Audit - 2006 SW Report
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
Solid Waste Form 1290
CHIEF FINANCIAL OFFICER'S LETTER FROM LOCAL GOVERNMENT
To: Kansas Department of Health and Environment
Attn: Bureau of Waste Management
I am the Chief Financial Officer of
City of Salina
a local government organized and existing under the laws of the state of Kansas. This letter is in support of
this loea/government's use oftha local government financial tesl to prOVide financial assurance for the closure,
postMclosure care, corrective action costs, or any combination of these, at the municipal solid waste landfill
identified in the following numbered paragraphs.
1. This local government is the owner or operator of the following municipal solid waste landfill for which
financial assurance for closure, post-efasure care, corrective action costs, or any combination of these,
is demonstrated according 10 the provisions in KAR. 26-29-2110:
City of Salina Municipal Solid Waste Landfill
40292 Burma Road
Salina, KS 67401
Closure $2,493.012 Posl-Closure $"3.558.922
Permit No. 1 It I,
Corrective Action $
{list additional sites and estimates on a separate sh~et idcnlJfied as "Attachment A"J
2. This local government also provides financial assurance for environmental obligations, or provides
environmental guarantees, to another local government entity through a financial test procedure at the
following sile and jurisdiction (if none, enter "None"):
NONE
Post~Closure $
Permit No.
Correctlve Action $
Closure $
Jurisdiction
[list additional sites, estimates and jurisdictions on a separate sheet identified as "Attachment 8"1
Page 1 of 4. Chief Financial Officer's Leller - Form SW1290 - August 9, 1999
This local government financial test is based upon the financial conditions existing as of the close of the latest
completed fiscal year ending on 12/31/2006
The accounting books and records of this local government are maintained according to the requirements.of
generally accepted accounting principals (GAAP) for governments, or on a prescribed basis of accounting that
demonstrates compliance with the cash basis and budget laws of the state of Kansas, which is a
comprehensive basis of accounting other than GAAP for governments.
In support of this local government's use of financial test. I enclose the following documents:
(a) Comprehensive Annual Financial Report (CAFR), or ather audited Annual Financial Statements for the
latest completed fiscal year;
(b) Auditor's Special Report; and
(c) Calculation arid accumulation details supporting financial test amounts derlve-d from the CAFR or other
audited annual financial statements.
I certify that this local government:
(a) Has no general obligation bonds outstanding which are rated lower than Moody's Baa or Standard &
Poor's BBB;
(b) Is not currently in default on payments of interest or principal on any general obligation bonds;
(c) Ha's not operated at a deficit exceeding 5% in each of the two latest completed fiscal years;
(d) Has passed the financial ratio test or the bond rating test speCified for the use of local governments
according to the provisions in KAR. 28-29-2110; and
(e) Has not used the local government financial test to provide financial assurance for closure, post-
closure, corrective action costs, or any combination of these, in excess of 43% of revenues as defined
in KAR, 28-29-2110.
ISI
Name Rorlnpy Fr~n
Title Director of Finance
Dale 12/17/2007
Page 2 of 4 - Chief Financial Officer's Letter - Farm SW1290. August 9, 1999
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
LOCAL GOVERNMENT
FINANCIAL RATIO TEST
Sum of the Environmontal Obligations Assured by tho Test
1.
Total from the Chief Financial Officer's LeUer
$ 6.051.9H
Ratio Test Factors from tho CAFR or Annual Financial Statements
[Attach details of calculation or accumul.8tion of amounts from CAFR or AFS]
2. Total Annual Revenues $ 60.342,148
3. Total Annual Expenditures $ 47.682.374
4. Cash plus Marketable Securities $ 27.669.774
5. Annual Debt Service $ 4,213,997
6. Long-Term Debt (Issued in the Current Year) $ 10,085,000
7. Non.Routine Capital Expenditures $ 16,477,661
[Omit Unos 6 and 7 if GAAP for Governments accounting and reporting method is used]
Financial Ratio Tost Calculations
9.
