Loading...
Audit - 2005COMPREHENSIVE ANNUAL FINANCIAL REPORT AN CITY OF SALINA, KANSAS 300 Vilest Ash Street P.O. Box 736 Salina, Kansas 67402 -0736 For the Fiscal Year Ended December 31, 2005 Prepared by department of Finance and Administration of City of Salina, Kansas This page intentionally left blank. CITY OF SALI NA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2005 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal i - v GFOA Certificate of Achievement for Excellence in Financial Reporting vi Organizational Chart vii List of Principal Officials viii FINANCIAL SECTION Independent Auditor's Report on the Basic Financial Statements 1 - 2 Management's Discussion and Analysis 3-13 Basic Financial Statements: Government -wide Financial Statements Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements Balance Sheet - Govemmental Funds 16 Reconciliation of the Total Governmental Fund Balance to Net Assets of Governmental Activities 17 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 18 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance with the Government -Wide Statement of Activities 19 Statement of Net Assets - Proprietary Funds 20 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds 21 Statement of Cash Flows - Proprietary Funds 22-23 Statement of Assets and Liabilities - Agency Funds 24 Notes to the Basic Financial Statements 25-47 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2005 TABLE OF CONTENTS - CONTINUED Pane FINANCIAL SECTION - CONTINUED Required Supplementary Information Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non -GAAP Basis) 57-58 General Fund 48-50 Employee Benefits Fund 51-52 Flood and Drainage Improvement Fund 53 Tourism and Convention Fund 54 Special Gas Fund 55 Bicentennial Center Fund 56 Combining Statements and Individual Fund Schedules Combining Statements - Nonmajor Funds Fund Descriptions 57-58 Combining Balance Sheet - Nonmajor Governmental Funds 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 80 Combining Balance Sheet - Nonmajor Special Revenue Funds 61-62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 63-64 Combining Balance Sheet - Nonmajor Permanent Funds 85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Permanent Funds fib Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non -GAAP Basis): Business Improvement City Fund 67 Neighborhood Park Fund 68 Special Parks and Recreation Fund 69 Special Alcohol Fund 70 Sales Tax Capital Fund 71 Sales Tax Economic Development Fund 72 Fair Housing Fund 73 Debt Service Fund 74 Solid Waste Disposal Fund 75 Water and Sewer Fund 76 Sanitation Fund 77 Golf Course Division Fund 78 Risk Management Fund 79 Workers' Compensation Fund 80 Health Insurance Fund 81 Central Garage Fund 82 Computer Technology Fund 83 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2995 TABLE OF CONTENTS - CONTINUED FINANCIAL SECTION - CONTINUED Internal Service Fund Descriptions Combining Statement of Net Assets - Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds Fiduciary Fund Descriptions - Agency Funds Combining Balance Sheet - Agency Funds Combining Statement of Changes in Assets and Liabilities - Agency Funds Table STATISTICAL SECTION Pane 84 85 86 87-88 89 90 9'1 Net Assets by Component - Last Three Years 1 92 Changes in Net Assets - Last Three Years 2 93 Fund Balances, Governmental Fund - Last Three Years 3 94 Changes in Fund Balances, Governmental Funds - Last Three Years 4 95 Tax Revenue by Source, Governmental Funds - Last Three Years 5 95 Assessed and Estimated Actual Value of Taxable Property -- Last Ten Years S 97 Direct and Overlapping Property Tax Rates — Last Ten Years 7 98 Principal Property Tax Payors 8 99 Property Tax Levies and Distributions 9 109 Taxable Sales by NAILS Class and the Ten Largest Remitters 19 191 Water Sales by Class of Customer 11 192 Ratio of Outstanding Debt by Type 12 193 Ratio of Net General Bonded Debt Outstanding 13 104 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2005 TABLE OF CONTENTS - CONTINUED Schedule of Expenditures of Federal Awards 113 Notes to Schedule of Expenditures of Federal Awards 114 Schedule of -Findings and Questioned Costs 115-116 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with "Government Auditing Standards" 117 Independent Auditors Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance I n Accordance with OM B Circular A -133 118-119 Table Page STATISTICAL SECTION - CONTINUED Direct and Overlapping Governmental Activities Debt 14 105 Legal Debt Margin 15 106 Pledged Revenue Coverage 18 107 Demographic and Economic Statistics 17 108 Principal Employers 18 109 City Government Employees by Function /Program 19 110 Operating Indicators by Function /Program 20 111 Capital Assets Statistics by Funcbon /Program 21 112 GOVERNMENTAL AUDIT SECTION Schedule of Expenditures of Federal Awards 113 Notes to Schedule of Expenditures of Federal Awards 114 Schedule of -Findings and Questioned Costs 115-116 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with "Government Auditing Standards" 117 Independent Auditors Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance I n Accordance with OM B Circular A -133 118-119 INTRODUCTORY SECTION DEPARTMENT OF FINANCE City0f AND ADMINISTRATION Rodney Franz, Director 300 West Ash, P.O. Box 736 Salina, Kansas 67402 -0736 September 25, 2006 To the Citizens of the City of Salina, Kansas: TELEPHONE (785) 309 -5735 FAX (785) 309 -5738 TDD (785) 309 -5747 E -MAIL rod.franz@salina.org Website: www.ci.salina.ks.us The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City ") for the year ended December 31, 2005, is hereby submitted. The City's Finance Department prepared the report. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of all various funds and account groups of the City. We believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Report Formal The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statistical. The introductory section includes a description of the City, including services provided, and explanation of the City's accounting system and budgetary controls, and a brief discussion of the City's economic condition and outlook. The City's organizational chart is also included to assist the reader in understanding the structure of the City. The financial section includes the Independent auditor's report, Management's discussion & analysis, Government wide financial statements, Fund financial statements, Notes to the financial statements, and Individual and combining statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi -year basis. The 2005 report implements the requirements of GASB 34 relating to the presentation of the Statistical Section one year ahead of the required implementation date. The reader is specifically directed to Management's Discussion and Analysis (MD&A) which immediately follows the independent auditor's report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The Budgetary and Financial Policies are reviewed by the City Commission and updated each year as a part of the budget process. City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes. However, management control is maintained at the department level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund balance at December 31, 2005 in the general fund and the special revenue funds. Various internal compliance procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. Independent Audit Kansas Statutes Annotated 75 -1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a City of the First Class on July 9, 1920. The City has had a Commission -City Manager form of government since 1921. The Commission is comprised of five members elected at large. Each year the commission chooses one member to act as Mayor. The City Manager is appointed by the Commission, and acts as it's primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The current population of the City is 45,989. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers public housing programs within the City of Salina. In addition, the City of Salina participates in two joint ventures with Saline County, the Salina - Saline County Board of Health and the City - County Building Authority. This report includes all funds and account groups of the City. The City provides a full range of services including police and fire protection, development services, construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events; emergency medical services and convention facilities. In addition to general government activities, the City also provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the reporting entity. Economic Outlook and Strength The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the community. Such companies include Raytheon Aircraft, Pepsi -cola, Exide Battery, Philips Lighting, ElDorado Bus and lock /line. Currently manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near the top of a list of first class cities with respect to `trade pull factor ranking 4th (pull factor = 1.33). The pull factor measures the degree to which a city or county area captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting more retail trade from outside the city /county than it is losing to other counties. It is apparent from this that Salina continues to serve as a regional economic hub in 2005. In addition, Saline County ranks third in the State Economic Strength index, as outlined by Kansas State University research and extension (2003). The index measures economic prosperity, using wealth, personal income, and employment. The economy began to show signs of recovery in 2005. Growth in the building industry continued. Value of permits issued fell from $45 million to $41, million, while new commercial permit value increased from $19 million to $22 million. However, these are still both well within historical ranges. The unemployment rate for the City decreased to 4.4% at the close of 2005, considerably below statewide and national rates, and slightly lower than the 4.8% at the close of 2004. The size of the labor force also grew by about 1.7 %. The growth activity in the local housing industry continued in 2004. Sixty -seven (57) new single - family homes were started in 2005. This is lower than average, however, there were an additional 18 living units constructed in two -unit buildings. In addition, two multi- family developments with a combined valuation of $8.9 million were completed, providing an additional 109 apartment units. Major Initiatives In March, 2004, voters elected to extend the % cent tax until June 30, 2010. Eighty -five percent (85 %) of the tax is to be used for capital improvements, tax stabilization, and human services. The remaining 15% is to be used for economic development programs. In 2001, the City progressed towards another major transportation objective with the announcement of a grant to construct a railroad overpass on North Ohio Street, a major arterial and entryway to the city. The State of Kansas will contribute $12,000,000 towards the $20,000,000 project, with the City of Salina and the railroad paying the remaining portion. The project will eliminate four tracks and bridge six additional tracks, providing significant traffic safety enhancements as well as improving access to the City from Interstate 70. During 2005 the construction contract was let for the project, with actual construction scheduled to start in early 2005. The project is due to be completed in late 2007. Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year. The community remains committed to recycling and resource conservation, with several initiatives that began in 1997, including a yard waste recycling and composting program in addition to continuing a mulching mower rebate program. The community currently has about 4,700 yard carts placed to encourage recycling of yard waste as an alternative to disposal. A Pilot residential recycling program was continued in 2004. The curbside recycling program was converted to a permanent service in 2005, with 900 households participating. 2005 also saw the initiation of a significant public - private partnership, the construction of a $1.5 million soccer complex consisting of five full size playing fields, paved parking lots, and restroomlconcession facilities. Space is available for construction of 3 additional fields in the future. The City of Salina is contributing one -half of the cost, with the remainder being provided from private sources. Completion is anticipated in late 2005, and full play should be available for the 2007 soccer season. Capital Improvement Planning The City's Capital Improvement Plan (CIP) consists of two components. One component consists of "routine" capital including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding for these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated over a multi -year period. Source of funding for routine capital is current cash resources from the fund appropriate to the nature of the purchase. The second component of the CIP includes major projects that typically require issuance of bonds or notes, although these projects may also be supplemented with available cash and grant financing. The plan is updated each year after an extensive evaluation of the demands on future financial resources. The Capital Improvement program is scheduled for a major revision as the result of the sales tax to be used for that purpose. Rr Construction Initiated *: 2007 2008 2009 2010 Major Projects: $ 675,000 $ 965,000 $ General Fund $ 675,000 $ 675,000 Sales Tax* $ 2,803,000 $ 915,000 Flood and Drainage Fund $ 200,000 $ 200,000 Special Park Fund $ 120,000 $ 120,000 Gas Tax Fund $ 1,500,000 $ 1,500,000 Solid Waste Fund $ 575,000 Sanitation Fund $ 130,000 $ 130,000 Water & Wastewater Fund $ 867,000 $ 1,000,000 General obligation Bonds $ 1,000,000 $ 5,000,000 Revenue Bonds $ 2,000,000 Other Sources $ 675,000 $ 675,000 $ 965,000 $ 600,000 $ 200,000 $ 200,000 $ 120,000 $ 120,000 $ 1,500,000 $ 1,500,000 $ 496,666 $ 2,075,000 $ 136,000 $ 130,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 2011 $ 675,000 $ 200,000 $ 120,000 $ 1,500,000 $ 1,500,000 $ 130,000 $ 1,000,000 $ 1,000,000 Total $ 71295,000 $ 12,115,000 $ 5,990,000 $ 7,300,000 $ 6,125,000 *The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design, acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or more years depending on project magnitude) subsequent to this date. Financial Policies The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. Financial policies contribute to financial stability by: 1. Providing consistent guidance in decision making 2. Establishing appropriate levels of fund balances 3. Governing the use of one time or unanticipated resources 4. Providing a multi -year capital improvements process 5. Establishing responsibilities and deadlines for budget preparation 6. Providing for a balanced annual operating budget 7. Providing guidelines on the use of debt, including appropriate purposes and terms 8. Provide a linkage between capital improvement scheduling and long term debt management planning 9. Require annual audits and financial reporting in conformance with Generally Accepted Accounting Procedures 10. Require timely and regular interim financial reporting to the Governing body 11. Insure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Salina for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2004. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA. Acknowledgments The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated, professional advice and effort of the Lowenthal, Singleton, Webb, and Wilson auditing team. A special thank Iv you needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly and reconciliation, and to Penny Day, Account Clerk ill, who has been largely responsible for document assembly and production. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Jason A. Gage Rodney Franz City Manager Director of Finance Certificate of Achievement for Excellence in Financial Reporting Presented to City of Salina, Kansas For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ED f �c OF TH Ukl � I[1'ES y CAWA COMUMN Presi dent a 41004� Executive Director City of Salina CITIZENS CITY COMNIISSION Deputy City Manager DEVELOPMENT SERVICES Michael Schrage Building Services Mike Roberts Planning/Community Devel. Dean Andrew Vacant City Manager Vacant F7H,urnan Resources Administration Donnie D. Marrs, Mayor Finance /Administration Deborah P. Divine Police Alan E. Jilka Shawn OLeary R. Abner Perney Darrell Eastin John K. Vanier II MUNICIPAL COURT ADMIN City Manager Municipal Court Judge Jason Gage BrendaStoss i ................................................................. ............................... City Prosecutor - Jennifer Wyatt Legal Services Court Supervisor Greg Bengtson Jane Garman Codes /Inspection Risk Management Traffic Control Deputy City Manager DEVELOPMENT SERVICES Michael Schrage Building Services Mike Roberts Planning/Community Devel. Dean Andrew Vacant City Manager Vacant F7H,urnan Resources Administration Bicentennial Center Computer Technology Human Relations Arts & Humanities Parks L&IRecreation Keith Rawlings Jack Rolfs Kaye Crawford John Highkin StSnyder Operations Museum Swimming Pools Food & Beverage Arts Education Golf Course Business /Ticket Office Arts Services Neighborhood Centers River Festival Parks Horizons Grants Program Recreation Community Art &Design Forestry Cemetery Building Maintenance (Rev, 918/06) * Contract Position Public Works Finance /Administration Fire Police Shawn OLeary Rod Franz Darrell Eastin Jim hill General Services Engineering City Clerk Fire Suppression Patrol Streets Design/Inspection Accounting EMS Investigations Flood Works Traffic Utility Accounting Codes /Inspection 911 /Communications Traffic Control Treasurer Public Education Internal Affairs Central Garage Utilities Sanitation Water Treatment & Dist. Landfill Wastewater Collect./Treat. Bicentennial Center Computer Technology Human Relations Arts & Humanities Parks L&IRecreation Keith Rawlings Jack Rolfs Kaye Crawford John Highkin StSnyder Operations Museum Swimming Pools Food & Beverage Arts Education Golf Course Business /Ticket Office Arts Services Neighborhood Centers River Festival Parks Horizons Grants Program Recreation Community Art &Design Forestry Cemetery Building Maintenance (Rev, 918/06) * Contract Position City of Salina, Kansas List of Principal Officials City Commission Donnie Marrs, Mayor Alan Jilka, Vice -Mayor Deborah Divine, Commissioner Abner Perney, Commissioner John Vanier II, Commissioner City Executive Staff Jason Gage, City Manager Michael Schrage, Deputy City Manager Rodney Franz, Director of Finance and Administration Jim Hill, Chief of Police Darrell Eastin, Fire Chief Shawn O'Leary, Director of Public Works Jack Rolfs, Director of Computer Technology Keith Rawlings, Bicentennial Center Manager Steve Snyder, Parks and Recreation Director John Highkin, Director of Arts and Humanities Kaye Crawford, Human Relations Director Greg Bengtson, City Attorney This page intentionally left blank. FINANCIAL SECTION LO SINGLETON WEBB & WELSON P R O F E S S I O N A L A S S O C I A T I ON CERTIFIED PUBLIC ACCOUNTANTS 900 Massachusetts, Suite 301 Lawrence, Kansas 66044 -2868 .Phone: (785) 749 -5050 Fax: (785) 749 -5061 E -mail: lswwcpa@lswwcpa.com lswwcpa.com INDEPENDENT AUDITOR'S REPORT ON THE BASIC FINANCIAL STATEMENTS Mayor and City Commissioners City of Salina, Kansas David A. Lo %venthal, CPA Thomas E. Singleton, CPA Patricia L. Webb, CPA Thomas C. Wilson, CPA Audrey M. Odermann, CPA Abram M. Chrislip, CPA Membcrs of American Institute and Kansas Socicty of Certificd Public Accountants We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of and for the year ended December 31, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Salina Airport Authority which statements reflect total assets of $35,027,225 as of December 31, 2005 and total revenues of $6,224,781 for the year then ended, and the Housing Authority of the City of Salina which statements reflect total assets of $7,474,577 as of June 30, 2005 and total revenues of $2,1 23,681 for the year then ended, which are discretely presented component units in the accompanying financial statements. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the "Kansas Municipal Audit Guide." Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, at December 31, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis on pages 3 through 13 and the major fund budgetary comparisons on pages 48 through 50 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A -133, "Audit of States, Local Governments, and Non- Profit Organizations," and is not a required part of the basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical tables as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying schedule of expenditures of federal awards and the combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. We did not audit the data included in the introductory and statistical sections of this report and therefore, we express no opinion thereon. do Professional Association May 12, 2006 This page intentionally left blank. Management discussion and Analysis This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal year ended December 31, 2005. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well rounded picture of the City's financial condition. Financial Highlights Net Assets increased by $15,316,443. Of this amount, $16,876,657 was attributable to Governmental Activities and $1,439,786 was attributable to Business -Type activities. "fhe Bond Rating from Moodys Investor's Service was upgraded from an Al to an Aa3 rating. A significant capital project, the $20,000,000 North Ohio Grade Separation proceeded through the contract letting phase. Franchise agreements were re- negotiated with both gas and electric companies, with the rates changing from 3% to 5 %, as well as provisions for transported utilities. On the whole, fund balances related to operations were maintained at a relatively stable level. The Basic Financial Statements The basic financial statements of the City include the government -wide financial statements and the fund financial statements. The notes to the financial statements follow the basic financial statements, and are essential for the reader's understanding of the financial statements. Other supplementary information, including the combining schedules for non -major funds and the budgetary comparison reports, are at the end of this report to provide additional information for the reader. Government -wide Financial Statements The government -wide financial statements present the results of the City's operations using the accrual basis of accounting, the same basis as is used by private sector businesses. These statements focus on the long -term financial picture of the City as a whole The Statement of Net Assets reports all of the City's assets and liabilities. Net assets, the difference between assets and liabilities, are an important measure of the City's overall financial health. Net assets represent the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net assets can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how the net assets have changed during the fiscal year. One unique feature of this statement is how it shows the revenues and expenses related to specific programs and how much of those programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements show the operations of the City broken down between governmental and business type activities. Governmental activities are the operations of the City generally supported by taxes, such as Public Safety (Police, Fire, and EMS), Public Works, Public Health, and Culture & Recreation. Business -type Activities are operations of the City that are intended to recover a significant portion of their costs through user fees and charges. These include Water and Sewer, Refuse collection, the Golf Course, and operation of the City Solid Waste Facility. The government -wide financial statements include the Salina Airport Authority and Salina Housing Authority as discretely presented component units of the City. Note 1, item A in the Notes to the Financial Statements provide a more complete explanation of the relationship between these entities and the City of Salina. Fund Financial Statements The City uses three types of funds to manage its resources: governmental funds, proprietary funds, and fiduciary funds. A fund is a fiscal entity with a set of self - balancing accounts recording financial resources together with all related liabilities and residual equities and balances, and the changes therein. These accounting entities are separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with regulations, restrictions, or limitations. Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred with the exception of long term debt and similar items which are recorded when due. The focus is on the short -term financial picture of the operations of the individual fund, rather than long -term citywide view provided by the government -wide statements. Major Governmental Funds are presented in individual columns, while Non -major Governmental Funds are aggregated into an "Other Governmental Funds" column. A combining statement for the Non -major funds is presented as supplementary information in the back of the report. The information presented in these statements can be compared to the governmental activities information in the government -wide statements. The reconciliation at the end of the fund financial statements details the relationship between the two types of financial statements. Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are prepared on the accrual basis of accounting, and are used to account for business -type activities. Enterprise fund statements present the same information that is in the government -wide statements for business -type activities, but in greater detail. The City of Salina currently operates four enterprise funds: Sanitation Collection, Solid Waste Disposal, Golf Course, and Water and Sewer. Internal Service funds are used to account for the cost of operations shared by various departments of the City. The city operates five internal service funds. Three of these are for self - insurance activity: Risk Management, Workers Compensation Reserve, and Health Insurance. The remaining two account for our Information Services activity and for the Central Garage operation. A combining statement for these internal service funds can be found in the supplementary information following the notes to the financial statements. Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a special class of Fiduciary Fund in which liabilities always equal assets, and thus there are no net assets. The City of Salina operates nine Agency funds. Schedules for these funds may be viewed in the supplementary section of this report. Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used. Permanent funds operated by the City include the Citizenship Trust, Cemetery and Mausoleum Endowments, and the Tri- centennial Commission fund. Notes to the Financial Statements The notes to the financial statements are an integral part of the basic financial statements since they contain valuable additional information necessary for gaining a complete understanding of the City's financial statements. Other Information In addition to the basic financial statements and the notes described above, this report also presents the general fund and major special revenue fund's budgetary statements as required supplementary information directly following the notes to the basic financial statements. The combining statements for the non -major funds are shown after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's operations and economy. The City as a Whole This section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support it's operations. Each of these revenue streams has a different revenue base. In declining order of magnitude, they are charges for service, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to Governmental Activities, while charges for services apply to both Governmental (34 %) and Business -type (66 %) activities. Charges for Services account for about 50% ($27,587,000) of the City's revenue stream. Charges for, Service depend on both the rate that is set for the activity, as well as the volume of services provided. The following table illustrates service volume and rate adjustments for some of the more significant services for the year ending December 31, 2005. 4 Description Monthly Ave Water Accounts Billed Water Metered (In Billion Gallons) Sanitation Customers Golf Rounds (18 Hole) Golf Rounds (Par 3) Golf Annual Memberships Solid Waste Tonnage Building Permits Issued Building Permit Value ($ Millions) 2004 2005 Volume Volume Change Rate Comments 19,368 191730 362 Water Rates Increased 2.5% 2.01 2.09 0.08 Wastewater Increased by 5.5% 14,103 141175 72 Sanitation Rates increased by 4.8% 40,406 391408 (998) patron Cards (memberships) 5,279 5,367 88 increased by 5% 314 305 -9 90,069 88,096 (1,973) No Change in Solid Waste rates 656 653 (3) No Change in fees. 5 42 $ 49 $ 7 The number of Water accounts billed grew by about 2 %, while the volume of water sold increased by 3.9°/x. The number of sanitation customers increased by about 112 %. Golf activity shows a decrease (2.5 %) in 18 hole rounds, as well as a decrease (2.9 %) in annual memberships. Solid Waste tonnage showed a slight decrease. Building permit volume was essentially unchanged, although the value of permits issued increased by about 16 %. Sales taxes are the next largest component of the revenue mix, providing 23% ($12,836,000) of the total revenues. The City receives a .75% City -wide sales tax, and also a portion of the County -wide 1 % sales tax. One -third (.25 %) of the City -wide sales tax is required to be used for special purposes. The remaining .5% along with the City portion of the Countywide tax is available for general purposes. Total revenue from the sales tax in 2005 was $12,836,311, up from $12,768,000 in 2004. This represents an increase of .5% in tax proceeds distributed to the City. A number of factors affect the sales tax. First are the regional and local economic conditions and relationships. These are reflected in the proceeds of the City -wide tax, which grew by about 2 %. However, the City was adversely affected by the formula used to distribute the County -wide sales tax among participating jurisdictions (only Cities and the County participate, School and other special districts do not). The formula is based, in part, on the property tax efforts of each jurisdiction. Because the portion of the overlapping levy attributable to the City of Salina was reduced for 2005, the City's allocated portion of the County -wide sales tax was reduced from 62.2% in 2004 to 61.6% in 2005. This is equivalent to a reduction of approximately $58,000 from 2004 to 2005. The .25% sales tax dedicated to education technology expired (sunset) June 30, 2004. On March 16, 2004, Salina voters approved the extension of the .25% tax purposed for Capital Investment, Economic development, Human Services, and Tax Stabilization. The extended tax is to sunset June 30, 2010. The tax produced $2,280,000 in 2005. Property Taxes are the third major component of the revenue mix, accounting for 17% ($9,196,000) of total revenues. Property taxes consist of two components: Real estate and personal property taxes which are determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes, which are established by a countywide average tax rate, and the assessed value of the vehicle. Real estate and personal property assessed value grew by 2 %. The total City mill levy was increased by .2 %., while the overlapping levy was increased by 4.2 %. Tax delinquency decreased slightly. Motor Vehicle value increased by $21008,000 (4.3 %), while the rate applied for motor vehicles decreased by 6.36 mills (7 %) . Motor vehicle taxes are distributed based on a formula using prior years tax effort (similar to the Countywide Sales Tax Distribution). 5 The following table summarizes the comparative property assessed values and tax levy rates: Fiscal (Budget) Year Real Estate and Personal Property Assessed Valuation City Mill Levy ($ per $1,000) Operating (General Fund, Employee Benefits, Flood and Drainage Fund) Debt Service M illage Total City Levy Rate Total overlapping Levy Percent of Current Taxes Collected Ratio of Total Taxes (including delinquent tax collections) to Taxes Levied Motor Vehicle Valuation County Wide Average Vehicle Tax Rate ($ per $1,000) 2004 2005 32815931720 3351202,18'. 20.017 20.055 3.990 4.008 24.013 24.003 118.574 123.587 97.3% 98.0 °10 100.2% 102.7°16 48,079,292 48,087,1211 90.949 84.589 Change 0,008,450 0.038 0.012 0.050 5.013 0.007 0.025 7,829 (0.300) The unemployment rate in Saline County decreased slightly from 4.8% in 2004 to 4.4% in 2005, reflecting general economic conditions. This is below the statewide and national unemployment rate. The total labor force increased to 31,293, a change of 1.6 %. In 2005, the top ten property taxpayers accounted for 13.71 % of total assessed value. This is less concentrated than ten years ago (at 16.18 %) Statement of Net assets Net assets may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets exceeded liabilities by $171,145,000 at December 31, 2005. This represents an increase in net assets of $19,578,000 over 2004. A condensed version of the Statement of Net Assets at December 31, 2004 follows: Comparative condensed Statement of Net Assets, 2004 and 2005 (In $000) Governmental Activities Activities Total Primary Government % of % of 2004-2005 2004 2005 2004 2005 2004 Total 2005 Total Change Cash and Investments $ 14,342 $ 11,224 $ 11,537 $ 11,487 $ 25,879 13% $ 221710 10% $ (3.169) Other Current Assets $ 2,543 $ 3,170 $ 2,795 $ 2,465 $ 5,338 3% $ 5,635 3% $ 297 Noncurrent (Capital) Assets $ 1141716 $ 133,608 $ 591796 $ 59,676 $ 174,512 85% $ 1931284 87% $ 1 8,772 Total Assets $ 131,601 $ 148,002 $ 74,129 $ 73,628 $ 205,729 100% $ 221,630 100% $ 15,901 Current Liabilities $ 91726 $ 6,756 $ 3,057 $ 2,981 $ 121783 24% $ 91737 19% $ (3,046) Noncurrent Liabilities $ 20,554 $ 21,998 $ 20,825 $ 18,750 $ 41,379 76% $ 401748 81% $ Total Liabilities $ 30,280 $ 28,754 $ 23,882 $ 21,731 $ 54f162 100% $ 50,485 100% $ (31 fi77} Net Assets: Invested in capital assets, net of related debt $ 92,947 $ 110,184 $ 39,003 $ 40,968 $ 131,950 87% $ 151,152 88% $ 19,202 Restricted for Permanent Funds $ 343 0% $ 343 0% $ 343 Restricted for Debt Service $ 1,317 $ 1,299 $ 1,406 $ 1,108 $ 2,723 2% $ 2,407 1% $ (31 6) Unrestricted $ 7,057 $ 7,422 $ 9,837 $ 9,821 $ 16,894 11% $ 17,243 10% $ 349 Total Net Assets $ 101,321 $ 119,248 $ 50,246 $ 51,897 $ 151,567 100% $ 171,145 100% $ 19,578 Percent of Total Assets 67% 70% 33% 30% 100% 100% Cash and Investments as a percentage of current liabilities 147% 166% 377% 385% 202% 233% The largest segment of the City's net assets (88 %) reflects its investment in capital assets (land, buildings, streets and drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related debt can not come from liquidation of the asset. Such resources generally must be provided from other sources, such as future taxes or user charges. D A small portion of net assets (2 %) is restricted for debt service. The remainder of net assets (10 %) may be used to meet the City's obligations to citizens and creditors. In 2005, the amount invested in capital assets net of related debt increased substantially ($19,644,295), while unrestricted net assets increased only slightly. This represents investment of current resources (primarily capital grants) in capital assets. Liabilities declined, with the bulk of the decline evident in current liabilities, reflecting a reduction in short term notes outstanding. Total assets increased (by about $'15,901,000 or 7.7 %). This increase is all attributable to the increase in capital assets, with cash and current assets remaining stable. The quick ratio indicates that the City has enough liquidity to retire current liabilities approximately 3 times. During the year ended December 31, 2005, there were several significant events that changed the balance of net assets. Governmental Activities. 2005 saw a modest decrease in cash and investments and a significant increase in capital assets. This reflects the initiation of contractual obligations with the Kansas Department of Transportation for the construction of the North Ohio Street grade separation, and recording of the related capital grant and assets. Business -type Activities: Business Type activities were engaged largely in maintenance type activities. Scheduled debt paydowns resulted in a slight increase in net capital assets. Statement of Activities A condensed statement of activities is shown below. Condensed Comparitive Statement of Activities, 2004 and 2005 (In $000's) Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Property Taxes Sales Taxes Other Taxes Investment Revenue Other Miscellaneous Total Revenues: Expenses: General Government Public Safety Public Works Public Health and Sanitation Culture and Recreation Planning and Development Solid Waste Disposal Water and Sewer Sanitation Golf Course Interest on Long Term Debt Total Expenses Increase in net assets before transfers Transfers and other extraordinary items Increase in Net Assets Net Assets, January 1 Prior Period Adjustment Net Assets, January 1, restated Net Assets December 31 Governmental Activities 2004 2005 Business -Type Activities 2004 2005 $ 8,943 $ 9,859 $ 17,456 $ 17,728 $ 3,197 $ 2,798 $ 368 $ - $ 2,480 $ 13,875 $ - $ - $ 8,962 $ 90196 $ 12,765 $ 12,835 $ 3,426 $ 390 $ 1,084 $ 3,557 $ 544 $ 1,209 $ 41,247 $ 53,874 $ 4,931 $ 4,904 $ 13,548 $ 14,159 $ 7,958 $ 8,420 $ 1,016 $ 1,102 $ 4,784 $ 5,071 $ 4,130 $ 2,714 $ 786 $ 37,153 $ 4,094 $ 24 $ 4,118 $ 95,638 $ 1,564 $ 97,202 $ 101,321 $ 742 $ 37,112 $ 16,762 $ 114 $ 16,876 $ 101,321 $ 1,050 $ 102,371 $ 119,248 $ 222 $ 328 93 $ 150 $ 18,139 $ 18,206 $ 2,374 $ 2,608 $ 11,552 $ 11,262 $ 1,920 $ 1,889 $ 817 $ 893 (t - $ 16,663 $ 1,476 $ (24) $ 1,436 $ 48,308 $ 486 $ 48,774 $ 50,246 7 $ 16,652 $ 1,554 $ (114) $ 1,440 $ 50,246 $ 211 $ 50,014 $ 51,897 Total Primary Govemment 2004 % 2005 % 2004 -2005 Change $ 26,399 44% $ 27,587 38% $ 1,188 $ 3,565 6% $ 2,798 4% $ (767) $ 2,480 4% $ 13,87.5 19% $ 11,395 $ 8,962 $ 12,765 $ 3,426 $ 612 $ 1,177 $ 59,386 $ 4,931 $ 13,548 $ 7,958 $ 1,016 $ 4,784 $ 4,130 $ 2,374 $ 11,552 $ 1,920 $ 817 $ 786 $ 53,816 $ 5,570 $ 5,554 $ 143,946 $ 2,050 $ 145,976 $ 151,567 15% $ 9,196 21% $ 12,836 6% $ 3,557 1 % $ 872 2% $ 1,359 100% $ 72,080 9% $ 4,904 25% $ 14,159 15% $ 8,421) 2% $ 1,102 9% $ 5,071 8% $ 2,714 4% $ 2,608 21% $ 11,262 4% $ 1,889 2% $ 893 1 % $ 742 100% $ 53,764 $ 18,316) $ 18,3165 $ 151,56►' $ 1,261 $ 152,385 $ 171,145 13% $ 234 18% $ 71 5% $ 131 1 % $ 260 2% $ 182 100% $ 12,694 9% $ (27) 26% $ 611 16% $ 462 2% $ 86 9% $ 287 5% $ (1,416) 5% $ 234 21% $ (290) 4% $ (31) 2% $ 76 1 % 44 100% 52 $ 12,746 $ 12,762 $ 7,621 $ (789) $ 6,409 $ 19,578 Governmental Activities. Total expenses for Governmental Activities for the year ending December 31, 2005 were $37,112,000 compared to $37,153,000 in 2004. The apparent decrease is solely the result of the change in purpose for the % cent sales tax, which has resulted in a shift from operating expenses to capital investment. 'This factor is also clearly apparent in the change in expense reported planning and development expenses from 2004 to 2005. Governmental activities represent 68% of the City's total expenses. The largest element of Governmental Activity expense was Public Safety, at 26% of the City total, followed by Public Works at 14% of the total. Charges for service attributable to Governmental Activities totaled $9,859,000 and operating grants for those purposes were $2,798,000. Capital grants and contributions totaled $13,875,000, and were primarily related to the construction of the North Ohio Street grade separation. The balance of $27,456,000 was funded by general revenues. Sales taxes accounted for $12,836,000 of the general revenues, with property taxes providing $9,195,000. Net assets increased by $16,877,000 as a result of Governmental Activities. The bulk of this increase is due to capital investment. Business Tvpe Activities. Total expenses for Business -type Activities for the year were $16,652,000, or 31 % of the City's total expense. The majority of this expense ($11,262,000) is attributable to Water and Sewer operations, with the other activities (Solid Waste Disposal, Sanitation, and Golf Course) costing a combined total of $5,390,067. These activities are primarily supported by user charges, with only $354,030 coming from general revenues, representing largely the interest earned on fund balances held by the City. Net assets increased by $1,439,786 as a result of Business -type Activity operations. Fund Financial Analysis Governmental Funds Fund Balances: The table below shows the Governmental Fund balances for major funds for the years ended December 31, 2004 and December 31, 2005. Fund 2004 General $ 71311,303 Employee Benefits $ 6121256 Flood and Drainage $ 5211148 Tourism and Convention $ 2671200 Special Gas $ 113821177 Bicentennial Center $ 2561903 Debt Service $ 11317,062 Capital Projects $ (41277,626) Other Governmental Funds $ 117727458 Total $ 91162,891 2005 Change $ 7,066, 959 $ (244, 344) $ 5211459 $ (90,807) $ 3281720 $ ( 192,428) $ 2091495 $ (57, 705) $ 11069,426 $ (3127751) $ 278,300 $ 217397 $ 11298,695 $ (18, 367) $ (41106,972) $ 170,654 $ 21925,219 $ 1,152, 761 $ 91591,301 $ 4281410 Total Governmental Fund balances increased by $428,410. This increase is due entirely to Capital projects funds, and to changes in other governmental funds, primarily the Special Sales tax funds. Governmental fund balances, net of Capital Projects decreased by $895,005. The General Fund balance decreased by $244,344. This is a result of a combination of factors, including some growth in revenue (Sales Tax, Intergovernmental revenues), a transfer of the selective sales tax to special revenue funds (along with a decrease in the associated expenditures reflected in planning and development) and a modest increase in capital outlay expenditures. Revenues and Expenditures: "rhe following table shows a comparison of revenues and expenditures (including other sources and uses) for major funds for the years ending December 31, 2004 and 2005. Fund 2004 2005 Change Revenues (Including Other Financing Sources) General $ 23,782,586 $ 22,913,723 $ (868,863) Employee Benefits $ 4,557,020 $ 41797,757 $ 2401737 Flood and Drainage Improvement $ 371,570 $ 1471506 $ (224,064) Tourism and Convention $ 825,853 $ 840,081 $ 141228 Special Gas $ 1,776,477 $ 1,515,246 $ (261,231) Bicentennial Center $ 1,326,152 $ 1,323,209 $ (21943) Debt Service $ 8,429,798 $ 3,007,947 $ (5,421,851) Capital Projects $ 4,413,426 $ 5,590,419 $ 11176,993 Other Governmental Funds* $ 2,160,815 $ 3,865,301 $ 1,704,486 Total Revenues $ 47,6431697 $ 44,001,189 $ (31642,508) Less Other Sources $ 71773,367 $ 5,609,193 $ (2,164,174) Revenues, net of other sources $ 39,870,330 $ 38,391,996 $ (1,478,334) Expenditures (Including Other Financing Uses) General $ 23,246,826 $ 23,158,067 $ (88,759) Employee Benefits $ 41309,642 $ 4,888,564 $ 578,922 Flood and Drainage Improvement $ 222,755 $ 339,934 $ 117,179 Tourism and Convention $ 807,809 $ 897,786 $ 89,977 Special Gas $ 1,936,522 $ 11827,997 $ (108,525) Bicentennial Center $ 11310,731 $ 1,301,812 $ (8,919) Debt Service $ 81697,066 $ 3,026,314 $ (5,670,752) Capital Projects $ 81707,863 $ 5,419,765 $ (3,288,098) Other Governmental Funds* $ 1,581,838 $ 21712,540 $ 1,130,702 Total Expenditures $ 50,821,052 $ 43,572,779 $ (7,248,273) Less Other Uses $ 6,476,060 $ 1,365,174 $ (5,110,886) Expenditures, net of other uses $ 44,344,992 $ 42,207,605 $ (2,137,387) Total revenues and other sources decreased (by $3,642,508) from 2004 to 2005. The largest component of this change was in the Debt Service fund (reduction of $5,421,851 ), and is the result of refinancing activity in 2004 totaling $5,388,947 that was not repeated in 2005. Absent this one -time transaction, revenues to the debt service fund would have declined by $32,904. Other funds showing revenue declines include the Special Gas Tax fund, created by a one -time reimbursement in 2004, and the General Fund, which experienced a reduction in revenues due to the re- purposing of the special sales tax. This loss to the General fund was nearly offset by other revenue increases to the fund. Reduction in taxes for the Flood and drainage fund was due to a reduction in the property tax levy rate allocated to that fund. Several funds showed revenue increases compared to 2004. Chief among these were the "Other" Governmental funds. This reflects the re- purposing of the special sales tax from the General Fund to the Capital Improvement and Economic Development funds created for the Special Sales Tax proceeds. The other fund with a significant increase in the revenues stream include the Capital Projects fund, created by a reduction in current year grant financing on the North Ohio project, coupled with temporary note proceeds and transfers to the fund from the Special Sales Tax fund. Total expenditures and other uses also show substantial changes resulting from financing activity. The significant decrease in the Debt Service fund is due to the refinancing activity ($5,388,947). The decrease in expenditures, net of the refinancing activity totaled $281,805. The Capital Projects fund also shows a significant decrease in expenditures relating to projects that are currently in progress. The General fund appears to show a minor reduction in expenditures, however, this is affected to a significant degree by the repurposing of special sales tax proceeds. As a result, Planning and Community Development expenditures in the fund decreased from $3,052,745 to $1,328,376, while all other expenditures (excluding other sources and uses) increased from $20,023,225 to $21,439,138, an increase of about 7.1 %. These increases were focused in the areas of Public Works (12.4 %) and Culture and Recreation (9.3 %). Proprietary Funds The City of Salina operates four Enterprise Funds as well as five Internal Service Funds. A summarized comparative Statement of Net Assets follows for each Enterprise Fund: Current Assets Capital Assets Total Assets Current Liabilities Noncurrent Liabilities Total Liabilities Assets Invested in Capital, net of related debt Restricted Net Assets Unrestricted Net Assets Total Net Assets Current Assets as a percentage of current liabilities Current Assets Capital Assets Total Assets Current Liabilities Noncurrent Liabilities Total Liabilities Assets Invested in Capital, net of related debt Restricted Net Assets Unrestricted Net Assets Total Net Assets Current Assets as a percentage of current liabilities The Solid Waste and Golf Cours( fund, this is due to a reduction in primarily in current assets. Wate Summary Statement of Net Assets (131) $ 38,173 $ 38,445 $ 21273 in $000's - $ 11405 $ 17109 $ (297) $ 1,230 $ 1,333 $ 103 $ 81241 $ 77970 $ (271) $ 21948 $ 2,918 $ (28) Solid Waste Disposal 45,820 $ 47,525 Water and Sewer 1,705 2004 85 2005 Change (4) 2004 122 2005 Change $ 33180 $ 31308 $ 128 $ 10,405 $ 91918 $ (489) $ 41550 $ 4,082 $ (488) $ 54,275 $ 541847 $ 372 $ 71730 $ 70388 $ (382) $ 84,880 $ 841583 $ (117) $ 513 $ 403 $ (110) $ 21444 $ 21458 $ 12 $ 41270 $ 41047 $ (223) $ 18,417 $ 14,582 $ (1,835) $ 4,784 $ 41450 $ (334) $ 18,881 $ 17,038 $ (11823) $ 1,718 $ 1,585 $ (131) $ 38,173 $ 38,445 $ 21273 $ - $ 11405 $ 17109 $ (297) $ 1,230 $ 1,333 $ 103 $ 81241 $ 77970 $ (271) $ 21948 $ 2,918 $ (28) $ 45,820 $ 47,525 $ 1,705 820% 820% Sanitation Revenues, Expenses, and Changes in Net Assets 10 426% 404% Golf Course 2004 2005 Change Change $ 577 $ 588 $ 11 $ 455 $ 475 $ 19 $ 11033 $ 11053 $ 30 $ 53 $ 89 $ 18 $ 89 $ 85 $ (4) $ 122 $ 134 $ 12 $ 405 $ 405 $ - $ 507 $ 454 $ (53) $ 911 $ 929 $ 18 1089% 852% Funds show modest declines in total i capital assets (net of related debt), whi r and Sanitation Course shows a reduction funds both reflect mod Revenues, Expenses, and Changes in Net Assets 10 426% 404% Golf Course 2004 2005 Change $ 170 $ 141 $ (29) $ 515 $ 493 $ (22) $ 585 $ 834 $ (51) $ 47 $ 53 $ 5 $ 59 $ 58 $ (13 ) ' $ 118 $ 109 $ (7) $ 441 $ 481 $ 20 $ 128 $ 54 $ (84) $ 559 $ 525 $ (44) 352% 266% iet assets. In the case of the Solid Waste Breas, the Golf Course shows a reduction est increases in total net assets. Net assets in the Solid Waste Fund declined by $234,000 due to operations. The cause for this was a reduction in operating revenues, and an increase in operating expenditures and transfers out. Operating income in the Golf Course fund increased by $15,000, however, operating expenses increased by $75,000, resulting in a reduction in assets due to operations of $51,000 In the Sanitation Fund and Water and Sewer Funds, total net assets grew slightly, due largely to an increase in operating revenues, and to a lesser extent, to a reduction in expenses.. Summary of Revenues, Expenses and Changes in Net Assets (In $000's) The Internal Service funds experienced an increase in net assets of $445,417. This is a reversal of the prior year experience, and reflects adjustments to internal charges. 11 Solid Waste Disposal Water and Sewer 2004 2005 Change 2004 2905 Change Operating Revenues $ 21489 $ 21366 $ ( 123) $ 12,432 $ 127802 $ 370 Operating Expenses $ 21284 $ 21337 $ 53 $ 10,854 $ 10,468 $ (186) Operating Income $ 205 $ 29 $ ( 178) $ 17T78 $ 21334 $ 556 Non -operating revenues (expenses) $ (19) $ (189) $ (170) $ (760) $ (564) $ 196 I ncome ( Loss) before Transfers $ 186 $ ( 160) $ (346) $ 1,019 $ 11769 $ 750 Transfers in (out) $ (74) $ (74) $ (24) $ (40) $ (16) Capital Contributions $ 368 Change in Net Assets $ 170 $ (234) $ (404) $ 11363 $ 11729 $ 366 Net Assets, January 1 $ 21701 $ 21946 $ 245 $ 44,029 $ 45,820 $ 11791 Restatement $ 60 $ 206 $ 146 $ 427 $ (24) $ (451) Net Assets, January 1, restated $ 21761 $ 3,153 $ 392 $ 441456 $ 451795 $ 11339 Net Assets, December 31 $ 21946 $ 2,918 $ (28) $ 45,820 $ 47,525 $ 11705 Sanitation Golf Course 2004 2005 Change 2004 2005 Change Operating Revenues $ 11814 $ 1,880 $ 66 $ 814 $ 829 $ 15 Operating Expenses $ 11908 $ 12889 $ (19) $ 815 $ 891 $ 76 Operating Income $ (94) $ (9) $ 85 $ (2) $ (62) $ (60) Non -operating revenues (expenses) $ (4) $ 14 $ 18 $ 1 $ 1 $ - Income (Loss) before Transfers $ (97) $ 6 $ 103 $ (1) $ (61) $ (60) Transfers in (out) $ - $ - Change in Net Assets $ (97) $ 6 $ 103 $ (1) $ (61) $ (60) Net Assets, January 1 $ 11009 $ 911 $ (98) $ 569 $ 568 $ (1) Restatement $ (1) $ 12 $ 13 $ 17 $ 17 Net Assets, January 1, restated $ 1,008 $ 924 $ (84) $ 569 $ 586 $ 17 Net Assets, December 31 $ 911 $ 929 $ 18 $ 568 $ 525 $ (43) The Internal Service funds experienced an increase in net assets of $445,417. This is a reversal of the prior year experience, and reflects adjustments to internal charges. 