Audit - 2010
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF
CITY OF SALINA, KANSAS
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2010
Prepared by Department of Finance and Administration
of City of Salina, Kansas
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2010
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i - iv
Organizational Chart v
List of Principal Officials vi
FINANCIAL SECTION
Independent Auditor’s Report on the Basic Financial Statements 1 - 2
Management's Discussion and Analysis 3 - 13
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Assets 14
Statement of Activities 15
Fund Financial Statements
Balance Sheet - Governmental Funds 16
Reconciliation of the Total Governmental Fund Balance to
Net Assets of Governmental Activities 17
Statement of Revenues, Expenditures, and Changes in
Fund Balance - Governmental Funds 18
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance with the Government-Wide Statement of Activities 19
Statement of Net Assets - Proprietary Funds 20
Statement of Revenues, Expenses, and Changes in Fund
Net Assets - Proprietary Funds 21
Statement of Cash Flows - Proprietary Funds 22 - 23
Statement of Assets and Liabilities - Agency Funds 24
Notes to the Basic Financial Statements 25 - 49
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2010
TABLE OF CONTENTS - CONTINUED
Page
FINANCIAL SECTION - CONTINUED
Required Supplementary Information
Schedule of Funding Progress and Schedule of Employer Contributions 50
Schedules of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Non-GAAP Basis)
General Fund 51 - 53
Flood and Drainage Improvement Fund 54
Tourism and Convention Fund 55
Special Gas Fund 56
Bicentennial Center Fund 57
Combining Statements and Individual Fund Schedules
Combining Statements - Nonmajor Funds
Fund Descriptions 58 - 59
Combining Balance Sheet - Nonmajor Governmental Funds 60
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds 61
Combining Balance Sheet - Nonmajor Special Revenue Funds 62 - 63
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds 64 - 65
Combining Balance Sheet - Nonmajor Permanent Funds 66
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Permanent Funds 67
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Basis):
Business Improvement City Fund 68
Neighborhood Park Fund 69
Special Parks and Recreation Fund 70
Special Alcohol Fund 71
Sales Tax Capital Fund 72
Sales Tax Economic Development Fund 73
Fair Housing Fund 74
Arts & Humanities Fund 75
Debt Service Fund 76
Solid Waste Disposal Fund 77
Water and Sewer Fund 78
Sanitation Fund 79
Golf Course Division Fund 80
Risk Management Fund 81
Workers’ Compensation Fund 82
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2010
TABLE OF CONTENTS - CONTINUED
Page
FINANCIAL SECTION - CONTINUED
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Basis) – Continued:
Health Insurance Fund 83
Central Garage Fund 84
Information Systems Fund 85
Internal Service Fund Descriptions 86
Combining Statement of Net Assets - Internal Service Funds 87
Combining Statement of Revenues, Expenses, and Changes in Net
Assets - Internal Service Funds 88
Combining Statement of Cash Flows - Internal Service Funds 89 - 90
Fiduciary Fund Descriptions - Agency Funds 91
Combining Balance Sheet - Agency Funds 92
Combining Statement of Changes in Assets and Liabilities - Agency Funds 93
Schedule
STATISTICAL SECTION
Net Assets by Component - Last Eight Years 1 94
Changes in Net Assets - Last Eight Years 2 95
Fund Balances, Governmental Fund - Last Eight Years 3 96
Changes in Fund Balances, Governmental Funds - Last Eight Years 4 97
Tax Revenue by Source, Governmental Funds - Last Eight Years 5 98
Assessed and Estimated Actual Value of Taxable Property – Last Ten Years 6 99
Direct and Overlapping Property Tax Rates – Last Ten Years 7 100
Principal Property Tax Payers 8 101
Property Tax Levies and Distributions 9 102
Direct Sales Rate by Taxing Entity 10 103
Water Sales by Class of Customer 11 104
Ratio of Outstanding Debt by Type 12 105
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2010
TABLE OF CONTENTS - CONTINUED
Schedule Page
STATISTICAL SECTION - CONTINUED
Ratio of Net General Bonded Debt Outstanding 13 106
Direct and Overlapping Governmental Activities Debt 14 107
Legal Debt Margin 15 108
Pledged Revenue Coverage 16 109
Demographic and Economic Statistics 17 110
Principal Employers 18 111
City Government Full Time Employees by Function/Program 19 112
GOVERNMENTAL AUDIT SECTION
Schedule of Expenditures of Federal Awards 113
Notes to Schedule of Expenditures of Federal Awards 114
Schedule of Findings and Questioned Costs 115 - 116
Independent Auditor’s Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with “Government Auditing Standards” 117 - 118
Independent Auditor’s Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control over
Compliance In Accordance with OMB Circular A-133 119 - 120
INTRODUCTORY SECTION
i
DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735
AND ADMINISTRATION FAX (785) 309-5738
Rodney Franz, Director TDD (785) 309-5747
300 West Ash, P.O. Box 736 E-MAIL rod.franz@salina.org
Salina, Kansas 67402-0736 Website: www.ci.salina.ks.us
October 1, 2011
To the Citizens of the City of Salina, Kansas:
The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2010, is hereby submitted. The City’s Finance Department prepared the report. Responsibility for
both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures,
rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects
and is reported in a manner designed to present fairly the financial position and results of operations of all various
funds and account groups of the City. We believe that all disclosures necessary to enable the reader to gain an
understanding of the City's financial activities have been included.
Report Format
The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and
Statistical. The introductory section includes a description of the City, including services provided, and
explanation of the City’s accounting system and budgetary controls, and a brief discussion of the City’s economic
condition and outlook. The City's organizational chart is also included to assist the reader in understanding the
structure of the City. The financial section includes the Independent auditor’s report, Management’s discussion &
analysis, Government wide financial statements, Fund financial statements, Notes to the financial statements, and
Individual and combining statements and schedules. The statistical section includes selected financial and
demographic information, generally presented on a multi-year basis.
The reader is specifically directed to Management’s Discussion and Analysis (MD&A) which immediately follows
the independent auditor’s report. MD&A provides a narrative explanation and overview of significant features
and trends reflected by data in the financial statements.
Accounting Systems and Internal Controls
A critical part of the control system is the City’s comprehensive Budgetary and Financial Policies, which establish
guidelines for budgetary and financial practices. The Budgetary and Financial Policies are reviewed by the City
Commission and updated each year as a part of the budget process.
City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the
assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow
for the preparation of financial statements in conformity with generally accepted accounting principles. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by
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management.
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the
Fund level, in accordance with State Statutes. However, management control is maintained at the department
level. The City uses an encumbrance accounting system, in which estimated purchase amounts are recorded
prior to the release of purchase orders to vendors. Open encumbrances are reported as reservations of fund
balance at December 31, 2010 in the general fund and the special revenue funds. Various internal compliance
procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of
accountability for both revenues and expenditures.
Independent Audit
Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and
transactions of all administrative departments of the City by independent certified public accountants selected by
the City Commission. This requirement has been complied with and the auditor's opinion has been included in
this report.
Profile of the Community
The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a
City of the First Class on July 9, 1920. The City has had a Commission-City Manager form of government since
1921. The Commission is comprised of five members elected at large. Each year the commission chooses one
member to act as Mayor. The City Manager is appointed by the Commission, and acts as it’s primary agent in
accordance with state statute. Other city officers and employees are appointed by the City Manager. The current
population of the City is 47,707.
The reporting entity includes the City of Salina as well as two discretely presented component units, both
proprietary fund types. The Salina Airport Authority operates the Salina Municipal Airport and Airport Industrial
Center, and the Salina Housing Authority administers public housing programs within the City of Salina. In
addition, the City of Salina participates in two joint ventures with Saline County, the Salina - Saline County Board
of Health and the City-County Building Authority. This report includes all funds and account groups of the City.
The City provides a full range of services including police and fire protection, development services, construction
and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events;
emergency medical services and convention facilities. In addition to general government activities, the City also
provides water, wastewater, sanitation, and solid waste services; therefore, these activities are included in the
reporting entity.
Economic Outlook and Strength
The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has
drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to
the community. Such companies include Pepsi-cola, Exide Battery, Philips Lighting, ElDorado Bus, and
Schwans. Currently manufacturing, retail trade, and service industries rank as the three primary employers in the
City. No single industry is dominant.
The City of Salina retains its position near the top of a list of first class cities with respect to ‘trade pull factor.”
The pull factor measures the degree to which a city or county area captures retail trade from outside the
jurisdiction. A pull factor of greater than 1 indicates that a city is attracting more retail trade from outside the
city/county than it is losing to other counties. It is apparent from this that Salina continues to serve as a regional
economic hub in 2010.
iii
Major Initiatives
In November, 2008, voters elected to increase the ¼ cent tax to .40 cent, and extend the sunset for an additional
ten years. until March 31, 2018. Eighty-five percent (85%) of the tax is to be used for capital improvements and
tax stabilization. The remaining 15% is to be used for economic development programs.
In 2010, a new $11 million Aquatics facility, including modern features such as a zero depth entry wave pool, a
lazy river, multiple water slides, and a competitive lap pool was completed. Several major street improvement
projects (South Ohio extension, and South 9th reconstruction) representing an investment of more than
$6,500,000 were also completed.
Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year.
The community remains committed to recycling and resource conservation, with several initiatives that began in
1997, including a yard waste recycling and composting program in addition to continuing a mulching mower
rebate program. The community currently has about 4,700 yard carts placed to encourage recycling of yard
waste as an alternative to disposal. A Pilot residential recycling program was continued in 2004. The curbside
recycling program was converted to a permanent service in 2005, with 900 households participating.
Addressing fiduciary pressures generated by a recessionary economy has also been a challenge. The primary
approach has been to reduce staffing through attrition, after careful evaluation of each vacancy. By the end of
2010, full time staffing has bee reduced from 511 to 479. Merit and cost of living adjustments also remain frozen.
Capital Improvement Planning
The City's Capital Improvement Plan (CIP) consists of two components. One component consists of “routine”
capital—including vehicle and equipment replacement, technology replacement, building repair and improvement,
routine pavement maintenance activity, utility system enhancements and similar items. The amount of funding for
these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated
over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate
to the nature of the purchase.
The second component of the CIP includes major projects that typically require issuance of bonds or notes,
although these projects may also be supplemented with available cash and grant financing. The plan is updated
each year after an extensive evaluation of the demands on future financial resources. The Capital Improvement
program is scheduled for a major revision as the result of the sales tax to be used for that purpose.
Construction Initiated*: 2011 2012 2013 2014 2015
General Fund 700,000$ 700,000$ 780,000$ 780,000$ 780,000$
Sales Tax* 2,693,146$ 1,720,000$ 1,795,000$ 1,730,000$ 1,555,000$
Flood and Drainage Fund 250,000$ -$ -$ -$ -$
Special Park Fund 100,000$ 100,000$ 100,000$ 100,000$ 100,000$
Gas Tax Fund 1,300,000$ 1,300,000$ 1,300,000$ 1,300,000$ 1,300,000$
Solid Waste Fund 467,000$ 145,000$ 50,000$ 50,000$ 50,000$
Sanitation Fund 136,300$ 136,300$ 136,300$ 136,300$ 136,300$
Water & Wastewater Fund 6,400,000$ 4,500,000$ 4,500,000$ 4,500,000$ 4,500,000$
General Obligation Bonds 8,644,000$ 4,500,000$ -$ 1,600,000$ 3,400,000$
Revenue Bonds 16,120,000$ 4,150,000$ 4,810,000$ 4,000,000$ 25,350,000$
Other Sources 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Total 36,860,446$ 17,301,300$ 13,521,300$ 14,246,300$ 37,221,300$
*The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design,
acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or
more years depending on project magnitude) subsequent to this date.
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Financial Policies
The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances,
capital improvements, operating budgets, long term debt management, accounting, auditing and financial
reporting, revenues, cash management and investments. Financial policies contribute to financial stability by:
1. Providing consistent guidance in decision making
2. Establishing appropriate levels of fund balances
3. Governing the use of one time or unanticipated resources
4. Providing a multi-year capital improvements process
5. Establishing responsibilities and deadlines for budget preparation
6. Providing for a balanced annual operating budget
7. Providing guidelines on the use of debt, including appropriate purposes and terms
8. Provide a linkage between capital improvement scheduling and long term debt management planning
9. Require annual audits and financial reporting in conformance with Generally Accepted Accounting
Procedures
10. Require timely and regular interim financial reporting to the Governing body
11. Insure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.).
Acknowledgments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated,
professional advice and effort of the Lowenthal, Webb, and Odermann auditing team. A special thank you
needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly and
reconciliation. Finally, preparation of this report would not have been possible without the support of the City
Commission.
Sincerely,
Jason A. Gage Rodney Franz
City Manager Director of Finance
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vi
FINANCIAL SECTION
1
LOWENTHAL, WEBB & ODERMANN, P.A.David A. Lowenthal, CPA
Patricia L. Webb, CPA
Audrey M. Odermann, CPA ———
Abram M. Chrislip, CPA
Caroline H. Eddinger, CPA
Grant A. Huddin, CPA
Brian W. Nyp, CPA ———
Members of American Institute
and Kansas Society of
Certified Public Accountants
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
Website: www.lswwcpa.com
INDEPENDENT AUDITOR’S REPORT
ON THE BASIC FINANCIAL STATEMENTS
Mayor and City Commissioners
City of Salina, Kansas
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Salina, Kansas, as of and for the year ended December 31, 2010, which collectively
comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these basic financial
statements based on our audit. We did not audit the financial statements of the Salina Airport Authority which
statements reflect total assets of $55,005,376 as of December 31, 2010 and total revenues of $5,341,958 for the
year then ended, and the Housing Authority of the City of Salina which statements reflect total assets of $7,858,003
as of June 30, 2010 and total revenues of $2,493,295 for the year then ended, which are discretely presented
component units in the accompanying financial statements. Those financial statements were audited by other
auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts
included for the Salina Airport Authority and the Housing Authority of the City of Salina is based solely on the reports
of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America,
the “Kansas Municipal Audit Guide,” and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Salina, Kansas, at December 31, 2010, and the respective changes in financial
position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated September 28, 2011, on
our consideration of the City of Salina’s internal control over financial reporting and on 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 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 should
be considered in assessing the results of our audit.
2
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis on pages 3 through 13 and the schedules of funding progress on page 50 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s financial statements as a whole. The introductory section, combining and individual nonmajor fund
financial statements and schedules, and statistical tables as listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The accompanying
schedule of expenditures of federal awards 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 also not a required part of the financial statements. The combining and individual nonmajor
fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying account and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
September 28, 2011
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Management Discussion and Analysis
This section of the report contains an overview and analysis of the City of Salina’s financial statements for the fiscal
year ended December 31, 2010. The information contained here, as well as the information contained in the letter of
transmittal, are intended to provide the reader of the financial statements with a well rounded picture of the City’s
financial condition.
Financial Highlights
♦ Net Assets increased by $612,000. Governmental Net Assets declined by $2,056,000, while Business Type Net
Assets increased by $2,668,000.
♦ Activity in the construction accounts had a notable influence on the components of Net Assets, particularly in
Governmental Activities. There, the amount invested in capital assets, net of related debt, increased by
$11,028,000, while unrestricted net assets declined by nearly the same amount. This largely reflects the
transactions related to Aquatics Center construction.
♦ Liabilities also increased substantially, due to the issuance of a $2,500,000 temporary note. Once again, this is a
construction related transaction.
♦ In Business Type Activities, the Water and Sewer fund saw asset growth, despite increases in operating
expenditures, due to good revenue production.
♦ Refunding activity in the Water and Sewer fund provided significant savings.
♦ Fund Balances declined significantly ($11,897,994). The majority of this was due to spend-down in the Capital
Projects fund, which declined by $10,383,363
♦ Economic conditions had a significant influence of General fund balances, which declined by $1,470,200.
Economic conditions are reflected in a decline in sales tax, a slight decline in real estate values, a decline in
motor vehicle taxes, and an increase in tax delinquency.
♦ Personal property taxes continued to decline as a result of the exemption of business equipment from the tax
rolls.
♦ Investment revenues dropped significantly for the third year in a row.
♦ The unemployment rate increased from 5.7% to 6.4%
♦ Total General Fund revenues increased by $74,000, due largely to increases in service charge revenue
♦ General fund expenses increased, in large part due to separation pay and benefits.
The Basic Financial Statements
The basic financial statements of the City include the government-wide financial statements and the fund financial
statements. The notes to the financial statements follow the basic financial statements, and are essential for the
reader’s understanding of the financial statements. Other supplementary information, including the combining
schedules for non-major funds and the budgetary comparison reports, are at the end of this report to provide
additional information for the reader.
Government-wide Financial Statements
The government-wide financial statements present the results of the City’s operations using the accrual basis of
accounting, the same basis as is used by private sector businesses. These statements focus on the long-term
financial picture of the City as a whole
The Statement of Net Assets reports all of the City’s assets and liabilities. Net assets, the difference between assets
and liabilities, are an important measure of the City’s overall financial health. Net assets represent the total
accumulated and unused resources available to the City for the purpose of providing services. Over time, the
increases and decreases in net assets can be monitored to determine if the City’s financial position is improving or
deteriorating.
The Statement of Activities shows how the net assets have changed during the fiscal year. One unique feature of
this statement is how it shows the revenues and expenses related to specific programs and how much of those
programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of
accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements
show the operations of the City broken down between governmental and business type activities. Governmental
activities are the operations of the City generally supported by taxes, such as Public Safety (Police, Fire, and EMS),
4
Public Works, Public Health, and Culture & Recreation. Business-type Activities are operations of the City that are
intended to recover a significant portion of their costs through user fees and charges. These include Water and
Sewer, Refuse collection, the Golf Course, and operation of the City Solid Waste Facility.
The government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as
discretely presented component units of the City. Note 1, item A in the Notes to the Financial Statements provides a
more complete explanation of the relationship between these entities and the City of Salina.
Fund Financial Statements
The City uses three types of funds to manage its resources: governmental funds, proprietary funds, and fiduciary
funds. A fund is a fiscal entity with a set of self-balancing accounts recording financial resources together with all
related liabilities and residual equities and balances, and the changes therein. These accounting entities are
separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with
regulations, restrictions, or limitations.
Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are
recognized when they become measurable and available, and expenditures are recognized when the related fund
liability is incurred with the exception of long term debt and similar items which are recorded when due. The focus is
on the short-term financial picture of the operations of the individual fund, rather than long-term citywide view
provided by the government-wide statements. Major Governmental Funds are presented in individual columns, while
Non-major Governmental Funds are aggregated into an “Other Governmental Funds” column. A combining
statement for the Non-major funds is presented as supplementary information in the back of the report. The
information presented in these statements can be compared to the governmental activities information in the
government-wide statements. The reconciliation at the end of the fund financial statements details the relationship
between the two types of financial statements.
Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are
prepared on the accrual basis of accounting, and are used to account for business-type activities. Enterprise fund
statements present the same information that is in the government-wide statements for business-type activities, but
in greater detail. The City of Salina currently operates four enterprise funds: Sanitation Collection, Solid Waste
Disposal, Golf Course, and Water and Sewer. Internal Service funds are used to account for the cost of operations
shared by various departments of the City. The city operates five internal service funds. Three of these are for self-
insurance activity: Risk Management, Workers Compensation Reserve, and Health Insurance. The remaining two
account for our Information Services activity and for the Central Garage operation. A combining statement for these
internal service funds can be found in the supplementary information following the notes to the financial statements.
Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a
special class of Fiduciary Fund in which liabilities always equal assets, and thus there are no net assets. The City of
Salina operates nine Agency funds. Schedules for these funds may be viewed in the supplementary section of this
report.
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used. Permanent funds operated by the City include the Citizenship Trust, Cemetery and
Mausoleum Endowments, and the Tri-centennial Commission fund.
Notes to the Financial Statements
The notes to the financial statements are an integral part of the basic financial statements since they contain valuable
additional information necessary for gaining a complete understanding of the City’s financial statements.
Other Information
In addition to the basic financial statements and the notes described above, this report also presents the general fund
and major special revenue fund’s budgetary statements as required supplementary information directly following the
notes to the basic financial statements. The combining statements for the non-major funds are shown after the
required supplementary information. Finally, the statistical section includes selected statistical data about the City’s
operations and economy.
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The City as a Whole
This section will identify, discuss, and analyze significant differences and trends that will enhance the reader’s
understanding of the City’s financial position.
Tax Base and Economy
The City of Salina relies on three major groups of revenues to support it’s operations. Each of these revenue
streams has a different revenue base. In declining order of magnitude, they are charges for service, sales taxes, and
property taxes. Sales taxes and property taxes apply primarily to Governmental Activities, while charges for services
apply to both Governmental (35%) and Business-type (65%) activities.
Charges for Services account for about 48% ($34,757,000) of the City’s revenue stream. Charges for Service
depend on both the rate that is set for the activity, as well as the volume of services provided. The following table
illustrates service volume and rate adjustments for some of the more significant services for the year ending
December 31, 2010.
Description 2009 Volume 2010 Volume Change Rate Comments
Golf Course:
Rounds, 18 Hole 32,337 30,420 (1,917) 4% Increase
Rounds, Par 3 4,150 3,707 (443) 4% Increase
Annual Golf Members 60 33 (27) 4% Increase
River Festival Gate Count 77,856 64,835 (13,021) No change
BiCentennial Center -
Attendance NA 130,000
Meals Served NA 18,031
Development Services -
Inspections Performed 7,221 6,391 (830) No Change
Permits Issued 2,900 3,031 131 No Change
Finance/Administration -
EMS Runs Billed 3,301 3,473 172 5% Increase
Licenses Issued 1,296 1,296
Water Billings Issued 239,796 238,635 (1,161)
Water Metered (in Billion Gallons) 1.82 1.97 0
Parks and Recreation -
Kenwood Cove Attendance NA 119,000 New Facility in 2010
Youth Teams NA 164
Adult Teams NA 300
Special Pops Programs NA 109
Trips/Tours offered NA 31
Youth Tournament Teams 424 (151)
Adult Tournament Teams 140 140
Municipal Court
Annual Cases Heard -
Public Works -
Sanitation Customers 14,483 14,520 37 2 % Increase
Landfill Tonnage 96,013 94,907 (1,106) $.50 per ton increase
Street Cut and Excavation Permits 245 181 (64)
Concrete Permits 152 155 3
Water and Wastewater -
Water Treated (Billion Gallons) 2.10 2.30 0.20 5.5% Increase
Wastewater Treated (Billion Gallons) 1.50 1.50 - 4.4% increase
**In general, if not specified in the table, rates were adjusted an average of about 2% for most services.
575
6
Sales taxes are the next largest component of the revenue mix, providing 21% ($15,225,000) of the total revenues.
This is a slightly smaller portion than 2009 (21%). The City receives a .90% City-wide sales tax, and also a portion of
the County-wide 1% sales tax. Forty-four percent, (a rate of .4%) of the City-wide sales tax is required to be used for
special purposes. The remaining .5%, along with the City portion of the Countywide tax is available for general
purposes. Total revenue from the sales tax in 2010 was $ 15,225,000, up from $ 15,049,000 in 2009. This
represents an increase of 11.7% in tax proceeds distributed to the City. However, this increase was attributable
entirely to a partial year implementation of an additional special tax rate of .15%. The general City sales tax
proceeds declined from $11,669,000 to $11,117,000, or 4.7%. This follows a 2.6% decline for 2009.
A number of factors affect the sales tax. First are the regional and local economic conditions and relationships.
These are reflected in the proceeds of the City-wide tax, which declined by about 2.6%.
The City was unfavorably affected by the formula used to distribute the County-wide sales tax among participating
jurisdictions (only Cities and the County participate, School and other special districts do not). The formula is based,
in part, on the property tax efforts of each jurisdiction. Because the portion of the overlapping levy attributable to the
City of Salina was decreased for 2010, the City’s allocated portion of the County-wide sales tax was increased from
62.5% in 2009 to 61.6% in 2010. Total Countywide taxes received in 2010 were approximately $6,394,000. The
change in formula thus resulted in a shift of about $93,000 from the City of Salina to Saline County in 2010.
On November 4, 2008, Salina voters approved an increase of the special purpose .25% tax to a .40% tax. The
extended tax is to sunset March 31, 2018. The tax was also modestly re-purposed, for Capital and Economic
Development purposes only.
Property Taxes are the third major component of the revenue mix, accounting for 16% ($11,179,000) of total
revenues. Property taxes consist of two components: Real estate and personal property taxes which are
determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes, which are
established by a countywide average tax rate, and the assessed value of the vehicle.
Real estate assessed value declined by 0.6%. The total City mill levy was decreased slightly, by .1%, while the
overlapping levy increased by 1.1% Tax delinquency increased from 4.2% to 5.6%.
Personal property value continued to slide, presumably as a result of removing business equipment from the tax
base. Personal property value has now dropped to $23.1 million from it’s peak of $39.7 million in 2007. At the 2010
tax rate, this exemption is equivalent to $430,000 in lost revenue for 2010.
Motor Vehicle value decreased by 1.6%. Motor vehicle taxes are distributed based on a formula using prior year’s
tax effort (similar to the Countywide Sales Tax Distribution).
