Audit Report - 2008
I-
I
I
I
I
I
I
II
I
I
II
I I
I
I
I
I
I
I
I
I
/&.11- JfIMtlt:lpJ
S~Ai'l!9rt
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
SALINA AIRPORT AUTHORITY
A Component Unit of the
City of Salina, Kansas
For the Fiscal Year Ended December 31, 2008
Prepared by the Management
ofthe
Salina ~rport Authority
SA LINAA;rport
~1/tdkvu4~
SALINAA1lJJ1!J
J~e.J.. +tt
~
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA AIRPORT AUTHORITY
TABLE OF CONTENTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2008
INTRODUCTORY SECTION
Letter of Transmittal......................................................................................1-1 0
Principal Officers............ .... ...... ............ ........... ................ ............................. .11
Authority Staff Members ............... ................ ........ ........ ............................. ...12
Organizational Chart ........................ .............. ... ........... ..... .............. ......... ......13
Salina Municipal Airport Aerial View...........................................................14
FINANCIAL SECTION
Independent Auditors' Report ........................................................................15-16
Management's Discussion and Analysis ......................................................17-23
Statements of Net Assets .. ........ ....... ..... ...... ..... .... ..... ....... ....... ........ ............. ..24-25
Statements of Revenues, Expenses and
Changes in Net Assets ............................................................................. ..26
Statements of Cash Flows (Direct Method) ...................................;...............27-28
Notes to Financial Statements.............. .................. ...... ............... ......... ..... ... ..29-44
Supplemental Information
Schedules of Revenues, Expenses and Changes in Net Assets ..................45-47
Capital Expenditures................................................................................... 48-49
General Obligation Refunding Bonds - Series 1999-B...............................50
GeneralObligation Improvement Bonds - Series 2001-A..........................51
General Obligation Improvement Bonds - Series 2002-A..........................52
General Obligation Improvement Bonds - Series 2005-A .........................53
General Obligation Improvement Bonds - Series 2007-A.........................54
General Obligation Temporary Notes - Series 2007-1...............................55
Special Assessment Debt-Street and Utility Improvement.........................56
Special Assessment Debt-Sanitary Sewer Extension .................................57
Financing Lease Payable................................ .............................................58
Insurance in Force ..................... .......... ...... .......... ...... ..... ............ ....... ..... ... ..59
ii
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
STATISTICAL SECTION
Statistical Table of Contents .......................................................................61
Total Annual Revenues, Expenses and Changes in Net Assets History........62-63
Change in Cash and Cash Equivalents History..............................................64-65
General Obligation Debt Service Coverage....................................................66
Capital Expenditure History ...... ...................... ........... ................... .............. ..67
Revenue Bond Coverage................................................................................68
Local Government Mill Levy Rates, Direct and Overlapping.......................69
Principal Customers. ....... ........... ......... ...................... ......... .... ... ... ....... ... ..... ...70
Mill Levy Revenue .... ........ ...... ..... .......................... ............. ........ ..................71
Air Traffic, Fuel Flowage, and Enplanement Trends ....................................72
Major Employers. ................ ................................... ........... ........ ....... ............. 73-74
Saline County Population and Demographic Statistics .................................75
Saline County Employment Data.. ........................ ............... ...... ............... ..... 7 6
COMPLIANCE
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....... .................................. .................. 77-78
Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control Over Compliance
In Accordance with OMB Circular A-B3 ...........................................79-80
Schedule of Expenditures of Federal A wards................................................81
Notes to Schedule of Expenditures of Federal Awards ................................82
Summary Schedule of Prior Audit Findings .................................................83
Schedule of Findings and Questioned Costs .................................................84
Corrective Action Plan .. ... .... ..... ............. ..... ............ ....... ....... ... ..... ....... .........85
I
II
II
I
I
II
I
1,-
I
I
I
I
I
I
I
I
I
I
I
Introductory Section
During 2008, the Salina Airport Authority constructed a modern 69,000-square-
foot hangar and office complex. Hangar 600 totals 41,400-square-feet with
22,600-square-feet of office/shop/multi-purpose space and 5,000-square-feet of
customer service center.
The hangar can accommodate aircraft with 1 OO-foot wing spans and 28-foot
tail heights.
Corporate neighbors include Hawker Beechcraft Corp. and CAV Aerospace,
Inc.
/~. Aviation
~L AI Service
~~ IYICenter
~ ~.
"Where Business Takes Off"
I
I
I
I
I
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SA LINAA irport
,4~
Chairman
Julie Sager Miller
VIce-Chairman
Jeffrey R. Thompson
~=I
Treasurer
Dr. Randy Hassler
Past Chairman
Eric R. Hardman
Executive DIrector Timothy F. Rogers, A.A.E.
Mar. of Administration and Finance Michelle R. Swanson Mar. of Operations David "Gunner'" Wiles Mar. of FacUlties Kenny Bieker
Board Attorney Greg A. Bengtson
June 17,2009
Salina Airport Authority Board of Directors
3237 Arnold Ave.
Salina, KS 67401
To the Board of Directors of the Salina Airport Authority:
The Comprehensive Annual Financial Report (CAFR) of the Salina Airport Authority (the "Authority")
for the fiscal year ended December 31, 2008 is hereby submitted in accordance with the Kansas Statutes
Annotated (K.S.A. 27-324). As required by the statute, the City of Salina will be furnished copies of the
Authority's 2008 CAFR. Responsibility for both the accuracy of the data presented and the
completeness and fairness of the presentation, including all disclosures, rests with the Executive Director
of the Authority. To the best of our knowledge and belief, the data as presented is accurate in all
material aspects, that it.is presented in a manner designed to fairly set forth the fiscal position and results
of the operation of the Authority as measured by its financial activity, and that all disclosures necessary
to enable the reader to gain maximum understanding are included in the report.
This CAFR is presented in accordance with generally accepted accounting principles (GAAP) and
pursuant to K.S.A. 27-324, an audit of the books, accounts and financial statements has been completed
by the Authority's independent certified public accountants, Clubine and Rettele, Chartered. The
independent audit is in accordance with the Kansas Municipal Audit Guide. the Government Auditing
Standards issued by the Comptroller General of the United States, and the provisions of the Office of
Management and Budget Circular A-B3, "Audits of States, Local Governments and Nonprofit
Organizations" .
GAAP requires that management provide an overview and analysis to accompany the financial
statements in the form of a Management Discussion and Analysis (MD&A). It is recommended that this
letter of transmittal be read in conjunction with the MD&A, which can be found immediately following
the report of the independent auditor in the Financial Section of this report.
ORGANIZATION OF THE REPORT
The Authority applies the standards for preparation of local government [mancial reports recommended
by the Government Finance Officers of the United States and Canada (GFOA). The Authority's 2008
Comprehensive Annual Financial Report is presented in four sections:
1
2
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
Introductorv Section - contains this letter of transmittal, a list of the Authority's
principal officers, a listing of Authority staff members, an organizational chart, and an
aerial photo of the Salina Municipal Airport and Airport Industrial Center.
Financial Section - includes the independent auditors' report, Management's
Discussion and Analysis (MD&A), the Authority's 2008 financial statements and the
required supplemental information.
Statistical Section - includes selected fmancial and demographic information, which
highlights economic and demographic trends.
Compliance Section - includes reports concerning the Authority's compliance and
internal control over fmancial reporting and compliance and internal control over
compliance with requirements applicable to administering federal awards programs.
REPORTING ENTITY
The Salina Airport Authority is a body corporate and politic. The Authority was created by the City of
Salina in April 1965 (Sec. 4-16, Salina City Code) pursuant to the authority granted by the City by the
surplus property and public airport authority act of the State of Kansas (K.S.A. 27-315 et seq.) The
Authority was created for the purpose of accepting as surplus property portions of the former Schilling
A.F.B., which was closed by the United States Department of Defense in June 1965. By quitclaim deed
the Authority received over 2,900 acres of land and numerous buildings for the purpose of operating and
developing the Salina Municipal Airport and the Salina Airport Industrial Center. The Authority is
managed and controlled by a five-member Board of Directors appointed by the Salina City Commission.
The Board appoints the Executive Director, who is the chief executive officer of the Authority. The
Executive Director hires the remaining employees of the Authority. The Executive Director and his staff
of nineteen employees manage and operate the Salina Municipal Airport and the Salina Airport
Industrial Center.
The Salina Municipal Airport is the only commercial service airport serving Salina/Saline County and
the 22-county area, which comprises North Central Kansas. The Airport also services the corporate,
business, private aviation and flight training needs of industry, business and individuals in the area. The
Airport is also used by Kansas State University at Salina (KSUS). The campus of KSUS is located
adjacent to the Airport. The college offers degrees in professional flight training, airframe and power
plant maintenance, and avionics technology.
The Salina Municipal Airport and Airport Industrial Center is home for 80 businesses and organizations.
Forty-five of the businesses and organizations are tenants of the Authority. One of the primary functions
of the Authority is to facilitate the continued growth of jobs and payroll at the Airport and Airport
Industrial Center. The Authority works in partnership with the City of Salina, Saline County and the
Salina Area Chamber of Commerce for the retention of existing business and industry and the
recruitment of new business and industry.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
ECONOMIC CONDITIONS AND OUTLOOK
Local Economv
The Salina/Saline County economy has continued to demonstrate economic strength, as compared to
other regions of the state. In fact, Salina is the employment center for a large 13-county labor pool of
nearly 44,000 individuals. At the end of2008, the Saline micro area unemployment was at 3.7%. Even
during these times of economic challenges, the area's unemployment rate (5.6% - April 2009) has
remained below the State and National average. Salina's visitor count during 2008 is estimated at over
600,000. Lodging revenue reached a record high of over $19 million. Growth in the areas of
manufacturing, transportation, finance, real estate, insurance, services and retail trade, confirm Salina's
position as one of Kansas' strongest regional economic centers. Collectively, Salina retail sales are
pushing above $900,000 million and towards the $1 billion threshold annually.
Salina is the trading center of a 24-county area in north central Kansas. In the past year, retail sales
increased by more than 4% year over year. Recent retail sales activity in Salina increased at a faster
pace as other areas were declining. Salina has a 1.485 "pull-factor" reflecting the overall strength of the
community as a regional retail draw. Major retail firms opening or expanding in recent years include
Kohl's, Petco, Old Navy, Hobby Lobby, Logan's Roadhouse and Ashley's Furniture Store.
Economic Condition of the Airoort and Airoort Industrial Center
As of December 31, 2008, over 80 businesses and organizations at the Salina Municipal Airport and
Airport Industrial Center employed over 4,000 employees with a combined payroll in excess of $150
million.
Future Economic Outlook
The future economic outlook for both Salina and the Authority continues to look favorable. Continued
growth in service, retail and manufacturing sectors is expected. The Salina Area Chamber of Commerce.
forecasts that approximately 700 new jobs per year will be added to the economy over the next three to
five years.
Salina Municipal Airport businesses inCluding CA V Aerospace, Kansas State University at Salina,
America Jet at SLN, and Hawker Beechcraft Corporation continue work on facility expansion plans.
Salina Airport Industrial Center businesses including Geoprobe Inc., Schwan's Food Manufacturing Inc.,
and the Kansas Army National Guard at Salina, also continue to work on facility expansions.
Collectively, these expansions will result in additional jobs and payroll.
The Salina Airport Authority in partnership with the Salina Area Chamber of Commerce, the City of
Salina and Saline County, continue to work and expand on economic development programs that
include web based building and site directories, electronic newsletters, trade show participation and
expanding contacts through the Kansas Department of Commerce.
3
4
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
INITIATIVES AND DEVELOPMENT
Salina MuniciDal Airoort (SLN) Airoort Ooerations. Maintenance and DeveloDment
CA V Aerospace expands
The Salina Airport Authority has been working with CA V Aerospace to support the company's growth
at the SLN Aviation Service Center. In March, CA V leased the entire 40,000 square-foot Hangar 509.
CA V Aerospace also announced in 2008 that it had the contracts for the Cessna 400 and Cessna Caravan
TKS deicing projects.
Kansas Highway Patrol Expands
Kansas Highway Patrol, Troop T relocated from a portion of Hangar 509 and signed a lease to occupy
the entire Hangar 506-1. Having a standalone hangar better enables KHP, Troop T to support law
enforcement and serve the citizens of North Central Kansas.
SAA Board of Directors Approves Chamber Economic Development Services Agreement
The Salina Airport Authority Board of Directors approved the 2008 SAAlChamber Economic
Development Services Agreement. Some of the economic development plans include new business
attraction, expanding and growing existing business and improving the quantity and quality of the
workforce.
Terminal Drainage Project Completed
The Terminal Drainage Project was completed, which includes a new drainage ditch on the south side of
the terminal building and a new drainage structure constructed under the existing terminal building
walkway. The completion of the Terminal Drainage Project will help to prevent flooding of the terminal
building in the future.
Airport Perimeter Fence Repaired
Over 5,000 linear feet of airfield perimeter fencing that was damaged in the May 2007 storms was
repaired.
Airport Perimeter Road Repaired
Repairs from the May 2007 storms included 8,000 linear feet of road aggregate surfacing, 9,000 linear
feet of re-shouldering, 120 linear feet of 36" reinforced concrete pipe and 8 36" end sections.
TSA Signs Lease for New Office Space
At the request ofthe Transportation Security Administration, the Airport Authority designed a new
office space for TSA's staff of passenger security screeners.
America Jet Renews Lease
The Airport Authority board approved the lease renewal agreement that renews the America Jet lease for
another five years. America Jet was also awarded the Defense fuel contract. The Airport Authority is
proud to have America Jet asa continued valued customer.
Geoprobe Extends Lease Option
The lease option for Geoprobe Systems for two parcels of land totaling 23.9 acres on the west end of
Wall Street was signed and approved.
I I
I
I
I
I
! I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
Dyrsmith, LLC Leases Space
Dyrsmith, LLC, d/b/a Precision Works Mfg. entered into a lease agreement for Unit F of the Salina
Development Center.
Mill Levy Maintained
The Salina Airport Authority has once again maintained its mill levy for 2008-2009 at the rate of2.877
mills. This mill rate has been in effect since 2006 when it came down from a higher rate that was
previously in affect.
FAA Airport Improvement Projects No. 27
The first phase of AlP Project No. 27 of Taxiway Alpha's rehabilitation project was completed. This
project consisted of south Taxiway A repairs through Taxiway B.
FAA Airport Improvement Projects No. 28
AlP No. 28 (Alpha Taxiway from the 35 approach to Taxiway B, including taxiway B) has been
substantially completed with a new mill and inlay.
FAA Airport Improvement Projects No. 29
AlP No. 29 (Taxiway A from just north of Taxiway B up to and including Taxiway C) continues to
progress with lighting and shouldering as weather permits.
M.J. Kennedy Air Terminal Improvements
A new HV AC system was installed in the south lobby and new tile was also installed in the main lobby
restrooms. A new roof will be in place before the end of 2008.
Hangar No. 600 Construction
The Airport Authority's new $6.1 million, 69,000 sq. ft. hangar/office/multi-purpose complex was
substantially complete at the end of2008.
Scheduled Air Service - Great Lakes Replaces Air Midwest
Great Lakes Airlines established service at SLN using the two-year Essential Air Service subsidy. Great
Lakes Airlines flies to both Kansas City and Denver from SLN, with several flights a day.
SLN Aviation Service Center - Facilities and Infrastructure
The civil design work has started for the facilities and infrastructure ofthe SLN Aviation Service Center.
BWR is the firm that has been approved by the Airport Authority Board of Directors for the civil design
work.
SLN Aviation Service Center - Marketing and Recruitment
Marketing and recruitment efforts will continue to be coordinated with the Salina Area Chamber of
Commerce and the Kansas Department of Commerce. Key to our efforts will be the Airport Authority's
Aviation and Aerospace recruiter, James Gregory.
