Financial Feasibility Report W & S Revenue Bonds (1976)
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FINANCIAL
FEASIBILITY
REPORT
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ilUeopr.
COMBINED WATER AND SEWAGE SYSTEM IMPROVEMENTS
FOR
CITY OF SALINA, KANSAS
BaST SECVQS CoMPANY
SCHWEITER BLDG. ~ P.O. BOX IS21
~ WICHITA. KS enol
0.. KANSAS
INCOIPIPOIlATKD
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CITY OF SALINA, KANSAS
COMBINED WATER AND SEWAGE SYSTEM IMPROVEMENTS
FINANCIAL FEASIBILITY REPORT
GOVERNING BODY
Gerald F. Simpson, Mayor
Jack Weisgerber, Commissioner
Wm. "Bill" Usher, Commissioner
Keith G. Duckers, Commissioner
Robert C. Caldwell, Commissioner
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ADMINISTRATION
Norris Olson, City Manager
Don L. Harrison, City Clerk
Larry Bengston, City Attorney
Dean Boyer, City Engineer
Ron Webster, Director of Utilities
Laverne Pauls, Office Manager of Water and Sewage Department
CONSULTING ENGINEER
Wilson and Company
Salina, Kansas
BOND COUNSEL
Stinson, Mag, Thomson, McEvers and Fizzell
Kansas City, Missouri
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FINANCIAL CONSULTANT
First Securities Company of Kansas, Inc.
Wichita, Kansas
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TABLE OF CONTENTS
I. Preface ------------------________________________________
II. Scope ----------------------______________________________
III. Allocation of Costs ------------__________________________
IV. Analysis of Present Water and Sewage System Revenue
Bonded Indebtedness - Series 1961 ------------____________
V. Analysis of Water and Sewerage System Operations _________
VI. Water and Sewer Rate Schedules -----______________________
VII. Comparative Water and Sewer Rates for Cities in Kansas ___
VIII. Additional Indebtedness Requirements _____________________
IX. Projection of Future Water and Sewage System Operations __
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X. Flow of Funds --------------______________________________
XI. Revenue Bond Maturity Schedules ----______________________
XII. Summary and Recommendations ----__________________________
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1.
PREFACE
In determining the financial feasibility of bond issuance to develop an
adequate water treatment and distribution system, it is necessary to
examine the effect of such financing of the additional Water and Sewage
System Revenue Bond Debt capacity of the combined Water and Sewage System
of the City of Salina, Kansas. The possibilities of the issuance of
additional revenue bonds ranging from $1,500,000 to $3,000,000 junior lien
revenue bonds are analyzed, and maturity schedules for the ranging amount
of bonds to be issued are set forth in order that the cost is clearly
reflected.
Several basic facts should be emphasized in setting up financial procedures
for revenue bond programming:
A. Revenue Bonds will constitute a lien on the revenues of the entire
Water and Sewage System operations of the City and will not be a
general obligation tax liability of the City. By statute, such bonds
and the interest thereon are to be paid solely from the rates, fees,
and charges for water and sewer services, and not from any other funds
or sources.
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B. Revenue Bonds establish the burden of payment for water service and
sewer service on the actual user of such service rather than upon the
assessed valuation of properties lying within the corporate limits of
the City. Revenue Bonds are not and cannot become general obligations
of the City, and revenue bond financing is expressly a "self-liquidating"
financial vehicle.
C. Revenue Bond procedures require that the service charge and rates shall
be sufficient to pay the cost of operation, improvement, and maintenance
of the combined utility system financed, provide adequate bond reserves,
and pay the principal of and interest on all outstanding Water and
Sewage System Revenue Bonds. This, of course, means that revenue bond
schedules must be adapted to the net income available for servicing
any new additional revenue bonded indebtedness, as well as the balance
of $1,820,000 Water and Sewage System Revenue Bonds, Series of 1961,
which will mature on August 1, 1986.
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D. Revenue Bonds, through procedures established at the time of issuance,
create a businesslike climate in the operation and maintenance of the
combined Water and Sewage System. This is a result of Kansas statutory
requirements, the continuing financial interest of bondholders and
bond underwriters, and the necessity for maintaining adequate net
earnings and efficient and businesslike operational procedures. Excessive
operational expenses and failure to maintain net balances in operational
accounts would result in inferior net incomes and thus focus the attention
of City officials on any uneconomical operational conditions.
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E. Revenue Bonds establish procedures which assure a maximum number of
continuous water and sewer connections, and emphasize the necessity
that all properties afforded water and sewer service shall be fairly
and equitably charged for the availability of such services.
F. There is no election required in the case of the issuance of additional
Revenue Bond financing; however, a Notice of Intent to issue additional
Revenue Bonds would be published and a fifteen (15) day protest period
would have to elapse without a 20% protest from the qualified electors
of the City before bonds would be issued. The total amount of the
construction project would be listed in the Notice of Intent, which
includes the Government Grant portion of $972,900.
G. Moody's Rating Services reduced the rating of the Series 1961 Water
and Sewage System Revenue Bonds from an"A" to a "Baa", and it is
necessary to proceed with reestablishing the Series 1961 Bonds to an
"A" rating and to pursue the possibility of obtaining an "A" rating on
the new revenue bonds to be issued.
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II.
SCOPE
In developing this Report, the fiscal operations of the Combined Water and
Sewage System Departments for the past five years have been examined,
covering the period of time from January 1, 1971 through December, 1975,
and also the first ten months operations of 1976. The Report has taken
into consideration the increased annual gross revenue and also the increased
annual operational expenses of the Water and Sewage System during these
periods of time in order to project additional water and sewer rate increases
over the next five year period to cover debt of the Series 1961 Bonds and
any additional indebtedness.
The object in the revenue bond program contained herein is to coordinate
all system indebtedness resulted in computing six different financial
pro formas with the schedule as follows:
Exhibit I - $1,500,000 - 20 year maturity
Exhibit II - $2,000,000 - 25 year maturity
Exhibit III- $2,250,000 - 25 year maturity
e Exhibit IV - $2,500,000 - 25 year maturity
Exhibit V - $2,750,000 - 25 year maturity
Exhibit VI - $3,000,000 - 25 year maturity
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III.
ALLOCATION OF COSTS
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The following is an incomplete list of projects that are needed to develop
an adequate water treatment and distribution system. These projects are
those listed of highest priority and should be completed in the shortest
time frame to help eliminate existing problems within the City's present
system.
1. Water Treatment Plant Sludge Disposal Facilities
To meet E.P.A. discharge requirements ---------------------- $ 575,000.00
2. South Santa Fe Avenue Main
30" main from Water Plant south to Crawford Avenue.
This main is needed to supply a distribution system
and is a prerequisite to the mains on Crawford Avenue ______
142,000.00
3. West Crawford Main
20" main along Crawford Avenue from Santa Fe Avenue
to Broadway Boulevard. This main is needed to supply
a distribution system in the west central part of
town. This main should be installed prior to any
reconstruction work on Crawford Avenue --------_____________
169,500.00
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4. East Crawford Main
30" main along Crawford Avenue from Santa Fe Avenue
to Ohio Street. This main is needed to supply a
distribution system in the east side of town and
to supply a 20" main on Ohio Street. This main
should be installed prior to any reconstruction
work on Crawford Avenue --------____________________________
276,000.00
5. North Fourth Main
20" main from the Water Treatment Plant to 1. 0 MG
Tower located at Santa Fe Avenue and Lincoln Avenue ________
427,500.00
6. Northwest Main
12" main on Grand Avenue from Woodlawn Avenue
to Ninth Street, then north to Euclid Avenue
and the new elevated tower ----_____________________________
350,000.00
7. North Elevated Tower
0.5 MG Elevated Water Tower in Thomas Park or
1-70 area. Needed to increase deficient fire
flow in 1-70 area ------------______________________________
295,000.00
8. South Ohio Main
20" main on Ohio Street from Crawford Avenue
to Magnolia Road and 20" main on Magnolia Road
from Ohio Street to Key Acres Tower and from
Key Acres Tower to South Ninth Street. This loop
will hopefully alleviate the riled water situation
which prevails in the southeast area ---____________________
600.000.00
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ESTIMATED CONSTRUCTION COSTS -------------------------- $2,835,000.00
TOTAL ESTIMATE FOR BOND ISSUE ------------------------- $3,000.000.00
In addition to the above cost, a Grant from the Federal Government of $972,900
will be allocated to item #1.
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IV.
ANALYSIS OF PRESENT WATER AND SEWAGE SYSTEM
REVENUE BONDED INDEBTEDNESS - SERIES 1961
The following annual principal and interest requirements of the Water and
Sewage System Revenue Bonded indebtedness and funds in reserve accounts
are listed below. The principal and interest payments are due August 1
of each year and semiannual interest due on February 1 in each year. All
funds in the accounts listed below are as of October 30, 1976.
Water and Sewage System Revenue Bonds, Series of 1961
(Issued under Ordinance No. 6546)
Maturity Interest
Year Rate Principal Interest Total
8-1-77 3.50% $ 150,000 $ 33,097.50 $ 183,097.50
8-1-78 3.60% 155,000 60,945.00 215,945.00
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8-1-79 3.60% 160,000 55,365.00 215,365.00
8-1-80 3.60% 170,000 49,605.00 219,605.00
8-1-81 3.60% 175,000 43,485.00 218,485.00
8-1-82 3.60% 185,000 37,185.00 222,185.00
8-1-83 3.70% 195,000 30,525.00 225,525.00
e 8-1-84 3.70% 200,000 23,310.00 223,310.00
8-1-85 3.70% 210,000 15,910.00 225,910.00
8-1-86 3.70% 220,000 8,140.00 228,140.00
$1,820,000 $357,567.50 $2,177,567.50
Account Funds
Bond Reserve Fund -------------_______________ $
Depreciation and Emergency Replacement Account-
Bond Retirement Account ------------___________
Principal and Interest Account ---------_______
560,000.00*
146,605.91**
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69,121. 65
*The Bond Ordinance No. 6546 requires a maximum Bond Reserve of $300,000.
The additional $260,000 is interest accumulated from investments.
**Bond Ordinance No. 6546 requires a maximum Depreciation and Emergency
Replacement Account of $125,000. The additional $21,605.91 is interest
accumulated from investments.
The call provisions provide that bonds may be called for redemption and payment
on August 1, 1971, or any interest payment date thereafter at par and accrued
interest to date of redemption, together with a premium of 3% of the principal
amount of each such bond so redeemed and paid. Bond Numbers remaining outstanding
at the writing of this Report are Nos. 1781/3600.
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V.
M~ALYSIS OF WATER AND SEWERAGE SYSTEM OPERATIONS
The following analysis has been made of the City's annual audits, annual financial report, and
profit and loss statements for the years 1971 through 1975 and the first ten months of 1976
(unaudited). The comparison of operating revenue and operating expenses have been examined to
determine the areas of increases in each department.
1976
FIRST 10
1971 1972 1973* 1974 1975 MONTHS
OPERATING REVENUE
Water Revenue ------- $ 651,739 $ 630,858 $ 965,012 $1,003,236 $1,041,120 $ 965,160
Sewage -------------- 372,516 384,634 390,624 366,817 399,484 347,008
Miscellaneous Income- 13,684 4,091 2,086 8,258 20,354 9,814
Tapping Service and
Frontage ---------- 11,607 12,171 6,810 19,374 13,250 15,059
Service Charge -
Sanitation Dept. --- 3,124 3,183 3,275 5,368 5,734 4.384
tlJss Revenue ------- $1,052,670 $1,031,754 $1,367,807 $1,403,053 $1,479,942 $1,341,425
OPERATING EXPENSES
Water Supply -------- $ 9,702 . $ 7,046 $ 10,220 $ 12,776 $ 21,344 $ 16,891
Softening and
Treatment --------- 201,504 191,059 204,009 280,758 299,644 271,849
Pumping ------------- 50,794 47,969 52,493 62,982 81,418 72,763
Distribution -------- 84, 171 80,138 103,615 96,203 116,546 88,655
Customers Account
and Collection ---- 114,801 119,051 128,068 160,621 168,966 147,411
Administrative and
General ----------- 147,250 155,871 161,242 199,577 212,899 244,069
Sewage Treatment
and Collection ----- 160,920 157,092 196.502 207.025 261,525 229p442
Total Operating
Expenses ---------- $ 769.142 $ 758.226 $ 856,149 $1.019,942 $1,162.342 $lp071rORO
Net Operating Income
for Debt Service -- $ 283.528 $ 273.528 $ 511,658 $ 383,111 $ 317,600 $ 270,345
*Water rates increased on January I, 1973.
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THE CITY OF SALINA
WATER AND SEWAGE FUND
COMPARATIVE INCOME STATEMENT
1972
December 31
1971
REVENUE
Water revenue ---------------------------_________ $
Sewage ------------------------___________________
Miscellaneous income -----------------------______
Tapping service and frontage --------------------_
Service charge - Sanitation Department ----------_
630,858.30
384,634.35
4, 091. 42
12,171.37
3,183.45
TOTAL REVENUE --------------------------------- $1,034,938.89
OPERATING EXPENSES --------------------------------- 758,229.86
NET INCOME AVAILABLE FOR DEBT SERVICE -------------- $ 276,709.03
$ 651,739.39
372,516.99
13,684.33
11 ,607.85
3.124.26
$1,052,672.82
769,146.06
$ 283,526.76
THE CITY OF SALINA
Saline County, Kansas
WATER AND SEWAGE FUND
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COMPARATIVE OPERATING EXPENSES STATEMENT
WATER SUPPLY EXPENSES
Maintenance - Well pumps and equipment ----
Well power -------------------------------_
Well house signals -----------~------------
River intake power ----------------------__
Maintenance - Building and grounds --------
Maintenance - River basin -----------------
SOFTENING AND TREATMENT EXPENSES
Supervision ------------------------_______
Salaries ------------------------__________
Electric power --------------------------__
Gas service -----------------------------__
Building operating supplies ---------------
Chemicals ------------------------_________
Maintenance - Equipment ---------------____
Maintenance - Buildings -----------------__
Electricity - Calcium plant ---------------
Gas - calcium plant ------------------_____
Supplies - calcium plant ------------------
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PUMPING EXPENSES
Supervision -----------------------________
Salaries -------------------------_________
Electric power ------------------------____
Gas service ----------------------_________
Lubricants -------------------_____________
Building operating supplies -----------____
Maintenance - Electrical equipment & pumps-
Maintenance - Station building and grounds-
DISTRIBUTION EXPENSES
Supervision -----------------______________
Salaries -----------------------___________
Meter maintenance salaries ------------____
Meter maintenance supplies ---------_______
Vehicle and equipment expense ---------____
Tapping supplies ----------------------____
Maintenance - Distribution mains ----------
Maintenance - Elevated tanks --------------
Maintenance - Reservoirs -----------------_
Maintenance - Hydrants -------------_______
Miscellaneous materials and labor ---------
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DECEMBER 31
.!2ll..