11 Budgetary Highlights The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis fund balances at December 31, 2005. Formal budgetary amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Re- allocation among departments or line items are not typically recorded as budgetary amendments. However, in addition to formal amendments, departments within the City are allowed to transfer budget between line items within a department. Budgets may also be transferred from department to department within each fund. As a result of these transfers, the original budget and the final budgets may not be the same for departments within a fund. The General Fund budget was not formally amended during the year. The City experienced a number of significant variances from budgeted items in the General Fund, however, the total fund was well with budget. Most notably, Public Safety Fees exceeded budget by $473,261. This was due to a concerted effort to reduce outstanding warrants, and to the implementation of a dispatch contract with Saline County. General sales taxes fell short of budget by about $184,000 (1.7% of the budgeted amount for this item). Revenues for recreation programs were also somewhat higher than budget; these were offset by corresponding expenditures. Several expenditure items were also significantly over or under budget. The City Manager, Police and Development Services departments were all significantly under budget due to staff position vacancies. The "Other General Government" group of accounts was over budget due largely to earned leave payouts, Municipal Court experienced higher than anticipated prisoner housing costs, and, as noted above, recreation programs were above budget (offset by increased program revenues). Finally, capital investments exceed budgeted amounts. Capital Assets and Debt Administration Capital Assets The total amount invested in Capital Assets for the City at December 31, 2005 was $192,841,024, net of accumulated depreciation. The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2005: 12 Governmental Activity Business -type Activity Total 2004 2005 2004 2005 2004 2005 Equipment, Furniture and Fixtures $ 11340 $ 11421 $ 11751 $ 11555 $ 31091 $ 21976 Vehicles $ 11829 $ 1 ,779 $ 662 $ 819 $ 27491 $ 21598 Buildings and Improvements $ 111351 $ 112595 $ 14,955 $ 147522 $ 267316 $ 26,117 Land $ 141894 $ 22,325 $ 11544 $ 11544 $ 16,438 $ 237869 Infrastructure $ 761382 $ 76,534 $ 411085 $ 41,236 $ 1173467 $ 1171770 Construction in Progress $ 91967 $ 19,952 $ - $ - $ 91967 $ 19,952 Total $ 1151765 $133,606 $ 60,007 $ 59,676 $ 175,772 $ 193,282 * Net of Accumulated Depreciation 12 Changes to capital assets may be summarized as follows: Changes to Capital Assets, 2005 (in 000's) Governmental Business -Type Activity Activity Total Additions $ 33,367 $ 2,249 $ 35,616 Retirements $ (11,833) $ (138) $ (11,971) Adjustments $ 587 $ 132 $ 719_ Net Additions $ 221121 $ 2,243 $ 24,364 Depreciation Expense Applied $ 3,829 $ 2,580 $ 61409 Additional information on the City's capital assets can be found in Note 4,D. of the notes to the basic financial statements. Debt Management The City's general policy for General Obligation Bonds is to issue them for no more than 10 years for the City at Large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity may extend to 15 years. The outstanding General Obligation Bonds at 12/31/2005 totaled $27,461,377. Temporary notes outstanding total $2,700,000. Total General Debt is thus $30,161,377 Net general bonded debt per capita is thus $62.6.14 In addition, Business -type activities had $4,990,000 in Revenue Bonds outstanding, as well as $7,460,602 in loans provided through the Kansas Development Finance Authority. Revenues generated by user fees are pledged to retire all of the Bonds issued by Business -type activities. The City engaged in several debt transactions during 2005. One General Obligation Bond issue, Series 2005A was sold in the principal amount of $4,210,000. Moody's rating service extended a rating of Aa -3 to both of this issue. This represents an upgrade from the Al rating previously assigned to the City of Salina. In addition, one temporary note series were issued during the year, totaling $500,000. Additional information on the City's debt can be found in Note 4, E. of the notes to the basic financial statements. Requests for Information This financial report is intended to give the reader a general overview of the City's finances. Questions about information in this report or requests for additional information should be directed to the Director of Finance, Room 206, 300 West Ash Street, Salina, Kansas, 67401. 13 "this page intentionally left blank. BASIC FINANCIAL STATEMENTS CITY OF SALINA, KANSAS STATEMENT OF NET ASSETS December 31, 2005 The notes to the basic financial statements are an integral part of this statement. 14 Primary Government Component Units Total Total Total Salina Salina Governmental Business -type Primary Housing Airport Activities Activities Government Authority Authority ASSETS Current assets: Cash and investments $ 11,224,335 $ 11,486,833 $ 22,711,168 $ 912,357 786,238 Receivables (net of allowance for uncollectibles) Accounts 1,619,809 962,588 2,582,397 18,281 265,850 Taxes 779,471 - 7790471 - 1,158,150 Interest 221,075 184,895 405,970 1,684 - Notes 5,527 - 5,527 - - Mortgages - - - 26,044 - Due from other governments - - - 39,677 - Inventory 213,327 520,453 733,780 - - Restricted cash - 408.033 408,033 73,510 - Prepaid expenses - - - - 31109 Net investment in financing leases - - - - 783,710 Deferred charges 330,632 389,051 719,683 38,867 88,665 Total current assets 14,394,176 13,951,853 28,346,029 1,110,420 3,085,722 Noncurrent assets: Capital assets, nondepreciable Construction in progress 19,952,317 - 19,952,317 1,481,890 752,860 Land 22,325,293 1,544,110 23,869,403 533,637 8,847,886 Capital assets, depreciable 154,738,661 90,539,005 245,277,666 6,202,516 39,794,315 Less: Accumulated depreciation 63,408,421 32,406,495 95,814,916 1,853,886 15,453,557 Total noncurrent assets 133,607,850 59,678,620 193,284,470 6,364,157 32,941,504 Total assets $ 148,002,026 $ 73,628,473 $ 221,630,499 $ 7,474,577 $ 36,027,226 Liabilities: Current liabilities: Accounts payable $ 1,499,086 $ 294,696 $ 1,793,782 $ 19,560 $ 993,147 Retainage payable 9,926 18,464 28,390 - - Accrued liabilities 578,229 - 578,229 16,259 918,228 Matured bond principal and interest 33,645 - 33,645 - - Accrued interest payable 241,054 241,043 482,097 - 136,839 Deposits payable - 94,374 94,374 - - Unearned revenue - - - 160,806 1,254,410 Due to other governments - - - 58,031 - Current portion of compensated absences 1,103,411 259,227 1,362,639 500 - Current portion of capital lease payable 20,944 - 20,944 - - Current portion of temporary notes payable 500,000 - 500,000 - - Current portion of loans payable - 330,105 330,105 - 1,019,667 Current portion of revenue bonds payable - 640,000 640,000 - - Current portion of general obligation bonds payable 2,769,633 1,103,556 318739189 - - Total current liabilities 6,755,928 2,981,465 9,737,393 255,156 3,502,291 Noncurrent liabilities: Accrued liabilities - - - 72,391 - Compensated absences 1,365,237 320,737 1,685,974 41,502 - Temporary notes payable 2,200,000 2,200,000 - - Loans payable - 7,130,497 7,130,497 7,728,442 Revenue bonds payable - 4,350,000 4,350,000 - - General obligation bonds payable 18,433,288 5,154,900 23,588,188 - - Landfill post - closure care liabilities - 1,793,966 1,793,966 - - Total noncurrent liabilities 21,998,525 18,750,100 40,748.625 113,893 7,728,442 Total liabilities $ 28,754,453 $ 21,731,565 $ 50,486,018 $ 369,049 $11,230,733 Net Assets Invested in capital assets, net of related debt $110,183,985 $ 40,967,562 $151,151,547 $6,364,157 $24,193,395 Restricted for: Permanent funds: Expendable 342,876 - 342,876 - - Debt service 1,298,695 1,108,545 2,407,240 - 85,000 Unrestricted 7,422,017 9,820, 801 17,242,818 741,371 518,098 Total net assets $119,247,573 $ 51,896,908 $171,144,481 $7,105,528 $24,796,493 The notes to the basic financial statements are an integral part of this statement. 14 CITY OF SALINA, KANSAS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2005 The notes to the basic financial statements are an Integral part of this statement. 15 Net [Expenses] Revenue and Changes In Net Assets Program Revenues Primary Government Component Units Operating Capital Total Total Total Salina Salina Charges for Grants and Grants and Governmental Business -type Primary Housing Airport Expenses Services Contributions Contributions Activities Activities Government Authority Authority Governmental activities: General government $ 4,904,066 $ 3,925,594 $ 141,234 $ - $ [837,238] $ - S [837,238] $ - - Public safety 14,158,775 3,368,313 718,157 - [10,072,295] - [10,072,295] - - Public works 8,420,158 163,108 1,856,183 13,875,068 7,274,181 - 7,274,181 - - Puhlic health and sanitation 1,101,947 30,979 141,234 - [929,734] - [929.734] - - Culture and recreation 5,070,889 2,275,594 141,234 - [2,654,D61] - (2,654,0811 - - Planning and development 2,714,496 95,465 - - [2,619,0311 - [2,619,031) - - Interest on long -term debt 741,815 - - - [741 815] - 141,8151 - - Total governmental acHvitles 37,111,948 9,859,052 2,798,032 13,875,068 [10,579,794] - [10,579,794] - - Business -type activities: Solid Waste Disposal 2,808,162 2,343,881 - - - 1264,301] [264,301] - - Water and Sewer 11,261,714 12,703,953 - - - 1,442,239 1,442,239 - - Sanitation 1,889,190 1,880,757 - - - [8,433] [8,433] - - Goff Course 892,715 798,966 - - - [93,749) [93,749] - - Total business -type activities 18,851,781 17,727,537 - - - 1,075,756 1,075.756 - - - Total primary government $ 53,763,727 $ 27,588,589 $ 2,798,032 $13,875,068 [10,579,794] 1.075,756 [9,504,038] - - - Component units: Salina Housing Authority S 2,121,282 $ 389,921 $ 1,495,988 $ 227,181 - - - [8,214] - Salina Airport Authority 3,424,783 1,603,833 - 3,188,838 - - - - - 1,365,486 Total component units S 5,546,065 $ 1,993,554 $ 1,495,9B6 S 3,413,797 - - - [8,214] - 1,365,488 Genera[ Revenues: Property taxes levied for General purposes 6,765.502 - 8,765,502 - 1,058,688 Debt service 1.351,421 - 1,351,421 - - Motor vehicle tax General purposes 1,079,262 - 1,079,292 - - Sales tax General purposes 10,555,924 - 10,555,924 - - Selective purposes 2,2B0,387 - 2,280,387 - - Other taxes General purposes 3,557,109 - 3,557,109 - 118,097 Investment revenues 544,247 327,728 871,975 10,813 204,083 Miscellaneous 1,208,580 150,321 1,358,901 - 49,654 Transfers, net 114,019 [114,019] - - _ - Subtotal generai revenues 27,458,451 364,030 27,820,481 10,813 _ 1,430,512 Change in net assets 16.876,657 1,439,789 18,316,443 2,399 _ 2,795,898 Net assets - beginning 101,321,325 49,802,572 151,123,897 7,152,802 22,000,495 Prior period adjustment 1,049,591 654,550 1,704,141 [49,473] Net assets - beginning, restated 102,370,916 _ 50,457,122 1521928,038 7,103,129 _ 22,DDD,495 Net assets - ending S 119,247,573 S 51,896,908 S 171,144,481 $7.105.528 S 24,7 963, The notes to the basic financial statements are an Integral part of this statement. 15 This page intentionally left blank. This page intentionally left blank. ASSETS Cash and investments Receivables (net) Accounts Taxes Interest Notes Inventory Due from other funds Cash with fiscal agent Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Retainage payable Deferred revenue Due to other funds Matured principal and interest Temporary notes payable Total liabilities Fund balance: Reserved for encumbrances Reserved for notes receivable Reserved for debt service Unreserved, undesig nated General fund Special revenue funds Permanent funds Capital project funds Total fund balances Total liabilities and fund balance CITY OF SALI NA, KANSAS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2995 $ 9 4931565 $ 512941378 $ 6151901 $ 209,495 $ 314,410 $ 340 $ 1111240 $ - 902 - - - 2,111, 294 41772,579 175,941 - 20426,606 41772,919 287,181 - 4211156 - 92,421 - 61645,803 - - - - 5211459 236,299 209,495 7,066, 959 521,459 3281720 209,495 $ 9,493,555 $ 51294,378 $ 615,901 $ 209,495 Flood & Tourism Employee Drainage and General Benefits Improvement Convention $ 21734,298 $ 347,669 $ 423,035 $ fi 1 1,369,203 - - 209,433 212001914 4,9411303 186,288 - 89, 106 51406 61578 1 103,892 - - 21996,152 - - - $ 9 4931565 $ 512941378 $ 6151901 $ 209,495 $ 314,410 $ 340 $ 1111240 $ - 902 - - - 2,111, 294 41772,579 175,941 - 20426,606 41772,919 287,181 - 4211156 - 92,421 - 61645,803 - - - - 5211459 236,299 209,495 7,066, 959 521,459 3281720 209,495 $ 9,493,555 $ 51294,378 $ 615,901 $ 209,495 Other Total Special Bicentennial Debt Capital Governmental Governmental Gas Center Service Pro'ects Funds Funds $ 637,373 $ 282,282 $ 1,225, 975 $ - $ 311 77,118 $ 8t8273811 - 13,357 - - 271816 11619,809 457,123 w 114611186 - - 9,246,814 91911 41382 19,663 11466 48,426 184,333 - - - - 51527 51527 - - - - - 103,892 - - - 21996,152 - - 33,645 - - 33,645 $ 11104,407 $ 366,621 $ 21739,869 $ 1 466 $ 31258,881 $ 2310171983 $ 31 ,150 $ 21,721 $ - $ 880t249 $ 60,506 $ 11419,616 31831 - - 53193 - 91926 - - 11407,529 - - 814671343 - - 2,722,996 273,156 23996,152 33,645 - - 33,645 - 500.000 - 500.000 341981 21,721 114411174 411081438 3331662 13,426,682 446,476 -- - 220,182 305,301 11485,536 - - - - 51527 51527 - - 11298,695 - 11298,695 - - - - - 6,645, 803 6221950 278,300 - - 212711515 411401018 - - 3421876 3421876 - - - [4,327,154] - [41327,154) 1,069,426 278,300 11298,695 [41106,972] 2,925,219 9,591,301 $ 1,104,407 $ 3001021 $ 2$7391869 $ 1,466 $ 3P2581881 $ 23, 017, 983 The notes to the basic financial statements are an integral part of this statement. 16 CITY OF SALI NA, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS OF GOVERNMENTAL AC1-IVITIES December 31, 2005 Total Governmental Fund Balances 91591,301 Amounts reported for governmental activities in the statement of net assets are different because Bond issuance costs are shown as current year expenditures in the funds. Bond issuance costs 330,832 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds The cost of capital assets is 1981238,879 Accumulated depreciation is 82,859,828 133,379,053 An internal service fund is used by the City's management to charge the costs of the worker's compensation program. The assets and liabilities of the internal service fund are included with governmental activities. 21020,130 The following liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These liabilities at year end consist of: Compensated absences 21408,824 Temporary notes payable 21200,000 Bonds payable 21,202,921 Capital lease payable 20,944 Accrued interest on the bonds 241,054 [26,073,543) Net Assets of Governmental Activities $ 1191247,573 The notes to the basic financial statements are an integral part of this statement. 17 This page intentionally left blank. CITY OF SALI NA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31, 2005 REVENUES: Taxes Real estate taxes Delinquent taxes Motor vehicle taxes General sales taxes Selective sales taxes Other taxes Intergovernmental Special assessments Licenses and permits Charges for services Investment revenue Reimbursements Miscellaneous Total revenues EXPENDITURES: Current General government Public safety Public works Public health and sanitation Culture and recreation Planning and development Miscellaneous Capital outlay Debt service Principal retirement Interest and other charges Total expenditures Excess [deficiency] of revenue and other sources over [under] expenditures and other [uses] OTHER FINANCING SOURCES [USES] Issuance of bonds Transfers in Transfers [out] Total other financing sources [uses] Net change in fund balance Fund balance - Beginning of year Prior period adjustment Fund balance - Beginning of year Fund balance - End of year Flood & Tourism Employee Drainage and General Benefits Improvement Convention $ 2,382,329 $ 41128,519 $ 82,238 $ 59,455 107,257 7,708 - 289,354 558,575 50,986 - 103555,924 - - - 2,717,427 - - 839,682 8591399 - - - 5,387,774 - - - 176,808 51406 81578 399 385,253 - - - 22,813,723 4,797,757 147,506 840,081 2,485,060 2219332 - - 10,821,702 3,051,745 - - 4,536v631 837,099 18,639 - 8921110 26,746 - - 2,074,639 494,027 - - 1,328,376 2579815 - 559,740 828,996 - 2219295 - - - 100,000 - 22,767,514 4,888,564 3391934 559,740 46,209 [90,807) _ [192,428] 280,341 100,000 - - [390,553] - - [338,046] [290,553] - - 338,048 [?441344] [90,807] [192,428] [57,705] 7,311,303 612,288 521,148 267,200 7,311,303 612,266 521 ,148 267,200 $ 7,066,959 $ 521 ,459 $ 328,720 $ 209,495 2,706,392 13,573,447 115,663 - - - - 5,568,372 - - - - 148,167 1,066,963 Other Total Special Bicentennial Debt Capital Governmental Governmental Gas Center Service Pro'ects Funds Funds $ - $ - $ 1,313,147 $ - $ - $ 7,904,231 - - 38,274 - - 21 23692 - - 186,347 - - 11079,262 - - - - - 106555,924 - - - - 2,280,387 29280,387 - - - - - 3,557,169 1,492,640 - - 156,666 282,468 2,784,507 - - 11142,562 - - 1,142,562 - - - - 13,525 1 3,525 - 8361408 - - 1,006,966 7,225,148 22,606 4,582 47,863 5,663 2161419 486,264 - - - 649,756 - 649,756 - 173 72,875 - 42,388 500,689 1 ,515,246 8350153 21794,948 865,419 3,842,153 38,391,996 2,706,392 13,573,447 115,663 - - - - 5,568,372 - - - - 148,167 1,066,963 11293,833 - - 913,515 41776,614 - - - - 461,226 2,666, 957 - - - - 35 35 1 ,711,994 7,979 - 5,1 25,234 684,657 81586,155 - - 29434,349 - - 2,534,349 - - 591,965 162,956 - 754,921 1,827,997 1,301,812 3,626,314 5,288,196 21207,546 42,267,665 [312,751) 466,649] 231,366] [41482,771) 1,634,613 31815,669] - - - 49216,666 - 41216,660 - 488,646 212,999 575,666 23,148 1 ,399,193 - - - 131,575 565,660 [1,3651174] - 4883046 212,999 40553,425 481,852 4,244,619 [312,751) 21 ,397 [1 8,367] 170,654 1,1 52,761 428,410 1,382,177 256,903 1,317,062 [51477,626] 11772,458 63962,891 - - - 21200,000 - 2,200,000 1,382,177 256,903 1,317,662 _4,277,626] 1 ,772,458 9,162,891 $ 1,069,426 $ 278,300 $ 1 ,298,595 $ [4,1 06,972] $ 2,925,219 $ 9,591,361 The notes to the basic financial statements are an integral part of this statement. 18 This page intentionally left blank. CITY OF SALINA, KANSAS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANCES IN FUND BALANCE WITH THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2005 Total Net Change In Fund Balances - Governmental Funds 4281410 Amounts reported for governmental activities in the statement of activities are different because Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net assets and allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which capital outlays exceeds depreciation in the period. Loss on sale of assets [48,203] Capital outlays 21,530,525 Depreciation expense [3t759,050) 17, 723, 273 Interest on long -term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest increased. [21,453] An internal service fund is used by the city's management to charge the costs of certain activities to the individual funds. The revenues and expenses of certain internal service fund is reported with governmental activities. 445,417 Some expenses reported in the statement of activities, such as compensated absences, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. [41,507] Bond proceeds are an other financing source in the govemmental funds, but it increases long -term liabilities in the statement of net assets and does not affect the statement of activities. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long -term debt and related items. [41210,000] Repayment of capital lease payable is an expenditure in the governmental funds, but it reduces long -term liabilities in the statement of net assets and does not affect the statement of activities. 20,205 Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long -term liabilities in the statement of net assets and does not affect the statement of activities. 2,5321321 Changes In Net Assets of Governmental Activities $ 16,875,657 The notes to the basic financial statements are an integral part of this statement. 19 CITY OF SALINA, KANSAS STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2905 The notes to the basic financial statements are an integral part of this statement. 20 Business -Type Activities: Enterprise Funds Total Internal Solid Waste Water and Enterprise Service ASSETS Disposal Sewer Sanitation Goff Course Funds Funds Current assets: Cash and investments $ 3,024,259 $ 7,876,709 $ 481,487 $ 194,396 $11,486,833 $ 2,362,879 Receivables (net of allowance for uncollectibles) Accounts 295,788 657,399 99,491 - 962,588 - Interest 47,919 128,778 71486 1,612 184,895 35,742 Inventory and prepaid supplies - 486,531 - 331922 520,453 199,435 Restricted cash and investments - 498,933 - - 498,933 - Deferred charges 29,287 358,823 - 941 389,051 - Total current assets 3,396,344 9,916,174 588,464 140,871 13,951,853 2,599,956 Capital assets: Nondepreciable capital assets: Land 683,446 845,564 - 15,999 1,544,110 - Depreciable capital assets: Capital assets 6,101, 741 821491,156 1,095, 304 949,804 99, 539, 005 777,392 Less: accumulated depreciation 21722,904 28,690,074 629,495 463,112 32,496,495 548,595 Total capital assets 4,962,283 54,646,746 474,899 492,692 59,676,629 228,797 Total assets $71368,627 $ 64 562, 929 $1,063,363 $ 633,563 $ 73,628,473 $2,737,853 Liabilities: Current liabilities Accounts payable $ 199,992 $ 173,946 $ 16,390 $ 4,268 $ 294,696 $ 79,479 Retainage payable - 181464 - - 18,464 - Interest payable 29,647 229,218 - 178 2411043 - Meter deposits payable - 94,374 - - 94,374 -- Current- portion of compensated absences payable 26,372 1471924 52,641 32,290 259,227 69,924 Current portion of accrued claims payable - - - - - 335,672 Current portion of loans payable - 339,195 - - 339,195 - Current portion of general obligation bonds payable 256,428 8301748 - 16,380 11103,556 - Current portion of revenue bonds payable - 640,900 - - 6401000 - Total current liabilities 403,539 2,455,779 69,031 53,116 2,981,465 475,166 Noncurrent liabilities: Compensated absences payable 321629 183,925 55,131 39,952 320,737 - Accrued claims payable - - - - - 242,557 Payable from restricted assets Loans payable - 7,130,497 - - 7,130,497 - General obligation bonds payable 21220,120 219181855 - 15,925 5,154,900 - Revenue bonds payable - 4,350,000 - - 413501000 - Landfill post - closure care liabilities 1,793,966 - - - 1,793,966 - Total noncurrent liabilities 4,946,715 14,582,377 65,131 55,877 18,750,100 242,557 Total liabilities $41450T254 $17 038,156 $ 134,162 $ 108,993 $ 21,731,565 $ 717,723 Net Assets Invested in capital assets, net of related debt $11585,735 $ 38,446,541 $ 474,899 $ 460,387 $40,967,562 $ 228,797 Restricted Restricted for bond retirement - 1,108, 545 - - 1,108,545 - Unrestricted 1,332,638 7,969,678 454,302 64,183 20,801 1,791, 333 Total net assets $2,918,373 $ 47, 524, 764 $ 929,201 $ 524,570 $51,896,908 $ 2, 020,130 The notes to the basic financial statements are an integral part of this statement. 20 CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended December 31, 2005 Transfers from [to] other funds Transfers in 44,049 Business -Type Activities: - - 44,049 801000 Enterprise Funds [118,O681 [40,000] - - [158,068] - Total transfers Total Internal - Solid Waste Water and 80,000 Change in net assets Enterprise Service 5,594 Disposal Sewer Sanitation Golf Course Funds Funds Operating revenues 568,546 49,802,572 1,560,025 Restatement 649,284 [24,330] Charges for services $ 2,343,861 $12,703,953 $1,880,757 $ 798,966 $17,727,537 $ 7,820,230 Miscellaneous 22,337 98,345 15 29,624 150,321 58,135 Total operating revenues 2,366,198 12,802,298 1,880,772 828,590 17,877,858 79878,365 Operating expenses General government - - - - - 71500,868 Public works 1,522,663 8,740,077 11790,974 - 121153,714 - Recreation - - - 852,053 852,053 - Depreciation 713,970 13728,694 98,216 39,148 2,580,028 70,063 Total operating expenses 21336,633 10 468,771 1,889,190 891,201 15,585,795 7,570,931 Operating income [loss] 29,565 2,333,527 [8,418] [62,611] 211292,063 307,434 Nonoperating revenues [expenses] Investment revenue 81,869 228,874 14,012 2,973 3271728 57,983 Debt service [261,646] [665,914] - [1,044] [928,604] - Amortization of bond issuance costs [9,883] 127,029] - [470] [137,382] - Total nonoperating revenues [expenses] [189,660] [564,069) 14,012 1,459 [73B,258] 571983 Income [loss] before transfers [160,095] 1;7690458 5,594 [fi1,152] 1,553,805 365,417 Transfers from [to] other funds Transfers in 44,049 - - - 44,049 801000 Transfers [out] [118,O681 [40,000] - - [158,068] - Total transfers 74,019] 400000] - - 114,019] 80,000 Change in net assets [234,114] 1,729,458 5,594 [61,152] 1,439,786 445,417 Net assets, January 1 2,503,203 45,819,636 911,187 568,546 49,802,572 1,560,025 Restatement 649,284 [24,330] 12,420 17,176 654,550 14,688 Net assets, January 1, restated 31152,487 451795,306 9231607 585,722 501457,122 1,574,713 Net assets, December 31 $ 2,918,373 $ 47,524,764 $ 929,201 $ 524,570 $ 51,896,908 $ 2,020,130 The notes to the basic financial statements are an integral part of this statement. 21 Cash flows from operating activities Cash received from customers and users Cash paid to suppliers of goods or services Cash paid to employees Other operating receipts Net cash provided by [used in] operating activities Cash flows from capital and related financing activities Purchase and construction of capital assets Debt issuance costs incurred Principal payments - general obligation bonds Principal payments - revenue bonds Interest paid Principal payments - loans payable Net cash provided by [used in] capital and related financing activities Cash flows from investing activities Interest recelved CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2005 1626,761j 14,597,2241 [104,2691 114,7361 5,342,990 189,124 51,889 146,671 9,238 2,196 209,994 33,665 Cash flows from noncapital financing activities Business -Type Activities: Enterprise Funds Transfers in 44,049 - - - 44,049 80,000 Total Internal Solid Waste Water and [158,068] - Enterprise Servlce Disposal Sewer Sanitation Golf Course Funds Funds $ 2,338,841 $ 12,765,143 $1,890,166 $ 798,966 $17,793,116 $ 7,759,318 [1,193,485] [6,012,562] [1,084,880] [473,511] [8,7641438] [7,000,493] [417,8121 [2,807,097] (694,196] [381,517] (4,300,6221 [510,301] 22,337 98,345 15 29,624 150,321 58,135 749,881 4,043,829 111,105 [26,43§j 4,878,377 306,659 $ 8,284,733 $ 481,487 __396 $11.894,866 $2_362,879 [20,500] [2,125,022] [104,269] - [2,249,791] [189,124] - 151, 812] - - [51, 812] - [332,442] [795,747] - [13,650] [1,141,839] - - [625,000] - - [825,000] - [273,819] [682,981] - [1,0861 [957,8861 - - _ 1316,662 - - [316,662] - 1626,761j 14,597,2241 [104,2691 114,7361 5,342,990 189,124 51,889 146,671 9,238 2,196 209,994 33,665 Cash flows from noncapital financing activities Transfers in 44,049 - - - 44,049 80,000 Transfers [out] 118,068 40,000 - - [158,068] - Net cash provided by [used In] noncapital financing activities 4,019) [40,000] - - [114,019] 80,000 Net Increase [decrease] in cash and cash equivalents 100,990 [446,7241 16,074 [38,9781 1368,638] 231,200 Cash and cash equivalents, January 1 2,923,260 8,731,457 465,413 143,374 12 263,504, 2,131,679 Cash and cash equivalents, December 31 $ 3,024,250 $ 8,2841733 $ 481,487 $ 104,396 $11,8941866 $ 2,362,879 Cash and investments $3,024,250 $ 7,876,700 $ 481,487 $ 104,396 $11,486,833 $2,362,879 Restricted cash and investments - 408,033 - - 408,033 - Total cash and cash equivalents $3,024,250 $ 8,284,733 $ 481,487 __396 $11.894,866 $2_362,879 The notes to the basic financial statements are an integral part of this statement. 22 CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2005 Reconciliation of operating [loss] income to net cash provided by [used inj operating activities Operating income [loss] Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense [Increase] decrease in accounts receivable [Increase] decrease in inventory Increase [decrease] in accounts payable Increase [decrease] in retainage payable Increase [decrease] in accrued compensated absences Increase [decrease] in claims payable Increase [decrease] in meter deposits payable Increase [decrease] in accrued landfill closure and postclosure care costs Net cash provided by [used in] operating activities Business -Type Activities: Enterprise Funds Total Internal Solid Waste Water and Enterprise Service Disposal Sewer Sanitation Golf Course Funds Funds $ 29,565 $2,333,527 $ [8,418] $ [62,511] $2,292,063 $307,434 713,970 1,728,694 98,216 391148 215801028 703063 [5,020] 68,096 9,409 - 721485 - - [18,724] - [9,757] [28,481] [40,765] [23,332] [24,160] 15,445 [373] [32,420] 23,208 - 13,563 - - 13,563 - 1,992 [50,261] [39547] 7,155 [44,661] 7,631 - - - - - [60,912] - [6,906] - - [6,906] - 32,706 - - - 32,706 - $ 749,881 $4,0431829 $111,105 $ 126 438 $4,878,377 $306,659 The notes to the basic financial statements are an integral part of this statement. 