915 796 18,960,449 Operating income (loss) 3,325,663 10.146,745 798,694 (58,420) 14,212,682 Nonoperatlng Revenues (Expenses) Interest expense (38,071) (1,370,866) (1,408,937) Accretion of bond premium 24078 81,336 105 414 Total nonoperating revenues (expenses) (13,993) (1,289,530) (1,303,523) Income (loss) before transfers 3,311,670 8,857,215 798.694 (58,4201 12,909,159 Transfers in 42,500 5,178,672 10,000 5,231,172 Transfers out (701,700) (9,068,422! (497,350) (10,267,472! Change in net position 2,652,470 4,967,465 301 344 (48,420) 7,872,859 Net Po•ition, Beginning, as previously reported 5,666,666 85,683,490 1,862,045 317,306 93,529,507 Prior period adjustment 17,275,573 17 275 573 Net Position, Beginning, restated 5,666,666 102,959,063 1,862,045 317,306 110,805,080 Net Position, Ending $ 8,319,136 $ 107,926,528 $ 2,163,389 $ 268,886 $ 118,677,939 See Notes to Financial Statements Internal Service Fund $ 8,022,849 26,223 8 049,072 7,908,646 7,908,646 140.426 140,426 80,000 220,426 4,508,61 I 4,508,611 $ 4,729,037 28 City of Salina, Kansas Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Solid Waste Water and Dis1:2sa1 Sewer Sanitation Goff Course Cash Flows from Operating Activities Cash received from customers and users 3,915,233 $ 21,950,239 3,462,226 784,528 Cash paid to suppliers of goods or services (193,815) (7,198,055) (1,523,673) (438,587) Cash paid to employees (560,062) (3,834,187) (1,087,893) (449,528) Other operating receipts 51.972 2 762 840 30 72.848 Net cash provided by (used in) operating activities 3,213,328 13,680,837 850,690 (30,739) Cash Flows from Capital and Related Financing Activities Acquisition and construction of capita] assets (2,850,764) Proceeds from loans 2,035,480 PrincipaJ payments -loans (1,839,714) (1,975,289) Principal payments -general obligation bonds (1,035,351) Principa1 payments -revenue bonds (775,000) Interest paid 140274) (1,402,384! Net cash used in capital and related financing activities (1,879,988) (6,003,308) Cash Flows from Noncapital and Related Financing Activities Transfers in 42,500 5,178,672 10,000 Transfers out 1701,1001 !9,068,422) !497.350! Net cash provided by (used in) noncapital financing activities (659,200) (3,889,750) (497,350) 10,000 Cash and Cash Equivalents, Beginning of Year 8 924 536 34 471 779 1271.617 91 749 Cash and Cash Equivalents, End of Year $ 9,598,676 s 38,259,558 $ 1,624,957 71,010 Reconciliation of Operating Income (Loss) to Net Cub Provided by (used in) Operatin& Activities Operaring income (loss) $ 3,325,663 10,146,745 798,694 (58,420) Adjustment to reconcile operating income (loss) to net cash provided by (used in) operating activiries: Depreciation expense 134,242 3,711,786 158,857 44,984 (Increase) decrease in receivables (132,195) 110,405 (11,858) (Increase) decrease in inventory (199,446) (7,943) (Increase) decrease in deferred outflows (41,190) (199,127) (42,958) (33,544) Increase (decrease) in accounts payable (125,276) 192,942 1,096 3,358 Increase (decrease) in accrued expenses 17,694 103,891 32,411 12,532 Increase ( decrease) in accrued compensation absences (21,624) (178,116) (75,510) (16,226) Increase (decrease) in claims payable (139,567) Increase (decrease) in net pension liability 161,453 768,607 172,079 85,652 Increase (decrease) in net KPERS OPEB obligation (3,763) (24,100) (6,935) (2,296) Increase (decrease) in net OPEB obligation (1,567) (8,719) (2,600) (537) Increase (decrease) in meter deposits payable Increase (decrease) in deferred inflows p oo 1091 f604,464J !172,586) !58,2991 Total adjustments (I 12,335) 3,534,092 51,996 27,681 Net cash provided by (used in) operating activities $ 3,213,328 13,680,837 850,690 $ !J0,739) See Notes to Financial Statements Internal Total Service Fund 30,112,226 8,022,849 (9,354,130) (8,273,155) (5,931,670) 14,496 2 887 690 26223 17,714,116 (209,587) (2,850, 764) 2,035,480 (3,815,003) (1,035,351) (775,000) (I 442 658) (7,883,2%) 5,231,172 80,000 po,261,412l (5,036,300) 80,000 44 759 681 S 401 983 49,554 201 5,272,3% $ 14,212,682 140,426 4,049,869 (33,648) (207,389) 25,470 (316,819) (13,376) 72,120 (19,467) 166,528 (291,476) (176,439) (139,567) (169,062) 1,187,791 55,614 (37,094) (1,910) (13,423) (935,458) (50 843) 3,501,434 (350,013) 17,714,116 $ (209,587) 29 Assets Cash and investments Total assets City of Salina, Kansas Statement of Fiduciary Net Position Fiduciary Funds December 31, 2022 Liabilities and Net Position Liabilities Accounts payable Total liabilities Net Position Restricted for individuals, organizations, and other governments Total net position See Notes to Financial Statements $ $ Custodial Fund 6,059 6,059 6,059 6,059 30 City of Salina, Kansas Statement of Changes in Fiduciary Net Position Fiduciary Funds December 31, 2022 Custodial Funds Additions Miscellaneous $ 25,964 Total additions 25 964 Deductions Contractual services 19,906 Total deductions 19 906 Change in Net Position 6,058 Net Position, Beginning of Year 1 Net Position, End of Year $ 6 059 See Notes to Financial Statements 31 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 1: Summary of Significant Accounting Policies Reporting Entity The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor as part of a five-member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the government-wide statements (see note below for descriptions) to emphasize that it is legally separate from the government. The blended component unit is reported as a governmental fund of the City (see note below for description) to emphasize that, while it is a legally separate entity, it is so intertwined with the City that it is, in substance, part of the City. Discretely Presented Component Units Salina Airport Authority -The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling A.F.B that was closed by the United States Department of Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. The Commission must also approve the issuance of general obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end. Housing Authority of the City of Salina -The purpose of the Housing Authority of the City of Salina (Housing Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 2022. Blended Component Unit Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) -SFH QalicB was created to function as a qualified low-income community business, as defined in Section 45D(d)(2) of the Internal Revenue Code of 1986 for the purpose of providing an indoor sports facility in the downtown corridor of the City of Salina. The purpose of the facility is to cater to local residents as well as host regional sports tournaments with the anticipation of becoming a regional destination for youth athletics. This mix of participation is expected to provide the most consistent visitation and tourism for the downtown district. The SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The field house is staffed by City of Salina employees. SFH QalicB has a December 31 fiscal year end. SFH QalicB is a not-for-profit organization exempt from income tax under Section 50I(c)(3) of the Internal Revenue Code and is exempt from similar state and local taxes. 32 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Complete financial statements for each of the individual component units may be obtained at the respective entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, Kansas Joint Ventures Housing Authority of the City of Salina 469 South 5th Salina, Kansas Salina Field House QALICB, Inc. 300 West Ash Street Salina, Kansas The City of Salina also participates with Saline County in one joint venture. The City and County organized the Saline County-City Building Authority to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for the joint venture. Separate financial statements are available from the governing board of the joint venture. Total unencumbered cash, December 31, 2022 Total change in unencumbered cash, year ended December 31, 2022 Total cash receipts, year ended December 31, 2022 Total cash receipts from City of Salina (Kansas Regulatory Basis) Building Authority (Audited) $ 2,065,833 44,765 1,576,973 504,888 Complete financial statements for the joint venture may be obtained at the entity's administrative office. Saline County-City Building Authority 300 West Ash Street Salina, Kansas Government-wide and Fund Financial Statements The statement of net position and the statement of activities report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges between the City's governmental and business-type activities. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 33 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items, which are not classified as program revenues, are presented as general revenues of the City. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column in the fund financial statements. Basis of Accounting and Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes levied for, and interest associated with, the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net position. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for risk management, worker's compensation, health insurance, and central garage that are provided to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. 34 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The fiduciary funds are used by the City to account for resources held by the City for the benefit of third parties. Because the resources of these funds are not available for the City's operations, they are not presented in the government-wide financial statements. The City's lone fiduciary fund is reported as a custodial fund. The City reports the following major governmental funds: General Fund -To account for resources traditionally associated with government, which are not required legally, or by sound financial management, to be accounted for in another fund. Sales Tax Capital Fund (special revenue fund)-To account for 58% of the 1.25 cent sales tax designated for capital, debt, and human services purposes. Former Schilling AFB Environmental Fund (capital projects fund)-To account for the funding provided by U.S. Government and expenditures necessary to abate groundwater contamination beneath the property formerly identified as Schilling Air Force Base. Debt Service Fund -To account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment. Capital Projects Fund -To account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. The City reports the following major proprietary funds: • Solid Waste Disposal Fund -To account for the activities of the City's landfill. • Water and Sewer Fund -To account for the activities of the City's water and sewer operations. • Sanitation Fund -To account for the operations of the City's refuse collection service. • Golf Course Fund -To account for the operations of the municipal golf course. The City reports 43 nonmajor governmental funds, three nonmajor permanent funds, one nonmajor debt service fund and three internal service funds. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 35 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Accounts Receivable and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for doubtful accounts, if applicable. Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed, apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City and, therefore, are not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred inflows of resources and are identical to the adopted budget for 2022. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole. The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming delinquent, with penalty, December 21 . Payments of 50% are accepted through December 20, with the second 50% then being due on or before May 10 of the following year. This procedure eliminates the need to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. Taxes remaining due and unpaid as of February 15 and July 1 are subject to collection procedures prescribed in state statutes. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 36 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Pooled Cash and Investments The City maintains a cash and investment pool that is available for use by all funds managed by the City. Each fund type's portion of this pool is displayed in the financial statements as "Cash and Investments." The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at fair value. Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized investments. Investments with maturity dates greater than three months are stated separately. Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund based on the percentage of funds invested to total investments. All investments are carried at fair value. Capital Assets (Including Intangible Assets) Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Capital assets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is recognized as an expense (financial statements using the economic resources measurement focus) or an expenditure (financial statements using the current financial resources measurement focus) in accordance with GASB89. Capital assets of the primary government, are depreciated/amortized using the straight-line method over the following estimated useful lives: Buildings Other equipment Vehicles Infrastructure 50 years 5 -15 years 6 -10 years 30 -50 years 37 Lease Assets City of Salina, Kansas Notes to Financial Statements December 31, 2022 The City initially measures lease assets as the sum of the following: a. the amount of the initial measurement of the lease liability. lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term c. initial direct costs that are ancillary charges necessary to place the lease asset into service. Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. The amortization of the lease asset is reported as an outflow of resources (amortization expense). Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave that can be accumulated. Employees with more than five years of service with the City are paid for one-third of their accumulated sick leave at their current wage scale upon termination of employment in good standing. In 2001, a limited buy back policy was instituted. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment. Employees must use 50% of leave accrued each calendar year and an employee's maximum accrued vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24-hour shifts). Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the government fund financial statements that will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the business-type funds and government wide financial statements are recorded as an expense and liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. The General Fund, Bicentennial Center Fund, Central Garage Fund, Sanitation Fund, Solid Waste Fund, Golf Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for compensated absences. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports changes in the pension and OPEB plan liability proportion and assumptions, net difference between projected and actual earnings on pension plan and OPEB plan investments and differences between pension and OPEB plan liability expected and actual experience as deferred outflows of resources in the governmental activities. 38 City of Salina, Kansas Notes to Financial Statements December 31, 2022 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Unavailable revenue-property taxes is reported in the governmental funds balance sheet. Additionally, differences between expected and actual experience, changes in assumptions, changes in the pension liability, OPES plan proportion and unearned property taxes are reported as deferred inflows. These amounts are deferred and recognized as an inflow of resources as provided for by applicable accounting pronouncements. Net Position Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Temporary Notes Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits the temporary financing of such improvements by the issuance of temporary notes. Temporary notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes outstanding are retired from the proceeds of the sale of general obligation bonds. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized as an expense in the period incurred under GASB 65. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 39 Fund Balances City of Salina, Kansas Notes to Financial Statements December 31, 2022 In the fund financial statements, governmental funds report fund balance in the following classifications: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of resources either by being externally imposed by creditors, granters, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed fund balances include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Commission. Assigned fund balances include amounts that are constrained by the City management's intent to be used for specific purposes but are neither restricted nor committed. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts are considered to be spent first. When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balance is available, the following is the order in which resources will be expended: committed, assigned and unassigned. The following is the detail for fund balance classifications in the governmental funds financial statements: Major Governmental Funds Former Other Total Sales Tax SchllllngAFB Debt Capital Federal Governmental Governmental General Ca(!ital Environmental Service Projects Grants Funds Funds Fund balanc...: Nonspendable for: Inventory $ 156.576 $ $ $ $ $ $ 156,576 Restricted for: Public works 2.246,841 2,246,841 Public health and sanitation 234 234 Culture and recreation 432,161 432,161 Planning and development 1,258,537 1,258,537 Capital improvements 61,424,146 61,424,146 Debt payments 2,196,006 2,196,006 Committed for: Public safety 992,571 992,571 Culture and recreation 766,819 766,819 Planning and development 3,227,973 3,127,973 Cemetery 548,172 548,172 Capital improvements 7,625,529 6,912,648 14,538,177 Assigned for: General government 357,738 33,519 391,257 Public safety 50,300 50,300 Public works Culture and recreation 52,173 52,173 Capital improvements 437,426 4,169,677 2,748,819 2,030,432 9,386,354 Unassigned: 25,313,694 (2,948,3 I 6J 154.698 12 22,520,088 Tota] fund balances $ 25,828,008 $ 8,062,955 $ 65,593,823 $ 2,196,006 $ (199,497) $ 154,698 $ 18,552,392 $ 120.)88,385 40 Note 2: City of Salina, Kansas Notes to Financial Statements December 31, 2022 Deposits, Investments and Investment Income Deposits and Investments The City's cash is considered to be active funds by management and is invested according to KSA 9-1401 . The statute requires that banks eligible to hold active funds have a main or branch bank in the county in which the City is located or in a county adjacent to the City and the banks provide an acceptable rate for active funds. Various City investments are considered to be idle funds by management and are invested according to KSA 12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the funds: U.S. Treasury bills or notes or the Municipal Investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute. Some of the City's investments are of bond proceeds invested pursuant to KSA 10-131 . This statute allows additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA 12-1675 or include other investments such as the KMIP, direct obligations of the U.S. government or any agency thereof, investment agreements with a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's investors service or Standard and Poor's corporation, and various other investments as specified in KSA 10-131. As of December 31 , 2022, the City has the following investments: Investment Type Kansas Municipal Investment Pool Total fair value $ $ Fair Value 320,764 320,764 Rating S&P AAAf7S I+ The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary government securities dealers. The City's investment policy provides direction on concentration risk. The City policy states that funds shall be diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities, instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices insuring that the next disbursement date and payroll date are covered through maturing investments, marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts. Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis, and that all securities are adequately collateralized. 41 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to insure the ability to meet normal anticipated cash flow needs. When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however, such transactions shall not be a part of the normal course of business. The City recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to KSA 9- 1402. As of December 31, 2022, the City's deposits were considered fully secured. Restricted cash is comprised of an interest reserve account (the "Interest Reserve"), and an operating reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest Reserve and the Operating Reserve accounts are available as part of the loans payable financing (see Note 6). As of December 31, 2022, the balance of the Interest Reserve and Operating Reserve was $54,271 and $127,065, respectively. 42 Note 3: Receivables City of Salina, Kansas Notes to Financial Statements December 31, 2022 Receivables as of year-end, including the applicable allowances for doubtful accounts, are as follows: Debt Other General Service Governmental Total Primary Government Receivables: Accounts $ 8,240,843 $ $ 3,069,624 $ 11,310,467 Taxes 13,163,521 3,282,438 16,445,959 Interest 5,141 500 5,641 Gross receivables 21,409,505 3,282,438 3,070,124 27,762,067 Less: allowance for uncollectibles (6,966,724) (786) (6,967,510) Total $ 14.442.781 $ 3,282.438 $ 3.069,338 $ 20.794.557 Solid Water Waste and Dlseosal Sewer Sanitation Total Primary Government Receivables: Accounts $ 371,737 $ 2,357,678 $ 377,662 $ 14,417,544 Taxes 16,445,959 Interest 16 5,657 Gross receivables 371,753 2,357,678 377,662 30,869,160 Less: allowance for uncollectibles (1,116,783) (129,021) (8,213,314) Total $ 371.753 $ 1,240,895 $ 248.641 $ 22.655 ,846 Component Units Salina Airport Authority Receivables: Accounts $ 91,730 Grants 504,130 Leases 682,175 Interest -leases 7,997 Less: allowance for uncollectibles (1,500) Total Salina Airport Authority 1,284,532 Salina Housing Authority Receivables: Accounts $ 110,593 Less: allowance for uncollectibles (6,621) Total Salina Housing Authority 103,972 Total $ 1.388.504 43 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 4: Stewardship, Compliance and Accountability Budgetary Information Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget: 1. Preparation of the budget for the succeeding year on or before August 1. 2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5. 3. Public hearing on or before August 15, but at least ten days after publication of notice of hearing. 4. Adoption of the final budget on or before August 25. If the City is holding a revenue neutral rate hearing, the budget timeline for adoption of the final budget has been adjusted to on or before September 20th. The City was not required to hold a revenue neutral rate hearing for this year. The statutes allow the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2022 budget was amended during the year for the Special Alcohol, Neighborhood Parks, TPEC, Solid Waste, Central Garage, Golf Course and Tourism and Convention funds. The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the statutory basis of accounting, in which, revenues are recognized when cash is received, and expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. 44 City of Salina, Kansas Notes to Financial Statements December 31, 2022 A legal operating budget is not required for capital projects funds, Former Schilling AFB Environmental fund, SFH QalicB fund, nonmajor debt service funds, trust funds, permanent funds, and the following special revenue funds: Community Development Revolving, Downtown TIF District #1, South 9th CID, Downtown CID, Alley CID, Downtown Hotel CID, North 9th CID, STAR Bonds Subprojects, State Grants, 911 Communications, Kenwood Cove Capital, Special Law Enforcement, Police Grants, Federal Grants, DARE Donations, War Memorial Maintenance, Federal CARE Grant, Police Department Federal Forfeiture, Homeowners' Assistance, Private Grants, Animal Shelter Donations, Special Assessments Escrow, Court Bond and Restitution, Police Investigation Account, Citizenship, DTF Local, DTF Reserve, Beechcraft Remediation Settlement and Bail Bond Escrow funds. A legal operating budget is not required for Internal Service Funds, however, actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. Expenditures in Excess of Budget For the year ended December 31, 2022, for the Debt Service Fund had actual expenditures in excess of budget by $109,295. This excess spending was covered by available cash basis reserves. Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive of revenue bonds and special assessment bonds) the City may have outstanding to 30 percent of the assessed value of all tangible taxable property within the City, as certified to the county clerk on the proceeding August 25. As of December 31, 2022, the statutory limit for the City was $167,634,982, providing a debt margin of $108,644,195. Deficit Net Position/Fund Balances At December 31, 2022, the capital projects fund, a major fund, had a deficit fund balance of $199,497. 45 Note 5: Capital Assets City of Salina, Kansas Notes to Financial Statements December 31, 2022 Capital assets activity for the year ended December 31, 2022, was: Beginning Balance Increases Decreases Governmental Attivitie!ll Capital assets not being depreciated: Construction in progress $ 20,326,839 $ 5,167,934 $ Land 24,646.334 Total capital assets not being depreciated 44 973 173 5 167,934 Capital assets being depreciated/amortized: Infrastructure 241,307,031 Buildings and improvements 53,158,946 Vehicles 10,387,525 278,950 (762,364) Equipment, furniture and fixtures 7,885,409 80,207 Leased vehicles 649,031 Leasehold improvements 357 383 Totals capital assets being depreciated/amortized 313,096,294 1,008,188 (762,364) Less accumulated depreciation/amortization for: Infrastructure 100,616,614 4,650,686 Buildings and improvements 25,253,821 1,337,075 Vehicles 8,072,895 518,648 (723,948) Equipment, furniture and fixtures 5 507 078 351 822 Total accumulated depreciation/amortization 139 450 408 6858231 f723 948) Total capital assets, being depreciated/amortized, net 218,619,059 $ (682,109) $ (38,416) Beginning Balance Increases Decreases (Restated) Business-type Activities Capital assets not being depreciated: Construction in progress $ 38,987,075 $ 2,875,632 $ Land 2 386 334 Total capital assets not being depreciated 41,373,409 2,875,632 Capital assets being depreciated: Infrastructure 140,031,871 Buildings and improvements 22,864,164 Vehicles 3,781,267 (228,767) Equipment, furniture, and fixtures 5 625,739 Totals capital assets being depreciated 172 303,041 (228 767 1 Less accumulated depreciation for: Infrastructure 56,385,977 3,203,199 Buildings and improvements 14,900,421 423,824 Vehicles 2,896,199 184,275 (203,899) Equipment, furniture, and fixtures 4.724.650 238.570 Total accumulated depreciation 78 907,247 4 049,868 (203,8991 Total capital assets, being depreciated, net $ 134 769 203 $ (1,174,236) $ !24,868) Ending Transfers Balance $ (1,622,716) $ 23,872,057 24 646 334 (I 622 716) 48,518 391 1,622,716 242,929,747 53,158,946 9,904,111 7,965,616 649,031 357 383 1,622 716 314,964,834 105,267,300 26,590,896 7,867,595 5,858,900 145,584 691 $ $ 217,898,534 Ending Transfers Balance $ (2,149,271) $ 39,713,436 2 386 334 (2,149,271) 42 099,770 2,149,271 142,181,142 22,864,164 3,552,500 5,625,739 2,149,271 174 223 545 59,589,176 15,324,245 2,876,575 4,963,220 82,753,216 $ $ 133,570,099 46 City of Salina, Kansas Notes to Financial Statements December 31, 2022 During 2022 the City adjusted the beginning balances of several capital asset accounts in order for the ending balances to tie to their depreciation schedules. As a result of this restatement, beginning net position for Business-type Activities (Water and Sewer Fund) was increased by $17,275,573. The City's depreciation/amortization expense was charged to governmental functions as follows: Governmental Activities General government Public safety Public works Public health Culture and recreation Planning and development Total depreciation expense -governmental activities Business-type Activities Solid waste disposal Water and sewer Sanitation Golf course division Total depreciation expense -business-type activities $ $ $ $ 21,437 791,376 4,591,522 30,508 1,089,408 333,980 6.858.231 134,242 3,711,786 158,857 44,983 4.049,868 47 Note 6: City of Salina, Kansas Notes to Financial Statements December 31, 2022 Long-Term Obligations The following is a summary of changes in long-term obligations for fiscal year 2022: Beginning Ending Balance Additions Reductions Balance Governmental Activities General obligation bonds $ 59,582,649 $ 7,840,000 $ (4,914,649) $ 62,508,000 General obligation bond premium 3,041,369 (367,397) 2,673,972 Loans payable 12,640,000 12,640,000 Loans payable discount (413,058) 13,963 (399,095) Lease payable 702,725 (53,694) 649,031 OPEB liability 3,502,471 459,451 (541,973) 3,419,949 KPERS OPEB liability 340,238 46,371 (129,531) 257,078 Net pension liability 25,057,864 13,158,160 38,216,024 Accrued compensation 2,838,655 55,008 (I ,252, 185) 1,641,478 Temporary notes 3,647,188 (3,647,188) Temporary note premium 66,598 !66,598) Total $ 110,303,974 $ 9,103,555 $ 2,198,908 $ 121,606,437 Business-type Activities General obligation bonds $ 7,672,351 $ -$ (1,035,351) $ 6,637,000 General obligation bond premium 326,140 (51,748) 274,392 Loans payable 43,966,366 2,035,480 (2,203,289) 43,798,557 Revenue bonds 8,865,000 (775,000) 8,090,000 Revenue bond premium 660,145 (53,667) 606,478 OPEB liability 569,713 74,732 (88,155) 556,290 KPERS OPEB liability 164,791 20,687 (57,781) 127,697 Net pension liability 2,261,985 1,187,791 3,449,776 Accrued compensation 651,732 (291,476) 360,256 Temporary notes 1,582,812 (1,582,812) Temporary note premium 28,902 (28,902) Total $ 66,749,937 $ -$ (4,980,390) $ 63,900,446 Due Within One Year $ 5,353,000 367,000 148,302 723,032 $ 6,591,334 $ 952,000 39,399 3,628,170 795,000 66,015 160,616 $ 5,641,200 48 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following is a detailed listing of the City's general obligation bonds outstanding as of December 31, 2022: General Obll&ation Bonds -Prima!! Government Governmental Activities Pu!Eose, Series Issue Date Final Maturi!}'. Interest Rates Ori!linal Issue Outstandlnll Internal Improvements, 2013A 2/15/2013 10/1/2028 2.60% to 3 .65% $ 1,360,000 $ 630,000 Improvement and Refunding, 2015A 7/29/2015 10/1/2035 3.00 to 3.50% 6,825,000 4,420,000 Internal Improvements, 2016A 7/26/2016 10/1/2036 2.00% to J .00% 6,570,000 4,925,000 Refunding, 2016B 7/26/2016 !0/1/2031 2.00% to 5.00% 13,750,000 6,517,000 Internal Improvements, 2017 A 7127/2017 10/112037 3.00% to 3.38% 9,310,000 7,520,000 Internal Improvements, 2018A 11127/2018 10/1/2033 3.15% to 4.00% 2,090,000 1,630,000 Internal Improvements, 2019A 4/24/2019 10/1/2039 3.00% to 4.00% 11,090,000 10,015,000 Internal Improvements, 2020A 4/29/2020 10/1/2035 2.00% to 3 .00% 5,210,000 2,727,000 Internal Improvements, 2020B 11/19/2020 10/1/2036 2.00% to 3 .00% 8,450,000 3,533,000 Internal Improvements, 2021A 4/29/2021 10/1/2041 1.63% to 4.50% 7,645,000 7,420,000 Refunding, 2021B 9/8/2021 10/112034 I.I 5% to 2.00% 6,220,000 5,331,000 Internal Improvements, 2022A 4/28/2022 10/1/2042 2.5% to 4.00% 7,840,000 7 840 000 s 62,508.000 The following is a detailed listing of the City's revenue bonds outstanding as of December 31, 2022: Revenue Bonds -Primary Government Purpose, Series Issue Date Final Maturity Interest Rates Revenue & Refunding, 2019 9/11/2029 10/1/2031 3.00% $ Original Issue 10,330,000 Business-type Activities Outstandlns $ 1,688,000 1,408,000 3,252,000 289,000 $ 6 637 000 Business-type Activities Outstanding $ 8,090,000 The following is a detailed listing of the City's loans payable as of December 31, 2022: Loans Pa~able -Prima!! Government Governmental Business-type Activities Activities PU!J:!0S8 Issue Data Final Maturi~ Interest Rates Orlsinal Issue Outstandin11 Outstandinll Kansas Public Water Supply 2629 8/1/2014 811/2034 2.12% $ 8,562,911 $ 5,286,080 Kansas Public Water Supply 2917 8/15/2018 2/1/2040 2.33% 32,000,000 28,422,912 Kansas Public Water Supply 2957 7/2/2018 2/1/2040 2.33% 4,250,000 3,544,914 Kansas Public Water Supply 2997 7/7/2020 811/2041 1.43% 4,250,000 2,784,646 Kansas Water Pollution Control 2049 2/22/2021 9/1/2042 1.30% 31,500,000 2,707,614 Kansas Water Pollution Control 2050 12111/2018 3/1/2035 2.54% 2,250,000 1,052,391 Dakotas Note A 7127/2016 12/10/2050 1.58% 6,016,500 6,016,500 Dakotas Note B 7/27/2016 12/10/2050 1.58% 2,623,500 2,623,500 CNMCNoteA 7127/2016 12/1012050 1.58% 2,674,000 2,674,000 CNMCNoteB 7127/2016 12/10/2050 1.58% 1,326,000 1 326.000 s 12,640,000 $ 43,798 557 49 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following is a detailed listing of the long-term debt outstanding of Salina Airport Authority, a component unit of the City, as of December 31, 2022: General Obliaation Bonds -Comeonent Units Original Pureose, Serles Issue Date Final Maturi~ Interest Rates Issue Outstanding Internal Improvement & Refunding, 2015A 8/28/2015 9/1/2025 1.50% to 3.55% $ 3,075,000 $ 255,000 Taxable Refunding, 2017 A 7/12/2017 9/1/2030 1.61% to 3.35% 10,255,000 9,420,000 Refunding, 2017B 7/12/2017 9/1/2031 2.00% to 3.00% 4,835,000 4,710,000 Refunding, 2019A 10/10/2019 9/1/2029 2.10% to 3. 10% 675,000 490,000 Taxable Refunding, 2019B 10/10/2019 9/1/2023 2.80% to 3.00% 3,455,000 870,000 Refunding, 2021A 8/17/2021 9/1/2031 0.25% to 2.00% 2,345,000 2,200,000 Less: Unamortized bond premium 13,209 Plus: Unamortized bond discount (52,479) $ 17.905,730 Temeora!i'. Notes -Comeonent Units Original PU!:EOSe, Series Issue Date Final Maturi~ Interest Rates Issue Outstandinll Internal Improvements, 2020-1 9/1/2020 9/1/2023 0.48% $ 2,100,000 $ 2,100,000 Taxable, 2021-1 11/10/2021 9/1/2023 0.45% 3,545,000 3,545,000 Taxable, 2022-1 7/1/2022 7/1/2023 2.25% 1,000,000 1,000,000 $ 6.645.000 Financed Purchase Asreement-Comeonent Units Original Purpose, Series Issue Date Final Maturi!l Interest Rates Issue OutstandinS Building 824 Improvements 8/12/2020 9/1/2030 3.30% $ 460,000 $ 379,258 Annual debt service requirements to maturity for general obligation bonds: General Obligation Bonds -Primary Government Year Ending Governmental Activities Business-t~ee Activities December 31, Princieal Interest Total Princie!!I Interest Total 2023 $ 5,353,000 $ 1,899,852 $ 7,252,852 $ 952,000 $ 176,765 $ 1,128,765 2024 5,392,000 1,587,816 6,979,816 873,000 140,525 1,013,525 2025 5,195,000 1,432,854 6,627,854 805,000 118,312 923,312 2026 4,717,000 1,279,937 5,996,937 593,000 97,309 690,309 2027 4,562,000 1,137,532 5,699,532 558,000 81,857 639,857 2028-2032 19,250,000 3,874,260 23,124,260 1,845,000 228,729 2,073,729 2033 -2037 14,599,000 1,546,848 16,145,848 1,011,000 47,476 1,058,476 2038 -2042 3,440,000 190,200 3,630,200 Total $ 62,508,000 $ 12,949,299 $ 75,457,299 $ 6,637,000 $ 890,973 $ 7,527,973 50 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Revenue Bonds -Prima!l Government Year Ending Business-t;i::pe Activities December 31, PrinciEal Interest Total 2023 $ 795,000 $ 242,700 $ 1,037,700 2024 820,000 218,850 1,038,850 2025 845,000 194,250 1,039,250 2026 870,000 168,900 1,038,900 2027 895,000 142,800 1,037,800 2028 -2031 3,8652000 293,850 41158,850 Total $ 8,090,000 $ 1,261,350 $ 9,351,350 Annual debt service requirements to maturity of the for loans payable: Year Ending December 31, Total 2023 $ 2024 2025 2026 616,140 2027 616,140 Thereafter 11,407,720 $ 12,640,000 51 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Annual debt service requirements to maturity of the long-term debt outstanding of the City's component unit, the Salina Airport Authority, as of December 31, 2022: General Obli9ation Bonds -Component Units Year Ending December 31, Principal Interest Total 2023 $ 8,355,000 $ 546,911 $ 8,901,911 2024 1,760,000 454,540 2,214,540 2025 1,810,000 411,120 2,221,120 2026 1,865,000 363,633 2,228,633 2027 1,905,000 312,193 2,217,193 2028 -2032 8,215,000 687,076 8,902,076 2033 -2036 680,000 33,795 713,795 Total $ 24,590,000 $ 2,809,268 $ 27,399,268 Financed Purchase Asreement -Comeonent Units Year Ending December 31, Principal Interest Total 2023 $ 42,157 $ 12,171 $ 54,328 2024 43,560 10,768 54,328 2025 45,009 9,318 54,327 2026 46,507 7,821 54,328 2027 48,055 6,273 54,328 2028 -2030 153,970 7,697 161,667 Total $ 379,258 $ 54,048 $ 433,306 Kansas Public Water Supply Loans. The City has engaged in a loan with the Kansas Public Water Supply Fund. The following displays annual debt service requirements to maturity for the loan payable to be paid from service revenues, for the full proceeds amount: Loans Payable -Primary Government Year Ending Business-!y[!e Activities December 31, Princi[!al Interest Total 2023 $ 391,228 $ 110,002 $ 501.230 2024 399,566 101,664 501,230 2025 408,082 93,148 501,230 2026 416,779 84,451 501,230 2027 425,662 75,569 501,231 Thereafter 3,244,763 263,850 3,508,613 Total $ 5,286,080 $ 728,684 $ 6,014,764 52 City of Salina, Kansas Notes to Financial Statements December 31, 2022 During 2019, the City entered into additional loans with the Kansas Public Water Supply Fund and the Kansas Water Pollution Control Fund. The water supply loans allow the City to borrow up to $36,170,000 with a gross interest rate of 2.33%. The water pollution control loan allows the City to borrow up to $2,250,000 with a gross interest rate of 2.54%. Amortization schedules for the loans are not yet available since the loans have not been fully finalized. The purpose of the loans are to finance various water and sewer infrastructure projects throughout the City. Dakotas and CNMC Notes. Dakotas Note A -On July 27, 2016, a $6,016,500 promissory note with a maturity date of December 10, 2050, was provided to SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2016, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $293,276 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $6,016,500. Dakotas Note B -On July 27, 2016, a $2,623,500 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $127,883 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $2,623,500. CNMC Note A-On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $130,345 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $2,674,000. CNMC Note B -On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $64,636 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $1,326,000. 53 City of Salina, Kansas Notes to Financial Statements December 31, 2022 As of December 31 , 2022, the principal balance of these four loans was $12,240,905. Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments are not recorded as revenue when levied against the respective property owners as such amounts are not available to finance current year operations. Premises lease. On July 27, 2016, SFH QalicB, as lessor, entered into a lease agreement with the City, as lessee, for the use of the Salina Field House, as defined in the Net Lease agreement (the "Property"). The lease term is 30 years, as defined in the Net Lease agreement. Beginning on July 1, 2017, and on the first day of each December thereafter through December 1, 2046, annual payments are due, in advance, as specified in the Net Lease agreement. For the year ended December 31, 2022, SFH QalicB earned $492,917 of rental income under the terms of the Net Lease. As of December 31, 2022, rental income of $109,737 remained receivable from the City. The lease has been reported as an intra-entity lease. Accordingly, the reporting requirements of GASB 87 do not apply and the appropriate eliminations have been made. The following is a schedule, by year, of total minimum lease payments by the City to SFH QalicB under the lease as of December 31, 2022: Premises Lease between QalicB and City Year Ending December 31, Lease Pa~ment 2023 $ 162,500 2024 227,500 2025 227,500 2026 650,000 2027 650,000 2028 -2032 3,250,000 2033 -2037 3,250,000 2038 -2042 3,250,000 2043 -2046 2,275,000 Total $ 13,942,500 54 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Ground Lease. On October 24, 2018, SFH QalicB entered into a lease agreement with Salina Regional Medical Education, LLC for the use of property for parking of passenger vehicles and non-commercial trucks (the Parking Lot) by the public. SFH QalicB will have the option to acquire the Parking Lot for $1 upon the end of the lease term, which is 100 years, as defined in the Ground Lease. A one-time basic rent payment of $250,000 was due on the commencement date. There are no additional minimum lease payments due. The lease does not qualify for GASB 87 reporting. Sales tax and Revenue (STAR) Bonds. STAR Bonds are authorized to be issued pursuant to K.S.A. 12-17, 160, et seq., as amended (the STAR Bond Act). The STAR Bond Act provides a form of tax increment financing that enables the issuance of bonds payable from certain State and local sales and compensating use tax revenues and transient guest tax revenues generated from STAR bond projects constructed within a STAR bond project district. To implement STAR bond financing, a local government must adopt a resolution that specifies a proposed STAR bond project district's boundary and describes the overall district plan, hold a public hearing on the district and plan, and pass a resolution that establishes the STAR bond project district. Additionally, there may be one or more projects within a STAR bond district. In accordance with the STAR Bond Act, the City has no liability for payment of bonds in the event that revenues received from sources noted above are inadequate to pay the debt incurred with the issuance of the STAR bonds. In connection with the issuance of STAR bonds, the City of Salina and the State of Kansas entered into a Tax Distribution Agreement. The agreement provides that the principal of, accreted value, and interest on the STAR bonds will be paid proportionally by the City of Salina and the State of Kansas, based on each entity's respective share of sales taxes generated within the district. These proportional shares may change in the future if the sales taxes assessed by the local or state governments are modified. On June 1, 2015, the City of Salina Commission adopted Ordinance 15-10776 establishing the district known as the Salina STAR Bond Project District. On August 22, 2016, the City held a public hearing and approved Ordinance 16-10856 adopting the STAR Bond Project Plan. On December 1, 2018, the City of Salina issued $18,250,000 in Senior Special Obligation Revenue Bonds (Series 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-B). As of December 31, 2022, the outstanding balances for the 2018-A and 2018-B were $16,585,000 and $4,320,000, respectively. 55 Leases Year Ending City of Salina, Kansas Notes to Financial Statements December 31, 2022 Vehicle Leases December 31, Princieal Interest Total 2023 $ 148,302 $ 5,932 $ 154,234 2024 142,599 11,636 154,235 2025 137,114 17,121 154,235 2026 130,654 22,193 152,847 2027 90,362 19,577 109,939 Total $ 649,031 $ 76,459 $ 725,490 During fiscal year 2022, the City implemented Governmental Accounting Standards Board Statement No. 87, Leases (GASB 87). Leases having a greater than twelve month lease term are analyzed to determine if the arrangement is subject to GASB 87. If the City is found to be either the lessee or the lessor in the agreement, GASB 87 accounting principles are applied. Adoption of GASB 87 had no effect on the City's beginning net position or fund balances at January 1, 2022. Note 7: lnterfund Transfers A reconciliation of interfund transfers follows: Transfer In Transfer Out General $ 5,806,300 $ 1,540,000 Tourism and convention 902,791 Special gas 160,000 Sales tax capital 10,333,850 Bicentennial center 861,861 Debt service 1,925,930 Arts & Humanity 520,000 Sales Tax Economic Development 750,000 Solid waste disposal 42,500 701,700 Water and sewer 5,178,672 9,068,422 Sanitation 497,350 Golf course 10,000 Parks Maintenance 2,020,000 Fleet Management 1,000,000 Street Maintenance 3,750,000 Building and Facilities Maintenance 870,500 Kenwood Cove Capital 68,350 Central garage 80,000 Total transfers $ 23,044,113 $ 23,044,113 The City uses interfund transfers to share administrative costs between funds. 56 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 8: Contingent Liabilities The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on the financial statements of the City as of December 31, 2022. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. 57 Note 9: Capital Projects City of Salina, Kansas Notes to Financial Statements December 31, 2022 Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the project authorization, including allowable interest revenue, to total project expenditures from project inception to December 31, 2022. Project Authorization Expenditures Downtown Streetscape $ 12,787,597 $ 12,327,367 Smoky Hill River Renewal 12,165,000 3,639,274 S Well Field & WTP Phase 1 41,500,000 31,112,703 Rehab Pump St 28,29/Repl 28 Face Main 550,000 Northbound 9th Street Bridge 2,000,000 2,307,696 Smoky Hill Greenway Trail 435,637 62,362 Chorine Building 2 Roof Replacement 35,000 2019 Water Main Replacement 4,000,000 2,436,516 Magnolia Hills Estates II 1,575,240 13,785 Stone Lake Phase 2 670,166 456,485 Stone Lake Phase 3A 1,647,053 3,368 Sound Garden Oakdale Park 10,046 10,046 Wheatland Valley. Specials 5,474,790 9,000 WWTP Owners Rep 896,790 447,919 WWTP Improvement PH I 879,193 3,577,149 Public Safety Communication System 2,361,323 2,434,573 2021 Pavement Sealing 460,000 400,607 TPEC Improvements (Floor/HY AC) 170,246 578,367 5th Street Parking Lot 467,963 444,476 Pool Tennis Court Remodel 864,000 15,807 2021 Water Main Replacement 2,000,000 Campbell Plaza 300,000 282,473 Magnolia Road Sidewalk 250,000 20,430 Automated Sanitation Trucks 1,600,000 1,560,781 SH River Trail Raise 250,000 59,645 Cedar Point Addition 1,017,910 750 Holmes Road Magnolia to Crawford 250,000 121,970 West Magnolia• Centennial to 135 267,290 117,804 Winn Road Culvert Replacement 193,510 28,050 Bill Burke Restrooms 400,000 23,080 Bill Burke Improvements 3,600,000 83,687 Markley Trail BFRA 65,000 338 $ 99,143,754 $ 62,576,508 58 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 10: Pollution Remediation Obligations Municipal Solid Waste Landfill State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense of the Solid Waste Fund in each period based on landfill capacity used as of each statement of net position date. The $2,372,698 reported as landfill closure and postclosure care liability as of December 31, 2022, represents the cumulative amount reported to date based on the use of 26.6% of the estimated capacity of the landfill. The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $8,918,907 as the remaining estimated capacity is filled over the remaining life expectancy of 179.2 years. These amounts are based on what it would cost to perform all closure and postclosure care in 2022. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S. Environmental Protection Agency (at 40 CFR 258.74(f)} and the Kansas Department of Health and Environment to provide these assurances. Any future closure or postclosure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. Environmental Matters The Kansas Department of Health and Environment (KDHE} issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site. The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the City assumed primary responsibility for the further investigation and remediation of the groundwater contamination. Field testing work has been completed. The necessary remediation work will be conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund, thus no liability is recorded related to this remediation as of December 31, 2022. Since 2010, the City has been involved with civil litigation concerning environmental contamination in certain areas in the vicinity of the Salina Regional Airport and the Salina Airport Industrial Center. The contamination was caused by military activity that occurred between 1942 and 1966 when the site was operated as the Schilling Air Force Base. The City, the Salina Airport Authority, Unified School District No. 305 and Kansas State University (the "Salina Public Entities"} sued the United States seeking federal funds to clean up the contamination. A remedial investigation and feasibility study (RI/FS) were completed in 2019 to determine the extent and severity of the contamination and to determine the best method of remediation. Based on the RI/FS, the Kansas Department of Health and Environment (KDHE} issued a Corrective Action Decision (CAD} on July 29, 2019. The Salina Public Entities and the U.S. Department of Justice (DOJ} reached a settlement of the litigation ultimately documented in the form of a Consent Decree filed in U.S. District Court on November 23, 2020. Pursuant to the Consent Decree, the Salina Public Entities assumed responsibility for the Response Action in the CAD in exchange for a $69.5 million lump sum payment by the United States to the Salina Public Entities. The settlement payment was received 59 City of Salina, Kansas Notes to Financial Statements December 31, 2022 by the City during the year ended December 31, 2021 and was recorded as restricted fund balance as of December 31 , 2022. No liability has been accrued as of December 31 , 2022 due to the uncertainty of the amounts required to mitigate the property. Note 11: Pension Plans Defined Benefit Pension Plan Description of Pension Plan. The City participates in a cost-sharing multiple-employer pension plan (Pension Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System (KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS provides benefit provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49: • Public employees, which includes: o State/School employees o Local employees • Police and Firemen • Judges Substantially all public employees in Kansas are covered by the Pension Plan. Participation by local political subdivisions is optional, but irrevocable once elected. Those employees participating in the Pension Plan for the City are included in the Local employees group and the Kansas Police and Firemen group. KPERS issues a stand-alone Annual Comprehensive Financial Report, which is available on the KPERS website at www.kpers.org. Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members (except Police and Firemen) with ten or more years of credited service, may retire as early as age 55 (Police and Firemen may be age 50 with 20 years of credited service), with an actuarially reduced monthly benefit. Normal retirement is at age 65, age 62 with ten years of credited service, or whenever a member's combined age and years of service equal 85. Police and Firemen normal retirement ages are age 60 with 15 years of credited service, age 55 with 20 years, age 50 with 25 years, or any age with 36 years of service. Monthly retirement benefits are based on a statutory formula that includes final average salary and years of service. When ending employment, members may withdraw their contributions from their individual accounts, including interest. Members who withdraw their accumulated contributions lose all rights and privileges of membership. For all pension coverage groups, the accumulated contributions and interest are deposited into and disbursed from the membership accumulated reserve fund as established by K.S.A. 74-4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lump-sum payment of up to 50% of the actuarial present value of the member's lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of the lump sum. Benefit increases, including ad hoc post-retirement benefit 60 City of Salina, Kansas Notes to Financial Statements December 31, 2022 increases, must be passed into law by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of the State of Kansas. The 2012 Legislature made changes affecting new hires, current members and employers. A new KPERS 3 cash balance retirement plan for new hires starting January 1, 2015, was created. Normal retirement age for KPERS 3 is 65 with five years of service or 60 with 30 years of service. Early retirement is available at age 55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on the account balance at retirement. 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, 2022. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rate was 8.9% for KPERS and 22.99% for KP&F for the year ended December 31, 2022. Member contribution rates as a percentage of eligible compensation for the fiscal year 2022 are 6.00% for Local employees and 7.15% for Police and Firemen. Employer Allocations. Although KPERS administers one cost-sharing multiple-employer defined benefit pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined contribution rate by group. Following this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense are determined separately for each of the following groups of the plan: • State/School • Local • Police and Firemen • Judges To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify additions, deductions, and fiduciary net position applicable to each group. The allocation percentages presented for each group in the schedule of employer and nonemployer allocations are applied to amounts presented in the schedules of pension amounts by employer and nonemployer. The allocation percentages for the City's share of the collective pension amounts as of December 31, 2022, are based on the ratio of its contributions to the total of the employer and nonemployer contributions of the group for the fiscal years ended December 31, 2022. 61 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 30, 2022, the City's proportion for the Local employees group was 0.733%, which was a decrease of .032% from its proportion measured at June 30, 2021. At June 30, 2022, the City's proportion for the Police and Firemen group was 1.878%, which was a decrease of .104% from its proportion measured at June 30, 2021. Net Pension Liability. At December 31, 2022, the City and its component units reported a liability of $41,665,800 for its total proportionate share of the net pension liability for the Local and Police and Firemen groups. The total pension liability was determined by an actuarial valuation as of December 31, 2021, which was rolled forward to June 30, 2022, 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 Rate 2.75% 3.50% to 12.00% including inflation 7.00% 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, 2021, valuation were based on the results of an actuarial experience study conducted for the period of January 1, 2017, through December 31, 2019. The experience study is dated January 26, 2023. The long-term expected rate of return of pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2022, are summarized in the following table: Long-Term Expected Real Asset Class Long-term Allocation Rate of Return US Equities 23.5% 5.20% Non-US Equities 23.5% 6.40% Private Equity 8.0% 9.50% Private Real Estate 11.0% 4.45% Yield Driven 8.0% 4.70% Real Return 11.0% 3.25% Fixed Income 11.0% 1.55% Short Term Investments 4.0% 0.25% 100.0% 62 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Discount Rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the contractually required rate. The State, School and Local employers do not necessarily contribute the full actuarial determined rate. Based on legislation passed in 1993, the employer contribution rates certified by the System's Board of Trustees for these groups may not increase by more than the statutory cap. The expected KPERS employer statutory contribution was modeled for future years, assuming all actuarial assumptions are met in future years. Employers contribute the full actuarial determined rate for Police & Firemen, and Judges. Future employer contribution rates were also modeled for Police & Firemen and Judges, assuming all actuarial assumptions are met in future years. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.200%) or 1-percentage point higher (8.00%) than the current rate: 1% Decrease (6.00%) Local $ 20,946,725 Police & Firemen 37,150,150 Discount Rate (7.00%) $ 14,581,450 27,084 350 1 % Increase (8.00%) $ 9,278,252 18,709,024 $ 58,096,875 $ 41 ,665,800 $ 27,987,276 For the year ended December 31, 2022, the City recognized Local pension expense of $1,747,091 and Police and Firemen pension expense of $3,672,711 , which includes the changes in the collective net pension liability, projected earnings on pension plan investments, and the amortization of deferred outflows of resources and deferred inflows of resources for the current period. The Salina Housing Authority's and Salina Airport Authority's portion of the Local pension expense were $33,484 and $1 ,969, respectively. 63 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Deferred Outflows of Resources and Deferred Inflows of Resources. As of December 31, 2022, the City and its component units reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the following sources: Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Police and Firemen Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Deferred Outflows Deferred Inflows of Resources of Resources $ 551,531 $ 26,137 1,234,319 2,330,761 372,737 751,693 $ 4,489,348 $ 777,830 Deferred Outflows Deferred Inflows of Resources of Resources $ 1,149,350 $ 1,858,833 3,480,514 1,372,156 $ 6,488,697 $ 1,372,156 Housing Authori~ Deferred Outflows Deferred Inflows of Resources of Resources $ 12,548 $ 2,878 112,883 62,577 44,343 7,683 $ 119,468 $ 123,444 Air~rt Authori~ Deferred Outflows Deferred Inflows of Resources of Resources $ 35,631 $ 1,689 79,742.00 150,577 70 327 22,516 $ 336,277 $ 24,205 64 City of Salina, Kansas Notes to Financial Statements December 31, 2022 $2,441,561 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Local Deferred Year Ended (Inflows) Outflows December 31, Amount 2023 $ 960,082 2024 891,664 2025 423,408 2026 1,373,261 2027 63,103 $ 3,711,518 Police & Firemen Deferred (Inflows) Outflows Amount $ 1,481,479 1,292,913 517,834 1,778,217 46,098 $ 5,116,541 Total $ 2,441,561 $ 2,184,577 941,242 3,151,478 109,201 8,828,059 $40,163 and $84,492 reported as deferred outflows of resources related to pensions resulting from Salina Housing Authority and Salina Airport Authority contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, 2023 $ 2024 2025 2026 2027 $ Housing Authority Deferred (Inflows) Outflows Amount Airport Authority Deferred (Inflows) Outflows Amount 40,163 $ 2,858 2,586 (15,882) 4,135 Total 84,492 $ 124,655 74,688 77,546 48,970 51,556 98,745 82,863 5,177 9,312 33,860 $ 312,072 $ 345,932 ======== Deferred Compensation Plan The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. 65 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Flexible Benefit Plan (I.R.C. Section 125 The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. Note 12: Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters and other events for which the City carries commercial insurance. No significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not exceeded insurance coverage for each of the past three years. The City has established a limited risk management program for workers' compensation. The program covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $146,926 is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 2022 2021 Unpaid claims, January 1 $ 366,796 $ 446,495 Incurred claims (including IBNRs) 734,629 989,033 Claim payments c101,647l p,068,732) Unpaid claims, December 31 $ 399,778 $ 366,796 The City established a limited risk management program for employee health and dental insurance in 1997. The program covers eligible City employees. Premiums are paid into the health insurance fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. Therefore, all of the liability is considered to be due within one year. 66 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Changes in the balances of claims liabilities during the past two years are as follows: 2022 Unpaid claims, January 1 $ 417,000 $ Incurred claims (including IBNRs) 5,640,514 Claim payments (5,652,514) Unpaid claims, December 31 $ 405,000 $ Note 13: Other Postemployment Healthcare Benefits Plan Description (OPES) 2021 605,000 4,560,880 { 4, 748,8801 417,000 Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are provided through a single employer defined benefit postemployment healthcare plan administered by the City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. KSA 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. Funding Policy. The benefit payment requirements of plan participants and the City are established and amended by the City. The required payments are based on projected pay-as-you-go financing requirements. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. As of December 31, 2022, the following employees were covered by the benefit terms: Active employees Retirees and covered spouses Total 440 29 469 The total OPEB liability of $3,976,239 was measured as of December 31, 2022, and was determined by an actuarial valuation as of December 31, 2021. 67 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The total OPEB liability in the December 31, 2021, actuarial valuation was determined using the following assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified: Valuation date Actuarial cost method Inflation Salary increases Discount rate Healthcare cost trend rates Retiree's share of benefit related costs December 31, 2021 Entry age normal as a level percentage of payroll 2.75% 3.50% 2.06% Medical: 5.90% for 2021, decreasing 0.50% per year year to an ultimate rate of3.7% for 2074 Dental: 5.00% to 2022, then decreasing to an ultimate rate of3.70% in 2074 100% of the premium The discount rate was based on an index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Mortality rates were based on the RP 2014 Mortality Tables, with age set forwards as well as other adjustments based on different membership groups. Changes in the total OPEB liability are as follows: Balance, January 1, 2022 Service cost Interest Benefit paid Economic/demographic gains/losses Changes in assumptions Balance, December 31, 2022 $ $ 4,072,184 282,579 90,906 (134,193) (495,935) 160,698 3,976,239 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1.06%) or one percentage point higher (3.06%) than the current discount rate: Total OPEB Liability 1% Decrease (1.06%) $ 4,361,588 Discount rate (2.06%) $ 3,976,239 1% Increase (3.06%) $ 3,623,200 68 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rate: Healthcare Cost 1% Decrease Total OPEB Liability $ 3,409,594 Trend Rates $ 3,976,239 1% Increase $ 4,633,927 For the year ended December 31, 2022, the City reco·gnized OPEB expense of $336,083. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2022, the City reported deferred outflows related to other postemployment benefits from the following sources: Changes of assumptions Differences between expected and actual experience Total Deferred Outflows Deferred Inflows of Resources of Resources $ 443,642 $ (100,964) (606,779) $ 443,642 $ (707,743 ) Amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows: Year Ended June 30 2023 2024 2025 2026 2027 2028+ Total Deferred (Inflows) Outflows Amount $ (37,402) $ (37,402) (37,402) (40,210) (42,055) (69,630) (264,101) 69 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Other Postemployment Benefits (KPERS) Plan Description. The City participates in a multiple-employer defined benefit other postemployment benefit (OPES) plan (the Plan) which is administered by KPERS. The Plan provides long-term disability benefits and a life insurance benefit for disabled members to KPERS members, as provided by K.S.A. 74-04927. The Plan is administered through a trust held by KPERS that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPES, the trust does not meet the criteria in paragraph 4 of GASS Statement No. 75, Accounting and Financial Reporting for Postemp/oyment 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 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. As of June 30, 2022, the measurement date, the following employees were covered by the benefit terms: Active employees Disabled members Total 263 3 266 70 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Total OPES Liability. The City and its component units reported a total KPERS OPEB liability of $408,297 as of December 31, 2022, was measured as of June 30, 2022, and was determined by an actuarial valuation as of December 31, 2021, which was rolled forward to June 30, 2022, using the following actuarial assumptions: Valuation date Actuarial cost method Inflation Salary increases Discount rate (based on 20 year municipal bond rate with an average rating of AA/Aa or better obtained, through the Bond Buyer General Obligation 20-Bond Municipal Index) December 31, 2021 Entry age normal 2.75% 3.00% 3.54% The discount rate was based on the bond buyer general obligation 20-bond municipal index. Mortality rates were based on the RP 2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2021 . The actuarial assumptions used in the December 31, 2021, valuation were based on the results of an actuarial experience study for the period of January 1, 2017 through December 31, 2019. Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the December 31, 2021 , KPERS pension valuation. The changes in the total OPES liability are as follows: Balance, January I, 2022 Service cost Interest Effect of economic/demographic gains or losses Changes in assumptions Benefit payments Balance, December 31, 2022 $ $ City 505,029 55,188 11,870 (72,452) (86,805) (21,481) 391,349 Total KPERS OPEB Liability Housing Authority Airport Authority Total $ 7,868 $ 13,911 $ 526,808 1,835 3,837 60,860 215 382 12,467 (1 ,984) (6,203) (80,639) 11 (2,924) (89,718) (21 ,481) $ 7 945 $ 9 003 $ 408,297 Sensitivity of the total KPERS OPEB liability to changes in the discount rate. The following presented the total KPERS OPEB liability of the City, as well as what the City's total KPERS OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.54%) or 1-percentage-point higher (4.54%) than the current discount rate: Total OPEB Liability -City Total OPEB Liability -Housing Authority Total OPEB Liability -Airport Authority 1% Decrease (2.54%) $ 409,102 8,117 9,277 Discount Rate (3.54%) $ 391,349 7,945 9,003 1% Increase (4.54%) $ 373,779 7,718 8,692 71 City of Salina, Kansas Notes to Financial Statements December 31, 2022 For the year ended June 30, 2022, the City recognized OPEB expense of $38,875. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31 , 2022, the City reported deferred outflows and inflows related to other postemployment benefits from the following sources: Cit Housina Authorft~ Ai!'.Eort Author!!}: Deferred Deferred Deferred DeferTWd Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience $ 48,285 $ (242,805) $ (6,636) $ $ (14,767) Changes of assumptions 31304 184 895! 276 (139) 699 12 7321 Total 79,589 $ (327i'lOOj $ 276 $ (6,775) $ 699 $ (17,499) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in OPES expense as follows: Year Ended June 30, 2023 2024 2025 2026 2027 Thereafter Total $ $ City (28,183) $ (28,183) (28,183) (27,878) (29,424) (106,260) (248,111) $ Housing Airport Authority Authority (914) $ (2,251) (914) (2,251) (914) (2,251) (914) (2,243) (909) (2,101) (1,934} (5,703) {6,499) $ (16,800) 72 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 14: Tax Abatements In 2021, the City of Salina participated in real property tax abatements for five local companies. Property tax abatements are authorized under Kansas state statutes K.S.A. 12-1740 et seq. and K.S.A. 79-201a and subject to City policy. The City provides property tax abatements to encourage existing industry to expand, assist new business start-ups, recruit new companies from out-of-state or internationally, encourage high technology and research based businesses, encourage training and development of Salina area employees, and encourage location and retention of businesses which are good "corporate citizens" that will add to the quality of life in the community through leadership and support of civic and philanthropic organizations. Property tax abatements reduce ad valorem property taxes. The percentage of reduction ranges from 40.5% to 100%, but in all cases, the maximum duration is for ten years as per state statute. To receive an abatement, applicants must submit an application, which undergoes due diligence and analysis before being considered by the City Commission. If the abatement is authorized, the applicant must sign a performance agreement that specifies annual compliance measures. Each year, the applicant submits a renewal application, along with compliance information, which is reviewed by City staff for conformance with agreement provisions. If compliance is not met, appeals can be made to the City Commission to determine the amount of incentives, if any, to be received by the property owner. The City of Salina negotiates property tax abatements on an individual basis. Company Salina Vortex Corp (facility improvements) Great Plains Mfg. (facility improvements) Veris Technologies (facility addition/improvements) Twin Oaks (facility addition/improvements) Abatement Start End 2015 2024 2014 2023 2015 2024 2015 2024 2022 % Tax Abated 37.50% $ 3,023 50% 2,238 50% 495 50% 647 $ 6,403 Tax Increment Financing (TIF). TIFs are an economic development tool established by the Kansas TIF Act (K.S.A. 12-1770 et seq.) and subject to City policy to aid in financing projects for substantial public benefit. Public benefits can include creating jobs or retaining existing employment, eliminating blight, strengthening the employment and economic base of the City, increasing property values and tax revenues, reducing poverty, creating economic stability, upgrading older neighborhoods, facilitating economic self-sufficiency, promoting projects that are of community wide importance, or implementing the economic development goals of the City. The program works by reimbursing a portion of the incremental increase in property taxes resulting from improvements and a portion of local sales tax generated within the district to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. 73 City of Salina, Kansas Notes to Financial Statements December 31, 2022 To receive a TIF, applicants must submit a detailed, written proposal to the City, which will undergo due diligence and analysis before being considered by the City Commission. The City Commission then determines if it will commence the statutory process to create a redevelopment district. If the TIF district is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate TIF revenues (sales tax and/or property tax), City staff works with the distributing agency and property owner to generate and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and sales and/or property tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates TIFs on an individual basis. TIF Project Plans 2022 Reimbursements District _____ P_u_r_.,p_o_s_e _____ Base Year Expires Sales Tax Property Tax Downtown Promote, stimulate and develop the general and economic welfare of a major commercial entertainment and tourism area Total 2016 2036 _$,__,___-_ $ =$====-$ 215,115 215,115 Community Improvement Districts (CJD). CIDs are an economic development tool established by the Kansas CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the development of community improvements which can benefit a development and the public. In all CIDs, public improvements were financed initially by the developer and are reimbursed annually via a two percent (2%) transportation district sales tax on retail or taxable services occurring within the district. To establish a CID, the applicant first submits a CID petition which is signed by the owners of all of the land within the proposed district. The City Commission then considers the request to establish a CID. 74 City of Salina, Kansas Notes to Financial Statements December 31, 2022 If the CID is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate CID revenues, City Staff works with the distributing agency and property owner to make and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and CID sales tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates CIDs on an individual basis. Name Rate South 9th Street 2.00% Alley 1.00% Downtown 1.00% Downtown Hotel 1.00% North 9th Street 2.00% Community Improvement District (CID) Start Exeires Pureose Assist with improvements to hotel 3/1/2016 12/31/2037 and conference center Assist with building of family 10/1/2019 9/30/2041 entertainment facility in downtown Assist with Revitalization of 7/1/2019 6/30/2041 Downtown Corridor Assist with building of downtown 10/1/2019 9/30/2041 hotel Assist with improvements to hotel 7/1/2021 6/30/2043 and conference center 2022 Eligible Reimbursement Amount $ 293,657 18,684 167,356 96,599 37,531 $ 613,827 Neighborhood Revitalization Areas (NRA). NRAs are authorized under Kansas state statutes K.S.A. 12-117 and subject to City policy to spur investment and revitalization of properties which can benefit a neighborhood and the public. The program works by rebating a portion of the incremental increase in property taxes resulting from improvements back to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. Participation in the program and percentage of rebate and duration are determined separately by the City, County, and School District. The current City of Salina adopted plan is a 4- year plan running from 2015-2019. It allows for a 10-year rebate and provides rebates from 25% to 100% depending on year in plan and type of improvement. To receive an NRA, taxpayers must submit an application, which undergoes due diligence and analysis before being approved by the City. If the NRA is approved, each year, the applicant must submit proof that property taxes have been paid in full. Because the rebate is not given until after improvements are put in place and property taxes paid, there are no provisions for recapturing taxes. 75 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The City of Salina approves NRAs on an individual basis. Neighborhood Revitalization Act (NRA) Prol!!rttBusiness Name Address T~ee Heritage at Hawthorne Partners 715 N. 9th Street Com Sergio Guzman-Polanco & Rosa Sanchez 241 N. Front Street Res Overland Property Group 254 N. Santa Fe Ave Com Yvette Gelinas 1115 N. 8th Street Res Latisha Pierce 705 N. 2nd Street Res Tanya Shiehzadeh 703 N. 2nd Street Res Robert & Brenda Bums 1205 N. 4th Street Res Property Partners LLC 116 & 118 N. Santa Fe (2nd Floor Loft Apartments) Com Phil! Hemmer 2035 E. Iron Avenue, Unit #203R Res AP Property Holdings, LLC 20 I E. Iron A venue Com Gregory Davis 156-158 N. 11th Street Res Micheal Money 2035 E. Iron Avenue, Unit #206R Res Micheal Money 2036 E. Iron Avenue, Unit #205R Res Mark Martin Living Trust 2035 E. Iron #I04R Res Traniesh Byrd 70 I N. 2nd Street Res Jana Endsley 1321 N. 3rd Street Res Kanesha Samilton 214 W. Grand Avenue Res Maria E Padilla 810 N. 5th Street Res JK Webb Properties LLC 120 S. Santa Fe Avenue Com Alan and Nancy Franzen 1413 Arapahoe Res Brandon Sears 900 N. 12th Street Res Santa Fe Properties, LLC 131 N. Santa Fe Avenue/128 S. Santa Fe Avenue Com Ceecee Investments LLC 200 S. Santa Fe Avenue Com Rusty A Leister Living Trust 600 N. Santa Fe Avenue Com Christopher Helm 608 N. 11th Street Res Christopher Helm 752 N. Broadway Com Laurie Dorunyer 255 N. Columbia Res Eva Wright 1200 N. 8th Res Foley Equipment Co. 2225 N. Ohio St Com Mark Ritter 2035 E. Iron #IOSR Res Angelica Farris 846 Choctaw Ave Res Christopher Vogel 2035 E. Iron #209R Res Christopher Helm 619N. 5th Street Com HPSA,LLC. 501 Bhakta Court Com Jordan Bresse] 2035 E. Iron #106R Res MaryC. Roth 2035 E. Iron #208R Res John & Kristen Gunn 2035 E Iron #106R Res TJTM,lnc. 2035 E Iron #005R Res TJTM,Inc. 2035 E Iron #004R Res TJTM,Inc. 2035 E Iron #003R Res TJTM,Inc. 2035 E Iron #002R Res TJTM,Inc. 2035 E Iron #00IR Res TJTM,Inc. 2035 E Iron #30 !BR Res TJTM,lnc. 2035 E Iron #301AR Res TJTM,Inc. 2035 E Iron #006R Res Greg Huston &Terry Swearingen 1025 W Crawford Com Kevin & Rebecca Poland 601 Johnstown Res TJTM,Inc. 2035 E Iron #202R Res TJTM,Inc. 2035 E Iron #302R Res TJTM,Inc. 2035 E Iron #105R Res Timothy Rickman 719 E Ash Res Troy Vancil 853 Navaho Res TJTM,Inc. 2035 E Iron #213C Res Donnie Marrs 2035 E Iron #300R Res GWM Rentals LLC 809W Ash Res Lamont Outland 20 I E. Iron Avenue Res Michelle Bunch 156-158 N. !Ith Street Res Jermaine and Tykea Polk 701 N. 2nd Street Res Mary Marshall 2035 E. Iron #105R Res Angela Fishburn 1219 N. 8th Street Res Salina Office Station 356 N. Santa Fe Com 2022 Rebate Paid $ 2,181 114 3,966 113 114 118 134 818 923 4,992 287 641 138 541 114 194 279 277 2,110 187 42 4,527 662 2,190 81 2,815 379 265 15,931 1,724 285 903 776 5,871 245 1,302 1,365 268 132 396 353 158 304 175 394 1,954 76 229 183 272 163 66 79 969 145 121 129 152 106 108 1,094 s 65,634 76 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 15: Prior Period Adjustment During 2022, construction in progress for Business-type Activities was found to be understated. The 2022 beginning net position for the Water and Sewer fund was increased by $17,275,573 for this error. Change in net position for the Business-type Activities and the Water and Sewer funds for the year ended December 31, 2021, was not impacted. 77 Required Supplementary Information City of Salina, Kansas Other Postemployment Benefits Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years" Measurement Year 2022 2021 2020 2019 Total OPEB Liability Service cost $ 282,579 $ 244,531 $ 231,391 $ 249,957 Interest ( on the total OPEB liability) 90,906 104,082 150,552 125,877 Benefit paid (134,193) (122,821) (159,018) (157,465) Economic/demographic gainsnosses (495,935) (255,426) Changes in assumptions 160 698 231,338 128 228 i186,344J Net Change in Total OPEB Liability (95,945) 457,130 95,727 32,025 Total OPEB Liability -Beginning 4,072,184 3 615 054 3,519,327 3,487,302 Total OPEB Liability -Ending $ 3,976,239 $ 4 072,184 $ 3,615,054 $ 3,519,327 Covered Employee Payroll $ 25,166,069 $ 25,163,639 $ 25,163,639 $ 25,232,129 Total OPEB liability as a percentage of covered-employee payroll 15.80% 16.18% 14.37% 13.95% Actuarially determined contribution $ 134193 $ 122,821 $ 159,018 $ 157,465 Actual contribution $ 134,193 $ 122 821 $ 159,018 $ 157 465 Contributions as a percentage of covered payroll 0.53% 0.49% 0.63% 0.62% *Data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is unavailable. 2018 $ 226,762 128,578 (265,000) 90918 181,258 3 306 044 $ 3,487,302 $ 24,740,225 14.10% $ 265,000 $ 265,000 1.07% 78 City of Salina, Kansas Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Measurement Year 2022 2021 2020 2019 2018 Total OPEB Liability Service cost $ 55,188 $ 64,709 $ 57,185 $ 52,863 $ 52,380 Interest (on the total OPEB liability) 11,870 14,404 19,037 22,667 17,061 Benefit paid (21,481) (151,608) 17,086 (95,243) 75,173 Economic/demographic gains/losses (72,452) 984 37,368 7,614 (6,574) Changes in assumptions (86,805) !20,904) (39,627) (28,432) (30,368) Net Change in Total OPEB Liability (113,680) (92,415) 91,049 (40,531) 107,672 Total OPEB Liability -Beginning 505,029 597 444 506 395 546,926 439,254 Total OPEB Liability -Ending $ 391,349 $ 505,029 $ 597,444 $ 506,395 $ 546,926 Covered Employee Payroll $ 13,877,624 $ 12,482,683 $ 14,338,983 $ 13,991,543 $ 13,652,194 Total OPEB liability as a percentage of covered-employee payroll 2.82% 4.05% 4.17% 3.62% 4.01% Actuarially determined contribution $ 134,612 $ 135,087 $ 144,746 $ 135,087 $ l09,466 Actual contribution $ 134,612 $ 135,087 $ 144,746 $ 135,087 $ 109,466 Contribntions as a percentage of covered payroll 0.97% 1.08% 1.01% 0.97% 0.80% *Data became available with the inception of GASB 75 during fiscal year 2018, therefore 1 O years of data Is unavailable. 79 City of Salina, Kansas KPERS Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* Measurement Year 2015 2016 2017 2018 2019 2020 2021 2022 City's proportion of the net pension liability Local 0.764% 0.761% 0.81 1% 0.079% 0.796% 0.766% 0.701% 0.733% Police & Fire 2.258% 2.180% 2.191% 2.081% 2.074% 2.038% 1.982% 1.878% City's proportionate share of the net pension liability Local $ 10,027,679 11,770,679 11,753,246 $ 11,014,328 $ 11,123,112 $ 13,290,226 $ 8,409,377 $ 14,581,450 Police & Fire $ 16,395,794 20,251,512 20,546,882 $ 20,019,473 $ 20,993,820 $ 25,135,770 $ 18,910,472 $ 27,084,350 City's covered-employee payroll Local s 12,931,197 $ 13,251,236 $ 13,548,056 $ 13,944,989 $ 14,366,294 $ 14,948,415 $ 13,436,992 $ 14,200,661 Police & Fire s 10,161,866 $ 10,730,033 $ 10,593,419 $ 10,441,055 $ 10,859,219 s 11,285,465 $ 10,970,505 $ I 1,241,597 City1s proportionate share of the net pension liability as a percentage of its covered-employee payroll Local 77.55% 88.83% 86.75% 78.98% 77.43% 88.91% 62.58% 102.68% Police & Fire 161.35% 188.74% 193.96% 191.74% 193.33% 222.73% 172.38% 240.93% Plan fiduciary net position as a percentage of the total pension liability Local 71.98% 68.55% 72.15% 74.22% 75.02% 70.77% 81.14% 70.66% Police & Fire 74.60% 69.30% 70.99% 71.53% 71.22% 66.81% 76.09% 66.12% *The amounts presented for each fiscal year were determined as of December 31 . Data became available with the inception of GASB 68 during fiscal year 2015, therefore 1 O years of data is unavailable. 80 Contractually required contribution Locai Po1ice& Fire Contributions in relation to the contractually required contribution Local Police & Fire Contribution deficiency (excess) City1s covered-employee payroll Local Police&Fire Contributions as a percentage of covered employee payroll Local Police & Fire City of Salina, Kansas KPERS Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* 2015 2016 2017 2018 2019 2020 $ 1,256,217 $ 1,243,711 $ 1,179,745 $ 1,205,334 $ 1,328,915 $ 1,156,925 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 1,256,217 1,243,711 1,179,745 1,205,334 1,328,915 1,156,925 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 $ 13,251,236 $ 13,548,056 $ 13,944,989 $ 14,366,294 $ 14,948,415 13,436,992 $ 10,730,033 $ 10,593,419 $ 10,441,055 $ 10,859,219 $ 11,285,465 10,970,505 9.48% 9.18% 8.46% 8.39% 8.89% 8.61% 23.56% 22.29% 19.03% 20.09% 22.13% 21.93% $ *Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is unavailable. 2021 2022 1,259,601 $ 1,309,782 2,563,084 2,553,522 1,259,601 1,309,782 2,563,084 2,553,522 14,200,661 $ 14,716,651 I l,241,S97 11,107,098 8,87% 8.90% 22.80% 22.99% 81 Combining Schedules and Individual Fund Statements Assets Cash and investments Receivables Accounts Total assets Liabilities and Fund Balances Accounts payable Accrued expenditures Unearned revenue Due to other funds Total liabilities Fund Balances Restricted Committed Assigned Unassigned Total fund balances Total liabilities and fund balances City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Total Total Nonmajor Nonmajor Speclal Revenue Permanent Funds Funds $ 15,889,341 $ 548,172 3,069,338 18,958,679 548,172 919,900 14,559 20,000 954,459 3,937,773 11,900,011 548,172 2,166,424 12 18,004,220 548,172 $ 18,958,679 $ 548,172 Nonmajor Total Debt Nonmajor Service Governmental Fund Funds $ $ 16,437,513 3,069,338 19,506,851 919,900 14,559 20,000 954,459 3,937,773 12,448,183 2,166,424 12 18,552,392 $ $ 19,506,851 82 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Total Total Nonmajor Total Nonmajor Nonmajor Debt Nonmajor Special Revenue Permanent Service Governmental Funds Funds Fund Funds Revenues Taxes $ 4,543,388 $ $ $ 4,543,388 Intergovernmental 2,740,030 2,740,030 Charges for services 954,184 12,602 966,786 Licenses and permits 14,600 14,600 Investment revenue 42,378 1,982 44,360 Donations 104,558 104,558 Miscellaneous 697,126 697.126 Total revenues 9,096,264 14,584 9,110,848 Expenditures Current Culture and recreation 2,273,867 2,273,867 Public safety 697,328 697,328 Public health and sanitation 313,223 313,223 Planning and development 2,047,963 2,047,963 Miscellaneous 10,000 25,388 800 36,188 Debt Service Interest and other charges 200,129 200,129 Capital Outlay 6,084 394 6,084.394 Total expenditures 11,626,904 25,388 800 ll,653,092 Deficiency of revenues under expenditures (2,530,640) (10,804) (800) (2,542,244) Other Financing Sources (Uses) Transfers in 10,000,711 10,000,711 Transfers out [902.791) (902,791 ) Total other financing sources (uses) 9,097,920 9,097,920 Net Change in Fund Balances 6,567,280 (10,804) (800) 6,555,676 Fund Balances, Beginning 11.436,940 558,976 800 11.996.716 Fund Balances, Ending $ 18,004,220 $ 548,172 $ $ 18,552,392 83 Touri!m ... Special eon_..., Gos ....... Cub. ud caslt c,quivalcali 316,830 s 2,901,317 s Rocclvables AOCOLWIII 723.614 369446 Tot.1luscts 1,040,444 3,270,831 UablllUet and fl.Ind balances Li1bllllie1: Ateountlpayablc >,JU.. Aoc:ruodoxpmditln!I Unelmld revenue DuetoolhQ'"funds Total liabilities 204,1146 f1,1ndbalJJ1ecs: Refflctt:d 1,040,444 2,246,841 Q:mmil1cd ~slgi,cd 819,1-16 Unutianod Tou.lfL'rldb&lanccs 1,040,444 3.06~.917 Total liabititiu ad fund b&lallUIS 1,040,4'-4 s 3,270,833 s City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Business ...... B1c-....1 lmpntftffllnt Ntla-Paru& Cem< """'" .... -447,0711 s 6,6S1 s 47,l\1I s 4&4,334 447,078 6,651 47,121 4&4,.334 nu,:,~ """ l,.ltO 210,472 2,960 1,380 J,691 ◄32.161 203,087 46,44] 33,'19 52,173 236,006 3,691 46,441 4&4,:334 '47,011 s ~651 s 47,1'.21 s .....,,. Comm.lnlly SalesTu Downtown ---Economic TIF South Akoool --~ Dlstrtctl1 91hCID s "' s 116,307 s 197,144 1.705,824 ' 27,933 23' ]86,307 897,844 1,705,824 27,933 234 186,307 897,844 1,705,824 27,933 234 , .. .,., 197,144 1,70:i,824 27,933 s '" s 186,307 s 197,144 s 1,705,124 s :Z,,93) 84 Downtown CID Assets Cash and cash equiv■lcnls 410,426 Receivables Accounts Totalasseh 470.426 Liabilities and fund balances Liabilities: Acoounbpayab!e 19,393 Accrucdcxpcndit~s Uncamcdrevenuc Due to other funds Total liabilities 19 .. 193 Fund balances: Rc~ricled Committed 451,033 A5.5igncd Unas,isncd Totalfundbalmces 451,033 Total liabilities and fund balances 470426 City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December 31, 2022 Alley Downtown North 9th STAR Bonds State CID Hotel CID CID Sube;rolccts Grants ' 1,405 s 7,933 ' 3,383 s 2.000.000 ' 2-48,460 !~OS 7,933 3)83 2.000,000 248,-460 l . .l(li l.t,111 1.405 7,931 3)83 2,000,000 248,460 3J83 2,000,000 248,460 s 1.405 s 7,933 s 3J83 s 2.000.000 $ 248.460 Kenwood Special 911 Co,e Law Police Communications Capital Enforcement Grants ' 626,865 ' 70,.()53 s 82 ' 3.479 626,865 70.053 82 3,479 S«I ITT 6,551 137 571,299 68.631 82 3,479 49,015 1,285 620,314 69,916 82 3,479 s 626.865 ' 70.053 s 82 $ 3.479 85 ...... C.sh and tuh cq11iYalcats Rccci¥1blc1 Tora\asgcts Llablllll• and fund balances Liabilities: A,,;eountspayab]e Ac:auedcxi,cnditurcl Unoamcdrcvcnuc, ::>uetoothc:rfunds Total li1bili1ic1 Fundbalanc.cs: Rcsttiaod Ccmmitted AISilJlod Unauigncd Totalfundbe.lm:iots Towlliebilltiesandfundbllsnces 8fH ...... J8S,087 • 197Sffl 2,l60,86S 13,823 20,000 33,823 2,127,042 2,127,042 l.160.865 s City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December 31, 2022 -War Fed1r1I 0.,,,- llA.R.E ......... ... .. CAA£ , ...... Homtowner1' Donations -......,.,,. G,am Foff1Uure Funds Aul- 211,◄&S s 30,944 s 107,400 s 216,1-41 s 99 s 21.910 ,00 29,98.5 30,944 107,400 215,141 99 21,910 4,269 14,SS9 18,828 26,141 29,985 .l<l,944 88,.572 99 21.910 ,. ... , 30,944 8&,.572 26,141 99 21,910 ,..., ' ,0.944 s 107400 s 26,141 s 99 ' 21910 -...1 Special eo.n ··--AsSHllmentl---Grant& -· Esc,vw ......._ I 1,954 s 601,l:ZO ' 116,6&2 "'"" 1,9,4 601,320 116,682 26,140 .,. .,. 1,954 600,862 IHi,682 "'"" 1,9'4 600,862 116,612 26.l40 s 19'4 s 601.320 ' ll6.612 ' "·""' 86 Assets Cuhandc-.hcqui11dent, ~~vablcs Liabilities and l'\md ~--=es UabiJilics: A.ccourrllPf-)'tbk AccruedcX'penditlftl Une1UT1edn:vu11.1, Duetootherfund,i Total liabilities Fundbalanc-ca: Rutrielcd Corrmlnod .... .,,., Ullllfflg,vd TOU.1(..-.dbalmces Tola.I liabilitirs and fu.-1 ba.lamn Police lnvestigallon Account ],385 3,385 J,385 ,.,., J,385 City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December 31, 2022 Beechcraft ... , DTF DTF Remediation Bond P•rlc• CtttzenshiE Local RHerw SeHlement Escrow Malntenanc■ 70,160 s 29,6~ ,],40] 12 l,135 1,361,266 70,160 29,69'2 ,1,401 12 l,13S 1,361,266 .... 1J,26S 4,209 IJ,l65 70,160 25,40 SJ,401 l,U5 917,638 4)7,36) 12 ,.,, .. 25,4113 53,401 12 l,135 1,355,001 70.160 ' ,,.,, Sl.401 12 1.135 ' l,368,266 Building and FIHI Simi F■cniliH Managemenl Malnl■n■nc11 Mainlenance Tolilll; ' 73S,084 ' l,lt!S,814 ' 737,101 J,,889,341 3069~38 ns.,.os4 1.211.,814 1]7,201 Ul,9511,679 07Ull 49,479 919,900 14,,,9 20000 379,322 49,479 954,459 J,937,71) 735,0114 236,001 '87,l!ilO 11,900,011 67),01 100,02 2.166,424 12 735,0114 909,4!,1'2 617,71l 18,.004,220 ' 735.084 s l28U:J4 ' 737,201 1&.~11.679 87 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Tourism Buslnn11 Speclel Community Sales Tax Downtown and Specl>I Blcen~nlal lmprowmtr1t Neighborhood Parks& SpecL.al O.Velopment Economic TIF """"' Conwn11on G., cente, Olstrkt .... ..._ ... Al<Oh'" Revotvln!I Olwl~t Dlstrk::lfM 11thCID Revenues Taxes $ 2,453,194 $ 423,490 850,345 285,121 Ittergo,-crnmentaJ 1,444,399 259,238 259,238 Charges for services 86,833 Licenses and pennilS 14,600 Investment revenue 3,903 70 Donations Miscellaneous 93,830 38,979 14 530 Tot.al revenues 2,453,194 1,538,229 38,979 86,833 14,600 259,238 259,238 423,490 854,248 299,721 Expenditures Cum:nL Culrure and recreation l,316,l97 Public safe!}' 440,495 Public health am sanitation 259,238 Planning and development 1,113,444 83,720 245,058 273,506 Miscellaneous Capital Outlay 553,684 12,280 257,847 373,001 Interest and olher clwgcs TOW expenditures 1,113,444 994,179 1,316,597 83,720 12,280 257,847 259,238 373,001 245,058 273,506 Excess (deficiency) of revenue!. over (under) expenditures 1,339,750 544,050 (l,277,6181 3113 2,320 1,391 50,489 609,190 26,215 Other Financing Sources (Uses) Transfers in 160,000 861,861 750,000 Tmnsfen:out (902,791) Total other financing sources (uses) (902,791) 160,000 861,861 750,000 Net Change in Fund Balances 436,959 704,050 (415,757) 3,113 2,320 1,391 800,489 609,190 26,215 Fund BaJances, Beginning 60H85 2,361,937 652,363 S18 44,121 482,943 234 186,307 97,35:5 1,096,634 1718 Fund BalanceJ1 Ending 1,040,444 3,065,987 236,606 3,691 46,441 484,334 234 186,307 897,844 1,70:5,824 27,933 BB City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Kenwood Speoi■I Downtown All■y Downtown Narlhlth STAR Bonds ..... 111 Covo Low Polioa CID CID Hot.lCID CID SubproJMts Q,ants Conwnunioations Capital inforoement Oranll Revenues Taxes 387,042 18,321 87,578 38,297 Intergovemmcnlel 380,577 396,578 Charges for services Licenses and permits lnveslment revenue 937 19 1,417 Donations MiscellaneOI.L'I 73,168 Total revenues 387,979 18,324 87,597 38,297 73,168 380,577 397,995 Expenditures Current Culture and rcaealion Public saf eiy 232,864 Public health and sanileticm Planning and development 117,320 18,327 148,247 34,914 Miscellaneous Capital Outlay 73,168 350,000 56,402 Interest and other chllI"ges Total expenditures 117,320 18,327 148,247 34,914 73,168 350,000 232,864 56,402 Excess (deficiency) of revenues over (under) e.xpenditures 270,659 Cl) !60,650! ),383 30,S77 165,131 C56,402l other Financing Sources (Usesl Transfers in t,0$(1 Transfmout Total other financing sources (uses) 68,350 Net Change in Fund BalllD«S 270,659 (3) (60,650) 3,383 30,577 165,131 11,948 Fund Balancu, Bepnning 180,374 60,652 2,000,000 217,883 455 183 57.968 82 3,479 Fund Balances, Eoding 451,033 s 3,383 2,000,000 248,460 620,314 69,916 82 3,479 89 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Police Ww Feder.al -....... , Special "°"" SFH DAR£ Memorial M•& CAN! ....... , Komeownen· ....... ...... Aueumonls ....... QaUcB DonoUons ~ten.nee """'"""'" Gnot Forteilu~ Funds Assistance Orants Donations Escrow Restitution Revenues To= $ lntcrgovemmental Charges for services 492,917 374,434 Licenses and permits Investment revenue 795 71 Donations 104,558 Miscell1111eous 1,525 l,315 Total revenues 493,712 1,525 71 374,434 1,315 104,558 ExpenditUNS Cwrcnt Culture Mld recreation 957,270 Pub!icsafcty Public heahh and sanitation 53,985 Planning and d~opment 3,427 10,000 Miseellaneow 10,000 Capital Outlay Interest and other charges 200 129 Total expenditures 210,129 3,427 957,270 10,000 53,985 Excess; (deficiency) ofrevenues over (under) ~ditures 283,583 (1,902) 71 (582,836) 1315 (10,000) 50,573 other Financing Souroes (Uses) Transfers in 520,000 Transfers out Total other financing sources (uses) 520,000 Nd Chmge in Fund Balance!'J 283,583 (1,902) 71 (62,836) 1,315 (10,000) 50,573 Fund Balanca, Beginning I 843,459 31,887 30,873 151,408 26,141 99 20,595 ll,954 550,289 116,682 26.840 Fund Ba1anttt1 Enllling 2,127,042 29,985 30,944 88,572 26,141 s 99 21,910 1954 600,862 116,682 s 26,840 90 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Tel111 Police S.aehcr■ft Bail Building and Nornaajor Investigation DTf DTF Remediation Bond Parks Fleet Street Facilitle5 Gowmmenllll Account Citizenship Local ........ Settlement Escrow Maintenance Man~ement Maintenance Maintenance Funds Revenues Taxes 4,543,388 Intergovernmental 2,740,030 Charges for scr\"ices 954,184 Licen.w:s and permits 14,600 Investment revenue 35,085 78 42,378 Donations 104,558 Miscellancol.l! 22,296 5,678 2,415 443,390 697 126 Total revenues 35,085 22,296 5,678 78 2,415 443,390 9,096,264 Expenditures Cunent Culture and recreation 2,273,867 Public ufety 23,969 697,328 Public beahh and wtltation 313,223 Planrrine, and development 2,047,963 Misccllaneow 10,000 Capital Outlay 9,006 664,999 267,331 3,283,898 182,778 6,084,394 Interest and other charges 200,129 Total expenditures 9,()06 23,969 664,999 267,331 3,283,898 182,778 ll,626,904 Excess (deficiencr) or revenues over (under) expcoditmes 26,079 (1,673) 5,678 78 !"64,999) (264,916) (2,840~08! (182,778) (2,530,640) Other Financing Sources (Uses) Transfers in 2.020,000 1,000,000 3,750,000 870,500 10,000,711 Transfers out (902,79)) Total other financing sources (uses) 2.020,000 1,000,000 3,750,000 870,500 9,097,920 Net Change-ht Fund Balantt1 26,079 (1,673) 5,678 78 1,355,001 735,084 909,492 687,722 6,567,280 Fund Balan«,, Beginning 3,385 44081 27,1.56 47,723 (66) 1,135 11 06,940 Fand Balances, Ending 3~85 s 70,160 25,483 53,401 12 1,135 1,355.00) 735,084 909,492 687,722 $ 18,004,220 91 Assets Cash and investments Total assets Liabilities and fund balances Liabilities: Accounts payable Total liabilities Fund balances: Committed City of Salina, Kansas Combining Balance Sheet Nonmajor Permanent Funds December 31, 2022 Cemetery Mausoleum Endowment Endowment $ 546,085 $ 2,085 546,085 2,085 546,085 2,085 Total liabilities and fund balances $ 546,085 $ 2,085 Tricentennial Commission Total $ 2 $ 548,172 2 548,172 2 548,172 $ 2 $ 548,172 92 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Permanent Funds For the Year Ended December 31, 2022 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total Revenues Charges for services $ 12,602 $ $ $ 12,602 Investment revenue 1,962 12 8 1,982 Total revenues 14,564 12 8 14,584 Expenditures Miscellaneous 19,459 5,929 25,388 Total expenditures 19,459 5,929 25,388 Net change in fund balances (4,895) 12 (5,921) (10,804) Fund balances -beginning of year 550,980 2,073 5,923 558,976 Fund balances -end of year $ 546,085 $ 2,085 $ 2 $ 548,172 93 City of Salina, Kansas Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one agency to other departments or agencies of the government and to other governmental units on a cost reimbursement basis. Workers' compensation reserve fund -To account for the costs of providing a partially self-insured workers' compensation plan and for accumulating the necessary reserve amounts. Health insurance fund -To account for the costs of providing a partially self-insured health insurance and for accumulating the necessary reserve amounts. Central garage fund -To account for the accumulation and allocation for costs associated with the City's centralized vehicle repair shop. 94 City of Salina, Kansas Combining Statement of Net Position Internal Service Funds December 31, 2022 Workers' Compensation Health Reserve Insurance Current assets: Cash and investments $ 1,077,472 $ 3,855,846 Inventory and prepaid supplies Total current assets 1,077472 3,855,846 Capital assets Less: accumulated depreciation Total capital assets Total assets 1,077,472 3 855,846 Deferred outflows of resources: KPERS OPEB deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources Total assets and deferred outflows of resources 1,077,472 3,855,846 Current liabilities: Accounts payable 124 Accrued expenses 23,801 Current portion of compensated absences payable Current portion of accrued claims payable 16,944 405,000 Total current liabilities 17,068 428,801 Noncurrent liabilities: Compensated absences payable Accrued claims payable Net KPERS OPEB obligation Net pension liability Total noncurrent liabilities Total liabilities 17.068 428,801 Deferred inflows of resources KPERS OPEB deferred inflows ofresources Pension deferred inflows ofresources Total deferred inflows of resources Total liabilities and deferred inflows of resources 17,068 428,801 Net Position Net investment in capital assets, net ofrelated debt Umestricted 1,060,404 3,427,045 Total net position $ 1,060,404 $ 3,427,045 Central Garage and Maintenance Total $ 339,078 $ 5,272,396 110,905 110,905 449 983 5 383 301 168,234 168,234 154,325 154,325 13,909 13,909 463,892 5,397,210 729 729 50 723 50,723 51,452 51 452 515,344 5,448,662 60,364 60,488 8,659 32,460 7,407 7,407 421,944 76,430 522,299 9,206 9,206 6,574 6,574 161,523 161 523 177,303 177,303 253,733 699,602 5,505 5,505 14,518 14,518 20 023 20,023 273,756 719,625 13,909 13,909 227 679 4 715,128 $ 241,588 $ 4,729,037 95 City of Salina, Kansas Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2022 Workers' Central Compensation Health Garage and Reserve Insurance Maintenance Total Operating Revenues Charges for services $ 250,000 $ 6,220,586 $ 1,552,263 $ 8,022,849 Miscellaneous 1,203 23,899 1,121 26,223 Total operating revenues 251,203 6,244,485 1,553,384 8,049,072 Operating Expenses General government (104,788) 6,254,166 1,759,268 7,908,646 Depreciation Total operating expenses (104,788) 6,254,166 1,759,268 7,908,646 Income (loss) before transfers 355,991 (9,681) (205,884) 140,426 Transfers in 80,000 80,000 Change in net position 355,991 (9,681) (125,884) 220,426 Net Position, Beginning 704,413 3,436,726 367,472 4,508,611 Net Position, Ending $ 1,060,404 $ 3,427,045 $ 241,588 $ 4,729,037 96 City of Salina, Kansas Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2022 Workers' Compensation Health Reserve Insurance Operating Activities Cash received from customers and users $ 250,000 $ 6,220,586 Cash paid to suppliers of goods and services (244,941) (6,266,166) Cash paid to employees 23,801 Other operating receipts 1203 23,899 Net cash provided by (used in) operating activities 6 262 2,120 Noncapital Financing Activities Transfers in Net cash provided by noncapital financing activities Net increase (decrease) in cash and cash equivalents 6,262 2,120 Cash and Cash Equivalents, Beginning of Year 1,071210 3,853 726 Cash and Cash Equivalents, End of Year $ I 077,472 $ 3,855,846 Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities Operating income (loss) $ 355,991 $ (9,681) Adjustment to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation expense (Increase) decrease in prepruds (Increase) decrease in deferred outflows Increase (decrease) in accounts payable 124 Increase (decrease) in accrued and cl rums payable (180,863) 11,801 Increase (decrease) in accrued compensated absences (168,990) Increase (decrease) in net pension liability Increase (decrease) in KPERS OPEB liability Increase (decrease) in clrums payable Increase (decrease) in deferred inflows Total adjustments (349,729) II 801 Net cash provided by (used in) operating activities $ 6,262 $ 2,120 Central Gara11e Total $ 1,552,263 $ 8,022,849 (1,762,048) (8,273,155) (9,305) 14,496 1121 26 223 (217,969) (209,587) 80000 80,000 80,000 80 000 (137,969) (129,587) 477 047 5 401.983 $ 339,078 $ 5,272,396 $ (205,884) $ 140,426 25,470 25,470 (13,376) (13,376) (19,591) (19,467) (169,062) (7,449) (176,439) 55,614 55,614 (1,910) (1,910) \50,8431 (50,843) /12085) 1350.013) $ (217,969) $ (209,587) 97 City of Salina, Kansas Budget Comparison Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (Non -GAAP Basis) Tourism and Convention Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Other taxes $ 1,754,000 $ 2,333,000 $ 2,453,194 $ 120,194 Total revenues 1,754,000 2,333,000 2,453,194 120,194 Expenditures Current Planning and development 841,920 1,119,840 1,113,444 6,396 Total expenditures 841 920 1,119,840 1,113,444 6,396 Excess (deficiency) of revenues over (under) expenditures 912 080 1,213,160 1,339,750 126,590 Other Financing Sources (Uses) Transfers (out) (912,080) (1,213,160) (902,791} 310,369 Total other financing sources (uses) (912,080) (1,213,160) (902,791) 310,369 Net Change in Fund Balance 436,959 436,959 Fund Balance, Beginning 853 853 603,485 602,632 Fund Balance, Ending $ 853 $ 853 $ 1,040,444 $ 1,039,591 98 City of Salina, Kansas Budget Comparison Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) Special Gas Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Intergovernmental $ 1,323,000 $ 1,323,000 $ 1,444,399 $ 121,399 Miscellaneous 433,000 433,000 93,830 (339,170) Total revenues 1,756,000 1,756000 1 538,229 (217,771 ) Expenditures Current Public works 486,950 486,950 440,495 46,455 Capital outlay 2,386J43 2,386,243 553,684 I 832 559 Total expenditures 2,873,193 2,873,193 994179 1,879,014 Excess (deficiency) ofrevenues over (under) expenditures p ,117,193) (1,117,193) 544,050 1,661,243 Other Financing Sources (Uses) Transfers in 160 000 160 000 160,000 Total other financing sources (uses) 160 000 160,000 160,000 Net Change in Fond Balance (957,193) (957,193) 704,050 1,661,243 Fund Balance, Beginning 2,361,937 2,361 937 2,361,937 Fund Balance, Ending $ 1,404,744 $ 1,404,744 $ 3,065,987 $ 1,661 ,243 99 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Bicentennial Center Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Ne~tlve) Revenues Miscellaneous $ $ 38,000 $ 38,979 $ 979 Total revenues 38,000 38,979 979 Expenditures Current Culture and recreation 925,000 1,350,000 1,316,597 33,403 Total expenditures 925,000 1,350,000 1,316,597 33,403 Excess (deficiency) of revenues over (under) expenditures (925,000) (1,312,000) (1,277,618) 34,382 Other Financing Sources (Uses) Transfers in 710,400 862,000 861,861 (139) Total other financing sources (uses) 710,400 862,000 861,861 (139) Net Change in Fund Balance (214,600) (450,000) (415,757) 34,243 Fund Balance, Beginning 396,628 643,173 652,363 9,190 Fund Balance, Ending $ 182,028 $ 193,173 $ 236,606 $ 43,433 100 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Business Improvement District Fund For the Year Ended December 31, 2022 Variance with Budseted Amounts Actual Final Budget Orlglnal Final Amounts Positive !Nesattve) Revenues Charges for services $ 90,000 $ 90,000 $ 86,833 $ (3,167) Total revenues 90,000 90,000 86,833 (3,167) Expenditures Current Planning and development 90,000 90,000 83,720 6,280 Total expenditures 90,000 90,000 83,720 6,280 Excess (deficiency) ofrevenues over (under) expenditures 3,113 3,113 Net Change in Fund Balance 3,113 3,113 Fund Balance, Beginning 578 578 578 Fund Balance, Ending $ 578 $ 578 $ 3,691 $ 3,113 101 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Neighborhood Park Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Licenses and permits $ 5,000 $ 15,000 $ 14,600 $ (400) Total revenues 5,000 15,000 14,600 (400) Expenditures Capital Outlay 10,000 15,000 12,280 2,720 Total expenditures 10,000 15,000 12,280 2,720 Excess (deficiency) ofrevenues over (under) expenditures (5,000) 2,320 2,320 Net Change in Fund Balance (5,000) 2,320 2,320 Fund Balance, Beginning 28,321 44,120 44,121 Fund Balance, Ending $ 23,321 $ 44,120 $ 46,441 $ 2,321 102 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Special Parks and Recreation Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative! Revenues Intergovernmental $ 174,000 $ 174,000 $ 259,238 $ 85,238 Total revenues 174,000 174,000 259,238 85,238 Expenditures Capital Outlay 174,000 174,000 81 ,750 92,250 Total expenditures 174,000 174,000 81 ,750 92,250 Excess (deficiency) of revenues over (under) expenditures 177,488 177,488 Net Change in Fund Balance 177,488 177,488 Fund Balance, Beginning 482,943 482,943 482,943 Fund Balance, Ending $ 482,943 $ 482,943 $ 660,431 $ 177,488 Reconcilation to GAAP Current year encumbrances (176,097) GAAP Net Change in Fund Balance $ 1,391 103 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Special Alcohol Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Intergovernmental $ 174,000 $ 275,000 $ 259,238 $ (15,762) Total revenues 174,000 275,000 259,238 (15,762) Expenditures Current Public health and sanitation 174,000 275,000 259.238 15,762 Total expenditures 174,000 275,000 259,238 15,762 Excess (deficiency) of revenues over (under) expenditures Net Change in Fund Balance Fund Balance, Beginning 234 234 234 Fund Balance, Ending $ 234 $ 234 $ 234 $ 104 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Sales Tax Economic Development Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Or1111nal Final Amounts Positive !Ne11ativa1 Revenues Taxes $ 366 000 $ 366,000 $ 423,490 $ 57,490 Total revenues 366,000 366,000 423,490 57,490 Expenditures Capital Outlay 1,045,000 1,045,000 373,001 671,999 Total expenditures 1,045,000 1,045,000 373,001 671,999 Excess (deficiency) of revenues over (under) expenditures (679,000) (679,000) 50,489 729,489 Other Financing Sources (Uses) Transfers in 750,000 750,000 750,000 Total other financing sources (uses) 750,000 750,000 750,000 Net Change in Fund Balance 71,000 71,000 800,489 729,489 Fund Balance, Beginning 97,355 97,355 97,355 Fund Balance, Ending $ 168,355 $ 168,355 $ 897,844 $ 729,489 105 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Arts & Humanities Fund For the Year Ended December 31, 2022 Variance with Bud§!eted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Charges for services $ 326,000 $ 326,000 $ 374,434 $ 48,434 Miscellaneous 37,000 37,000 (37,000) Total revenues 363,000 363,000 374,434 11,434 Expenditures Current Culture and recreation 993,017 993,017 957,270 35,747 Total expenditures 993,017 993,017 957,270 35,747 Excess (deficiency) of revenues over (under) expenditures (630,017) (630,017) (582,836) 47,181 Othtr Financing Sources (Uses) Transfers in 645,500 645,500 520,000 (125,500) Total other financing sources (uses) 645,500 645,500 520,000 (125,500) Net Change in Fund Balance 15,483 15,483 (62,836) (78,319) Fund Balance, Beginning 151,408 151,408 151,408 Fund Balance, Ending $ 166,891 $ 166,891 $ 88,572 $ (78,319) 106 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Debt Service Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive !Negative! Revenues Taxes Real estate taxes $ 3,342,920 $ 3,342,920 $ 2,991,642 $ (351,278) Delinquent taxes 50,000 50,000 33,912 (16,088) Motor vehicle taxes 358,394 358,394 361,121 2,727 Special assessments 1,435,600 1,435,600 1,409,833 (25,767) Total revenues 5,186,914 5,186,914 4,968,707 (218,207) Expenditures Debt service Principal retirement 4,712,000 4,712,000 5,005,734 (293,734) Interest and other charges 1,989,000 1,989,000 1,804,561 184,439 Total expenditures 6,701,000 6,701,000 6,810,295 (109,295) Excess (deficiency) of revenues over (under) expenditures (1,514,086) (1,514,086) (1,841,588) (327,502) Other Financing Sources (Uses) Transfers in 1,625,000 1,625,000 1,925,930 300,930 Total other financing sources (uses) 1,625,000 1,625,000 1,925,930 300,930 Net Change in Fund Balance 110,914 110,914 84,342 (26,572) Fund Balance, Beginning 2,111,664 2,111,664 2,111,664 Fund Balance, Ending $ 2,222,578 $ 2,222,578 $ 2,196,006 $ (26,572) 107 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Solid Waste Disposal Fund For the Year Ended December 31, 2022 Variance with Bud11eted Amounts Actual Final Bud11et Or~inal Final Amounts Positive (Negative) Revenues Charges for services $ 2,454,000 $ 3,150,000 $ 4,047,428 $ 897,428 Miscellaneous 51,972 51,972 Total revenues 2,454,000 3,150,000 4,099,400 949,400 Expenditures Public works 2,331,442 2,681,439 639,495 2,041,944 Total expenditures 2,331,442 2,681,439 773,737 1,907,702 Excess (deficiency) of revenues over (under) expenditures 122,558 468,561 3,325,663 2,857,102 Other financing sources (uses) Accretion of board premium 24,078 24,078 Interest expense (57,268) (57,268) (38,071) 19,197 Transfers in 612,000 650,000 42,500 (607,500) Transfers ( out) (636,700} (636,700) (701,700) (65,000) Total other financing sources (uses) (81,968} (43,968) (673,193) (629,225} Net Change in Fund Balance 40,590 424,593 2,652,470 2,227,877 Fund Balance, Beginning 5,429,823 6,225,330 5,666,666 (558,6642 Fund Balance, Ending $ 5,470,413 $ 6,649,923 $ 8,319,136 $ 1,669,213 108 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Water and Sewer Fund For the Year Ended December 31, 2022 Variance with Bud11eted Amounts Actual Final Bud11et Ori!!inal Final Amounts Positive (Ne11ative) Revenues Charges for services $ 19,964,700 $ 19,964,700 $ 21,839,834 $ 1,875,134 Miscellaneous 4,000 4,000 2,902,407 2,898,407 Total revenues 19,968,700 19,968,700 24,742,241 4,773,541 Expenditures Public works 18,966,281 18,966,281 10,883,710 8,082,571 Depreciation 3,711,786 (3,7111786} Total expenditures 18,966,281 18,966,281 14,595,496 4,370,785 Excess (deficiency) of revenues over (under) expenditures 1,002,419 1,002,419 10,146,745 9,144,326 Other financing sources (uses) Accretion of board premium 81,336 81,336 Interest expense (1,370,866) (1 ,370,866) Transfers in 144,400 144,400 5,178,672 5,034,272 Transfers ( out) (5,343,790) ~5,343,790) (9,068,422) (3,724,632) Total other financing sources (uses) (5,199,390) ~5, 199,390) ~5,179,280) 20,110 Net Change in Fund Balance (4,196,971) (4,196,971) 4,967,465 9,164,436 Fund Balance, Beginning 102,959,063 I 02,959,063 102,959,063 Fund Balance, Ending $ 98,762,092 $ 98,762,092 $ 107,926,528 $ 9,164,436 109 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Sanitation Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Charges for services $ 3,229,000 $ 3,229,000 $ 3,474,084 $ 245,084 Total revenues 3,229,000 3,229,000 3,474,114 245,114 Expenditures Public works 2,771,622 2,771,622 2,516,563 255,059 Total expenditures 2,771,622 2,771,622 2,675,420 96,202 Excess (deficiency) ofrevenues over (under) expenditures 457,378 457,378 798,694 341,316 Other financing sources (uses) Transfers (out) (619,4542 (619,454) (497,350) 122,104 Total other financing sources (uses) (619,454) (619,454) (497,350) 122,104 Net Change in Fund Balance (162,076) (162,076) 301 ,344 463,420 Fund Balance, Beginning 1,862,045 1,862,045 1,862,045 Fund Balance, Ending $ 1,699,969 $ 1,699,969 $ 2,163,389 $ 463,420 110 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Golf Course Fund For the Year Ended December 31, 2022 Variance with Bud11eted Amounts Actual Final Bud11et Orili!lnal Final Amounts Positive !Ne11at1ve) Revenues Charges for services $ 882,000 $ 882,000 $ 784,528 $ (97,472) Total revenues 882,000 882,000 857,376 (24,624) Expenditures Recreation 850,110 971,110 870,812 100,298 Total expenditures 850,110 971,110 915,796 55,314 Excess (deficiency) of revenues over (under) expenditures 31,890 (89,110) (58,420) 30,690 Other financing sources (uses) Transfers in 10,000 10,000 Total other financing sources (uses) 10,000 10,000 Net Change in Fund Balance 31,890 (79,110) (48,420) 30,690 Fund Balance, Beginning 51,692 80,898 317,306 236,408 Fund Balance, Ending $ 83,582 $ 1,788 $ 268,886 $ 267,098 111 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Workers' Compensation Reserve Fund For the Year Ended December 31, 2022 Variance with Bud11eted Amounts Actual Final Bud11et or1111nal Final Amounts Positive (Ne§!ative) Revenues Charges for services $ 250,000 $ 250,000 $ 250,000 $ Miscellaneous 100 100 1,203 1,103 Total revenues 250,IOO 250,100 251,203 1,103 Expenditures General government 430,418 430,418 (104,788) 535,206 Total expenditures 430,418 430,418 (104,788) 535,206 Excess (deficiency) ofrevenues over (under) expenditures (180,318) (180,318) 355,991 536,309 Other financing sources (uses) Transfers in Transfers (out) Total other financing sources (uses) Net Change in Fund Balance (180,318) (180,318) 355,991 536,309 Fund Balance, Beginning 704,413 704,413 704,413 Fund Balance, Ending $ 524,095 $ 524,095 $ 1,060,404 $ 536,309 112 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual (Non -GAAP Basis) Health Insurance Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (N!;iative! Revenues Charges for services $ 7,268,999 $ 7,268,999 $ 6,220,586 $ (1,048,413) Miscellaneous 49,500 49,500 23,899 (25,601) Total revenues 7,318,499 7,318,499 6,244,485 (1,074,014) Expenditures General government 7,136,300 7,136,300 6,254,166 882,134 Total expenditures 7,136,300 7,136,300 6,254,166 882,134 Excess (deficiency) of revenues over (under) expenditures 182,199 182,199 (9,681) (191,880) Net Change in Fund Balance 182,199 182,199 (9,681) (191,880) Fund Balance, Beginning 3,436,726 3,436,726 3,436,726 Fund Balance, Ending $ 3,618,925 $ 3,618,925 $ 3,427,045 $ (191 ,880) 113 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Central Garage Fund For the Year Ended December 31, 2022 Variance with Budll!ted Amounts Actual Final Budget Ori~lnal Final Amounts Positive (Negative) Revenues Charges for services $ 1,510,400 $ 1,625,000 $ 1,552,263 $ (72,737) Miscellaneous 1,121 1,121 Total revenues 1,510,400 1,625,000 1,553,384 (71,616) Expenditures General government 1,504,200 1,888,550 1,759,268 129,282 Total expenditures 1,504,200 1,888,550 1,759,268 129,282 Excess (deficiency) of revenues over (under) expenditures 6,200 (263,550) (205,884) 57,666 Other financing sources (uses) Transfers in 80,000 80,000 Total other financing sources (uses) 80,000 80,000 Net Change in Fund Balance 6,200 (263,550) (125,884) 137,666 Fund Balance, Beginning 327,853 394,425 367,472 (26,953) Fund Balance, Ending $ 334,053 $ 130,875 $ 241,588 $ 110,713 114 Statistical Section .. ,. City of Salina, Kansas Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)(in 000's) Schedule 1 flsoalYear 2016 201, 2017 2011 2011 .... 2013 Amount Amount % Amount % Amount % Amount % Amount % Amount % Amount % Covirrn,u111.i ~th-ides NelinYestmcnlincapitalasscts .,.,, Rcs!rictDd Unn:mitled TotrJ govcmmcntal activities nclposition Busi11m-typeact1.vitt1!'5 Nctinves!mcntincapital ■sscts R.estrictei;! UrtN1stricted Total busi~uirtype: 11:tivitiu net p:11ition Prim■l')' p._,mmftlt Nctinvettmenti11c:apital1Ssd.s Rcstrick.l. Ur.rcstriekld Tota! priirwy 1ovcmmcnt 116,515 l.210 11,6&2 129,471 57,103 1,SS3 17,794 76,450 173,688 2,763 29,476 205,921 ""'· • \lS.5119 1'10 '" 9'0 -----1.!& 100¾ ~ '"' 61,721 "' 1,512 23¾ ~ 100% ~ 84,. 177,310 1,. 2.,U .. ,. ~ 100% ~ 00% ' 130,401 122% • 124,63S 1% 1,224 l'/4 1,738 9Y. ~ -23·/4 ~ 100% ~ ]OO'Vo ~ 75% 68.107 BO% 62,427 2% 1,512 2% 1,512 24% ~ 18"/4 ~ 100% ~ l~/4 ~ .... 191,SOS 103% 187,062 1,1, 2.73" 1% 3,2'.IO IS% -----12d!ll _,,. ~ 100% ~ 100% ~ Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 ]08% ' 129,921 IOSYo ' 144,846 ]09% ' lSl,S27 '"" s 143,559 100% '"' 2,012 2% 2,366 2% 1,670 ,~, 2,267 2% -~,i,_..i.!dlli -7% ~ -10% ~ -11%~ -1",i, JOO% ~ 100'/4 ~ 100% ~ 100% S 144,082 100% 71% 63,316 71% 62,368 69% 63,301 .... 63,742 -2% 1,512 2% 1,512 2%, 1,3611 1'4 t,175 1% 27% ~ 2.,./e ~ 29% -----2!:!!L 31% --lLfil_ 33¾ 100-/4~ 100% ~ 100'/4 ~ 100% ~ 100'/4 "" 193,237 91% 207,214 '"' 214,11::JI 93% 207,301 .... 2¾ 3.S2'4 2% '·""' "' 3,038 1% 3.442 1% 6"/•~ "' ~ 6% ~ 6% ~ 12% 100% ~ 100% ~ 100% ~ 100% S 240,691 100% 2021 20Z2 Amount % Amount "It ' 143,768 64% s 142,.399 63% 69,368 31% 68,338 ,.,,, ~ 4% ~ ,,. ~ 100°/4 ~ JOO•?,, '6,004 00% 75,933 64% 1,132 1% ],347 1% ~ 39% ~ 35\9 $ 93.530 100% ~ 100-/4 t99,n2 63% 2!1,331 631/4 70.500 22% "'·"' '"" ~ "" ~ 17•4 S 316,"63 100'/4 ~ 100% 115 E:rpt:ntts Governmental activities: General go\·emment Public&Bfoty Public works Public health and sanitation Culture and recrcetion Planning and de\'elopment Intere11 on long tenn debt Total govemmenLll.l activities expenses BlmnCss..\)J>eactivities: Solid waste disposal Water and sc::wer Sanitation Golf course Total business-type activities expc~!t Total priTI111IY government expenses Program Revenues Governmental 11.ctivities: Chzire,es for5avices City of Salina, Kansas Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)(in 000's) Schedule 2 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10,978 12,175 $ 10,743 9,188 9,780 12,013 S 10,866 J0,395 16,098 16,479 19,649 20,208 21,084 22,232 23,120 23,892 25,358 24,672 23,877 29,381 11,064 11,401 9,049 9,773 10,345 J0,458 10,529 10,SIJ 16,335 11,141 l.]69 347 995 1,095 1,126 1,256 1,156 1,323 2.315 1,883 4,809 5,156 6,517 6,612 6,880 7,040 6,879 5,034 6,305 8,145 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2.()04 2,289 3,415 ----12ll.. ----1!!l.. ---1lli.. __..b2Z!... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ S 70046 ~ 3,532 1,867 1,766 2,..J35 2,365 2,382 2,871 2,056 1,836 788 15,418 14,938 11,712 14,807 15,650 15,190 14,551 13,386 13,310 15,885 2,237 2,399 1,909 2,043 2,178 2,419 2,313 2,526 3,655 2,675 ~ m rn m ~ m ~ M m m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ General government S 5,548 S,662 3,151 3,134 3,470 3,569 $ 3,401 3,339 l,440 (25,653) Public safety 4,656 4,222 4,600 4,891 4,601 4,815 4,357 4,325 4.S21 4,926 Public works 277 255 193 238 348 285 309 294 415 408 Public health and sanitation 34 46 46 44 50 47 46 49 63 60 Culture and recreation l,466 1,533 1,501 1,638 1,541 1,545 1,514 279 1,070 968 Plam\Uls:anddl:velopmcnt 161 167 73 140 91 150 104 lB 114 300 Operetiog (l;fWlls and cootribution5 4,200 4,015 3,394 4,332 4,541 4,299 4,540 4,714 4,711 3,407 Capi1.aJ tuants and contribl.ltions ---733 ------ Totalgovemrnentalactivitie!pr~amn:venues~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Business-type activities: Charges for services Solid was.te disposal Watt!' and sewer Sanitation Golf course Capital gnmts and contributions Total business-type: activities program revenues Net (Expense) Revenue General Rennues & Other Changes in Net Po,ltion Government.al activities: Taxes Property taxes, general purpose Property Wes, deli. sen-ice Motor vehicle taxes Sales tax, general purpose Selective sales tax Other taxes Invedlncnt revema MisceUancous Transfers, net Total @O\-emmental activities program revenues Bminess-type 11ctivities: Investment revenues Miscellaneous Reimbursements Transfen,net Total business-type a.:ti\'ities program revenues Total primary government Change in Net Potitian Go\'trmnen\al activiti~ Business-type uctivities Tow! primary government 3,138 3,024 2,519 2,795 3,165 3,097 3,082 3,290 3,549 4,047 17,938 18,742 19,0S9 19,322 19,855 20,202 20.510 19,449 21,241 21,84-0 2.514 2,553 2,S29 2,751 2,885 3,006 3,325 3,194 3,422 3,474 719 811 820 789 798 756 810 581 790 m -115 • ------- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8,oll 8,315 s 8,242 8,196 9,101 8,623 9,708 s I0,308 s 10,821 l0,706 2,362 2,578 2,766 3,022 2,487 2,457 2,664 3,058 3,065 2,992 1,200 1,250 l,312 1,370 1,372 1,428 1,403 1,520 1,643 2,0l4 12,260 12,689 12,931 12,781 12,906 13,292 13,419 13,697 15,315 16,698 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 11,405 14,979 6,630 7,231 7,363 7,991 6,900 7,241 6,975 6,117 7,116 7,438 6, 98 86 148 92 183 670 286 158 487 9,918 1,160 2,371 5,842 2,003 1,062 1,168 8,328 2,405 (28) -----122.... _____]£_ ~ ~ --2!2.. ~ ~ ~ ~ ---1lli... ~~ ~ ~ ~ S 48.034 ~ ~ ~~ 49 279 51 97 S6 78 180 132 79 \29 103 233 153 846 4 $ • S 446 2,416 3,027 ___fil9.l. ----~ ~ ~ ~ ___jill_!l ~ ~ ~ ~ ~ ~ $ (3,424) ..ua ~ ~ ~ $ (14,265) ~ S 8,869 S 129 S 4,329 $ 9,083 S 7,833 S 3,599 S 4,903 $ 15,022 $ 12,903 S (27,860') ~ ~ ---1:.llL ~ ~ ~ __lli2... --19i§... ~ ~ ~~ ~ ~ ~ ~ ~~ ~ ~ Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 116 City of Salina, Kansas Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule 3 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Nonspendable $ 81 $ l07 $ 111 $ 131 $ 153 152 $ 212 $ 184 $ 168 $ 151 Assigned 331 239 199 136 214 340 274 244 152 358 Unreserved/unassigned 3,138 3,908 4,530 4,765 6 516 6251 8 821 14 714 20,743 25 314 Total general fund $ 3,550 $ 4,254 $ 4,840 5,032 $ 6,883 $ 6,743 $ 9,307 $ 15,142 $ 21,063 $ 25,828 All other governmental funds Restricted $ 3,446 $ 2,910 $ 2,793 $ 3,142 $ 4,191 $ 4,648 $ S,224 $ 4,980 $ 72,025 $ 67,558 Committed 7,486 9,886 8,695 14,284 l0,072 7,325 8,086 13,225 16,597 20,074 Assigned 3,146 1,280 619 1,043 641 1,227 963 1,965 1,587 9,522 Unreserved/unassigned !l0,537) (6,823) \28) (852) (7,804) (4,028) (1,058) {2,794) Total all other governmental funds $ 14,078 $ 14,076 $ 1,570 $ 11,646 $ 14,876 $ 12,348 $ 6,469 $ 16,142 $ 89,151 $ 94,360 Note 1: Committed fund balance increased due to changes from the implementation of GASB Statement 84 In fiscal year 2020. Note 2: Restricted fund balance increased due to the City receiving $65.9 million from the federal government In 2021, restricted for the environmental cleanup of the former Schilling Air Force Base. 117 Rnmua Tu:c:s(sccSchcduleS) lnkfJO\'muncntal Spocial!IS!illsSmc:rrts License11ndpennits CbMJcsfor,c~ices lr,\·utmcntl'C'ICDUC Reimb111T,Cmcnts Danatim1s MiSillellancaus TotalrcV(;nUC:5 Espnulituns Ocflem gO"nmunml Public,efc:ty Public worts Public heal.th and sanitation Cullurcandrccrcation Planningllf\Qdevc:loprnc:nt Miscel\llllCllUS C1pit11loull1y Otbl~e Principal Interest Deposit to escrow Total expenditure, Olhrrlillanring110Urtn(Y!lr.li) Bonds ud notes issued Bond and note premium T1'8111fc:Din Tra.nsfcrsout Tota\othcrfinancinasourees(usie:s) }/d change in fund bal&cc: Debi service as• pm:c:r1taae of non-capitalex:pcnditures City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule4 --1ill..-~ 2015 2018 ~ -----1fil.._ ____lfil__ ~ __ ,._,_, - 34,764 s 36,523 s 37,171 s 38,261 s 41,597 $ 41.951 s 43,492 s 44,4S2 • 49,364 4.192 4,008 3,385 4,32' 4,536 4,297 4,573 5,317 70,892 1,706 1,810 1,679 1,669 1,539 l,S46 1.596 1,511 1,40!! ' 7 10 7 3 4 l 10 8,536 8,276 6,416 6.953 6,880 7,338 M04 5.557 6,710 40 " 47 142 " 157 670 2&6 158 9,015 121 491 l,◄06 241 83 141 Ill "' 90 129 90 810 799 1.8'3 4,315 1,851 884 1.545 5.656 1,898 ~ ~~~~~~~~ 4,269 $ 3,986 $ S.342 s S,422 ' 5,423 • 5,649 $ 4,582 s ,,,.. s '·""' 19,155 19,559 21,268 21.664 21,629 22,953 21,'"2 22,435 23.,215 7,22ll 7,443 '~" s.n& 6,048 6.162 6,136 6,082 6,166 1,344 319 ,., 1,078 1,097 l,236 1,121 1,280 2,296 3,939 4,292 5,659 S,817 6,143 6,255 6,047 4,245 S,.317 3.293 3,232 1,9IO 2,042 1,801 2,ISS 2,311 1,794 2,078 1,354 13,047 11,009 25,527 24,00l 18.281 16,344 21,913 12,04] 24,939 5,038 l,261 ·~"' 17,902 '·""' 14,W 10,324 5,164 10,550 1,&67 l,&64 l,833 3,152 l,771 2.192 2,136 2,366 2.411 -. -. ---. - • $ ' 2022 53,416 4,785 1,410 " 7,547 461 ,., 1,701 69.439 6,783 25.Sll S,847 1,654 ,.m 2,751 36 12,629 8.,616 2,126 ~ ~ ~ ~ ~ ~ ~ ~ ~ _, ____ , ... , ... ,._, S,690 $ 18l 5,365 S 302 6,815 S 34,892 S 11,4':KI $ 369 1,503 95 8.090 $ 70 11,090 S 443 S.720 $ ... 13,813 S 7,840 "' 4,907 3,001 7.642 7,065 8,339 13,462 9,714 9,323 23,000 17,733 ------112QZl ~ ~ ~ ~ ~ ~ ~ ~ ~-""''"''·77~7) ~~~~~~~~~.;•~~1 .. 2,79 .... • Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 118 2013 2014 Real estate $ 10,145 $ 10,657 $ Delinquent 248 235 Motor vehicle 1,200 1,250 General sales 12,260 12,689 Selective sales 4,281 4,461 Other taxes 6,630 7231 Total taxes $ 34,764 $ 36,523 $ City of Salina, Kansas Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule 5 2015 2016 2017 2018 2019 I0,729 $ 10,972 $ 11,377 s 10,804 $ 12,182 279 246 2!0 276 190 1,312 1,370 1,372 1,428 1,403 12,931 12,781 12,906 13,292 13,419 4,558 4,901 8,832 8,917 9,323 7,362 7,991 6900 7 240 6 975 37,171 $ 38 261 $ 41,597 $ 41,957 $ 43 492 So.irce: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 2020 2021 2022 $ 13,150 $ 13,500 $ 13,546 216 385 152 1,520 1,643 2,014 13,697 15,315 16,698 9,751 11,405 14,979 6117 7116 6,028 $ 44451 $ 49.364 $ 53416 119 Fiscal (Budget) Year Real Estate 2013 $ 370,390,092 2014 376,131,346 2015 381,087,426 2016 389,872,825 2017 399,918,216 2018 403,835,383 2019 421,108,311 2020 423,573,121 2021 427,732,694 2022 468,723,852 City of Salina, Kansas Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Schedule 6 Total, Excluding Motor Vehicle Total, Taxable Personal Prof!!!~ State Assesaed Motor Vehicles Tax Rate !Note 1! Assessed Value $ 17,769,120 $ 16,948,264 $ 405,107,476 26.927 $ 48,882,411 $ 453,989,887 13,652,885 17,670,147 407,454,378 27.080 48,865,900 456,320,278 12,607,815 18,984,453 412,679,694 27.311 50,350,566 463,030,260 11,653,719 19,323,055 420,849,599 27.603 51,833,505 472,683,104 10,900,308 19,671,685 430,490,209 26.129 50,970,796 481,461,005 10,130,718 20,485,144 434,451,245 28.394 53,336,677 487,787,922 11,245,813 22,113,195 454,467,319 29.720 54,687,311 509,154,630 9,353,057 23,436,340 456,362,518 30.650 54,589,132 510,951,650 8,154,030 23,975,182 459,861,906 30.452 56,545,812 516,407,718 9,542,807 25,613,362 503,880,021 30.348 54,903,252 558,783,273 Estimated Total Market Value (Note 2 $ 2,917,267,724 2,957,531,741 2,957,531,741 2,964,464, 111 3,097,885,103 3,150,409,123 3,294,115,685 3,326,521,997 3,392,138,959 3,705,559,200 Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based on tax effort. Ratio of Assessed Value to Eat Market Value 15.56 15.43 15.66 15.94 15.54 15.48 15.46 15.36 15.31 15.08 Note 2: The esnmated market value excludes the value of the State assessed properties. Market value information is not available for those properties. However, state assessed property is generally assessed at 33% of market value, except for railroads, which are assessed at 15% of market value. Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value. Source: Saline County Clerk ("yea~' Tax Levy Sheet) 120 Ci!l of Salina Fiscal (Budgoq Debe Service City of Salina, Kansas Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) Schedule 7 SalineCounti Debt Service Total c;,y USD305 !21 DebtSenicc Year O~rating Mil!!ge Mil9e Total£!%Mll!!se Oeerati!!ll MU!!!!! ...!!!!!5!.... MYlage Operating Mm~ Mila5!B Total C!!l Mill!le ~ 20242 5.948 26.190 34.823 34.823 47.133 11.S16 2014 20.539 6.388 26.927 37.895 37.895 46.599 11.517 2015 20.692 6.388 27.080 39.047 38.047 44.088 11.517 2016 19.950 7.361 27.311 38.275 38.275 44.465 11.655 2017 21.694 5.909 27.603 37.508 37.508 44.069 11.674 2018 20.339 5.790 26.129 37.321 37.321 45.130 11.371 2019 22.285 6.109 28.394 36.437 36.437 46.776 10.746 2020 22.906 6.812 29.720 41.097 41.097 44.761 10.747 2021 23.847 6.803 30.650 40.606 40.606 45.130 10.729 2022 23.612 6.736 30.348 36,660 38.860 43.441 9.984 Source: Saline County Treasurer (1) The "Other' column indudes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State Extension District #3. (2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions. 58.649 58.1t6 55.605 56.120 55.743 56.501 57.522 55.508 55.859 53.425 Other ~ 12.135 131.797 12.941 135.879 13.305 134.037 13.293 134.999 13.299 134.153 13.189 133.140 13.986 138.341 13.983 140.308 12.623 139.738 13.089 135.722 121 Taxeai er Evergy (Westar Energy (Western Resources) SFC Global Supply Chain, Inc. (Schwan's) Kansas Gas Service RAF Salina LLC S&BMotels Central Mall Realty Holding LLC Union Pacific Railroad Co. Menard Inc. Individual Sams Real Estate Business Trust/Walmart Walmart Real Estate Business Trust Great Plains Manufacturing Gateway Properties Salina Regional Health Center Dillon's Combined Valuation of the Ten Largest Taxpayers City Valuation Percent of Total City Assessed Valuation Source: Saline County Clerk's Office or recent OS City of Salina, Kansas Principal Property Taxpayers Current Year and Ten Years Ago Schedule 8 2013 !2012 Assessed Value! Assessed % of Total Tle!; of Business Valuation Valuation Rank Utility $ 9,256,860 2.04% 1 Pizza Manufacturing 8,007,991 1.76% 2 Utility 3,590,817 0.79% 5 Retail Shopping Mall 4,950,001 1.09% 3 Motel N/A Regional Shopping Center N/A Railroad N/A Home Improvement 2,629,399 0.58% 8 Residential N/A Discount Retail Stores N/A Discount Retail Stores 3,458,961 0.76% 7 Manufacturing 2,404,923 0.53% 9 Shopping Mall (Mldstate) 3,534,018 0.78% 6 Hospital and Medical Offices 4,768,349 1.05% 4 Grocery Chain 2,396,753 0.53% 10 $ 44,998,072 $ 453,989,887 9.91% 2022 !2021 Assessed Value) Assessed %of Total Valuation Valuation Rank $ 15,630,615 3.01% 1 6,540,230 1.26% 2 4,844,333 0.93% 3 4,665,958 0.90% 4 4,000,001 0.77% 5 3,880,224 0.75% 6 2,712,177 0.52% 7 2,339,471 0.45% 8 2,274,633 0.44% 9 2,255,335 0.43% 10 $ 49 142 977 $ 519,483,033 9.46% 122 Fiscal (Budget) Taxes Levied for Year the fiscal year 2013 $ 10,550,730 $ 2014 10,868,225 2015 10,991,959 2016 11,209,245 2017 11,564,876 2018 11,248,278 2019 12,335,808 2020 13,506,590 2021 13,958,495 2022 13,788,584 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years Schedule 9 Current Year Tax Distributions Delinquent Amount Percentaae Collections (1) 10,145,404 96.6% $ 354,845 10,776,688 99.4% 62,432 10,460,246 96.6% 372,726 10,984,630 98.3% 184,970 11,320,197 98.2% 203,904 10,938,457 97.5% 276,340 12,097,740 98.5% 189,587 13,203,183 98.4% 216,358 13,552,390 98.0% 283,194 13,529,396 98.9% 151,560 $ (1) Delinquent collections are reported in the aggregate for all previous years. Data is not currently available for"collected in subsequent years" Source: Saline County Traasure~s Office Total Tax Distributions Percentage of Amount levy 10,500,249 99.5% 10,839,120 99.7% 10,832,972 98.6% 11,169,600 99.6% 11,524,101 99.6% 11,214,797 99.7% 12,287,327 99.6% 13,419,541 99.4% 13,835,584 99.1% 13,680,956 99.2% 123 City of Salina, Kansas Direct Sales Rate by Taxing Entity Last Ten Fiscal Years Schedule 10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City Direct Tax Rate General 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Special purpose 0.40% 0.40% 0.40% 0.40% 0.75% 0.75% 0.75% 0.75% 0.75% County-wide Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Portion of County-wide tax allocated to City (July Percentage) 60.86% 60.23% 60.28% 60.28% 60.28% 59.85% 60.33% 60.17% 60.17% In addition to the direct tax, the City receives a portion of the Countywide sales tax, based on a formula distribution. The formula is based on property tax effort and population, and Is adjusted in January and July of each year. In May 2016, the voters approved an Increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016. Source: Kansas Department of Revenue 0.50% 0.75% 1.50% 60.95% 124 Ae.loeniii _ .. ll'dl.lfUiel --"-_,.._ C:int·.,mtdrlproauction Rurl!MIM ....... Relig:011&1r10nprofil En;ineerirot.tuc!IH F'rcvidlf'ClbD:lbllHr'iice SaltofCOfflPOl'llrtparts F"111~111'1t ll'ldu1tnaloonslffl0cllnproduction S.ltloll1rmequlpn-.nt Wlte•Rai.SohldtN: MOl"thlynt.r"cl'ariga(5.e'') Co~il'fc"'roa(perOOOgal.): :).2IXIOgli. 200MC000g11L 0,...,10.000get 6-ss111ttch11ge ~ ....... R9118chlalal: M«'ttfytleMO'lll'ge UnllC.otl(pfrCIOOQIIII): Hedi ·™ HIid WNrSotd 17,966 toi.78& tB.042 ,.MS.,00 1.579 348,91;8 1,591 )53.675 C> 1112,529 4l 113.233 .. .. ... V1 ~.3A6 1611 67,155 1'5 80.1165 84 44,157 °"" -45.328 1 20,4319 12 18,ffll 12 19,264 1 21,5J0 1 22.9&3 & 26,-482 10 32,1&4 37 4,810 37 4,t13 B 15.822 B 5.~ 2 3,485 1 us, 6 5,97.2 G B.650 3 1,il:2 2 1.4114 3 4,411 3 3.W ::~20:;:m;;il:: .. ,"'.,.;::,., . .;;;~.rl ~,, ... _,.,,,;-; ...,,u,.o, .... ,..-# ,., '·" .... 1.11 .... Water sold Is expressed in thousands of gallons. City of Salina, Kansas Water Sales by Class of Customer Last Ten Fiscal Years Schedule 11 altl~ ""' ""' 2019 iXccts ...... ,km ,Xcm ..... w--·-,,_..,. .... _..,.. ..... --186£ 887,540 1e,125 ®.tilt Hl.174 .... ,, t.8,1:D 11113,3117 ,.., 350.187 ,_.., ,..= , .... ,.,,,. 1,61◄ """° .. ,.,_.,, .. ,.,..., .. ,.,..., .. 211,843 ., ◄1,928 ., 45,136 .. "-"' ., "·"' "' 61,◄30 163 "-"" 163 5f!37B 157 11,559 " ....... .. 41,176 " ,..,. " :,0.810 " 11,338 • '·"" • 9,!1!12 ' .... 1 21,915 1 23,384 1 25,!124 1 ,,_,., . 31,856 . 33,128 . 35,132 . 31,856 37 '·"' ,. 5.2'24 ,. 4,749 36 4,456 • 4,eo1 7 ◄,'73 1 4.n2 1 4,•m 1 3,161 1 3.&21 1 ""' 1 2,331 5 ,,.,. 4 3,1:N . 2.1117 2,190 3 1,m 3 1,11i10 .,,, 3 '·"' 3 1,0lll 3 1,962 2,107 1 " , .. 1 1 .. " 20153 1719.iiee 20.,93 171771S6 ~,H 173§343 ::iii'.,9!1 1,734100 .,, ... "' 5.14 ... 4.11 ... ... ... ... t.92 7.22 7.36 7.51 7.61 ,., '·" '·" rn Number of Accounts billed is the annual number of billings for each class divided by 12. Monthly meter charge increases with the size of the mater. 2010 ·-#Xect1 ·---..... 16,155 864,ii<S 1'.238 ,_.., ,,._.., t,812 .. , .. .,,. " " ◄1,911 .. "' lrl.121 1 .. ,,.., 78 B,97./11 7 "·"" t ' "·"" . " '·"" " 1 '·""' • 1 . .,. 1 ' 1,5-42 . 1.11!1D ' :2,219 ' "' t 20,2,0 1,ff?1,il!I' ~~ , ... 5.13 to.>5 ... .,. Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption. ,.,. --W,782 31&.oeo 1$4.785 ,._,,,, ... ,., 24,518 .... 31,116 29,4113 2.215 ... , 1,009' 1,310 .,,. '·"' 109 iH!!.m: 5.31 11l.lD .,. . ., 2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate Source: City of Salina Water Customer Accounting Office. ""' .... ikm ..... .... Wa!wSold ... .. ,._..., ,e.303 987,'iii:i 1s.J112 §16.iJi ,_.,. ---'·"' -" 167.(191 ., 177 .... " Zl)lt0 ,. 21,0,7 m 61,021 '" ,.,.. " 31,1,160 n "°" 6 3,ll12 1,"3 1 22,r.10 20,575 ' 33,10ll ' 31,«15 35 "'" 35 '·"" 6 2,213 ' '·"' 1 2,5e5 .... 4 1,533 '" 3 2,146 ' ,.,, 3 1,561) ' 1,013 1 ,,., 1 10 ~346 ,.~BS.ffl 20,::t'!, u,sffl 6.27 ,,. 5.42 , ... 10.84 ' 11.,e .,, '·" •02 ,_,. 125 Fiscal General (Budget) Obligation Year Bonds ~ 49,631,797 2014 50,033,555 2015 50,840,632 2016 51,816,399 2017 55,994,305 2018 51,968,31D 2019 54,607,702 2020 56,587,549 2021 59,582,649 2022 62,508,000 Governmental Activities City of Salina, Kansas Ratio of Outstanding Debt by Type Last Ten Fiscal Years Schedule 12 Bwiinesa-Tr:e! Activities General Operating Obligation Water Revenue Loans Paxable Caeltal Lease Leasa Tem~rarx Noa Bonds Bonds Loans Pa~able s s $ 3,800,000 8,519,799 15,226,532 $ 176,235 5,000,000 9,587,351 14,592,836 6,208,102 479,366 5,995,000 8,539,773 13,949,139 5,753,620 12,157,127 321,174 11,505,000 7,640,381 13,285,443 7,432,024 12,171,090 157,868 6,811,742 6,520,433 12,606,747 8,862,810 12,185,053 18,123,505 5,282,578 11,898,051 10,832,351 12,640,000 11,170,000 4,102,298 10,330,000 46,354,852 12,640,000 7,050,000 8,742,451 9,615,000 35,926,029 12,640,000 3,647,188 7,672,351 8,865,000 43,966,366 12,640,000 649,D31 6,637,000 8,D90,O0D 43,798,557 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 Percentage of Temporary Tot.al Primary Personal Notes Government Income Per C.ae!ta $ 77,178,128 3.7% 161305 85,598,079 4.1% 1./Hfl'2S 85,557,53D 4.1% 178942 104,157,548 5.0% 2.20031! 103,124,995 4.9% 2,194.43 110,089,848 4.9% 2,342.64 139,204,852 6.0% 2,979.81 130,561,029 5.5% 2,804.75 136,373,554 5.5% 2,947.09 134,322,588 6.6% 2,889.84 126 Fiscal General (Budget) Obligation Year Bonds 2013 $ 59,620,906 $ 2014 59,620,906 2015 59,380,405 2016 62,514,738 2017 57,250,888 2018 58,710,000 2019 65,330,000 2020 65,330,000 2021 67,255,000 2022 69,145,000 City of Salina, Kansas Ratio of Net General Bonded Debt Outstanding Last Ten Fiscal Years Schedule 13 General Bonded Debt Outstandln9 Temporary Less: Debt Net General Caf ltal Lease Notes Total Service Fund Bonded Debt 176,235 $ 5,000,000 $ 64,797,141 $ 707,763 $ 64,089,378 176,235 5,000,000 64,797,141 407,864 64,389,277 479,366 5,995,000 65,854,771 745,339 65,109,432 157,868 6,811,742 69,484,348 1,248,914 68,235,434 18,123,505 75,374,393 1,509,863 73,864,530 11,170,000 69,880,000 185,158 69,694,842 7,050,000 72,380,000 1,142,418 71,237,582 7,050,000 72,380,000 1,724,117 70,655,883 3,647,188 70,902,188 2,111,664 68,790,524 69,145,000 2,196,006 66,948,994 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 Percentage of Actual Taxable Value of Per Capita 14.1% $ 1,339.49 14.1% 1,345.17 14.1% 1,361 .75 14.4% 1,441.51 15.3% 1,571.79 14.3% 1,483.06 14.0% 1,524.91 13.8% 1,517.85 13.3% 1,486.59 12.0% 1,440.35 127 Jurisdiction Direct: City of Salina Overlapping: Salina Airport Authority (A} Saline County USD 305 Total Overlapping Debt Total Direct and Overlapping Debt Per Capita Direct and Overlapping Debt City of Salina, Kansas Direct and Overlapping Governmental Activities Debt As of December 31, 2022 $ $ Net General Obllgation Bonded Debt Outstanding 75,560,845 34,670,000 72,814,135 93,575,000 201 059, 135 276,619,980 Schedule 14 Percentage Appllcable to City of Salina 100.00% 100.00% 73.79% 93.10% Amount Applicable to the City of Salina $ 75,560,845 34,670,000 53,729,550 87,118,325 175,517,875 $ 251,078,720 $ 5,401.75 Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of the City of Salina bears to the assessed valuation of lhe overlapping entity. (A) Includes $74,900,000 of bonds issued by Saline County that have a pledge of both property taxes and a dedicated 0.50% retailers' sales tax of lhe county. However, based on historical collections, the County anticipates that such bonds will be repaid entirely from the sales tax. Source: Saline County Clerk 128 Legal Debt Margin Calculation for 2022 Assessed Valuation Debt Limit (30% of Assessed Value) Debt applicable to limit Total Bonded Debt Less: GO Debt Attributable to Exempt Purposes Less: Revenue Bonds Less: Loans Payable Less: Fund Balance designated for Debi Service Total Debt Applicable to Limitation Legal debt margin 2013 Debt Limit $ 136,196,986 Total net debt applicable to limit 52 n• 034 Legal debt margin $ 83.472,932 Total net debt applicable to the limit as a percentage of debt limit 39% City of Salina, Kansas Legal Debt Margin Last Ten Fiscal Years Schedule 15 $ 558,783,273 167,634,982 $ 133,673,557 , (6,637,000) (8,090,000) (56,438,557) (2,196,006) $ 60,311,994 $ 107,322,988 Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 $ 138,896,083 $ 138,909,078 141,804,931 142,000,537 146,338,377 s 1s2,n4,804 s 153,285,495 155,844,010 s 1s1,s34,982 56 090 293 74 229612 62 072 485 61 296184 68240457 66232.849 65748563 66824139 60311994 $ 80,805,790 $ 64,679,466 $ 79,732,446 s 80,704 353 $ 1e1oss192o $ es14e211ss s 871536,932 es,020,771 s 101,322,sae 41% 53% 44% 43% 47% 43% 43% 43% 36% 129 Fiscal Year Charges 2013 $ 17,974,089 $ 2014 18,964,164 2015 19,139,612 2016 19,389,348 2017 19,958,862 2018 20,382,469 2019 20,842,606 2020 19,448,780 2021 21,240,517 2022 21,839,834 City of Salina, Kansas Pledged Revenue Coverage Last Ten Fiscal Years Schedule 16 Water/Sewer Revenue Bonds Exeenses Revenue Principal 13,373,088 $ 4,601,001 $ 620,000 12,112,288 6,851,876 630,000 9,859,974 9,279,638 640,000 11,800,473 7,588,875 660,000 13,148,035 6,810,827 675,000 12,973,621 7,408,848 705,000 13,269,741 7,572,865 725,000 12,460,334 6,988,446 715,000 12,077,933 9,162,584 750,000 15,885,026 5,954,808 775,000 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 City of Salina Debt Services Schedules Debt Service Interest Coveraae $ 590,191 3.80 577,791 5.67 565,191 7.70 549,191 6.28 529,391 5.65 509,141 6.10 487,991 6.24 327,117 6.71 282,825 8.87 265,950 5.72 130 Fiscal Per capita (Budget) Personal Income Year Poeulallon jSalino Coun!ll ~ 47.846 $ 43.078 2014 47,867 43,736 2015 47,813 44,065 2016 47,336 44,230 2017 46,994 44,732 2018 46,994 47,945 2019 46,716 49,983 2020 46,550 50,820 2021 46,274 53,309 2022 46,481 56,258 City of Salina, Kansas Demographic and Economic Statistics Last Ten Fiscal Years Schedule 17 Personal Income, Percentage Free Salina Unemployment Labor Fore., USD305 and Reduced jl~olalad! Rate CK~ of Salina Headcount Lunch $ 2.061.109,988 5.1% 26,441 7,305 60.7% 2,093,511,112 5.3% 26,303 7,388 61.3% 2,106,879,845 3.9% 26,170 7,369 61.8% 2,093,647,612 3.3% 27,684 7,386 68.7% 2, 102, 135,608 2.7% 27,684 7,176 62.1% 2,253,127,330 3.3% 30,174 7,180 61.7% 2,335,005,828 2.9% 30,094 7,245 59.2% 2,365,671,000 3.4% 30,094 7,156 59.0% 2,466,820,666 2.3% 24,962 7,031 44.3% 2,614,928,098 2.3% 29,476 6,725 59.3% Ctty .! cen1 sales blx 5,326,723 5,555,601 5,670,040 5,727,260 5,755,869 5,TT0,174 5,968,961 5,998,424 6,687,099 7,239,146 Increase in per capital Sales Tax (10 years) Increase in per capita Personal Income Sources: Population: Kansas Division of the Budget. (Population Dala) Employment: Kansas Department of Labor Personal Income for Salina is derived from the population and per capita personal income for Saline County Per Capita Personal income as reported by the Bureau of Economic Analysis 2017 Per Capita Personal Income staff projection 2013 -2022 Employment City of Salina USD305 headcount and free and reduced lunch data derived from Kansas Department of Education./USD 305 Budget Document Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2021- 2022 school year is reported as 2021 . Per Capita .5 cent sales Tax $ 111.33 116.06 118.59 120.99 122,48 122.79 127.77 128,86 144.51 155.74 Asao/,of per capita personal ~ 0.258% 0.265% 0.269% 0.274% 0.274% 0.256% 0.256% 0.254% 0.271% 0.277% 39.9% 30.6% 131 Emelol:'.er Salina Regional Health Cenll!f Unified School District No. 305 Schwan's Global Supply Chain Great Plains Manufacturing Exide Technologies/Strten Manufacturing City of Salina Salina Vortex Saline County Walmart rev Group REV Group Signify -Blue Philips Lighting Company Dillion Stores Solomon Corp Total Sources: Salina Chamber of Commerce City of Salina, Kansas Principal Employers Current Year and Nine Years Ago Schedule 18 2013 Tl:'.e" of Business Emplol:'.ees Rank Health Care 1,300 3 Public School System 1,659 2 Frozen Pizza Manufacturing 1,800 1 Agricultural & Landscaping Equipment 258 10 Automotive Battery Manufacturer 750 4 City Government 465 6 Manufacturing County Government Retail 421 7 Manufacturing Fluorescent Lamps 490 5 Retail 343 8 Electrical Equipment 324 9 7,810 2022 Percentage of Percentage of Labor Force Emelo):'.ees Rank Labor Force 5.0% 1,875 1 6.2% 6.3% 1,500 2 5.0% 6.9% 1,200 3 4.0% 1.0% 1,200 4 4.0% 2.8% 700 5 2.3% 1.8% 425 6 1.4% 385 7 1.3% 325 8 1.1% 1.6% 250 9 0.8% 175 10 0.6% 1.9% 1.3% 1.2% 29.5% 8,035 27.3% 132 APPENDIX D December 31, 2023 Unaudited Financial Report The following report provides unaudited revenues, expenditures and fund balances for certain main operating funds of the City for the fiscal year ending December 31, 2023. These figures are presented on cash basis and are not prepared in accordance with generally acceptable accounting principles. The City anticipates that its final audited financial statements for the 2023 fiscal year will be available by approximately September of 2024. [THIS PAGE INTENTIONALLY LEFT BLANK] Unencumbered Fund Outstanding cash Balance Fund Name Number BEG. BALANCE DEBITS CREDITS NET CHANGE END BALANCE Encumbrences U/31/23 General 100 25,135,706.17 55,389,974.66 48,271,700.20 7,118,274.46 32,253,980.63 318,782.98 31,935,197.65 Sales Tax Capital 210 8,337,703.26 10,798,120.09 14,086,468.97 -3,288,348.88 5,049,354.38 0.00 5,049,354.38 Gas Tax 270 2,901,387.49 1,559,092.71 1,877,637.03 -318,544.32 2,582,843.17 536,836.95 2,046,006.22 Sanitation 300 1,624,957.47 3,708,677.25 3,350,785.00 357,892.25 1,982,849.72 129,863.04 1,852,986.68 Solid Waste 320 7,306,844.63 4,380,568.08 5,176,249.68 -795,681.60 6,511,163.03 173,015.17 6,338,147.86 Golf 340 70,310.43 1,021,369.81 1,054,123.20 -32,753.39 37,557.04 0 37,557.04 Water/Wastewater 370 25,640,615.74 22,774,896.09 23,256,476.76 -481,580.67 25,159,035.07 2,718,196.14 22,440,838.93 Debt Service 500 1,481,543.37 7,320,S84.93 7,123,966.17 196,618.76 1,678,162.13 0 1,678,162.13 Water/Wastewater Debt Service 510 655,428.71 0 0 0.00 655,428.71 0 655,428.71 Water/Wastewater Capital Reserve 735 10,809,161.53 250,000.00 127,834.74 122,165.26 10,931,326.79 260,013.73 10,671,313.06 Solid Waste Capital Reserve 750 1,381,213.08 0 0 0.00 1,381,213.08 0 1,381,213.08 Total 85,344,871.88 107,203,283.62 104,325,241.75 2,878,041.87 88,222,913. 75 4,136,708.01 84,086,205.74 [THIS PAGE INTENTIONALLY LEFr BLANK] Cityof Salina A Mixed Sources "'-----.,..Gllllnllllll~Md 1-,dadWIIWld•- Printed by: lmageMaster, UC __,_...,.._ 0 ~ -< 0 .,, en > r z 'J> ~ z en > en G) m z m ~ r 0 m r c5 ~ 5 z z -t m :::0 z > r 3: ""D ~ < m s: m z -t m 0 z 0 en en m :::0 iii en N 0 N .i:,. )> CERTIFICATE DEEMING PRELIMINARY OFFICIAL STATEMENT FINAL Re: City of Salina, Kansas, General Obligation Internal Improvement Bonds, Series 2024-A The undersigned is the duly acting Director of Finance of the City of Salina, Kansas (the "Issuer"), and are authorized to deliver this Certificate to the purchaser (the "Purchaser") of the above- referenced bonds (the "Bonds") on behalf of the Issuer. The Issuer has previously caused to be delivered to the Purchaser copies of the Preliminary Official Statement (the "Preliminary Official Statement") relating to the Bonds. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-12(b)(l) of the Securities and Exchange Commission (the "Rule"), the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be final as of its date, except for the omission of such information as is permitted by the Rule, such as offering prices, interest rates, selling compensation, aggregate principal amount, principal per maturity, delivery dates, ratings, identity of the underwriters and other terms of the Bonds depending on such matters. To the knowledge of the Issuer, the information contained in the Preliminary Official Statement, other than the sections entitled 'Toe Depository Trust Company," "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. CITY OF SALINA, KANSAS By:~~ Title: Director of Finance 600596.20255\SALEDOCS LOCALiQ Salina Journal The Hutchinson News The Topeka Capital-Journal PO Box 631367 Cincinnati, OH 45263-1367 AFFIDAVIT OF PUBLICATION Debbie Pack Jo Vanna Rutherford City of Salina City Clerk 300\VestAsh Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 06/05/2024 Sworn to and subscribed before on 06/05/2024 Notary, Stat~ of WT, County of Brown ~-7 • Z; My commission expires Publication Cost: Tax Amount: Payment Cost: Order No: Customer No: PO#: $362.78 $0.00 $362,78 10233431 594307 THIS IS NOT AN INVOICE! Please do not use rhisform for payment remillance. # of Copies: 2 Prlnclcal Pth1cti'l'o, = =· = AuJmHil· 7025 $730,000 2035 i1~,IJ<l<l 2026 885,000 2036 140,(IOO :W,7 9JO,OOO 2037 155,D00 mo 975,000 2038 155,000 202\' 1,o:so.000 203'11 160,000 2030 1,055,000 l0-40 170,000 2031 1,085,000 2041 17S,QCO 2032 1,120,000 20.i2 )11,\,IXO :am 1,160,000 2043 1?5,000 2004 1,195,000 '°" 195,00□ .;:tJ!\M0~!,•,v=; t.~r.i~~f~~!~1he dote fh~reut-,ot rot~t-"to h!" d'l!!1:r;n1n~ :wMn • ll'!• .. aoi,r.J.i;. • .QJ'e .• lfta.ffff 1¥.0-Y.ldil'd_, W.hlch: falut!lit y,fH bo • n ,!.odll.~11<10..liJli-, ltn -~.-1':lilrv•OlifV. ·iv•t• ~~~1~:.l~_r;t,r11:~1il~rl,:";"-{1,!!r;~;h~?·1h--· Slate ,(,1 -t:~11:i~~• T~~.o,.l(ttMp,- .G0.00 F'a,HI pcµ.as-JI-·r.•t~l; tJ,lt> i.hutt tl!I.,. k-11 .Oo m,• tllD,m_,rir.,ilil f,1•11, l.r1 lh• Nil)Hto) bv·~v ~l'ISU '" Ure futm ol Ct C(l~_ltl 111 i:,-r-c:cr,ultd Chi!( on (I bank in itw llriUl)(t Sl1.'1h"' ~ Amcrkti .. trnn.tkc J~ f{e~rl/~ fu11d~. lrtloi:'('ilrdtf't-QVC t:i, Jr· h,.,. \11•·-.fu.-thr ' _"10,~i\t OTIUV'I ·tu·,, 1)1 lh_i: pdw-hipf -~m~uni1 (II l55Uet will PCIV for prepctrn!loo ,of the 8,Qnda ~l~d w!H _deliver ·th~ 1,;nm,, proper-Iv Prl!PQlrcd, excc:\.lled and Tfl'lfS.lairr.i1. wit cvssful bidder-Of\ or about )"1H, 1u1, • • nor 1\·d !"ii. t' ·n1.;.t11-1-'.t. r rn.~ .foft,t.l -c,~r,...rn1 1:-•,L,tf Oti -OJ ti~, 0(1luJ l:\ul1.•, '.S:'ri'j().;,()!!-~ WIii .,. wl<J ,ubloa ,~ lh< ,., n.m.,1 J'f-f~ vm ,~tr, 5'"1}, ·r WtlO!:e-n~i-f'r, -.r,ng lt•t.-tti U_l'Jtld: wiJJ be h,11'f'llsh~ -~~,,1 12cifd for by the ltsu(!r, Prlnled on tile Bonds 41\fi·-dellvttred to the successful bidder as orid Whl'fl tl.e Bonrt5 ore de-livered Ad<tl11Dnol Information, Addilfonol lnforn1otlon regarcling the Bonds. moY be cbtaln~ from the MunldPal Advisor ct lhe Qddres:u~s sci lorlh below: DATED: May 13, 202:-4. l:ssuer -Good Faith Deposit Delivery Address: Debbie Pock, Dfre.ctor of FinonLe ond Adminl~trotion Clly of ~Una~ Kansas 300 West Ash Skeet, Room 206 Solina, Kan!.as 67.1102 Pham: NO,: (785) 309.5735 Fox No,: (78SJ 309-5111 Emall: debble.pcickOsorlna,01·g Munlclpol Advisor -Em<1II Bid DellverY Addr't1ss: Stlrel, Nicolaus & Ccmponv, lncornoroled 400'1 Main Street, Sulle 530, Kcnsas Ci1v, Missouri 64112 AH11; Dov Id Arleberrv Pt,one No.: (616) 203-8733 Emoll: crtebe-rrydOs'tlfe\.com Page 1 of 1 STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, ce1tify that the records of this office reveal the fo11owing: Affidavit of Publication I am the publisher of the Kansas Register, a newspaper published pursuant to K.S.A. 75-430, and the attached is a true copy of the notice that appeared therein on the date given below: June 6, 2024 In Testimony Whereof: I hereto set my hand and cause to be affixed my official seal. Done at the City of Topeka this 6th day of June, A.D. 2024. YJ:Lai- ........... -...... " ................................... , .. , ................................. "'r• """ SCOTT SCHWAB KANSAS SECRETARY OF STATE 858 Kansas Register Bonds Additio I Information t Addition I information _regarding th Bonds m~~ be obtained fro the undersigned, or fr9r the Muruc1pal Advisor at the ddresses set forth bel ,w: Issuer Ford County, sas Attn: Debbie Cox, County Cler Ford County Gove rnent C ter 100 Gunsmoke Dodge City, KS 67801 620-227-4670 Fax: 620-227-4699 dcox@fordcounty.net Municipal Advisor Stifel, Nicolaus & mpany, In orporated Attn: David Arteb rry 4801 Main St., S te 530 Kansas City, M 64112 816-203-8733 Fax: 620-227-699 arteberryd@ tifel.com Dated May 6, 2024. Debbie Cox County Clerk Ford County, Kansas Doc. No. 052184 (Published in the Kansas Register June 6, 1024.) City of Salina, Kansas Summary Notice of Bond Sale (Corrected) $11,835,000* General Obligation Internal Improvement Bonds, Series 2024-A (General Obligation Bonds Payable from Unlimited Ad Valorem Truces) Bids Subject to the Notice of Bond Sale dated May 13, 2024 (the "Notice"), electronic bids submitted through PARITY~ or emailed to the Municipal Advisor at the address below, will be received on behalf of the City of Salina, Kansas (the "Issuer") at 11:00 a.m. (Central Time) June 10, 2024, for the purchase of the above-refer- enced bonds (the "Bonds"). The minimum bid price for the Bonds shall be as specified in the Notice. Bond Details The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds will be dated July 2, 2024, and will become due on October 1 in the years as follows: Year 2025 2026 2027 2028 2029 Principal Amount* $730,000 885,000 930,000 975,000 1,030,000 Year 2035 2036 2037 2038 2039 Principal Amount* $140,000 140,000 155,000 155,000 160,000 2030 2031 2032 2033 2034 1,055,000 1,085,000 1,120,000 1,160,000 1,195,000 "Subject to change, see the Notice 2040 2041 2042 2043 2044 170,000 175,000 185,000 195,000 195,000 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 April 1 and October 1 in each year, beginning on April 1, 2025. Book-Entry-Only System The Bonds shall be registered under a book-entry-only system administered through DTC. Paying Agent and Bond Registrar Treasurer of the State of Kansas, Topeka, Kansas. Good Faith Deposit Each bid shall be accompanied (in the manner set forth in the Notice) by a good faith deposit in the form of a cashier's or certified check drawn on a bank located in the United States of America or a wire transfer in Federal Reserve funds immediately available for use by the Issu- er in the amount equal to 2% of the principal amount of the Bonds. Delivery The Issuer will pay for preparation of the Bonds and will deliver the same properly prepared, executed, and registered without cost to the successful bidder on or about July 2, 2024, to DTC 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 2023 is $587,121,147. The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $77,630,000. Approval of Bonds The Bonds will be sold subject to the legal opinion of Gilmore & Bell, P .C., Wichita, Kansas, Bond Counsel to the Issuer, whose approving legal opinion as to the va- lidity of the Bonds will be furnished and paid for by the Issuer, printed on the Bonds, and delivered to the suc- cessful bidder as and when the Bonds are delivered. Additional Information Additional information regarding the Bonds may be obtained from the Municipal Advisor at the addresses set forth below. Issuer -Good Faith Deposit Delivery Address City of Salina, Kansas Debbie Pack, Director of Finance and Administration 300 W. Ash St., Room 206 Salina, KS 67 402 785-309-5735 Fax: 785-309-5711 debbie.pack@salina.org Municipal Advisor -Email Bid Delivery Address Stifel, Nicolaus & Company, Incorporated O Kan81.o Secn,ta,y of State 2024 Vol. 43, No. 23, June 6, 2024 Bonds/Regulations Kansas Register 859 Attn: David Arteberry 4801 Main St., Suite 530, Kansas City, MO 64112 816-203-8733 arteberryd@stifel.com Dated May 13, 2024. Debbie Pack Director of Finance and Administration City of Salina, Kansas Doc. No. 052199 (Published in the Kansas Register June 6, 2024.) City of Hillsboro, Kansas ummary Notice of Bond Sale $1,560,000"' General Obligation B ds Series 2024 Details of the S le Subject to the t s and requirem ts of the Official No- tice of Bond Sale, ated May 7, 202 , of the City of Hills- boro, Kansas (the' ity''), bids top ·chase the City's Gen- eral Obligation Bon s, Series 2024, (the "Bonds") will be received at the office f the City Cl rk at City Hall, 118 E. Grand, Hillsboro, KS 7063 or by lefacsimile at 620-947- 3482 or electronically a describ in the Official Notice of Bond Sale until 10:00 a. (Centra Time) Tuesday, June 18, 2024. The bids will be co idere by the governing body at its meeting at 6:30 p.m. Cen 1 Time) on the sale date. No oral or auction bids or t e Bonds shall be consid- ered, and no bids for less 100 percent of the total principal amount of the Bo s and accrued interest to the date of delivery shall be nsidered. Good Faith Deposit Bidders must submit a g d ith deposit in the form of a wire transfer or certifie or ca hier' s check made pay- able to the order of the C , or a • ancial surety bond (if then available), in an am unt equ to 2% of the principal amount of the Bonds. Details of the Bonds The Bonds will be ted July 9, 202 and will be issued as registered bonds n denomination of $5,000, or any integral multiple reof. Interest on e Bonds is pay- able semiannually n March 1 and Se ember 1 of each year, beginning ch 1, 2025. Principal f the Bonds be- comes due on Se tember 1 in the years nd amounts as shown below: Maturity Schedule Principal Maturity Principal Maturity Amount* Date Amount* Date $170,000 2027 $200,000 2031 180,00 2028 205,000 2032 185,00 2029 210,000 033 190,0 ,o 2030 220,000 034 .. Amounts subject to change. Payment of Principal and Interest The Treasurer of the State of Kansas will serve as the Bond Registrar and Paying Agent for the Bonds. Book-Entry Bonds The Bonds will be issued and registered under a book-entry-only system administered by The Depository Trust Company, New York, New York (t'D C"), Delive of the Bonds The • ty will prepare the Bonds at its e ense and will deliver t e registered Bonds to OTC on r about July 9, 2024. An bond printing costs will be id by the City from the oceeds of the Bonds or other ity funds. Legal Opi • on The Bond will be sold subject to th legal opinion of Triplett Woo f Garretson, LLC, Wicl ta, Kansas, Bond Counsel, who e fees will be paid by e City. Financial Matt rs The City's cu ent assessed valu ion for purposes of calculating statu ry debt limitati s is $24,133,260. As of July 9, 2024, City's total ou standing general ob- ligation debt (incl ding the Bond ), is $10,783,000*. The City's total indebte ness which i subject to debt limita- tion, as of July 9, 20 4, is estima ed to be $4,812,650.84*, which is 19.94%* oft e assesse valuation of the City. Additional Informati n For additional infor ation ontact the City Clerk at the address and telepho e n her shown below, or the Municipal Advisor, Greg V enberg, Raymond James & Associates, Inc., 11551 A t., Suite 250, Leawood, KS 66211, telephone 816-391-4 0. Doc. No. 052190 State of Kansas Behavioral Article 2. -L City of Hillsboro, Kansas Danielle Bartel, City Clerk City Hall 118 E. Grand Hillsboro, KS 67063 620-947-3162 Fax: 620-947-3482 102-2-6. Pr gram approval. (a) De itions. The fol- lowing terms all be defined as follows: (1) "Core f ulty member'' means an i dividual who is part of the rogram' s teaching staff and ho meets the following co ditions: (A) Is an i dividual whose education, trai ing, and ex- perience a consistent with the individual's role within the progr m and are consistent with the pu lished de- scription f the goals, philosophy, and educa ·onal pur- pose of t e program; (B) is individual whose primary professi nal em- plo1 t is at the institution in which the pr gram is house ; and • (C) • an individual who is identified with the program and i centrally involved in program development, de- cisio . making, and student training as demonstrated by ( continued) Vol. 43, No. 23, June 6, 2024 @ Kanea, Se•retary of Slate 2024 OFFICIAL STATEMENT In the opinion of Gilmore & Bell, P. C., Bond Counsel to the City, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the "Code"): (1) the interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax, {2} the interest on the Bonds is exempt from income taxation by the State of Kansas, (3) the Bonds have not been designated as "qualified tax-exempt obligations" within the meaning of Code Section 265(b)(3). Bond Counsel notes that for tax years beginning after December 31, 2022, interest on the 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. See '7AX MATTERS" in this Official Statement. New Issue Book-Entry Only $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Dated: Date of Delivery (the "Dated Date") Moody's Rating: "Aa3" Due: As Shown Herein The General Obligation Internal Improvement Bonds, Series 2024-A Bonds (the "Bonds") will be issued by the City of Salina, Kansas (the "Issuer" or "City"), as fully registered bonds, without coupons. Purchases of the Bonds will be made in book-entry only form in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). Principal on the Bonds will be payable annually on October 1 in the years shown herein. Interest on the Bonds will be payable semiannually on April 1 and October 1 of each year until maturity or earlier redemption, commencing on April 1, 2025 (the "Bond Interest Payment Date"). The Treasurer of the State of Kansas will be designated as paying agent and registrar or the Bonds (the "Paying Agent" and "Bond Registrar"). The Bonds are subject to redemption at the option of the City as further described h1erein. See "THE BONDS -Redemption Provisions" herein. MATURITY SCHEDULE (see inside front cover) The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See "THE BONDS -Security" herein. The Bonds are offered when, as and if issued by the City and received by the Underwriter subject to the approval of legality by Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the City. It is expected that the Bonds will be available for delivery through the facilities of DTC, in New York, New York, on or about July 2, 2024. This Official Statement is dated June 10, 2024. THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. MATURITY SCHEDULE $10,970,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Serial Bonds Base Principal cus1p111 Maturitll Amount Rate Yield 794744 10-01-25 $645,000 5.000% 3.430% GY2 10-01-26 800,000 5.000 3.350 GZ9 10-01-27 845,000 5.000 3.300 HA3 10-01-28 880,000 5.000 3.300 HBl 10-01-29 925,000 5.000 3.330 HC9 10-01-30 970,000 5.000 3.350 HD7 10-01-31 1,020,000 5.000 3.350 HES 10-01-32 1,070,000 5.000 3.350 HF2 10-01-33(2) 1,130,000 4.000 3.400 HG0 10-01-34(2) 1,170,000 4.000 3.500 HHS 10-01-35(2) 125,000 4.000 3.500 HJ4 10-01-36(2) 130,000 4.000 3.550 HKl 10-01-37(2) 135,000 4.000 3.650 HL9 10-01-38(21 140,000 4.000 3.700 HM7 10-01-39(21 150,000 4.000 3.800 HN5 10-01-40121 155,000 4.000 3.900 HP0 TERM BONDS Base Principal cus1p<1l Maturitll Amount Rate Yield 794744 10-01-42 $325,000 4.000% 4.050% HR6 10-01-44 $355,000 4.000% 4.150% HT2 (ll CUSIP is a registered trademark of the American Bankers Association. CUSIP Global Services ("CGS") is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2023 CUSIP Global Services. CUSIP data herein is provided by CGS. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP numbers are provided for convenience of reference only. None of the Issuer, the Underwriter, or their agents or counsel assume responsibility for the accuracy of such numbers. 121 At the option of the City, Bonds maturing on October 1, 2033 and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2032, and at any time thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the City in such equitable manner as it may determine), at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. [The Term Bonds are also subject to mandatory redemption as described herein.] See "THE BONDS -Redemption Provisions" herein. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE BONDS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE BONDS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE BONDS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STAT'EMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE "FORWARD-LOOKING STATEMENTS" AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS "ESTIMATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER 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. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. CITY OF SALINA, KANSAS City/County Building -Room 206 300WestAsh P. 0. Box 736 Salina, Kansas 67402-0736 (785) 309-5700 CITY COMMISSION Bill Longbine, Mayor Greg Lenkiewicz, Vice Mayor Trent Davis, Commissioner Mike Hoppock, Commissioner Jerry Ivey, Commissioner CITY STAFF Mike Schrage, City Manager Jacob Wood, Deputy City Manager Debbie Pack, Finance Director Nikki Goding, City Clerk CITY ATTORNEY Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas BOND COUNSEL Gilmore & Bell, P.C. Wichita, Kansas MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated Kansas City, Missouri No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Bonds, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein concerning the Issuer has been furnished by the Issuer and other sources which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the date hereof. This Official Statement does not constitute a contract between the Issuer or the Underwriters and any one or more of the purchasers, Owners or Beneficial Owners of the Bonds. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the City from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. TABLE OF CONTENTS Page INTRODUCTORY STATEMENT............................................................................................................. 1 THE BONDS......................................................................................................................................... 1 THE DEPOSITORY TRUST COMPANY................................................................................................... 7 THE FINANCING PLAN......................................................................................................................... 8 SOURCES AND USES OF FUNDS.......................................................................................................... 9 RISK FACTORS AND INVESTMENT CONSIDERATIONS......................................................................... 9 LEGAL MATTERS................................................................................................................................. 12 TAX MATTERS..................................................................................................................................... 13 RATING............................................................................................................................................... 14 MUNICIPAL ADVISOR.......................................................................................................................... 15 UNDERWRITING ................................................................................................................................. 15 ABSENCE OF MATERIAL LITIGATION................................................................................................... 15 CONTINUING DISCLOSURE................................................................................................................. 15 CERTIFICATION OF OFFICIAL STATEMENT.......................................................................................... 16 APPENDIX A: INFORMATION CONCERNING THE CITY FINANCIAL OVERVIEW OF THE CITY.............................................................................................. A-1 GENERAL INFORMATION CONCERNING THE CITY........................................................................ A-2 ECONOMIC INFORMATION CONCERNING THE CITY..................................................................... A-6 DEBT SUMMARY OF THE CITY....................................................................................................... A-9 FINANCIAL INFORMATION CONCERNING THE CITY...................................................................... A-13 APPENDIX B: FORM OF CONTINUING DISCLOSURE UNDERTAKING APPENDIX C: ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDING DECEMBER 31, 2022 APPENDIX D: UNAUDITED FINANCIAL REPORT FOR FISCAL YEAR ENDING DECEMBER 31, 2023 General OFFICIAL STATEMENT CITY OF SALINA, KANSAS $10,970,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A INTRODUCTORY STATEMENT The purpose of this Official Statement is to present certain information concerning the City of Salina, Kansas (the "Issuer" or "City"), and the offering of its $10,970,000 General Obligation Internal Improvement Bonds, Series 2024-A (the "Bonds"). The Bonds are being issued to provide funds to permanently finance certain public improvements with the City. See "THE FINANCING PLAN" herein. The full faith, credit, and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See "THE BONDS -Security" herein. The Appendices are an integral part of this Official Statement and should be read in their entirety. All financial and other information presented herein has been provided by the City and other sources deemed to be reliable. The presentation of information herein is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the City. Stifel, Nicolaus & Company (the "Municipal Advisor") has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel to the City, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the sections captioned "LEGAL MATTERS" and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Definitions Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Bond Resolution (as defined herein). Copies of the Bond Resolution are available upon request to the City or the Municipal Advisor. Additional Information Additional information regarding the City or the Bonds may be obtained from Stifel, Nicolaus & Company, Incorporated, 4622 Pennsylvania Ave, Suite 1210, Kansas City, Missouri 64112, telephone 816-203-8733. THE BONDS Authority The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the state of Kansas, including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-427 et seq., K.S.A. 12-Ga0l et seq, and K.S.A. 12-ll0c, all as amended and supplemented from time to time, an ordinance passed by the governing body of the City and a resolution adopted by the governing body of the City (collectively, the "Bond Resolution"). 1 Security The Bonds shall be general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefitted by the construction of certain public improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Levy and Collection of Annual Tax. Transfer to Debt Service Account The governing body of the Issuer shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Description The Bonds shall consist of fully registered book-entry-only bonds in an Authorized Denomination and shall be numbered in such manner as the Bond Registrar shall determine. All of the Bonds will be dated as of the Dated Date, shall become due in the amounts, on the Stated Maturities, subject to redemption and payment prior to their Stated Maturities, and shall bear interest at the rates per annum set forth on the inside cover page of this Official Statement. The Bonds shall bear interest (computed on the basis of twelve 30-day months) from the later of the Dated Date or the most recent Bond Interest Payment Date to which interest has been paid, on the Bond Interest Payment Dates in the manner hereinafter set forth. Redemption Provisions Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. Mandatory Redemption. (a) 2042 Term Bonds. The 2042 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2042 Term Bonds: Principal Amount $160,000 $165,000 2 Vear 2041 2042 (b) 2044 Term Bonds. The 2044 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements hereinafter set forth at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The payments which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2044 Term Bonds: Principal Amount $175,000 180,000 Year 2043 2044 Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in minimum Authorized Denomination in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption each minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If it is determined that one or more, but not all, of the minimum Authorized Denomination value represented by any Bond is selected for redemption, then upon notice of intention to redeem such minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized Denomination value called for redemption (and to that extent only). Notice and Effect of Call for Redemption. Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Bonds to the Bond Registrar. In addition, the City shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date. All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date {unless the City defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified to the Securities Depository. It is expected that the Securities Depository shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to 3 notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the City shall provide such notices of redemption as are required by the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. Designation of Paying Agent and Bond Registrar The City will at all times maintain a paying agent and bond registrar meeting the qualifications set forth in the Bond Resolution. The City reserves the right to appoint a successor paying agent or bond registrar. No resignation or removal of the paying agent or bond registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or bond registrar. Every paying agent or bond registrar appointed by the City shall at aUtimes meet the requirements of Kansas law. The Treasurer of the State of Kansas, Topeka, Kansas (the "Bond Registrar" and "Paying Agent") has been designated by the City as paying agent for the payment of principal of and interest on the Bonds and bond registrar with respect to the registration, transfer and exchange of Bonds. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transferor exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The City shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The City and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. 4 The interest payable on each Bond on any Bond Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (bl in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. "Record Date" means, for the interest payable on any Bond Interest Payment Date, the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Bond Interest Payment Date. Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall notify the City of such Special Record Date and shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE BOND PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See "THE BONDS -Book-Entry Bonds; Securities Depository." Mutilated. Lost. Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (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 Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall 5 be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Pavments Due on Saturdavs, Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Book-Entry Bonds: Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The City may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): (a) If the City determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or {2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or {b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(l) or (a)(2) of this paragraph, the City, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers. In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the City, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the City. 6 In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the City may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution. THE DEPOSITORY TRUST COMPANY 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered bond will be issued for each scheduled maturity of the Bonds, and will be deposited with DTC. 2. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 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. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for OTC, 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"). 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 OTC 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 OTC 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 OTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of OTC. The deposit of Bonds with OTC and their registration in the name of Cede & Co. or such other OTC nominee do not effect any change in beneficial ownership. OTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 7 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither 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 procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy}. 8. Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Issuer or Paying Agent, on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Paying Agent. The requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Bonds to the Paying Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. 8 THE FINANCING PLAN Proceeds from the sale of the Bonds will be used to provide long term financing for a portion of the costs of certain public improvements within the City (collectively, the "Projects"), pays costs associated with issuing the Bonds, and to pay a $5,000 portion of the October 1, 2024, interest payment on the City's General Obligation Internal Improvement Bonds, Series 2016-A. The Projects are as follows: Project Description Lakeview Estates No. 2 Phase 1 SBD Magnolia Hills Estates No. 2 Phase SBD Wheatland Valley SBD Fire Fighting Apparatus Resolution 22-8028 22-8028 22-8028 23-8169 SOURCES AND USES OF FUNDS Authority (K.S.A) 12-6a01 et seq. 12-6a01 et seq. 12-6a01 et seq. 12-ll0c Principal Amount $534,872.21 688,568.65 1,261,559.14 8,480.000 $10,965,000 Funds to be used in the Financing Plan will be provided and applied approximately as follows. Sources of Funds: Principal Amount Original Issue Premium Prepaid Assessments Total Sources of Funds Uses of Funds: Deposit to Improvement Fund Deposit to Redemption Fund Costs of Issuance Underwriter's Discount, Rounding Amount, Admin Exp. Total Application $10,970,00.00 638,670.25 257,428.10 $11,866,098.35 $11,723,092.91 5,000.00 105,705.00 32,300.44 $11,866,098.35 RISK FACTORS AND INVESTMENT CONSIDERATIONS A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED FROM THE CITY OR THE UNDERWRITER. Legal Matters Various state and federal laws, regulations and constitutional provisions apply to the obligations created by the Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City or the taxing authority of the City. 9 Limitations on Remedies Available to Owners of Bonds The enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights. Debt Service Source; Issuer's Tax Revenues The Bonds are general obligations of the Issuer payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Kansas Legislature (the "Legislature") may from time to time adopt changes in the property tax system or method of imposing and collecting property and/or sales taxes within the State. The effects of such legislative changes could affect the Issuer's property tax and sales tax collections, and the impact could be material. Other future events, such as the loss of a major taxpayer, reductions in assessed value, increases in property tax rates of overlapping taxing units, or a decrease in sales tax revenues could increase effective property tax rates and the resulting increase could be material. Taxpayers may also challenge the value of property assigned by the county appraiser. If a taxpayer valuation challenge is successful, the liability of the Issuer to refund property taxes previously paid under protest may have a material adverse effect on the Issuer's financial situation. See APPENDIX A "FINANCIAL INFORMATION CONCERNING THE CITY -Appraisal and Assessment Procedures." Kansas Public Emplovees Retirement Svstem As described in APPENDIX A "FINANCIAL INFORMATION CONCERNING THE CITY -Pension and Employee Retirement Plans," the Issuer participates in the Kansas Public Employees Retirement System ("KPERS"), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Issuer participates in the Police and Firemen's Retirement System ("KP&F") and the Public Employees Retirement System -Local Group (the "Local Group" collectively KP&F and the local group are referred to as 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' Val~ation Reports, the KP&F had a UAAL of approximately $1.337 billion and Local Group had an UAAL of approximately $1.952 billion in calendar year 2022. Taxation of Interest on the Bonds An opinion of Bond Counsel will be obtained to the effect that interest earned on the Bonds is excludable from gross income for federal income tax purposes under current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the Code, or the rules and regulations thereunder, will not be adversely amended or modified, thereby rendering the interest earned on the Bonds includable in gross income for federal income tax purposes. 10 The City has covenanted in the Bond Resolution and in other documents and certificates to be delivered in connection with the issuance of the Bonds to comply with the provisions of the Code, including those which require the City to take or omit to take certain actions after the issuance of the Bonds. Because the existence and continuation of the excludability of the interest on the Bonds depends upon events occurring after the date of issuance of the Bonds, the opinion of Bond Counsel described under "TAX MATTERS" assumes the compliance by the City with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Bonds in the event of noncompliance with such provisions. The failure of the City to comply with the provisions described above may cause the interest on the Bonds to become includable in gross income as of the date of issuance. Premium on the Bonds The initial offering prices of certain maturities of the Bonds that are subject to optional redemption may be in excess of the respective principal amounts thereof. Any person who purchases such a Bond, whether during the initial offering or in a secondary market transaction, should consider that the Bonds are subject to redemption at par under the various circumstances described under "THE BONDS-Redemption Provisions". No Additional Interest or Mandatory Redemption upon Event of Taxabilitv The Bond Resolution does not provide for the payment of additional interest or penalty on the Bonds or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Bond Resolution does not provide for the payment of any additional interest or penalty on the Bonds if the interest thereon becomes subject to income taxation by the State of Kansas. Suitability of Investment The tax exempt feature of the Bonds is more valuable to high tax bracket investors than to investors who are in low tax brackets, and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment. Market for the Bonds Ratings. The Bonds have been assigned the financial ratings set forth in the section hereof titled "RATING". There is no assurance that a particular rating will remain in effect for any given period of time or that it will not be revised, either downward or upward, or withdrawn entirely, if in the judgment of the agency originally establishing such rating, circumstances so warrant. Any downward revision or withdrawal of any rating may have an adverse affect on the market price of the Bonds. Secondary Market. There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices of Bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Bonds as a result of financial condition or market position of broker- dealers, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Bonds are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices. 11 Recent Legislative Proposals Congress and the President periodically work on various proposals to increase income taxes and to reduce tax deductions and expenditures. These discussions have made it clear that the tax exemption of municipal bonds is considered a tax expenditure and as such there is no guaranty that the tax exempt status on municipal bonds will remain unchanged as a result of these discussions. If a legislative change is enacted which results in all, or a portion, of the interest on the Bonds being subjected to Federal income taxes, such legislation or proposals could affect the value or marketability of the Bonds. Charges by the Kansas Legislature could also impact the State tax-exempt status of the Bonds. Prospective purchasers of the Bonds should consult their own tax advisers regarding the impact of any change in law on the Bonds. 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. Potential Impacts Resulting from Epidemics or Pandemics The Issuer's finances may be materially adversely affected by unforeseen impacts of future epidemics and pandemics, such as the Coronavirus (COVID-19) pandemic. The Issuer cannot predict future impacts of epidemics or pandemics, any similar outbreaks, or their impact on travel, on assemblies or gatherings, on the local, state or global economy, or on securities markets, or whether any such disruptions may have a material adverse impact on the financial condition or operations of the Issuer, including but not limited to the payment of debt service on any of its outstanding debt obligations. LEGAL MATTERS Ali matters Incident to the authorization and issuance of the Bonds by the City are subject to the approval of Gilmore & Beil, P.C., Wichita, Kansas, Bond Counsel to the City. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the City and its certified public accountants, as referred to herein. Bond Counsel has participated in the preparation of the matters appearing in the sections of this Official Statement captioned "THE BONDS", "LEGAL MATTERS", "TAX MATTERS", and APPENDIX B "FORM OF CONTINUING DISCLOSURE UNDERTAKING". 12 TAX MATTERS General The following is a summary of the material federal and State of Kansas income tax consequences of holding and disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Bonds in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Bonds. Opinion of Bond Counsel In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds: Federal Tax Exemption: The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes. Alternative Minimum Tax. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax. Bank Qualification -The Bonds. The Bonds have not been designated as "qualified tax-exempt obligations" for purposes of Code§ 265(b)(3). Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of Kansas. No Other Opinions. Bond Counsel's opinions are provided as of the date of the original issue of the Bonds, subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Bonds. Other Tax Consequences Original Issue Discount. For federal income tax purposes, original issue discount is the excess of the stated redemption price at maturity of a Bond over its issue price. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Bond during any accrual period generally equals (1) the issue price of that Bond, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Bond during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner's tax basis in that Bond. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue 13 discount. Original Issue Premium. For federal income tax purposes, premium is the excess of the issue price of a Bond over its stated redemption price at maturity. The stated redemption price at maturity of a Bond is the sum of all payments on the Bond other than "qualified stated interest" (i.e., interest unconditionally payable at least annually at a single fixed rate). The issue price of a Bond is generally the first price at which a substantial amount of the Bonds of that maturity have been sold to the public. Under Code§ 171, premium on tax-exempt obligations amortizes over the term of the Bond using constant yield principles, based on the purchaser's yield to maturity. As premium is amortized, the owner's basis in the Bond and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Bond prior to Its maturity. Even though the owner's basis is reduced, no federal income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium. Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner's adjusted tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months at the time of sale, exchange or retirement. Reporting Requirements. In general, information reporting requirements will apply to certain payments of principal, interest and premium paid on Bonds, and to the proceeds paid on the sale of Bonds, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner's federal income tax liability. Collateral Federal Income Tax Consequences. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Bonds should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Bonds, including the possible application of state, local, foreign and other tax laws. Bond Counsel notes that for tax years beginning after December 31, 2022, the interest on the 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. RATING Moody's Investors Service, has assigned a rating of" Aa3" to the Bonds. Any explanation of the significance of such rating may be obtained only from said rating agency. There is no assurance that the rating will remain for any given period of time or that it may not be lowered or withdrawn entirely by the rating service if, in their judgment, circumstances so warrant. Any such downward change in or withdrawal of the rating may have an adverse effect on the market price of the Bonds. 14 MUNICIPAL ADVISOR Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri, has acted as Municipal Advisor to the City in connection with the sale of the Bonds. The Municipal Advisor has assisted the Issuer with the preparation of this Official Statement, but has not independently verified the factual and financial information contained herein. The Municipal Advisor has also assisted the City with other matters relating to the issuance of the Securities. The fees of the Municipal Advisor are contingent upon the issuance of the Bonds. UNDERWRITING The Bonds were purchased at public sale by UBS Financial Services, Inc., New York, New York, (the "Underwriter'') at a price equal to the par amount of the Bonds, plus a net premium of $638,670.25, less an underwriting discount of $32,300.44. ABSENCE OF MATERIAL LITIGATION The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of management of the City, any judgment rendered against the City in such proceedings would not materially adversely affect the financial position of the City. The Transcript of Proceedings will contain a certificate of non-litigation dated as of the closing date and executed by the City to the effect that, except as disclosed in the Official Statement, there is no controversy, suit, or proceeding of any kind pending or, to the knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning, disputing, or affecting in any way the legal organization of the City or its boundaries or the legality of any official act shown to have been done regarding the issuance of the Bonds or the constitutionality or validity of the obligation represented by the Bonds or the means provided for the payment of the Bonds. CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated amendments to Rule 15c2-12 (the "Rule"), requiring continuous secondary market disclosure. In connection with the issuance of the Securities, the Issuer will enter into a continuing disclosure undertaking (the "Disclosure Undertaking") wherein the Issuer covenants to annually provide certain financial information and operating data (collectively, the "Annual Report") and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. Pursuant to the Disclosure Undertaking, this Issuer shall, not later than the first day of the seventh month after the end of the Issuer's Fiscal Year, commencing with the year ending December 31, 2023. In the Bond Resolution, the Issuer covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds. For more information regarding the Disclosure Undertaking, see "APPENDIX B - FORM OF CONTINUING DISCLOSURE UNDERTAKING." The Issuer believes it has complied during the past five years with its prior undertakings under the Rule (collectively, the "Prior Undertakings"), except as follows: On September 28, 2020, the Issuer entered into a Loan Agreement with the Kansas Department of Health and Environment to finance improvements to the City's water distribution system. The Ordinance authorizing the Issuer's execution of the Loan Agreement was published on October 1, 2020. On October 16, 2020, the Issuer filed an event notice related to such Loan Agreement. 15 The Issuer's audited financial statements for each of the last five fiscal years have not been available by the filing deadlines set forth in the Prior Undertakings. In compliance with the Issuer's prior disclosure undertakings, the Issuer timely filed unaudited financial statements and promptly filed audited financial statements when they became available. CERTIFICATION OF THIS OFFICIAL STATEMENT The preparation and distribution of this Official Statement has been authorized by the City. This Official Statement is hereby duly approved by the governing body of the City as of the date on the cover page hereof. CITY OF SALINA, KANSAS 16 APPENDIX A FINANCIAL OVERVIEW OF THE CITY 2023 Estimated Actual Valuation (1) 2023 Assessed Valuation Outstanding General Obligation Bonds (2) Population (2022 U.S. Census Bureau Estimate) General Obligation Debt Per Capita Ratio of General Obligation Bonded Debt to Estimated Actual Valuation Ratio of General Obligation Bonded Debt to Estimated Assessed Valuation Outstanding Temporary Notes Outstanding State Loans (3) Outstanding Lease Purchase Obligations Outstanding Utility System Revenue Bonds Outstanding Special Obligation Revenue Bonds Overlapping General Obligation Debt (4) Direct and Overlapping General Obligation Debt (5) Direct and Overlapping General Obligation Debt Per Capita Ratio of Direct and Overlapping Debt to Estimated Actual Valuation Ratio of Direct and Overlapping Debt to Estimated Assessed Valuation $ 3,937,680,501 $ 587,121,147 $ 76,765,000 $ $ $ $ $ $ $ $ $ 45,927 1,671 1.95% 13.07% 0 81,074,838 323,173 7,295,000 18,830,000 167,001,740 324,841,578 7,073 8.25% 55.33% (1) For a further description of how Estimated Actual Valuation is calculated and additional historical figures see the section titled "FINANCIAL INFORMATION CONCERNING THE CITY-Estimated Actual Valuation". (2) Includes the Bonds. (3) The City intends to repay such loans from the net revenues of its municipal water and sewer system. However, such loans are ultimately secured by the City's full faith and credit. See "DEBT SUMMARY OF THE CITY -Current Indebtedness -State Loans". (4) Includes general obligation sales tax bonds issued by Saline County. Although such bonds are ultimately general obligations of the County, their repayment is being provided for by a dedicated countywide sales tax. The sales tax has generated sufficient revenue each year since its inception to provide for all debt service requirements on the bonds. For a more detailed explanation of the overlapping debt of the other jurisdictions, see "DEBT SUMMARY OF THE CITY -Overlapping Debt." (5) Includes outstanding general obligation bonds, temporary notes and state loans of the City and general obligation bonds of overlapping jurisdictions. A-1 GENERAL INFORMATION CONCERNING THE CITY Location and Size The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas, with a 2023 U.S. Census Bureau estimate of 45,927. The City is the county seat for Saline County, which had an estimated 2023 U.S. Census Bureau population of 53,303. Situated at the intersection of Interstate Highways 70 and 135, the City of Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. Kansas City, Kansas, and Wichita, Kansas, are 175 and 95 miles away, respectively, via the direct access of these two major highways. The City encompasses a total area of approximately 23 square miles. Government The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas. The City has had a Commission-City Manager form of government since 1921. The Commission comprises five members elected at-large. Each year the Commission chooses one member to act as Mayor. The City Manager is appointed by the Governing Body and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The Governing Body is responsible for the policy determination, and the City Manager is responsible for the administration of the municipal government. Salina became a City of the first class on July 9, 1920. There are no organized city employee unions. The present elected officials of the City, along with the expiration of their current terms of office, are as follows: Population Name Bill Longbine Greg Lenkiewicz Trent W. Davis, M.D. Mike Hoppock Jerry Ivey Title Mayor Vice Mayor Commissioner Commissioner Commissioner Term Expires 2026 2026 2026 2028 2028 The City of Salina anchors the Salina micropolitan statistical area, the sixth largest statistical area in Kansas as delineated by the Office of Management and Budget. Accord ing to the U. S. Census Bureau, the City's citizens had a median age of 39 years in 2023. The following table and graph show the population for the City for selected years as provided by the U.S. Census Bureau. Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 A-2 U.S. Census Bureau Population 45,927 46,868 46,481 46,803 46,550 46,716 46,994 47,336 47,813 47,867 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. Educational Facilities The City of Salina has a very complete and diverse educational system from the primary level up to its higher educational institutions. Unified School District No. 305 provides public education through its eight elementary, two middle, and two senior high schools. The District also operates alternative education, vocational-technical, and special education schools. Current enrollment is approximately 6,600. 