$ .62
2,266.39
1,893.16
2,268.80
52.54
564.97
$ 7,046.48
$ 22,516.56
42,726.06
15,736.00
3,460.62
44.96
84,815.74
9,068.18
327.92
3,043.20
6,885.27
2,435.42
$191,059.93
$ 14,027.36
26,309.56
5,361. 72
353.23
47.85
1,175.51
514.10
179.84
$ 47,969.17
$ 8,125.76
38,577.86
12,865.68
308.90
6 , 851. 40
5,891.24
4,253.86
77 8. 46
0.00
441. 00
2.044.23
S 80,138.39
1971
$ 234.35
4,597.21
1,840.32
1,917.60
101. 08
1.012.24
$ 9,702.80
$ 21,527.76
43,137.22
14,016.00
3,797.68
141. 63
99,515.66
6,550.72
302.88
3, 128. 00
7,127.22
2.259.75
$201.504.52
$ 13,339.71
25,909.61
9,245.85
396.20
108.21
1,130.60
564.02
99.90
$ 50.794.10
$ 7,829.46
43,869.94
12,265.74
1,375.27
7,520.77
2,399.82
5 ,672 . 44
258.94
455.00
434.65
2.089.54
$ 84, 171. 57
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DECEMBER 31
CUSTOMERS' ACCOUNTING AND COLLECTION EXPENSES
Office salaries ------------------_________ $
Servicemen and meter readers salaries -----
Servicemen and meter readers supplies --___
Collection stations ------------___________
Maintenance - Office equipment ------______
Office supplies ------------------_________
Vehicle expense ------------_______________
Postage ----------------___________________
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ADMINISTRATIVE AND GENERAL EXPENSES
Supervision ----------------_______________ $
Salaries --------------____________________
Telephone expense --------------___________
Office supplies --------------_____________
Special engineering ------------___________
Social security -------------______________
Insurance --------------___________________
Sales tax ----------------_________________
Property taxes ---------------_____________
Accounts charged off -------------_________
Long and short cash -------------__________
Employees' retirement ----------___________
Accident insurance -------------___________
Auditing expense ------------______________
Contracting service -------------__________
Organizational dues and memberships ------_
Office maintenance and utilities ----______
Service performed - Other departments _____
Car mileage and travel expenses -__________
SEWAGE TREATMENT AND COLLECTION EXPENSES
Supervision --------------_________________ $
Salaries ---------------___________________
Electric power -------------_______________
Gas service -------------__________________
Plant operating supplies ------____________
Maintenance - Equipment ------_____________
Maintenance - Buildings and grounds --_____
Maintenance - Pumping stations -----_______
Maintenance - Sanitary sewers ----_________
Vehicle expense ---------__________________
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1972
49,199.54
47,431. 99
470.93
1,807.00
1,814.07
2,706.49
3,154.79
12,466.57
$119 , 051. 38
13,752.00
5,332.44
3,381.25
227.51
675.00
19,689.31
7,009.99
954.77
35,000.00
843. 13
6.44
20,918.77
15,695.10
3,120.00
3,822.85
733.29
6,900.00
16,650.00
1,159.96
$155,871. 81
34,819.72
70,415.92
26,800.20
3,378.05
872.04
6,894.82
524.13
4,931. 22
2,221.50
6,235.10
$157,092.70
TOTAL OPERATING EXPENSES --------------- $758,229.86
1971
$ 47,052.82
44,920.75
390.87
1,814.55
2,324.37
3,474.53
2,727.17
12,096.55
~114, 801. 61
$ 13,152.00
5,208.00
3,512.85
586.88
675.00
19,264.89
7,298.80
1,165.58
30,000.00
636.63
63.62
18,549.48
16,127.99
4,000.00
2,933.04
718.53
6,900.00
15,519.00
938.45
$147.250.74
$ 39,860.31
70,859.21
25,055.69
3,156.22
194.68
5,429.01
593.99
6,583.72
2,455.49
6,732.40
$160,920.72
$769,146.06
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THE CITY OF SALINA
WATER AJ.'lD SEWAGE FUND
COMPARATIVE STATEMENT OF REVENUE AND EXPENSE
REVENUE
Water Revenue -------------_______________________
Sewage ------------------_________________________
Miscellaneous income -------------________________
Tapping service and frontage -----________________
Service charge - Sanitation Department ___________
1974
December 31
1973
$1,003,236.78
366,817.60
8,258.52
19,374.33
5,368.95
TOTAL REVENUE --------------------------------- $1,403,056.18
OPERATING EXPENSES --------------------------------- 1.019,945.44
NET INCOME AVAILABLE FOR DEBT SERVICE -------------- $ 383.110.74
$
965,012.73
390,624.31
2.086.08
6.810.33
3.275.64
$1,367,809.09
856.153.29
$ 511 ,655.80
THE CITY OF SALINA
Saline County, Kansas
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WATER AND SEWAGE FUND
COMPARATIVE OPERATING EXPENSES STATEMENT
WATER SUPPLY EXPENSES
Maintenance - well pumps and equipment -___
Well power ---------------_________________
Well house signals ---------_______________
River intake power ----------______________
Maintenance - building and grounds ---_____
Maintenance - river basin -------__________
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SOFTENING AND TREATMENT EXPENSES
Supervision -----------____________________
Salaries -------------_____________________
Electric power -------------_______________
Gas service -----------____________________
Building operating supplies --_____________
Chemicals -------------____________________
Maintenance - equipment ---------__________
Maintenance - buildings -------____________
Electricity - calcium plant ----------_____
Gas - calcium plant -------________________
Supplies - calcium plant -----------_______
PUMPING EXPENSES
Supervision ------------___________________
Salaries ------------______________________
Electric Power ----------__________________
Gas service -------------__________________
Lubricants --------------__________________
Building operating supplies ---____________
Maintenance - electrical equipment & pumps-
Maintenance - station building and grounds-
Wearing apparel --------___________________
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DISTRIBUTION EXPENSES
Supervision ----------_____________________
Salaries ------------______________________
Meter maintenance salaries --______________
Meter maintenance supplies --______________
Vehicle and equipment expense _____________
Tapping supplies -------___________________
Maintenance - distribution mains ---_______
Maintenance - storage tanks ----___________
Maintenance - reservoirs -----_____________
Maintenance - hydrants -----_______________
Miscellaneous materials and labor ---______
DECEMBER 31
1974 1973
$ 131. 98 $ 455.54
6,938.37 3,391.53
2,297.39 2,304.10
1,178.22 2,186.96
22.90 110.32
2,208.02 1,772.22
$ 12,776.88 $ 10.220.67
$ 32,065.20 $ 23,099.50
47,449.30 43,438.97
16,191.91 15,214.76
3, 851. 75 2,373.77
76.48 39.95
147,500.96 102,467.40
13,425.52 6,723.76
3,801.61 343.23
3,657.44 2,808.96
9,065.03 5,949.90
3,672.93 1,549.48
$280.758.13 $204.009.68
$ 15,852.73 $ 14,818.89
36,622.35 29,075.92
7,494.60 7,046 . 72
352.08 351. 1 7
108.00 105.70
545.15 756.50
433.73 90.84
131. 61 247.89
1.441.99 0.00
$ 62.982.24 $ 52.493.63
$ 14,260.15 $ 8,517.22
44,654.84 38,123.36
8,094.27 13,338.83
1,306.99 3,576.64
7,837.16 5,167.23
6,906.84 5,429.32
8,554.10 7,967.63
840.04 17,982.89
0.00 0.00
1,311.51 1,642.90
2.437.56 1,869.64
$ 96,203.46 $103.615.66
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CUSTOMERS' ACCOUNTING AND COLLECTION EXPENSES
Office salaries --------------------------- $
Servicemen and meter readers salaries -----
Servicemen and meter readers supplies -----
Collection stations -----------------------
Maintenance - office equipment ------------
Office supplies ---------------------------
Vehicle expense -------------------------__
Postage --------------------------------___
Lease data processing equipment -----------
Wearing apparel ----------------------_____
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ADMINISTRATIVE AND GENERAL EXPENSES
Supervision --------------------------_____ $
Salaries ----------------------------______
Telephone expense --------------------_____
Office supplies ---------------------______
Special engineering -------------------____
Social security -----------------------____
Insurance ------------------------_________
Sales tax ----------------------------_____
Property taxes ------------------------____
Accounts charged off ----------------------
Long and short cash -----------------------
Employees' retirement ---------------------
Accident insurance ----------------------__
Auditing expense --------------------------
Contracting service -------------------____
Organizational dues and memberships -------
Office maintenance and utilities ----------
Service performed - other departments -----
Car mileage and travel expenses -----------
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SEWAGE TREATMENT AND COLLECTION EXPENSES
Supervision -------------------____________
Salaries ------------------------__________
Electric power ----------------------______
Gas service -------------------------______
Plant operating supplies ---------------___
Maintenance - equipment ------------------_
Maintenance - buildings and grounds -------
Maintenance - pumping stations ------------
Maintenance - sanitary sewers -------------
Vehicle expense -----------------__________
Wearing apparel -------------------________
DECEMBER 31
1974
61,493.46
57,403.96
854.52
1,852.10
2,176.90
4,213.92
5,123.60
15,970.27
11,353.72
178.91
$160,621.36
15,840.80
7,338.04
3,964.57
1,682.92
2,384.00
26,168.79
7,213.05
1,331. 84
40,000.00
2,107.20
20.61
26,607.97
21,975.93
7,700.00
7,277.13
570.42
6,900.00
18,265.00
2.229.70
$199.577.97
$ 28,988.40
104,667.11
28.714.47
4,276.54
1,284.79
13.654.21
1,773.43
8,305.23
2,380.23
12,648.99
332.00
TOTAL OPERATING EXPENSES ------------ $1.019.945.44
$207.025.40
1973
$ 51,659.33
49,031. 59
521.90
1,806.70
2,357.53
4,564.00
4,247.87
13,880.04
0.00
0.00
$128.068.96
$ 14,358.00
5,869.25
3,723.78
321. 10
681. 38
21,656.20
7,516.03
704.69
35.000.00
408.48
80.84
20,423.04
19,666.35
3,550.00
1,612.25
918.72
6,900.00
16,650.00
1.202.17
$161.242.28
$ 25,278.58
84,389.03
27,738.67
4,406.58
995. 77
13.204.54
9,065.41
10,010.91
10.415.65
10.997.27
0.00
$196.502.41
$856.153.29
CITY OF SALINA, KANSAS - WATER AND SEWERAGE DEPARTMENT
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PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 1975
REVENUE
Water Revenue -----------------__________
Sewerage Revenue ----------------________
Miscellaneous Income ----------------____
Front Footage and Tapping Charges -------
Service Charge - Sanitation Department --
$1,041,120.65
399,484.57
20,354.16
13,250.57
5,734.05
TOTAL INCOME --------------------------------------------------_____ $1,479,944.00
WATER SUPPLY EXPENSES
Maintenance - Well Pumps and Equipment -- $
Well Power --------------________________
Well House Signals -----------___________
River Intake Power ----------____________
Maintenance - Buildings and Grounds -----
Maintenance - River Basin ------------___
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SOFTENING AND TREATMENT EXPENSES
Supervision ------------_________________ $
Salaries --------------__________________
Electric Power ---------------___________
Gas Service -----------------____________
Building Operating Supplies -----________
Chemicals -------------__________________
Maintenance - Equipment ------___________
Maintenance - Buildings ---------________
Electric Power - Calcining Plant ----____
Gas Service - Calcining Plant -----______
Supplies - Calcining Plant ------________
PUMPING EXPENSES
Supervision -------------________________ $
Salaries --------------__________________
Electric Power -----------_______________
Gas Service --------------_______________
Lubricants -------------_________________
Building Operating Supplies -----________
Maintenance - Electric Equipment & Pumps-
Maintenance - Station Building & Grounds-
Wearing Apparel -----------______________
-
DISTRIBUTION EXPENSES
Supervision ------------_________________ $
Salaries ---------------_________________
Meter Maintenance - Salaries ---_________
Meter Maintenance - Supplies ---_________
Vehicles - Equipment Expenses ---________
Tapping Supplies ------------____________
Maintenance - Distribution Mains --------
Maintenance - Storage Tanks -----------__
Maintenance - Hydrants -----------_______
Miscellaneous Materials and Labor -------
5,170.80
10,602.50
2,402.38
2,411.30
32.86
725.10 $ 21,344.94
35,188.00
48,709.10
27,535.47
5,316.08
66.89
152,614.78
8,954.63
45.79
5,840.68
11 ,544.16
3 , 828. 78
$299,644.36
21,192.93
44,205.10
13,158.07
391. 02
193.55
643.97
43.56
238.15
1,351.98 $ 81,418.33
19,048.13
53,099.07
8,872.69
1,683.29
7,035.92
9,899.16
10,247.36
3,241.13
2,349.41
1.070.31
$116,546.47
$ 17,392.80
7,690.89
3,936.70
990.22
675.00
29,640.89
6,008.35
783.72
45,000.00
769.44
1,346.35
33,970.34
28,108.63
1,100.00
3,247.50
274.12
9,381. 00
20,977.50
1.605.55 $212,899.00
$ 32,415.43
119,397.86
47,284.68
4,667.52
1,905.96
23,007.39
1,413.60
10,060.98
4,489.04
16,162.21
632.53
88.37
0.00 $261.525.57
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CUSTOMER ACCOUNTING AND COLLECTION EXPENSES
Office Salaries ------------------------- $
Servicemen and Meter Readers Salaries ---
Servicemen and Meter Readers Supplies ---