23 CITY OF SALINA, KANSAS STATEMENT OF ASSETS AND LIABILITIES AGENCY FUNDS December 31, 2005 ASSETS Dash and investments Interest receivable Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Total liabilities The notes to the basic financial statements are an integral part of this statement. 24 $ 4o9tO48 4,151 $ 413,199 $ 413,199 $ 413,199 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor and a five- member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the government wide statements to emphasize that it is legally separated from the govemment. Discretelv Presented Component Units City of Salina Airport Authority - The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling A. F. B that was closed by the United States Department of Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five- member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. The Commission must also approve the issuance of general obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end. Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 2005. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices. Salina Airport Authority Housing Authority of 3237 Arnold Ave. the City of Salina Salina, KS 469 S. 5th Salina, KS Joint Ventures The City of Salina also participates with Saline County in two joint ventures. The Salina - Saline County Board of Health was organized by the City and County to promote public health. The City and County organized the Salina County -City Building Authority to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for the joint ventures. Separate financial statements are available from the governing boards of each joint venture. Total net assets, December 31, 2005 Total change in net assets, December 31, 2005 Total revenues, year ended December 31, 2005 Total revenues from City of Salina 25 Board of Building Health Authority (Unaudited) Audited) $ 324,496 $ 21912,015 102,478 1491281 31257,540 852,049 796,362 312,565 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Reporting Entity (Continued) Joint Ventures (Continued) Complete financial statements for each of the joint ventures may be obtained at the entity's administrative offices. Salina - Saline County Board of Health Salina County -City 125 Vilest Elm Street Building Authority Salina, KS 300 Vilest Ash Street Salina, KS B. Government -wide and fund financial statements The statement of net assets and the statement' of activities report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges between the City's governmental and business -type activities. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items, which are not classified as program revenues, are presented as general revenues of the city. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column in the fund financial statements. C. Measurement Focus, Basis of Accounting and Basis of Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. 26 CITY OF SAL I NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met Expenditure - driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. The City applies all applicable Governmental Accounting Standards Board (GASB) pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinions, and ARBs. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets, All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for risk management, worker's compensation, health insurance, central garage and information services that are provided to other departments or agencies of the government, or to other governments, on a cost- reimbursement basis. Agency funds are custodial in nature and do not measure results of operations or have a measurement focus. Agency funds do however use the accrual basis of accounting. Agency funds are used to account for assets held as an agent for individuals, other governmental units, private organizations and/or other funds. The City reports the following major govemmental funds: The general fund is used to account for resources traditionally associated with government, which are not required legally, or by sound financial management to be accounted for in another fund. Employee benefits fund - To account for the costs of various benefits provided to governmental employees. Flood and drainage improvement fund - To account for property tax revenues to be used for capital improvements to the flood control and stormwater drainage systems. Tourism and convention fund - To account for transient guest tax revenues, which are specifically restricted to promotion and tourism activities. Special gas fund - To account for the City's share of motor fuel tax revenues, which are legally restricted to the maintenance, or improvement of streets within the City. Bicentennial Center fund - To account for the activities of the City's convention center. The debt service fund is used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the City is obligated in some manner for the payment. 27 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The capital projects fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. The City reports the following major proprietary funds: Sanitation fund - To account for the operations of the City's refuse collection service. Solid waste disposal fund - To account for the activities of the City's landfill. Golf course fund - To account for the operations of the municipal golf course. Water and sewer fund - To account for the activities of the City's water and sewer operations. D. Assets, Liabilities and Equity 1. Pooled cash and investments The City maintains a cash and investment pool that is available for use by all funds managed by the city. Each fund type's portion of this pool is displayed in the financial statements as "Cash and Investments." The city's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Investments in the Kansas Municipal Pool are carried at fair value. Cash balances from all funds are invested to the extent available in certificates of deposit and other authorized investments. Investments with maturity dates greater than three months are stated separately. Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund based on the percentage of funds invested to total investments. All investments are carried at fair value. 2. Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the year are referred to as either "interfund receivableslpayables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non- current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Accounts Receivable. The City records revenues when services are provided. All receivables are shown net of an allowance for doubtful accounts. Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed, apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in conformity with governing state statutes. Consequently, current year property taxes receivable are not available as a resource that can be used to finance the current year operations of the City and, therefore, are not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue and are identical to the adopted budget for 2005. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole. 28 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Equity (Continued) 2. Receivables and Pavables (Continued) The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the second 50% then being due on or before May 10 of the following year. This procedure eliminates the need to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City Treasurer draws down all available funds from the County Treasurer's office in two -month intervals. Taxes remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state statutes. 3. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund -type inventories are recorded as expenditures when consumed. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 4. Restricted Assets Certain proceeds of the City's business -type fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The uWater and Sewer Principal and Interest' account is used to segregate resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is used to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal and interest Account ". 5. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Capital assets used in governmental fund types of the City are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated fair value at the date of donation. Historically, governmental infrastructure assets have not been capitalized and reported in the financial statements. In conformity with GASB 34, infrastructure completed in the current year has been capitalized. Retroactive reporting of the City's major infrastructure assets extends to all assets. 29 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued) 5. Capital Assets (Continued) The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type is included in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment of the primary government, are depreciated using the straight -line method over the following estimated useful lives: Assets Years Buildings 50 Other equipment 5-15 Vehicles 6-10 Infrastructure 30-50 6. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave that can be accumulated. Employees with more than five years of service with the City are paid for one -third of their accumulated sick leave at their current wage scale upon termination of employment in good standing. In 2001, a limited buy back policy was instituted. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the government fund financial statements that will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the business -type funds and government wide financial statements are recorded as an expense and liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. The General Fund, Bicentennial Center Fund, Central Garage Fund, Information Systems Fund, Sanitation Fund, Solid Waste Fund, Golf Course Fund, and `Mater and Sewer Fund have been used in prior years to liquidate the liability for compensated absences. 7. Temporary Notes Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits the temporary financing of such improvements by the issuance of temporary notes. Temporary notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes outstanding are retired from the proceeds of the sale of general obligation bonds. Kc CITY OF SALI NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Equity (Continued) 8. Lona -term Oblications In the government wide financial statements, and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, govemmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Fund Eouity In the fund financial statements, govemmental funds report reservations of fund balance amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of business -type net assets are -limited to outside third -party restrictions. Designations of fund balance represent tentative management plans that are subject to change. 10. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 11. Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through extemal restrictions imposed by creditors, grantors or laws or regulations of other governments. Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Kansas statutes require that an annual operating budget be legally adopted for the general fund, special revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds. 31 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) A. Budgetary Information (Continued) The statutes provide for the following sequence and timetable in the adoption of the legal annual operating budget 1. Preparation of the budget for the succeeding year on or before August 1. 2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5. 3. Public hearing on or before August 15, but at least ten days after publication of notice of hearing. 4. Adoption of the final budget on or before August 25. The statutes allow the governing body to increase the originally adopted budget for previously unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the =budget must be published in the local newspaper. At least ten days after publication the hearing may be held and the governing body may amend the budget at that time. The budget was amended, from $82,000 to $90,014, for the Business Improvement City Fund, from $850,000 to $905,001, for the Tourism and Convention Fund, and from $140,000 to $155,385, for the Special Alcohol Fund. The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by the encumbrance method of accounting. Revenues are recognized when cash is received. Expenditures include disbursements, accounts payable, and encumbrances. Encumbrances are commitments by the municipality for future payments and are supported by a document evidencing the commitment, such as a purchase order or contract All unencumbered appropriations (legal budget expenditure authority) lapse at year end. A legal operating budget is not required for capital projects funds, trust funds, and the following special revenue funds: Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage Commission, CDBG -ED, HOME IV, Special Law Enforcement, Fair Housing Partnership, Police Grants, Dare Donations, and War Memorial Maintenance. A legal operating budget is not required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. A legal operating budget is also not required for the Internal Service funds. Actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. 32 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. Statutory Violations The following funds had deficit fund equity at December 31, 2005: Capital Projects $[4,106,972] and Home V $[318,062]. This Capital Project Fund deficit will be recovered from the issuance of bonds and the Home V deficit will be recovered from grant reimbursements. Also, actual exceeded budgeted expenditures in the Special Gas Fund, which violates K.S.A. 79 -2935. C. Compliance With Bond Reserve Requirements Water & Sewer Bond Reserve Requirements The bond reserve requirement is to establish and maintain a reserve account. The Water & Sewer fund met this requirement for 2005. Reserve requirement $ 679,000 Actual reserves Bond -reserve account $ 700,512 Total actual reserves $ 700,512 The City was in compliance with the reserve account balance requirements at December 31, 2005. D. Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the assessed value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At December 31, 2005, the statutory limit for the City was $115,184,791, providing a debt margin of $86,409,999. Note 3. RESTATEMENT OF EQUITY Following the close of the previous fiscal year, it was discovered that several capital assets were recorded incorrectly. Also, the classification of temporary notes payable was incorrect in the prior year. Accordingly, the beginning net assets balances were restated, the effects of which are as follows: 33 Capital Water and Solid Golf Governmental Projects Sewer Waste Sanitation Course Activities Fund Fund Fund Fund Fund Net Assets, December 31, 2094 $ 191,321,325 $ [6,477,626] $ 45,819,636 $ 2,593,293 $ 911,187 $ 568,546 Temporary Notes Payable Adjustment - 2,290,409 - - - - Capital Asset Adjustment 1,049,591 - [24,339] 649,284 12,42 17,176 Net Assets, December 31, 2904, Restated $, 192,379,91fi $ N [4,2T7_,6261 $ 45,795v3O6 $ 3,15,2,487 $ 923,607 $ 585,722 33 CiTY OF SALI NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NG "rES ON ALL FUNDS A. Deposits and investments The City's cash is considered to be active funds by management and is invested according to KSA 9 -1401. The statute requires that banks eligible to hold active funds have a main or branch bank in the county in which the City is located and the banks provide an acceptable rate for active funds. Various city investments are considered to be idle funds by management and are invested according to KSA 12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the funds: U.S. Treasury bills or notes or the Municipal investment Pool (KMIP). Maturities of the above investments may not exceed two years by statute. Some of the City's investments are of bond proceeds invested pursuant to KSA 10 -131. This statute allows additional investment authority beyond that of KSA 12 -1675. Investments of bond proceeds may follow KSA 12 -1675 or include other investments such as the KMiP, direct obligations of the U.S. government or any agency thereof, investment agreements with a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's investors service or Standard and Poor's corporation, and various other investments as specified in KSA 10 -131. At December 31, 2005, the City has the following investments: Investment Type U.S. Treasury Bills Kansas Municipal investment Pool Total fair value Fair Value Rating $ 9991397 NA 6 2 751, 1 92 S &P AAAf1S1 + 7,750,589 At December 31, 2005, the City had invested $6,751,192 in the State's municipal investment pool. The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is comprised of the State Treasurer and four additional members appointed by the State Govemor. The board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with maturities up to four years. No more than 10 percent of those funds may be invested in mortgage - backed securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary government securities dealers. The City's investment policy provides direction on concentration risk. The City policy states that funds shall be diversified to reduce the extent of losses due to havinlg an unbalanced portfolio in terms of maturities, instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices insuring that the next disbursement date and payroll date are covered through maturing investments, marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts. Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis, and that all securities are adequately collateralized. Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to insure the ability to meet normal anticipated cash flow needs. 34 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A. Deposits and Investments (Continued) When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however, such transactions shall not be a part of the normal course of business. The City recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's deposit policy for custodial credit risk require that the depository banks will maintain 100% security in the form of FDIC coverage and pledged collateral according to KSA 0 -1402. At December 31, 2005, the Housing Authority of the City of Salina, Kansas has the following investments: Investment Tyke Fair Value Rating Kansas Municipal Investment Pool $ 85,276 S &P AAAf /S1 + Total fair value $ 85,278 35 CITY OF SALI NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FINDS (Continued) B. Receivables $ 2671568 Less: allowance for uncollectibles 1718 265,850 Taxes 191581150 Total Salina Airport Authority 11424,000 Receivables as of year end, including the applicable allowances for doubtful accounts, are as follows: Accounts 18,281 Interest Flood & Tourism 19,95 Employee Drainage and Special Bicentennial Debt General Benefits Impr. Convention Gas Center Service Subtotal Primary Govermrent Receivables: Accounts $1,8529544 $ - $ - $ 209,433 $ - $ 13,357 $ - $ 2,075,334 Taxes 2,200,914 4,941,303 185,288 - 457,123 - 11461,185 9,246, 814 Interest 89,106 5,406 6,578 1 91911 4,382 19,053 134,447 Gross receivables 411429564 4,946,709 192,866 209,434 457,034 17,739 1,480,249 11,456,595 Less: allowance for uncollectibles 483,341 - - - - - - 483,341 Total $3,659,223 $ 41946,709 $1922,866 $ 209,434 $457,034 $ 17,739 $1,480,249 $10,973,254 Solid Golf Water Capital Other Waste Course and Internal Prciects Governnnentall Sanitation Disposal Division Sewer Service Fiduciary Total Primary Government Receivables: Accounts $ - $ 301400 $117,784 $ 205,788 $ - $ 778,163 $ - $ - $ 3,207,469 Taxes - - - - - - - - 9,246,814 Interest 1,466 489420 7,486 471019 11612 128,778 36,742 41151 410,121 Notes - 5,527 - - - - - - 5,527 Gross receivables 11466 84,347 125,270 2521807 1,512 9061941 36,742 4,151 12, 869, 931 Less: allowance for uncolleciibles - _ [2,584 18,293 - - [120r854] - - 625 072 Total $ 1,466 $ 81,763 $1 06,977 $ 252,807 $ 1,612 $ 786,087 $ 36,742 $ 4,151 $12,244,859 Component Units Salina Airport Authority Acacaunts $ 2671568 Less: allowance for uncollectibles 1718 265,850 Taxes 191581150 Total Salina Airport Authority 11424,000 Salina Housing Authority Accounts 18,281 Interest 1,6&4 Total Salina Housing Authority 19,95 Total $ 1,4Q, 965 C. Interrund Receivables and Payables The composition of interrund balances as of December 31, 2005, is as follows: Fund Twes Due From Due To General Fund $ 2,996,152 $ - Capitai Projects Fund - 217223995 Other Govemment Funds - 273,156 $ 2,996,152 $ 2t996,152 The City uses interfund receivables and payables as needed when pooled cash is negative within a fund until investments mature or grant proceeds are received. All payables are cleared in less than one year. 36 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2445 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets Capital asset activity for the year ended December 31, 2445, was as follows: 37 Balance Adj. Bai. Balance 12131!2004 Adjustments 12131/2004 Additions Retirements 12131/2005 City governmental activities: Governmental activities: Capital assets, not being depreciated Construction in progress $ 9,966,774 $ - $ 9,966,774 $ 21,632,709 $ [11,647,166] 191952,317 Land 13,823,444 1,070,561 14,894,005 7,479,491 [48,203] 22,325,293 Capital assets, being depreciated Infrastructure 121, 397, 505 [222, 553] 121,174, 952 2,700,000 - 123, 874, 952 Buildings and improvements 201027,364 [7, 175] 20,020,189 739,848 - 20,750,037 Vehicles 51804,725 [130,276] 5,674,449 441,726 [55,738] 6,D6O,437 Equipment, furniture and fractures 3,8741739 [12.2_,588] 3,752,151 373,044 [81,960] 4,043,235 Total capital assets 174,894,551 587,969 175,482,520 33,366,818 (11,833,0671 197,016,271 Less accumulated depreciation for. fnfrastructure 45,005,994 [214,006] 44,791,988 2,548,790 - 47,340,778 Buildings and improvements 8,676,404 [7,750] 8,668,654 495,871 - 9,164, 525 Vehicles 4,009,600 [164,994] 3,844,606 4921523 [55,738] 4,281,391 Equipment, fumiture and fixtures 2,486,631 [74,872) 2,411,759 291,928 [81,960] 2,621,727 Total accumulated depreciation 60,178,629 [461 ,6622] 59,717,007 3,829,112 [137,698] 6314O8,421 Governmental activities capital assets, net $ 114,715,922 $ 1,049,591 $ 115,765,513 $ 29,537,7O6 $ [11,695,369] $ 133,607,850 Business -type activities: Capital assets, not being depreciated Construction in progress $ 61,387 $ [61,387] $ - $ - $ - - Land 913,774 630,336 1,544,110 - - 1,544,110 Capital assets, being depreciated Infrastructure 60, 309, 999 [40,591] 60,269, 408 1,855,420 - fi2,124, 828 Buildings and improvements 221524,563 12,422 22,536,985 - - 22,536,985 Vehicles 2,O90,761 [38500] 2,052,261 358,921 - 2,411,182 Equipment, furniture and fixtures 3,357,178 730382 3,430,560 35,450 - 3,466,O1O Total capital assets 89,257,662 575,662 89,833,324 2,249,791 - 921 083,'115 Less accumulated depredation for. Infrastructure 19,196,395 [12,078] 19,184,318 11704,225 - 20,888,543 Buildings and improvements 7,572,422 - 7,572,422 442,489 - 8,0141911 Vehicles 1,456, 873 [660 808] 1,390,065 201,839 - 1,591,9D4 Equipment, furniture and fixtures 1,679,662 - 1,679,662 231,475 - 1,911,137 Total accumulated depreciation 29,905,353 [78,Wj 29,826,467 2,580,028 - 32,4D6,495 Business -type activities capital assets, net $ 59, 352, 309 $ fi54,548 $ 60,0D6, 857 $ 1330, 237 $ - $ 59,676,62O 37 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Capital Assets (Continued) The City's depreciation expense was charged to governmental functions as follows: Governmental Activities: Balance General government $ 82,501 Public safety 432,368 Public works 21875,895 Public health 34,984 Culture and recreation 295,826 Planning and development 101,538 Total depreciation $ 318 1 12 Business -type Activities: Solid Waste Disposal $ 713,970 Water and Sewer 11128,694 Sanitation 98,215 Golf Course Division 390148 Total depreciation $ 21580,028 E. Long -Term Debt Following is a summary of changes in long -term debt for fiscal year 2005: Adjusted 38 Balance Balance Balance Amounts January 1, January 1, December 31, Due Within 2005 Adjustments 2005 Additions Deletions 2005 One Year Governmental activities: General obligation bonds $ 19,527,270 $ - $ 19,527,270 $ 4,210,040 $ 2,534,349 $ 21,202,921 $ 2,769,633 Capital lease 41,150 - 41,150 - 20,205 20,944 20,944 Accrued compensation 2,419,509 - 2,419,509 11023,900 9741761 2,468,648 17103,411 Temporary notes 6,875,004 - 6,875,000 500,000 4,675,O00 2,700,000 500,000 Total $ 28,862,929 $ - $ 28,862,929 $ 5,733,900 $ 8,204,316 $ 260392,513 $ 4,393,988 Business-type activities: General obligation bonds $ 7,400,295 $ - $ 7,400,295 $ - $ 1,141,839 $ 5,258,456 $ 1,103,556 Revenue bonds 5,615,000 - 5,615,000 - 625,004 4,990,000 640,000 Loans payable 7,777,264 - 717779264 - 316,662 7,460,602 330,105 Accrued compensation 624,625 - 624,625 271,151 315,812 579,964 259,227 Total $ 21,417,184 $ - $ 21,417,184 $ 271,151 $ 2,399,313 $ 19,289,022 $ 2,332,888 Component Units: General obligation bonds $ 5,435,000 $ - $ 5,435,000 $ 3,635,000 $ 850,000 $ 8,220,040 $ 850,000 Revenue bonds 170,000 - 170,040 - 80,000 90,000 90,000 Loans payable 1651593 - 165,593 - 54,103 111,490 55,184 Temporary notes 3,255,000 - 3,255,000 - 3,255,004 - - Special assessment debt 475,917 - 475,917 - 149,298 3261619 24,483 Total component units $ 9,501,510 $ - $ 9,501,51,0 $ 3,635,000 $ 4,388,401 $ 8,748,109 $ 1,019,667 38 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2605 Nate 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Lang -Term Debt (Continued) The fallowing is a detailed listing of the city's long -term debt including general obligation bonds, revenue bands, temporary notes and loans payable: Primary Government General Obligation Bonds Water /sewer refunding 1998, due 10/1/2608 Internal Improvements 1999, due 14/112614 Internal Improvements 2060, due 16/1/2615 Internal Improvements 2001, due 1611/2016 Water/sewer refunding 2002A, due 16/1/2413 Internal