Environmental Obligations I Total Annual Revenues
(Line 1 divided by Line 2 = < 0.43)
Total Annual Revenues r Total Annual Expendi1ures
(Line 2 divided by Line 3 = > 0.95)
Cash and Marketable Securities f Total Annual Expenditures
(Line 4 divided by Line 3 = > 0.05)
Annual Debt Service I Total Annual Expenditures
(Line 5 Divided by Line 3 = < 0.20)
12. Long-Term Debt I Non~Routine Capital Expenditures
9.65%
8.
]26.55%
10.
58.03%
11..
8.84%
(Line 6 divided by Line 7 = < 2.00)
[Omit Une12 if GAAP for Governments accounting and reporting method is used]
Page 3 of 4 - Chief Financial Officer's Letter - Form SW1290 - August 9. 1999
KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT
BUREAU OF WASTE MANAGEMENT
LOCAL GOVERNMENT
BOND RATING TEST
Sum of the Environmental Obligations Assured by the Test
1.
Total from the Chief Financial Officer's Letter
$
6.0,I.G14
Ratio Test Factors from the CAFR or Annual Financial Statements
{Attach details of calculation or accumulation of amounts from the CAFR or AFS]
2.
3.
Total Annual Revenues
$ 60.342.148
$ 47.6R?174
Total Annual Expenditures
Bond Rating Test Calculations
4.
Environmental Obligations J Total Annual Revenues
(Line 1 divided by Line 2 0 < 0.43)
Total Annual Revenues I Total Annual Expenditures
(Line 2 divided by Line 3 0 > 0.95)
G 6,~
5.
126.55%
Bond Rating
6. Amount. Description, Issue Date and Due Dale of Rated General Obligation Bonds
6,545,000 2007-A Due 10-01-2027
7.
Currently Assigned Bond Rating
Aa3
8.
Raling Agency
Moodys
[Attach written evidence of the current bond rating)
Page 4 of 4 - Chief Financial Officer's Letter - Form SW1290 . August 9, 1999
David A. Lowenthal, CPA
Thomas E. Singleton, CrA
Patricia L. Webb, CPA
Thomas G. Wilson. CPA
Audrey M. Odermann, CPA
LOWbrrrHAL SINGLETON WEBB & WILSON
PROFESSIONAL ASSOCIATION
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 30 I
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
E-mail: lswwcpa@lswwcpa.com
Abram M. Chrislip, CPA
Angela R. Motsinger. CPA
Brian W. Nyp. CPA
Members of American Institute
and Kansas Society of
Certified Public Accountants
Independent Accountant's Report on Applvinq Aqreed Upon Procedures
Mayor and City Commission
City of Salina, Kansas
We have performed the procedures enumerate below, which were agreed to by the City of Salina, Kansas, solely to
assist the City in meeting the requirements of the Kansas Department of Health and Environment (KDHE); as specified
in KAR. 28-29-2110, for the year ended December 31, 2006. The City is responsible for the subject matter of this
engagement. This agreed upon procedures engagement was performed in accordance with standards established by
the American Institute of Certified Public Accountants. The sufficiency of these procedures is the responsibility of the
specified users of the report. Consequently, we make no representation regarding' the sufficiency of the procedures
described below either for the purpose for which this report has been requested or for any other purpose.
The procedures that we performed were as follows:
1. We compared amounts and tested the computations to determine that the amounts for total annual revenues, total
annual expenditures, cash plus marketable securities, annual debt service, long-term debt issued in the current year,
and non-routine capital expenditures, as stated in the Financial Ratio Test section of the chief financial officer's letter
dated December 17, 2007, were derived from the audited annual financial report of the City of Salina, Kansas, for
the year ended December 31,2006, and were adjusted according to the definitions in K.A.R. 28-29-2110(b).
2. We tested the computation of the ratios stated for liquidity and debt service and the use of funds in the Financial
Ratio Test section of the chief financial officer's letter dated December 17, 2007, and found them to equal or exceed
the requirements of KAR. 28-29-2110(c)(2).