The following table summarizes the comparative property assessed values and tax levy rates:
Fiscal (Budget) Year 2009 2010 Change
Real Estate and Personal Property Assessed Valuation 399,982,148 397,470,626 (2,511,522)
City Mill Levy ($ per $1,000)
Operating (General Fund, Employee Benefits, Flood and Drainage
Fund)21.749 20.082 (1.667)
Debt Service Millage 4.137 5.773 1.636
Total City Levy Rate 25.886 25.855 (0.031)
Total Overlapping Levy 123.359 124.707 1.348
Percent of Current Taxes Collected 95.8% 94.4% (0.014)
Ratio of Total Taxes (including delinquent tax collections) to Taxes
Levied 103.2% 97.1% (0.061)
Motor Vehicle Valuation 51,351,656 50,330,252 (1,021,404)
The unemployment rate in Saline County increased significantly from 5.7% in 2009 to 6.4% in 2010, reflecting
general economic conditions. This is still slightly below the statewide and significantly below the national
unemployment rate. The total labor force decreased to 26,155, a change of 2.4%.
7
In 2010, the top ten property taxpayers accounted for 12.41% of total assessed value. This is slightly more
concentrated than ten years ago (at 11.32%)
Statement of Net Assets
Net assets may, over time, provide an indicator of a government’s financial position. In the case of the City of Salina,
assets exceeded liabilities by $181,735,000 at December 31, 2010. This represents an increase in net assets of
$612,000 over 2009. A comparative condensed Statement of Net Assets at December 31, 2009 and 2010:
2009 2010 2009 2010 2009
% of
Total 2010
% of
Total
2009 - 2010
Change
Cash and Investments 24,782$ 13,935$ 12,756$ 17,530$ 37,538$ 14% 31,465$ 12% (6,073)$
Other Current Assets 13,047$ 12,309$ 3,697$ 2,025$ 16,744$ 6% 14,334$ 5% (2,410)$
Noncurrent (Capital) Assets 154,041$ 166,122$ 58,573$ 58,273$ 212,614$ 80%224,395$ 83%11,781$
Total Assets 191,870$ 192,366$ 75,026$ 77,828$ 266,896$ 100%270,194$ 100%3,298$
Current Liabilities 20,437$ 21,918$ 2,789$ 3,352$ 23,226$ 27% 25,270$ 29% 2,044$
Noncurrent Liabilities 51,579$ 52,650$ 10,967$ 10,538$ 62,546$ 73%63,188$ 71%642$
Total Liabilities 72,016$ 74,568$ 13,756$ 13,890$ 85,772$ 100%88,458$ 100%2,686$
Net Assets:
Invested in capital assets, net of
related debt 101,974$ 113,001$ 48,234$ 48,079$ 150,208$ 83% 161,080$ 89% 10,872$
Restricted for Permanent Funds 439$ 417$ -$ -$ 439$ 0% 417$ 0% (22)$
Restricted for Debt Service 735$ 572$ 1,553$ 1,553$ 2,288$ 1% 2,125$ 1% (163)$
Unrestricted 16,706$ 3,808$ 11,483$ 14,306$ 28,189$ 16%18,114$ 10%(10,075)$
Total Net Assets 119,854$ 117,798$ 61,270$ 63,938$ 181,124$ 100%181,736$ 100%612$
Percent of Total Assets 66% 65% 34% 35% 100% 100%
Cash and Investments as a
percentage of current liabilities 121% 64% 457% 523% 162% 125%
Governmental Activities
Business-Type
Activities
Comparative Condensed Statement of Net Assets, 2009 and 2010
(In $000)
Total Primary Government
The largest segment of the City’s net assets (89%) reflects its investment in capital assets (land, buildings, streets
and drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still
outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related
debt can not come from liquidation of the asset. Such resources generally must be provided from other sources,
such as future taxes or user charges.
A small portion of net assets (1%) is restricted for debt service. The remainder (unrestricted) of net assets (10%)
may be used to meet the City’s obligations to citizens and creditors. This is significantly lower than the 2009 amount
of 16%.
In 2010, the amount invested in capital assets net of related debt increased by $10,872,000. Unrestricted net assets
decreased by $10,073,000. This largely reflects an decrease in cash and investments concentrated in
Governmental Activities. These shifts are quite large. They reflect (primarily) the financial transactions related to the
construction of the Aquatics facility, an $11,000,000 project, through 2009 and 2010. Schedule 1, in the
supplemental information in the Appendix reveals that the range for unrestricted net assets as a percentage of total
net assets, varies from 9% of total net assets (in 2006) to 16% of total net assets (in 2003 and 2010). Thus, while
the shift is large, the values remain within historical limits, and is attributable to the influence of a single large project.
Total liabilities increased, with the bulk of the increase attributable to non-current liabilities. This is attributable to
$2,500,000 in a temporary note payable. Long term liabilities increased only slightly, as did total net assets.
8
During the year ended December 31, 2010, there were several significant events that changed the balance of net
assets.
Governmental Activities. 2010 saw an decrease in cash and investments in Governmental funds. This is due largely
to increases in expenditures for both capital and operating requirements and debt issuance transactions. One
significant contributor to this trend was spend down of the debt proceeds for the Aquatics Center.
Business-type Activities: The Water and Wastewater fund had a significant influence on the Business Type Activities
net assets. The increase in net assets is due to good revenue production, controlled expenses, and the refinancing
of several outstanding debt obligations.
Statement of Activities
A condensed statement of activities is shown below.
2009 2010 2009 2010 2009 % 2010 %2009 - 2010
Program Revenues:Change
Charges for Services 9,921$ 12,306$ 20,933$ 22,419$ 30,854$ 45% 34,725$ 48% 3,871$
Operating Grants and Contributions 3,163$ 3,415$ 3,163$ 5% 3,415$ 5% 252$
General Revenues:
Property Taxes 11,865$ 11,179$ 11,865$ 17% 11,179$ 16% (686)$
Sales Taxes 15,049$ 15,225$ 15,049$ 22% 15,225$ 21% 176$
Other Taxes 5,791$ 6,298$ 5,791$ 9% 6,298$ 9% 507$
Investment Revenue 277$ 81$ 242$ 67$ 519$ 1% 148$ 0% (371)$
Other Miscellaneous 506$ 565$ 353$ 341$ 859$ 1%906$ 1%47$
Total Revenues: 46,572$ 49,069$ 21,528$ 22,827$ 68,100$ 100%71,896$ 100%3,796$
Expenses:-$
General Government 14,664$ 10,845$ 14,664$ 20% 10,845$ 15% (3,819)$
Public Safety 18,539$ 18,592$ 18,539$ 25% 18,592$ 25% 53$
Public Works 9,781$ 9,782$ 9,781$ 13% 9,782$ 13% 1$
Public Health and Sanitation 1,390$ 1,365$ 1,390$ 2% 1,365$ 2% (25)$
Culture and Recreation 5,397$ 6,572$ 5,397$ 7% 6,572$ 9% 1,175$
Planning and Development 3,375$ 3,715$ 3,375$ 5% 3,715$ 5% 340$
Solid Waste Disposal 2,287$ 2,925$ 2,287$ 3% 2,925$ 4% 638$
Water and Sewer 12,995$ 14,050$ 12,995$ 18% 14,050$ 19% 1,055$
Sanitation 2,224$ 2,261$ 2,224$ 3% 2,261$ 3% 37$
Golf Course 897$ 817$ 897$ 1% 817$ 1% (80)$
Interest on Long Term Debt 1,983$ 2,257$ -$ -$ 1,983$ 3%2,257$ 3%274$
Total Expenses 55,129$ 53,128$ 18,403$ 20,053$ 73,532$ 100%73,181$ 100%(351)$
Increase in net assets before transfers (8,557)$ (4,059)$ 3,125$ 2,774$ (5,432)$ (1,285)$ 4,147$
Transfers and other extraordinary items 255$ 92$ (255)$ (92)$ -$ -$ -$
Increase in Net Assets (8,302)$ (3,967)$ 2,870$ 2,682$ (5,432)$ (1,285)$ 4,147$
Net Assets, January 1 128,045$ 119,854$ 58,367$ 62,270$ 186,412$ 182,124$ (4,288)$
Prior Period Adjustment 111$ 1,911$ 33$ (14)$ 144$ 1,897$ 1,753$
Net Assets, January 1, restated 128,156$ 121,765$ 58,400$ 62,256$ 186,556$ 184,021$ (2,535)$
Net Assets December 31 119,854$ 117,798$ 61,270$ 64,938$ 181,124$ 182,736$ 1,612$
Condensed Comparitive Statement of Activities, 2009 and 2010
(In $000's)
Governmental Activities Business-Type Total Primary Government
Governmental Activities. Total expenses for Governmental Activities for the year ending December 31, 2010 were
$53,129,000 compared to $55,129,000 in 2009. Governmental activities represent 70% of the City’s total
expenses. The largest element of Governmental Activity expense was Public Safety, accounting for 35% of the total.
Charges for service attributable to Governmental Activities totaled $12,306,000 and operating grants for those
purposes were $3,415,000. The balance was funded by general revenues. Sales taxes accounted for $15,225,000
of the general revenues, with property taxes providing $11,179,000. Net assets decreased by $3,967,000 as a result
of Governmental Activities.
Business Type Activities. Total expenses for Business-type Activities for the year were $22,419,000, or 25% of the
City’s total expense. The majority of this expense ($16,520,000) is attributable to Water and Sewer operations, with
the other activities (Solid Waste Disposal, Sanitation, and Golf Course) costing a combined total of $5,899,000.
These activities are primarily supported by user charges, with only $408,000 coming from general revenues,
representing largely the interest earned on fund balances held by the City. Net assets increased by $2,682,000 as a
result of Business-type Activity operations.
9
Fund Financial Analysis
Governmental Funds
Fund Balances:
The table below shows the Governmental Fund balances for major funds for the years ended December 31, 2009
and December 31, 2010.
Fund 2009 2010 Change
General 5,087,381$ 3,617,181$ (1,470,200)$
Flood and Drainage 190,437$ 188,526$ (1,911)$
Tourism and Convention 263,315$ 367,197$ 103,882$
Special Gas 2,053,050$ 1,484,641$ (568,409)$
Bicentennial Center 112,228$ 46,048$ (66,180)$
Debt Service 735,291$ 571,873$ (163,418)$
Capital Projects 7,773,362$ (2,610,001)$ (10,383,363)$
Other Governmental Funds 4,484,414$ 5,136,019$ 651,605$
Total 20,699,478$ 8,801,484$ (11,897,994)$
Total Governmental Fund balances decreased by $11,897,994. The reasons for these changes are varied. The
most significant change is in the Capital Projects Fund, and is largely the result of the Aquatics Center financing,
reflected in the $10,383,363 reduction in Capital Projects fund balances. The reduction in the General Fund balance
reflects economic conditions, and the fact that expenditures were still exceeding revenues in 2010. The deficit in the
Special Gas Tax fund is due primarily to an aggressive capital and road maintenance program. The increase in
“Other Funds” reflects the increasing balance in the Special Sales Tax Capital Fund. The Employee benefits fund
has been eliminated and is now consolidated with the General Fund.
Revenues and Expenditures:
The following table shows a comparison of revenues and expenditures (including other sources and uses) for major
funds for the years ending December 31, 2009 and 2010.
Fund 2009 2010 Change
Revenues (Including Other Financing Sources)
General 33,865,188$ 34,303,574$ 438,386$
Flood and Drainage Improvement 59,430$ 1,312$ (58,118)$
Tourism and Convention 1,001,607$ 1,332,671$ 331,064$
Special Gas 1,529,207$ 1,569,648$ 40,441$
Bicentennial Center 1,644,135$ 1,702,066$ 57,931$
Debt Service 3,895,680$ 7,943,865$ 4,048,185$
Capital Projects 26,079,619$ 5,552,906$ (20,526,713)$
Other Governmental Funds* 5,298,467$ 6,770,223$ 1,471,756$
Total Revenues 73,373,333$ 59,176,265$ (14,197,068)$
Less Other Sources 28,681,145$ 12,157,284$ (16,523,861)$
Revenues, net of other sources 44,692,188$ 47,018,981$ 2,326,793$
Expenditures (Including Other Financing Uses)
General 34,807,330$ 35,773,774$ 966,444$
Employee Benefits (residual transfer) 789,647$ -$ (789,647)$
Flood and Drainage Improvement 376,176$ 3,223$ (372,953)$
Tourism and Convention 1,012,960$ 1,228,789$ 215,829$
Special Gas 1,269,535$ 2,138,057$ 868,522$
Bicentennial Center 1,667,838$ 1,768,246$ 100,408$
Debt Service 3,953,133$ 8,107,283$ 4,154,150$
Capital Projects 14,639,925$ 15,936,269$ 1,296,344$
Other Governmental Funds* 5,980,229$ 6,118,618$ 138,389$
Total Expenditures 64,496,773$ 71,074,259$ 6,577,486$
Less Other Uses 3,422,099$ 4,983,834$ 1,561,735$
Expenditures, net of other uses 61,074,674$ 66,090,425$ 5,015,751$
Consolidated Statement of Revenues and Expenditures for Major Funds, 2009 and 2010
Modified Accrual Basis
10
Total revenues and other sources decreased by $15,288,532 from 2009 to 2010. The largest component of this
change was in the Capital Projects accounts, and is related to the Aquatics Center and several major street
improvement projects. Other changes include an increased General supplement for the Bi-Centennial Center and
changes in temporary note activity.
Expenditure changes reflect transfers from the General Fund to the Bi-Centennial Center Fund as well as the Special
Sales Tax Transfer (included in “Other Funds”). The changes in debt service are due largely to the initial payments
on the Aquatics Center debt. The Capital Projects also had a very large influence this year.
Proprietary Funds
The City of Salina operates four Enterprise Funds as well as five Internal Service Funds.
A summarized comparative Statement of Net Assets follows for each Enterprise Fund:
2009 2010 Change 2009 2010 Change
Current Assets 3,291$ 3,887$ 596$ 12,356$ 14,755$ 2,399$
Capital Assets 3,455$ 4,211$ 756$ 54,105$ 53,075$ (1,030)$
Total Assets 6,746$ 8,098$ 1,352$ 66,461$ 67,830$ 1,369$
Current Liabilities 496$ 1,010$ 514$ 2,159$ 2,091$ (68)$
Noncurrent Liabilities 2,129$ 3,192$ 1,063$ 8,634$ 7,161$ (1,473)$
Total Liabilities 2,625$ 4,202$ 1,577$ 10,793$ 9,252$ (1,541)$
Assets Invested in Capital, net
of related debt 2,585$ 2,294$ (291)$ 44,636$ 45,567$ 931$
Restricted Net Assets -$ 1,553$ 1,553$ -$
Unrestricted Net Assets 1,536$ 1,602$ 66$ 9,479$ 11,458$ 1,979$
Total Net Assets 4,121$ 3,896$ (225)$ 55,668$ 58,578$ 2,910$
Current Assets as a percentage
of current liabilities 664% 385% 572% 706%
2009 2010 Change 2009 2010 Change
Current Assets 737$ 846$ 109$ 69$ 66$ (3)$
Capital Assets 626$ 639$ 13$ 387$ 348$ (39)$
Total Assets 1,363$ 1,485$ 122$ 456$ 414$ (42)$
Current Liabilities 78$ 203$ 125$ 56$ 48$ (8)$
Noncurrent Liabilities 119$ 123$ 4$ 85$ 61$ (24)$
Total Liabilities 197$ 326$ 129$ 141$ 109$ (32)$
Assets Invested in Capital, net
of related debt 626$ 639$ 13$ 387$ 348$ (39)$
Restricted Net Assets
Unrestricted Net Assets 540$ 520$ (20)$ (72)$ (43)$ 29$
Total Net Assets 1,166$ 1,159$ (7)$ 315$ 305$ (10)$
Current Assets as a percentage
of current liabilities 945% 417% 123% 138%
Comparative Summary Statement of Net Assets; 2009 - 2010
(in $000's)
Solid Waste Disposal Water and Sewer
Sanitation Golf Course
The Golf Course Fund shows declines in total net assets, due primarily to a reduction in current assets, however,
capital assets also decline. Unrestricted net assets in this fund reflect a $43,000 deficit balance. The Solid Waste
fund shows increases in assets as well as liabilities, the result of constructing an additional cell. The Water and
Sewer fund shows increases in current assets and decreases in liabilities.
11
Revenues, Expenses, and Changes in Net Assets
The Water and Wastewater Funds, showed healthy results from operations, with net assets increasing significantly
due to a good revenue flow and controlled expenses. The Golf Course showed a very slight gain on the year. The
Sanitation Fund is stable. Net assets declined in the Solid Waste fund due to an increase in operating expenses.
2009 2010 Change 2009 2010 Change
Operating Revenues 2,939$ 2,878$ (61)$ 15,249$ 16,789$ 1,540$
Operating Expenses 2,245$ 2,852$ 607$ 12,524$ 13,571$ 1,047$
Operating Income 694$ 26$ (668)$ 2,725$ 3,218$ 493$
Non-operating revenues (expenses) 18$ (55)$ (73)$ (300)$ (433)$ (133)$
Income (Loss) before Transfers 712$ (29)$ (741)$ 2,425$ 2,785$ 360$
Transfers in (out) (180)$ (139)$ 41$ (75)$ 77$ 152$
Change in Net Assets 532$ (168)$ (700)$ 2,350$ 2,862$ 512$
Net Assets, January 1 3,606$ 4,121$ 515$ 53,268$ 55,668$ 2,400$
Restatement (17)$ (57)$ (40)$ 50$ 48$ (2)$
Net Assets, January 1, restated 3,589$ 4,064$ 475$ 53,318$ 55,716$ 2,398$
Net Assets, December 31 4,121$ 3,896$ (225)$ 55,668$ 58,578$ 2,910$
2009 2010 Change 2009 2010 Change
Operating Revenues 2,294$ 2,311$ 17$ 803$ 783$ (20)$
Operating Expenses 2,224$ 2,276$ 52$ 897$ 817$ (80)$
Operating Income 70$ 35$ (35)$ (94)$ (34)$ 60$
Non-operating revenues (expenses) 10$ 18$ 8$ 1$ -$ (1)$
Income (Loss) before Transfers 80$ 53$ (27)$ (93)$ (34)$ 59$
Transfers in (out) -$ (50)$ (50)$ -$ 20$ 20$
Change in Net Assets 80$ 3$ (77)$ (93)$ (14)$ 79$
Net Assets, January 1 1,086$ 1,166$ 80$ 407$ 314$ (93)$
Restatement -$ (10)$ (10)$ -$ 5$ 5$
Net Assets, January 1, restated 1,086$ 1,156$ 70$ 407$ 319$ (88)$
Net Assets, December 31 1,166$ 1,159$ (7)$ 314$ 305$ (9)$
Comparative Summary of Revenues, Expenses and Changes in Net Assets, 2009 and 2010
(In $000's)
Solid Waste Disposal Water and Sewer
Sanitation Golf Course
Budgetary Highlights
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the
Fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within
the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which
estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders
are reported as reservations of budgetary basis fund balances at December 31, 2010. Formal budgetary
12
amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Re-
allocation among departments or line items are not typically recorded as budgetary amendments.
However, in addition to formal amendments, departments within the City are allowed to transfer budget between line
items within a department. Budgets may also be transferred from department to department within each fund. As a
result of these transfers, the original budget and the final budgets may not be the same for departments within a
fund.
There were a number of funds in which the budgets were amended, including the General Fund, Special Highway
Fund, Arts and Humanities Fund, Sales Tax Capital Fund, Sales Tax Economic Development Fund, the Golf Course
Fund, and the Bicentennial Center Fund.
The City experienced a number of significant variances from budgeted items in the General Fund, however, the total
fund was within budgeted expenses. Most revenue classes fell short of budget. This was partially offset by increased
transfers from other funds, in particular the Special Sales Tax fund
Several expenditure items were also significantly over or under budget. Several Departments exceeded budgeted
expenditures, most notably the Public Safety Departments, which exceeded budgeted levels. The budget variations
are due to under-budgeting with respect to FLSA time.
Capital Assets and Debt Administration
Capital Assets
The total amount invested in Capital Assets for the City at December 31, 2010 was $224,399,000 net of accumulated
depreciation.
The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2010:
2009 2010 2009 2010 2009 2010
Equipment, Furniture and Fixtures 1,575$ 1,314$ 1,907$ 1,982$ 3,482$ 3,296$
Vehicles 2,485$ 2,445$ 928$ 903$ 3,413$ 3,348$
Buildings and Improvements 13,261$ 23,625$ 12,789$ 12,345$ 26,050$ 35,970$
Land 22,477$ 22,477$ 1,541$ 1,541$ 24,018$ 24,018$
Infrastructure 80,206$ 83,712$ 39,803$ 39,985$ 120,009$ 123,697$
Construction in Progress 34,037$ 32,549$ 1,605$ 1,517$ 35,642$ 34,066$
Total 154,041$ 166,122$ 58,573$ 58,273$ 212,614$ 224,395$
* Net of Accumulated Depreciation
Capital Asset Balances Net of Depreciation, 12/31/2009 and 12/31/2010
(In 000's)
Governmental Activity Business-type Activity Total
Changes to capital assets may be summarized as follows:
Governmental
Activity
Business-Type
Activity Total
Additions 32,447$ 4,306$ 36,753$
Retirements (18,182)$ (2,490)$ (20,672)$
Adjustments 1,895$ 60$ 1,955$
Net Additions 16,160$ 1,876$ 18,036$
Depreciation Expense Applied 4,306$ 2,663$ 6,969$
Changes to Capital Assets, 2010
(in 000's)
13
Additional information on the City’s capital assets can be found in Note 4,D. of the notes to the basic financial
statements.
Debt Management
The City’s general policy for General Obligation Bonds is to issue them for no more than 10 years for the City at
Large portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity
may extend to 15 years.
The outstanding General Obligation Bonds for Governmental activities at 12/31/2010 totaled $53,120,952. In
addition, there were temporary notes outstanding in the amount of $2,500,000.
Business-type activities had $1,580,000 in Revenue Bonds outstanding, as well as $8,614,576 in General Obligation
Bonds. Revenues generated by user fees are pledged to retire all of the Bonds issued by Business-type activities.
The City engaged in several debt transactions during 2010. On May 1st, the City issued $6,875,000 in general
improvement and refunding bonds. Of this amount, $824,341 was used to refund all $820,000 of the outstanding
Series 2002-A General Obligation Water and Sewer Refunding bonds. The refunding resulted in an economic gain
of $41,141, and a reduction of $45,622 in future debt payments
On October 15, the City issued $7,860,000 in general obligation refunding bonds. Proceeds were used to current
refund all $5,663,653 of outstanding Kansas Water Supply loans. In addition, the remaining amounts outstanding
($2,100,000) on the 2001 General Obligation Bonds and the 2002-B General Obligation Bonds were advance
refunded. These transactions resulted in an economic gain of $760,626, and a reduction of future debt payments of
$751,673
Additional information on the City’s debt can be found in Note 4, E. of the notes to the basic financial statements.
Requests for Information
This financial report is intended to give the reader a general overview of the City’s finances. Questions about
information in this report or requests for additional information should be directed to the Director of Finance, Room
206, 300 West Ash Street, Salina, Kansas, 67401.
BASIC FINANCIAL STATEMENTS
Total Total Total Salina Salina
Governmental Business-type Primary Housing Airport
Activities Activities Government Authority Authority
ASSETS
Current assets:
Cash and investments 13,934,571$17,529,860$31,464,431$1,146,462$4,218,016$
Receivables (net of allowance for uncollectibles)
Accounts 956,188 1,359,815 2,316,003 95,234 210,224
Taxes 10,732,334 -10,732,334 -1,833,239
Interest 17,498 16 17,514 --
Notes ---2,293 -
Inventory 209,668 594,539 804,207 13,375 2,251
Restricted cash and investments ---273,542 -
Prepaid expenses ---32,915 17,909
Deferred charges 393,398 70,804 464,202 -130,729
Total current assets 26,243,657 19,555,034 45,798,691 1,563,821 6,412,368
Noncurrent assets:
Notes receivable ---2,178 -
Capital assets, nondepreciable
Construction in progress 32,249,155 1,516,604 33,765,759 666,707 1,205,379
Land 22,477,191 1,541,002 24,018,193 1,481,891 10,449,502
Capital assets, depreciable 193,683,811 98,909,236 292,593,047 7,129,784 61,103,941
Less: Accumulated depreciation 82,288,008 43,693,905 125,981,913 2,986,378 24,165,814
Total noncurrent assets 166,122,149 58,272,937 224,395,086 6,294,182 48,593,008
Total assets 192,365,806$77,827,971$270,193,777$7,858,003$55,005,376$
Liabilities:
Current liabilities:
Accounts payable 895,962$598,848$1,494,810$7,758$126,317$
Retainage payable 626,064 29,588 655,652 --
Accrued liabilities 562,877 -562,877 44,548 150,557
Matured bond principal and interest 5,234 -5,234 --
Primary Government
CITY OF SALINA, KANSAS
STATEMENT OF NET ASSETS
December 31, 2010
Component Units
The notes to the basic financial statements are an integral part of this statement.