Improvements 2002B, due 14/1/2417 Internal Improvements 2003A, due 10/1/2018 Refunding 2004A, due 811/15 Internal Improvements 2064B, due 16/1/19 Internal Improvements 2005A, due 10/1/20 Total general obligation bonds Revenue Bonds Revenue Refunding 2002A, due 9/1/2012 Total revenue bonds Loans Payable Kansas Public Water Supply, due 2/1/2020 Kansas Public Water Supply, due 2/1/2023 Total loans payable Temporary Notes Series 2663 -2, due 7/1/2007 Series 2064 -1, due 7/1/2067 Series 2665 -1, due 8/1/2006 Total temporary notes Capital Lease, due 6/1/2606 39 Original Interest Bonds Issue Rates Outstanding $ 6,010, 606 3.80% to 4.40% $ 11801,377 51465,404 4.30% to 5.50% 11380,000 31885,060 4.625% to 6.50% 1,320, 606 51350,000 4.00% to 4.90% 31910,606 21445,464 3.00% to 4.50% 11566,660 11980,000 2.70% to 4.50% 11480,006 41350,006 2.13% to 3.85% 31700,000 51585,600 2.10% to 4.00% 41496,000 41053,006 3.00% to 4.60% 31676,000 41210,000 2.95% to 4.25% 41210,000 $ 27,461,377 61790,000 2.20% to 4.25% $ 41990,000 $ 4,990,060 31666,600 4.29% $ 21891,856 51000,000 4.13% 41568,746 $ 7,4601602 1,206, 000 2.00% $ 11200,000 1,000,066 2.30% 110001000 500,000 2.60% 500,000 $ 21766,660 60,066 3.65 $ 26,944 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long -Term Debt (Continued) Component Unit Salina Airport Authority General Obligation Bonds General Obligation 1998, due 2008 General Obligation 1999B, due 2010 General Obligation 2001A, due 2012 General Obligation 2002A, due 2012 General Obligation 2005A, due 2020 Total general obligation bonds Revenue Bonds Leasehold revenue 1991, due 2006 'Loans Payable Kansas Dept of Commerce & Housing, due 2007 Special assessment debt Total Original Issue Interest Bonds Rates Outstanding $ 41440,000 4.05% to 5.50% $ 11325,000 555,000 3.90% to 5.20% 280,000 1,385,000 4.45% to 5.60% 11050,000 21635,000 2.45% to 3.70% 11930,000 3,635,000 4.75% to 5.25% 31635,000 3,8731187 $ 1,053,773 8,220, 000 850,000 5.00% to 7.25% 90,000 468,542 2.00% 111,490 565,235 3.19% 326,619 $ 81748,109 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies: 40 General Obligation - Primary Govemment Bonds Interest Year Outstanding Due Total 2006 $ 3,8731187 $ 1,053,773 $ 41 926, 960 2007 31713,190 879,354 41592,544 2008 31375,000 740v384 4,115,384 2009 21725,000 610,469 3,335,469 2010 21385,000 516,077 21901,077 2011 -2015 91155,000 11402,080 10,557,080 2016 -2020 21235,000 199,639 21434,639 Total $ 271461,377 $ 51401,776 $ 32,863,153 General Obligation - Component Units Bonds Interest Year Outstanding Due Total 2006 $ 850,000 $ 386,931 $ 1,235, 931 2007 885,000 339,533 11224,533 2008 905,000 304,716 11209,716 2049 710,000 267,526 977,626 2010 750,000 236,158 986,158 2011 -2020 4,120, 000 19 008, 045 5,128, 045 Total $ 8t220,000 $ 2,543,009 $ 10, 7+53,009 40 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2995 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long -Term Debt (Continued) Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Annual debt service requirements to maturity for revenue bonds to be paid with service revenues: Revenue Bonds - Component Units Bonds Interest Year Outstanding Due Total 2006 $ 90,000 $ 61525 $ 96/525 T� CTT�C=15 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds: Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 2006 $ 500,000 $ 34,789 $ 534,789 2007 21200,000 1161278 21316278 Total $ 21700,099 $ 151,067 $ 2,851,067 41 Revenue Bonds - Primary Govemment Bonds Interest Year Outstanding Due Total 2006 $ 640,000 $ 178j060 $ 818,060 2007 640,000 1 629060 802,050 2008 680,000 143,500 823,500 2009 7101000 116,300 826,300 2010 7408000 91,450 831,450 2011 -2013 19580,000 98,495 11678,495 Total $ 41990,090 $ 789,865 $ 51779,865 Annual debt service requirements to maturity for revenue bonds to be paid with service revenues: Revenue Bonds - Component Units Bonds Interest Year Outstanding Due Total 2006 $ 90,000 $ 61525 $ 96/525 T� CTT�C=15 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds: Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 2006 $ 500,000 $ 34,789 $ 534,789 2007 21200,000 1161278 21316278 Total $ 21700,099 $ 151,067 $ 2,851,067 41 CITY OF SALI NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long -Term Debt (Continued) The City has engaged in loans in which they have yet to receive all of the proceeds. The following displays annual debt service requirements to maturity for loans payable to be paid from service revenues, for the full proceeds amount: Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: Special Assessment Debt - Corn Loans - Primary Government Assessment Interest Bonds Year Interest Due Total Year $ 24,483 $ Outstanding 36,863 Due 25,411 Total 2006 $ 330,105 $ 283,725 $ 613,830 2007 36,862 344,120 28,412 270,878 36,862 6141998 2008 26,609 358,731 Total 257,484 78,868 $ 616,215 2009 373,962 243,521 617,483 2010 389,840 228,966 618,806 2011-2015 2,211, 992 903,928 3,115, 920 2016 -2020 21588,071 435,272 31023,343 2021 -2023 863,781 491986 913,767 Total $ 71460,602 $ 21673,760 $ 10,134,362 Loans - Component Unit Bonds Interest Year Outstanding Due Total 2006 $ 55,184 $ 11955 $ 57,139 2007 56,306 846 57,152 Total $ 111,490 $ 21801 $ 1141291 Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: 42 Special Assessment Debt - Corn neat Unit Assessment Interest Year Outstanding Due Total 2006 $ 24,483 $ 12,380 $ 36,863 2007 25,411 11,452 36,863 2008 26,374 10,489 36,863 2009 27,374 91488 36,862 2010 28,412 8,450 36,862 2011 -2016 194,565 26,609 221,174 Total $ 326,619 $ 78,868 $ 405,487 42 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) E. Long -Term Debt (Continued) Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special assessments are not recorded as revenue when levied against the respective property owners as such amounts are not available to finance current year operations. The special assessment debt is a contingent obligation of the City to the extent of property owner defaults, which have historically been immaterial. Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments required by the private enterprises are equal to the mortgage payments schedule related to the original debt. At December 31, 2005, total outstanding conduit debt was $75,520,788. Subsequent event. On April 1, 2006, the City issued General Obligation Series 2006 -A Bonds in the amount of $2,200,000. The interest rate range on the 2005 -A bonds is 4.35% to 5.50°/x. Also, on April 1, 2006, the City issued General Obligation Temporary Notes, Series 2006 -1 in the amount of $1,800,000. The interest rate on these bonds is 3.592 %. F. Capital Leases The City has entered into a lease agreement as lessee for financing the acquisition of equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. Governmental Activities Assets Other equipment $ 60,000 Minimum future lease payments under capital leases as of December 31, 2005 are: Governmental Activities 2006 $ 21,708 Total minimum lease payments 21,708 Less amount representing interest [7641 Present value of future minimum lease payments $ 201944 43 CITY OF SALI NA, KANSAS NO -FES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) G. Reconciliation of Transfers A reconciliation of interfund transfers follows: Major Funds: General fund Tourism and convention fund Bicentennial center fund Debt service Capital project fund Other governmental funds Water and sever fund Solid waste disposal fund Intemal service funds Total Transfers Transfer In Transfer Out $ 1009000 $ 390,553 -- 338,046 488,046 - 212,999 - 575,000 1 31,575 239148 505,000 - 40,000 44,049 118,068 80,000 - $ 1 ,523,242 $ 1 1523,242 The City uses interfund transfers to share administrative costs between funds. Note 5. OTHER INFORMATION A. Defined Benefit Pension Plan Plan description. "the City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police and Firemen's Retirement System (KP &F). Both are cost - sharing multiple - employer defined benefit pension plans as provided by Kansas statutes (KSA 74 -4901 et seq). KPERS and KP &F provide retirement benefits, life insurance, disability income benefits and death benefits. Kansas law established and amends benefit provisions. KPERS and KP &F issue a publicly available financial report that includes financial statements and required supplementary information. Those reports may be obtained by writing to 611 South Kansas, Suite 100; Topeka, Kansas 66603 or by calling 1- 888 -275 -5737. Funding Policy. K. S.A. 744919 establishes the KPERS member - employee contribution rate at 4% of covered salary. K.S.A. 744975 establishes the KP &F member - employee contribution rate at 7% of covered salary. The employer collects and remits member - employee contributions according to the provisions of section 414 (h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS and KP &F are funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS employer rate was 4.01% from January 1 to June 30, 2005 and 4.21% from July 1 to December 31, 2005. The City employer contributions to KPERS for the years ending December 31, 2005, 2004, and 2003 were $5001709, $375,084 and $334,377, respectively, equal to the required contributions for each year. The KP &F employer rate established for fiscal years beginning in 2005 is 11.69 %. Employers participating in KP &F also make contributions to amortize the liability for past service costs, if any, which are determined separately for each participating employer. The City's contributions to KP &F for the years ended December 31, 2005, 2004, and 2003 were $1,234,727, $962,807 and $781,320, respectively, equal to the required contributions for each year. B. Deferred Compensation Plan The City offers its employees a deferred compensation plan ( "Plan ") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. "the deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. 44 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 5. OTHER INFORMATION (Continued) C. Flexible Benefit Plan (I.R.C. Section 125) The City Commission has adopted by resolution a salary reduction flexible benefit plan ( "Plan ") under Section 125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his of her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters and other events for which the city carries commercial insurance. No significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not exceeded insurance coverage for each of the past three years. The City has established a limited risk management program for workers' compensation. The program covers all City employees. Premiums are paid into the Workers' Compensation Reserve Fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $10,934 is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 2005 2004 Unpaid claims, January 1 $ 337,209 $ 2471459 Incurred claims (including I BNRs) 256,991 281 ,750 Claim payments [340,709 [192,000) Unpaid claims, December 31 $ 253,491 $ 337,269 The City established a limited risk management program for employee health and dental insurance in 1997. The program covers eligible City employees. Premiums are paid into the health insurance fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors,. The liability for claims and judgments in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. Therefore, all of the liability is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 2005 2004 Unpaid claims, January 1 $ 301 9932 $ 374,346 Incurred claims (including I BN Rs) 3, 316, 668 21774,366 Claim payments [31293,862] [2,846,7801 Unpaid claims, December 31 $ 324,738 $ 301 ,932 M11 CITY OF SALI NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 5. OTHER INFORMATION (Continued) E. Capital Projects Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the project authorization including allowable interest revenue to total project expenditures from project inception to December 31, 2005. Pr_ oiect Authorization Expenditures Cedar Ridge Addition and Drive $ 1,195, 878 $ 11003,288 South Ohio Water Line Extension 500,000 2771552 2004 Subdivisions 462,224 970,352 Si Center HVAC 5001000 3161386 North 9th Bridge 375,000 393,700 Lakewood Bridge 150,000 244,098 Bill Burke Soccer 3001000 2731160 RiverRun Subdivision 21358,962 11599,468 North Broadway Corridor 11800,000 279j908 (Nest Grand 290,076 561865 Fire Station #2 Renovation 112001000 141,024 N Ohio Grade Separation 51200,000 71848,491 Marymount Extension 2821761 337,370 South Ohio Corridor 21830,000 216,076 Twin Oaks Sewer 55,010 53,383 Pioneer Presidents Place 407,477 52,830 2005 Utility Improvements 60,095 51003 Pacific Avenue 3001000 90,268 F. Contingent Liabilities The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass - through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31, 2005. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. G. Municipal Solid Waste Landfill State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date. The $1,793,956 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 29.6% of the estimated capacity of the landfill. CITY OF SAL I NA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2005 Note 5. OTHER INFORMATION (Continued) G. Municipal Solid Waste Landfill (Continued) The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of $4,257,968 as the remaining estimated capacity is filled over the remaining life expectancy of 81 years. The liability increased $32,706 during the current year. There were not any reductions of the liability during the current year. These amounts are based on what it would cost to perform all closure and postclosure care in 2005. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post- closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S. Environmental Protection Agency (at 40 CFR 258.74(f)} and the Kansas Department of Health and Environment to provide these assurances. Any future closure or post - closure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. H. Environmental Matters The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the City assumed primary responsibility for the further investigation and remediation of the groundwater contamination. Field testing work has been completed. The necessary remediation work will be conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund. The U.S. Government Department of Defense transferred property located at the former Schilling Air Force Base to the Salina Airport Authority September 9, 1966. The property is now known to contain areas of extensive soil and groundwater contamination, primarily from the use and disposal of chlorinated solvents and petroleum products caused by activities at the former base during its period of active military duty from 1942 to 1 965. The U.S. Government Department of Defense is responsible for the investigation and remediation of contamination caused by military activities at current and former military bases. The U.S. Army Corps of Engineers is the lead agency for the Department at formerly used defense sites. The Corps is currently investigating contamination at the fon�ner base under the regulatory oversight of the U.S. Environmental Protection Agency and Kansas Department of Health and Environment. The former base is not designated as a National Priority List Superfund site, but investigation and remediation is required to be in compliance with the Comprehensive Environmental Response, Compensation and Liability Act. Potential liability for contamination under the Act extends broadly to parties associated with the release or presence of hazardous substances, including not only those entities involved with contaminant use and disposal, but in some cases other current and former owners and operators of contaminated sites. As a current owner of extensive amounts of property at the former base, the Authority is potentially liable under the act. The Authority has determined that while a possible liability exists, it is not probable and at this time, no reasonable estimate of the possible liability can be made. `rherefore, no liability relating to that matter has been recorded. The Authority is under no administrative orders from the U.S. Environmental Protection Agency or the Kansas Department of Health and Environment. The Authority is considered to be a Potentially Responsible Party for the former base site, primarily due to its status as a property owner. 47 This page intentionally left blank. REQUIRED SUPPLEMENTARY INFORMATION CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2005 Revenues Taxes Real estate taxes Delinquent taxes Motor vehicle taxes General sales tax Other taxes Total taxes Charges for Services General charges General government Public safety Public works Health and sanitation Culture and recreation Community and economic development Total charges for services Operating grants, restricted General grants Public safety Total operating grants, restricted Operating grants, unrestricted Public safety Public works Community and economic development Total operating grants, unrestricted Interest income General interest Total interest income Interfund services provided General services General government Community and economic development Total interfund services provided Miscellaneous revenues General miscellaneous revenues General government Public safety Public works Health and sanitation Culture and recreation Community and economic development Total miscellaneous revenues Proceeds of capital assets General sales Total proceeds of capital assets Total revenues Variance with Final Budget Budgeted Amounts Positive Actual G_ riginal Final [Negative $ 2,353,064 $ 2,369,358 $ 2,369,358 $ [16,294] 59,455 50,000 50,000 9,455 228,999 2631941 263,941 [34, 942] 10, 555, 924 10, 740, 000 10, 740, 000 [184,0761 - 21 110, ? ?5 210601000 2,060, 000 50,775 15, 308, 217 15,4 15 483 299 [175,082) 65,883 - - 650883 5,890 - - 51890 31157,361 2,684,100 2,684,100 473,261 1631108 176,000 176,000 [12,892] 381571 381500 38,500 71 586,666 5101000 5101000 761666 8 445 8 500 8 500 [55] 4,025,924 31417,100 3, 417100 608, 824 141,234 170,000 170,000 [28,766] 718,165 678 912 678,912 39 253 859,399 848,912 8481912 10,487 21000 - - 21000 21187 11000 10000 11187 5,840 - - 5,840 10,027 10000 1,000 9,027 1231725 152,520 152,520 [28,795] 123,725 152,520 152,520 [28, 795] 606,653 746,250 746,250 1139,597] 1,281,608 13097,000 1,097,000 184,608 100,000 1001000 100,000 - 1,9889261 10943,250 1,943,250 45,011 77,043 621500 62,500 14,543 185 - - 185 52,064 32,000 32,000 20,064 691073 - - 69,073 110 - - 110 21749 - - 2,749 81500 - - 8,500 2090724, 941500 941500 115,224 7A a '30 3n nnn an nnn A 01n 34,t$29 3U, uuu 3u. uuu 4,b29 22, 560,106 21, 970, 581 21, 970, 581 589,525 See independent auditors report on the financial statements. 48 CITY OF SAUNA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2005 Expenditures General Government City commission City manager Legal Finance Human resources Other general government Contingencies Total general government Public Safety Police Municipal court Fire Total public safety Public Works Buildings and general improvements Engineering Streets Flood works Traffic control Parks ADA compliance Total public works Public Health and Sanitation Cemetery Health department Total public health and sanitation Culture and Recreation Swimming pools Neighborhood centers Recreation Arts and humanities Smoky Hill museum Total culture and recreation Community Development Human relations Development services Agency contracts Total community development Capital Outlay Capital outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Variance with Final Budget Budgeted Amounts Positive Actual Original Final Ne ative $ 110,257 $ 105,450 $ 105,450 $ [4,807] 3011255 4121250 4121250 110,995 134,986 131,300 1311300 [3, 686] 3931916 421,491 421 2491 271575 2641109 222,754 2221754 [41,355] 1,108, 905 965,000 965,000 [143,905] 48,190 200,000 200,000 151,810 21361,618 2,458,245 21458,245 96,627 4,865,733 51045,445 5,045,445 179,712 191293693 933,046 933,046 [1963647] 4,509,596 4,505,839 4,505,839 3,757 10,505,022 10,484,330 10,484,330 20,692 782,186 695,618 695,618 [86,568] 5321152 536,507 536,507 40355 1,478,088 11548,611 11548,611 70,523 135,779 140,528 140,528 41749 539,513 591,139 591,139 51,626 1,038,840 1,041,173 1,041,173 2,333 13,048 25,000 25,000 11,952 4,519,606 4,5781576 4,578,576 58,970 90,734 93,950 93,950 3,216 796, 362 796t362 796, 362 - 887, 096 890, 312 890,312 3,216 69,375 75,900 75,900 61 525 50,568 55,598 55,598 51030 113011396 1,178,830 101781830 [1223566] 321,645 313j380 3131380 [8,265] 318,406 332,548 332,548 14,142 2,061,390 1,956,256 1,956,256 [105,134] 195,868 193,099 193,099 [2,769] 829,837 1,000,574 1,000,574 170,737 264,526 280,000 280,000 15,474 11290,231 1,473,673 1,473,673 183,442 1,313,125 842,441 842,441 [470,684] - 4,171,136 4,171,136 4,171.136 • 22,938 088 26 ,854,969 26 1854,969 3,916,881 377,9821 [4,884,388] 4,884,388) 4,506,406 See independent auditor's report on the financial statements. 49 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON -GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2005 Other financing sources [uses] Transfer [out] Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 Prior year cancelled encumbrances Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable Accounts receivable Taxes receivable, net Inventory Retainage payable Current year encumbrances GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Negative $ [390, 553] $ [190,000) $ [190, 000] $ [200, 553] (390,553 [190,000] [190,000] [200,553] [768,535] [5,0749388] [5,074,388] 4,305,853 5,756, 911 5,074,388 5,074,388 682,523 6,508 - fi,508 41994,884 $ - $ - $ 41994,884 89,105 1,359,203 89,620 103,892 [902] 421,155 $ 71066,959 See independent auditor's report on the financial statements. 50 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) EMPLOYEE BENEFITS FUND For the Year Ended December 31, 2005 Revenues Taxes Real estate taxes Delinquent taxes Motor vehicle taxes Total taxes Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures General Govemment City commission City manager Finance Human resources Total general government Public Safety Police Municipal court Fire Total public safety Public Works Buildings and general improvements Engineering Streets Flood works Traffic control Parks Total public works Variance with Final Budget Budgeted Amounts Positive Actual Cri final Final Ne ative $ 4,0751390 $ 41099,789 $ 41099,789 $ [24, 399] 1071257 55,000 55,000 52,257 4409979 514,269 514,269 73,290] 41623,626 41669,058 41669,058 [45,432] 21000 21000 [2,000] 4,623,626 41671,058 41671,058 [47,432] 11425 1,404 11404 [21 ] 67,461 91,501 911501 24,040 891324 931003 93,003 31679 47,205 45,930 45,930 [11275] 205,415 2311838 2313838 261423 114441372 1,449, 949 1,449, 949 51577 143,352 122,487 122,487 [20,865] 11464,021 113851720 11385,720 [78,301) 310 745 21958,156 2, 9582 156 [931 589] 86,336 771445 77,445 [8,891] 127,854 134,507 134,507 61653 2831557 3021274 302,274 18,617 381871 39,810 39,810 939 441830 471686 471686 21856 255,550 2731972 2731972 181422 8371098 8751694 875,694 381596 See independent auditor's report on the financial statements. 51 CITY OF SALI NA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) EMPLOYEE BENEFITS FUND For the Year Ended December 31, 2005 Variance with Final Budget Bud eted Amounts Positive Actual Gri final Final Ne ative Expenditures - continued Public Health and Sanitation Cemetery $ 26,746 $ 28,004 $ 281004 $ 11258 Culture and Recreation Swimming pools 31886 41940 41940 11054 Neighborhood centers 61971 41495 41495 [21476] Recreation 156,541 1 561450 1561450 [91 ] Bi-- Centennial Center 1971450 210,594 2101594 13,144 Arts and humanities 701013 721988 72,988 21975 Smoky Hill museum 59,166 67,065 67,065 7,899 Total culture and recreation 494,027 516,532 516,532 221505 Community Development Human relations 511292 43,199 43,199 [81093] Developmental services 2061323 214,836 214,836 81513 Total community development 257,615 2581035 2581035 420 Other Health insurance 15,917 81000 81000 [71917] Cash Reserve - 3551264 3551264 3551264 Total expenditures 41888,563 51231,523 51231,523 3421960 Excess [deficiency] of revenues over [under] expenditures [264,937] [560,465] [560,465] 295,528 Unreserved fund balance, January 1 6121266 5601465 5601465 511801 Unreserved fund balance, December 31 347,329 - - $ 347$29 Reconciliation to GAAP Interest receivable 51406 Taxes receivable, net 168,724 GAAP Fund Balance, December 31 $ 521,459 See independent auditor's report on the financial statements. 52 CITY OF SALI NA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) FLOOD AND DRAINAGE IMPROVEMENT FUND For the Year Ended December 31, 2005 Revenues Taxes Real estate taxes Delinquent taxes Motor vehicle taxes Total taxes Total revenues Expenditures Capital outlay Debt Service Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable Taxes receivable, net Current year encumbrances GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final f Ngg ative $ 81,217 $ 81,737 $ 81,737 $ [520] 71706 31000 31000 41706 41,558 40,781 40,781 877 130,581 125,518 125,518 51063 1301581 1251518 125,518 51053 279,752 200,000 2001000 [79,752] 100,000 100,000 100,000 - - 80,000 MOW 80,000 379,752 380,000 380,000 1249,1711 [254,482] [254,482] 51311 488,545 254,482 254,482 214,083 2191374 $ - $ - $ 2191374 8,578 1 0,347 92,421 $ 328 720 See independent auditor's report on the financial statements. 53 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) TOURISM AND CONVENTION FUND For the Year Ended December 31, 2005 Revenues Taxes other taxes Interest income General interest Total revenues Expenditures Community Development Tourism Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfer [out] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Accounts receivable Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final [Neciativel $ 842,127 $ 850,000 $ 8503000 $ [7, 873] 719 - - 719 8421845 8501000 8501000 [71 1 54] 559,740 510,000 5550001 51251 559,740 5101000 555, 00'1 5,251 283,105 340,000 2841999 [ 1 , 8931 [338,046) [ [340,000] 11954 [54, 940] - [55,0011 51 551001 - 55,001 - 209,433 1 $ 209,495 See independent auditor's report on the financial statements. 