3. We tested the computation of the ratio of total operating revenues to total operating expenditures, and the ratio of
the sum of closure and post-closure costs to total operating revenues, and found them to equal or exceecHhe
requirements in KAR. 28-29-2110(c)(5)(C) and K.A.R 28-29-2110(f)(1)(A) or (8).
4. We noted compliance with KAR. 28-29-2110(c)(3) in the preparation of the annual financial statements of the City
of Salina, Kansas, for the year ended December 31, 2006, in conformity with generally accepted accounting
principles for local governments.
5. We noted compliance with K.A.R. 28-29-2110(c)(5)(D) in that the report of independent certified public accountants
dated December 10, 2007, included a statement to the effect that the basic financial statements for the year ended
December 31, 2006, "present fairly, in all material respects:' the transactions and balances of the City of Salina,
Kansas, on the basis or-accounting described.
We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on
the City of Salina Chief Financial Officer's letter to KDHE dated December 17, 2007. Accordingly, we do not express
such an opinion. Had we performed additional procedures, other matters might have come to our attention that would
have been reported to you.
This report is solely for the use of the City of Salina, Kansas, and KDHE, and should not be used by those who have not
agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.
d~/..L~, ulM- O/-W;J
Professional Association
December 17, 2007
2006
20C6
Expenditl,Jres
CJpi1l1
SpCl~111 Projlcll
GOllurJ1Fund RlvlnulFundl OoblnrvlcClFulld fund
Tolal E)lpemlilUro~ from Ihe Combined
Statemenl of Revonuo~, Exponditure~, and
Chango~in F'und aalances (Sloll1ml1nt2l
le~s Specir'~ally Idonlifiablll CilpilillOuUily5
Not Govumm,mtal FundS Exp\lnd,!un;u
2~,~62,29S
1,375,636
n,OBS,657
from lho Combined slalomenlof Revenues. EnUrprlSCl
Eli;ponsosendchangosinNelAssols Funds
Tolal Qpefaling Exponses 01 Enlorpriso Fund5
bl1lorodl1p(ll~alion
Total NlIll-opl1ralingfOVenUO$(nel)01
EnlorpriSIlIUnds(ifne\l"tive)
Total Non-oporating revonuos (nlll)ollnlelOal
Service funds (ifnll\lalive)
1J,~73,521
(~46,864)
10,627.207
2,511.317
IU09.690
lnlelrnll SClrvl~o
lunds
-
Total Expenditures
NIlIPropriolaryFundsExpendilurlls!Exponsos $ 13,026,651 $
Revenuas
From lhl1 COmbined Stalomenl 01 I~ovonuos,
Expondilurlls,andChanglls In Fund bolanco
jSlatemon12)
Tolal Rllvonucs, Go~ernmenlal FuM~
From tho Combir1ud slatomunt 01 Re~onuos. Enlorpriso
Expenses and chllngos in NelA~su15 Funds
25.739.~53
25,739,453
12,50~,661
12.504.661
$16,601,659_
1n1llrnalSorvice
funds
TotlllOperatinll Rovonucs clEnl(,!fprise Funds
TotoJNon.oporaling rcvenues (not) or
Entorpnse tUnds (ffposilivl;!)
TotaINon"oporalingrovonuos(not)Qllntornal
Sorvicolunds[ilposilivlIl
TolalProprlll!ary Fund Ravonue
Tolal R~v~nuo JII lundl
CurrontOPonlin;Balln~o
Cuh Ind Cerrtnl Inv~otmtnls
General Fund
Special Revenue funds
Dcbl Servico funds
Enlerprisefunds
InlllmalServicoFunds
TolaICnhandlnyulmonl.;
'Cllioi IndMii~,JnformJtrQnror2000
1.(alSumordosvroCQslsassuredbylinllncial $
1.(blSvm<llposl-closvfoCOSlsassurodbylir1i $
" c Sum Df CIoSW/II and pOII-dosufo [;os~ ilSl $~
2 lol"IRevenuos
3. TolalExpllndilufcS
4 CushllfldCurrllnllnvesunenls
5. OeblSorvico on Long lorm Debt (f'wm Sill
6 CaplliltExpllnditures
7. Lonlllerm Debt issued
Closur6/POsIClesureasaporcentotrllYonUQ
(UnIl1c/lino2)(Muslbelllssthan43%)
RavQnuostl!vido<lbyoxpondilufllsllfcaler
lhan.95
Cash oJlVldud by Expendl\ufosgrllalerlhan
S.