14
Matured bond principal and interest 5,234 -5,234 --
Accrued interest payable 826,829 96,694 923,523 -203,723
Deposits payable -138,888 138,888 79,288 -
Unearned revenue 10,415,491 -10,415,491 62,984 1,858,836
Due to other governments ---19,565 -
Current portion of compensated absences 1,594,804 329,660 1,924,464 18,055 -
Current portion of temporary notes payable 2,500,000 -2,500,000 --
Current portion of revenue bonds payable -770,000 770,000 --
Current portion of financing leases payable ----40,238
Current portion of special assessment debt payable ----20,286
Current portion of general obligation bonds payable 4,491,133 1,388,805 5,879,938 -1,040,000
Total current liabilities 21,918,394 3,352,483 25,270,877 232,198 3,439,957
Noncurrent liabilities:
Accrued liabilities 245,207 -245,207 41,288 -
Compensated absences 1,635,684 338,108 1,973,792 4,514 -
Net OPEB obligation 2,138,790 254,801 2,393,591 --
Revenue bonds payable -810,000 810,000 --
Financing leases payable ----245,558
Temporary notes payable ----11,652,467
Special assessment debt payable ----125,013
General obligation bonds payable 48,629,820 7,225,772 55,855,592 -11,752,154
Landfill post-closure care liabilities -1,909,188 1,909,188 --
Total noncurrent liabilities 52,649,501 10,537,869 63,187,370 45,802 23,775,192
Total liabilities 74,567,895$13,890,352$88,458,247$278,000$27,215,149$
Net Assets
Invested in capital assets, net of related debt 113,001,196$48,078,360$161,079,556$6,292,004$23,717,291$
Restricted for:
Permanent funds:
Expendable 416,490 -416,490 152,966 -
Debt service 571,873 1,553,016 2,124,889 --
Unrestricted 3,808,352 14,306,243 18,114,595 1,135,033 4,072,936
Total net assets 117,797,911$63,937,619$181,735,530$7,580,003$27,790,227$
The notes to the basic financial statements are an integral part of this statement.
14
Operating Capital Total Total Total Salina Salina
Charges for Grants and Grants and Governmental Business-type Primary Housing Airport
Expenses Services Contributions Contributions Activities Activities Government Authority Authority
Governmental activities:
General government 10,845,500$5,142,693$415,201$-$[5,287,606]$-$[5,287,606]$-$-$
Public safety 18,591,886 3,968,643 822,277 -[13,800,966]-[13,800,966]--
Public works 9,781,911 196,095 1,391,466 -[8,194,350]-[8,194,350]--
Public health and sanitation 1,365,114 37,331 144,931 -[1,182,852]-[1,182,852]--
Culture and recreation 6,571,952 2,817,214 193,539 -[3,561,199]-[3,561,199]--
Planning and development 3,715,740 144,442 447,761 -[3,123,537]-[3,123,537]--
Interest on long-term debt 2,256,644 ---[2,256,644]-[2,256,644]--
Total governmental activities 53,128,747 12,306,418 3,415,175 -[37,407,154]-[37,407,154]--
Business-type activities:
Solid Waste Disposal 2,924,578 2,852,731 ---[71,847][71,847]--
Water and Sewer 14,049,698 16,520,055 ---2,470,357 2,470,357 --
Sanitation 2,260,926 2,310,200 ---49,274 49,274 --
Golf Course 817,429 735,785 ---[81,644][81,644]--
Total business-type activities 20,052,631 22,418,771 ---2,366,140 2,366,140 --
Total primary government 73,181,378$34,725,189$3,415,175$-$[37,407,154]2,366,140 [35,041,014]--
Component units:
Salina Housing Authority 2,414,352$463,052$1,626,534$383,404$---58,638 -
Salina Airport Authority 5,617,038 2,343,143 -1,172,507 ----[2,101,388]
Total component units 8,031,390$2,806,195$1,626,534$1,555,911$---58,638 [2,101,388]
General Revenues:
Property taxes levied for
Changes in Net Assets
Component UnitsPrimary GovernmentProgram Revenues
CITY OF SALINA, KANSAS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2010
Net [Expenses] Revenue and
The notes to the basic financial statements are an integral part of this statement.
15
Property taxes levied for
General purposes 7,803,301 -7,803,301 -1,768,154
Debt service 2,230,753 -2,230,753 --
Motor vehicle tax
General purposes 1,145,130 -1,145,130 --
Sales tax
General purposes 11,117,078 -11,117,078 --
Selective purposes 4,107,810 -4,107,810 --
Other taxes
General purposes 6,297,877 -6,297,877 --
Investment revenues 80,894 67,266 148,160 20,305 9,948
Miscellaneous 564,936 340,964 905,900 -48,206
Transfers, net 92,219 [92,219]---
Subtotal general revenues 33,439,998 316,011 33,756,009 20,305 1,826,308
Change in net assets [3,967,156]2,682,151 [1,285,005]78,943 [275,080]
Net assets - beginning 119,853,666 61,269,395 181,123,061 7,501,060 28,065,307
Prior period adjustment 1,911,401 [13,927]1,897,474 --
Net assets - beginning, restated 121,765,067 61,255,468 183,020,535 7,501,060 28,065,307
Net assets - ending 117,797,911$63,937,619$181,735,530$7,580,003$27,790,227$
The notes to the basic financial statements are an integral part of this statement.
15
Flood &Tourism
Drainage and Special
General Improvement Convention Gas
ASSETS
Cash and investments 3,229,497$188,526$2,058$1,339,840$
Receivables (net)
Accounts 494,418 -365,139 -
Taxes 7,699,277 --316,843
Interest 17,498 ---
Inventory 87,328 ---
Due from other funds 58,031 ---
Cash with fiscal agent ----
Total assets 11,586,049$188,526$367,197$1,656,683$
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 269,591$-$-$106,414$
Retainage payable ---65,628
Deferred revenue 7,699,277 ---
Due to other funds ----
Matured principal and interest ----
Temporary notes payable ----
Total liabilities 7,968,868 --172,042
Fund balance:
Reserved for encumbrances 99,286 1,176 -498,417
Reserved for debt service ----
Unreserved, undesignated
General fund 3,517,895 ---
Special revenue funds -187,350 367,197 986,224
Permanent funds ----
Capital project funds ----
Total fund balances 3,617,181 188,526 367,197 1,484,641
Total liabilities and fund balance 11,586,049$188,526$367,197$1,656,683$
CITY OF SALINA, KANSAS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2010
Other Total
Bicentennial Debt Capital Governmental Governmental
Center Service Projects Funds Funds
58,362$571,873$769,005$5,200,470$11,359,631$
44,418 --52,213 956,188
-2,716,214 --10,732,334
----17,498
----87,328
----58,031
-5,234 --5,234
102,780$3,293,321$769,005$5,252,683$23,216,244$
56,732$-$318,570$58,633$809,940$
--560,436 -626,064
-2,716,214 --10,415,491
---58,031 58,031
-5,234 --5,234
--2,500,000 -2,500,000
56,732 2,721,448 3,379,006 116,664 14,414,760
--4,044,369 588,487 5,231,735
-571,873 -609,713 1,181,586
----3,517,895
46,048 --3,521,329 5,108,148
---416,490 416,490
--[6,654,370]-[6,654,370]
46,048 571,873 [2,610,001]5,136,019 8,801,484
102,780$3,293,321$769,005$5,252,683$23,216,244$
16
The notes to the basic financial statements are an integral part of this statement.
Total Governmental Fund Balances 8,801,484$
Amounts reported for governmental activities in the
statement of net assets are different because
Bond issuance costs are shown as current year expenditures in the funds.
Bond issuance costs 393,398
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds
The cost of capital assets is 247,525,852
Accumulated depreciation is 81,432,609 166,093,243
An internal service fund is used by the City's management to charge the
costs of the worker's compensation program. The assets and liabilities
of the internal service fund are included with governmental activities.1,737,815
The following liabilities, including bonds payable, are not due and payable
in the current period and therefore are not reported as liabilities in the funds.
These liabilities at year end consist of:
Compensated absences 3,141,457
Net OPEB obligation 2,138,790
Bonds payable 53,120,953
Accrued interest on the bonds 826,829 [59,228,029]
Net Assets of Governmental Activities 117,797,911$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO
NET ASSETS OF GOVERNMENTAL ACTIVITIES
December 31, 2010
The notes to the basic financial statements are an integral part of this statement.
17
Flood &Tourism
Drainage and Special
General Improvement Convention Gas
REVENUES:
Taxes
Real estate taxes 7,573,269$-$-$-$
Delinquent taxes 229,123 909 --
Motor vehicle taxes 961,648 403 --
General sales taxes 11,117,078 ---
Selective sales taxes ----
Other taxes 4,965,601 -1,332,276 -
Intergovernmental 1,008,482 --1,380,416
Special assessments ----
Licenses and permits ----
Charges for services 7,193,831 ---
Investment revenue --395 9,232
Reimbursements ----
Miscellaneous 352,308 ---
Total revenues 33,401,340 1,312 1,332,671 1,389,648
EXPENDITURES:
Current
General government 3,549,487 ---
For the Year Ended December 31, 2010
CITY OF SALINA, KANSAS
EXPENDITURES AND CHANGES IN FUND BALANCE
STATEMENT OF REVENUES,
GOVERNMENTAL FUNDS
General government 3,549,487 ---
Public safety 18,228,881 ---
Public works 6,245,355 --388,775
Public health and sanitation 1,176,743 ---
Culture and recreation 2,599,921 ---
Planning and development 2,428,900 -678,906 -
Miscellaneous ----
Capital outlay 560,129 3,223 -1,749,282
Debt service
Principal retirement ----
Interest and other charges ----
Deposit to escrow account ----
Total expenditures 34,789,416 3,223 678,906 2,138,057
Excess [deficiency] of revenue and other sources
over [under] expenditures and other [uses][1,388,076][1,911]653,765 [748,409]
OTHER FINANCING SOURCES [USES]
Issuance of bonds ----
Bond premium ----
Transfers in 902,234 --180,000
Transfers [out][984,358]-[549,883]-
Total other financing sources [uses][82,124]-[549,883]180,000
Net change in fund balance [1,470,200][1,911]103,882 [568,409]
Fund balance - Beginning of year 5,087,381 190,437 263,315 2,053,050
Fund balance - End of year 3,617,181$188,526$367,197$1,484,641$
Other Total
Bicentennial Debt Capital Governmental Governmental
Center Service Projects Funds Funds
-$2,182,971$-$-$9,756,240$
-47,782 --277,814
-183,079 --1,145,130
----11,117,078
---4,107,810 4,107,810
----6,297,877
---1,015,225 3,404,123
-1,385,171 --1,385,171
---11,051 11,051
708,600 --1,031,410 8,933,841
-17,060 17,410 20,050 64,147
--70,400 -70,400
672 --95,319 448,299
709,272 3,816,063 87,810 6,280,865 47,018,981
----3,549,487----3,549,487
----18,228,881
----6,634,130
---154,979 1,331,722
1,752,087 --1,424,871 5,776,879
---501,817 3,609,623
---32,225 32,225
16,159 -15,506,624 767,187 18,602,604
-5,934,401 -25,000 5,959,401
-2,066,367 30,052 162,539 2,258,958
-106,515 --106,515
1,768,246 8,107,283 15,536,676 3,068,618 66,090,425
[1,058,974][4,291,220][15,448,866]3,212,247 [19,071,444]
-2,082,700 4,951,404 -7,034,104
-45,102 2,025 -47,127
992,794 2,000,000 511,667 489,358 5,076,053
--[399,593][3,050,000][4,983,834]
992,794 4,127,802 5,065,503 [2,560,642]7,173,450
[66,180][163,418][10,383,363]651,605 [11,897,994]
112,228 735,291 7,773,362 4,484,414 20,699,478
46,048$571,873$[2,610,001]$5,136,019$8,801,484$
18
The notes to the basic financial statements are an integral part of this statement.
Total Net Change In Fund Balances - Governmental Funds [11,897,994]$
Amounts reported for governmental activities in the
statement of activities are different because
Capital outlays to purchase or build assets are reported in governmental funds
as expenditures. However, for governmental activities those costs are shown
in the statement of net assets and allocated over their estimated useful lives
as annual depreciation expenses in the statement of activities. This is the
amount by which capital outlays exceeds depreciation in the period.
Gain on sale of assets [8,871]
Proceeds from sale of assets [39,023]
Capital outlays 14,907,657
Depreciation expense [4,681,984]10,177,779
Interest on long-term debt in the statement of activities differs from the amount
reported in the governmental funds because interest is recorded as an
expenditure in the funds when it is due, and thus requires the use of current
financial resources. In the statement of activities, however, interest expense
is recognized as the interest accrues, regardless of when it is due. This is
the amount by which interest increased.[58,727]
CITY OF SALINA, KANSAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE WITH THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2010
The notes to the basic financial statements are an integral part of this statement.
19
the amount by which interest increased.[58,727]
An internal service fund is used by the city's management to charge the
costs of certain activities to the individual funds. The revenues and expenses
of certain internal service fund is reported with governmental activities.[674,516]
Some expenses reported in the statement of activities, such as compensated
absences and other post employment benefits, do not require the use of current
financial resources and therefore are not reported as expenditures in
governmental funds.[473,457]
Bond and temporary note proceeds are other financing sources in the governmental
funds, but they increase long-term liabilities in the statement of net assets and do
not affect the statement of activities. Also, governmental funds report the effect
of issuance costs, premiums, discounts, and similar items when debt is first
issued, whereas these amounts are deferred and amortized in the statement
of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.[7,060,683]
Repayment of bond principal and bond issuance costs is an expenditure
in the governmental funds, but it reduces long-term liabilities in the statement
of net assets and does not affect the statement of activities.6,020,442
Changes In Net Assets of Governmental Activities [3,967,156]$
The notes to the basic financial statements are an integral part of this statement.
19
Total Internal
Solid Waste Water and Enterprise Service
ASSETS Disposal Sewer Sanitation Golf Course Funds Funds
Current assets:
Cash and investments 3,612,249$13,160,792$709,009$47,810$17,529,860$2,569,706$
Receivables (net of allowance for uncollectibles)
Accounts 275,134 947,347 137,334 -1,359,815 -
Interest 16 ---16 -
Inventory and prepaid supplies -576,002 -18,537 594,539 122,340
Deferred charges -70,804 --70,804 -
Total current assets 3,887,399 14,754,945 846,343 66,347 19,555,034 2,692,046
Capital assets:
Nondepreciable capital assets:
Construction in progress -1,516,604 --1,516,604 -
Land 682,000 844,002 -15,000 1,541,002 -
Depreciable capital assets:
Capital assets 8,255,055 88,161,530 1,500,552 992,099 98,909,236 884,305
Less: accumulated depreciation 4,726,571 37,446,663 861,390 659,281 43,693,905 855,399
Total capital assets 4,210,484 53,075,473 639,162 347,818 58,272,937 28,906
Total assets 8,097,883$67,830,418$1,485,505$414,165$77,827,971$2,720,952$
Liabilities:
Current liabilities
Accounts payable 240,478$226,824$127,198$4,348$598,848$86,022$
Retainage payable 12,979 16,609 --29,588 -
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2010
The notes to the basic financial statements are an integral part of this statement.
20
Retainage payable 12,979 16,609 --29,588 -
Interest payable 29,547 67,147 --96,694 -
Meter deposits payable -138,888 --138,888 -
Current portion of compensated absences payable 29,570 180,168 75,817 44,105 329,660 43,951
Current portion of accrued claims payable -----562,877
Current portion of general obligation bonds payable 697,396 691,409 --1,388,805 -
Current portion of revenue bonds payable -770,000 --770,000 -
Total current liabilities 1,009,970 2,091,045 203,015 48,453 3,352,483 692,850
Noncurrent liabilities:
Compensated absences payable 30,327 184,785 77,761 45,235 338,108 45,080
Accrued claims payable -----245,207
Net OPEB Obligation 33,478 159,888 45,580 15,855 254,801 -
Payable from restricted assets
General obligation bonds payable 1,219,108 6,006,664 --7,225,772 -
Revenue bonds payable -810,000 --810,000 -
Landfill post-closure care liabilities 1,909,188 ---1,909,188 -
Total noncurrent liabilities 3,192,101 7,161,337 123,341 61,090 10,537,869 290,287
Total liabilities 4,202,071$9,252,382$326,356$109,543$13,890,352$983,137$
Net Assets
Invested in capital assets, net of related debt 2,293,980$45,567,400$639,162$347,818$48,848,360$28,906$
Restricted
Restricted for bond retirement -1,553,016 --1,553,016 -
Unrestricted 1,601,832 11,457,620 519,987 [43,196]13,536,243 1,708,909
Total net assets 3,895,812$58,578,036$1,159,149$304,622$63,937,619$1,737,815$
The notes to the basic financial statements are an integral part of this statement.
20
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Operating revenues
Charges for services 2,852,731$16,520,055$2,310,200$735,785$22,418,771$9,098,458$
Miscellaneous 24,839 268,297 949 46,879 340,964 85,260
Total operating revenues 2,877,570 16,788,352 2,311,149 782,664 22,759,735 9,183,718
Operating expenses
General government -----9,866,678
Public works 2,110,533 11,803,594 2,165,861 -16,079,988 -
Recreation ---773,344 773,344 -
Depreciation 741,007 1,767,504 110,065 44,085 2,662,661 8,303
Total operating expenses 2,851,540 13,571,098 2,275,926 817,429 19,515,993 9,874,981
Operating income [loss]26,030 3,217,254 35,223 [34,765]3,243,742 [691,263]
Nonoperating revenues [expenses]
Investment revenue 17,992 45,825 3,221 228 67,266 16,747
Debt service [70,017][332,421]--[402,438]-
Gain/[loss] on disposal of fixed assets 2,836 1,500 15,000 -19,336 -
Amortization of bond issuance costs [5,857][147,679]--[153,536]-
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2010
The notes to the basic financial statements are an integral part of this statement.
21
Amortization of bond issuance costs [5,857][147,679]--[153,536]-
Total nonoperating revenues [expenses][55,046][432,775]18,221 228 [469,372]16,747
Income [loss] before transfers [29,016]2,784,479 53,444 [34,537]2,774,370 [674,516]
Transfers from [to] other funds
Transfers in 193,708 77,307 -20,000 291,015 -
Transfers [out][333,234]-[50,000]-[383,234]-
Total transfers [139,526]77,307 [50,000]20,000 [92,219]-
Change in net assets [168,542]2,861,786 3,444 [14,537]2,682,151 [674,516]
Net assets, January 1 4,121,382 55,667,522 1,166,051 314,440 61,269,395 2,421,941
Restatement [57,028]48,728 [10,346]4,719 [13,927][9,610]
Net assets, January 1, restated 4,064,354 55,716,250 1,155,705 319,159 61,255,468 2,412,331
Net assets, December 31 3,895,812$58,578,036$1,159,149$304,622$63,937,619$1,737,815$
The notes to the basic financial statements are an integral part of this statement.
21
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Cash flows from operating activities
Cash received from customers and users 2,885,109$16,442,711$2,305,343$735,784$22,368,947$9,112,603$
Cash paid to suppliers of goods or services [1,227,350][9,013,164][1,337,511][432,749][12,010,774][9,276,109]
Cash paid to employees [459,996][3,126,237][698,923][365,547][4,650,703][640,799]
Other operating receipts 24,839 268,297 949 46,879 340,964 85,260
Net cash provided by [used in] operating activities 1,222,602 4,571,607 269,858 [15,633]6,048,434 [719,045]
Cash flows from capital and related financing activities
Purchase and construction of capital assets [1,777,297][689,251][133,447]-[2,599,995]-
Debt issuance costs incurred -[35,689]--[35,689]-
Proceeds from sale of capital assets 312,244 1,500 15,000 -328,744 -
Principal payments - general obligation bonds [373,000][977,599]--[1,350,599]-
Principal payments - revenue bonds -[740,000]--[740,000]-
Proceeds from issuance of general obligation bonds 1,419,504 6,388,902 --7,808,406 -
Interest paid [47,988][309,531]--[357,519]-
Principal payments - loans payable -[5,862,516]--[5,862,516]-
Net cash provided by [used in] capital
and related financing activities [466,537][2,224,184][118,447]-[2,809,168]-
Cash flows from investing activities
Interest received 17,976 52,226 3,221 229 73,652 16,746
Cash flows from noncapital financing activities
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2010
PROPRIETARY FUNDS
The notes to the basic financial statements are an integral part of this statement.
22
Cash flows from noncapital financing activities
Transfers in 193,708 77,307 -20,000 291,015 -
Transfers [out][333,234]-[50,000]-[383,234]-
Net cash provided by [used in] noncapital financing activities [139,526]77,307 [50,000]20,000 [92,219]-
Net increase [decrease] in cash and cash equivalents 634,515 2,476,956 104,632 4,596 3,220,699 [702,299]
Cash and cash equivalents, January 1 2,977,734 10,683,836 604,377 43,214 14,309,161 3,272,005
Cash and cash equivalents, December 31 3,612,249$13,160,792$709,009$47,810$17,529,860$2,569,706$
The notes to the basic financial statements are an integral part of this statement.
22
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]26,030$3,217,254$35,223$[34,765]$3,243,742$[691,263]$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense 741,007 1,767,504 110,065 44,085 2,662,661 8,303
[Increase] decrease in accounts receivable 32,378 [95,765][4,857]-[68,244]-
[Increase] decrease in inventory -55,270 -6,742 62,012 [3,728]
Increase [decrease] in accounts payable 132,434 [302,802]119,528 [3,560][54,400][42,093]
Increase [decrease] in retainage payable [51,732][74,679]--[126,411]-
Increase [decrease] in accrued compensated absences [615][28,491]1,435 [16,124][43,795][4,408]
Increase [decrease] in claims payable -----14,144
Increase [decrease] in landfill postclosure liabilities 331,685 ---331,685 -
Increase [decrease] in net OBEB obligation 11,415 14,895 8,464 [12,011]22,763 -
Increase [decrease] in meter deposits payable -18,421 --18,421 -
Net cash provided by [used in] operating activities 1,222,602$4,571,607$269,858$[15,633]$6,048,434$[719,045]$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Continued)
For the Year Ended December 31, 2010
The notes to the basic financial statements are an integral part of this statement.
23
The notes to the basic financial statements are an integral part of this statement.
23
ASSETS
Cash and investments 513,599$
Total assets 513,599$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 513,599$
Total liabilities 513,599$
December 31, 2010
CITY OF SALINA, KANSAS
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
The notes to the basic financial statements are an integral part of this statement.
24
25
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor and a five-member
commission. These financial statements present the City and its component units, entities for which the
government is considered to be financially accountable. Each discretely presented component unit is
reported in a separate column in the government wide statements to emphasize that it is legally separated
from the government.
Discretely Presented Component Units
City of Salina Airport Authority - The Salina Airport Authority was created for the purpose of accepting as
surplus property portions of the former Schilling A.F.B that was closed by the United States Department of
Defense in June 1965. One of the primary functions of the Airport Authority is to facilitate the continued
growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by
a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed
by a majority vote of the Salina City Commission. The Airport Authority’s basic mill levy (up to 3 mills)
requires the approval of the City Commission. The Commission must also approve the issuance of general
obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937.
The Mayor of the City of Salina appoints the governing board. The City Commission may remove
commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The
financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies
received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end.
Information in the accompanying financial statements covers the fiscal year ended June 30, 2010.
Complete financial statements for each of the individual component units may be obtained at the entity’s
administrative offices.
Salina Airport Authority Housing Authority of
3237 Arnold Ave. the City of Salina
Salina, KS 469 S. 5th
Salina, KS Joint Ventures
The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board
of Health was organized by the City and County to promote public health. The City and County organized
the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative
offices of both governments. The primary governments each have an ongoing financial responsibility for the
joint ventures. Separate financial statements are available from the governing boards of each joint venture.
(GAAP Basis) (Kansas Prescribed Basis)
Board of Building
Health Authority
(Audited)(Audited)
Total net assets/unencumbered cash, December 31, 2010 1,760,092$ 1,178,134$
Total change in net assets/change in
unencumbered cash, year ended December 31, 2010 260,763 [34,767]
Total revenues/cash receipts, year ended December 31, 2010 4,127,377 783,531
Total revenues/cash receipts from City of Salina 1,018,101 291,229
26
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entity (Continued)
Joint Ventures (Continued)
Complete financial statements for each of the joint ventures may be obtained at the entity’s administrative
offices.