54 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL GAS FUND For the Year Ended December 31, 2005 Revenues Operating grants, restricted Public works Interest income General interest Total revenues Expenditures Public works Streets Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Prior year cancelled encumbrances Unreserved fund balance, December 31 Reconciliation to GAAP Taxes receivable Interest receivable Retainage payable Current year encumbrances GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final [Negative] $ 1 1493,209 $ 1 1500,000 $ 1,500, 000 $ [106,791] 18,231 10,000 10,000 81231 1,511,440 11510,000 11510,400 [98,550] 118,509 1 31,000 1311000 121391 11775,534 1,510,000 1,510,000 [155,534] - 118,527 1181527 118,527 1,895,243 1,859,527 11859,527 35,715 [383, 803] [249,527] [249, 527] [134,270] 427,851 249,527 249,527 178,324 115,699 - - 115,699 159,747 $ - $ - $ 159,747 457,'123 9,911 [3,83'1 ] 445.475 $ 1,069,426 See independent auditor's report on the financial statements. 55 CITY OF SALI NA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) BICENTENNIAL CENTER FUND For the Year Ended December 31, 2005 Revenues Charges for services Culture and recreation Interest income General interest Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Culture and Recreation Bi- Centennial Center Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfer in Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Accounts receivable Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual or, final Final Ne ative $ 820,419 $ 850,500 $ 850,500 $ [30,081 ] 11778 51900 51000 [31222] 171 - - 171 822,358 8551500 855,500 [33,130 1,293, 833 1 1354,454 113541484 50,531 71979 19,100 19,100 113121 11301,812 11539w332 1,539,332 237,520 [479,444} 583,8321 [683,8321 204,388 488,045 490,000 490,000 [11954] 488,045 490,000 490,000 [11954] 81502 [193,832] [193,832] 2021434 251,959 1931832 193A32 581127 2501551 $ - $ - $ 2501551 13,357 41382 $ 278,300 See independent auditor's report on the financial statements. 56 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES CITY OF SALINA, KANSAS COMBINING STATEMENTS - NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Business improvement City fund - State law allows businesses within an area to voluntarily establish an improvement City. This fund is used to account for the assessments made on the City. All revenues are to be used within the Business Improvement City. Neighborhood park fund - To account for fees collected from new residential building projects in Salina. Expenditures are for acquisition or development of neighborhood parks in the growing areas of the community. Special parks and recreation fund - To account for liquor tax revenues, which must be used for park maintenance and improvements. Special alcohol fund - To account for liquor tax revenues, which must be used for programs, which address prevention, education or intervention for drug and alcohol abuse. Bicentennial center event fund - To account for the revenues and expenses associated with special events (concerts, shows, etc.) at the City's convention center. HUD community development fund - To account for grants received from the state to be used for housing or economic development purposes. Community development revolving fund - To account for funds, which may be loaned for housing and economic development, purposes, to later be repaid and reused on a revolving basis. Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities. Sales tax capital fund - To account for 87.5% of the 114 cent sales tax designated for capital, debt, and human services purposes. Sales tax economic development fund - To account for 12.5% of the 114 cent sales tax designated for economic Development purposes. Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. CDBG ED fund- To account for grants received from the federal government to be used for economic development loans to qualifying businesses. HOME V fund - To account for grants received from the state government to be used for housing rehabilitation. Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities. Police grants fund - To account for revenues from grants, which are to be used for special police activities, including the D.A. R. E. program D.A.R.E. donations fund - To account for donations to the D.A.R. E. program. War memorial maintenance fund - To account for monies to be used for maintenance of the local war memorial. 57 CITY OF SALINA, KANSAS COMBINING STATEMENTS - NGNMAJGR FUNDS NGNMAJQR PERMANENT FUNDS Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government's programs. Cemetery endowment fund - To account for amounts expended for perpetual care of the City cemetery, Interest earnings are used for cemetery maintenance. Mausoleum endowment fund - To account for amounts charged for perpetual care of the City mausoleum. Interest earnings are used for mausoleum maintenance. Tricentennial commission fund - To account for donations to be used to celebrate the nation's tricentennial in the year 2076. 58 CITY OF SALI NA, KANSAS COMBINING BALANCE SHEET NGNMAJGR GOVERNMENTAL FUNDS December 31, 2005 ASSETS Cash and investments Receivables Accounts Interest Notes Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities Fund balances: Reserved for encumbrances Reserved for notes receivable Unreserved Undesignated Total fund balances Total liabilities and fund balances Total Total Total Nonmajor Nonmajor Nonmajor Special Revenue Permanent Governmental Funds Funds Funds $ 2,839,492 $ 337,626 $ 311771118 27,816 - 271816 431170 51259 481429 51527 -- 51 527 $ 219161005 $ 342,876 $ 31258,881 $ 601506 $ 273,156 333,662 $ 60,506 273,156 333,662 3051301 - 3051301 51527 - 51527 21271,515 342,876 21614,391 21582,343 3421876 2, 925,219 $ 219161005 $ 342,876 $ 31258,881 M 315� See independent auditor's report on the financial statements. 59 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2665 REVENUES Taxes Intergovernmental Charges for services Licenses and permits Investment revenue Miscellaneous Total revenues EXPENDITURES Current Culture-and recreation Public health and sanitation Planning and development Miscellaneous Capital outlay Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Transfers [out] Total other financing sources [uses] Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Total Total Total Nonmajor Nonmajor Nonmajor Special Revenue Permanent Governmental Funds Funds Funds $ 21286,387 $ - $ 2,2881387 282,468 - 282,468 11000,042 6F924 11006,966 13,525 - 13,525 2871688 81739 2161419 42,388 - 421388 3,826,498 15,663 31842,153 913,515 - 913,515 148,187 - 148,167 461,226 - 461,226 - 35 35 684,657 - 684,657 2,267,585 35 2,287,546 11618,985 151628 19634,613 23,148 - 23,148 [565, 888] - _[505,0001 [481, 852 - [481, 852] 111371133 151628 17152l761 11445,216 327,248 11772,458 $ 215827343 $ 342,876 $ 21925,219 See independent auditors report on the financial statements. 60 CITY OF SALI NA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2005 ASSETS Cash and investments Receivables Accounts Interest Notes Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities Fund balance: Reserved for encumbrances Reserved for notes receivable Unreserved Undesignated [deficit] Total fund balance [deficit] Total liabilities and fund balances Business Improvement Neighborhood District Park $ 61331 $ 1309077 $ 27,278 - 95 21023 Special Parks & Special Recreation Alcohol 951720 $ 81850 1,488 134 %P %J%j1 I UL %P I �3L, 1 VV %P %71 ,LVU %P V, I LYt $ 61321 $ 746 $ W, aJL 1 1 —rw w - 797 - 27,381 131,354 981411 81784 27,381 131,354 971208 81784 $ 33,702 $ 132,100 $ 97,208 $ 8,784 Ecow Bicentennial HUD Comm. Sales Tax Center Community Development. Heritage Sales Tax Economic Event Dev. Revolving Commission Capital Development $ 25,572 $ 611413 $ 1861524 $ 720 $ 11685,191 $ 3351186 - 955 21900 11 251204 51212 - 5,527 - - - - $ 25,572 $ 671895 $ 1891424 $ 731 $ 11711,395 $ 340,398 7,417 $ - - - - - 71417 - - - - - 304,504 - - 53527 - - - - 25,572 52,358 189,424 731 113991474 340,398 251572 67,895 189,424 731 1,703,978 3401398 $ 251572 $ 571895 $ 189,424 $ 731 $ 1,711,395 $ 340,398 See independent auditor's report on the financial statements. 61 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2005 ASSETS Cash and investments Receivables Accounts Interest Notes Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Total liabilities Fund balance: Reserved for encumbrances Reserved for notes receivable Unreserved Undesignated [deficit] Total fund balance [deficit) Total liabilities and fund balances Special Fair C DBG HOME Law Housin ED V Enforcement $ 2201196 $ 21559 $ - $ 121492 31424 - - 194 $ 223,fi2D $ 2,559 $ - $ 121686 $ '11116 $ - $ 44,906 $ - - - 273,156 - 11115 - 318,062 - 222,504 21659 [318,Dg2] 12,686 222,504 21659, [3 M 062] 12,686 $ 2231620 $ 21659 $ - $ 12,686 War Police DARE Memorial Grants Donations Maintenance Totals $ 21 $ 343711 $ 341029 $ 21839,492 540 - 27,816 - 530 43, 170 r r R -T 60,506 - - - 2733156 - - - 3331552 -- - - 305,301 51527 21 35,251 34,559 21271,515 21 35,251 34,559 21582,343 $ 21 $ 35,251 $ 34,559 $ 2,915,005 See independent auditor's report on the financial statements. 62 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2005 Revenues Taxes Intergovernmental Charges for services Licenses and permits Investment revenue Miscellaneous Total Revenues Expenditures Current Culture and recreation Public health and sanitation Planning and development Capital outlay Total Expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Transfers [out] Total other financing sources [uses] Net change in fund balance Fund balance, beginning of year Business Special Improvement Neighborhood Parks & Special District Park Recreation Alcohol - $ - - 141,234 1411234 87,722 - - - 13,525 - - 190 31453 21257 182 87,912 16,988 143,501 141,416 - - - 1481,107 87,136 - - 39,410 115,854 - 87,136 39,410 115,854 148,107 776 [22,422] 271647 [669-11 23,148 - [30,000] - [6,852] - 776 [22,422] 201795 [61691] 261605 153,775 76,413 15,475 Fund balance, end of year $ 271381 $ 131,354 $ 97,208 $ 81784 Bicentennial HUD Community Sales Tax Center Community Development Heritage Sales Tax Economic Event Development Revolving Commission Caaital Development $ 11995,338 $ 2 85, 049 9121320 - - - - - 11594 4, 824 20 431322 81205 - - 2t951 - - - 912,320 11594 71775 20 21038,660 2931254 9131222 - - - - - 376 - - - - - - 499, 393 30,000 913,222 - - 376 499,393 30,000, [902] 11594 71775 [356] 1,539,267 263,254 - _ - [375,000] - - - - 1375,0001 - [902] 1,594 71775 [356] 111 64,267 263,254 26,474 66,301 181,649 1,087 539,711 771144 $ 257572 $ 671895 $ 189,424 $ 731 $ 11703,978 $ 340,398 See independent auditor's report on the financial statements. 63 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2005 Revenues Taxes Intergovernmental Charges for services Licenses and permits Investment revenue Miscellaneous Total Revenues Expenditures Current Culture and recreation Public health and sanitation Planning and development Capital outlay Total Expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Transfers [out] Total other financing sources [uses] Net change in fund balance Fund balance, beginning of year Fund balance, end of year Special Fair CDBO HOME Law Housin ED V Enforcement 1413983 - - 324 404 34,567 - - 1 42, 387 341567 - 324 23,744 31,908 3181062 - 231744 31,908 3'18, 062 118,643 21659 [318,062] 324 [100,000] - - [100,0001 - - - 18,643 21659 [318,062] 324 203,861 - - 12,362 $ 222,504 $ 2,659 $ [318, 0621 $ 12,686 War Police DARE Memorial Grants Donations Maintenance Totals 21 401 - 4,421 21 41822 $ 212801387 282,468 1 ,600,642 - 131525 884 207,680 45 421388 929 3,826,490 - - 293 913,515 - - 1481197 - - - 4611226 - -- - 684,657 293 2,2071505 21 41822 636 11618,985 - 231148 - [505, 606] [481,852] 21 41822 636 111 37,133 - 30,429 33,923 11445,210 $ 21 $ 351251 $ 34,559 $ 2,582,343 See independent auditors report on the financial statements. 64 ASSETS Cash and investments Interest receivable Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Total liabilities Fund balances Unreserved Undesignated Total liabilities and fund balances CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR PERMANENT FUNDS December 31, 2005 Cemetery Mausoleum Tricentennial 342,876 Endowment Endowment Commission Total $ 3031402 $ 291351 $ 41873 $ 337,525 41718 455 76 51250 $ 308,'i2o $ 29,807 $ 4,949 $ 3421876 308,'I 20 29,807 4,949 342,876 $ 3 $ 292 807 $ 4 949 $ gwwawmw 342 876 See independent auditor's report on the financial statements. 65 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR PERMANENT FUNDS For the Year Ended December 31, 2005 Expenditures Miscellaneous Total expenditures Net change in fund balance Fund balances - beginning of year Fund balances - end of year 35 - - 35 %J i.] - - J j 14,741 751 125 151528 2931379 291046 41823 327,248 $ 308,120 $ 291807 $ 4,949 $ 342,875 See independent auditor's report on the financial statements. 66 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total Revenues Charges for services $ 51924 $ - $ - $ 51924 Investment revenue 7,852 751 125 81739 Total revenues 14,776 751 125 1 5,553 Expenditures Miscellaneous Total expenditures Net change in fund balance Fund balances - beginning of year Fund balances - end of year 35 - - 35 %J i.] - - J j 14,741 751 125 151528 2931379 291046 41823 327,248 $ 308,120 $ 291807 $ 4,949 $ 342,875 See independent auditor's report on the financial statements. 66 This page intentionally left blank. This page intentionally left blank. CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON -- GAAP BASIS) BUSINESS IMPROVEMENT CITY FUND For the Year Ended December 31, 2005 Revenues Charges for services Community and Economic Development Interest income General interest Total revenues Expenditures Community Development Business Improvement District Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Accounts receivable Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne ative $ 87,016 $ 82,000 $ 90,000 $ [21984] 117 - - 117 87,133 821000 90,000 [2,867] 871136 82,900 99,914 2,878 87,136 82, 000 90,014 21878 [3] - [ 14] 11 13 - 14 � Ill 10 $ $ - $ 10 27,276 95 $ 271381 See independent auditor's report on the financial statements. 67 c I TY OF SA L I NA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) NEIGHBORHOOD PARK FUND For the Year Ended December 31, 2005 Revenues Charges for services Public works Interest income General interest Total revenues Expenditures Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne ative $ 13,525 $ 201000 $ 201000 $ [81470] 21331, 21000 21000 331 10,856 221000 22,000 61144 39,410 41,500 41,500 21090 - 134,812 1349812 134,812 39,410 176,312 178,312 130,902 [23,504] [104,312] [154,312] 1301708 1021880 104,312 104,312 1142 w 129,331 $ - $ - $ 1291331 2,023 $ 131,304 See independent auditor's report on the financial statements. 68 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL PARKS AND RECREATION FUND For the Year Ended December 31, 2005 Revenues Operating grants, restricted Culture and recreation Interest income General interest Total revenues Expenditures Public works Contingency Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfer in Transfer [out] Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 Prior year cancelled encumbrances Unreserved fund balance, December 31 Variance with Final Budget Budqeted Amounts Positive Actual Or final Final Ne ative $ 141,235 $ 140,000 $ 140,000 $ 11235 11273 21000 21000 727 142,508 142,000 142 , 000 508 - 2 0, 000 201000 20,000 1011397 1301000 130,000 28,603 - 54,769 541769 54,769 101,397 2041769 204,769 103,372 41,111 [62,769] [62,769] 1031880 23,148 - - 231148 [30, 000] - - [30,0001 [61852] - - [6,852] 341259 [62,769] [62,769] 97,028 571731 621769 621769 15,0381 21933 - - 21933 941923 $ - $ - $ 943923 Reconciliation to GAAP Current year encumbrances 797 Interest receivable 11488 GAAP Fund Balance, December 31 $ 971208 See independent auditor's report on the financial statements. 69 CITY OF SALI NA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL ALCOHOL FUND For the Year Ended December 31, 2005 Revenues Operating grants, restricted Health and sanitation Interest income General interest Total revenues Expenditures Public Health and Sanitation Special alcohol Cash reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, .January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne gative $ 141,234 $ 1401000 $ 140,000 $ 11234 138 - - 138 141,372 140,000 1400 000 11372 148,107 140,000 150,000 11893 - - 51385 51385 148,107 1401000 155,385 7,278 [0, 735] - [ 15, 385] 81050 15,385 15,385 - 81050 $ - $ - $ 81050 $ 8,784 See independent auditor's report on the financial statements. 70 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SALES TAX CAPITAL FUND For the Year Ended December 31, 2005 Revenues Taxes Selective sales tax Interest income General interest Total revenues Expenditures Community Development Agency contracts Capital Outlay Gash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfer [out] Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budqeted Amounts Positive Actual Or inai Final Ne ative $ 11 995, 338 $ 21008,125 $ 21008,125 $ [12,787] 20,246 14,000 141000 6,246 21 015, 584 2,022,125 21022,125 6,541 851000 - - [85,000] 718,897 21022,125 2,0221125 113031228 - 200,000 2001000 200,000 803,897 2,222,125 2,2221125 11418,228 1,211,_687 [200,000] [200,000] 1,411,687 [375, 000] [500, 000] [500, 000] 1 25, 000 [375,00j [500,0 [500,000] 125,000 836,687 [700,000] [700,000] 11536,687 536,583 7001000 7001000 [163,417) 11373,270 $ - $ - $ 1,373,270 Reconciliation to GAAP Current year encumbrances 304,504 Interest receivable 26,204 GAAP Fund Balance, December 31 $ 11703,978 See independent auditor's report on the financial statements. 71 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON GAAP BASIS) SALES TAX ECONOMIC DEVELOPMENT FUND For the Year Ended December 31, 2005 Revenues Taxes Selective sales tax Interest income General interest Total revenues Expenditures Community Development Economic development Dash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Od final Final N e-q ative 2 85, 049 $ 286,875 $ 286,875 $ [1, 828] 31440 21000 21000 11440 2881489 2881875 2881875 [385] 30j000 338,875 338,875 308,875 - 50,000 50,000 50,000 30,000 388,875 3881875 3581875 2581489 [100,000] [100,000] 358,489 78,597 100,000 100,000 (23,3031 3351188 $ - $ - $ 335,188 Reconciliation to GAAP Interest receivable 51212 GAAP Fund Balance, December 31 $ 340,398 See independent auditor's report on the financial statements. 72 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON GAAP BASIS) FAIR HOUSING FUND For the Year Ended December 31, 2005 Revenues Operating grants, restricted Community and economic development Interest income General interest Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Community Development Human relations Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP Interest receivable GAAP Fund Balance, December 31 Variance with Final Budget B� dgeted Amounts Positive Actual Ori final Final 'Ne ative $ 135,802 $ 651000 $ 65,000 $ 70,802 31950 11000 11000 21950 404 - - 404 140,156 W000 66,000 74,156 123,744 129,000 129,000 5,256 - 11000 11000 11000 - 98,891 98,891 98,891 123,744 228,891 228,891 1 05,147 16,412 [162,891] [162,8911 1 791303 202,668 162,891 162,891 39,777 2191080 $ - $ - $ 219,080 3,424 $ 222,504 See independent auditor's report on the financial statements. 73 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) DEBT SERVICE FUND For the Year Ended December 31, 2005 Reconciliation to GAAP Taxes receivable, net 53,657 Interest receivable 19,463 GAAP Fund Balance, December 31 $ 1 ,298,695 See independent auditors report on the financial statements. 74 Variance with Final Budget Bud eted Amounts Positive Actual Gri i� nal Final Ne ative Revenues Taxes Real estate taxes $ 11296,877 $ 1,305,507 $ 13305,507 $ [81630] Delinquent taxes 38,274 401000 40,000 [1,726] Motor vehicle taxes 1421960 163,509 1639509 [20,549] Total taxes 11478,111 11509,016 1,509,015 [30,905] Charges for services Special assessments 111421502 1,229,077 11229,077 [86,575] Interest income General interest 311034 201000 20,000 11,034 Miscellaneous revenues General miscellaneous revenues 9,685 - - 9,685 Other financing sources General sources 51447 - - 51447 Total revenues 21666,779 21758,093 2,758,093 [91,314] Expenditures Debt Service Principal 2,338,640 2,953,334 2,953,334 614f694 Interest and other charges 687,701 734,653 734,553 46,952 Cash Reserve - 7881868 7881868 788,868 Total expenditures 3,026,341 41476,855 4,476,855 11450,514 Excess [deficiency] of revenues over [under] expenditures [359,562 _ _ [1,7181762] [1,718,762] 1,3599205 Other financing sources [uses] Transfer in 2761216 500,000 5001000 223,784 Total other financing sources [uses] 276,216 500,000 5001000 [223,784] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [83,346] [1,218,762] [11218,752] 1,135,416 Unreserved fund balance, January 1 19309,321 1 ,218,762 1,21 8,762 90,559 Unreserved fund balance, December 31 1,225,975 $ - $ - $ 1,225.975 Reconciliation to GAAP Taxes receivable, net 53,657 Interest receivable 19,463 GAAP Fund Balance, December 31 $ 1 ,298,695 See independent auditors report on the financial statements. 74 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) SOLID WASTE DISPOSAL FUND For the Year Ended December 31, 2095 Variance with Final Budget See independent auditor's report on the financial statements. 75 Budgeted Amounts Positive Actual Od final Final Ne ative Revenues Charges for services Health and sanitation $ 1,943,164 $ 1,943,000 $ 11943,000 $ 164 Interest income General interest 45,103 20,000 201000 25,103 Interfund services provided Health and sanitation 395,678 410,000 410,000 [14,322] Miscellaneous revenues Health and sanitation 22,337 20,000 20,000 21337 Total revenues 21406,282 21393,000 2,393,000 131282 Expenditures Public Health and Sanitation Solid waste 1,472,720 1,731,719 11731,719 258,999 Hazardous waste disposal 83,729 90,186 90,186 6,457 Total public health and sanitation 1,556,449 11821,905 1,821,905 265,456 Debt Service Principal 446,990 487,532 487,532 40,542 Interest 1591271 111,250 1111250 [48,021) Total debt service 606,261 598,782 598,782 7 Capital Outlay 47,644 157,100 157,100 109,456 Cash Reserve - 21323,631 2,323,631 213233631 Total expenditures 21210,354 4,9011418 4,901,418 21691,064 Excess [deficiency] of revenues over [under] expenditures 195,928 [21508,418] [2,508,418] 21704,346 Other financing sources [uses] Transfer [out] [118,068] 2,508,418 21508,418 [2,626,486] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 77,860 - - 77,860 Unreserved fund balances, January 1 2,334,225 - - 213341225 Prior year cancelled encumbrances 29,186 - - 29,186 Unreserved fund balances, December 31 $ 21441,271 $ - $ - $ 2,441,271 See independent auditor's report on the financial statements. 75 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) WATER AND SEWER FUND For the Year Ended December 31, 2995 See independent auditors report on the financial statements. 76 Variance with Final Budget Budgeted Amounts Positive Actual Original Final Ne ative Revenues Charges for services Water and wastewater $ 12,147,597 $ 12 575,999 $ 120575,999 $ [427,493] Interest income General interest 1111965 190,999 199,999 11,965 Interfund services provided General services 251516 25,909 257990 516 Water and wastewater 277,689 61,200 61,209 216,480 Total interfund services 393,196 861209 86,209 216,996 Miscellaneous revenues General miscellaneous revenues 80 - - 80 Water and wastewater 2941287 305,909 3051990 10,713 Total miscellaneous revenues 294,367 3951999 305,900 [10,633] Total revenues 1 2,857,035 13,966,299 13,966,299 [209,165] Expenditures Water and Wastewater Water 6,961,228 7,462,941 71462,941 5011713 Sewer 2,448,746 2,631,681 2,631,681 182,935 Total water and wastewater 9,499,974 19,994,622 19,094,622 684,648 Capital Outlay 1,973,561 1,956,400 1,956,490 171161 Debt Service Interest and other 5 1,909 1,090 995 Cash Reserve - 414151431 4,415,431 41415,431 Total expenditures 11,383,540 16,467,453 16,467,453 5,083,913 Excess [deficiency] of revenues over [under] expenditures 1,4731495 [3,401,253] [3,401,253] 4,874,748 Other financing sources [uses] Transfers in - 235,000 235,000 [235,004] Transfers [out] [2,213,215] [2,508,767] [2,508,767 295,552 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [739,720] [5,675,020] [5,675,020] 4,935,300 Unreserved fund balances, January 1 61089,126 51675,020 5,675,020 414,106 Prior year cancelled encumbrances 8,685 - - 8,685 Unreserved fund balances, December 31 $ 5,358,091 $ - $ - $ 5,358,091 See independent auditors report on the financial statements. 76 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON -- GAAP BASIS) SANITATION FUND For the Year Ended December 31, 2905 Revenues Charges for services Health and sanitation Interest income General interest Miscellaneous revenues Health and sanitation Total revenues Expenditures Public Health and Sanitation Sanitation Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balances, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final rNe ative $ 11890,165 $ 11865,000 $ 11865,000 $ 251165 91238 71999 71449 21238 15 - - 15 11899t418 1, 872, 996 1,872,000 27,418 11772,265 1, 773,448 11773,448 11183 1261675 144,325 144,325 171659 - 4191837 4193837 4191837 11898,949 21337,516 21337,519 438,679 478 [455,616] [465,619] 456,988 4641468 465,616 4651619 [111421 $ 464,946 $ - $ - $ 464,946 See independent auditor's report on the financial statements. 77 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) GOLF COURSE DIVISION FUND For the Year Ended December 31, 2005 Revenues Taxes General sales tax Charges for services Culture and recreation Interest income General interest Miscellaneous revenues General miscellaneous revenues Culture and recreation Total miscellaneous revenues Total revenues Expenditures Culture and Recreation Golf course Debt Service Principal Interest Total debt service Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balances, January 1 Unreserved fund balances, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne ative $ 798,988 $ 792,300 $ 792,300 $ 61688 - 30,000 391999 130,0 00 21195 31000 31000 [885] 618 - - 518 28,986 - - 281986 29,694 - - 29,604 830,787 8250300 825,360 -..-.-51487 786,681 779,313 779,313 7,368 1 3,650 141736 14,736 11086 11086 21111 21111 1,025 141736 16,847 16,847 21111 67,973 47,000 47,000 [20,9731 - 112,527 1121527 112,527 869,390 955,687 955,687 86,297 [38,603] [130,387] [1302387] 91,784 138,730 130,387 130,387 81343 $ 100,127 $ - $ - $ 1001127 See independent auditor's report on the financial statements. 