Ollbl Servi~edivKled by lola)expend,turll.
less lhan 20%
Is IMQ WIT!) debl divided by Cllpilalle~s 1han
2.0
S 16,501.658
2006
6,6~4.326
5,820,6J2
735,232
11,252,112
3.217.470
27,659,n~
~
2,265,374
3,556.1122
5.625,295
60,3~2,146
47,682,314
27,569,n~
4,213.997
16.477.661
10,065.000
126.55%
5l103'1',
684%
-
102,644
102,64~
AltornJ!lVCl
"
2.266.374
3,558,922
5.825,296
6O,J~2,H6
47,682,374
27.659,774
4.213,997
16.477,561
10.085,000
9.65%
9,55'1'.
3.459,170
o
3459,170
2,606,090
2,606,090
"
SelectedAlll;1maUVe
S 2,265,374
$ 3.556.922
$ 5,825,2~6
60,3~2, 148
47.682.374
27.669,77~
4,213,997
16,477,li61
10.C85,OOO
567.221
2006
Total,
$38,546,672
5 J.6n.g55
$34,655.717
513.473.521
(446,864)
$13,026.657
$47,682,374
567.221 S41,637,645
9,65%
-:::::.'."'''%
BBA'I'.
0.61
$18.704,503
5 60.342, 1~B
$12,658.774
~olid waslU flf1"nci~1 "~SUranCll$ b'lla.even .Is
12/2112007
CDIVI
345 Riverview, Suite 520
Wicnita, Kansas 67203
tel: 316660-6700
fax: 316Ui4-3025
May 14, 2007
Mr. Michael Fraser
General5ervices Director
Director of Public Works
City of Salina
412 East Ash Street
Salina, K.S 67401
Subject:
2007 Closure and Post-closure Cost Estimates
Dear Mr. Fraser:
Attached is Camp Dresser & McKee Inc: s (CDM) estimate of 2007 Closure and Post-closure
costs for the City of Salina Municipal Solid Waste Landfill (MSWLF), KDHE Permit #144. The
attached forms were provided by KDHE and are required in all submittals related to financial
assurance plan updates and operating permit renewals. Specifically, these should be
submitted to KDHE by rune I, 2.006.
Please call me at (316) 660-6700 if you have any questions regarding these costs.
Very truly yours,
ff~/Jto--
Danita S. Boettner, P.E.
Project Engineer
Camp Dresser & McKee, Inc.
cc: Ron Rouse (City of Salina)
P:\Salina\56456 - '2007 Servic:esITasl< 2 - Clo5Ure Casl Prep\2007_sal;na C<lst doc
consulting. engineering. construction. operations
CLOSURE COST ESTIMATE WORKSHEET FOR MSW LANDFILL FORM 1
OWNER:
City of Salina. KS
PERMIT NO.
144
CURRENT RENEWAL YEAR:
2007
Total Volume of Site:
24.114.000
CU. YDS.
TOTAL PERMITTED DISPOSAL AREA:
280
ACRES
CONVERSION FACTOR: 4840.02 SQ. YDSJACRE
AREA CURRENTLY OPEN:
29
ACRES
CONVERSION FACTOR: 0.3333 YDS.lFT.