Collection Stations ---------------------
Maintenance - Office Equipment ----------
Office Supplies -------------------------
Vehicle Expenses ------------------------
Lease Electronic Data Processing Equipment-
Postage ---------------------------______
Wearing Apparel -------------------------
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ADMINISTRATIVE AND GENERAL EXPENSES
Supervision ---------------------________
Salaries ---------------------___________
Telephone Expenses -----------------_____
Office Supplies ------------------_______
Special Engineering ---------------______
Social Security ----------------------___
Insurance - Buildings -----------------__
Sales Tax -------------------------______
Property Taxes -------------------_______
Accounts Charged Off --------------------
Long and Short Cash ---------------------
Employees Retirement --------------------
Accident Insurance ----------------------
Auditing Expense ------------------______
Contracting Services --------------------
Organizational Dues - Membership --------
Maintenance - Government Center ---------
Services Performed - Other Departments --
Car Mileage and Travel Expenses ---------
SEWAGE TREATMENT AND COLLECTION EXPENSES
Supervision ---------------------________
Operating Salaries --------------------__
Electric Power ------------------------__
Gas Service -----------------____________
Plant Operating Supplies -------------___
Maintenance - Equipment -----------------
Maintenance - Building and Grounds ------
Maintenance - Pumping Stations ----------
Maintenance - Sanitary Sewer ------------
Vehicle Expenses -------------------_____
Wearing Apparel -------------------------
Q's TV Expenses ----------------_________
Pump Station Monitor ---------------_____
58,697.37
63,267.17
167.60
1 , 841. 35
2,335.18
5,253.80
6,176.47
13,806.00
17,058.67
363.04
$168,966.65
TOTAL OPERATING EXPENSES --------------------------------------------____ $1,162,345.32
NET INCOME AVAILABLE FOR DEBT SERVICE ----------------------------------- $ 317.598.68
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CITY OF SALINA, KANSAS - WATER AND SEWERAGE DEPARTMENT
e
PROFIT AND LOSS STATEMENT
FOR THE FIRST NINE MONTHS OF 1976
REVENUE
Water Revenue -----------------------______
Sewerage Revenue ------------------------__
Miscellaneous Income ----------------------
Front Footage and Tapping Charges ---------
Service Charge - Sanitation Department ----
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SOFTENING AND TREATMENT EXPENSES
Supervision ---------------------__________ $
Salaries ---------------------------_______
Electric Power ---------------------_______
Gas Service ----------------------_________
Building Operating Supplies ---------------
Chemicals ---------------------____________
Maintenance - Equipment -----------------__
Maintenance - Buildings -------------______
Electric Power - Calcining Plant ----------
Gas Service - Calcining Plant -------------
Supplies - Calcining Plant -------------___
PUMPING EXPENSES
Supervision ----------------_______________ $
Salaries -------------------_______________
Electric Power -------------------_________
Gas Service --------------------___________
Lubricants -----------------_______________
Building Operating Supplies --------_______
Maintenance - Electric Equipment & Pumps --
Maintenance - Station Building & Grounds --
Wearing Apparel -----------------__________
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DISTRIBUTION EXPENSES
Supervision -----------------______________ $
Salaries -----------------_________________
Meter Maintenance - Salaries ------________
Meter Maintenance - Supplies ----__________
Vehicles - Equipment Expenses --------_____
Tapping Supplies --------------____________
Maintenance - Distribution Mains ----------
Maintenance - Storage Tanks -----------____
Maintenance - Hydrants ------------________
Miscellaneous Materials and Labor ---------
$867,805.58
311.591.46
9.476.53
12,563.99
3.890.93
577 .21
8.770.00
2.575.56
3.455.03
18.47
419.92
28,026.80
42.536.26
27.873.00
5.314.65
113.81
104,925.88
4.766.54
264.47
6.154.22
20,584.91
1.232.49
16.665.77
31,407.23
17,016.53
286.78
144.60
584.74
0.00
190.00
133.59
11.089.01
36,564.18
7.063.99
4.593.39
6,436.22
5.874.42
3,233.58
847.22
3,535.53
762.93
$ 15.816.19
$241,793.03
$ 66.429.24
$ 80,000.47
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CUSTOMER ACCOUNTING AND COLLECTION EXPENSES
Office Salaries ------------_______________
Servicemen and Meter Readers Salaries -----
Servicemen and Meter Readers Supplies -----
Collection Stations -----------------______
Maintenance - Office Equipment -------_____
Office Supplies ---------------____________
Vehicle Expenses -------------_____________
Lease Electronic Data Processing Equipment-
Postage ----------------___________________
Wearing Apparel ---------------____________
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ADMINISTRATIVE - GENERAL EXPENSES
Supervision ------------___________________
Salaries --------------____________________
Telephone Expenses ------------____________
Office Supplies -------------______________
Special Engineering -------------__________
Social Security -----------________________
Insurance - Buildings ------------_________
Sales Tax -----------------________________
Property Taxes ------------------__________
Accounts Charged Off --------------________
Long and Short Cash ------------___________
Employees Retirement -------------_________
Accident Insurance ------------____________
Auditing Expenses ----------------_________
Contracting Services -----------___________
Organizational Dues - Membership --------__
Maintenance - Government Center --------___
Services Performed - Other Departments ----
Car Mileage and Travel Expenses -----______
SEWAGE TREATMENT AND COLLECTION EXPENSES
Supervision --------------_________________
Operating Salaries ----------______________
Electric Power ----------------____________
Gas Service -------------__________________
Plant Operating Supplies --------__________
Maintenance - Equipment --------___________
Maintenance - Building and Grounds ----____
Maintenance - Pumping Stations -----_______
Maintenance - Sanitary Sewer ----__________
Vehicle Expenses -----------_______________
Wearing Apparel ------------_______________
Q's TV Expenses -------____________________
Pump Station Monitor ---------_____________
$ 44,067.02
50,549.82
280.48
1,466.20
1,949.02
3,328.56
4,265.07
10,345.10
16,532.78
201. 43 $132,985.48
$ 13,814.40
6,468.17
2,441.11
754.97
675.00
32 , 367. 95
0.00
399.47
37,502.00
0.00
29.16
36,945.27
33,515.81
3,565.00
2,198.22
115.30
10,734.00
17,027.00
4,003.37 $202,556.20
$ 20,761.07
10 1 , 832 . 84
43,593.20
5, 277. 04
1,263.73
11,662.19
1,214.40
4,351.56
1,534.78
14,357.21
715.01
1,242.42
0.00 $207,805.45
TOTAL OPERATING EXPENSES -------------------------------------___________ $ 947.386.06
NET INCOME AVAILABLE FOR DEBT SERVICE --------------------------------___ $ 257,942.43
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CITY OF SALINA, KANSAS - WATER AND SEWERAGE DEPARTMENT
BALANCE SHEET
(AS OF SEPTEMBER 30, 1976)
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ASSETS
Accounts Receivable ----------------_______ $
Operating Store --------------------_______
Operating Store - Inventory -----------____
Meter Parts -----------------------________
Meter Parts - Inventory ------------_______
Jobs in Process -------------------________
Cash --------------------__________________
Furniture and Fixtures ---------------_____
Plants, Mains, Equipment, etc. ---------___
Water and Sewerage Treasury -------________
Operating Treasury -----------------_______
Bond and Interest ----------------_________
Bond Reserve --------------------__________
Bond Reserve - Investments --------________
Depreciation and Emergency -------------___
Depreciation and Emergency - Investments --
Extension Bond Retirement -------------____
Extension Bond Retirement - Investments ---
140,309.78
0.00
88,532.93
2,376.76
12,463.30
0.00
8,802.12
88,129.38
9,787,568.46
272,145.23
180,462.45
51,507.85
44.69
545,000.00
16,618.57
122,000.00
0.00
0.00
TOTAL ASSETS ---------------------------------------------------____ $11,315,961.32
LIABILITIES
Accounts Payable Engs. ------------------__ $
Sanitation Fees Collected ----------------_
Bond Indebtedness --------------___________
Reserve for Services Performed ------______
Reserve for Auditing -----------___________
Meter Deposits ----------------____________
Reserve for Property Taxes -------------___
Reserve for Bond Principal ------------____
Reserve for Bond Interest -----------______
Reserve for Bond Reserve --------__________
Reserve for Depreciation and Emergency ----
Reserve for Extension and Bond Retirement -
181,508.77
357.17
1,820,000.00
17,027.00
15,231. 00
49,565.00
37,502.00
3,164.00
43,005.65
545,044.69
138,618.57
0.00
TOTAL LIABILITIES ----------------------------------------------____ $ 2,844,695.85
PROFIT & LOSS
Net Worth --------------------------------- $8,371,867.48
Net Profit -------------------------------- 99.398.01
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TOTAL LIABILITIES AND NET WORTH ------------------------------------ $11.315.961.32
$ 8,471.265.47
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SALINA, KANSAS
WATERWORKS PROJECT
AVERAGE NUMBER OF WATER AND SEWER CONNECTIONS
1972 13,336
1973 13,581
1974 13,016 *
1975 14,154
1976 14,406
*The City of Salina was converted to the computer system in 1974 which gave an
actual count of customers. Previously, the count had been done manually.
WATER CUSTOMERS
(10 largest)
NAME TOTAL GALLONS PURCHASED 1975
e 1. WESTINGHOUSE ELECTRIC 99,801,152
2. CAPEHART HOUSING 59,444,720
3. TONY'S PIZZA 28,278,888
4. ASBURY HOSPITAL 21,991,200
5. RURAL WATER DISTRICT 19, 271 , 400
6. ST. JOHNS HOSPITAL 18,336,472
7. KANSAS WESLEYAN UNIVERSITY 14,464,824
8. ROBERTS MANUFACTURING 13,092,992
9. STATLER HILTON 11 ,522,940
10. ROMNEY INTERNATIONAL 11,509,476
-
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SALINA, KANSAS
WATER AND SEWER SYSTEM OPERATIONS
1971 1971
~10NTH SERVICE CHARGE
OF WATER SEWER MISCELLANEOUS TAPS AND FROM TOTAL GALLONS GALLONS
YEAR INCOME INCOME INCOME FRONT FOOTAGE SANITATION INCOME PUMPED SOLD
January $ 43,953.81 $ 30,455.50 $ 419.94 $ 36.00 $ 0.00 $ 74,865.25 141,972,000 113,243,460
February 39,488.87 30,351.67 0.00 0.00 258.63 72 ,566.94 125,884,000 96,987,176
Ma rch 42,992.82 30,431.69 1,171.29 2 , 166 . 90 257.25 74,552.18 141,807,000 96,102,292
Ap r; 1 45,741.75 30,428.85 816.37 135.00 257.94 77,379.91 162,991,000 115,957,952
May 53,386.85 30 ,461 .43 9,002.65 1,639.86 259.92 94,750.71 176,493,000 143,364,672
June 56,608.80 30,401.28 83.44 4,161.23 260.25 91,515.00 228,285,000 117,115,377
July 69,043.23 31,765.12 451.75 24.00 258.96 101,543.06 227,905,000 204,387,260
August 70,217.21 31,726.94 51.78 1,135.50 260.52 103,391.95 288,791,000 240,341,376
September 80,634.29 31,795.34 418.47 641.86 260.97 113,750.93 219,350,000 203,831,496
October 58,987.48 31,754.94 548.96 324.00 263.52 91,878.90 174,224,000 161,303,208
November 48,030.44 31,492.57 475.95 1,184.50 262.86 81,446.32 131,667,000 124,060,288
December 42,653.84 31,451.66 243.73 159.00 523.44 75,031.67 133,347,000 100,235,740
$651,739.39 $372,516.99 $13,684.33 $11 ,607.85 $3,124.26 $ 1,052,672.82 2,152,716,000 1,716,930,297
1972 1972
MONTH SERVICE CHARGES
OF WATER SEWER MISCELLANEOUS TAPS AND FROM TOT At GALLONS GALLONS
YEAR INCOME INCOME INCOME FRONT FOOTAGE SANITATION INCOME PUMPED SOLD
January $ 43,509.85 $ 31,454.67 $ 101 .29 $ 358.75 $ 0.00 $ 75,424.56 130,994,000 100,386,836
February 41,848.52 31,524.21 955.56 12.00 261.00 74,601.29 133,904,000 99,804,892
Ma rch 46,002.72 31,542.32 347.31 180.00 263.01 78,335.36 151,754,000 118,663,468
Apri 1 47,742.86 31,440.95 71.50 852.69 262.62 80,370.62 157,544,000 120,569,372
May 49,889.25 31,583.37 1,008.65 2,035.86 263.97 84,781.10 164,635,000 126,966,268
June 63,697.73 31,299.21 512.68 1 ,951 . 42 264.60 97,725.64 238,860,000 175,447,880
July 75,090.00 32,784.69 162.20 1,587.00 264.78 109,888.67 242,196,000 218,697,996
August 59,044.38 32,563.68 478.46 3,303.92 265.32 95,655.76 235,069,000 188,416,712
September 66,862.91 32,667.22 238.44 1,064.73 266.79 101,100.09 165,385,000 157,661,994
October 48,298.75 32,609.52 88.86 753.00 267.48 82,017.61 151,327,000 117,958,104
November 45,480.40 32,578.92 0.00 60.00 268.62 78,387.94 136,067,000 111,015,168
December 43,390.93 32,585.59 126.47 12.00 535.26 76,650.25 138,613,000 104,436,508
$630,858.30 $384,634.35 $ 4,091.42 $12,171.37 $3,183.45 $1,034,938.89 2,046,348,000 1,640,025,198
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SALINA, KANSAS
WATER AND SEWER SYSTEM OPERATIONS
1973 1973
MONTH WATER SEWER MISCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS
OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMPED SOLD
YEAR SANITATION
