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
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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
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�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
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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
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Management discussion and Analysis
This section of the report contains an overview and analysis of the City of Salina's financial statements for the fiscal
year ended December 31, 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
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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
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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
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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
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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
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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
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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%
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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
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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
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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.
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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.
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Professional Association
May 1 2, 2006
119