LARGEST AREA TO EVER BE OPEN AT ANY TIME:
29
ACRES (use this area for estimating closure costs)
IT
Low Permeability Soil La er
Preparation of IlUldfill to receive cover (final grading)
nera! fill to reach surrounding gmdes
Clay-compacted, off-site
'In -compaclcd. on-site
Low Permeability Soil Layu Subtotal
Geomembrane and Urainsl'::c Layer
Drainage material - sand
Drdinage material. geogrid
omemblane
Geomembrane and Drainage Layer Subtotal
Protective Soil (Ve etative) La l."r
oil-{)ff.site
Soil--on-site
Seeding Ilnd mulching
ProCc-ctive Soil (Vegetative) Layer Subtotal
Erosion Control
UA 1T
UNIT
l'
S 53_75
$1.17
S 10.63
S 5.67
l'
S BT01A
crraccs
nlssditching/channels
iprap ditching/channels
Erosion Control Subtotal
GasS stem
as vents, 29 II of vents, 50' average depth
Passive S stem
Passive well head flare
Active S stem
Flare,8TU/hour
ncillary gas uipment
Gas System Subtotal
Professional Services
Engineering (Bid Documents)
opographic and Boundary Survey
Engineering (Construction Oversight)
Prorcslllooul Services Subtotal
29
1]2933
N/A
70,]80
ACRE
CU. YD.
CU. YD.
CU. YD.
$1,559
$199,892
$ N/A
$397,921
;{m::;;,.:
:.'.m:. !~t:l::;~~@~}
, ~..,,:.,~.,~;.. ~."
-'-'::::';?
iMNN:::Wlwn
JfMt:::;:
1450
29
\<~.- .,. ._. :!:@e);$#;~ :,.:{'{t:gg~qn:~ )WfMfMN 'W.
:.'.;.0-;.;.'."-.,,......,--.
;:;:::':':::~;<~i:'i
Total Closure Cost Subtotal
Miscellanevus
10% Administration and Contin ene (fotal Closure Cost Subtotal;ll 10%)
$226,637
Mlsc.Subtotal
TOTAL CUJUl.ENT CLOSURE COST S2,493.012
Contact Person/Cost Estimate Prepared By: Danita S Boettner P.E. Camo Dresser & McKee Inc.
Phone Number: 316-66o-ii700
Lastedrt dale: May 9,2006 dsb
Note: Forms 1. 2, and 3 musl be submitted althe time of renewal.
POST.CLOSURE COST ESTIMATE WORKSHEET FOR SMALL ARID MSW LANDFILL FORM 2
OWNER:_City of Sailna, KS
PERMIT NO._144
CURRENT RENEWAL YEAR:_2007
Total Volume of Site:_24,114,OOO_ CU. YDS.
TOTAL PERMITTED DISPOSAL AREA:_260_ ACRES
(use this area for IIsUmating pOllt-<:loIlU", cost)
CONVERSION FACTOR: 4640.02 SQ. YDS.lACRE
CONVERSION FACTOR: 0.3333 YDS.lFT.
ITEM
Cover Repair for 5% o{the Landfill Area
S%ofthelandfillarea. 14 Acres
QUANTIfY
UNrrs
UNIT COST
COST
SUBTOTALS
oil--off.site
oil-on-sitc
Cover Replllr Subtotal
Seeding (Reseed 5% of the Landfill Area)
5%oflhelandlil1arca, ]4 acres
ceding and mulching
dingSubtolal
N/^
22,587
CU. YD.
CU. YD.
,
,
5.2
1.7
S N/A
S39,979
:,;:~:g;,ti:%m::~:f>:
:~:,wnnt:'
....-, ...., }:}dni'~
-.'--:-' ;.~;:;;::';:':'-:':;:':~
.-:::,::;:::<:::~:::,;":,:",~:,:,~:,,,:,;.
:'<,-.-?t:;:::..-., ,,'.
]4
ACRE
,
1,500.00
$21,000
,-";i;::::::,::::<::~ ".;.:.::" .'.,
"':""'''-' n:nww: -:;:,::/LAfr;:::.
::~~t:t::t:%~:WtJYi4??nq;:x: "'-"':':'>
:.:>:.:-:-;,-
'"C''.'''''