5
6
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
Self Service A vgas
A self-service avgas system has been installed. The AirPort Authority is working on requests for
proposals as to what company will be operating the system. The system should be up and running in
2009.
Hawgsmoke 2008
This event enabled SAA to demonstrate its ability to support large-scale military training developments.
Hawgsmoke is the biennial bombing and tactical gunnery competition and reunion of the A-lO
Thunderbolt II community. Active duty, guard and reserve squadrons from across the country and globe,
sent teams to compete in this competition. The 442nd Fighter Wing from Whiteman AFB base chose to
host this event at the KSLN because of its excellent amenities and community. Airport Authority staff
worked for two years to coordinate this event with the staff of the 442nd and make the event a success.
Airport Security
Making all gates double card readers instead of a magnetic loop enhanced gate security. Security risk
areas were assessed and steps were taken to make risky areas more secure. Tenants were and continue to
be educated on the importance of airport security. Gate by building no. 939 was moved so that the
fenced area now encompasses the building.
Airport Safety
Airport staff engaged in a live exercise to increase awareness of how to respond to a potential accident
or disaster. All maintenance and ARFF staff are trained in CPR and certified. All ARFF Staff have
participated in all required Part 139 training.
Pumphouse No. 305
Completed a phased repair of pumping and piping equipment for all tWelve (12) 25,000 gallon
underground fuel storage tanks and a standby generator for the pumphouse was acquired and installed.
Airoort Industrial Center Ooerations. Maintenance and Development
Foreign Trade Zone Application
The Airport Authority's FTZ application was submitted and includes SAA owned and additional
properties that are contiguous to the Salina Municipal Airport. The FTZ Board is limiting FTZ general
purposes zone expansions to acreage that can be activated in a timely manner. The Salina Airport
Authority's FTZ general-purpose zone is scheduled to be activated within one year of approval.
Great Plains Joint Regional Training Center Growth and Development
Airport Authority staff continued to support the Adjutant General's efforts to advance the mission goals
of the Kansas National Guard and the Great Plains Regional Training Center.
Kansas National Guard
Airport Authority staff oversaw the completion of a new metal blast booth enclosure for the Kansas
National Guard's Readiness Sustainment Maintenance Site (RSMS) located on property leased from the
Authority to the State of Kansas. The project was 100% funded through the State of Kansas and the
Authority received a 7.5% administrative fee for overseeing the project.
II
II
I
I
I
I
I
I
I
I'
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
Bud2et. Finance and Administration
2006- Temporary Note Redemption
With the sale of the SAA's Building No. 217 to the State of Kansas, early in 2008, the SAA was able to
redeem the 2006-A Temporary General Obligation notes and reduce long-term debt by $2.1 million.
Accounting Standards and Practices
During 2008, the SAA continued to implement and insure compliance with new and all applicable
Governmental Accounting Standards Board (GASB) statements.
The Airport Authority's external auditing fIrm conducted an audit and expressed an unqualifIed opinion
on the Authority's 2007 fInancial statements. No instances of noncompliance material to the fmancial
statements of the Authority were disclosed during the audit. In addition, the auditors did not identify any
defIciencies in internal control over financial reporting that were considered to be material weaknesses.
Quarterly Budget Reviews
At the end of each calendar quarter, staff conducted a detailed review of all budget line items and the
fInancial performance of the SAA. This review provided the ability to measure progress on priority
projects and make adjustments when necessary.
2008 Economic Impact Report
The SAA conducted an economic impact analysis of the Airport and Airport Industrial Center by
collecting actual data from all 80 businesses and organizations. The detailed and complete response
from our businesses provided a clear assessment of information including total number of employees,
total payroll, visitor activity and spending. In addition, 2008 data was collected and analyzed from
Kansas State University at Salina and the Kansas Army National Guard.
The data was reviewed and further analyzed by Wichita State University's Center for Economic
Development and Business Research (CEDBR). The fmal report prepared by CEDBR provided a
comprehensive look at the direct and indirect economic impacts of the Airport and Airport Industrial
Center on Salina, Saline County and the State of Kansas. The CEDBR report will be used extensively
during 2009.
Risk Management
The SAA successfully mitigated claims and transferred risk as appropriate throughout the year as
Airport events were held and day-to-day business at the Airport and Airport Industrial Center was
conducted. Out of the five property and general liability claims fIled, only one resulted in a paid claim
which was under $1,000.
All repair work was fInalized during 2008 that was required as a result of the two 2007 spring storms
that caused signifIcant property damage. All grant and administrative documentation for project
funding was fmalized and closed out during 2008. The Authority received $179,237 in property
insurance proceeds and secured $138,067 in FEMA funds to restore and rebuild damaged roads and
other property.
7
~
8
I
I
I
I
I
I
I
I
I
I'
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
On June II, 2008, another storm caused nearly $20,000 in Airport property damaged. The SAA
completed all necessary repairs to restore facilities and received $7,500 in FEMA funds and $8,780 in
insurance proceeds.
Airport Rules and Regulations
During 2008, the SAA prioritized a complete review and update of the Airport Rules and Regulations.
SAA staff, in cOrUunction with the Authority's legal counsel started from scratch to develop a set of
rules and regulations suited to current times. The process included a five- member work group that was
asked to review all provisions for applicability and reasonableness.
The result was the adoption of a new set of rules and regulations that conforms operations at the Salina
Municipal Airport with current airport compliance, safety, security, environmental and operational
standards and practices. In November of 2008, the SAA Board adopted the Rules and Regulations and
they were approved by the City Commission on November 17, 2008.
Environmental - Former Schilling AFB Project
The Salina Public entities ended the calendar year prepared to enter into fiscal settlement negotiations
with the United States Department of Justice. Successful settlement negotiations will enable the Salina
Community to receive sufficient funds to proceed with site cleanup.
Caoital Financial Plannine:
Throughout the year, the Authority staff worked on the development of a five-year capital
improvement program. All projects included in the plan are designed to meet the objectives as set
forth in the Airport's 1991 Master Plan. A significant portion of the funding for the capital
improvement projects will come from the Authority's entitlement dollars under the Federal Aviation
Administration's (FAA) Airport Improvement Program. It is anticipated that the Federal share of the
identified projects range from 85% to 95% of the total project development cost. All projects under
this five-year capital improvement program are subject to FAA review and approval. A significant
capital planning tool is the Airport Layout Plan (ALP). During 2006, the Authority's ALP was
updated for planned and future improvements.
During 2009, the Authority intends to redeem a portion ($3.9 million) of the outstanding 2007-A
Temporary notes with permanent financing through the issuance of General Obligation Bonds and
issue $4.2 million in new debt to fund a portion of the Authority's 2009 capital improvement
program. Subsequent to the end of 2008, Moody's Investor Services reviewed and upheld the Aa3
rating on the new debt as well as the outstanding General Obligation debt ofthe Authority.
The effect any capital improvement program will have on future operating budgets is evaluated at the
time a specific project is authorized by the Authority and is undertaken on a cost-benefit analysis.
All current authorized capital projects scheduled for completion in 2009 have their projected
revenues and expenses incorporated into the.Authority's 2009 operating budget.
I
II
,
II
I I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
INTRODUCTORY FY 2008
FINANCIAL CONTROLS
The Authority follows generally accepted accounting principles applicable to governmental unit
enterprise funds. Accordingly, the fmancial statements are prepared on the accrual basis.
Management of the Authority is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the Authority are protected from loss, theft, or misuse and
to ensure 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 requires estimates and judgments by management.
An annual budget is prepared in accordance with the Authority's By-laws. However, the Authority is
specifically exempt from the budget laws of the State of Kansas (K.S.A. 27-322) and the Authority is not
required to demonstrate statutory compliance with its annual operating budget. Accordingly, budgetary
data is not included in the accompanying financial statements.
CASH MANAGEMENT
All cash temporarily idle during 2008 was invested by the Executive Director of the Authority in short-
term investments to attain the highest possible return consistent with the Authority's liquidity needs. All
investments are in compliance with K.S.A. 12-1675 which controls the investment of public funds by
Kansas governmental units.
RISK MANAGEMENT
The Authority is exposed to risks of loss associated with the operation of a public use airport and the
operation of an airport industrial center. To handle the associated risks of loss, the Authority uses
available tort liability legislation and purchases the appropriate types of insurance coverage. It is the
policy of the Authority to eliminate or transfer risk of loss where possible.
The Kansas Tort Claims Act (K.S.A. 75-6101 et seq.) generally limits tort liability for Kansas
governmental entities. The maximum liability for claims as specified by the Act is $500,000 for any
number of claims arising out of a single occurrence or accident. For wrongful acts, Kansas
governmental entities or their employees are exempted from liability.
The Authority carries $500,000 of comprehensive general liability insurance which matches the limit
established by the Kansas Tort Claims Act. During 2008 the Authority carried $30,968,341 of insurance
on airport commercial properties. The Authority also acquires construction builders' risk policies for all
major construction projects or requires evidence of coverage from the contractor.
The Authority's commercial property insurance included $1,765,779 in loss of rents coverage. All
contractors and lessees are required to carry amounts of property insurance with limits and deductibles
approved by the Authority. A sc~edule of insurance in force at December 31,2008 is included in the
Supplemental Section of this report.
9
10
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I'
I
I
I
INTRODUCTORY FY 2008
In addition, the Authority uses various risk management techniques. All contracts and leases are
reviewed by the Authority's legal counsel. All contractors and subcontractors are required to submit
evidence of insurance coverage naming the Salina Airport Authority and the City of Salina as named
additional insured.
ACKNOWLEDGEMENTS
The support of the Authority's Board of Directors has been instrumental in the preparation of this report.
The Board has been actively involved in the preparation and review of this report and is committed to
responsible and progressive financial reporting.
)
Also acknowledged is the assistance of the Authority's auditor, Clubine and Rettele, Chartered, the
Authority's accounting advisors, Harrison & Arnett, Chartered, Saline County Clerk's Office, Dennis
Lauver, President of the Salina Area Chamber of Commerce, Rod. Franz, Director of Finance for the
City of Salina, the University of Kansas Institute for Public Policy and Business Research and the
Kansas Department of Human Resources Labor Market Information Services, in the preparation of this
report.
T1Y submitted,
TU:uiliYF~
Executive Director
Salina Airport Authority
~'-~
Michelle R. Swanson
Manager of Administration and Finance
Salina Airport Authority
cc: The City of Salina Board of Commissioners
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA AIRPORT AUTHORITY
PRINCIPAL OFFICERS AS OF DECEMBER 31.2008
BOARD OF DIRECTORS
Eric R. Hardman
Julie Sager Miller
Jeffrey R. Thompson
Troy Vancil
Stephen C. Ryan
Chairman
Vice Chairman
Secretary
Treasurer
Past Chairman
AUTHORITY'S COUNSEL
Greg A. Bengtson
Clark, Mize & Linville, Chartered
Salina, Kansas
AUTHORITY'S BOND COUNSEL
Gilmore & Bell
Kansas City, Missouri
AUTHORITY'S FINANCIAL ADVISOR
George K. Bawn & Company
Kansas City, Missouri
AUTHORITY'S AUDITOR
Leslie M. Corbett, C.P.A.
Clubine & Rettele, Chartered
Salina, Kansas
11
SALINA AIRPORT AUTHORITY
Staff Members as of December 31. 2008
ADMINISTRATIVE STAFF
Timothy F. Rogers, A.A.E.
Michelle R. Swanson
David "Gunner" Wiles
Kenny Beiker
Laura E. Robertson
Donald C. Kneubuhl
Kasey L. Windhorst
Brenda Gutierrez
Executive Director
Manager of Administration and Finance
Manager of Operations
Manager of Facilities
Marketing and Public Relations Specialist
Manager of Special Projects
Executive Assistant
Administrative Assistant
FACILITY MAINTENANCE and OPERATIONS
Loren Carleton - Team Leader
Gary Hansen
Kim Colby
Billie Snoody
Rob Pejsha
Dale Mattison
AIRCRAFT RESCUE AND FIREFIGHTING and SAFETY and SECURITY
David Nease - Team Leader
Ron Boyd
Matthew Rittle
Andrew Harper
Alan Mason
David Clark
12
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
l~ I:
1::CIO 0
III 0 III '0
it .s::.o ,~ m
o<'!. iii 'E
1:- I/) E
OM - 0
,- .. 0
"II 0
lll,g m
';: ~ I: ~
h..;i"i II
~~ ~ 0
~, III
00 C3 .~
iii
I/)
I
I
I
I
I
I
I
I
I
I
I
,....O)OQ)T""
i~i~~
S~~~~~
.... I I I I I
(,)lnco.....(I)c:o
~SZ.e.e.eO
C~~~~~
'0 6
'1J ~..
... .!! a. c
III =E'"
~lij::E~~
E :0 I- . ==
<("OC) .Ut)
c(mcaa:cc
I/)J:~~!~
'~:si !e
W-'..,cnl-
...~
0<
bct
II -
.. ..
a:O
'"
110
>11:
SU:
u>-
II:
>(0
wE
j::
~gj
0=
+:===
~=...
II ..
a. I:
O~
O~
."
l;)S:
::!i~
m~
~1J
,- ..
1iiii
Ill"
u.1I:
_.I:
00;
,I:
.. I:
01"
::!il<:
~
u
11-
'-.1:
e ::I
ll...g
-..
III I:
'0 l<:
8,0
I/)!!
'08
..;0
01
::!i
II
u
I: I:
III 0
I: ..
,- I:
u.,"
all~
cO::
'E.!!
'1JGi
<-E
~i
::!i
i-'-'
..
,!!!
iii
'0
II
a.
I/)
m
I:
01:
OJ ~
_t:
11.8
a:o
ull:
::ca
,g~
:s::l
ll..j
all
01
I:
'';:;
II
.:0:
~
::!i
E
Ill-
.! ~
m.l:
:l~
11==
.~..,j
..>-
:s..
u..
Ill'"
>(l<:
W
01
I:
+:=
.s::.
01
li~
.. .-
.- ..
u.:s
'1Ju
I: II
III I/)
II all
:s;..
u..
mJ!
II III
a: I/)
-=
f!
u
..
Ci:
'1J
I:
III
II
u..
I: I:
III II
I: E
.!Ia.
I: 0
'iij'ii
::!i>
~~
'0
III
U.
1ii
:l;t
II::
>.!!:!
;=
..Cl
-;j'"
.-"
I: I:
.- ..
EDi
~
..
II..
'1J..
Ill'"
II"
..JZ
E:2
III i:i
110
....
.. I:
110
'1J-
Ill.!!
II ~
..J'"
o
E I:
III ..
II l5
........
I:
..
II
=s
:!s
- ..
Ill,"
'0 ::E
II I:
a.'"
1/)<(
..
~-g.
III 0
.- ID
Mg
~II:
..Gi
ml::
~ii:
.- ~
U..
11.1:
a.l::
1/)'"
::E
..I:
mO
.- ..
iii'S
.- '"
M::E
a..!!
1/)'"
o
.!~
- ..
Ill'-
,- ..
uCL
1I.c
a.o
1/)11:
..I:
m..
i~
.- '"
uJ:
8,~
I/)Cl
CI)
.,..
~
....
me.
:,::G
1llJ:
'0 ~
II ..
a.~
I/)"g
<
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Financial Section
The Great Plains Joint Regional
Training Center continues to
grow at the Airport Industrial
Center. The Kansas National
Guard has purchased and
leased additional buildings and
land in recent years. The
training center prepares military
personnel for missions locally,
statewide, nationally and
globally.