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 800 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 800 students, the majority from Kansas and surrounding states. The school, based on a liberal arts foundation, offers more than 50 major programs, including graduate studies. Evening degree completion programs for adults are also available. Kansas Wesleyan is a member of the Associated Colleges of Central Kansas, a consortium of six academic institutions within 70 miles of the University through which students may enroll in courses and utilize resources. The University of Kansas School of Medicine and School of Nursing have a campus in Salina. This campus is aimed at students with a strong desire to practice medicine in rural areas. The School of Medicine has approximately 30 students and the School of Nursing has approximately 50 students. The Kansas Center for Rural Health, started in 2022, is also located on the campus. The Kansas Center for Rural Health is focused on improving health disparities and outcomes in rural Kansas through research, education and service. Transportation In addition to 1-70 and 1-135, US-81 and US-40 also intersect Salina. Several freight companies provide motor freight service in Salina with direct and connecting schedules to all cities in the United States. Bus service is available at regular intervals during each day in all directions. Union Pacific gives the City rail service in four directions out of the City and provides daily package-car service in and out of Salina. There are approximately 8 daily freights stopping in the City. Existing terminals have adequate capacity to handle present and greatly increased future capacity. Approximately 30 miles of storage tracks are available. The City is served by the Salina Regional Airport and scheduled air service is provided by United Airlines. The airline offers regularly scheduled passenger air service to Denver International Airport and Chicago O'Hare International Airport. A-3 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. Multiple phone and internet service providers are available in the City. Health Facilities The City is served by Salina Regional Health Center ("SRHC"), a 393-bed 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 Pension and Employee Retirement Plans The City 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, 2022, KPERS serves approximately 340,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees: (a) Kansas Public Employees Retirement System; (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 . A-4 (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 City'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 2004, 2015 and 2021, the Kansas Development Finance Authority, on behalf of the State, issued pension obligation bonds and contributed the proceeds thereof to KPERS to assist with improving the status of the unfunded actuarial pension liability. In 2022 the Legislature provided for additional contributions totaling $1.125 billion in four payments to be deposited into the KPERS trust fund for the School Group. For more information about the Legislature's actions related to KPERS, please see the 2022 Valuation Report referenced below. The City'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 City's contribution is 8.43% of the employee's gross salary for calendar year 2023, and is projected to change to 9.26% of the employee's gross salary for calendar year 2024. In addition, the City 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, 2022 (the "2022 Valuation Report") the KPERS Local Group, of which the City is a member, carried an unfunded accrued actuarial liability ("UAAL") of approximately $1.952 billion at the end of 2022. The amount of the UAAL in 2022 changed from the previous year's amount due to the factors discussed in the 2022 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 2022 Valuation Report is available on the KPERS website at kpers.org/about/reports. The City has no means to independently verify any of the information set forth on the KPERS website or in the 2022 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 2022 Valuation Report sets the employer contribution rate for the period beginning January 1, 2025, for the KPERS Local Group, and KPERS' actuaries identified that an employer contribution rate of 9.60% 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 2022 Valuation Report. The statutory contribution rate of employers currently equals the 2022 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 City has established membership in the Kansas Police and Fire Retirement System ("KP&F") for its police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases. According to the 2021 Valuation Report, KP&F carried an UAAL of approximately $1.140 billion at the end of 2021. For KP&F, the City's employees currently annually contribute 7.15% of their gross salary to the plan. For the year beginning January 1, 2023, the City contributes 22.86% of employees' gross salary, and is projected to change to 23.10% of the employee's gross salary for calendar year 2024. The City 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 City. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The City has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 A-5 Report. It is important to note that under existing State law, the City has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. Other Information Public recreation facilities available to city residents include 26 parks, a public golf course, baseball/softball fields, the Kenwood Cove Aquatic Park, the Stifel Theatre for the Performing Arts, the Salina Community Theater, two museums and tennis courts. Two private clubs provide additional recreational opportunities for residents of the City. The Tony's Pizza Events Center (formerly the Bicentennial Center), a 7,500-seat facility, with over 40,000 square feet of exhibit space, nicknamed "Mid-America's Meeting Place", provides a venue for the region's numerous concerts, exhibitions, conventions, and other events are also held in the Center. There are several radio stations in the City. Five standard television stations from Wichita serve the Salina area. Additionally, Cox Communications provides cable television and broadband internet service to subscribing customers. One public library with over 230,000 volumes, two college libraries, a medical library, and a law library are located within the City. ECONOMIC INFORMATION CONCERNING THE CITY The City of Salina benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the City. Such companies include Schwan's Global Supply Chain, Inc., Vortex Global, GeoProbe Systems, Bergkamp Inc., Kasa Controls and Automation, Coperion K-Tron, Great Plains Manufacturing/Kubota, PKM Steel Service, Crestwood Cabinets, McShares, Inc., Pepsi Bottling, Rev Group, Stryten Energy, Advance Auto Parts Distribution Center, and Superior Contracting. 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. According to the Economic Impact Report, from 2020 prepared by the Docking Institute of Public Affairs at Fort Hays State University and published in May 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 17.6% of the employment in Saline County and 42% of the total economic activity in a seven-county area. The Kansas Department of Labor estimated the civilian labor force in the City of Salina for the year 2023 to be 25,352 persons. The estimated median household income for the City in 2022 was $52,702, and owner-occupied housing rates in the City were 64.4%. Salina is a city centered more on industry than agriculture. Currently, there are approximately 100 manufacturing and processing companies located in the City. The City, Saline County, the Chamber of Commerce, and the Salina Airport Authority have developed several economic incentives which can be offered as inducements to opening industrial facilities. These include property tax abatement for basic industry, the waiving of building A-6 permit and inspection fees, refunding of sales tax paid on machinery and equipment, and providing training for employees through the Salina Area Technical College and the Kansas State University at Salina. Additionally, a "build- to-suit-tenant" agreement is available on sites in the Airport Industrial Center that can provide 100% financing for land and building costs. In recent years, Dillon Companies, Inc., a subsidiary of Kroger Company, recently opened a 77,000 square foot 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. The Salina Airport Authority The Salina Airport Authority (the "Authority") is a body corporate and politic. The Authority was created by the City of Salina in April 1965 pursuant to the authority granted 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. 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 2023, the Salina Air Traffic Control Tower logged over 81,000 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 2.069 million gallons of fuel to the wide variety of aircraft utilizing the Airport during 2023 and 453,894 as of March 2024. 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 2023 the Salina Airport recorded 15,734 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. A-7 Major Employers Industrial development during the past ten years has established a broad, industrial base in and around the City. A list of the major employers is as follows. All figures represent total full-time employment excluding seasonal and part-time employees. Name Salina Regional Health Center Unified School District No. 305 Great Plains Manufacturing Schwa n's Global Supply Chain, Inc. Stryten Manufacturing City of Salina Salina Vortex Saline County St. Francis Ministries Wal-Mart Source: Salina Chamber of Commerce Income Product/Business Healthcare School System Agricultural & Landscaping Equipment Manufacturing Battery Manufacturer City Government Manufacturing Local Government Discount Retail Retail Estimated Employment 1,900 1,600 950 900 800 440 405 335 300 250 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 Source: Kansas Statistical Abstract Labor Force Saline County N/A $53,320 50,099 49,201 47,632 State of Kansas $59,324 56,099 53,203 51,139 49,033 The following tables show the labor force figures for the City of Salina and the State of Kansas. City of Salina: Total Unemployment Year Labor Force Employed Unemployed Rate 2024 (Apr) 25,099 24,489 610 2.4% 2023 25,352 24,873 479 1.9 2022 25,651 25,011 640 2.5 2021 25,029 24,236 793 3.2 2020 25,105 23,673 1,432 5.7 2019 25,643 24,847 796 3.1 2018 25,685 24,784 781 3.1 2017 26,055 25,198 857 3.3 2016 26,194 25,170 1,024 3.9 2015 26,308 25,286 1,022 3.9 A-8 State of Kansas: Total Unemployment Year Labor Force Emplolfed Uneml!IOlled Rate 2024 (Apr) 1,506,604 1,465,553 41,051 3.0% 2023 1,510,988 1,470,936 40,052 2.7 2022 1,504,932 1,464,834 40,098 2.7 2021 1,500,677 1,451,204 49,473 3.3 2020 1,497,003 1,408,995 88,008 5.9 2019 1,486,620 1,439,563 47,057 3.2 2018 1,491,587 1,445,819 45,768 3.1 2017 1,478,783 1,425,216 53,567 3.6 2016 1,484,001 1,422,122 61,879 4.2 2015 1,493,782 1,431,533 62,249 4.2 Source: Kansas Department of Labor DEBT SUMMARY OF THE CITY Current Indebtedness The following is an overview of the City's outstanding indebtedness by classification as of the dated date of the Bonds. Figures do not include bonds for which payment has been provided through the creation of designated escrow accounts. General Obligation Bands: Date Amount Final Amount Issued Series Purpose of Issue Maturitll Outstanding 02-15-13 2013-A Taxable Improvements $1,360,000 10-01-28 $535,000 07-29-15 2015-A Revenue and Internal Imp. 6,825,000 10-01-35 4,035,000 07-27-16 2016-A Internal Improvements 6,570,000 10-01-36 4,620,000 07-27-16 2016-B Refunding 13,750,000 10-01-31 6,270,000 07-27-17 2017-A Improvements 9,310,000 10-01-37 7,085,000 11-27-18 2018-A Improvements 2,090,000 10-01-33 1,510,000 04-24-19 2019-A Improvements 11,090,000 10-01-39 9,570,000 04-29-20 2020-A Improvements 5,210,000 10-01-35 3,540,000 11-30-20 2020-B Refunding 8,450,000 10-01-36 6,115,000 04-29-21 2021-A Improvements 7,645,000 10-01-41 7,100,000 09-08-21 2021-B Refunding 6,220,000 10-01-34 5,010,000 04-28-22 2022-A Improvements 7,840,000 10-01-42 7,450,000 08-17-23 2023-A Internal Improvements 2,955,000 10-01-43 2,955,000 07-02-24 2024-A Internal Improvements 10,970,000 10-01-44 10,970,000 Total $76,765,000 A portion of the City's outstanding general obligation bonds are payable from special assessments levied upon properties benefited by certain internal improvement projects, local option sales tax, and transfers from enterprise funds of the City. If such payments are not provided in a timely manner, the principal of and interest on the bonds must then be paid from the City's ability to levy unlimited ad valorem taxes. See "FINANCIAL INFORMATION -Special Assessments" for a further description of special assessment financing. Temporary Notes: None A-9 Utility System Revenue Bonds: Revenue bonds are payable solely from the net revenues derived by the City from the operation of its combined water and sewage system. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturitv Outstanding 09-11-19 Water and Sewer System 2019 $10,330,000 10-01-31 $7,295,000 Lease Obligations: Year Original Final Amount Item Issued Amount Year Outstanding HVACSystem 2012 $1,100,000 2027 $323,173 Special Obligation Revenue Bonds: The following special obligation revenue bonds are payable solely from sales tax collected within certain special districts in the City. Revenue bonds do not represent a general obligation indebtedness of the City for which the City's taxing ability has been pledged. (to be updated) Date Pledged Amount Final Amount Issued Revenue Series of Issue Maturitll Outstanding 12-21-18 Sales Tax Revenue 2018-A $18,250,000 12-01-38 $14,510,000 12-21-18 Sales Tax Revenue 2018-B 4,320,000 12-01-38 4,320,000 Total: $18,830,000 State Loans The following is a list of outstanding loans the City has taken out through the Kansas Department of Health and Environment ("KDHE") revolving loan fund program. KDHE loans are typically repaid by net revenues from municipal water or sewer systems. Regardless of the intended source of repayment, the loans are ultimately secured by the City's ability to levy unlimited ad valorem property taxes. Project Vear Final Original Amount_ Number Pur~ose Originated PaY:ment Date Amount Outstanding KDHE 2629 Water 2014 08-01-34 $8,562,911 $4,696,122 KDHE 2917 Water 2019 02-01-40 32,000,000 26,728,024 KDHE 2957 Water 2019 02-01-40 4,250,000 3,549,816 KDHE 2998 Water 2019 02-01-40 4,250,000 3,782,582 KDHE 2050 Sewer 2020 03-01-35 1,399,012 818,294 KDHE 2049* Sewer 2021 09-01-42 41,500,000 41,500,000 $81,074,838 *Construction began on this project in 2023 and is expected to be completed in 2026. The Original Amount shown above is the maximum authorized loan amount which is subject to change. As of July 13, 2023, the City has drawn down $20,236,478 of the authorized amount. A-10 Overlapping Debt According to the Saline County Clerk's office and audited financial statements, the following table shows the overlapping general obligation indebtedness of the City. The percent of an overlapping jurisdiction's debt that is applicable to the City is calculated by dividing the assessed valuation of that portion of the jurisdiction's boundaries which overlap those of the City by the total assessed valuation of such jurisdiction. Jurisdiction Salina Airport Authority Saline County!2l Unified School District No. 305 Amount Outstanding111 $32,960,000 70,344,519 87,070,000 Estimated Share of the City Amount Percentage $32,960,000 100.00% 52,796,409 75;05 81,245,331 93.31 $167,001,740 (l) As of the closing date of the Bonds. (i) Includes $69,845,000 of bonds issued by Saline County the security of which includes a pledge of both property taxes and a dedicated 0.50% countywide retailers' sales tax of the County. The bonds have historically been repaid entirely from the collections of the sales tax and the County anticipates that the bonds will continue to be so paid in the future. Annual Debt Payments The following is a list of annual debt service requirements for the City's currently outstanding general obligation bonded indebtedness. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2024-A Bonds Year Prlncipal Interest Principal Interest Total 2024 6,450,000 1,882,815 $645,000 $636,520 $9,614,335 2025 6,215,000 1,679,566 800,000 478,100 9,172,666 2026 5,540,000 1,494,896 845,000 438,100 8,317,996 2027 5,360,000 1,325,539 880,000 395,850 7,961,389 2028 5,115,000 1,163,904 925,000 351,850 7,555,754 2029 4,885,000 1,006,696 970,000 305,600 7,167,296 2030 4,210,000 870,846 1,020,000 257,100 6,357,946 2031 4,160,000 757,319 1,070,000 206,100 6,193,419 2032 4,105,000 643,974 1,130,000 152,600 6,031,574 2033 4,095,000 534,998 1,170,000 107,400 5,907,398 2034 3,670,000 423,701 125,000 60,600 4,279,301 2035 3,520,000 328,213 130,000 55,600 4,033,813 2036 2,835,000 233,388 135,000 50,400 3,253,788 2037 1,940,000 156,825 140,000 45,000 2,281,825 2038 1,210,000 99,550 150,000 39,400 1,498,950 2039 1,240,000 66,200 155,000 33,400 1,494,600 2040 510,000 32,050 160,000 27,200 729,250 2041 520,000 19,850 165,000 20,800 725,650 2042 170,000 7,350 175,000 14,200 366,550 2043 45,000 1,800 180,000 7,200 234,000 $65,795,000 $12,727,679 $10,970,000 $3,683,020 $93,177,499 * Includes payments made prior to the closing date of the Bonds. A-11 Historical Debt Information The following table shows historical balances of outstanding general obligation bonds for the City during the period indicated below. Bonds Debt to Debt to U.S. Debt Outstanding Assessed Estimated Actual Census Per Year December 31 Valuation Valuation Population Capita 2023 $65,795,000 11.21% 1.67% 45,927 $1,432.60 2022 69,145,000 12.37 1.87 46,868 1,475.31 2021 59,582,649 11.54 1.76 46,481 1,281.87 2020 65,330,000 12.79 1.96 46,803 1,395.85 2019 58,170,000 11.53 1.78 46,550 1,261.22 2018 54,885,000 11.25 1.74 46,716 1,174.87 2017 59,985,000 12.46 1.94 46,994 1,276.44 2016 56,875,000 12.03 1.87 47,336 1,201.52 2015 57,535,000 12.43 1.94 47,813 1,203.33 Future Indebtedness The City annually prepares a multi-year capital improvements plan. This plan identifies and prioritizes potential capital improvement projects within the City and includes the respective funding sources. The latest capital improvements plan includes approximately $36 million of projects to be funded with general obligation debt over the next five calendar years. The plan does not include future residential subdivision improvement projects which might be financed with general obligation bonds payable as to both principal and interest in part from special assessments levied upon the benefitted property. The City typically undertakes such projects after receiving and reviewing a valid petition from property owners. See "FINANCIAL INFORMATION -Special Assessments". Debt Payment Record The City has always met principal and interest payments on all outstanding bonds and temporary notes when due and payable. Legal Debt Limits Cities within Kansas are permitted to issue bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. Bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities, including storm and sanitary sewer systems; bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property; bonds for bridges as authorized by a vote of the electors of a city; bonds issued to refund outstanding bonds; and bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city's debt limitation. A-12 FINANCIAL INFORMATION CONCERNING THE CITY Accounting, Budgeting and Auditing Procedures The City follows a modified accrual basis of accounting for all tax supported funds of the City, including the General Fund. An annual budget of estimated receipts and disbursements for the coming calendar year is required by statute to be prepared for all funds (unless specifically exempted). The budget is prepared utilizing the modified accrual basis which is further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The budget lists estimated receipts by funds and sources and estimated disbursements by funds and purposes. The proposed budget is presented to the governing body of the City prior to August 1, with a public hearing required to be held prior to August 15, with the final budget to be adopted by a majority vote of the governing body of the City prior to August 25 of each year (or September 20 if the City must conduct a public hearing to levy taxes in excess of its revenue neutral rate described below). Budgets may be amended upon action of the governing body after notice and public hearing, provided that no additional tax revenues may be raised after the original budget is adopted. The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. In 2021, the Kansas Legislature passed legislation (the "Revenue Neutral Tax Act") that repeals the "tax lid" (formerly K.S.A. 79-2925c) and provides that, beginning January 1, 2021, a taxing subdivision (which includes any political subdivision of the State that levies an ad valorem property tax, including the City) is not authorized to levy a property tax rate in excess of its revenue neutral rate without first providing notice, holding a public hearing, and authorizing such property tax rate by majority vote of its governing body. The revenue neutral rate means the tax rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation. The Revenue Neutral Tax Act provides that by June 15 of every year, each county clerk shall calculate the revenue neutral rate for each taxing subdivision in their respective county. If a taxing subdivision desires to levy a tax rate in excess of its revenue neutral rate, it must first publish notice of a public hearing and notify the county clerk of the taxing subdivision's intent to exceed the revenue neutral rate. The county clerk is required to provide notice of the public hearing to each taxpayer with property in the taxing subdivision, along with following information concerning the taxing subdivision: (1) the revenue neutral rate, (2) the proposed property tax revenue needed to fund the proposed budget, (3) the proposed tax rate based on the proposed budget, (4) the tax rate and property tax of each taxing subdivision on the taxpayer's property from the previous year's tax statement, (5) the appraised value and assessed value of the taxpayer's property, (6) estimates of the tax for the current tax year on the taxpayer's property based on the revenue neutral rate of each taxing subdivision and any proposed tax rates that exceed the revenue neutral rates, (7) the difference between the estimates of tax based on the proposed tax rate and the revenue neutral rate. The public hearing regarding exceeding the revenue neutral rate is to he held between August 10 and September 10, and can be held in conjunction with the taxing subdivision's budget hearing. If multiple taxing subdivisions within the county are required to hold a public hearing, the notices to the taxpayer can be combined into a single notice. After the public hearing, the taxing subdivision can approve exceeding the revenue neutral rate by a majority vote of its governing body, and the amount of tax to be levied must be certified to the county clerk by September 20. The taxing subdivision's adopted budget shall not result in a tax rate in excess of its proposed rate stated in the notice provided to the taxpayers. If a taxing subdivision fails to comply with the requirements of the Revenue Neutral Tax Act, it shall refund to the taxpayers any property taxes over collected based on the amount of the levy that was in excess of the revenue neutral rate. The City cannot predict the impact of the Revenue Neutral Tax Act on the ratings on the Securities, or the general rating of the City. A change in the rating on the Securities or a change in the general rating of the City may adversely impact the market price of the Securities in the secondary market. A-13 Kansas law prohibits governmental units from creating indebtedness unless there are funds on hand in the proper accounts and unencumbered by previous action with which to pay such indebtedness. An exception to this cash-basis operation is made where provision has been made for payment of obligations by bonds or other specific debt obligations authorized by law. The financial records of the City are audited annually by a firm of independent certified public accountants in accordance with generally accepted auditing standards. In recent years, the annual audit has been performed by Gordon Certified Public Accountants, Lawrence, Kansas. The 2022 audit was performed by FORVIS, LLP. Copies of the audit reports for the past five (5) years are on file in the Clerk's office and are available for review. The audit for the Fiscal Year ended December 31, 2020 is attached hereto as APPENDIX C. There can be no guarantee that the information included in such unaudited financial statements will not materially change when subject to audit. The City has historically prepared a Comprehensive Annual Financial Report, which includes audited financial statements and other pertinent credit information. Appropriate periodic credit information necessary for maintaining the ratings on the Bonds will be provided by the City to the rating agencies rating the Bonds. The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments in June 1999 ("Statement 34"), which established new requirements for the annual financial reports of state and local governments. Among the major changes embodied in Statement 34, governments will now be required to: (a) report on the overall state of the government's financial health, not just its overall "funds" in a newly required Management's Discussion and Analysis (MD&A), (b) provide the most complete information available about the cost of delivering services to their citizens in the annual report which will now also include financial statements prepared using full accrual accounting for all of the government's activities, (c) include information about the government's public infrastructure assets - such as bridges, roads and storm sewers, and (d) prepare an introductory narrative section analyzing the government's financial performance. The City has implemented Statement No. 34 in its financial statements. The financial information contained in the Appendices to this Official Statement are an integral part of this document and are intended to be read in conjunction herewith. Financial Statement Summary The following is a summary of the combined revenues, expenditures, and fund balances for the City's General Fund for the most recent years as shown in the City's Comprehensive Annual Financial Reports. This summary has not been prepared or reviewed by the City's auditor. Audited Audited Audited Audited Revenues: 2019 2020 2021 2022 Property Taxes $10,801,226 $11,497,684 $10,820,524 10,554,177 Sales Tax 13,418,742 13,697,179 16,853,083 18,467,819 Other Taxes 5,086,492 4,925,381 5,351,559 6,028,427 Intergovernmental 1,351,967 2,453,021 1,144,657 1,184,485 Charges for Services 5,816,485 4,942,217 5,841,900 6,580,579 Investment Revenue 613,249 256,515 78,253 206,496 Miscellaneous 609.676 981.845 719.637 832.136 Total Revenues $37,778,837 $38,753,842 $40,539,613 $43,467,320 Expenditures: General Government $4,581,505 $5,505,967 $5,629,698 $6,783,483 Public Safety 23,692,445 22,435,061 23,214,758 24,824,641 Public Works 5,473,414 5,101,204 5,464,894 5,846,877 Public Health and Sanitation 816,636 682,439 746,880 800,884 Culture and Recreation 4,379,441 3,037,594 3,732,377 4,025,077 Planning and Development 836,690 673,564 55,174 702,721 Capital Outlay 985,861 608.460 675.363 372.260 A-14 Total Expenditures $40,765,992 $38,044,289 $39,519,144 $43,355,943 Revenues Over (Under) $(2,987, 155) $709,553 $1,020,469 $498,176 Other Sources (Uses) 5,551,752 4,929,300 4,900,800 4,266,300 Net Change in Fund Balance 2,564,597 $5,638,853 $5,921,269 $4,764,476 Fund Balance January 1 $6,742,577 $9,503,410 $15,142,263 $21,063,532 Restatement of Prior Year Balance 0 0 0 0 Fund Balance December 31 $9,307,174 $15,142,263 $21,063,532 $25,828,008 Assessed Valuation According to the Saline County Clerk's Office, the following table gives the November 1 assessed valuation of the City, unless otherwise noted, in the years indicated. State Total Real Personal Assessed Motor Assessed Year Estate Pro~ertit Utilities Vehicle Valuation 2023 $499,863,443 $8,546,299 $23,037,764 $55,673,641 $587,121,147 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 9,353,057 23,436,340 54,589,132 510,951,650 2019 421,108,311 11,245,813 22,113,195 54,687,311 509,154,630 2018 403,835,383 10,130,718 20,485,144 53,336,677 487,787,922 2017 399,918,216 10,900,308 19,671,685 50,970,796 481,461,005 2016 389,872,825 11,653,719 19,323,055 51,833,505 472,683,104 2015 381,087,426 12,607,815 18,984,453 50,350,566 463,030,260 2014 376,131,346 13,652,885 17,670,147 48,865,900 456,320,278 Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes, real estate equalization ratios provided by the Kansas Department of Revenue (see "FINANCIAL INFORMATION CONCERNING THE CITY -Property Assessment Rates"), and estimated actual valuation figures provided by the Saline County Appraiser's Office, the following table provides November 1 estimated actual valuations for the City in the years indicated. Year 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Residential Real Estate Equalization Ratio N/A 10.48 10.87 10.79 11.44 11.17 11.04 11.36 11.28 11.65 A-15 Estimated Actual Value $3,937,680,501 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 Special Assessments The City has pursued a policy of utilizing special benefit districts to assign the cost of certain internal improvement projects to the property that directly benefits from the construction. Kansas statutes allow for the creation of special benefit districts to pay for the cost of a variety of improvements including street construction, storm water drains, sanitary sewer system improvements, street lighting, water system improvements, recreational facilities, flood control projects, bridges, and parking facilities. The City has typically utilized special benefit districts to pay for the costs associated with constructing streets, sidewalks, curbs, gutters, and lighting in new residential developments within the City. When a developer requests the use of Special Assessments to finance public improvements, the City requires that they pay 20% of the estimated cost of the project in cash, or file a letter of credit equivalent to 35% of the estimated cost of the project. The letter of credit is released when Certificates of Occupancy have been issued for 35% of the lots in the development. The creation of special benefit districts, the determination of property benefited, and the method of allocating the cost of the improvement is at the discretion of the City. Property owners have the ability to suggest improvements through a petition process and to comment on the final amount of their assessment. The City may or may not be included as part of the special benefit district. All property owners have the option to pay their portion of the improvement cost with a one-time payment during a 30-day assessment prepayment period or pay in annual installments with interest over a certain number of years. Upon completion of the special benefit district improvement projects and a 30-day prepayment period, the City issues general obligation bonds to provide for permanent project financing. The payment of the principal of and interest on such bonds is paid from the special assessments levied annually on the benefited property. Special assessments are paid at the same time and in the same manner as ad valorem property taxes. If at any time the special assessments received from the property owners are insufficient to provide for the payment of the principal of and interest on the bonds, the City is obligated to provide for the balance of such payments through its ability to levy unlimited ad valorem property taxes. Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county treasurer at the time of the vehicle's annual registration. Vehicle registration dates are assigned by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the years shown. A-16 Current Current and Delinquent Levy Tax Taxes Tax Collections Tax Collections Year Rate Levied Amount ~ Amount ~ 2023* 30.348 $17,087,434 $10,721,698 62.7% $10,728,464 62.8% 2022 30.348 16,777,459 16,086,452 96.0 16,099,745 96.1 2021 30.452 15,125,318 15,125,318 98.3 15,310,315 99.5 2020 30.650 15,028,646 15,028,646 98.7 15,045,546 98.8 2019 29.720 14,538,092 14,538,092 97.2 14,732,831 98.6 2018 28.394 13,427,810 13,427,810 97.4 13,590,888 98.6 2017 26.129 12,381,334 12,381,334 97.3 12,602,044 99.0 2016 27.603 11,564,876 11,320,197 97.9 11,524,101 99.6 2015 27.311 11,209,245 10,984,630 98.0 11,169,600 99.6 *Represents collections through April 2024. Tax Levies Nov Nov Nov Nov Nov 2019 2020 2021 2022 2023 ~ ~ ~ ~ ~ City of Salina 29.720 30.650 30.452 30.348 29.616 Salina Library 5.913 5.880 6.028 5.510 5.614 State Education & Other 1.500 1.500 1.500 1.500 1.500 Unified School District No. 305 55.508 55.454 54.903 53.425 54.461 Airport Authority 4.447 5.037 4.838 4.968 6.190 Central Kansas Extension District 1.198 1.206 1.196 1.111 1.057 Saline County 41.097 40.606 39.782 38.860 39.867 Total 139.383 140.333 138.699 135.722 138.305 Largest Taxpayers According to the Saline County Clerk's Office, the following table lists the largest taxpayers in the City, their November 2023 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. %of Type of Assessed Total Company Business Valuation Valuation Evergy, Inc. Utility $13,690,289 2.33% SFC Global Supply Chain Inc Manufacturing 7,345,168 1.25 Kansas Gas Service Utility 5,935,323 1.01 RAF Salina LLC Retail Shopping Center 3,986,505 0.68 Lighthouse Properties Ill, Inc. Hotel 3,234,863 0.55 S&B Motels Motel 2,991,301 0.51 Salina Regional Health Properties Medical 2,589,001 0.44 Union Pacific Railroad Co. Railroad 2,407,233 0.41 Dominion Resources LLC Retail 2,163,076 0.37 Wal-Mart Real Estate Retail 2,030,050 0.35 Total $46,372,818 7.90% A-17 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: *March 2024 Sales Tax Year 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 ~ $19,243,675 144,278,110 211,832,283 27,383,463 27,706,623 20,544,765 71,862,718 59,975,197 97,910,328 56,989,007 Sales tax collections are the responsibility of the Kansas Department of Revenue. The Department of Revenue distributes the local option countywide and citywide sales taxes on a monthly basis. Except as set forth below, Countywide sales taxes are distributed between the levying county and the cities located within the county based on population and relative tax levies. Citywide local option sales taxes are distributed solely to the levying city. Statewide sales taxes are retained entirely by the state. In 1982 the voters of Saline County approved a 1.00% countywide local option sales tax. In 1992 voters of the City approved a local option 0.50% citywide sales tax for purposes of helping fund general operations expenditures of the City. Both of these taxes were approved in perpetuity. In May of 2016, voters in the City approved a 0.75% citywide retailers sales tax that will be in existence for 20 years and will be used for capital improvements and economic development (the "2016 Sales Tax"). The 2016 sales tax replaced an existing sales tax of 0.40%. In November of 2020, the voters of Saline County approved an additional 0.50% countywide local option sales tax, the revenues derived from which are dedicated to paying the costs of a new Criminal Justice Complex, such sales tax shall terminate when all costs associated with the Criminal Justice Complex project have been paid, including the retirement of any bonds issued therefor (the "2020 Sales Tax"). No portion of the revenues derived from the 2020 Sales Tax will be distributed to the City. The total sales tax for goods and services in the City Is 9.25%, which consists of 6.5% imposed by the State, 1.5% countywide local option sales tax, and 1.25% citywide local option sales tax. The following table lists the local- option sales tax receipts of the City of Salina in the years indicated. A-18 Year 2024ll) 2023 2022 2021 2020 2019 2018 2017 201612) 2015 Citywide Local Option Sales & Use Tax Receipts $7,836,437 19,068,649 18,526,850 16,971,338 15,160,656 14,922,405 14,632,584 14,404,702 10,458,630 10,372,573 City's Portion of 1% Countywide Local Option Sales & Use Tax Receipts $4,035,925 9,928,531 9,707,849 8,798,402 7,756,909 7,608,604 7,415,804 7,368,869 7,312,618 7,376,708 Ill Through May 2024. Aggregate sales and use tax receipts for this period are approximately 2.3% below levels for same period in 2023. 12l Collections prior to October 1, 2016 represent taxes attributable to a 0.40% sales tax that was replaced with the 2016 sales tax of 0.75%. Prior to October 1, 2016 the citywide aggregate sales and use tax rate was 0.90%. The aggregate rate was increased to 1.25% as a result of the approval of the 2016 sales tax discussed above. Source: Kansas Department of Revenue Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The Saline County appraiser annually determines the appraised valuation of property located in the City. The appraiser's determination is based on a number of criteria established by Kansas's statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. Property Valuation Challenges. Taxpayers may challenge the appraised value of their property by paying property taxes under protest. Such challenges are subject to administrative and judicial review. Taxes paid under protest are distributed to taxing jurisdictions in the same manner as all other property tax collections. If a taxpayer's challenge to the appraiser's valuation is successful, the county is liable to refund the amount of property taxes attributable to the protested value that was previously paid under protest. The county will then withhold from future property tax distributions to other taxing jurisdictions an amount equal to the jurisdiction's pro rata share of such refund. Any such withholdings from future property tax distributions may have a material adverse effect on the City's financial situation. Property Assessment Rates In order to determine the assessed valuation of a parcel of property for taxation purposes, the county appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992 modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25% and on residential property from 12% to 11.5%. The following table shows the current assessment rates for the different classes of taxable tangible property within the State of Kansas. A-19 Real Property: Residential Commercial and Industrial- Real Property Agricultural Land (1) Agricultural Improvements Vacant Lots Not-for-Profit (2) All Other Personal Property: (3) Mobile Homes Mineral Leaseholds (large) Mineral Leaseholds (small) Commercial & Industrial Machinery & Equipment All Other Utilities: Railroads All Other Public Utilities Motor Vehicles: Property Exempt: 11.5% 25.0 30.0 25.0 12.0 12.0 30.0 11.5% 30.0 25.0 25.0 30.0 federally mandated rate 33.0% 20.0% Property used for the following purposes, or portions thereof, are exempt from taxation provided certain statutory requirements are met: religious, educational, literary, scientific, benevolent, alumni associations, veterans' organizations, or charitable purposes, including parsonages and community service organizations providing humanitarian services. (1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation. (2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does not accommodate buildings or improvements. (3) The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the laws of the State, all commercial, industrial, telecommunications, and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. 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 2022 Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Saline County was 10.48%, and commercial and industrial property was 19.80%. A-20 APPENDIX B Form of Continuing Disclosure Undertaking CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 This CONTINUING DISCLOSURE UNDERTAKING dated as of July 2, 2024 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the "Obligations") which are being issued simultaneously herewith as of July 2, 2024, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which ( a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial 600596.20255\DISCLOSURE UNDERTAKING Report, if any. "Dissemination Agent" means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2024, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. 600596.20255\DISCLOSURE UNDERTAKING 2 Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] ( c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations oftaxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (I 0) release, substitution or sale of property securing repayment of the Obligations, if material; ( 11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; ( 14) appointment of a successor or additional trustee or the change of name of the trustee, if material; 600596.20255\DISCLOSURE UNDERTAKING 3 ( 15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type ( or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (I) 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 600596.20255\DISCLOSURE UNDERT A.KING 4 dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.] 600596.20255\DISCLOSURE UNDERTAKING 5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF SALINA, KANSAS (SEAL) Mayor City Clerk 600596.20255\DISCLOSURE UNDERTAKING S-1 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement (with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY-Estimated Actual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers 600596.20255\DISCLOSURE UNDERTAKING APPENDIX C December 31, 2022 Annual Comprehensive Financial Report The following is the Annual Comprehensive Financial Report for the City of Salina, Kansas for the fiscal year ended December 31, 2022, including financial statements as audited by the firm of FORVIS, LLP, Wichita, Kansas. Other than auditing said financial statements, FORVIS LLP has not performed any procedures relating to this offering document. City of Salina, Kansas Independent Auditor's Report, and Financial Statements December 31, 2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box 736 Salina, Kansas 67 402-0736 For the Fiscal Year Ended December 31, 2022 Prepared by Department of Finance and Administration of City of Salina, Kansas CONTENTS INTRODUCTORY SECTION City of Salina, Kansas Decem her 31, 2022 Letter of Transmittal ............................................................................................................................... i-iv Organizational Chart ................................................................................................................................ v List of Principal Officials ........................................................................................................................... vi FINANCIAL SECTION Independent Auditor's Report .............................................................................................................. 1 Management's Discussion and Analysis ............................................................................................ 5 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ................................................................................................................. 17 Statement of Activities ...................................................................................................................... 19 Fund Financial Statements Balance Sheet -Governmental Funds ............................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ...... 21 Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds ................................................................................................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities ..................................................................... 23 Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis) -General Fund ............................................................... 24 Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GAAP Basis) -Sales Tax Capital Fund ................................................ 25 Statement of Net Position -Proprietary Funds ................................................................................. 26 Statement of Revenues, Expenses, and Changes in Net Position -Proprietary Funds .................. 28 Statement of Cash Flows -Proprietary Funds .................................................................................. 29 Statement of Fiduciary Net Position -Fiduciary Funds .................................................................... 30 Statement of Changes in Fiduciary Net Position -Fiduciary Funds ................................................. 31 Notes to Financial Statements .......................................................................................................... 32 Required Supplementary Information Other MD&A Other Postemployment Benefits Schedule of Changes in the City's Total OPES Liability and Related Ratios ................................... 78 Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPES Liability and Related Ratios .................................. 79 KPERS Pension Plan City of Salina, Kansas December 31, 2022 Schedule of the City's Proportionate Share of the Net Pension Liability .......................................... 80 Supplementary Information Combining Schedules and Individual Fund Statements Combining Balance Sheet -Non major Governmental Funds .......................................................... 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Non major Governmental Funds ................................................................................................. 83 Combining Balance Sheet -Non major Special Revenue Funds ...................................................... 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Special Revenue Funds ............................................................................................. 88 Combining Balance Sheet -Non major Permanent Funds ............................................................... 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Permanent Funds ...................................................................................................... 93 Internal Service Fund Descriptions ................................................................................................... 94 Combining Statement of Net Position -Internal Service Funds ....................................................... 95 Combining Statement of Revenues, Expenses, and Changes in Net Position -Internal Service Funds ................................................................................................................ 96 Combining Statement of Cash Flows -Internal Service Funds ........................................................ 97 Budgetary Comparison Schedules -Budget and Actual (Non-GAAP Basis) Tourism and Convention Fund ..................................................................................................... 98 Special Gas Fund ......................................................................................................................... 99 Bicentennial Center Fund ........................................................................................................... 100 Business Improvement District Fund .......................................................................................... 101 Neighborhood Park Fund ............................................................................................................ 102 Special Parks and Recreation Fund ........................................................................................... 103 Special Alcohol Fund .................................................................................................................. 104 Sales Tax Economic Development Fund ................................................................................... 105 Arts & Humanities Fund .............................................................................................................. 106 Debt Service Fund ...................................................................................................................... 107 Solid Waste Disposal Fund ......................................................................................................... 108 Water and Sewer Fund ............................................................................................................... 109 Sanitation Fund ........................................................................................................................... 110 Golf Course Fund ....................................................................................................................... 111 Workers' Compensation Reserve Fund ...................................................................................... 112 Health Insurance Fund ............................................................................................................... 113 Central Garage Fund .................................................................................................................. 114 STATISTICAL SECTION City of Salina, Kansas December 31, 2022 Net Position by Component -Last Ten Fiscal Years ...................................................................... 115 Changes in Net Position -Last Ten Fiscal Years ........................................................................... 116 Fund Balances, Governmental Fund -Last Ten Fiscal Years ........................................................ 117 Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years .................................. 118 Tax Revenues by Source, Governmental Funds -Last Ten Fiscal Years ..................................... 119 Assessed and Estimated Actual Value of Taxable Property-Last Ten Fiscal Years ................... 120 Direct and Overlapping Property Tax Rates -Last Ten Fiscal Years ............................................ 121 Principal Property Taxpayers ......................................................................................................... 122 Property Tax Levies and Distributions ............................................................................................ 123 Direct Sales Rate by Taxing Entity ................................................................................................. 124 Water Sales by Class of Customer ................................................................................................. 125 Ratio of Outstanding Debt by Type ................................................................................................ 126 Ratio of Net General Bonded Debt Outstanding ............................................................................ 127 Direct and Overlapping Governmental Activities Debt ................................................................... 128 Legal Debt Margin .......................................................................................................................... 129 Pledged Revenue Coverage .......................................................................................................... 130 Demographic and Economic Statistics ........................................................................................... 131 Principal Employers ........................................................................................................................ 132 Introductory Section DEPARTMENT OF FINANCE AND ADMINISTRATION 300 West Ash, P.O. Box 736 Salina, Kansas 67402-0736 May 21, 2024 To the Citizens of the City of Salina, Kansas: TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 Website: www.salina-ks.gov The Annual Comprehensive Financial Report of the City of Salina, Kansas (the "City") for the year ended December 31, 2022, is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position, the changes in financial position/fund balances and, where applicable, the cash flows of all funds of the City. We believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Report Format The Annual Comprehensive Financial Report is presented in three sections: Introductory, Financial and Statistical. The introductory section includes a description of the City, including services provided, and explanation of the City's accounting system and budgetary controls, and a brief discussion of the City's economic condition and outlook. The City's organizational chart is also included to assist the reader in understanding the organizational structure of the City. The financial section includes the Independent Auditor's Report, Management's Discussion & Analysis, Government-wide Financial Statements, Fund Financial Statements, Notes to the Financial Statements, and Individual and Combining Statements and Schedules. The Statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The reader is specifically directed to Management's Discussion and Analysis (MD&A) which immediately follows the Independent Auditor's Report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The budgetary procedures are reviewed by the City Commission each year as a part of the budget process. City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes. However, management control is maintained at the department level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded prior to the release of purchase orders to vendors. Various internal compliance procedures are implemented to ensure proper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. Independent Audit Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a City of the First Class on July 9, 1920. The City has had a Commission-City Manager form of government since 1921. The Commission is comprised of five members elected at large. Each year the commission chooses one member to serve as Mayor. The City Manager is appointed by the Commission, and acts as its primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The population of the City reported by the 2022 decennial census was 46,868. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers public housing programs within the City of Salina. The entity also includes one blended component unit which is the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB). SFH QalicB was created for the purpose of providing an indoor sports facility in the downtown core of the city of Salina. In addition, the City of Salina participates in a joint venture with Saline County, the City-County Building Authority for the ownership, operation and maintenance of the City-County Building. This report includes all funds of the City. The City provides a full range of services including police and fire protection, development services, construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural programming; emergency medical services and convention facilities. In addition to general government activities, the City also provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the reporting entity. Economic Outlook and Strength The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the community. Such companies include Vortex Global, GeoProbe Systems, Great Plains Manufacturing/Kubota, and Schwan's Global Supply Chain. Manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near the top of a list of first class cities with respect to "trade pull factor." According to the Kansas Department of Revenue's Annual City Trade Pull Factor report, Salina had a pull of factor of 1.51 in 2022. The pull factor measures the degree to which a city or county area captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting retail trade beyond the expected activity attributable to just the residents of that community. It is apparent from this that Salina continues to serve as a regional economic hub in 2022. Two Salina area company's announced major expansions in the second half of 2020. Schwan's Company announced expansion of its pizza production facility, adding approximately 225 jobs to the Salina area. Kubota announced a new plant for the production of compact track loaders, adding approximately 120 jobs to the Salina area. ii Major Initiatives In April, 2016, voters elected to replace the .40 cent capital improvement sales tax with a . 75 cent capital improvement sales tax for a term of 20 years. Priorities for the sales tax are improving neighborhood streets and drainage, preserving stable property tax rates, ensuring a quality park system, constructing and maintaining community improvements, funding equipment for maintenance, repayment of future bonds for large projects and attracting quality jobs. In 2018, the City of Salina issued $22,570,000 in STAR bonds which funded several projects in the City's downtown corridor. In 2020 Homewood Suites opened for business and the majority of the City's Downtown Streetscape project was completed. Other major projects that were on going included gutter and paving on North 9th Street, South Well Field improvements, continued improvements to the water distribution system and preliminary design on the Smoky Hill River Renewal and construction of the Police Training Center project. The City continues to address fiduciary pressures generated by a recessionary economy and the more recent financial impacts of the Covid-19 pandemic. General adjustments to the pay plan for cost of living changes at a rate of 2.0% were implemented in 2022. The City offered merit increases up to 3% in 2022. Capital Improvement Planning The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine" capital-including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate to the nature of the purchase. The second component of the CIP includes major projects that typically require issuance of bonds or notes, although these projects may also be supplemented with available cash and grant financing. The plan is updated each year after an extensive evaluation of the demands on future financial resources. The Capital Improvement program is scheduled for a major revision as the result of the sales tax to be used for that purpose. CIP increases in 2022 and 2023 are a result of the anticipated beginning of the construction of the Smoky Hill River Renewal Project, Fire Station No. 4 and Wastewater Treatment Plant respectively. Due to uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. Few major projects have been planned for 2023 and 2024 until financial resources for those years could be further evaluated. *The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design, acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or more years depending on project magnitude) subsequent to this date. Financial Policies The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. Financial policies contribute to financial stability by: 1. Providing consistent guidance in decision making 2. Establishing appropriate levels of fund balances 3. Governing the use of one time or unanticipated resources 4. Providing a multi-year capital improvements process 5. Establishing responsibilities and deadlines for budget preparation 6. Providing for a balanced annual operating budget 7. Providing guidelines on the use of debt, including appropriate purposes and terms iii 8. Provide a linkage between capital improvement scheduling and long-term debt management planning 9. Require annual audits conducted in accordance with auditing standards generally accepted in the United States of America 10. Require timely and regular interim financial reporting to the Governing body 11. Ensure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). Acknowledgments The preparation of the Annual Comprehensive Financial Report was made possible by the dedicated Finance staff of the City of Salina and the professional advice and efforts of the FORVIS, LLP auditing team. Finally, preparation of this report would not have been possible without the support of the City Commission. Michael D. Schrage City Manager iv ( City of Salina ) I CITIZENS I CITY COMMISSION Trent Davis, Mayor Karl Ryan Bill Longbine Greg Lenkiewicz Mike Hoppock City Manager Michael Schrage I I I I Deputy City Assistant City Risk Municipal Management Court Manager Manager Jacob Wood Shawn Henessee I l Development Services Parks & Recreation Police I Lauren Driscoll Jeff Hammond Interim Sean Morton I I I / 'I / 'I r 'I Parks Division Administration Building Services Recreation Division Patrol Division Neighborhood Services Golf Course Support Division Planning & Zoning Facility Maintenance Investigative Division Community Relations Animal Services '\. ., '-Bicentennial Center '-~ I I I Arts & Humanities I I Public Works I Utilities I Brad Anderson Jim Teutsch Martha Tasker I I I ] / Engineering / Smoky Hill Museum Water Plant Division Public Services Wastewater Plant Streets Division Traffic Control Utility Division Flood Control Water Distribution Sanitation Wastewater Solid Waste Collection Central Garage \. \. I Continuous Process Human Resources Improvement Natalie Fischer Scott Gardner • Contract Position I Legal Services Clark Mize & Linville Ch artered* Grell Benrtson r I Fire dar Tony Snei I Fire Adminis tration sion Fire Suppres Fire Preventi on EMS I Finance/ Adminis tration k / Debbie Pac I City Clerk Water Custo mer g Accountin Finance I Computer Technology Interim-Scott Ga rdner --, City of Salina, Kansas List of Principal Officials City Commission Mayor Trent Davis Vice-Mayor Karl Ryan Commissioner Bill Longbine Commissioner Greg Lenkiewicz Commissioner Mike Hoppock City Executive Staff Mike Schrage, City Manager Jacob Wood, Deputy City Manager Shawn Hennessee, Assistant City Manager Greg Bengston, City Attorney Debbie Pack, Director of Finance & Administration Brad Anderson, Director of Arts & Humanities Lauren Driscoll, Director of Community & Development Services Natalie Fischer, Director of Human Resources Scott Gardner, Computer Technology and Continuous Process Improvement Director Sean Morton, Interim Police Chief Martha Tasker, Director of Utilities Jim Teutsch, Director of Public Works Tony Sneidar, Fire Chief FORV/S 1551 N. Waterfront Parkway, Suite 300 / Wichita, KS 67206 P 316.265.2811 / F 316.265.9405 forvia.com Mayor and City Commissioners City of Salina, Kansas Salina, Kansas Opinions Independent Auditor's Report We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas (City), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City'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 governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of December 31, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparisons for the General and Sales Tax Capital funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB), a blended component unit, which represent 11.08%, 11.47%, and 5.42% respectively, of the assets, the net position/fund balances and the revenues/additions of the aggregate remaining fund information as of and for the year ended December 31, 2022. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for SFH QalicB, is based solely on the report of the other auditors. We also did not audit the financial statements of the Salina Airport Authority, a discretely presented component unit, which represent 88.23%, 79.30% and 75.67% respectively, of the assets and deferred outflows of resources, net position, and program revenues of the aggregate discretely presented component units as of and for the year ended December 31, 2022. We also did not audit the financial statements of the Housing Authority of the City of Salina, a discretely presented component unit, which represent 11. 77%, 20. 70% and 24.33% respectively, of the assets and deferred outflows of resources, net position, and program revenues of the aggregate discretely presented component units as of and for the year ended December 31, 2022. Those statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely on the reports of the other auditors. FORVIS 1$ a lr«<.lemat1< of FORVIS. 1.LP. ro91stcrctl with IM U.S. Ralon! aoa Tradommlt Otf1oe. Mayor and City Commissioners City of Salina, Kansas Page 2 Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the Kansas Municipal Audit and Accounting Guide (KMAAG). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of the City of Salina, Kansas 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 opinions. Emphasis of a Matter The 2021 financial statements, before they were restated for the matter discussed in Note 15, were audited by other auditors, and their report thereon, dated October 14, 2022, expressed unmodified opinions. Our opinions are not modified with respect to this, matter. As discussed in Note 6 to the financial statements, in 2022, the City adopted Governmental Accounting Standards Board Statement Number 87, Leases. Our opinions are not modified with respect to this matter. 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 City's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's 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 auditor's report that includes our opinions. 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 GAAS and KMAAG 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. Mayor and City Commissioners City of Salina, Kansas Page3 In performing an audit in accordance with GAAS and KMAAG, 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 City'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 City'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, pension, and other postemployment benefit information 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. Mayor and City Commissioners City of Salina, Kansas Page4 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining schedules and individual fund statements and budgetary comparison schedules, as listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates 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 audit of the basic financial statements and certain additional procedures, including comparing 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 opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Wichita, Kansas May 21, 2024 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Management Discussion and Analysis This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal year ended December 31, 2022. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well-rounded picture of the City's financial condition. Financial Highlights • On an accrual basis, the City's government-wide net position increased $28.5 million from current activities with net position change of $3.3 million and $25.1 million in governmental activities and business-type activities, respectively. Of this increase, $17.2 million of the increase to business-type activities related to a restatement for a correct of an error. • At the close of 2022, the City's governmental funds reported combined ending fund balances of $122.2 million, an increase of $9.97 million from the prior year. The General Fund balance increased $4. 7 million, the Sales Tax Capital Fund decreased $1.3 million, the Former Schilling AFB Environmental Fund decreased $1.1 million and all Other Governmental Funds fund balances increased $6.6 million over the prior year. • At the close of 2022, the City's enterprise funds reported a combined ending Net Position of $118. 7 million, an increase of $25.1 million compared to the prior year. The Water and Sewer Fund, accounted for most of the increase at $22.2 million (which included the $17.2 million restatement noted above), while the Sanitation Fund and Solid Waste Disposal Funds showed slight increases, the Golf Fund reported a slight decrease to the net position for the year. • Revenues from governmental activities decreased by $61.5 million from the prior year and revenues from business-type activities increased $1.8 million from the prior year. • Revenues from investments increased by $329 thousand. • The City adopted Governmental Accounting Standards Board Statement No. 87, Leases, in 2022. Comparative 2021 information presented herein has not been restated for its adoption. The Basic Financial Statements The basic financial statements of the City include the government-wide financial statements and the fund financial statements. The notes to the financial statements follow the basic financial statements and are essential for the reader's understanding of the financial statements. Other supplementary information, including the combining schedules for nonmajor funds and the budgetary comparison reports, are at the end of this report to provide additional information for the reader. Government-wide Financial Statements The government-wide financial statements present the results of the City's activities using the accrual basis of accounting, the same basis as is used by private sector businesses. These statements focus on the long-term financial picture of the City as a whole. 5 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The Statement of Net Position reports all of the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources. Net position, the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is measure of the City's overall financial health. Net position represents the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net position can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how net position has changed during the fiscal year. One unique feature of this statement is how it shows the revenues and expenses related to specific programs and how much of those programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements show the activities of the City broken down between governmental and business-type activities. Governmental activities are the activities of the City generally supported by taxes, such as public safety (police, fire, and EMS), public works, public health and sanitation, culture and recreation and planning and development. Business-type activities are activities of the City that are intended to recover a significant portion of their costs through user fees and charges. These include water and sewer, refuse collection, the golf course, and operation of the City solid waste facility. The government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as discretely presented component units of the City and the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) as a blended component unit. Note 1, item A in the Notes to the Financial Statements provides a more complete explanation of the relationship between these entities and the City of Salina. Fund Financial Statements The City uses three types of funds to manage its resources: governmental funds, proprietary funds, and fiduciary funds. A fund is a fiscal entity with a set of self-balancing accounts recording financial resources together with all related liabilities and residual equities and balances, and the changes therein. These accounting entities are separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with regulations, restrictions, or limitations. Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred with the exception of long-term debt and similar items which are recorded when due. The focus is on the short-term financial picture of the operations of the individual fund, rather than long-term citywide view provided by the government- wide statements. Major governmental funds are presented in individual columns, while nonmajor governmental funds are aggregated into an "Other Governmental Funds" column. A combining statement for the nonmajor funds is presented as supplementary information in the back of the report. The information presented in these statements can be compared to the governmental activities information in the government-wide statements. The reconciliation at the end of the fund financial statements details the relationship between the two types of financial statements. 6 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are prepared on the accrual basis of accounting and are used to account for business-type activities. Enterprise fund statements present the same information that is in the government-wide statements for business-type activities, but in greater detail. The City of Salina currently operates four enterprise funds: Solid Waste Disposal, Water and Sewer, Sanitation and Golf Course. Internal service funds are used to account for the cost of operations shared by various departments of the City. The City operates three internal service funds. Two of these are for self-insurance activity: Workers Compensation Reserve, and Health Insurance. The remaining accounts for the Central Garage operation. A combining statement for these internal service funds can be found in the supplementary information following the notes to the financial statements. Fiduciary funds are used by the City to account for resources held by the City for a third party. The City of Salina operates one custodial fund. Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used. Permanent funds operated by the City include the Cemetery and Mausoleum Endowments, and the Tri-centennial Commission fund. Notes to the Financial Statements The notes to the financial statements are an integral part of the basic financial statements since they contain valuable additional information necessary for gaining a complete understanding of the City's financial statements. Other Information In addition to the basic financial statements and the notes described above, this report also presents combining statements and schedules and budgetary comparison schedules for nonmajor funds which are reported after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's activities and economy. The City as a Whole This section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support its operations. Each of these revenue streams has a different revenue base. In declining order of magnitude, they are charges for services, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to governmental activities, while charges for services apply to both governmental (25%) and business-type (75%) activities. 7 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Charges for Services account for about 41 % ($42.3 million) of the City's revenue stream. Charges for service depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course fees. Sales Taxes are the next largest component of the revenue mix, providing 30% ($31.7 million) of the total revenues. The City receives a 1.25% City-wide sales tax, and also a portion of the County- wide 1.5% sales tax. Forty-four percent, (a rate of .75%) of the City-wide sales tax is required to be used for special purposes. The remaining .5%, along with the City portion of the County-wide tax is available for general purposes. The City is affected by the formula used to distribute the County-wide sales tax among participating jurisdictions (only Cities and the County participate, School and other special districts do not). The formula is based, in part, on the property tax efforts of each jurisdiction. As the portion of the overlapping levy attributable to the City of Salina changes so does the City's allocated portion of the County-wide sales tax. This change is recognized bi-annually and can affect the overall allocation of the City's portion of the County-wide sales tax. In 2008, Salina voters approved an increase of the special purpose .25% tax to a .40% tax. The extended tax was to sunset March 31, 2019. The tax was repurposed, for Capital and Economic Development purposes only, as well as retaining a property tax stabilization component. In May 2017, Salina voters approved an increase in the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective October 1, 2017, for twenty years. Property Taxes are the third major component of the revenue mix, accounting for 13% ($13. 7 million) of total revenues. Property taxes consist of two components: Real estate and personal property taxes which are determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes which are established by a countywide average tax rate and the assessed value of the vehicle. Real estate assessed value increased by 9.5%. The total City mill levy decreased by 1.3%. The overlapping levy decreased in 2022 by 2.8%. Personal property value continued to slide, presumably as a result of removing business equipment from the tax base. Personal property value has now dropped to $9.5 million from its peak of $39.7 million in 2007. Motor vehicle value decreased 3%. Motor vehicle taxes are distributed based on a formula using prior year's tax effort (similar to the Countywide Sales Tax Distribution). 8 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The following table summarizes the comparative property assessed values and tax levy rates: Fiscal (budget) Year 2022 2021 Change Real estate and personal property assessed valuation $ 503,880,021 $ 459,861,906 $ 44,018,ll 5 City mill levy($ per $1,000) Operating (general fund) 23.612 23.847 (0.235) Debt service 6.736 6.803 (0.067) Total city rate 30.348 30.452 (0.104) Total overlapping levy 135.722 139.738 (4.016) Percent total taxes collected 98.9% 98.00/o 0.009 Ratio of total truces (including delinquent collections) to taxes levied 99.2% 99.1% (0.991) Motor vehicle valuation $ 54,903,252 $ 56,545,812 $ (1,642,560) The unemployment rate in Salina remained at 2.3% at the end of 2022, which was the same in 2021, reflecting general economic conditions. This is still slightly below the statewide and significantly below the national unemployment rate. The total labor force was 29,476 in 2021. In 2022, the top ten property taxpayers accounted for 9.46% of total assessed value. Statement of Net Position Net position may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $345.1 million as of December 31, 2022. This represents an increase in net position of $28.4 million over 2021. A comparative Condensed Statement of Net Position at December 31, 2022 and 2021, follows: Governmental Buslness~type Activities Activities Total o;c of %of 2022-2021 2022 2021 2022 2021 2022 Total 2021 Total Change Cash aDd investmenu 130,555 $ L20.,526 $ 49,554 $44,760 $ 180,109 33% $ 165,286 32¾ $ 14,823 Other cwrerrt assets 19,086 17,262 2,476 2,235 21,562 4% 19,497 4% 2,065 Noncurrenl (capital) assets 217,899 218.619 133,570 117,494 351,469 641/o 336,113 65% 15,356 Totalasseu 367.540 356 408 185 600 164,489 553 140 100% 520 897 100% 322;44 Total deferred outflows of resources I0,245 7,444 1,219 903 JJ,464 100% 8,347 100% 3,117 Total assets and defentd outflows ofrcsoun:cs 371,785 363.852 186,820 165,392 564,605 529,244 35,362 Current liabilities 17,820 17,292 6,916 5,539 24,736 12% 22,831 12% 1,905 Noncurrent liabilities 115 015 100 427 60,737 64,899 175,752 88% 165,326 88% 10,426 Total liabilities 132.83:'5 117 719 67,653 70,438 200,488 100¾ 188,157 100% 12331 TotaJ deferred inflows of resources 18,507 22 999 488 1,424 18 996 24,423 (5,427) Net position Net investment in capital assets 142,399 143,768 75,933 56,004 218,331 63% 199,772 63% 18,559 Reslricte.d for penuancnt funds 548 559 548 O"I, 559 (J"/, (11) Restricted for public works 65,594 66,698 65,594 19°/4 66,698 21% (1,104) Restricted for debt service 2,196 2,112 1,347 1,132 3,543 1% 3,244 1% 299 Unresuicted 15 706 9997 41.398 36394 57 JO!i 17% 46391 15% l0.714 Total net position 226,443 s 223,134 s 118 678 s 93,530 $ 345,121 100% s 316,664 l(IOo/, s 28.457 Govcmmenial aOO Business-type activities net position as a pcn:cnt of total net position 66% 70"/4 34o/a 30'¼ 100% 100% Cash am investments as a pen:cntag:e of current liabilities 733o/o 697% 717% 808% 728% 724% 9 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 The largest segment of the City's net position reflects its investment in capital assets (land, buildings, streets and drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related debt cannot come from liquidation of the asset. Such resources generally must be provided from other sources, such as future taxes or user charges. A small portion of net position is restricted for debt service and permanent funds. The remainder (unrestricted) of net position may be used to meet the City's obligations to citizens and creditors. In 2022, the amount of net investment in capital assets increased by $18.6 million. Amount restricted for debt service increased by $229,000. Amount restricted for public works decreased by $1.1 million. Unrestricted increased by $10.7 million. Outside of these changes, 2022 resulted in a $11,000 decrease to the net position. Total liabilities increased in governmental activities and slightly decreased in business-type activities. In governmental activities, current liabilities decreased, and noncurrent liabilities increased primarily due to a decrease in temporary notes and an increase in net pension liability. Statement of Activities A Comparative condensed Statement of Activities for the years ended December 31, 2022 and 2021, follows: Governmental Activities Business-type Activities Total Prima~ Government ¾of ¾or 2012-2021 Revenues 2022 2021 2022 2021 2022 Total 2021 Total change Program Rn·enae3 Charges for services 12,178 $ 9,629 s 30,146 s 29,001 s 42,324 4lo/, s 38,630 24% s 3,694 Operating grants and contributions 3,407 4,711 3,407 3% 4,711 3% (1 ,304) CupitaI grants and contributions 66,150 0% 66,150 40% (66,150) General Re,·enue1 0% Property taxes 13,697 13,885 13,697 13% 13,885 8% (188) Sales taxes 31,676 26,720 31,676 30% 26,720 16% 4,9l6 Other taxes 9,452 8,759 9,452 9% 8,759 5% 693 Investmeul revenue 487 158 487 0% 158 0% 329 Other miscellaneous (427) 2,406 3,026 2,417 2,599 2% 4,823 3% (2,224) Other income 398 398 0% 0% 398 Total revenues 70.869 132,418 33172 31,418 104 041 --1.QQli 163,836 100% (59 795/ Expenses General government 16,479 16,098 16,479 18% 16,098 18% 381 Public safety 29,381 23,877 29,381 32% 23,877 27% 5,504 Public works 11,141 16,335 11,141 12% 16,335 18% (5,194) Public health and sanitation 1,883 2,Jll 1,883 2% 2,315 3% (432) Culture and recreati<Jn 8,14l 6,305 8,145 9% 6,305 7% 1,840 Planning and development 3,415 2,289 3,415 4% 2,289 3% 1,126 Solid waste dispose] 788 1,836 788 1% 1,836 2% (1,048) Water and sewer 15,885 13,310 15,885 17% 13,310 15% 2,575 Sanitation 2,675 3,655 2,675 3% 3,65l 4% (980) Golf course 916 878 916 1% 878 1% 38 Interest on long term debt 2.152 2 827 2 ll2 __lli. 2 827 3% !6751 Total expenses 72596 70 046 20.264 19.679 92 860 100% 89 725 100% 3135 Increase in net assets before transfers and other extraordinasy items (1,728) 62,372 12,908 11,739 11,180 74,111 (62,931) Transfers and olher c:ctraordinary items 5.036 16.681 !5,036l 116 681) Cbange in oet position 3,309 79,053 7,872 (4,942) 11,180 74,111 (62,931) Nd Pm1itHln, Beginning 223,134 144,081 93,530 96,610 316,664 240,691 75,973 Prior period adjustment 17.276 l 862 17.276 1862 15414 Net po!lition, Beginning restated 223,134 144,081 110,806 98,472 333,940 242,553 91,387 Net Position, Endina: 226,443 s 2231134 s 118 678 s 93 530 s 345 120 316 664 28 456 10 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Governmental Activities. Charges for services attributable to governmental activities totaled $12.2 million, operating grants for those purposes were $3.4 million and capital grants totaled $0.0 million. Charges for services increased, operating grants decreased slightly from the prior year due to the 2020 COVID pandemic as most services were paused temporarily. Operating grants decreased due to the American Rescue Plan payment received in 2021 . Capital grants decreased due to the City receiving a payment from the U.S. Department of Defense for environmental remediation of the former Schilling Air Force Base in 2021. The balance was funded by general revenues. Sales taxes accounted for $31. 7 million of general revenues, with property taxes providing $13.7 million. The net position increased by $3.3 million as a result of governmental activities. This increase was primarily related to the increases in sales and other taxes. Total expenses for governmental activities for the year ended December 31, 2022, were $72.6 million compared to $70 million in 2021 . Governmental activities represent 78% of the City's total expenses. The largest element of governmental activity expense was public safety, accounting for 40% of the total expenses. Business-type Activities. Business-type activities are primarily supported by user charges. Total expenses for business-type activities for the year were $20.2 million, or 22% of the City's total expenses. The majority of this expense ($15.8 million) is attributable to water and sewer operations, with the other activities costing a combined total of $4.3 million. Net position increased by $7.8 million. This increase was primarily related to the lack of transfers and other extraordinary items in 2022. Fund Financial Analysis Governmental Fund Balances The table below shows the Governmental Fund balances for major and nonmajor funds as of December 31, 2022 and 2021. Fund 2022 2021 Change General $ 25,828 $ 21,064 $ 4,764 Sales tax capital 8,063 9,402 (1,339) Former Schilling AFB environmental 65,594 66,698 (1,104) Debt service 2,196 2,112 84 Capital projects (deficit) (199) (922) 723 Federal grants 155 (136) 291 Other governmental funds 18,552 11 ,997 6,555 $ 120,188 $ 110,215 $ 9,973 11 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Total governmental fund balances increased by $9.97 million. The reasons for these changes are varied, including higher sales and other tax revenue. Revenues and Exe.enditures The following table shows a comparison of revenues and expenditures (including other sources and uses) for major and nonmajor funds for the years ending December 31, 2022 and 2021. Fund 2022 2021 Change Revenues (including other financing sources) General $ 49,660 $ 46,346 $ 3,314 Sales tax capital 10,435 9,639 796 Former schilling AFB environmental 210 67,959 (67,749) Debt service 6,895 12,855 (5,960) Capital projects 7,871 20,276 (12,405) Federal Grants 830 1,136 (306) Other governmental funds 19,112 9,722 9,390 Total revenues 95,013 167,933 (72,920) Less other sources (25,574) (37,405) 11,831 Revenues, net of other sources $ 69,439 $ 130,528 $ (61,089 Expenditures (including other financing uses) General $ 44,896 $ 40,424 $ 4,472 Sales tax capital 11,775 5,447 6,328 Former schilling AFB environmental 1,314 1,956 (642) Debt service 6,810 12,467 (5,657) Capital projects 7,149 17,169 (10,020) Federal Grants 540 1,224 Other governmental funds 12,556 10,315 2,241 Total expenditures 85,039 89,002 (3,278) Less other uses (12,777) (6,399) (6,378) Expenditures, net of other uses $ 72,263 $ 82,603 $ (9,656) 12 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Total revenues, including other sources, decreased $61 million compared to 2021, with Former Schilling AFB Environmental Fund showing the largest decrease between the two years, which was $68 million. Total expenditures decreased $9. 7 million over 2021. The majority of that decrease, $10 million was in the Capital Projects Fund as a result of decreased spending on projects. Pro12.rietarY.. Funds The City of Salina operates four enterprise funds as well as three internal service funds. Summarized comparative Statements of Net Position follows for each enterprise fund as of December 31, 2022 and 2021 : Solid Waste Disposal Water and Sewer ~II~~ ~H1 ~liange ~II~~ ~021 ~Fiange Current assets $ 9,970 $ 9,164 $ 806 $ 40,087 $ 36,210 $ 3,877 Capital assets 3,072 3,206 (134) 129,134 112,719 16,415.00 Deferred outflows 156 Jl5 41 768 569 199.00 Total assets and deferred outflows $ 1J,Bl9 s 12,:m $ 7liJ s !69,989 $ m,<!1i8 $ 20,il'.91 Current liabilities $ 358 $ 2,306 $ (1,948) $ 6,451 $ 3,134 $ 3,317 Noncurrent liabilities 4,470 4,360 110 55,295 59,760 (4,465.00) Deferred inflows 53 153 (100) 316 921 (605.00) Total liabilities $ <!,ijijo $ 1i,m $ (1,939' 62,01i2 $ 1i~,81s (l,75loO) Net investment in capital assets $ 3,072 $ 1,185 $ 1,887 $ 71,497 $ 53,250 $ 18,247 Restricted 1,347 1,132 215 Unrestricted 5,247 4,482 765 35,083 31,301 3,782.00 Total net position s B,319 $ 5,1i1i7 $ 'i,1i52 $ m,,m $ S5,1i8~ $ 'i'i,'iiJiJ Current assets as percentage of current liabilities 2789% 397% 621% 1155% Sanitation Golf Course ~li~~ ~!1~1 ~han11e ~Hz 2021 ~Fiange Current assets $ 1,874 $ 1,508 $ 366 $ 99 $ 112 $ (13) Capital assets 976 1,135 (159.00) 388 433 (45.00) Deferred outflows 170 127 43.00 125 91 34.00 Total assets and deferred outflows $ ~.020 $ 'i,,,ll $ 230 $ 1il'i s 1i~1i $ (iii'.~ Current liabilities $ 82 $ 82 $ $ 25 $ 17 $ 8 Noncurrent liabilities 683 562 121.00 290 216 74 .00 Deferred inflows 91 264 (173.00) 28 86 (58.00) Total liabilities $ 8s1i $ 908 $ (52~ s ~4~ $ m $ 24 Net investment in capital assets $ 976 $ 1,135 $ (159) $ 388 $ 433 $ (45) Restricted Unrestricted 1,187 727 460 (119) (I 16) (3) Total net position $ ::i,m $ l,B1i'i $ Joi s 21i9 s m $ (4B' Current assets as percentage of current liabilities 2288% 1839% 393% 659% 13 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Revenues, Exeenses, and Chang_es in Net Position Summarized comparative Statements of Revenues, Expenses and Changes in Net Position follows for the years ended December 31, 2022 and 2021 : Solid Waste Disposal Water and Sewer i6ii 262~ ~liange i6ii 202~ ~liange Operating revenues $ 4,099 $ 3,636 $ 463 $ 24,742 $ 23,668 $ 1,074 Operating expenses 774 1,746 (972) 14,595 12 078 2 517 Operating income $ 3,326 $ 1,890 $ 1436 $ 10 147 $ 11,590 $ (1,443) Nonoperating revenues (expenses) (14) (90) 76 (1,290) (1,232) (582 Income (loss) before transfers $ 3,3 12 $ 1,800 $ 1,512 $ 8,857 $ 10,358 $ (1 ,501) Transfers in (out) (659) (2,2711 1612 (3,890J (13,913) 10,023 Change in net position $ 2 652 $ (471) $ 3,123 $ 4,967 $ (3,555) $ 8,522 Net position Jan I ~ $ 5,666 $ 6,137 $ (471) $ 85,682 $ 87,375 $ (1,693) Restatement 17,276 1,862 15,414 Net position Jan 1, restated 5 666 6 137 t471) 102 958 89 237 13,721 Net position Dec 31 $ 8,318 $ 5 666 $ 2,652 $ 107,925 $ 85,682 $ 22,243 Sanitation Golf Course 2022 2021 Chan9e 2022 2021 Change Operating revenues $ 3,474 $ 3,423 $ 51 $ 857 $ 689 $ 168 Operating expenses 2 675 3,655 (980) 916 878 38 Operating income $ 799 $ (2322 $ 1,031 $ (58) $ (1892 $ 131 Nonoperating revenue (expenses) Income (loss) before transfers $ 799 $ (232) $ 1,031 $ (58) $ (189) $ 131 Transfers in (out) \497) (497J 10 10 Change in net position $ 301 $ (729) $ 1,031 $ (48) $ (189) $ 141 Net position Jan 1 $ 1,862 $ 2,591 $ (729) $ 317 $ 506 $ (189) Restatement Net position Jan 1, restated 1 862 2,591 (729) 317 506 p 89! Net position Dec 31 $ 2,163 $ 1,862 $ 302 $ 269 $ 317 $ (482 All enterprise funds continue to show healthy net position: 14 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Budgetary Highlights The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis fund balances as of December 31, 2022. Formal budgetary amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Reallocation among departments or line items are not typically recorded as budgetary amendments. However, in addition to formal amendments, departments within the City are allowed to transfer budget between line items within a department. Budgets may also be transferred from department to department within each fund. As a result of these transfers, the original budget and the final budgets may not be the same for departments within a fund. Capital Assets and Debt Administration Capital Assets The total amount invested in Capital Assets for the City as of December 31, 2022, was $351.5 million, net of accumulated depreciation and amortization. The following table illustrates the Capital Asset balances by various classes of assets as of December 31, 2022 and 2021 : Governmental Activity Business-type Activity Total 2022 2021 2022 2021 2022 2021 Equipment, furniture and fixtures $ 2,107 $ 2,378 $ 663 $ 902 $ 2,769 $ 3,280 Vehicles 2,686 2,315 676 885 3,361 3,200 Buildings and improvements 26,568 27,905 7,540 7,964 34,108 35,869 Land 24,647 24,647 2,386 2,386 27,034 27,033 Infrastructure 137,662 140,690 82,592 83,646 220,254 224,336 Leasehold improvements 357 357 357 357 Construction in progress 23,872 20,327 39,713 38,987 63,585 59,314 Total $ 217,899 $ 218,619 $ l33,570 $ 134,770 $ 351,470 $ 353,389 15 City of Salina, Kansas Management's Discussion and Analysis Year Ended December 31, 2022 Changes to capital assets may be summarized as follows: Additions Retirements Depreciation and amortization Net reductions Governmental $ 6,176 (38) (6,858) Business-type Total $ 2,876 $ 9,052 (25) (63) (4,050) (10,908) $ (721) $ (1,199) $ (1 ,920) ====== Additional information on the City's capital assets can be found in Note 5. of the notes to the basic financial statements. Debt Management The City's general policy for general obligation bonds is to issue them for no more than 20 years for the City at Large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity may extend to 20 years. The outstanding general obligation bonds for governmental activities as of December 31, 2022, totaled $65,181,972. There were no temporary notes outstanding. Loans payable outstanding in the amount of $12,240,905 related to SFH QalicB, a blended component unit of the City. Business-type activities had $8,696,478 in revenue bonds outstanding and $6,911,392 in general obligation bonds. Revenues generated by user fees are pledged to retire all of the bonds issued by business-type activities. In addition, a loan payable is outstanding in the amount of $43,798,557. The City engaged in the following debt transactions during 2022: • On April 28th, the City issued Series 2022-A, General Obligation Bonds in the amount of $7,840,000 The proceeds were used to finance construction of a 9th Street Bridge, purchase Sanitation Trucks, replace HVAC units at Tony's Pizza Event Center, Design for the Smoky Hill River Renewal Project, Magnolia Hills Estates No. 2, Stone Lake Phase 3A and the Markley Trail. Additional information on the City's debt can be found in Note 6, of the notes to the basic financial statements. Requests for Information This financial report is intended to give the reader a general overview of the City's finances. Questions about information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West Ash Street, Salina, Kansas, 67401 . 16 Assets Current Assets Cash and investments Receivables, net of allowance Accounts Taxes Interest Leases Interest -leases Inventory Restricted cash and investments Prepaid expenses T olal current assets Noncurrent Assets Capital assets, nondepreciable Construction in progress Land Capital assets, depreciable Less: Accumulated depreciation Leases receivable Total noncurrent assets Total assets Deferred outflows of resources KPERS OPEB deferred outflows of resources OPEB deferred outflows of resources Pension deferred outflows of resources Deferred charge on bond issuance Total deferred outflows ofresources See Notes to Financial Statements City of Salina, Kansas Statement of Net Position December 31, 2022 Prima!)'. Government Total Total Governmental Business-type Total Primary Activities Activities Government $ 130,555,268 $ 49,554,201 $ 180,109,469 2,367,679 1,861,273 4,228,952 16,445,959 16,445,959 5,141 16 5,157 267,481 614,535 882,016 149641 528 52,030,025 201,671,553 23,872,057 39,713,436 63,585,493 24,646,334 2,386,334 27,032,668 314,964,834 174,223,545 489,188,379 145,584,691 82,753,216 228,337,907 217,898,534 133 570,099 351 ,468,633 367 540 062 185,600,124 553,140,186 28,517 14,165 42,682 381 ,683 61,958 443,641 9,834,696 1,143,349 10,978,045 10 244 896 1,219,472 l 1-464.368 Comeonent Units Salina Salina Airport Housing Authorlt): Authorlt;t $ 3,588,407 $ 2,538,529 594,360 103,972 682,175 7,997 38,377 141,863 18,746 113,271 4,891,685 2936,012 475,414 136,350 9,920,765 1,481,569 91,420,736 8,808,594 53,453,721 5,863,078 3,009,970 51,373,164 4,563,435 56,264,849 7 499,447 5,788 276 381,567 157,304 760,424 l 147 779 157 580 17 City of Salina, Kansas Statement of Net Position (Continued) December 31 , 2022 Prima!}'. Government Total Total Total Governmental Business-type Primary Activities Activities Government Liabilities Current Liabilities Accounts payable 2,136,638 429,041 2,565,679 Retainage payable 591,981 591,981 Accrued liabilities 1,336,906 166,528 1,503,434 Accrued interest payable 503,495 502,089 1,005,584 Deposits payable 282,499 282,499 Unearned revenue 6,659,339 6,659,339 Current portion of compensated absences 723,032 160,616 883,648 Current portion of temporary notes payable Current portion of loans payable 3,628,170 3,628,170 Current.portion of leases payable 148,302 148,302 Current portion of revenue bonds payable 795,000 795,000 Current portion of general obligation bonds payable 5.720.000 952 000 6 672 000 Total current liabilities 17,819,693 6,915.943 24 735,636 Noocurrent Liabilities Accrued liabilities Compensated absences 918,446 199,640 1,118,086 Security deposits returnable OPEB obligation 3,419,949 556,290 3,976,239 KPERS OPEB obligation 257,078 127,697 384,775 Net pension liability 38,216,024 3,449,776 41,665,800 Loans payable 12,240,905 40,170,387 52,411,292 Leases payable 500,729 500,729 Revenue bonds payable 7,901,478 7,901,478 General obligation bonds payable 59,461,972 5,959,392 65,421,364 Landfill postclosure care liabilities 2 372,698 2,372,698 Total other liabilities 115 015 103 60 737.358 175 752,461 Total liabilities 132.834,796 67.653 301 200.488,097 Deferred inflows of resources Property taxes 15,815,648 15,815,648 KPERS OPEB deferred inflows of resources 215,265 106,930 322,195 Deferred leases OPEB deferred inflows of resources 608,904 98,839 707,743 Pension deferred inflows of resources 1.867 399 282.587 2.149,286 Total deferred inflows of resources 18507216 488 356 18 995 572 Total liabilities and deferred inflows of resources 151342012 68,141,657 219.483.669 Net Position Net investment in capital assets I 42,398,543 75,932,904 218,331,447 Restricted for: Permanent funds: Expendable 548,172 548,172 Public works 65,593,823 65,593,823 Debt service 2,196,006 1,346,625 3,542,631 Unrestricted 15 706 402 41 398.410 57 104,812 Total net position $ 226,442,946 $ I I 816771939 $ 345 120,885 See Notes to Financial Statements Comeonent Units Salina Salina Airport Housing Authorit~ Authori!