$2[,000
Leachate Collection
gcneration rate 12 800 gal.llle/yr. (588,800 gallyr) I
peration and maintcfWlcc ofleachllte collection system
achate hauling distance 2 miles, 196 1# trips/year
Leachatetru.tment
achate management and treatment on sitc
Lcachate sampling
aohatclUlalysis
Luehute Collediun Subtot.lll
Landfill Gas Mooitorin
uarterly methane monitoring al site boundary
Landfill Gas Moaitoriag Subtotal
Landfill Gas Extraction System
cinstallation or methane vents (l%orthc totillsystcm Ien!l:th/yr.)
pcration and maintenance of gas e:df1lction system
Landfill Gall Extraetiop SYlltem Subtotal
Groundwater Monitoring
18 II wells in the II proveds stem (no additional wells sam led annually)
Sampling personnel b,bOl (2 events/yeat min.)
ample event mobilization (2 evenl.....year min.)
nalytiea] costs (2 cventslycarmin.)
onitering wcllmaintcnllJlee
omtnriu8 w!;l1 replatCment (662totallin. ft. ofBlI groWldwlltCf wdh)
Groundwater Monitoring Subtotal
Ins ections and Recordkee in~
Inspet:lions and recotdkceping
Inspectiolls llnd Recordkeeping Sublot..1
Remedial System Operations
medial system opeflttions
ernedi.llSystern Ollerlltion5Subtotal
fo:Stimated AnnulIl Posl-Closure Cost (sum o[all subtotals above)
Administration and Contingenc
dmiobtra.tion llJld Contingency (Total Estimated Posl-<'''IoSun: Co'>1 x 100/.
dmlDblration lIad Contingency Sublotal
N/^ Y" NI $3,000
]96 tr; $100 $]9,600
588,800 gal. , 0.0024 $1,4]3
N/^ Lump Sum , 1,000. $N/A
] (rip , 500.00 $500
] event $ 500.00 '500
Mt,:W/H-:Nt :~,:,:~; ::JWW}ii'fJ%tp:~.n;@n@t{
:.:.-,.,,-',
mmmw
event
],250.00
",:::::;,:":,,.
::>:,,:~,,::-;
.,.._",..."",',.
'.,.:.-"".":..;.".,,.,<<.,
'.....'..:~:'::~::::.,:
~;:::~Wt?J}iJ\n:~:-",.:.:,.,::~:::.:, ::":~:::';;:::,::;,~"
&0 h.. $ 35.00 S1,800
'00 mile , 0.40 ,"0
.16 sample , 220. $7,920
" well , 13.00 $234
22 well $ ]00.0 $2,200
jN?ttt.::~wm~t\~/ :{%W,: ~':'"::i::~:': :rmntt/4t. ::::'~;::~WiWW ::;:~::~::;:~:;:;:
Lump Sum $
500.00
$500
t:\W/Mi?/
~{;:;{inVn "__."" '{~'b ,Hk
\;.~;:;~;\:;g~:::;;;
:):;:dt,~;:r Y,
S500
:-;,-:, :/:){m::m~;:;;;:'-"'-
so
$107,846
,';;""'.;.'-'--.'-'.',-.-.-,.,.,..,.".'..
,;:;;:::~~::::::.,;}::,;;::;~.;:::::-,: 'W.
$10,7115
OTAL ESTIMATED ANNUAL POST-CLOSURE COST
ESTIMATED 30 YEAR POST-CLOSURE COST
5118,631
53,558,922
Contact PersonICo:ol E:otimate Prepared By:
Phone Number: 315-660--6700
Danita S. Boettner P.E Camo Dresser & McKee Inc
t No leachate collection system in original landfill; annual leachate collection calcul<Hcd for Ce!ls I through 4, approximately 46 acres.
2 Leachate hauled in quantities of3,OOO gal/trip.
lost od~ dato: May 9, 2006 dsb
ESTIMATED LIFE WORKSHEET FOR SMALL ARID MSW LANDFILL FORM 3
OWNER:_City of Salina, KS
PERMIT NO._144
YEAR: 2007
CONVERSION FACTOR: 4840.02 SQ. YDS.lACRE
CONVERSION FACTOR: 2000 LBS.fTl
CONVERSION FACTOR: 0.3333 YDS.lFT.