Salina-Saline County Board of Health Salina County-City
125 West Elm Street Building Authority
Salina, KS 300 West Ash Street
Salina, KS
B. Government-wide and fund financial statements
The statement of net assets and the statement of activities report information on all of the nonfiduciary
activities of the primary government and its component units. For the most part, the effect of interfund activity
has been removed from these statements. Exceptions to this general rule are charges between the City’s
governmental and business-type activities. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary government is
financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function are
offset by program revenues. Direct expenses are those that are specifically associated with a service,
program or department and therefore clearly identifiable to a particular function. Program revenues include
charges paid by the recipient of the goods or services offered by the program and grants and contributions
that are restricted to meeting the operational requirements of a particular program. Taxes and other items,
which are not classified as program revenues, are presented as general revenues of the city.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual funds
are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and
presented in a single column in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to certain compensated absences and claims and
judgments are recognized when the obligations are expected to be liquidated with expendable available
financial resources.
27
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Property taxes and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared
revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met.
Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred
and all other grant requirements have been met.
The City applies all applicable Governmental Accounting Standards Board (GASB) pronouncements as well
as the following pronouncements issued on or before November 30, 1989, unless those pronouncements
conflict with or contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinions, and
ARBs.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net
total assets. Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and services in connection with a
proprietary fund’s ongoing operations. The principal operating revenues of the City’s proprietary funds are
charges to customers for sales and services. Operating expenses for enterprise funds and internal service
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses.
The internal service funds account for risk management, worker’s compensation, health insurance, central
garage and information services that are provided to other departments or agencies of the government, or to
other governments, on a cost-reimbursement basis.
Agency funds are custodial in nature and do not measure results of operations or have a measurement
focus. Agency funds do however use the accrual basis of accounting. Agency funds are used to account for
assets held as an agent for individuals, other governmental units, private organizations and/or other funds.
The City reports the following major governmental funds:
General fund - To account for resources traditionally associated with government, which are not required
legally, or by sound financial management to be accounted for in another fund.
Flood and drainage improvement fund - To account for property tax revenues to be used for capital
improvements to the flood control and stormwater drainage systems.
Tourism and convention fund - To account for transient guest tax revenues, which are specifically restricted
to promotion and tourism activities.
Special gas fund - To account for the City's share of motor fuel tax revenues, which are legally restricted to
the maintenance, or improvement of streets within the City.
Bicentennial Center fund - To account for the activities of the City's convention center.
Debt service fund - To account for the accumulation of resources and payment of general obligation bond
principal and interest from governmental resources and special assessment bond principal and interest from
special assessment levies when the City is obligated in some manner for the payment.
28
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Capital projects fund - To account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
The City reports the following major proprietary funds:
Sanitation fund - To account for the operations of the City's refuse collection service.
Solid waste disposal fund - To account for the activities of the City's landfill.
Golf course fund - To account for the operations of the municipal golf course.
Water and sewer fund - To account for the activities of the City's water and sewer operations.
D. Assets, Liabilities and Equity
1. Pooled cash and investments
The City maintains a cash and investment pool that is available for use by all funds managed by the city.
Each fund type’s portion of this pool is displayed in the financial statements as “Cash and Investments.” The
city’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments in the
Kansas Municipal Pool are carried at fair value.
Cash balances from all funds are invested to the extent available in certificates of deposit and other
authorized investments. Investments with maturity dates greater than three months are stated separately.
Earnings from these investments, unless specifically designated, are allocated monthly to the investing fund
based on the percentage of funds invested to total investments. All investments are carried at fair value.
2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund
loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as “due to/from other funds.”
Accounts Receivable. The City records revenues when services are provided. All receivables are shown net
of an allowance for doubtful accounts.
Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed,
apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in
conformity with governing state statutes. Consequently, current year property taxes receivable are not
available as a resource that can be used to finance the current year operations of the City and, therefore, are
not susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue
and are identical to the adopted budget for 2011. It is not practicable to apportion delinquent taxes held by
the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in
relationship to the financial statements taken as a whole.
29
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivables and Payables (Continued)
The determination of assessed valuations and the collection of property taxes for all political subdivisions in
the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines
assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The
County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the
year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming
delinquent, with penalty, December 21. Payments of 50% are accepted through December 20, with the
second 50% then being due on or before May 10 of the following year. This procedure eliminates the need
to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City
Treasurer draws down all available funds from the County Treasurer’s office in two-month intervals. Taxes
remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state
statutes.
3. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
4. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000
and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation. Capital assets used in governmental fund types of the City are recorded at
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their
estimated fair value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type is included in the capitalized value
of the asset constructed, net of interest earned on the invested proceeds over the same period.
Property, plant and equipment of the primary government, are depreciated using the straight-line method
over the following estimated useful lives:
Assets Years
Buildings 50
Other equipment 5 -15
Vehicles 6 -10
Infrastructure 30 -50
30
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Equity (Continued)
5. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of
8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick
leave that can be accumulated. Employees with more than five years of service with the City are paid for
one-third of their accumulated sick leave at their current wage scale upon termination of employment in good
standing. In 2001, a limited buy back policy was instituted.
All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and
unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their
current wage scale upon termination of employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure and a fund liability in the government fund financial statements that
will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the
business-type funds and government wide financial statements are recorded as an expense and liability of
those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick
pay benefits that are payable upon termination of employment.
The General Fund, Bicentennial Center Fund, Central Garage Fund, Information Systems Fund, Sanitation
Fund, Solid Waste Fund, Golf Course Fund, and Water and Sewer Fund have been used in prior years to
liquidate the liability for compensated absences.
6. Temporary Notes
Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law
permits the temporary financing of such improvements by the issuance of temporary notes. Temporary
notes issued may not exceed the aggregate amount of bonds authorized, are interest bearing and have a
maturity date not later than four years from the date of issuance of such temporary notes. Temporary notes
outstanding are retired from the proceeds of the sale of general obligation bonds.
7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
31
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities and Equity (Continued)
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance amounts that are
not appropriable or are legally segregated for a specific purpose. Reservations of business-type net assets
are limited to outside third-party restrictions. Designations of fund balance represent tentative management
plans that are subject to change.
9. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
10. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net
of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding
balances of any borrowings used for the acquisition, construction or improvement of those assets. Net
assets are reported as restricted when there are limitations imposed on their use either through the enabling
legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or
regulations of other governments.
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the general fund, special
revenue funds (unless specifically exempted by statute), debt service fund, and enterprise funds.
The statutes provide for the following sequence and timetable in the adoption of the legal annual operating
budget:
1. Preparation of the budget for the succeeding year on or before August 1.
2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or
before August 5.
3. Public hearing on or before August 15, but at least ten days after publication of notice of hearing.
4. Adoption of the final budget on or before August 25.
The statutes allow the governing body to increase the originally adopted budget for previously unbudgeted
increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend
the budget must be published in the local newspaper. At least ten days after publication the hearing may be
held and the governing body may amend the budget at that time. The 2010 budget was amended for the
General Fund, Special Gas Fund, Bicentennial Center Fund, Arts & Humanities Fund, Sales Tax Capital
Fund, Sales Tax Economic Development Fund and Golf Course Fund.
32
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A. Budgetary Information (Continued)
The statutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of
expenditures of individual funds. Budget comparison statements are presented for each fund showing actual
receipts and expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the statutory basis of accounting, in which, revenues
are recognized when cash is received, and expenditures include disbursements, accounts payable, and
encumbrances. Encumbrances are commitments by the municipality for future payments and are supported
by a document evidencing the commitment, such as a purchase order or contract. All unencumbered
appropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, non-major debt service funds, trust funds,
and the following special revenue funds: Bicentennial Center Event, HUD Community Development,
Community Development Revolving, Heritage Commission, CDBG-ED, HOME V, Special Law Enforcement,
Police Grants, DARE Donations and War Memorial Maintenance. A legal operating budget is not required
for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water
and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. A legal operating budget is
also not required for the Internal Service funds. Actual to budget comparisons for these funds that present
budgets to the Commissioners are shown strictly for informational purposes.
Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the governing
body.
B. Statutory Violations
Actual exceeded budgeted expenditures at December 31, 2010 in the Special Parks and Recreation Fund,
which violates KSA 79-2935.
C. Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive
of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the
assessed value of all tangible taxable property within the city, as certified to the county clerk on the
proceeding August 25. At December 31, 2010, the statutory limit for the City was $135,951,807, providing a
debt margin of $80,902,728.
33
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 3. RESTATEMENT OF EQUITY
Following the close of the previous fiscal year, it was discovered that several capital assets were
misclassified or recorded incorrectly. Additionally, it was discovered that an accounts payable had not been
properly recorded. Accordingly, the beginning net assets balances were restated, the effects of which are as
follows:
Solid Waste Water and Golf Central Information
Governmental Disposal Sewer Sanitation Course Garage Systems
Activities Fund Fund Fund Fund Fund Fund
Net Assets, December 31, 2009 119,853,666$ 4,121,382$ 55,667,522$ 1,166,051$ 314,440$ 223,898$ 145,178$
Capital Asset Adjustment 1,911,401 28,485 48,728 [10,346] 4,719 [693] [8,917]
Accounts Payable Adjustment - [85,513] - - - - -
Net Assets,
December 31, 2009, Restated 121,765,067$ 4,064,354$ 55,716,250$ 1,155,705$ 319,159$ 223,205$ 136,261$
Note 4. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
The City’s cash is considered to be active funds by management and is invested according to KSA 9-1401.
The statute requires that banks eligible to hold active funds have a main or branch bank in the county in
which the City is located or in a county adjacent to the City and the banks provide an acceptable rate for
active funds.
Various City investments are considered to be idle funds by management and are invested according to KSA
12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank
certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the
funds: U.S. Treasury bills or notes or the Municipal Investment Pool (KMIP). Maturities of the above
investments may not exceed two years by statute.
Some of the City’s investments are of bond proceeds invested pursuant to KSA 10-131. This statute allows
additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA
12-1675 or include other investments such as the KMIP, direct obligations of the U.S. government or any
agency thereof, investment agreements with a financial institution the obligations of which at the time of
investment are rated in either of the three highest rating categories by Moody’s investors service or Standard
and Poor’s corporation, and various other investments as specified in KSA 10-131.
At December 31, 2010, the City has the following investments:
Investment Type Fair Value Rating
Kansas Municipal Investment Pool 3,493,118$ S&P AAAf/S1+
Total fair value 3,493,118$
34
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
A. Deposits and Investments (Continued)
The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is
comprised of the State Treasurer and four additional members appointed by the State Governor. The board
reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or
obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with
primary government securities dealers.
The City’s investment policy provides direction on concentration risk. The City policy states that funds shall
be diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities,
instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration
of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices
insuring that the next disbursement date and payroll date are covered through maturing investments,
marketable U.S. Treasury Bills, the Municipal Investment Pool, or money market accounts.
Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis,
and that all securities are adequately collateralized.
Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby
the City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to
insure the ability to meet normal anticipated cash flow needs.
When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however,
such transactions shall not be a part of the normal course of business.
The City recognizes that investment risks can result from issuer defaults, market price changes or various
technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to
control risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and
Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks.
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
The City’s deposit policy for custodial credit risk require that the depository banks will maintain 100% security
in the form of FDIC coverage and pledged collateral according to KSA 9-1402.
35
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
B. Receivables
Receivables as of year end, including the applicable allowances for doubtful accounts, are as follows:
Tourism
and Special Bicentennial Debt
General Convention Gas Center Service Subtotal
Primary Government
Receivables:
Accounts 2,067,082$ 365,139$ -$ 44,418$ -$ 2,476,639$
Taxes 7,699,277 - 316,843 - 2,716,214 10,732,334
Interest 17,498 - - - - 17,498
Gross receivables 9,783,857 365,139 316,843 44,418 2,716,214 13,226,471
Less: allowance for
uncollectibles [1,572,664] - - - - [1,572,664]
Total 8,211,193$ 365,139$ 316,843$ 44,418$ 2,716,214$ 11,653,807$
Solid Water
Other Waste and
Governmental Sanitation Disposal Sewer Total
Primary Government
Receivables:
Accounts 52,801$ 180,145$ 275,134$ 1,242,667$ 4,227,386$
Taxes - - - - 10,732,334
Interest - - 16 - 17,514
Gross receivables 52,801 180,145 275,150 1,242,667 14,977,234
Less: allowance for
uncollectibles [588] [42,811] - [295,320] [1,911,383]
Total 52,213$ 137,334$ 275,150$ 947,347$ 13,065,851$
Component Units
Salina Airport Authority
Accounts 211,208$
Less: allowance for uncollectibles [984]
210,224
Taxes 1,833,239
Total Salina Airport Authority 2,043,463
Salina Housing Authority
Accounts 83,253
Other 11,981
Total Salina Housing Authority 95,234
Total 2,138,697$
C. Interfund Receivables and Payables
The composition of interfund balances as of December 31, 2010, is as follows:
Fund Types Due From Due To
General Fund 58,031$ -$
Other Government Funds - 58,031
58,031$ 58,031$
The City uses interfund receivables and payables as needed when pooled cash is negative within a fund until
investments mature or grant proceeds are received. All payables are cleared in less than one year.
36
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D. Capital Assets
Capital asset activity for the year ended December 31, 2010, was as follows:
Balance Adj. Bal. Balance
12/31/2009 Adjustments 12/31/2009 Additions Retirements 12/31/2010
City governmental activities:
Governmental activities:
Capital assets, not being depreciated
Construction in progress 34,037,838$ 1,469,499$ 35,507,337$ 14,581,177$ 17,539,359$ 32,549,155$
Land 22,477,191 - 22,477,191 - - 22,477,191
Capital assets, being depreciated
Infrastructure 137,864,180 525,084 138,389,264 5,927,032 - 144,316,296
Buildings and improvements 24,835,674 - 24,835,674 11,398,126 - 36,233,800
Vehicles 7,632,021 [11,975] 7,620,046 502,256 642,269 7,480,033
Equipment, furniture and fixtures 5,402,874 [87,617] 5,315,257 38,425 - 5,353,682
Total capital assets 232,249,778 1,894,991 234,144,769 32,447,016 18,181,628 248,410,157
Less accumulated depreciation for:
Infrastructure 57,657,811 6,286 57,664,097 2,939,700 - 60,603,797
Buildings and improvements 11,575,370 293 11,575,663 1,033,469 - 12,609,132
Vehicles 5,146,849 6,142 5,152,991 476,758 594,375 5,035,374
Equipment, furniture and fixtures 3,828,476 [29,131] 3,799,345 240,360 - 4,039,705
Total accumulated depreciation 78,208,506 [16,410] 78,192,096 4,690,287 594,375 82,288,008
Governmental activities capital assets, net 154,041,272$ 1,911,401$ 155,952,673$ 27,756,729$ 17,587,253$ 166,122,149$
Business-type activities:
Capital assets, not being depreciated
Construction in progress 1,604,953$ 166,701$ 1,771,654$ 1,451,059$ 1,706,109$ 1,516,604$
Land 1,541,002 - 1,541,002 - - 1,541,002
Capital assets, being depreciated
Infrastructure 67,049,286 [11,931] 67,037,355 1,920,310 - 68,957,665
Buildings and improvements 22,587,106 - 22,587,106 - - 22,587,106
Vehicles 2,901,405 [44,812] 2,856,593 217,443 86,296 2,987,740
Equipment, furniture and fixtures 4,407,079 [49,843] 4,357,236 717,291 697,802 4,376,725
Total capital assets 100,090,831 60,115 100,150,946 4,306,103 2,490,207 101,966,842
Less accumulated depreciation for:
Infrastructure 27,245,924 [584] 27,245,340 1,727,948 - 28,973,288
Buildings and improvements 9,798,497 2,070 9,800,567 441,303 - 10,241,870
Vehicles 1,972,535 [11,317] 1,961,218 209,469 86,296 2,084,391
Equipment, furniture and fixtures 2,500,449 [1,640] 2,498,809 283,941 388,394 2,394,356
Total accumulated depreciation 41,517,405 [11,471] 41,505,934 2,662,661 474,690 43,693,905
Business-type activities capital assets, net 58,573,426$ 71,586$ 58,645,012$ 1,643,442$ 2,015,517$ 58,272,937$
37
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D. Capital Assets (Continued)
The City’s depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General government 15,227$
Public safety 457,167
Public works 3,261,042
Public health 33,392
Culture and recreation 817,342
Planning and development 106,117
Total depreciation 4,690,287$
Business-type Activities:
Solid Waste Disposal 741,007$
Water and Sewer 1,767,504
Sanitation 110,065
Golf Course Division 44,085
Total depreciation 2,662,661$ E. Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2010:
Balance Balance Amounts
January 1, December 31, Due Within
2010 Additions Deletions 2010 One Year
Governmental activities:
General obligation bonds 52,067,590$ 7,081,231$ 6,027,868$ 53,120,953$ 4,491,133$
Accrued compensation 3,461,170 1,364,121 1,594,803 3,230,488 1,594,804
Temporary notes - 2,500,000 - 2,500,000 -
Total 55,528,760$ 10,945,352$ 7,622,671$ 58,851,441$ 6,085,937$
Business-type activities:
General obligation bonds 2,156,770$ 7,808,405$ 1,350,598$ 8,614,577$ 1,388,805$
Revenue bonds 2,320,000 - 740,000 1,580,000 770,000
Loans payable 5,862,516 - 5,862,516 - -
Accrued compensation 711,562 285,865 329,659 667,768 329,660
Total 11,050,848$ 8,094,270$ 8,282,773$ 10,862,345$ 2,488,465$
Component Units:
General obligation bonds 13,782,154$ -$ 990,000$ 12,792,154$ 1,040,000$
Financing lease 323,500 - 37,704 285,796 40,238
Temporary notes 7,050,000 11,652,467 7,050,000 11,652,467 -
Special assessment debt 207,948 - 62,649 145,299 20,286
Total component units 21,363,602$ 11,652,467$ 8,140,353$ 24,875,716$ 1,100,524$
38
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
The following is a detailed listing of the city’s long-term debt including general obligation bonds, revenue
bonds, temporary notes and loans payable:
Primary Government Original Interest Bonds
General Obligation Bonds Issue Rates Outstanding
Internal Improvements 2001, due 10/1/2016 5,350,000$ 4.00% to 4.90% 355,000$
Internal Improvements 2002B, due 10/1/2017 1,980,000 2.70% to 4.50% 330,000
Internal Improvements 2003A, due 10/1/2018 4,350,000 2.13% to 3.85% 2,085,000
Refunding 2004A, due 8/1/2015 5,585,000 2.10% to 4.00% 1,585,000
Internal Improvements 2004B, due 10/1/2019 4,053,000 3.00% to 4.00% 1,770,000
Internal Improvements 2005A, due 10/1/2020 4,210,000 2.95% to 4.25% 2,535,000
Internal Improvements 2006A, due 10/1/2026 2,200,000 3.55% to 5.50% 1,760,000
Internal Improvements 2006B, due 10/1/2021 885,000 4.00% to 4.50% 605,000
Internal Improvements 2007A, due 10/1/2027 6,545,000 4.25% to 4.625% 5,450,000
Internal Improvements 2008A, due 10/1/2023 3,720,000 3.25% to 4.00% 3,250,000
Internal Improvements 2008B, due 7/1/2028 3,525,000 3.65% to 5.00% 3,525,000
Internal Improvements 2009A, due 10/1/2029 23,695,000 2.00% to 5.00% 23,595,892
Internal Improvements 2010A, due 10/1/2025 6,875,000 2.00% to 3.875% 6,916,592
Internal Improvements 2010B, due 10/1/2023 7,860,000 0.50% to 3.00% 7,973,044
Total general obligation bonds 61,735,528$
Revenue Bonds
Revenue Refunding 2002A, due 9/1/2012 6,790,000$ 2.20% to 4.25% 1,580,000$
Total revenue bonds 1,580,000$
Temporary Notes
Series 2010-1, due 8/1/2011 2,500,000$ 1.00% 2,500,000$
Total revenue bonds 2,500,000$
39
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Original Interest Bonds
Issue Rates Outstanding
Component Unit
Salina Airport Authority
General Obligation Bonds
General Obligation 2001A, due 2012 1,385,000$ 4.45% to 5.60% 340,000$
General Obligation 2002A, due 2012 2,635,000 2.45% to 3.70% 600,000
General Obligation 2005A, due 2020 3,635,000 4.75% to 5.25% 3,180,000
General Obligation 2007A, due 2022 1,005,000 4.60% to 6.00% 850,000
General Obligation 2009A, due 2029 2,025,000 4.20% to 4.25% 1,932,154
General Obligation 2009B, due 2026 6,080,000 3.00% to 5.50%5,890,000
Total general obligation bonds 12,792,154
Temporary Notes
Series 2010-1, due 2012 11,675,000 1.075%11,652,467
Total temporary notes 11,652,467
Special Assessment Debt
Airport Industrial Center, due 2016 565,235 3.79% 123,392
Hangar 600 Sanitary Sewer, due 2021 27,599 4.47%21,907
Total special assessment debt 145,299
Financing Lease, due 2015 425,000 6.609%285,796
Total 24,875,716$
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
Bonds Interest
Year Outstanding Due Total
2011 5,879,937$ 2,246,785$ 8,126,722$
2012 5,999,937 2,012,951 8,012,888
2013 5,984,937 1,802,224 7,787,161
2014 5,649,937 1,593,284 7,243,221
2015 4,839,937 1,417,192 6,257,129
2016-2020 20,464,684 4,602,472 25,067,156
2021-2025 9,742,287 1,682,673 11,424,960
2026-2028 3,173,872 281,450 3,455,322
Total 61,735,528$ 15,639,031$ 77,374,559$
General Obligation - Primary Government
40
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Bonds Interest
Year Outstanding Due Total
2011 1,040,000$ 592,272$ 1,632,272$
2012 1,090,000 548,424 1,638,424
2013 635,000 501,950 1,136,950
2014 665,000 475,503 1,140,503
2015 695,000 447,280 1,142,280
2016-2020 3,995,000 1,742,003 5,737,003
2021-2025 2,475,000 894,080 3,369,080
2026-2029 2,290,000 251,242 2,541,242
Total 12,885,000$ 5,452,754$ 18,337,754$
General Obligation - Component Units
Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues:
Bonds Interest
Year Outstanding Due Total
2011 770,000$ 64,070$ 834,070$
2012 810,000 34,425 844,425
Total 1,580,000$ 98,495$ 1,678,495$
Revenue Bonds - Primary Government
Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general
obligation bonds:
Bonds Interest
Year Outstanding Due Total
2011 2,500,000$ 31,250$ 2,531,250$
Temporary Notes - Primary Government
Notes Interest
Year Outstanding Due Total
2011 11,675,000$ 171,298$ 11,846,298$
Temporary Notes - Component Units
41
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for financing lease - to be paid from rental revenue:
Lease Interest
Year Outstanding Due Total
2011 40,238$ 18,234$ 58,472$
2012 42,941 15,531 58,472
2013 45,826 12,646 58,472
2014 48,905 9,567 58,472
2015 52,190 6,282 58,472
2016 55,696 2,776 58,472
Total 285,796$ 65,036$ 350,832$
Financing Lease - Component Units
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Assessment Interest
Year Outstanding Due Total
2011 20,286$ 5,656$ 25,942$
2012 21,066 4,876 25,942
2013 21,876 4,067 25,943
2014 22,717 3,226 25,943
2015 23,590 2,352 25,942
2016-2020 33,310 2,891 36,201
2021-2025 2,454 110 2,564
Total 145,299$ 23,178$ 168,477$
Special Assessment Debt - Component Units
42
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are
financed through general obligation bonds of the City and are retired from the debt service fund. Special
assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special
assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The
special assessments are not recorded as revenue when levied against the respective property owners as
such amounts are not available to finance current year operations. The special assessment debt is a
contingent obligation of the City to the extent of property owner defaults, which have historically been
immaterial.
Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial
revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private
enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of
the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private
enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so
that payments required by the private enterprises are equal to the mortgage payments schedule related to the
original debt. At December 31, 2010, total outstanding conduit debt was $94,106,214.
Defeased debt. On October 15, 2010, the City issued $7,860,000 of Series 2010B general obligation
refunding bonds with interest ranging from 0.5 to 3.0%, $5,721,636 of which was used to current refund all
$2,086,419 of the outstanding Kansas Public Water Supply Loan No. 2153 with an interest rate of 4.29% and
all $3,577,234 of the outstanding Kansas Public Water Supply Loan No. 2259 with an interest rate of 4.13%.
Additionally, $2,251,407 of the proceeds were used to advance refund $1,775,000 of the Series 2001 General
Obligation Internal Improvement Bonds with interest rates ranging from 4.50% to 4.90% and $325,000 of the
Series 2002B General Obligation Internal Improvement Bonds with interest rates ranging from 4.10% to
4.50%. The net proceeds were used to establish an escrow account invested in U.S. Government Securities
to pay the outstanding principal of the Series 2001 General Obligation Internal Improvement Bonds, the
outstanding principal of the Series 2002B General Obligation Internal Improvement Bonds and the interest
due on the refunding general obligation bonds. As a result, these portions of the 2001 and 2002B bonds were
considered to be defeased and the liability for the defeased bonds has been removed from the City's financial
statements. The combined refunding transactions resulted in an economic gain of $760,626 and a reduction
of $751,673 in future debt payments.