}'. 697,635 35,784 222,096 33,655 194,893 70,913 16,497 58,021 2,677 42,157 8,355.000 9,569,802 159 526 24,098 128,146 9,003 942,015 396,633 337,101 16,195,730 17 611,995 420,731 27 181 797 580257 17,499 6,775 3,580,083 24.205 123 444 3 621 787 130219 30 803,584 710,476 24,694,502 4,563,435 154 I 914 542 2,382,962 $ 26.609.044 $ 6 946 551 18 City of Salina, Kansas Statement of Activities For the Year Ended December 31, 2022 Net (Expenses) Revenue and Changes in Net Posrtion P!!:!iram Revenues Prima!l Government Com~nent Units Operating Capllal Total Total Salina Sallna Charges for Grants and Grants and Governmental Business-type Airport Housrng Expenses Services Contributions Contributions Activities Activities Total Autho~ Au~ Gonnamental adhities General government 16,479,381 5,516,275 259,238 (10,703,868) (10,703,868) Publicsarety 29,380,775 4,926,340 1,157,629 (23,296,806) (23,296,806) Public works 11,141,122 407,541 1,405,999 (9,327,582) (9,327,582) Public health and sanitation 1,882,876 60,167 277,304 (1,545,405) (1,545,405) Culture and recreation 8,145,408 967,945 289,816 (6,8'7,647) (6,887,647) Planning and development J,415,263 299,885 16,675 (3,098,703) (3,098,703) lntl:n:il. on loneAerm debt 2,151.604 (2,151,604) 1~1151160◄1 Total sovcmmeotal .activities 72 5% 429 12,178,153 3,406,661 f57,0ll,61SJ (57,011,615 Buslaeu-t)·pe acekkies Solid W113le0isposal 787,730 4,047,428 3,259,698 3,259,698 Water and Se"'tt 15,885,026 21,839,834 S,954,808 5,9.$4,808 Sanitation 2,675,420 J.474.084 798,664 798,664 GolfCourae 91S.796 784,528 1131,268, (131,2681 Total businc5ll•typc 11ctivitics 20 263.972 30.14S.874 9,881,902 9 881 902 Total primary government 92,860 401 42 324 027 3,406,661 (57011615) 9 881 902 ,47.12917131 Component unlta Salina Aiqx>rt Authority 7.317,904 3,118,576 5,292,019 1,092,691 Salina Housing Authority 2,748,717 382,976 2,166,414 155,468 (43,859 Total component units 10,066,621 3,501,552 2,166,414 5,447,487 1,092691 (43,859, Genenl Reve•ues Property taXell levied for General purposes 10,705,736 10,70S,736 2,431,667 Debi service 2,991,642 2,991,642 Mo1or vehicle tax Oencral purJ)OSCJ 2,013,660 2,013,660 Sales tax Ge-m:ral purposes 16,697,633 16,697,633 Selective purposes 14,978,617 14,978,617 Othettaxes Oeneralpwposes 7,438,260 7,438,260 Investment revenues 486,951 486,951 8,383 4,209 Interest income -leases 105,299 Miscellaneous (425,781) 3,027,257 2,601,476 Gain on diaposal or capital al!lets 398,199 398,199 60,778 12,181 Bond isSWIJlce costs (11,640) Trwufen, net S 036300 1s 036 3CXH Total general revenues 60,321.217 12,009,043) 58,312,174 2,594,487 16,390 Change in net position 3,309,602 7,872,859 11 182,461 3 687178 ~27,4691 Net posilion -beginning, aa previously reported 223, 133,.344 93,529,507 316,662,851 22,921,866 6,974,020 Prior period adjusbnent 17,275,573 17,275,573 Net position -beginning, restated 223,133,344 I I0,805,080 Jl),938,424 22,921,866 6,974,020 Net position -ending 226,442,946 118,677,939 s 345,120,885 s 26,609,044 s 6,946,551 See Notes to Financial Statements 19 City of Salina, Kansas Balance Sheet -Governmental Funds December 31, 2022 Former Sales Tax Schilling AFB General Capital Environmental Assets Cash and investments $ 24,903,235 $ 8,337,703 $ 65,823,996 Restricted cash Receivables, net of allowance Accounts 1,274,119 Taxes 13,163,521 Interest 5,141 Inventory 156,576 Due from other funds Total assets $ 39,502,592 $ 8,337,703 $ 65,823,996 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 214,397 274,748 230,173 Retainage payable Accrued expenditures 867,943 Unearned revenue Temporary notes payable Due to other funds Total liabilities 1,082,340 274,748 230 173 Deferred inflows of resources Unavailable revenue -property taxes 12,437,245 Unavailable revenue -other 154,999 Total deferred inflows of resources 12,592,244 Fund Balance Nonspendable 156,576 Restricted 61,424,146 Committed 7,625,529 Assigned 357,738 437,426 4,169,677 Unassigned 25,313,694 Total fund balances 25,828,008 8,062,955 65,593,823 Total liabilities, deferred inflows of resources and fund balances $ 39,502,592 $ 8,337,703 $ 65,823,996 See Notes to Financial Statements Debt Capital Service Projects $ 2,136,972 $ 766,972 3,282,438 $ 5,419,410 $ 766,972 374,488 591,981 966,469 3,223,404 3,223,404 2,196,006 2,748,819 (2,948,3 I 6) 2,196,006 (199,497} $ 5,419,410 $ 766,972 Other Total Federal Governmental Governmental Grants Funds Funds $ 6,876,481 $ 16,437,513 $ 125,282,872 3,069,338 4,343,457 16,445,959 5,141 156,576 $ 6,876,481 19,506,851 146,234,005 62,444 919,900 2,076,150 591,981 14,559 882,502 6,659,339 6,659,339 20,000 20,000 6,721,783 954,459 10,229,972 15,660,649 154,999 15,815,648 156,576 3,937,773 67,557,925 12,448,183 20,073,712 2,166,424 9,880,084 154,698 12 22,520,088 154,698 18,552,392 120,188,385 $ 6,876,481 $ 19,506,851 $ 146,234,005 20 City of Salina, Kansas Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2022 Total Governmental Fund Balances Amounts reported for governmental activities in the statement of net position are different because Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds Cost of capital assets Accumulated depreciation Pension contributions are reported as an expense in the funds and as a deferred outflow of resources in the governmental activities in the statement of net position. Pension fundings are reported as a revenue in the funds and as a deferred inflow of resources in the governmental activities in the statement of net position. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. An internal service fund is used by the City's management to charge the costs of the worker's compensation program. The assets and liabilities of the internal service fund are included with governmental activities. The following liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These liabilities at year end consist of: Compensated absences Net OPEB obligation Net pension liability Bonds payable Loans payable Leases payable Accrued interest on the bonds Net Position of Governmental Activities See Notes to Financial Statements $ 363,483,225 145,584,691 1,641,478 3,677,027 38,216,024 65,181,972 12,240,905 649,031 503,495 $ 120,188,385 217,898,534 10,244,896 (2,691,568) (1,816,406) 4,729,037 (122,109,932) $ 226,442,946 21 City of Salina, Kansas Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Fonner Sales Tax Schilling AFB Debt Capital General Capital Environmental Service Projects Revenues Taxes Real estate taxes $ 10,554,177 $ $ $ 2,991,642 $ Delinquent taxes 117,647 33,912 Motor vehicle taxes 1,652,539 361,121 General sales taxes 16,697,633 Selective sales taxes 10,435,229 Other taxes 6,028,427 Intergovernmental 1,184,485 30,000 Special assessments 1,409,833 Licenses and penmts Charges for services 6,580,579 Investment revenue 206,496 209,872 Donations Miscellaneous 832,136 172,199 Total revenues $ 43,854,119 $ 10,435,229 $ 209,872 $ 4,968,707 $ 30,000 Expenditures Current General government $ 6,783,483 $ $ $ $ Public safety 24,824,641 Public works 5,846,877 Public health and sanitation 800,884 Culture and recreation 4,025,077 Planmng and development 702,721 Miscellaneous Capital outlay 372,260 1,440,852 1,313,816 3,418,056 Debt service Principal retirement 5,005,734 3,609,999 Interest and other charges 1,804,561 121,137 Total expenditures 43,355,943 1,440,852 I 313 816 6,810,295 7,149192 Excess (deficiency) of revenue over (under) expenditures 498,176 8,994,377 (I, 103,944) (1,841,588) (7,119,192) Other Financing Sources (Uses) Issuance ofbonds 7,840,000 Bond and temporary note premium 1,200 Transfers in 5,806,300 1,925,930 Transfers ( out) (1,540,000) ( I 0,333,850) Total other financing sources (uses) 4,266,300 (10,333,850) 1,925,930 7,841,200 Net cbauge in fund balances 4,764,476 (1,339,473) (1,103,944) 84,342 722,008 Fund balances (Deficit) -Beginning of year 21,063,532 9,402,428 66,697,767 2,111,664 (921,505) Fund balances (Deficit)-End of year $ 25,828,008 $ 8,062,955 $ 65,593,823 $ 2,196,006 $ (199,497~ See Notes to Financial Statements Other Total Federal Governmental Governmental Grants Funds Funds $ $ $ 13,545,819 151,559 2,013,660 16,697,633 4,543,388 14,978,617 6,028,427 830.155 2,740,030 4,784,670 1,409,833 14,600 14,600 966,786 7,547,365 44,360 460,728 104,558 104,558 697,126 1,701,461 $ 830,155 9,110,848 69,438,930 $ $ $ 6,783,483 697,328 25,521,969 5,846,877 539,516 313,223 1,653,623 2,273,867 6,298,944 2,047,963 2,750,684 36,188 36,188 6,084,394 12,629,378 8,615,733 200,129 2,125,827 539,516 11,653,092 72,262,706 290,639 (2,542,244) (2,823,776) 7,840,000 1,200 10,000,711 17,732,941 (902,79ll (12,776,641) 9 097,920 12,797,500 290,639 6,555,676 9,973,724 [B5,94tl 11,996,716 110,214,661 $ 154,698 $ 18,552,392 $ 120,188,385 22 City of Salina, Kansas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended December 31, 2022 Total Net Change In Fund Balances -Governmental Funds Amounts reported for governmental activities in the statement of activities are different because Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net position and allocated over their estimated useful lives as annual depreciation and amortization expenses in the statement of activities. This is the amount by which depreciation and amortization expense exceeds capital outlays in the period. Capital outlays Depreciation and amortization expense Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest increased. An internal service fund is used by the City's management to charge the costs of certain activities to the individual funds. The revenues and expenses of certain internal service funds are reported with governmental activities. Certain intrafund transactions have been eliminated between the City's primary funds and the QALICB blended component unit. Some expenses reported in the statement of activities, such as compensated absences and other postemployment benefits, are reported as paid in the governmental funds Pension payments are reported as expenditures in the governmental funds and do not affect the statement of net activities. Other changes Bond, temporary note, and loan proceeds and leases are other financing sources in the governmental funds, but they increase long-term liabilities in the statement of net position and do not affect the statement of activities. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment oflong-term debt and related items. Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Change in Net Position of Governmental Activities See Notes to Financial Statements $ 5,488,675 (6,858,231) $ $ 9,973,724 (1,369,556) (25,777) 220,426 (303,774) 1,213,790 (3,806,741) 280,165 (7,841,200) 4,968,545 3,309,602 23 City of Salina, Kansas Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) General Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negativel Revenues Taxes Real estate taxes $ 10,681,513 $ 10,681,513 $ 10,554,177 $ (127,336) Delinquent taxes 172,000 172,000 117,647 (54,353) Motor vehicle taxes 1,256,306 1,256,306 1,652,539 396,233 General sales tax 13,418,742 13,418,742 16,697,633 3,278,891 Other taxes 5,242,000 5,242,000 6,028,427 786,427 Intergovernmental 1,169,000 1,169,000 1,184,485 15,485 Charges for services 5,703,860 5,703,860 6,580,579 876,719 lnvesbnent revenue 300,000 300,000 206,4% (93,504) Miscellaneous 368,560 368 560 832 136 463,576 Total revenues 38,311,981 38,311,981 43,854,119 5 542 138 Expenditures Current General government 6,322,722 6,322,722 6,783,483 (460,761) Public safety 22,755,735 22,755,735 24,824,641 (2,068,906) Public works 4,682,841 4,682,841 5,846,877 (1,164,036) Public health and sanitation 800,884 (800,884) Culture and recreation 6,542,559 6,542,559 4,025,077 2,517,482 Planning and development 2,840,206 2,840,206 702,721 2,137,485 Capital outlay 240,000 240,000 372 260 (132,260) Total expenditures 43,384,063 43,384,063 43,355,943 28,120 Excess (deficiency) ofrevenues over (under) expendirures (5,072,082) (5,072,082) 498,176 5 570,258 Other Financing Sources (Uses) Transfers in 5,806,300 5,806,300 5,806,300 Transfers (out) (l,655,500J 0 ,655,500) [I 540 000) 115 500 Total other financing sources (uses) 4 150 800 4,150 800 4,266 300 115 500 Net Change in Fund Balance (921,282) (921,282) 4,764,476 5,685,758 Fnnd Balance, Beginning 21,063,532 21,063,532 19,785,424 p,278,108) Fund Balance, Ending $ 20,142,250 $ 20,142,250 $ 24,549,900 $ 4,407,650 Reconcilation to GAAP Accounts receivable 1,304,865 Taxes receivable 13,121,855 Inventory 156,576 Accrued wages (867,943) Deferred revenue (12,437,245) GAAP Fund Balance, December 31 $ 25,828,008 See Notes to Financial Statements 24 City of Salina, Kansas Budget Comparison Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) Sales Tax Capital Fund For the Year Ended December 31, 2022 Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Selective sales tax $ 9,020,000 $ 9,020,000 $ 10,435,229 $ 1,415,229 Total revenues 9,020,000 9,020,000 10,435,229 1,415,229 Expenditures Capital outlay 1,080,000 1,080,000 1,018,926 61,074 Total expenditures 1,080,000 1,080,000 1,018,926 61,074 Excess (deficiency) of revenues over (under) expenditures 7,940,000 7,940,000 9,416,303 1,476,303 Other Financing Sources (Uses) Transfers (out) (10,333,850) (10,333,850) (10,333,850) Total other financing sources (uses) (10,333,850) (I 0,333,850) (10,333,850) Net Change in Fund Balance (2,393,850) (2,393,850) (917,547) 1,476,303 Fund Balance, Beginning 9,402,428 9,402,428 9,402,428 Fund Balance, Ending $ 7,008,578 $ 7,008,578 $ 8,484,881 $ 1,476,303 Reconcilation to GAAP Current year encumbrances (421,926) GAAP Net Change in Fund Balance s (1,339,473) See Notes to Financial Statements 25 Assets Current assets: Cash and investments Receivables, net of allowance Accounts Interest Inventory and prepaid supplies Total current assets Capital assets: Nondepreciable capital assets: Construction in progress Land Depreciable capital assets: Capital assets Less: accumulated depreciation Total capital assets Total assets Deferred outflows of resources: KPERS OPEB deferred outflows of resources OPEB deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources See Notes to Financial Statements City of Salina, Kansas Statement of Net Position Proprietary Funds December 31, 2022 Solid Water Waste and Diseosal Sewer Sanitation $ 9,598,676 $ 38,259,558 $ 1,624,957 371,737 1,240,895 248,641 16 586 413 9,970,429 40,086,866 1,873,598 265 39,713,171 682,000 1,689,334 13,304,495 156,759,503 2,848,648 10,914 668 69 028,270 I 872 464 3,072,092 129 133,738 976 184 13,042,521 169,220,604 2,849,782 1,437 9,203 2,648 7,137 40,318 12,021 147,644 718 854 155,399 156 218 768 375 170 068 Total Internal Enterprise Service Golf Course Funds Funds $ 71,010 $ 49,554,201 $ 5,272,396 1,861,273 16 28,122 614,535 110,905 99132 52 030,025 5 383,301 39,713,436 15,000 2,386,334 1,310,899 174,223,545 168,234 937 814 82 753 216 154 325 388,085 133,570,099 13,909 487,217 1851600, 124 5,397,210 877 14,165 729 2,482 61,958 121,452 1,143,349 50,723 124,811 1219 472 51 452 26 Liabilities Current liabilities: Accounts payable Interest payable Accrued expenses Meter deposits payable Temporary notes payable City of Salina, Kansas Statement of Net Position (Continued) Proprietary Funds December 31, 2022 Solid Water Waste and Disposal Sewer Sanitation Golf Course 61,093 $ 356,305 $ 7,860 $ 3,783 32,805 469,284 17,694 103,891 32,411 12,532 282,499 OJrrent portion of compensated absences payable 11,916 98,150 41,609 8,941 Current portion of accrued claims payable Current portion ofloans payable 3,628,170 Current portion of general obligation bonds payable 234,000 718,000 Current portion of revenue bonds payable 795,000 Total current liabilities 357,508 6,451,299 8],880 25,256 N oncurrent liabilities: Compensated absences payable 14,811 121,997 51,719 11,113 Accrued claims payable OPEB obligation 64,945 361,358 107,739 22,248 KPERS OPEB obligation 12,953 82,966 23,872 7,906 Net pension liability 468,918 2,232,312 499,782 248,764 Payable from restricted assets Loans payable 40,170,387 General obligation bonds payable 1,535,232 4,424,160 Revenue bonds payable 7,901,478 Landfill postclosure care liabilities 2,372,698 Total noncurrent liabilities 4,469,557 55,294,658 683,112 290,031 Total liabilities 4,827,065 61,745,957 764,992 315 287 Deferred inflows of resources KPERS OPEB deferred inflows of resources 10,848 69,472 19,990 6,620 OPEB deferred inflows of resources 11,385 64,318 19,176 3,960 Pension deferred inflows of resources 30,305 182,704 52,303 17,275 Total deferred inflows of resources 52,538 316,494 91,469 27 855 Total Jiabi.lities and deferred inflows of resources 4,879,603 62,062,451 856,461 343 142 Net Position Net investment in capilal assets 3,072,092 71,496,543 976,184 388,085 Restricted Restricted for bond retirement 1,346,625 Unrestricted (deficit) 5,247,044 35,083,360 1 187,205 (1 19,199) Total net position $ 8,319 136 s 107,926,528 $ 2,163,389 $ 268,886 See Notes to Financial Statements Total Internal Enterprise Service Funds Funds $ 429,041 $ 60,488 502,089 166,528 32,460 282,499 160,616 7,407 421,944 3,628,170 952,000 795,000 6 915,943 522,299 199,640 9,206 556,290 127,697 6,574 3,449,776 161,523 40,170,387 5,959,392 7,901,478 2,372,698 60,737,358 177,303 67,653,301 699 602 106,930 5,505 98,839 282,587 14,518 488,356 20023 68,141,657 719,625 75,932,904 13,909 1,346,625 41,398,410 4,715,128 s I 18,677939 s 4,729,037 27 City of Salina, Kansas Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2022 Solid Waste Water and Dlsposal Sewer Sanitation Golf Course Total Operating Revenues Charges for services $ 4,047,428 $ 21,839,834 $ 3,474,084 $ 784,528 $ 30,145,874 Miscellaneous 51972 2 902 407 30 72,848 3,027,257 Total operating revenues 4 099400 24,742 241 3,474,114 857 376 33 173 131 Operating Expenses General government Public works 639,495 10,883,710 2,516,563 14,039,768 Recreation 870,812 870,812 Depreciation 134 242 3 711,786 158,857 44984 4 049,869 Total operating expenses 773,737 14,595,496 2 675 420 915,796 18,960,449 Operating income (loss) 3,325,663 10,146,745 798 694 !58,420) 14,212,682 Nonoperattng Revenues (Expenses) Interest expense (38,071) (1,370,866) (1,408,937) Accretion ofbond premium 24 078 81,336 105 414 Total nonoperating revenues (expenses) (13,993) (1,289,530} (1,303,523) Income (loss) before transfers 3,311 670 8,857,215 798 694 (58,420) 12,909,159 Transfers in 42,500 5,178,672 10,000 5,231,172 Transfers out (701,700) (9,068 422) (497,350) (10,267,472) Change in net position 2,652 470 4,967 465 301,344 (48,420) 7,872,859 Net Position, Beginning, as previously reported 5,666,666 85,683,490 1,862,045 317,306 93,529,507 Prior period adjustment 17,275,573 17,275,573 Net Position, Beginning, restated 5,666,666 102,959,063 1,862,045 317,306 110,805,080 Net Position, Ending $ 8,319,136 $ 107,926,528 $ 211631389 $ 268,886 $ 118,677,939 See Notes to Financial Statements Internal Service Fund $ 8,022,849 26223 8,049,072 7,908,646 7,908,646 140 426 140,426 80,000 220 426 4,508,611 4,508,61] $ 4,729,037 28 City of Salina, Kansas Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 SolidWastt Water and Dise2saJ Sewer Sanitation Golf Course Casb Flows from Operating Activities Cash received from customers and users $ 3,915,233 $ 21,950,239 $ 3,462,226 s 784,528 Cash paid to suppliers of goods or services (193,815) (7,198,055) (1,523,673) (438,587) Cash paid to employees (560,062) (3,834,187) (1,087,893) (449,528) Other operating receipts 51,972 2,762,840 30 72 848 Net cash provided by (used in) operating activities 3,213,328 13,680,837 850,690 (30,739) Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets (2,850,764) Proceeds from loans 2,035,480 Principal payments -loans (1,839,714) (1,975,289) Principal payments -general obligation bonth (1,035,351) Principal payments -revenue bonds (775,000) Interest paid (40.274) {1.402.384) Net cash used in capital and related financing activities (1.879.988) (6.003.308) Cash Flows from Noncapital and Related Financing Activities Transfers in 42,500 5,178,672 10,000 Transfers out (701,700) (9,068,422) (497,350) Net cash provided by (used in) noncapital financing activities (659,200) (3,889,750) (497,350) 10,000 Cash and Cash Equivalents, Beginning of Year 8 924 536 34,471,779 1.271,617 91,749 Cash and Cash Equivale.ts, End of Year s 9,598,676 s 38,259,558 $ 1,624,957 71,010 Reconciliation of Operating Income (Loss) to Net Cash Provided by (used in) Operating Activities ~rating income (loss) $ 3,325,663 $ 10,146,745 798,694 $ (58,420) Adjustment to reconcile operating income (loss) to nm cash provided by (used in) operating activities: Depreciation expense 134,242 3,711,786 158,857 44,984 (Increase) decrease in receivables (132,195) 110,405 (11,858) (Increase) decrease in inventory (199,446) (7,943) (Increase) decrease in deferred outfloVIIS (41,190) (199,127) (42,958) (33,544) Increase (decrease) in accounts payable (125,276) 192,942 1,096 3,358 Increase (decrease) in accrued expenses 17,694 103,891 32,411 12,532 Increase (decrease) in accrued compensation absences (21,624) (178,116) (75,510) (16,226) Increase (decrease) in claims payable (139,567) Increase (decrease) in net pension liability 161,453 768,607 172,079 85,652 Increase, (decrease) in net KPERS OPEB obligation (3,763) (24,100) (6,935) (2,296) Increase (decrease) in net OPEB obligation (1,567) (8,719) (2,600) (537) Increase (decrease) in meter deposits payable Increase (decrease) in deferred inflows poo,1091 (604,464l !172,586) 158 299) Total adjustments (112,335) 3,534,092 51,996 27,681 Net cash provided by (used in) operating activities $ 3,213.328 $ 13,680,837 850,690 $ (30,739) See Notes to Financial Statements Internal Total Service FWld s 30,112,226 s 8,022,849 (9,354,130) (8,273,155) (5,931,670) 14,496 2,887,690 26,223 17,714,116 (209,587) (2,850,764) 2,035,480 (3,815,003) (1,035,351) (775,000) p .442,658) {7,883.296) 5,231,172 80,000 (10,267.472) (5,036,300) 80,000 44,759 681 5 401,983 s 49,554,201 s 5,272,396 $ 14,212,682 $ 140,426 4,049,869 (33,648) (207,389) 25,470 (316,819) (13,376) 72,120 (19,467) 166,528 (291,476) (176,439) (139,567) (169,062) 1,187,791 55,614 (37,094) (1,910) (13,423) (935.458) t50,843J 3,501,434 (350,013) 17,714,116 $ (209,~87) 29 Assets Cash and investments Total assets City of Salina, Kansas Statement of Fiduciary Net Position Fiduciary Funds December 31, 2022 Liabilities and Net Position Liabilities Accounts payable Total liabilities Net Position Restricted for individuals, organizations, and other governments Total net position See Notes to Financial Statements $ $ Custodial Fund 6,059 6,059 6,059 6,059 30 City of Salina, Kansas Statement of Changes in Fiduciary Net Position Fiduciary Funds December 31, 2022 Custodial Funds Additions Miscellaneous $ 25,964 Total additions 25,964 Deductions Contractual services 19,906 Total deductions 19,906 Change in Net Position 6,058 Net Position, Beginning of Year 1 Net Position, End of Year $ 6,059 See Notes to Financial Statements 31 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 1: Summary of Significant Accounting Policies Reporting Entity The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor as part of a five-member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the government-wide statements (see note below for descriptions) to emphasize that it is legally separate from the government. The blended component unit is reported as a governmental fund of the City (see note below for description) to emphasize that, while it is a legally separate entity, it is so intertwined with the City that it is, in substance, part of the City. Discretely Presented Component Units Salina Airport Authority -The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling A.F. B that was closed by the United States Department of Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. The Commission must also approve the issuance of general obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end. Housing Authority of the City of Salina -The purpose of the Housing Authority of the City of Salina (Housing Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 2022. Blended Component Unit Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH QalicB) -SFH QalicB was created to function as a qualified low-income community business, as defined in Section 45D(d)(2) of the Internal Revenue Code of 1986 for the purpose of providing an indoor sports facility in the downtown corridor of the City of Salina. The purpose of the facility is to cater to local residents as well as host regional sports tournaments with the anticipation of becoming a regional destination for youth athletics. This mix of participation is expected to provide the most consistent visitation and tourism for the downtown district. The SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. The field house is staffed by City of Salina employees. SFH QalicB has a December 31 fiscal year end. SFH QalicB is a not-for-profit organization exempt from income tax under Section 5Dl(c)(3) of the Internal Revenue Code and is exempt from similar state and local taxes. 32 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Complete financial statements for each of the individual component units may be obtained at the respective entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, Kansas Joint Ventures Housing Authority of the City of Salina 469 South 5th Salina, Kansas Salina Field House QALICB, Inc. 300 West Ash Street Salina, Kansas The City of Salina also participates with Saline County in one joint venture. The City and County organized the Saline County-City Building Authority to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for the joint venture. Separate financial statements are available from the governing board of the joint venture. Total unencumbered cash, December 31, 2022 Total change in unencumbered cash, year ended December 31, 2022 Total cash receipts, year ended December 31, 2022 Total cash receipts from City of Salina (Kansas Regulatory Basis) Building Authority (Audited) $ 2,065,833 44,765 1,576,973 504,888 Complete financial statements for the joint venture may be obtained at the entity's administrative office. Saline County-City Building Authority 300 West Ash Street Salina, Kansas Government-wide and Fund Financial Statements The statement of net position and the statement of activities report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges between the City's governmental and business-type activities. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 33 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items, which are not classified as program revenues, are presented as general revenues of the City. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column in the fund financial statements. Basis of Accounting and Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes levied for, and interest associated with, the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net position. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for risk management, worker's compensation, health insurance, and central garage that are provided to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. 34 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The fiduciary funds are used by the City to account for resources held by the City for the benefit of third parties. Because the resources of these funds are not available for the City's operations, they are not presented in the government-wide financial statements. The City's lone fiduciary fund is reported as a custodial fund. The City reports the following major governmental funds: General Fund -To account for resources traditionally associated with government, which are not required legally, or by sound financial management, to be accounted for in another fund. Sales Tax Capital Fund (special revenue fund)-To account for 58% of the 1.25 cent sales tax designated for capital, debt, and human services purposes. Former Schilling AFB Environmental Fund (capital projects fund)-To account for the funding provided by U.S. Government and expenditures necessary to abate groundwater contamination beneath the property formerly identified as Schilling Air Force Base. Debt Service Fund -To account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment. Capital Projects Fund -To account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. The City reports the following major proprietary funds: • Solid Waste Disposal Fund -To account for the activities of the City's landfill. • Water and Sewer Fund -To account for the activities of the City's water and sewer operations. • Sanitation Fund -To account for the operations of the City's refuse collection service. • Golf Course Fund -To account for the operations of the municipal golf course. The City reports 43 nonmajor governmental funds, three nonmajor permanent funds, one nonmajor debt service fund and three internal service funds. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 35 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Accounts Receivable and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for doubtful accounts, if applicable. Properly taxes receivable. Collection of current year property tax by the County Treasurer is not completed, apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City and, therefore, are not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred inflows of resources and are identical to the adopted budget for 2022. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole. The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the second 50% then being due on or before May 1 O of the following year. This procedure eliminates the need to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. Taxes remaining due and unpaid as of February 15 and July 1 are subject to collection procedures prescribed in state statutes. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 36 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Pooled Cash and Investments The City maintains a cash and investment pool that is available for use by all funds managed by the City. Each fund type's portion of this pool is displayed in the financial statements as "Cash and Investments." The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at fair value. Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized investments. Investments with maturity dates greater than three months are stated separately. Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund based on the percentage of funds invested to total investments. All investments are carried at fair value. Capital Assets (Including Intangible Assets) Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Capital assets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is recognized as an expense (financial statements using the economic resources measurement focus) or an expenditure (financial statements using the current financial resources measurement focus) in accordance with GASB 89. Capital assets of the primary government, are depreciated/amortized using the straight-line method over the following estimated useful lives: Buildings Other equipment Vehicles Infrastructure 50 years 5 -15 years 6 -10 years 30 -50 years 37 Lease Assets City of Salina, Kansas Notes to Financial Statements December 31, 2022 The City initially measures lease assets as the sum of the following: a. the amount of the initial measurement of the lease liability. lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term c. initial direct costs that are ancillary charges necessary to place the lease asset into service. Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. The amortization of the lease asset is reported as an outflow of resources (amortization expense). Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave that can be accumulated. Employees with more than five years of service with the City are paid for one-third of their accumulated sick leave at their current wage scale upon termination of employment in good standing. In 2001, a limited buy back policy was instituted. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment. Employees must use 50% of leave accrued each calendar year and an employee's maximum accrued vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24-hour shifts). Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the government fund financial statements that will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the business-type funds and government wide financial statements are recorded as an expense and liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. The General Fund, Bicentennial Center Fund, Central Garage Fund, Sanitation Fund, Solid Waste Fund, Golf Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for compensated absences. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports changes in the pension and OPEB plan liability proportion and assumptions, net difference between projected and actual earnings on pension plan and OPEB plan investments and differences between pension and OPEB plan liability expected and actual experience as deferred outflows of resources in the governmental activities. 38 City of Salina, Kansas Notes to Financial Statements December 31, 2022 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Unavailable revenue-property taxes is reported in the governmental funds balance sheet. Additionally, differences between expected and actual experience, changes in assumptions, changes in the pension liability, OPEB plan proportion and unearned property taxes are reported as deferred inflows. These amounts are deferred and recognized as an inflow of resources as provided for by applicable accounting pronouncements. Net Position Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Temporary Notes Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits the temporary financing of such improvements by the issuance of temporary notes. Temporary notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes outstanding are retired from the proceeds of the sale of general obligation bonds. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are recognized as an expense in the period incurred under GASB 65. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 39 Fund Balances City of Salina, Kansas Notes to Financial Statements December 31, 2022 In the fund financial statements, governmental funds report fund balance in the following classifications: nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. Committed fund balances include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Commission. Assigned fund balances include amounts that are constrained by the City management's intent to be used for specific purposes but are neither restricted nor committed. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts are considered to be spent first. When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balance is available, the following is the order in which resources will be expended: committed, assigned and unassigned. The following is the detail for fund balance classifications in the governmental funds financial statements: Malor Governmental Funds Former Other Total Sales Tax Schilling AFB Debt Capital Federal Governmental Governmental General Cal!ltal Environmental Service Projects Grants Funds Funds Fund balances: Nonspendable for: Inventory $ 156,576 $ $ s $ $ s s 156,576 Reslricted for: Public works 2,246,841 2,246,841 Public health and sanitation 234 234 Culture and recreation 432,161 432,161 Planning and development 1,258,537 1,258,537 Capital improvements 61,424,146 61,424,146 Debt payments 2,196,006 2,196,006 Committed for: Public safety 992,571 992,571 Culture and recreation 766,819 766,819 Planning and development 3,227,973 3,227,973 Cemetery 548,172 548,172 Capital improvements 7,625,529 6,912,648 14,538,177 Assigned for: General government 357,738 33,519 391,257 Public safety 50,300 50,300 Public works Culture and recreation 52,173 52,173 Capital improvements 437,426 4,169,677 2,748,819 2,030,432 9,386,354 Unassigned: 25,313,694 !2,948,316) 154,698 12 22,520,088 Total fund balances $ 25,828,008 $ 8,062,955 $ 65,593,823 $ 2,196,006 $ (199,497j $ 154 698 $ 18,552,392 $ 120 188,385 40 Note 2: City of Salina, Kansas Notes to Financial Statements December 31, 2022 Deposits, Investments and Investment Income Deposits and Investments The City's cash is considered to be active funds by management and is invested according to KSA 9-1401. The statute requires that banks eligible to hold active funds have a main or branch bank in the county in which the City is located or in a county adjacent to the City and the banks provide an acceptable rate for active funds. Various City investments are considered to be idle funds by management and are invested according to KSA 12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the funds: U.S. Treasury bills or notes or the Municipal Investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute. Some of the City's investments are of bond proceeds invested pursuant to KSA 10-131. This statute allows additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA 12-1675 or include other investments such as the KMIP, direct obligations of the U.S. government or any agency thereof, investment agreements with a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's investors service or Standard and Poor's corporation, and various other investments as specified in KSA 10-131. As of December 31 , 2022, the City has the following investments: Investment Type Kansas Municipal Investment Pool Total fair value $ $ Fair Value 320,764 320,764 Rating S&P AAA£'S 1 + The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Governor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary government securities dealers. The City's investment policy provides direction on concentration risk. The City policy states that funds shall be diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities, instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices insuring that the next disbursement date and payroll date are covered through maturing investments, marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts. Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis, and that all securities are adequately collateralized. 41 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to insure the ability to meet normal anticipated cash flow needs. When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however, such transactions shall not be a part of the normal course of business. The City recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to KSA 9- 1402. As of December 31, 2022, the City's deposits were considered fully secured. Restricted cash is comprised of an interest reserve account (the "Interest Reserve"), and an operating reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest Reserve and the Operating Reserve accounts are available as part of the loans payable financing (see Note 6). As of December 31 , 2022, the balance of the Interest Reserve and Operating Reserve was $54,271 and $127,065, respectively. 42 Note 3: Receivables City of Salina, Kansas Notes to Flnancial Statements December 31, 2022 Receivables as of year-end, including the applicable allowances for doubtful accounts, are as follows: Debt Other General Service Governmental Total Primary Government Receivables: Accounts $ 8,240,843 $ $ 3,069,624 $ ll,310,467 Taxes 13,163,521 3,282,438 16,445,959 Interest 5,141 500 5,641 Gross receivables 21,409,505 3,282,438 3,070,124 27,762,067 Less: allowance for uncollectibles (6,966,724) (786) (6,967,510) Total $ 14.442.781 $ 3282.438 $ 3,069.338 $ 20.794,557 Solid Water Waste and Dlsposal Sewer Sanitation Total Primary Government Receivables: Accounts $ 371,737 $ 2,357,678 $ 377,662 $ 14,417,544 Taxes 16,445,959 Interest 16 5,657 Gross receivables 371,753 2,357,678 377,662 30,869,160 Less: allowance for uncollectibles (1,116,783) (129,021) (8,213,314) Total $ 371 .753 $ 1.240.895 $ 248.641 $ 22,655,846 Component Units Salina Airport Authority Receivables: Accounts $ 91,730 Grants 504,130 Leases 682,175 Interest -leases 7,997 Less: allowance for uncollectibles (1,500) Total Salina Airport Authority 1,284,532 Salina Housing Authority Receivables: Accounts $ 110,593 Less: allowance for uncollectibles (6,621) Total Salina Housing Authority 103,972 Total $ 1.388.504 43 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 4: Stewardship, Compliance and Accountability Budgetary Information Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds. The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget: 1. Preparation of the budget for the succeeding year on or before August 1. 2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5. 3. Public hearing on or before August 15, but at least ten days after publication of notice of hearing. 4. Adoption of the final budget on or before August 25. If the City is holding a revenue neutral rate hearing, the budget timeline for adoption of the final budget has been adjusted to on or before September 20th. The City was not required to hold a revenue neutral rate hearing for this year. The statutes allow the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The 2022 budget was amended during the year for the Special Alcohol, Neighborhood Parks, TPEC, Solid Waste, Central Garage, Golf Course and Tourism and Convention funds. The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the statutory basis of accounting, in which, revenues are recognized when cash is received, and expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract. All unencumbered appropriations (legal budget expenditure authority) lapse at year end. 44 City of Salina, Kansas Notes to Financial Statements December 31, 2022 A legal operating budget is not required for capital projects funds, Former Schilling AFB Environmental fund, SFH QalicB fund, nonmajor debt service funds, trust funds, permanent funds, and the following special revenue funds: Community Development Revolving, Downtown TIF District #1, South 9th CID, Downtown CID, Alley CID, Downtown Hotel CID, North 9th CID, STAR Bonds Subprojects, State Grants, 911 Communications, Kenwood Cove Capital, Special Law Enforcement, Police Grants, Federal Grants, DARE Donations, War Memorial Maintenance, Federal CARE Grant, Police Department Federal Forfeiture, Homeowners' Assistance, Private Grants, Animal Shelter Donations, Special Assessments Escrow, Court Bond and Restitution, Police Investigation Account, Citizenship, DTF Local, DTF Reserve, Beechcraft Remediation Settlement and Bail Bond Escrow funds. A legal operating budget is not required for Internal Service Funds, however, actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. Expenditures in Excess of Budget For the year ended December 31, 2022, for the Debt Service Fund had actual expenditures in excess of budget by $109,295. This excess spending was covered by available cash basis reserves. Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive of revenue bonds and special assessment bonds) the City may have outstanding to 30 percent of the assessed value of all tangible taxable property within the City, as certified to the county clerk on the proceeding August 25. As of December 31, 2022, the statutory limit for the City was $167,634,982, providing a debt margin of $108,644,195. Deficit Net Position/Fund Balances At December 31, 2022, the capital projects fund, a major fund, had a deficit fund balance of $199,497. 45 Note 5: Capital Assets City of Salina, Kansas Notes to Financial Statements December 31, 2022 Capital assets activity for the year ended December 31 , 2022, was: Beginning Balance Increases Decreases Governmental Activities Capital assets not being depreciated: Construction in progress $ 20,326,839 $ 5,167,934 $ Land 24,646 334 Total capital assets not being depreciated 44,973,173 5,167,934 Capital assets being depreciated/amortized: lnfrastructure 241,307,031 Buildings and improvements 53,158,946 Vehicles 10,387,525 278,950 (762,364) Equipment, furniture and fixtures 7,885,409 80,207 Leased vehicles 649,031 Leasehold improvements 357,383 Totals capital assets being depreciated/amortized 313,096,294 1,008,188 (762,364) Less accumulated depreciation/amortization for: Infrastructure 100,616,614 4,650,686 Buildings and improvements 25,253,821 1,337,075 Vehicles 8,072,895 518,648 (723,948) Equipment, furniture and fixtures 5 507,078 351,822 Total accumulated depreciation/amortization 139 450 408 6 858 231 !723,948! Total capital assets, being depreciated/amortized, net $ 218 619059 $ (682,109) $ (38,416) Beginning Balance Increases Decreases (Restated) Business-type Activities Capital assets not being depreciated: Construction in progress $ 38,987,075 $ 2,875,632 $ Land 2,386 334 Total capital assets not being depreciated 41373409 2,875,632 Capital assets being depreciated: Infrastructure 140,03 l ,87 I Buildings and improvements 22,864,164 Vehicles 3,781,267 (228,767) Equipment, furniture, and fixtures 5.625,739 Totals capital assets being depreciated 172 303 041 (228,767) Less accumulated depreciation for: Infrastructure 56,385,977 3,203,199 Buildings and improvements 14,900,421 423,824 Vehicles 2,896,199 184,275 (203,899) Equipment, furniture, and fixtures 4,724,650 238 570 Total accumulated depreciation 78,907 247 4,049,868 (203,899) Total capital assets, being depreciated, net $ 134,769,203 $ !1,174~36) s \24,8681 Ending Transfers Balance $ (1,622,716) $ 23,872,057 24 646 334 (1,622,716) 48 518 391 1,622,716 242,929,747 53,158,946 9,904,111 7,965,616 649,031 357,383 1622 716 314,964,834 105,267,300 26,590,896 7,867,595 5,858,900 145,584 691 $ $ 217,898,534 Ending Transfers Balance $ (2,149,271) $ 39,713,436 2,386,334 12,149,271) 42,099,770 2,149,271 142,181,142 22,864,164 3,552,500 5,625 739 2149271 174,223,545 59,589,176 15,324,245 2,876,575 4,963,220 82,753,216 $ $ 133,570,099 46 City of Salina, Kansas Notes to Financial Statements December 31, 2022 During 2022 the City adjusted the beginning balances of several capital asset accounts in order for the ending balances to tie to their depreciation schedules. As a result of this restatement, beginning net position for Business-type Activities (Water and Sewer Fund) was increased by $17,275,573. The City's depreciation/amortization expense was charged to governmental functions as follows: Governmental Activities General government Public safety Public works Public health Culture and recreation Planning and development Total depreciation expense -governmental activities Business-type Activities Solid waste disposal Water and sewer Sanitation Golf course division Total depreciation expense -business-type activities $ $ $ 21,437 791,376 4,591,522 30,508 1,089,408 333,980 6.858.231 134,242 3,711,786 158,857 44,983 4,049,868 47 Note 6: City of Salina, Kansas Notes to Financial Statements December 31, 2022 Long-Term Obligations The following is a summary of changes in long-term obligations for fiscal year 2022: Beginning Ending Balance Additions Reductions Balance Governmental Activities General obligation bonds $ 59,582,649 $ 7,840,000 $ (4,914,649) $ 62,508,000 General obligation bond premium 3,041,369 (367,397) 2,673,972 Loans payable 12,640,000 12,640,000 Loans payable discount (413,058) 13,963 (399,095) Lease payable 702,725 (53,694) 649,031 OPEB liability 3,502,471 459.451 (541,973) 3,419,949 KPERS OPEB liability 340,238 46,371 (129,531) 257,078 Net pension liability 25,057,864 13,158,160 38,216,024 Accrued compensation 2,838,655 55,008 (1,252,185) 1,641,478 Temporary notes 3,647,188 (3,647,188) Temporary note premium 66,598 (66,598} Total $ 110,303,974 $ 9,103,555 $ 2,198,908 $ 121,606,437 Business-type Activities General obligation bonds $ 7,672,351 $ -$ (1,035,351) $ 6,637,000 General obligation bond premium 326,140 (51,748) 274,392 Loans payable 43,966,366 2,035,480 (2,203,289) 43,798,557 Revenue bonds 8,865,000 (775,000) 8,090,000 Revenue bond premium 660,145 (53,667) 606,478 OPEB liability 569,713 74,732 (88,155) 556,290 KPERS OPEB liability 164,791 20,687 (57,781) 127,697 Net pension liability 2,261,985 1,187,791 3,449,776 Accrued compensation 651,732 (291,476) 360,256 Temporary notes 1,582,812 (1,582,812) Temporary note premium 28,902 (28,9021 Total $ 66 749 937 $ -$ (4,980,390) $ 63,900,446 Due Within One Year $ 5,353,000 367,000 148,302 723,032 $ 6,591,334 $ 952,000 39,399 3,628,170 795,000 66,015 160,616 $ 5,641 200 48 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following is a detailed listing of the City's general obligation bonds outstanding as of December 31, 2022: General Obli2ation Bonds -Prima!] Government Governmental Activities Pureose, Series Issue Date Flnal Maturi~ Interest Rates Original Issue Outstandin!! Internal Improvements, 2013A 2/15/2013 10/1/2028 2.60% to 3.65% $ 1,360,000 $ 630,000 Improvement and Refunding, 2015A 7/29/2015 10/1/2035 3.00 to 3.50%, 6,825,000 4,420,000 Internal Improvements, 2016A 7/26/2016 10/1/2036 2.00% to 3.00% 6,570,000 4,925,000 Refunding, 2016B 7/26/2016 10/1/2031 2.00% to 5.00% 13,750,000 6,517,000 Internal Improvements, 2017 A 7/27/2017 10/1/2037 3.00% to 3.38% 9,310,000 7,520,000 Internal Improvements, 2018A ll/27/2018 10/1/2033 3.15% to 4.00% 2,090,000 1,630,000 Internal Improvements, 2019A 4/24/2019 10/1/2039 3.00% to 4.00% 11,090,000 10,015,000 Internal Improvements, 2020A 4/29/2020 10/1/2035 2.00% to 3.00% 5,210,000 2,727,000 Internal Improvements, 2020B 11/19/2020 10/1/2036 2.00% to 3.00"/o 8,450,000 3,533,000 Internal Improvements, 2021 A 4/29/2021 10/1/2041 1.63% to 4.50"/o 7,645,000 7,420,000 Refunding, 2021B 9/8/2021 10/1/2034 1.15% to 2.00% 6,220,000 5,331,000 Internal Improvements, 2022A 4/28/2022 10/1/2042 2.5% to 4.00% 7,840,000 7,840,000 $ 62,508.000 The following is a detailed listing of the City's revenue bonds outstanding as of December 31, 2022: Purpose, Series Revenue & Refunding, 2019 Revenue Bonds -Primary Government Issue Date 9/11/2029 Final Maturity 10/1/2031 Interest Rates 3.00% Original Issue $ 10,330,000 The following is a detailed listing of the City's loans payable as of December 31, 2022: Loans Pa~able -Prima!] Government Governmental Activities PU!J!0Se Issue Date Final Maturi!i: Interest Rates Ori11inal Issue Outstandinl! Kansas Public Water Supply 2629 8/1/2014 8/1/2034 2.12% $ 8,562,911 $ Kansas Public Water Supply 2917 8/15/2018 2/1/2040 2.33% 32,000,000 Kansas Public Water Supply 2957 7/2/2018 2/1/2040 2.33% 4,250,000 Kansas Public Water Supply 2997 7/7/2020 8/1/2041 1.43% 4,250,000 Kansas Water Pollution Control 2049 2/22/2021 9/1/2042 1.30% 31,500,000 Kansas Water Pollution Control 2050 12/11/2018 3/1/2035 2.54% 2,250,000 Dakotas Note A 7/27/2016 12/10/2050 1.58% 6,016,500 6,016,500 Dakotas Note B 7/27/2016 12/10/2050 1.58% 2,623,500 2,623,500 CNMCNoteA 7/27/2016 12/10/2050 1.58% 2,674,000 2,674,000 CNMCNoteB 7/27/2016 12/10/2050 1.58% 1,326,000 1,326,000 $ 12 640,000 Business-type Activities Outstandinl! $ 1,688,000 1,408,000 3,252,000 289,000 $ 6.637.000 Business-type Activities Outstanding $ 8,090,000 Business-type Activities Outstanding 5,286,080 28,422,912 3,544,914 2,784,646 2,707,614 1,052,391 $ 43,798,557 49 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following is a detailed listing of the long-term debt outstanding of Salina Airport Authority, a component unit of the City, as of December 31, 2022: General Obllaatlon Bonds -Comeonent Units Original Pureose, Serles Issue Date Final Maturi~ Interest Rates Issue Outstanding Internal Improvement & Refunding, 2015A 8/28/2015 9/1/2025 1.50% to 3.55% $ 3,075,000 $ 255,000 Taxable Refunding, 2017 A 7/12/2017 9/1/2030 1.61% to 3.35% 10,255,000 9,420,000 Refunding, 2017B 7/12/2017 9/1/2031 2.00% to 3.00% 4,835,000 4,710,000 Refunding, 2019A 10/10/2019 9/1/2029 2.10% to 3.10% 675,000 490,000 Taxable Refunding, 2019B 10/10/2019 9/1/2023 2.80% to 3.00% 3,455,000 870,000 Refunding, 2021A 8/17/2021 9/1/2031 0.25% to 2.00% 2,345,000 2,200,000 Less: Unamortized bond premium 13,209 Plus: Unamortized bond discount 1s2,419l $ 17 905.730 Temeora!:l Notes • Comeonent Units Original PU!J!0Se, Series Issue Date Final Maturi~ Interest Rates Issue Outstanding Internal Improvements, 2020-1 9/1/2020 9/1/2023 0.48% $ 2,100,000 $ 2,100,000 Taxable, 2021-1 11/10/2021 9/1/2023 0.45% 3,545,000 3,545,000 Taxable, 2022-1 7/1/2022 7/1/2023 2.25% 1,000,000 I 000 000 $ 6 645 000 Financed Purchase Agreement -Component Units Original Pureose, Series Issue Date Final Maturi~ Interest Rates Issue Outstanding Building 824 Improvements 8/12/2020 9/1/2030 3.30% $ 460,000 $ 379,258 Annual debt service requirements to maturity for general obligation bonds: General Obll9atlon Bonds -Prima!l'. Government Year Ending Governmental Activities Business-ti:]!! Activities December 31, Princif!al Interest Total PrinClf!!!I Interest Total 2023 $ 5,353,000 $ 1,899,852 $ 7,252,852 $ 952,000 176,765 $ 1,128,765 2024 5,392,000 1,587,816 6,979,816 873,000 140,525 1,013,525 2025 5,195,000 1,432,854 6,627,854 805,000 118,312 923,312 2026 4,717,000 1,279,937 5,996,937 593,000 97,309 690,309 2027 4,562,000 1,137,532 5,699,532 558,000 81,857 639,857 2028 -2032 19,250,000 3,874,260 23,124,260 1,845,000 228,729 2,073,729 2033 -2037 14,599,000 1,546,848 16,145,848 J,011,000 47,476 1,058,476 2038 -2042 3,440,000 190,200 3,630,200 Total $ 62,508,000 $ 12,949,299 $ 75,457,299 $ 6 637,000 $ 890,973 $ 7,527,973 50 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Revenue Bonds -Primary Government Year Ending Business-!l'.1."!e Activities December 31, Princil,"!al Interest Total 2023 $ 795,000 $ 242,700 $ 1,037,700 2024 820,000 218,850 1,038,850 2025 845,000 194,250 1,039,250 2026 870,000 168,900 1,038,900 2027 895,000 142,800 1,037,800 2028 -2031 3,865,000 293,850 4,158,850 Total $ 8,090,000 $ 1,261,350 $ 9,351,350 Annual debt service requirements to maturity of the for loans payable: Year Ending December 31, Total 2023 $ 2024 2025 2026 616,140 2027 616,140 Thereafter 11,407,720 $ 12,640,000 51 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Annual debt service requirements to maturity of the long-term debt outstanding of the City's component unit, the Salina Airport Authority, as of December 31, 2022: General Obliaation Bonds -Comeonent Units Year Ending December 31, Princieal Interest Total 2023 $ 8,355,000 $ 546,911 $ 8,901,911 2024 1,760,000 454,540 2,214,540 2025 1,810,000 411,120 2,221,120 2026 1,865,000 363,633 2,228,633 2027 1,905,000 312,193 2,217,193 2028 -2032 8,215,000 687,076 8,902,076 2033 -2036 680,000 33,795 713,795 Total $ 24,590,000 $ 2,809,268 $ 27,399,268 Financed Purchase Aareement-Component Units Year Ending December 31, Principal Interest Total 2023 $ 42,157 $ 12,171 $ 54,328 2024 43,560 10,768 54,328 2025 45,009 9,318 54,327 2026 46,507 7,821 54,328 2027 48,055 6,273 54,328 2028 -2030 153,970 7,697 161,667 Total $ 379,258 $ 54,048 $ 433,306 Kansas Public Water Supply Loans. The City has engaged in a loan with the Kansas Public Water Supply Fund. The following displays annual debt service requirements to maturity for the loan payable to be paid from service revenues, for the full proceeds amount: Loans Pal'.able -Prima!l Government Year Ending Business·!l'.l!e Activities December 31, Princi(!al Interest Total 2023 $ 391,228 $ 110,002 $ 501,230 2024 399,566 101,664 501,230 2025 408,082 93,148 501,230 2026 416,779 84,451 501,230 2027 425,662 75,569 501,231 Thereafter 3,244,763 263,850 3,508,613 Total $ 5,2861080 $ 728,684 $ 6,014,764 52 City of Salina, Kansas Notes to Financial Statements December 31, 2022 During 2019, the City entered into additional loans with the Kansas Public Water Supply Fund and the Kansas Water Pollution Control Fund. The water supply loans allow the City to borrow up to $36,170,000 with a gross interest rate of 2.33%. The water pollution control loan allows the City to borrow up to $2,250,000 with a gross interest rate of 2.54%. Amortization schedules for the loans are not yet available since the loans have not been fully finalized. The purpose of the loans are to finance various water and sewer infrastructure projects throughout the City. Dakotas and CNMC Notes. Dakotas Note A -On July 27, 2016, a $6,016,500 promissory note with a maturity date of December 10, 2050, was provided to SFH QalicB by Dakotas XX.II, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2016, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $293,276 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $6,016,500. Dakotas Note B -On July 27, 2016, a $2,623,500 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by Dakotas XX.II, LLC . Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments due, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $127,883 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $2,623,500. CNMC Note A -On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-CDE 114, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest-only payments, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $130,345 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $2,674,000. CNMC Note B -On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050, was provided to the SFH QalicB by CNMC Sub-CDE 114, LLC. Interest accrues on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all accrued and unpaid interest through July 27, 2023, is due. Commencing on December 10, 2026, and continuing through the maturity date, annual payments of principal and interest in an amount equal to $64,636 are due. At maturity, the entire outstanding principal balance plus all accrued and unpaid interest thereon is due and payable in full. The loan may not be prepaid prior to July 27, 2023, and is secured by the Loan and Security Agreement. As of December 31, 2022, the note balance was $1,326,000. 53 City of Salina, Kansas Notes to Financial Statements December 31, 2022 As of December 31, 2022, the principal balance of these four loans was $12,240,905. Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments are not recorded as revenue when levied against the respective property owners as such amounts are not available to finance current year operations. Premises lease. On July 27, 2016, SFH QalicB, as lessor, entered into a lease agreement with the City, as lessee, for the use of the Salina Field House, as defined in the Net Lease agreement (the "Property"). The lease term is 30 years, as defined in the Net Lease agreement. Beginning on July 1, 2017, and on the first day of each December thereafter through December 1, 2046, annual payments are due, in advance, as specified in the Net Lease agreement. For the year ended December 31, 2022, SFH QalicB earned $492,917 of rental income under the terms of the Net Lease. As of December 31, 2022, rental income of $109,737 remained receivable from the City. The lease has been reported as an intra-entity lease. Accordingly, the reporting requirements of GASB 87 do not apply and the appropriate eliminations have been made. The following is a schedule, by year, of total minimum lease payments by the City to SFH QalicB under the lease as of December 31, 2022: Premises Lease between QalicB and City Year Ending _____ D_e_c_e_m_b_e_r_3_1,._ ___ Lease Payment 2023 $ 162,500 2024 227,500 2025 227,500 2026 650,000 2027 650,000 2028 -2032 3,250,000 2033 -2037 3,250,000 2038 -2042 3,250,000 2043 -2046 2,275,000 Total $ 13,942,500 54 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Ground Lease. On October 24, 2018, SFH QalicB entered into a lease agreement with Salina Regional Medical Education, LLC for the use of property for parking of passenger vehicles and non-commercial trucks (the Parking Lot) by the public. SFH QalicB will have the option to acquire the Parking Lot for $1 upon the end of the lease term, which is 100 years, as defined in the Ground Lease. A one-time basic rent payment of $250,000 was due on the commencement date. There are no additional minimum lease payments due. The lease does not qualify for GASB 87 reporting. Sales tax and Revenue (STAR) Bonds. STAR Bonds are authorized to be issued pursuant to K.S.A. 12-17, 160, et seq., as amended (the STAR Bond Act). The STAR Bond Act provides a form of tax increment financing that enables the issuance of bonds payable from certain State and local sales and compensating use tax revenues and transient guest tax revenues generated from STAR bond projects constructed within a STAR bond project district. To implement STAR bond financing, a local government must adopt a resolution that specifies a proposed STAR bond project district's boundary and describes the overall district plan, hold a public hearing on the district and plan, and pass a resolution that establishes the STAR bond project district. Additionally, there may be one or more projects within a STAR bond district. In accordance with the STAR Bond Act, the City has no liability for payment of bonds in the event that revenues received from sources noted above are inadequate to pay the debt incurred with the issuance of the STAR bonds. In connection with the issuance of STAR bonds, the City of Salina and the State of Kansas entered into a Tax Distribution Agreement. The agreement provides that the principal of, accreted value, and interest on the STAR bonds will be paid proportionally by the City of Salina and the State of Kansas, based on each entity's respective share of sales taxes generated within the district. These proportional shares may change in the future if the sales taxes assessed by the local or state governments are modified. On June 1, 2015, the City of Salina Commission adopted Ordinance 15-10776 establishing the district known as the Salina STAR Bond Project District. On August 22, 2016, the City held a public hearing and approved Ordinance 16-10856 adopting the STAR Bond Project Plan. On December 1, 2018, the City of Salina issued $18,250,000 in Senior Special Obligation Revenue Bonds (Series 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-B). As of December 31, 2022, the outstanding balances for the 2018-A and 2018-B were $16,585,000 and $4,320,000, respectively. 55 Leases Year Ending City of Salina, Kansas Notes to Financial Statements December 31, 2022 Vehicle Leases December 31, Princleal Interest Total 2023 $ 148,302 $ 5,932 $ 154,234 2024 142,599 11,636 154,235 2025 137,114 17,121 154,235 2026 130,654 22,193 I 52,847 2027 90,362 19 577 109,939 Total $ 649,031 $ 76,459 $ 725,490 During fiscal year 2022, the City implemented Governmental Accounting Standards Board Statement No. 87, Leases (GASB 87). Leases having a greater than twelve month lease term are analyzed to determine if the arrangement is subject to GASB 87. If the City is found to be either the lessee or the lessor in the agreement, GASB 87 accounting principles are applied. Adoption of GASB 87 had no effect on the City's beginning net position or fund balances at January 1, 2022. Note 7: lnterfund Transfers A reconciliation of interfund transfers follows: Transfer In Transfer Out General $ 5,806,300 $ 1,540,000 Tourism and convention 902,791 Special gas 160,000 Sales tax capital 10,333,850 Bicentennial center 861,861 Debt service 1,925,930 Arts & Humanity 520,000 Sales Tax Economic Development 750,000 Solid waste disposal 42,500 701,700 Water and sewer 5,178,672 9,068,422 Sanitation 497,350 Golf course 10,000 Parks Maintenance 2,020,000 Fleet Management 1,000,000 Street Maintenance 3,750,000 Building and Facilities Maintenance 870,500 Kenwood Cove Capital 68,350 Central garage 80,000 Total transfers $ 23,044,113 $ 23,0442113 The City uses interfund transfers to share administrative costs between funds. 56 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 8: Contingent Liabilities The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on the financial statements of the City as of December 31, 2022. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. 57 Note 9: Capital Projects City of Salina, Kansas Notes to Financial Statements December 31, 2022 Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the project authorization, including allowable interest revenue, to total project expenditures from project inception to December 31, 2022. Project Authorization Expenditures Downtown Streetscape $ 12,787,597 $ 12,327,367 Smoky Hill River Renewal 12,165,000 3,639,274 S Well Field & WTP Phase I 41,500,000 31,112,703 Rehab Pump St 28,29/Repl 28 Face Main 550,000 Northbound 9th Street Bridge 2,000,000 2,307,696 Smoky Hill Greenway Trail 435,637 62,362 Chorine Building 2 Roof Replacement 35,000 2019 Water Main Replacement 4,000,000 2,436,516 Magnolia Hills Estates II 1,575,240 13,785 Stone Lake Phase 2 670,166 456,485 Stone Lake Phase 3A 1,647,053 3,368 Sound Garden Oakdale Park 10,046 10,046 Wheatland Valley -Specials 5,474,790 9,000 WWTP Owners Rep 896,790 447,919 WWTP Improvement PH I 879,193 3,577,149 Public Safety Communication System 2,361,323 2,434,573 2021 Pavement Sealing 460,000 400,607 TPEC Improvements (Floor/HY AC) 170,246 578,367 5th Street Parking Lot 467,963 444,476 Pool Tennis Court Remodel 864,000 15,807 2021 Water Main Replacement 2,000,000 Campbell Plaza 300,000 282,473 Magnolia Road Sidewalk 250,000 20,430 Automated Sanitation Trucks 1,600,000 1,560,781 SH River Trail Raise 250.000 59,645 Cedar Point Addition 1,017,910 750 Holmes Road Magnolia to Crawford 250,000 121,970 West Magnolia -Centennial to 135 267,290 117,804 Winn Road Culvert Replacement 193,510 28,050 Bill Burke Restrooms 400,000 23,080 Bill Burke Improvements 3,600,000 83,687 Markley Trail BFRA 65,000 338 $ 99,143,754 $ 62,576,508 58 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 10: Pollution Remediation Obligations Municipal Solid Waste Landfill State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense of the Solid Waste Fund in each period based on landfill capacity used as of each statement of net position date. The $2,372,698 reported as landfill closure and postclosure care liability as of December 31, 2022, represents the cumulative amount reported to date based on the use of 26.6% of the estimated capacity of the landfill. The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of $8,918,907 as the remaining estimated capacity is filled over the remaining life expectancy of 179.2 years. These amounts are based on what it would cost to perform all closure and postclosure care in 2022. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S. Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and Environment to provide these assurances. Any future closure or postclosure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. Environmental Matters The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site. The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the City assumed primary responsibility for the further investigation and remediation of the groundwater contamination. Field testing work has been completed. The necessary remediation work will be conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund, thus no liability is recorded related to this remediation as of December 31 , 2022. Since 2010, the City has been involved with civil litigation concerning environmental contamination in certain areas in the vicinity of the Salina Regional Airport and the Salina Airport Industrial Center. The contamination was caused by military activity that occurred between 1942 and 1966 when the site was operated as the Schilling Air Force Base. The City, the Salina Airport Authority, Unified School District No. 305 and Kansas State University (the "Salina Public Entities") sued the United States seeking federal funds to clean up the contamination. A remedial investigation and feasibility study (RI/FS) were completed in 2019 to determine the extent and severity of the contamination and to determine the best method of remediation. Based on the RI/FS, the Kansas Department of Health and Environment (KDHE) issued a Corrective Action Decision (CAD) on July 29, 2019. The Salina Public Entities and the U.S. Department of Justice (DOJ) reached a settlement of the litigation ultimately documented in the form of a Consent Decree filed in U.S. District Court on November 23, 2020. Pursuant to the Consent Decree, the Salina Public Entities assumed responsibility for the Response Action in the CAD in exchange for a $69.5 million lump sum payment by the United States to the Salina Public Entities. The settlement payment was received 59 City of Salina, Kansas Notes to Financial Statements December 31, 2022 by the City during the year ended December 31, 2021 and was recorded as restricted fund balance as of December 31, 2022. No liability has been accrued as of December 31, 2022 due to the uncertainty of the amounts required to mitigate the property. Note 11 : Pension Plans Defined Benefit Pension Plan Description of Pension Plan. The City participates in a cost-sharing multiple-employer pension plan (Pension Plan), as defined in Governmental Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System (KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS provides benefit provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49: • Public employees, which includes: o State/School employees o Local employees • Police and Firemen • Judges Substantially all public employees in Kansas are covered by the Pension Plan. Participation by local political subdivisions is optional, but irrevocable once elected. Those employees participating in the Pension Plan for the City are included in the Local employees group and the Kansas Police and Firemen group. KPERS issues a stand-alone Annual Comprehensive Financial Report, which is available on the KPERS website at www.kpers.org. Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members (except Police and Firemen) with ten or more years of credited service, may retire as early as age 55 (Police and Firemen may be age 50 with 20 years of credited service), with an actuarially reduced monthly benefit. Normal retirement is at age 65, age 62 with ten years of credited service, or whenever a member's combined age and years of service equal 85. Police and Firemen normal retirement ages are age 60 with 15 years of credited service, age 55 with 20 years, age 50 with 25 years, or any age with 36 years of service. Monthly retirement benefits are based on a statutory formula that includes final average salary and years of service. When ending employment, members may withdraw their contributions from their individual accounts, including interest. Members who withdraw their accumulated contributions lose all rights and privileges of membership. For all pension coverage groups, the accumulated contributions and interest are deposited into and disbursed from the membership accumulated reserve fund as established by K.S.A. 74-4922. Members choose one of seven payment options for their monthly retirement benefits. At retirement a member may receive a lump-sum payment of up to 50% of the actuarial present value of the member's lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of the lump sum. Benefit increases, including ad hoc post-retirement benefit 60 City of Salina, Kansas Notes to Financial Statements December 31, 2022 increases, must be passed into law by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of the State of Kansas. The 2012 Legislature made changes affecting new hires, current members and employers. A new KPERS 3 cash balance retirement plan for new hires starting January 1, 2015, was created. Normal retirement age for KPERS 3 is 65 with five years of service or 60 with 30 years of service. Early retirement is available at age 55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on the account balance at retirement. 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, 2022. The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the Death and Disability Program) and the statutory contribution rate was 8.9% for KPERS and 22.99% for KP&F for the year ended December 31, 2022. Member contribution rates as a percentage of eligible compensation for the fiscal year 2022 are 6.00% for Local employees and 7.15% for Police and Firemen. Employer Allocations. Although KPERS administers one cost-sharing multiple-employer defined benefit pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined contribution rate by group. Following this method, the measurement of the collective net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense are determined separately for each of the following groups of the plan: • State/School • Local • Police and Firemen • Judges To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify additions, deductions, and fiduciary net position applicable to each group. The allocation percentages presented for each group in the schedule of employer and nonemployer allocations are applied to amounts presented in the schedules of pension amounts by employer and nonemployer. The allocation percentages for the City's share of the collective pension amounts as of December 31, 2022, are based on the ratio of its contributions to the total of the employer and nonemployer contributions of the group for the fiscal years ended December 31, 2022. 61 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The contributions used exclude contributions made for prior service, excess benefits and irregular payments. At June 30, 2022, the City's proportion for the Local employees group was 0.733%, which was a decrease of .032% from its proportion measured at June 30, 2021 . At June 30, 2022, the City's proportion for the Police and Firemen group was 1.878%, which was a decrease of .104% from its proportion measured at June 30, 2021 . Net Pension Liability. At December 31, 2022, the City and its component units reported a liability of $41,665,800 for its total proportionate share of the net pension liability for the Local and Police and Firemen groups. The total pension liability was determined by an actuarial valuation as of December 31 , 2021, which was rolled forward to June 30, 2022, using the following actuarial assumptions: Assumptions Price inflation Salary increases, including wage increases Long-tenn rate of return, net of investment expense, and including price inflation Rate 2.75% 3.50% to 12.00% including inflation 7.00% 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, 2021, valuation were based on the results of an actuarial experience study conducted for the period of January 1, 2017, through December 31, 2019. The experience study is dated January 26, 2023. The long-term expected rate of return of pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2022, are summarized in the following table: Asset Class US Equities Non-US Equities Private Equity Private Real Estate Yield Driven Real Return Fixed Income Short Tenn Investments Long-term Allocation 23.5% 23.5% 8.0% 11.0% 8.0% 11.0% 11.0% 4.0% 100.0% Long-Term Expected Real Rate of Return 5.20% 6.40% 9.50% 4.45% 4.70% 3.25% 1.55% 0.25% 62 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Discount Rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the contractually required rate. The State, School and Local employers do not necessarily contribute the full actuarial determined rate. Based on legislation passed in 1993, the employer contribution rates certified by the System's Board of Trustees for these groups may not increase by more than the statutory cap. The expected KPERS employer statutory contribution was modeled for future years, assuming all actuarial assumptions are met in future years. Employers contribute the full actuarial determined rate for Police & Firemen, and Judges. Future employer contribution rates were also modeled for Police & Firemen and Judges, assuming all actuarial assumptions are met in future years. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.200%} or 1-percentage point higher (8.00%} than the current rate: 1% Decrease (6.00%) Local $ 20,946,725 Police & Firemen 37,150,150 Discount Rate (7.00%) $ 14,581,450 27,084,350 1% Increase (8.00%) $ 9,278,252 18,709,024 $ 58,096,875 $ 41,665,800 $ 27,987,276 For the year ended December 31, 2022, the City recognized Local pension expense of $1,747,091 and Police and Firemen pension expense of $3,672,711, which includes the changes in the collective net pension liability, projected earnings on pension plan investments, and the amortization of deferred outflows of resources and deferred inflows of resources for the-current period. The Salina Housing Authority's and Salina Airport Authority's portion of the Local pension expense were $33,484 and $1 ,969, respectively. 63 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Deferred Outflows of Resources and Deferred Inflows of Resources. As of December 31, 2022, the City and its component units reported deferred outflows of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups from the following sources: Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Police and Firemen Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Local Differences between actual and expected experience Net differences between projected and actual earnings on investments Changes in assumptions Changes in proportion Total Deferred Outflows Deferred Inflows of Resources of Resources $ 551,531 $ 26,137 1,234,319 2,330,761 372 737 751,693 $ 4,489,348 $ 777,830 Deferred Outflows Deferred Inflows of Resources of Resources $ 1,149,350 $ 1,858,833 3,480,514 1,372,156 $ 6 488,697 $ 1,372,156 Housing Authori!l Deferred Outflows Deferred Inflows of Resources of Resources $ 12,548 $ 2,878 112,883 62,577 44,343 7,683 $ 119,468 $ 123,444 Aireort Authori!): Deferred Outflows Deferred Inflows of Resources of Resources $ 35,631 $ 1,689 79,742.00 150,577 70,327 22 516 $ 336,277 $ 24,205 64 City of Salina, Kansas Notes to Financial Statements December 31, 2022 $2,441,561 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Local Deferred Year Ended (Inflows) Outflows December 31, Amount 2023 $ 960,082 2024 891,664 2025 423,408 2026 1,373,261 2027 63,103 $ 3,711,518 Police & Firemen Deferred (Inflows) Outflows Amount $ 1,481,479 1,292,913 517,834 1,778,217 46,098 $ 5,116,541 Total $ 2,441 ,561 $ 2,184,577 941,242 3,151,478 109,201 8,828,059 $40,163 and $84,492 reported as deferred outflows of resources related to pensions resulting from Salina Housing Authority and Salina Airport Authority contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended December 31, 2023 2024 2025 2026 2027 $ Housing Authority Deferred (Inflows) Outflows Amount 40,163 2,858 2,586 (15,882) 4,135 Airport Authority Deferred (Inflows) Outflows Amount $ Total 84,492 $ 124,655 74,688 77,546 48,970 51,556 98,745 82,863 5,177 9,312 $ 33,860 $ 312,072 =$=====3=4=5,=93=2= Defe"ed Compensation Plan The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. 65 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Flexible Benefit Plan (I.R. C. Section 125 The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. Note 12: Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters and other events for which the City carries commercial insurance. No significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not exceeded insurance coverage for each of the past three years. The City has established a limited risk management program for workers' compensation. The program covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $146,926 is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 2022 2021 Unpaid claims, January 1 $ 366,796 $ 446,495 Incurred claims (including IBNRs) 734,629 989,033 Claim payments t701 ,6472 {1,068,732) Unpaid claims, December 31 $ 399,778 $ 366,796 The City established a limited risk management program for employee health and dental insurance in 1997. The program covers eligible City employees. Premiums are paid into the health insurance fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. Therefore, all of the liability is considered to be due within one year. 66 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Changes in the balances of claims liabilities during the past two years are as follows: 2022 Unpaid claims, January 1 $ 417,000 $ Incurred claims (including IBNRs) 5,640,514 Claim payments (5,652,514} Unpaid claims, December 31 $ 405,000 $ Note 13: Other Postemployment Healthcare Benefits Plan Description (OPES) 2021 605,000 4,560,880 {4,748,880) 417,000 Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are provided through a single employer defined benefit postemployment healthcare plan administered by the City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their spouses. KSA 12-5040 requires all local governmental entities in the state that provide a group health care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No separate financial report is issued for the Plan. Funding Policy. The benefit payment requirements of plan participants and the City are established and amended by the City. The required payments are based on projected pay-as-you-go financing requirements. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. As of December 31, 2022, the following employees were covered by the benefit terms: Active employees Retirees and covered spouses Total 440 29 469 The total OPEB liability of $3,976,239 was measured as of December 31, 2022, and was determined by an actuarial valuation as of December 31, 2021 . 67 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The total OPEB liability in the December 31, 2021, actuarial valuation was determined using the following assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified: Valuation date Actuarial cost method Inflation Salary increases Discount rate Healthcare cost trend rates Retiree's share of benefit related costs December 31, 2021 Entry age normal as a level percentage of payroll 2.75% 3.50% 2.06% Medical: 5.90% for 2021, decreasing 0.50% per year year to an ultimate rate of3.7% for 2074 Dental: 5.00% to 2022, then decreasing to an ultimate rate of3.70% in 2074 100% of the premium The discount rate was based on an index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Mortality rates were based on the RP 2014 Mortality Tables, with age set forwards as well as other adjustments based on different membership groups. Changes in the total OPEB liability are as follows: Balance, January 1, 2022 Service cost Interest Benefit paid Economic/demographic gains/losses Changes in assumptions Balance, December 31, 2022 $ $ 4,072,184 282,579 90,906 (134,193) (495,935) 160,698 3,976,239 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (1 .06%) or one percentage point higher (3.06%) than the current discount rate: Total OPEB Liability 1% Decrease (1.06%) $ 4,361,588 Discount rate (2.06%) $ 3,976,239 1% Increase (3.06%) $ 3,623,200 68 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The following presents the total OPES liability of the City, as well as what the City's total OPES liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rate: Healthcare Cost 1% Decrease Total OPEB Liability $ 3,409,594 Trend Rates $ 3,976,239 1% Increase $ 4,633,927 For the year ended December 31 , 2022, the City recognized OPES expense of $336,083. Deferred Outflows of Resources and Deferred lnffows of Resources. At December 31, 2022, the City reported deferred outflows related to other postemployment benefits from the following sources: Changes of assumptions Differences between expected and actual experience Total Deferred Outflows Deferred Inflows of Resources of Resources $ 443,642 $ (100,964) (606,779) $ 443,642 $ (707,743) Amounts reported as deferred outflows of resources will be recognized in OPES expense as follows: Year Ended June 30, 2023 2024 2025 2026 2027 2028+ Total Deferred (Inflows) Outflows Amount $ (37,402) $ (37,402) (37,402) (40,210) (42,055) (69,630) (264,101 ) 69 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Other Postemployment Benefits (KPERS) Plan Description. The City participates in a multiple-employer defined benefit other postemployment benefit (OPEB) plan (the Plan) which is administered by KPERS. The Plan provides long-term disability benefits and a life insurance benefit for disabled members to KPERS members, as provided by K.S.A. 74-04927. The Plan is administered through a trust held by KPERS that is funded to pay annual benefit payments. However, because the trust's assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis. Benefits. Benefits are established by statute and may be amended by the KPERS Board of Trustees. The Plan provides long-term disability benefits equal to 60 percent (prior to January 1, 2006, 66 2/3 percent) of annual compensation, offset by other benefits. Members receiving long- term disability benefits also receive credit towards their KPERS retirement benefits and have their group life insurance coverage continued under the waiver of premium provision. The monthly long-term disability benefit is 60 percent of the member's monthly compensation, with a minimum of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income, which include Social Security primary disability or retirement benefits, workers compensation benefits, other disability benefits from any other sources by reason of employment, and earnings from any form of employment. If the disability begins before age 60, benefits are payable while the disability continues until the member's 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits are payable while the disability continues, for a period of five years or until the member retires, whichever occurs first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime. The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member's annual rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the time of the last date on payroll. If the member has been disabled for five or more years, the annual compensation or salary rate at the time of death will be indexed using the consumer price index, less one percentage point, to compute the death benefit. If a member is diagnosed as terminally ill with a life expectancy of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the group life insurance coverage to an individual insurance policy. Employees covered by benefit terms. As of June 30, 2022, the measurement date, the following employees were covered by the benefit terms: Active employees Disabled members Total 263 3 266 70 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Total OPES Liability. The City and its component units reported a total KPERS OPES liability of $408,297 as of December 31, 2022, was measured as of June 30, 2022, and was determined by an actuarial valuation as of December 31, 2021, which was rolled forward to June 30, 2022, using the following actuarial assumptions: Valuation date Actuarial cost method Inflation Salary increases Discount rate (based on 20 year municipal bond rate with an average rating of AA/ Aa or better obtained, through the Bond Buyer General Obligation 20-Bond Municipal Index) December 31, 2021 Entry age normal 2.75% 3.00% 3.54% The discount rate was based on the bond buyer general obligation 20-bond municipal index. Mortality rates were based on the RP 2014 Mortality Tables, with age setbacks and age set forwards as well as other adjustments based on different membership groups. Future mortality improvements are anticipated using Scale MP-2021. The actuarial assumptions used in the December 31, 2021, valuation were based on the results of an actuarial experience study for the period of January 1, 2017 through December 31, 2019. Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the December 31, 2021, KPERS pension valuation. The changes in the total OPES liability are as follows: Balance; January I, 2022 Service cost Interest Effect of economic/demographic gains or losses Changes in assumptions Benefit payments Balance, December 31, 2022 $ City 505,029 55,188 11,870 (72,452) (86,805) (21481) 391,349 Total KPERS OPEB Liability Housing Authority Airport Authority Total $ 7,868 $ 13,911 $ 526,808 1,835 3,837 60,860 215 382 12,467 (1,984) (6,203) (80,639) 11 (2,924) (89,718) $ 7,945 $ 9,003 $ (21i48 1l 408,297 Sensitivity of the total KPERS OPES liability to changes in the discount rate. The following presented the total KPERS OPEB liability of the City, as well as what the City's total KPERS OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.54%) or 1-percentage-point higher (4.54%) than the current discount rate: Tot.al OPEB Liability -City Tot.al OPEB Liability -Housing Authority Total OPEB Liability -Airport Authority 1% Decrease (2.54%) $ 409,102 8,117 9,277 Discount Rate (3.54%) $ 391,349 7,945 9,003 1% Increase (4.54%) $ 373,779 7,718 8,692 71 City of Salina, Kansas Notes to Financial Statements December 31, 2022 For the year ended June 30, 2022, the City recognized OPEB expense of $38,875. Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2022, the City reported deferred outflows and inflows related to other postemployment benefits from the following sources: CH Housing Authoriti Ai[!!Ort Autho!!!J! Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and aclual experience $ 48,285 s (242,805) $ (6,636) $ $ (14,767) Changes of asswnptions 31 304 !84,895) 276 (1391 699 (2,7321 Total $ 79 589 $ (327,700) $ 276 $ (6,ml $ 699 $ (17,499) Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: Year Ended June 30, 2023 2024 2025 2026 2027 Thereafter Total $ $ City (28,183) $ (28,183) (28,183) (27,878) (29,424) (1 06,260) (248,11 1) $ Housing Airport Authority Authority (914) $ (2,251) (914) (2,251) (914) (2,251) (914) (2,243) (909) (2,101) (1 ,934} (5,703} ~6,499) $ {16,800) 72 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 14: Tax Abatements In 2021, the City of Salina participated in real property tax abatements for five local companies. Property tax abatements are authorized under Kansas state statutes K.S.A. 12-1740 et seq. and K.S.A. 79-201 a and subject to City policy. The City provides property tax abatements to encourage existing industry to expand, assist new business start-ups, recruit new companies from out-of-state or internationally, encourage high technology and research based businesses, encourage training and development of Salina area employees, and encourage location and retention of businesses which are good "corporate citizens" that will add to the quality of life in the community through leadership and support of civic and philanthropic organizations. Property tax abatements reduce ad valorem property taxes. The percentage of reduction ranges from 40.5% to 100%, but in all cases, the maximum duration is for ten years as per state statute. To receive an abatement, applicants must submit an application, which undergoes due diligence and analysis before being considered by the City Commission. If the abatement is authorized, the applicant must sign a performance agreement that specifies annual compliance measures. Each year, the applicant submits a renewal application, along with compliance information, which is reviewed by City staff for conformance with agreement provisions. If compliance is not met, appeals can be made to the City Commission to determine the amount of incentives, if any, to be received by the property owner. The City of Salina negotiates property tax abatements on an individual basis. Abatement 2022 Company Start End % Tax Abated Salina Vortex Corp (facility improvements) 2015 2024 37.50% $ 3,023 Great Plains Mfg. (facility improvements) 2014 2023 50% 2,238 Veris Technologies (facility addition/improvements) 2015 2024 50% 495 Twin Oaks (facility addition/improvements) 2015 2024 50% 647 $ 6,403 Tax Increment Financing (TIF). TIFs are an economic development tool established by the Kansas T/F Act (K.S.A. 12-1770 et seq.) and subject to City policy to aid in financing projects for substantial public benefit. Public benefits can include creating jobs or retaining existing employment, eliminating blight, strengthening the employment and economic base of the City, increasing property values and tax revenues, reducing poverty, creating economic stability, upgrading older neighborhoods, facilitating economic self-sufficiency, promoting projects that are of community wide importance, or implementing the economic development goals of the City. The program works by reimbursing a portion of the incremental increase in property taxes resulting from improvements and a portion of local sales tax generated within the district to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. 73 City of Salina, Kansas Notes to Financial Statements December 31, 2022 To receive a TIF, applicants must submit a detailed, written proposal to the City, which will undergo due diligence and analysis before being considered by the City Commission. The City Commission then determines if it will commence the statutory process to create a redevelopment district. If the TIF district is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate TIF revenues (sales tax and/or property tax), City staff works with the distributing agency and property owner to generate and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and sales and/or property tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates TIFs on an individual basis. TIF Project Plans 2022 Reimbursements District _____ P_u_r_._p_o_s_e _____ Base Year Expires Sales Tax Property Tax Downtown Promote, stimulate and develop the general and economic welfare of a major commercial entertainment and tourism area Total 2016 2036 --;$,--__ -_ $ 215,115 $ -...,$,------,,2..,.15""',""'"11 __ 5_ ==== Community Improvement Districts (CID). CIDs are an economic development tool established by the Kansas CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the development of community improvements which can benefit a development and the public. In all CIDs, public improvements were financed initially by the developer and are reimbursed annually via a two percent (2%) transportation district sales tax on retail or taxable services occurring within the district. To establish a CID, the applicant first submits a CID petition which is signed by the owners of all of the land within the proposed district. The City Commission then considers the request to establish a CID. 74 City of Salina, Kansas Notes to Financial Statements December 31, 2022 If the CID is authorized, the City and applicant will enter into an agreement that specifies performance, certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible expenses and compliance with agreement provisions. Once the project begins to generate CID revenues, City Staff works with the distributing agency and property owner to make and track reimbursements. Because reimbursements are not paid until after improvements are put in place, agreement compliance is met, eligible expenses are certified, and CID sales tax distributions are made to the City, there are no provisions for recapturing taxes. The City of Salina negotiates CIDs on an individual basis. Name Rate South 9th Street 2.00% Alley 1.00% Downtown 1.00% Downtown Hotel 1.00% North 9th Street 2.00% Community Improvement District (CID) Start Expires Purpose Assist with improvements to hotel 3/1/2016 12/31/2037 and conference center Assist with building of family 10/1/2019 9/30/2041 entertainment facility in downtown Assist with Revitalization of 7/1/2019 6/30/2041 Downtown Corridor Assist with building of downtown 10/1/2019 9/30/2041 hotel Assist with improvements to hotel 7/1/2021 6/30/2043 and conference center 2022 Eligible Reimbursement Amount $ 293,657 18,684 167,356 96,599 37,531 $ 613,827 Neighborhood Revitalization Areas (NRA). NRAs are authorized under Kansas state statutes K.S.A. 12-117 and subject to City policy to spur investment and revitalization of properties which can benefit a neighborhood and the public. The program works by rebating a portion of the incremental increase in property taxes resulting from improvements back to the property owner. The base value, or what the property was valued at prior to improvements, is shielded from the rebate. Participation in the program and percentage of rebate and duration are determined separately by the City, County, and School District. The current City of Salina adopted plan is a 4- year plan running from 2015-2019. It allows for a 10-year rebate and provides rebates from 25% to 100% depending on year in plan and type of improvement. To receive an NRA, taxpayers must submit an application, which undergoes due diligence and analysis before being approved by the City. If the NRA is approved, each year, the applicant must submit proof that property taxes have been paid in full. Because the rebate is not given until after improvements are put in place and property taxes paid, there are no provisions for recapturing taxes. 75 City of Salina, Kansas Notes to Financial Statements December 31, 2022 The City of Salina approves NRAs on an individual basis. Neighborhood Revitalization Act (NRA) Prol:!!!!