Geoprobe Systems
expanded when the local
firm purchased 13.57
acres of Salina Airport
Industrial Center property
from the Salina Airport
Authority. The additional
property was used to
construct an additional
40,000 sq. facility for
manufacturing.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I-
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CLUBINE&
RETTELE
CHAKIERED
Certified Public Accountants
"
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.PA
Marci K. Fox, C.P.A.
John T. Millikin, C.PA
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785/825-5479
Salina Fax
785/ 825-2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Salina Airport Authority
We have audited the accompanying basic financial statements of Salina Airport
Authority, a component unit of the City of Salina, Kansas, as of and for the years
ended December 31, 2008 and 2007, as listed in the table of contents. These
financial statements are the responsibility of the Authority's management. Our
responsibility is to express an opinion on these financial statements based on our
audits.
We conducted our audits 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 and the Kansas Municipal Audit Guide, prescribed by the
Director of Accounts and Reports, Department of Administration of the State of
Kansas. 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 examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Salina Airport Authority, as of
December 31, 2008 and 2007, and the changes in financial position and cash flows
for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report
dated May 12,2009, on our consideration of Salina Airport Authority's internal
control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing and not to
provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and important for assessing the results of our
audits.
The management's discussion and analysis on pages 17 through 23 is not a required
part ofthe basic financial statements but is 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.
15
Our audit was conducted for the purpose of forming an opinion on the basic financial statements. The
Introductory Section and the accompanying schedules and additional information listed in the supplemental
information of the Financial Section and the Statistical Section of the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements of Salina Airport
Authority. 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, Audits of States,
Local Governments and Non-Profit Organizations, and is not a required part of the basic financial statements
of Salina Airport Authority. The Schedule of Expenditures of Federal Awards has been subjected to the
auditing procedures applied in the 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. The Introductory Section of
the accompanying schedules and additional information listed in the supplemental information of the
Financial Section and the Statistical Section of the table of contents have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on
them.
CLUBINE AND RETTELE, CHARTERED
~~~
May 12, 2009
16
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I:IN;\NCL'\L I Y ~(III~
MANAGEMENT'S DISCUSSION AND ANALYSIS
The management of the Salina Airport Authority offers the readers of the Authority's audited financial
statements this narrative overview and analysis of the financial activities of the Salina Airport Authority
for the fiscal year ended December 31, 2008.
AIRPORT ACTIVITY AND mGHLIGHTS
The Salina Air Traffic Control Tower (ATCT) ended 2008 having handled 71,575 aircraft operations.
This represented a 6.41 % decrease in total aircraft operations over the prior year, which was better than
expected due to significant airfield construction that closed the Airport's primary runway for an extended
period of time. The highest year for the most recent 10-year period was 2002 at 95,801 aircraft
operations. Salina continues to remain strong as a mid-continent refueling stop and has earned the
recognition as "America's Fuel Stop". The Airport's two world-class fixed base operators (FBOs) and
tenants of the Authority, annually deliver $3.1 million gallons of fuel to thousands of business jets,
government and military aircraft.
The commercial airline industry continues to experience financial stress, especially for the carriers
attempting to serve rural communities such as Salina through the Department of Transportation's (DOT)
Essential. Air Service Program. During March of 2008, Great Lakes was awarded the EAS contract for
Salina and provided multiple daily and weekend flights to both Kansas City and Denver International
Airports. This transition to dual hub service brought about a 58% increase in passenger enplanements as
compared to the prior year.
The changes in the Authority's major airport activity indicators for the past three years are as follows:
2008 2007 2006
Enplanements - Scheduled Air Carrier & Charter
Flights 4,654 2,495 2,029
% increase I (decrease) 86.53% 22.97% -13.25%
Aircraft Operations - All Categories 71,575 76,479 81,464
% increase I (decrease) -6.41 % -6.12% -5.59%
Fuel Flowage - (gallons delivered) 3,114,515 3,778,794 3,817,112
% increase I (decrease) -17.58% -1.00% -8.29%
17
FINANCIAL 1''1 ~(I(I:-;
AIRPORT INDUSTRIAL CENTER ACTIVITY AND mGHLIGHTS
The Authority owns nearly 900,000 sq. ft. of manufacturing, warehouse and office space at the Airport
Industrial Center. As further described herein, the building revenue generated by the Authority's leasing
activity constitutes a significant portion of the annual operating revenue budget. During 2008, building
rents equaled $1,084,135 or 50% of operating revenue. At the end of 2008, the Authority had an
, occupancy rate of over 93% in its building inventory.
SUMMARY OF OPERATIONS AND CHANGES IN NET ASSETS
Even with the uncertainty in the aviation industry and the slow growth in the economy, the financial
condition of the Authority has held steady in recent years. The Authority has effectively dealt with major
cost increases in employee health benefits including medical insurance premiums, utility costs,
commercial property insurance premiums and other operating expenses. Fortunately, with the diversified
revenue base, including building and land rental from the Authority's Industrial Center, total operating
revenue increased from 2006.
Operating Revenues
Operating Expenses
2008
$ 2,152,370
(2,245,300)
2007
$ 2,483,312
(1,969,015)
2006
$ 1,886,812
(1,670,722)
Excess before Depreciation
and other non-operating
income and expenses
(92,930)
514,297
216,090
Depreciation
(1,606,811)
(1,650,187)
(1,580,750)
. Excess (loss) before
other non-operating
income and expenses
(1,699,741)
(1,135,890)
(1,364,660)
Other Non-Operating Income
and (Expenses) net
419,492
668,765
832,986
Loss before
Capital Contributions
(1,280,249)
(467,125)
(531,674)
Capital Contributions
1,650,041
404,773
1,204,559
Increase in Net Assets
$ 369,792
$
$
(62,352)
672,885
18
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
rl N '\NCI;\L I ~ ~(II):-;
SUMMARY OF OPERATIONS mGIILIGHTS
Significant items effecting the Summary of Operations and Changes in Net Assets for 2008 and 2007 are
as follows:
. Operating revenues have remained steady in prior recent years, however, 2007 and 2006 brought
about significant increases over prior years. 2006 and 2007 revenues increased 33.7% and 31.6%
respectively over 2005 levels. Recent year increases in building rental revenue are attributable to
increased leasing activity and the sale of industrial buildings and land. The 13.3% decrease in
revenue from 2007 to 2008 is a result of the sale of manufacturing facility that had previously
. been generating building rental income. Airfield revenue also increased during 2007 as a result
of a 58.5% increase in hangar rental and increased another 9% during 2008. An increase in
demand for the temporary storage of aircraft and an expansion of an existing maintenance and
repair facility attributed to the over $100,000 hangar rental increase.
. Operating expenses increased by 17.9% from 2006 to 2007 and 14% from 2007 to 2008 due to the
following:
o Utility costs have increased substantially over the prior year due to increases in energy
prices and increased occupancy of the Authority's two large aircraft hangars.
o Increase in administrative expenses as a result of rising health care premiums for
employees. Also contributing to this increase was additional property appraisal and
property tax expense associated with increased leasing activity.
o Building maintenance expense increased as a result of increased building and hangar
occupancy.
. The net result of the above was operating income before depreciation increased by $298,207 from
2006 to 2007 and decreased by $607,227 from 2007 to 2008. Depreciation expense increased due
to new construction moving from construction in progress to an asset in service and very capital
intensive years in 2007 and 2008.
. Non-operating income and (expenses) decreased by 24.56% from 2006 to 2007 as a result of a
decrease in capital contributions from Federal Aviation Administration Airport Improvement
(AlP) grant programs. During 2007 the Authority designed a multi-year taxiway rehabilitation
project, whereas in 2006, the Authority completed a rehabilitation of the Airport's crosswind
runway. Ad-valorem tax revenue (mill levy) received by the Authority as a local taxing entity
increased by 1.4% from 2006 to 2007 and 4.5% from 2007 to 2008. Interest received on
investments and a financing lease increased by $92,542 or 62% from 2006 to 2007 which was due
to bond proceeds being on hand during the year.
. Capital contributions received in the form of grants from the Federal Aviation Administration
totaled $1,552,002 for 2008 and $404,773 for 2007.
19
F INANelAL 11 ~(J(IS
FINANCIAL POSITION SUMMARY
The changes in net assets may serve over time as a useful indicator of a government's financial position.
The Authority's assets exceeded liabilities by $25,565,857 at the close of 2008. A condensed summary of
the Authority's total net assets at December 31 is shown below.
2008 2007 2006
ASSETS
Current and other assets 3,752,996 14,685,187 2,684,720
Capital assets 42,562,780 35,215,229 35,703,273
Total assets 46,315,776 49,900,416 38,387,993
LIABILITIES
Long-term debt outstanding 17,276,448 21,015,879 10,083,046
Other liabilities 3,262,510 3,477,511 2,835,568
Total liabilities 20,538,958 24,493,390 12,918,614
NET ASSETS:
Invested in capital assets, 24,471,896 13,515,783 24,442,779
net of related debt
Restricted 85,000
Unrestricted 1,304,922 11,891,243 941,600
TOTAL NET ASSETS $ 25,776,818 $ 25,407,026 $ 25,469,379
By far the largest portion of the Authority's net assets (94%) reflects its investment in capital assets
including land, buildings, airfield infrastructure and machinery and equipment, less any related debt used
to acquire those assets that is still outstanding. The Authority uses these capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the Authority's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed
to repay this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
20
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I'
I
I
1
I
I
I
I
I
I
I
I
I
I
I
1
I
I
I
FINANCIAL I) ~f)m;
REVENUES
The following chart shows the major sources and the percentage of total operating revenues for the year
ended December 31,2008:
Gain (loss) on sale of assets
1%
Other revenue
2%
Building and land rent
65%
A summary of revenues for the past three years is shown below. Total revenue decreased by13.3% from
2008 to 2007 and 21.9% from 2006 to 2007. The increase from 2006 to 2008 is a result of increased
building leasing activity and the sale of available land for new development in the Airport Industrial
Center.
2008 2007 2006
Operating Revenue:
Airfield $ 680,474 $ 622,666 $ 5 L 1,264
Building and land rent 1,407,984 1,525,071 1,294,166
Gain (loss) on sale of assets 16,321 281,803 10,777
Other revenue 47,591 53,772 70,605
Total Operating 2,152,370 2,483,312 1,886,8 L 2
Non-Operating Income:
Mill Levy 1,256,816 1,201,602 1,184,481
Interest Income 185,215 241,478 148,936
Total Non-Operating 1,442,031 1,443,080 1,333,417
TOTAL REVENUE $ 3,594,401 $ 3,926,392 $ 3,220,229
21
FINANCIAL 11 2 OW';
I
EXPENSES
The following chart shows the major expense categories and the percentage of total operating expenses for
the year ended December 31, 2008:
A summary of expenses for the past three years is shown below. Total expenses increased by 19.1 % from
2007 to 2008 and less than 26.4% from 2006 to 2007. The significant contributors to the change included
increases in utility costs, equipment maintenance, fuel expense and the issuance of long-term debt.
2008 2007 2006
Operating Expenses
Administrati ve $ 1,303,374 $ 1,161,530 $ 1,043,176
Maintenance 941,926 807,485 627,546
Total Operating 2,245,300 1,969,015 1,670,722
Non-Operating Expense
Interest Expense 996,985 742,249 478,295
Amortization of bond costs 25,554 32,066 22,135
Total Non-Operating 1,022,539 774,315 500,430
TOTAL EXPENSES $ 3,267,839 $ 2,743,330 $ 2,171,152
L-
22
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL n ~()('X
CAPITAL ACQUISITIONS AND CONSTRUCTION ACTIVITIES
The Authority acquired $9,379,187 of capital assets during 2008. Significant items included the
construction of a new 69,000 sq. ft. maintenance repair and overhaul hangar facility. Other major
capital improvements included the engineering design and construction of a multi-year, multi-million
dollar Taxiway rehabilitation project. The construction of this project is expected to be complete in 2009
and will be funded primarily through Federal Aviation Administration Airport Improvement Program
Grant funds. In addition, 2008 marked the Authority's first year to participate in the Defense
Reutilization Marketing Office (DRMO) program. The DRMO entity disposes of United States
military surplus property. The Authority acquired numerous capital equipment assets having a fair
value .of $98,093. Additional information can be found in Note I (C) in the notes to the financial
statements.
Capital asset acquisitions exceeding $1,000 are capitalized at cost and are depreciated over their useful
lives, with the exception of land. The Authority's capital assets are financed using Federal and State
grants with matching Authority funds, debt issuance and Authority revenues. Additional information on
the Authority's capital assets can be found in Note III (D) in the notes to the financial statements and
within the Supplemental Section of this report.
DEBT ADMINISTRATION
The outstanding long-term debt of the Authority was $17,276,448 at December 31, 2008. This debt
consists of general obligation bonds, general obligation temporary notes, financing lease and City of
Salina special assessments. Maturities range from 2006 through 2022. Both principal and interest are
payable from proceeds of a direct financing lease, the general revenues of the Authority and mill levy
revenue. The Authority issued no new debt in 2008. Details of the Authority's debt can be found in
Note III (E) in the notes to the financial statements.
REQUEST FOR INFORMATION
This Management Discussion and Analysis is designed to provide detailed information on the Authority's
operations and the financial results of those operations to all those with an interest in the Authority's
financial affairs. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to the Manager of Administration and Finance bye-mail:
shellis@salair.orgor in writing to, Salina Airport Authority, 3237 Arnold Ave., Salina, KS 67401.
~I(~
Michelle R. Swanson
Manager of Administration and Finance
23
FINANCIAL FY 2008
SALINA AIRPORT AUTHORITY
STATEMENTS OF NET ASSETS
ASSETS December 31
2008 2007
CURRENT ASSETS
Cash $ 1,871,999 $ 12,455,052
Accounts receivable 69,326 318,027
Prepaid expenses 5,247 2,221
Taxes receivable 1,281 ,413 1,236,467
Total Current Assets 3,227,985 14,011,767
NONCURRENT ASSETS
Capital assets
Land
Buildings, improvements and equipment,
net of depreciation
Construction in progress
Total Capital Assets
9,675,910 8,961,998
24,065,550 24,020,823
8,821,320 2,232,408
42,562,780 35,215,229
443,123 565,978
81,888 107,442
43,087,791 35,888,649
$ 46,315,776 $ 49,900,416
Net investment in finance lease
Bond issue costs, less accumulated amortization
of $235,364 and $203,298 respectively
Total Noncurrent Assets
TOTAL ASSETS
(continued)
See notes to financial statements.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
24
I
I I
I
I
I
I
I
I
I I
I I
I
I
I
I
I
I
I
I
I
I
FINANCIAL FY 2008
SALINA AIRPORT AUTHORITY
STATEMENTS OF NET ASSETS
(continued)
LIABILITIES AND NET ASSETS December 31
2008 2007
CURRENT LIABILITIES:
Accounts payable-operations $ 67,558 $ 111,415
Accounts payable-capital purchases 535,691 323,561
Accrued payroll and expenses 50,839 39,399
Accrued property tax 47,220 32,449
Accrued special assesments 16,070 16,070
Deferred tax revenue 1,281,413 1,236,467
Deferred maintenance agreement 3,578 16
Unearned rental income 91,817 85,631
Accrued interest 320,591 573,096
Unearned interest - financing lease 33,296 38,084
Current maturities of long-term debt 814,437 1,021,323
Total Current Liabilities 3,262,510 3,477,511
LONG-TERM LIABILITIES
Bonds and note payable, less current maturities 17,276,448 21,015,879
Total Liabilities 20,538,958 24,493,390
NET ASSETS
Invested in capital assets, net of related debt 24,471,896 13,515,783
Unrestricted 1,304,922 11,891,243
Total Net Assets 25,776,818 25,407,026
TOTAL LIABILITIES AND NET ASSETS $ 46,315,776 $ 49,900,416
See notes to financial statements.