On May 1, 2010, the City issued $6,875,000 of Series 2010A general internal improvement and refunding
bonds with interest rates ranging from 2.00 to 3.875%, $824,341 of which was used to current refund all
$820,000 of the outstanding Series 2002A General Obligation Water/sewer Refunding Bonds with interest
rates ranging from 4.20% to 4.50%. The transaction resulted in an economic gain of $41,141 and a reduction
of $45,622 in future debt payments.
43
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
F. Reconciliation of Transfers
A reconciliation of interfund transfers follows:
Transfer In Transfer Out
Major Funds:
General fund 902,234$ 984,358$
Tourism and convention fund - 549,883
Special gas fund 180,000 -
Bicentennial center fund 992,794 -
Debt service 2,000,000 -
Capital project fund 511,667 399,593
Other governmental funds 489,358 3,050,000
Solid waste disposal fund 193,708 333,234
Water and sewer fund 77,307 -
Sanitation fund - 50,000
Golf course fund 20,000 -
Total Transfers 5,367,068$ 5,367,068$
The City uses interfund transfers to share administrative costs between funds.
Note 5. OTHER INFORMATION
A. Defined Benefit Pension Plan
Plan description. The City participates in the Kansas Public Employees Retirement System (KPERS) and the
Kansas Police and Firemen’s Retirement System (KP&F). Both are cost-sharing multiple-employer defined
benefit pension plans as provided by Kansas statutes (KSA 74-4901 et seq). KPERS and KP&F provide
retirement benefits, life insurance, disability income benefits and death benefits. Kansas law established and
amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained by writing to 611 South
Kansas, Suite 100; Topeka, Kansas 66603 or by calling 1-888-275-5737.
Funding Policy. K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at up to 6% of
covered salary. K.S.A. 74-4975 establishes the KP&F member-employee contribution rate at 7% of covered
salary. The employer collects and remits member-employee contributions according to the provisions of
section 414 (h) of the Internal Revenue Code. State law provides that the employer contribution rates be
determined annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on
an actuarial reserve basis. State law sets a limitation on annual increases in the employer contribution rates.
The KPERS employer rate was 7.38% from January 1 to March, 31, 2010, 6.38% from April 1 to June 30,
2010 and 7.38% from July to December 31, 2010. The City employer contributions to KPERS for the years
ending December 31, 2010, 2009, and 2008 were $1,039,728, $831,493 and $789,277, respectively, equal to
the required contributions for each year. The KP&F employer rate established for fiscal years beginning in
2010 is 16.05%. Employers participating in KP&F also make contributions to amortize the liability for past
service costs, if any, which are determined separately for each participating employer. The City's
contributions to KP&F for the years ended December 31, 2010, 2009, and 2008 were $1,664,356, $1,769,379
and $1,722,988, respectively, equal to the required contributions for each year.
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their
salary until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial
trust and are not available to the claims of the City's general creditors.
44
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
C. Flexible Benefit Plan (I.R.C. Section 125)
The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section
125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to
participate in the Plan beginning after two full months of employment. Each participant may elect to reduce
his 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 City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; natural disasters and other events for which the City carries commercial insurance. No
significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not
exceeded insurance coverage for each of the past three years.
The City has established a limited risk management program for workers’ compensation. The program
covers all City employees. Premiums are paid into the Workers’ Compensation Reserve Fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving
employees classified as policemen or firemen). Incurred claims, including incurred but not reported claims,
have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering
the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other
economic and social factors. The liability for claims and judgments is reported in the Workers' Compensation
Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the
liability, $180,375 is considered to be due within one year. Changes in the balances of claims liabilities
during the past two years are as follows:
2010 2009
Unpaid claims, January 1 372,610$ 430,619$
Incurred claims (including
IBNRs) 409,801 220,684
Claim payments [356,829] [278,693]
Unpaid claims, December 31 425,582$ 372,610$
The City established a limited risk management program for employee health and dental insurance in 1997.
The program covers eligible City employees. Premiums are paid into the health insurance fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
amounts of payouts and other economic and social factors. The liability for claims and judgments in the
Health Insurance Fund because it is expected to be liquidated with expendable available financial resources.
Therefore, all of the liability is considered to be due within one year. Changes in the balances of claims
liabilities during the past two years are as follows:
2010 2009
Unpaid claims, January 1 421,530$ 375,084$
Incurred claims (including
IBNRs) 4,198,012 4,500,244
Claim payments [4,237,040] [4,453,798]
Unpaid claims, December 31 382,502$ 421,530$
45
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
E. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the
project authorization including allowable interest revenue to total project expenditures from project inception
to December 31, 2010.
Project Authorization Expenditures
N Ohio Grade Separation 6,200,000$ 6,189,540$
Pacific Avenue 300,000 530,297
Bicentennial Improvements 2,500,000 2,345,977
Markley, Magnolia, Valleyview Sanitary Sewer Improvements
and Manhole and Wastewater Pump Station Rehabilitation 5,150,000 1,054,615
Bergkamp Subdivisions 185,000 155,235
Grand Prairie Addition 1,618,096 1,422,237
Magnolia Commons 3,415,564 101,337
Salina Aquatics Facility 12,500,000 11,315,517
South 9th Corridor, Phase IV 6,500,000 5,942,887
Scoular Addition Waterline Imp. 75,453 48,674
Landfill Cell 5 Construction 1,600,000 1,642,852
Stone Creek Addition 440,193 324,404
Riffel # 2 Infrastructure 977,917 5,141
East Magnolia Road Replacement 4,500,000 326,921
Project overages in the Pacific Avenue project will be reimbursed by special sales tax proceeds.
F. Contingent Liabilities
The City receives significant financial assistance from numerous federal and state governmental agencies in
the form of grants and state pass-through aid. The disbursement of funds received under these programs
generally requires compliance with terms and conditions specified in the grant agreements and is subject to
audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other
applicable funds. However, in the opinion of management, any such disallowed claims would not have a
material effect on any of the financial statements of the City at December 31, 2010.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City.
G. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet
date. The $1,909,188 reported as landfill closure and postclosure care liability at December 31 represents
the cumulative amount reported to date based on the use of 28.2% of the estimated capacity of the landfill.
46
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
G. Municipal Solid Waste Landfill (Continued)
The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$4,857,555 as the remaining estimated capacity is filled over the remaining life expectancy of 87.5 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2010. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
H. Environmental Matters
The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the
Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and
on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under
which the City assumed primary responsibility for the further investigation and remediation of the groundwater
contamination. Field testing work has been completed. The necessary remediation work will be conducted
over the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
The U.S. Department of Defense transferred property located at the former Schilling Air Force Base to the
Authority on or about September 9, 1966. The property is now known to contain areas of extensive soil and
groundwater contamination, as a result of the use and disposal of chlorinated solvents during military
operations at the former base during its period of active military duty from 1942 to 1965.
The U.S. 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 investigated the 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 although the Authority believes that it has defenses to such liability.
Based on presently known information, 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.
47
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
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 of 2008 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.
The Salina Public Entities delivered on or about May 10, 2010, a settlement offer and a draft of a lawsuit
complaint to the attorney for the U.S. Department of Justice. The Salina Public Entities planned to file suit
against the United States if the matter was not settled by the end of May, 2010. The Salina Public Entities do
not intend to cut off settlement negotiations by the filing of suit, and this has been communicated to the United
States. No remedial action plan or record of decision has been adopted by the Corps, EPA or KDHE.
On or about May 27, 2010, the Salina Public Entities filed their Complaint against the United States of
America, the United States Department of Defense and Secretary of Defense, Robert M. Gates, in his official
capacity (collectively, "Defendants"). On or about September 22, 2010, the Salina Public Entities filed their
First Amended Complaint in four counts.
On or about October 6, 2010, Defendants filed their motion to dismiss and to strike. On or about March 25,
2011, Judge Murguia entered his Memorandum and Order. The Judge granted the Defendants' motion to
dismiss Counts I and II (citizen suit claims) for lack of subject matter jurisdiction. He also granted the
Defendants' motion to dismiss the Salina Public Entities' requests for attorney fees, with the exception of non-
litigation attorney fees. He denied the Defendants' motion to strike the Salina Public Entities' allegations of
conflict of interest. The Salina Public Entities' claims under Counts II and IV for response costs under
CERCLA 9607(a) are not affected by the Judge's rulings. The Salina Public Entities disagree with most of the
Judge's filings and plan to take an interlocutory appeal to the Tenth Circuit to contest the rulings.
On or about April 22, 2011, Defendants filed their Answer to First Amended Complaint and Counterclaim
against the Salina Public Entities. Count I of the Counterclaim alleges a claim for contribution under CERCLA,
42 U.S.C.§ 9613(f)(1). Count II of the Counterclaim alleges a claim for cost recovery under CERCLA, 42
U.S.C.§ 9607(a)(1). Count II alleges costs incurred by the U.S. Environmental Protection Agency of
approximately $1,838,241 as of September 30, 2007, and alleges costs incurred by the Corps of
approximately $14,915,228 as of April 17, 2009. The Salina Public Entities intend to vigorously contest the
claims brought against them and will assert, among other defenses, the third party defense under 42 U.S.C.§
9607(b)(3).
The parties have agreed on mediation to discuss settlement. The mediation sessions are scheduled to begin
on October 25, 2011.
48
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
In the Stipulation by Plaintiffs and Defendants filed in U.S. District Court on June 17, 2011, the U.S., on behalf
of the Corps, admitted that: "At some point or points between 1942 and 1965, during the time the United
States owned or operated the Site, military personnel of the United States used, disposed of and caused the
release of hazardous substances at the Site." This is a significant item for the Salina Public Entities as it is the
first time since the U.S., on behalf of the Corps, began its investigation in 1991 that the federal government
has provided such an admission.
I. Postemployment Health Care Plan
Plan Description. The City operates a single employer defined benefit healthcare plan administered by the
City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and
their spouses. KSA 12-5040 requires all local governmental entities in the state that provide a group health
care plan to make participation available to all retirees and dependents until the retiree reaches the age of 65
years. No separate financial report is issued for the Plan.
Funding Policy. The contribution requirements of plan participants and the City are established and amended
by the City. The required contribution is based on projected pay-as-you-go financing requirements. Plan
participants contributed approximately $100,000 to the Plan (approximately 100% of total premiums) through
their required contribution of $425 per month for retiree-only coverage and $1,141 for family coverage.
Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City’s annual OPEB cost for the Plan for the year, the
amount actually contributed to the plan, and the changes in the City’s net OPEB obligation to the Plan:
Annual required contribution 910,351$
Interest on Net OPEB Obligation 66,844
Adjustment to Annual Required Contribution [55,703]
Annual OPEB cost (expense) 921,492
Benefit payments 199,000
Change in net OPEB obligation 722,492
Net OPEB obligation - beginning of year 1,671,099
Net OPEB obligation - end of year 2,393,591$
49
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2010
Note 5. OTHER INFORMATION (Continued)
I. Postemployment Health Care Plan (Continued)
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB
obligation for the year ended December 31, 2010 was as follows:
Annual
Fiscal Annual OPEB Net
Year OPEB Cost OPEB
Ended Cost Contributed Obligation
December 31, 2008 910,418$ 96,672$ 813,746$
December 31, 2009 957,353 100,000 1,671,099
December 31, 2010 921,492 199,000 2,393,591
Funding Status and Funding Progress. As of the year ended December 31, 2010, the most recent actuarial
valuation date, the Plan was not funded. The actuarial accrued liability for benefits was $9,019,806 and the
actuarial value of asset was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $9,019,806.
The covered payroll (annual payroll of active employees covered by the plan) was $22,613,236, and the ratio
of the UAAL to the covered payroll was 39.89%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of
the plan and the annual required contributions of the employer are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future. The schedule of
funding progress, presented as required supplementary information following the notes to the financial
statement, presents multiyear trend information about whether the actuarial value of plan assets (if any) are
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan participants) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan participants to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
In the year ended December 31, 2010, actuarial valuation, the projected unit credit actuarial cost method was
used. The actuarial assumptions include a 4.00% investment rate of return, which is the rate of the
employer’s own investments as there are no plan assets and an initial annual medical and dental healthcare
cost trend of 9.30%, reduced by decrements to an ultimate rate 4.70% after eighty-two years. The UAAL is
being amortized as a level dollar over an open thirty-year period.
J. Related Party Transactions
The City paid $749 during the year ended December 31, 2010, to a travel agency owned by a City
Commissioner.
REQUIRED SUPPLEMENTARY INFORMATION
50
CITY OF SALINA, KANSAS
OTHER POST-EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2010
Schedule of Employer Contributions:
Annual
Fiscal Annual OPEB Net
Year OPEB Cost OPEB
Ended Cost Contributed Obligation
December 31, 2008 910,418$ 96,672$ 813,746$
December 31, 2009 957,353 100,000 1,671,099
December 31, 2010 921,492 199,000 2,393,591
Schedule of Funding Progress:
UAAL as
Actuarial Actuarial Actuarial Unfunded Funded Covered Percent of
Valuation Value of Accrued AAL Ratio Payroll Payroll
Date Assets (a)Liability (b)(b) - (a)(a/b)(c)(b-a)/(c)
12/31/2008 -$ 8,917,346$ 8,917,346$ 0.0% 21,874,112$ 40.77%
12/31/2009 - 8,917,346 8,917,346 0.0% 22,397,996 39.81%
12/31/2010 - 9,019,806 9,019,806 0.0% 22,613,236 39.89%
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
GENERAL FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 7,573,282$7,634,381$7,634,381$[61,099]$
Delinquent taxes 229,123 286,697 286,697 [57,574]
Motor vehicle taxes 961,648 1,016,084 1,207,040 [245,392]
General sales tax 11,117,078 12,084,152 11,600,000 [482,922]
Other taxes 4,169,205 4,533,500 4,238,781 [69,576]
Total taxes 24,050,336 25,554,814 24,966,899 [916,563]
Charges for Services
General charges 300 --300
General government 495 7,725 7,725 [7,230]
Public safety 3,668,048 3,593,889 3,719,331 [51,283]
Public works 196,095 131,000 131,000 65,095
Health and sanitation 45,331 45,551 54,000 [8,669]
Culture and recreation 1,169,105 1,021,838 1,121,838 47,267
Community and economic development 9,979 8,652 8,652 1,327
Total charges for services 5,089,353 4,808,655 5,042,546 46,807
Operating grants, restricted
General grants 186,206 190,000 185,000 1,206
Public safety 822,277 1,065,665 1,225,000 [402,723]
Budgeted Amounts
See independent auditor's report on the financial statements.
51
Public safety 822,277 1,065,665 1,225,000 [402,723]
Total operating grants, restricted 1,008,483 1,255,665 1,410,000 [401,517]
Operating grants, unrestricted
General grants 1,050 --1,050
Public safety 500 --500
Public works 328 3,000 3,000 [2,672]
Total operating grants, unrestricted 1,878 3,000 3,000 [1,122]
Interest income
General interest -40,000 40,000 [40,000]
Total interest income -40,000 40,000 [40,000]
Interfund services provided
General services 913,896 878,835 878,835 35,061
General government 1,972,316 1,242,376 1,242,376 729,940
Community and economic development 50,561 50,501 50,501 60
Total interfund services provided 2,936,773 2,171,712 2,171,712 765,061
Miscellaneous revenues
General miscellaneous revenues 72,710 120,000 120,000 [47,290]
General government 125 --125
Public safety 228,003 198,000 198,000 30,003
Public works 3,550 10,000 10,000 [6,450]
Culture and recreation 41,103 25,000 25,000 16,103
Community and economic development 907 --907
Total miscellaneous revenues 346,398 353,000 353,000 [6,602]
Proceeds of capital assets
General sales -30,000 30,000 [30,000]
Total proceeds of capital assets -30,000 30,000 [30,000]
Total revenues 33,433,221 34,216,846 34,017,157 [583,936]
See independent auditor's report on the financial statements.
51
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
GENERAL FUND (Continued)
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Expenditures
General Government
City commission 120,210$112,383$112,383$[7,827]$
City manager 544,435 580,736 560,736 16,301
Legal 388,819 305,300 305,300 [83,519]
Finance 524,915 546,434 546,434 21,519
Human resources 325,451 335,055 349,633 24,182
Other general government 518,101 4,446,654 5,031,849 4,513,748
Contingencies 128,374 50,000 100,000 [28,374]
Total general government 2,550,305 6,376,562 7,006,335 4,456,030
Public Safety
Police 8,341,040 8,416,349 8,273,449 [67,591]
Municipal court 1,629,919 1,684,239 1,628,516 [1,403]
Fire 8,081,319 7,813,687 7,739,180 [342,139]
Contingencies 4,794 --[4,794]
Total public safety 18,057,072 17,914,275 17,641,145 [415,927]
Public Works
Buildings and general improvements 964,764 948,433 905,090 [59,674]
Engineering 1,033,044 1,003,749 978,496 [54,548]
Streets 1,788,589 1,923,548 1,849,143 60,554
Budgeted Amounts
See independent auditor's report on the financial statements.
52
Streets 1,788,589 1,923,548 1,849,143 60,554
Flood works 218,398 225,098 220,218 1,820
Traffic control 774,104 784,872 751,217 [22,887]
Parks 1,419,674 1,565,768 1,481,399 61,725
ADA compliance 14,034 15,000 15,000 966
Total public works 6,212,607 6,466,468 6,200,563 [12,044]
Public Health and Sanitation
Cemetery 158,642 157,130 152,880 [5,762]
Health department 1,018,101 1,018,040 1,018,040 [61]
Total public health and sanitation 1,176,743 1,175,170 1,170,920 [5,823]
Culture and Recreation
Swimming pools 488,862 404,838 404,838 [84,024]
Neighborhood centers 47,778 49,444 47,258 [520]
Recreation 1,597,349 1,599,705 1,556,845 [40,504]
Arts and humanities 2,793 --[2,793]
Smoky Hill museum 461,705 472,963 446,363 [15,342]
Total culture and recreation 2,598,487 2,526,950 2,455,304 [143,183]
Community Development
Human relations 314,904 352,001 331,709 16,805
Development services 1,365,863 1,457,561 1,320,821 [45,042]
Agency contracts 728,220 728,140 728,140 [80]
Total community development 2,408,987 2,537,702 2,380,670 [28,317]
Capital Outlay
Capital outlay 383,796 972,135 611,430 227,634
Total expenditures 33,387,997 37,969,262 37,466,367 4,078,370
Excess [deficiency] of revenues
over [under] expenditures 45,224 [3,752,416][3,449,210]3,494,434
See independent auditor's report on the financial statements.
52
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
GENERAL FUND (Continued)
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Other financing sources [uses]
Transfer in 200,000$750,000$750,000$[550,000]$
Transfer [out][932,124][994,358][1,297,564]365,440
Total other financing sources [uses][732,124][244,358][547,564][184,560]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][686,900][3,996,774][3,996,774]3,309,874
Unreserved fund balance, January 1 3,589,641 3,996,774 3,996,774 [407,133]
Prior year cancelled encumbrances 15,910 --15,910
Unreserved fund balance, December 31 2,918,651 -$-$2,918,651$
Reconciliation to GAAP
Interest receivable 17,498
Accounts receivable 494,418
Inventory 87,328
Budgeted Amounts
See independent auditor's report on the financial statements.
53
Accounts receivable 494,418
Inventory 87,328
Current year encumbrances 99,286
GAAP Fund Balance, December 31 3,617,181$
See independent auditor's report on the financial statements.
53
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
FLOOD AND DRAINAGE IMPROVEMENT FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Delinquent taxes 911$2,000$2,000$[1,089]$
Motor vehicle taxes 402 276 276 126
Total taxes 1,313 2,276 2,276 [963]
Total revenues 1,313 2,276 2,276 [963]
Expenditures
Capital Outlay 973 109,438 109,438 108,465
Total expenditures 973 109,438 109,438 108,465
Excess [deficiency] of revenues
Budgeted Amounts
See independent auditor's report on the financial statements.
54
Excess [deficiency] of revenues
over [under] expenditures 340 [107,162][107,162]107,502
Unreserved fund balance, January 1 186,884 207,162 207,162 [20,278]
Prior year cancelled encumbrances 126 --126
Unreserved fund balance, December 31 187,350 100,000$100,000$87,350$
Reconciliation to GAAP
Current year encumbrances 1,176
.
GAAP Fund Balance, December 31 188,526$
See independent auditor's report on the financial statements.
54
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
TOURISM AND CONVENTION FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Other taxes 1,228,788$1,350,000$1,350,000$[121,212]$
Interest income
General interest 395 --395
Total revenues 1,229,183 1,350,000 1,350,000 [120,817]
Expenditures
Community Development
Tourism 678,906 900,000 900,000 221,094
Total expenditures 678,906 900,000 900,000 221,094
Budgeted Amounts
See independent auditor's report on the financial statements.
55
Excess [deficiency] of revenues
over [under] expenditures 550,277 450,000 450,000 100,277
Other financing sources [uses]
Transfer [out][549,883][450,000][450,000][99,883]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]394 --394
Unreserved fund balance, January 1 1,664 1,573 1,573 91
Unreserved fund balance, December 31 2,058 1,573$1,573$485$
Reconciliation to GAAP
Accounts receivable 365,139
GAAP Fund Balance, December 31 367,197$
See independent auditor's report on the financial statements.
55
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL GAS FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Operating grants, restricted
Public works 1,382,636$1,494,810$1,494,810$[112,174]$
Interest income
General interest 9,232 6,000 -9,232
Total revenues 1,391,868 1,500,810 1,494,810 [102,942]
Expenditures
Public Works
Streets 390,175 480,875 480,875 90,700
Capital outlay 1,727,458 1,225,196 1,918,753 191,295
Cash reserve --500,000 500,000
Total expenditures 2,117,633 1,706,071 2,899,628 781,995
Budgeted Amounts
See independent auditor's report on the financial statements.
56
Total expenditures 2,117,633 1,706,071 2,899,628 781,995
Excess [deficiency] of revenues
over [under] expenditures [725,765][205,261][1,404,818]679,053
Other financing sources [uses]
Transfer in 180,000 180,000 180,000 -
Total other financing sources [uses]180,000 180,000 180,000 -
Excess [deficiency] of revenues
and other sources over [under][545,765][25,261][1,224,818]679,053
expenditures and other [uses]
Unreserved fund balance, January 1 1,224,818 525,262 1,224,818 -
Prior year cancelled encumbrances 55,956 --55,956
Unreserved fund balance, December 31 735,009 500,001$-$735,009$
Reconciliation to GAAP
Taxes receivable 316,843
Retainage payable [65,628]
Current year encumbrances 498,417
GAAP Fund Balance, December 31 1,484,641$
See independent auditor's report on the financial statements.
56
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BICENTENNIAL CENTER FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Culture and recreation 713,994$787,000$750,970$[36,976]$
Interest income
General interest -3,500 --
Total revenues 713,994 790,500 750,970 [36,976]
Expenditures
Culture and Recreation
Bicentennial Center 1,752,087 1,958,264 1,839,992 87,905
Capital outlay 16,159 10,000 15,318 [841]
Total expenditures 1,768,246 1,968,264 1,855,310 87,064
Excess [deficiency] of revenues
Budgeted Amounts
See independent auditor's report on the financial statements.
57
Excess [deficiency] of revenues
over [under] expenditures [1,054,252][1,177,764][1,104,340]50,088
Other financing sources [uses]
Transfer in 992,794 1,075,000 1,041,252 [48,458]
Total other financing sources [uses]992,794 1,075,000 1,041,252 [48,458]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][61,458][102,764][63,088]1,630
Unreserved fund balance, January 1 63,088 139,129 63,088 -
Unreserved fund balance, December 31 1,630 36,365$-$1,630$
Reconciliation to GAAP
Accounts receivable 44,418
GAAP Fund Balance, December 31 46,048$
See independent auditor's report on the financial statements.
57
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
58
CITY OF SALINA, KANSAS
COMBINING STATEMENTS - NONMAJOR FUNDS
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Business improvement district fund - State law allows businesses within an area to voluntarily establish an
improvement City. This fund is used to account for the assessments made on the District. All revenues are to be
used within the Business Improvement District.
Neighborhood park fund - To account for fees collected from new residential building projects in Salina.
Expenditures are for acquisition or development of neighborhood parks in the growing areas of the community.
Special parks and recreation fund - To account for liquor tax revenues, which must be used for park maintenance
and improvements.
Special alcohol fund - To account for liquor tax revenues, which must be used for programs, which address
prevention, education or intervention for drug and alcohol abuse.
Bicentennial center event fund - To account for the revenues and expenses associated with special events
(concerts, shows, etc.) at the City's convention center.
HUD community development fund - To account for grants received from the state to be used for housing or
economic development purposes.
Community development revolving fund - To account for funds, which may be loaned for housing and economic
development, purposes, to later be repaid and reused on a revolving basis.
Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities.
Sales tax capital fund - To account for 87.5% of the 1/4 cent sales tax designated for capital, debt, and human
services purposes.
Sales tax economic development fund - To account for 12.5% of the 1/4 cent sales tax designated for economic
Development purposes.
Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
CDBG ED fund- To account for grants received from the federal government to be used for economic development
loans to qualifying businesses.
HOME V fund - To account for grants received from the state government to be used for housing rehabilitation.
Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during
drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities.