January $ 66,803.88 $ 32,450.15 $ 243.49 $ 748.47 $ 0.00 $ 100,245.99 143,345,000 107,609,524
February 63,866.56 32,468.59 182.67 555.55 266.64 97,340.01 131,752,000 101,527,536
Ma rch 64,659,01 32,485.83 50.45 679.74 267.96 98,142.99 145,189,000 105,357,296
April 62,636.10 32,520.34 402.71 739.00 268.95 96,567.10 139,769,000 99,213,224
May 69,226.78 32,529.27 243.34 899. 14 270.45 103,168.98 166,447,000 112,303,972
June 92,903.97 32,706.25 10.00 292.59 270.15 126 ,182.96 270,841,000 164,378,984
July 140,129.07 32,056.27 98.00 480.00 270.48 173,033.82 291,211,000 277,850,584
August 102,922.84 32,715.45 229.30 668.83 274.20 136,810.62 242,188,000 220,127,388
September 96,767.35 32,795.61 76.84 300.50 273.06 130,213.36 157,616,000 148,954,512
October 67,664.82 32,639.38 178.52 240.00 276.93 100,999.65 154,196,000 110,132,528
November 69,602.19 32,647.61 181.45 1 ,206.51 276.96 103,914.72 142,908,000 111 ,651,716
December 67,830.16 32,609.56 189. 31 0.00 559.86 101,188.89 139,320,000 114,438,016
$965,012.73 $390,624.31 $ 2,086.08 $ 6,810.33 $3,275.64 $ 1,367,809.09 2,124,782,000 1,673,545,280
1974 1974
MONTH WATER SEWER MISCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS
OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMPED SOLD
YEAR SANITATION
January $ 66,508.53 $ 30,928.27 $ 551.49 $ 847.91 $ 0.00 $ 98,836.20 151,223,000 103,107,312
February 63,208.37 32,509.93 1 ,549. 17 790.47 280.53 98,338.47 123,918,000 99,660,528
March 65,618.33 32,497.70 2,001.09 210.00 654.37 100,981.49 146,312,000 106,615,432
Apri 1 68,467.89 32,583.46 444.85 3,500.00 468.45 105,464.65 148,186,000 120,042,032
May 74,955.05 10,111.01 245.47 1,786.09 468.10 87,565.72 173,880,000 121,685,388
June 82,691.42 32,820.18 529.78 72.00 212.75 116 ,326. 13 219,588,000 143,246,488
July 131,460.51 32,584.07 172.25 1,515.12 469.35 166,201.30 385,339,000 253,124,696
August 139,523.37 32,573.05 208.73 1,282.50 466.85 174,054.50 208,399,000 279,352,568
September 87,438.08 32,412.89 332.58 6,515.00 468.70 127,167.25 171,142,000 152,550,860
October 82,582.12 33,198.55 1,853.92 48.00 469.90 118,152.49 167,042,000 136,665,584
November 71 ,368.42 31,957.60 307.19 681.00 467.90 104,782.11 148,827,000 114,021,380
December 69,414.69 32,640.89 62.00 2,126.24 942.05 105,185.87 148,762,000 110,773,564
$1,003,236.78 $366,817.60 $ 8,258.52 $19,374.33 $5,368.95 $1,403,056.18 2,192,618,000 1,740,845,832
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SALINA, KANSAS
WATER AND SEWER SYSTEM OPERATIONS
1975 1975
MONTH WATER SEWER MISCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS
OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMP ED SOLD
YEAR SAN ITATION
January $ 73,888.73 $ 31,990.66 $ 4,375.25 $ 412.86 $ 0.00 $ 110,667.50 148,761,000 119,538,628
February 68,578.66 32,169.26 600.44 25.00 471.90 101,845.26 135,269,000 107,494,332
Ma rch 67,492.58 32,351.95 234.60 1,328.02 469.25 101,876.40 146,204,000 106,551,852
Apri 1 72,037.21 32,285.98 366.13 1,849.80 471 .20 107,010.32 150,985,000 95,909,308
May 82,817.97 32,633.49 159.04 1,135.00 475.46 117,220.96 197,200,000 137,370,200
June 88,797.53 32,621.44 245.76 923.69 477.20 123,065.62 180,690,000 151,644,284
July 101,962.08 34,515.20 174.74 827.43 478.65 137,958.10 329,644,000 181,505,192
August 152,557.05 34,344.15 131.90 1,957.60 478.10 189,468.80 292,049,000 253,438,856
September 99,526.23 33,969.53 11 ,040.48 1,208.90 480.95 146,226.09 180,057,000 166,545,216
October 80 ,441. 51 34,076.43 407.41 1,886.41 481. 39 117,293.15 182,745,000 152,188,763
November 83,281.84 34,335.93 1,461.09 512.43 481.65 120,072.94 150,432,000 138,283,508
December 69,739.26 34,190.55 1 ,157.32 1,183.43 968.30 107,238.86 147,456,000 110,793,012
$1,041,120.65 $399,484.57 $20,354.16 $13,250.57 $5,734.05 $ 1,479,944.00 2,241,492,000 1,721,263,151
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SALINA, KANSAS
WATER DEPARTMENT OPERATIONS
1971 1972
GALLONS GALLONS AVERAGE MAXIMUM MINIMUM GALLONS GALLONS AVERAGE MAXIMUM MINIMUM
PUMPED SOLD DAY DAY DAY PUMPED SOLD DAY DAY DAY
January . 141,972,000 113,243,460 4,579,741 5,181,000 3,242,000 130,994,000 100,386,836 4,225,612 4,932,000 3,466,000
February. 125,884,000 96,987,176 4,495,857 4,862,000 4,111 ,000 133,904,000 99,804,892 4,617,379 6,018,000 4,002,000
March 141,807,000 96,102,292 4,574,419 5,377 ,000 3,844,000 151,754,000 118,663,468 4,895,290 6,960,000 3,930,000
Apri 1 . 162,991,000 115,957,952 5,433,033 6,447,000 4,348,000 157,544,000 120,569,372 5,251,466 7,399,000 3,530,000
May. . 176,493,000 143,364,672 5,693,322 8,094,000 3,943,000 164,635,000 126,966,268 5,310,8 8,137,000 3,414,000
June. . 228,285,000 117,115,377 7,609,500 12,414,000 4,869,000 238,860,000 175,447,880 7,962,000 11 ,019,000 5,469,000
July. . 227,905,000 204,387,260 7,351,774 10,962,000 3,430,000 242,196,000 218,697,996 7,812,774 13,743,000 4,242,000
August. . . 288,791,000 240,341,376 9,315,838 13 ,549 ,000 5,442,000 235,069,000 188 ,416 , 712 7,582,870 11 ,543,000 4,226,000
September . 219,350,000 203,831,496 7,311 ,666 10,836,000 3,833,000 165,385,000 157,661,994 5,512,833 6,935,000 4,224,000
October . 174,224,000 161,303,208 5,620,129 6,712,000 4,153,000 151,327,000 117,958,104 4,881.516 6,059,000 3,945.000
November. . 131,667,000 124,060,288 4,389.443 5,403,000 3,509,000 136,067,000 111,015,168 4,535,566 5,569,000 3,777 ,000
December. . 133,347,000 100,235,740 4,301,516 5,099,000 3,376,000 138,613 ,000 104,436,508 4,471,387 5,052,000 3,823,000
2,152,716,000 1,716,930,297 2,046,348,000 1,640,025,198
Line Loss Ratio. . . . . . . . 435,785,703 406,352,852
Percentage Ratio . . . . . . . 20.2% 19.9%
1973 1974
GALLONS GALLONS AVERAGE MAXIMUM MINIMUM GALLONS GALLONS AVERAGE MAXIMUM MINIMUM
PUMPED SOLD DAY DAY DAY PUMP ED SOLD DAY DAY DAY
January . 143,345,000 107,609,524 4,624,032 5,002,000 3,938,000 151,223,000 103,107,312 4,878,161 5,584,000 4,105,000
February. 131,752,000 101,527,536 4,705,428 5 , 161 , 000 4,119,000 123,918,000 99,660,528 4,425,285 5,830,000 3,671,000
Ma rch 145,189,000 105,357,296 4,683,516 5,255,000 3,925,000 146,312,000 106,615,432 4,719,741 5,576,000 3,529,000
Apri 1 139,769,000 99,213,224 4,658,966 4,993,000 3,923,000 148,186,000 120,042,032 4,939,533 5,452,000 3,630,000
May. . . ]66,447,000 112,303,972 5,369,258 7,589,000 3,845,000 173,880,000 121,685,388 5,609,032 6,347,000 4,233,000
June. . . 270,841,000 164,378,984 9,028,033 13,328,000 5,057,000 219,588,000 143,246,488 7,319,600 10,297,000 4,697,000
July. .' . 291,211 ,000 277,850,584 9,393,903 15,098,000 4,988,000 385,339,000 253,124,696 12,430,290 13,817,000 8,929,000
August. . . 242,188,000 220,127,388 7,812,516 10,782,000 5,783,000 208,399,000 279,352,568 6,722,548 11 ,562,000 5,284,000
September . 157,616,000 148,954,512 4,658,966 6,621,000 4,169,000 171,142,000 152,550,860 5,704,733 7,030,000 4,922,000
October . 154,196,000 110,132,528 4,974,064 5,539,000 4,348,000 167,042,000 136 ,665 ,584 5,388,451 6,708,000 4,799,000
November. . 142,908,000 111,651,716 4,763,600 5,069,000 4,053,000 148,827,000 114,021,380 4,960,900 5,839,000 4,052,000
December. . 139,320,000 114,438,016 4,494,193 4,894,000 3,472,000 148,762,000 11 0,773,564 4,798,774 5,351,000 3,880,000
2,124,782,000 1,570,551,070 2,192,618,000 1,740,845,832
Li ne Loss Rati 0 . . . . . . . 451,236,720 451,772,168
Percentage Ratio. . . . . . . 21.2% 20.6%
January .
February.
Ma rch
Apri 1
May. .
June .
July .
August
September
October .
November.
December.
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GALLONS
PUMPED
148,761,000
135,269,000
146,204,000
150,985,000
197,200,000
180,690,000
329,644,000
292,049,000
180,057,000
182,745,000
150,432,000
147,456,000
GALLONS
SOLD
119,538,628
107,494,332
106,551,852
95,909,308
137,370,200
151,644,284
181,505,192
253,438,856
166,545,216
152,188,763
138,283,508
110,793,012
2,241,492,000 1,721,263,151
Line Loss Ratio . . . . . .. 520,228,489
Percentage Ratio. . . . . . . 23.2%
1975
AVERAGE
DAY
4,798,741
4,831,035
4,716,258
5,032,833
4,870,483
7,305,900
10,633,677
9,420,935
6,001,900
5,895,000
5,014,400
4,756,645
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SALINA, KANSAS
WATER DEPARTMENT OPERATIONS
MAXIMUM
DAY
5,387,000
5,553,000
5,608,000
5,874,000
9,308,000
7,199,000
13,321,000
14,190,000
8,894,000
7,190,000
6,006,000
5,405,000
MINIMUM
DAY
4,388,000
4,474,000
4,089,000
4,133,000
5,031,000
5,235,000
7,114,000
5,482,000
4,642,000
5,052,000
4,066,000
3,811,000
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VI.
WATER AND SEWER RATE SCHEDULES
There are 14.406 water customers and sewer connections in the City of
Salina. Kansas. The present water rates. effective January 1. 1973 and
the present sewer rates. effective January 31, 1962, are as follows:
BASED ON MONTHLY USE
EXCEPT FOR THE MINIMUM AMOUNTS ALLOWED
ACCORDING TO THE SIZE OF METER
RESIDENTIAL AND COMMERCIAL CONSUMERS INSIDE CITY:
*First
2,000 Cu. Ft. @ 39~ per 100 Cubic Feet
Next
28.000 Cu. Ft. @ 27~ per 100 Cubic Feet
Allover 30,000 Cu. Ft. @ 24~ per 100 Cubic Feet
Monthly minimum charges are as follows. based on size of meter installed:
Size of Minimum Cu. Ft.
meter Char~e allowed
e 5/8" $ 2.00 300
3/4" 3.10 500
1" 3.90 600
1-1/2" 6.50 1,000
2" 7.95 1,100
3" 14.75 2.000
4" 77.00 25,000
6" 110.00 30,000
8" 125.00 30,000
*Multiple consumers served by a master meter are charged at 39C per 100 cubic
feet for all water consumed in excess of the minimum.
Approximately
7-1/2 gallons per cubic foot
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BASED ON MONTHLY USE
EXCEPT FOR THE MINIMUM AMOUNTS ALLOWED
ACCORDING TO THE SIZE METER
RESIDENTIAL AND COMMERCIAL CONSUMERS OUTSIDE CITY:
*First 2,000 Cu. Ft. @ 48.75~ per 100 Cu. Ft.
Next 28,000 Cu. Ft. @ 33.75~ per 100 Cu. Ft.
Allover 30,000 Cu. Ft. @ 30.00~ per 100 Cu. Ft.
Monthly minimum charges**
Size of Minimum Cu. Ft.
meter charge allowed
5/8" $ 4.00 300
3/4" 6.20 500
e 1" 7.80 600
1-1/2" 13.00 1 , 000
2" 15.90 1,100
3" 29.50 2,000
4" 154.00 25,000
6" 220.00 30,000
8" 250.00 30,000
*Mu1tip1e consumers served by a master meter are charged at 48.75~ per 100
cubic feet for all water consumed in excess of the minimum.
**Minimum charge for Rural Water Districts is 125% of the inside city minimum.
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PROCEDURE OF DETERMINING FEES
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The sewer use fee is refigured annually and remains constant starting with the
July billing through the following June.
RESIDENTIAL:
For each residence of less than four units served by a master water meter and
discharging waste to the sanitary sewer system, the sewer use fee is based on
the average monthly water consumption according to the meter reading of January,
February, and March. The sliding scale of the attached rate schedule applies.
MULTIPLE DWELLINGS SERVED BY MASTER WATER METER:
The sewer use fee for licensed Apartment Houses and Mobile Home Courts of four
or more units, served by a master water meter or meters, is based on the average
monthly water consumption according to the meter readings of January, February,
and March.
RESIDENCES NOT CONSUMING CITY WATER:
Residences not consuming city water, but which are served by the sanitary sewer
system are charged a flat monthly fee of $1.50.
COMMERCIAL AND INDUSTRIAL:
The sewer use fee for Commercial and Industrial water consumers served by the
sanitary sewer system is based on the average monthly water consumption of the
previous calendar year. The sliding scale of the attached rate schedule applies.
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COMMERCIAL AND INDUSTRIAL CONCERNS NOT CONSUMING CITY WATER:
Engineering surveys determine the sewer use fee for commercial and industrial
concerns served by the sanitary sewer but using water from a source other than
the city.
SPECIAL ALLOWANCES:
For consumers where at least 25% of the water consumed does not eventually
reach the sanitary sewer system, allowance is made in determining the sewer use
fee.
COMMERCIAL AND INDUSTRIAL CONCERNS CONSUMING WATER IN ADDITION TO CITY WATER:
Engineering surveys determine the sewer use fee in cases where water consumed
from other sources exceed water purchased from the city by at least 25%.
If the quantity or type and character of such sewage discharged into such
system shall render it difficult to establish a fair and equitable sewage
service charge, the customer shall at his sole cost and expense install and
maintain in good operating condition suitable meters or measuring and sampling
devices of standard type and design as required to determine the characteristics
of the sewage, at the appropriate point or points as are necessary to properly
measure the customers' sewage discharges and shall permit the City to read
meters, measuring or sampling devices, and sewage charges for such customer shall
be established in accordance with such metering records and/or sampling devices.
OUTSIDE CITY RATES:
Outside city rates, except in cases of a special contract, are double the minimum
plus 25% additional for all in excess of the minimum.