25
FINANCIAL FY 2008
See notes to financial statements.
26
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,---- ----- ----- -------
I
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL FY 2008
SALINA AIRPORT AUTHORITY
STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
J anuarv 1 to December 31
2008 2007
$ 2,426,455
(790,936)
(1,475,036)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from providing services
Cash paid to employees for services
Cash paid to suppliers for goods and services
Net Cash Provided in Operating Activities
160,483
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of property, plant and equipment (8,663,391)
Purchases in satisfaction of maintenance agreement (7,912)
Proceeds from capital grants 1,552,002
Proceeds from property tax . 1,256,816
Principal payments on debt (3,946,317)
Proceeds of new borrowing
Principal received on financing lease
Interest received on financing lease
Bond issue costs paid
Interest paid on long-term debt
122,855
66,592
(1,249,490)
Net Cash Provided (Used) in Capital and Related
Financing Activities
(10,868,845)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on deposits
125,309
INCREASE (DECREASE) IN CASH
(10,583,053 )
CASH BALANCE - January 1
12,455,052
CASH BALANCE - December 31
$ 1,871,999
$ 4,588,310
(638,839)
(1,281,618)
2,667,853
(3,242,102)
(21,601)
404,773
1,201,602
(1,048,833)
12,007,599
113,279
76,167
(59,955)
(376,499)
9,054,430
182,515
11,904,798
550,254
$12,455,052
The Authority received capital equipment having a fair value of $98,093 in 2008. This non-cash transaction
is included in CAPITAL CONTRIBUTIONS on the STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS and in Equipment acquisitions in Note D but it is not included in this
STATEMENT OF CASH FLOWS for 2008.
(continued)
See notes to financial statements.
27
FINANCIAL FY 2008
SALINA AIRPORT AUTHORITY
STATEMENTS OF CASH FLOWS
(DIRECT METHOD)
(continued)
RECONCILIATION OF OPERATING LOSS TO NET
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
January 1 to December 31
2008 2007
OPERATING LOSS
$(1,699,741)
$ (1,135,890)
ADJUSTMENTS RECONCILING OPERATING LOSS
TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Depreciation
Basis of assets sold
1,606,811
19,198
1,650,187
2,217,977
CHANGES IN ASSETS AND LIABILITIES:
Decrease (increase) in accounts receivable
Decrease (increase) in prepaid expense
Increase (decrease) in accounts payable - operations
Increase in accrued payroll expenses
Increase (decrease) in accrued property tax and special assessments
Increase in unearned rental income
248,701 (158,314)
(3,026) 6,072
(43,857) 55,931
11 ,440 5,319
14,771 (18,764)
6,186 45,335
$ 160,483 $ 2,667,853
NET CASH PROVIDED BY OPERATING ACTIVITIES
See notes to financial statements.
28
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I \ ~lillS
Salina Airport Authority
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Salina Airport Authority was established by the City of Salina, pursuant to Chapter 27, Article 3, of
the Kansas Statutes Annotated for the purpose of acquiring surplus federal government property,
specifically the former Schilling Air Force Base, located near the City of Salina. The Authority operates,
maintains, and develops the Salina Municipal Airport and the Salina Airport Industrial Center. The
Authority is controlled by a five-member Board of Directors appointed by the Salina City Commission
and, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, the
Authority is considered to be a component unit of the City of Salina. The Authority is discreetly
presented in the City's comprehensive annual financial reports.
B. Measurement Focus, Basis of Accounting and Basis of Presentation
The Authority consists of an enterprise fund,. Enterprise funds are classified as proprietary funds by the
GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is
used to account for operations that are financed and operated in a manner similar to private business
enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be
recovered through user fees and rents. The financial statements are prepared on the accrual basis of
accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. It is
the Authority's policy to follow all Financial Accounting Standards Board (F ASB) standards issued after
November 30, 1989, for its proprietary activities unless those new FASB pronouncements conflict with
GASB guidance.
Revenues from airlines, fuel flowage fees, building and land rents, rental car commissions and the sale of
assets, related to economic development, are reported as operating revenues. Transactions, which are
capital, financing or investing related, are reported as non-operating revenues. All expenses related to
operating the Airport and Industrial Center are reported as operating expenses. Interest expense and
financing costs are reported as non-operating expenses.
C. Assets, Liabilities and Equity
1. Cash and Investments
The Authority'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 date of acquisition. The Authority
held no investments during these years.
29
3. Inventories
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL l'i :'tlIlS
2. Receivables
Accounts Receivable. The Authority records revenues when services are provided. All receivables are
shown net of an allowance for uncollectibles.
Property taxes receivable. The determination of assessed valuations and the collections of property
taxes for all political subdivisions in the State of Kansas is the responsibility of the various counties. The
office of the County Appraiser annually determines assessed valuations 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 are levied November I of the current
year and are a revenue source to be used to finance the budget of the ensuing year. One-half of the
property taxes are due December 20, prior to the fiscal year for which they are budgeted, and the second
half is due the following May 10.
Collection of current year property tax by the County Treasurer is not completed, apportioned nor
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 Authority. It is the Authority's
practice to record uncollected current year property tax as an account receivable and to record the same
amount as deferred revenue. It is not practicable to apportion delinquent taxes held by the County
Treasurer and, further, the amounts thereof are not material in relationship to the financial statements
taken as a whole.
The Authority maintains no significant inventory of office and maintenance supplies. These items are
expensed as purchased and no inventory is recorded in these financial statements.
4. Prepaid items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
5. Restricted Assets
Certain proceeds of leasehold revenue bonds are classified as restricted assets on the Statement of Net
Assets because their use is limited by applicable bond covenants.
30
I-
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I " ~lhl:-;
6. Capital Contributions and Net Assets
Airport Improvement Program - Certain expenditures for airport capital improvements are
significantly funded through the Federal Aviation Administration's Airport Improvement Program (AlP),
with certain matching funds of the Authority. Capital funding provided under the AlP grant program is
considered earned as the related allowable expenditures are incurred. Grants received under the AlP
program are reported in the Statement of Revenues, Expenses and Changes in Net Assets, as non-
operating revenues and expenses as capital contributions.
Defense Reutilzation Marketing Office Program - During 2008, the Authority began participation in
the Defense Reutilization Marketing Office (DRMO) program. The DRMO entity disposes of United
States military surplus property. The property is first offered for reutilization with the Department of
Defense, transferred to other federal agencies or donated to state and local governments.
The Authority's policy is to record fixed assets having a cost (or by implication fair value) in excess of
$1,000 at acquisition. The Authority's capitalization policy with respect to fixed assets is to expense
fixed assets costing $1,000 or less. Freight or other expenses necessary to put the asset into service equal
to or greater than $1,000, are capitalized.
The Authority records donated assets having an original cost of $5,000 or less at $1 in order to meet the
tracking requirement and will memo in the asset file the original cost because the Authority believes the
fair value of these is less than $1,000 each.
The Authority estimates the donated items to have a value equal to 20% of cost. Items having an original
cost of less than $5,000 will be valued at $1 with memo of original cost. Items having an original cost of
more than $5,000 will be valued at 20% of original cost rounded to the nearest $1,000 with a memo to
the file of the original cost.
If the Authority receives reliable written information indicating this procedure has produced a value
significantly different from fair value, an adjustment to that value will be made.
Donated DRMO property with a value in excess of $1,000 is reported in the Statement of Revenues,
Expenses and Changes in Net Assets, as non-operating revenues and expenses as capital contributions.
The Federal Aviation Administration, as the oversight agency, requires that the Airport track all the
contributed property and the property must be held for at least one year prior to disposition.
7. Capital Assets
Capital assets purchased or constructed are recorded at cost. The cost of normal maintenance and repairs
that do not add to the value of the assets or materially extend assets' lives are not included in capital
assets cost. Capital assets donated to the Authority are recorded at their estimated fair value at the date
of donation. Donated assets include property and equipment transferred to the Authority from the United
States of America, September 9, 1966 and recorded at fair value at that date. The Authority maintains a
capitalization threshold of $1 ,000.
31
32
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL 1'\ '::(I(IS
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Assets
Buildings
Equipment
Vehicles
Airfield
Years
5 -50
5-10
7 -10
10 - 30
8. Compensated Absences
Substantially all full-time employees receive compensation for vacations, holidays, illness and certain
other qualifying absences. The number of days compensated for various categories of absence is
generally based on length of service. Liabilities relating to these absences are recognized as incurred and
included in accrued expenses. The amount accrued for such liabilities at December 31, 2008 and 2007
was $47,350 and $37,573 respectively.
Balance Balance
January 1, December 31;
2008 Net Change 2008
$ 37,573 $ 9,777 $ 47,350
Balance Balance
January 1, December 31,
2007 Net Change 2007
$ 33,041 $ 4,532 $ 37,573
II.
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Cash-Basis Law (KSA 10-1113)
The Authority was in compliance with this law at all times during the year.
B. Depository Security (KSA 9-1402)
The Authority's funds were adequately secured at all times during the year.
I
I
I
I
I
I
I
I
II
I
I
I
I
, I
I
I
I
I
I
FINANCIAL I ') ~IIIIX
III.
DETAILED NOTES
A. Deposits
As of December 31, 2008 and 2007, the Authority had cash and cash equivalents as listed below:
December 31.
2008 2007
Cash Balances
Cash $ 1,871,999 $ 12,455,052
Less undeposited and petty cash (6,034) (98,152)
Add uncleared checks 165,324 112,933
Bank Balance 2,031,289 12,469,833
Less FDIC Coverage 525,148 224,895
Balances Securable by Collateral $ 1,506,140 $ 12,244,938
Security Provided by Depositories $ 3,911,228 $ 13,446,807
The Authority did not have any activity in investment-type assets.
The Authority's policies relating to deposits and investments are governed by various Kansas Statutes
(KSA). Those statutes specify the type of deposits and investments as well as the securing of those
deposits and investments.
Interest rate risk - In accordance with Kansas Statute 12-1675, The Authority manages its exposure to
interest rate fluctuations by limiting all time investments to maturities of less than two years.
Credit risk - State law limits the amount of credit risk by restricting governments to specific investment
types as listed in KSA 12-1675. The Authority's policy is to place idle funds in certificates of deposit,
United States obligations, and the Kansas Municipal Investment Pool (KMIP). The KMIP was rated
AAAf/S1+ by Standard & Poor's as of March 15, 2004. The KMIP is permitted to invest in fully
collateralized certificates of deposit, certain obligations of the United States, certain repurchase/reverse
repurchase agreements, and other types of investments. Maturity information released by the KMIP at
September 30, 2005 showed that the investment pool consisted of investment with a maturity date of 365
days or less.
Custodial credit risk - The Custodial credit risk for deposits is the risk that, in the event of the failure of
a depository financial institution, a government will not be able to recover deposits or will not be able to
recover collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty to a transaction, a government
will not be able to recover the value of investment or collateral securities that are in the possession of an
33
34
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,
FINANCIAL I ) ~IIII:-;
outside party. Kansas Statutes 9-1402 and 9-1405 require that governments obtain security for all
deposits. The Authority manages its custodial credit risk by requiring the financial institutions to grant a
security interest in securities held by third-party custodial banks. Monies in the Kansas Municipal
Investment Pool are not required to have pledged securities.
Concentration of credit risk - This is the risk of loss attributed to the magnitude of a government's
investment in a single issuer. The Authority manages this risk by placing funds with financial
institutions only after contacting all eligible institutions in the taxing area and monies in the Kansas
Municipal Investment Pool are diverse according to the policies ofthe investment pool.
B. Receivables
Receivables as of year-end, including the applicable allowance for uncollectible accounts, are as follows:
December 31.
2008 ~
Receivables
Accounts $ 69,410 $ 319,722
Less: allowance for uncollectibles (84) (1,695)
69,326 318,027
Taxes 1,281,413 1,236,467
Total $ 1,350,739 $ 1,554,494
C. Net Investment in Financing Lease
Net investment in financing lease is as follows:
December 31.
Total lease payments receivable
Less: unearned income
Net investment in financing lease
~
$ 568,338
(125,215)
$ 443,123
2007
$ 757,784
(191,806)
$ 565,978
Activity in net investment in financing leases was as follows:
Beginning Balance
Less: Collected principal
Ending Balance
December 31.
2008 2007
$ 565,978 $ 679,257
(122,855) (113,279)
$ 443,123 $ 565,978
I
I
I
I
I
I
I
I
! I
I
I
I
I
I
I
I
I
I
II
FINANCIAL l'i =1111:-:
D. Capital Assets
The following is a summary of the changes in capital assets during the current and preceding year:
Balance Balance
January 1, December 31,
2008 Additions Dispositions Reclassifv 2008
Capital Assets
Non-Depreciable
Land $ 8,961,999 $ 713,912 $ 9,675,911
Construction in progress 2,232,408 7,539,694 (950,782) 8,821,320
Total Non-Depreciable 11,194,407 8,253,606 (950,782) 18,497,231
Depreciable
Buildings and improvements 13,719,216 155,637 401,558 14,276,411
Airfield and improvements 25,793,670 338,230 549,225 26,681,124
Equipment 3,096,442 226,087 (77,149) 3,245,380
Total Depreciable 42,609,328 719,954 (77,149) 950,782 44,202,915
Total Non-Depreciable &
Depreciable $ 53,803,735 $ 8,973,560 $ (77,149) $ $ 62,700,146
Accumulated depreciation
Buildings and improvements $ (4,550,753) (511,883) $ (5,062,636)
Airfield and improvements (12,510,286) (868,858) (13,379,144)
Equipment (1,527,467) (226,070) 57,951 (1,695,586)
Total Accumulated
Depreciation ( 18,588,506) (1,606,811 ) 57,951 (20,137,366)
Total Capital Assets $ 35,215,229 $ 7,366,749 $ (19,198) $ $ 42,562,780
35
Balance Balance
January 1, December 31,
2007 Additions Dispositions Reclassifv 2007
Capital Assets
Non-Depreciable
Land $ 9,060,306 $ 362,073 $ (456,331 ) $ (4,049) $ 8,961 ,999
Construction in progress 1,106,688 1,125,720 2,232,408
Total Non-Depreciable 10,166,994 1,487,793 (456,331) (4,049) 11,194,407
Depreciable
Buildings and improvements 13,958,673 1,565,954 (1,809,460) 4,049 13,719,216
Airfield and improvements 25,692,707 100,963 25,793,670
Equipment 2,894,930 225,412 (23,900) 3,096,442
Total Depreciable 42,546,310 1,892,329 (1,833,360) 4,049 42,609,328
Total Non-Depreciable &
Depreciable $ 52,713,304 $ 3,380,122 $ (2,289,691 ) $ $ 53,803,735
Accumulated depreciation
Buildings and improvements $ (4,099,569) (519,247) 68,063 $ (4,550,753)
Airfield and improvements (11,586,736) (923,550) (12,510,286)
Equipment (1,323,726) (207,391) 3,650 (1,527,467)
Total Accumulated
Depreciation (17,01 0,031) (1,650,188) 71,713 (18,588,506)
Total Capital Assets $ 35,703,273 $ 1,729,934 $ (2,217,978) $ $ 35,215,229
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I" ~\h):-:
36
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I" ~()()~
E. Long-Term Liabilities
Following is a summary of changes in long-term liabilities during the current and preceding years:
Current
Balance Balance Maturities
January 1, December 31, December 31,
2008 Additions Reductions 2008 2008
Long-term Liabilities
General obligation bonds $ 7,490,000 $ 965,000 $ 6,525,000 $ 755,000
Financing Lease payable 391,932 33,101 358,831 35,331
Special assesment debt 255,270 23.216 232,054 24,106
General obligation
temporary notes 13,900,000 2,925,000 10,975,000
Total Long-Term Liabilities $ 22,037,202 $ $ 3,946,317 $ 18,090,885 $ 814,437
Current Maturities (1,021,323) (814,437)
Long Term Liability Net $ 21,015,879 $ 17,276,448
Current
Balance Balance Maturities
January 1, December 31, December 31,
2007 Additions Reductions 2007 2007
Long-term Liabilities
General obligation bonds $ 7,370,000 $ 1,005,000 $ 885,000 $ 7,490,000 $ 965,000
Financing Lease payable 425,000 33,068 391,932 33,107
KDOCH loan payable 56,299 56,299
Special assesment debt 302,137 27,599 74,466 255,270 23,216
General obligation
temporary notes 2,925,000 10,975,000 13,900,000
Total Long-Term Liabilities $ 11,078,436 $12,007,599 $ 1,048,833 $ 22,037,202 $ 1,021,323
Current Maturities (995,390) (1,021,323)
Long Term Liability Net $ 10,083,046 $ 21,015,879
37
FINANCIAL 11 ~III):\
I
The following is a detailed listing of the Authority's long-term debt including general obligation bonds,
temporary notes, financing lease and special assessment debt at December 31, 2008:
Orhzinal Issue Interest Rates Bonds OutstandiD!!