78 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) RISK MANAGEMENT FUND For the Year Ended December 31, 2005 Revenues Interest income General interest Interfund services provided General services Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Other Risk management Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final [Ne, ative $ 11 $ 2,000 $ 2,000 $ [1,989] 395,599 289,701 2891701 '105,898 13,438 401000 40,000 [26,562] 4093048 33'1,701 331,701 77,347 370,697 376,101 3761101 51404 - 11500 11500 11500 - 50,000 50,000 50,000 370,697 427,601 4271601 561904 38,351 [95,900] [95,900] 1341251 11251 953900 95,900 [94,649] $ 391602 $ - $ - $ 391602 See independent allditor's report on the financial statements. 79 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) WORKERS' COMPENSATION FUND For the Year Ended December 31, 2005 Revenues Interest income General interest Interfund services provided General services Total revenues Expenditures Other Worker's compensation Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Original Final Ne ative $ 71942 $ 201000 $ 20,000 $ [12,058] 344,664 344,000 3441000 564 352,606 3641000 364,000 11, 394 4241428 505, 000 505,000 80,572 - 517,835 5171835 517,835 424,428 1,022, 835 1 ,022, 835 598,407 [71,822] [658,835] [658,835] 587,013 506,151 658,835 658,835 [152,684] $ 434,329 $ - $ w $ 4341329 See independent auditor's report on the financial statements. 80 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) HEALTH INSURANCE FUND For the Year Ended December 31, 2005 Revenues Interest income General interest I nterfu nd Services Provided General services Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Other Health insurance Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne atiye $ 15,436 $ 5,000 $ 5,000 $ 10,436 419891712 53000,000 51000,000 [10,288] 40,451 10,000 '10,000 301451 5,045,599 51015,000 5,015,000 30, 599 4,492,432 41872,500 4;8721500 380,068 - 4771248 4771248 477,248 4,492,432 51349,748 51349,748 857,316 553,167 [334,748] [334,748] 8871915 690,491 334,748 334,748 355,743 $ 11243,658 $ - $ - $ 11243,658 See independent auditor's report on the financial statements. 81 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) CENTRAL GARAGE FUND For the Year Ended December 31, 2905 Revenues Interest income General interest Interfund services provided General services Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Other Central garage Capital Outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Excess [deficiency] of revenues and other financing sources over [under] expenditures and other financing [uses] Unreserved fund balance, January 1 Unreserved fund balance, December 31 Variance with Final Budget Budgeted Amounts Positive Actual Ori final Final Ne ative $ 21234 $ 12500 $ 11500 $ 734 111911207 1,054, 000 11054,000 137,207 41246 21998 21998 11248 11197,687 10058,498 110581498 1390189 1,281,445 11155,902 11155,902 [125, 543] 680 450 450 [230] - 108,266 108,266 108,266 11282,125 11264,618 11264,618 [17,507] [84,438] [206,120] [2053120] 121,682 801000 MOW 80,000 - [41438] [126,120] [126,120] 121,682 102,362 126,120 126,120 [23,7581 $ 97,924 $ - $ - $ 971924 See independent auditors report on the financial statements. 82 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) COMPUTER TECHNOLOGY FUND For the Year Ended December 31, 2005 Variance with See independent auditor's report on the financial statements. 83 Final Budget Budgeted Amounts Positive Actual Ori final Final [Negativell Revenues Charges for services General charges $ 1 031546 $ 1 06,000 $ 106,000 $ [21454] Interest income General interest 81043 61000 61000 21043 Interfund services provided General services 7951500 790,000 790,000 51504 Miscellaneous revenues General miscellaneous revenues - 21250 21250 [2125D] Total revenues 907,089 9041250 9041250 2,839 Expenditures ' Other Information services 7309425 753,001 753,001 22,575 Capital Outlay 4611228 461 ,000 461,000 [228] Cash Reserve - 1170305 117 305 117,305 Total expenditures 11191,653 1 ,331 ,306 1 3331 1306 1 391853 Excess [deficiency] of revenues over [under] expenditures [284,564] [427,056] [427,056] 1421492 Other financing sources [uses] Transfers in - 427,056 427,056 [427,0561 Excess [deficiency] of revenues and other financing sources over [under] expenditures and other financing [uses] [284,564] - - [284,554] Unreserved fund balance, January 1 602,173 - - 602,173 Unreserved fund balance, December 31 317,609 $ - $ - 317,609 See independent auditor's report on the financial statements. 83 CITY of SALINA, KANSAS INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one agency to other departments or agencies of the government and to other governmental units on a cost reimbursement basis. Risk management fund - To account for the accumulation and allocation of costs associated with risk management activities and the purchase of various forms of insurance. Workers' compensation reserve fund - To account for the costs of providing a partially self - insured workers' compensation plan and for accumulating the necessary reserve amounts. Health insurance fund - To account for the costs of providing a partially self - insured health insurance and for accumulating the necessary reserve amounts. Central garage fund - To account for the accumulation and allocation for costs associated with the City's centralized vehicle repair shop. Information services fund - To account for the accumulation and allocation of costs associated with electronic data processing. 84 CITY OF SALINA, KANSAS COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2095 Noncurrent liabilities: Accrued claims payable Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets 242,557 - - - 242,557 242,557 - - - 242,557 $ 9,746 $ 253,529 $ 324,997 $ 67,434 $ 62,197 $ 717,723 $ - $ - $ - $ 49,163 $ 179,634 $ 228,797 49,379 318x584 938,269 189,648 394,471 1,791,333 $ 49 379 $ 318 584 $ 9380269 $ 238,811 $ 484,195 $ 2,929,139 See independent auditor's report on the financial statements. 85 Total Workers' Internal Risk Compensation Health Central Information Service ASSETS Management Reserve Insurance Garage Systems Funds Current assets: Cash and investments $ 49,349 $ 563,353 $1,243,826 $ 145,386 $ 360,965 $ 2,362,879 Interest receivable 767 8,760 19,341 2,261 5,613 36,742 Inventory and prepaid supplies - - - 199,435 - 199,435 Total current assets 59t 116 572,113 1,263,167 2571982 366,578 215991956 Capital assets: Capital assets - - - 143,547 633,845 777,392 Less: accumulated depreciation - - - 94,384 454,211 _ 548,595 Total capital assets - - - 49,163 179,634 _ 2281797 Total assets $ 59,116 $ 572,113 $1,263,167 $ 396,245 $ 546,212 $ 2,737,853 Liabilities: Current liabilities (payable from current assets): Accounts payable $ 9,746 $ 38 $ 169 $ 46,149 $ 23,377 $ 79,470 Current portion of compensated absences payable - - - 21,294 381730 69,924 Current portion of accrued claims payable - 191934 3240738 - - 335,672 Total current liabilities (payable from current assets) 9,746 19,972 324,997 67,434 62,197 475,166 Noncurrent liabilities: Accrued claims payable Total noncurrent liabilities Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets 242,557 - - - 242,557 242,557 - - - 242,557 $ 9,746 $ 253,529 $ 324,997 $ 67,434 $ 62,197 $ 717,723 $ - $ - $ - $ 49,163 $ 179,634 $ 228,797 49,379 318x584 938,269 189,648 394,471 1,791,333 $ 49 379 $ 318 584 $ 9380269 $ 238,811 $ 484,195 $ 2,929,139 See independent auditor's report on the financial statements. 85 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUND For the Year Ended December 31, 2005 Operating revenues Charges for services Miscellaneous Total operating revenues Operating expenses General government Depreciation Total operating expenses Operating income [loss] Other operating revenues [expenses] Investment income Transfers in Total other operating revenues [expenses] Change in net assets Net assets, January 1 Prior period adjustment Net assets, January 1, restatement Net assets, December 31 14,688 14,688 11302 301,630 392,584 _ 210, 676 6681521 115741,713 $ 40,370 $ 318,584 $ 938,260 $ 238,811 $ 484,105 $ 2,020,130 See independent auditors report on the financial statements. 86 Total Workers' Internal Risk Compensation Health Central Information Service Management Reserve Insurance w Garage Systerns Funds $ 395,600 $ 344,663 $4,989,712 $1,191, 209 $ 899,046 $7,820,230 13,438 - 40,451 4,246 - 58,135 4090038 344,663 5,030,163 1,195,455 899,046 7,878,365 370,697 340,709 41515,239 1,241,570 1,032, 653 70500,868 - - - 91443 60,620 70,063 370,697 340,709 4,515,239 1,251,013 1,093,273 7,570,931 38,341. 3,954 514,924 [55, 5581 1 94, 22 307,434 727 13,000 30,752 31693 91811 571983 - - - 80,000 - 80,000 727 13,000 30,752 83,693 9,811 137,983 39,068 16,954 545,676 28,135 [ 1 B4,4161 445,417 1,302 301,630 392,5B4 210,676 6531833 11560,025 14,688 14,688 11302 301,630 392,584 _ 210, 676 6681521 115741,713 $ 40,370 $ 318,584 $ 938,260 $ 238,811 $ 484,105 $ 2,020,130 See independent auditors report on the financial statements. 86 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2005 See independent auditors report on the financial statements. 87 Total Workers' Internal Risk Compensation Health Central Information Service Management Reserve Insurance Garage Services _ Funds Cash flows from operating activities Cash received from customers and users $ 395,600 $ 260,945 $ 5,012,518 $1,191,209 $ 899,046 $ 7,759,318 Cash paid to suppliers of goods or services [368,495] [340,671] [4,515,103] [1,093,677] [682,547] [7,000,493] Cash paid to employees - - - [176,233] [334,068] [510,3x1] Other operating receipts 13,438 - _ 401451_ 4,246 - 58,135 Net cash provided by [used in] operating activities 401543 [79,726] 537,866 74,455] [117,5691 -� 306,659 Cash flows from capital and related financing activities Purchase of capital assets - - - - 189 124 _ 1189,1251 Net cash provided by [used In] capital and related financing activities - - - _ - 189,124 _ 189,124 Cash flows from investing activities Interest received 11 7,942 15,436 2233 8,043 _ 330665 Cash flows from noncapital financing activities Transfers in - - - 80,000 - _ 80,000 Net Increase [decrease] in cash and cash equivalents 401554 [71,784] 553,3x2 7,778 [298,650] 231,200 Cash and cash equivalents, January 1 8,795 635,137 690,524 137,608 6590615 _ 2,131,679 Cash and cash equivalents, December 31 $ 49f349 $ 563,353 $1,243,826 $ 145,386 $ 3601965 $2,362,879 See independent auditors report on the financial statements. 87 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2005 Reconciliation of operating [loss] income to net cash provided by [used In] operating activities Operating income [loss] Total Workers' Internal Risk Compensation Health Central Information Service Management Reserve Insurance Garage Services Funds $ 38,341 $ 31954 $ 5141924 $ [55,558] $ [194,227] $ 307,434 Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense - - - 9,443 60,620 70,063 [increase] decrease in inventory - - - [40,765] - [40,765] Increase [decrease] in accounts payable 2,202 38 136 10,895 9,937 23,208 Increase [decrease] in accrued compensated absences - - - 1,530 61101 71631 Increase [decrease] in claims payable - [83,718] 22,806 - - _ 50,912 Net cash provided by [used in] operating activities $ 40,543 $ [79,726] $537,866 $ 74,455 $ 117,569 $ 306,659 See independent auditor's report on the financial statements. 88 CITY of SALINA, KANSAS AGENCYFUNDS Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special assessments. Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings the insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. Prescott house escrow fund — To account for revenues received to rehabilitate the house to minimum housing standards. The revenue is returned to the owner as the building is repaired. PEGS access agency fund - To account for revenues collected on behalf of the community access television system for public, educational and governmental programming. Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds. Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account agency fund - To account for monies held by the police department for use in investigations. Fire cam agency fund - To account for donations received and used for fire equipment. Section 125 plan agency fund - To account for monies held for the Section 125 plan. 6*61 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET AGENCY FUNDS December 31, 2005 See independent auditor's report on the financial statements. 90 Special Fire Prescott Court Police Section Assessment Insurance House PEGS Payroll Bond and Investigation Fire 125 Escrow Proceeds Escrow Access Clearing Restitution Account Cam Plan Totals ASSETS: Cash and investments $ 2411953 $ 22,768 $ - $2,232 $38,475 $ 80,891 $ 2,168 $ 603 $19,958 $409,048 Interest receivable 3,762 354 - 35 - - - - - 4,151 Total assets $ 245,715 $ 23,122 $ - $2,267 $38,475 $ 80,891 $ 2,168 $ 603 $19,958 $413,199 LIABILITIES: Accounts payable $ 2450715 $ 23,122 $ - $2,267 $381475 $ 801891 $ 2,168 $ 603 $19,958 $413,199 Total liabilities $ 245,715 $ 23,122 $ - $2,267 $381475 $ 80,891 $ 2,168 $ 603 $19,958 $413,199 See independent auditor's report on the financial statements. 90 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2095 See independent auditor's report on the financial statements, 91 Balance Balance December 31, December 31, 2004 Additions Deductions 2005 Cash and investments Special Assessment Escrow $ 285,923 $ 19,248 $ 631218 $ 241,953 Fire Insurance Proceeds 59916 22,594 51842 22,768 Prescott House Escrow - 751553 75,553 - PEGS Access 1,915 1911415 1911098 21232 Payroll clearing 306 38,169 - 381475 Court Bond and Restitution 54,375 26,516 - 80,891 Police Investigation Account 2,252 - 84 21168 Fire cam Fund - 10,103 91500 603 Section 125 Plan Fund 20,347 286,225 286,614 19,958 Interest receivable Special Assessment Escrow 11657 21095 - 31762 Fire Insurance Proceeds 34 320 354 PEGS Access 11 24 - 35 Total Assets $ 372, 746 $ 672,362 $ 631,909 $ 4'13,199 Accounts Payable Special Assessment Escrow $ 287,590 $ 21,343 $ 63,218 $ 245,715 Fire Insurance Proceeds 52950 23,014 51842 23,122 Prescott House Escrow - 75,553 75,553 - PEGS Access 13926 1 911439 1 91,098 21267 Payroll Clearing 306 38,169 - 38,475 Court Bond and Restitution 54,375 25,516 - 80,891 Police Investigation Account 21252 - 84 21168 Fire cam Fund - 100103 9,500 603 Section 125 Plan Fund 20,347 2861225 2861614 191958 Total liabilities $ 372,746 $ 672,362 $ 631,909 $ 413,199 See independent auditor's report on the financial statements, 91 STATISTICAL SECTION C Q) L cn Q N .0 w C: a >- o E �e D U Ci co C �, U- 0 QU � Co � y o o cn U }' Co Z� 0 LO C7 Q N C CQ C Q 0 �- CQ �Q N +� C [d � Q in E E Q Ia co Q }, CQV C: 0 C Q 0 0 o a N r CD C) rn Q r LO r r-- co CO r*-- r r,-- rn LO Q I LO CO r N r,*- oO qt N qt T--- Cfl qr I N Q r r r r o a a o C7 rn Q V- U") Q (D cD N LO Q r� co r� r► c6 r r LC) N 0) CO C7 Co N r r� r M Q a o a o CD N N Q CO r Q rn Q r*-- (D a7 co N LO Q co co N c\i �i 03- T- 00 CO co LO r• QD CSI r L(] CX3 r [37 6034. 6►), Ef} 1 60} QU 0] i D cn C 0] Cn � Q 0] _ cn cn 0] cn [6 z U E c� C .0 -a � cn 'v .�... L w 7 0] (D C o o I-- 0 0 o a o 0 o a C17 N 0) Q 00 N Q Q r� r Q T- co r Q r N L[7 r CO r� (D 00 r Q It Q Q e r r CO LO LO o0 rn LO r CO It r l 00 o Co r v C\ V cD Q N rn LO LO d- It M r CO CO r r% ('y r Q r C r r C j- r 00 r M Lo l�7 r r� ��Q!)lIU!)IR ��V),IV�l N-0 o a o a a o 0 r� m Q Q r� N r C> r� N Q T- m r C7 T- CD NV QQ Q U � � LLO � LO CO CD M r� m C] Ln N m r� o0 CJ] L(] r-: N I r- N C6 cn- LO ' a..• .L us a) C Q L[) It 00 00 LO r� CO CO r cr CJ] r N (D r M 't C'r3 r LO 0), V).&!),IV)III &,.� V), Q!)lIV), o 0-1-01 a a o 0 o a (D Q It Q CO r CD Q r`- N Q T- 00 r Q r (D Q U � � N � r� QU cn NMtrD N C• L(] N C 03 00 co M L(] 7 C 1— 0] V ' a..• .L us a) C Q c6 a) cn .L (d r 0D 00 r M co-1 co r 4t r N V- � r Wl V)- V)- W1 0] cn Q C C cn co cn � N �> U c6 cu OL] [d 0] D (D Q U � � QU cn C C E = C 03 o m 7 C 1— -D CD a--0 (d OL] D (D M C a... 0] QU cn C [cd E a.-• C _ CU C 03 Q D 7 C CD �' 0] V ' a..• .L us a) C Q c6 a) cn .L MQ Q N cu cv (0 U in co C 0] m Q 0] E 0] CL .E a s 0 E i O w- C [d L U [6 D Q OL] 0 c0 CD w .Z s 0 z 0 N v N U 0 CL co CC cu LL m C C Q 7 .0 L OL] Q E D U cu C m Q U 0 co N 0) Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2403 Source: City of Salina Comprehensive Annual Financial Reports, 2403 - 2006 93 Schedule 2 City of Salina, Kansas Changes in Net Assets, Last Three Fiscal Years Last Three Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 Expenses Governmental Activities: General government $ 6,766,884 $ 4,934,556 $ 4,944,466 Public safety $ 12,636,082 $ 13,548,289 $ 14,158,775 Public works $ 7,895,823 $ 7,958,468 $ 8,424,158 Public health and sanitation $ 945,985 $ 1,015,567 $ 1,141,947 Culture and recreation $ 4,657,241 $ 4,783,566 $ 5,070,889 Planning and development $ 4,507,430 $ 4,134,445 $ 2,714,496 Interest on long term debt $ 1,085,064 $ 785,542 $ 741,615 Total governmental activities expenses $ 38,454,549 $ 37,152,433 $ 37,111,946 Business -type Activities: Solid waste disposal $ 2,366,654 $ 2,817,733 $ 2.608,162 Water and sewer $ 11,571,751 $ 11, 552,362 $ 11,261,714 Sanitation $ 1,682,352 $ 1,924,239 $ 1,889,190 Golf course $ 786,305 $ 817,060 $ 892,715 Total business -type activities expenses $ 16,407.062 $ 17,147,394 $ 16,651,781 Total primary government expenses $ 54,861,571 $ 54,259,827 $ 53,763,727 Program Revenues Governmental Activities Charges for services: General government $ 3,471,525 $ 3,711,600 $ 3,925,594 Public safety $ 2,672,120 $ 2,774,189 $ 3,368,313 Public works $ 159,988 $ 155,428 $ 163,148 Public health and sanitation $ - $ 34,880 $ 30,979 Culture and recreation $ 2,434,686 $ 2,072,678 $ 2,275,594 Planning and development $ 92,922 $ 198,298 $ 95,465 Operating grants and contibutions $ 2,751,185 $ 3,197,448 $ 2,798,432 Capital grants and contributions $ - $ - $ 13,875,468 Total governmental program revenues $ 11,178.426 $ 12,144,121 $ 26,532,153 Business -type activities: Charges for services: Solid waste disposal $ 2,361,451 $ 2,488,760 $ 2,343,861 Water and sewer $ 12,129,440 $ 12,361,877 $ 12,743,953 Sanitation $ 1,794,528 $ 1,814,256 $ 1,880,757 Goff course $ 772,868 $ 794,925 $ 798,966 Operating grants and contributions $ - $ 368,374 $ - Capital grants and contributions $ - $ - $ - Total business type program revenues $ 17,458,287 $ 17,824,192 $ 17,727,537 Total primary government program revenues $ 28,236,713 $ 29,964,313 $ 44,259,690 Net (Expense) Revenue Governmental Activities $ (27,276,083) $ (25,012,312) $ (14,579,793) Business -type activities: $ 651,225 $ 716,798 $ 1,075,756 Total primary government net expense $ (26,624,858) $ (24,295,514) $ (9,544,437) General Revenues and Other Changes in Net Assets Governmental Activities: Taxes Property Taxes, General Purpose $ 5,862,150 $ 6,576,194 $ 6,765,502 Property Taxes, Debt Service $ 1,732,183 $ 1,328,799 $ 1,351,421 Motor Vehicle Tax $ 1,208,225 $ 1,056,735 $ 1,479,262 Sales Tax, General Purpose $ 9,913,121 $ 10,544,582 $ 14,555,924 Selective Sales Tax $ 2,113,593 $ 2,264,206 $ 2,284,387 Other taxes $ 3,344,866 $ 3,425,772 $ 3,557,149 Special Assessments $ 1,447,699 Investment revenues $ 331,161 $ 390,462 $ 544,247 Miscellaneous $ 1,442,364 $ 1,484,469 $ 1,208,580 Transfers, net $ 79,661 $ 23,556 $ 114,419 Total governmental activities $ 27,475,423 $ 26,650,775 $ 27,456,451 Business -type activities: Investment revenues $ 144,963 $ 221,749 $ 327,728 Miscellaneous $ 165,120 $ 93,230 $ 154,321 Transfers, net $ (79,661} $ (23,556) $ (114,419} Total business -type activities $ 186,422 $ 291,383 $ 364,030 Total primary government $ 27,661,445 $ 26,942,158 $ 27,820,481 Change in Net Assets Governmental activities $ 198,940 $ 1,638,463 $ 1 6,876,658 Business -type activities $ 837,647 $ 1,048,181 $ 1,439,786 Total primary government $ 1,036,587 $ 2,646,644 $ 18,316,444 Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2403 Source: City of Salina Comprehensive Annual Financial Reports, 2403 - 2006 93 Schedule 3 City of Salina, Kansas Fund Balances, Governmental Funds Last Three Fiscal Years (modified accrual basis of accounting) General Fund Reserved Unreserved Total General Fund All other Governmental Funds Reserved Unreserved. Reported in: Special Revenue Funds Capital projects funds Permanent Funds Debt service funds Total all other governmental funds 2663 2664 2665 $ 3081721 $ $ 1601350 $ $ 4 4211156 $ 6,466, 822 $ $ 7,156, 953 $ $ 6 6,645, 863 $ 61775,543 $ $ 7,311,303 $ $ 7 71066,959 210957849 $ 2t6101320 $ 27368,602 $ 3,244, 359 $ 31917,489 $ 4,146, 618 $ 11968,471 $ (7,263,469) $ (4,327,154) $ 315,196 $ 327,248 $ 342,876 It _ T - T _ $ 715231853 $ (348,412) $ 21524,342 Information for years prior to 2663 is not available in comparable format. Source: City of Salina Comprehensive Annual Financial Reports, 2663 - 2666 94 Schedule 4 City of Salina, Kansas Changes in Fund Balances, Governmental Funds Last Three Fiscal Years (modified accrual basis of accounting) Revenues Taxes (see Schedule 5) Intergovernmental Special Assessments Licenses and permits Charges for services Investment revenue Reimbursements Miscellaneous Total revenues Expenditures General Government Public Safety Public Works Public Health and Sanitation Culture and Recreation Planning and Development Miscellaneous Capital Outlay Debt Service Principal Interest Total Expenditures Other financing sources (uses) Bonds and Notes issued Transfers in Transfers out Issuance Costs Other Total other financing sources (uses) Net change in fund balance Debt service as a percentage of non - capital expenditures $ 2,2077771 2003 216557057 2004 277061392 2005 $ 24,174,138 $ 25,152,288 $ 25,589,505 $ 277311239 $ 52559,099 $ 21784,507 $ 11447,699 $ 113407256 $ 11142,502 $ 19,946 $ 18,400 $ 131525 $ 5,145, 703 $ 61364,309 $ 71225,148 $ 3211666 $ 3621349 $ 486P264 $ 521278 $ 4651128 $ 6491756 $ 11207,770 $ 508,501 $ 500,659 $ 36,100,439 $ 39, 570, 330 $ 38, 391, 996 $ 2,2077771 $ 216557057 $ 277061392 $ 121205,169 $ 12,724,155 $ 139673,447 $ 571061255 $ 51156,529 $ 5,508,372 $ 5523206 $ 9511105 $ 120661963 $ 41355,318 $ 41469,916 $ 41776,014 $ 4,404, 504 $ 49024,939 $ 21606,957 $ 19,898 $ 35 $ 35 $ 5,164, 529 $ 10, 523, 569 $ 81580,155 $ 711751533 $ 21611,317 $ 21534,349 $ 170621840 $ 566,193 $ 754,921 $ 421590,955 $ 44,343,445 $ 42,207,605 $ 5,600, 000 $ 61706,947 $ 4,210, 000 $ 599,661 $ 11066,420 $ 11399,193 $ (600, 000) $ (11087,113) $ (1, 365,174) $ (9, 045) $ (1, 544) $ (51388,947) $ 81590,616 $ 112957763 $ 41244,019 $ 211001099 $ (31177,355) $ 428,410 Information prior to 2003 is not available in comparable format. Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2006 95 Real Estate Delinquent Motor Vehicle General Sales Selective Sales Other Taxes Total Taxes Schedule 5 City of Salina, Kansas Tax Revenues by Source, Governmental Funds Last Three Fiscal Years (modified accrual basis of accounting) 2663 $ 714171427 $ 176,906 $ 1, 2681 225 $ 91913,121 $ 2,113, 593 $ 31344,866 866 $ 24,174,138 .e Fiscal Year 2664 $ 7,6771415 $ 2271578 $ 11056,735 $ 161566,582 $ 212641206 $ 314251772 $ 251152,288 2665 $ 779042231 $ 212,692 $ 1,679,262 $ 16, 555, 924 $ 2,286, 387 $ 315571109 $ 2515891665 CL L- N M x F- N o L C _= N CD tD >- a) > U 5 �D U) C LL U U) Q C U) 0 F- C3 � J W M U) U) U) Q cl7 a] Q LO M Y CD CD qzt M LO r C) C) r` r r 00 r` 00 LO 00 r C: >.. CD CD r r Om CD r CD r CD Lf] Lf] Li3 r r r r Lf] r 00 r ca- o a... a] iiz "C7 co Co a� E W � LO LO LO M M M CO LO M N +� ,� a] C7 CD M N "Kt CD r- C7 Lf3 r` m Lf3 CD � CD 00 CD q M +d `a N a � r qrlr o to 000 ° o Ln °r`'_ 0~0 CD N to C) to 00 Ln m N � (D v� y `a CrD E Y z 000 o �--� LO L°n 00 Lo m 000 m q7 o r N_ to M cc n r CCa 3 }' ° tom►) r r r r _ _ r CV CN CV N _ N y= W :4-. co cr; a} 00 r M mot• M CD qzt qct 00 M C CD 0) CD r 00 r � � r C) C Q} 0 j LO C7 M N r` r r` M o a Cp -C CD 4 oar] Ln 00 m CD Q r` � ate) a �--- w 00 C7 V) 00 � M N_ r N M w .. cn CD CO U7 ' r Lf3 C) 00 CO M � r M r M � CD L O r` M 00 -0 U7 cV cV N N M M M M M M ° CD 0 r--• 0 CD qct Q} r` ol) Lo LO M � M C) 00 M M N C7 M m N U �� U-) 00 � o r W N r s .� - �� r CD r � � r to CO Ln Q7 r` w Co N o0 00 m N r` � � CD r` 0v Ca > > a] M r` 0) Q] M N N d] CD CD Co o N M M � Ln M M Lf] CD o z "Kt � c � o C +r Co Lf] N Lf] C) CD LO 00 N M M a) o T- M r` N 00 M cq a a CD o m r` CD LO Lf] -Ti d• � 4 - co '� af 0)-2 "" N N " N" N N N > r-r C a U3 a.. o LZ o > co w o N r` 00 LO C7 CD CD LO CD N L a M m C) CD LO m CD C) N 00 Ln u7 r` N_ M_ M C7 CD CD r` r cn ° w a) r r`- Lf] M CD C) � M N Co Z Q 2 00 N_ �3 M cn r p r Ln N .w co > M M r_ d7 00 r` Lf3 _ cu C) r CD M V) r CD CO CD r av N M x Q cn Ca > C] N N N N N N M M M M 2 CL -�o ai -v Co a; a> � �t C) -0 07 N 07 Lf] C) 00 C7 N Cl) L- C Q) Co o r` CD r` N r` N C7 00 r` ca � N m LO m V) 00 LO C7 r` M o w U L- - Tr^ N N 00 r` M f C7 Lf] r` U") M C7 CD a 00 LO r` 3 cl7 Q N N M M C r V7 qq V Ln cn r` vi cz [a � cu co CU o -v o Co ' a q* C 0 ° o U-) CO CD � CD M r r � CD r M CD M Ln M M CD N _0 y Q� a CD � M CO C) Ln " r r LO as 0 o a M� w m M C+5 CD o j a aM Ln r` M CO M N M 00 00_ LO co qzt Ln N_ CD LO r` r` qzt 00 C7 00 N r LO M U-) qct LO Cl) a} aj cu C N N N cV N M cn M M M _ 5 o Q is y a> a... Ca M m N M N r` V) L O M N Ln M � a) m E w r` a7 00 +� N F- � 00 C7 00 Ln as r r` CD r- "Kt r` r- M Ln r 00 CD 00 N_ r` > > .- ° C" Coo CD m CD o0 C7 N � r` Ln r- p - Q] M N CD M r d^ L1 ] E Co M W to Lrj CD r to r-- f cu r to ti 000 o W N N N N N N N Co E S. U 0 X cn o � C7 [d CD r` 00 M C) r N M ".t U-) rn rn Q7 q7 m Q7 m CJ] o 0 0 0 o C7 (p C) 0 C7 0 C:) C.) r r r r CV N N CV N N '-`- o o O7 0 z z Lo z yC U U C .CIO C!] U 0 U) ti [a w [0 m cu za rl-_ CU o > m cv co M rn C/) co .