Landfill Site Data OUANTlTY UNITS
rrotal Site Area 640 ACRF.5
folal Area Permitted tu Receive Waste 280 ACRES
Tota) Area Currently Onen 29 ACRES
olal Area That Received Final Cover 83 ACRES
Identify Cells That Received Final Cover by Name or Phase AREA UNITS
L Name or Phase: Orip"inal {Non-Subtitle Dl Arca 62 ACRES
2. Name or Phase Celli and Portion of Cell 2 17 ACRES
3. Name or Phase ACRES
4. Name or Phase ACRES
Life of Celli Landfill Dat. OUANTITY UNITS
Annual Average Tonnage Received (A) I 99,835.65 Tons
Averape Comnacted Densitv ofWaslc 8 944.5 Ih,/CU. YD.
Soil-to-Waste Ratio (C) 1 0.167
Calculation for Annual Volume QUANTITY UNITS
Average AnnUli! Volume (CU. YDS.) - I(A 'X lOOO)fBl ~ 11 + q 246,709 CU. YDS.
fotal Volume Canadtv ofOripinal Site 24 144000 CU. YDS.
Total Remainine: Volume Caoacit\' of Site 17753710 CU. YDS.
.
Remainine: Life of Landfill 72 YEARS
Conts.ct Person/Cost Estimate Prepared By:
Phone Number: 316-660~700
Oanita S. Boettner P E. Camo Dresser & McKee Inc.
I Dnsed on actual 2005 quantity of waste received and airspace consumed.
l Soil used for daily and intermediate cover occupies landfill airspace. The soil-to-waste ratio accounls for the landfill
space occupied by soil. Most soil-to-waste ration cstimalC5 range from 1;3 (33%) to 1:10 (10%). KDBE recommends 1:6
(16.7%).
lasl edil dale; May 9, 2006dsb
Note: Forms 1, 2, and 3 must be submitted at the time of renewal.
Franz, Rod
From:
Sent:
To:
Subject:
GID - Moody's Investors Service [epi@moodys.com]
Tuesday, June 05, 2007 8:58 AM
Franz, Rod
Salina (City of) KS
MOODY'S ASSIGNS Aa3 RATING TO CITY OF SALINA'S (KS) $6.545 MILLION GO BONDS, SERIES 2007-
A, AND MIG 1 RATING TO CITY'S $5.825 MILLION GO TEMPORARY NOTES, SERIES 2007-1
SALINA HAS $47.87 MILLION OF TOTAL RATED DEBT, INCLUDING CURRENT OFFERING
Salina (City of) KS
Municipality
Kansas
Moody I s Rating
Issue
Rating
General Obligation Temporary Notes, Series 2007-1
Sale Amount $5,825,000
Expected Sale Date 06/11/07
Rating Description Bond Anticipation Notes
MIG 1
General Obligation Improvement Bonds, Series 20Q7-A
Sale Amount $6,545,000
Expected Sale Date 06/11/07
Rating Description General Obligation Unlimited Tax
Aa3
NEW YORK, June 5, 2007 -- Moody1s Investors Service has assigned a Aa3 rating to the City
of Salina's (KS) $6.545 million General Obligation Internal Improvement Bonds, Series
2007-A, and a MIG 1 rating to the city1s $5.825 million General Obligation Temporary
Notes, Series 2007-1. Concurrently, Moody's has affirmed the Aa3 rating on the city's
$33.27 million of outstanding general obligation debt, including the current bonds.
Proceeds from the bonds and notes will finance various infrastructure improvements
throughout the city. Both issues are ultimately secured by the city's general obligation
unlimited tax pledge. The MIG 1 rating is based on the city's history of market access
which includes approximately 20 note and bond offerings since 2000, as well as the credit
fundamentals inherent in the long term Aa3 rating, which include the city's substantial
tax base and role as a regional economic center; well-managed financial operations
supported by healthy reserves; and an average amount of rapidly retired debt.