General Obligation Bonds
General Obligation I 999-B, due 2010 $ 555,000 3.90% to 5.20% $ 135,000
General Obligation 20ot-A, due 2012 1,385,000 4.45% to 5.60% 650,000
General Obligation 2002-A, due 2012 2,635,000 2.45% to 3.70% 1,160,000
General Obligation 2005-A, due 2020 3,635,000 4.75% to 5.25% 3,635,000
General Obligation 2007-A, due 2022 1,005,000 4.60% to 6.00% 945,000
Total General Obligation Debt 6,525,000
General Obligation Temporary Notes
2007-1, due 2010 10,975,000 5.60% 10,975,000
Financing Lease, due December 2016 425,000 6.609% 358,831
Special Assessment Debt
Airport Industrial Center, due 2016 565,235 3.79% 207,177
Hangar 600 Sanitary Sewer, due 2021 27,599 4.47% 24,877
Total Special Assessment Debt 232,054
Total Long Term Debt $ 18,090,885
Interest Expense in 2008 is as follows:
General Obligation Bonds 292,886
Special Assessment Debt 9,854
Financing Lease 24,636
Temporary Notes 669,609
996,985
Add: Amortization of bond costs 25,554
Total Debt Interest Expense $ 1,022,539
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
38
I
I
I
I
I
I
I
I I
II
I
, I
I
,I
I
I
I
I
I
I
I
FINANCIAL 1'1 ::'(111:-1
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies and
rental revenues:
Bonds
Year Outstandine Interest Due Total
2009 $ . 755,000 $ 316,316 $ 1,071,316
2010 800,000 282, 148 1,082,148
2011 755,000 244,799 999,799
2012 795,000 209,501 1,004,501
2013 330,000 171,878 501,878
2014-2018 1,955,000 587,057 2,542,057
2019-2022 1,135,000 107,025 1,242,025
$ 6,525,000 $ 1,918,724 $ 8,443,724
Annual debt service requirements for General Obligation Temporary Notes payable from general
obligation bonds and capitalized interest funds:
Notes
Year Outstandine Interest Due Total
2009 $ $ 614,600 $ 614,600
2010 10,975,000 614,600 11,589,600
$ 10,975,000 $ 1,229,200 $ 12,204,200
Annual debt service requirements for Financing Lease payable rental revenues:
Year
2009
2010
2011
2012
2013
2014-2016
Princioal Due
$ 35,33]
37,705
40,238
42,941
45,826
156,790
$ 358,831
Total
$ 58,472
58,472
58,472
58,472
58,472
175,415
$ 467,775
Interest Due
$ 23,141
20,767
18,234
15,531
12,646
18,625
$ 108,944
39
Total
$ 33,070
33,070
33,070
33,070
33,070
104,339
7,692
$ 277,381
I
I
I
I
g
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL 1\ ~IIiIS
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Year
2009
2010
2011
2012
2013
2014-2018
2019-2021
Loan Principal
$ 24,106
25,029
25,988
26,984
28,018
94,876
7,053
$ 232,054
F. Capital Contributions and Net Assets
Interest Due
$ 8,964
8,041
7,082
6,086
5,052
9,463
639
$ 45,327
Since its inception, the Authority has received capital contributions through Federal and State grants as
follows:
Inception to
Date 2007 2006
Federal $ 21,107,4 19 $ 404,773 $ 1,204,559
State 515.610
Total $21.623.029 $ 404.773 $ 1.204.559
The Authority has designated $90,000 to be used as an insurance increase reserve or to accelerate future
debt service payments. As of December 31, 2008, the reserve had been funded but not used:
IV.
OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description - The Authority participates in the Kansas Public Employees Retirement System
(KPERS). The plan is a cost-sharing multiple~employer defined benefit pension plan as provided by
Kansas statutes (KSA 74-4901 et seq). KPERS provides retirement benefits, life insurance, disability
income benefits and death benefits. Kansas law establishes and amends benefit provisions. KPERS
issues a publicly available financial report that includes financial statements and required supplementary
information. Those reports may be obtained by writing to KPERS (611 S. Kansas Avenue, Suite 100,
Topeka, Kansas 66603-3803) or by calling 1 (888) 275-5737
Funding policy - KSA 74-4919 establishes the KPERS member-employee contribution rate at 4% of
covered salary. The employer collects and remits member-employee contributions according to the
provision 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 is
40
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I 'I ~IIIIX
funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer
contribution rates. The KPERS employer rate established for calendar year 2008 was 5.93%. The
Authority employer contributions to KPERS for the years ending December 31, 2008, 2007 and 2006
were $36,775, $27,612, and $24,104 respectively, equal to the required contributions for each year.
B. Deferred Compensation Plan
The Authority offers its employees a deferred compensation plan ("Plan") created in accordance with
Internal Revenue Code Section 457. The Plan, available to all Authority 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 Authority's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The Authority has adopted by resolution a salary-reduction flexible benefit plan ("Plan") under Section
125 of the Internal Revenue Code. All Authority employees working more than 20 hours per week are
eligible to participate in the Plan beginning after thirty days of employment. Each participant may elect
to reduce his or her salary to purchase benefits offered through the Plan. Benefits offered through the
Plan include various insurance and disability benefits.
D. Risk Management
The Authority is exposed to various levels of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters.
There has been no significant reduction in the Authority's insurance coverage from the previous year. In
addition, there have not been settlements in excess of the Authority's coverage in any of the prior three
years.
E. Contingent Liabilities
The Authority 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 Authority. However, in the opinion of management, any such disallowed claims would
not have a material effect on any of the financial statements of the Authority at December 31, 2008.
41
42
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I) :'1111:\
F. Environmental Matter
The U.S. Government Department of Defense transferred property located at the former Schilling Air
Force Base to the 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 1965.
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 (USACE) is the lead agency for the Department at formerly used defense sites. The Corps
has completed investigation of soil and groundwater contamination at the former base under the
regulatory oversight of the U.S. Environmental Protection Agency and the 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. Therefore, 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. The Salina Airport Authority, City of Salina, Unified School District No. 305 and the Kansas
Board of Regents (Kansas State University at Salina) collectively own over 90% of the nearly 4,000
acres of the former Schilling Air Force Base property.
Beginning in August 2007, the four local public entities including the Salina Airport Authority, the City
of Salina, the Salina School District and Kansas State University at Salina initiated negotiations with the
U.S. Federal Government. The negotiation objectives include transferring the responsibility for
completing the cleanup from the USACE to the Salina public entities. The local objective is to reach a
settlement agreement with the United States of America that provides the Salina public entities sufficient
funds to complete cleanup operations over a 30-year period.
During calendar year 2008, the Salina public entities prepared a detailed Cost to Complete Estimate
(CTC). The CTC preparation included consultation with the EPA and KDHE. The Salina public entities'
CTC was completed in June of2008 and submitted to the USACE.
Subsequently, on January 23, 2009, the Salina public entities delivered a demand letter to the USACE.
The letter demands that settlement negotiations begin immediately with the u.S. Department of Justice.
On May 14,2009 the Authority was notified that the USACE referred the former SAFB demand letter to
the U.S. Department of Justice on May 12,2009. It is expected that the negotiations will result in a
settlement Consent Decree that will specify terms, conditions and funding enabling the Salina public
entities to proceed with site clean-up operations.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL I') 2()():-\
G. Rental Income Under Operating Leases
A significant portion of the operating revenue of the Authority is generated through the leasing of
airport and building space to airport fixed base operators and others on a fixed fee as well as a contingent
rental basis. Ownership risks are retained by the Authority, and accordingly, such leases are treated as
operating leases.
The following is a schedule of minimum future rentals on non-cancellable operating leases to be received
in each of the next five years and thereafter:
Years Ended
December 31
2009 $ 778,822
2010 725,316
2011 827,478
2012 612,994
2013 569,467
Later Years 1,092,270.
Total $ 4,606,347
H. Major Customers
The Authority receives significant operating and financing lease revenue from Hawker Beechcraft
Corporation, Kansas State University-Salina, Flower Aviation, America Jet, CA V Aerospace, and the
Kansas Army National Guard. Rent from these six tenants equals 67% of operating and capital lease
revenue for the year ended December 31, 2008.
43
\
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
FINANCIAL 11 ~I){):\
I. Non-Operating Income and (Expense)
Net non-operating income and expense consisted of the following for the years ended December 31,
2008 and 2007:
December 31.
/
2008 2007
Mill Levy $ 1,256,816 $ 1,201,602
Interest and investment income
Financing lease 59,906 58,963
Other interest 125,309 182,515
Total $ 1,442,031 $ 1,443,080
Interest expense
General obligation bonds $ (292,886) $ (339,533)
Special assessment debt (9,854) (10,710)
Loan (KDOCH) (471)
Financing lease (24,636) (26,087)
Temporary notes (669,609) (365,448)
Amortization of bond issue costs (25,554) (32,066)
Total (1,022,539) (774,315)
Net non-operating income $ 419,492 $ 668,765
J. Commitment Under Operating Lease
The Authority has entered into a certain non-cancellable operating lease agreement which will expire in
2013, for the rental of office equipment. Minimum rentals, on an annual basis are as follows:
Years Ended
December 31
2009 $ 11 ,400
2010 11,400
2011 11 ,400
2012 11,400
2013 1,900
Total $ 47,500
44
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Supplemental Information
On January 23, 2008, The United States Air Force honored the City of Salina by dedicating an
A-10 Thunderbolt II fighter jet, number 82-0653, the "Thunderbolt of Salina." An aircraft
named for the City of Salina is a tribute to the historical and ongoing relationship between
the Salina community and the U.S. Air Force. Salina has welcomed our nation's military
since the construction of the Smoky Hill Army Air Corps Base in 1942 and the operation of
Schilling Air Force Base from 1948 until it closed in 1966. The tradition continues into the
present with all branches of the U.S. Armed Forces using the Salina Municipal Airport for
operational readiness training.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I'
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
SCHEDULES OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
January 1 to December 31
2008 2007
OPERATING REVENUES
Airfield
Fuel flowage fees
Hangar rent
Landing fees
Ramp rent
Total Airfield
$ 210,292
383,667
7,789
78,726
680,474
$ 246,113
304,593
5,160
66,800
622,666
Building and land rent
Agri land rent
Building rents
Land rents
Tank rent
Total Building and Land Rents
72,567 56,718
1,094,135 1,224,061
231,036 234,389
10,246 9,903
1,407,984 1,525,071
16,321 281,803
7,935 14,050
19,554 15,696
20,102 24,026
47,591 53,772
2,152,370 2,483,312
Gain on sale of assets
Other revenue
ARFF training
Commissions
Other income
Total Other Revenue
Total Operating Revenue
(continued)
45
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
SCHEDULES OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
January 1 to December 31
2008 2007
OPERATING EXPENSES
Administrative
~,consultants,brokers
Airport promotion
Computer network administration
Dues and subscriptions
Employee retirement
FICA and medicare
Industrial development
Insurance, property
Insurance, medical
Kansas unemployment tax
Legal and accounting
Office salaries
Office supplies
Other administrative
Postage
Property appraisals
Property taxes
Special events
Telephone
Travel and meetings
61,975
34,241
22,455
27,503
45,687
59,262
30,000
151,138
183,649
784
35,767
398,236
10,863
25,161
4,573
3,300
119,426
52,822
13,515
23,017
43,581
32,533
15,205
31,051
36,306
46,143
20,000
13 7,262
147,479
715
29,670
324,206
12,138
20,926
4,390
11,134
189,581
20,856
14,664
23,688
Total Administrative Expenses
1,303,374
1,161,530
(continued)
46
I
I
I
m
m
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
I
SALINA AIRPORT AUTHORITY
SCHEDULES OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
(continued)
MAINTENANCE EXPENSES
Airfield maintenance
Airport security
Building maintenance
Equipment fuel and repairs
Fire services
Grounds maintenance
Maintenance salaries
Other maintenance expenses
Snow removal expense
Utilities
January 1 to December 31
2008 2007
30,519 17,402
4,796 15,898
116,297 85,574
123,425 76,361
12,600 19,582
14,152 1,268
404,140 319,953
25,132 28,345
17,172 75,740
193,693 167,363
941,926 807,485
2,245,300 1,969,015
(92,930) 514,297
1,606,811 1,650,187
(1,699,741) (1,135,890)
1,256,816 1,201,602
59,906 58,963
125,309 182,515
(996,985) (748,760)
(25,554) (25,554)
419,492 668,765
(1,280,249) (467,125)
1,650,041 404,773
369,792 (62,352)
25,407,026 25,469,378
$25,776,818 $25,407,026
Total Maintenance Expenses
Total Operating Expenses
OPERATING INCOME BEFORE DEPRECIATION
DEPRECIATION EXPENSE
OPERATING LOSS
NON-OPERATING INCOME (EXPENSE)
Mill levy
Interest income-capital lease
Interest income
Interest expense
Amortization of bond costs
Total Non-Operating Income (Expense)
LOSS BEFORE CAPITAL CONTRIBUTION
CAPITAL CONTRIBUTIONS
INCREASE IN NET ASSETS
NET ASSETS, January 1
NET ASSETS, December 31
47
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
CAPITAL EXPENDITURES
January 1 to December 31
2008
AIRPORT IMPROVEMENTS
Airfield Improvements
Airfield Security
Total Airport Improvements
337,234
995
338,229
BUILDINGS
Transportation Security Administration Office
Terminal Bldg. Improvements
Other Bldg. Improvements
Total Buildings
125,272
17,820
12,545
155,637
EQUIPMENT
1984 Box Cargo Van
1988 Chevy Truck
Cargo Truck
Front End Loader
Emerson Aircraft Cargo Truck
1991 Hyster 10K Forklift
1993 Chevy Van"
Aircraft Rescue and Firefighting Equipment
Communications Equipment
Computer Equipment
Vehicle Topper
Emergency Vehicle Lights
Airfield sweeper
Airstairs
Bulldozer
Truck Tractor
Terminal Bldg. Equipment
2 Nissan Pathfinders
Other Misc. DRMO Equipment
Total Equipment
5,000
3,000