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CITY OF SALINA WATER AND SEWERAGE DEPARTMENT
Sewer Use Rates Effective Jan. 31, 1962
*Inside city rates except for multiple living units of four or more in
number served by a master water meter:
First 500 Cu. Ft. or 3,750 Gals. $1.35 per month minimum.
@27~ per C Cu. Ft. or 36~ per M Gals.
Next 500 Cu. Ft. or 3,750 Gals.
@22~ per C Cu. Ft. or 29.33~ per M Gals. = $1.10
Next 1,000 Cu. Ft. or 7,500 Gals.
@20~ per C Cu. Ft. or 26.66~ per M Gals. - $2.00
Next 3,000 Cu. Ft. or 22,500 Gals.
@16~ per C Cu. Ft. or 21.33~ per M Gals. - $4.80
Next 15,000 Cu. Ft. or 112,500 Gals.
@12~ per C Cu. Ft. or 16~ per M Gals. - $18.00
Next 20,000 Cu. Ft. or 150,000 Gals.
@8~ per C Cu. Ft. or 10.66~ per M Gals. - $16.00
Next 40,000 Cu. Ft. or 300,000 Gals.
@6~ per C Cu. Ft. or 8~ per M Gals. - $24.00
Next 70,000 Cu. Ft. or 525,000 Gals.
@4~ per C Cu. Ft. or 5.33~ per M Gals. - $28.00
Allover 150,000 Cu. Ft. or 1,125,000 Gals.
@2~ per C Cu. Ft. or 2.66~ per M Gals.
*Multiple living units of four or more units, served by a master water meter,
effective July 1, 1963:
First 500 Cu. Ft. or 3,750 Gals. $1.35 per month minimum.
@27~ per C Cu. Ft. or 36~ per M Gals.
Allover 500 Cu. Ft. or 3,750 Gals.
@22~ per C Cu. Ft. or 29.33~ per M Gals.
Outside city rates, except in cases of a special contract, are double the
minimum plus 25% additional for all in excess of the minimum.
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The Gross Revenues produced from the water and sewer rates at Salina, Kansas for
the past five years are as follows:
YEAR
1971
1972
1973
1974
1975
COMBINED WATER/
SEWER REVENUE
$1,024,255
1,015,492
1,355,636
1,370,530
1,440,604
WATER REVENUE
$ 651,739
630,858
965,012
1,003,236
1,041,120
SEWER REVENUE
$372,516
384,634
390,624
366,817
399,484
The gross water revenue has increased 6.26% since the water rate increase on
January 1, 1973. The gross sewer revenue has increased 7.2% over the past
five years. The gross water and sewer revenue combined has increased 6.26%
since the water rate increase in 1973.
Operational expenses for the combined water and sewerage system (exclusive of bond
retirement payments) for the past five years are as follows:
YEAR
1971
1972
1973
1974
1975
OPERATIONAL EXPENSES
$ 769,142
758,226
856,149
1,019,942
1,162,342
The operational expenses have increased 51.12% over the past five years for a
10.2% per year increase, and 13.96% from 1974 to 1975.
Sewer Rates
Based upon the gross revenue generated from sewer charges in 1975 in the amount of
$399,484, the additional income from sewer rate increases indicated would produce
the following gross income:
Sewer Rate increased - 35% ($1. 85 minimum) ------------ $539,303
Sewer Rate increased - 40% ($1.90 minimum) ------------- 559,277
Sewer Rate increased - 50% ($2.00 minimum) ------------ 599,226
Sewer Rate increased - 60% ($2.15 minimum) ------------- 639,174
Sewer Rate increased - 70% ($2.30 minimum) ------------- 679,122
Sewer Rate increased - 80% ($2.40 minimum) ------------- 719,071
Sewer Rate increased - 90% ($2.55 minimum) ------------ 759,019
Sewer Rate increased - 100% ($2.70 minimum) ------------ 798,978
~ Increase in sewer rates over the present rates would result in the following rates:
Water Present
Consumption Sewer Increase
(Cubic Feet) Rates 35% 40% 50% 60% 70% 80% 90% 100%
0/500 $1. 35 $1. 85 $1. 90 $2.00 $2.15 $2.30 $2.40 $2.44 $2.70
500/1,000 .22 .30 .31 .33 .35 .37 .39 .40 .44
1,000/2,000 .20 .27 .28 .30 .32 .34 .36 .38 .40
2,000/5,000 .16 .22 .23 .24 .25 .27 .29 .30 .32
5,000/20,000 .12 .17 .18 .18 .19 .20 .22 .23 .24
20,000/40,000 .08 .11 .12 .12 .13 .14 .15 .15 .16
40,000/80,000 .06 .08 .09 .09 .10 .11 .11 .12 .12
80,000/150,000 .04 .06 .06 .06 .07 .07 .08 .08 .08
Allover 150,000 .02 .03 .03 .03 .04 .04 .04 .04 .04
Water Rates
Based upon the gross water revenue for the year 1975 in the amount of $1,041,120,
the additional income from water rate increases indicated would produce the following
gross income:
Water Rate increased - 35% ------------------------ $1,405,512
\later Rate increased - 40% ------------------------ 1,457,568
tvater Rate increased - 50% ------------------------ 1,561,680
Water Rate increased - 60% -------..---------------- 1,665,792
e tvater Rate increased - 70% ------------------------ 1,769,904
Water Rate increased - 80% ------------------------ 1,874,016
t.Jater Rate increased - 90% ------------------------ 1,978,120
Water Rate increased - 100% ----------------------- 2,082,240
Increase in water rates, inside and outside the city limits of Salina, Kansas over
the present rates would result in the fo1lowin~ rates:
Residential and COmMercial Inside City
Increases
Present Rates 35% 40% 50% 60/~ 70% 80% 90% 100%
First 2,000 cu. ft. @39c;:
per 100 cu. ft. --------- 53c;: 54c;: 5Se;: 62c;: 66(: 70c;: 74c;: 78c;:
Next 28,000 cu. ft. @27c;:
per 100 cu. ft. -------- 36c;: 37c;: !tOe 43c;: 46c;: 49c;: 51c;: 54(:
Allover 30,000 cu. ft.
@24tJ. per 100 cu. ft. --- 32(: 34c;: 36(: 39c;: 41c;: 43c;: 46(: 48c;:
"Honth1y Hinimum Based on Size of Heter Installed"
Present Rates
Size of Minimum Cu. Ft. Ine reases
Meter Charge Allowed 35% 40% 50% 60% 7m~ 80% 90% 100%
5/8" $ 2.00 300 $ 2.70 $ 2.80 $ 3.00 $ 3.20 $ 3.40 $ 3.60 $ 3.80 $ 4.00
3/4" 3.10 500 4.20 4.35 4.65 4.95 5.30 5.60 5.90 6.20
1" 3.90 600 5.25 5.45 5.85 6.25 6.65 7.00 7.40 7.80
1~" 6.50 1,000 8.75 9.10 9.75 10.40 11.05 11. 70 12.35 13 . 00
2' 7.95 1,100 10.75 11. 15 11. 90 12.70 13.50 14.30 15.10 15.90
3" 14.75 2,000 19.90 20.65 22.12 23.60 25.07 26.55 28.02 29.50
4" 77.00 25,000 103.95 107.80 115.50 123.20 130.90 138.60 146.30 154.00
6" 110.00 30,000 148.50 154.00 165.00 176.00 187.00 198.00 209.00 220.00
8" 125.00 30,000 168.75 175.00 187.50 200.00 212.50 225.00 237.50 250.00
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Present Rates
First 2,000 cu. ft.
@48.75~ per 100
cu. ft.
Residential and Commercial Outside City
Increases
35% 40% 50% 60% 70% 80%
90%
100%
65.80~ 68.25~ 73.l0~ 78.00~ 82.85C 87.75C 92.65C 97.50C
Next 28,000 cu. ft.
@33.75~ per 100
cu. ft. 45.55~ 47.25~ 50.60~ 54.00C 57.35C 60.75C 64.l0~ 67.50~
Allover 30,000 cu.
ft. @ 30.00~ per
100 cu. ft. 40.50C 42.00C 45.00C 48.00C 5l.00C 54.00C 57.00C 60.00C
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VII.
COMPARATIVE WATER M1D SEWER RATES FOR CITIES IN KANSAS
The following table shows a complete breakdown of water and sewer rates for
Independence, and Coffeyville, and proposed rates for Pittsburg, Kansas. Also
shown are the minimum water and sewer rates for the City of Newton, Kansas, and
sewer rates for Emporia, Kansas. These comparative rates are being illustrated
as Independence has a Water and Sewer Revenue Bond indebtedness of $2,030,000,
Coffeyville has a Water Revenue Bond indebtedness of $3,060,000, and Newton has
a Water and Sewer Revenue Bond indebtedness of $2,310,000. Emporia is issuing
$2,500,000 in Sewer Revenue Bonds.
Independence Water Rates (In Gallons)
First 1,000 @ $3.30 - $ 3.30 --------------------------- $ 3.30 minimum
Next 9,000 @ .90 = 8.10 --------------------------- 11.40
Next 15,000 @ .75 = 11.25 --------------------------- 22.65
Next 75,000 @ .70 = 52.50 --------------------------- 75.15
Next 900,000 @ .55 = 495.00 --------------------------- 570.15
All over 1,000,000 @.50 = $500.00 ----------------------- 1,070.15
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1,000 @
1,000 @
8,000 @
40,000 @
50,000 @
400,000 @
500,000 @
1,000,000
Coffeyville Water Rates (In Gallons)
$2.00 = $2.00 ---------------------------__ $
2.00 = 2.00 ------------------------_____
1.50 = 12.00 -----------------------______
1.35 = 54.00 -------------------------____
1.00 = 50.00 ------------------------_____
.90 =360.00 -----------------------______
.75 =375.00 -----------------------______
@.40 =400.00 -----------------------______
First
Next
Next
Next
Next
Next
Next
Next
Minimum ---------------------
First 2,000 gallons ---------
Next 5,000 gallons ----------
Next 10,000 gallons ---------
Next 50,000 gallons ---------
Next 100,000 gallons --------
Next 500,000 gallons --------
Next 1,000,000 gallons ------
Present
$ 2.35
2.35
4.75
8.75
38.85
72.55
281.35
523.25
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(Based on 2,000 gallons)
Independence Minimum -------------------
Coffeyville Hinimum ------------------__
Newton Hinimum ------------------_______
Pittsburg Minuuum (Proposed) ---------__
Proposed
$ 2.50
2.50
5.80
11.30
51. 40
97.60
391. 40
7U.40
Water
$4.20
4.00
2.80
2.50
Coffeyville
$ 2.00
4.00
8.50
16.00
70.00
120.00
480.00
855.00
Sewer
$2.50
2.25
4.00
3.40
2.00 minimum
4.00
16.00
70.00
120.00
480.00
855.00
1,255.00
Independence
$ 3.30
4.20
6.90
11. 40
28.90
75.15
295.15
570.15
Total
$6.70
6.25
6.80
5.90
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Emporia Sewer Rates
Effective January 1, 1977, the following schedule of sewer charges will be implemented
at Emporia, Kansas:
(a) A monthly minimum service charge for all metered users including the first two
thousand (2,000) gallons of water use is established as follows:
Meter Size
5/8"
3/4"
1"
1-1/4"
1-1/2"
2"
3"
4"
6"
8"
Inside City
$ 3.30
5.50
8.75
11.00
13 . 00
19.00
42.00
69.00
138.00
205.00
Outside City
$ 6.60
11.00
17.50
22.00
26.00
38.00
84.00
138.00
276.00
410.00
Exception: Those single family residences with meters larger than one (1) inch
will be charged at the one (1) inch rate.
(b) Residential Metered Quantity Charge: Additional charges for residential and
educational, religious, public, and charitable classification as defined in
19-304 above shall be based on eighty-five per cent (85%) of metered water in
excess of 2,000 gallons at the following rates:
Inside City
$0.35/1,000 gallons
Outside City
$0.70/1,000 gallons
(c) Commercial-Industrial Metered Quantity Charge: Additional charges for all those
not included above shall be based on one hundred per cent (100%) of metered
water in excess of 2,000 gallons at the following rates:
Inside City
$0.35/1,000 gallons
Outside City
$0.70/1,000 gallons
(d) Flat Rate Residential: All single family residence users as defined in 19-304
above not having an approved water metering system will be charged a flat rate
of $6.60 per month for use of the wastewater collection and treatment system.
(e) Flat Rate Commercial-Industrial Users: All commercial-industrial users as
defined in 19-304 above not having an approved water metering system will be
charged a minimum flat rate of $19.80 per month with a quantity charge based
on 100% of estimated usage over 2,000 gallons as approved by the City Manager
at a rate of $0.35/1,000 gallons.
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WATER RATES
The following indicates water rates only for the ten largest cities in
Kansas, other than Kansas City, and also three graphs indicating both
water and sewer rates for cities in Kansas.
City
Lawrence -----
Hutchinson --
Salina ------
Leavenworth ---
Manhattan ----
Emporia ------
Pittsburg ----
Junction City -
Topeka -------
.chita -----
-
Charge
$3.82
2.50
2.00
1.85
2.00
1.50
2.35
4.55
2.30
2.50
Gallons
2,000
3,000
2,500
1,500
2,250
2,000
2,000
1,500
3,000
CostlGal.
$0.0019
0.0008
0.0008
0.0012
0.0009
0.0008
0.0012
0.0015
0.0008
Costl
5M Gal.
$7.19
3.70
3.56
4.00
3.92
3.00
4.75
7.13
5.56
3.76
Costl
10M Gal.
$12.82
6.50
5.90
6.55
6.80
5.50
8.75
10.80
9.36
6.28
Costl
25M Gal.
$28.65
12.50
12.14
14.37
13.93
13.00
20.10
21. 83
18.16
14.38
Cost/
5 OM Gal.
$51.59
22.40
16.73
26.37
23.50
21. 75
38.85
39.11
32.83
22.06
...
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VIII.