� *- u' av C-) U) CL aci °v M a ` t' j ci) m U 0 a 0 a' C.3 L a U i CU C7) U] [Q CU 0 C7) CU CU CL a CU C7) :3 *- m Co C[3 V C/) LL r` m 00 r` w LO N rte- qKr r` CO r Q CO N M O7 r r` 00 Q u7 00 tr w 00 r` 00 u7 LC] r Q r N m LO LC] co 00 m Q Q Q O7 r r CV r r N r r r r r r r r .0 Q m a) � a) Q q* 00 00 qKr C co co Q m 00 OD M d' 00 r C O CD W OD m of O7 6666 r 00 N C3) Q r� 00 � N co N r CV qt:r CV CV ti 00 m CD CO) LO 00 CO u7 r CO) CO N a) C O CD 00 00 r` cv Lo Ce) CY) u7 u7 co fit] u7 qKr CO C.D CO LO d' cn co co co Q 00 co d' N m co 00 N N r r r r aar aar r � OD N r OD 00 �C] O7 OD ti [Y7 CO M Q M M r co 00 r m 00 Q co r r Lo N M m Co Lo W r 00 00 CN Q LO r M r`- r` CO r` r ti r`- N d' w 00 m to LC] W 00 C+7 C?? r d' r co C) co Q m N 00 Q m m d' Lo 00 N N r N N N N N N N LO r r Q MQrr- �r`r�tor`r � rn w m co to 00 CO r M Q CO Q N Q Co O7 tY7 N LC] 00 N N r r N N N N N LO co N u7 Q CD LC] 00 N M w rqt:r Q ti ti CD r M r Q M r` N 00 M N Q Q N W LC] U-) q* 4 4 4 4 N N N N N N N N N Q M M q* 00 r` r co p m r 00 m CD LC] r m Q Lo r Q co q*- N co Lo m r LC] _N N ti N r` r r r` LC7 Q 00 CQD UDC) co Q� Lo Q p N m m OD OD Q Q 04 � N N r r r r CV N W r` 00 M Q r N M V, u7 �� N N N N N N 00 0 L Q U) CU CU v C x OD � C L C: C V IL Id v CL> C_ v C=) N rn rn le- r N Mqqr L'] CD r` M M C) N- Y r N C cu ry M r o o OR -OR �;O- o 0 0 o v o [mod C r ` M M r N CD C) C) r` r 0 0 Kr M LO Kr r o� r` CD CD f•'- [mod N N r r r r CD a Q Q O cu OQ Ln M -.:f N o � M > 'T LC] OQ C) CD CD M M r M CD r` a) M LO CD LO N AQ co a] CD r` a) W LO a) Q]_ r` M � -0 a Oa 0 CD C L�] r` a7 00 Ld C6 L6 M M CD C.D r` L O r r r U)= CU C) m C) N m m C) N C) Q sA r` CD L6 * M M N N N u] c o va CU OC Q � OC p DC Eft N r M LO Y C CU to r C) Q] LO m C=) Kr co r N -qt N N C r N ate-• 0 0 ca M r o Q] OQ Q > m OQ p 6 , - M N mr- w r` o LO a LO Cd N 00 M M r` C o •�;, OQ Ln M -.:f N M > C� r OD � CD 06 � Lci N a] t1] C.) C �_-• [mod 0) cu ate-• C CL Q 649� Lr] N r OQ CD M r a) N L6 Ld M 649� 649� r` 00 co a) C=) It- 0 o v o 0 Q] r` lqqr N qqr CD LO a) I*- M Q C) o CD C) r C37 OQ 00 � r N M cr N Cd M M r r CD r LO 00 Q] OQ Kr r C37 OQ Co m OQ � V-:, r N M M C=) N �60:)� OR v r c~ r 0 OQ C.D Q _(n Y t..7 C U C .cu cr] c° 0 • � 0) C) •U Cd LL. Q C o •�;, cn C - o u7 cn - _C C.) C �_-• [mod cu D] L- d cu ate-• C CL c o va CU OC va OC p DC CDCo o C a... 0 � q �--' � CU a... a... C — cu oa Ham- n�Ca ��OoCl- o- =m=C]CCD ca a X ca -- U) o as o> co ca J cu � C � 0 C..7 •��--' ua c, t; 0 Q aC c V) Ca � Oa o C -- c o 'cn o a ua aO [d oa ca -Cu ° oa v� C.7 C v) co CU > [a v .° DC }. v� CO •� E � 0 0 N L� '0 -a .� Fo a U) : va C 'ca = _ _ 0 ca va � >% a � [d a? � E ca V] L— (n Cd ca }. °? as o vi c > va c'a °' ca o 'ca a �' ° J 0 ca 'c o ' 0 Q _(n Y t..7 C U C .cu cr] c° 0 • Schedule 9 City of Salina, Kansas Property Tax Levies and Distributions Last Ten Fiscal Years 100 Current Year Tax Distributions Total Tax distributions Fiscal (Budget) Taxes Levied for the Delinquent Year fiscal year Amount Percentage Collections (1) Amount Percentage of levy, 1996 51534,222 51411,474 97.8% 147,259 5,518,724 99.7% 1997 51772,414 51689,316 98.6% 1331171 51822,487 199.9% 1998 61481,748 51976,849 98.3% 114,428 61999,868 100.1% 1999 61416,832 612692489 97.7% 144,976 61419,456 99.9% 2409 61694,612 61499,693 97.0% 145,891 61596,494 98.5% 2901 71020,875 61831,220 97.3% 147,819 61979,939 99.4%, 2992 71289,916 7,198,913 97.5% 174,050 72282,063 99,941 2993 79649,249 71417,427 97.1% 176,996 70594,333 99.441 2904 7,8990387 71677,415 97.3% 2271578 7,9941993 100.2% 2995 819672399 7,9941231 98.0% 382,236 8,2861467 102.7% 100 a 0 a E 0 a co C cc U L 0 U) r C) r LO 193' M r tD 193' r M L[] N V 00 o C) a o a o a N f� r V N M 00 M C) 00 M C) f� C) N 00 C) LO 0 C) � C) M M f� r M M M M Lc) N U-) C' 1 00 U") N C) tD r C 0 Q PI cr 00 00 P- q') � r I N N C; iQ r M C) C) r 4--6 0 C) f� r C) W Q`) f� Q`) C) N (D �: r C'r] (6 N V1 tD L7 qq r-- C) N N O N tD Q`) Oo M r 00 f�- 00 LO f� 00 00 qq M v C) �C] C) C) m Q N f� (7) M Ul r C) CT) C) (D r f� C. 1 N 00 LAD N C) N 75 (6 q'i 00 N f, M M f- t6 V C� td w 00 M C) C) r N E 8100 CD CD LO M v M LO N 00 M C D r w L Cd C) M W M CO M N N r r CJ) N 0 w N r M to N M C U V1 M C) C) 00 f� LO LO W w 00 v a Q`) a o a a o 0 0 N a, � L f�- f� CO r V CD f� 00 M 00 f� 00 w a) M C) LO C) C) M CD N V f` V V r,.- M r C) W M r r LO N C) N .E p 00 u 06 r u & N M C) C) f� w 00 M cr) C; C) r M x m C)WWMMMMr NM w (0 C ty M [� M M M N N r r 00 r N 'N cc r M (6 N N (II co N r 00 M 00 C) M W M Ul w a w o o a o a U �] C 0 J C) w M V N Iq 00 f� C) N f� N M CD M V Nr cn N r r LO M r r M r C3) r,,, C) LO C) C) Ul " C) C) m C N C) N u r C3) � 00 N 00 ail u w a) M C) 6 r v C � ,C 0 QLOMM MNCDCDMQ3f'-- L r M 0 V1 N C) LO to V M N r r r 00 M M N N r M t� N � C N }- c� .7 Y C Cc tf3 } ! 6C.I� } [f} } } } } V1 o C �U- cn o °-o�= '7 C -r— L N w C o �. Cc u� o�� m 3 ao U to U U c 0 _ UzIII J 0 C C N co �' W a0 E 0 E 03 4) U _� U N Q �) -0 CU ?C cu to Q C z U) 5 _'] . C L C (� a r° a a Q E o��� sa o > o � �' co z � a3 U,-oU o�. ��� o to 0 U) C U o 0 � CO a3 o �. � � (M x 'tn Q c a v CIO H U U L- (II Qy y N x (1) to LA U ]C - C Q} ,� .a) C is tIi o � r U � U U3 N L] 0- . to U }, C C E .� L T ,� �i (] 0 -p CL — 0 0 t3 U� C] cn o 0 0 .� o L. o .� a� o x }. cn Q �y z C C z ° a cn Z a aa) H a Z }; -°o Cv 0 o 0 3 a����a� N •N > as o �',�� •3 o� C) o o f "mom�a co C: cn C: W �' U 0 Ca Fu -6 -a � � � 03 -o u 0 E .> a� a ~ o o � -v •-- � a3 �, Qy -&-a rn 0 0} D] � � � �� 0 sa L... }' � C �t L C v °- 0 .. �' E E U a a� a__°i °} '� N U3 0 o �. �° CO 2 I- }. E a3 o r N c�i o �. .� o _ E }' co _ 5 -v 0] CL 0 o 0] a- p C 0 C� �] � �] (3 C a) a3 o ,E 0 o-6 ❑zcn�r��C7 =U m � L 0� 0 0- 0 o oCL 0 0 0� o zzz� - o ._ p o � L7 Ui ,'�U) U t3 a 0 a E 0 a co C cc U L 0 U) r C) r 0 0 0"T 0 r- r o 0 CD r 0 M r■- M N o M V MLoN00Co0r■ -CoN N0Cor�r%-M0r m Ca oP. Co r N C0 r 0 r Co r. 0 Co CD L6 L L N OD cn T-- M CO) M 0 1.['? V M M N r co G r N 0 N CD o M 0 0 r r r r 0 0 0 Co N W V M r o Co v v 0 Co N r C'7 d to LD r, r Q7 Q CID Cpr�Mrrr- qlqrr�qqr N00N0r"- 0r r� I<f] r� N cf7 � Co N rte- Co C0 0 M CD C0 0.7 o M tQ 0t, CDMCD[DMONr.N d d ci- L6 L6 NN C �j r v N(o L[] V M M CV N r o Q r N 0 N N N M CD CON r N r V o CD Co N Co M M r r 4 V M V V N 0 CID N r V CV) Oi 0 r r LD r WON N M w W N N V r r� CD l'- r"- N V r P► r N r r M CD o 0 0 Co r o M 0 0 r■- o M r o 0 01'- WNr■ -NN N00001"'-x[? co m — qf Co L6 L6 M CID Co r.► r% OD CD v r, " C0 r N pi 0 Lo N w V V N V N N r r r N 0 N 0 o"qr r o 0 r M r� M 1� Co N rte- CID M r W [0 U') N Co r N M r� t? r--7 r D7 0 C 0 CL 0 •2: {� C 0 CL E . �r- �o 24) EQ -o as z 0 m F- cv m e .L cu E cD m 0 M N n w '� D} 0� .c_v r-- .0 C E 5 .L E � � o � CD C ,� *c �, L o 'D 0 ca o o o� o o CD C L ca ; td GC w 0 0 < V) E U Ct 2 Ix w i a- 0) z c U) T- co v M M M N r 07 r� 0 N M N r r M N v!). 6o!} fa Eft 6% 61-)� C Lo CO r r 0 r 0 o r 0 r` Co r M CV r r C1 N N C 0 L 7+ L C 0 E C 0) rl-- co W 0 co 0 n`*- 0) ° N N r r N r 0.} 611). 61-> CD cv V L +Oa N r 0 Co o cow r- 0 CV cy r r N r C o G3 }' a- V). ��V). �61% > E U) V V CD CD M N L L o o Co C0 o N 0 N CV r r `+- c ++ 0 m U L m 47 �- NO,� E u� C c C � � C {Cj � ��E.N -00 V {� Q3 .0 C N N p Q C L C7 Q) [d v C r- 'a Co E •� C = CD 3 0 v Ca Co M v n L V N ' 0 {/) r- .-.. C 0 C 0 oo (3 0�0 d U C .� t� N V C .M.� CD v ,C !N V .N CD Co .. Qi L r ,C L L ca N °� vow 21 N U v d C p�j aL m o .. co L = o C3- C3 w o cc m o a tj L as Qy o co 0 � V o C:) � m -w ,tA � C� 0) moo° a °� 0 0 0 4'� � E r � p E C id N p 3 C !� co L �, 3, 14-6 + 7 o C C? Q� 0 o 0 Clq 0 +' �� CD E� � 0 a U° o a a Q � � � sz2it U) 0 T- N r- M M V o Co r N r- o o M N r N o N o 0 C OT-- o r,- o r M N V o 0 N 0 o c c6 N L [D CD M CD LD rl 141i CD r 0 Ld L L6 r r �j N N L a r r N L o o E ' r � V 'p r V W N N r Co 0 co N C c N 0 CO r- 00 CO V) Lo 0 1w CO Co 0) 0 0 0) Q L LL L L M M 4 pf c co `� r `w rte- CO o CO rte- Co ct] Co o CO V) o M IW r'► cn � o oar`Lo C CoN0NLi0W 0crag0LoLoCoC� � p N U- " " c CO N~ c N i- V VCD1w U')N1w rP.- rV Lo r■- 00Nr`4w Mr V �If M M r V r o M N r M o {gyp r N Lo r N C"7 .� r r` r WON N M w W N N V r r� CD l'- r"- N V r P► r N r r M CD o 0 0 Co r o M 0 0 r■- o M r o 0 01'- WNr■ -NN N00001"'-x[? co m — qf Co L6 L6 M CID Co r.► r% OD CD v r, " C0 r N pi 0 Lo N w V V N V N N r r r N 0 N 0 o"qr r o 0 r M r� M 1� Co N rte- CID M r W [0 U') N Co r N M r� t? r--7 r D7 0 C 0 CL 0 •2: {� C 0 CL E . �r- �o 24) EQ -o as z 0 m F- cv m e .L cu E cD m 0 M N n w '� D} 0� .c_v r-- .0 C E 5 .L E � � o � CD C ,� *c �, L o 'D 0 ca o o o� o o CD C L ca ; td GC w 0 0 < V) E U Ct 2 Ix w i a- 0) z c U) T- co v M M M N r 07 r� 0 N M N r r M N v!). 6o!} fa Eft 6% 61-)� C Lo CO r r 0 r 0 o r 0 r` Co r M CV r r C1 N N C 0 L 7+ L C 0 E C 0) rl-- co W 0 co 0 n`*- 0) ° N N r r N r 0.} 611). 61-> CD cv V L +Oa N r 0 Co o cow r- 0 CV cy r r N r C o G3 }' a- V). ��V). �61% > E U) V V CD CD M N L L o o Co C0 o N 0 N CV r r `+- c ++ 0 m U L m 47 �- NO,� E u� C c C � � C {Cj � ��E.N -00 V {� Q3 .0 C N N p Q C L C7 Q) [d v C r- 'a Co E •� C = CD 3 0 v Ca Co M v n L V N ' 0 {/) r- .-.. C 0 C 0 oo (3 0�0 d U C .� t� N V C .M.� CD v ,C !N V .N CD Co .. Qi L r ,C L L ca N °� vow 21 N U v d C p�j aL m o .. co L = o C3- C3 w o cc m o a tj L as Qy o co 0 � V o C:) � m -w ,tA � C� 0) moo° a °� 0 0 0 4'� � E r � p E C id N p 3 C !� co L �, 3, 14-6 + 7 o C C? Q� 0 o 0 Clq 0 +' �� CD E� � 0 a U° o a a Q � � � sz2it U) 0 T- T- co v M M M N r 07 r� 0 N M N r r M N v!). 6o!} fa Eft 6% 61-)� C Lo CO r r 0 r 0 o r 0 r` Co r M CV r r C1 N N C 0 L 7+ L C 0 E C 0) rl-- co W 0 co 0 n`*- 0) ° N N r r N r 0.} 611). 61-> CD cv V L +Oa N r 0 Co o cow r- 0 CV cy r r N r C o G3 }' a- V). ��V). �61% > E U) V V CD CD M N L L o o Co C0 o N 0 N CV r r `+- c ++ 0 m U L m 47 �- NO,� E u� C c C � � C {Cj � ��E.N -00 V {� Q3 .0 C N N p Q C L C7 Q) [d v C r- 'a Co E •� C = CD 3 0 v Ca Co M v n L V N ' 0 {/) r- .-.. C 0 C 0 oo (3 0�0 d U C .� t� N V C .M.� CD v ,C !N V .N CD Co .. Qi L r ,C L L ca N °� vow 21 N U v d C p�j aL m o .. co L = o C3- C3 w o cc m o a tj L as Qy o co 0 � V o C:) � m -w ,tA � C� 0) moo° a °� 0 0 0 4'� � E r � p E C id N p 3 C !� co L �, 3, 14-6 + 7 o C C? Q� 0 o 0 Clq 0 +' �� CD E� � 0 a U° o a a Q � � � sz2it U) 0 T- 0 T- cn V Q [}d C G? C L a� 0 o a a a a z Lri a Sri a �+ CD Lo r` a [d CO N CO r` L- qqr CD N d E C) a lq�r C) Lo Nr [d w ' a r M 0- cu [d a) to � N C) J C) cr7 a O7 cu N N 00 CD p~j �Q O7 r` r r` o � a o tp UC] N N N r CF) a r a CF) r 0-p L W N [d L 0 r cn N r N G? o cm 6!4 CD U? r cu o E M M M C [d N i � C >% o cu to cn V Q [}d C G? C L a� 0 o a a a a z Lri a Sri a �+ CD Lo r` a [d CO N CO r` L- qqr CD N d E C) a lq�r C) Lo Nr [d w ' a r M 0- cu [d a) to � N C) J °3 M M to a) 00 p~j 00 a o � a o M c"' C'r] -q r r Q] CD cd C4 0 0 C9 N N N 0-p N cn V Q [}d C G? C L a� 0 o a a a a z Lri a Sri a �+ CD Lo r` a [d CO N CO r` L- qqr CD N d E C) a lq�r C) Lo Nr [d w ' a r M 0- cu [d a) to � N C) J N [cd p~j 00 a o � a o M c"' C'r] -q N O7 r` N Ez Un N N N 0-p N [d L 0 r cn N r N C r0] LJ 6!4 cr) AD a PLC] M m C [d N r- N CD >% cu to �~C3 Q ti ao r` r` CL cu Q J 6g cn >% cn L 0] CL cu -0 F- a a a a a a a a c N cu 0 0] > cn Q] -0 r r Q7 r � (u C �� 0] r` N CD m cd c7 0 � o C ;a LZ C U3 [u -� � 6g CO 0 LL 'o _C61) cr) C Lo r` rn U l CD rn V) L] 0 J `L° ° - r` av v av ❑ C vi p ara N N N cn co cn V Q [}d C G? C L a� 0 o a a a a z Lri a Sri a �+ CD Lo r` a [d CO N CO r` L- qqr CD N d E C) a lq�r C) Lo Nr [d w ' a r M 0- cu [d a) to � N C) J L. CD >- N M '-�r LC] C) a a a V N N N N LI] CD C) CN i CY] 0 N c►i 0 CL w co .0 co C_ LL cu C Q a) .cn a) a) a E U cu C c0 r� V U L :3 r0 V C) T— o 00 a c7 r Cd C'r] -q N O7 r` N r` r` N N N 0-p r- [d L 0 r cn N r N C r0] LJ 6!4 L. CD >- N M '-�r LC] C) a a a V N N N N LI] CD C) CN i CY] 0 N c►i 0 CL w co .0 co C_ LL cu C Q a) .cn a) a) a E U cu C c0 r� V U L :3 r0 V C) T— C 16 C a L C ❑ I I-- a3 CU -0- C: o LL �td M L U � 0 V3 0 a) LL Z 4- 0 0 Of CD CD GQ q:t M Q7 r` r C{3 LO a r CD cq oQ a N CL CD CD r` CD CG C) 0] o a a o a] 144- co CD LO a M 0 av ao m r` CL ccxa v C ~ � a a a) a� L Q u N_ 00 M Lr) C*J 07 Ccn CD � C 00 cn C-4 co LO ti `C r` cq N_ r` -� CC] r N GQ � C CN M M C *4 o Z ca aaNOa `0 M M CO N ComCDLO CD D a 00 r a cn a ua M q:t cn r r r r N GC] LO r :t r-- r N Q7 co r-- M O CD M N CU 00 r r` av -4, r` av LO r M N M a N M M M cn v°a � a o 0 C) rn a a z Wj C4r ua a � cD av r` a ca CO ti CO r` v .4-If cv cv CL E a) 6c.� a a "Kt cn v r M Jco�c°•� :, ;v CL cu U C N co u7 r` a 14-If a co ti m r-_ V) M cu cm y r ti � CO -c C� M CO "4-,t 0 E vi cv ti 0 N N N N 75 ca a] C a� 0 69� rn y C'J M �C] C) o 0 0 co CD 0 N N N N cn U- Q N i a CV V] a a c U- C Q .U) C 0 s 0 L CL E 0 U c [L� W- 0 U v L 0 Irt Q Schedule 14 City of Salina, Kansas Direct and Overlapping Governmental Activities debt As of December 31, 2005 Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of the City of Salina bears to the assessed valuation of the overlapping entity. Source: Saline County Clerk 105 Net General Percentage Amount Obligation Bonded Applicable to City of Applicable to the J u rrisd iction Debt Outstanding Salina City of Salina Direct: City of Salina $ 28,774,792 100% $ 28,774,702 Overlapping: Salina Airport Authority 812201000 100% $1220,000 Saline County 885,000 75% 584,104 USD 305 78,100,000 93% 72,481,180 Total Overlapping Debt 87,205,000 81,345,284 Total Direct and Overlapping Debt 1151979,702 1101129,978 Per Capita Direct and Overlapping debt $ 21308.21 Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of the City of Salina bears to the assessed valuation of the overlapping entity. Source: Saline County Clerk 105 Cl) N •C � W L[i � C v -2� 75 •� � LL _ U) C U3 p c� F` a] U � M r 0cr) C7 O N CD N cr) N C) 0 N CD 0) CIO r- va o to Lc) r` c) o v00c N r� v°00;! o cvi L6 N .4i r- r Cd [D cQ r N cQ C7 r i I E N m 0 0 E vj !' 0 c E ° c m � a ❑ a) c va�i a m 0 0 0 E CL E m° DC � ti a�i N J v a a �, ❑ v N uH J J J CD a ❑ ❑ 0 � N LL r N CD o r-- r�- cr) N LL'i IT IT cr) o co r` v 0 r r-� 4T N L6 GQ CD r N co r LLi M N - 00 0 L I N r LO (D o ca co rn o Lo V o N N N o r M cQ r M cQ Lo 0 r M co N o M rl% LO p c r r'- N co r r� r M N r o N r r co c4 cn c N N co o rl% o r` co ca N M cQ V o N r` r vl� Lo GQ rl- - co v m N o cry m co N "It r N cn wi c N r- LC3 � LL'3 0 M v cn cn cn cn m N Cl v M o M co co r- N av cD o co co N cn v LO ( N iml cn Lo ti cn cl co cn CD r G Ln C6 co N [D ca o ca o cn LSD N cn cn QD c t Lo W vi r N LO LO LO Lo r-- co m r` Lri 06 0 cw W N c'7 r C r 0 CD N cn Q r CD o r` cD o 0 CD N cn m o V LO r ; " r� r C E E ❑ r ❑ E Q c t 'a l� •� .Q Q +• l� Q 4] Qom] E a] Qom] p cn C Q ❑ F- a (a L yr C Cr 4) N c c� .t yr L1� .N C 4i L v c� C C v c� c U U ti m tor C c� r v r Schedule 16 City of Salina, Kansas Pledged Revenue Coverage Last Three Fiscal Years Water /Sewer Revenue Bands (Including Kansas Water Supply Loan) Utility Service Less: Operating Net Available Fiscal Year Charges Expenses Revenue Principal Interest Coverage 2443 12,129,440 101882,725 11448,715 791,394 477,400 114% 2444 121361 , 877 19,554, 249 11707,628 9041935 542J722 118% 2405 12, 743,953 1 0,458,771 2,235,182 9411552 5421722 151% Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2006 107 OD Q Tl- Ca f` f` f` 00 UC] m 00 f` C) N --' r U] C p LI] qqr r r r` 00 C) LI] M M N M qt CO N r- �- a M E p v co 2 w cu .ca Co r UC] N C) O r M 'Tt O M D 00 _ U C N r` 00 to N �- � N Ca CY] r` 00 LC] O 00 O O7 00 N C y+ C 00 C6 O O C6 C= (Z5 (Z5 r C LL0 O N N N co m N co CY) CY) m {� � 0 N U Ca -ca . J U3 CO CO a.. [!3 v v v v v v v v v v Q1 E r` C0 LO C0 00 LO C0 O 00 'Tr E m CY) CY) CY) N CY) m � � - E cn N C Q CO _ CO cn of E 0 Co .3 C 0 CU N U C a E p� O O O O O o O O O a� Co f� c0 7- E O O O 00 OOOa C0 LO 'Tr LO O O Oa 'Tr O CD }' p r U LC] N Cv7 N Cn � C�7 � O -0 CO (i U N C C Q LC] O 00 m m to m LC] to a t„ j• j - - ' - LL Cp Cp Q Z C6 r` 00 N r` --Z 00 r Cv7 O 00 r` +r N Q (u `d C p [!7 r N CD O CD r N CY) CY) m M N to CY) CY) .� U C C �- �- �- r �- r r r r C C CU a) Qdc.� Ca C N dc.�- dc.� dc.�- dc.�- dc.�- dc.�- dc.�- dc.�- c_ n � CL c0 N O O O O a a O O O O Q3 CO �OJ E � O O 0000 O 00 v,•� = CO C UC] 00 00 UC] 00 LC] N Ca O CO Q 0 N N C- D O C CO CO 0 Q QD ❑ as U ;0 E a_ E 0 va m E N r` O Ca N LC] 00 m LC] � to .0 C Ca r r- LC] r` r N Ca O r` M O Ca CO Ca LC] M M �"' C • N `~ O Ca U C z V L L Ca L C] LC] LC] = N Q ca ' CO (n U C •� -CO a c }' pa 0 O a C!) ca U LO L ca L- O N CCO N E Y CO CO N C C C C O 'CO ' U Ca O7 r` O7 00 O7 M O •�- N O7 0 0 O M O � UC] 0 0 Ca Q7 Q7 Q7 Q7 0 0 O O O O ia) ca N U U 0 U •�- u7 •�- •�- •�- N N N N N N L � C =3 Cl E ' CO U U as CO Q. CO U a. OD Q Tl- Employer Tony's Pizza Service (Schwans) Salina Regional Health Center USD # 305 Exide Battery's Great Plains Manufacturing Phiilips Lighting Co. Lock/Line City of Salina Raytheon Aircraft Western Auto Total Schedule 18 City of Salina, Kansas Principal Employers Current Year and Nine Years Ago 1995 Source: Salina Chamber of Commerce 71987 27.3% 109 Employees 2;000 1,082 935 800 550 500 490 482 274 7,313 2005 Rank 2 3 4 5 5 7 8 9 Percentage of Labor Force 5.4% 3.5% 3.0% 2.6% 2.1% 1.9% 1.6% 1.5% 0.9% 23.4% Percentage of Type of Business Employees Rank Labor Force Frozen Pizza Manufacturing 2,003 1 5.8% Health Care 11300 2 4.4% Public School System 1,218 3 4.2% Automotive Battery Manufacl 754 5 2.6% Agrcultural and Landscaping 810 4 2.8% Fluorescent Lamps 575 5 2.0% Cellular Phone nsurance #NIA 0.0% City Government 554 7 1.9% Aircraft Manufacturing 493 8 1,7% Wholesale Supplier 280 9 1.0% Source: Salina Chamber of Commerce 71987 27.3% 109 Employees 2;000 1,082 935 800 550 500 490 482 274 7,313 2005 Rank 2 3 4 5 5 7 8 9 Percentage of Labor Force 5.4% 3.5% 3.0% 2.6% 2.1% 1.9% 1.6% 1.5% 0.9% 23.4% Schedule 19 City of Salina, Kansas City Government Employees by Function /Program Last Four Fiscal Years (excludes lemporarylseasonal employees) Source: Salina Human Resources Department 110 2002 2003 2004 2005 Governmental Activities: General government 19 19 19 18 Public safety 208 208 210 210 Public works 76 78 79 80 Public health and sanitation 3 3 2 2 Culture and recreation 45 48 48 48 Planning and development 23 23 24 26 Other (internal Services) 14 14 12 13 Total governmental activities $ Business -type Activities: Solid waste disposal 12 12 12 12 Water and sewer 73 73 73 73 Sanitation 19 20 20 21 Golf course 6 6 6 6 Total business -type activities 1=0 Total primary government Source: Salina Human Resources Department 110 Schedule 20 City of Salina, Kansas Operating Indicators by Function /Program Last Fiscal Year (information is not available for prior years) Formal Human Relations complaints processed Fiscal Year Business -type Activities: 2005 Governmental Activities: General government 887096 EMS runs billed 2,499 Job positions filled 1 # of applicants 6712,022 Public safety 240,599 Police Calls for service 34,938 Cases filed 12,611 Public works 81206 Loads of yard waste accepted 3,000 Utility Street cuts 285 Public health and sanitation 11,355 Interments 99 Culture and recreation Bicentennial Center events 2,301 Convention and Trade Shows 22 Entertainment and Sports 37 Other 396 Bicentennial Center event attendance 2541408 River Festival Buttons sold 21,007 Arts Infusion student participation 171702 Horizons Grants awarded 121$54,652 Museum Gallery attendance 31455 Shelter reservations 11480 Atheletic field facility permits 11275 Recreation program registrations 91700 Tournaments /teams 241362 Planning and community, development Building inspections performed 41800 Building /stand alone permit applications 2,601 Human Relations rapid response cases 611 Formal Human Relations complaints processed 23 Business -type Activities: Solid waste disposal Landfill tonnage accepted 887096 Recycled waste diversion (tons) 34 Water and sewer Meters read 240,599 Accounts Billed 236,759 Account initiates /terminates 5,679151597 Collection notices served 81206 Wastewater stoppages 272 New meter installations 400 Average daily consumption (Thousand Gallons) 11,355 Peak daily consumption (Thousand Gallons) 6,592 Sanitation Special Pickups 2,301 Sanitation customers served 1721109 Golf course Rounds played 44,775 Source: City of Salina Departmental Annual Reports 111 Schedule 21 City of Salina, Kansas Capital Asset Statistics by Function /Program Most Recent Fiscal Year (Includes captalized assetts only) 2005 Governmental Activities: Public safety Buildings 11 Motor Vehicles 67 Public works Buildings 69 Construction Equipment 41 Motor Vehicles 47 Levee mileage 21 Bridges 24 Signalized Locations 79 Flood control structures 24 Streets (centerline miles) 282 Public health and sanitation Buildings 3 Construction Equipment 2 Motor Vehicles 4 Culture and recreation Buildings 6 Construction Equipment 19 Motor Vehicles 35 Swimming Pool 1 Parks (number /acreage) 261690 Neighborhood Spraygrounds 3 Planning and development Buildings 1 Motor Vehicles 2 Other Buildings 1 Motor Vehicles 4 Business -type Activities: Solid waste disposal Buildings 10 Construction Equipment 12 Motor Vehicles 6 Water and sewer Buildings 116 Construction Equipment 10 Motor Vehicles 41 Water lines (miles) 315 Sewer lines (miles) 215 Sanitation Buildings 1 Motor Vehicles 15 Golf course Buildings 6 Construction Equipment 14 Motor Vehicles 2 Greens (including practice) 26 Sources: City of Salina Fixed Assets System City of Salina Departmental Records Information prior to 2005 is not available in comparable format. 112 GOVERNMENTAL AUDIT SECTION CITY OF SALINA, KANSAS Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2005 Department of Homeland Securi Assistance to Firefighters Grant Federal Passed Through the Kansas Highway Patrol: Federal Grantor /Pass- Through CFDA 97.004 .31429 Grantor /Program Title Number Expenditures Department of Housing and Urban Development Passed Through Saline County: HOME Investment Partnerships Program 14.239 $ 2501000 Fair Housing Assistance Program 14.401 123,744 Passed Through Kansas Housing Resources Corporation: Emergency Shelter Grants Program 14-231 39,253 Total Department of Housing and Urban Development 412997 Department of Homeland Securi Assistance to Firefighters Grant 97.044 240,984 Passed Through the Kansas Highway Patrol: State Domestic Preparedness Equipment Support Program 97.004 .31429 Passed Through the Kansas Adjutant General: Public Assistance Grants 97.036 191895 Passed Through Saline County: State Homeland Security Grant 97.067 280,644 Total Department of Homeland Security 5441952 Department of Transportation Passed Through the Kansas Department of Transportation: State and Community Highway Safety 20.600 14,799 Institute of Museum and Library Services Museum for America Grants 45.301 65,000 Total Expenditures of Federal Awards $ 110371748 The accompanying notes are an integral part of this schedule. 113 CITY OF SALI NA, KANSAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2005 General The accompanying Schedule of Expenditures of Federal Awards presents the expenditures of all federal financial assistance programs of the City of Salina, Kansas. All expenditures of federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies are included on the schedule. 2. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented in accordance with accounting principles generally accepted in the United States of America. 114 CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2005 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Material weakness(es) identified? Reportable condition(s) idenfified that are not considered to be material weaknesses? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs: Material weakness(es) identified? Reportable condition(s) identified that are not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133? Identification of major programs: Unqualified Yes X No Yes X None reported Yes X No Yes X No Yes X None reported Unqualified Yes X No CFDA Numbe Name of Federal Program or Cluster 97.044 Assistance to Firefighters Grant 97.057 State Homeland Security Grant Dollar threshold used to distinguish between type A and type B programs: Auditee qualified as low -risk auditee? 115 $300,000 Yes X No CITY OF SALINA, KANSAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) For the Year Ended December 31 , 2005 Section II - Financial Statement Findings None Noted Section III - Federal Award Findings and Questioned Costs None Noted 116 LO SINGLETON WEBB & WILSON P R O F E S S I O N A L A S S O C I A T I O N CERTIFIED PUBLIC ACCOUNTANTS 900 Massachusetts, Suite 301 Lawrence, Kansas 66044 -2868 Phone: (785) 749 -5050 Fax: (785) 749 -5061 E -mail: Iswwcpa@lswwcpa.com Iswwcpa.com David A. Lowenthal, 'CPA Thomas E. Singleton, CPA Patricia L.. Webb, CPA Thomas G. Wilson, CPA Audrey M. Ddernnann, CPA Abram M. Chrislip, CPA Members of American Institute and Kansas Society of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE wiTH "GOVERNMENT AUDITING STANDARDS" Mayor and City Commissioners City of Salina, Kansas We have audited the basic financial statements of the City of Salina, Kansas as of and for the year ended December 31, 2005, and have issued our report thereon dated May 12, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in "Government Auditing Standards'" issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under "Government Auditing Standards ". However, we noted matters involving the internal control over financial reporting that we have reported to the City's management in a separate letter dated May 12, 2006. This report is intended solely for the information and use of the mayor, city commission and management and is not intended to be and should not be used by anyone other than those specified parties. 6eou���J . 0401�j &)� Professional Association May 12, 2005 117 LOWENTHAL SINGLETON WEBB & WMSON P R O F E S S I O N A L A S S O C I A T I O N CERTIFIED PUBLIC ACCOUNTANTS 900 Massachusetts, Suite 301 Lawrence, Kansas 66444 -2868 Phone: (785) 749 -5050 Fax: (785) 749 -5061 E -mail: [swwcpa@lswwcpa.com lswwcpa.com David A. Lowenthal, CPA Thomas E. Singleton, CPA Patricia L. Webb, CPA Thomas G. Wilson, C PA Audrey M. Odermann, CPA Abram M. Chrislip, CPA Members of Americar Institute and Kansas Society of' Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Mayor and City Commissioners City of Salina, Kansas Corn liance We have audited the compliance of the City of Salina, Kansas with the types of compliance requirements described in the "U.S. Office of Management and Budget (OM 13) Circular A -'133 Compliance Supplement" that are applicable to each of its major federal programs for the year ended December 31, 2005. The City's major federal programs are identified in the Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in "Government Auditing Standards ", issued by the Comptroller General of the United States; and OMB Circular A -133, "Audits of States, Local Governments, and Non -Profit Organizations ". Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2005. Internal Control Over Compliance -rhe management of the City of Salina, Kansas is responsible for establishing and maintaining effective intemal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on intemal control over compliance in accordance with OMB Circular A-1 33. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the intemal control over compliance and its operation that we consider to be material weaknesses. 118 This report is intended solely for the information and use of the mayor, city commission, management and federal awarding agencies and should not be used by anyone other than those specified parties. 6-4 OuAe�l Professional Association May 1 2, 2006 119