Police grants fund - To account for revenues from grants, which are to be used for special police activities, including
the D.A.R.E. program
D.A.R.E. donations fund - To account for donations to the D.A.R.E. program.
War memorial maintenance fund - To account for monies to be used for maintenance of the local war memorial.
Arts & humanities fund - To account for revenues and expenses associated with arts and humanities activities.
59
CITY OF SALINA, KANSAS
COMBINING STATEMENTS - NONMAJOR FUNDS
NONMAJOR PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Cemetery endowment fund - To account for amounts expended for perpetual care of the City cemetery. Interest
earnings are used for cemetery maintenance.
Mausoleum endowment fund - To account for amounts charged for perpetual care of the City mausoleum. Interest
earnings are used for mausoleum maintenance.
Tricentennial commission fund - To account for donations to be used to celebrate the nation's tricentennial in the
year 2076.
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
ASSETS
Cash and investments 4,159,652$416,490$624,328$5,200,470$
Receivables
Accounts 52,213 --52,213
Total assets 4,211,865$416,490$624,328$5,252,683$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 44,018$-$14,615$58,633$
Due to other funds 58,031 --58,031
Total liabilities 102,049 -14,615 116,664
Fund balances:
Reserved for encumbrances 588,487 --588,487
Reserved for debt service --609,713 609,713
Unreserved
Undesignated 3,521,329 416,490 -3,937,819
Total fund balances 4,109,816 416,490 609,713 5,136,019
Total liabilities and fund balances 4,211,865$416,490$624,328$5,252,683$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2010
See independent auditor's report on the financial statements.
60
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
REVENUES
Taxes 4,107,810$-$-$4,107,810$
Intergovernmental 744,955 -270,270 1,015,225
Charges for services 1,023,410 8,000 -1,031,410
Licenses and permits 11,051 --11,051
Investment revenue 17,909 2,096 45 20,050
Miscellaneous 95,319 --95,319
Total revenues 6,000,454 10,096 270,315 6,280,865
EXPENDITURES
Current
Culture and recreation 1,424,871 --1,424,871
Public health and sanitation 154,979 --154,979
For the Year Ended December 31, 2010
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
See independent auditor's report on the financial statements.
61
Public health and sanitation 154,979 --154,979
Planning and development 501,817 --501,817
Miscellaneous -32,225 -32,225
Debt service
Principal retirement 25,000 --25,000
Interest and other charges 5,194 -157,345 162,539
Capital outlay 767,187 --767,187
Total expenditures 2,879,048 32,225 157,345 3,068,618
Excess [deficiency] of revenues
over [under] expenditures 3,121,406 [22,129]112,970 3,212,247
Other financing sources [uses]
Transfers in 489,358 --489,358
Transfers [out][3,050,000]--[3,050,000]
Total other financing sources [uses][2,560,642]--[2,560,642]
Net change in fund balance 560,764 [22,129]112,970 651,605
Fund balance - Beginning of year 3,549,052 438,619 496,743 4,484,414
Fund balance - End of year 4,109,816$416,490$609,713$5,136,019$
See independent auditor's report on the financial statements.
61
Business Special
Improvement Neighborhood Parks &Special
District Park Recreation Alcohol
ASSETS
Cash and investments 1,689$222,255$75,667$144$
Receivables
Accounts 52,213 ---
Total assets 53,902$222,255$75,667$144$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 1,689$-$9,146$-$
Due to other funds ----
Total liabilities 1,689 -9,146 -
Fund balance:
Reserved for encumbrances --6,336 -
Unreserved
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2010
CITY OF SALINA, KANSAS
Unreserved
Undesignated [deficit]52,213 222,255 60,185 144
Total fund balance [deficit]52,213 222,255 66,521 144
Total liabilities and fund balances 53,902$222,255$75,667$144$
Bicentennial HUD Comm.Sales Tax
Center Community Development.Heritage Sales Tax Economic
Event Dev.Revolving Commission Capital Development
105,419$71,680$230,665$4$2,154,367$1,043,405$
------
105,419$71,680$230,665$4$2,154,367$1,043,405$
-$-$-$-$-$-$
------
------
----582,151 -
105,419 71,680 230,665 4 1,572,216 1,043,405
105,419 71,680 230,665 4 2,154,367 1,043,405
105,419$71,680$230,665$4$2,154,367$1,043,405$
See independent auditor's report on the financial statements.
62
Special
Fair CDBG HOME Law
Housing ED V Enforcement
ASSETS
Cash and investments 43,156$3,831$-$20,951$
Receivables
Accounts ----
Total assets 43,156$3,831$-$20,951$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 491$26,160$-$-$
Due to other funds --58,031 -
Total liabilities 491 26,160 58,031 -
Fund balance:
Reserved for encumbrances ----
Unreserved
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
CITY OF SALINA, KANSAS
December 31, 2010
Unreserved
Undesignated [deficit]42,665 [22,329][58,031]20,951
Total fund balance [deficit]42,665 [22,329][58,031]20,951
Total liabilities and fund balances 43,156$3,831$-$20,951$
War
Police DARE Memorial Arts &
Grants Donations Maintenance Humanities Totals
21$1,737$35,958$148,703$4,159,652$
----52,213
21$1,737$35,958$148,703$4,211,865$
5,365$-$-$1,167$44,018$
----58,031
5,365 --1,167 102,049
----588,487
[5,344]1,737 35,958 147,536 3,521,329
[5,344]1,737 35,958 147,536 4,109,816
21$1,737$35,958$148,703$4,211,865$
63
See independent auditor's report on the financial statements.
Business Special
Improvement Neighborhood Parks &Special
District Park Recreation Alcohol
Revenues
Taxes -$-$-$-$
Intergovernmental --144,931 144,929
Charges for services 83,902 ---
Licenses and permits -11,051 --
Investment revenue 40 1,058 656 1
Miscellaneous ----
Total Revenues 83,942 12,109 145,587 144,930
Expenditures
Current
Culture and recreation ----
Public health and sanitation ---154,979
Planning and development 83,138 ---
Debt service
Principal retirement --25,000 -
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
For the Year Ended December 31, 2010
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
Principal retirement --25,000 -
Interest and other charges --5,194 -
Capital outlay --61,275 -
Total Expenditures 83,138 -91,469 154,979
Excess [deficiency] of revenues over
[under] expenditures 804 12,109 54,118 [10,049]
Other financing sources [uses]
Transfers in ----
Transfers [out]--[100,000]-
Total other financing sources [uses]--[100,000]-
Net change in fund balance 804 12,109 [45,882][10,049]
Fund balance, beginning of year 51,409 210,146 112,403 10,193
Fund balance, end of year 52,213$222,255$66,521$144$
Bicentennial HUD Community Sales Tax
Center Community Development Heritage Sales Tax Economic
Event Development Revolving Commission Capital Development
-$-$-$-$3,808,247$299,563$
------
582,609 -----
------
-350 1,125 -7,719 5,646
------
582,609 350 1,125 -3,815,966 305,209
482,946 -----
------
------
------------
------
----339,009 369,426
482,946 ---339,009 369,426
99,663 350 1,125 -3,476,957 [64,217]
------
----[2,950,000]-
----[2,950,000]-
99,663 350 1,125 -526,957 [64,217]
5,756 71,330 229,540 4 1,627,410 1,107,622
105,419$71,680$230,665$4$2,154,367$1,043,405$
See independent auditor's report on the financial statements.
64
Special
Fair CDBG HOME Law
Housing ED V Enforcement
Revenues
Taxes -$-$-$-$
Intergovernmental 72,125 334,361 --
Charges for services ----
Licenses and permits ----
Investment revenue 154 --90
Miscellaneous 1,988 --6,352
Total Revenues 74,267 334,361 -6,442
Expenditures
Current
Culture and recreation ----
Public health and sanitation ----
Planning and development 63,548 355,061 --
Debt service
Principal retirement ----
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
For the Year Ended December 31, 2010
AND CHANGES IN FUND BALANCES
Principal retirement ----
Interest and other charges ----
Capital outlay ----
Total Expenditures 63,548 355,061 --
Excess [deficiency] of revenues over
[under] expenditures 10,719 [20,700]-6,442
Other financing sources [uses]
Transfers in ----
Transfers [out]----
Total other financing sources [uses]----
Net change in fund balance 10,719 [20,700]-6,442
Fund balance, beginning of year 31,946 [1,629][58,031]14,509
Fund balance, end of year 42,665$[22,329]$[58,031]$20,951$
War
Police DARE Memorial Arts &
Grants Donations Maintenance Humanities Totals
-$-$-$-$4,107,810$
---48,609 744,955
---356,899 1,023,410
----11,051
-9 175 886 17,909
---86,979 95,319
-9 175 493,373 6,000,454
--112 941,813 1,424,871
----154,979
-70 --501,817
----25,000----25,000
----5,194
[2,523]---767,187
[2,523]70 112 941,813 2,879,048
2,523 [61]63 [448,440]3,121,406
---489,358 489,358
----[3,050,000]
---489,358 [2,560,642]
2,523 [61]63 40,918 560,764
[7,867]1,798 35,895 106,618 3,549,052
[5,344]$1,737$35,958$147,536$4,109,816$
See independent auditor's report on the financial statements.
65
Cemetery Mausoleum Tricentennial
ASSETS Endowment Endowment Commission Total
Cash and investments 408,811$1,991$5,688$416,490$
Total assets 408,811$1,991$5,688$416,490$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable -$-$-$-$
Total liabilities ----
Fund balances
Unreserved
Undesignated 408,811 1,991 5,688 416,490
Total liabilities and fund balances 408,811$1,991$5,688$416,490$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
December 31, 2010
NONMAJOR PERMANENT FUNDS
See independent auditor's report on the financial statements.
66
Cemetery Mausoleum Tricentennial
Endowment Endowment Commission Total
Revenues
Charges for services 8,000$-$-$8,000$
Investment revenue 1,978 90 28 2,096
Total revenues 9,978 90 28 10,096
Expenditures
Miscellaneous 35 32,190 -32,225
Total expenditures 35 32,190 -32,225
Net change in fund balance 9,943 [32,100]28 [22,129]
Fund balances - beginning of year 398,868 34,091 5,660 438,619
Fund balances - end of year 408,811$1,991$5,688$416,490$
NONMAJOR PERMANENT FUNDS
For the Year Ended December 31, 2010
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
See independent auditor's report on the financial statements.
67
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BUSINESS IMPROVEMENT CITY FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Community and economic development 83,087$90,500$90,500$[7,413]$
Interest income
General interest 40 500 500 [460]
Total revenues 83,127 91,000 91,000 [7,873]
Expenditures
Community Development
Business Improvement District 83,138 90,500 90,500 7,362
Total expenditures 83,138 90,500 90,500 7,362
Excess [deficiency] of revenues
over [under] expenditures [11]500 500 [511]
Unreserved fund balance, January 1 11 500 500 [489]
Unreserved fund balance, December 31 -1,000$1,000$[1,000]$
Reconciliation to GAAP
Accounts receivable 52,213
GAAP Fund Balance, December 31 52,213$
Budgeted Amounts
See independent auditor's report on the financial statements.
68
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
NEIGHBORHOOD PARK FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Public works 11,051$20,000$20,000$[8,949]$
Interest income
General interest 1,058 4,000 4,000 [2,942]
Total revenues 12,109 24,000 24,000 [11,891]
Expenditures
Cash reserve ----
Total expenditures ----
Excess [deficiency] of revenues
over [under] expenditures 12,109 24,000 24,000 [11,891]
Unreserved fund balance, January 1 210,146 217,206 217,206 [7,060]
Unreserved fund balance/GAAP fund balance
December 31 222,255$241,206$241,206$[18,951]$
Budgeted Amounts
See independent auditor's report on the financial statements.
69
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL PARKS AND RECREATION FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Operating grants, restricted
Culture and recreation 144,931$160,000$160,000$[15,069]$
Interest income
General interest 656 4,000 4,000 [3,344]
Total revenues 145,587 164,000 164,000 [18,413]
Expenditures
Debt Service
Principal 25,000 30,000 30,000 5,000
Interest and other charges 5,194 --[5,194]
Capital Outlay 62,977 100,000 100,000 37,023
Total expenditures 93,171 130,000 130,000 36,829
Excess [deficiency] of revenues
over [under] expenditures 52,416 34,000 34,000 18,416
Other financing sources [uses]
Transfer [out][100,000]--[100,000]
Total other financing sources [uses][100,000]--[100,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][47,584]34,000 34,000 [81,584]
Unreserved fund balance, January 1 107,719 102,268 102,268 5,451
Prior year cancelled encumbrances 50 --50
Unreserved fund balance, December 31 60,185 136,268$136,268$[76,083]$
Reconciliation to GAAP
Current year encumbrances 6,336
GAAP Fund Balance, December 31 66,521$
Budgeted Amounts
See independent auditor's report on the financial statements.
70
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL ALCOHOL FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Operating grants, restricted
Health and sanitation 144,929$160,000$160,000$[15,071]$
Interest income
General interest 1 --1
Total revenues 144,930 160,000 160,000 [15,070]
Expenditures
Public Health and Sanitation
Special alcohol 154,979 160,000 160,000 5,021
Total expenditures 154,979 160,000 160,000 5,021
Excess [deficiency] of revenues
over [under] expenditures [10,049]--[10,049]
Unreserved fund balance, January 1 10,193 21 21 10,172
Unreserved fund balance/GAAP fund balance
December 31 144$21$21$123$
Budgeted Amounts
See independent auditor's report on the financial statements.
71
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SALES TAX CAPITAL FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Selective sales tax 3,554,825$3,586,740$3,559,424$[4,599]$
Operating grants, unrestricted
General grants 253,423 -253,422 1
Interest income
General interest 7,719 20,000 6,000 1,719
Total revenues 3,815,967 3,606,740 3,818,846 [2,879]
Expenditures
General Government
Other general government 41 -334,175 334,134
Capital Outlay 720,500 950,000 2,018,751 1,298,251
Budgeted Amounts
See independent auditor's report on the financial statements.
72
Capital Outlay 720,500 950,000 2,018,751 1,298,251
Total expenditures 720,541 950,000 2,352,926 1,632,385
Excess [deficiency] of revenues
over [under] expenditures 3,095,426 2,656,740 1,465,920 1,629,506
Other financing sources [uses]
Transfer [out][2,950,000][2,650,000][2,850,000][100,000]
Total other financing sources [uses][2,950,000][2,650,000][2,850,000][100,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]145,426 6,740 [1,384,080]1,529,506
Unreserved fund balance, January 1 1,387,094 167,005 1,384,080 3,014
Prior year cancelled encumbrances 39,696 --39,696
Unreserved fund balance, December 31 1,572,216 173,745$-$1,572,216$
Reconciliation to GAAP
Current year encumbrances 582,151
GAAP Fund Balance, December 31 2,154,367$
See independent auditor's report on the financial statements.
72
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SALES TAX ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Selective sales tax 299,563$305,444$300,000$[437]$
Interest income
General interest 5,646 10,000 5,000 646
Total revenues 305,209 315,444 305,000 209
Expenditures
Community Development
Economic development 369,426 315,444 1,412,621 1,043,195
Total expenditures 369,426 315,444 1,412,621 1,043,195
Excess [deficiency] of revenues
Budgeted Amounts
See independent auditor's report on the financial statements.
73
Excess [deficiency] of revenues
over [under] expenditures [64,217]-[1,107,621]1,043,404
Unreserved fund balance, January 1 1,107,622 55,231 1,107,621 1
Unreserved fund balance/GAAP fund balance 1,043,405$55,231$-$1,043,405$
December 31
See independent auditor's report on the financial statements.
73
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
FAIR HOUSING FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Operating grants, restricted
Community and economic development 74,113$65,000$65,000$9,113$
Interest income
General interest 154 1,052 1,052 [898]
Total revenues 74,267 66,052 66,052 8,215
Expenditures
Community Development
Human relations 63,548 77,011 77,011 13,463
Total expenditures 63,548 77,011 77,011 13,463
Budgeted Amounts
See independent auditor's report on the financial statements.
74
Excess [deficiency] of revenues
over [under] expenditures 10,719 [10,959][10,959]21,678
Unreserved fund balance, January 1 31,946 10,959 10,959 20,987
Unreserved fund balance/GAAP fund balance
December 31 42,665$-$-$42,665$
See independent auditor's report on the financial statements.
74
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
ARTS & HUMANITIES FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Culture and recreation 443,398$381,824$441,069$2,329$
Operating grants, unrestricted
Culture and recreation 48,609 -48,608 1
Interest income
General interest 886 501 700 186
Miscellaneous revenues
Culture and recreation 479 --479
Total revenues 493,372 382,325 490,377 2,995
Expenditures
Culture and Recreation
Budgeted Amounts
See independent auditor's report on the financial statements.
75
Culture and Recreation
Arts and humanities 577,297 587,049 740,418 163,121
Smoky Hill River Festival 366,719 272,570 272,570 [94,149]
Capital Outlay 2,796 --[2,796]
Cash Reserve --78,365 78,365
Total expenditures 946,812 859,619 1,091,353 144,541
Excess [deficiency] of revenues
over [under] expenditures [453,440][477,294][600,976]147,536
Other financing sources [uses]
Transfer in 489,358 489,358 489,358 -
Total other financing sources [uses]489,358 489,358 489,358 -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]35,918 12,064 [111,618]147,536
Unreserved fund balance, January 1 111,618 29,674 111,618 -
Unreserved fund balance/GAAP fund balance
December 31 147,536$41,738$-$147,536$
See independent auditor's report on the financial statements.
75
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
DEBT SERVICE FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 2,182,972$2,189,613$2,189,613$[6,641]$
Delinquent taxes 47,782 40,000 40,000 7,782
Motor vehicle taxes 183,079 195,965 195,965 [12,886]
Total taxes 2,413,833 2,425,578 2,425,578 [11,745]
Charges for services
Special assessments 1,385,171 1,263,009 1,263,009 122,162
Interest income
General interest 8,336 10,000 10,000 [1,664]
Miscellaneous revenues
General miscellaneous revenues 6,441 10,000 10,000 [3,559]
Other financing sources
Budgeted Amounts
See independent auditor's report on the financial statements.
76
Other financing sources
General sources 2,282 --2,282
Total revenues 3,816,063 3,708,587 3,708,587 107,476
Expenditures
Debt Service
Principal 3,926,701 4,085,000 4,085,000 158,299
Interest and other charges 2,052,780 1,818,229 1,818,229 [234,551]
Cash Reserve -399,127 399,127 399,127
Total expenditures 5,979,481 6,302,356 6,302,356 322,875
Excess [deficiency] of revenues
over [under] expenditures [2,163,418][2,593,769][2,593,769]430,351
Other financing sources [uses]
Transfer in 2,000,000 2,000,000 2,000,000 -
Total other financing sources [uses]2,000,000 2,000,000 2,000,000 -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][163,418][593,769][593,769]430,351
Unreserved fund balance,
January 1 735,291 593,769 593,769 141,522
Unreserved fund balance/GAAP fund balance
December 31 571,873$-$-$571,873$
See independent auditor's report on the financial statements.
76
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SOLID WASTE DISPOSAL FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Health and sanitation 2,400,105$2,600,192$2,600,192$[200,087]$
Interest income
General interest 14,457 7,000 7,000 7,457
Interfund services provided
Health and sanitation 485,005 463,808 463,808 21,197
Miscellaneous revenues
Health and sanitation 24,839 20,000 20,000 4,839
Total revenues 2,924,406 3,091,000 3,091,000 [166,594]
Expenditures
Public Health and Sanitation
Solid waste 1,951,922 4,228,244 4,228,244 2,276,322
Hazardous waste disposal 84,160 100,602 100,602 16,442
Total public health and sanitation 2,036,082 4,328,846 4,328,846 2,292,764
Debt Service
Principal 373,000 412,334 412,334 39,334
Interest 35,775 99,675 99,675 63,900
Total debt service 408,775 512,009 512,009 103,234
Capital Outlay 501,537 568,638 568,638 67,101
Total expenditures 2,946,394 5,409,493 5,409,493 2,463,099
Excess [deficiency] of revenues
over [under] expenditures [21,988][2,318,493][2,318,493]2,296,505
Other financing sources [uses]
Transfers [out][153,234]--[153,234]
Total other financing sources [uses][153,234]--[153,234]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][175,222][2,318,493][2,318,493]2,143,271
Unreserved fund balances, January 1 (as originally stated)2,751,271 2,318,493 2,318,493 432,778
Prior period adjustment [85,513]--[85,513]
Unreserved fund balances, January 1 (restated)2,665,758 2,318,493 2,318,493 347,265
Unreserved fund balances, December 31 2,490,536$-$-$2,490,536$
Budgeted Amounts
See independent auditor's report on the financial statements.
77
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
WATER AND SEWER FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Water and wastewater 15,949,822$15,252,706$15,252,706$697,116$
Interest income
General interest 47,023 25,000 25,000 22,023
Interfund services provided
General services 27,829 30,900 30,900 [3,071]
Water and wastewater 77,513 --77,513
Total interfund services 105,342 30,900 30,900 74,442
Miscellaneous revenues
General miscellaneous revenues 128 --128
Water and wastewater 515,180 260,000 260,000 255,180
Total miscellaneous revenues 515,308 260,000 260,000 255,308
Total revenues 16,617,495 15,568,606 15,568,606 1,048,889
Expenditures
Water and Wastewater
Water 8,074,510 11,380,603 11,380,603 3,306,093
Sewer 2,661,845 2,836,629 2,836,629 174,784
Total water and wastewater 10,736,355 14,217,232 14,217,232 3,480,877
Capital Outlay 1,324,010 1,957,000 1,957,000 632,990
Total expenditures 12,060,365 16,174,232 16,174,232 4,113,867
Excess [deficiency] of revenues
over [under] expenditures 4,557,130 [605,626][605,626]5,162,756
Other financing sources [uses]
Transfers [out][2,407,184][2,457,184][2,457,184]50,000
Total other financing sources [uses][2,407,184][2,457,184][2,457,184]50,000
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]2,149,946 [3,062,810][3,062,810]5,212,756
Unreserved fund balances, January 1 7,549,705 4,917,085 4,917,085 2,632,620
Prior year cancelled encumbrances 239 --239
Unreserved fund balances, December 31 9,699,890$1,854,275$1,854,275$7,845,615$
Budgeted Amounts
See independent auditor's report on the financial statements.
78
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SANITATION FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Health and sanitation 2,311,118$2,301,848$2,301,848$9,270$
Interest income
General interest 3,221 3,500 3,500 [279]
Charges for services
Miscellaneous revenues 950 --950
Total revenues 2,315,289 2,305,348 2,305,348 9,941
Expenditures
Public Health and Sanitation
Sanitation 2,119,171 2,593,322 2,593,322 474,151
Capital Outlay 161,015 191,400 191,400 30,385
Total expenditures 2,280,186 2,784,722 2,784,722 504,536
Excess [deficiency] of revenues
over [under] expenditures 35,103 [479,374][479,374]514,477
Other financing sources [uses]
Transfers [out][50,000]--[50,000]
Total other financing sources [uses][50,000]--[50,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][14,897][479,374][479,374]464,477
Unreserved fund balance, January 1 596,708 479,374 479,374 117,334
Unreserved fund balances, December 31 581,811$-$-$581,811$
Budgeted Amounts
See independent auditor's report on the financial statements.
79
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
GOLF COURSE FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
Culture and recreation 735,784$793,300$756,795$[21,011]$
Interest income
General interest 228 200 643 [415]
Miscellaneous revenues
General miscellaneous revenues 153 36,000 152 1
Culture and recreation 46,726 24,000 25,817 20,909
Total miscellaneous revenues 46,879 60,000 25,969 20,910
Total revenues 782,891 853,500 783,407 [516]
Expenditures
Culture and Recreation
Golf course 778,594 839,101 868,713 90,119
Capital Outlay 16,141 --[16,141]
Total expenditures 794,735 839,101 868,713 73,978
Excess [deficiency] of revenues
over [under] expenditures [11,844]14,399 [85,306]73,462
Other financing sources [uses]
Transfers [out]20,000 -50,000 [30,000]
Total other financing sources [uses]20,000 -50,000 [30,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]8,156 14,399 [35,306]43,462
Unreserved fund balances, January 1 35,306 85,648 35,306 -
Unreserved fund balances, December 31 43,462$100,047$-$43,462$
Budgeted Amounts
See independent auditor's report on the financial statements.
80
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
RISK MANAGEMENT FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Interest income
General interest -$1,400$1,400$[1,400]$
Interfund services provided
General services 275,734 315,733 315,733 [39,999]
Miscellaneous revenues
General miscellaneous revenues 29,988 40,000 40,000 [10,012]
Total revenues 305,722 357,133 357,133 [51,411]
Expenditures
Other
Risk management 407,773 432,050 432,050 24,277
Capital Outlay -1,000 1,000 1,000
Total expenditures 407,773 433,050 433,050 25,277
Excess [deficiency] of revenues
over [under] expenditures [102,051][75,917][75,917][26,134]
Unreserved fund balance, January 1 151,899 153,275 153,275 [1,376]
Unreserved fund balance, December 31 49,848$77,358$77,358$[27,510]$
Budgeted Amounts
See independent auditor's report on the financial statements.