ADDITIONAL INDEBTEDNESS REQUIR~1ENTS
To determine annual net operating income for pro forma computation, the following
tables have been computed for Series 1961 Bonds outstanding plus additional Water
and Sewerage Bonded Indebtedness. Preliminary pro formas have been computed for
the following amounts and maturity years:
EXHIBITS
Exhibit I
Exhibit II
Exhibit III
Exhibit IV
Exhibit V
Exhibit VI
AMOUNT
$1,500,000
2,000,000
2,250,000
2,500,000
2,750,000
3,000,000
MATURITY
20 years
25 years
25 years
25 years
25 years
25 years
1. Total Gross Interest Cost for Series 1961 and New Bonds:
Exhibit I
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Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 1,514,175.00
Total Interest Cost ----------------------- $1,871,742.50
Exhi bit II
Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 2,619,400.00
Total Interest Cost ----------------------- $2,976,967.50
Exhibit III
Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 2,619,400.00
Total Interest Cost ----------------------- $3,331,867.50
Exhibit IV
Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 3,308,550.00
Total Interest Cost ----------------------- $3,666,117.50
Exhib it V
Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 3,661,000.00
Total Interest Cost ----------------------- $4,345,167.50
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Exhibit VI
Series 1961 Bonds ------------------------- $ 357,567.50
Series 1977 Bonds ------------------------- 3,987,600.00
Total Interest Cost ----------------------- $4,345,167.50
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2.
Average Annual Principal Requirements:
Series 1961 Bonds -----------______________
Exhibit I - $1,500,000 -------_____________
Exhibit II - $2,000,000 --------___________
Exhibit III - $2,250,000 ------____________
Exhibit IV - $2,500,000 -------____________
Exhibit V - $2,750,000 --------____________
Exhibit VI - $3,000,000 --------___________
$182,000.00
76,000.00
80,000.00
90,000.00
100,000.00
110,000.00
120,000.00
3. Average Annual Interest Requirements:
Series 1961 Bonds -----------______________
Exhibit I - $1,500,000 ------______________
Exhibit II - $2,000,000 ------_____________
Exhibit III - $2,250,000 ------____________
Exhibit IV - $2,500,000 ----_______________
Exhibit V - $2,750,000 -----_______________
Exhibit VI - $3,000,000 ------_____________
$ 35,765.75
75,708.75
104,776.00
118,972.00
132,342.00
146,440.00
159,504.00
4. Average Annual Principal Requirements for Series 1961 and Series 1977 Bonds:
Exhib i t I --------------------------------- $259,587.00
Exhibit II ----------------________________ 271 ,878.00
Exhibit III ---------------________________ 296,074.00
Exhibit IV ----------------________________ 319,444.00
e Exhibit V ----------------_________________ 343,543.00
Exhibit VI -------------------------------- 366,607.00
5. Coverage Requirements for Average Annual Principal and Interest Requirements
for Series 1961 and Series 1977 Bonds:
Exhibit I
Net Income Required for a 1.60 Times Coverage ------------ $415,794.00
Net Income Required for a 1.50 Times Coverage ------------ 389,806.00
Net Income Required for a 1. 40 Times Coverage ------------ 363,819.00
Net Income Required for a 1. 30 Times Coverage ------------ 337,832.00
Net Income Required for a 1.25 Times Coverage ------------ 324,838.00
Exhibit II
Net Income Required for a 1.60 Times Coverage ------------ $435,004.00
Net Income Required for a 1. 50 Times Coverage ----------- 407,817.00
Net Income Required for a 1. 40 Times Coverage ------------ 380,629.00
Net Income Required for a 1.30 Times Coverage ----------- 353,441.00
Net Income Required for a 1.25 Times Coverage ----------- 339,842.00
Exhibit III
Net Income Required for a 1.60 Times Coverage ----------- $473,718.00
Net Income Required for a 1.50 Times Coverage ------------ 444,110.00
Net Income Required for a 1.40 Times Coverage ----------- 414,503.00
Net Income Required for a 1.30 Times Coverage ------------ 384,896.00
e Net Income Required for a 1.25 Times Coverage ---------- 370,092.00
Exhibit IV
e Net Income Required for a 1.60 Times Coverage ------------ $511,110.00
Net Income Required for a 1.50 Times Coverage ----------- 479,166.00
Net Income Required for a 1.40 Times Coverage ------------ 447,221. 00
Net Income Required for a 1.30 Times Coverage ------------ 415,277 . 00
Net Income Required for a 1.25 Times Coverage ------------ 399,305.00
Exhibit V
Net Income Required for a 1. 60 Times Coverage ------------ $549,668.00
Net Income Required for a 1.50 Times Coverage ------------ 515,314.00
Net Income Required for a 1.40 Times Coverage ------------ 480,960.00
Net Income Required for a 1.30 Times Coverage ------------ 446,605.00
Net Income Required for a 1. 25 Times Coverage ----------- 429,428.00
Exhibit VI
Net Income Required for a 1. 60 Times Coverage ------------ $586,571.00
Net Income Required for a 1.50 Times Coverage ------------ 549,910.00
Net Income Required for a 1.40 Times Coverage ------------ 513,249.00
Net Income Required for a 1. 30 Times Coverage ------------ 476,891.00
Net Income Required for a 1.25 Times Coverage ------------ 458,258.00
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Under accepted practices of Revenue Bond financing, conditions must be established
to guarantee the marketability of additional Water and Sewerage System Indebtedness.
Net revenues, after payment of operations, should never be less than 125% of maximum
annual principal and interest requirements of both the Series 1961 Water and Sewerage
System Revenue Bonds now outstanding and the additional principal and interest require-
ments of any new bonds to be issued. In addition, it is preferable that such
"coverage factor" substantially exceed 125% of average annual principal and interest
requirements to establish prime security of the bonds outstanding and the bonds to
be issued.
The following "Net Operating Income" will be required to satisfy maximum "coverage"
requirements indicated:
1. Maximum Debt Service for Exhibit I (1986) ------------------- $331,090.00
Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $529,744.00
at 1.50 coverage ----------------------------- 496,605.00
at 1.40 coverage ----------------------------- 463,526.00
at 1.30 coverage ----------------------------- 430,417.00
e at 1.25 coverage ----------------------------- 413,862.00
2. Maximum Debt Service for Exhibit II (1986) ------------------ $373,240.00
Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $597,184.00
at 1.50 coverage ----------------------------- 559,860.00
at 1.40 coverage ----------------------------- 522,536.00
at 1.30 coverage ----------------------------- 485,212.00
at 1.25 coverage ----------------------------- 466,550.00
3. Maximum Debt Service for Exhibit III (1986) ----------------- $390,390.00
Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $624,624.00
at 1.50 coverage ----------------------------- 585,585.00
at 1.40 coverage ----------------------------- 546,546.00
at 1.30 coverage ----------------------------- 507,507.00
at 1.25 coverage ----------------------------- 487,987.00
4. Maximum Debt Service for Exhibit IV (1986) ------------------ $408,240.00
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Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $653,184.00
at 1.50 coverage ----------------------------- 612,360.00
at 1.40 coverage ----------------------------- 571,536.00
at 1.30 coverage ----------------------------- 530,712.00
at 1.25 coverage ----------------------------- 510,300.00
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5. Maximum Debt Service for Exhibit V (1986) ------------------- $427,140.00
Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $683,424.00
at 1.50 coverage ----------------------------- 640,710.00
at 1.40 coverage ----------------------------- 597,996.00
at 1.30 coverage ----------------------------- 555,282.00
at 1.25 coverage ----------------------------- 533,925.00
6. Maximum Debt Service for Exhibit VI (1986) ------------------ $444,640.00
Net Income Coverage Factor Net Operating Income Required
at 1.60 coverage ----------------------------- $711,424.00
at 1.50 coverage ----------------------------- 666,960.00
at 1.40 coverage ----------------------------- 622,960.00
at 1.30 coverage ----------------------------- 578,032.00
at 1.25 coverage ----------------------------- 555,800.00
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IX.
PROJECTION OF FUTURE WATER AND SEWAGE SYSTEM OPERATIONS
The following projections of the Water and Sewage System operations have been
computed based upon the average increase in gross revenues and operational
expenses over the past five years. Projections of increased revenues are
based upon a 5% increase each year, although the average has been 6%; but
due to suggested rate increases, a conservative figure of 5% is used for
pro forma purposes. A 10% increase per year is computed for operational
expenses which has been the average increase over the past five years.
Projected revenues and operating expenses for the years 1976 through 1981
are as follows:
35% Water and Sewer Rate Increase -
Projected Projected Projected
Operating Operating Net Operating
Year Revenues Expenses Income
1976 $1,612,550 $1,330,865 $281,685
1977 2,177,942 1,463,951 713,991
1978 2,286,839 1,610,346 676,473
1979 2,401,180 1,771,380 629,800
e 1980 2,503,239 1,048,518 554,721
1981 2,624,400 2,143,036 485,364
40% Water and Sewer Rate Increase -
Projected Projected Projected
Operating Operating Net Operating
Year Revenues Expenses Income
1976 $1,612,550 $1,330,865 $281,685
1977 2,257,570 1,463,951 793,619
1978 2,370,448 1,610,346 760,102
1979 2,488,970 1,771,380 717,590
1980 2,613,418 1,048,518 664,900
1981 2,744,088 2,143,036 601,052
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x.
FLOW OF FUNDS
Ordinance No. 6546 of the Series 1961 Bonds defines the "Flow of Funds"
in the handling of all System incomes and expenses. The new indebtedness
represents an obligation of impressive proportions and necessitates the
drafting of a bond ordinance employing the best possible financial conditions
of bond issuance. A few covenants which should be included in the new
bond ordinance are as follows:
a. The City should re-establish the "Water and Sewage Fund"
as originally created for the Series 1961 Bonds and all
System incomes should be deposited in such Fund;
b. First, the City should pay the actual cost of maintenance
and operation of the System;
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c. Next, the City should establish a "Bond and Interest Account
for Combined Water and Sewage System Revenue Bonds, Series of
1977", and make periodic transfers to anticipate semiannual
interest requirements and annual principal requirements of all
Water and Sewage System indebtedness. Cognizance must be
given to the Series 1961 Bonds as such bonds will exist as a
prior and junior lien on all of the Combined Water and Sewage
System indebtedness with new bonds existing as junior lien
indebtedness.
d. Next, the City should create a "Reserve Account for Combined
Water and Sewage System Revenue Bonds, Series of 1977" for the
new bond issue. Preliminary analysis of cash and invested funds
on hand indicates an immediate transfer of $200,000 for Exhibit I,
$225,000 for Exhibit II, and $245,000 for Exhibits III, IV, V, and
VI. Bond Reserve for Exhibits IV, V, and VI will be increased by
monthly transfers by transferring $25,000 in 1978 for a total Bond
Reserve of $270,000 for Exhibit IV; by transferring $25,000 per year
in the years 1978 and 1979 and $5,000 in 1980 for a total Bond
Reserve of $300,000 for Exhibit V; and by transferring $25,000 per
year in the years 1978, 1979, and 1980 until a Bond Reserve of
$320,000 is accumulated in Exhibit VI. Section 14 of Ordinance No.
6546 allows for excessive funds in the Bond Reserve Account for
the Series 1961 Bonds to be transferred to the Water and Sewage
Fund which then can be transferred to the Bond Reserve Account
for Series 1977 Bonds, leaVing a balance and maximum reserve of
$300,000 for the Series 1961 Bonds.
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e. Next, the City should continue the "Combined Water and Sewage System
Extension Bond and Retirement Account" into which all residual
incomes shall be deposited which are not required for maintenance
and operation, debt service, or Bond Reserve transfers. The use of
surplus accumulations should be determined in anticipation of
payment of enlargements and improvements to the System either in
annual amounts or through the accumulation of surplus for future
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major improvements and to exercise bond call authorizations.
f.
Next, a covenant should be established that the new bonds may be
refunded, so that at any time these bonds are refunded any new
bonds to be issued at a later date would enjoy a parity status
with other outstanding System indebtedness.
g.
Next, the City should establish "coverage" covenants guaranteeing
eo-maintain rates, fees, and charges which shall produce net
incomes adequate to satisfy coverage factors agreed upon. We
are recommending that a 125% coverage factor be maintained for
the new bonds.
h.
Next, the City should establish "earnings tests" which provide
conditions under which additional System indebtedness may be
issued as parity indebtedness to the Series 1977 Bonds to be
issued; included in the "earnings tests" a section should be
added to read "The average annual net income for two preceding
years shall not be less than 125% of the maximum annual debt
service requirement for all outstanding and contemplated
additional indebtedness; provided that earnings from rate
increases implemented during the past two test years (when
certified by consulting engineers) may be employed in determining
net income availability." Also included in the test should be the
fact that all funds and reserves are at the maximum required
amounts.
i. Next, the bond ordinance should require the City to maintain
adequate insurance coverage, provide an annual audit, provide
that Combined Water and Sewage System bperations shall be
conducted in a businesslike manner, and provide periodic
inspection and a report made to the Governing Body as to the
general physical condition and operational procedures of the
entire Combined Water and Sewage System.
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XI.
REVENUE BOND MATURITY SCHEDULES
The attached Schedules develop principal and interest requirements and
suggested reserve accumulations for the different amount of bonds issued
previously mentioned in this Report. Bond principal payments have been
computed to provide approximate equal annual debt service requirements for
the years 1977 through 1986 until the Series 1961 Bonds have been retired,
and then approximate equal annual debt service requirements for the Series
1977 Bonds remaining outstanding from 1987 through 1996. The same applies
for Exhibits II, III, IV, V, and VI for approximate equal annual debt
service requirements for the years 1987 through 2001.
Static incomes are employed in the years 1981 through 1996 for Exhibit I
and the years 1981 through 2001 for the remaining five exhibits. Net income
in Exhibit I is 199% of average annual debt service; in Exhibit II it is
187%; in Exhibit III it is 172%; in Exhibit IV it is 194%; in Exhibit V it
is 181%; and in Exhibit Vlit is 170%.
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In Revenue Bond Issues, realistic financial programming establishes "Bond
Reserves" and "Maintenance Reserves" to be used for unforeseen and emergency
fiscal and operating contingencies. In the Exhibits, we have arbitrarily
employed the reserve accounts previously mentioned; however, we feel that the
existing Maintenance Reserve is adequate to service the System and one will not
be maintained for the Series 1977 Bonds.
Bond Ordinances customarily permit municipalities to use surplus accumulations
for enlargemen~expansion and improvements of the Combined Water and Sewage
System, and thus eliminate the necessity of future additional bonds whenever
possible. The Exhibits have indicated annual surplus which can be used for annual
capital improvements, and we are recommending that the Water and Sewer rates be
increased to cover not only all System indebtedness, maintenance and operation,
a Bond Reserve, but also to allow for annual surplus to make the particular capital
improvements.
Utility System Revenue Bonds are customarily optional and surplus accumulations
may be used to call and prepay bond principal prior to maturity, in addition to
amounts in the Bond Reserve Account. This call factor is of importance as
considerable interest saving will result through call provisions. The Series
1961 Bond Ordinance has a 3% call premium, and it is recommended that Series 1977
Bonds additionally have a 3% call or a declining call premium.