}'./Buslness Name Address T:te! Heritage at Hawthorne Partners 715 N. 9th Street Com Sergio Guzman-Polanco & Rosa Sanchez 241 N. Front Street Res Overland Property Group 254 N. Santa Fe Ave Com Yvette Gelinas 1115 N. 8th Street Res Latisha Pierce 705 N. 2nd Street Res Tanya Shiehzadeh 703 N. 2nd Street Res Robert & Brenda Bums 1205 N. 4th Street Res Property Partners LLC I 16 & 118 N. Santa Fe (2nd Floor Loft Apartments) Com PhillHemmer 2035 E. Iron Avenue, Unit #203R Res AP Property Holdings, LLC 20 I E. Iron A venue Com Gregory Davis 156-158 N. 11th Street Res Micheal Money 2035 E. Iron Avenue, Unit #206R Res Micheal Money 2036 E. Iron Avenue, Unit #205R Res Mark Martin Living Trust 2035 E. Iron #104R Res Traniesh Byrd 701 N. 2nd Street Res Jana Endsley 1321 N. 3rd Street Res Kanesha Samilton 214 W. Grand Avenue Res Maria E Padilla 8 ION. 5th Street Res JK Webb Properties LLC 120 S. Santa Fe Avenue Com Alan and Nancy Franzen 1413 Arapahoe Res Brandon Sears 900 N. 12th Street Res Santa Fe Properties, LLC 131 N. Santa Fe Avenue/128 S. Santa Fe Avenue Com Ceecee Investments LLC 200 S. Santa Fe Avenue Com Rusty A Leister Living Trust 600 N. Santa Fe Avenue Com Christopher Helm 608 N. I Ith Street Res Christopher Helm 752 N. Broadway Com Laurie Donmyer 255 N. Columbia Res Eva Wright 1200N. 8th Res Foley Equipment Co. 2225 N. Ohio St Com Mark Ritter 2035 E. Iron #I08R Res Angelica Farris 846 Choctaw Ave Res Christopher Vogel 2035 E. Iron #209R Res Christopher Helm 619 N. 5th Street Com HPSA,LLC. 50 I Bhakta Court Com Jordan Bresse! 2035 E. Iron #I06R Res MaryC. Roth 2035 E. Iron #208R Res John & Kristen Gunn 2035 E Iron #I06R Res TJTM,Inc. 2035 E Iron #005R Res TJTM,lnc. 2035 E Iron #004R Res TJTM,Inc. 2035 E Iron #003R Res TJTM,lnc. 2035 E Iron #002R Res TJTM,lnc. 2035 E Iron #00 IR Res TJTM,Jnc. 2035 E Iron #301BR Res TJTM,Inc. 2035 E Iron #301AR Res TJTM, Inc. 2035 E Iron #006R Res Greg Huston &Terry Swearingen 1025 W Crawford Com Kevin & Rebecca Poland 60 I Johnstown Res TJTM,Inc. 2035 E Iron #202R Res TJTM, Inc. 2035 E Iron #302R Res TJTM,Inc. 2035 E Iron #105R Res Timothy Rickman 719 E Ash Res Troy Vancil 853 Navaho Res TJTM,Joc. 2035 E Iron #213C Res Donnie Marrs 2035 E Iron #300R Res OWM Rentals LLC 809 W Ash Res Lamont Outland 201 E. Iron Avenue Res Michelle Bunch 156-158 N. 11th Street Res Jennaine and Tykea Polk 701 N. 2nd Street Res Mary Marshall 2035 E. Iron #!05R Res Angela Fishburn 1219 N. 8th Street Res Salina Office Station 356 N. Santa Fe Com 2022 Rebate Paid $ 2,181 114 3,966 113 114 118 134 818 923 4,992 287 641 138 541 114 194 279 277 2,110 187 42 4,527 662 2,190 81 2,815 379 265 15,931 1,724 285 903 776 5,871 245 1,302 1,365 268 132 396 353 158 304 175 394 1,954 76 229 183 272 163 66 79 969 145 121 129 152 106 108 I 094 $ 65,634 76 City of Salina, Kansas Notes to Financial Statements December 31, 2022 Note 15: Prior Period Adjustment During 2022, construction in progress for Business-type Activities was found to be understated. The 2022 beginning net position for the Water and Sewer fund was increased by $17,275,573 for this error. Change in net position for the Business-type Activities and the Water and Sewer funds for the year ended December 31, 2021, was not impacted. 77 Required Supplementary Information City of Salina, Kansas Other Postemployment Benefits Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Measurement Year 2022 2021 2020 2019 2018 Total OPED Liability Service cost $ 282,579 $ 244,531 $ 231,391 $ 249,957 $ 226,762 Interest ( on the total OPEB liability) 90,906 104,082 150,552 125,877 128,578 Benefit paid (134,193) (122,821) (159,018) (157,465) (265,000) Economic/demographic gains/losses (495,935) (255,426) Changes in assump~ons 160,698 231,338 128,228 os6,344l 90,918 Net Change in Total OPEB Liability (95,945) 457,130 95,727 32,025 181 ,258 Total OPEB Liability -Beginning 4,072,184 3,615,054 3 519,327 3,487,302 3,306,044 Total OPEB Liability -Ending $ 3,976,239 $ 4,072,184 $ 3 615,054 $ 3,519,327 $ 3,487,302 Covered Employee Payroll $ 25,166,069 $ 25,163,639 $ 25,163,639 $ 25,232,129 $ 24,740,225 Total OPEB liability as a percentage of covered-employee payroll 15.80% 16.18% 14.37% 13.95% 14.10% Actuarially determined contribution $ 134,193 $ 122,821 $ 159,018 $ 157,465 $ 265,000 Actual contribution $ 134,193 $ 122,821 $ 159,018 $ 157,465 $ 265,000 Contributions as a percentage of covered payroll 0.53% 0.49% 0.63% 0.62% 1.07% *Data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is unavailable. 78 City of Salina, Kansas Other Postemployment Benefits -KPERS Schedule of Changes in the City's Total OPEB Liability and Related Ratios Last Ten Fiscal Years* Measurement Year 2022 2021 2020 2019 2018 Total OPEB Liability Service cost $ 55,188 $ 64,709 $ 57,185 $ 52,863 $ 52,380 Interest ( on the total OPEB liability) 11,870 14,404 19,037 22,667 17,061 Benefit paid (21,481) (151,608) 17,086 (95,243) 75,173 Economic/demographic gains/losses (72,452) 984 37,368 7,614 (6,574) Changes in assumptions ~86,805) (20,904) (39,627) (28,432) (30,368) Net Change in Total OPEB Liability (113,680) (92,415) 91,049 (40,531) 107,672 Total OPEB Liability -Beginning 505,029 597 444 506,395 546,926 439,254 Total OPEB Liability -Ending $ 391,349 s 505,029 $ 597 444 $ 506,395 $ 546,926 Covered Employee Payroll $ 13,877,624 $ 12,482,683 $ 14,338,983 $ 13,991 543 $ 13,652,194 Total OPEB liability as a percentage of covered-employee payroll 2.82% 4.05% 4.17% 3.62% 4.01% Actuarially detennined contribution $ 134 612 $ 135,087 $ 144,746 $ 135,087 $ 109,466 Actual contribution $ 134,612 $ 135,087 $ 144,746 $ 135,087 $ 109,466 Contributions as a percentage of covered payroll 0.97% 1.08% 1.01% 0.97% 0.80% *Data became available with the inception of GASB 75 during fiscal year 2018, therefore 1 O years of data is unavailable. 79 City of Salina, Kansas KPERS Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* Meas■rement Year 2015 2016 2017 2018 2019 2020 City's proportion of the net pension liability Local 0.764% 0.761% 0.811% 0,079"/4 0.796% 0.766% Police&Fire 2.258% 2.180% 2.191% 2.081% 2.074% 2.038% City's proportionate share of the net pension liability Local $ 10,027,679 $ 11,770,679 $ 11,753,246 $ 11,014,328 $ 11,123,112 $ 13,290,226 Police & Fire $ 16,395,794 $ 20,251,512 $ 20,546,882 $ 20,019,473 $ 20,993,820 $ 25,135,770 City's covered-employee payroll Local 12,931,197 13,251,236 $ 13,548,056 $ 13,944,989 $ 14,366,294 $ 14,948,415 Police & Fire 10,161,866 10,730,033 $ 10,593,419 $ 10,441,055 s 10,859,219 s 11,285,465 City1s proportionate share of the net pensK>n liability as a percentage of its covered-employee payroll Local 77.55% 88.83% 86.75% 78.98% 77.43% 88.91% Police&Fire 161.35% 188.74% 193.%% 191.74% 193.33% 222.73% Plan fiduciary net position as a percentage of the total pension liability Local 71.98% 68.55% 72.15% 74.22% 75.02% 70.77% ?olice&Fire 74.60% 69.30% 70.99% 71.53% 71.22% 66.81% 2021 2022 0.701% 0.733% 1.982% 1.878% 8,409,377 $ 14,581,450 18,910,472 $ 27,084,350 $ 13,436,992 $ 14,200,661 s 10,970,505 s 11,241,597 62.58% 102.68% 172.38% 240.93% 81.14% 70.66% 76.09"/4 66.12% "The amounts presented for each fiscal year were determined as of December 31 . Data became available with the inception of GASB 68 during fiscal year 2015, therefore 1 O years of data is unavailable. 80 City of Salina, Kansas KPERS Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* 2015 2016 2017 2018 2019 2020 2021 2022 Contractually required contribution Local $ 1,256,217 $ 1,243,711 $ 1,179,745 1,205,334 s 1,328,915 1,156,925 $ 1,259,601 $ 1,309,782 Police& Fire 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 2,563,084 2,553,522 Contributions in relation to the contractually required contribution Local 1,256,217 1,243,711 1,179,745 1,205,334 1,328,915 1,156,925 1,259,601 1,309,782 Police & Fire 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 2,563,084 2,553,522 Contribution deficiency (excess) City's covered-employee payroll Local $ 13,251,236 s 13,548,056 $ 13,944,989 $ 14,366,294 14,948,415 $ 13,436,992 $ 14,200,661 $ 14,716,651 Police & Fire s 10,730,033 $ 10,593,419 $ 10,441,055 s 10,859,219 11,285,465 $ 10,970,505 $ 11,241,597 s 11,107,098 Contributions as a percentage of covered employee payroll Local 9.48% 9.18% 8.46% 8.39% 8.89% 8.61% 8.87% 8.90% Police & Fire 23.56% 22.29%, 19.03% 20.09% 22.13% 21.93% 22.80% 22.99"/o *Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is unavailable. 81 Combining Schedules and Individual Fund Statements Assets Cash and investments Receivables Accounts Total assets Liabilities and Fund Balances Accounts payable Accrued expenditures Unearned revenue Due to other funds Total liabilities Fund Balances Restricted Committed Assigned Unassigned Total fund balances City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Total Total Nonmajor Nonmajor Special Revenue Permanent Funds Funds $ 15,889,341 $ 548,172 3,069,338 18,958,679 548,172 919,900 14,559 20,000 954,459 3,937,773 11,900,011 548,172 2,166,424 12 18,004,220 548,172 Total liabilities and fund balances $ 18,958,679 $ 548,172 Nonmajor Total Debt Nonmajor Service Governmental Fund Funds $ $ 16,437,513 3,069,338 19,506,851 919,900 14,559 20,000 954,459 3,937,773 12,448,183 2,166,424 12 18,552,392 $ $ 19,506,851 82 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Total Total Nonmajor Total Nonmajor Nonmajor Debt Nonmajor Special Revenue Permanent Service Governmental Funds Funds Fund Funds Revenues Taxes $ 4,543,388 $ $ $ 4,543,388 Intergovernmental 2,740,030 2,740,030 Charges for services 954,184 12,602 966,786 Licenses and pennits 14,600 14,600 Investment revenue 42,378 1,982 44,360 Donations 104,558 104,558 Miscellaneous 697 126 697,126 Total revenues 9,096,264 14,584 9,110,848 Expenditures Current Culture and recreation 2,273,867 2,273,867 Public safety 697,328 697,328 Public health and sanitation 313,223 313,223 Planning and development 2,047,963 2,047,963 Miscellaneous 10,000 25,388 800 36,188 Debt Service Interest and other charges 200,129 200,129 Capital Outlay 6.084 394 6.084,394 Total expenditures 11,626,904 25,388 800 11,653,092 Deficiency of revenues under expenditures (2,530,640) (10,804) (800) (2,542,244) Other Financing Sources (Uses) Transfers in 10,000,71 I 10,000,711 Transfers out !902,791) (902,791) Total other financing sources (uses) 9,097,920 9,097,920 Net Change in Fund Balances 6,567,280 (10,804) (800) 6,555,676 Fund Balances, Beginning 11,436,940 558 976 800 11,996,716 Fund Balances, Ending $ 18,004,220 $ 548,172 $ $ 18,552,392 83 Toudsm and ....... Convention G• ....... Cu'IUldcasb.equiv,dml!i 116,130 s 2,901,317 $ Rcccivlblcs Acc:ooots 723614 369,446 Total assets 1,040,#1 3,270,833 Uabllltles and fund balances Liabilities: Aooountsp,,yablc 204.546 ACffl!CdexpcndiNJ'Os Unearned revenue Duetoothcrftn»ds TOW liabilities ""·"' Fundbalaoces: ~sticted 1.040,444 2,246,841 Commincd Assigned 819.146 Unassigned To1alfiuidbllam:es 1,040,444 3.065,9&7 Totalli1bilillcsandl'Llndbal1nccs 1,040.444 s 3.270.833 s City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Business Special Blcentennlal Improvement Neighborhood Parks& Centu Dll'trtct .... Rec:relllon 447,07! $ 6.651 $ 47,lll $ 4114,1.14 447,071 6,6!1I 47,121 484,334 210,472 ~960 1,380 210,472 .... ,~ .. 3,691 4]2,161 203,087 46,441 33,!119 !12,173 236.606 3,691 46,441 484,334 447,071 s 6.6SI s 47.821 s 484,334 Community &IIH Tax Downtown Speclel Development Economic TIF South Alcohol Revolving Devtfee;nent Dlsllld:#1 9th CID s "' $ , .. .,.., s 897,844 $ 1,705,824 s 27,933 "' 186,307 897,844 1,705,824 :mm 234 116,307 197,844 1,7<1!1,824 27,933 234 U!6,307 897,844 1,705,824 27,933 $ 234 ' 1116,3D7 s 197844 1.705.824 s 27.933 84 Downtown CID ....... Cash•ndc.uhc.quivalcnts 470,426 Receivables A~unts Total assets 470,426 Llabllltles and fund balances Liabilities: Aca,tlrlb!payablc 19,393 Aecrued expenditures l."ncamc:drevcnuc: Due to other funds Total liabilities 19,393 Fund balances: R.cslriclcd Commincd 451,033 """-"" Unassigned Total fund balances 451,033 Total liabilities and fund balance, 470.426 City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December 31, 2022 Alley Down-• Nor1b91h STAR Bonds Stale CID HotelCID CID SUbprojects Grants ' 1,405 s 7,933 s 3)83 s 2,000,000 $ 248.460 1,40S 7,933 3,383 2,000,000 248,460 1,405 7,931 1,405 7,931 3~3 2,000,000 241l,@ 3)83 2,000,000 248.,460 $ 1,405 • 7,933 • 3)83 $ 2,000,000 248,460 Kenwood Speclal 911 Co,e Law Police Conununleations Caf!lal Enforcement o, ... I 626,865 • 70,053 s 82 s 3,479 626,865 70,053 82 3,479 6,S51 137 6,SSl 137 571,299 68,631 82 3.◄79 49,015 1,285 620,314 69,916 82 3,479 ' 626,865 • 70,053 ' 82 ' 3~79 85 ....... Cesh and cash cquiv1lcnt1 Receivables A<oounl1 Tctall51Cls Llabllllles alld fl.Ind INllancH Uabilitil:5: Aoecunt!payablc Aoctwd expenditures Uocamc<lrevcnuc Due to 01her funds Totalli■bilities Fundbalanm: Re:slri~li:d Coo,mitlcd AuilJ)Cd Unasaigncd Totalfimdbr.lu:cer; T«altiallititiesandfimdballlDCCIS SFH QaffcB U15.0IS7 ' t.975,778 2,160,865 13,123 20.000 33,123 2,127,042 1.1n.ou l.160,165 s City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December31,2022 ... ,.. w .. Fedtlral °""'"'"""' M.R.E ........ • .. & CARE Federal Homeowners' """""°"' Malntenanca Humanities Gmrt FoffeHure funds Assistance 29,485 s ,~ ... ' 107,400 s 26,141 s 99 s 21.910 ,oo 29,985 30.94-1 \07,400 26,141 99 21,910 4,269 l◄,559 111,828 26,141 29,985 30,944 88:,S72 .. 21,910 29.985 30,944 H,572 26,141 .. 21,910 ,. ... , s 30,944 s 107,400 s 26,141 s 99 s 21.910 ..., ..... Speclal eou• Pl1Vlfo .. _, Assessments ....... Grants Donations Escrow Rutllutlon s J,9S4 s 601,320 s 116,682 26,140 1,954 601,320 116,682 26,840 ,,. '" 1,"4 600,!62 116,6&2 2!>,840 l,9S4 000.862 116.6&2 26,540 ' 1,"4 s 601,320 s 116,W s 26,540 86 Assets Cash ..i cuh cq,.iinlcnls Rcai-".e -To1.J11ss,di Liabilities and fund balances Liabilitits: Accour::Spayablt A;;:cnitdcxpendhurt.1 UeeamedrcYenue Ductootl-.erfundl Tol-lllli@iliti" Fund balm;a; Jtatric-.e4 Come:i~d Aoipd l.lnassig!!ed Tot11lfundb•l11n~ Tot11lliahiliti•1111dfundbal1111CH Police lnv.stigalion At:counl 3,38.S ,.,., 3,JIU 3,38.S 3,38.S City of Salina, Kansas Combining Balance Sheet Nonmajor Governmental Funds (Continued) December 31, 2022 Beechcran Ball DTF DTF Remediation Bond Parks Cltlzenshle Loeol ....... Senlement Escrow Mlinten■nce 10,160 29,692 .Sl_,j()l " 1,13!1 1~8.266 70,160 29,692 53,401 12 1,13.S 1,368,266 """ 13,26.S <.209 13,265 70,160 2:S,4K3 53,401 1,135 917,638 07,.363 12 70,160 2.S,483 53,401 12 1,13.S 1,l.S.S,001 'IO 160 ' 29,692 .S3401 12 ' ],13.S l,368i266 Building and Fleet s1ree1 Facilities Managemenl Maintenance Maintenance Tolals 73.S.OS4 s 1,281,81<4 737,201 1!1,119,341 l1069i!38 735,014 1,218,814 737,201 18,9.Sl.679 379,322 49,479 919,900 14,!I.S9 20,000 3711,ll2 49,479 9~.◄.S9 3,937,773 ,,,,,,.. 236.001 .S87,290 11,900,011 67).491 100,432 2,166,424 12 735.,.084 ~.492 687,122 111,004,220 73.S.084 ' 1218,114 ' 737,201 18;2.SS.679 87 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2022 Tourism Business Speclal Conwoonlty 8ale1Tax Downtown aod 8peclal Blcentennlal lmprovema,nt N•lghborhood Park$& 8pec:l.al DeVelopment Economic TIF South Convention o .. Center Dlstrtct .... Recreation Alcohol Revolving Development Dl11rtct#1 9th CID Revenues Ta'<cs $ 2,453,194 423,490 850,345 285,121 lntcrgo\'cmmental 1,444,399 259,238 259,238 Charges for sen-ices 86,833 Licenses and permits 14,600 111\!estmcnt revenue l.90• 711 Donations Miscellaneous 93,830 38,979 14.530 Total revenues 2,453,194 1,538,229 38,979 86,833 14,600 259,238 259,238 423,490 854,248 299,721 Expenditures Cu=nl Culture and retJQtion 1,316,597 Public safety 440,495 Public health and sanitation 259,238 Planning and development 1,113,444 83,720 245,058 273,506 Miscellaneous Capilal Outlay 553,684 12.280 257,847 373,001 Interest and other charges Tolal expenditures 1,113,444 994,179 1.3l6,S97 83.720 12,280 257,847 259,238 373,001 245,058 273.506 Excess (deficiency) of revenues over (under) expenditures 1.339,750 544.050 p.277,6181 3,113 2.320 1,391 50.489 609,190 26,215 Other Financing Sources (Uses) Transfers in 160,000 861,861 750.000 Transfers out (902,791) Total DWr financing sources (uses) (902,791) 160,000 861,861 750.()00 Net Change in Fund Balanca 436,959 704,050 (415,757) 3.113 2,320 1,391 800,489 609,190 26,215 Fund Balanca, Be&inniog 603,485 2 361,937 652,363 578 -44,121 482.943 234 186,307 97.355 1,096,634 1,718 Fund Balances, Ending 1.040,444 3,065,987 236,606 3,691 46,441 484,334 234 186,307 897,844 1,705.824 27 933 88 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Kanwood 8peol1I Downtown All■y Downlown North Ith STA1t8orld1 ..... 011 Co,o .... l'GliDII CID CID Hot■I CID CID S11bprojMt:1 Grants CClnYl'lunkaat:IOM c...., EnfofNIMM Granls Revenues Taxes 387,042 18,321 87,578 38,297 Intergovernmental 380,577 396,578 Charges for services Licenses end permits Investment revenue 937 19 1.417 00!'.ations Miscellaneous 73,168 Total reveoues 387,979 18,324 87,597 38,297 73,168 380,577 397,995 Expendttures Cmrenl Culture and rccrcalioo Public safety 232,864 Public health and sanitation ?Ja:ining and development 117,320 18.327 148,247 34,914 Miscellaneous Capita.I Outlay 73,168 350,000 56,402 ln!erest and other charges Total expenditures 117,320 18,327 148,247 34,914 73,168 350,000 232,864 56,402 Excess (deficiency) of revenues over (Wlder) cxpeuditw'es: 270,659 {l) {60,650/ 3,383 30,577 165,131 (56,402) Other Financing Sources (Uses) Transfers in ~J~.l Transfers out Total other financing sources (uses) 68,350 Net Change in Fund Balancn 270,659 {3) {60,650) 3,383 30,577 165,131 11,948 Fund Balances, Bqi.nnJng 180,374 60652 2,000000 217,883 455,183 57,968 82 3,479 Fund Balances, Ending 451,033 2 $ 3,383 2,000,000 248,460 620,314 69,916 82 3,479 89 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Police Wa, Federal Department Animal Special Court SFH DARE Memorial Art,& CARE Federal Homaowners:' Private Shelter Assaumen1I Bond ■nd QalicB Don■Uons Maintenance HumanHIH ""'"' Forfiilure Funds Assistance OranR Donations E,aow Restllution Revenu.s Taxeg s $ s s s Inte:rgovemmcnlal Charges for services 492,917 374,434 Licenses and permils Investment revenue 795 71 Donations 104,558 Miscellaneous 1,525 1315 Total revenues 493,712 1,525 71 374,434 1,315 104,558 &xpenditures Cw=I Cultw-e and recreation 957,270 Public safety Public health and sanitation 53,985 Planning and development 3,427 10,000 Miscellaneous 10,000 Capital Outlay Interest and other charges 200,129 Total expenditures 210,129 3,427 957,270 10,000 53,985 Excess (deficiency) ofn:·venues over (under) espenditures 283,583 (1,902) 71 (582,836) 1,315 (10,000) 50,573 Oth■r Financing Sources (Uses) Transferain ;xi.• Transfers out Total other fiDIUlCin!!, ij(JUJCeS (uses) 520,000 Ntt Change in Fund BaJalK."CI 283,SSJ (1,902) 71 (62,836) 1,315 (10,000) 50,573 Fund Balaatt•• Btginning I.&4'.3,459 31887 30,873 151,408 26.141 99 20595 11,954 5S0.289 116.682 26,840 Fund Balance1, Ending 2,127,042 29,985 30,944 s 88,572 26,141 $ 99 $ 21,910 1,954 600,862 116,682 26,840 90 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended December 31, 2022 Pallce Beechcrafl Ball Building and Investigation DTF DTF Remedilllion Bood Parka Fleet Stfcct Facilities ""'"""' Citizenship Local Re58rve Settlem1nl Eocn,w Maintenance Man51ement Maintenance Maintenance Revenues Taxes s s Intcrgm,enunental CliaJBl:liforseMces Licemes md permits Investrr.ent re'-'l:nue 35,085 78 Donations Miscell11neous 22,296 5,678 2,415 443,390 'i'otal n:venues 35,085 22,296 5,678 78 2,415 443,390 Expenditures Cunent Culture and recreatirm P'Jb]icsarery 23,969 Public l:.ealth and sanitation Planning and development Miscellaneous Capita: Outlay 9,006 664,999 267,331 J,283,898 182,778 !nterest and other charges Total expenditure! 9.(,06 23.969 664,999 267,331 3,283,898 181,778 Excess (deficiency) of revenues over (under) expenditures 26,079 (1,673) 5,678 78 (66419991 (264,916) (!,840,508) (182,778) Other Financing Sources IUses) Transfers in 2,020,000 1,000,000 J,750,000 870,500 Transfers out Total other fmancing sources (uses) 2,020,000 1,000,000 3,750,000 870,500 Net Change in Fuad Balancia 26,079 (1,673) S,678 78 1,355,001 735,08-4 909,492 687,722 Fund Balani:cs, Btginning J,385 44,081 27,156 47,723 (661 l,l3S Fund Balantcs, Ending 3.38) 70,160 25,483 53,401 ll 1,135 l,JSl,001 735,084 909,492 s 687,722 Total Nonm11jor GowmrMntal Fund• 4,.543.JBB 2,740,030 954,184 14.600 42,378 104,558 697,126 9,096.264 2,273,867 697,328 313,223 2,047,963 10,000 6,084,394 200 129 Jl,626,904 (2,530,640) 10,000,711 (902,791) 9,097,920 6.567.280 11,436,940 S I 8,004,220 91 Assets Cash and investments Total assets Liabilities and fund balances Liabilities: Accounts payable Total liabilities Fund balances: Committed City of Salina, Kansas Combining Balance Sheet Nonmajor Permanent Funds December 31, 2022 Cemetery Mausoleum Endowment Endowment $ 546,085 $ 2,085 546,085 2,085 546,085 2,085 Total liabilities and fund balances $ 546,085 $ 2,085 Tricentennial Commission Total $ 2 $ 548,172 2 548,172 2 548,172 $ 2 $ 548,172 92 City of Salina, Kansas Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Permanent Funds For the Year Ended December 31, 2022 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total Revenues Charges for services $ 12,602 $ $ $ 12,602 Investment revenue 1,962 12 8 1,982 Total revenues 14,564 12 8 14,584 Expenditures Miscellaneous 19,459 5,929 25,388 Total expenditures 19,459 5,929 25,388 Net change in fund balances (4,895) 12 (5,921) (10,804) Fund balances -beginning of year 550,980 2,073 5,923 558,976 Fund balances -end of year $ 546,085 $ 2,085 $ 2 $ 548,172 93 City of Salina, Kansas Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one agency to other departments or agencies of the government and to other governmental units on a cost reimbursement basis. Workers' compensation reserve fund -To account for the costs of providing a partially self-insured workers' compensation plan and for accumulating the necessary reserve amounts. Health insurance fund -To account for the costs of providing a partially self-insured health insurance and for accumulating the necessary reserve amounts. Central garage fund -To account for the accumulation and allocation for costs associated with the City's centralized vehicle repair shop. 94 City of Salina, Kansas Combining Statement of Net Position Internal Service Funds December 31 , 2022 Workers' Compensation Health Reserve Insurance Current assets: Cash and investments $ 1,077,472 $ 3,855,846 Inventory and prepaid supplies Total current assets 1,077,472 3,855,846 Capital assets Less: accumulated depreciation Total capital assets Total assets 1,077,472 3,855,846 Deferred outflows of resources: KPERS OPEB deferred outflows of resources Pension deferred outflows of resources Total deferred outflows of resources Total assets and deferred outflows ofresources 1,077,472 3,855,846 Current liabilities: Accounts payable 124 Accrued expenses 23,801 Current portion of compensated absences payable Current portion of accrued claims payable 16944 405,000 Total current liabilities 17,068 428,801 N oncurrent liabilities: Compensated absences payable Accrued claims payable Net KPERS OPEB obligation Net pension liability Total noncurrent liabilities Total liabilities 17,068 428,801 Deferred inflows of resources KPERS OPEB deferred inflows of resources Pension deferred inflows ofresources Total deferred inflows of resources Total liabilities and deferred inflows of resources 17,068 428,801 Net Position Net investment in capital assets, net of related debt U mestricted 1,060,404 3,427,045 Total net position $ 1,060,404 $ 3,427,045 Central Garage and Maintenance Total $ 339,078 $ 5,272,396 110,905 110,905 449,983 5,383,301 168,234 168,234 154,325 154,325 13,909 13,909 463,892 5,397,210 729 729 50,723 50,723 51452 51,452 515,344 5,448,662 60,364 60,488 8,659 32,460 7,407 7,407 421 ,944 76,430 522,299 9,206 9,206 6,574 6,574 161,523 161,523 177,303 177,303 253 ,733 699,602 5,505 5,505 14 518 14,518 20,023 20,023 273,756 719,625 13,909 13,909 227 679 4,715,128 $ 241,588 $ 4,729,037 95 City of Salina, Kansas Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2022 Workers' Central Compensation Health Garage and Reserve Insurance Maintenance Total Operating Revenues Charges for services $ 250,000 $ 6,220,586 $ 1,552,263 $ 8,022,849 Miscellaneous 1,203 23,899 1,121 26,223 Total operating revenues 251,203 6,244,485 1,553,384 8,049,072 Operating Expenses General government (104,788) 6,254,166 1,759,268 7,908,646 Depreciation Total operating expenses (104,788) 6,254,166 1,759,268 7,908,646 Income (loss) before transfers 355,991 (9,681) (205,884) 140,426 Transfers in 80,000 80,000 Change in net position 355,991 (9,681) (125,884) 220,426 Net Position, Beginning 704,413 3,436,726 367,472 4,508,611 Net Position, Ending $ 1,060,404 $ 3,427,045 $ 241,588 $ 4,729,037 96 City of Salina, Kansas Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2022 Workers' Compensation Health Reserve Insurance Operating Activities Cash received from customers and users $ 250,000 $ 6,220,586 Cash paid to suppliers of goods and services (244,941) (6,266,166) Cash paid to employees 23,801 Other operating receipts 1,203 23,899 Net cash provided by (used in) operating activities 6,262 2 120 Noncapital Financing Activities Transfers in Net cash provided by noncapital financing activities Net increase (decrease) in cash and cash equivalents 6,262 2,120 Cash and Cash Equivalents, Beginning of Year 1,071,210 3,853,726 Cash and Cash Equivalents, End of Year $ 1,077,472 $ 3,855,846 Reconciliation of Operatin11 Income (Loss) to Net Cash Provided by (Used in) Operating Activities Operating income (loss) $ 355,991 $ (9,681) Adjustmeot to reconcile operating income (loss) to net cash provided by (used in) operating activi1ies: Deprecia1ion expense (Increase) decrease in prep aids (Increase) decrease in deferred outflows Increase (decrease) in accounts payable 124 Increase (decrease) in accrued and claims payable (180,863) 11,801 Increase (decrease) in accrued compensated absences (168,990) Increase (decrease) in net pension liability Increase (decrease) in KPERS OPEB liability Increase (decrease) in claims payable Increase (decrease) in deferred inflows Total adjustments (349,729) 11 801 Net cash provided by (used in) operating activities $ 6,262 $ 2,120 Central Garase Total $ 1,552,263 $ 8,022,849 (1,762,048) (8,273,155) (9,305) 14,496 1,121 26,223 (217,969) (209,587) 80 000 80,000 80,000 80 000 (137,969) (129,587) 477,047 5 401 983 $ 339 078 $ 5,272,396 $ (205,884) $ 140,426 25,470 25,470 (13,376) (13,376) (19,591) (19,467) (169,062) (7,449) (176,439) 55,614 55,614 (1,910) (1,910) (50,843) (50,843} (12,085) /350,013) s (217,969) s (209,587) 97 City of Salina, Kansas Budget Comparison Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) Tourism and Convention Fund For the Year Ended December 31, 2022 Variance with Budgeted Arnoun1S Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Other taxes $ 1,754,000 $ 2,333,000 $ 2,453,194 $ 120,194 Total revenues 1,754,000 2,333,000 2,453,194 120 194 Expenditures Current Planning and development 841,920 l,II9,840 1,113,444 6,396 Total expenditures 841,920 1,119,840 1,113,444 6396 Excess (deficiency) of revenues over (under) expenditures 912,080 1,213,160 1,339,750 126,590 Other Financing Sources (Uses) Transfers (out) (912,080) (1,213,160) (902,791) 310,369 Total other financing sources (uses) (912,080) (1,213, I 60) (902,791) 310,369 Net Change in Fund Balance 436,959 436,959 Fund Balance, Beginning 853 853 603,485 602,632 Fund Balance, Ending $ 853 $ 853 $ 1,040,444 $ 1,039,591 98 City of Salina, Kansas Budget Comparison Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Non -GAAP Basis) Special Gas Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Taxes Intergovernmental $ 1,323,000 $ 1,323,000 $ 1,444,399 $ 121,399 Miscellaneous 433,000 433,000 93;830 (339,170) Total revenues 1,756,000 1,756,000 1,538,229 (217,771) Expenditures Current Public works 486,950 486,950 440,495 46,455 Capital outlay 2,386,243 2,386,243 553,684 1,832,559 Total expenditures 2,873,193 2,873,193 994,179 1,879,014 Excess (deficiency) of revenues over (under) expenditures (1,117,193) (1,117,193) 544,050 1,661,243 Other Financing Sources (Uses) Transfers in 160,000 160,000 160,000 Total other financing sources (uses) 160,000 160,000 160,000 Net Change in Fund Balance (957,193) (957,193) 704,050 1,661,243 Fund Balance, Beginning 2,361,937 2,361,937 2,361,937 Fund Balance, Ending $ 1,404,744 $ 1,404,744 $ 3,065,987 $ 1,661,243 99 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Bicentennial Center Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budset Orl&inal Final Amounts Positive (Nesatlve! Revenues Miscellaneous $ $ 38,000 $ 38,979 $ 979 Total revenues 38,000 38,979 979 Expenditures Current Culture and recreation 925,000 1,350,000 1,316,597 33,403 Total expenditures 925,000 1,350,000 1,316,597 33,403 Excess (deficiency) of revenues over (under) expenditures (925,000) (1,312,000) {1,277,618) 34,382 Other Financing Sources (Uses) Transfers in 710,400 862,000 861,861 {139) Total other financing sources (uses) 710,400 862,000 861,861 (139) Net Change in Fund Balance (214,600) (450,000) (415,757) 34,243 Fund Balance, Beginning 396,628 643,173 652,363 9,190 Fund Balance, Ending $ 182,028 $ 193,173 $ 236,606 $ 43,433 100 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Business Improvement District Fund For the Year Ended December 31, 2022 Variance with Bud§!eted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Charges for services $ 90,000 $ 90,000 $ 86,833 $ (3,167) Total revenues 90,000 90,000 86,833 (3,167) Expenditures Current Planning and development 90,000 90,000 83,720 6,280 Total expenditures 90,000 90,000 83,720 6,280 Excess (deficiency) ofrevenues over (under) expenditures 3,113 3,113 Net Change in Fund Balance 3,113 3,113 Fund Balance, Beginning 578 578 578 Fund Balance, Ending $ 578 $ 578 $ 3,691 $ 3,113 101 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Neighborhood Park Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Negative) Revenues Licenses and pennits $ 5,000 $ 15,000 $ 14,600 $ (400) Total revenues 5,000 15,000 14,600 {400) Expenditures Capital Outlay 10,000 15,000 12,280 2,720 Total expenditures 10,000 15,000 12,280 2,720 Excess (deficiency) of revenues over (under) expenditures (5,000) 2,320 2,320 Net Change in Fund Balance (5,000) 2,320 2,320 Fund Balance, Beginning 28,321 44,120 44,121 Fund Balance, Ending $ 23,321 $ 44,120 $ 46,441 $ 2,321 102 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Special Parks and Recreation Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Pos ltive (Negative) Revenues Intergovernmental $ 174,000 $ 174,000 $ 259,238 $ 85,238 Total revenues 174,000 174,000 259,238 85,238 Expenditures Capital Outlay 174,000 174,000 81,750 92,250 Total expenditures 174,000 174,000 81,750 92,250 Excess ( deficiency) ofrevenues over (under) expenditures 177,488 177,488 Net Change in Fund Balance 177,488 177,488 Fund Balance, Beginning 482,943 482,943 482,943 Fund Balance, Ending $ 482,943 $ 482,943 $ 660,431 $ 177,488 Reconcilation to GAAP Current year encumbrances (176,097) GAAP Net Change in Fund Balance $ 1,391 103 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Special Alcohol Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Orlfi!inal Final Amounts Positive !Nefi!atlvel Revenues Intergovernmental $ 174,000 $ 275,000 $ 259,238 $ (15,762) Total revenues 174,000 275,000 259,238 (15,762) Expenditures Current Public health and sanitation 174,000 275,000 259,238 15,762 Total expenditures 174,000 275,000 259,238 15,762 Excess (deficiency) ofrevenues over (under) expenditures Net Change in Fund Balance Fund Balance, Beginning 234 234 234 Fund Balance, Ending $ 234 $ 234 $ 234 $ 104 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Sales Tax Economic Development Fund For the Year Ended December 31, 2022 Variance with Budaeted Amounts Actual Final Budset Orlalnal Final Amounts Positive (Nesative) Revenues Taxes $ 366,000 $ 366,000 $ 423,490 $ 57,490 Total revenues 366,000 366,000 423,490 57,490 Expenditures Capital Outlay 1,045,000 1,045,000 373,001 671,999 Total expenditures 1,045,000 1,045,000 373,001 671,999 Excess (deficiency) ofrevenues over (under) expenditures (679,000) (679,000) 50,489 729,489 Other Financing Sources (Uses) Transfers in 750,000 750,000 750,000 Total oilier financing sources (uses) 750,000 750,000 750,000 Net Change in Fund Balance 71,000 71,000 800,489 729,489 Fund Balance, Beginning 97,355 97,355 97,355 Fund Balance, Ending $ 168,355 $ 168,35S $ 897,844 $ 729,489 105 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Arts & Humanities Fund For the Year Ended December 31, 2022 Variance with Budaeted Amounts Actual Final Budset Ori!!lnal Final Amounts Positive (Nesatlve) Revenues Charges for services $ 326,000 $ 326,000 $ 374,434 $ 48,434 Miscellaneous 37,000 37,000 p7,000) Total revenues 363,000 363,000 374,434 11 ,434 Expenditures Current Culture and recreation 993,017 993,017 957,270 35,747 Total expenditures 993,017 993,017 957,270 35,747 Excess (deficiency) of revenues over (under) expenditures (630,017) (630,0172 (582,836} 47,181 Other Financing Sources (Uses) Transfers in 645,500 645,500 520,000 (125,500) Total other financing sources (uses) 645,500 645,500 520,000 (125,500) Net Change in Fund Balance 15,483 15,483 (62,836) (78,319) Fund Balance, Beginning 151,408 151,408 151,408 Fund Balance, Ending $ 166,891 $ 166,891 $ 88,572 $ (78,319) 106 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Debt Service Fund For the Year Ended December 31, 2022 Variance with Budseted Amounts Actual Final Budaet Original Final Amounts Positive (Neaatlve) Revenues Taxes Real estate taxes $ 3,342,920 $ 3,342,920 $ 2,991,642 $ (351,278) Delinquent taxes 50,000 50,000 33,912 (16,088) Motor vehicle taxes 358,394 358,394 361,121 2,727 Special assessments 1,435,600 1,435,600 1,409,833 (25,767) Total revenues 5,186,914 5,186,914 4,968,707 (218,207) Expenditures Debt service Principal retirement 4,712,000 4,712,000 5,005,734 (293,734) Interest and other charges 1,989,000 1,989,000 1,804,561 184,439 Total expenditures 6,701,000 6,701,000 6,810,295 (109,295) Excess (deficiency) ofrevenues over (under) expenditures (1,514,086) (1,514,086) (1,841,588) (327,502) Other Financing Sources (Uses) Transfers in 1,625,000 1,625,000 1,925,930 300,930 Total other financing sources (uses) 1,625,000 1,625,000 1,925,930 300,930 Net Change in Fund Balance 110,914 110,914 84,342 (26,572) Fund Balance, Beginning 2,111 ,664 2,111,664 2,111,664 Fund Balance, Ending $ 2,222,578 $ 2,222,578 $ 2,196,006 $ (26,572) 107 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Solid Waste Disposal Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Or!llinal Final Amounts Positive (Negative) Revenues Charges for services $ 2,454,000 $ 3,150,000 $ 4,047,428 $ 897,428 Miscellaneous 51,972 51,972 Total revenues 2,454,000 3,150,000 4,099,400 949,400 Expenditures Public works 2,331,442 2,681,439 639,495 2,041,944 Total expenditures 2,331,442 2,681,439 773,737 1,907,702 Excess (deficiency) ofrevenues over (under) expenditures 122,558 468,561 3,325,663 2,857,102 Other financing sources (uses) Accretion of board premium 24,078 24,078 Interest expense (57,268) (57,268) (38,071) 19,197 Transfers in 612,000 650,000 42,500 (607,500) Transfers (out) (636,700) (636,700) (701,700) (65,000) Total other financing sources (uses) (81,968) (43,968) (673,193) (629,225) Net Change in Fund Balance 40,590 424,593 2,652,470 2,227,877 Fund Balance, Beginning 5,429,823 6,225,330 5,666,666 (558,664) Fund Balance, Ending $ 5,470,413 $ 6,649,923 $ 8,319,136 $ 1,669,213 108 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Water and Sewer Fund For the Year Ended December 31, 2022 Variance with Budieted Amounts Actual Final Budget Ori2inal Final Amounts Positive (Nesative! Revenues Charges for services $ 19,964,700 $ 19,964,700 $ 21,839,834 $ 1,875,134 Miscellaneous 4,000 4,000 2,902,407 2,898,407 Total revenues 19,968,700 19,968,700 24,742,241 4,773,541 Expenditures Public works 18,%6,281 18,966,281 10,883,710 8,082,571 Depreciation 3,711,786 (3,711,786) Total expenditures 18,966,281 18,966,281 14,595,496 4,370,785 Excess (deficiency) of revenues over (under) expenditures 1,002,419 1,002,419 10,146,745 9,144,326 Other financing sources (uses) Accretion of board premium 81,336 81,336 Interest expense (1,370,866) (1,370,866) Transfers in 144,400 144,400 5,178,672 5,034,272 Transfers ( out) (5,343,790) (5,343,790) (9,068,422) (3,724,632) Total other financing sources (uses) (5,199,390) (5,199,390) (5,179,280) 20,110 Net Change in Fund Balance (4,196,971) (4,196,971) 4,967,465 9,164,436 Fund Balance, Beginning 102,959,063 102,959,063 102,959,063 Fund Balance, Ending $ 98,762,092 $ 98,762,092 $ 107,926,528 $ 9,164,436 109 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Sanitation Fund For the Year Ended December 31, 2022 Variance with Bud11eted Amounts Actual Final Budli!et Ori11inal Final Amounts Positive !Neaative! Revenues Charges for services $ 3,229,000 $ 3,229,000 $ 3,474,084 $ 245,084 Total revenues 3,229,000 3,229,000 3,474,114 245,114 Expenditures Public works 2,771,622 2,771,622 2,516,563 255,059 Total expenditures 2,771,622 2,771,622 2,675,420 96,202 Excess (deficiency) ofrevenues over (under) expenditures 457,378 457,378 798,694 341,316 Other financing sources (uses) Transfers (out) (619,454) (619,454) (497,350) 122,104 Total other financing sources (uses) (619,454) (619,454) (497,350) 122,104 Net Change in Fund Balance (162,076) (162,076) 301,344 463,420 Fund Balance, Beginning 1,862,045 1,862,045 1,862,045 Fund Balance, Ending $ 1,699,969 $ 1,699,969 $ 2,163,389 $ 463,420 110 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Golf Course Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budset Original Final Amounts Positive !Nesative) Revenues Charges for services $ 882,000 $ 882,000 $ 784,528 $ (97,472) Total revenues 882,000 882,000 857,376 (24,624) Expenditures Recreation 850,11 0 971,110 870,812 100,298 Total expenditures 850,1 IO 971,110 915,796 55,314 Excess (deficiency) ofrevenues over (under) expenditures 31,890 (89,IIO) (58,420) 30,690 Other financing sources (uses) Transfers in 10,000 10,000 Total other financing sources (uses) 10,000 10,000 Net Change in Fund Balance 31,890 (79,IIO) (48,420) 30,690 Fund Balance, Beginning 51,692 80,898 317,306 236,408 Fund Balance, Ending $ 83,582 $ 1,788 $ 268,886 $ 267,098 111 f City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Workers' Compensation Reserve Fund For the Year Ended December 31, 2022 Variance with Budseted Amounts Actual Final Budget Orlslnal Final Amounts Positive (Nesatlve) Revenues Charges for services $ 250,000 $ 250,000 $ 250,000 $ Miscellaneous 100 100 1,203 1,103 Total revenues 250,100 250,100 251,203 1,103 Expenditures General government 430,418 430,418 (104,788) 535,206 Total expenditures 430,418 430,418 (104,788) 535,206 Excess (deficiency) ofrevenues over (under) expenditures (180,318) (180,318) 355,991 536,309 Other financing sources (uses) Transfers in Transfers ( out) Total other financing sources (uses) Net Change in Fund Balance (180,318) (180,318) 355,991 536,309 Fund Balance, Beginning 704,413 704,413 704,413 Fund Balance, Ending $ 524,095 $ 524,095 $ 1,060,404 $ 536,309 112 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Health Insurance Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budget Original Final Amounts Positive (Neaatlv&! Revenues Charges for services $ 7,268,999 $ 7,268,999 $ 6,220,586 $ (1,048,413) Miscellaneous 49,500 49,500 23,899 (25,601) Total revenues 7,318,499 7,318,499 6,244,485 (1,074,014) Expenditures General government 7,136,300 7,136,300 6,254,166 882,134 Total expenditures 7,136,300 7,136,300 6,254,166 882,134 Excess (deficiency) of revenues over (under) expenditures 182,199 182,199 (9,681) (191,880) Net Change in Fund Balance 182,199 182,199 (9,681) (191,880) Fund Balance, Beginning 3,436,726 3,436,726 3,436,726 Fund Balance, Ending $ 3,618,925 $ 3,618,925 $ 3,427,045 $ (191,880) 113 City of Salina, Kansas Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis) Central Garage Fund For the Year Ended December 31, 2022 Variance with Budgeted Amounts Actual Final Budset Orisinal Final Amounts Positive (N~ative) Revenues Charges for services $ 1,510,400 $ 1,625,000 $ 1,552,263 $ (72,737) Miscellaneous 1,121 1,121 Total revenues 1,510,400 1,625,000 1,553,384 (71,616) Expenditures General government 1,504,200 1,888,550 1,759,268 129,282 Total expenditures 1,504,200 1,888,550 1,759,268 129,282 Excess (deficiency) of revenues over (under) expenditures 6,200 (263,550) (205,884) 57,666 Other financing sources (uses) Transfers in 80,000 80,000 Total other financing sources (uses) 80,000 80,000 Net Change in Fund Balance 6,200 (263,550) (125,884) 137,666 Fund Balance, Beginning 327,853 394,425 367,472 (26,953) Fund Balance, Ending $ 334,053 $ 130,875 $ 241,588 $ 110,713 114 Statistical Section 2014 City of Salina, Kansas Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)(in 000's) Schedule 1 Flsc.alVe■r 2015 2011 2017 2018 2019 2020 2021 2022 2013 AmDUnt .. Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amounl % Govt'nuumtaJ ldhffla Nel UWcstmem in apil&I &5Xls -Restriclt:d Unn:stric:tecl. Total govcmmcnt&I Ktivitica net position Buslnns-type lldhillts Net itwc1tmcnt in capital U$ei:. Restricted Uuest:ric!cd Totalbusincss-type9c:tivicie:s netp;:ei1Kln Prlrnary p,mm«1t Nctill'YCflm.tntlne&pit.lallKts Restricted Unrestricted Totalprimarygovcmment nctpo!ition 116 • .S!.5 1,210 11,682 129,477 57.103 ·~" 17794 76.450 173,688 2,763 29,476 90'!~ s )15,589 HO 876 9'!·• -11fil_ l~O~ 75% 61,721 2~• 1,512 23% ~ JW,'c, S 82778 84,. 177,310 1% 2,388 14% ~ '"" s 130,401 122!-i $ 124.635 1•,o l,224 1% 1,7311 9'~~ -23% ~ 100% ~ 100% ~ 7.S'Jt 68,107 BO'!i 62,427 '" l,512 '" l,512 24% -----ill!2.. 111% ~ 1~• ~ 1~•~ 84!'t 198,508 103,. 187,062 lo/f 2,736 t ~· 3,250 15',~~ -S% -----1il!!... Source: Ctty of Salina Annual Comprehensive Financial Reports, 2013 -2022 J08'Jio $ 129,921 l'Jio l,012 -~-_____l!:llli J 00'/4 ~ 71% 63,316 r.• 1.s12 21% ___M:ill_ 1cm1~ 92% 193,237 2% 3,524 6•!· ~ 105% ' 144,846 1~• $ 1,i,.SJ:7 ll~o $ 143,SS9 100", ' 143.761 64'J• s ,.,.,,, 63'!'. 2% "" 2% 1,670 m 2,267 "' .,,,.. '"' 68,338 30% _,,. ~ -IO'!io ~ -11 'J• ~ -1 ~-6 ~ 4'·~ 7%, 100''1 ~ 100% ~ 100-/e S U40S2 10(1!,l, ~ JOO¾ ~ 100% 7J'S 62,3611 69"/e 63,301 68'-• 63,742 66',i '6,004 '"" 75,933 64'!-'o "' l,SJ2 2'/4 1,368 "' l,17S m, 1.132 I!'-1.347 J'I'. 21,. ~ 29% ~ 31! .. ~ 33!♦ ~ 39"/4 ~ Js,o 100¾ ~ H)OC/4 ~ 1~• ~ 100,i~ I~•;, ~ 100-A 9m 201,214 931/4 214,828 93% 207,301 w.• 199,772 63o/, 218,331 63% r.-. 3,878 2% ).038 ,,. 3,442 m 10,soo 22% 69,68.S 20-/o 8'•~ 60/·~ 6',·~ 12% ~ Is~-.. -----1!d,2L l 7% 115 Expenses Governmental activities: General government Public safety Public works Public health and sBnitation Culture and recreation Planning and development Interest on long term debt Tote\ governmental activities expenses Business-type iictivities: Solid waste disposal Water and sewer Sanitation Golf course Total business-type activities expenses Total primary govermnent expenses Program Rn-enue1 Governmental activities: Charges for services City of Salina, Kansas Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)(in 000's) Schedule 2 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10,978 12,175 10,743 9,188 9,780 12,013 10,866 10,395 16,098 16,479 19,649 20,208 21,084 22,232 23,120 23,892 25,358 24,672 23,877 29.381 11,064 ll,401 9,049 9,773 10,345 10,458 10,529 10,511 16,335 11,141 1,369 347 995 1,095 1,126 1,256 1,156 1,323 2,315 1,883 4,809 5,156 6,517 6,612 6,880 7,040 6,879 5,034 6,305 8,145 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2,004 2,289 3,415 1,953 1,817 1,774 2,971 1,725 2,117 2,169 2,350 2,827 2.152 ~ ~ ~ ~ ~~ ~~~ ~ 3,532 1,867 1,766 2,335 2,365 2,382 2,871 2,056 1,836 788 15,418 14,938 11,712 14,807 15,650 15,190 14,551 13,386 13,3IO 15,885 2,237 2,399 1,909 2,043 2,178 2,419 2,313 2,526 3,655 2,675 768 837 821 792 852 926 888 805 878 916 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 68,285 $ 73,895 S 75,856 $ 80,062 ~ ~ $ 89,725 ~ General government 5,548 5,662 3,151 3,134 S 3,470 3,569 3,401 3,339 S 3,440 (25,653) Public safety 4,656 4,222 4,600 4,891 4,601 4,815 4,357 4,325 4,527 4,926 Public works 277 255 193 238 348 285 309 294 415 408 Public health and sanitation 34 46 46 44 50 47 46 49 63 60 Cultun:andrecreation 1,466 1,533 1,501 1,638 1,541 1,545 1,514 279 1,070 968 Planning and development 161 167 73 140 91 150 104 113 114 300 Operating grants and contributions 4,200 4,015 3,394 4,332 4,541 4,299 4,540 4,714 4,711 3,407 Capital grants and contributions • • 733 • • • • . . Total governmental activities program revenues~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Business-type activities: Charges for services Solid waste disposal Water and sewer Sanitation Golf course Capital grants and contributions Total business-type activities program revenues 3,138 3,024 2,519 2,795 3,165 3,097 3,082 3,290 3,549 4,047 17,938 18,742 19,059 19,322 19,855 20,202 20,510 19,449 21,241 21,84-0 2,514 2,553 2,529 2,751 2,885 3,006 3,325 3,194 3,422 3,474 719 811 820 789 798 756 810 581 790 785 -115 ---• • --- ~ ~ ~ $ 25,657 ~ ~ ~ ~ $ 29,002 ~ Totalprimarygovemmentprog:ramrevenues $ 40,651 $ 41,145 $ 37,885 $ 40,807 $ 41,345 $ 41,771 $ 41,998 $ 39,627 $ 43,342 $ 14,561 -----~--=-== -====--= ~ Net (Expense) Revenue General Revenues & Other Changes in Net Position Governmental activities· Taxes Property tflxes, general purpose Property taxes, debt service Motor vehicle taxes Sales tax, general purpose Selective sales tax Othertaxcs: Investment revenues Miscellllneous Trans:fers,net Total governmental activities program revenues Business-type activities: Investment revenues Miscellaneous: Reimbursements Transfers, net Total business-type activities program revenues Total primary government Change in Net Position Governmental activities Business-type activities Total primary government 8,031 8,315 8,242 8,196 9,101 8,623 9,708 10,308 $ 10,821 10,706 2,362 2,578 2,766 3,022 2,487 2,457 2,664 3,058 3,065 2,992 1,200 1,250 1,312 l,370 1,372 l,428 1,403 1,520 1,643 2,014 12,260 12,689 12,931 12,781 12,906 13,292 13,419 13,697 15,315 16,698 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 11,4-05 14,979 6,630 7,231 7,363 7,991 6,900 7,241 6,975 6,117 7,116 7,438 67 98 86 148 92 183 670 286 158 487 9,918 1,160 2,37] 5,842 2,003 1,062 1,168 8,328 2,4-05 (28) 999 787 3,819 3,600 4,309 4,831 4,781 5,133 16,681 ~ $ 45,748 S 38,569 $ 43,448 $ 47,851 $ 48,002 $ 48,034 $ 50,111 $ 58,198 ~ ~ 49 279 51 97 56 78 180 132 79 129 !03 233 153 846 4 $ • $ 446 2,416 3,027 ____fil2l_ __ ._ ----l1llil. _____Q.llil_ ____illill_ ____illill_ ~ __!l.!.lli_ ~ ~ $ (622) .J......a. ~ ~ ~ ~ ~ ~ ~ ~ $ 45,126 $ 38,897 $ 39,855 $ 44,427 $ 43,867 S 43,589 $ 46,176 $ 53,515 $ 54,344 $ 58,312 $ 8,869 129 $ 4,329 $ 9,083 $ 7,833 $ 3,599 S 4,903 $ 15,022 $ 12,903 $ (27,860) 1,732 5,532 5,126 2,256 1,523 1,699 3,169 3,058 ~ 7,873 ~ ~ ~ ~ ~ $ 5,298 $ 8,072 S 18,080 ~ ~ Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 116 City of Salina, Kansas Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule 3 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Nonspendable 81 $ 107 $ Ill s 131 s 153 s 152 s 212 s 184 s 168 $ 157 Assigned 331 239 199 136 214 340 274 244 152 358 Unreserved/unassigned 3138 3 908 4,530 4 765 6 516 6,251 8,821 14,714 20,743 25 314 Total general fund $ 3 550 $ 4,254 4,840 $ 5,032 6,883 $ 6,743 $ 9,307 $ 15,142 $ 21,063 $ 25,828 All other governmental funds Restricted $ 3,446 $ 2,910 $ 2,793 $ 3,142 $ 4,191 $ 4,648 $ 5,224 $ 4,980 $ 72,025 s 67,558 Committed 7,486 9,886 8,695 14,284 10,072 7,325 8,086 13,225 16,597 20,074 Assigned 3,146 1,280 619 1,043 641 1,227 963 1,965 1,587 9,522 Unreserved/unassigned ~l0,537) (6,s23l (28) 1ss2i (7,804) (4.02si (1,058) (2 794) Total all other governmental funds $ 14078 $ 14,076 s 1,570 s 11,646 s 14,876 s 12,348 6,469 $ 16,142 s 89,151 $ 94 360 Note 1: Committed fund balance increased due to changes from the implementation of GASB Statement 84 in fiscal year 2020. Note 2: Restricted fund balance increased due to the City receiving $65.9 million from the federal government in 2021, restricted for the environmental cleanup of the former Schilling Air Force Base. 117 Re\'ffll!tlS Taxc:s(sccSehcdulcS) 111iergovemmantal Spocialu,CS!tmCMI Liccmes10dpcnniis ChqeisfnrMrviees lnYcsunentrevcnue Reimbursements Donations Mitcell•ncous Total revenues E:a:pendlturu Oeneralaovcmmcnl P\lbHcWcty Public works Public hclllth aJM! sanitation Cull'1?111nd~ati<111 PlaMina and devidopment MiscellAncous C1J!'Woud1y Debt service Princii-,1 lntarcrt Dcpoait to escrow Total expenditures Olh.-r l'inancina: mu~ (Wies) Bondsendnolesissued Bondandnotcpn:mium Tran1fc111in Tnin11fcrso111 Toblothcrfinancing!lllurccs(usc:s) Nctchangci•fundbalancc Oi::bt scNicc u I pmc:cntaac of non-capb] expenditures City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule 4 2013 201' 2015 2011 2017 2018 2019 zozo 2021 34,764 s 315,523 ' 37,171 ' 31,261 s 41,597 s 41,958 s 43,492 ' 44,452 $ 49,364 4.192 4,001 .1,385 4,325 4,536 4,297 4,573 5,317 70,892 1.706 l,110 1,679 1,669 1.539 1,546 I.596 1,511 J,,405 9 7 10 7 ' ' JO 8,536 8,276 6,416 6,953 6,880 7,338 6,804 S,.557 6,710 40 59 47 142 79 ll7 670 '" "' 9,015 123 491 1,406 241 " 141 lll "' 90 l29 90 810 799 1,853 4,315 ~ 884 1,545 S,656 1,898 ~ ~ ~ ~ ~ ~ ~ ~ ~ 4,269 ' 3,986 ' 5,342 $ 5,422 ' 5,423 s 5,649 $ 4,582 ' l,S06 ' 5,630 19,15.S 19,559 21,26A 21,664 21,629 22,953 23,692 22,435 23,215 7)20 1,,443 S,333 5,771 6,048 6.162 6.136 .... , 6,166 l,344 "' .., l,07li l.()9'l l,236 1,121 l,2IO 2,296 3,939 4,292 5,639 .S,117 6,143 6,255 6,047 ·~' .S.317 3,293 3332 1,910 2,042 1,801 2,1&.S 2,lll l,794 2,078 l,3'4 2 13.047 11,04» 25.521 24,001 18,281 16,344 21,913 12,0:tl 24,939 5,031 S,261 6.2S0 17,902 5,088 14,243 J0,324 5,164 10,550 1,867 l,864 1,833 3,152 1,771 2,192 2,136 2,366 2,411 -. -.. -. ~ S 56965 ~ ~ ~ ~ ~~ ~ s $ ' ' 5,690 $ 5,365 S 6,825 S 34,892 S 11,490 $ 8,090 S 11,090 S 8,720 $ 13,813 $ 185 302 369 1,503 95 70 443 468 592 2:022 53,416 4,785 1,410 1l 7,547 '" I0l 1,101 69,439 6,7&3 2.S}i22 5,147 l,654 6,299 2,751 36 12.629 8,616 2,126 72,263 7.840 4,907 3,001 7,642 7,06S 8,339 13,462 9,714 9,323 23,000 17,733 ~ ~ _____filill, ~ _____illfil ~ _____Q&m. ~ ~ --~"~'·'-'=') ~~~~~~ S 16,174 ~~-•..,,,,,,,.,.1_.279-:.,& "" 18% 2()% 50% 16" 37% '"' 29% 22% Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 118 2013 2014 Real estate $ 10,145 $ 10,657 $ Delinquent 248 235 Motor vehicle 1,200 1,250 General sales 12,260 12,689 Selective sales 4,281 4,461 Other taxes 6.630 7 231 Total taxes $ 34,764 $ 36,523 $ City of Salina, Kansas Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)(in 000's) Schedule 5 2015 2016 2017 2018 2019 10,729 s 10,972 $ 11,377 $ 10,804 $ 12,182 279 246 210 276 190 1,312 1,370 1,372 1,428 1,403 12,931 12,781 12,906 13,292 13,419 4,558 4,901 8,832 8,917 9,323 7 362 7991 6,900 7 240 6975 37 171 $ 38,261 $ 41,597 $ 41 957 $ 43 492 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 2020 2021 2022 $ 13,150 $ 13,500 $ 13,546 216 385 152 1,520 1,643 2,014 13,697 15,315 16,698 9,751 11,405 14,979 6 117 7116 6.028 $ 44,451 $ 49,364 $ 53,416 119 Fiscal (Budget) Year Real Estate 2013 $ 370,390,092 2014 376,131,346 2015 381,087,426 2016 389,872,825 2017 399,918,216 2018 403,835,383 2019 421,108,311 2020 423,573,121 2021 427,732,694 2022 468,723,852 City of Salina, Kansas Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Schedule 6 Total, Excluding Motor Vehicle Tota~ Taxable Personal Proee!!X State Assessed Motor Vehicles Tax Rate (Note 11 Assessed Value $ 17,769,120 $ 18,948,264 $ 405,107,476 28.927 $ 48,882,411 $ 453,989,887 13,652,885 17,670,147 407,454,378 27.080 48,865,900 456,320,278 12,607,815 18,984,453 412,679,694 27.311 50,350,566 463,030,260 11,653,719 19,323,055 420,849,599 27.603 51,833,505 472,683,104 10,900,308 19,671,685 430,490,209 26.129 50,970,796 481,461,005 10,130,718 20,485,144 434,451,245 28.394 53,336,677 487,787,922 11,245,813 22,113,195 454,467,319 29.720 54,687,311 509,154,630 9,353,057 23,436,340 456,362,518 30.650 54,589,132 510,951,650 8,154,030 23,975,182 459,861,906 30.452 56,545,812 518,407,718 9,542,807 25,613,362 503,880,021 30.348 54,903,252 558, 783,273 Estimated Total Market Value (Note 21 $ 2,917,287,724 2,957,531,741 2,957,531,741 2,964,464,111 3,097,885,103 3,150,409,123 3,294,115,685 3,326,521,997 3,392,138,959 3,705,559,200 Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based on tax effort. Ratio of Assessed Value to Esl Market Value 15.56 15.43 15.66 15.94 15.54 15.48 15.46 15.36 15.31 15.08 Note 2: The estimated market value excludes the value of the State assessed properties. Market value information is not available for those properties. However, state assessed property is generally assessed at 33% of market value, except for railroads, which are assessed al 15% of market value. Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value. Source: Saline County Clerk ("year" Tax Levy Sheet) 120 Cl!X of Salina Fiscal (Budget) DabtS.rvlc■ City of Salina, Kansas Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $1,000 of assessed value) Schedule 7 Saline Coun1t: Debt Service Total City USD305 !21 Debt Service Year O~&Millage Mll!JI! Total C!JX Mil!!&! O!eratin! Mil!!s• ~ ~ MiU!Se O~rati~ Mll!!ge Milage Total Ci!! Mitl~e 20242 5.948 26.190 34.823 34.823 47.133 11.516 2014 20.539 6.388 26.927 37.895 37.895 46.599 11.517 2015 20.692 6.366 27.080 36.047 38.047 44.086 11.517 2016 19.950 7.361 27.311 36.275 38.275 44.465 11.655 2017 21.694 5.909 27.603 37.508 37.506 44.069 11.674 2018 20.339 5.790 26.129 37.321 37.321 45.130 11.371 2019 22.265 6.109 28.394 36.437 36.437 46.776 10.746 2020 22.908 6.B12 29.720 41.097 41.097 44.761 10.747 2021 23.847 6.803 30.650 40.606 40.606 45.130 10.729 2022 23.612 6.736 30.348 3B.860 36.860 43.441 9.984 Source: Saline County Treasurer (1) The "Othet' column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State Extension District#3. (2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions. 56.649 56.116 55.605 56.120 55.743 56.501 57.522 55.50B 55.859 53.425 Other ~ 12.135 131.797 12.941 135.879 13.305 134.037 13.293 134.999 13.299 134.153 13.189 133.140 13.988 136.341 13.983 140.306 12.623 139.738 13.089 135.722 121 Taxea)'.er Evergy (Westar Energy (Western Resources) SFC Global Supply Chain, Inc. (Schwan's) Kansas Gas Service RAF Salina LLC S&BMotels Central Mall Realty Holding LLC Union Pacific Railroad Co. Menard Inc. Individual Sams Real Estate Business Trusl/Walmart Walmart Real Estate Business Trust Great Plains Manufacturing Gateway Properties Salina Regional Health Center Dillon's Combined Valuation of the Ten Largest Taxpayers City Valuation Percent of Total City Assessed Valuation Source: Saline County Clerk's Office or recent OS City of Salina, Kansas Principal Property Taxpayers Current Year and Ten Years Ago Schedule 8 2013 !2012 Assessed Value! Assessed % of Total T):e! of Business Valuation Valuation Rank Utility $ 9,256,860 2.04% 1 Pizza Manufacturing 8,007,991 1.76% 2 Utility 3,590,817 0.79% 5 Retail Shopping Mall 4,950,001 1.09% 3 Motel NIA Regional Shopping Center NIA Railroad NIA Home Improvement 2,629,399 0.58% 8 Residential NIA Discount Retail Stores NIA Discount Retail Stores 3,458,961 0.76% 7 Manufacturing 2,404,923 0.53% 9 Shopping Mall (Midstate) 3,534,018 0.78% 6 Hospital and Medical Offices 4,768,349 1.05% 4 Grocery Chain 2,396,753 0.53% 10 $ 44,998,072 $ 453,989,887 9.91% 2022 j2021 Assessed Value) Assessed ¾of Total Valuation Valuation Rank $ 15,630,615 3.01% 1 6,540,230 1.26% 2 4,844,333 0.93% 3 4,665,958 0.90% 4 4,000,001 0.77% 5 3,880,224 0.75% 6 2,712,177 0.52% 7 2,339,471 0.45% 8 2,274,633 0.44% 9 2,255,335 0.43% 10 $ 49,142,977 $ 519,483,033 9.46% 122 Fiscal (Budget) Taxes Levied for Year the fiscal ~ear 2013 $ 10,550,730 $ 2014 10,868,225 2015 10,991,959 2016 11,209,245 2017 11,564,876 2018 11,248,278 2019 12,335,808 2020 13,506,590 2021 13,958,495 2022 13,788,584 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years Schedule 9 Current Year Tax Distributions Delinquent Amount Percenta9e Collections (1) 10,145,404 96.6% $ 354,845 10,776,688 99.4% 62,432 10,460,246 96.6% 372,726 10,984,630 98.3% 184,970 11,320,197 98.2% 203,904 10,938,457 97.5% 276,340 12,097,740 98.5% 189,587 13,203,183 98.4% 216,358 13,552,390 98.0% 283,194 13,529,396 98.9% 151,560 $ (1) Delinquent collections are reported in the aggregate for all previous years. Data Is not currenHy available for "collected in subsequent years" Source: Saline Counly Treasure~s Office Total Tax Distributions Percentage of Amount levy 10,500,249 99.5% 10,839,120 99.7% 10,832,972 98.6% 11,169,600 99.6% 11,524,101 99.6% 11,214,797 99.7% 12,287,327 99.6% 13,419,541 99.4% 13,835,584 99.1% 13,680,956 99.2% 123 City of Salina, Kansas Direct Sales Rate by Taxing Entity Last Ten Fiscal Years Schedule 10 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City Direct Tax Rate General 0.50% 0.50% 0.50"/4 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Special purpose 0.40% 0.40% 0.40% 0.40% 0.75% 0.75% 0.75% 0.75% 0.75% County-wide Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Portion of County-wide tax allocated to City (July Percentage) 60.86% 60.23% 60.28% 60.28% 60.28% 59.85% 60.33% 60.17% 60.17% In addition to the direct lax, lhe City receives a portion of the Countywide sales tax, based on a formula distribulion. The formula is based on property tax effort and populalion, and is adjusted in January and July of each year. In May 2016, the voters approved an increase In the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016. Source: Kansas Departmenl of Revenue 0.50% 0.75% 1.50% 60.95% 124 City of Salina, Kansas Water Sales by Class of Customer Last Ten Fiscal Years Schedule 11 '"" ,. .. "" ""' ,.,, ""' ·-iAcctl ,_,. ...... ·--..... Kllll•Clan ..... _.,.. ... --., ... --...., --.... --"""" __ .,.. -17,9e6 989.7M ,...., 1.oM.100 ...... 987,540 16,125 ""'"" 18,12-t i&.Jfi ,8.,56 963.3'7 .,__ '·"' ........ ,.,,, 353,1575 '·"" ,,,.,., '·"" "'732 '·"" "'·"' 1,61◄ ""·"' lndlatill ., ,.,_.,, " 193,733 .. 7'12,"'17 .. 1'il,23!1 ... 193.~ .. 211,s,,13 .......... ,. ........ " "·"' " 41,528 " ◄5.13!1 " ◄1,5!52 .. 35,113,2 --"' 157,155 , .. "'·"' , .. 51,«xl ,., 57.0'Jlil "' 511.378 "' 71,559 -· .. 44,187 .. ..,,. " 45,~5 " ◄1,1M " "·"" " 30,!110 lncM~ISpec:i.l I "'"' eon.1.m11d!r,prQth.l1i1111 " """ " 19,254 " 17.336 ' '·"" • 9,«12 7 '·"' Rl.l'llweter I 21,530 I ,..., I 2U15 ' ""' I 25,62◄ I "·"' ""' ... ,._..., 10 ,., .. ' 31,658 ' ,.,,. • 35,132 ' 31,115!1 R~prdit 37 4,810 37 ◄,973 37 , ... " 5.224 ,. 4,749 36 '·"" Ervnfft~•t~,-a !1.622 a '·"' a ◄,807 7 4,573 ' 4,n2 7 'l,"'71 Prwd1-citaxa1>1111■MCII 2 '·"' 3,501 1 3,167 I "'" , .. 1 2,331 S.le ti ggmpor-.;t ~rt& 6 5,972 '·"' ' 3,900 . 3,129 "" 2,190 f'"11etr,.c1r;ar1 3 1,92'2 1,414 3 1,727 1,790 ' '·"' lrs:l~llillocn&lml!tllnprodu:tion 3 4,◄1T 3,581 ' 2,388 3 '·""' '·"' 3 2,107 &IIIICllll'maqJiprnent I 107 I .. 1 53 I .. I '" I " ~0.019 1.793772 .1115111 11l!l!'1, ~~!3 ,m:999 ,,,,m ,a,1~ ;,!l,:U 20.,Ri ,.m.,oo WMtrRat.SdltcUe: MC"lthtfmtt.rctange(~l , ... '" 5.20 '·" rn 5.74 CO/mJ:ldllylnrge(Pll'rC00-1: , ...... '" 4.◄5 ... '71 . .. 2001-10,DOO~ 0,.,..-10,IXlOljllll. EQM1,11,r~ '·"' ,,,. '·"' t,15 '·" .,, Wttll'wll"Rlte~: ----.., 7,11 722 , ... 7.!!11 7.81 Unil~(Pl"OCIJgal): 4.79 .... 5.01 .,, ... ,., Water sold is expressed in thousands of gallons. Number of Accounts billed is the annual number of billings for each dass divided by 12. Monthly meter charge increases with the size of the meter. ,.,, ··-ikcts .,, .. W,,w..., ., ... 18,15! k4.a10 ,..,.,. U07 352,051 1,812 .. 198,229 " 97 ◄1,911 .. 157 e-2,127 "' 79 31,839 " 11,974 I ,,, ... I ' "·"' • 35 2,780 " 7 . .,, . 1 ,.,. 1 . '·"' . 3 ,.1eo ' ' 2,219 ' I ,,. I xii10 ,~,g~ ~;Si, ... 5.13 10.25 . .. >70 Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption. 2020 w-- l!m,782 319,080 11M,711B "·"" 51,e:i1 24,518 '"" 31,776 "·"" 2,2"15 . .., 1,009 1,310 ""' , ..... '°' il!l!1! "' 10.62 '·" ,., 2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate Source: City of Salina Water Customer Accounting Office. "" ,.,. .... ..... -. .... 18,303 987,7Q2 ,.,., 970,4'18 ,., .. ,....., '·"' ""·'°' " 167,1191 " ,n,:s:,s n 22,810 70 22,537 157 61,021 "" "·"' "' 31,Sl60 n S5,0'22 ' 3,012 , 1,843 ' 22,970 I 20.S75 ' '""' ' 31,-405 " '·"' " , .... ' .,,, . '·"' ' ... , 1 '·"" . 1,533 ' "' 3 2,1'46 ' .... 3 ,...., 2 1,013 I "' I 10 ?!ll!:i ,&iSl!?!S :!i5:z!:! li17!:QB "'' ,.., '" 10,84 ' 11.16 .., .... ... '"' 125 Fiscal General (Budget) Obllgation Year Bonds ~ 49,631,797 2014 50,033,555 2015 50,840,632 2016 51,816,399 2017 55,994,305 2018 51,968,310 2019 54,607,702 2020 56,587,549 2021 59,582,649 2022 62,508,000 GovernmentaJ Activities City of Salina, Kansas Ratio of Outstanding Debt by Type Last Ten Fiscal Years Schedule 12 General Bu&ineu-Tre!: Activities Operating Obligation Water Revenue Loans Payable Cee!tal Lease-Lease Teme2;~ Notes Bonds Bonds Loans P~able $ $ $ 3,800,000 8,519,799 15,226,532 s 176,235 5,000,000 9,567,351 14,592,836 6,208,102 479,366 5,995,000 8,539,773 13,949,139 5,753,620 12,157,127 321,174 11,505,000 7,640,381 13,285,443 7,432,024 12,171,090 157,868 6,811,742 6,520,433 12,606,747 8,862,810 12,185,053 18,123,505 5,282,578 11,898,051 10,632,351 12,640,000 11,170,000 4,102,298 10,330,000 46,354,852 12,640,000 7,050,000 8,742,451 9,615,000 35,926,029 12,640,000 3,647,188 7,672,351 8,865,000 43,966,366 12,640,000 649,031 6,637,000 8,090,000 43,798,557 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 Percentage of Temporary Total Primary Pe!aonal Notes Government Income Per Cae;Jta 77,178,128 3.7% 1,613.05 85,598,079 4.1% 1,788.25 85,557,530 4.1% 1,789.42 104,157,548 5.0% 2,200.39 103,124,995 4.9% 2,194.43 110,089,848 4.9% 2,342.64 139,204,852 6.0% 2,979.81 130,561,029 5.5% 2,804.75 136,373,554 5.5% 2,947.09 134,322,588 6.6% 2,889.84 126 Fiscal General (Budget) Obligation Year Bonds 2013 $ 59,620,906 $ 2014 59,620,906 2015 59,380,405 2016 62,514,738 2017 57,250,888 2018 58,710,000 2019 65,330,000 2020 65,330,000 2021 67,255,000 2022 69,145,000 City of Salina, Kansas Ratio of Net General Bonded Debt Outstanding Last Ten Fiscal Years Schedule 13 General Bonded Debt Outstandin9 Temporary Less: Debt Net General Capital Lease Notes Total Service Fund Bonded Debt 176,235 $ 5,000,000 $ 64,797,141 $ 707,763 $ 64,089,378 176,235 5,000,000 64,797,141 407,864 64,389,277 479,366 5,995,000 65,854,771 745,339 65,109,432 157,868 6,811,742 69,484,348 1,248,914 68,235,434 18,123,505 75,374,393 1,509,863 73,864,530 11,170,000 69,880,000 185,158 69,694,842 7,050,000 72,380,000 1,142,418 71 ,237,582 7,050,000 72,380,000 1,724,117 70,655,883 3,647,188 70,902,188 2,111,664 68,790,524 69,145,000 2,196,006 66,948,994 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 Percentage of Actual Taxable Value of PerCaelta 14.1% $ 1,339.49 14.1% 1,345.17 14.1% 1,361.75 14.4% 1,441.51 15.3% 1,571.79 14.3% 1,483.06 14.0% 1,524.91 13.8% 1,517.85 13.3% 1,486.59 12.0% 1,440.35 127 Jurisdiction Direct: City of Salina Overtapping: Salina Airport Authority (A) Saline County USO 305 Total Overlapping Debt Total Direct and Overtapping Debt Per Capita Direct and Overlapping Debt City of Salina, Kansas Direct and Overlapping Governmental Activities Debt As of December 31, 2022 $ $ Net General Obligation Bonded Debt Outstanding 75,560,845 34,670,000 72,814,135 93,575,000 201,059,135 276,619,980 Schedule 14 Percentage Applicable to City of Salina 100.00% 100.00% 73.79% 93.10% Amount Applicable to the City of Salina $ 75,560,845 34,670,000 53,729,550 87,118,325 175,517,875 $ 251,078,720 $ 5,401.75 Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of the City of Salina bears to the assessed valuation of the overlapping entity. (A) Includes $74,900,000 of bonds issued by Saline County that have a pledge of both property taxes and a dedicated 0.50% retailers' sales tax of the county. However, based on historical collections, the County anticipates that such bonds will be repaid entirely from the sales tax. Source: Saline County Clerk 128 Legal Debt Margin Calculation for 2022 Assessed Valuation Debt Limit (30% of Assessed Value) Debt applicable to limit Total Bonded Debt Less: GO Debt Attributable to Exempt Purposes Less: Revenue Bonds Less: Loans Payable Less: Fund Balance designated for Debt Service Total Debt Applicable lo Limitation Legal debt margin 2D13 City of Salina, Kansas Legal Debt Margin Last Ten Fiscal Years Schedule 15 $ 558,783,273 167,634,982 $ 133,673,557 (6,637,000) (8,090,000) (56,438,557) (2,196,006) $ 60,311,994 $ 107,322,988 Fiscal Year 2014 2015 2016 2017 2018 Debi limit Total net debt applicable to limit Legal debt margin 136,196,966 $ 136,696,083 52,724,034 56,090,293 138,909,076 $ 141,804,931 $ 142,000,537 S 146,336,377 74,229,612 62,072,485 61,296164 68,240,457 Total net debt applicable to the limit as a percentage of debt limit 83,472,932 $ 80,805,790 39% 41% 64,679,46B 79,7321446 s so,104,353 s 1a,oss,92o s 53% 44% 43% 47% 2019 152,724,804 66.232,649 66,492, 155 $ 43% 2020 2021 153,285,495 S '155,844,910 65,748,563 66,824,139 67,536,932 $ 89,020,771 43% 43% 2022 167,634,982 60,311i994 107,322,988 36% 129 Fiscal Year Char!iles 2013 $ 17,974,089 $ 2014 18,964,164 2015 19,139,612 2016 19,389,348 2017 19,958,862 2018 20,382,469 2019 20,842,606 2020 19,448,780 2021 21,240,517 2022 21,839,834 City of Salina, Kansas Pledged Revenue Coverage Last Ten Fiscal Years Schedule 16 Water/Sewer Revenue Bonds Expenses Revenue Principal 13,373,088 $ 4,601,001 $ 620,000 12,112,288 6,851,876 630,000 9,859,974 9,279,638 640,000 11,800,473 7,588,875 660,000 13,148,035 6,810,827 675,000 12,973,621 7,408,848 705,000 13,269,741 7,572,865 725,000 12,460,334 6,988,446 715,000 12,077,933 9,162,584 750,000 15,885,026 5,954,808 775,000 Source: City of Salina Annual Comprehensive Financial Reports, 2013 -2022 City of Salina Debt Services Schedules Debt Service Interest Covera9e $ 590,191 3.80 577,791 5.67 565,191 7.70 549,191 6.28 529,391 5.65 509,141 6.10 487,991 6.24 327,117 6.71 282,825 8.87 265,950 5.72 130 Fiscal Per Capita (Budget) Personal Income Yaar Pof ulatlon !Saline Coun!):I ~ 47.846 $ 43,078 2014 47.867 43,736 2015 47.813 44,065 2016 47,336 44,230 2017 46,994 44,732 2018 46,994 47,945 2019 46,716 49,983 2020 46,550 50,820 2021 46,274 53,309 2022 46,481 56,258 City of Salina, Kansas Demographic and Economic Statistics Last Ten Fiscal Years Schedule 17 Personal Income, Percentage Free Salina Unemplo~ent Labor Force, USD305 and Reduced !lntarpolatedl Rate C!!): of sauna Headcount Lunch $ 2,061,109,988 5.1% 26.441 7,305 60.7% 2,093,511,112 5.3% 26.303 7,388 61.3% 2,106,879,845 3.9% 26.170 7,369 61.8% 2,093,647,612 3.3% 27,684 7,386 68.7% 2,102,135,608 2.7% 27,684 7,176 62.1% 2,253,127,330 3.3% 30,174 7,180 61.7% 2,335,005,828 2.9% 30,094 7,245 59.2% 2,365,671,000 3.4% 30,094 7,156 59.0% 2,466,820,666 2.3% 24,962 7,031 44.3% 2,614,928,098 2.3% 29,476 6,725 59.3% City .5 cent aalea tax 5,326,723 5,555,601 5,670,040 5,727,260 5.755,869 5,770,174 5,988,961 5,998,424 6,687,099 7,239,146 Increase In per capital Sales Tax (10 years) Increase in per capita Personal Income Sources: Population: Kansas Division of the Budget. (Population Data) Employment: Kansas Department of Labor Personal income for Salina is derived from the population and per cap~a personal Income for Saline Counly Per Capita Personal income as reported by the Bureau of Economic Analysis 2017 Per Capita Personal Income staff projection 2013 -2022 Employment City of Salina USD305 headcount and free and reduced lunch data derived from Kansas Department of Education.lUSD 305 Budget Document Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2021- 2022 school year is reported as 2021. Per Ceplta .5 cent sales Tax $ 111.33 116.06 118.59 120.99 122.48 122.79 127.77 128.86 144.51 155.74 /ua%of per capita personal ~ 0.258% 0.265% 0.269% 0.274% 0.274% 0.256% 0.256% 0.254% 0.271% 0.277% 39.9% 30.6% 131 Emelorer Salina Regional Health Center Un lfied School District No. 305 Schwan's Global Supply Chain Great Plains Manufacturing Exide Technologies/Strten Manufacturing City of Salina Salina Vortex Saline County Walmart rev Group REV Group Signify -Blue Philips Lighting Company Dillion Stores Solomon Corp Tolal Sources: Salina Chamber of Commerce City of Salina, Kansas Principal Employers Current Year and Nine Years Ago Schedule 18 2013 Tle! of Business Employees Rank Health Care 1,300 3 Public School System 1,659 2 Frozen Pizza Manufacturing 1,800 1 Agricultural & Landscaping Equipment 258 10 Automotive Battery Manufacturer 750 4 City Government 465 6 Manufacturing County Government Retail 421 7 Manufacturing Fluorescent Lamps 490 5 Retail 343 8 Bectrical Equipment 324 9 7,810 2022 Percentage of Percentage of Labor Force Employees Rank Labor Force 5.0% 1,875 1 6.2% 6.3% 1,500 2 5.0% 6.9% 1,200 3 4.0% 1.0% 1,200 4 4.0% 2.8% 700 5 2.3% 1.8% 425 6 1.4% 385 7 1.3% 325 8 1.1% 1.6% 250 9 0.8% 175 10 0.6% 1.9% 1.3% 1.2% 29.5% 8,035 27.3% 132 APPENDIX D December 31, 2023 Unaudited Financial Report The following report provides unaudited revenues, expenditures and fund balances for certain main operating funds of the City for the fiscal year ending December 31, 2023. These figures are presented on cash basis and are not prepared in accordance with generally acceptable accounting principles. The City anticipates that its final audited financial statements for the 2023 fiscal year will be available by approximately September of 2024. Unencumbered Fund Outstanding Cash Balance Fund Name Number BEG. BAIANCE DEBITS CREDITS NET CHANGE END BAIANCE Encumbrances ll/31/23 General 100 25,135,706.17 55,389,974.66 48,271,700.20 7,118,274.46 32,253,980.63 318,782.98 31,935,197.65 Sales Tax capital 210 8,337,703.26 10,798,120.09 14,086,468.97 -3,288,348.88 5,049,354.38 0.00 5,049,354.38 Gas Tax 270 2,901,387.49 1,559,092.71 1,877,637.03 -318,544.32 2,582,843.17 536,836.95 2,046,006.22 Sanitation 300 1,624,957.47 3,708,677.25 3,350,785.00 357,892.25 1,982,849.72 129,863.04 1,852,986.68 Solid Waste 320 7,306,844.63 4,380,568.08 5,176,249.68 -795,681.60 6,511,163.03 173,015.17 6,338,147.86 Golf 340 70,310.43 1,021,369.81 1,054,123.20 -32,753.39 37,557.04 0 37,557.04 Water/Wastewater 370 25,640,615.74 22,774,896.09 23,256,476.76 -481,580.67 25,159,035.07 2,718,196.14 22,440,838.93 Debt Service 500 1,481,543.37 7,320,584.93 7,123,966.17 196,618.76 1,678,162.13 0 1,678,162.13 Water/Wastewater Debt Service 510 655,428.71 0 0 0.00 655,428.71 0 655,428.71 Water/Wastewater capital Reserve 735 10,809,161.53 250,000.00 127,834.74 122,165.26 10,931,326.79 260,013.73 10,671,313.06 Solid Waste Capital Reserve 750 1,381,213.08 0 0 0.00 1,381,213.08 0 1,381,213.08 Total 85,344,871.88 107,203,283.62 104,325,241.75 2,878,041.87 88,222,913.75 4,136,708.01 84,086,205.74 CONTINUING DISCLOSURE UNDERTAKING CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 This CONTINUING DISCLOSURE UNDERTAKING dated as of July 2, 2024 (the "Continuing Disclosure Undertaking"), is executed and delivered by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance of the above-described bonds (the "Obligations") which are being issued simultaneously herewith as of July 2, 2024, pursuant to the Bond Resolution (the "Resolution") adopted by the governing body of the Issuer. 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Obligations and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"). The Issuer is the only "obligated person" with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's Comprehensive Financial Report, so long as the Comprehensive Financial Report contains the financial information and operating data described in Section 2(a)(l) and (2). "Beneficial Owner" means any registered owner of any Obligations and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Obligations (including persons holding Obligations through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Obligations for federal income tax purposes. "Business Day" means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or ( c) a day on which the Securities Depository or the New York Stock Exchange is closed. "Comprehensive Financial Report" means the Issuer's Comprehensive Annual Financial Report, if any. 600596.20255\DISCLOSURE UNDERTAKING "Dissemination Agent" means any entity designated in wntmg by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. "EMMA" means the Electronic Municipal Market Access system for municipal secunttes disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. "Financial Obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. "Material Events" means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. "MSRB" means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Obligations required to comply with the Rule in connection with the offering of the Obligations. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than 180 days after the end of the Issuer's Fiscal Year, commencing with the Fiscal Year ending December 31, 2024, file with the MSRB, through EMMA, the following financial information and operating data (the "Annual Report"): (1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared on a modified accrual basis of accounting other than GAAP. A more detailed explanation of the accounting basis is contained in the Official Statement related to the Obligations. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the fmal Official Statement relating to the Obligations, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available. (2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Obligations, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer. 600596.20255\DISCLOSURE UNDERTAKING 2 Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become 180 days after the end of the Issuer's new Fiscal Year. (b) [Reserved] ( c) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Obligations ("Material Events"): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; ( 4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; ( 10) release, substitution or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (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 600596.20255\DISCLOSURE UNDERTAKING 3 covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Except as provided in Section 2(b) hereof, if the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer's obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Obligations. If the Issuer's obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final maturity of the Obligations, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist 1t m carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. 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 600596.20255\DISCLOSURE UNDERTAKING 4 dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Obligations may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the-Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Resolution or the Obligations, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance. Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Obligations, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Resolution or the Obligations shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas. [Remainder of Page Intentionally Left Blank.] 600596.20255\DISCLOSURE UNDERTAKING 5 IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as oft nd year first above written. CITY OF SALINA, KANSAS (SEAL) Mayor 600596.20255\DISCLOSURE UNDERTAKING S-1 EXHIBIT A TO CONTINUING DISCLOSURE UNDERTAKING FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT The financial information and operating data contained in the following sections and tables contained in Appendix A of the final Official Statement (with such modifications to the formatting and general presentation thereof as deemed appropriate by the Issuer) relating to the Obligations: • Financial Overview of the City • FINANCIAL INFORMATION CONCERNING THE CITY -Assessed Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Estimated Actual Valuation • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Collections • FINANCIAL INFORMATION CONCERNING THE CITY -Tax Levies • FINANCIAL INFORMATION CONCERNING THE CITY -Largest Taxpayers 600596.20255\DISCLOSURE UNDERTAKING EXCERPT OF MINUTES OF A MEETING OF THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS HELD ON JUNE 10, 2024 Gilmore & Bell, P.C. 06/10/2024 The City Commission (the "Governing Body") met in regular session at the usual meeting place in the City, at 4:00 P.M., the following members being present and participating, to-wit: Mayor BILL LONGBINE, Commissioners MIKE HOPPOCK, GREG LENKIEWICZ, JERRY IVEY and TRENT W. DAVIS, M.D. Absent: None The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) The Finance Director reported that pursuant to the Notice of Bond Sale heretofore duly given, bids for the purchase of General Obligation Internal Improvement Bonds, Series 2024-A, dated July 2, 2024, of the City had been received. A tabulation of said bids is set forth as EXHIBIT A hereto. The Finance Director reported that staff determined that the bid of UBS FINANCIAL SERVICES INC., was the best bid for the Bonds, a copy of which is attached hereto as EXHIBIT B. There was presented an Ordinance entitled: AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. Commissioner TRENT W. DAVIS, M.D. moved that the Ordinance be passed. The motion was seconded by Commissioner MIKE HOPPOCK. The Ordinance was duly read and considered, and upon being put, the motion for the passage of the Ordinance was carried by the following vote of the Governing Body: Yea: BILL LONGBINE, MIKE HOPPOCK, GREG LENKIEWICZ, JERRY IVEY and TRENTW. DAVIS, M.D. Nay: NONE. The Mayor declared the Ordinance duly passed and the Ordinance was then duly numbered Ordinance No. 24-11210, was signed and approved by the Mayor and attested by the Clerk and the Ordinance or a summary thereof was directed to be published one time in the official newspaper of the City. 600596.20255\BASICDOCS There was presented a Resolution entitled: A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 24-11210 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. Commissioner TRENT W. DAVIS, M.D. moved that: (a) the Mayor be authorized to execute the bid form selling the Bonds to the best bidder on the basis of the terms specified in the Notice of Bond Sale and (b) that the Resolution be adopted. The motion was seconded by Commissioner MIKE HOPPOCK. The Resolution was duly read and considered, and upon being put, the motion for the adoption of the Resolution was carried by the vote of the Governing Body as follows: Yea: BILL LONGBINE, MIKE HOPPOCK, GREG LENKIEWICZ, JERRY IVEY and TRENTW. DAVIS, M.D. Nay: NONE. The Mayor declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 24-8217 and was signed by the Mayor and attested by the Clerk. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS 2 On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the Governing Body of the City of Salina, Kansas, held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) ~ 600596 .20255\BASICDOCS (Signature Page to Excerpt of Minutes) EXHIBIT A BID TABULATION CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Dated: July 2, 2024 Series 2024-A Good Faith Deposit: $236,700 Sale Date: June 10, 2024 11 :00 A.M., Central Time Max Interest Rate: 7 .51 % 600596.20255\BASICDOCS BIDDERS Salina General Obligation Internal Improvement Bonds, Series 2024-A T-Bidder Name f TIC ---UBS Financial Services Inc. Loop Ca pital Markets, LLC Robert W. Baird & Co., Inc. ~ 3.591260 ~--~3._595940J j3.634461 Raymond James & Associates, Inc. 13.659460 lHilltopSecurities j3.678784 t'fD Securities - Commerce Bank iMesirow Financial. Inc. BOK Financial Securities, Inc. KeyBanc Capital Markets A-1 I -j3.708066 j3.72381 ~ )3.755356 13.7786091 -·rs:na?64 EXHIBITB (BID OF PURCHASER) UBS Financial Services Inc. • N-York , NY"s Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggr-egate principal amount of $10,825,000.00, we wil pay you S11 ,422,601.05, plus accrued interest from lhe date of issue to the date of delivery. lhe Bonds are to bear inteiest at the folowino rate(s), ~aturlty Dato Amounts Coupon% Yiold o/a Dollar Prico)Bono Insurance 10/01/2025 625M 5.0000 3.4300 101.895 10/01/2026 785M 5.0000 3.3500 103.538 10/01/2027 830M 5.0000 3.3000 105.189 10/01/2028 875M 5.0000 3.3000 106.680 10/0112029 910M 5.0000 3.3300, 107.974 10/01/2030 960M 5.0000 3.3500 109.226 10/01/2031 1,000M 5.oooo 3.3500 110.534 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 4.0000 3.4000 104.279 10/0112034 1.165M 4.0000 3.5000·• 103.550 10!01/2035 120M 4.0000 3.5000 103:550 10/01/2036 125M C.0000 3.5500 103.188 10/01/2037 13m.l 4 .0000 3.6500 102468 10/01/2038 140M 4 .0000 3.7000 102.111 10/01/2039 14SM 4 0000 3,6000 101,399 10J01/2040 155M 4.0000 3.9000 100.694 l~Jimtl l~ll.&!? 325M 4 ,0000 4.0500 99.354 ... ~-,J,CW"\ lDli.111~ 365M 4.0000 4.1500'. 97.953 Total lntel'esl Cosl.: 53,'D'K>,«l'I .03 Premium: $597,601 .05 Net lntemstCost: $3,048,612.98 TIC: 3.591260 Total lnaranc:e Premklm: $0.00 Ttme Last Bid Received On:06/10/2024 10:59:58 COST This proposal is made subject to al of the terms and conditions oflhe Official Bid Form, the Official Notice of Sale, and the PntlffW'laryOfficial Statement. al ofwhid> are made a part i-eot. Bidder: UBS Fnancial Sarvices Inc., New YOik , NY S..,e attoched ochedule for final pricing information Contact: \llnc:ent Pielanza T<tle: Telephone:212-713-9163 Fax: Issuer Name: City of Salina Accepted By: Date: 600596.20255\BASICDOCS Company Name: UBS Financial Services Inc. Accepted By: Date: 6/1012024 B-1 801\'D PR/Clr.G City o! S:&lma. Kamas c...,.,.,al Obhptio11 lz1tOlllll lmpronmf.llr Bonds. Smu ~0:'.4-A Motarity \"i~ld to Call Bond Compon•nt Dote Amount R:ite \"itld Pric~ l'lbtari~· D:ttt Snl&:lld: 10,on02s 645.000 5 000'!0 H3~• !Ol.895 10·01,:?026 800,000 s.o~. 3.350!• 103538 IO·Ol·'.!0:?7 84S.OOO 5 000'!0 HOO!• lOS.119 10'01'2028 880.000 5.0~. 3.300~, 106.680 IO'OH019 915,000 5.000'!• 3.330!• 107.974 10'01'.1030 910.000 s.ow.. 3.350!• 109.:?16 10'012031 1,0Z0,000 5.000". 3.3SO!• 110.S,4 10·01-'203! 1.070.0.."'IO S.000'!, ;_3so~, 111.799 l0;01'2033 1.130,000 4.000'!• :..400'0 104.279 C' 3.455'• 10 01-~on IO 'OF:?034 l.170.000 4Jl00!, 3.500!♦ 103.550 C 3 .583•• 10·01·:?032 10'01 ·:!0JS 12S.OOO 4,000', ;.soo-. 103.550 C 3.613'• I0:01.'2032 10!01'2036 130.000 4,000,; 3.SSO!o 103.188 C' 3.674!, 10·01.-Wl:? 10:01,•:!037 135.000 4.000!, M~O!• 102.46SC 3.76m 10 Ol ·2032 I0.01"2038 140.000 4.000'!, 3.700', 102.111 C 3.SO~, 1001'2032 100112039 150,000 4.000,, 3.800', 101.3911 C ,.sn,. 10'01::?03:: I0.'0112040 ISSOOO 4Jl00'. 3.900,0 100.694 C 3.941'• J0:'012032 10,:!90.000 TermBood: IO·OV!Ml 160.000 4.000!, 4.050!• 99.3S4 10 01'20-11 165.000 4 000', 4.050!, 99.354 :ns,ooo TermBa:id· 10:0l··WH 115,000 4.000'!. 4.IW.io 97,953 l0:01·2~ 180.000 4.000!i 4.JSO!• 97.!lS3 355,000 10,970,000 Dated Da12 01.·02 :'2024 DeliniyDam 07(01•'20:!.4 FmtC~ 04·01,202s Piu-Amolmt 10,970,000.00 Premium <138,670.25 Prodaaion l l,608,670.25 IOS.811911!, 1.l'ndenmtu's DiSCGUI (32.300.44) (0,294443t,) Pmd1ase Price t 1.576,369.81 10S.S?7528'• Accrued tnmest Net Proceeds ll,576.369.81 600596.20255\BASICDOCS B-2 Call Prit~ 100.000 100.000 100000 100.000 100,000 100.000 100.000 100.000 Prtmiam (-Dht'ouat} 12 .. :?22 75 28.304.00 4;_847.0S SS,784.00 13.159 SO 89.491.10 107,446S0 126.2-i9.30 48.lS:?.70 41535.00 4,437.50 4.14440 3,>31.80 2,95SAO 2.093.SO 1.075.70 64S.036.60 (1.033.60) 0.065.90) (2,099.50) {3.5812S) 3.684.60) (7.266.SS) 638,670.25 ORDINANCE NO. 24-11210 OF THE CITY OF SALINA, KANSAS PASSED JUNE 10, 2024 Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A 600596.20255\BASICDOCS ORDINANCE NO. 24-11210 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. WHEREAS, the City of Salina, Kansas (the "City") is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to the Constitution and laws of the State of Kansas applicable thereto, by proceedings duly had, the City Commission of the City (the "Governing Body") has authorized the following improvements (the "Improvements") to be made in the City, to-wit: Project Description Lakeview Estates No. 2 Phase 1, Magnolia Hills Estates No. 2 Phase 2 Wheatland Valley Fire Apparatus Res.No. 22-8028 22-8044 21-7964 23-8169 Authoritv (K.S.A.) 12-6a01 et seq. 12-6a01 et seq. 12-6a01 et seq. 12-1 lOc Amount $932,926.25 779,251.25 1,411,868.06 10,000,000.00 WHEREAS, the Governing Body is authorized by law to issue general obligation bonds of the City to pay the costs of the Improvements; and WHEREAS, the City heretofore issued and has outstanding its General Obligation Internal Improvement Bonds, Series 2016-A (the "Series 2016-A Bonds") and pursuant to KS.A. 10-427 et seq., the Issuer is authorized and empowered to refund any bonds, any interest on such bonds or both bonds and the interest thereon of the Issuer and may issue refunding bonds of the Issuer therefor; and WHEREAS, and in order to restructure the debt payments on the Series 2016-ABonds and provide an orderly plan of finance for the Issuer, it has become desirable and in the best interests of the Issuer and its inhabitants to refund all or a portion of the interest coming due on October 1, 2024, for the Series 2016- A Bonds (the "Interest Payment"); and WHEREAS, the Governing Body has advertised the sale of the Bonds in accordance with the law and at a meeting held in the City on this date awarded the sale of such Bonds to the best bidder; and WHEREAS, the City proposes to issue $10,970,000 of its general obligation bonds, together with premium thereon, to pay a portion of the costs of the Improvements, pay costs of issuance, and refund the Interest Payment. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the 600596.20255\BASICDOCS 1 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, K.S.A. 10-620 et seq., K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-ll0c, all as amended and supplemented from time to time. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. "Bond Resolution" means the resolution to be adopted by the Governing Body prescribing the terms and details of the Bonds and making covenants with respect thereto. "Bonds" means the City's General Obligation Internal Improvement Bonds, Series 2024-A, dated July 2, 2024, authorized by this Ordinance. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy, Assistant or Acting Clerk. "Finance Director" means the duly appointed and acting Finance Director of the City or, in the Finance Director's absence, the duly appointed Deputy, Assistant or Acting Finance Director of the City. "Governing Body" means the City Commission of the City. "Interest Payment" means the portion of the interest coming due on October 1, 2024, for the Series 2016-A Bonds in the amount of $5,000. "Mayor" means the duly elected and acting Mayor of the City or, in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds. "State" means the State of Kansas. "Substitute Improvements" means the substitute or additional improvements of the City authorized in the manner set forth in the Bond Resolution. Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series 2024-A, of the City in the principal amount of $10,970,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) pay costs of issuance of the Bonds; and ( c) refund the Interest Payment. Section 3. Security for the Bonds. The Bonds shall be general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of 600596.20255\BASICDOCS 2 the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 4. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest, shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment prior to the maturity thereof, and shall be issued and delivered in the manner prescribed and subject to the provisions, covenants and agreements set forth in the Bond Resolution hereafter adopted by the Governing Body. Section 5. Levy and Collection of Annual Tax. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the City in the manner provided by law. The taxes and/or assessments above referred to shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied and collected, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the paying agent for the Bonds. The proceeds derived from said taxes and/or assessments shall be deposited in the Bond and Interest Fund. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the City Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes and/or assessments are collected. Section 6. Further Authority. The Mayor, Finance Director, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance and the Bonds shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the Governing Body and publication of the Ordinance or a summary thereof in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS 3 ·. PASSED b , • e dityJ:o#un#sion on June 10, 2024 and SIGNED by the Mayor. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS (Signature Page to Bond Ordinance) CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original ordinance; that said Ordinance was passed on June 10, 2024; that the record of the final vote on its passage is found~ page ir, __ ef journal 9.3 ; and that the Ordinance or a summary thereof was published in the Official Newspaper of the City on June"'hi, 2024. \ I DATED: June~ 2024. 12. Clerk [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS (Signature Page to Bond Ordinance Certificate) AFFIDAVIT STATE OF KANSAS ) ) ss: COUNTY OF SALINE ) The undersigned, duly appointed City Clerk for the City of Salina, Kansas (the "City") pursuant to the laws of the state Kansas and the ordinances, resolutions and Code of the City, being of lawful age, first being duly sworn, on oath states: 1. On June 11, 2024, the attached Ordinance was posted by the undersigned or designee on the City's official website (www.sali.na-ks.0 ov , which website has been designated as the official newspaper of the City. * 'tti\~~-ili0ioftimg instrument was subscribed and sworn to or affirmed before me on this R._ day of .]"( 1 M 8 , 2024, by Nikki Goding, City Clerk, City of Salina, Kansas. ~di1 Q, I.Dull tA Notary Public ORDINANCE NO. 24-11210 OF THE CITY OF SALINA, KANSAS PASSED JUNE 10, 2024 Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A 600596.20255\BASICDOCS ORDINANCE NO. 24-11210 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. WHEREAS, the City of Salina, Kansas (the "City") is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to the Constitution and laws of the State of Kansas applicable thereto, by proceedings duly had, the City Commission of the City (the "Governing Body") has authorized the following improvements (the "Improvements") to be made in the City, to-wit: Proiect Description Lakeview Estates No. 2 Phase 1, Magnolia Hills Estates No. 2 Phase 2 Wheatland Valley Fire Apparatus Res. No. 22-8028 22-8044 21-7964 23-8169 Authority (K.S.A.) 12-6a01 et seq. 12-6a01 et seq. 12-6a01 et seq. 12-llOc Amount $932,926.25 779,251.25 1,411,868.06 10,000,000.00 WHEREAS, the Governing Body is authorized by law to issue general obligation bonds of the City to pay the costs of the Improvements; and WHEREAS, the City heretofore issued and has outstanding its General Obligation Internal Improvement Bonds, Series 2016-A (the "Series 2016-A Bonds") and pursuant to K.S.A. 10-427 et seq., the Issuer is authorized and empowered to refund any bonds, any interest on such bonds or both bonds and the interest thereon of the Issuer and may issue refunding bonds of the Issuer therefor; and WHEREAS, and in order to restructure the debt payments on the Series 2016-A Bonds and provide an orderly plan of finance for the Issuer, it has become desirable and in the best interests of the Issuer and its inhabitants to refund all or a portion of the interest coming due on October 1, 2024, for the Series 2016- A Bonds (the "Interest Payment"); and WHEREAS, the Governing Body has advertised the sale of the Bonds in accordance with the law and at a meeting held in the City on this date awarded the sale of such Bonds to the best bidder; and WHEREAS, the City proposes to issue $10,970,000 of its general obligation bonds, together with premium thereon, to pay a portion of the costs of the Improvements, pay costs of issuance, and refund the Interest Payment. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the 600596.20255\BASICDOCS 1 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, K.S.A. 10-620 et seq., K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-llOc, all as amended and supplemented from time to time. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. ''Bond Resolution" means the resolution to be adopted by the Governing Body prescribing the terms and details of the Bonds and making covenants with respect thereto. "Bonds" means the City's General Obligation Internal Improvement Bonds, Series 2024-A, dated July 2, 2024, authorized by this Ordinance. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy, Assistant or Acting Clerk. "Finance Director" means the duly appointed and acting Finance Director of the City or, in the Finance Director's absence, the duly appointed Deputy, Assistant or Acting Finance Director of the City. "Governing Body" means the City Commission of the City. "Interest Payment" means the portion of the interest coming due on October 1, 2024, for the Series 2016-A Bonds in the amount of $5,000. "Mayor" means the duly elected and acting Mayor of the City or, in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds. "State" means the State of Kansas. "Substitute Improvements" means the substitute or additional improvements of the City authorized in the manner set forth in the Bond Resolution. Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series 2024-A, of the City in the principal amount of $10,970,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) pay costs of issuance of the Bonds; and ( c) refund the Interest Payment. Section 3. Security for the Bonds. The Bonds shall be general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of 600596.20255\BASICDOCS 2 the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 4. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest, shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment prior to the maturity thereof, and shall be issued and delivered in the manner prescribed and subject to the provisions, covenants and agreements set forth in the Bond Resolution hereafter adopted by the Governing Body. Section 5. Levy and Col1ection of Annual Tax. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the City in the manner provided by law. The taxes and/or assessments above referred to shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied and collected, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the paying agent for the Bonds. The proceeds derived from said taxes and/or assessments shall be deposited in the Bond and Interest Fund. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the City Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes and/or assessments are collected. Section 6. Further Authority. The Mayor, Finance Director, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance and the Bonds shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the Governing Body and publication of the Ordinance or a summary thereof in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS 3 (SEAL) ATTEST: [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS (Signature Page to Bond Ordinance) CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original ordinance; that said Ordinance was passed on June 10, 2024; that the record of the final vote on its passage is found OH pttge ir, __ Qf jouma] .9...3_; and that the Ordinance or a summary thereof was published in the Official Newspaper of the City on June f'5' 2024. ll DATED: June ~. 2024. ,,._ Clerk [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS (Signature Page to Bond Ordinance Certificate) RESOLUTION NO. 24-8217 OF THE CITY OF SALINA, KANSAS ADOPTED JUNE 10, 2024 Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A 600596.20255\BASICDOCS Section 101. Section 201. Section 202. Section 203. Section 204. Section 205. Section 206. Section 207. Section 208. Section 209. Section 210. Section 211. Section 212. Section 213. Section 301. Section 302. Section 303. Section 401. Section 402. Section 501 . Section 502. Section 503. Section 504. TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 1 ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Authorization of the Bonds ........................................................................................... 8 Description of the Bonds ............................................................................................... 8 Designation of Paying Agent and Bond Registrar ......................................................... 9 Method and Place of Payment of the Bonds .................................................................. 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 Redemption by Issuer .................................................................................................. 14 Selection of Bonds to be Redeemed ............................................................................ 16 Notice and Effect of Call for Redemption ................................................................... 16 ARTICLE IV SECURITY FOR BONDS Security for the Bonds ................................................................................................. 18 Levy and Collection of Annual Tax; Transfer to Debt Service Account. ................... 18 ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Creation of Funds and Accounts ................................................................................. 