SUBSTANTIAL TAX BASE ACTS AS REGIONAL ECONOMIC CENTER
Located in Saline County 95 miles north of Wichita (general obligation rated
Aa2 with stable outlook), the City of Salina!s substantial $2.7 billion tax base has grown
at a steady pace averaging 4.5% annual growth over the past five years. Located at the
intersection of 1-70 and 1-135, the city serves as a regional retail, commercial,
industrial, and medical hub for the largely agricultural communities of north central
Kansas. Management reports that the city's retail operations draw on an 8 to 10 county
region extending west serving approximately 1.4 million residents. The Salina Airport
Industrial Center is home to 70 business and organizations, with an aggregate 4,600
employees. Currently enjoying a 92% occupancy rate, officials estimate that over 400
developable acres remain. Tenants include the Kansas National Guard and a growing Kansas
State University extension campus. Officials expect future economic growth to be driven by
aircraft maintenance and related technology services. The city's population has increased
in recent decades:
the 2000 census population was 8% greater than the 1990 census population, and the 2005
estimated population of 47,533 was 4% greater than the 2000 census population. Income
levels are below state and national medians and have declined in recent decades. Moody's
believes the city's tax base will continue to grow at a modest pace, with its position as
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a regional retail hub providing a level of economic stability.
WELL-MANAGED FINANCIAL OPERATIONS SUPPORTED BY HEALTHY RESERVES
Moody's expects the city's financial health to remain satisfactory, supported by well-
managed operations and sound reserves which off-set a dependence on economically sensitive
sales tax receipts. In fiscal 2005, the city recorded a modest $244,000 operating
shortfall, reducing General Fund equity to $7.1 million, or a sound 30.8% of General Fund
revenues. Management reports an unaudited cash basis surplus of $900,000 in fiscal 2006
and essentially balanced operations budgeted in fiscal 2007. Historically, the city has
maintained General Fund balances near 30% of revenues and has a formal policy of keeping
an unreserved General Fund balance of 15 to 20% of revenues. City officials do report the
possibility of increasing subsidization of operations at both the city-owned golf course
and the Bicentennial Center, however, Moody's does not expect transfers from.the General
Fund to either operation to significantly impact future financial flexibility.
Typical of Kansas cities, sales tax receipts represent the city1s primary revenue source
comprising 47.6% of fiscal 2005 General Fund revenues. Several different sales taxes are
collected including a 1% Countywide Local Option Sales Tax and a 0.5% Citywide Local
Option Sales Tax, both of which flow into the General Fund, are used for general
operations and do not sunset. Both sales taxes have increased annually except for modest
declines in 2003, with average annual increases of 3.1% (citywide) and 1.7% (countywide)
over the past five years; officials report that both countywide and citywide sales tax
receipts are experiencing strong year to date growth from 2006 levels.
Providing additional flexibility, voters recently approved a 0.25% citywide sales tax that
expires in 2010 and is dedicated to capital projects.
AVERAGE DEBT LEVELS; RAPID PRINCIPAL AMORTIZATION
Moody's believes the city1s debt levels will remain manageable given rapid principal
amortization and continued moderate tax base growth. At 1.4% and 4.3%, respectively, the
city's direct and overall debt burdens are average.
The city1s overall debt burden is driven in large part by the significant debt levels of
Saline County Unified School District 305 (general obligation rated AI). Principal
amortization is rapid, with 82% of general obligation debt retired in ten years. The city
generally issues a combination of long term and short term debt twice per year to fund
projects outlined in its Capital Improvement Plan. Going forward, the city plans to borrow
approximately $17 million through 2012 to fund the city's capital plan.
KEY STATISTICS
2000 Census population: 45,679 (an 8.0% increase from 1990)
2006 full value: $2.7 billion
2006 full value per capita: $59,174
Per capita income as a % of state: 90.7%
Median family income as a % of state: 91.6%
Saline County unemployment rate: 3.9% (February 2007)
Fiscal 2005 General Fund balance: $7.1 million (30.8% of General Fund
revenues)
Debt burden: 4.3% (1.4% direct)
Principal amortization (10 years): 82%
post-sale general obligation debt outstanding: $40.57 million (includes bonds and
temporary notes)
ANALYSTS:
Thomas P. Schuette, Analyst, Public Finance Group, Moody's Investors Service Rachel
Cortez, Backup Analyst, Public Finance Group, Moody's Investors Service
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CONTACTS:
Journalists: (212)
Research Clients:
553-0376
(212) 553-1653
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