Bond principal maturity schedules (Exhibits I, II, III, IV, V, and VI) are
as follows:
e
e
e
e
Maturity - 20 Years $1,500,000 Financial Pro Forma
Interest Rate Factor - 6 1/2% CITY OF SALINA, KANSAS Exhibit I
WATER AND SEWERAGE SYSTEH REVENUE BONDS
SERIES 1977
THIS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE - SERIES 1977 SURPLUS ACCOUNT
ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED MmUAL ACCUMULATED
11ATURITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS
1977 $ 713,991(A) $ 183,097.50(B) $ -0- $ 97,500 $ 97,500 $ 280,597.50 $200,000(C) $200,000 $433,313.50 $ 433,313.50(D)
1978 676,493 215,945.00 -0- 97,500 97,500 313,445.00 -0- 200,000 363,048.00 796,361. 50
1979 629,800 215,365.00 10,000 97,500 107,500 322,865.00 -0- 200,000 306,935.00 1,103,296.50
1980 554,721 219,605.00 10,000 96,850 106,850 326,455.00 -0- 200,000 228,266.00 1,331,562.50
1981 485,364 2l8,4S5.00 10,000 96,200 106,200 324,685.00 -0- 200,000 160,679.00 1,492,241.50
1982 485,364 222,185.00 10,000 95,550 105,550 327,735.00 -0- 200,000 157,629.00 1,649,870.50
1983 485,364 225,525.00 10,000 94,900 104,900 330,425.00 -0- 200,000 154,939.00 1,804,809.50
1984 485,364 223,310.00 10,000 94,250 104,250 327,560.00 -0- 200,000 157,804.00 1,962,613.50
1985 485,364 225,910.00 10,000 93,600 103,600 329,510.00 -()- 200,000 155,854.00 2,118,467.50
1986 485,364 228,140.00 10,000 92,950 102,950 331,090.00 -0- 200,000 154,274.00 2,272,741.50
1987 485,364 -0- 100,000 92,300 192,300 192,300.00 -0 - 200,000 293,064.00 2,565,805.50
1988 485,364 -0- 110,000 85,800 195,800 195,800.00 -0- 200,000 289,564.00 2,855,369.50
1989 485,364 -0- 120,000 78,650 198,650 198,650.00 -0- 200,000 286,714.00 3,142,083.50
1990 485,364 -0- 130,000 70,850 200,850 200,850.00 -0- 200,000 284,514.00 3,426,597.50
1991 485,364 -0- 135,000 62,400 197,400 197,400.00 -0- 200,000 287,964.00 3,714,561.50
1992 485,364 -0- 145,000 53,625 198,625 198,625.00 -0- 200,000 286,739.00 4,001,300.50
1993 485,364 -0- 155,000 44,200 199,200 199,200.00 -0- 200,000 286,164.00 4,287,464.50
1994 485,364 -0- 165,000 34,125 199,125 199,125.00 -0- 200,000 286,239.00 4,573,703.50
1995 485,364 -0- 175,000 23,400 198,400 198,400.00 -0- 200,000 286,964.00 4,860,667.50
1996 485,364 -0- 185,000 12,025 197,025 197,025.00 -0- 200,000 288,339.00 5,149,006.50
$10,340,829 $2,177,567.50 $1,500,000 $1,514,175 $3,014,175 $5,191,742.50
HOTES:
(A) 1977 net operatulg income based on a 35% water and sewer rate
increase effective January 1, 1977
(B) Series 1961 Water and Sewage System Revenue Bond debt
outstanding.
(C) "BOND RESERVE" created immediately from funds on hand transferred
from the "Water and Sewage Fund" authorized under Section 14 of
Ordinance No. 6546.
(D) "SURPLUS ACCOUHT" funds to be used to:
1. Pay the cost of operations and maintenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
SUMHARY:
Average Annual Uet Income ----------------------------__ $ 517,041.45
Debt Service Requirements (All System Indebtedness) _
Average Annual Debt Service ----______________________
Maximum Debt Service (1986) --_______________________
259,587.12
331,090.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements
by Average Annual Net Income ________________________
Coverage of Maximum Debt Service Requirements by
Net Income ---------_______________________________
1.99 TIMES
1.46 TIMES
e
Maturity - 25 years
Interest Rate Factor - 7%
MATURITY
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
ANNUAL NET
INCOME
$ 713, 991 (A)
676,493
629,800
554,721
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485.364
485,364
$12,767,649
DEBT SERVICE
SERIES 1961 BONDS
$ 183,097.50 (B)
215,945.00
215,365.00
219,605.00
218,485.00
222,185.00
225,525.00
223,310.00
225,910.00
228,140.00
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
$2,177 ,567.50
e
$2,000,000
CITY OF SALINA, KANSAS
WATER AND SEWERAGE SYSTEM REVENUE BONDS
SERIES 1977
THIS ISSUE - SERIES 1977 TOTAL DEBT
ANNUAL ANNUAL TOTAL DEBT SERVICE
PRINCIPAL INTEREST SERVICE ALL BONDS
$ -0- $ 140,000 $ 140,000 $ 320,097.50
-0- 140,000 140,000 355,945.00
10,000 140,000 150,000 365,365.00
10,000 139,300 149,300 368,905.00
10,000 138,600 148,600 367,085.00
10,000 137,900 147,900 370,085.00
10,000 137,200 147,200 372,725.00
10,000 136,500 146,500 369,810.00
10,000 135,800 145,800 371,710.00
10,000 135,100 145,100 373,240.00
80,000 134,400 214,400 214,400.00
85,000 128,800 213,800 213,800.00
90,000 122,850 212,850 212,850.00
95,000 116,550 211,550 211,550.00
100,000 109,900 209,900 209,900.00
105,000 102,900 207,900 207,900.00
110,000 95,550 205,550 205,550.00
120,000 87,850 207,850 207,850~00
130,000 79,450 209,450 209,450.00
140,000 70,350 210,350 210,350.00
150,000 60,550 210,550 210,550.00
160,000 50,050 210,050 210,050.00
170,000 38,850 208,850 208,850.00
185,000 26,950 211,950 211.950.00
200,000 14,000 214,000 214,000.00
$2,000,000 $2,619,400 $4,619,400 $6,796,967.50
SUMMARY:
Average Annual Net
NOTES:
(A) 1977 net operating income based on a 35% water and sewer rate
increase effective January I, 1977.
(B) Series 1961 Water and Sewage System Revenue Bond debt outstanding.
(C) "BOND RESERVE" created immediately from funds on hand transferred
from the "Water and Sewage Fund" authorized under Section 14 of
Ordinance No. 6546.
(D) "SURPLUS ACCOUNT" flDlds to be used to:
1. Pay the cost of operations and maintenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
BOND RESERVE - SERIES 1977
ANNUAL ACCUMULATED
TRANSFER RESERVE
$225,OOO(C) $225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
-0- 225,000
e
Financial Pro Forma
EXHIBIT II
SURPLUS ACCOUNT
ANNUAL
SURPLUS
$393,893.50
320,548.00
264,435.00
185,816.00
118,279.00
115,279.00
112,639.00
115,554.00
113,654.00
112,124.00
270,964.00
271,564.00'
272,514.00
273,814.00
275,464.00
277 ,464.00
279,814.00
277 ,514.00
275,914.00
275,014.00
274,814.00
275,314.00
276,514.00
273,414.00
271,364.00
ACCUMULATED
SURPLUS
393,893.50(D)
714,441.50
978,876.50
1,164,692.50
1,282,971.50
1,398,250.50
1,510,889.50
1,629,443.50
1,740,097.50
1,852,221.50
2,123,185.50
2,394,749.50
2,667,263.50
2,941,077.50
3,216,541.50
3,494,005.50
3,773,819.50
4,051,333.50
4,327,247.50
4,602,261.50
4,877,077.50
5,152,389.50
5,428,903.50
5,702,317.50
5,973,681.50
$
Income -------------------------------- $510,705.96
Debt Service Requirements (All System Indebtedness) _
Average Annual Debt Service -___________________________
Maximum Debt Service (1986) --__________________________
271,878.70
373,240.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements
by Average Annual Net Income --_______________________
Coverage of Maximum Debt Service Requirements by
Net Income ---------__________________________________
1.87 TIMES
1. 30 TIMES
e
Maturity - 25 years
Interest Rate Factor - 7%
MATURITY
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
ANNUAL NET
INCOME
$ 713,991(A)
676,493
629,800
554,721
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
485,364
$12,767,649
DEBT SERVICE
SERIES 1961 BONDS
$ 183,097.50(B)
215,945.00
215,365.00
219,605.00
218,485.00
222,185.00
225,525.00
223,310.00
225,910.00
228,140.00
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
$2,177,567.50
e
$2,250,000
CITY OF SALINA, KANSAS
WATER AND SEWERAGE SYSTEM REVENUE BONDS
SERIES 1977
THIS ISSUE - SERIES 1977 TOTAL DEBT
ANNUAL ANNUAL TOTAL DEBT SERVICE
PRINCIPAL INTEREST SERVICE ALL BONDS
$ -0- $ 157,500 $ 157,500 $ 340,597.50
-0- 157,500 157,500 373,445.00
10,000 157,500 167,500 382,865.00
10,000 156,750 166,750 386,355.00
10,000 156,000 166,000 384,485.00
10,000 155,250 165,250 387,435.00
10,000 154,500 164,500 390,025.00
10,000 153,750 163,750 387,060.00
10,000 153,000 163,000 388,910.00
10,000 152,250 162,250 390,390.00
80,000 151,550 231,550 231,550.00
90,000 145,950 235,950 235,950.00
95,000 139,650 234,650 234,650.00
100,000 133,000 233,000 233,000.00
110,000 126,000 236,000 236,000.00
115,000 118,300 233,300 233,300.00
125,000 110,250 235,250 235,250.00
135,000 101,500 236,500 236,500.00
145,000 92,050 237,050 237,050.00
180,000 81,900 241,900 241,900.00
180,000 70,700 250,700 250,700.00
190,000 58,100 248,100 248,100.00
200,000 44,800 244,800 244,800.00
215,000 30,800 245,800 245,800.00
230,000 15,750 245,750 245,750.00
$2,250,000 $2,974,300 $5,224,300 $7,401,867.50
SUMMARY:
Average Annual Net
NOTES:
(A) 1977 net operating income based on a 35% water and sewer rate
increase effective January 1, 1977.
(B) Series 1961 Water and Sewage System Revenue Bond debt outstanding.
(C) "BOND RESERVE" created immediately from funds on hand transferred
from the "Water and Sewage Fund" authorized under Section 14 of
Ordinance No. 6546.
(D) "SURPLUS ACCOUNT" funds to be used to:
1. Pay the cost of operations and maintenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
e
Financial Pro Forma
EXHIBIT III
BOND RESERVE - SERIES 1977
SURPLUS ACCOUNT
ANNUAL ACCUMULATED
SURPLUS SURPLUS
$373,393.50 $ 373,393.50(D)
303,048.00 676,441.50
246,935.00 923,376.50
168,366.00 1,091,742.50
100,879.00 1,192,621.50
97,929.00 1,290,550.50
95,339.00 1,385,889.50
98,304.00 1,484,193.50
96,454.00 1,580,647.50
94,974.00 1,675,621.50
253,814.00 1,929,435.50
249,414.00 2,178,849.50
250,714.00 2,429,563.50
252,364.00 2,681,927.50
249,364.00 2,931,291.50
252,064.00 3,183,355.50
250,114.00 3,433,469.50
248,864.00 3,682,333.50
248,314.00 3,930,647.50
243,464.00 4,174,111.50
234,664.00 4,408,775.50
237,264.00 4,696,039.50
240,564.00 4,886,603.50
239,564.00 5,126,167.50
239,614.00 5,365,781.50
ANNUAL
TRANSFER
$245,000(C)
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
ACCUMULATED
RESERVE
$245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
245,000
Income -------------------------------- $510,705.96
Debt Service Requirements (All System Indebtedness) -
Average Annual Debt Service ---------------------_______
Maximum Debt Service (1986)-----------------------------
296,074.70
390,390.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements
by Average Annual Net Income ----------------_________
Coverage of Maximum Debt Service Requirements by
Net Income --------------------------_________________
1. 72 TIMES
1.25 TIMES
e
e
e
$2,500,000
Maturity - 25 years CITY OF SALINA, KANSAS Financial Pro Forma
Interest Rate Factor - 7% WATER AND SEWERAGE SYSTEM REVENUE BONDS EXHIBIT IV
SERIES 1977
THIS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE-SERIES 1977 SURPLUS ACCOUNT
ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED ANNUAL ACCUMULATED
MATURITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS
1977 $ 793,619 (A) $ 183,097.50(B) $ -0- $ 175,000 $ 175,000 $ 358,097.50 $245,000(C) $245,000 $535,521.50 $ 535,521.50(D)
1978 760,102 215,945.00 -0- 175,000 175,000 390,945.00 25,000 270,000 344,157.00 879,678.50
1979 717,590 215,365.00 10,000 175,000 185,000 400,365.00 -0- 270,000 317,225.00 1,196,903.50
1980 664,900 219,605.00 10,000 174,300 184,300 403,905.00 -0- 270,000 260,995.00 1,457,898.50
1981 601,052 218,485.00 10,000 173,600 183,600 402,085.00 -0- 270,000 198,967.00 1,656,865.50
1982 601,052 222,185.00 10,000 172,900 182,900 405,085.00 -a- 270,000 195,967.00 1,852,832.50
1983 601,052 225,525.00 10,000 172,200 182,200 407,725.00 -0- 270,000 193,327.00 2,046,159.50
1984 601,052 223,310.00 10,000 171,500 181,500 404,810.00 -a- 270,000 196,242.00 2,242,401. 50
1985 601,052 _ 225,910.00 10,000 170,800 180,850 406,760.00 -0- 270,000 194,292.00 2,436,693.50
1986 601,052 228,140.00 10,000 170,100 180,100 408,240.00 -0- 270,000 192,812.00 2,629,505.50
1987 601,052 -0- 90,000 169,400 259,400 259,400.00 -0- 270,000 J41,652.00 2,971,157.50
1988 601,052 -0- 100,000 163,100 263,100 263,100.00 -0- 270,000 337,952.00 3,309,109.50
1989 601,052 -0- 105,000 156,100 261,100 261,100.00 -0- 270,000 339,952.00 3,649,061.50
1990 601,052 -0- 115,000 148,750 263,750 263,750.00 -0- 270,000 337,302.00 3,986,363.50
1991 601,052 -0- 125,000 140,700 265,700 265,700.00 -0- 270,000 335,352.00 4,321,715.50
1992 601,052 -0- 135,000 131,950 266,950 266,950.00 -a- 270,000 334,102.00 4,655,817.50
1993 601,052 -0- 145,000 122,500 267,500 267,500.00 -0- 270,000 333,552.00 4,989,369.50
1994 601,052 -0- 155,000 112,350 267,350 267,350.00 -0- 270,000 333,702.00 5,323,071.50
1995 601,052 -0- 165,000 101,500 266,500 266,500.00 -0- 270,000 334,552.00 5,657,623.50
1996 601,052 -0- 180,000 89,950 269,950 269,950.00 -0- 270,000 331,102.00 5,988,725.50
1997 601,052 -0- 195,000 77 , 350 272,350 272,350.00 -a- 270,000 328,702.00 6,317,427.50
1998 601,052 -0- 205,000 63,700 268,700 268,700.00 -0- 270,000 332,352.00 6,649,779.50
1999 601,052 -0- 220,000 49,350 269,350 269,350.00 -0- 270,000 331,702.00 6,981,479.50
2000 601,052 -0- 235,000 33,950 268,950 268,950.00 -0- 270,000 332,102.00 7,313,581.50
2001 601,052 -a- 250,000 17,500 267,500 267,500.00 -a- 270,000 333,552.00 7,647,133.50
$15,558,303 $2,177,567.50 $2,500,000 $3,308,550 $5,808,550 $7,986,117.50
NOTES:
(A) 1977 net operating income based on a 40% water and sewer rate
increase effective January 1, 1977.