19 Deposit of Bond Proceeds ........................................................................................... 19 Application of Moneys in the Improvement Fund ...................................................... 19 Substitution of Improvements; Reallocation of Proceeds ........................................... 20 600596.20255\BASICDOCS Section 505. Section 506. Section 507. Section 508. Section 509. Section 601. Section 602. Section 603. Section 701. Section 801. Section 802. Section 901. Section 902. Section 1001. Section 1002. Section 1003. Section 1004. Section 1005. Section 1006. Section 1007. Section 1008. Section 1009. Application of Moneys in the Redemption Fund ........................................................ 20 Application of Moneys in Debt Service Account... ..................................................... 20 Application of Moneys in the Rebate Fund ................................................................. 20 Deposits and Investment of Moneys ........................................................................... 21 Application of Moneys in the Costs of Issuance Account... ........................................ 21 ARTICLE VI DEFAULT AND REMEDIES Remedies ..................................................................................................................... 21 Limitation on Rights of Owners .................................................................................. 22 Remedies Cumulative .................................................................................................. 22 ARTICLE VII DEFEASANCE Defeasance ................................................................................................................... 22 ARTICLE VIII TAX COVENANTS General Covenants ...................................................................................................... 23 Survival of Covenants ................................................................................................. 23 ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements ............................................................................................. 23 Failure to Comply with Continuing Disclosure Requirements ................................... 23 ARTICLEX MISCELLANEOUS PROVISIONS Annual Audit. .............................................................................................................. 24 Amendments ................................................................................................................ 24 Notices, Consents and Other Instruments by Owners ................................................. 25 Notices ......................................................................................................................... 26 Electronic Transactions ............................................................................................... 26 Further Authority ......................................................................................................... 26 Severability .................................................................................................................. 26 Governing Law ............................................................................................................ 26 Effective Date .............................................................................................................. 26 EXHIBIT A -FORM OF BONDS ......................................................................................................... A-1 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS ii RESOLUTION NO. 24-8217 A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A, OF THE CITY OF SALINA, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 24-11210 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. WHEREAS, the City of Salina, Kansas (the "Issuer") has heretofore passed the Ordinance authorizing the issuance of the Bonds; and WHEREAS, the Ordinance authorized the City Commission of the Issuer (the "Governing Body") to adopt a resolution prescribing certain details and conditions and to make certain covenants with respect to the issuance of the Bonds; and WHEREAS, the Governing Body hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Bonds in the principal amount of $10,970,000 to pay a portion of the costs of the Improvements, pay costs of issuance and refund the Interest Payment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Bond Resolution shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include 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, K.S.A. 10-427 et seq., K.S.A. 10-620 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-ll0c, all as amended and supplemented from time to time. "Authorized Denomination" means $5,000 or any integral multiples thereof. "Beneficial Owner" of the Bonds includes any Owner of the Bonds and any other Person who, directly or indirectly has the investment power with respect to such Bonds. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds. 600596.20255\BASICDOCS 1 "Bond Counsel" means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. "Bond Payment Date" means any date on which principal of or interest on any Bond is payable. "Bond Register" means the books for the registration, transfer and exchange of Bonds kept at the office of the Bond Registrar. "Bond Registrar" means the State Treasurer and any successors and assigns. "Bond Resolution" means this resolution relating to the Bonds. "Bonds" or "Bond" means the General Obligation Internal Improvement Bonds, Series 2024-A, authorized and issued by the Issuer pursuant to the Ordinance and this Bond Resolution. "Business Day" means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. "Cede & Co." means Cede & Co., as nominee of DTC and any successor nominee of DTC. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and/or elected Clerk or, in the Clerk's absence, the duly appointed Deputy Clerk or Acting Clerk of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder by the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Bonds, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses incurred in obtaining municipal bond insurance on the Bonds. "Costs of Issuance Account" means the Costs of Issuance Account for General Obligation Internal Improvement Bonds, Series 2024-A created pursuant to Section 501 hereof. "Dated Date" means July 2, 2024. "Debt Service Account" means the Debt Service Account for General Obligation Internal Improvement Bonds, Series 2024-A created within the Bond and Interest Fund pursuant to Section 501 hereof. "Debt Service Requirements" means the aggregate principal payments (whether at maturity or pursuant to scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise 600596.20255\BASICDOCS 2 set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers. "Defaulted Interest" means interest on any Bond which is payable but not paid on any Interest Payment Date. ''Defeasance Obligations" means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the rating category then assigned by that Rating Agency to United States Government Obligations. "Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. "Disclosure Undertaking" means the Continuing Disclosure Undertaking, dated as of the Dated Date, relating to certain obligations contained in the SEC Rule. ''DTC" means The Depository Trust Company, a limited-purpose trust company organized under the laws of the State of New York, and its successors and assigns, including any successor securities depository duly appointed. ''DTC Representation Letter'' means the Blanket Letter of Representation from the Issuer and the Paying Agent to DTC which provides for a book-entry system, or any agreement between the Issuer and Paying Agent and a successor securities depository duly appointed. 600596.20255\BASICDOCS 3 "Event of Default" means each of the following occurrences or events: ( a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise; (b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due; or ( c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Bond Resolution ( other than the covenants relating to continuing disclosure requirements contained herein and in the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then Outstanding. "Federal Tax Certificate" means the Issuer's Federal Tax Certificate, dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. "Finance Director" means the duly appointed and acting Finance Director of the Issuer or, in the Finance Director's absence, the duly appointed Deputy, Assistant or Acting Finance Director of the Issuer. "Financeable Costs" means the amount of expenditure for an Improvement which has been duly authorized by action of the Governing Body to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. "Fiscal Year" means the twelve month period ending on December 31. "Funds and Accounts" means funds and accounts created pursuant to or referred to in Section 501 hereof. "Governing Body" means the City Commission of the Issuer. "Improvement Fund" means the Improvement Fund for General Obligation Internal Improvement Bonds, Series 2024-A created pursuant to Section 501 hereof. "Improvements" means the improvements referred to in the preamble to the Ordinance and any Substitute Improvements. "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by this Bond Resolution. "Interest Payment" means the portion of the interest coming due on October 1, 2024, for the Series 2016-A Bonds in the amount of $5,000. "Interest Payment Date(s)" means the Stated Maturity of an installment of interest on any Bond which shall be April 1 and October 1 of each year, commencing April 1, 2025. 600596 .20255\BASICDOCS 4 "Issue Date" means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the Purchase Price. "Issuer" means the City and any successors or assigns. "Maturity" when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Mayor'' means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "Notice Address" means with respect to the following entities: (a) To the Issuer at: City-County Building 300 West Ash Street Salina, Kansas 67402 Fax: (785) 309-5711 (b) To the Paying Agent at: State Treasurer of the State of Kansas Landon Office Building 900 Southwest Jackson, Suite 201 Topeka,Kansas 66612-1235 Fax: (785) 296-6976 ( c) To the Purchaser: UBS Financial Services 1285 Avenue of the Americas, 11th Floor New York, New York 10019f Telephone: (212) 713-9163 (d) To the Rating Agency(ies): Moody's Municipal Rating Desk 7 World Trade Center 250 Greenwich Street, 23rd Floor New York, New York 10007 S&P Global Ratings, a division of S&P Global Inc. 55 Water Street, 38th Floor New York, New York 10004 or such other address as is furnished in writing to the other parties referenced herein. 600596.20255\BASICDOCS 5 "Notice Representative" means: (a) With respect to the Issuer, the Clerk. (b) With respect to the Bond Registrar and Paying Agent, the Director of Fiscal Services. (c) With respect to any Purchaser, the manager of its Municipal Bond Department. (d) With respect to any Rating Agency, any Vice President thereof. "Official Statement" means Issuer's Official Statement relating to the Bonds. "Ordinance" means Ordinance No. 24-11210 of the Issuer authorizing the issuance of the Bonds, as amended from time to time. "Outstanding" means, when used with reference to the Bonds, as of a particular date of determination, all Bonds theretofore authenticated and delivered, except the following Bonds: (a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation; (b) Bonds deemed to be paid in accordance with the provisions of Article VII hereof; and ( c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered hereunder. "Owner" when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register. Whenever consent of the Owners is required pursuant to the terms of this Bond Resolution, and the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Bonds. ''Participants" means those financial institutions for whom the Securities Depository effects book- entry transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at the time of such reference. ''Paying Agent" means the State Treasurer and any successors and assigns. "Permitted Investments" shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in ( c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in ( c) or (f); (i) receipts evidencing 600596.20255\BASICDOCS 6 ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the municipality issuing the same; or (1) bonds of any municipality of the State as defined in 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 plus accrued interest to the date of delivery, plus a premium of $606,369.81. "Purchaser" means UBS Financial Services Inc., New York, New York, the original purchaser of the Bonds, and any successor and assigns. "Rating Agency" means any company, agency or entity that provides, pursuant to request of the Issuer, financial ratings for the Bonds. "Rebate Fund" means the Rebate Fund for General Obligation Internal Improvement Bonds, Series 2024-A created pursuant to Section 501 hereof. "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. "Redemption Date" means, when used with respect to any Bond to be redeemed, the date fixed for the redemption of such Bond pursuant to the terms of this Bond Resolution. "Redemption Price" means, when used with respect to any Bond to be redeemed, the price at which such Bond is to be redeemed pursuant to the terms of this Bond Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. "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, OTC, and its successors and assigns. "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 perlorm 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. 600596.20255\BASICDOCS 7 "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. "2042 Term Bonds" means the Bonds scheduled to mature in the year 2042. "2044 Term Bonds" means the Bonds scheduled to mature in the year 2044. "Term Bonds" means collectively the 2042 Term Bonds and the 2044 Term Bonds. "Treasurer" means the duly appointed and/or elected Treasurer of the Issuer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Section 201. Authorization of the Bonds. The Bonds have been heretofore authorized and directed to be issued pursuant to the Ordinance in the principal amount of $10,970,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) pay Costs of Issuance and (c) refund the Interest Payment. 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: 600596.20255\BASICDOCS 8 Stated Maturity October 1 2025 2026 2027 2028 2029 2030 2031 2032 SERIAL BONDS Principal Annual Rate Stated Maturity Principal Amount of Interest October 1 Amount $645,000 5.00% 2033 $1,130,000 800,000 5.00% 2034 1,170,000 845,000 5.00% 2035 125,000 880,000 5.00% 2036 130,000 925,000 5.00% 2037 135,000 970,000 5.00% 2038 140,000 1,020,000 5.00% 2039 150,000 1,070,000 5.00% 2040 155,000 TERMBONDS Stated Maturity October 1 2042 2044 Principal Amount $325,000 355,000 Annual Rate of Interest 4.00% 4.00% Annual Rate of Interest 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% The Bonds shall bear interest at the above specified rates ( computed on the basis of a 3 60-day year of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner set forth in Section 204 hereof. Each of the Bonds, as originally issued or issued upon transfer, exchange or substitution, shall be printed in accordance with the format required by the Attorney General of the State and shall be substantially in the form attached hereto as EXHIBIT A or as may be required by the Attorney General pursuant to the Notice of Systems of Registration for Kansas Municipal Bonds, 2 Kan. Reg. 921 (1983), in accordance with the Kansas Bond Registration Law, 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 Mayor of the Issuer is hereby authorized and empowered to execute on behalf of the Issuer an agreement with the Bond Registrar and Paying Agent for the Bonds. The Issuer will at all times maintain a Paying Agent and Bond Registrar meeting the qualifications herein described for the performance of the duties hereunder. The Issuer reserves the right to appoint a successor Paying Agent or Bond Registrar by (a) filing with the Paying Agent or Bond Registrar then performing such function a certified copy of the proceedings giving notice of the termination of such Paying Agent or Bond Registrar and appointing a successor, and (b) causing notice of appointment of the successor Paying Agent and Bond Registrar to be given by first class mail to each Owner. No resignation or removal of the Paying Agent or Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Paying Agent or Bond Registrar. Every Paying Agent or Bond Registrar appointed hereunder shall at all times meet the requirements ofK.S.A. 10-501 et seq. and K.S.A. 10-620 et seq., respectively. Section 204. Method and Place of Payment of the Bonds. The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. 600596.20255\BASICDOCS 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 10 days prior to the date of the proposed payment. The Paying Agent shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefore to be mailed, by first class mail, postage prepaid, to each Owner of a Bond entitled to such notice at the address of such Owner as it appears on the Bond Register not less than 10 days prior to such Special Record Date. The Paying Agent shall keep a record of payment of principal and Redemption Price of and interest on all Bonds and at least annually shall forward a copy or summary of such records to the Issuer. Section 205. Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Section 206. Registration, Transfer and Exchange of Bonds. The Issuer covenants that, as long as any of the Bonds remain Outstanding, it will cause the Bond Register to be kept at the office of the Bond Registrar as herein provided. Each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. 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. 600596.20255\BASICDOCS Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfer and exchange of Bonds provided for by this Bond Resolution and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Code § 3406, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Owner hereunder or under the Bonds. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent pursuant to Article III hereof and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest pursuant to this Article II. The Issuer and the Paying Agent may deem and treat the Person in whose name any Bond is registered on the Bond Register as the absolute Owner of such Bond, whether such Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Bond and for all other purposes. All payments so made to any such Owner or upon the Owner's order shall be valid and effective to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Issuer nor the Paying Agent shall be affected by any notice to the contrary. At reasonable times and under reasonable regulations established by the Bond Registrar, the Bond Register may be inspected and copied by the Owners ( or a designated representative thereof) of 10% or more in principal amount of the Bonds then Outstanding or any designated representative of such Owners whose authority is evidenced to the satisfaction of the Bond Registrar. Section 207. Execution, Registration, Authentication and Delivery of Bonds. Each of the Bonds, including any Bonds issued in exchange or as substitutions for the Bonds initially delivered, shall be executed for and on behalf of the Issuer by the manual, electronic or facsimile signature of the Mayor, attested by the manual, electronic or facsimile signature of the Clerk, and the seal of the Issuer shall be affixed thereto or imprinted thereon. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds in the manner herein specified, and to cause the Bonds to be registered in the office of the Clerk, which registration shall be evidenced by the manual, electronic or facsimile signature of the Clerk with the seal of the Issuer affixed thereto or imprinted thereon. The Bonds shall also be registered in 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 600596.20255\BASICDOCS 11 execution of such Bond are the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds as herein specified, and when duly executed, to deliver the Bonds to the Bond Registrar for authentication. The Bonds shall have endorsed thereon a certificate of authentication substantially in the form attached hereto as EXHIBIT A hereof, which shall be manually executed by an authorized officer or employee of the Bond Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Bonds that may be issued hereunder at any one time. No Bond shall be entitled to any security or benefit under this Bond Resolution or be valid or obligatory for any purpose unless and until such certificate of authentication has been duly executed by the Bond Registrar. Such executed certificate of authentication upon any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Bond Resolution. Upon authentication, the Bond Registrar shall deliver the Bonds to the Purchaser upon instructions of the Issuer or its representative. Section 208. Mutilated, Lost, Stolen or Destroyed Bonds. If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond under this Section, the Issuer and the Paying Agent may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Every new Bond issued pursuant to this Section shall constitute a replacement of the prior obligation of the Issuer, and shall be entitled to all the benefits of this Bond Resolution equally and ratably with all other Outstanding Bonds. Section 209. Cancellation and Destruction of Bonds Upon Payment. All Bonds that have been paid or redeemed or that otherwise have been surrendered to the Paying Agent, either at or before Maturity, shall be cancelled by the Paying Agent immediately upon the payment, redemption and surrender thereof to the Paying Agent and subsequently destroyed in accordance with the customary practices of the Paying Agent. The Paying Agent shall execute a certificate in duplicate describing the Bonds so cancelled and destroyed and shall file an executed counterpart of such certificate with the Issuer. Section 210. Book-Entry Bonds; Securities Depository. The Issuer and Paying Agent have entered into a DTC Representation Letter with DTC. The Bonds shall initially be registered to Cede & Co., 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 600596.20255\BASICDOCS 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 600596.20255\BASICDOCS 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)(l) of the SEC Rule, the Issuer hereby deems the information regarding the Issuer contained in the Preliminary Official Statement to be "final" as of its date, except for the omission of such information as is permitted by Section (b )(1) of the SEC Rule, and the appropriate officers of the Issuer are hereby authorized, if requested, to provide the Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the SEC Rule. The Official Statement is hereby authorized to be prepared by supplementing, amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The Mayor and Finance Director are hereby authorized to execute the Official Statement as so supplemented, amended and completed, and the use and public distribution of the Official Statement by the Purchaser in connection with the reoffering of the Bonds is hereby authorized. The proper officials of the Issuer are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the Issue Date. The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds sufficient copies of the Official Statement to enable the Purchaser to comply with the requirements of the SEC Rule and Rule G-32 of the Municipal Securities Rulemaking Board. Section 213. Sale of the Bonds. The sale of the Bonds to the Purchaser is hereby ratified and confirmed. The Mayor and Finance Director are hereby authorized to execute the official bid form submitted by the Purchaser. Delivery of the Bonds shall be made to the Purchaser on the Issue Date (which shall be as soon as practicable after the adoption of this Bond Resolution), upon payment of the Purchase Price. ARTICLE III REDEMPTION OF BONDS Section 301. Redemption by Issuer. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at 600596.20255\BASICDOCS 14 the Redemption Price of 100% ( expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. Mandatory Redemption. (a) 2042 Term Bonds. The 2042 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements of this Section at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The taxes levied in Article IV hereof which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2042 Term Bonds: *Final Maturity Principal Amount $160,000 165,000 Year 2041 2042* (b) 2044 Term Bonds. The 2044 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements of this Section at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The taxes levied in Article IV hereof which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2044 Term Bonds: *Final Maturity Principal Amount $175,000 180,000 Year 2043 2044* At its option, to be exercised on or before the 45th day next preceding any mandatory Redemption Date, the Issuer may: (1) deliver to the Paying Agent for cancellation Term Bonds subject to mandatory redemption on said mandatory Redemption Date, in any aggregate principal amount desired; or (2) furnish the Paying Agent funds, together with appropriate instructions, for the purpose of purchasing any Term Bonds subject to mandatory redemption on said mandatory Redemption Date from any Owner thereof whereupon the Paying Agent shall expend such funds for such purpose to such extent as may be practical; or (3) receive a credit with respect to the mandatory redemption obligation of the Issuer under this Section for any Term Bonds subject to mandatory redemption on said mandatory Redemption Date which, prior to such date, have been redeemed ( other than through the operation of the mandatory redemption requirements of this subsection) and cancelled by the Paying Agent and not theretofore applied as a credit against any redemption obligation under this subsection. Each Term Bond so delivered or previously purchased or redeemed shall be credited at 100% of the principal amount thereof on the obligation of the Issuer to redeem Term Bonds of the same Stated Maturity on such mandatory Redemption Date, and any excess of such amount shall be credited on future mandatory redemption obligations for Term Bonds of the same Stated Maturity as designated by the Issuer, and the principal amount of Term Bonds to be redeemed by operation of the requirements of this Section shall be accordingly reduced. If the Issuer intends to exercise any option granted by the provisions of clauses (1), (2) or (3) above, the Issuer will, on or before the 45th day next preceding each mandatory Redemption Date, furnish the Paying Agent a written certificate indicating to what extent the provisions of said clauses (1), (2) and (3) are to be complied with, with respect to such mandatory redemption payment. 600596.20255\BASICDOCS 15 Section 302. Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shall determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption a minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination of face value represented by any Bond is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only). Section 303. Notice and Effect of Call for Redemption. In the event the Issuer desires to call the Bonds for redemption prior to maturity, written notice of such intent shall be provided to the Bond Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Bond Registrar shall call Bonds for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Bond Registrar at least 45 days prior to the Redemption Date of written instructions of the Issuer specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Bonds to be called for redemption. The foregoing provisions of this paragraph shall not apply in the case of any mandatory redemption of Term Bonds hereunder, and Term Bonds shall be called by the Paying Agent for redemption pursuant to such mandatory redemption requirements without the necessity of any action by the Issuer and whether or not the Paying Agent holds moneys available and sufficient to effect the required redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the Purchaser. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the Owners of said Bonds. Each of said 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; 600596.20255\BASICDOCS 16 (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and ( e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption. Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. For so long as the Securities Depository is affecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified in this Section to the Securities Depository. It is expected that the Securities Depository shall, in tum, notify its Participants and that the Participants, in tum, will notify or cause to be notified the Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date ( unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with such notice, the Redemption Price of such Bonds shall be paid by the Paying Agent. Installments of interest due on or prior to the Redemption Date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there shall be prepared for the Owner a new Bond or Bonds of the same Stated Maturity in the amount of the unpaid principal as provided herein. All Bonds that have been surrendered for redemption shall be cancelled and destroyed by the Paying Agent as provided herein and shall not be reissued. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. Further notice may be given by the Issuer or the Bond Registrar on behalf of the Issuer as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if official notice thereof is given as above prescribed: (a) Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (1) the CUSIP numbers of all Bonds being redeemed; (2) the date of issue of the Bonds as originally issued; (3) the rate of interest borne by each Bond being redeemed; (4) the maturity date of each Bond being redeemed; and (5) any other descriptive information needed to identify accurately the Bonds being redeemed. (b) Each further notice of redemption shall be sent at least one day before the mailing of notice to Owners by first class, registered or certified mail or overnight delivery, as determined by the Bond Registrar, to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. 600596.20255\BASICDOCS 17 ( c) Each check or other transfer of funds issued for the payment of the Redemption Price of Bonds being redeemed shall bear or have enclosed the CUSIP number of the Bonds being redeemed with the proceeds of such check or other transfer. The Paying Agent is also directed to comply with any mandatory standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. ARTICLE IV SECURITY FOR BONDS Section 401. Security for the Bonds. The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 402. Levy and Collection of Annual Tax; Transfer to Debt Service Account. The Governing Body shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes and/or assessments referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. 600596.20255\BASICDOCS 18 ARTICLEV ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Section 501. Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the Issuer the following Funds and Accounts: (a) Improvement Fund for General Obligation Internal Improvement Bonds, Series 2024-A. (b) Debt Service Account for General Obligation Internal Improvement Bonds, Series 2024-A (within the Bond and Interest Fund). (c) Rebate Fund for General Obligation Internal Improvement Bonds, Series 2024-A. (d) Redemption Fund. (e) Costs of Issuance Account for General Obligation Internal Improvement Bonds, Series 2024-A. The Funds and Accounts established herein shall be administered in accordance with the provisions of this Bond Resolution so long as the Bonds are Outstanding. Section 502. Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds shall be deposited simultaneously with the delivery of the Bonds as follows: (a) An amount necessary to pay the Costs of Issuance shall be deposited in the Costs of Issuance Account. (b) An amount to pay the Interest Payment shall be deposited into the Redemption Fund. (c) The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited in the Improvement Fund. Section 503. Application of Moneys in the Improvement Fund. Moneys in the Improvement Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements, in accordance with the plans and specifications therefor approved by the Governing Body and on file in the office of the Clerk, including any alterations in or amendments to said plans and specifications deemed advisable and approved by the Governing Body; (b) paying interest on the Bonds during construction of the Improvements; (c) paying Costs of Issuance; and (d) transferring any amounts to the Rebate Fund required by this Article V. Withdrawals from the Improvement Fund shall be made only when authorized by the Governing Body. Each authorization for costs of the Improvements shall be supported by a certificate executed by the Finance Director ( or designate) stating that such payment is being made for a purpose within the scope of this Bond Resolution and that the amount of such payment represents only the contract price of the property, equipment, labor, materials or service being paid for or, if such payment is not being made pursuant to an express contract, that such payment is not in excess of the reasonable value thereof. Authorizations for withdrawals for other authorized purposes shall be supported by a certificate executed by the Finance Director ( or designate) stating that such payment is being made for a purpose within the scope of this Bond 600596.20255\BASICDOCS 19 Resolution. Upon completion of the Improvements, any surplus remaining in the Improvement Fund shall be deposited in the Debt Service Account. Section 504. Substitution of Improvements; Reallocation of Proceeds. (a) The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Bonds provided the following conditions are met: (1) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement has been duly authorized by the Governing Body in accordance with the laws of the State; (2) a resolution or ordinance authorizing the use of the proceeds of the Bonds to pay the Financeable Costs of the Substitute Improvement has been duly adopted by the Governing Body pursuant to this Section, (3) the Attorney General of the State has approved the amendment made by such resolution or ordinance to the transcript of proceedings for the Bonds to include the Substitute Improvements; and (4) the use of the proceeds of the Bonds to pay the Financeable Cost of the Substitute Improvement will not adversely affect the tax-exempt status of the Bonds under State or federal law. (b) The Issuer may reallocate expenditure of Bond proceeds among all Improvements financed by the Bonds; provided the following conditions are met: {l) the reallocation is approved by the Governing Body; (2) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the Financeable Costs of the Improvement; and (3) the reallocation will not adversely affect the tax-exempt status of the Bonds under State or federal law. Section 505. Application of Moneys in the Redemption Fund. Moneys in the Redemption Fund shall be transferred to the paying agent for the Series 2016-A Bonds and utilized to pay the Interest Payment. Any moneys remaining in the Redemption Fund not needed for such payment shall be transferred to the Debt Service Account. Section 506. Application of Moneys in Debt Service Account. All amounts paid and credited to the Debt Service Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Bonds as and when the same become due and the usual and customary fees and expenses of the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account sums sufficient to pay both principal or Redemption Price of and interest on the Bonds and the fees and expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Bond Registrar and Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Bonds entitled to payment from such moneys. Any moneys or investments remaining in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and Interest Fund. Section 507. Application of Moneys in the Rebate Fund. (a) There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Federal Tax Certificate. All money at any time deposited in the Rebate Fund shall be held in trust, to the extent required to satisfy the Rebate Amount (as defined in the Federal Tax Certificate), for payment to the United States of America, and neither the Issuer nor the Owner of any Bonds 600596.20255\BASICDOCS 20 shall have any rights in or claim to such money. All amounts deposited into or on deposit in the Rebate Fund shall be governed by this Section and the Federal Tax Certificate. (b) The Issuer shall periodically determine the arbitrage rebate, if any, under Code§ 148(f) in accordance with the Federal Tax Certificate, and the Issuer shall make payments to the United States of America at the times and in the amounts determined under the Federal Tax Certificate. Any moneys remaining in the Rebate Fund after redemption and payment of all of the Bonds and payment and satisfaction of any Rebate Amount, or provision made therefor, shall be deposited into the Bond and Interest Fund. (c) Notwithstanding any other provision of this Bond Resolution, including in particular Article VII hereof, the obligation to pay arbitrage rebate to the United States of America and to comply with all other requirements of this Section and the Federal Tax Certificate shall survive the defeasance or payment in full of the Bonds. Section 508. Deposits and Investment of Moneys. Moneys in each of the Funds and Accounts shall be deposited in accordance with laws of the State, in a bank, savings and loan association or savings bank organized under the laws of the State, any other state or the United States: (a) which has a main or branch office located in the Issuer; or (b) if no such entity has a main or branch office located in the Issuer, with such an entity that has a main or branch office located in the county or counties in which the Issuer is located. All such depositaries shall be members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law. All such deposits shall be invested in Permitted Investments as set forth in this Article or shall be adequately secured as provided by the laws of the State. All moneys held in the Funds and Accounts shall be kept separate and apart from all other funds of the Issuer so that there shall be no commingling with any other funds of the Issuer. Moneys held in any Fund or Account may be invested in accordance with this Bond Resolution and the Federal Tax Certificate in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account; provided that, during the period of construction of the Improvements, earnings on the investment of such funds may, at the discretion of the Issuer, be credited to the Debt Service Account. Section 509. 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: 600596.20255\BASICDOCS 21 (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. 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 600596.20255\BASICDOCS 22 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 Arncle Ill 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 paying and discharging any of the Bonds, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank or trust company in trust for the respective Owners of the Bonds, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All money and Defeasance Obligations deposited with the Paying Agent or such bank or trust company shall be deemed to be deposited in accordance with and subject to all of the provisions of this Bond Resolution. ARTICLE VIII TAX COVENANTS Section 801. General Covenants. The Issuer covenants and agrees that it will comply with: (a) all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds; and (b) all provisions and requirements of the Federal Tax Certificate. The Mayor and Finance Director are hereby authorized and directed to execute the Federal Tax Certificate in a form approved by Bond Counsel, for and on behalf of and as the act and deed of the Issuer. The Issuer will, in addition, adopt such other ordinances or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future laws, regulations, published rulings and judicial decisions, in order to ensure that the interest on the Bonds will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer. Section 802. Survival of Covenants. The covenants contained in this Article and in the Federal Tax Certificate shall remain in full force and effect notwithstanding the defeasance of the Bonds pursuant to Article VII hereof or any other provision of this Bond Resolution until such time as is set forth in the Federal Tax Certificate. ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Section 901. Disclosure Requirements. The Issuer hereby covenants with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking, the provisions of which are incorporated herein by reference. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Section 902. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its covenants contained in the preceding section, the 600596.20255\BASICDOCS 23 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. ARTICLEX MISCELLANEOUS PROVISIONS Section 1001. Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such audit, a copy thereof shall be filed in the office of the Clerk. Such audit shall at all times during the usual business hours be open to the examination and inspection by any taxpayer, any Owner of any of the Bonds, or by anyone acting for or on behalf of such taxpayer or Owner. Upon payment of the reasonable cost of preparing and mailing the same, a copy of any annual audit will, upon request, be sent to any Owner or prospective Owner. As soon as possible after the completion of the annual audit, the Governing Body shall review such audit, and if the audit discloses that proper provision has not been made for all of the requirements of this Bond Resolution, the Issuer shall promptly cure such deficiency. Section 1002. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Bonds or of this Bond Resolution, may be amended or modified at any time in any respect by ordinance or resolution of the Issuer with the written consent of the Owners of not less than a majority in principal amount of the Bonds then Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: ( a) extend the maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Bond; ( c) permit preference or priority of any Bond over any other Bond; or ( d) reduce the percentage in principal amount of Bonds required for the written consent to any modification or alteration of the provisions of this Bond Resolution. Any provision of the Bonds or of this Bond Resolution may, however, be amended or modified by ordinance or resolution duly adopted by the Governing Body at any time in any legal respect with the written consent of the Owners of all of the Bonds at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement this Bond Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity herein, to 600596.20255\BASICDOCS 24 grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to provide for Substitute Improvements, to conform this Bond Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Every amendment or modification of the provisions of the Bonds or of this Bond Resolution, to which the written consent of the Owners is given, as above provided, shall be expressed in a resolution or ordinance adopted by the Governing Body amending or supplementing the provisions of this Bond Resolution and shall be deemed to be a part of this Bond Resolution. A certified copy of every such amendatory or supplemental ordinance or resolution, if any, and a certified copy of this Bond Resolution shall always be kept on file in the office of the Clerk, and shall be made available for inspection by the Owner of any Bond or a prospective purchaser or owner of any Bond authorized by this Bond Resolution, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental ordinance or resolution or of this Bond Resolution will be sent by the Clerk to any such Owner or prospective Owner. Any and all modifications made in the manner hereinabove provided shall not become effective until there has been filed with the Clerk a copy of the ordinance or resolution of the Issuer hereinabove provided for, duly certified, as well as proof of any required consent to such modification by the Owners of the Bonds then Outstanding. It shall not be necessary to note on any of the Outstanding Bonds any reference to such amendment or modification. The Issuer shall furnish to the Paying Agent a copy of any amendment to the Bonds or this Bond Resolution which affects the duties or obligations of the Paying Agent under this Bond Resolution. Section 1003. Notices, Consents and Other Instruments by Owners. Any notice, consent, request, direction, approval or other instrument to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Resolution, and shall be conclusive in favor of the Issuer and the Paying Agent with regard to any action taken, suffered or omitted under any such instrument, namely: (a) The fact and date of the execution by any person of any such instrument may be proved by a certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such instrument acknowledged before such officer the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Bonds, the amount or amounts, numbers and other identification of Bonds, and the date of holding the same shall be proved by the Bond Register. In determining whether the Owners of the requisite principal amount of Bonds Outstanding have given any request, demand, authorization, direction, notice, consent or waiver under this Bond Resolution, Bonds owned by the Issuer shall be disregarded and deemed not to be Outstanding under this Bond Resolution, except that, in determining whether the Owners shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Bonds which the Owners know to be so owned shall be so disregarded. Notwithstanding the foregoing, Bonds so owned which have been pledged in good faith shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Owners the pledgee's right so to act with respect to such Bonds and that the pledgee is not the Issuer. 600596.20255\BASICDOCS 25 Section 1004. Notices. Any notice, request, complaint, demand or other communication required or desired to be given or filed under this Bond Resolution shall be in writing, given to the Notice Representative at the Notice Address and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic 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 1005. Electronic Transactions. The transactions described in this Bond Resolution may be conducted, and documents related to the Bonds may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic fiJes and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 1006. Further Authority. The officers and officials of the Issuer, including the Mayor, Finance Director and Clerk, are hereby authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of this Bond Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 1007. Severability. If any section or other part of this Bond Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Bond Resolution. Section 1008. Governing Law. This Bond Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 1009. Effective Date. This Bond Resolution shall take effect and be in full force from and after its adoption by the Governing Body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS 26 Mayor CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of the Bond Resolution of the Issuer adopted by the Governing Body on June 10, 2024, as the same appears of record in my office. DATED: June 10, 2024. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\BASICDOCS (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 CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2024-A Maturity Date: Dated Date: July 2, 2024 CUSIP: REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to the Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on April 1 and October 1 of each year, commencing April 1, 2025 (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 600596.20255\BASICDOCS 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. Definitio:rts. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "General Obligation Internal Improvement Bonds, Series 2024-A," aggregating the principal amount of $10,970,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the Issuer authorizing the issuance of the Bonds and the Resolution of the Issuer prescribing the form and details of the Bonds (collectively the "Bond Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq., and K.S.A. 12-ll0c, all as amended, and all other provisions of the laws of the State of Kansas applicable thereto. General Obligations. The Bonds constitute general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Redemption Prior to Maturity. The Bonds are subject to redemption prior to maturity as set forth in the Bond Resolution. Book-Entry System. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Bond Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature or with respect to each form of Bonds, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The Issuer and the Bond Registrar will recognize the Securities Depository nominee, while the Registered Owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfer of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfer of principal, 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 600596.20255\BASICDOCS A-2 or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, 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 hereof for the purpose of receiving payment of, or on account of, the principal or redemption price hereof and interest due hereon and for all other purposes. The Bonds are issued in fully registered form in Authorized Denominations. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the Issuer, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signature of its Mayor and attested by the manual, electronic or facsimile signature of its Clerk, and its seal to be affixed hereto or imprinted hereon. CITY OF SALINA, KANSAS (Facsimile Seal) By: ----~<f=a=c=si=nu=·=1e~) _______ _ Mayor ATTEST: By: ----"""<f=a=c=si=nu=·=1e'-L) _______ _ Clerk 600596.20255\BASICDOCS A-3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2024-A, of the City of Salina, Kansas, described in the within-mentioned Bond Resolution. Registration Date: _______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By ____________ _ Registration Number: 0322-085-070224-847 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 600596.20255\BASICDOCS 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 CLERK STATE OF KANSAS ) ) ss. COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of July 2, 2024. WITNESS my hand and official seal. (Facsimile Seal) By: ____ <-f~ac~s=im=ile"'"').___ ______ _ Clerk 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=itn1=·1e=--)'--------- Treasurer of the State of Kansas 600596.20255\BASICDOCS A-5 ORDINANCE NO. 16-10838 OF THE CITY OF SALINA, KANSAS PASSED JULYU,2016 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2016-A ORDINANCE NO. 16-10838 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2016- A, OF THE CITY OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. WHEREAS, the City of Salina, Kansas (the "City") is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq., as amended, and other provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City has authorized the following improvements (the "Improvements") to be made in the City, to-wit: Allocable Proiect Descrintion Ord./Res. No. Authority Princil!al Amount Iron A venue Reconstruction Res. 15-7240 K.S.A. 12-685 et seq. $2,290,699.35 North Ohio Street Res. 15-7183 K.S.A. 12-685 et seq. 1,731,867.47 Fire Headquarters Res. 15-7189 K.S.A. 12-1736 et seq. 2,044,991.70 Centennial Road Res. 16-7325 K.S.A. 12-685 et seq. ~Q2,441.48 Total: $6,570,000.00 WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay a portion of the costs of the Improvements; and WHEREAS, the governing body of the City has advertised the sale of the Bonds in accordance with the law and at a meeting held in the City on this date, awarded the sale of such Bonds to the best bidder. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq., all as amended and supplemented from time to time. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. "Bond Resolution" means the resolution to be adopted by the governing body of the City prescribing the terms and details of the Bonds and making covenants with respect thereto. "Bonds" means the City's General Obligation Internal Improvement Bonds, Series 2016-A, dated July 26, 2016, authorized by this Ordinance. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy or Acting Clerk. "Improvements" means the improvements referred to in the preamble to this Ordinance and any Substitute Improvements. "Mayor" means the duly elected and acting Mayor of the City or, in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds. "Refunded Notes" means the Series 2015-1 Notes maturing on August 1, 2016 in the aggregate principal amount of $5,995,000. "Series 2015-1 Notes" means the City's General Obligation Temporary Notes, Series 2015-1, dated July 29, 2015. "State" means the State of Kansas. "Substitute Improvements" means the substitute or additional improvements of the City authorized in the manner set forth in the Bond Resolution. Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series 2016-A, of the City in the principal amount of $6,570,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) retire the Refunded Notes; and (c) pay costs of issuance of the Bonds. Section 3. Security for the Bonds. The Bonds shall be general obligations of the City payable as to both principal and interest from ad valorem tax.es which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 4. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest, shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment prior to the maturity thereof, and shall be issued and delivered in the manner prescribed and subject to the provisions, covenants and agreements set forth in the Bond Resolution hereafter adopted by the governing body of the City. Section 5. Levy and Collection of Annual Tax. The governing body of the City shall annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the same become due by levying and collecting the necessary taxes upon all of the taxable tangible property within the City in the manner provided by law. 2 The taxes above referred to shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied and collected, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the Paying Agent. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund. 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 City and to reimburse said general funds for money so expended when said taxes are collected. Section 6. Further Authority. The Mayor, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confmned which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance and the Bonds shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the governing body of the City, approval by the Mayor and publication in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 3 i>AssEb py the governing body of the City on July 11, 2016 and APPROVED AND SIGNED b -······ ····•. /0r,.GAN!ZfD\. ~ . fil) : .-1. \ 1870 / (,Ci_ "1 t:":'rif;"'•~ •• '. "'i~ ..... 'I,J. c:~ A~Si':'• .,....... •1,6· '\.'\-.,.. .-·•_";-.; , ~ ttdi U)Oti Clerk \) tc..a.. Mayor , So.A. , ~ (Signature Page to Bond Ordinance-Series 2016-A Bonds) RESOLUTION NO. 16-7380 OF THE CITY OF SALINA, KANSAS ADOPTED JULY 11, 2016 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2016-A Section 101. Section 201. Section 202. Section 203. Section 204. Section 205. Section 206. Section 207. Section 208. Section 209. Section 210. Section 211. Section 212. Section 213. Section 301. Section 302. Section 303. Section 401. Section 402. Section 501. Section 502. Section 503. Section 504. Section SOS. Section S06. Section S07. Section 601. Section 602. TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 1 ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Authorization of the Bonds ........................................................................................... 8 Description of the Bonds ............................................................................................... 8 Designation of Paying Agent and Bond Registrar ......................................................... 9 Method and Place of Payment of the Bonds ................................................................ 10 Payments Due on Saturdays, Sundays and Holidays .................................................. 10 Registration, Transfer and Exchange of Bonds ........................................................... 1 O Execution, Registration, Authentication and Delivery of Bonds ................................ 11 Mutilated, Lost, Stolen or Destroyed Bonds ............................................................... 12 Cancellation and Destruction of Bonds Upon Payment. ........................................ , .... 12 Book-Entry Bonds; Securities Depository .................................................................. 12 Nonpresentment of Bonds ........................................................................................... 14 Preliminary and Final Official Statement .................................................................... 14 Sale of the Bonds ......................................................................................................... 14 ARTICLE ill REDEMPTION OF BONDS Redemption by Issuer .................................................................................................. 14 Selection of Bonds to be Redeemed ............................................................................ 15 Notice and Effect of Call for Redemption ................................................................... 16 ARTICLE IV SECURITY FOR BONDS Security for the Bonds ................................................................................... , ............. 18 Levy and Collection of Annual Tax; Transfer to Debt Service Account .................... 18 ARTICLE V ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Creation of Funds and Accounts ................................................................................. 18 Deposit of Bond Proceeds ........................................................................................... 19 Application of Moneys in the Improvement Fund; Redemption of Refunded Notes .. 19 Substitution of Improvements; Reallocation of Proceeds ................ , .......................... 19 Application of Moneys in Debt Service Account. ....................................................... 19 Application of Moneys in the Rebate Fund ................................................................. 20 Deposits and Investment of Moneys ........................................................................... 20 ARTICLE VI DEFAULT AND REMEDIES Remedies ..................................................................................................................... 21 Limitation on Rights of Owners .................................................................................. 21 Section 603. Section 701. Section 801. Section 802. Section 901. Section 902. Section 1001. Section 1002. Section 1003. Section 1004. Section 1005. Section 1006. Section 1007. Section 1008. Section 1009. Remedies Cumulative .................................................................................................. 21 ARTICLE VII DEFEASANCE Defeasance ................................................................................................................... 22 ARTICLE VIII TAX C_OVENANTS General Covenants ...................................................................................................... 22 Survival of Covenants ................................................................................................. 23 ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements ............................................................................................. 23 Failure to Comply with Continuing Disclosure Requirements ................................... 23 ARTICLE X MISCELLANEOUS PROVISIONS Annual Audit ............................................................................................................... 23 Amendments ................................................................................................................ 23 Notices, Consents and Other Instruments by Owners ................................................. 24 Notices .................................... , .................................................................................... 25 Electronic Transactions ............................................................................................... 25 Further Authority ......................................................................................................... 25 Severability .................................................................................................................. 25 Governing Law ................................................ _ ............................................................ 26 Effective Date .............................................................................................................. 26 EXI-lIBIT A -FORM OF BONDS ............................................................................................................. A-1 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] ii RESOLUTION NO. 16-7380 A RESOLUTION PRESCRIBING THE FORM AND DETAILS OF AND AUTHORIZING AND DIRECTING THE SALE AND DELIVERY OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2016-A, OF THE CITY OF SALINA, KANSAS, PREVIOUSLY AUTHORIZED BY ORDINANCE NO. 16-10838 OF THE ISSUER; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS CONNECTED THEREWITH. WHEREAS, the City of Salina, Kansas (the "Issuer") has previously passed the Ordinance autllorizing the issuance of the Bonds; and WHEREAS, the Ordinance authorized the Governing Body to adopt a resolution prescribing certain details and conditions and to make certain covenants with respect to the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: ARTICLE I DEFINITIONS Section 101. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Bond Resolution shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include 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, K.S.A. 12-685 et seq., and K.S.A. 12-1736 et seq. all as amended and supplemented from time to time. "Authorized Denomination" means $5,000 or any integral multiples thereof. "Beneficial Owner" of the Bonds includes any Owner of the Bonds and any other Person who, directly or indirectly has the investment power with respect to such Bonds. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds, "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. 1 "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" means the General Obligation Internal Improvement Bonds, Series 2016-A, authorized and issued by the Issuer pursuant to the Ordinance and this Bond Resolution. "Business Day" means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. "Cede & Co." means Cede & Co., as nominee ofDTC and any successor nominee of DTC. "City" means the City of Salina, Kansas. "Clerk" means the duly appointed and/or elected Clerk or, in the Clerk's absence, the duly appointed Deputy Clerk or Acting Clerk of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder by the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Bonds, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses incurred in obtaining municipal bond insurance on the Bonds. "Dated Date" means July 26, 2016. "Debt Service Account" means the Debt Service Account for General Obligation Internal Improvement Bonds, Series 2016-A created within the Bond and Interest Fund pursuant to Secdon 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 th,e 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 2 (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax pwposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the rating category then assigned by that Rating Agency to United States Government Obligations. • "Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. "Disclosure Undertaking" means the Issuer's Omnibus Continuing Disclosure Undertaking, as may be amended and supplemented, 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 OTC 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 3 (c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Bond Resolution ( other than the covenants relating to continuing disclosure requirements contained herein and in the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then Outstanding. "Federal Tax Certificate'' means the Issuer's Federal Tax Certificate dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. "Financeable Costs" means the amount of expenditure for an Improvement which has been duly authorized by action of the Governing Body to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. "Fiscal Year" means the twelve month period ending on December 31. "Funds and Accounts" means funds and accounts created pur-suant to or referred to in Section 501 hereof. "Governing Body" means the City Commission of the Issuer. "Improvement Fund" means the Improvement Fund for General Obligation Internal Improvement Bonds, Series 2016-A created pursuant to Seed.on 501 hereof. "Improvements" means the improvements referred to in the preamble to the Ordinance and any Substitute Improvements. "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by this Bond Resolution. "Interest Payment Date(s)" means the Stated Maturity of an installment of interest on any Bond which shall be April 1 and October 1 of each year, commencing April 1, 2017. "Issue Date" means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the Purchase Price. "Issuer" means the City and any successors or assigns. "Maturity" when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Mayor" means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or 4 liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. "Notice Address" means with respect to the following entities: (a) To the Issuer at: City of Salina, Kansas Attn: City Clerk 300WestAsh Salina, Kansas 67402 Fax: (785)309-5738 (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: Robert W. Baird & Co., Inc. 777 East Wisconsin Ave. Milwaukee, Wisconsin 53202 (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 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 Clerk. (b) With respect to the Bond Registrar and Paying Agent, the Director ofBond Services. ( c) With respect to any Purchaser, the manager of its Municipal Bond Department. (d) With respect to any Rating Agency, any Vice President thereof. "Official Statement" means Issuer's Official Statement relating to the Bonds. "Ordinance" means Ordinance No. 16-10838 of the Issuer authorizing the issuance of the Bonds, as amended from time to time. 5 "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 deem:ed 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 ob1igations of the United St.ates Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in (c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); (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 (I) bonds of any mµnicipality of the State as defined in K.S.A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), all as may be further restricted or modified by amendments to applicable State law. "Person" means any natural person, corporation, partnership, joint venture, association, £inn, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body. "Purchase Price" means the principal amount of the Bonds plus accrued interest to the date of delivery, plus areoffering premium of $111,766.35, less an underwriting discount of $98,945.71. 6 "Purchaser" means Robert W. Baird & Co., Inc., Milwaukee, Wisconsin, the original purchaser ofthe Bonds, and any successor and assigns. "Rating Agency" means any company, agency or entity that provides, pursuant to request of the Issuer, financial ratings for the Bonds. "Rebate Fund" means the Rebate Fund for General Obligation Intern.al Improvement Bonds, Series 2016-A created pursuant to Section 501 hereof. "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding each 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 Seed.on 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 2015-1 Notes maturing on August 1, 2016, in the aggregate principal amount of $5,995,000. "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 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 210 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 2015~1 Notes" means the Issuer's General Obligation Temporary Notes, Series 2015-1, dated July 29, 2015. "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. 7 "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 que and payable. "Substitute Improvements" means the substitute or additional improvements of the Issuer described in Article Vhereof. "Term Bonds'' means the Bonds scheduled to mature in the year 2028. "2028 Tenn Bonds" means the Bonds scheduled to mature in the year 2028. "Treasurer" means the duly appointed and/or elected Treasurer of the Issuer or, m the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ARTICLE II AUTHORIZATION AND DETAILS OF THE BONDS Section 201. Authorization of the Bonds. The Bonds have been previously authorized and directed to be issued pursuant to the Ordinance in the principal amount of $6,570,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) retire the Refunded Notes; and ( c) 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 I/I hereof, and shall bear interest at the rates per annum as follows: 8 Stated Maturity October 1 2017 2018 2019 2020 2021 2022 2023 2024 2025 SERIAL BONDS Principal Annual Rate Stated Maturity Principal Amount of Interest October 1 Amount $240,000 2.000% 2026 $325,000 270,000 2.000% 2029 345,000 275,000 2.000% 2030 355,000 280,000 2.000% 2031 360,000 285,000 3.000% 2032 370,000 295,000 3.000% 2033 375,000 305,000 3.000% 2034 385,000 315,000 2.000% 2035 395,000 320,000 2.000% 2036 405,000 TERM BONDS Stated Maturity October 1 2028 Principal Amount $670,000 Annual Rate of Interest 2.000% Annual Rate of Interest 2.000% 2.000% 2.125% 2.250% 2.250% 2.375% 2.500% 2.500% 2.500% The Bonds shall bear interest at the above specified rates ( computed on the basis of a 360-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 Mayor of the Issuer is hereby authorized and empowered to execute on behalf of the Issuer an agreement with the Bond Registrar and Paying Agent for the Bonds. The Issuer will at all times maintain a Paying Agent and Bond Registrar meeting the qualifications herein described for the performance of the duties hereunder. The Issuer reserves the right to appoint a successor Paying Agent or Bond Registrar by (a) filing with the Paying Agent or Bond Registrar then performing such function a certified copy of the proceedings giving notice of the termination of such Paying Agent or Bond Registrar and appointing a successor, and (b) causing notice of appointment of the successor Paying Agent and Bond Registrar to be given by first class mail to each Owner. No resignation or removal of the Paying Agent or Bond Registrar shall become effective until a successor has been appointed and has accepted the duties of Paying Agent or Bond Registrar. Every Paying Agent or Bond Registrar appointed hereunder shall at all times meet the requirements of K.S.A. 10-501 et seq. and K.S.A. 10-620 et seq., respectively. 9 Section 204. Method and Place of Payment of the Bonds. The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case 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 10 days prior to the date of the proposed payment. The Paying Agent shall promptly notify the Issuer of such Special Record Date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaµlted 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. Registratio~ 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. 10 Bonds may be transferred and exchanged only on the Bond Register as provided in this Section. Upon surrender of any Bond at the principal office of the Bond Registrar, the Bond Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any Authorized Denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Bond Registrar shall authenticate and deliver Bonds in accordance with the provisions of this Bond Resolution. The Issuer shall pay the fees and expenses of the Bond Registrar for the registration, transfor and exchange of Bonds provided for by this Bond Resolution and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Code § 3406, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Owner hereunder or under the Bonds. The Issuer and the Bond Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent pursuant to Article III hereof and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest purswmt to this Article H. 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 prupose 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 shaU 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 I 0% 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 or facsimile signature of the Mayor, attested by the manual or facsimile signature of the Clerk, and the seal of the Issuer shall be affixed thereto or imprinted thereon. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds in the manner herein specified, and to cause the Bonds to be registered in the office of the Clerk, which registration shall be evidenced by the manual or facsimile signature of the Clerk with the seal of the Issuer affixed thereto or imprinted thereon. The Bonds shall also be registered in the office of the 11 State Treasurer, which registration shall be evidenced by the manual or facsimile signature of the State Treasurer with the seal of the State Treasurer affixed thereto or imprinted thereon. In case any officer whose signature appears on any Bonds ceases to be such officer before the delivery of such Bonds, such signature shall nevertheless be valid and sufficient for all purposes, as if such person had remained in office until delivery. Any Bond may be signed by such persons who at the actual time of the execution of such Bond are the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers. • The Mayor and Clerk are hereby authorized and directed to prepare and execute the Bonds as herein specified, and when duly executed, to deliver the Bonds to the Bond Registrar for authentication. The Bonds shall have endorsed thereon a certificate of authentication substantially in the form attached hereto as EXHIBIT A hereof, which shall be manually executed by an authorized officer or employee of the Bond Registrar, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Bonds that may be issued hereunder at any one time. No Bond shall be entitled to any security or benefit under this Bond Resolution or be valid or obligatory for any purpose unless and until such certificate of authentication has been duly executed by the Bond Registrar. Such executed certificate of authentication upon any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Bond Resolution. Upon authentication, the Bond Registrar shall deliver the Bonds to the Purchaser upon instructions of the Issuer or its representative. Section 208. Mutilated, Lost, Stolen or Destroyed Bonds. If (a) any mutilated Bond is surrendered to the Bond Registrar or the Bond Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Bond Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Bond Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer's request, the Bond Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond ofthe 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 payab1e, 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 & 12 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 authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragTaph. The Issuer may decide, subject to the requirements of the Operational Arrangements of OTC ( or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through OTC (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 ofthe Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry syi;tem 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 ca11s 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 perfotmed 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 13 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 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 dated July 5, 2016, is hereby ratified and approved. The Official Statement is hereby authorized to be prepared by supplementing, amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The Mayor and Finance Director of the Issuer 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 conm::ction 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 Mayor and 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. Redemption by Issuer. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2024, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on October 1, 2023, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the Redemption Price of I 00% ( expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date. 14 Mandatory Redemption. 2028 Term Bonds. The 2028 Term Bonds shall be subject to mandatory redemption and payment prior to Stated Maturity pursuant to the mandatory redemption requirements of this Section at a Redemption Price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date. The taxes levied in Article IV hereof which are to be deposited into the Debt Service Account shall be sufficient to redeem, and the Issuer shall redeem on October 1 in each year, the following principal amounts of such 2028 Term Bonds: "'Final Maturity Principal Amount $330,000 340,000 ¥w: 2027 2028* At its option, to be exercised on or before the 45th day next preceding any mandatory Redemption Date, the Issuer may: (1) deliver to the Paying Agent for cancellation Term Bonds subject to mandatory redemption on said mandatory Redemption Date, in any aggregate principal amount desired; or (2) furnish the Paying Agent funds, together with appropriate instructions, for the purpose of purchasing any Term Bonds subject to mandatory redemption on said mandatory Redemption Date from any Owner thereof whereupon the Paying Agent shall expend such funds for such purpose to S\lch extent as may be practical; or (3) receive a credit with respect to the mandatory redemption obligation of the Issuer under this Section for any Term Bonds subject to mandatory redemption on said mandatory Redemption Date which, prior to such date, have been redeemed (other than through the operation of the mandatory redemption requirements of this subsection) and cancelled by the Paying Agent and not theretofore applied as a credit against any redemption obligation under this subsection. Each Term Bond so delivered or previously purchased or redeemed shall be credited at 100% of the principal amount thereof on the obligation of the Issuer to redeem Term Bonds of the same Stated Maturity on such mandatory Redemption Date, and any excess of such amount shall be credited on future mandatory redemption obligations for Term Bonds of the same Stated Maturity as designated by the Issuer, and the principal amount of Term Bonds to be redeemed by operation of the requirements of this Section shall be accordingly reduced. If the Issuer intends to exercise any option granted by the provisions of clauses (1 ), (2) or (3) above, the fo;uer will, on or before the 45th day next preceding each mandatory Redemption Date, furnish the Paying Agent a written certificate indicating to what extent the provisions of said clauses (1 ), (2) and (3) are to be complied with, with respect to such mandatory redemption payment. Section 302. Selection of Bonds to be Redeemed. Bonds shall be redeemed only in an Authorized Denomination. When less than all of the Bonds are to be redeemed and paid prior to their Stated Maturity, such Bonds shall be redeemed in such manner as the Issuer shal] determine. Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Bonds by lot when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption a minimum Authorized Denomination of face value shall be treated as though it were a separate Bond of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination of face value represented by any Bond is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and surrender such Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the 15 unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only). Section 303. Notice and Effect of Call for Redemption. In the event the Issuer desires to call the Bonds for redemption prior to maturity, written notice of such intent shall be provided to the Bond Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Bond Registrar shall call Bonds for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Bond Registrar at least 45 days prior to the Redemption Date of written instructions of the Issuer specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Bonds to be called for redemption. The foregoing provisions of this paragraph shall not apply in the case of any mandatory redemption of Term Bonds hereunder, and Term Bonds shall be called by the Paying Agent for redemption pursuant to such mandatory redemption requirements without the necessity of any action by the Issuer and whether or not the Paying Agent holds moneys available and sufficient to effect the required redemption. Unless waived by any Owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the Stated Maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the State Treasurer. 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. For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Bond Registrar shall provide the notices specified in this Section to the Securities Depository. It is expected that the Securities Depository shall, in 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 16 or a Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Bond Registrar, the Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with such notice, the Redemption Price of such Bonds shall be paid by the Paying Agent. Installments of interest due on or prior to the Redemption Date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there shall be prepared for the Owner a new Bond or Bonds of the same Stated Maturity in the amount of the unpaid principal as provided herein. All Bonds that have been surrendered for redemption shall be cancelled and destroyed by the Paying Agent as provided herein and shall not be reissued. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Undertaking. Further notice may be given by the Issuer or the Bond Registrar on behalf of the Issuer as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shalJ in any manner defeat the effectiveness of a call for redemption if official notice thereof is given as above prescribed: (a) Each further notice of redemption given hereunder shall contain the information required above for an official notice ofredemption plus (1) the CUSIP numbers of al) Bonds being redeemed; (2) the date of issue of the Bonds as originally issued; (3) the rate of interest borne by each Bond being redeemed; (4) the maturity date of each Bond being redeemed; and (5) any other descriptive information needed to identify accurately the Bonds being redeemed, (b) Each further notice of redemption shall be sent at least one day before the mailing of notice to Owners by first class, registered or certified mail or overnight delivery, as determined by the Bond Registrar, to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds. ( c) Each check or other transfer of funds issued for the payment of the Redemption Price of Bonds being redeemed shall bear or have enclosed the CUSIP number of the Bonds being redeemed with the proceeds of such check or other transfer. The Paying Agent is also directed to comply with any mandatory standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. 17 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 tenitorial 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 tax.able 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. ARTICLE V ESTABLISHMENT OF FUNDS AND ACCOUNTS DEPOSIT AND APPLICATION OF BOND PROCEEDS Section 501. Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the Issuer the following Funds and Accounts: (a) Improvement Fund for General Obligation Internal Improvement Bonds, Series 2016-A. (b) Redemption Fund for Refunded Notes. (c) Debt Service Account for General Obligation Internal Improvement Bonds, Series 2016- A (within the Bond and Interest Fund). (d) Rebate Fund for General Obligation Internal Improvement Bonds, Series 2016-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. 18 Section 502. Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds shall be deposited simultaneously with the delivery of the Bonds as follows: (a) All accrued interest received from the sale of the Bonds, if any, shall be deposited in the Debt Service Account. (b) The sum of $6,070,353.82 shall be deposited into the Redemption Fund. (c) The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited in the Improvement Fund. Section 503. Application of Moneys in the Improvement Fund; Redemption of Refunded Notes. Moneys in the Improvement Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements, in accordance with the plans and specifications therefor approved by the Governing Body and on file in the office of the Clerk, including any alterations in or amendments to said plans and specifications deemed advisable and approved by the Governing Body; {b) paying interest on the Bonds during construction of the Improvements; ( c) paying Costs of Issuance; and ( d) transferring any amounts to the Rebate Fund required by this Article V. Upon completion of the Improvements, any surplus in the Improvement Fund shall be deposited in the Debt Service Account. Section 504. Substitution of Improvements; Reallocation of Proceeds. (a) The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Bonds provided the following conditions are met: (1) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement 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 or federal law. • (b) The Issuer may reallocate expenditure of Bond proceeds among all Improvements financed by the Bonds; provided the following conditions are met: (1) the reallocation is approved by the Governing Body; (2) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the Financeable Costs of the Improvement; and (3) the reaJlocation will not adversely affect the tax-exempt status of the Bonds under State or federal law. Section 505. 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 at their maturity on August 1, 2016. Any moneys remaining in the Redemption Fund not needed to retire the Refunded Notes shall be transferred to the Debt Service Account. Section 506. 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 19 Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a mapner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Bond Registrar and Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Bonds entitled to payment from such moneys. Any moneys or investments remaining in the Debt Service Account after the retirement c)f the Bonds shall be transferred and paid into the Bond and Interest Fund. Section 507. Application of Moneys in the Rebate Fund. (a) There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Federal Tax Certificate. All money at any time deposited in the Rebate Fund shall be held in trust, to the extent required to satisfy the Rebate Amount (as defined in the Federal Tax Certificate), for payment to the United States of America, and neither the Issuer nor the Owner of any Bonds shall have any rights in or claim to such money. All amounts deposited into or on deposit in the Rebate Fund shall be governed by this Section and the Federal Tax Certificate. (b) The Issuer shall periodically determine the arbitrage rebate, if any, under Code§ 148(f) in accordance with the Federal Tax Certificate, and the Issuer shall make payments to the United States of America at the times and in the amounts determined under the Federal Tax Certificate. Any moneys remaining in the Rebate Fund after redemption and payment of all of the Bonds and payment and satisfaction of any Rebate Amount, or provision made therefor, shall be deposited into the Bond and Interest Fund. (c) Notwithstanding any other provision of this Bond Resolution, including in particular Article VII hereof, the obligation to pay arbitrage rebate to the United States of America and to comply with all other requirements of this Section and the Federal Tax Certificate shall survive the defeasance or payment in full of the Bonds. Section 508. Deposits and Investment of Moneys. Moneys in each of the Funds and Accounts shall be deposited in accordance with laws of the State, in a bank, savings and loan association or savings bank organized under the laws of the State, any other state or the United States: (a) which has a main or branch office located in the Issuer; or (b) if no such entity has a main or branch office located in the Issuer, with such an entity that has a main or branch office located in the county or counties in which the Issuer is located. All such depositaries shall be members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law. All such deposits shall be invested in Permitted Investments as set forth in this Article or shall be adequately secured as provided by the laws of the State. All moneys held in the Funds and Accounts shall be kept separate and apart from all other funds of the Issuer so that there shall be no commingling with any other funds of the Issuer. Moneys held in any Fund or Account may be invested in accordance with this Bond Resolution and the Federal Tax Certificate in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account; provided that, during the period of 20 construction of the Improvements, earnings on the investment of such funds may, at the discretion of the Issuer, be credited to the Debt Service Account. 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 ifthey 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. 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 here~ 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 re;medies 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 be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and 21 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 Ardcle 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 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 d~med to be deposited in accordance with and subject to all of the provisions of this Bond Resolution. ARTICLE VIII TAX COVENANTS Section 801. General Covenants. The Issuer covenants and agrees that it will comply with: (a) all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds; and (b) all provisions and requirements of the Federal Tax Certificate. The Mayor, Finance Director and Clerk are hereby authorized and directed to execute the Federal Tax Certificate in a form approved by Bond Counsel, for and on behalf of and as the act and deed of the Issuer. The Issuer will, in addition, adopt such other ordinances or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future laws, regulations, published rulings and judicial decisions, in order to ensure that the interest on the Bonds will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer. 22 Section 802. Survival of Covenants. The covenants contained in this Article and in the Federal Tax Certificate shall remain in full force and effect notwithstanding the defeasance of the Bonds pursuant to Article VII hereof or any other provision of this Bond Resolution until such time as is set forth in the Federal Tax Certificate. ARTICLE IX CONTINUING DISCLOSURE REQUIREMENTS Section 901. Disclosure Requirements. The Issuer hereby covenants with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking, the provisions of which are incorporated herein by reference. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Section 902. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its covenants contained in the preceding section, the Purchaser and/or any Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits in equity for the specific performance of such covenant or agreement contained in the preceding section or for the enforcement of any other appropriate legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce any of the duties of the Issuer under such preceding section. Notwithstanding any other provision of this Bond Resolution, failure of the Issuer to comply with its covenants contained in the preceding section shall not be considered an Event of Default under this Bond Resolution. ARTICLEX MISCELLANEOUS PROVISIONS Section 1001. Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such audit, a copy thereof shall be filed in the office of the Clerk. Such audit shall. at all times during the usual business hours be open to the examination and inspection by any taxpayer, any Owner of any of the Bonds, or by anyone acting for or on behalf of such taxpayer or Owner. Upon payment of the reasonable cost of preparing and mailing the same, a copy of any annual audit will, upon request, be sent to any Owner or prospective Owner. As soon as possible after the completion of the annual audit, the Governing Body shall review such audit, and if the audit discloses that proper provision has not been made for all of the requirements of this Bond Resolution, the Issuer shall promptly cure such deficiency. Section 1002. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Bonds or of this Bond Resolution, may be amended or modified at any time in any respect by 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 23 recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Bond; ( c) permit preference or priority of any Bond over any other Bond; or (d) reduce the percentage in principal amount of Bonds required for the written consent to any modification or alteration of the provisions of this Bond Resolution. Any provision of the Bonds or of this Bond Resolution may, however, be amended or modified by 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 Improv~ents, to reallocate proceeds of the Bonds among Improvements, to provide for Substitute Improvements, to conform this Bond Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Every amendment or modification of the provisions of the Bonds or of this Bond Resolution, to which the written consent of the Owners is given, as above provided, shall be expressed in a resolution 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 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 Clerk to any such Owner or prospective Owner. Any and all modifications made in the manner hereinabove provided shall not become effective until there has been filed with the Clerk a copy of the resolution of the Issuer hereinabove provided for, duly certified, as well as proof of any required consent to such modification by the Owners of the Bonds then Outstanding. It shall not be necessary to note on any of the Outstanding Bonds any reference to such amendment or modification. The Issuer shall furnish to the Paying Agent a copy of any amendment to the Bonds or this Bond Resolution which affects the duties or obligations of the Paying Agent under this Bond Resolution. Section 1003. Notices, Consents and Other Instruments by Owners. Any notice, consent, request, direction, approval or other instrument to be signed and executed by the Owners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Owners in person or by agent appointed in writing. Proof of the execution of any such instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Resolution, and shall be conclusive in favor of the Issuer 24 and the Paying Agent with regard to any action taken, suffered or omitted under any such instrument, namely: (a) The fact and date of the execution by any person of any such instrument may be proved by a certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the person signing such instrument acknowledged before such officer the execution thereof, or by affidavit of any witness to such execution. (b) The fact of ownership of Bonds, the amount or amounts, numbers and other identification of Bonds, and the date of holding the same shall be proved by the Bond Register. In determining whether the Owners of the requisite principal amount of Bonds Outstanding have given any request, demand, authorization, direction, notice, consent or waiver under this Bond Resolution, BoJ:lds owned by the Issuer shall be disregarded and deemed not to be Outstanding under this Bond Resolution, except that, in determining whether the Owners shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Bonds which the Owners know to be so owned shall be so disregarded. Notwithstanding the foregoing, Bonds so owned which have been pledged in good faith shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Owners the pledgee's right so to act with respect to such Bonds and that the pledgee is not the Issuer. Section 1004. Notices. Any notice, request, complaint, demand or other communication required or desired to be given or filed under this Bond Resolution shall be in writing, given to the Notice Representative at the Notice Address and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic 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 ~ 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 l0OS. Electronic Transactions. The issuance of the Bonds and the transactions related thereto and described herein may be conducted and documents may be stored by electronic means. Section 1006. Further Authority. The officers and officials of the Issuer, including the Mayor and Clerk, are hereby authorized and directed to execute all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the puIJ>OSes of this Bond Resolution and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 1007. Severability. If any section or other part of this Bond Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Bond Resolution. 