11 ,000
15,000
25,000
9,000
3,000
11,661
17,498
21,471
1,300
1,999
3,048
3,530
4,043
4,410
1,481
39,968
44,678
226,087
(continued)
48
I
I
I
I
I
I
I
I
m
I
I
I
I
I
I
I
I
I
I
'I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,I
I
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
CAPITAL EXPENDITURES
(continued)
January 1 to December 31
2008
CONSTRUCTION IN PROGRESS
AIP-27 Taxiway Rehabiliation Design
AIP-28 Taxiway Rehabilitation Construction
AIP-29 Taxiway Rehabilitation Construction
Aircraft Self-fueling System
Aviation Service Center Vehicle Traffic Study
North Ramp Redevelopment Design
Hangar 600 Construction
Pumphouse #305 Meter Replacement
Foreign Trade Zone Development
Total Construction in Progress
50,063
1,427,247
252,118
64,947
6,086
284,418
5,345,396
65,319
44,100
7,539,694
LAND
Former Schilling Air Force Base Environmental Project
Terminal Bldg. Drainage Construction
Terminal Bldg. Draining AlE
Total Land
604,458
92,284
17,170
713,912
TOTAL CAPITAL EXPENDITURES
$ 8,973,559
49
1--
SUPPLEMENTAL FY 2008
Date ofisue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
Due in Bond Bond
Year Interest Principal
2009 6,955 65,000
2010 3,640 70,000
$ 10,595 $ 135,000
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION REFUNDING BONDS
SERIES 1999 - B
December 31, 2008
Schedule of Bond Interest and PrinciDal Payments
June 29, 1999
$ 555,000
3.90% to 5.20%
September 1, 2010
$ 420,000
$ 135,000
50
I
I
I
I
I
g
I
m
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
,
Date of issue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2001 - A
December 31, 2008
October 31,2001
$ 1,385,000
. 4.45% to 5.60%
September 1,2012
$ 735,000
$ 650,000
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
Year Interest Principal
2009 35,316 150,000
2010 27,514 160,000
2011 18,867 165,000
2012 9,800 175,000
$ 91,497 $ 650,000
51
SUPPLEMENTAL FY 2008
Date ofissue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2002 - A
December 31, 2008
Schedule of Bond Interest and Principal Payments
August 29,2002
$ 2,635,000
2.45% to 3.70%
September 1,2012
$ 1,475,000
$ 1,160,000
Due in Bond Bond
Year Interest Principal
2009 40,680 275,000
2010 31,880 285,000
2011 21,905 295,000
2012 11,285 305,000
$105,750 $ 1,160,000
"
52
I
I
I
I
I
I
I
I
I
I
I
I
I
I
m
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
Date of issue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2005 - A
December 31, 2008
August I, 2005
$ 3,635,000
4.75% to 5.25%
September I, 2020
$
$ 3,635,000
Schedule of Bond Interest arid Principal Payments
Due in Bond Bond
Year Interest Principal
2009 184,675 220,000
2010 173,124 235,000
2011 160,787 245,000
2012 147,926 260,000
2013-2020 637,475 2,675,000
$ 1,303,987 $ 3,635,000
53
SUPPLEMENTAL FY 2008
Date of issue:
Amount of issue:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2007-A
December 31, 2008
December 15, 2007
$ 1,005,000
4.6% to 6.0%
September 1, 2022
$ 60,000
$ 945,000
Schedule of Bond Interest and Principal Payments
Due in Bond Bond
Year Interest Principal
2009 48,690 45,000
2010 45,990 50,000
2011 43,240 50,000
2012 40,490 55,000
2013 37,603 55,000
2014-2022 190,882 690,000
$406,895 $ 945,000
54
o
I
a
I
I
g
I
m
I
I
I
I
I
I
I
I
I
I
I
1---
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
TAXABLE GENERAL OBLIGA nON TEMPORARY NOTES
SERIES 2007-1
December 31, 2008
Date of issue:
Amount of issue:
Interest rate:
Maturity date:
\Principal paid:
Outstanding balance:
Schedule of Bond Interest and Principal Pavrnents
Due in Bond
Year Interest
2009 614,600
2010 614,600
$ 1,229,200
September 1, 2007
$, 10,975,000
5.6%
September 1, 2010
$
$ 10,975,000
Bond
Principal
10,975,000
$ 10,975,000
55
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
SPECIAL ASSESSMENT DEBT -STREET AND UTILITY IMPROVEMENT
Airport Industrial Center Subdivision
December 31, 2008
Date of loan:
Amount of loan:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
September 11, 2002
$ 344,202
3.79%
October 1,2016
$ 137,025
$ 207,177
Schedule of Loan Interest and Principal Payments
Due in Loan Loan
Year Interest Princioal
2009 7,852 22,653
2010 6,994 23,512
2011 6,102 24,403
2012 5,178 25,328
2013 4,218 26,288
2014-2017 6,522 84,993
$ 36,866 $ 207,177
56
I
I
I
D
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
II
I
I
SUPPLEMENTAL FY 2008
SALINA AIRPORT AUTHORITY
SPECIAL ASSESSMENT DEBT-SANITARY SEWER EXTENSION
HANGAR 600
December 31, 2008
Date of loan:
Amount of loan:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
April 23, 2007
$ 27,599
4.47%
December 20, 2021
$ 2,721
$ 24,877
Schedule of Loan Interest and Principal Payments
Due in Loan Loan
Year Interest Principal
2009 1,112 1,453
2010 1,047 1,517
2011 979 1,585
2012 908 1,656
2013 834 1,730
2014-2022 3,580 16,936
$ 8,461 $ 24,877
57
SUPPLEMENTAL FY 2008
Date of loan:
Amount of loan:
Interest rate:
Maturity date:
Principal paid:
Outstanding balance:
SALINA AIRPORT AUTHORITY
FINANCING LEASE PAYABLE
December 31, 2008
September 28, 2006
$ 425,000
6.609%
September 1,2016
$ 66,169
$ 358,831
Schedule of Loan Interest and Principal Payments
Due in Loan Loan
Year Interest Principal
2009 23,141 35,331
2010 20,767 37,704
2011 18,234 40,238
2012 15,531 42,941
2013 12,646 45,826
2014-2016 18,625 156,791
$ 108,944 $ 358,831
58
I
I
D
I
I
o
g
I
I
I
I
I
I
I
-
I
I
I
I
1--------:-----
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SUPPLEMENTAL FY 2008
Insurance Policy
Employers Insurance ofWausau
on behalfofUSAIG
Pol. #WCC-Z91-547496-018
National Union Fire Ins. Co. of
Pittsburgh, P A
Pol. #AP3229456-14
Chubb Group ofInsurance Companies
Pol. 3581-68-04 KCO
Pol. #(08) 7353-33-80
Pol. #3581-68-04 KCO
ITT Hartford
Pol. #37BPEAG4896
Houston Casualty Company
Pol. H708-30009
Great American Alliance Ins. Co.
Pol. # KST 788-29-33-14
Indian Harbor Insurance Company
Pol. #LE 19517027
SALINA AIRPORT AUTHORITY
INSURANCE IN FORCE
December 31, 2008
Tvoe of Coveraee
Amount of
Coverage
Workmen's Compensation
and Employer's Liability
$
500,000
Bodily Injury & Liability
Hangar Keepers
$ 1,000,000
$ 500,000
Deluxe Property-Buildings, business personal
property and equipment breakdown (including
boiler and machinery)
Business Income
$30,968,341
$ 1,765,779
Vehicles & Equipment
Liability
Medical payments
Uninsured motorists
$ 1,000,000
$ 5,000
$ 1,000,000
$ 2,306,457
Inland Marine - Equipment
Crime Policy
Employee theft - per employee
$
100,000
Public Officials and Employment Practices Liability
Each wrongful act $ 2,000,000
Aggregate limit $ 2,000,000
Kansas Underground Storage Tank Liability
Environmental Incident
Annual aggregate
Limit of defense
$ 1,000,000
$ 1,000,000
$ 100,000
Law Enforcement Professional Liability
Each occurrence
Annual aggregate
$ 1,000,000
$ 1,000,000
59
(THIS PAGE INTENTIONALLY LEFT BLANK)
I
I
I
I
I
n
a
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Statistical Section
Great lakes Aviation, ltd. provides daily flights to both Denver and Kansas
City from Salina. Flying from Salina is convenient, comfortable and affordable.
Passengers flying out of Salina can always count of FREE parking! Visit
www.flygreatlakes.com to view the hundreds of connections that you can
make from Salina.
iI"'''-.
J~~- -
,f ~c
i ..,.
~
\
\
~
~
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
S 1.\ liS IleAL I ') ~(I()S
STATISTICAL
Total Annual Revenues, Expense~ and Changes in Net Assets History ............ 62-63
Change in Cash and Cash Equivalents History .................................................. 64-65
General Obligation Debt Service Coverage ....................................................... 66
Capital Expenditure History .......................... ..................................................... 67
Revenue Bond Coverage.............................. ...................................................... 68
Local Government Mill Levy Rates, Direct and Overlapping ...........................69
Principal Customers............................................................................................ 70
Mill Levy Revenue ................. ............................................................................71
Air Traffic, Fuel Flowage, and Enplanement Trends......................................... 72
Major Employers................................................................................................ 73-74
Saline County Population and Demographic Statistics ...................................... 75
Saline County Employment Data ....................................................................... 76
61
I
S I /\ II S I Ie /\ I I ') :::()()X
SALINA AIRPORT AUTHORITY
TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR YEARS ENDED DECEMBER 31,
1999 2000 2001
TOTAL REVENUES
OPERATING REVENUES
Airfield 10,660 12,133 7,250
Fuel flowage fees 234,338 263,264 252,942
Building and land rent 1,202,149 1,121,194 1,111,662
Gain (loss) on sale of assets 222,664 86,719
Other revenue 26,965 25,992 33,162
TOTAL OPERATING REVENUES 1,474,112 1,645,247 1,491,735
TOTAL EXPENSES
OPERATING EXPENSES
Administrative 726,651 740,530 754,003
Maintenance 377,457 386,095 448,189
TOTAL OPERATING EXPENSES 1,104,108 1,126,625 1,202,192
OPERATING INCOME BEFORE DEPRECIATION 370,004 518,622 289,543
DEPRECIATION 925,397 906,198 934,270
OPERATING LOSS (555,393) (387,576) (644,727)
NON-OPERATING INCOME AND (EXPENSES)
Mill levy 783,363 801,237 795,404
Interest on investments and financing lease 158,858 163,512 145,447
Interest expense (369,561) (276,092) (249,959)
TOTAL NON-OPERATING INCOME AND (EXPENSES) 572,660 688,657 690,892
LOSS BEFORE CAPITAL CONTRIBUTIONS 17,267 301,081 46,165
CAPITAL CONTRIBUTIONS 595,779 583,134 583,135
NET ASSETS
Increase in Net Assets 613,046 884,215 629,300
TOTAL NET ASSETS, beginning of year 17,611,137 18,224,183 19,108,398
TOTAL NET ASSETS, end of year $18,224,183 $19,108,398 $19,737,698
* 1999-2002 has been restated to conform to the new financial reporting model as required by the provisions of
GASB No. 34. The SAA implemented the new model in 2003.
62
I
I
I
I
I
D
D
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
,I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SI;\IISIIC;\L 1'1 200X
SALINA AIRPORT AUTHORITY
TOTAL ANNUAL REVENUES, EXPENSES AND CHANGES IN NET ASSETS
FOR YEARS ENDED DECEMBER 31,
2002 2003 2004 2005 2006 2007 2008
4,514 190,367 204,310 237,506 263,524 376,553 470,182
278,948 257,475 . 235,362 259,981 247,740 246,113 210,292
1,034,989 916,585 890,631 1,106,146 1,294,166 1,525,071 1,407,984
29,455 (6,631) 59,943 204,083 10,777 281,803 16,321
39,173 29,501 21,874 49,654 70,605 53,772 47,591
1,387,079 1,387,297 1,412,120 1,857,370 1,886,812 2,483,312 2,152,370
751,734 825,064 928,769 1,039,270 1,043,176 1,161,530 1,303,374
430,530 475,204 . 465,326 618,346 627,546 807,485 941,926
1,182,264 1,300,268 1,394,095 1,657,616 1,670,722 1,969,015 2,245,300
204,815 87,029 18,025 199,754 216,090 514,297 (92,930)
974,140 1,022,474 1,151,664 1,392,316 1,580,750 1,650,187 1,606,811
(769,325) (935,445) (1,133,639) (1,192,562) (1,364,660) (1,135,890) (1,699,741)
817,499 987,970 1,036,579 1,058,688 1,184,481 1,201,602 1,256,816
147,763 128,640 126,949 118,087 148,936 241,478 185,215
(319,167) (344,353) (348,784) (374,851) (500,431) (774,315) (1,022,539)
646,095 772,257 814,744 801,924 832,986 668,765 419,492
(123,230) (163,188) (318,895) (390,638) (531,674) (467,125) (1,280,249)
144,005 434,763 2,289,342 3,186,636 1,204,559 404,773 1,650,041
20,775 271,575 1,970,447 2,795,998 672,885 (62,352) 369,792
19,737,698 19,758,473 20,030,048 22,000,495 24,796,493 25,469,378 25,407,026
$19,758,473 $20,030,048 $22,000,495 $24,796,493 $25,469,378 $25,407,026 $25,776,818
63
,
S I /\ liS lie \ I I " 2()()X
SALINA AIRPORT AUTHORITY
CHANGES IN CASH AND CASH EQUIVALENTS
FOR YEARS ENDED DECEMBER 31,
CASH FLOWS FROM OPERATING ACTIVITES
Cash received from providing services
Cash paid to employees for services
Cash paid to suppliers for goods and services
NET CASH PROVIDED IN OPERATING ACTIVITIES
1999 2000 2001
$1,386,088 $2,997,537 $1,668,782
(420,315) (443,968) (463,501)
(635,344) (699,812) (750,913)
330,429 1,853,757 454,368
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of property, plant and equipment (1,460,223)
Purchases in satisfaction of maintenance agreement
Proceeds from capital grants
Return of capital grant proceeds
Proceeds from property tax
Principal payments on debt
Proceeds of new borrowing
Principal received on financing lease
Interest received on financing lease
Principal received on long-term note
Principal received on refunding debt
Bond defeasance and issue costs paid
Interest paid on long-term bonds
Interest paid on long-term debt
NET CASH PROVIDED (USED) IN CAPITAL AND
RELATED FINANCING ACTIVITIES
97,971
(11,131)
783,363
(1,983,013)
59,263
130,1.84
94,760
1,280,000
(14,219)
(400,040)
(720,694)
801,237
(1,408,978)
64,255
125,190
(29,745)
(290,972)
(571,068)
795,403
(674,963)
1,385,000
69,668
119,778
(21,266)
(221,762)
(1,423,085) (1,459,707)
CASH FLOWS FROM INVESTING ACTIVITES;
Interest received on deposits
32,628
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(1,060,028)
CASH AND CASH EQUIVALENTS, beginning of year
1,218,689
880,790
44,049 30,740
438,099 1,365,898
158,631 596,730
CASH AND CASH EQUIVALENTS, end of year
$ 158,661 $ 596,730 $1,962,628
64
I
I
I
I
I
g
I
I
I
I
I
I
I
I
I
I
I
I
I
S 1;\ liS I lei\L I'\{ :::oms
SALINA AIRPORT AUTHORITY
CHANGES IN CASH AND CASH EQUIVALENTS
FOR YEARS ENDED DECEMBER 31,
2002 2003 2004 2005 2006 2007 2008
$1,503,652 $1,374,310 $1,459,696 $2,107,817 $1,993,164 $ 4,588,310 $ 2,426,455
(450,013) (462,822) (472,178) (504,691) (552,966) (638,839) (790,936)
(748,272) (837,530) (871,435) (1,157,454) (1,087,149) (1,281,618) (1,475,036)
305,367 73,958 116,083 445,672 353,049 2,667,853 160,483
(2,176,229) (2,319,249) (4,126,043) (5,948,674) (5,130,780) (3,242,102) (8,663,391)
(19,095) (9,736) (5,863) (1,350) (15,143) (21,601) (7,912)
144,005 434,763 2,289,342 3,186,636 1,204,559 404,773 1,552,002
817,499 987,970 1,036,579 1,058,688 1,184,481 1,201,602 1,256,816
(694,761) (1,046,750) (988,922) (4,388,400) (1,019,673) (1,048,833) (3,946,317)
3,200,235 3,255,000 3,635,000 3,350,000 12,007,599
75,541 81~911 88,823 96,320 104,453 113,279 122,855
113,905 107,535 100,623 93,126 84,993 76,167 66,592
(26,119) (6,147) (22,183) (13,024) (59,955)
(262,795)
(338,703) (294,691) (356,080) (407,795) (376,499) (1,249,490)
1,172,186 (2,102,259) 1,348,701 (2,646,917) (657,929) 9,054,430 (10,868,845)
30,921
25,475
28,960
25,463
68,896
182,515
125,309
1,508,474 (2,002,826) 1,493,744 (2,175,782) (235,984) 11,904,798 (10,583,053)
1,962,628 3,471,102 1,468,276 2,962,020
786,238
550,254 12,455,052
$3,471,102 $1,468,276 $2,962,020 $ 786,238 $ 550,254 $12,455,052 $ 1,871,999
65
I
SI \IISIIC/\I 11.:'()()X
~
~
~
o
U
riIil
U
~
riIil
C"I.)