(B) Series 1961 Water and Sewage System Revenue Bond debt outstanding.
(C) "BOND RESERVE" of $245,000 created immediately from funds on hand
transferred from the "Water and Sewage Fund" authorized under Section
14 of Ordinance No. 6546. Additional monthly transfers of $2,083.33
commencing January I, 1978 until a maximum of $270,000 is accumulated
in the Bond Reserve for Series 1977 Bonds.
(D) "SURPLUS ACCOUNT" funds to be used to:
1. Pay the cost of operations and maintenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
SUMMARY:
Average Annual Net Income -------------------------------- $622,332.12
Debt Service Requirements (All System Indebtedness) _
Average Annual Debt Service ---------------------------- 319,444.70
Maximum Debt Service (1986) ---------------------------- 408,240.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements
by Average Annual Net Income ------------------------- 1.94 TIMES
Coverage of Maximum Debt Service Requirements
by Net Income -------------------------------------___ 1.52 TIMES
e
e
e
$2,750,000
Maturity - 25 years CITY OF SALINA, KANSAS Financial Pro Forma
Interest Rate Factor - 7% WATER AND SEWERAGE SYSTEM REVENUE BONDS EXHIBIT V
SERIES 1977
THIS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE-THIS ISSUE SURPLUS ACCOUNT
ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED ANNUAL ACCUMULATED
MATURITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS
1977 $ 793,619(A) $ 183,097.50(B) $ -0- $ 192,500 $ 192,500 $ 375,597.50 $245,OOO(C) $245,000 $418,021.50 $ 418,021.50(D)
1978 760,102 215,945.00 -0- 192,500 192,500 408,445.00 25,000 270,000 326,657.00 744,678.50
1979 717,590 215,365.00 -0- 192,500 192,500 407,865.00 25,000 295,000 284,725.00 1,029,403.50
1980 664,900 219,605.00 -0- 192,500 192,500 412,105.00 5,000 300,000 247,795.00 1,277,198.50
1981 601,052 218,485.00 10,000 192,500 202,500 420,985.00 -a- 300,000 180,067.00 1,457,265.50
1982 601,052 222,185.00 10,000 191,800 201,800 423,985.00 -0- 300,000 177 ,067 .00 1,634,332.50
1983 601,052 225,525.00 10,000 191,100 201,100 426,625.00 -a- 300,000 174,427.00 1,808,759.50
1984 601,052 223,310.00 10,000 190,400 200,400 423,700.00 -0- 300,000 177,342.00 1,986,101.50
1985 601,052 225,910.00 10,000 189,700 199,700 425,610.00 -a- 300,000 175,442.00 2,161,543.50
1986 601,052 228,140.00 10,000 189,000 199,000 427,140.00 -0- 300,000 173,912.00 2,335,455.50
1987 601,052 -0- 100,000 188,300 288,300 258,300.00 -a- 300,000 342,752.00 2,678,207.50
1988 601,052 -0- 110,000 181,300 291,300 291,300.00 -0- 300,000 309,752.00 2,987,959.50
1989 601,052 -a- 120,000 173,600 293,600 293,600.00 -a- 300,000 307,452.00 3,295,411.50
1990 601,052 -a- 130,000 165,200 295,200 295,200.00 -0- 300,000 305,852.00 3,601,263.50
1991 601,052 -a- 140,000 156,100 296,100 296,100.00 -a- 300,000 304,952.00 3,906.215.50
1992 601,052 -a- 150,000 146,300 296,300 296,300.00 -a- 300,000 304,752.00 4,210,967.50
1993 601,052 -a- 165,000 135 , 800 300,800 300,800.00 -a- 300,000 300,252.00 4,511,219.50
1994 601,052 -0- 175,000 124,250 299,250 299,250.00 -a- 300,000 301,802.00 4,813,021.50
1995 601,052 -0- 185,000 112 , 000 297,000 297,000.00 -0- 300,000 304,052.00 5,117,073.50
1996 601,052 -0- 200,000 99,050 299,050 299,050.00 -a- 300,000 302,002.00 5,419,075.50
1997 601,052 -0- 215,000 85,050 300,050 300,050.00 -0- 300,000 301,002.00 5,720,077.50
1998 601,052 -a- 230,000 70,000 300 , 000 300,000.00 -a- 300,000 301,052.00 6,021,129.50
1999 601,052 -0- 245,000 53,900 298,900 298,900.00 -a- 300,000 302,152.00 6,323,281.50
2000 601,052 -0- 255,000 36,750 291,750 291,750.00 -0- 300,000 309,302.00 6,632,583.50
2001 601.052 -a- 270.000 18.900 288.900 288.900.00 -0- 300,000 312,152.00 6,944,735.50
$15,558,303 $2,177,587.50 $2,750,000 $3,661,000 $6,411,000 $8,588,587.50
NOTES:
(A) 1977 net operating income based on a 40% water and sewer rate
increase effective January 1, 1977.
(B) Series 1961 Water and Sewage System Revenue Bond debt outstanding.
(C) "BOND RESERVE" of $245,000 created immediately from funds on hand
transferred from the "Water and Sewage Fund" authorized under Section
14 of Ordinance No. 6546. Additional monthly transfers of $2,083.33
commencing January I, 1978 until a maximum of $300,000 is accumulated
in the Bond Reserve for Series 1977 Bonds.
(D) "SURPLUS ACCOUNT" funds to be used to:
1. Pay the cost of operations and l118intenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
SUMMARY:
Average Annual Net Income ----------------------_ $622,332.12
Debt Service Requirements (All System Indebtedness) _
Average Annual Debt Service ------------------------- 343.543.50
Maximum Debt Service (1986)----------------_______ 427,140.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements
by Average Annual Net Income ----------------------- 1.81 TIMES
Coverage of Maximum Debt Service Requirements by
Net Income ------------------------------------ 1.45 TIMES
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Maturity - 25 years
Interest Rate Factor - 7%
MATURITY
1917
1978
1979
1980
1981
1982
1983.
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
ANNUAL NET
INCOME
$ 793,619(A)
760,102
717,590
664,900
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
601,052
$15,558,303
DEBT SERVICE
SERIES 1961 BONDS
$ 183,097.50(B)
215,945.00
215,365.00
219,605.00
218,485.00
222,185.00
225,525.00
223,310.00
225,910.00
228,140.00
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
$2,117,567.50
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$3,000,000
CITY OF SALINA, KANSAS
WATER AND SEWERAGE SYSTEM REVENUE BONDS
SERIES 1917
THIS ISSUE - SERIES 1917 TOTAL DEBT
ANNUAL ANNUAL TOTAL DEBT SERVICE
PRINCIPAL INTEREST SERVICE ALL BONDS
$ -0- $ 210,000 $ 210,000 $ 393,097.50
-0- 210,000 210,000 425,945.00
-0- 210,000 210,000 425,365.00
-0- 210,000 210,000 429,605.00
10,000 210,000 220,000 438,485.00
10,000 209,300 219,300 441,485.00
10,000 208,600 218,600 444,125.00
10,000 207,900 217,900 441,210.00
10,000 207,200 217,200 443,110.00
10,000 206,500 216,500 444,640.00
115,000 205,800 320,800 320,800.00
125,000 197,750 322,750 322,750.00
135,000 189,000 324,000 324,000.00
145,000 179,550 324,550 324,550.00
155,000 169,450 334,550 334,550.00
165,000 158,550 323,550 323,550.00
180,000 147,000 327,000 327,000.00
190,000 134,400 324,400 324,400.00
200,000 121,100 321,100 321,100.00
215,000 107,100 322,100 322,100.00
230,000 92,050 322,050 322,050.00
245,000 75,950 320,950 320,950.00
260,000 58,800 318,800 318,800.00
280,000 40,600 320,600 320,600.00
300,000 21,000 321,000 321,000.00
$3,000,000 $3,987,600 $6,987,600 $9,165,167.50
SUMMARY:
Average Annual Net
NOTES:
(A) 1977 net operating income based on a 40% water and sewer rate
increase effective January 1, 1977.
(8) Series 1961 Water and Sewage System Revenue Bond debt outstanding.
(C) "BOND RESERVE" of $245,000 created immediately from funds on hand
transferred from the "Water and Sewage Fund" authorized under Section
14 of Ordinance No. 6546. Additional monthly transfers of $2,083.33
commencing January 1, 1978 until a maximum of $320,000 is accumulated
in the Bond Reserve for Series 1977 Bonds.
(D) "SURPLUS ACCOUNT" funds to be used to:
1. Pay the cost of operations and maintenance and repair of the
Water and Sewage System.
2. Anticipating payments into the different accounts if needed.
3. Paying the cost of improving and extending the system.
4. Redeeming Bonds prior to maturity.
BOND RESERVE-THIS ISSUE
ANNUAL ACCUMULATED
TRANSFER RESERVE
$245,OOO(C) $245,000
25,000 270,000
25,000 295,000
25,000 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
-0- 320,000
Income
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Financial Pro Forma
EXHIBIT VI
SURPLUS ACCOUNT
ANNUAL
SURPLUS
$400,521.50 $
309,157.00
267,225.00
210,295.00
162,567.00
159,567.00
156,927.00
159,842.00
157,942.00
156,412.00
280,252.00
278,302.00
277 ,052.00
276,502.00
266,502.00
217 ,502.00
274,052.00
276,652.00
279,952.00
278,952.00
279,002.00
280,102.00
282,252.00
280,452.00
280,052.00
ACCUMULATED
SURPLUS
400,521.50(D)
709,678.50
976,903.50
1,187,198.50
1,349,765.50
1,509,332.50
1,666,259.50
1,826,101.50
1,984,043.50
2,140,455.50
2,420,707.50
2,699,009.50
2,976,061.50
3,252,563.50
3,519,065.50
3,796,567.50
4,070,619.50
4,347,271.50
4,627,223.50
4,906,175.50
5,185,117.50
5,465,279.50
5,747,531.50
6,027,983.50
6,308,035.50
--------------------------------
$622,332.12
Debt Service Requirements (All System Indebtedness)-
Average Annual Debt Service ---------------------------- 366,606.70
Maximum Debt Service (1986) ---------------------------- 444,640.00
Coverage Factors -
Coverage of Average Annual Debt Service Requirements by
Average Annual Net Income ----------_________________
Coverage of Maximum Debt Service Requirements by
Net Income --------------------______________________
1. 70 TIMES
1. 35 TIMES
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XII.
SUMMARY AND RECOMMENDATIONS
This Report has been designed to analyze and establish the requirements
necessary to service additional Water and Sewage System Revenue Bonds,
being cognizant of $1,820,000 Series of 1961 Revenue Bonds now outstanding
and of the terms and conditions of Bond Ordinance No. 6546 for additional
Water and Sewage System Revenue Bond Indebtedness.
A test was run to evaluate the issuance of parity or co-equal bonds with
the provisions and requirements of Ordinance No. 6546, which required a
135% coverage factor for the two fiscal years next preceding the issuance
of additional bonds for the Series 1961 Bonds and any additional indebtedness.
The earnings test shows that a 135% coverage factor is not sufficient;
therefore, the new bonds to be issued will be junior lien to the Series 1961
Water and Sewage System Revenue Bonds; however, an improvement in today's
bond market since August will be an advantage to this program.
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From this Report, we recommend an adjustment to present water and sewer
rates to compensate for the additional debt service requirements and surplus
accumulations. We are recommending a 35% increase in both water and surplus
rates for Exhibits I, II, and III, and a 40% increase for Exhibits IV, V,
and VI. We are also recommending that the increases in rates be implemented
January 1, 1977 or as soon thereafter as possible. We are also recommending
that the Notice of Intent for any additional bonded indebtedness be published
during the month of December 1976; and in the meantime, ~ will assimilate
information to submit to Moody's Investors Rating Service for both the
Series 1961 Bonds and Series 1977 Bonds. Mr. Norman Gaar of Stinson, Mag,
Thomson, McEvers and Fizzell, Kansas City, Missouri, will prepare the necessary
Bond Ordinance and any additional ordinances, resolutions, and notice of intent
required for this issue if it is the wish of the City Attorney.
We are recommending that a possible bond sale within the next sixty (60) days
of the writing of this Report; however, the amount of bonds to be issued and
the water and sewer rate structure will have to be determined by the City
Commissioners.
We appreciate the patience of the City Commission and City Administration;
however, this Report is lengthy and detailed. The improvement of the bond
market has made it imperative to recompute all six exhibits as the market
has had at least a 1/2% to 3/4% improvement in interest rates over the past
4 months, which is to the definite advantage of the City of Salina, Kansas
for issuing additional junior lien bonds. By thoroughly appraising all of
these items and studying this Report, the Governing Body must then determine
a maturity schedule and amount of bonds to be issued, and utility rates to be
increased which best fit the needs of the City.
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Respectfully submitted,
FIRST SECURITIES COMPANY
INC.
By
December, 1976