81
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
WORKERS' COMPENSATION RESERVE FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Interest income
General interest 4,197$2,500$2,500$1,697$
Interfund services provided
General services 179,029 220,205 220,205 [41,176]
Total revenues 183,226 222,705 222,705 [39,479]
Expenditures
Other
Worker's compensation 303,656 260,000 260,000 [43,656]
Total expenditures 303,656 260,000 260,000 [43,656]
Budgeted Amounts
See independent auditor's report on the financial statements.
82
Excess [deficiency] of revenues
over [under] expenditures [120,430][37,295][37,295][83,135]
Unreserved fund balance, January 1 742,059 805,217 805,217 [63,158]
Unreserved fund balance, December 31 621,629$767,922$767,922$[146,293]$
See independent auditor's report on the financial statements.
82
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
HEALTH INSURANCE FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Interest income
General interest 9,432$5,000$5,000$4,432$
Interfund Services Provided
General services 6,279,092 6,153,946 6,153,946 125,146
Miscellaneous revenues
General miscellaneous revenues 31,012 36,000 36,000 [4,988]
Total revenues 6,319,536 6,194,946 6,194,946 124,590
Expenditures
Other
Health insurance 6,641,875 7,919,184 7,919,184 1,277,309
Total expenditures 6,641,875 7,919,184 7,919,184 1,277,309
Excess [deficiency] of revenues
over [under] expenditures [322,339][1,724,238][1,724,238]1,401,899
Unreserved fund balance, January 1 1,823,861 1,724,238 1,724,238 99,623
Unreserved fund balance, December 31 1,501,522$-$-$1,501,522$
Budgeted Amounts
See independent auditor's report on the financial statements.
83
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
CENTRAL GARAGE FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Interest income
General interest 690$4,000$4,000$[3,310]$
Interfund services provided
General services 1,440,407 1,270,000 1,270,000 170,407
Miscellaneous revenues
General miscellaneous revenues 22,438 4,000 4,000 18,438
Total revenues 1,463,535 1,278,000 1,278,000 185,535
Expenditures
Other
Central garage 1,483,507 1,437,086 1,437,086 [46,421]
Capital Outlay -250 250 250
Total expenditures 1,483,507 1,437,336 1,437,336 [46,171]
Excess [deficiency] of revenues
over [under] expenditures [19,972][159,336][159,336]139,364
Other financing sources [uses]
Transfers in -30,000 30,000 [30,000]
Excess [deficiency] of revenues
and other financing sources over [under]
expenditures and other financing [uses][19,972][129,336][129,336]109,364
Unreserved fund balance, January 1 109,791 162,107 162,107 [52,316]
Unreserved fund balance, December 31 89,819$32,771$32,771$57,048$
Budgeted Amounts
See independent auditor's report on the financial statements.
84
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
INFORMATION SYSTEMS FUND
For the Year Ended December 31, 2010
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services
General charges 108,801$106,000$106,000$2,801$
Interest income
General interest 2,428 500 500 1,928
Interfund services provided
General services 1,102,218 1,102,218 1,102,218 -
Miscellaneous revenues
General miscellaneous revenues -9,431 9,431 [9,431]
Total revenues 1,213,447 1,218,149 1,218,149 [4,702]
Expenditures
Other
Information services 1,074,044 1,098,532 1,098,532 24,488
Capital Outlay 234,859 351,000 351,000 116,141
Total expenditures 1,308,903 1,449,532 1,449,532 140,629
Excess [deficiency] of revenues
over [under] expenditures [95,456][231,383][231,383]135,927
Unreserved fund balance, January 1 187,294 231,383 231,383 [44,089]
Unreserved fund balance, December 31 91,838$-$-$91,838$
Budgeted Amounts
See independent auditor's report on the financial statements.
85
86
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Risk management fund - To account for the accumulation and allocation of costs associated with risk management
activities and the purchase of various forms of insurance.
Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund - To account for the accumulation and allocation for costs associated with the City's centralized
vehicle repair shop.
Information services fund - To account for the accumulation and allocation of costs associated with electronic data
processing.
Total
Workers'Internal
Risk Compensation Health Central Information Service
ASSETS Management Reserve Insurance Garage Systems Funds
Current assets:
Cash and investments 61,518$750,615$1,501,972$130,949$124,652$2,569,706$
Inventory and prepaid supplies ---122,340 -122,340
Total current assets 61,518 750,615 1,501,972 253,289 124,652 2,692,046
Capital assets:
Capital assets ---197,458 686,847 884,305
Less: accumulated depreciation ---168,552 686,847 855,399
Total capital assets ---28,906 -28,906
Total assets 61,518$750,615$1,501,972$282,195$124,652$2,720,952$
Liabilities:
Current liabilities (payable from current assets):
Accounts payable 11,671$-$450$41,087$32,814$86,022$
Current portion of compensated absences payable ---17,387 26,564 43,951
Current portion of accrued claims payable -180,375 382,502 --562,877
Total current liabilities (payable from current assets)11,671 180,375 382,952 58,474 59,378 692,850
Noncurrent liabilities:
Compensated absences payable ---17,834 27,246 45,080
Accrued claims payable -245,207 ---245,207
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2010
See independent auditor's report on the financial statements.
87
Accrued claims payable -245,207 ---245,207
Total noncurrent liabilities -245,207 -17,834 27,246 290,287
Total liabilities 11,671$425,582$382,952$76,308$86,624$983,137$
Net Assets
Invested in capital assets, net of related debt -$-$-$28,906$-$28,906$
Unrestricted 49,847 325,033 1,119,020 176,981 38,028 1,708,909
Total net assets 49,847$325,033$1,119,020$205,887$38,028$1,737,815$
See independent auditor's report on the financial statements.
87
Total
Workers'Internal
Risk Compensation Health Central Information Service
Management Reserve Insurance Garage Systems Funds
Operating revenues
Charges for services 275,733$177,206$6,279,093$1,440,408$926,018$9,098,458$
Miscellaneous 29,988 1,824 31,012 22,436 -85,260
Total operating revenues 305,721 179,030 6,310,105 1,462,844 926,018 9,183,718
Operating expenses
General government 407,773 356,829 6,602,848 1,472,549 1,026,679 9,866,678
Depreciation ---8,303 -8,303
Total operating expenses 407,773 356,829 6,602,848 1,480,852 1,026,679 9,874,981
Operating income [loss][102,052][177,799][292,743][18,008][100,661][691,263]
Other operating revenues [expenses]
Investment income -4,197 9,432 690 2,428 16,747
Total other operating revenues [expenses]-4,197 9,432 690 2,428 16,747
Change in net assets [102,052][173,602][283,311][17,318][98,233][674,516]
Net assets, January 1 151,899 498,635 1,402,331 223,898 145,178 2,421,941
COMBINING STATEMENT OF REVENUES, EXPENSES
INTERNAL SERVICE FUND
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2010
AND CHANGES IN NET ASSETS
See independent auditor's report on the financial statements.
88
Restatement ---[693][8,917][9,610]
Net assets, January 1, restated 151,899 498,635 1,402,331 223,205 136,261 2,412,331
Net assets, December 31 49,847$325,033$1,119,020$205,887$38,028$1,737,815$
See independent auditor's report on the financial statements.
88
Total
Workers'Internal
Risk Compensation Health Central Information Service
Management Reserve Insurance Garage Services Funds
Cash flows from operating activities
Cash received from customers and users 275,733$230,378$6,240,065$1,440,409$926,018$9,112,603$
Cash paid to suppliers of goods or services [397,660][356,829][6,602,748][1,230,613][688,259][9,276,109]
Cash paid to employees ---[242,453][398,346][640,799]
Other operating receipts 29,988 1,824 31,012 22,436 -85,260
Net cash provided by [used in] operating activities [91,939][124,627][331,671][10,221][160,587][719,045]
Cash flows from investing activities
Interest received -4,197 9,432 689 2,428 16,746
Net increase [decrease] in cash and cash equivalents [91,939][120,430][322,239][9,532][158,159][702,299]
Cash and cash equivalents, January 1 153,457 871,045 1,824,211 140,481 282,811 3,272,005
Cash and cash equivalents, December 31 61,518$750,615$1,501,972$130,949$124,652$2,569,706$
For the Year Ended December 31, 2010
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
See independent auditor's report on the financial statements.
89
See independent auditor's report on the financial statements.
89
Total
Workers'Internal
Risk Compensation Health Central Information Service
Management Reserve Insurance Garage Services Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss][102,052]$[177,799]$[292,743]$[18,008]$[100,661]$[691,263]$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense ---8,303 -8,303
[Increase] decrease in inventory ---[3,728]-[3,728]
Increase [decrease] in accounts payable 10,113 -100 10,398 [62,704][42,093]
Increase [decrease] in accrued compensated absences ---[7,186]2,778 [4,408]
Increase [decrease] in claims payable -53,172 [39,028]--14,144
Net cash provided by [used in] operating activities [91,939]$[124,627]$[331,671]$[10,221]$[160,587]$[719,045]$
For the Year Ended December 31, 2010
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS (Continued)
COMBINING STATEMENT OF CASH FLOWS
See independent auditor's report on the financial statements.
90
See independent auditor's report on the financial statements.
90
91
CITY OF SALINA, KANSAS
AGENCY FUNDS
Agency funds are used to account for assets held by the government as an agent for individuals, private
organizations, other governments and/or other funds.
Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special
assessments.
Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings
the insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or
demolished.
PEGS access agency fund - To account for revenues collected on behalf of the community access television system
for public, educational and governmental programming.
Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds.
Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting
court orders for distribution.
Police investigation account agency fund - To account for monies held by the police department for use in
investigations.
Fire cam agency fund - To account for donations received and used for fire equipment.
Citizenship fund – To account for donations received and used for the citizenship fund.
Section 125 plan agency fund - To account for monies held for the Section 125 plan.
Special Fire Court Police Section
Assessment Insurance PEGS Payroll Bond and Investigation Fire 125
Escrow Proceeds Access Clearing Restitution Account Cam Citizenship Plan Totals
ASSETS:
Cash and investments 328,828$5,062$5,071$[246,521]$74,831$2,307$780$3,692$339,549$513,599$
Total assets 328,828$5,062$5,071$[246,521]$74,831$2,307$780$3,692$339,549$513,599$
LIABILITIES:
Accounts payable 328,828$5,062$5,071$[246,521]$74,831$2,307$780$3,692$339,549$513,599$
Total liabilities 328,828$5,062$5,071$[246,521]$74,831$2,307$780$3,692$339,549$513,599$
December 31, 2010
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
AGENCY FUNDS
See independent auditor's report on the financial statements.
92
Balance Balance
December 31,December 31,
2009 Additions Deductions 2010
Cash and investments
Special Assessment Escrow 319,453$9,375$-$328,828$
Fire Insurance Proceeds 4,411 54,883 54,232 5,062
PEGS Access 5,027 309,276 309,232 5,071
Payroll Clearing [243,747]-2,774 [246,521]
Court Bond and Restitution 74,133 -[698]74,831
Police Investigation Account 2,374 -67 2,307
Fire Cam Fund 777 3 -780
Citizenship Trust 3,675 17 -3,692
Section 125 Plan Fund 343,309 357,661 361,421 339,549
Total Assets 509,412$731,215$727,028$513,599$
Accounts Payable
Special Assessment Escrow 319,453$9,375$-$328,828$
Fire Insurance Proceeds 4,411 54,883 54,232 5,062
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 2010
AGENCY FUNDS
See independent auditor's report on the financial statements.
93
Fire Insurance Proceeds 4,411 54,883 54,232 5,062
PEGS Access 5,027 309,276 309,232 5,071
Payroll Clearing [243,747]-2,774 [246,521]
Court Bond and Restitution 74,133 -[698]74,831
Police Investigation Account 2,374 -67 2,307
Fire Cam Fund 777 3 -780
Citizenship Trust 3,675 17 -3,692
Section 125 Plan Fund 343,309 357,661 361,421 339,549
Total liabilities 509,412$731,215$727,028$513,599$
See independent auditor's report on the financial statements.
93
STATISTICAL SECTION
2004
Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %
Governmental Activities
Invested in capital assets, net
of related debt 82,312$86%92,948$92%110,184$92%117,810$93%115,029$90%118,965$93%101,974$85%113,001$96%
Restricted 1,584$2%1,317$1%1,642$1%1,106$1%1,609$1%1,212$1%1,174$1%988$1%
Unrestricted 11,742$12%7,057$7%7,422$6%7,678$6%11,356$9%7,745$6%16,706$14%3,808$3%
Total Governmental Net Assets 95,638$100%101,321$100%119,248$100%126,594$100%127,994$100%127,922$100%119,854$100%117,797$100%
Business Type Activities
Invested in capital assets, net
of related debt 36,599$76%38,560$77%40,968$79%43,510$81%45,435$80%45,931$79%48,234$79%48,078$75%
Restricted 0%1,406$3%1,109$2%1,123$2%1,151$2%1,211$2%1,553$3%1,553$2%
Unrestricted 11,710$24%9,837$20%9,821$19%9,300$17%10,412$18%11,197$19%11,482$19%14,306$22%
Total business type activities
net assets 48,308$100%49,803$100%51,897$100%53,933$100%56,998$100%58,339$100%61,269$100%63,937$100%
Primary Government
Invested in capital assets, net
of related debt 118,911$83%131,507$87%151,152$88%161,320$89%160,464$87%164,896$89%150,208$83%161,080$89%
Restricted 1,584$1%2,723$2%2,750$2%2,229$1%2,761$1%2,423$1%2,727$2%2,541$1%
Unrestricted 23,451$16%16,894$11%17,243$10%16,978$9%21,768$12%18,942$10%28,188$16%18,115$10%
Total primary government net
assets 143,947$100%151,124$100%171,144$100%180,527$100%184,992$100%186,261$100%181,123$100%181,736$100%
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 201094 2010
Schedule 1
City of Salina, Kansas
Net Assets by Component
Last Eight Fiscal Years
(accrual basis of accounting)
(in 000's)
2009
Fiscal Year
Note 2: All amounts are shown in thousands of dollars
2008
Note 1: The city began to report accrual information when it implemented GASB
Statement 34 in fiscal year 2003
2003 2005 2006 2007
2003 2004 2005 2006 2007 2008 2009 2010
Expenses
Governmental Activities:
General government 6,767$4,931$4,904$6,319$6,732$6,791$14,664$10,845$
Public safety 12,636$13,548$14,159$14,621$16,877$18,440$16,539$18,592$
Public works 7,896$7,958$8,420$8,609$9,258$9,706$9,781$9,782$
Public health and sanitation 906$1,016$1,102$1,214$1,281$1,310$1,390$1,365$
Culture and recreation 4,657$4,784$5,071$4,961$5,658$5,582$5,397$6,572$
Planning and development 4,507$4,130$2,714$2,697$2,814$3,481$3,375$3,716$
Interest on long term debt 1,085$786$742$972$1,295$1,454$-$2,256$
Total governmental activities expenses 38,455$37,152$37,112$39,393$43,916$46,764$51,146$53,128$
Business-type Activities:
Solid waste disposal 2,367$2,818$2,608$2,471$2,088$2,008$2,287$2,925$
Water and sewer 11,572$11,552$11,262$11,676$12,227$13,284$12,995$14,050$
Sanitation 1,682$1,920$1,889$1,945$2,038$2,184$2,224$2,261$
Golf course 786$817$893$852$884$884$897$817$
Total business-type activities expenses 16,407$17,107$16,652$16,944$17,236$18,360$18,403$20,053$
Total primary government expenses 54,862$54,260$53,764$56,337$61,153$65,124$69,549$73,181$
Program Revenues
Governmental Activities
Charges for services:
General government 3,472$3,712$3,926$4,177$4,309$4,581$4,599$5,143$
Public safety 2,672$2,770$3,368$3,603$3,539$3,588$2,913$3,969$
Public works 160$155$163$169$457$120$164$196$
Public health and sanitation -$35$31$36$33$39$42$37$
Culture and recreation 2,031$2,073$2,276$1,883$2,050$2,139$1,936$2,817$
Planning and development 93$198$95$114$101$240$267$144$
Operating grants and contibutions 2,751$3,197$2,798$3,145$3,381$3,752$3,163$3,415$
Capital grants and contributions -$-$13,875$3,091$-$-$-$-$
Total governmental program revenues 11,178$12,140$26,532$16,216$13,871$14,458$13,084$15,721$
Business-type activities:
Charges for services:
Solid waste disposal 2,361$2,489$2,344$2,674$2,789$2,749$2,903$2,853$
Water and sewer 12,129$12,362$12,704$12,949$14,054$14,073$14,980$16,520$
Sanitation 1,795$1,814$1,881$1,988$2,112$2,172$2,292$2,310$
Golf course 773$791$799$773$723$751$757$736$
Operating grants and contributions -$368$-$-$-$-$-$
Capital grants and contributions -$-$-$-$-$-$-$-$
Total business type program revenues 17,058$17,824$17,728$18,385$19,678$19,744$20,932$22,419$
Total primary government program revenues 28,237$29,964$44,260$34,601$33,549$34,202$34,016$38,140$
Net (Expense) Revenue
Governmental Activities (27,276)$(25,012)$(10,580)$(23,176)$(30,046)$(32,306)$(38,062)$(37,407)$
Business-type activities:651$717$1,076$1,441$2,442$1,384$2,529$2,366$
Total primary government net expense (26,625)$(24,296)$(9,504)$(21,736)$(27,604)$(30,922)$(35,533)$(35,041)$
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes, General Purpose 5,862$6,576$6,766$7,144$7,376$7,818$9,019$7,803$
Property Taxes, Debt Service 1,732$1,329$1,351$1,402$1,471$1,529$1,711$2,230$
Motor Vehicle Tax 1,208$1,057$1,079$1,105$1,131$120$1,135$1,145$
Sales Tax, General Purpose 9,913$10,501$10,556$11,137$11,472$11,986$11,669$11,118$
Selective Sales Tax 2,114$2,264$2,280$2,417$2,484$2,589$3,380$4,108$
Other taxes 3,345$3,426$3,557$5,076$5,445$5,747$5,791$6,298$
Special Assessments 1,448$
Investment revenues 331$390$544$1,123$1,255$805$277$81$
Miscellaneous 1,442$1,084$1,209$1,044$890$812$505$565$
Transfers, net 80$24$114$330$672$60$255$92$
Total governmental activities 27,475$26,651$27,456$30,779$32,195$31,464$33,742$33,440$
Business-type activities:
Investment revenues 101$222$328$453$641$300$242$67
Miscellaneous 165$93$150$217$201$118$352$341
Transfers, net (80)$(24)$(114)$(330)$(672)$(60)$(255)$(92)$
Total business-type activities 186$291$364$340$170$358$339$316$
Total primary government 27,661$26,942$27,820$31,119$32,366$31,822$34,081$33,756$
Change in Net Assets
Governmental activities 199$1,638$16,877$7,602$2,150$(842)$(4,320)$(3,967)$
Business-type activities 838$1,008$1,440$1,780$2,612$1,742$2,868$2,682$
Total primary government 1,037$2,647$18,316$9,383$4,762$901$(1,452)$(1,285)$
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
Schedule 2
City of Salina, Kansas
Changes in Net Assets
Last Eight Fiscal Years
Note: The city began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003
Fiscal Year
(accrual basis of accounting)
(in 000's)
95
2003 2004 2005 2006 2007 2008 2009 2010
General Fund
Reserved 309$160$421$242$396$274$508$99$
Unreserved 6,467$7,151$6,646$7,983$6,935$5,756$4,580$3,518$
Total General Fund 6,776$7,311$7,067$8,225$7,331$6,030$5,088$3,617$
All other Governmental Funds
Reserved 2,096$2,610$2,369$2,469$2,796$3,951$11,092$6,314$
Unreserved. Reported in:
Special Revenue Funds 3,244$3,917$4,140$5,408$7,250$5,479$5,316$5,108$
Capital projects funds 1,968$(7,203)$(4,327)$(5,737)$(4,703)$(5,543)$(1,731)$(6,654)$
Permanent Funds 315$327$343$371$399$419$439$416$
Debt service funds -$-$-$-$-$-$-$-$
Total all other governmental funds 7,624$(348)$2,524$2,511$5,742$4,306$15,116$5,184$
Information for years prior to 2003 is not available in comparable format.
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 3
City of Salina, Kansas
Fund Balances, Governmental Funds
Last Eight Fiscal Years
96
2003 2004 2005 2006 2007 2008 2009 2010
Revenues
Taxes (see Schedule 5)24,174$25,152$25,590$28,282$29,379$30,788$32,706$32,702$
Intergovernmental 2,731$5,659$2,785$3,127$3,363$3,741$3,153$3,404$
Special Assessments 1,448$1,340$1,143$1,207$1,444$1,178$1,269$1,385$
Licenses and permits 20$18$14$18$18$10$10$11$
Charges for services 6,146$6,364$7,225$7,099$7,131$7,415$6,767$8,934$
Investment revenue 322$362$486$1,021$983$490$210$64$
Reimbursements 52$465$650$406$153$39$140$71$
Miscellaneous 1,208$509$501$488$650$597$438$448$
Total revenues 36,100$39,870$38,392$41,648$43,120$44,258$44,693$47,019$
Expenditures
General Government 2,208$2,685$2,706$2,721$2,842$3,600$3,007$3,549$
Public Safety 12,208$12,724$13,673$14,309$16,175$17,945$17,883$18,229$
Public Works 5,106$5,157$5,508$5,712$6,171$6,593$6,643$6,634$
Public Health and Sanitation 882$981$1,067$1,178$1,245$1,276$1,353$1,332$
Culture and Recreation 4,355$4,470$4,776$4,653$5,204$5,142$4,947$5,777$
Planning and Development 4,405$4,025$2,607$2,588$2,707$3,377$3,269$3,609$
Miscellaneous 20$-$-$-$-$-$-$32$
Capital Outlay 5,165$10,824$8,580$10,783$7,615$10,581$17,707$18,603$
Debt Service
Principal 7,179$2,611$2,534$2,625$4,806$2,812$4,667$5,960$
Interest 1,063$866$755$1,009$1,266$1,567$1,596$2,258$
Deposit to Escrow -$-$-$-$-$-$-$107$
Total Expenditures 42,591$44,343$42,208$45,578$48,031$52,892$61,072$66,090$
Other financing sources (uses)
Bonds and Notes issued 8,600$6,707$4,210$4,885$6,545$7,245$23,695$7,034$
Bond and Note Premium 80$1,369$47$
Transfers in 600$1,066$1,399$2,245$2,349$2,823$3,617$5,076$
Transfers out (600)$(1,087)$(1,365)$(2,055)$(1,737)$(2,763)$(3,422)$(4,984)$
Issuance Costs (9)$(2)$-$-$-$-$-$-$
Other -$(5,389)$-$-$91$-$-$-$
Total other financing sources
(uses)8,591$1,296$4,244$5,075$7,248$7,385$25,259$7,173$
Net change in fund balance 2,100$(3,177)$428$1,145$2,337$(1,250)$8,880$(11,898)$
Debt service as a percentage
of non-capital expenditures 28%12%11%12%18%12%17%21%
Information prior to 2003 is not available in comparable format.
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 4
City of Salina, Kansas
Changes in Fund Balances, Governmental Funds
Last Eight Fiscal Years
97
2003 2004 2005 2006 2007 2008 2009 2010
Real Estate 7,417$7,677$7,904$8,373$8,662$9,084$9,971$9,756$
Delinquent 177$228$213$173$185$263$760$278$
Motor Vehicle 1,208$1,057$1,079$1,105$1,131$1,120$1,135$1,145$
General Sales 9,913$10,501$10,556$11,137$11,472$11,986$11,669$11,117$
Selective Sales 2,114$2,264$2,280$2,417$2,484$2,589$3,380$4,108$
Other Taxes 3,345$3,426$3,557$5,076$5,445$5,747$5,791$6,298$
Total Taxes 24,174$25,152$25,590$28,282$29,379$30,788$32,706$32,702$
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 5
City of Salina, Kansas
Tax Revenues by Source, Governmental Funds
Last Eight Fiscal Years
98
Assessed Value
Fiscal
(Budget)
Year Real Estate
Personal
Property State Assessed
Total, Non-
Vehicle
Assessed
Value
Direct Rate,
Excluding
Motor
Vehicles
Motor Vehicle
(Note 1)
Total,
Taxable
Assessed
Value
Estimated Total
Market Value
(Note 2)
Ratio of
Assessed
Value to Est.