25 Section 1008. Governing Law. This Bond Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 1009. Effective Date. This Bond Resolution shall take effect and be in full force from and after its adoption by the Governing Body. 26 the governing body of the Issuer on July 11, 2016. .... . ... . .. ••~~GANIZEo\. ) 1870 : ~---.... (Signature Page to Bond Resolution -Series 2016-A) EXHIBIT A (FORM OF BONDS) REGISTERED NUMBER REGISTERED $ Interest Rate: Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York Corporatfon ("DTC"), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC}, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2016-A Maturity Date: Dated Date: July 26, 2016 CUSIP: REGISTERED OWNER: PRINCIPALAMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Issuer"), for value received, hereby acknowledges itself to be indebted and promises to pay to the Registere.d Owner shown above; or registered assigns, but solely from the source and in the manner herein specifie.d, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to said Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above ( computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown above, or from the most recent date to which interest has been paid or duly provided for, payable semiannually on April 1 and October 1 of each year, commencing April 1, 2017 (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 Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Registered Owner wishes to have such transfer directed. The principal or redemption price of and interest on the Bonds shall be payable in any coin or currency that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Interest not punctually paid will be paid in the manner established in the within defined Bond Resolution. Definitions. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the hereinafter defined Bond Resolution. Authorization of Bonds. This Bond is one of an authorized series of Bonds of the Issuer designated "General Obligation Internal Improvement Bonds, Series 2016-A," aggregating the principal amount of $6,570,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the Issuer authorizing the issuance of the Bonds and the Resolution of the Issuer prescribing the form and details of the Bonds (collectively, the "Bond Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq., 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 provided 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 shal1 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, rede:mption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, 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 ill any Authorized Denomination of the same maturity and ill the same aggregate principal amount shall be issued to the transferee ill 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 hereinafter defined 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, illcluding 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 or facsimile signature of its Mayor and attested by the manual or facsimile signature of its Clerk, and its seal to be affixed hereto or imprinted hereon. (Facsimile Seal) ATTEST: By: {facsimile) Clerk CITY OF SALINA, KANSAS By: ----""'(tl=ac=s=im=il=· e"")._ _____ _ Mayor CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2016-A, of the City of Salina, Kansas, described in the within-mentioned Bond Resolution. Registration Date ______ _ Registration Number: ---------- Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By: _____________ _ CERTIFICATE OF CLERK STATE OF KANSAS ) ) ss. COUNTY OF SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of July 26, 2016. WITNESS my hand and official seal. (Facsimile Seal) By: ___ __.(=fa=c=si=JD1=·1=eCL,.) ______ _ Clerk CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS RON ESTES, 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. (Seal) By:------------- Treasurer of the State of Kansas 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 Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By ______________ _ 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 2405 Grand Boulevard Suite 1100 Kansas City, Missouri 64108 (PRINTED LEGAL OPINION) TRANSCRIPT CERTIFICATE $10,970,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer"), do hereby make this certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above-described bonds (the "Bonds"); and do hereby certify as of June 10, 2024, as follows: 1. Meaning of Words and Terms. Capitalized words and terms used herein, unless otherwise defined herein or the context requires otherwise, shall have the same meanings ascribed to such words and terms in the hereinafter defined Bond Resolution authorizing the Bonds. 2. Organization. The Issuer is a legally constituted city of the first class organized and existing under the laws of the State of Kansas. 3. Transcript of Proceedings. The transcript of proceedings (the "Transcript") relating to the authorization and issuance of the Bonds is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript, and the facts stated in the Transcript still exist. In each and every instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. 4. Newspaper. The Salina Journal or the City's official website www.salina-ks.£ov, was the official newspaper of the Issuer at all times during these proceedings. 5. Meetings. All of the meetings of the governing body of the Issuer at which action was taken as shown in the Transcript were either regular meetings or duly adjourned regular meetings or special meetings duly called and held in accordance with law and the ordinances and rules of the Issuer. 6. Incumbency of Officers. The following named persons were and are the duly qualified and acting officers of the Issuer at and during all the times when action was taken as indicated in the Transcript as follows: Name Bill Longbine Mike Hoppock Trent Davis Melissa Rose Hodges Greg Lenkiewicz Bill Longbine Karl Ryan Trent Davis 600596.20255\CLOSING DOCS Title Mayor Mayor Mayor Mayor Vice-Mayor Vice-Mayor Vice-Mayor Vice-Mayor Term of Office 01/22/2024 to Present 01/09/2023 to 01/22/2024 01/10/2022 to 01/09/2023 01/11/2021 to 01/10/2022 01/22/2024 to Present 01/09/2023 to 01/22/2024 01/10/2022 to 01/09/2023 01/11/2021 to 01/10/2022 Greg Linkiewicz Commissioner 01/10/2022 to Present Trent Davis Commissioner 09/08/2014 to Present Mike Hoppock Commissioner 01/08/2018 to Present Jerry Ivey Commissioner 01/22/2024 to Present Bill Longbine Commissioner 01/10/2022 to Present Aaron Peck Commissioner 05/17/2021 to 01/10/2022 Karl Ryan Commissioner 04/20/2015 to O 1/22/2024 Nikki Goding Clerk 09/11/2023 to present JoVonna Rutherford Clerk 03/25/2021 to 08/11/2023 7. Execution of Bonds. The Bonds have been executed with facsimile signatures; and the facsimile signatures appearing on the face of the Bonds are facsimiles of the true and genuine signatures of the Mayor and Clerk of the Issuer; which facsimiles are ratified as a proper execution of said Bonds. Each signature has either been duly filed in the office of the Secretary of State of Kansas pursuant to KS.A. 75-4001 et seq. or executed in accordance with KS.A. 16-1601 et seq. A facsimile of the seal of the Issuer is affixed to or imprinted on each of the Bonds and on the reverse side of each of the Bonds at the place where the Clerk has executed by facsimile signature the Certificate of Registration; and each Bond bears a Certificate of Registration evidencing the fact that it has been registered in the office of the Clerk. A true impression of the seal is set forth adjacent to the signature of the Clerk below. The specimen bond included in the Transcript is in the form adopted by the governing body of the Issuer for the Bonds. 8. Authorization and Purpose of the Bonds. The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State, including particularly K.S.A. 10-427 et seq., KS.A. 12-6a01 et seq., KS.A. 12-llOc, as amended, Ordinance No. 24-11210 and Resolution No. 24-8217 of the Issuer duly adopted by the Governing Body of the Issuer on June 10, 2024 (collectively the "Bond Resolution") for the purpose of paying costs of issuance and: (a) paying a portion of the costs of certain internal improvements and acquisition of certain equipment (the "Improvements"); and (b) Refunding, pursuant to KS.A. 10-427 et seq., a portion of the October 1, 2024, interest payment (the "Interest Payment") on the Issuer's General Obligation Internal Improvement Bonds, Series 2016-A. The total principal amount of the Bonds does not exceed the cost of the Improvements for which the Bonds are issued. The total principal amount of the Bonds issued to refund the Interest Payment does not exceed the aggregate amounts prescribed in K.S.A. 10-427, as amended. 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 KS.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. 600596.20255\CLOSING DOCS 2 10. Valuation. The total assessed valuation of the taxable tangible property within the Issuer for the year 2023 is as follows: Equalized Assessed Valuation of Taxable Tangible Property .............................................................. $531,447,506 Tangible Valuation of Motor Vehicles.................................................. 55,673 ,641 Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations................................. $587,121,147 11. Non-litigation. There is no controversy, suit or other proceedings of any kind pending or threatened wherein or whereby any question is raised or may be raised, questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; or (f) the levy and collection of a tax to pay the principal of and interest on the Bonds. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\CLOSING DOCS 3 WITNESS our true and genuine manual signatures and the seal of the Issuer. Ma (SEAL) 11~ 600596.20255\CLOSING DOCS (Signature Page to Transcript Certificate) EXHIBIT A STATEMENT OF COST Re: General Obligation Internal Improvement Bonds, Series 2024-A, Dated July 2, 2024, of the City of Salina, Kansas Sources of Funds: Principal Amount of the Bonds Prepaid Special Assessments Underwriter's Discount Net Premium Total Uses of Funds: Deposit to Improvement Fund Deposit to Redemption Fund Costs of Issuance Total 600596.20255\CLOSING DOCS A-1 $10,970,000.00 257,428.10 -32,300.44 638.670.25 $11,833,797.91 $11,723,092.91 5,000.00 105,705.00 $11,833,797.91 EXHIBITB CITY OF SALINA, KANSAS SCHEDULE OF OUTSTANDING GENERAL OBLIGATION INDEBTEDNESS (as of July 2, 2024) Description of Indebtedness G.O. Bonds, Series 2013-A G.O. Bonds, Series 2015-A G.O. Bonds, Series 2016-A G.O. Ref. Bonds, Series 2016-B G.O. Bonds, Series 2017-A G.O. Bonds, Series 2018-A G.O. Bonds, Series 2019-A G.O. Bonds, Series 2020-A G.O. Ref. Bonds, Series 2020-B G.O. Bonds, Series 2021-A G.O. Ref. Bonds, Series 2021-B G.O. Bonds, Series 2022-A G.O. Bonds, Series 2023-A G.O. Bonds, Series 2024-A 600596.20255\CLOSING DOCS GENERAL OBLIGATION BONDS Dated Date 02/15/2013 07/29/2015 07/27/2016 07/27/2016 07/27/2017 11/27/2018 04/24/2019 04/29/2020 11/30/2020 04/29/2021 09/08/2021 04/28/2022 08/17/2023 07/02/2024 Total Final Maturity 10/01/2028 10/01/2035 10/01/2036 10/01/2031 10/01/2037 10/01/2033 10/01/2039 10/01/2035 10/01/2036 10/01/2041 10/01/2034 10/01/2042 10/01/2043 10/01/2044 TEMPORARY NOTES None B-1 Original Principal Amount $1,360,000 6,825,000 6,570,000 13,750,000 9,310,000 2,090,000 11,090,000 5,210,000 8,450,000 7,645,000 6,220,000 7,840,000 2,955,000 10,970,000 Amount Outstanding $535,000 4,035,000 4,620,000 6,270,000 7,085,000 1,510,000 9,570,000 3,540,000 6,115,000 7,100,000 5,010,000 7,450,000 2,955,000 10,970,000 $76,765,000 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 BILL LONGBINE.MAYOR SALINA, CITY OF. KANSAS was filed in this office the 14th day of June, A.D. 2024 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 14th day of June, A.D. 2024 SCOTT SCHWAB KANSAS SECRETARY OF STATE STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, ScoTT SCHWAB, Kansas Secretary of State, certify that the records of this office reveal the following: The Certificate of Manual Signature for NIKKI GODING, CLERK SALINA, ClTY OF, KANSAS was filed in this office the 18th day of September, 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 18th day of September, A.D. 2023 SCOTT SCHWAB KANSAS SEC RETARY OF STATE Offi ce of the Kansas State Treasurer Bond Registration Intranet 900 SW Jackson St., Ste 201 ... Topeka, KS 66612-1235 ... 785-296-8505 June 13, 2024 Pam Jones Gilmore & Bell Pc 100 North Main, Suite 800 Wichita, KS 67202 RE: $10,970,000.00, City of Salina, Kansas GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES 2024-A Dated July 02, 2024, Registration #0322-085-070224-84 7 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 June 13, 2024. Sincerely, Shauna Wake, M.B.A. Director of Fiscal Services Office of the Kansas State Treasurer cc Pam Jones Gilmore & Bell Pc G.C. 100 North Main, Suite 800 Wichita, KS 67202 REGISTERED NUMBER REGISTERED $ 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 OTHERWISEB:)r 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 SALIN~ CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2024-A Interest Rate: Maturity Date: REGISTERED OWNER: PRINCIPAL AMOUNT: Dated CUSIP: .Date: July 2, 2024 KNOW ALL PE~ONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas .Ethe "Issuer"), for v.;ilue received, hereby acknowledges itself to be indebted and promises to pay to the Registered-Owner shown above, or registered assigns, but solely from the source and in the manner herein specified, the Principal Amount shown above on the Maturity Date shown above, unless called for tedemption priqr to the Maturity Date, and to pay interest thereon at the Interest Rate per annum showJI~aJ:,ove (computed on the basis of a 360-day year of twelve 30-day months), from the Dated Date shown abov~. or from the most recent date to which interest has been paid or duly provided for, payable sem:iannuallx on April 1 and October 1 of each year, commencing April 1, 2025 (the "Interest Payment Dates"), untiltµe Principal Amount has been paid. Method an<J Place of Payment. The principal or redemption price of this Bond shall be paid at maturity or upon eadjer 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 "General Obligation Internal Improvement Bonds, Series 2024-A," aggregating the principal amount of $10,970,000 (the "Bonds") issued for the purposes set forth irvthe Ordinance of the Issuer authorizing the issuance of the Bonds and the Resolution of the Issuer prescribing the form and details of the Bonds (collectively the "Bond Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq., and K.S.A..12-ll0c~ all as amended, and all other provisions of the laws of the State of Kansas applicaqle thereto. General Obligations. The Bonds constitute general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the -property benefited by the construction of the Improvements and, if not so pajd, Jrpm ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangib~e property, real and personal, within the territorial limits of the Issuer. The balance of the priqcipal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territoriaUiinits of the is~uer. The JuB 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-Entl'.y Syste~. The Bonds, are being issued by means of a book-entry system with no physical distribution of bond certificates,t:<:r 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, registei;,ed in the nomine,(},name of the Securities Depository, is being issued and required to be deposited with the &ecurities Depository and immobilized in its custody. The book-entry system will evidebce 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 2 contained, payments of principal of, redemption premium, if any, and interest on this Bond shall be made in accordance with existing arrangements among the Issuer, the Bond Registrar and the Securities Depository. Transfer and Exchange. EXCEPT AS OTHERWISE PROVIDED IN THE BOND RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. This Bond may be transferred or exchanged, as provided in the Bond Resolution, only on the Bond Register kept for that purpose at the principal office oflbe 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 Authorizeµ Deno_pµnation of the same maturity and in the same aggregate principal amount shall be issued to the'transfe~e 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 ofthe ~onds and the cost of a reasonable supply of bond blanks. The Issuer and the Paying A~ent may deeni ang treat the person in whose name this Bond is registered on the Bond Register as the absol-l,lte owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price,hereofarid interest due hereon and for all other purposes. The Bonds are issued in fully registereclform in Authorized Denominations. Authentication. This Bond shall not be V;:l"lid QJ 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 Jhe Bond Regi~trar. IT IS HEREBY DECLARED AND CERT-IflED that.all acts, conditions, and things required to be done and to exist precedent to and· in the issuance of tp.is I}ond have been properly done and performed and do exist in due and regular form and manner as requked by the Constitution and laws of the State of Kansas, and that the total indebtednesS'-of the Issuer;. inducting this series of bonds, does not exceed any constitutional or statutory lim,itatfon. IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the manual, electronic or facsimile signatµre of its Mayc;,r and attested by the manual, electronic or facsimile signature of its Clerk, and its seal fo be affixed hereto or imprinted hereon. CITY OF SALINA, KANSAS ATTEST: 3 CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2024-A, of the City of Salina, Kansas, described in the within-mentioned Bond Resolution. Registration Date: _______ _ Office of the State Treasurer, Topeka, Kansas, as Bond Registrar and Paying Agent By ____________ _ Registration Number: 0322-085-070224-847 LEGAL OPINION The following is a true and correct copy,ofthe approvingJegal 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: Governing Body City of Salina, Kansas GILMORE & BELL, f.C. Aftomeys_at Law 100 N. Main Suite 800 Wichita, Kansas 67202 UBS Financial Services Inc. New York, New York Re: $10,9W,OOO General Obligation Internal Improvement Bonds, Series 2024-A, of th~ City of Salina, J(iµlsas, Dated July 2, 2024 We have act~d as Bond Counsel in connection with the issuance by the City of Salina, Kansas (the "lssuer"), of the abQYe-qaptioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 4 2. The Bonds are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds (including any original issue discount properly allocable to an owner of a Bond) is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements <;>f the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from, gross income for fe(ieral income tax purposes. The Issuer has covenanted to comply with all of thei.e'reqµireme:hts. Failure to comply with certain of these requirements may cause interest on the Bond~ i:o be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds have not been designated as "qualified tax-exempt obligations" for purposes of Code § 26?(b)(3}. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. • 4. The interest on the Bonds is exempt from income taxation by the State of Kansas. We express no opinion regarding the accuracy, co,mpleteness or sufficiency of the Official Statement or other offering material relating to the Bopds ( exceptto the extent,. if any, stated in the Official Statement). Further, we express no opinion regarding t~ consequences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the)3onds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium an(i other similar laws affecting creditors' rights generally and by equitable principles, whet~er considered at law or in equity. This opinion i$ given a,s of its date, and we assume no obligation to revise or supplement this opinion to re,flect any fa¢ts or circup:istances that may come to our attention or any changes in law that may occur after the date of this opinion. GILMORE & BELL, P.C. 5 BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of$ _____ , standing in the name of the undersigned on the books of the Bond Registrar. Tbe 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 Socifµ,Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear-qn' the face of Certificate) Sig~ature guarantee: By _______________ _ CERTIFICATE OF CLERK STATE OF KANSAS, ) ) ss. COUNTY OF 'SALINE ) The undersigned, Clerk of the City of Salina, Kansas, does hereby certify that the within Bond has been duly registered in my office according to law as of July 2, 2024. WITNESS my hand and official seal. ¢~» \?. j~ '~, 'V; "! By: 6 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. 7 Printer's Certificate This will certify that Gilmore & Bell, P.C., Wichita, Kansas has printed and delivered $10,970,000 in registered Bonds for: UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The printed Bonds were delivered as eighteen (18) pieces numbered R-1 to R-18 and six (6) BLANK pieces for re-registration. We also delivered two (2) SPECIMEN bonds clearly marked as such. All spoilage and press proofs needed in our manufacture have been destroyed. Gilmore & Bell, P.C. AGREEMENT BETWEEN ISSUER AND AGENT $10,970,000 THE CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 THIS AGREEMENT, dated as of July 2, 2024, between the City of Salina, Kansas, a municipality (the "Issuer"), and the State Treasurer of Kansas, as Agent (the "Agent"). WHEREAS, for its lawful purposes, the Issuer has duly authorized the issue of the above- captioned bonds (the "Securities"), and the Issuer wishes the Agent to act as its Paying Agent, Bond Registrar, and Transfer Agent for the Securities: Now, therefore, it is hereby agreed as follows: I. APPOINTMENT Issuer hereby appoints or has heretofore appointed the State Treasurer of Kansas to act as Paying Agent, Bond Registrar and Transfer Agent for the Securities. The State Treasurer of Kansas hereby accepts its appointment as the Paying Agent, Bond Registrar and Transfer Agent. II. BASIC DUTIES A. Issuer or its duly authorized representative agrees to furnish Agent the name(s) and address( es) of the initial registered owner( s) of the Securities together with such registered owners' tax identification (social security) number(s), the maturity date(s), denornination(s) and interest rate(s) for each Security. B. Agent shall manually authenticate the originally issued Securities upon the written order of one or more authorized officers of Issuer. Thereafter, Agent shall manually authenticate all Securities resulting from transfer or exchange of Securities. C. Agent shall maintain an office in the City of Topeka, Kansas, where Securities may be presented for registration, transfer and exchange; and shall also maintain an office in the City of Topeka, Kansas, where Securities may be presented for payment. Agent shall keep a register of the Securities and their transfer and exchange. D. Agent may rely upon any document believed by it to be genuine and to have been signed or presented by the proper person. Agent need not investigate any fact or matter stated in the document. Agent undertakes to perform such duties and only such duties set forth in K.S.A. 10-620 et seq., except as specifically provided in this Agreement. E. Agent shall notify the owners of the Securities upon default in payment of principal or interest on the Securities and the Agent shall have no duties or responsibilities thereafter. 600596.20255\CLOSING DOCS III. COMPENSATION Issuer covenants and agrees to pay to Agent, as reasonable compensation for the services provided as Agent, an initial setup fee of $300, a registration fee of $30, plus a fee of $5,000, which is based on "Book-entry Only" Securities. This amount will be due at the time of registration unless such fee is to be paid from the proceeds of the bond issue in which case Issuer agrees to pay such fee within two (2) business days of the closing of the bond issue. In addition to the aforementioned fee, Issuer covenants and agrees to pay to Agent the fee as stated and required by KS.A. 10-505 for performing the duties of paying the principal of the Securities. IV. STANDARD OF PERFORMANCE Issuer shall provide, or shall cause to be provided to Agent, a designation of whether its Securities are to be issued in certificated or uncertificated form, or both. A. STATEMENTS OF OWNERSHIP Agent agrees to provide Statements of Ownership to the owner of uncertificated Securities. Such Statements shall be in accordance with the standards set forth by the Attorney General. All Statements shall be issued in the denominations of $1,000 or $5,000 or integral multiples thereof except for one additional Security in another denomination, which additional Security shall mature in the initial maturity year of the series of the Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equalling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Agent shall at all times maintain an adequate supply of Statements of Ownership for any anticipated transfers or exchanges of the Statements. B. CERTIFICATED SECURITIES All certificated Securities issued by Issuer under this Agreement shall be in accordance with the standards set forth by the Attorney General and unless otherwise authorized by Agent, the principal thereof shall be payable only upon surrender of the Security to Agent. All certificates shall be issued in the denomination of $1,000 or $5,000 or integral multiples thereof except one authorized Security in another denomination which additional Security shall mature in the initial maturity year of the series of Securities. Interest is computed on the basis of $1,000 or $5,000 units and in all transactions involving the payment of interest, fractions of a cent equaling or exceeding five mills shall be regarded as one cent; fractions of a cent less than five mills shall be disregarded. Issuer shall at Issuer's cost provide Agent with an adequate supply of certificates for any anticipated transfers or exchanges of the certificates. Issuer shall be responsible for the payment of the printing or other expenses for such certificates. Issuer shall be responsible for obtaining appropriate "CUSIP" number( s) and shall notify Agent of each number( s) prior to the issuance of the applicable Securities. C. INTEREST CALCULATIONS Agent shall calculate interest on the basis of $1,000 and $5,000 units, or in the case of one odd denomination, calculate the unit separately. Each intermediate unit calculation is first 600596.20255\CLOSING DOCS 2 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 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. 600596.20255\CLOSING DOCS 3 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. Mandatory Redemption. If any Securities are subject to mandatory redemption in accordance with their terms of the Bond Resolution, no additional notice is required to be given to the Agent to exercise the mandatory redemption. The Agent will provide notice of such redemption utilizing substantially the form of Notice of Mandatory Redemption attached hereto as Appendix I. Notice of Redemption. Agent shall then notify, by ordinary mail, the owner of such Securities to be so redeemed. Agent shall select the Securities to be so redeemed. Agent shall not be required to exchange or register a transfer of any Security for a period of fifteen (15) days preceding the date notice is to be provided to the Security owners for the purpose of selecting Securities on a partial redemption. Further, in the event notice is given to Agent for a complete redemption of the Issue according to the terms of the Bond Resolution, Agent shall not be required to transfer or exchange any Security beginning on the day following the 15th day preceding the date set for redemption. I. MISCELLANEOUS Agent hereby acknowledges receipt of numbered Securities of Issuer (in a number equal to one Security for each maturity) for registration and exchange, and shall safeguard any "blank" Securities held for purpose of exchange or transfer. J. REPORTS Agent shall provide Issuer an annual report of the activity with respect to the issuance of Securities upon written request of Issuer. K. CONSTRUCTION This Agreement shall be construed in accordance with the laws of the State of Kansas and also the Bond Resolution authorizing the issuance of the Securities. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\CLOSING DOCS 4 (SEAL) ATTEST: By ~ Clerk (S 600596.20255\CLOSJNG DOCS CITY OF SALINA, KANSAS OFFICE OF THE TREASURER OF THE STATE OF KANSAS By~~~~ 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. 600596.20255\CLOSING DOCS A-1 APPENDIX I NOTICE OF CALL FOR MANDATORY REDEMPTION TO THE OWNERS OF CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A, DATED JULY 2, 2024 Notice is hereby given that pursuant to the provisions of Article III of Resolution No. 24-8217 (the "Bond Resolution") of the City of Salina, Kansas (the "Issuer") that a portion of the above-mentioned bonds (the "Bonds") scheduled to mature in [2042][2044] (the "Called Bonds"), have been called for mandatory redemption and payment on October 1, [ __ ] (the "Redemption Date"), at the principal office of the Treasurer of the State of Kansas (the "Bond Registrar and Paying Agent"). Maturity Date (October 1) Principal Amount Interest Rate CUSIP Number On the Redemption Date there shall become due and payable, upon the presentation and surrender of each such Called Bond, the redemption price thereof equal to 100% of the principal amount thereof together with interest accrued to the Redemption Date. Bonds issued in denominations of greater than $5,000 may be subject to partial redemption. In such event, a new certificate or certificates will be issued to the Owner in the principal amount to remain Outstanding. Interest shall cease to accrue on the Called Bonds so called for redemption from and after the Redemption Date provided such funds for redemption are on deposit with the Paying Agent. 600596.20255\CLOSING DOCS I-1 CITY OF SALINA, KANSAS By Treasurer of the State of Kansas, Topeka, Kansas The Depository Trust Company A subsidiary of the Depository Trust & Clearing Corporation BLANKET ISSUER LETTER OF REPRESENTATIONS (To be completed by Issuer and Co-fssuer(s), if applicable) CITY OF SALINA, KANSAS (:'linmc tlf Js~uct and Co-J5suer(s), if applicable) The Depository Trust Company 1830 l Bermuda Green Drive Tampa, FL 3364 7 Attention: Underwriting Department Ladies and Gentlemen: 04/14/2021 (Date) I This Jetter sets forth our understanding with respect to all issues (the "Securities") that Issuer shall request to be.made eligible for deposit by TI1e Depository Trust Company ("DTC"). Issuer is: (Note; IHY@r §hPII ceoceseot one and cross out &be other,} ~~~ [formed under the laws ot],._ ____ th_e~S_ta_t_e_o_f_K_a_n_s_as ____ _ To induce DTC to accept the Securities as eligible for deposit at D TC, and to act in accordance with DTC's Rules with respect to the Securities, Issuer represents to DTC that issuer will c-0mply with the requirements stated in DTC's Operational Arrangements, as they may be amended from time to time. Note: Schedule A contains statements that DTC believes accurately describe DTC, the method of effecting book-entry transfers of securities distributed through DTC, and certain tdated matten;. Very truly yours, n~~ JoVonna A. Rutherford, City Clerk (Prin1 N~me) 300 West Ash (Strr~l Address) Salina, Kansas, USA 67402 ICil)') (S1atcJ {Coun1ry) (Zip Code) (785) 309-5735 --- ____ jovonna.rutherford@salina.org if:•m~il BLOR 06,2013 SCHEDULE A (To Blanket Jssuer Letter of Representations) SAMPLE OFFERING DOCUMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE (Prepared by DTC--bracketed material may be applicable only to certain issues) 1. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for [each issue of) the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest secwities depository, is a limited-purpose trust company organizc;d under the New York Banking Law, a "ban king organization" within the meaning oft he New York Banking Law, a member oft he Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "cl earing agency" registered pursuant to the pro vi si_ons of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over l 00 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing cmporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC'). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationshlp with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on OTC 's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name ofDTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. BLOR 06-2013 SCHEDULE A (To Blanket Jssuer Letter of Representations) S. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. (Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities m ay wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] [6. Redemption notices shall be sent to DTC. If Jess than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail infonnation from Issuer or Agent, on payable date in accordance with their respective holdings shown on DT C's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. ( or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct . Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. (9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Ten der/Remarketing] Agent, and shall effect delivery of such Securities . by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account.] 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates 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 Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. BLOR 06-2013 MOODY'S RATINGS CREDIT OPINION 3 June 2024 Contacts Heather Guss +1.214.979.6881 AVP-Analyst heather.guss@moodys.com Gera M. McGuire + 1.214.979.6850 Associate /vlanaging Director gera.mcguire@moodys.com CLIENT SERVICES Americas Asia Pacific Japan EM~A 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-5454 City of Salina, KS Update to credit analysis Summary U.S. Public Finance The Cit v of Salina KS (Aa3) benefits from its role as the regional economic hub of north central Kansas and strong reserves and liquidity, offset by below median economic metrics. Credit strengths » Regional economic hub of north central Kansas » Strong reserves and liquidity Credit challenges » Economic metrics that fall below similarly rated Aa peers Rating outlook Moody's does not assign outlooks to local government issuers with this amount of debt outstanding. Factors that could lead to an upgrade » Significant improvement in resident income and full value per capita » Positive economic growth ratio » Decline in the long-term liabilities ratio to below 200% Factors that could lead to a downgrade )) Economic contraction and or declines in resident income or full value per capita )) Trend of significant declines in reserves to levels below Aa medians )) Growth in long-term liabilities to above 350% or fixed costs to above 20% Moody's Ratings U.S. Public Finance Key indicators Exhibit 1 Salina {City of) KS 2019 2020 2021 2022 Aa Medians Economy Resident income ratio (%) 91.0% 87.3% 88.1% 88.6% 115.2% Full Value {$000) $3,294,116 $3,326,522 $3,392,139 $3,705,559 $2,753,876 Population 46,998 46,706 46,896 46,734 22,803 Full value per capita($) $70,091 $71,223 $72,333 $79,290 N/A Annual Growth in Real GDP -1.5% -5.7% 6.6% 2.5% 4.9% Financial Performance Revenue ($000) $87,099 $89,967 $162,025 $102,717 $49,930 Available fund balance ($000) $60,684 $76,594 $92,136 $107,985 $27,007 Net unrestricted cash ($000) $66,363 $81,122 $165,286 $180,109 $36,277 Available fund balance ratio (%) ---69.7% 85.1% 56.9% 105.1% 54.0% Liquidity ratio(%) 76.2% 90.2% 1020% 175.3% 75.9% Leverage Debt ($000) $118,771 $133,969 $141,666 $137,478 $35,831 Adjusted net pension liabilities ($000) $106,016 $127,925 $108,821 $87,479 $55,367 Adjusted net OPEB liabilities ($000) $4,275 $4,279 $4,297 $3,383 $5,248 Other long-term liabilities ($000) $5,492 $5,592 $5,823 $4,374 $1,716 Long-term liabilities ratio (%) 269.3% 302.1% 160.8% 226.6% 244.9% Fixed costs Implied debt service ($000) $8,112 $8,660 $9,594 $9,936 $2,465 Pension tread water contribution ($000) $3,307 $3,364 $3,787 $3,057 $1,563 OPEB contributions ($000) $299 $299 $258 $267 $178 Implied cost of other long-term liabilities ($000) $403 $400 $400 $408 $116 Fixed-costs ratio(%) 13.9% 14.1% 8.7% 13.3% 10.7% For definitions of the metrics in the table above please refer to the US Cities a.!)di:ounties ;,1ethodolo~ or see the Glossary in the Appendix below. Metrics represented as N/A indicate the data were not available at the time of publication. The medians come from our most recently published us_gties and Counties Median RepQ11. The real GDP annual growth metric cited above is for the Saline County, Kansas Metropolitan Statistical Area. Sources: US Census Bureau, Salina {City of) KS's financial statements and Moody's Ratings, US Bureau of Economic Analysis Profile The city of Salina is in north central Kansas (Aa2 stable), approximately 95 miles north of Wichita (Aa2 stable), near the geographic center of the contiguous United States. The city's population is approximately 46,000. The city provides services such as public safety (police and fire), street maintenance, water and sewer treatment, culture and recreation, and public health services. Detailed credit considerations Salina will remain economic center of north central Kansas and will benefit from downtown redevelopment and the recent manufacturing expansion from Schwan's Company, Kubota Tractor Corporation and 1 Vision Aviation. These expansions are driving a need for residential housing, both single-family and multi-family. Conservative budgeting and recently strong sales and property tax revenue have contributed to positive financial performance over the past few years, which has improved available fund balance to over 100% of revenue. Credit challenges include below median resident income and full value per capita. The city has future debt plans but revenue growth should keep the leverage metrics manageable. Unaudited results for fiscal 2023 (ending Dec. 31) show about a $1.3 million decline in combined cash balances. The general fund again posted a strong surplus of close to $7 million, but declines in the sales tax capita, solid waste, water and wastewater, and gas tax funds contributed to the overall deficit. In the water and wastewater fund, the city has been modestly increasing utility fees for the past serval years to build up that fund balance to support growing debt service. The water and wastewater fund will continue to show declines for the next several years until the target balance of $5 million is reached. Almost five months into fiscal 2024, management reports revenue is slightly below budget but there are expenditure savings (due in part to lower personnel costs). A general fund surplus fh1s publicatton does not announce a credit rating attion. For any credit ratings referentE'<l tn this publication, please see the issuer/deal page on https.//ratmgs moodys com for the most updated credit rating action inforrnat,on and rating history 3 June 2024 City cf Salina, KS, Update to credit analysis Moody's Ratings U.S. Public Finance is projected at fiscal year-end. Leverage metrics remain in line with the Aa medians, and should remain manageable given continued revenue growth. The city is developing a multi-year capital improvement plan and plans to issue about $35 million over the next three years. Economy Exhibit 2 Resident Income Median household income ($) Resident income ratio(%) Aa median resident income ratio (%) 60,000 40,000 20,000 2016 2017 2018 2019 2020 2021 Source: Moody's Ratings Financial operations Exhibit 3 Fund Balance General fund Other governmental funds Internal service funds Business-type activities Available fund balance ratio(%) Aa median available fund balance ratio (%) $100,000 $50,000 $0 2019 2020 2021 Source: Moody's Ratings 3 June 2024 2022 2022 120 110 100 90 100 80 60 City of Salina, KS: Update to credit analysis 4 Moody's Ratings Exhibit 4 Cash General fund Other governmental funds Aa median liquidity ratio (%) $200,000 $150,000 $100,000 $50,000 U.S. Public Finance Internal service funds Business-type activities Liquidity ratio(%) 150 100 $0 ------------------------------------- 2019 2020 2021 2022 Source: Moody's Ratings Leverage Exhibits Total Primary Government -Long Term Liabilities Governmental Debt Business-Type Activity Debt Adjusted net pension liabilities Adjusted net other post-employment liabilities Aa median long-term liabilities ratio (%) $200,000 $100,000 Other long-term liabilities Long-term liabilities ratio(%) $0 ------------------------------------ 2019 2020 2021 2022 Source: Moody's Ratings 300 250 200 3 June 2024 City of Salina, KS: Update to credit analysis Moody's Ratings ESG considerations Salina {City of) KS' ESG credit impact score is CIS-2 Exhibit 6 ESG credit impact score CIS-2 ESG considerations do not have a material impact on the current rating. Source: fvloody's Ratings NEGATIVE IMPACT U.S. Public Finance POSITIVE IMPACT Salina's ESG Credit Impact Score of CIS-2 indicates that ESG considerations are not material to the rating. The city has relatively low exposure to environmental, social and governance risks. Exhibit 7 ESG issuer profile scores ENVIRONMENTAL SOCIAL GOVERNANCE E-2 S-2 G-2 ----.:r.-- Source: fvloody's Ratings Environmental The city's environmental issuer profile score is E-2. The city has relatively low exposure to environmental risks across all categories, including physical climate, carbon transition, water management, natural capital, and waste and pollution. Social The city's social issuer profile score is S-2. Population has been stable and resident income is slightly below the national median. Residents have good access to housing and basic services . Governance The city's governance issuer profile score is G-2. The institutional structure of Kansas cities is strong, and the city has good budget management and policy credibility and effectiveness. Its transparency and disclosure is similar to most cities. ESG Issuer Profile Scores and Credit Impact Scores for the rated entity/transaction are available on Moodys.com. In order to view the latest scores, please click here to go to the landing page for the entity/transaction on MDC and view the ESG Scores section. 3 June 2024 City of Salina, KS: Update to credit analysis 6 Moody's Ratings U.S. Public Finance Rating methodology and scorecard factors The US Cities and Counties Methodology includes a scorecard, which summarizes the rating factors generally most important to city and county credit profiles. Because the scorecard is a summary, and may not include every consideration in the credit analysis for a specific issuer, a scorecard-indicated outcome may or may not map closely to the actual rating assigned. Exhibit 8 Salina (City of) KS Measure Weight Score Economy Resident income ratio 88.6% 10.0% A Full value per capita 84,257 10.0% A Economic growth metric -1.8% 10.0% A Financial Performance Available fund balance ratio 105.1% 20.0% Aaa Liquidity ratio 175.3% 10.0% Aaa Institutional Framework Institutional Framework Aa 10.0% Aa Leverage Long-term liabilities ratio 226.6% 20.0% A Fixed-costs ratio 13.3% 10.0% Aa Notching factors No notchings applied Scorecard-Indicated Outcome Aa3 Assigned Rating Aa3 The Economic Growth metric cited above compares the five-year CAGR of real GDP for Saline County, Kansas Metropolitan Statistical Area to the five-year CAGR of real GDP for the US. Sources: US Census Bureau, Salina (City of} KS's financial statements and Moody's Ratings 3 June 2024 City of Salina, KS: Update to credit analysis Moody's Ratings U.S. Public Finance Appendix Exhibit 9 Key Indicators Glossary _____ D_e_fi_n_it_io_n ______________________ Typical Source* Economy Resident income ratio Full value Population Full value per capita Economic growth metric Financial performance Revenue Available fund balance Net unrestricted cash Available fund balance ratio Liquidity ratio Median Household Income (MHI) for the city or county, adjusted for MHI: US Census Bureau -American Regional Price Parity (RPP), as a% of the US MHI Community Survey 5-Year Estimates RPP: US Bureau of Economic Analysis Estimated market value of taxable property in the city or county State repositories; audited financial statements; continuing disclosures Population of the city or county US Census Bureau -American Community Survey 5-Year Estimates Full value/ population Five year CAGR of real GDP for Metropolitan Statistical Area or county minus the five-year CAGR of real GDP for the US Real GDP: US Bureau of Economic Analysis Sum of revenue from total governmental funds, operating and non-Audited financial statements operating revenue from total business-type activities, and non- operating revenue from internal services funds, excluding transfers and one-time revenue, e.g., bond proceeds or capital contributions Sum of all fund balances that are classified as unassigned, assigned or Audited financial statements committed in the total governmental funds, plus unrestricted current assets minus current liabilities from the city's or county's business- type activities and internal services funds Sum of unrestricted cash in governmental activities, business type Audited financial statements activities and internal services fund, net of short-term debt Available fund balance (including net current assets from business- type activities and internal services funds)/ Revenue Net unrestricted cash/ Revenue Levera~g~e--------------~-~---~~-~~~--c---~----,-~~~-Debt Outstanding long-term bonds and all other forms of long-term debt Audited financial statements; official Adjusted net pension liabilities (ANPL) Adjusted net OPEB liabilities (ANOL) Other long-term liabilities (OLTL) Long-term liabilities ratio Fixed costs Implied debt service Pension tread water contribution OPEB contribution Implied cost of OLTL Fixed-costs ratio across the governmental and business-type activities, including debt statements of another entity for which it has provided a guarantee disclosed in its financial statements Total primary government's pension liabilities adjusted by Moody's to Audited financial statements; Moody's standardize the discount rate used to compute the present value of Investors Service accrued benefits Total primary government's net other post-employment benefit (OPEB) liabilities adjusted by Moody's to standardize the discount rate used to compute the present value of accrued benefits Miscellaneous long-term liabilities reported under the governmental and business-type activities entries Debt+ ANPL + ANOL + OLTL / Revenue Annual cost to amortize city or county's long-term debt over 20 years with level payments Pension contribution necessary to prevent reported unfunded pension liabilities from growing, year over year, in nominal dollars, if all actuarial assumptions are met City or county's actual contribution in a given period Audited financial statements; Moody's Investors Service Audited financial statements Audited financial statements; official statements; Moody's Investors Service Audited financial statements; Moody's Investors Service Audited financial statements Annual cost to amortize city or county's other long-term liabilities Audited financial statements; Moody's over 20 years with level payments Investors Service Implied debt service+ Pension tread water+ OPEB contributions+ Implied cost of OLTL / Revenue *Note: If typical data source is not available then alternative sources or proxy data may be considered. 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REPORT NUMBER 1410406 3 June 2024 City of Salina, KS: Update to credit analysis 9 Moody's Ratings CLIENT SERVICES Americas Asia Pacific Japan EMEA 3 June 2024 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-5454 U.S. Public Finance City of Salina, KS: Update to crtdit analysis CLOSING CERTIFICATE $10,970,000 CITY OF SALINA, KANSAS Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The undersigned Mayor and Clerk of the City of Salina, Kansas (the "Issuer"), make this Certificate for inclusion in the transcript of and as a part of the proceedings authorizing and providing for the issuance of the above described bonds (the "Bonds"); and certify as of July 2, 2024 (the "Issue Date"), as follows: 1. Meaning of Words and Terms. Capitalized words and terms used in this Certificate, unless otherwise defined in this Certificate or the context requires otherwise, have the same meanings ascribed to such words and terms in the Bond Resolution (defined below) authorizing the Bonds. 2. Transcript of Proceedings. The transcript of proceedings relating to the authorization and issuance of the Bonds (the "Transcript"), furnished to the Purchaser of the Bonds, is to the best of our knowledge, information and belief full and complete; none of such proceedings have been modified, amended or repealed, except as might be shown in the Transcript; and the facts stated in the Transcript still exist. In each instance where copies appear in the Transcript, such copies are true and correct duplicates of the original instruments now on file with the Clerk. All certifications made by the Issuer in the Transcript Certificate dated June 10, 2024 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. 10-427 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12- ll0c, as amended, Ordinance No. 24-11210 and Resolution No. 24-8217 of the Issuer duly adopted by the Governing Body of the Issuer on June 10, 2024 (collectively the "Bond Resolution") for the purpose of paying costs of issuance paying costs of issuance and: (a) paying a portion of the costs of certain internal improvements and acquisition of certain equipment (the "Improvements"); and (b) Refunding, pursuant to K.S.A. 10-427 et seq., a portion of the October 1, 2024, interest payment (the "Interest Payment") on the Issuer's General Obligation Internal Improvement Bonds, Series 2016-A. 4. Security for the Bonds. The Bonds are general obligations of the Issuer payable in part from special assessments levied upon the property benefited by the Improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, with the balance payable, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are pledged under the Bond Resolution to the payment of the principal of and interest on the 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 600596.20255\CLOSING DOCS due by, to the extent necessary, by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. 5. Sale of Bonds. The Bonds have been sold at rates not in excess of the limitations set forth in K.S.A. 10-1009. The Notice of Bond Sale dated May 13, 2024 and included in the Transcript constitutes a full true and correct copy thereof. A copy of such Notice of Bond Sale and Preliminary Official Statement was sent to prospective purchasers of the Bonds, and to all other persons and firms requesting copies of such Notice of Bond Sale and Preliminary Official Statement. 6. Official Statement. The Official Statement contained in the Transcript constitutes a full, true and correct copy of the Official Statement relating to the Bonds. To the best of our knowledge, the Official Statement, other than the sections entitled "The Depository Trust Company," "Ratings," "Legal Matters," "Tax Matters," "Underwriting," and Appendices C and D, about which the Issuer expresses no opinion, is true in all material respects, and does not contain any untrue statement of a material fact or does not omit to state a material fact, necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As of this date there has been no material adverse change in the financial condition or the financial affairs of the Issuer since the date of the Official Statement. No other event has occurred which is necessary to be disclosed in the Official Statement in order to make the statements therein not misleading in any material respect as of the date of this Certificate. The Issuer has previously caused to be delivered to the Purchaser copies of the Official Statement. 7. Continuing Disclosure Undertaking. The Issuer has heretofore executed a Continuing Disclosure Undertaking (the "Disclosure Undertaking"), wherein the Issuer has covenanted to disseminate such information as is required in accordance with the provisions of the SEC Rule and the Disclosure Undertaking. In the Bond Resolution, the Issuer has covenanted to apply the provisions of the Disclosure Undertaking to the Bonds. A copy of the Disclosure Undertaking is contained in the Transcript. 8. Non-Litigation. There is no controversy, action, suit, proceeding, or to the best of our knowledge, any inquiry or investigation at law or in equity or before or by any public board or body pending or, to the best or our knowledge, threatened against or affecting the Issuer, its officers or its property, or, to the best of our knowledge, any basis therefor questioning, disputing or affecting in any way: (a) the legal organization of the Issuer or its boundaries; (b) the right or title of any of its officers to their respective offices; ( c) the legality of any official act shown to have been done in the Transcript; ( d) the constitutionality or validity of the indebtedness represented by the Bonds shown to be authorized in the Transcript; ( e) the validity of the Bonds, or any of the proceedings had in relation to the authorization, issuance or sale thereof; (f) the levy and collection of an ad valorem property tax to pay the principal of and interest on the Bonds; or (g) the federal or state tax-exempt status of the interest on the Bonds; wherein any unfavorable decision, ruling or finding would adversely affect the Issuer, the transactions contemplated by the Bond Resolution or the Official Statement, or the validity or enforceability of the Bonds, which are not disclosed in the final Official Statement. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\CLOSING DOCS 2 WITNESS our signatures and the seal of the Issuer. yor (SEAL) ~ 600596.20255\CLOSING DOCS (Signature Page to Closing Certificate) 600596.20255\FTC FEDERAL TAX CERTIFICATE Dated as of July 2, 2024 OF THE CITY OF SALINA, KANSAS $10,970,000 Gilmore & Bell, P.C. 06/10/2024 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A Section 1.01 Section 2.01 Section 2.02 Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3.05 Section 3.06 Section 3.07 Section 3.08 Section 3.09 Section 3.10 Section 3.11 Section 3.12 Section 3.13 Section 3.14 Section 4.01 Section 4.02 Section 4.03 Section 4.04 Section 4.05 Section 4.06 600596.20255\FTC FEDERAL TAX CERTIFICATE TABLE OF CONTENTS ARTICLE I DEFINITIONS Definitions of Words and Terms ................................................................................... 1 ARTICLEIJ GENERAL REPRESENTATIONS AND COVENANTS Representations and Covenants of the Issuer. ............................................................... 6 Continuing Application of Representations and Covenants .......................................... 9 ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS General .......................................................................................................................... 9 Reasonable Expectations ............................................................................................... 9 Purpose of Financing ................................................................................................... 10 Funds and Accounts .................................................................................................... 10 Amount and Use of Bond Proceeds and Other Money-.............................................. 10 Multipurpose Issue ...................................................................................................... 10 No Refunding .............................................................................................................. 11 Completion of Financed Improvements ...................................................................... 11 Sinking Funds .............................................................................................................. 11 Reserve, Replacement and Pledged Funds .................................................................. 11 Purpose Investment Yield ............................................................................................ 11 Issue Price and Bond Yield ......................................................................................... 11 Miscellaneous Arbitrage Matters ................................................................................ 12 Conclusion ................................................................................................................... 12 ARTICLE IV TAX COMPLIANCE POLICIES AND PROCEDURES General ........................................................................................................................ 12 Record Keeping; Use of Bond Proceeds and Use of Financed Improvements ........... 13 Restrictions on Investment Yield ................................................................................ 13 Procedures for Establishing Fair Market Value of Investments .................................. 14 Certain Gross Proceeds Exempt from the Rebate Requirement. ................................. 16 Computation and Payment of Arbitrage Rebate .......................................................... 18 1 Section 5.01 Section 5.02 Section 5.03 Section 5.04 Section 5.05 Section 5.06 Section 5.07 Section 5.08 Section 5.09 ARTICLEV MISCELLANEOUS PROVISIONS Term of Tax Certificate ............................................................................................... 19 Amendments ................................................................................................................ 19 Advice from Bond Counsel. ........................................................................................ 19 Reliance ....................................................................................................................... 19 Severability .................................................................................................................. 19 Benefit of Certificate ................................................................................................... 20 Default, Breach and Enforcement. .............................................................................. 20 Governing Law ............................................... :····························································20 Electronic Transactions ............................................................................................... 20 LIST OF EXHIBITS TO FEDERAL TAX CERTIFICATE A. IRS FORM 8038-G Evidence of filing B. RECEIPT FOR PURCHASE PRICE C. RECEIPT AND REPRESENTATION C-1. CERTIFICATE OF MUNICIPAL ADVISOR D. DESCRIPTION OF PROPERTY COMPRISING THE FINANCED IMPROVEMENTS AND LIST OF REIMBURSEMENT EXPENDITURES E. SAMPLE ANNUAL COMPLIANCE CHECKLIST Schedule 1 Debt Service Schedule and Proof of Yield * * * 600596.20255\FTC 11 FEDERAL TAX CERTIFICATE THIS FEDERAL TAX CERTIFICATE (the "Tax Certificate") is executed as of July 2, 2024 (the "Issue Date"), by the City of Salina, Kansas (the "Issuer"). RECITALS 1. This Tax Certificate is being executed and delivered in connection with the issuance by the Issuer of $10,970,000 principal amount of General Obligation Internal Improvement Bonds, Series 2024-A (the "Bonds"), under the Bond Resolution (as herein defined), for the purposes described in this Tax Certificate and in the Bond Resolution. 2. The Internal Revenue Code of 1986, as amended (the "Code"), and the applicable Regulations and rulings issued by the U.S. Treasury Department (the "Regulations"), impose certain limitations on the uses and investment of the Bond proceeds and of certain other money relating to the Bonds and set forth the conditions under which the interest on the Bonds will be excluded from gross income for federal income tax purposes. 3. The Issuer is executing this Tax Certificate in order to set forth certain facts, covenants, representations, and expectations relating to the use of Bond proceeds and the property financed or refinanced with those proceeds and the investment of the Bond proceeds and of certain other related money, in order to establish and maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes and to provide guidance for complying with the arbitrage rebate provisions of Code§ 148(f). 4. The Issuer adopted a Tax Compliance Procedure (as defined below) for the purpose of setting out general procedures for the Issuer to continuously monitor and comply with the federal income tax requirements set out in the Code and the Regulations. 5. This Tax Certificate is entered into as required by the Tax Compliance Procedure to set out specific tax compliance procedures applicable to the Bonds. NOW, THEREFORE, in consideration of the foregoing and the mutual representations, covenants and agreements set forth in this Tax Certificate, the Issuer represents, covenants and agrees as follows: ARTICLE I DEFINITIONS Section 1.01 Definitions of Words and Terms. Except as otherwise provided in this Tax Certificate or unless the context otherwise requires, capitalized words and terms used in this Tax Certificate have the same meanings as set forth in the Bond Resolution, and certain other words and phrases have the meanings assigned in Code§§ 103, 141-150 and the Regulations. The following words and terms used in this Tax Certificate have the following meanings: "Adjusted Gross Proceeds" means the Gross Proceeds of the Bonds reduced by amounts: (a) in a Bona Fide Debt Service Fund or a reasonably required reserve or replacement fund; (b) that as of the 600596.20255\FTC Issue Date, are not expected to be Gross Proceeds, but which arise after the end of the applicable spending period; and ( c) representing grant repayments or sale or Investment proceeds of any purpose Investment. "Annual Compliance Checklist" means a checklist for each of the Financed Improvements designed to measure compliance with the requirements of this Tax Certificate and the Tax Compliance Procedure after the Issue Date as further described in Section 4.02 and substantially in the form attached as Exhibit E. "Available Construction Proceeds" means the sale proceeds of the Bonds, increased by: (a) Investment earnings on the sale proceeds; (b) earnings on amounts in a reasonably required reserve or replacement fund allocable to the Bonds but not funded from the Bonds; and (c) earnings on such earnings, reduced by sale proceeds (1) in any reasonably required reserve fund or (2) used to pay issuance costs of the Bonds. But Available Construction Proceeds do not include Investment earnings on amounts in a reasonably required reserve or replacement fund after the earlier of: (a) the second anniversary of the Issue Date; or (b) the date the Financed Improvement are substantially completed. "Bona Fide Debt Service Fund" means a fund, which may include Bond proceeds, that: (a) is used primarily to achieve a proper matching of revenues with principal and interest payments within each Bond Year; and (b) is depleted at least once each Bond Year, except for a reasonable carryover amount not to exceed the greater of (1) the earnings on the fund for the immediately preceding Bond Year, or (2) one-twelfth of the principal and interest payments on the Bonds for the immediately preceding Bond Year. "Bond" or "Bonds" means any bond or bonds described in the recitals, authenticated and delivered under the Bond Resolution. "Bond Compliance Officer'' means the Issuer's Finance Director or other person named in the Tax Compliance Procedure. "Bond Counsel" means Gilmore & Bell, P.C., or other firm of nationally recognized bond counsel acceptable to the Issuer. "Bond Resolution" means Ordinance No. 24-11210 and Resolution No. 24-8217 of the Issuer duly adopted by the governing body of the Issuer on June 10, 2024, as originally executed by the Issuer, as amended and supplemented in accordance with the provisions of the Bond Resolution. "Bond Year" means each one-year period (or shorter period for the first Bond Year) ending October 1 or another one-year period selected by the Issuer. "Code" means the Internal Revenue Code of 1986, as amended. "Computation Date" means each date on which arbitrage rebate for the Bonds is computed. The Issuer may treat any date as a Computation Date, subject to the following limits: (a) The first rebate installment payment must be made for a Computation Date not later than 5 years after the Issue Date; (b) Each subsequent rebate installment payment must be made for a Computation Date not later than 5 years after the previous Computation Date for which an installment payment was made; and 600596.20255\FTC 2 ( c) The date the last Bond is discharged is the final Computation Date. The Issuer selects July 1, 2029, as the first Computation Date but reserves the right to select a different date consistent with the Regulations. "Final Written Allocation" means the Final Written Allocation of expenditures prepared by the Bond Compliance Officer in accordance with the Tax Compliance Procedure and Section 4.02(b) of this Tax Certificate. "Financed Improvements" means the portion of the Improvements financed or refinanced with the proceeds of the Bonds as described in the Bond Resolution and on Exhibit D. "Gross Proceeds" means (a) sale proceeds (any amounts actually or constructively received by the Issuer from the sale of the Bonds, including amounts used to pay underwriting discount or fees, but excluding pre-issuance accrued interest), (b) Investment proceeds (any amounts received from investing sale proceeds or other Investment proceeds), (c) any amounts held in a sinking fund for the Bonds, (d) any amounts held in a pledged fund or reserve fund for the Bonds, and (e) any other replacement proceeds. Specifically, the term Gross Proceeds includes (but is not limited to) amounts held in the following funds and accounts: (1) Improvement Fund. (2) Debt Service Account. (3) Redemption Fund (4) Rebate Fund (to the extent funded with sale proceeds or Investment proceeds of the Bonds). (5) Costs of Issuance Account. "Guaranteed Investment Contract" is any Investment with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate, including any agreement to supply Investments on two or more future dates (e.g., a forward supply contract). "Improvements" means all of the property acquired, developed, constructed, renovated, and equipped by the Issuer using Bond proceeds and other money contributed by the Issuer, as described on ExhibitD. "Investment" means any security, obligation, annuity contract or other investment-type property that is purchased directly with, or otherwise allocated to, Gross Proceeds. This term does not include a tax-exempt bond, except for "specified private activity bonds" as defined in Code § 57(a)(5)(C), but does include the investment element of most interest rate caps. "IRS" means the United States Internal Revenue Service. "Issue Date" means July 2, 2024. "Issuer'' means the City of Salina, Kansas, and its successors and assigns, or any body, agency or instrumentality of the State succeeding to or charged with the powers, duties and functions of the Issuer. 600596.20255\FTC 3 "Management Agreement" means a legal agreement defined in Regulations § 1.141-3(b) as a management, service, or incentive payment contract with an entity that provides services involving all or a portion of any function of the Financed Improvements, such as a contract to manage the entire Financed Improvements or a portion of the Financed Improvements. However, contracts for services that are solely incidental to the primary governmental function of the Financed Improvements (for example, contracts for janitorial, office equipment repair, billing, or similar services) are not treated as Management Agreements. ''Measurement Period" means, with respect to each item of property financed as part of the Financed Improvements, the period beginning on the later of: (a) the Issue Date, or (b) the date the property is placed in service and ending on or the earlier of (1) the final maturity date of the Bonds or (2) the expected economic useful life of the property. "Minor Portion" means the lesser of $100,000 or 5% of the sale proceeds of the Bonds. "Net Proceeds" means, when used in reference to the Bonds, the sale proceeds of the Bonds (excluding pre-issuance accrued interest), less any proceeds deposited in a reasonably required reserve or replacement fund, plus all Investment earnings on such sale proceeds. "Non-Qualified Use" means use of Bond proceeds or the Financed Improvements in a trade or business carried on by any Non-Qualified User. The rules set out in Regulations § 1.141-3 determine whether Bond proceeds or the Financed Improvements are "used" in a trade or business. Generally, ownership, a lease, or any other use that grants a Non-Qualified User a special legal right or entitlement with respect to the Financed Improvements, will constitute use under Regulations§ 1.141-3. "Non-Qualified User" means any person or entity other than a Qualified User. "Post-Issuance Tax Requirements" means those requirements related to the use of proceeds of the Bonds, the use of the Financed Improvements and the investment of Gross Proceeds after the Issue Date of the Bonds. "Preliminary Expenditures" means: (a) costs incurred for architectural, engineering, surveying, soil testing, costs of issuance, and similar costs prior to commencement of acquisition, construction, or rehabilitation of the Financed Improvements, other than land acquisition, site preparation, and similar costs incident to commencement of construction of the Financed Improvements up to an amount not in excess of 20 percent of the issue price of the Bonds; and (b) costs incurred in an amount not in excess of the lesser of $100,000 or 5% of the sale proceeds of the Bonds. "Purchaser" means UBS Financial Services Inc., New York, New York, the original purchaser of the Bonds, and any successor and assigns. "Qualified Use Agreement" means any of the following: (a) A lease or other short-term use by members of the general public who occupy the Financed Improvements on a short-term basis in the ordinary course of the Issuer's governmental purposes. (b) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 200 days in length pursuant to an arrangement whereby (1) the use of the Financed Improvements under the same or similar arrangements is predominantly by natural 600596.20255\FTC 4 persons who are not engaged in a trade or business and (2) the compensation for the use is determined based on generally applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed. Any Qualified User or Non-Qualified User using all or any portion of the Financed Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (c) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 100 days in length pursuant to arrangements whereby (1) the use of the property by the person would be general public use but for the fact that generally applicable and uniformly applied rates are not reasonably available to natural persons not engaged in a trade or business, (2) the compensation for the use under the arrangement is determined based on applicable, fair market value rates that are in effect at the time the agreement is entered into or renewed, and (3) the Financed Improvements was not constructed for a principal purpose of providing the property for use by that Qualified User or Non-Qualified User. Any Qualified User or Non-Qualified User using all or any portion of the Financed Improvements under this type of arrangement may have a right of first refusal to renew the agreement at rates generally in effect at the time of the renewal. (d) Agreements with Qualified Users or Non-Qualified Users to use all or a portion of the Financed Improvements for a period up to 50 days in length pursuant to a negotiated arm's-length arrangement at fair market value so long as the Financed Improvements was not constructed for a principal purpose of providing the property for use by that person. "Qualified User" means a state, territory, possession of the United States, the District of Columbia, or any political subdivision thereof, or any instrumentality of such entity, but it does not include the United States or any agency or instrumentality of the United States. "Reasonable Retainage" means Gross Proceeds retained by the Issuer for reasonable business purposes, such as to ensure or promote compliance with a construction contract; provided that such amount may not exceed: (a) for purposes of the 18-month spending test, 5% of Net Proceeds of the Bonds on the date 18 months after the Issue Date, or (b) for purposes of the 2-year spending test, 5% of the Available Construction Proceeds as of the end of the 2-year spending period. "Rebate Analyst" means Gilmore & Bell, P.C. or any successor rebate analyst selected pursuant to this Tax Certificate. "Regulations" means all Regulations issued by the U.S. Treasury Department to implement the provisions of Code§§ 103 and 141 through 150 and applicable to the Bonds. "Series 2016-A Bonds" means the Issuer's General Obligation Internal Improvement Bonds, Series 2016-A, dated July 26, 2016. "State" means the State of Kansas. "Tax Certificate" means this Federal Tax Certificate as it may from time to time be amended and supplemented in accordance with its terms. "Tax Compliance Procedure" means the Issuer's Tax and Securities Compliance Policy and Procedure, dated June 11, 2012, as amended and supplemented in accordance with the terms of the Tax Compliance Procedure. 600596.20255\FfC 5 "Tax-Exempt Bond File" means documents and records for the Bonds, maintained by the Bond Compliance Officer pursuant to the Tax Compliance Procedure. "Transcript" means the Transcript of Proceedings relating to the authorization and issuance of the Bonds. "Yield" means yield on the Bonds, computed under Regulations § 1.148-4, and yield on an Investment, computed under Regulations§ 1.148-5. ARTICLE II GENERAL REPRESENTATIONS AND COVENANTS Section 2.01 Representations and Covenants of the Issuer. The Issuer represents and covenants as follows: (a) Organization and Authority. The Issuer: (1) is a city of the first class, duly created, organized and existing under the Constitution and laws of the State, (2) has lawful power and authority to issue the Bonds for the purposes set forth in the Bond Resolution, to enter into, execute and deliver the Bond Resolution, the Bonds, and this Tax Certificate and to carry out its obligations under this Tax Certificate and under such documents, and (3) by all necessary action has been duly authorized to execute and deliver the Bond Resolution, the Bonds, and this Tax Certificate, acting by and through its duly authorized officials. (b) Tax-Exempt Status of Bonds-General Covenant. The Issuer (to the extent within its power or direction) will not use any money on deposit in any fund or account maintained in connection with the Bonds, whether or not such money was derived from the proceeds of the sale of the Bonds or from any other source, iri a manner that would cause the Bonds to be "arbitrage bonds," within the meaning of Code§ 148, and will not (to the extent within its power or direction) otherwise use or permit the use of any Bond proceeds or any other funds of the Issuer, directly or indirectly, in any manner, or take or permit to be taken any other action or actions, that would cause interest on the Bonds to be included in gross income for federal income tax purposes. (c) Governmental Obligations-Use of Proceeds. Throughout the Measurement Period: (1) all of the Financed Improvements are expected to be owned by the Issuer or another Qualified User; (2) no portion of the Financed Improvements are expected to be used in a Non-Qualified Use; and (3) the Issuer will not permit any Non-Qualified Use of the Financed Improvements without first consulting with Bond Counsel. The Issuer will monitor the usage of all portions of the Financed Improvements during the Measurement Period. If the Non-Qualified Use of the Financed Improvements exceeds 10% of the total use over the Measurement Period, then the Issuer will take "remedial action" in accordance with Regulations§ 1.141-12, as specified in advice from Bond Counsel, as necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes. The Issuer understands that remedial action could include redemption or defeasance of all or a portion of the Bonds. (d) Governmental Obligations-Private Security or Payment. As of the Issue Date, the Issuer expects that none of the principal and interest on the Bonds will be (under the terms of the Bonds or any underlying arrangement) directly or indirectly: 600596.20255\FTC 6 (1) secured by (i) any interest in property used or to be used for a Non-Qualified Use, or (ii) any interest in payments in respect of such property; or (2) derived from payments (whether or not such payments are made to the Issuer) in respect of property, or borrowed money, used or to be used for a Non-Qualified Use. For purposes of the foregoing, taxes of general application, including payments in lieu of taxes, are not treated as private payments or as private security. The Issuer will not permit any private security or payment with respect to the Bonds without first consulting with Bond Counsel. (e) No Private Loan, Special Assessments. Not more than 5% of the Net Proceeds of the Bonds will be loaned directly or indirectly to any Non-Qualified User. The payment of principal and interest on the Bonds will be funded, in whole or in part from mandatory special assessments against the property benefiting from the Financed Improvements financed by the Bonds. The use of the proceeds of the Bonds is not treated as a loan of the Bond proceeds because (1) the special assessment is an enforced contribution for the purpose of raising revenue for specific capital improvements; (2) the assessment does not include any fee for services; (3) the assessment and collection of the tax is not dependent upon, and does not vary, depending on whether the taxpayer engaged, or the property is used, in a trade or business; and (4) the tax is imposed to pay for an essential governmental function. (t) Management Agreements. As of the Issue Date, the Issuer has no Management Agreements with Non-Qualified Users. During the Measurement Period, the Issuer will not enter into or renew any Management Agreement with any Non-Qualified User without first consulting with Bond Counsel. (g) Leases. As of the Issue Date, the Issuer has not entered into any leases of any portion of the Financed Improvements other than Qualified Use Agreements. During the Measurement Period, the Issuer will not enter into or renew any lease or similar agreement or arrangement other than a Qualified Use Agreement without first consulting with Bond Counsel. (h) Intentionally Omitted. (i) Limit on Maturity of Bonds. A list of the assets included in the Financed Improvements and a computation of the "average reasonably expected economic life" is attached to this Tax Certificate as Exhibit D. Based on this computation, the "average maturity" of the Bonds as computed by Bond Counsel does not exceed 120% of the average reasonably expected economic life of the Financed Improvements. G) Expenditure of Bond Proceeds. (l) Reimbursement of Expenditures; Official Intent. The governing body of the Issuer adopted one or more resolutions declaring the intent of the Issuer to finance the Financed Improvements with tax-exempt bonds or other obligations and to reimburse the Issuer for expenditures made for the Financed Improvements prior to the issuance of those bonds. No portion of the Net Proceeds of the Bonds will be used to reimburse an expenditure paid by the Issuer more than 60 days prior to the date the respective resolution was adopted, except for Preliminary Expenditures. The Issuer will evidence each allocation of the proceeds of the Bonds to an expenditure in writing. No reimbursement allocation will be made for an expenditure made more than 3 years before the date of the reimbursement allocation. In addition, no reimbursement 600596.20255\FfC 7 allocation will be made more than 18 months following the later of (A) the date of the expenditure or (B) the date the Financed Improvements was placed in service. (2) Final Allocation of Bond Proceeds to Expenditures. The Issuer understands that, under Regulations § l.148-6(d), the Issuer is required to account for the allocation of Bond proceeds to Improvement expenditures (including expenditures made before and after the Issue Date) within 18 months after the later of (A) the date the expenditure is made, or (B) the date the Improvements are placed in service, and in any event not later than the date that is 60 days after the fifth anniversary of the Issue Date, or the date the Bonds are retired, if earlier (a "Final Allocation"). The Issuer will maintain accurate records of all expenditures made for the Improvements, including the amount, the date paid, a description of the purpose, and the source of funds (whether Bond proceeds or other money) initially allocated to each Improvement expenditure. Not later than the time limit set forth above, the Issuer will prepare a Final Allocation, showing the allocation of Bond proceeds and other money to all Improvement costs and identifying the Financed Improvement, and will maintain the Final Allocation in its books and records in accordance with Section 4.02 hereof. The Issuer reserves the right to make modifications to the expected allocation of Bond proceeds and other money for purposes of compliance with the limitations on Non-Qualified Use following completion of the Financed Improvement in accordance with, and within the time limits prescribed in, the Regulations. In the absence of such subsequent allocation, the Bond proceeds will be deemed allocated as shown on ExhibitD. (k) Registered Bonds. The Bond Resolution requires that all of the Bonds will be issued and held in registered form within the meaning of Code§ 149(a). (1) Bonds Not Federally Guaranteed. The Issuer will not take any action or permit any action to be taken which would cause any Bond to be "federally guaranteed" within the meaning of Code § 149(b). (m) IRS Form 8038-G. Bond Counsel will prepare IRS Form 8038-G (Information Return for Tax-Exempt Governmental Obligations) based on the representations and covenants of the Issuer contained in this Tax Certificate or otherwise provided by the Issuer. Bond Counsel will sign the return as a paid preparer following completion and will then deliver copies to the Issuer for execution and for the Issuer's records. The Issuer agrees to timely execute and return to Bond Counsel the execution copy of Form 8038-G for filing with the IRS. A copy of the IRS Form 8038-G as filed with the IRS with proof of filing will be included in Exhibit A of Tax Certificate. (n) Hedge Bonds. At least 85% of the Net Proceeds of the Bonds will be used to carry out the governmental purpose of the Bonds within 3 years after the Issue Date, and not more than 50% of the proceeds of the Bonds will be invested in Investments having a substantially guaranteed Yield for four years or more. (o) Single Issue; No Other Issues. The Bonds constitute a single "issue" under Regulations § 1.150-l(c). No other debt obligations of the Issuer: (1) are being sold within 15 days of the sale of the Bonds, (2) are being sold under the same plan of financing as the Bonds, and (3) are expected to be paid from substantially the same source of funds as the Bonds (disregarding guarantees from unrelated parties, such as bond insurance). (p) Interest Rate Swap. As of the Issue Date, the Issuer has not entered into an interest rate swap agreement or any other similar arrangement designed to modify its interest rate risk with respect to 600596.20255\FTC 8 the Bonds. The Issuer will not enter into any such arrangement in the future without first consulting with Bond Counsel. (q) Guaranteed Investment Contract. As of the Issue Date, the Issuer does not expect to enter into a Guaranteed Investment Contract for any Gross Proceeds of the Bonds. The Issuer will be responsible for complying with Section 4.04(d) hereof if it decides to enter into a Guaranteed Investment Contract at a later date. (r) Bank Qualified Tax-Exempt Obligation. The Bonds are not "qualified tax exempt obligations" under Code§ 265(b)(3). (s) General Allocation and Accounting. The portion of the Improvements financed by the Bonds may have been financed in part with proceeds of the Bonds and in part with other funds of the Issuer. The portion of the Improvements financed with proceeds of the Bonds is referred to as the Financed Improvements. Attached as Exhibit D is a schedule showing the Improvements financed, in whole or in part, with proceeds of the Bonds. For purposes of determining Non-Qualified Use, if any, of the Financed Improvements during the Measurement Period, the Issuer will allocate Non-Qualified Use first to the portion of the applicable Improvements financed with other funds of the Issuer and second to the Financed Improvements. During the Measurement Period, the Issuer will, on an annual basis, determine the extent to which Non-Qualified Use exceeds the portion of the applicable Improvements financed with other funds of the Issuer and determine the extent to which the proceeds of the Bonds and the Financed Improvements are used in a Non-Qualified Use. (t) Compliance with Future Tax Requirements. The Issuer understands that the Code and the Regulations may impose new or different restrictions and requirements on the Issuer in the future. The Issuer will comply with such future restrictions that are necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Section 2.02 Continuing Application of Representations and Covenants. All representations, covenants and certifications contained in this Tax Certificate or in any certificate or other instrument delivered by the Issuer under this Tax Certificate, will survive the execution and delivery of such documents and the issuance of the Bonds, as representations of facts existing as of the date of execution and delivery of the instruments containing such representations. The foregoing covenants of this Section will remain in full force and effect notwithstanding the defeasance of the Bonds. ARTICLE III ARBITRAGE CERTIFICATIONS AND COVENANTS Section 3.01 General. The purpose of this Article is to certify, under Regulations § 1.148- 2(b), the Issuer's expectations as to the sources, uses and investment of Bond proceeds and other money, in order to support the Issuer's conclusion that the Bonds are not arbitrage bonds. The person executing this Tax Certificate on behalf of the Issuer is an officer of the Issuer responsible for issuing the Bonds. Section 3.02 Reasonable Expectations. The facts, estimates and expectations set forth in this Article are based upon and in reliance upon the Issuer's understanding of the documents and certificates that comprise the Transcript, and the representations, covenants and certifications of the parties contained therein. To the Issuer's knowledge, the facts and estimates set forth in this Tax Certificate are accurate, and the expectations of the Issuer set forth in this Tax Certificate are reasonable. The Issuer has no 600596.20255\FTC 9 knowledge that would cause it to believe that the representations, warranties and certifications described in this Tax Certificate are unreasonable or inaccurate or may not be relied upon. Section 3.03 Purpose of Financing. The Bonds are being issued for the purpose of providing funds to pay: ( a) a portion of the costs of the Financed Improvements; (b) Costs of Issuance; and ( c) a portion of the interest coming due on the Series 2016-A Bonds. Section 3.04 Funds and Accounts. The following funds and accounts have been established under the Bond Resolution: (a) Improvement Fund. (b) Redemption Fund ( c) Debt Service Account. ( d) Rebate Fund. ( e) Costs of Issuance Account. Section 3.05 Amount and Use of Bond Proceeds and Other Money-. (a) Amount of Bond Proceeds. The total proceeds to be received by the Issuer from the sale of the Bonds are as evidenced in Exhibit B attached to this Tax Certificate. and calculated as follows: Principal Amount Less Underwriter's Discount Plus Original Issue Premium Less Original Issue Discount Total Purchase Price Less Good Faith Deposit Net Amount $10,970,000.00 -32,300.44 648,036.60 -9,366.35 $11,576,369.81 -216,500.00 $11,359,869.81 (b) Use of Bond Proceeds. The Bond proceeds are expected to be allocated to expenditures as follows: (1) The sum of $105,817.07 will be deposited in the Costs of Issuance Account and used to pay the Costs of Issuance of the Bonds. (2) The sum of $5,000.00 will be deposited in the Redemption Fund and used to pay a portion of the October 1, 2024 interest payment on the Series 2016-A Bonds. (3) The remaining Bond proceeds in the amount of $11,465,552.74, together with funds provided by the Issuer in accordance with section (c) hereof, will be deposited in the Improvement Fund. Of such amount, $8,939,831.13 will be used to reimburse prior expenditures of the Issuer and $2,525,833.38 and used to pay future costs of the Financed Improvements. (c) Use of Other Moneys. In addition to proceeds of the Bonds, the Issuer will allocate available moneys representing special assessments paid in cash for the Financed Improvements in an amount of $257,428.10 to pay a portion of the costs of the Financed Improvements. Section 3.06 Multipurpose Issue The Issuer is applying the arbitrage rules to separate financing purposes of the issue as if they constitute separate issues pursuant to Regulations § l. l 48- 9(h)(2). Under Regulations § 1.148-9(h), each separate capital project (i.e., capital projects that are not 600596.20255\FTC 10 integrated or functionally related) financed or refinanced with proceeds of the Bonds will be treated as a separate issue for purposes of applying certain of the arbitrage restrictions under Code § 148. The sale proceeds of the Bonds allocable to each purpose are set forth on Exhibit D hereto. Section 3.07 No Refunding. A $5,000.00 portion of the October 1, 2024 interest payment due on the Series 2016-A Bonds is being financed with proceeds of the Bonds. However, no portion of the Bonds is a refunding issue under Regulations§ 1.150-l(d)(2)(i)(A) because the interest being paid on the Series 2016-A Bonds is the only debt service being paid on a debt obligation other than the Bonds and it accrues within a one-year time period from when the Bonds were issued. Section 3.08 Completion of Financed Improvements. The Issuer has incurred, or will incur within 6 months after the Issue Date, a substantial binding obligation to a third party to spend at least 5% of the Net Proceeds of the Bonds on the Financed Improvements. The completion of the Financed Improvements and the allocation of the Net Proceeds of the Bonds to expenditures will proceed with due diligence. At least 85% of the Net Proceeds of the Bonds will be allocated to expenditures on the Financed Improvements within 3 years after the Issue Date. Section 3.09 Sinking Funds. The Issuer is required to make periodic payments in amounts sufficient to pay the principal of and interest on the Bonds. Such payments will be deposited into the Debt Service Account. Except for the Debt Service Account, no sinking fund or other similar fund that is expected to be used to pay principal of or interest on the Bonds has been established or is expected to be established. The Debt Service Account is used primarily to achieve a proper matching of revenues with principal and interest payments on the Bonds within each Bond Year, and the Issuer expects that the Debt Service Account will qualify as a Bona Fide Debt Service Fund. Section 3.10 Reserve, Replacement and Pledged Funds. (a) No Reserve Fund. No reserve fund has been or will be established for the Bonds. (b) No Replacement or Pledged Funds. None of the Bond proceeds will be used as a substitute for other funds that were intended or earmarked to pay costs of the Financed Improvements, and that instead has been or will be used to acquire higher yielding Investments. Except for the Debt Service Account, there are no other funds pledged or committed in a manner that provides a reasonable assurance that such funds would be available for payment of the principal of or interest on the Bonds if the Issuer encounters financial difficulty. Section 3.11 Purpose Investment Yield. The proceeds of the Bonds will not be used to purchase an Investment for the purpose of carrying out the governmental purpose of the financing. Section 3.12 Issue Price and Bond Yield. (a) Issue Price. Based on the Purchaser's certifications in Exhibit C and the Municipal Advisor's certifications in Exhibit C-1, the Issuer hereby elects to establish the issue prices of the Bonds pursuant to Regulations§ 1.148-l(f)(2)(iii) (relating to the so-called "competitive sales rule"). Therefore, the aggregate issue price of the Bonds for such purpose is $11,608,670.25, without accrued interest. (b) Bond Yield. Based on the aggregate issue prices of the Bonds set forth in (a) hereof, the Yield on the Bonds is 3.516469%, as computed by Bond Counsel and shown on Schedule 1 attached to this Certificate. The Issuer has not entered into an interest rate swap agreement with respect to any portion of the proceeds of the Bonds. 