E-~
=~
riIil ~
~-
M
Z ~
8,0
:>,. E-t 8
'1:' < Q)
o ~ ~
;SI-IQ
::s,..;!"O
<=-8
1:: 0 =
o,..;!~
.~~ ~
-< riIil Q)
t'OZ>-
.S =
-riIilQ)
~~~
.fft.
.e u
GII GII
m GII
=u
=
o
:c
:m
:2l III
o Q,I
-Q
e
Q,I
=
Q,I
~
'il
...
o
.e-~
.. =
u 0
GII ..
t:l....
GII GII
u.S!
>
....
o
=
o
~ !I
:>
Q,I
"tl =
~i
:=
"'il
~:>
~
=
o
:c
t =
.e-
m>
~~
z ~
Q,I
'"
-<
-; ]1
;:....
M
M
\0
"<t'~
\0
oo~
M
o
o
o
o
t""-
V")
v-l
M
M
\0
'<:t'~
M
"<t'
O'I~
M
00
t""-
r--:'
00
'<:t'
~
-
M
M
M
"<t'~
-
t""-
M
v-l
"<t'
o
V")
M
\O~
-
-
0\
\0
N
0'1
0'1
0'1
-
M
00
~
-
t""-
\O~
V")
M M
00 .....
00 0
t'--~ M
M M
N t""-
tn~ M
o
o
o
o
t""-
N
~
o 0
o 0
o 0
o o~
0'1 \0
o -
an'" r:
M
00
oo~
-
"<t
0'1
0\
M M
00 -
00 . 0
f'-'" M
N 0'1
M 00
o 0
- .....
\0
.....
-
..0
0'1
C"'l,
-
M
M
'<:t'
t""-
t""-
N
\0
N
"<t~
"<t
M
o
N
o
\O~
"<t'
N~
M
"<t'
00
o
-
00
"<t'
N~
M
'<:t'
\0
0'1
o
o~
V")
-
00
00
N
\0
\0
\0
~
-
o~
-
o
M
o
o
o
N
-
o
o
N
'<:t'
"<t'
"<t'
o
o
-
~
M
\0
M
0'1
M
00
v-l
\0
0'1
v-l
"<t'
V")
o
\0
"<t'~
M
.....
r--:'
.....
M
N
o
o
N
.....
0'1
.....
~
M
0'1
0'1
"<t'~
o
o
~
V")
\0
N
\O~
.....
0'1
-
oo~
V")
C't
.....
.....
00
.....
~
M
t""-
N
v-l
r--
M
N
0'1
N
0\
t""-
\0
..0
'<:t'
\0
N
t""-~
M
0'1
V")
00
N
M
M
o
o
N
0'1
r--
"<t'
00
N
00
N
o
o
o
o
0'1
\0
00
0'1
t""-
'<:t'
00
-
on..
-
-
M
o
M
O'I~
"<t'
O'I~
M
00
M
-
N
-
r--:'
00
\0
oo~
"<t'
N
00
-
N
\0
N
v-l
M
M
"<t'
o
o
N
o
V")
t""-
V")~
"<t'
~
M
o
o
o
o
N
N
00
o
V")
t""-
lI')~
\0
o
N~
-
V")
V")
\O~
.....
0'1
.....
N
o
'<:t'
o
t""-
oo
t""-~
\0
M
0\
"<t'
V")
00
t""-~
M
N
00
N~
V")
M
V")
o
o
N
V")
V")
o
0\
V")
V")
N~
o
o
o
v-l
0'1
N
o
.....
V")
V")
o
"<t'~
V")
00
N
-
\0
00
"<t'
oo~
\0
"<t
00
N
'<:t'
0'1
0'1
N~
.....
V")
V")
o
V")
t""-
oo
-
t""-~
-
0'1
r--:'
t""-
M
\0
o
o
N
0'1
-
t""-
t""-~
M
0'1
N~
N
o
o
o
o
0'1
C"'l,
-
N
0'1
-
t""-
t""-~
N
M
~
"<t
M
0'1
.....
r--:'
t""-
C't
M
"<t'
"<t'
\0
o
t""-
oo~
"<t
V")
o
V")
t""-
oo
"<t'
00
N
t""-
N
0'1
M
t""-
o
o
N
I
I
o
00
C"'l,
M
M
\0
t""-~
N
I
..;
.!:
'iij
VI
-
o
~
iJ
Q.I
J::.
...
-
o
c:
o
+:l
III
:::J
~
"t:l
Q.I
'"
'"
Q.I
'"
'"
III
Q.I
J::.
...
-
o
?Ie.
o
...
o
...
?Ie.
l't'l
E
.g
~
'u
III
CI.
III
U
tlIl
c:
'S
'"
.!!!
"t:l
c:
o
III
o
~
'"
~
5
J::.
...
:::J
<(
Q.I
J::.
...
llIl
c:
'! 1
.!: ~
,... .E'
8 0
N ~
.!: 0(
~~
~ <
~ !
o i
~ t'-)
~i
.!!! .,
~ ~
...
:~
.!: .,
:is U
~ ~
~8
.i: ~
2 i
'5 lZl
~ OJ
~ ~
... lZl
I
o
o
o
o
o
V")
r--:'
.....
I
I
o
00
M
M
M
-
v-l
'<:t'
I
I
I
'<:t'
o
~
M
M
M~
-
V")
"<t
I
I
I
\0
V")
~
-
V")
C"'l,
-
V")
I
I
00
'<:t'
-
N~
00
0'1
O'I~
0'1
M
I
I
00
o
o
N
I
66
I
I
I
SIAIISIICAL 11200X
I
I
E N """ M """ 0'\ 0'\ 0 0'\
S = V) - N - M """ N - N V)
- .... ClO """ - C'! """ - V) V) - V)
S .. 00 M M l"i 00 N N 0 l"i
.. "0 0 00 -
Q =-= ClO - ClO - 0 """ ClO I"'-
E-4 = ~ M~ V) \0 N N N ClO M M 0'\
l"'- V) N N ..; ..0 """~ l"i 00
U - ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~
r-:l
=
Q ~
.. \0 ClO I"'- 0 \0 0 """
.... 0 N 0'\
~ ~ - """ 0 0'\ V) I"'- \0
= ClO 0 ClO ClO 00 ori' ~
... = N~ N 0 ..;
.... .. e 0'\ M - ClO 0 N M
fI:l M N """ V) O~ - V)
= ~ ~ ~ ~ ~ - - r-:
Q ~ ~ ~
U
"0 0'\ 0 0'\ M 0'\
ClO ClO ClO M I"'- M M
- N """ """ V) N 0 N V) \0 N
~ M V) N ClO 0 ..0 r-: ClO 0'\ N
'E ..; M ~ 0 00
r-: l"i ~ N V) -
0'\ 0'\ """ """~ \0 l"'- I"'- 0 M
.. - ~ N l"i - - M
-< ~ ~ ~ - ~ ~ ~
~ ~ ~
~
S -
~ - V)
e - -
N N
.... """ ori'
fI:l -
= \0 ~
cf: ~
=
""""
ClO M ClO """ N 0'\ N - N N
]1 """ 0'\ """ I"'- 0'\ ClO \0 N I"'- -
0'\ - N """ l"'- N \0 """ 0 0'\
N ..0 N ..0 l"i """~ ..0 N~ N l"i
M N 0 - M """ M - \0 -
- N N \0 ~ ~ ~ N M I"'-
~ ~ ~ ~ ~ ~ ~
bllfl:l l"'- I"'- V) - M 0'\ 0'\ \0 """
= g N 0'\ l"'- V) l"'-
V) I"'- 0'\ N - 0 0 M
.. .- V) N N r-: - I"'- ..0 I"'- 0'\ \0
:i;t:: 0 N N l"i r-: ..0 ori' ori'
\0 V) \0 \0
~ .. "0 0'\ l"'- I"'- ~ N - \O~ I"'- "1- V)
="0 """ M - - 0'\
~ ~ ~ - ~ ~ - N - -
=-< ~ ~ ~ ~ ~
0
E-4 ell
rI1 'E
""""
= ClO j r 8
~ 0 ClO 0 0 V) - I"'- ~
0 ClO ClO 0 - 0 0 0 M
N 0 0 N M N M \0 \0 - ClO ~
0'\ - V) 0'\ """ 0
~ - ori' l"i ~ ori' ..; ~ r-: """~ ori' ..0 .C
E-4 M N """ """ N I"'- ClO 0 l"'- N N ~
.. ~ ~ ~ - """ - ClO - N N
"""" Q) ~ ~ ~ ~ ~ ~ ~
~='S -(
.C Z Q) 1::
o r-:l ~ 0
..s~Q eo
~~"O :.(
r-:l~ as
~ ~ == ==
eo ~ ::a
.- E-4 ta CI)
-( """" Q) - U
=~>- ~ ~I 0'\ 0 - N M """ V) \0 I"'- ClO $
.5 == .ri 0'\ 0 0 0 0 0 0 0 0 0
~U~ 0'\ 0 0 0 0 0 0 0 0 0 0 67
IiIo4 - N N N N N N N N N CI)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SII-\IISIICAL IY200S
Salina Airport Authority
REVENUE BOND COVERAGE
Ten Years Ended December 31, 2008
Fiscal Pledged Revenue Bond
Year Revenue Debt Service Coverae:e
1999 $189,446 $163,841 1.16
2000 $189,446 $185,013 1.02
2001 $189,446 $164,420 1.15
2002 $189,446 $158,320 1.20
2003 $189,446 $151,923 1.25
2004 $189,446 $150,283 1.26
2005 $189,446 $148,158 1.28
2006 $189,446 $140,557 1.35
2007 $189,446 $67,623 2.80
2008 $189,446 $69,955 2.71
Notes:
1. During 1999, the Series 1990-B Bonds were refmanced to remove IRS restrictions and
achieve an interest rate savings.
Source: Salina Airport Authority Records
68
B
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
S 1/\ lIS IleAl 11 ::'IIiIS
I
I
I
!I' 00 .,... N r-. '<t r-. 0 N 0\ -
N M 0\ - r-. 00 N N 0\ .,...
00 M r-. 00 .,... "l r-. r-. - r-.
M .,f on ..0 00 M 00 " " .,f
- - N - - N - - - N
- - - - - - - - - -
>.
bb
- ~~ Q
"" = 1:1 u 0\ \0 00 M 0\ 0\ 0 00 '<t ~
Q,l .- .C M 8
-= u .~ - 00 0 r-. .,... 00 - .,... 0\ 0\
'<t - -:t: <'l "l \0 .,... M M .,... ~
... Q,l = ... on on ..0 ..0 ..0 ..0 ..0
0 =- ~ .~ .,... .,... .,...
rI1 ~ "0
cu
l)
.g>
::l
,rJ
fIj ~
.a = "0
""' fIj "l "l "l "l "l "l "l "l "l "l
S 1:1 a
c ~ - - - -
rI1 0\
0
0
N
~ ~
...
~ ~I a
~ = "0
M \0 '<t \0 .,... .,... - r-. r-. r-. Q
1:1 C C .,... N N 0 0\ 0\ '<t r-. r-. r-. cu
.- E'-= \0 '<t '<t 00 r-. r-. 0\ 00 00 00 -a
-
= .- ... N N N N N N N N N N (J
; rI1 < = 00
< Q
'C
~ .g
cu
~ In ~
"CI - e - '<t 00 '<t N \0 N N r-. .;
Q,l c ~ 0\ ~
e: c N N r-. 00 M \0 00 .,... 0\ '<t
-= M .,... - M \0 \0 - C"! .,f .,...
.- ..: ..0 00 00 " ..0 '" 00 cu
~ 1:1 u .,... .,... .,... e
~ rI1 fIj .,... .,... \0 .,... .,... .,... .,... .,... .,...
u .- 8
~ ~ .E
j'
~
rI! -
~ .. -I \0 .,... 00 N M M 0\ 0\ 0\ \0 's
~ C 1:1 r-. \0 - 0\ - \0 0\ 00 .,... 00 00
~ c= 00 M N 0 0 0 ~ r-. 0\ 00 0
.,f .,f .,f .,f .,f .,f M M on 0
.- = M N
Url1 N N N N N N N N N N '"
~ ~
'C
~ 0
~ ~
:j -<
Q,l ~ r-. r-. \0 r-. - '<t 0\ .,... .,... r-. t::
~ 00 1:1 00 M \0 .,... 00 r-. r-. .,... r-. '<t .~
0 .- - M 0 \0 0 00 .,... 0\ '<t M
- M N .,f on 00 00 00 " " '"
0 = -<
~ N rI1 N N N N N N N N N N
tIS
z~ .5
of!i -a ~
r/.l cu
cu D
oS Ib
o ~ cu e !3
oS 0 .g 0
::l "0 U
-<O~ "0
cu cu
t::~Q 1ii Q
e. ~ b ~
.- ~ ~ 5 r/.l
-< cu - 00 a.i
~u>- = "'" Q,l '"
u = 0\ 0 - N M '<t .,... \0 r-. 00 ..."0 ~
.- 0 5 is;: 0\ 0 0 0 0 0 0 0 0 0 c 3
~~f- 0\ 0 0 0 0 0 0 0 0 0 0 69
- N N N N N N N N N z~ r/.l
I
I
I
I
I
I
I
I
I
I
II
I
I
I
I
I
, S-IAIISlll/\1 I') :'I)I)X
Salina Airport Authority
Principal Customers
Year Ended December 31, 2008
Company
Kansas Military Board
Hawker Beechcraft Corp.
Kansas State University-Salina
Flower Aviation
CA V Aerospace, Inc.
JRM Enterprises, Inc, d/b/a America Jet
Schwan's Global Suppy Chain, Inc.
Johnson Rack, Inc.
Two Rivers Vending Co.,Inc.
Geocore Services
Builders Choice Concrete
AFK Properties, Inc.
Smith, Bill
Federal Aviation Adminis.
Triangle Trucking
HRAD Group LLC
Hertz Corporation
Blue Beacon International
Kejr, Joe
Boeing
Waddle's Manufacturing & Machine
Professional Flight Training, LC
United Suppliers, Inc.