600596.20255\FTC 11 Section 3.13 Miscellaneous Arbitrage Matters. (a) No Abusive Arbitrage Device. The Bonds are not and will not be part of a transaction or series of transactions that has the effect of: ( 1) enabling the Issuer to exploit the difference between tax- exempt and taxable interest rates to gain a material financial advantage, and (2) overburdening the tax- exempt bond market. (b) No Over-Issuance. The sale proceeds of the Bonds, together with expected Investment earnings thereon and other money contributed by the Issuer, do not exceed the cost of the governmental purpose of the Bonds as described above. Section 3.14 Conclusion. On the basis of the facts, estimates and circumstances set forth in this Tax Certificate, the Issuer does not expect that the Bond proceeds will be used in a manner that would cause any Bond to be an "arbitrage bond" within the meaning of Code § 148 and the Regulations. ARTICLE IV TAX COMPLIANCE POLICIES AND PROCEDURES Section 4.01 General. (a) Purpose of Article. The purpose of this Article is to supplement the Tax Compliance Procedure and to set out specific policies and procedures governing compliance with the federal income tax requirements that apply after the Bonds are issued. The Issuer recognizes that interest on the Bonds will remain excludable from gross income only if the Post-Issuance Tax Requirements are followed after the Issue Date. The Issuer further acknowledges that written evidence substantiating compliance with the Post-Issuance Tax Requirements must be retained in order to permit the Bonds to be refinanced with tax- exempt obligations and substantiate the position that interest on the Bonds is exempt from gross income in the event of an audit of the Bonds by the IRS. (b) Written Policies and Procedures of the Issuer. The Issuer intends for the Tax Compliance Procedure, as supplemented by this Tax Certificate, to be its primary written policies and procedures for monitoring compliance with the Post-Issuance Tax Requirements for the Bonds and to supplement any other formal policies and procedures related to the Post-Issuance Tax Requirements that the Issuer has established or establishes in the future. The provisions of this Tax Certificate are intended to be consistent with the Tax Compliance Procedure. In the event of any inconsistency between the Tax Compliance Procedure and this Tax Certificate, the terms of this Tax Certificate will govern. (c) Bond Compliance Officer. The Issuer, when necessary to fulfill the Post-Issuance Tax Requirements, will, through its Bond Compliance Officer, sign Form 8038-T in connection with the payment of arbitrage rebate or Yield reduction payments, participate in any federal income tax audit of the Bonds or related proceedings under a voluntary compliance agreement procedures (VCAP) or undertake a remedial action procedure pursuant to Regulations §§ 1.141-12 and 1.145-2. In each case, all costs and expenses incurred by the Issuer shall be treated as a reasonable cost of administering the Bonds and the Issuer shall be entitled to reimbursement and recovery of its costs to the same extent as provided in the Bond Resolution or State law. 600596.20255\FTC 12 Section 4.02 Record Keeping; Use of Bond Proceeds and Use of Financed Improvements. (a) Record Keeping. The Bond Compliance Officer will maintain the Tax-Exempt Bond File for the Bonds in accordance with the Tax Compliance Procedure. Unless otherwise specifically instructed in writing by Bond Counsel or to the extent otherwise provided in this Tax Certificate, the Bond Compliance Officer shall retain records related to the Post-Issuance Tax Requirements until 3 years following the final maturity of (1) the Bonds or (2) any obligation issued to refund the Bonds. Any records maintained electronically must comply with Section 4.01 of Revenue Procedure 97-22, which generally provides that an electronic storage system must (A) ensure an accurate and complete transfer of the hardcopy records which indexes, stores, preserves, retrieves and reproduces the electronic records, (B) include reasonable controls to ensure integrity, accuracy and reliability of the electronic storage system and to prevent unauthorized alteration or deterioration of electronic records, (C) exhibit a high degree of legibility and readability both electronically and in hardcopy, (D) provide support for other books and records of the Issuer and (5) not be subject to any agreement that would limit the ability of the IRS to access and use the electronic storage system on the Issuer's premises. (b) Accounting and Allocation of Bond Proceeds to Expenditures. The Bond Compliance Officer will account for the investment and expenditure of Bond proceeds in the level of detail required by the Tax Compliance Procedure. The expected allocation of Bond proceeds to expenditures is set forth on Exhibit D. The Bond Compliance Officer will supplement the expected allocation of Bond proceeds to expenditures with a Final Written Allocation as required by the Tax Compliance Procedure. (c) Annual Compliance Checklist. Attached as Exhibit Eis a sample Annual Compliance Checklist for the Bonds. The Bond Compliance Officer will prepare and complete an Annual Compliance Checklist for the Financed Improvements at least annually in accordance with the Tax Compliance Procedure. In the event the Annual Compliance Checklist identifies a deficiency in compliance with the requirements of this Tax Certificate, the Bond Compliance Officer will take the actions identified in advice from Bond Counsel or the Tax Compliance Procedure to correct any deficiency. ( d) Advice from Bond Counsel. The Bond Compliance Officer is responsible for obtaining and delivering to the Issuer any advice received from Bond Counsel required under the provisions of this Tax Certificate or the Annual Compliance Checklist. Section 4.03 Restrictions on Investment Yield. Except as described below, Gross Proceeds must not be invested at a Yield greater than the Yield on the Bonds: (a) Improvement Fund and Cost of Issuance Account. Bond proceeds deposited in the Improvement Fund and the Cost of Issuance Account and Investment earnings on those proceeds may be invested without Yield restriction for up to 3 years following the Issue Date. If any unspent proceeds remain in such fund and account after 3 years, those amounts may continue to be invested without Yield restriction so long as the Issuer pays to the IRS all Yield reduction payments in accordance with Regulations § l.148-5(c). These payments are required whether or not the Bonds are exempt from the arbitrage rebate requirements of Code§ 148. (b) Debt Service Account. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, money in such account may be invested without Yield restriction for 13 months after the date of deposit. Earnings on such amounts may be invested without Yield restriction for 1 year after the date of receipt of such earnings. ( c) Rebate Fund. Money other than sale proceeds or Investment proceeds of the Bonds on deposit in the Rebate Fund may be invested without Yield restriction. 600596.20255\FfC 13 (d) Minor Portion. In addition to the amounts described above, Gross Proceeds not exceeding the Minor Portion may be invested without Yield restriction. Section 4.04 Procedures for Establishing Fair Market Value of Investments. (a) General. No Investment may be acquired with Gross Proceeds for an amount (including transaction costs) in excess of the fair market value of such Investment, or sold or otherwise disposed of for an amount (including transaction costs) less than the fair market value of the Investment. The fair market value of any Investment is the price a willing buyer would pay to a willing seller to acquire the Investment in a bona fide, arm's-length transaction. Fair market value will be determined in accordance with Regulations § 1.148-5. (b) Established Securities Market. Except for Investments purchased for a yield-restricted defeasance escrow, if an Investment is purchased or sold in an arm's-length transaction on an established securities market (within the meaning of Code § 1273), the purchase or sale price constitutes the fair market value. Where there is no established securities market for an Investment, market value must be established using one of the paragraphs below. The fair market value of Investments purchased for a Yield-restricted defeasance escrow must be determined in a bona fide solicitation for bids that complies with Regulations § 1.148-5. (c) Certificates of Deposit. The purchase price of a certificate of deposit (a "CD") is treated as its fair market value on the purchase date if (1) the CD has a fixed interest rate, a fixed payment schedule, and a substantial penalty for early withdrawal, (2) the Yield on the CD is not less than the Yield on reasonably comparable direct obligations of the United States, and (3) the Yield is not less than the highest Yield published or posted by the CD issuer to be currently available on reasonably comparable CDs offered to the public. (d) Guaranteed Investment Contracts. The Issuer is applying Regulations § 1.148- 5(d)(6)(iii)(A) (relating to electronic bidding of Guaranteed Investment Contracts) to the Bonds. The purchase price of a Guaranteed Investment Contract is treated as its fair market value on the purchase date if all of the following requirements are met: (1) Bona Fide Solicitation for Bids. The Issuer makes a bona fide solicitation for the Guaranteed Investment Contract, using the following procedures: 600596.20255\FTC (A) The bid specifications are in writing and are timely forwarded to potential providers, or are made available on an internet website or other similar electronic media that is regularly used to post bid specifications to potential bidders. A writing includes a hard copy, a fax, or an electronic e-mail copy. (B) The bid specifications include all "material" terms of the bid. A term is material if it may directly or indirectly affect the yield or the cost of the Guaranteed Investment Contract. (C) The bid specifications include a statement notifying potential providers that submission of a bid is a representation (i) that the potential provider did not consult with any other potential provider about its bid, (ii) that the bid was determined without regard to any other formal or informal agreement that the potential provider has with the Issuer, or any other person (whether or not in connection with the bond issue), and (iii) 14 that the bid is not being submitted solely as a courtesy to the Issuer, or any other person, for purposes of satisfying the requirements of the Regulations. (D) The terms of the bid specifications are "commercially reasonable." A term is commercially reasonable if there is a legitimate business purpose for the term other than to increase the purchase price or reduce the yield of the Guaranteed Investment Contract. (E) The terms of the solicitation take into account the Issuer's reasonably expected deposit and draw-down schedule for the amounts to be invested. (F) All potential providers have an equal opportunity to bid. If the bidding process affords any opportunity for a potential provider to review other bids before providing a bid, then providers have an equal opportunity to bid only if all potential providers have an equal opportunity to review other bids. Thus, no potential provider may be given an opportunity to review other bids that is not equally given to all potential providers (that is no exclusive "last look"). (G) At least 3 "reasonably competitive providers" are solicited for bids. A reasonably competitive provider is a provider that has an established industry reputation as a competitive provider of the type of investments being purchased. (2) Bids Received. The bids received by the Issuer must meet all of the following requirements: (A) The Issuer receives at least 3 bids from providers that were solicited as described above and that do not have a "material financial interest" in the issue. For this purpose, (i) a lead underwriter in a negotiated underwriting transaction is deemed to have a material financial interest in the issue until 15 days after the issue date of the issue, (ii) any entity acting as a financial advisor with respect to the purchase of the Guaranteed Investment Contract at the time the bid specifications are forwarded to potential providers has a material financial interest in the issue, and (iii) a provider that is a related party to a provider that has a material financial interest in the issue is deemed to have a material financial interest in the issue. (B) At least 1 of the 3 bids received is from a reasonably competitive provider, as defined above. (C) If the Issuer uses an agent or broker to conduct the bidding process, the agent or broker did not bid to provide the Guaranteed Investment Contract. (3) Winning Bid. The winning bid is the highest yielding bona fide bid (determined net of any broker's fees). (4) Fees Paid. The obligor on the Guaranteed Investment Contract certifies the administrative costs that it pays (or expects to pay, if any) to third parties in connection with supplying the Guaranteed Investment Contract. (5) Records. The Issuer retains the following records with the bond documents until 3 years after the last outstanding Bond is redeemed: 600596.20255\FfC 15 (A) A copy of the Guaranteed Investment Contract. (B) The receipt or other record of the amount actually paid by the Issuer for the Guaranteed Investment Contract, including a record of any administrative costs paid by the Issuer, and the certification as to fees paid, described in paragraph ( d)( 4) above. (C) For each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the bid results. (D) The bid solicitation form and, if the terms of the Guaranteed Investment Contract deviated from the bid solicitation form or a submitted bid is modified, a brief statement explaining the deviation and stating the purpose for the deviation. (e) Other Investments. If an Investment is not described above, the fair market value may be established through a competitive bidding process, as follows: (1) At least 3 bids on the Investment must be received from persons with no financial interest in the Bonds (e.g., as underwriters or brokers); and (2) the Yield on the Investment must be equal to or greater than the Yield offered under the highest bid. Section 4.05 Certain Gross Proceeds Exempt from the Rebate Requirement. (a) General. A portion of the Gross Proceeds of the Bonds may be exempt from rebate pursuant to one or more of the following exceptions. The exceptions typically will not apply with respect to all Gross Proceeds of the Bonds and will not otherwise affect the application of the Investment limitations described in Section 4.03. Unless specifically noted, the obligation to compute, and if necessary, to pay rebate as set forth in Section 4.06 applies even if a portion of the Gross Proceeds of the Bonds is exempt from the rebate requirement. To the extent all or a portion of the Bonds is exempt from rebate the Rebate Analyst may account for such fact in connection with its preparation of a rebate report described in Section 4.06. The Issuer may defer the final rebate Computation Date and the payment of rebate for the Bonds to the extent permitted by Regulations§§ 1.148-?(b)(l) and 1.148-3(e)(2) but only in accordance with specific written instructions provided by the Rebate Analyst. (b) Applicable Spending Exceptions. (1) The Issuer expects that at least 75% of the Available Construction Proceeds will be used for construction or rehabilitation expenditures for property owned by the Issuer. (2) The following optional rebate spending exceptions can apply to the Bonds: (A) § 1.148-?(c)). (B) (C) § 1.148-?(e)). 6-month spending exception (Code § 148(f)(4)(B) and Regulations 18-month spending exception (Regulations§ 1.148-?(d)). 2-year spending exception (Code § 148(f)(4)(C) and Regulations (c) Special Elections Made with Respect to Spending Exception Elections. No special elections are being made in connection with the application of the spending exceptions. 600596.20255\FfC 16 ( d) Bona Fide Debt Service Fund. To the extent that the Debt Service Account qualifies as a Bona Fide Debt Service Fund, Investment earnings therein cannot be taken into account in computing arbitrage rebate: (1) with respect to such portion that meets the 6-month, 18-month or 2-year spending exception; or (2) for a given Bond Year, if the gross earnings on the Debt Service Account for such Bond Year are less than $100,000. If the average annual debt service on the Bonds does not exceed $2,500,000, the $100,000 earnings test may be treated as satisfied in every Bond Year. ( e) Documenting Application of Spending Exception. At any time prior to the first Computation Date, the Issuer may engage the Rebate Analyst to determine whether one or more spending exceptions has been satisfied, and the extent to which the Issuer must continue to comply with Section 4.06. (f) General Requirements for Spending Exception. The following general requirements apply in determining whether a spending exception is met. (1) Using Adjusted Gross Proceeds or Available Construction Proceeds to pay principal of any Bonds is not taken into account as an expenditure for purposes of meeting any of the spending tests. (2) The 6-month spending exception generally is met if all Adjusted Gross Proceeds of the Bonds are spent within 6 months following the Issue Date. The test may still be satisfied even if up to 5% of the sale proceeds remain at the end of the initial 6-month period, so long as this amount is spent within 1 year of the Issue Date. (3) The 18-month spending exception generally is met if all Adjusted Gross Proceeds of the Bonds are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months (Final) Minimum Percentage of Adjusted Gross Proceeds Spent 15% 60% 100% (4) The 2-year spending exception generally is met if all Available Construction Proceeds are spent in accordance with the following schedule: Time Period After the Issue Date 6 months 12 months 18 months 24 months (Final) Minimum Percentage of Available Construction Proceeds Spent 10% 45% 75% 100% (5) For purposes of applying the 18-month and 2-year spending exceptions only, the failure to satisfy the final spending requirement is disregarded if the Issuer uses due diligence to complete the Financed Improvement and the failure does not exceed the lesser of 3% of the aggregate issue price the Bonds or $250,000. No such exception applies for any other spending period. 600596.20255\FfC 17 (6) For purposes of applying the 18-month and 2-year spending exceptions only, the Bonds meet the applicable spending test even if, at the end of the final spending period, proceeds not exceeding a Reasonable Retainage remain unspent, so long as such Reasonable Retainage is spent within 30 months after the Issue Date in the case of the 18-month exception or 3 years after the Issue Date in the case of the 2-year spending exception. Section 4.06 Computation and Payment of Arbitrage Rebate. (a) Rebate Fund. The Issuer will keep the Rebate Fund separate from all other funds and will administer the Rebate Fund under this Tax Certificate. Any Investment earnings derived from the Rebate Fund will be credited to the Rebate Fund, and any Investment loss will be charged to the Rebate Fund. (b) Computation of Rebate Amount. The Issuer will provide the Rebate Analyst Investment reports relating to each fund held by it that contains Gross Proceeds of the Bonds together with copies of Investment reports for any funds containing Gross Proceeds that are held by a party other than the Issuer annually as of the end of each Bond Year and not later than 10 days following each Computation Date. Each Investment report provided to the Rebate Analyst will contain a record of each Investment, including ( 1) purchase date, (2) purchase price, (3) information establishing the fair market value on the date such Investment was allocated to the Bonds, (4) any accrued interest paid, (5) face amount, (6) coupon rate, (7) frequency of interest payments, (8) disposition price, (9) any accrued interest received, and (10) disposition date. Such records may be supplied in electronic form. The Rebate Analyst will compute rebate following each Computation Date and deliver a written report to the Issuer together with an opinion or certificate of the Rebate Analyst stating that arbitrage rebate was determined in accordance with the Regulations. Each report and opinion will be provided not later than 45 days following the Computation Date to which it relates. In performing its duties, the Rebate Analyst may rely, in its discretion, on the correctness of financial analysis reports prepared by other professionals. If the sum of the amount on deposit in the Rebate Fund and the value of prior rebate payments is less than the arbitrage rebate due, the Issuer will, within 55 days after such Computation Date, pay the amount of the deficiency for deposit into the Rebate Fund. If the sum of the amount on deposit in the Rebate Fund and the value of prior rebate payments is greater than the Rebate Amount the Issuer will transfer such surplus in the Rebate Fund to the Debt Service Account. After the final Computation Date or at any other time if the Rebate Analyst has advised the Issuer, any money left in the Rebate Fund will be paid to the Issuer and may be used for any purpose not prohibited by law. (c) Rebate Payments. Within 60 days after each Computation Date, the Issuer will pay to the United States the rebate amount then due, determined in accordance with the Regulations. Each payment must be (1) accompanied by IRS Form 8038-T and such other forms, documents or certificates as may be required by the Regulations, and (2) mailed or delivered to the IRS at the address shown below, or to such other location as the IRS may direct: Internal Revenue Service Center Ogden, UT 84201 (d) Successor Rebate Analyst. If the firm acting as the Rebate Analyst resigns or becomes incapable of acting for any reason, or if the Issuer desires that a different firm act as the Rebate Analyst, then the Issuer by an instrument or concurrent instruments in writing delivered to the firm then serving as the Rebate Analyst and any other party to this Tax Certificate, will name a successor Rebate Analyst. In each case the successor Rebate Analyst must be a firm of nationally recognized bond counsel or a firm of independent certified public accountants and such firm must expressly agree to undertake the responsibilities assigned to the Rebate Analyst hereunder. 600596.20255\FfC 18 ( e) Filing Requirements. The Issuer will file or cause to be filed with the IRS such reports or other documents as are required by the Code in accordance with advice from Bond Counsel. (f) Survival after Defeasance. Notwithstanding anything in the Bond Resolution to the contrary, the obligation to pay arbitrage rebate to the United States will survive the payment or defeasance of the Bonds. ARTICLE V MISCELLANEOUS PROVISIONS Section 5.01 Term of Tax Certificate. This Tax Certificate will be effective concurrently with the issuance and delivery of the Bonds and will continue in force and effect until the principal of, redemption premium, if any, and interest on all Bonds have been fully paid and all such Bonds are cancelled; provided that the provisions of Article IV of this Tax Certificate regarding payment of arbitrage rebate and all related penalties and interest will remain in effect until all such amounts are paid to the United States and the provisions in Section 4.02 relating to record keeping shall continue in force for the period described therein for records to be retained. Section 5.02 Amendments. This Tax Certificate may be amended from time to time by the Issuer without notice to or the consent of any of the Bond Owners, but only if such amendment is in writing and is accompanied by advice from Bond Counsel to the effect that, under then-existing law, assuming compliance with this Tax Certificate as so amended and the Bond Resolution, such amendment will not cause any Bond to be an arbitrage bond under Code § 148 or otherwise cause interest on any Bond to be included in gross income for federal income tax purposes. No amendment will become effective until the Issuer receives advice from Bond Counsel, addressed to the Issuer, that the amendment will not adversely affect the exclusion of the interest on the Bonds from gross income for federal income tax purposes. Section 5.03 Advice from Bond Counsel. The Issuer may deviate from the provisions of this Tax Certificate if furnished with an advice from Bond Counsel to the effect that the proposed deviation will not adversely affect the exclusion of interest on the Bonds from gross income for federal income tax purposes. The Issuer further agrees to comply with any further or different instructions provided in advice from Bond Counsel to the effect that the further or different instructions need to be complied with in order to maintain the validity of the Bonds or the exclusion from gross income of interest on the Bonds. Section 5.04 Reliance. In delivering this Tax Certificate the Issuer is making only those certifications, representations and agreements as are specifically attributed to them in this Tax Certificate. The Issuer is not aware of any facts or circumstances which would cause it to question the accuracy of the facts, circumstances, estimates or expectations of any other party providing certifications as part of this Tax Certificate and, to the best of its knowledge, those facts, circumstances, estimates and expectations are reasonable. The Issuer understands that its certifications will be relied upon by Bond Counsel in rendering its opinion as to the validity of the Bonds and the exclusion from federal gross income of the interest on the Bonds. Section 5.05 Severability. If any prov1S1on in this Tax Certificate or in the Bonds is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not be affected or impaired. 600596.20255\FTC 19 Section 5.06 Benefit of Certificate. This Tax Certificate is binding upon the Issuer, its respective successors and assigns, and inures to the benefit of the Issuer and the owners of the Bonds. Nothing in this Tax Certificate, the Bond Resolution or the Bonds, express or implied, gives to any person, other than the Issuer, its successors and assigns, and the owners of the Bonds, any benefit or any legal or equitable right, remedy or claim under this Tax Certificate. Section 5.07 Default, Breach and Enforcement. Any misrepresentation of a party contained herein or any breach of a covenant or agreement contained in this Tax Certificate may be pursued by the Bond Owners pursuant to the terms of the Bond Resolution or any other document which references this Tax Certificate and gives remedies for a misrepresentation or breach thereof. Section 5.08 Governing Law. This Tax Certificate will be governed by and construed in accordance with the laws of the State. Section 5.09 Electronic Transactions. The transactions described herein may be conducted, and related documents may be sent, received, executed, and stored, by electronic means. Copies, telecopies, electronic files and other reproductions of original executed documents ( or documents executed by electronic means) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law . [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\FTC 20 THE UNDERSIGNED, Mayor and Finance Director of the Issuer, by their execution of this Tax Certificate hereby make the. foregoing certifications, representations, and agreements contained in this Tax Certificate on behalf of the Issuer, as of the Issue Date. 600596.20255\FTC CITY OF SALINA, KANSAS !7?0~L By: --.... ~----~..........C'---->',----- Max oL(},,,1-t.,~ By:------------- Finance Director (Signature Page to Federal Tax Certificate) 6005%.20255\FTC EXHIBIT A IRS FORM 8038-G A-1 Form 8038-G Information Return for Tax-Exempt Governmental Bonds ► Under Internal Revenue Code section 149(e) {Rev. October 2021) ► See separate instructions. 0MB No. 1545-0047 Department of the Treasury Caution: If the issue price is under $100,000, use Form 8038-GC. Internal Revenue Service ► Go to www.irs.gov/F8038G for instructions and the latest information. ■:.,.,1~•-Reporting Authority Check box if Amended Return ► D 1 Issuer's name City of Salina, Kansas 2 Issuer's employer identification number (EIN) 48-6017288 3a Name of person (other than issuer} with whom the IRS may communicate about this return {see instructions} 3b Telephone number of other person shown on 3a Mitch Walter, Gilmore & Bell, P.C., Bond Counsel 316-267-2091 4 Number and street (or P.O. box if mall is not delivered to street address} I Room/suite 5 Report number (For IRS Use Only) One Main Place, 100 N. Main 800 I 3 I I 6 City, town, or post office, state, and ZIP code 7 Date of issue Wichita, Kansas 67202 7/02/2024 8 Name of issue $10,970,000 City of Salina, Kansas, General Obligation Internal Improvement 9 CUSIP number Bonds, Series 2024-A, Dated July 2, 2024 794744 HT2 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information 10b Telephone number of officer or other Deborah L. Pack, Director of Finance and Administration employee shown on 10a (785) 309-5735 ■ :.lffii ill II Type of Issue (Enter the issue price.) See the instructions and attach schedule. 11 Education. 12 Health and hospital 13 Transportation 14 Public safety . 15 Environment (including sewage bonds) 16 Housing 17 Utilities 18 Other. Describe ► 19a If bonds are TANs or RANs, check only box 19a ► □ b If bonds are BANs, check only box 19b ► □ 20 If bonds are in the form of a lease or installment sale, check box ► □ liEliJ II Description of Bonds. Complete for the entire issue for which this form is being filed. (c) Stated redemption (d) Weighted (a) Final maturity date {b) Issue price price at maturity average maturity 21 10/01/2044 $11,608,670.25 $10,970,000.DO 7.511 years ·~--1•• Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 23 Issue price of entire issue (enter amount from line 21, column (b}) 24 Proceeds used for bond issuance costs (including underwriters' discount) 24 138,005.44 25 Proceeds used for credit enhancement 25 0.00 26 Proceeds allocated to reasonably required reserve or replacement fund 26 0.00 27 Proceeds used to refund prior tax-exempt bonds. Complete Part V . 27 0.D0 28 Proceeds used to refund prior taxable bonds. Complete Part V 28 0.00 29 Total (add lines 24 through 28) . 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) . . Description of Refunded Bonds. Complete this part only for refunding bonds . 31 Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded . 32 Enter the remaining weighted average maturity of the taxable bonds to be refunded . 33 Enter the last date on which the refunded tax-exempt bonds will be called (MM/DDIYYYY) 34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYY) For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63773S ► ► ► 11 12 13 $1,062,659.70 14 9,050,025.95 15 935,009.50 16 17 560,975.10 18 (e)Yield 3.5165 % 22 $ D.00 23 11,608,670.25 29 138,005.44 30 11,470,664.81 years years Form 8038-G {Rev. 10-2021) Form 8038-G (Rev. 10-2021) Page2 l::r.,.;••n Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141 (b){5) 35 0 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIG). See instructions 36a 0 b Enter the final maturity date of the GIC ► (MM/DD/YYYY) C Enter the name of the GIC provider ► 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units 37 0 38a If this issue 1s a loan made from the proceeds of another tax-exempt issue, check box ► D and enter the following information: b Enter the date of the master pool bond ► (MM/DD/YYYY) _______________ _ c Enter the EIN of the issuer of the master pool bond ►------------------- d Enter the name of the issuer of the master pool bond ► _________________ _ 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ► 0 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . ► D 41a If the issuer has identified a hedge, check here ► D and enter the following information: b Name of hedge provider ► ________________ _ c Type of hedge ►-------------------­ d Term of hedge ►-------------------- 42 If the issuer has superintegrated the hedge, check box . ► D 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box . ► 0 44 If the issuer has established written procedures to monitor the requirements of section 148, check box . ► 0 45a If some portion of the proceeds was used to reimburse expenditures, check here► 0 and enter the amount of reimbursement . . ► ....:$:...:8.,_,9:...:3c...:9_,__,8:...:3'---1-'--.1:...:3'------------ b Enter the date the official intent was adopted ► (MM/DD/YYYY) 11/27/2023 Signature and Consent Paid Preparer Use Only PrinVType preparer"s name Mitch Walter Firm's name ► Gilmore & Bell. P.C. 07/02/2024 Date Firm's address ► 2405 Grand Boulevard, Suite 1100, Kansas Cit , MO 64108 Deborah L. Pack, Director of Finance ► Type or print name and title Date 07/02/2024 Check O if self-employed PTIN P02340422 Firm's EIN ► 43-"1611738 Phone no. 816-221-1000 Form 8038-G (Rev. 10·2021) /j GILMO]\_EBELL One Main Place -100 North Main, Suite 800 Wichita, Kansas 67202-1311 (316) 267-2091 / (316) 262-6523 FAX/ gi!morebell.com July 10, 2024 FEDERAL EXPRESS TRACKING NO. 7773 1760 5517 Internal Revenue Service 1973 N. Rulon White Blvd Ogden, UT 84201 Re: $10,970,000 General Obligation Internal Improvement Bonds, Series 2024-A, of the City of Salina, Kansas, Dated July 2, 2024 (the "Bonds") On behalf of the issuer of the above-referenced obligations, the enclosed Form 8038-G is submitted for filing pursuant to Section 149(e) of the Internal Revenue Code of 1986. Should additional information be required, please contact the undersigned. ~, Mitch Walter MLW:paj Enclosure 600596.20228\CORRESP July 15, 2024 Dear Customer, The following is the proof-of-delivery for tracking number: 777317605517 Delivery lnf'ormatlon: Status: Delivered Dellvered To: Shipping/Receiving Signed for by: I.SCAMP Dallvery Location: Service type: FedEx2Day Special Handling: Deliver Weekday OGDEN, UT, Delivery date: Jul 12, 2024 09:28 Shipping Information: Tracking runber: 777317605517 Ship Date: Jul 10, 2024 Weight 0.5 LB/0.23 KG Recipient Shipper: OGDEN, UT, US, Wichita, KS, US, 600596 .. 20228 Salina FedEx Express proof-of-delivery details appear below; however, no signature is currently available for this shipment. Please check again later for a signature. Thank you for choosing FedEx EXHIBJTB RECEIPT FOR PURCHASE PRICE $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The undersigned Finance Director of the City of Salina, Kansas, this day received from UBS Financial Services Inc., New York, New York, the original purchaser of the above-described bonds (the "Bonds"), the full purchase price of the Bonds, said purchase price and net amount received by the Issuer being calculated as follows: Principal Amount .................................. . Plus Bid Premium ................................. . Total Purchase Price ................. . Less Good Faith Deposit ...................... . Net Amount Received .............. . DATED: July 2, 2024. 600596.20255iFTC 8-1 $ I 0,970,000.00 606.369.81 $ll,576,369.81 -$216.500.00 $11,359,869.8] CITY OF SALINA, KANSAS By ,d}d+; & Finance Director EXHIBITC RECEIPT AND REPRESENTATION $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 This Receipt and Representation (the "Certificate") is being delivered by UBS Financial Services Inc., New York, New York (the "Purchaser") in connection with the issuance of the above-described bonds (the "Bonds"), being issued on the date of this Receipt by the City of Salina, Kansas (the "Issuer"). Based on its records and information available to the undersigned which the undersigned believes to be correct, the Purchaser represents as follows: 1. Authorized Representative. The undersigned is the duly authorized representative of the Purchaser. 2. Receipt for Bonds. The Purchaser acknowledges receipt by the Depository Trust Company on behalf of the Purchaser on the Issue Date of the Bonds consisting of fully registered "book- entry-only" bonds in Authorized Denominations in a form acceptable to the Purchaser. 3. Issue Price. (a) Public Offering. The Purchaser offered all of the Bonds to the Public in a bona fide initial offering. (b) Expected Initial Offering Prices. As of the sale date of the Bonds (June 10, 2024), the reasonably expected initial offering prices of the Bonds to the Public by the Purchaser are the prices listed in Schedule 1 attached to this Certificate (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the Maturities used by the Purchaser in formulating its bid to purchase the Bonds. (c) Defined Terms. (i) The term "Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. (ii) The term "Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" is defined in U.S. Treasury Regulation § 1.150-l(b) which generally provides that the term related party means any two or more persons who have a greater than 50 percent common ownership, directly or indirectly. (iii) The term "Underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or 600596.20255\FfC C-1 a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). 4. Reliance. The representations set forth in this Certificate are limited to factual matters only. Nothing in this Certificate represents the Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering its Federal Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Gilmore & Bell, P.C., Bond Counsel, in rendering its opinion relating to the exclusion from federal gross income of the interest on the Bonds and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20255\FTC C-2 Dated: July 2, 2024. 600596.20255\FTC UBS FINANCIAL SERVICES, INC. NEW YORK, NEW YORK J/~/J~a, By: ______ __[}__.....L...L. __ _ Title: Executive Director (Signature Page to Purchaser's Receipt) SCHEDULE] INITIAL OFFERING PRICES SERIAL BONDS Stated Annual Initial Stated Annual Initial Maturity Principal Rate of Offering Maturity Principal Rate of Offering October 1 Amount Interest Price October 1 Amount Interest Price 2025 $645,000 5.00% 101.895% 2033 $1,130,000 4.00% 104.279% 2026 800,000 5.00% 103.538% 2034 1,170,000 4.00% 103.550% 2027 845,000 5.00% 105.189% 2035 125,000 4.00% 103.550% 2028 880,000 5.00% 106.680% 2036 130,000 4.00% 103.188% 2029 925,000 5.00% 107.974% 2037 135,000 4.00% 102.468% 2030 970,000 5.00% 109.226% 2038 140,000 4.00% 102.111 % 2031 1,020,000 5.00% 110.534% 2039 150,000 4.00% 101.399% 2032 1,070,000 5.00% 111.799% 2040 155,000 4.00% 100.694% TERM BONDS Stated Annual Initial Maturity Principal Rate of Offering October 1 Amount Interest Price 2042 $325,000 4.00% 99.354% 2044 355,000 4.00% 97.953% 600596.20255\FTC S-1-1 EXHIBITC-1 CERTIFICATE OF MUNICIPAL ADVISOR $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated, Kansas City, Missouri (the "Municipal Advisor"), as municipal advisor to the City of Salina, Kansas (the "Issuer") in connection with the issuance of the above-described bonds (the "Bonds"), has assisted the Issuer in soliciting and receiving bids from potential underwriters in connection with the sale of the Bonds in a competitive bidding process in which bids were requested for the purchase of the Bonds at specified written terms, and hereby certifies as set forth below with respect to the bidding process and award of the Bonds: 1. The Bonds were offered for sale at specified written terms more particularly described in the Notice of Bond Sale, which was distributed to potential bidders, a copy of which is attached to this Certificate as Attachment 1. 2. The Notice of Bond Sale was disseminated electronically, information regarding the sale of the Bonds was provided to PARITY®, and a copy of the Notice of Bond Sale (or a summary thereof) was published in the Salina Journal, a newspaper of general circulation in Saline County, Kansas, and the Kansas Register, prior to the sale date. The method of distribution of the Notice of Bond Sale is regularly used for purposes of disseminating notices of sale of new issuances of municipal bonds, and notices disseminated in such manner are widely available to potential bidders. 3. To the knowledge of the Municipal Advisor, all bidders were offered an equal opportunity to bid to purchase the Bonds, and the bidding process did not afford any opportunity for bidders to review other bids before providing a bid (that is, no "last-look"). 4. The Issuer received bids from at least three bidders who represented that each has an established industry reputation for underwriting new issuances of municipal bonds. Based upon the Municipal Advisor's knowledge and experience in acting as the municipal advisor for other municipal issues, the Municipal Advisor believes those representations to be accurate. Copies of the bids received are attached to this Certificate as Attachment 2. 5. The winning bidder was UBS Financial Services Inc., New York, New York (the "Purchaser"), whose bid was determined to be the best conforming bid in accordance with the terms set forth in the Notice of Bond Sale, as shown in the bid comparison attached to this Certificate as Attachment 3. The Issuer awarded the Bonds to the Purchaser. The representations set forth in this certificate are limited to factual matters only. Nothing in this Certificate represents the Municipal Advisor's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the certifications contained herein will be relied upon by the Issuer in executing and delivering its Federal Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Gilmore & Bell, P.C., Bond Counsel, in rendering its opinion relating to the exclusion from federal gross income of the interest on the Bonds and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 600596.20255\FTC C-1-1 Dated: July 2, 2024 6005%.20255\FTC C-1-2 STIFEL, NICOLAUS & COMPANY, INCORPORATED By: \b,Q ~t --- Title: fV'\9,f\'::f:"j D:rec.+or:\' 600596.20255\FTC A.T.TACHME.N.TI NOTICE OF BOND SALE C-1-3 Gilmore & Bell, P.C. 06/03/2024 NOTICE OF BOND SALE $10,825,000* CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A (GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES) Bids. Bids for the purchase of the above-referenced bonds (the "Bonds") of the City of Salina, Kansas (the "Issuer") herein described will be received on behalf of the Issuer by the Issuer's Municipal Advisor until 11 :00 A.M. applicable Central Time (the "Submittal Hour"), on JUNE 10, 2024 (THE "SALE DATE") Bids may only be submitted via PARITY® or via email to the Municipal Advisor at arteberryd@stifel.com. Facsimile bids and hand-delivered written bids will not be accepted. All bids will be publicly evaluated at said time and place and the award of the Bonds to the successful bidder (the "Successful Bidder") will be acted upon by the City Commission of the Issuer (the "Governing Body") at its meeting to be held at 4:00 p.m. on the Sale Date. No oral or auction bids will be considered. Any qualified bidder may bid on the Bonds. Capitalized terms not otherwise defined herein shall have the meanings set forth in the hereinafter referenced Preliminary Official Statement relating to the Bonds. Terms of the Bonds. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the "Authorized Denomination"). The Bonds will be dated July 2, 2024 (the "Dated Date"), and will become due in principal installments on October 1 in the years as follows: Principal Principal Year Amount* Year Amount* 2025 $625,000 2035 $120,000 2026 785,000 2036 125,000 2027 830,000 2037 130,000 2028 875,000 2038 140,000 2029 910,000 2039 145,000 2030 960,000 2040 155,000 2031 1,000,000 2041 160,000 2032 1,060,000 2042 165,000 2033 1,110,000 2043 180,000 2034 1,165,000 2044 185,000 600596.20255\SALEDOCS The Bonds will bear interest from the Dated Date at rates to be determined when the Bonds are sold as hereinafter provided, which interest will be payable semiannually on April 1 and October 1 in each year, beginning on April 1, 2025 (the "Interest Payment Dates"). * Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds or the schedule of principal payments described above, depending on the purchase price and interest rates bid and the offering prices specified by the Successful Bidder, but in no event will the total principal amount of the Bonds exceed $12,100,000. The Successful Bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds or the schedule of principal payments as described herein. If there is an increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal payments as described above, the Issuer will notify the Successful Bidder by means of telephone or electronic transmission, subsequently confirmed in writing, no later than 2:00 p.m. applicable Central Time, on the Sale Date. The net production as a percentage of the principal amount of the Bonds generated from the bid of the Successful Bidder will not be decreased as a result of any change in the total principal amount of the Bonds or the principal amount of any maturity. Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of each Bond will be payable at maturity or earlier redemption to the owner thereof whose name is on the registration books (the "Bond Register") of the Bond Registrar (the "Registered Owner") upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the "Record Date") (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas (the "State"). The Issuer will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the Owners. Book-Entry-Only System. The Depository Trust Company, New York, New York ("OTC"), will act as securities depository for the Bonds. The Bonds will initially be issued exclusively in "book entry" form and shall be initially registered in the name of Cede & Co., as the nominee of OTC 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 OTC or its nominee as the Registered Owner of the Bonds. OTC 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 OTC, its participants or persons acting through such participants. In the event that: (a) OTC 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 600596.20255\SALEDOCS 2 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 Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Redemption of Bonds Prior to Maturity. General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of the Bonds then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Bond as though it were a separate Bond in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, Bonds maturing on October 1 in the years 2033, and thereafter, will be subject to redemption and payment prior to maturity on October 1, 2032, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the "Term Bonds") scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable information on PARITY®. Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar, any provider of municipal bond insurance and the Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in United States first class mail not less than 30 days prior to the Redemption Date. All notices of redemption shall state the Redemption Date, the redemption price, the Bonds to be redeemed, the place of surrender of Bonds so called for redemption and a statement of the effect of the redemption. The Issuer shall also give such additional notice as may be required by State law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the Redemption Date, provided funds are available for its payment at the price hereinbefore specified. Authority, Purpose and Security. The Bonds are being issued pursuant to K.S.A. 10-427 et seq., K.S.A. 12-6a01 et seq. and K.S.A. 12-ll0c, as amended, and an ordinance and a resolution adopted by the Governing Body (collectively the "Bond Resolution") for the purpose of paying a portion of the cost of certain public improvements (the "Improvements") and refunding a $5,000 portion of the interest payment due on October 1, 2024 on the Issuer's outstanding General Obligation Internal Improvement Bonds, Series 2016-A. The Bonds shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of 600596.20255\SALEDOCS 3 certain of the Improvements, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. Submission of Bids. Email bids shall be marked "Proposal for General Obligation Internal Improvement Bonds, Series 2024-A and may be submitted to the Municipal Advisor at artebern •d@stifel.com . Any bidder submitting a bid by email should confirm receipt of the bid by contacting the Municipal Advisor at the telephone 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 Bonds. If provisions of this Notice of Bond Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may be submitted separately. The Issuer and Municipal Advisor shall not be responsible for failure of the transmission or the receipt of any bid. PARITY®. Information about the electronic bidding services of PARITY® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (212) 849-5023 and from the following website: www.newissuehome.i-deal.com. Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of the same maturity year; (b) no interest rate may exceed 5.50%; (c) no supplemental interest payments will be considered; (d) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1 %; and (e) no zero percent (0%) interest rates will be permitted. No bid for less than 100% of the principal amount of the Bonds will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid, and an estimate of the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on such certification. Each bidder agrees that, if it is awarded the Bonds, it will provide the certification described under the caption "Establishment of Issue Price" in this Notice. Good Faith Deposit. The Successful Bidder must supply a good faith deposit (the "Deposit") in the amount of 2.00% of the principal amount of the Bonds as indicated on the first page of this Notice payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the Successful Bidder to comply with the terms of its bid. The Deposit must be received by the Issuer by 3:00 p.m. Central Time on the Sale Date. The Deposit shall be submitted by wire transfer in Federal Reserve funds, immediately available for use by the Issuer. No interest on the Deposit will be paid by the Issuer. The Deposit will be held by the Issuer until the Successful Bidder have complied with all of the terms and conditions of this Notice at which time the amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at the option of the Issuer. If a bid is accepted, but the Issuer fails to deliver the 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 the Successful Bidder default in the performance of any of the terms and conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated damages. Basis of Award. Subject to the timely receipt of the Deposit set forth above, the award of the Bonds will be made on the basis of the lowest true interest cost ("TIC"), which will be determined as 600596.20255\SALEDOCS 4 follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium if any. Present value will be computed on the basis of semiannual compounding and a 360- day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer or the bidder. The Municipal Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the Governing Body will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid received after the Submittal Hour on the Sale Date will not be considered. Any disputes arising hereunder shall be governed by the laws of the State, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within the State with regard to such dispute. The Issuer's acceptance of the Successful Bidder's proposal for the purchase of the Bonds in accordance with this Notice of Bond Sale shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of the laws of the State and a contract between the Issuer and the Successful Bidder for the purposes of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and Rule G-32 of the Municipal Securities Rulemaking Board ("Rule G-32"). The method of acceptance shall be determined solely by the Governing Body. Bond Ratings. The outstanding general obligation bonds of the Issuer are rated "Aa3" by Moody's Investors Service. The Issuer has applied to Moody's Investors Service for ratings on the Bonds herein offered for sale. Such application and ratings are further described in the Preliminary Official Statement, hereinafter described. Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder desires to purchase such policy, such indication and the name of the desired insurer must be set forth on the bidder's Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. If the Successful Bidder elects to purchase the Bonds with municipal bond insurance, certain rating agencies will assign their ratings to the Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by such bond insurer. All costs associated with the purchase and issuance of such municipal bond insurance policy and associated ratings and expenses (other than any independent rating requested by the Issuer) shall be paid by the Successful Bidder.. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the Successful Bidder to accept delivery of the Bonds. CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. The Municipal Advisor will apply for CUSIP numbers pursuant 600596.20255\SALEDOCS 5 to Rule G-34 implemented by the Municipal Securities Rulemaking Board. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Delivery and Payment. The Issuer will pay for the preparation of the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about JULY 2, 2024 (the "Closing Date"), to DTC for the account of the Successful Bidder. The Successful Bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC. Establishment of Issue Price. (a) In order to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the "Code"), the Successful Bidder will be required to assist the Issuer in establishing the "issue price" of the Bonds and complete, execute and deliver to the Issuer prior to the Closing Date, a written certification in a form acceptable to the Successful Bidder, the Issuer and Bond Counsel (the "Issue Price Certificate") containing the following for each maturity of the Bonds: (1) the interest rate; (2) the reasonably expected initial offering price to the "public" (as said term is used in Treasury Regulation Section 1.148-l(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 the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale to the public. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received by the Municipal Advisor or Bond Counsel on behalf of the Issuer. (b) The Issuer intends that the sale of the Bonds pursuant to this Notice shall constitute a "competitive sale" as defined in the Regulation. In support thereof: (1) the Issuer shall cause this Notice to be disseminated to potential bidders in a manner reasonably designed to reach potential bidders; (2) all bidders shall have an equal opportunity to submit a bid; (3) the Issuer reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and (4) the Issuer anticipates awarding the sale of the Bonds to the bidder that provides a bid with the lowest TIC in accordance with the section hereof entitled "Basis of Award." (c) Any bid submitted pursuant to this Notice shall be considered a firm offer for the purchase of the Bonds as specified therein. The Successful Bidder shall constitute an ''underwriter" as said term is defined in the Regulation. By submitting its bid, the Successful Bidder confirms that it shall require any agreement among underwriters, a selling group agreement or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with provisions of the Code and the Regulation regarding the initial sale of the Bonds. (d) If all of the requirements of a "competitive sale" are not satisfied, the Issuer shall advise the Successful Bidder of such fact at the time of award of the sale of the Bonds to the Successful Bidder and the following provisions shall apply to the Bonds. In such event, any bid submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Successful Bidder shall advise the Issuer if a "substantial amount" (as defined in the Regulation (10%)) of any maturity of the Bonds has been sold to the public and the price at which such 600596 .20255\SALEDOCS 6 substantial amount was sold. The Issuer will treat such sale price as the "issue price" for such maturity, applied on a maturity-by-maturity basis. The Issuer will not require the Successful Bidder to comply with that portion of the Regulation commonly described as the "hold-the-offering-price" requirement for the remaining maturities, but the Successful Bidder may elect such option. If the Successful Bidder exercises such option, the Issuer will apply the initial offering price to the public provided in the bid as the issue price for such maturities. If the Successful Bidder does not exercise that option, it shall thereafter promptly provide the Issuer the prices at which a substantial amount of such maturities are sold to the public. Any change in the issue price of any of the Bonds after the Submittal Hour will not affect the purchase price for the Bonds submitted in the bid of the Successful Bidder. (e) This agreement by the Successful Bidder to provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the information in connection with an audit or inquiry by the Internal Revenue Service (the "IRS") or the Securities and Exchange Commission (the "SEC") or (b) the information is required to be retained by the Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state regulatory authority. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement relating to the Bonds, "deemed final" by the Issuer except for the omission of certain information as provided in the Rule, copies of which may be obtained from the Municipal Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the Successful Bidder, without cost, within seven business days of the acceptance of the Successful Bidder's proposal, with a sufficient number of copies thereof, which may be in electronic format, in order for the Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be ordered by the Successful Bidder at its expense. Continuing Disclosure. In the Bond Resolution, the Issuer has covenanted to annually provide certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to the Municipal Securities Rulemaking Board. This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds. For further information, reference is made to the caption "CONTINUING DISCLOSURE" in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2023 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 ............................... . $531,447,506 55,673,641 $587,121,147 The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds being sold, is $76,620,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of GILMORE & BELL, P.C., WICHITA, KANSAS, Bond Counsel to the Issuer, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful Bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the interest on the Bonds being excludable from gross income for federal income tax purposes and exempt from income taxation by the State. Reference is made to the Preliminary Official 600596.20255\SALEDOCS 7 Statement for further discussion of federal and State income tax matters relating to the interest on the Bonds. Electronic Transactions. The transactions described herein may be conducted and related documents may be sent, received and stored by electronic means or transmissions. All bid documents, closing documents, certificates, ordinances, resolutions and related instruments may be executed by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned or from the Municipal Advisor at the addresses set forth below: DATED: May 13, 2024. Issuer-Good Faith Deposit Delivery Address: Debbie Pack, Director of Finance and Administration City of Salina, Kansas 300 West Ash Street, Room 206 Salina, Kansas 67402 Phone No.: (785) 309-5735 Fax No.: (785) 309-5711 Email: debbie.pack@salina.or0 Municipal Advisor -Email Bid Delivery Address: Stifel, Nicolaus & Company, Incorporated 4622 Pennsylvania Avenue, Suite 1210 Kansas City, Missouri 64112 Attn: David Arteberry Phone No.: (816) 863-3230 Email: artebem d@stifel.com 600596.20255\SALEDOCS 8 CITY OF SALINA, KANSAS By: Nikki Goding, Clerk 600596.20255\FTC ATTACHME.NT2 BIDS RECEIVED C-1-4 [ Upcoming Calendar f Overview I Result [ Excel [PrnrtJ UBS Financial Services Inc. -New York , NY's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,422,601.05, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4300 101.895 10/01/2026 785M 5.0000 3.3500 103.538 10/01/2027 830M 5.0000 3.3000 105.189 10/01/2028 875M 5.0000 3.3000 106.680 10/01/2029 910M 5.0000 3.3300 107.974 10/01/2030 960M 5.0000 3.3500 109.226 10/01/2031 1,000M 5.0000 3.3500 110.534 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 4.0000 3.4000 104.279 10/01/2034 1,165M 4.0000 3.5000 103.550 10/01/2035 120M 4.0000 3.5000 103.550 10/01/2036 125M 4.0000 3.5500 103.188 10/01/2037 130M 4.0000 3.6500 102.468 10/01/2038 140M 4.0000 3.7000 102.111 10/01/2039 145M 4.0000 3.8000 101.399 10/01/2040 155M 4.0000 3.9000 100.694 10/01/2041 10/01/2042 325M 4.0000 4.0500 99.354 10/01/2043 10/01/2044 365M 4.0000 4.1500 97.953 Total Interest Cost: $3,646,214.03 Premium: $597,601.05 Net Interest Cost: $3,048,612.98 TIC: 3.591260 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:59:58 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: UBS Financial Services Inc., New York , NY Contact: Vincent Pietanza Title: Telephone:212-713-9163 Fax: Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: Upcoming Calendar Overview Result Excel Print Loop Capital Markets, LLC -New York , NY's Bid ., .. 1 IRflrv.··· .'-!W~ ., .• •'li::I .t• • r.· Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,423,047.51, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.5000 3.4000 102.537 10/01/2026 785M 5.0000 3.3300 103.582 10/01/2027 830M 5.0000 3.2500 105.346 10/01/2028 875M 5.0000 3.2500 106.885 10/01/2029 910M 5.0000 3.2500 108.375 10/01/2030 960M 5.0000 3.2800 109.639 10/01/2031 1,000M 5.0000 3.3000 110.873 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 4.0000 3.4000 104.279 10/01/2034 1,165M 4.0000 3.4500 103.914 10/01/2035 120M 4.0000 3.5500 103.188 10/01/2036 125M 4.0000 3.6500 102.468 10/01/2037 130M 4.0000 3.7500 101.754 10/01/2038 140M 4.0000 3.9000 100.694 10/01/2039 10/01/2040 300M 4.0000 4.0200 99.758 10/01/2041 1Q/01l2042 10/01/204J 10/01/2Q44 690M 4.0000 4.1100 98.492 Total Interest Cost: $3,650,111.60 Premium: $598,047.51 Net Interest Cost: $3,052,064.09 TIC: 3.595940 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:56:03 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: Loop Capital Markets, LLC, New York , NY Contact: Jim Van Metre Title: Telephone:312-913-2257 Fax: Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: Upcoming Calendar Overview Result Excel Print ./ Robert W. Baird & Co., Inc. -Milwaukee , Wl's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11 ,600,622.05, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date ~aunt$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4900 101.821 10/01/2026 785M 5.0000 3.3900 103.450 10/01/2027 830M 5.0000 3.3000 105.189 10/01/2028 875M 5.0000 3.3000 106.680 10/01/2029 910M 5.0000 3.3300 107.974 10/01/2030 960M 5.0000 3.3500 109.226 10/01/2031 1,000M 5.0000 3.3500 110.534 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 5.0000 3.4000 111.417 10/01/2034 1,165M 5.0000 3.4000 111.417 10/01/2035 120M 5.0000 3.4200 111.265 10/01/2036 125M 5.0000 3.4500 111.038 10/01/2037 130M 4.0000 3.7500 101.754 10/01/2038 140M 4.0000 3.8000 101.399 10/01/2039 145M 4.0000 3.8500 101.046 10/01/2040 155M 4.0000 3.9000 100.694 10/01l2041 10/01/2Q42 1Q/01/204J jQ/01 /2044 690M 4.0000 4.0000 100.000 Total Interest Cost: $3,897,044.03 Premium: $775,622.05 Net Interest Cost: $3,121,421.98 TIC: 3.634461 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:59:04 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: Robert W. Baird & Co., Inc., Milwaukee , WI Contact: Peter Anderson Title: Telephone:414-765-7331 Fax: Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: Upcoming Calendar Overview Result Excel Print Raymond James & Associates, Inc. -St. Petersburg , FL's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,568,589.05, plus accrued interest from the date of issue to the date of delivery. The Bond t t th i II • s are to bear interes a e o owing rate{s): Maturity Date Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4200 101.907 10/01/2026 785M 5.0000 3.3400 103.560 10/01/2027 830M 5.0000 3.3000 105.189 10/01/2028 875M 5.0000 3.3000 106.680 10/01/2029 910M 5.0000 3.3300 107.974 10/01/2030 960M 5.0000 3.3500 109.226 10/01/2031 1,000M 5.0000 3.3500 110.534 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 5.0000 3.4000 111.417 10/01/2034 1,165M 5.0000 3.4000 111.417 10/01/2035 10/01/2036 10/01/2037 1Q/01/203~ 1Q/01/2Q;39 660M 4.0000 3.9000 100.694 10/01/2040 1QlQ1l2Q41 315M 4.0000 4.1000 98.767 10/01/2042 10/01/2043 10/01/2044 530M 4.1250 4.2300 98.575 Total Interest Cost: $3,881,014.62 Premium: $743,589.05 Net Interest Cost: $3,137,425.57 TIC: 3.659460 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:52:08 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: Raymond James & Associates, Inc., St. Petersburg , FL Contact: Robbie Specter Title: Managing Director Telephone:727-567-1293 Fax: Issuer Name: City of Salina Company Name: Accepted By: Accepted By: Date: Date: Upcoming Calendar Overview Result Excel Print HilltopSecurities -Dallas , TX's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,545,696.56, plus accrued interest from the date of issue to the date of delivery. The Bond t b • t t t th i II • t !( 1} s are o ear m eres a eoowmg raes: Maturity Date !Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.5500 101.748 10/01/2026 785M 5.0000 3.4500 103.318 10/01/2027 830M 5.0000 3.4000 104.874 10/01/2028 875M 5.0000 3.4000 106.272 10/01/2029 910M 5.0000 3.4000 107.624 10/01/2030 960M 5.0000 3.4000 108.932 10/01/2031 1,000M 5.0000 3.4000 110.195 10/01/2032 1,060M 5.0000 3.4000 111.417 10/01/2033 1,110M 5.0000 3.4000 111.417 10/01/2034 1,165M 5.0000 3.4000 111.417 10/01/2035 120M 4.0000 3.8000 101.399 10/01/2036 125M 4.0000 3.8500 101.046 10/01/2037 130M 4.0000 3.9500 100.344 10/01/2038 1QlQ1l2QJ~ 285M 4.0000 4.0000 100.000 10/01/2040 10/01/2041 315M 4.0000 4.1000 98.767 10/01/2042 10/01/2043 10/01/2044 530M 4.0000 4.2200 97.019 Total Interest Cost: $3,868,238.33 Premium: $720,696.56 Net Interest Cost: $3,147,541.77 TIC: 3.678784 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:58:43 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: HilltopSecurilies, Dallas , TX Contact: Peter Druhot Title: Managing Director Telephone:214-953-4040 Fax: Issuer Name: City of Salina Company Name: Accepted By: Accepted By: Date: Date: lpr Trademar Upcoming Calendar Overview Result Excel [§iliJ TD Securities -New York , NY's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,253,134.25, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear interest at the following rate(s): Maturity Date ~mount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 4.0000 3.4300 100.685 BAM 10/01/2026 785M 4.0000 3.3700 101.348 BAM 10/01/2027 830M 4.0000 3.2800 102.196 BAM 10/01/2028 875M 4.0000 3.2500 102.948 BAM 10/01/2029 910M 4.0000 3.2400 103.636 BAM 10/01/2030 960M 4.0000 3.2300 104.320 BAM 10/01/2031 1,000M 4.0000 3.2100 105.068 BAM 10/01/2032 1,060M 4.0000 3.2100 105.680 BAM 10/01/2033 1,110M 5.0000 3.2500 112.566 BAM 10/01/2034 1,165M 5.0000 3.2700 112.412 BAM 10/01/2035 120M 5.0000 3.5000 110.659 BAM 10/01/2036 125M 5.0000 3.5600 110.207 BAM 10/01/2037 130M 4.0000 3.8300 101.187 BAM 10/01/2038 140M 4.0000 3.9600 100.274 BAM 10/01/2039 145M 4.1250 3.9100 101.498 BAM 10/01/2040 155M 4.1250 4.0600 100.446 BAM 10/01/2041 160M 4.1250 4.1300 99.933 BAM 10/01/2042 165M 4.1250 4.1400 99.803 BAM 10/01/2043 180M 4.2500 4.2100 100.270 BAM 10/01/2044 185M 4.2500 4.2800 99.590 BAM Total Interest Cost: $3,571,027.20 Premium: $428,134.25 Net Interest Cost: $3,142,892.95 TIC: 3.708066 Total Insurance Premium: $41,800.00 lime Last Bid Received On:06/10/2024 10:52:48 COST This proposal is made subject to all of the terms and conditions of the Officlal Bid Form, the Official Notice of Sale, and the Preliminary Official Statement, all of which are made a part hereof. Bidder: TD Securities, New York , NY Contact: Jake Frackowiak Trtle: Telephone:212-827-7171 Fax: Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: (i) 1981-2023 Upcoming Calendar Overview Result Excel Print Commerce Bank • Kansas City I MO's Bid .=AIR11ry.·· Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,541,506.75, plus accrued interest from the date of issue to the date of delivery. The Bond t b • t t t th i II • Ia t 1(1 :) s are o ear In eres a e oowin raes: Maturity Date ~mount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4000 101.932 10/01/2026 785M 5.0000 3.4100 103.406 10/01/2027 830M 5.0000 3.2900 105.220 10/01/2028 875M 5.0000 3.2800 106.762 10/01/2029 910M 5.0000 3.3000 108.124 10/01/2030 960M 5.0000 3.3200 109.403 10/01/2031 1,000M 5.0000 3.3500 110.534 10/01/2032 1,060M 5.0000 3.3500 111.799 10/01/2033 1,110M 5.0000 3.3700 111.646 10/01/2034 1,165M 5.0000 3.4000 111.417 10/01l2QJ:i 10/01/2036 1Q/Q1/2Q37 10/Q1/2Q38 10/01/2039 660M 4.0000 4.0500 99.430 1Q/01/2040 10/01/2041 10/01/2042 10/01/2043 10/01/2044 845M 4.2500 4.3500 98.657 Total Interest Cost: $3,906,985.59 Premium: $716,506.75 Net Interest Cost: $3,190,478.84 TIC: 3.723812 Total Insurance Premium: $0.00 Time Last Bid Received On:06/10/2024 10:50:42 CDST 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: Commerce Bank, Kansas City , MO Contact: Thomas Verstappen Title: Fixed Income Trader Telephone:314-7 46-3620 Fax: Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: 1981-2023 Upcoming Calendar Overview Result Excel Print Mesi row Financial, Inc. -Chicago , IL's Bid .=P.~1Rf'!1f · Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,505,181.35, plus accrued interest from the date of issue to the date of delivery. The Bond t b • t t t th J II • 1a t 1(11) s are o ear in eres a e oowm raes: Maturity Date ~cunt$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4500 101.871 BAM 10/01/2026 785M 5.0000 3.3800 103.472 BAM 10/01/2027 830M 5.0000 3.3000 105.189 BAM 10/01/2028 875M 5.0000 3.3000 106.680 BAM 10/01/2029 910M 5.0000 3.3300 107.974 BAM 10/01/2030 960M 5.0000 3.3500 109.226 BAM 10/01/2031 1,000M 5.0000 3.3500 110.534 BAM 10/01/2032 1,060M 5.0000 3.3500 111.799 BAM 10/01/2033 1, 110M 5.0000 3.3500 111.799 BAM 10/01/2034 1,165M 5.0000 3.3500 111.799 BAM 10/01/2035 10/01/2036 10/01[2037 10/01/2038 10/01/2039 660M 4.0000 4.0000 100.000 BAM 1Q/Q1/2Q4Q ~0/01/2041 1Q/Q1/2Q42 10/01/2043 10/01/2044 845M 4.1250 4.3000 97.644 BAM Total Interest Cost: $3,887,611.96 Premium: $680,181.35 Net Interest Cost: $3,207,430.61 TIC: 3.755356 Total Insurance Premium: $41,800.00 Time Last Bid Received On:06/10/2024 10:59:23 CDST 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: Mesirow Financial, Inc., Chicago , IL Contact: Mark O'Connor Title: Telephone:212-530-7652 Fax: Issuer Name: City of Salina Company Name: Accepted By: ___________ Accepted By: Date: ___________ Date: © T rademarKs Upcoming Calendar Overview Result Excel Print BOK Financial Securities, Inc. -Dallas , TX's Bid Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,497,918.25, plus accrued Interest from the date of issue to the date of delivery. The Bond t b • t t t th J II • ti( 1) s are o ear In eres a eoowmg raes : Maturity Date Amount$ Coupon% Yield% Dollar Price Bond Insurance 10/01/2025 625M 5.0000 3.4900 101 .821 BAM 10/01/2026 785M 5.0000 3.4300 103.362 BAM 10/01/2027 830M 5.0000 3.3600 105.000 BAM 10/01/2028 875M 5.0000 3.3500 106.476 BAM 10/01/2029 910M 5.0000 3.3200 108.024 BAM 10/01/2030 960M 5.0000 3.3000 109.521 BAM 10/01/2031 1,000M 5.0000 3.3000 110.873 BAM 10/01/2032 1,060M 5.0000 3.3000 112.181 BAM 10/01/2033 1,110M 5.0000 3.3200 112.028 BAM 10/01/2034 1,165M 5.0000 3.3400 111.875 BAM 10/01/2035 1QLQ1l2036 245M 5.0000 3.4000 111.417 BAM 1QlQ1/2037 10/01/203!;! 270M 4.0000 3.8000 101.399 BAM 1Q/Q1/2Q3~ 1QLQ1/2040 300M 4.0000 4.0000 100.000 BAM 1Q/01l2Q41 10/01/2042 325M 4.0000 4.1000 98.718 BAM 10/Q1/2043 10/01/2044 365M 4.0000 4.1500 97.953 BAM Total Interest Cost: $3,897,044.03 Premium: $672,918.25 Net Interest Cost: $3,224,125.78 TIC: 3. 778609 Total Insurance Premium: $41,800.00 Time Last Bid Received On:06/10/2024 10:41:26 CDST 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: BOK Financial Securities, Inc., Dallas , TX Contact: Allen Mattson Title: Telephone:414-203-6558 Fax: 214-576-0870 Issuer Name: City of Salina Accepted By: Date: Company Name: Accepted By: Date: Trademarks Upcoming Calendar Overview Result Excel Print KeyBanc Capital Markets -Cleveland , OH's Bid .-.~ IRf1nt·· .-iw:4 . •''-=11 ~· .. .- Salina $10,825,000 General Obligation Internal Improvement Bonds, Series 2024-A For the aggregate principal amount of $10,825,000.00, we will pay you $11,474,739.40, plus accrued interest from the date of issue to the date of delivery. The Bond t b • t t t th i II • 19 ti(: i): s are o ear in eres a e o owin ra es: Maturity Date Amount$ Coupon% Yield% 10/01/2025 625M 5.0000 3.5400 10/01/2026 785M 5.0000 3.4600. 10/01/2027 830M 5.0000 3.3800 10/01/2028 875M 5.0000 3.3600 10/01/2029 910M 5.0000 3.3400 10/01/2030 960M 5.0000 3.3500 10/01/2031 1,000M 5.0000 3.3800 10/01/2032 1,060M 5.0000 3.3900 10/01/2033 1,110M 5.0000 3.4000 10/01/2034 1,165M 5.0000 3.5000 1QlQ1l2QJ~ 1Q/01/2036 10/01/2037 375M 4.0000 4.0000 1Q/Q1[2Q38 lQlQl/2039 10lQ1l2Q4Q 440M 4.0000 4.0800 10/01/2041 1QlQ1/2042 10/01/2043 1 QJ.O 1 /2044 690M 4.0000 4.1500 Total Interest Cost: Premium: Net Interest Cost: TIC: Total Insurance Premium: Dollar Price Bond Insurance 101.760 103.296 104.937 106.435 107.924 109.226 110.331 111.493 111.417 110.659 100.000 99,051 97.953 $3,868,238.33 $649,739.40 $3,218,498.93 3.778764 Time Last Bid Received On:06/10/202410:48:36 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: KeyBanc Capital Markets, Cleveland , OH Contact: Robert Bond TIiie: Managing Director Telephone:720-904-4571 Fax: Issuer Name: City of Salina Company Name: Accepted By: Accepted By: Date: Date: 600596.20255\FTC ATTACHMEJVT.J BID COMPARISON Bidder Name UBS Financial Services Inc. Loop Capital Markets. LLC !Robert W. Baird & Co .. Inc. ~ond James & Associates , Inc. HilltopSecurities TD Securities Commerce Bank 'Mesirow Financial. Inc. 'BOK Financial Securities. Inc. KeyBanc Capital Markets C-1-5 --- TIC 3.591260 3.595940 3.634461 3.659460 3.678784 3.708066 3.723812 3.755356 3.778609 3.778764 EXHIBITD DESCRIPTION OF PROPERTY COMPRISING IBE FINANCED IMPROVEMENTS AND LIST OF REIMBURSEMENT EXPENDITURES $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 Estimated Estimated Date Placed Useful Estimated Description in Service Life Total Cost* Public Infrastructure Improvements Lakeview Estates No. 2 Phase 1 05/2024 20 years $ 801,065.23 Magnolia Hills Estates No. 2, Phase 2 05/2024 20 years 672,412.23 Wheatland Valley 05/2024 20 years 1,282,232.25 Fire Apparatus 08/2024 15 years 8,939,931.13 Estimated Amount Financed.from Bonds $11,695,640.84 Estimated Amount Financed from Other Sources $0.00 *excludes cost of issuance 600596.20255\FfC D-1 EXHIBITE FORM OF ANNUAL COMPLIANCE CHECKLIST $10,970,000 CITY OF SALINA, KANSAS GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES 2024-A DATED JULY 2, 2024 The Bond Compliance Officer is the person that the Issuer has identified in the Tax Compliance Procedure who is primarily responsible for working with other Issuer officials, departments and administrators and for consulting with Bond Counsel, other legal counsel and outside experts to the extent necessary to carry out the Post-Issuance Tax Requirements for the Bonds. On the Issue Date, the Issuer identified certain assets financed in whole or in part by the Bonds (the "Financed Improvements"), as evidenced on Exhibit D to the Federal Tax Certificate. Please complete this checklist within 90 days after the conclusion of the Issuer's Fiscal Year. Should you have questions or need assistance in completing the checklist, please contact Bond Counsel at the address below. A completed copy of this annual checklist should be placed in the Tax-Exempt Bond File and retained in the Issuer's permanent records for at least 3 years after the final maturity of (1) the Bonds or (2) any obligation issued to refund the Bonds. Bond Compliance Officer Name: [ _____ __, Bond Compliance Officer Signature: Date of Report: ~-----] Annual Period Covered by Report: [ ______ _ **If the answers to any of the following questions identify any compliance deficiencies, the Bond Compliance Officer should immediately contact Bond Counsel and take actions required in the Tax Compliance Procedure.** Item Question Response 1 Were all of the Financed Improvements owned by the Issuer during the entire 0Yes Ownership Annual Period? nNo If answer above was "No," was advice of Bond Counsel obtained prior to the 0Yes transfer? 0No If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. 2 During the Annual Period, was any part of the Financed Improvements leased at 0Yes Leases & Other any time pursuant to a lease or similar agreement for more than 50 days? □No Rights to Possession If answer above was "Yes," was advice of Bond Counsel obtained prior to 0Yes entering into the lease or other arrangement? 0No If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. 600596.20255\FTC E-1 Item 3 Management or Service Agreements 4 Other Use 5 Proceeds & Investments 6 Arbitrage & Rebate Bond Counsel: 600596.20255\FTC Question During the Annual Period, has the management of all or any part of the operations of the Financed Improvements (e.g., cafeteria, gift shop, etc.) been assumed by or transferred to another entity? If answer above was "Yes," was advice of Bond Counsel obtained prior to entering into the management agreement? If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. Was any other agreement entered into with an individual or entity that grants special legal rights to the Financed Improvements? If answer above was "Yes," was advice from Bond Counsel obtained prior to entering into the agreement? If Yes, include a description of the advice in the Tax-Exempt Bond File. If No, contact Bond Counsel and include description of resolution in the Tax- Exempt Bond File. Have any Gross Proceeds of the Bonds been invested in a Guaranteed Investment Contract? Has the Issuer entered into an Interest Rate Swap Agreement with respect to the Bonds? Has any sinking or reserve fund for the payment of the Bonds been established (other than funds and accounts created in the Bond Resolution)? Have any of the Bonds been redeemed or refunded in advance of their scheduled maturities? If answer to any of the above questions was "Yes," notify Bond Counsel with such information and place a copy of documentation in the Tax-Exempt Bond File. Have all rebate and yield reduction calculations mandated in the Federal Tax Certificate been prepared for the current year? If No, contact Rebate Analyst and incorporate report or include description of resolution in the Tax-Exempt Bond File. If Yes, contact Bond Counsel and incorporate report or include description of resolution in the Tax-Exempt Bond File. Gilmore & Bell, P.C. 100 N. Main, Suite 800 Wichita, Kansas 67202 Phone: (316) 267-2091 Attn: Mitch Walter Email: mwalter@ £!ilmorebell.com E-2 Response 0Yes □No 0Yes □No 0Yes □No 0Yes 0No 0Yes 0No 0Yes n No 0Yes nNo 0Yes □No 0Yes □No SCHEDULE] DEBT SERVI CR SCHEDULE AND PROOF OF YIELD 600596.20255\FTC S-1 Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. SOURCES AND USES OF FUNDS City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Sources: Bond Proceeds: Dated Date Delivery Date Par Amount Original Issue Discount Premium Other Sources of Funds: Pre-Paid Special Assessments Uses: Project Fund Deposits: 07/02/2024 07/02/2024 Project Fund (Combined SBD Portion) Project Fund (Fire Apparatus Portion) Delivery Date Expenses: Cost oflssuance Underwriter's Discount: Other Underwriter's Discount Other Uses of Funds: City Administrative Costs Refunding Fund Additional Proceeds I 0,970,000.00 (9,366.35) 648,036.60 11,608,670.25 257,428.10 11,866,098.35 2,660,758.41 8,939,831.13 I 1,600,589.54 105,705.00 32,300.44 122,391.30 5,000.00 112.07 127,503.37 I 1,866,098.35 (Finance 8.901) Page I This infom1ation is provided based on the factu:\l infmmation and assumptions provided to Gilmore & Bell, P .C. by a party to or a representative of a patty to rhe proposed tninsacrion. TI1is infonnation is intended to provide factual infonnation only and is provided in conjuuctlon with our legal representation. It is not inte.aded as financial advice 01· a financial 1secommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ~•municipal advisor" as defined in the Secmities Exchange Act of 1934) as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. (Finance 8.901) Page 2 BOND DEBT SERVICE City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Dated Date 07/02/2024 Delivery Date 07/02/2024 Period Annual Bond Total Ending Principal Coupon Interest Debt Service Debt Service Balance Bond Value 07/02/2024 10,970,000 10,970,000 04/01/2025 381,344.86 381,344.86 10,970,000 10,970,000 10/01/2025 645,000 5.000% 255,175.00 900,175.00 1,281,519.86 10,325,000 10,325,000 04/01/2026 239,050.00 239,050.00 10,325,000 10,325,000 10/01/2026 800,000 5.000% 239,050.00 1,039,050.00 1,278,100.00 9,525,000 9,525,000 04/01/2027 219,050.00 219,050.00 9,525,000 9,525,000 10/01/2027 845,000 5.000% 219,050.00 1,064,050.00 1,283,100.00 8,680,000 8,680,000 04/01/2028 197,925.00 197,925.00 8,680,000 8,680,000 10/01/2028 880,000 5.000% 197,925.00 1,077,925.00 1,275,850.00 7,800,000 7,800,000 04/01/2029 175,925.00 175,925.00 7,800,000 7,800,000 10/01/2029 925,000 5.000% 175,925.00 1,100,925.00 1,276,850.00 6,875,000 6,875,000 04/01/2030 152,800.00 152,800.00 6,875,000 6,875,000 10/01/2030 970,000 5.000% 152,800.00 1,122,800.00 1,275,600.00 5,905,000 5,905,000 04/01/2031 128,550.00 128,550.00 5,905,000 5,905,000 10/01/2031 1,020,000 5.000% 128,550.00 1,148,550.00 1,277,100.00 4,885,000 4,885,000 04/01/2032 103,050,00 103,050.00 4,885,000 4,885,000 10/01/2032 1,070,000 5.000% 103,050.00 I, 173,050.00 1,276,100.00 3,815,000 3,815,000 04/01/2033 76,300.00 76,300.00 3,815,000 3,815,000 10/01/2033 1,130,000 4.000% 76,300.00 1,206,300.00 1,282,600.00 2,685,000 2,685,000 04/01/2034 53,700.00 53,700.00 2,685,000 2,685,000 10/01/2034 1,170,000 4.000% 53,700.00 1,223,700.00 1,277,400.00 1,515,000 1,515,000 04/01/2035 30,300.00 30,300.00 1,515,000 1,515,000 10/01/2035 125,000 4.000% 30,300.00 155,300.00 185,600.00 1,390,000 1,390,000 04/01/2036 27,800.00 27,800.00 1,390,000 1,390,000 10/01/2036 130,000 4.000% 27,800.00 157,800.00 185,600.00 1,260,000 1,260,000 04/01/2037 25,200.00 25,200.00 1,260,000 1,260,000 10/01/2037 135,000 4.000% 25,200.00 160,200.00 185,400.00 1,125,000 1,125,000 04/01/2038 22,500.00 22,500.00 1,125,000 1,125,000 10/01/2038 140,000 4.000% 22,500.00 162,500.00 185,000.00 985,000 985,000 04/01/2039 19,700.00 19,700.00 985,000 985,000 10/01/2039 150,000 4.000% 19,700.00 169,700.00 189,400.00 835,000 835,000 04/01/2040 16,700.00 16,700.00 835,000 835,000 10/01/2040 155,000 4.000% 16,700.00 171,700.00 188,400.00 680,000 680,000 04/01/2041 13,600.00 13,600.00 680,000 680,000 10/01/2041 160,000 4.000% 13,600.00 173,600.00 187,200.00 520,000 520,000 04/01/2042 10,400.00 10,400.00 520,000 520,000 10/01/2042 165,000 4.000% 10,400.00 175,400.00 185,800.00 355,000 355,000 04/01/2043 7,100.00 7,100.00 355,000 355,000 10/01/2043 175,000 4.000% 7,100.00 182,100.00 189,200.00 180,000 180,000 04/01/2044 3,600.00 3,600.00 180,000 180,000 10/01/2044 180,000 4.000% 3,600.00 183,600.00 187,200.00 10,970,000 3,683,019.86 14,653,019.86 14,653,019.86 This infom1atiou is provided based on the factual infonnation and assumptions provided to Gilmore & Bell, P.C. by a pru-ty to or a representative of a party to the proposed transaction. This infonnation is intended to provide factual info1111ation only and is provided in conjunction '\vith our legal representation. It is not i11tended as financial advice o.r a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ·•municipal advisor" as defined in the Secmities Exchan~e Act of 1934~ as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. BOND SUMMARY STATISTICS City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Dated Date 07/02/2024 Delivery Date 07/02/2024 First Coupon 04/01/2025 Last Maturity 10/01/2044 Arbitrage Yield 3.516469% True Interest Cost (TIC) 3.589259% Net Interest Cost (NIC) 3.705824% All-In TIC 3.737619% Average Coupon 4.436196% Average Life (years) 7.568 Weighted Average Maturity (years) 7.511 Duration oflssue (years) 6.309 Par Amount 10,970,000.00 Bond Proceeds 11,608,670.25 Total Interest 3,683,019.86 Net Interest 3,076,650.05 Bond Years from Dated Date 83,022,027.78 Bond Years from Delivery Date 83,022,027.78 Total Debt Service 14,653,019.86 Maximum Annual Debt Service 1,283,100.00 Average Annual Debt Service 723,705.19 Underwriter's Fees (per$ 1000) Average Takedown Other Fee 2.944434 Total Underwriter's Discount 2.944434 Bid Price 105.527528 Par Average Bond Component Value Price Coupon Serial I 0,290,000.00 106.298 4.51558134% Term due 2042 325,000.00 99.354 4.00000000% Term due 2044 355,000.00 97.953 4.00000000% 10,970,000.00 All-In TIC TIC Par Value I 0,970,000.00 10,970,000.00 + Accrued Interest + Premium (Discount) 638,670.25 638,670.25 -Underwriter's Discount (32,300.44) (32,300.44) -Cost oflssuance Expense (105,705.00) -Other Amounts Target Value 11,576,369.81 11,470,664.81 Target Date 07/02/2024 07/02/2024 Yield 3.589259% 3.737619% Average Life 6.826 17.755 19.754 7.568 Arbitrage Yield I 0,970,000.00 638,670.25 11,608,670.25 07/02/2024 3.516469% (Finance 8.901) Page 3 TI1is J11tOrmat1on is provided based on fbe facruAl infonnation and assumptions provided to Oilmoce & Bell, P.C. by a party to or a representative of a party to the proposed transaction. This infonuation is intended to pro,•idc factual infonnntion only and is provided in c.oojuoction witll our legal representation. lt is not intended as financial advice or a financial recommendation to any party. Gilmore & Dell, P.C. is not a financial advisor or a ·•municipal advisor" as defined in the Securities Excban~e Act of 1934, as runended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. BOND PRICING City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Bond Component Serial: Term due 2042: Term due 2044: Maturity Date 10/01/2025 10/01/2026 10/01/2027 10/01/2028 10/01/2029 10/01/2030 10/01/2031 10/01/2032 10/01/2033 10/01/2034 10/01/2035 10/01/2036 10/01/2037 10/01/2038 10/01/2039 10/01/2040 Amount 645,000 800,000 845,000 880,000 925,000 970,000 1,020,000 1,070,000 1,130,000 1,170,000 125,000 130,000 135,000 140,000 150,000 155,000 10,290,000 10/01/2041 160,000 10/01/2042 165,000 325,000 10/01/2043 175,000 10/01/2044 180,000 355,000 10,970,000 Dated Date Delivery Date First Coupon Par Amount Premium Production Underwriter's Discount Purchase Price Accrued Interest Net Proceeds Rate 5.000% 5.000% 5.000% 5.000% 5.000% 5.000% 5.000% 5.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% 4.000% Yield Price 3.430% 101.895 3.350% 103.538 3.300% 105.189 3.300% 106.680 3.330% 107.974 3.350% 109.226 3.350% 110.534 3.350% 111.799 3.400% 104.279 C 3.500% 103.550 C 3.500% 103.550 C 3.550% 103.188 C 3.650% 102.468 C 3.700% 102.111 C 3.800% 101.399 C 3.900% 100.694 C 4.050% 99.354 4.050% 99.354 4.150% 97.953 4.150% 97.953 07/02/2024 07/02/2024 04/01/2025 10,970,000.00 638,670.25 Call Date 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 11,608,670.25 105.821971% (32,300.44) (0.294443%) 11,576,369.81 105.527528% 11,576,369.81 Call Price 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 (Finance 8.901) Page 4 Premium (-Discount) 12,222.75 28,304.00 43,847.05 58,784.00 73,759.50 89,492.20 107,446.80 126,249.30 48,352.70 41,535.00 4,437.50 4,144.40 3,331.80 2,955.40 2,098.50 1,075.70 648,036.60 (1,033.60) (1,065.90) (2,099.50) (3,582.25) (3,684.60) (7,266.85) 638,670.25 This lnformation is provided based on the factunl infonnation and assumptions pro,·ided to Gilmore & Bell, P.C. by n party to or n representative ofa party to the proposed tnmsaorioa. This iofonnation is intended to provide factual informntion only Md is provided in conjunction with our legal representation. II is not intended as financial ad,..·ice or o finandal recommendation to any party. Gilm.ore & BeU, P.C. is not a fimmc-ial advisor 01· a ·~municipal advisor" as defined in the Securities Exchange Act of 1934, as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. PROOF OF ARBITRAGE YIELD City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Present Value PV to 07/02/2024 Date Debt Service Factor @ 3.5164688020% 04/01/2025 381,344.86 0.974288797 371,540.02 10/01/2025 900,175.00 0.957454502 861,876.61 04/01/2026 239,050.00 0.940911080 224,924.79 10/01/2026 1,039,050.00 0.924653504 960,761.22 04/01/2027 219,050.00 0.908676835 199,045.66 10/01/2027 1,064,050.00 0.892976220 950,171.35 04/01/2028 197,925.00 0.877546889 173,688.47 10/01/2028 1,077,925.00 0.862384154 929,585.44 04/01/2029 175,925.00 0.847483409 149,093.52 10/01/2029 1,100,925.00 0.832840128 916,894.52 04/01/2030 152,800.00 0.818449861 125,059.14 10/01/2030 1,122,800.00 0.804308237 903,077.29 04/01/2031 128,550.00 0.790410959 101,607.33 10/01/2031 1,148,550.00 0.776753806 892,140.58 04/01/2032 103,050.00 0.763332630 78,661.43 10/01/2032 4,003,050.00 0.750143351 3,002,861.34 04/01/2033 19,700.00 0.737181964 14,522.48 10/01/2033 19,700.00 0. 724444531 14,271.56 04/01/2034 19,700.00 0.711927183 14,024.97 10/01/2034 19,700.00 0.699626116 13,782.63 04/01/2035 19,700.00 0.687537593 13,544.49 10/01/2035 19,700.00 0.675657943 13,310.46 04/01/2036 19,700.00 0.663983555 13,080.48 10/01/2036 19,700.00 0.652510885 12,854.46 04/01/2037 19,700.00 0.641236445 12,632.36 10/01/2037 19,700.00 0.630156811 12,414.09 04/01/2038 19,700.00 0.619268617 12,199.59 10/01/2038 19,700.00 0.608568555 11,988.80 04/01/2039 19,700.00 0.598053375 11,781.65 10/01/2039 169,700.00 0.587719882 99,736.06 04/01/2040 16,700.00 0.577564937 9,645.33 10/01/2040 171,700.00 0.567585454 97,454.42 04/01/2041 13,600.00 0.557778402 7,585.79 10/01/2041 173,600.00 0.548140802 95,157.24 04/01/2042 10,400.00 0.538669726 5,602.17 10/01/2042 175,400.00 0.529362296 92,850.15 04/01/2043 7,100.00 0.520215685 3,693.53 10/01/2043 182,100.00 0.511227114 93,094.46 04/01/2044 3,600.00 0.502393852 1,808.62 10/01/2044 183,600.00 0.493713216 90,645.75 14,417,819.86 11,608,670.25 Proceeds Summary Delivery date Par Value Premium (Discount) Target for yield calculation 07/02/2024 10,970,000.00 638,670.25 11,608,670.25 (Finance 8.901) Page 5 This information is provided based on the factual information and assumptions pro-vided to Gilmore & Bell, P.C. by a party to or a representative ofa pa1ty to the proposed transaction. This information is intended to provide factual info1mation only and is provide.cl in conjunction with our legal representation. It is not intended as financial advice 01· a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ·•municipal advisor'~ as defined in the Securities Exchange Act of 1934~ as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. (Finance 8.901) Page 6 Bond Component SERIAL SERIAL SERIAL SERIAL SERIAL SERIAL Bond Maturity Component Date SERIAL 10/01/2033 SERIAL 10/01/2034 SERIAL 10/01/2035 SERIAL 10/01/2036 SERIAL 10/01/2037 SERIAL 10/01/2038 PROOF OF ARBITRAGE YIELD City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Assumed Call/Computation Dates for Premium Bonds Maturity Date Rate Yield I 0/01/2033 4.000% 3.400% 10/01/2034 4.000% 3.500% 10/01/2035 4.000% 3.500% 10/01/2036 4.000% 3.550% 10/01/2037 4.000% 3.650% 10/01/2038 4.000% 3.700% Call Date 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 10/01/2032 Call Price 100.000 100.000 100.000 100.000 100.000 100.000 Yield To Call/Maturity 3.3989664% 3.4989674% 3.4989674% 3.5489300% 3.6489126% 3.6987913% Rejected Call/Computation Dates for Premium Bonds Call Call Yield To Increase Rate Yield Date Price Call/Maturity to Yield 4.000% 3.400% 3.4539140% 0.0549475% 4.000% 3.500% 3.5815448% 0.0825774% 4.000% 3.500% 3.6117156% 0.1127481% 4.000% 3.550% 3.6730840% 0.1241540% 4.000% 3.650% 3.7604450% 0.1115324% 4.000% 3.700% 3.8054332% 0.1066419% Titis iuformation is provided based on the factual infonnation and asswnptions provided to Gilmore & Bell .. P.C. by a party to or a represeutntive of a party to the proposed transaction. This infonnation is. intended to provide factual information only and is provided jo conjunction with our legal representation. It is not iurended as financial advice or a financial recommendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ·'niunicipc1l advjsor" as defined in the Securities Exchange Act of 1934. as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. CALL PROVISIONS City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Bond Component Serial Term due 2042 Term due 2044 Call Table: CALL Call Date Call Price 10/01/2032 100.00 Call Provisions Setup Call Table CALL CALL CALL Callable Dates Any Date Any Date Any Date (Finance 8.901) Page 7 This information is provided based on the factual infonnation and assumptions provided to Gilmore & Bell. P.C. by a party to or a represeotative of a party to the proposed transaction. TJUs infonnation is intended to provide factual info11nation only and is provided in conjunction with our legal representation. It is not intended as financial advice or o financial 1-ecouuuendation to any party. Gilmore & Bell, P.C. is not a financial advisor or a ·•municipal advisor" as defined in the Securities Exc-hau~e Act of 1934 .. as amended. Jun 10, 2024 12:59 pm Prepared by Gilmore & Bell, P.C. FORM 8038 ST A TIS TICS City of Salina, Kansas General Obligation Internal Improvement Bonds, Series 2024-A Bond Component Date Serial: 10/01/2025 10/01/2026 10/01/2027 10/01/2028 10/01/2029 10/01/2030 10/01/2031 10/01/2032 10/01/2033 10/01/2034 10/01/2035 10/01/2036 10/01/2037 10/01/2038 10/01/2039 10/01/2040 Term due 2042: 10/01/2041 10/01/2042 Term due 2044: 10/01/2043 10/01/2044 Maturity Date Final Maturity 10/01/2044 Entire Issue Proceeds used for accrued interest Dated Date Delivery Date Principal 645,000.00 800,000.00 845,000.00 880,000.00 925,000.00 970,000.00 1,020,000.00 1,070,000.00 l,130,000.00 1,170,000.00 125,000.00 130,000.00 135,000.00 140,000.00 150,000.00 155,000.00 160,000.00 165,000.00 175,000.00 180,000.00 l 0,970,000.00 Interest Rate 4.000% 07/02/2024 07/02/2024 Coupon Price 5.000% 101.895 5.000% 103.538 5.000% 105.189 5.000% 106.680 5.000% 107.974 5.000% 109.226 5.000% 110.534 5.000% 111.799 4.000% 104.279 4.000% 103.550 4.000% 103.550 4.000% 103.188 4.000% 102.468 4.000% 102.111 4.000% 101.399 4.000% 100.694 4.000% 99.354 4.000% 99.354 4.000% 97.953 4.000% 97.953 Stated Issue Redemption Price at Maturity 176,315.40 180,000.00 11 ,608,670.25 10,970,000.00 Proceeds used for bond issuance costs (including underwriters' discount) Proceeds used for credit enhancement Proceeds allocated to reasonably required reserve or replacement fund Issue Price 657,222.75 828,304.00 888,847.05 938,784.00 998,759.50 I ,059,492.20 1,127,446.80 1,196,249.30 I, 178,352.70 1,211,535.00 129,437.50 134,144.40 138,331.80 142,955.40 152,098.50 156,075.70 158,966.40 163,934.10 171,417.75 176,315.40 11,608,670.25 Weighted Average Maturity 7.5105 (Finance 8.90 l) Page 8 Redemption at Maturity 645,000.00 800,000.00 845,000.00 880,000.00 925,000.00 970,000.00 1,020,000.00 1,070,000.00 1,130,000.00 1,170,000.00 125,000.00 130,000.00 135,000.00 140,000.00 150,000.00 155,000.00 160,000.00 165,000.00 175,000.00 180,000.00 10,970,000.00 Yield 3.5165% 0.00 138,005.44 0.00 0.00 This Information is provided based on the factunl information and assumptions provided to Gilmore & Bell .. P.C. by a party to or a representative of a party to the proposed transaction. This infonnation is intended to pro~ide factual information only and is provided in conjunction with our legal representation. U is not .int.ended as financial advice or a firuutcinl recommendation to any party. Gilmore & Bell, P.C. is not a fimmcial advisor or a ·•municipal advjsor" as defined in the Securities Exchange Act of 1934, as amended. Governing Body City of Salina, Kansas $ GILMO]\EBELL One Main Place -100 North Main, Suite 800 Wichita, Kansas 67202-1311 (316) 267-2091 / (316) 262-6523 FAX/ gilmorebell.com July 2, 2024 UBS Financial Services Inc. New York, New York Re: $10,970,000 General Obligation Internal Improvement Bonds, Series 2024-A, of the City of Salina, Kansas, Dated July 2, 2024 We have acted as Bond Counsel in connection with the issuance by the City of Salina, Kansas (the "Issuer"), of the above-captioned bonds (the "Bonds"). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Bonds are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Bonds (including any original issue discount properly allocable to an owner of a Bond) is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds have not been designated as "qualified tax-exempt obligations" for purposes of Code § 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Bonds. City of Salina, Kansas General Obligation Internal Improvement Bonds $10,970,000-Series 2024-A Dated July 2, 2024 Page2 4. The interest on the Bonds is exempt from income taxation by the State of Kansas. We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds ( except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the Bonds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. MLW:paj 600596.20255\OPINION ,, ... 1(/ .,.~ .. OF ...> STATE OF KANSAS OFFICE OF THE ATTORNEY GENERAL KRJS W. K0BACH ATTORNEY GENERAL The Honorable Steven Johnson State Treasurer July 2, 2024 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: City of Salina, Kansas Description: General Obligation Internal Improvement Bond Series: 2024-A Numbered: Registered Dated: July 2, 2024 Aggregate Amount: $10,970,000.00 Date of First Payment: April 1, 2025 Fiscal Agent: Kansas State Treasurer Sincerely, LAM:sb cc: Nikki Goding, Clerk Gilmore & Bell-Wichita u~ Lisa A. Mendoza ~ First Assistant Attorney General Legal Oversight and Government Counsel Section STIFEL I Public Finance CLOSING MEMORANDUM June 25, 2024 TO: SEE DISTRIBUTION LIST FROM: DA YID ARTEBERRY RE: BOND ISSUE CLOSING ARRANGEMENTS NAME OF ISSUER: AMOUNT, NAME AND DATE OF ISSUE: TIME AND DATE OF CLOSING: SETTLEMENT NUMBERS: METHOD OF FUNDS TRANSFER: City of Salina, Kansas (the "City") $10,970,000 City of Salina, Kansas General Obligation Internal hnprovement Bonds Series 2024-A Dated July 2, 2024 (the "Bonds") 10:00a.m. Tuesday, July 2, 2024 Via email and telephone Par Amount of Bonds Add: Reoffering Premium Less: Underwriter's Discount Less: Good Faith Deposit Net Amount Due at Closing Wire Transfer of Federal Funds 4801 Main Street, Suite 530 I Kansas City, Missouri 641121 (816) 203-8728 main Stifel, Nicolaus & Company, Incorporated I Member SIPC & NYSE I www.stifel.com $10,970,000.00 638,670.25 (32,300.44) (216.500.00') $11,359,869.81 Page2 TRANSFER INSTRUCTIONS: (UBS) DISPOSITION OF FUNDS: (City) DELIVERY OF TRAN SC RI PT AND LEGAL OPINION: BOND DELIVERY INSTRUCTIONS: On Tuesday, July 2, 2024 UBS Financial Services Inc. ("UBS") will wire transfer an amount of $11,359,869.81 to: Equity Bank ABA #: 101105354 Account Name: City of Salina Account#:7701171274 Attn: Debbie Pack The City shall deposit the $11,359,869.81 received from UBS along with the good faith deposit of $216,500.00 and pre-paid special assessments of $257,428.10 (total of$ 11,833,797.91) into the following funds and accounts created pursuant to City Resolution No. 24-8217: Cost of Issuance Account Redemption Fund hnprovement Fund -Projects Improvement Fund -City Administrative Costs Total $105,817.07 5,000.00 11,600,589.54 122,391.30 $11,833,797.91 Upon receiving confirmation of receipt of funds, Gilmore & Bell will email a signed legal opinion to the City, UBS, and Stifel, Nicolaus & Company. Original signed legal opinions and transcripts will be mailed when completed. The Bonds will be delivered to the facilities of the Depository Trust Company at least one business day in advance of closing. PAYMENT OF COSTS OF ISSUANCE: All costs associated with the issuance of the Bonds will be paid after closing by the City from the Costs oflssuance Account upon presentation of the proper invoices. 4801 Main Street, Suite 530 I Kansas City, Missouri 64112 I (816) 203-8728 main Stifel, Nicolaus & Company, Incorporated I Member SIPC & NYSE I www.stifel.com