Scientific Engineering
Laas, Brent and Mark
Revenue
487,455.00
298,197.98
237,300.10
176,458.58
168,717.00
157,177.56
112,772.00
64,508.51
53,625.00
37,920.00
31,333.32
27,540.00
25,752.08
24,900.00
23,872.78
22,633.00
19,963.14
19,395.65
18,441.78
16,903.97
16,582.50
16,436.00
15,984.00
15,600.00
15,348.00
% of Operating & Direct
Finance Lease Revenue
20.82%
12.73%
10.13%
7.54%
7.20%
6.71%
4.82%
2.75%
2.29%
1.62%
1.34%
1.18%
1.10%
1.06%
1.02%
0.97%
0.85%
0.83%
0.79%
0.72%
0.71%
0.70%
0.68%
0.67%
0.66%
Total Operating Lease and Direct Finance Lease Revenue for 2008 was $2,341,816
Source: Salina Airport Authority Records
70
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
S~II\ liS IICAL I') 2(J(JS
Salina Airport Authority
MILL LEVY REVENUE
Ten Years Ended December 31, 2008
Mil Levy
Fiscal Year Revenue'
1999 $ 783,363
2000 $ 801,237
2001 $ 795,404
2002 $ 817,499
2003 $ 987,970
2004 $ 1,036,579
2005 $ 1,058,688
2006 $ 1,184,481
2007 $ 1,201,602
2008 $ 1,256,816
Source: Salina Airport Authority Records
71
ST'\IISIIC.'\L IY2()()X
Salina Airport Authority
AIR TRAFFIC, FUEL FLOWAGE AND ENPLANEMENT TRENDS
Ten Years Ended December 31,2008
Scheduled
Fiscal Air Traffic Fuel Flowage Air Service
Year Operations Gallons Enplanements
1998 80,338 3,603,673 12,909
1999 90,400 3,808,886 13,436
2000 87,709 4,472,164 10,270
2001 92,870 4,396,429 6,507
2002 95,801 4,695,093 2,565
2003 86,214 4,358,563 2,319
2004 81,465 3,843,330 2,974
2005 86,292 4,162,887 2,339
2006 81,464 3,817,112 2,029
2007 76,479 3,778,792 2,945
2008 71,575 3,114,515 4,654
Note:
One air traffic operation equals one aircraft takeoff and landing
Source: Salina Airport Authority Records
72
I
I
B
I
D
I
D
I
I
I
I
I
I
I
I
I
I
I
I
I
I
ST A TISTICAL I Y 2008
Major Employers
I
The largest manufacturers, their products, and number of employees are:
Schwan Global Supply Chain, Inc. Exlde Technologies
Frozen Pizza Automotive Wet Batteries
2000 employees 750 employees
Philips Lighting company Hawker Beachcraft Corp.
Fluorscent Lamps Aircraft & Aircraft Parts
500 employees 350 employees
Soloman Corporation EIDorado National, Inc.
Electrical Equipment Transit, Tour & Shuttle Buses
324 employees 311 employees
lire at Plains Manufacturing Advanced Auto Parts Distribution Center
Agricultural Equipment Auto Parts
850 employees 220 employees
Crestwood, Inc. KASA Fab & Industrial Controls
Wooden Cabinets Metal and Electrical Controls Fabricator
219 employees 208 employees
Exline, Inc. Salina Vortex
Large Industrial Machine Shop Valves & Dlverters
165 employees 118 employees
Geoprobe Systems Grain Belt Supply
Environmental Equipment Custom Metal Fabrication
106 employees 140 employees
Premier Pneumatics, Inc. Cameron
Material Handling Equipment Turbines
100 employees 96 employees
McShares, Inc. & Research Products ADM Milling (Engineering lirouPI
Vitamin-Minerai Concentrates Flour & Grain Mill Products
88 employees S2 emplo~es
OVetlon Cabinetry Inc. Metal Cast
Custom Wooden Cabinets Foundry
76 employees 71 employees
Bergkamp, Inc. Twin Oaks Industries
Machinery for Road MalntenanCA Industry Metal Fabrication
46 employees 50 employees
Salina Planing Mill, Inc. Salina Concrete PrOducts, Inc.
Custom Woodworking Concrete & Building Materials
34 employees 30 employees
Sunflower Restaurant Supply Power Ad Company, Inc.
Food Service Equipment illuminated & Non-illuminated Signs
28 employees 24 employees
King Industries Triad Manufacturing
Vertical & Mini Blind Wooden ornce Furniture
22 employees 20 employees
Love Box PKM Steel Services, Company
Corrugated Boxes Steel Fabrication
14 employees 14 employees
PKM Steel Services Company CAV Aerospace, Inc.
Steel Fabrication Deicing Equipment for Small Aircraft
14 employees 70 employees
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Major Employers
" !~
i,
...
Home of the
largest Frozen
Pizza Plant
in the world.
.. .
_ _ . 'l!L-- .,
R..19.~ a.:l2-ll1
Sovrce:
Challllnrlnl<
Memter flies
73
I
STA'I IS I leAL I Y 200g
I
Other Major Employers
Salina Regional Health Center
Hospital
1300 employees
City of Salina/Saline County
Local Governments
723 employees
Sunflower Bank
Home OffICe
195 employees
Kansas Gas Service
Gas Provider
Wal-Mart
Discount Store
421 employees
Asurlon, Inc.
Call Center
374 employees
Westar Energy
Electrical Provider
48 employees
Blue Beacon International
Truck Washes
544 employees
Kansas State Unlversity-Sallna
College of Technology & Aviation
141 employees
School Specialty Supply
Distribution of Educational Supplies
20 employees
Kansas Wesleyan University
Four Year Liberal Arts
140 employees
USD #305
K.12 Schools
1659 employees
Brown Mackie of Salina
Business College
41 employees
Dillon Stores
Grocery
343 employees
Pepsi Cola Bottling
Beverage Distributor
65 employees
Lowe's Home Improvement Warehouse
Hardware & Lumber
115 employees
. COns truetlon
. Retail
oReal Estate
oWholesale
.Transportation
"Education
. Finance
[] Wanufacturlng
. Information
.Administrative
DHealth
mArts
.Lodglng & FOOd! I
.Professlonal
.Go'l9mmenl
. Other
I
Other
Major Employers
I
I
I
I
Salina Is the
Mlcropolltlan
Center of
North Central
Kansas
for retail sales.
I
I
I
I
I
I
I
I I
I
RAVI...d 8,22-
07
I
Source:
Chamber1irok
I
I
74
I
I I
I
I I
I
I
I
I
I I
I
I
I
I
I
I
I
I
I
ST A TISTICAL FY 200S
At A Glance
POPULATION
YEAR SALINE COUNTY CITY OF SAL.INA
2000 53,597 45.765
2001 53,804 45.918
2002 53,937 46,023
2003 53,743 45.865
2004 53,903 45,964
2005 53,919 45.956
2006 54,150 46.140
2007 54,583 46.458
Population
Saline County
Salina offers a
flourishing
cultural life
with a
soph Istlcated
selection of the
arts,
entertainment,
live theater,
and
cultural
activities.
Age of Population, Saline County, 2000 and 2007
2000 2007
% of population
Under 18 26.2% 24.1%
18 to 64 59.8% 61.6%
65 and older 14% 14.3%
., .
- - ""-~.
Ravls.<t 10-0..08
Source:
Kansos Univrr-
sity
I
I
75
Salina Airport Authority
SALINE COUNTY EMPLOYMENT DATA
Annual Averal!e Unemployment -1999-Current
Year
Unemployment
Unemployment Rate
1999 762 2.50%
2000 913 3.10%
2001 1,119 3.70%
2002 1,240 4.10%
2003 1,414 4.60%
2004 1,488 4.80%
2005 1,368 4.40%
2006 1,356 3.90%
2007 1,289 3.80%
2008 1,274 3.70%
2009 (May) 5.60%
Saline County Unemployment Rate History
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
~
~~-~--~
~ -
r=-
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
(May)
Employment by Industry
2000
1990
Services
Retail Trade
Manufacturing
Government & Gov't Services
Construction
Finance, Insurance, Real Estate
Wholesale Trade
Transportation
Farm
Ag. Services
Mining
(D)=suppressed to avoid disclosure
11,135
7,864
6,967
4,422
(D)
2,208
1,714
1,939
771
(D)
(D)
8,935
6,332
5,969
3,823
1,715
1,491
1,814
1,222
851
265
262
Kansas Department of Labor
University of Kansas, Salina/Saline County Profile Report
United States Census Bureau
!I
I
:1
I
I
II
I
Compliance Section
,
! I
, I
I
I
I
I
I
I
I
I
I
I
A new and more detailed training
curriculum has been developed for
ARFF personnel with an improved
and even more rigorous training
schedule.
The Airport Authority ARFF
personnel work closely and train
with the Salina Fire Department and
other emergency response agencies
to best serve airport patrons.
I
I
I
I
I
I
I
I
I
I
I
II
I
I
I
I
I
I
I
I
I
'I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CLUBINE&
RElTELE
CHARIERED
.
Certifltd Public Aawnrants
tr
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P A
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.PA
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402.2267
Salina
785/ 82S.54 79
Salina Fax
785/ 82S.2446
Ellsworth
785/472-3915
Ellsworth Fax
785/472-5478
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MA TIERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Salina Airport Authority
We have audited the financial statements of Salina Airport Authority as of and for
the years ended December 31, 2008 and 2007, and have issued our report thereon
dated May 12,2009. 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 and the Kansas Municipal Audit
Guide, prescribed by the Director of Accounts and Reports, Department of
Administration of the State of Kansas.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Salina Airport Authority's
internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Salina
Airport Authority's internal control over financial reporting. Accordingly, we do
not express an opinion on the effectiveness of Salina Airport Authority's internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned
functions, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects Salina Airport Authority's ability to initiate, authorize, record,
process or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a
misstatement of Salina Airport Authority's financial statements that is more than
inconsequential will not be prevented or detected by Salina Airport Authority's
internal control.
A material weakness is a significant deficiency, or combination of significant
deficiencies, that results in more than a remote likelihood that a material
misstatement of the financial statements will not be prevented or detected by Salina
Airport Authority's internal control.
77
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Salina Airport Authority'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.
This report is intended solely for the information and use of the audit committee, management, others within
the organization, the City Commission and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
CLUBINE AND RETTELE, CHARTERED
~~Q~
May 12, 2009
78
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CLUBINE&.
RE1TELE
CHARIERED
Certified Public Aaountanu
tr
Robert I. Clubine, C.P.A.
David A. Rettele, C.P.A.
Jay D. Langley, C.P.A.
Jon K. Bell, C.P.A.
Leslie M. Corbett, C.P.A.
Stacy J. Sokol, C.P.A.
Marci K. Fox, C.P.A.
John T. Millikin, C.P.A.
Linda A. Suelter, C.P.A.
218 South Santa Fe
P.O. Box 2267
Salina, Kansas
67402-2267
Salina
785 J 825-5479
Salina Fax
785 J 825-2446
Ellsworth
785 J 472-3915
Ellsworth Fax
785 J 472-5478
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OM,B CIRCULARA-133
To the Board of Directors
Salina Airport Authority
Compliance
We have audited the compliance of Salina Airport Authority, with the types of
compliance requirements described in the U. S. Office of Management and Budget
COMB) Circular A-133 Compliance Supplement that are applicable to each of its
major federal programs for the year ended December 31, 2008. Salina Airport
Authority's major federal programs are identified in the summary of auditors'
results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grant
agreements applicable to each of its major federal programs is the responsibility of
Salina Airport Authority's management. Our responsibility is to express an opinion
on Salina Airport Authority'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-B3, 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 Salina Airport Authority'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 Salina Airport Authority's compliance
with those requirements.
In our opinion, Salina Airport Authority 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, 2008.
Internal Control Over Compliance
The management of Salina Airport Authority is responsible for establishing and
maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and
performing our audit, we considered Salina Airport Authority'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 but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of Salina Airport
Authority's internal control over compliance.
79
A control deficiency in an entity's internal control over compliance exists when the design or operation of a
control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on
a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that
adversely affects the entity's ability to administer a federal program such that there is more than a remote
likelihood that noncompliance with a type of compliance requirement of a federal program that is more than
inconsequential will not be prevented or detected by the entity's internal control
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that material noncompliance with a type of compliance requirement of a federal
program will not be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the audit committee, management, others within
the organization, the City Commission and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
1t~B~ AND RETIELE, CHARTERED
~aJ-.~
May 12, 2009
80
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
r---
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
, I
I
I
II
SALINA AIRPORT AUTHORITY
Salina, Kansas
SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS
For the Year Ended December 31, 2008
Federal
CFDA
Number
Federal Grantor I Pass-through Grantor I
Program or Cluster Title
U.S. Department of Transportation
Airport Improvement Program
20.106
U.S. Department of Homeland Security
Law Enforcement Officer Reimbursement
Agreement Program
97.090
Disaster Grants - Public Assistance
(presidentially Declared Disaster Areas)
97.036
Total Expenditures of Federal Awards
Pass-through
Entity
Identifying
Number
N/A
N/A
N/A
See notes to the schedule of expenditures of federal awards.
Schedule 1
Federal
Expenditures
$ 1,552,002
10,890
7,500
$ 1,570,392
81
SALINA AIRPORT AUTHORITY
Salina, Kansas
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2008
Note 1 Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Salina Airport Authority and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements ofOMB Circular A-I33, Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
82
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA AIRPORT AUTHORITY
Salina, Kansas
Schedule 2
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended December 31, 2008
There are no prior audit findings.
83
SALINA AIRPORT AUTHORITY
Salina, Kansas
Schedule 3
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2008
SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
I. Type of auditor's report issued:
Unqualified
2. Internal control over financial reporting:
Material weaknesses identified?
--yes lno
Significant deficiencies identified that are not considered
to be material weaknesses?
--yes lnone reported
3. Noncompliance material to financial statements noted?
---yes lno
Federal Awards
1. Internal control over major programs:
Material weaknesses identified?
---yes lno
Significant deficiencies identified that are not considered
to be material weaknesses?
---yes lnone reported
2. Type ofauditor's report issued in compliance for major
programs:
Unqualified
3. . Any audit findings disclosed that are required to be reported
in accordance with Section 51O(a) ofOMB Circular A-l33:
---yes lno
4. Identification of major programs:
20.106
Airport Improvement Program
5. Dollar threshold to distinguish between Type A and
Type B programs:
$300,000
6. Auditee qualified as a low-risk auditee?
.lLyes _no
SECTION II - FINANCIAL STATEMENT FINDINGS
None.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
84
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~--
I
,I
I
I
I
I
I
I
I
I
I
I
I
I
II
I
I
I I
I
SALINA AIRPORT AUTHORITY
Salina, Kansas
Schedule 4
CORRECTIVE ACTION PLAN
For the Year Ended December 31, 2008
None required.
85
(THIS PAGE INTENTIONALLY LEFr BLANK)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
The Salina Municipal Airport was the home for Hawgsmoke 2008
from October 15-18. Hawgsmoke is the biennial bombing and
tactical gunnery competition and reunion of the A-10 Thunderbolt II
community. Active duty, guard and re~erve squadrons from across
the country and globe, as far away as South Korea and Germany,
sent teams to compete for the honor of the
"Best of the Best" in ground attack and target
destruction. The 2008 champion, the 442d
Fighter Wing from Whiteman AFB in Missouri,
and a frequent airport user hosted Hawgsmoke
2008 in Salina, Kansas.
~GSMOKE 200.
.~ ~
\~J
(.~...~~\
~~
\, ~
""IINA. KI\"S.~
li--- .:-; ----------
>""
:
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I,
I
I
SA~!1!f1!!!J!t I
SA LINAA irport
", 4uiJuvu4 I I J
3237 Arnold I Salina, KS 67401-8190
AaJu.aM~
SLNAirport
~ ~