Market Value
2001 241,621,655 32,439,566 14,088,875 288,150,096 24.365 43,246,020 331,396,116 2,096,802,659 15.80
2002 254,343,715 31,823,431 14,847,520 301,014,666 24.218 43,248,108 344,262,744 2,182,563,473 15.77
2003 267,175,443 35,093,154 14,866,008 317,134,605 24.092 45,965,839 363,100,444 2,296,900,695 15.81
2004 277,456,813 35,386,133 15,750,780 328,593,726 24.013 46,679,982 375,273,018 2,368,264,683 15.85
2005 282,517,284 35,410,526 17,334,372 335,262,182 24.063 48,687,121 383,949,303 2,529,377,135 15.18
2006 296,537,399 38,662,356 17,624,030 352,823,785 23.999 49,367,870 402,191,655 2,229,131,633 18.04
2007 321,695,326 39,691,690 16,530,171 377,917,187 23.789 50,551,299 428,468,486 2,416,543,103 17.73
2008 342,045,389 35,089,042 15,594,056 392,728,487 23.959 50,548,706 443,277,193 2,612,229,468 16.97
2009 356,678,712 28,373,980 14,929,456 399,982,148 25.886 51,351,656 451,333,804 2,914,775,730 15.48
2010 358,979,211 24,760,806 13,730,609 397,470,626 25.855 50,330,252 447,800,878 2,893,359,541 15.48
Note 1: The tax rate for motor vehicles is set based on the average countywide tax rate. The City of Salina then receives a share of that based
on relative tax effort.
Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value.
Souce: Saline County Clerk
Note 2: The estimated market value excludes the value of the State assessed properties. Market value information is not available for those properties.
However, state assessed property is generally assesed at 33% of market value, except for railroads, which are assessed at 25% of market value.
Schedule 6
City of Salina, Kansas
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
99
City of Salina Saline County USD 305 (2)Other (1)Total
Fiscal
(Budget)
Year
Operating
Millage
Debt
Service
Millage
Total
City
Millage
Operating
Millage
Debt
Service
Millage
Total
County
Millage
Operating
Millage
Debt
Service
Millage
Total USD
Millage Other
2000 19.382 5.494 24.876 23.187 23.187 38.698 17.623 56.321 9.444 113.828
2001 19.097 5.268 24.365 22.337 23.837 41.198 17.326 58.524 9.109 115.835
2002 18.561 5.657 24.218 24.066 24.066 51.115 17.063 68.178 9.330 125.792
2003 18.581 5.511 24.092 25.667 25.657 38.569 18.815 57.384 9.684 116.817
2004 20.017 3.996 24.013 28.081 28.081 38.288 18.344 56.632 9.848 118.574
2005 20.055 4.008 24.063 28.874 28.874 42.175 17.491 59.666 10.984 123.587
2006 20.001 3.989 23.990 28.579 28.579 40.136 15.046 55.182 10.960 118.711
2007 19.835 3.954 23.789 27.955 27.955 41.903 13.349 55.252 10.726 117.722
2008 20.047 3.912 23.959 27.435 27.955 42.761 12.229 54.990 10.775 117.679
2009 21.749 4.137 25.886 29.347 27.955 46.339 12.208 58.547 10.971 123.359
2010 20.082 5.773 25.855 31.303 27.955 45.341 13.155 58.496 12.401 124.707
Source: Saline County Clerk
(2) A small portion of Salina is covered by USD 306, USD 307, or USD 400. Total Tax Rates are different in the areas covered by these jurisdictions.100(1) The "Other" column includes the State of Kansas, the Salina Airport Authority, and the Salina Public Library. Beginning in 2005, this
also includes Kansas State Extension District #3.
Schedule 7
City of Salina, Kansas
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
Taxpayer Type of Business
Assessed
Valuation
% of Total
Valuation Rank
Assessed
Valuation
% of Total
Valuation Rank
Schwan's Sales Pizza Manufacturing 7,165,506$2.08%1 10,144,446$2.55%1
Warmack, Salina Partnership (IPFOA)Retail Shopping Mall 5,768,772 1.68%3 8,704,250 2.19%2
Salina Regional Health Center Hospital and Medical Offices 2,929,175 0.85%6 5,584,461 1.40%3
Western Resources Utility 5,894,713 1.71%2 5,191,056 1.31%4
Wal-Mart Stores, Inc.Discount Retail Stores 4,259,288 1.24%5 3,913,855 0.98%5
Gateway Properties Shopping Mall (Midstate)#N/A 3,556,009 0.89%6
Kansas Gas Service Utility 2,457,993 0.71%7 3,499,876 0.88%7
Southwestern Bell Telephone Utility 5,337,109 1.55%4 3,455,419 0.87%8
Sunflower Bank Bank #N/A 2,749,200 9
Great Plains Manufacturing Manufacturing 1,714,226 0.50%9 2,526,984 0.64%10
Sunset Plaza, Inc. (Bradley Operating)Retail Shopping Mall 1,433,432 0.42%10 #N/A
Dillon's Grocery Chain 2,000,604 0.58%8 #N/A
Combined Valuation of the Ten Largest Taxpayers 36,960,214$49,325,556$
City Valuation 344,262,744$397,470,626$
Percent of Total City Assessed Valuation (1)8.65%9.17%
Source: Saline County Clerk's Office101 2010 (2009 Assessed Value)2001 (2000 Assessed Value)
Schedule 8
City of Salina, Kansas
Principal Property Tax Payers
Current Year and Nine Years Ago
Fiscal
(Budget)
Year
Taxes Levied
for the fiscal
year Amount Percentage
Delinquent
Collections
(1)Amount
Percentage of
levy
2000 6,694,612 6,490,693 97.0%105,801 6,596,494 98.5%
2001 7,020,875 6,831,220 97.3%147,819 6,979,039 99.4%
2002 7,289,916 7,108,013 97.5%174,050 7,282,063 99.9%
2003 7,640,249 7,417,427 97.1%176,906 7,594,333 99.4%
2004 7,890,387 7,677,415 97.3%227,578 7,904,993 100.2%
2005 8,067,300 7,904,231 98.0%382,236 8,286,467 102.7%
2006 8,467,343 8,373,363 98.9%173,093 8,546,456 100.9%
2007 8,990,268 8,661,700 96.3%185,488 8,847,188 98.4%
2008 9,409,338 9,083,917 96.5%262,511 9,346,428 99.3%
2009 10,354,161 9,923,959 95.8%759,764 10,683,723 103.2%
2010 10,276,905 9,704,937 94.4%278,656 9,983,593 97.1%
Source: Saline County Treasurer's Office
(1) Delinquent collections are reported in the aggregate for all previous years. Data is not currently available for
"collected in subsequent years"
Current Year Tax
Distributions
Schedule 9
City of Salina, Kansas
Property Tax Levies and Distributions
Last Ten Fiscal Years
Total Tax Distributions
102
2002 2003 2004 2005 2006 2007 2008 2009 2010
City Direct Tax Rate (Note 3)
General 0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%
Special Purpose 0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%/0.40%0.40%
County-wide Tax Rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%
Portion of County-wide tax allocated to City (July
Percentage)64.00%63.20%62.20%61.60%61.81%61.92%62.31%62.46%61.58%103Schedule 10
City of Salina, Kansas
Direct Sales Rate by Taxing Entity
Last Nine Fiscal Years
In November 2008, the voters approved an increase in the Special Purpose Tax rate from
.25% to .40%, to be effective April 1, 2009.
In addition to the direct tax, the City recieves a portion of the Countywide sales tax, based on
a formula distribution. The formula is based on property tax effort and population, and is
adjusted in January and July of each year. As a result, totals do not match the amounts
disclosed on the Statement of Activities.
Fiscal Year
Source: Kansas Department of Revenue
.25% to .40%, to be effective April 1, 2009.
Accts Water Accts Water Accts Water Accts Water Accts Water Accts Water Accts Water Accts Water Accts Water Accts Water
Rate Class Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold Billed Sold
Residential 17,165 1,194,411 17,234 1,300,332 17,315 1,205,142 17,432 1,127,078 17,576 1,187,130 17,637 1,164,293 17,750 1,080,015 17,813 994,875 17,792 1,043,774 17,838 1,127,864
Commercial 1,530 358,628 1,516 367,440 1,503 352,025 1,542 346,251 1,580 358,659 1,586 357,488 1,592 331,440 1,591 333,720 1,589 339,507 1,568 350,633
Industrial 44 255,019 44 245,126 43 205,574 43 203,977 43 181,325 43 180,900 46 237,698 48 203,491 46 152,910 44 183,166
Government 111 65,912 115 78,457 118 66,134 126 66,623 146 102,994 150 74,768 151 58,568 152 68,366 104 41,793 85 42,714
Apartment 200 43,739 202 52,778 200 56,587 198 56,251 195 56,359 187 56,340 184 55,500 182 64,703 182 71,503 172 71,121
Schools 89 48,866 84 50,373 80 43,645 82 43,571 81 41,187 81 44,925 80 36,953 81 38,835 84 39,815 85 46,386
Industrial Special 1 28,208 1 32,061 1 38,002 1 39,187 1 39,551 1 37,508 1 35,813 1 42,574 1 32,934 1 44,457
Consumed in Production 173 47,702 27 45,395 25 36,185 22 32,324 21 31,570 19 28,583 18 26,070 18 28,699 18 26,223 17 32,604
Rural Water 1 27,292 1 26,775 1 27,918 1 27,277 1 28,889 1 28,395 1 23,963 1 24,798 1 22,824 1 23,854
Hospitals 14 28,284 14 28,846 14 24,721 14 22,884 15 17,126 15 13,088 15 13,755 15 18,723 13 20,488 12 18,503
Religious/Non Profit 33 8,211 35 9,564 37 8,074 40 9,362 40 9,521 39 8,888 41 7,463 40 6,913 39 7,312 39 5,569
Other Taxable Deductions 7 14,007 7 13,863 6 11,105 6 10,690 5 8,995 5 6,630 5 9,975 4 8,023 ----
Engineering Studies 8 7,636 8 10,078 8 9,307 8 9,339 8 6,283 8 6,135 8 5,805 8 5,327 8 6,176 8 5,266
Providing Taxable Service 2 4,997 2 5,329 2 5,232 2 5,562 2 5,677 2 5,850 2 5,010 2 4,663 2 4,869 2 5,494
Sale of Component Parts 7 6,597 7 5,570 8 5,428 8 5,265 8 5,473 8 5,280 8 5,040 8 5,748 8 5,200 8 5,851
Fire Hydrant 28 1,772 4 3,011 3 5,015 3 2,887 4 5,232 3 1,598 2 495 3 1,147 2 1,032 3 2,424
Industrial Consumed in Produ 3 2,504 3 2,370 3 1,624 3 2,206 3 2,350 3 3,510 3 3,593 3 3,230 3 2,314 3 4,083
Sales of Farm Equipment 1 31 1 429 1 203 1 131 1 213 1 308 1 180 1 256 1 205 1 213
19,418 2,143,817 19,304 2,277,796 19,368 2,101,921 19,531 2,010,864 19,730 2,088,534 19,789 2,024,483 19,908 1,937,333 19,971 1,854,091 19,893 1,818,879 19,887 1,970,202
Water Rate Schedule:
Monthly Meter Charge (5/8")2.75$2.89$2.89$3.05$3.21$3.38$$3.57 3.75$4.44$4.51$
Commodity Charge (per hundred cubic ft):
0 - 2000 cf.2.03$2.09$2.09$2.13$2.16$2.21$$2.42 2.54$2.34$2.55$
2001 - 10,000 cf 1.82$1.87$1.87$1.91$1.94$1.99$$2.20 2.31$
Over 10,000 cf 1.63$1.68$1.68$1.71$1.73$1.77$$1.97 2.07$
Excess Use Charge 4.68$5.10$
Wastewater Rate Schedule:
Monthly Base Charge 2.75$2.75$2.89$3.03$3.18$$3.34 3.51$6.31$6.42$
Unit cost (per hundred cubic ft):1.99$1.99$2.11$2.23$2.36$$2.50 2.63$2.88$3.08$
Water sold is expressed in thousands of gallons.
Information before 2001 is not available in a consistant format.
Number of Accounts billed is the annual number of billings for each class divided by 12.
Monthly meter charge increases with the size of the meter.
Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption.
Wastewater fee structure in 2001 was not on a comparable basis
2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate
Source: City of Salina Water Customer Accounting Office.
2010
104Schedule 11
City of Salina, Kansas
Water Sales by Class of Customer
Last Ten Fiscal Years
200920072006200520082001200220032004
Fiscal Year
General
Obligation
Bonds
Capital
Lease
Temporary
Notes
General
Obligation
Bonds
Water Revenue
Bonds
Loans
Payable
Temporary
Notes
Total Primary
Government
Percentage
of Personal
Income Per Capita
2002 17,728,189$-$4,865,000$7,187,753$6,790,000$7,574,256$-$44,145,198$3.4%959.20$
2003 20,744,309 60,000 4,250,000 5,228,397 6,215,000 8,082,199 2,533,972 47,113,877 3.6%1,027.23
2004 19,257,270 41,150 6,875,000 7,400,295 5,615,000 7,777,264 -46,965,979 3.5%1,021.80
2005 21,202,921 20,944 2,700,000 6,258,456 4,990,000 7,460,602 -42,632,923 3.1%927.69
2006 21,497,408 -9,200,000 5,175,780 4,350,000 7,130,852 -47,354,040 3.0%1,008.82
2007 25,436,632 -7,625,000 3,888,368 3,710,000 6,786,743 -47,446,743 3.0%1,021.28
2008 29,869,930 -5,005,000 2,780,069 3,030,000 6,428,759 -47,113,758 2.7%1,013.57
2009 52,067,590 --2,320,000 2,320,000 5,862,516 -62,570,106 3.5%1,354.92
2010 53,120,952 -2,500,000 8,614,576 1,580,000 --65,815,528 3.8%1,379.58
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
105Governmental Activities Business-Type Activities
Schedule 12
City of Salina, Kansas
Ratio of Outstanding Debt by Type
Last Nine Fiscal Years
Fiscal Year
General
Obligation
Bonds Capital Lease
Temporary
Notes Total
Less Debt
Service Fund
Net General
Bonded Debt
Percentage of
Actual Taxable
Value of Per Capita
2002 24,915,942$-$4,865,000$29,780,942$1,000,030$28,780,912$8.4%625.36$
2003 25,972,706 60,000 6,783,972 32,816,678 1,584,330 31,232,348 8.6%680.96
2004 26,657,565 41,150 6,875,000 33,573,715 1,317,062 32,256,653 8.6%701.78
2005 27,461,377 20,944 2,700,000 30,182,321 1,407,529 28,774,792 7.5%626.14
2006 26,673,188 -9,200,000 35,873,188 1,494,320 34,378,868 8.5%732.40
2007 29,325,000 -7,625,000 36,950,000 1,210,457 35,739,543 8.3%769.29
2008 32,649,999 -5,005,000 37,654,999 792,744 36,862,255 8.3%793.03
2009 54,387,590 --54,387,590 735,291 53,652,299 11.9%1,161.81
2010 61,735,528 -2,500,000 64,235,528 571,873 63,663,655 14.2%1,334.47
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2009
General Bonded Debt Outstanding
Schedule 13
City of Salina, Kansas
Ratio of Net General Bonded Debt Outstanding
Last Nine Fiscal Years
106
City of Salina, Kansas
Direct and Overlapping Governmental Activities Debt
Jurisdiction
Net General
Obligation
Bonded Debt
Outstanding
Percentage
Applicable to
City of Salina
Amount
Applicable to
the City of
Salina
Direct:
City of Salina 35,739,543$100%35,739,543$
Overlapping:
Salina Airport Authority 27,345,000 100%27,345,000
Saline County 145,000 76%110,084
USD 305 47,870,000 93%44,476,017
Total Overlapping Debt 75,360,000 71,931,101
Total Direct and Overlapping Debt 111,099,543 107,670,644
Per Capita Direct and Overlapping debt 2,256.92$
Source: Saline County Clerk
Schedule 14
Percentage of debt applicable to the City of Salina is based on the proportion that the assessed valuation of
the City of Salina bears to the assessed valuation of the overlapping entity.
As of December 31, 2010
107
Assessed Valuation:447,800,878$
Debt Limit (30% of Assessed Value)134,340,263
Debt Applicable to limit:
Total Bonded Debt 65,815,528
Less GO Debt Attributable to Exempt Purposes 5,252,470
Less Revenue Bonds 1,580,000
Less Loans -
Less Fund Balance designated for Debt Service 571,873
Total Debt Applicable to Limitation 58,411,185
Legal debt margin 75,929,078
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Debt Limit 99,418,835$103,278,823$108,930,133$112,581,905$115,184,791$120,657,497$128,539,768$133,224,043$135,400,141$134,340,263$
Total net debt applicable to limit 24,132,488 28,780,912 31,172,348 32,485,503 28,774,792 28,774,792 35,739,543 36,862,255 53,652,299 58,411,185
Legal debt margin 75,286,347 74,497,911 77,757,785 80,096,402 86,409,999 91,882,705 92,800,225 96,361,788 81,747,842 75,929,078
Total net debt applicable to the limit
as a percentage of debt limit 24%28%29%29%25%24%28%28%40%43%108Legal Debt Margin Calculation for 2010
Schedule 15
City of Salina, Kansas
Legal Debt Margin
Last Ten Fiscal Years
Fiscal Year
Utility Service
Charges
Less:
Operating
Expenses
Net Available
Revenue Principal Interest Coverage
2003 12,129,440 10,682,725 1,446,715 791,394 477,400 114%
2004 12,361,877 10,654,249 1,707,628 904,935 542,722 118%
2005 12,703,953 10,468,771 2,235,182 941,662 542,722 151%
2006 12,949,169 10,894,968 2,054,201 969,748 461,470 144%
2007 14,054,466 11,545,842 2,508,624 983,479 589,288 160%
2008 14,072,513 12,754,057 1,318,456 1,038,000 515,459 85%
2009 14,980,874 12,524,390 2,456,484 1,276,243 455,294 142%
2010 16,520,055 13,571,098 2,948,957 740,000 91,450 355%
Source: City of Salina Comprehensive Annual Financial Reports, 2003 - 2010
Water/Sewer Revenue Bonds (Including Kansas Water Supply Loan)
Schedule 16
City of Salina, Kansas
Pledged Revenue Coverage
Last Eight Fiscal Years
109
Fiscal Year Population
Per Capita
Personal Income
(Saline County)
Personal Income,
Salina
(interpolated)
Unemployment
Rate
Labor Force,
Saline County
2001 45,918 29,800 1,368,356,400$3.8%29,855
2002 46,023 28,500 1,311,655,500$4.1%29,989
2003 45,865 28,200 1,293,393,000$4.6%30,086
2004 45,964 29,600 1,360,534,400$4.8%30,600
2005 45,956 30,000 1,378,680,000$4.4%30,358
2006 46,940 33,900 1,591,266,000$3.7%30,539
2007 46,458 34,500 1,602,801,000$3.3%30,843
2008 46,483 37,392 1,738,097,000$3.9%29,222
2009 46,180 38,699 1,787,119,820$5.7%26,806
2010 47,707 38,752 1,738,097,000$6.4%26,155
Sources:
Population: Kansas Division of the Budget.
Personal income for Salina is derived from the population and per capita personal income for Saline County
Per Capita Personal income as reported by the Bureau of Economic analysis
Saline County Per capita personal income: Kansas Division of the budget. Personal income statistics are not available
for the City of Salina.
Schedule 17
City of Salina, Kansas
Demographic and Economic Statistics
Last Ten Fiscal Years
110
Employer Type of Business Employees Rank
Percentage
of Labor
Force Employees Rank
Percentage
of Labor
Force
Tony's Pizza Service (Schwans)Frozen Pizza Manufacturing 2,300 1 7.9%1,850 1 6.3%
Salina Regional Health Center Health Care 1,082 2 3.7%1,082 2 3.7%
USD # 305 Public School System 935 3 3.2%935 3 3.2%
Exide Battery's Automotive Battery Manufacturer 825 4 2.8%800 4 2.7%
Great Plains Manufacturing Agrcultural and Landscaping Equipment 650 5 2.2%650 5 2.2%
Phiilips Lighting Co.Fluorescent Lamps 605 7 2.1%600 6 2.1%
City of Salina City Government 493 8 1.7%493 7 1.7%
Saline County County Government 277 8 0.9%
El Dorado National Busses/Recreational Vehicles 265 9 0.9%255 9 0.9%
Raytheon Aircraft Aircraft Manufacturing 650 5 2.2%240 10 0.8%
OCCK Assembly 263 10 0.9%
Total 7,805 26.7%7,182 24.6%
Source: Salina Chamber of Commerce
2001 2010
Schedule 18
City of Salina, Kansas
Principal Employers
Current Year and Nine Years Ago
111
2002 2003 2004 2005 2006 2007 2008 2009 2010
Governmental Activities:
General government 19 19 19 18 18 18 18 18 15
Public safety 208 208 210 210 211 211 217 217 217
Public works 76 78 79 80 79 79 82 81 76
Public health and sanitation 3 3 2 2 2 2 2 2 2
Culture and recreation 45 48 48 48 48 48 42 40 38
Planning and development 23 23 24 26 25 25 25 24 18
Other (Internal Services)14 14 12 13 13 13 13 13 13
Total governmental activities 388 393 394 397 396 396 399 395 379
Business-type Activities:
Solid waste disposal 12 12 12 12 11 11 11 10 10
Water and sewer 73 73 73 73 73 73 77 77 74
Sanitation 19 20 20 21 21 21 22 22 22
Golf course 6 6 6 6 6 6 6 6 6
Total business-type activities 110 111 111 112 111 111 116 115 112
Total primary government 498 504 505 509 507 507 515 510 491
Source: Salina Human Resources Department
(excludes temporary/seasonal employees)
Schedule 19
City of Salina, Kansas
City Government Full Time Employees by Function/Program
Last Ten Fiscal Years
112
GOVERNMENTAL AUDIT SECTION
Federal
Federal Grantor/Pass-Through CFDA
Grantor/Program Title Number Revenues Expenditures
Department of Housing and Urban Development
Fair Housing Assistance Program 14.401 72,125$63,548$
Passed through the State of Kansas
Community Development Block Grant ARRA Entitlement Grants 14.253 268,727 293,113
Passed through Kansas Housing Resources Corporation
Homelessness Prevention and Rapid Re-Housing Program 14.257 72,448 72,448
Total Department of Housing and Urban Development 413,300 429,109
Department of Justice
Passed Through the Kansas Department of Transportation:
Enforcing Underage Drinking Laws Program 16.727 1,676 1,676
Total Department of Justice 1,676 1,676
Department of Transportation
Passed Through the Kansas Department of Transportation:
Highway Planning and Construction 20.205 253,423 84,552
State and Community Highway Safety 20.600 6,054 6,054
Alcohol Traffic Safety and Drunk Driving Prevention Incentive Grants 20.601 4,704 4,704
Total Department of Transportation 264,181 95,310
Total Expenditures of Federal Awards 679,157$526,095$
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2010
See independent auditor's report on the financial statements and notes to the schedule of expenditures of federal
awards.
113
114
CITY OF SALINA, KANSAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2010
1. General
The accompanying Schedule of Expenditures of Federal Awards presents the expenditures of all federal
financial assistance programs of the City of Salina, Kansas. All expenditures of federal financial assistance
received directly from federal agencies as well as federal financial assistance passed through other
governmental agencies are included on the schedule.
2. Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented in accordance with accounting
principles generally accepted in the United States of America.
115
CITY OF SALINA, KANSAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2010
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued:
Unqualified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified that are not considered to be
material weaknesses?
Yes
X
None reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified that are not considered to be
material weaknesses?
Yes
X
None reported
Type of auditor’s report issued on compliance for major programs:
Unqualified
Any audit findings disclosed that are required to be reported in
accordance with section 510(a) of Circular A-133?
Yes
X
No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
14.253 CDBG-R
Dollar threshold used to distinguish between type A and type B
programs:
$300,000
Auditee qualified as low-risk auditee? Yes X No
116
CITY OF SALINA, KANSAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)
For the Year Ended December 31, 2010
Section II - Financial Statement Findings
None Noted
Section III - Federal Award Findings and Questioned Costs
None Noted
117
LOWENTHAL, WEBB & ODERMANN, P.A.David A. Lowenthal, CPA
Patricia L. Webb, CPA
Audrey M. Odermann, CPA ———
Abram M. Chrislip, CPA
Caroline H. Eddinger, CPA
Grant A. Huddin, CPA
Brian W. Nyp, CPA ———
Members of American Institute
and Kansas Society of
Certified Public Accountants
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
Website: www.lswwcpa.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH “GOVERNMENT AUDITING STANDARDS”
Mayor and City Commissioners
City of Salina, Kansas
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, the budgetary comparison information, and the aggregate
remaining fund information of the City of Salina, KS (the City) as of and for the year ended December 31, 2010,
which collectively comprise the City’s basic financial statements and have issued our report thereon dated
September 28, 2011. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America, and the standards applicable to financial audits contained in “Government Auditing
Standards,” issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting as a basis for
designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over financial reporting.
A deficiency in internal control 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 and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting
that might be deficiencies, 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.
118
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under “Government Auditing Standards.”
However, we noted certain other matters that we have reported to management in a separate letter dated
September 28, 2011.
This report is intended solely for the information and use of the city council, management and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than those
specified parties.
September 28, 2011
119
LOWENTHAL, WEBB & ODERMANN, P.A.David A. Lowenthal, CPA
Patricia L. Webb, CPA
Audrey M. Odermann, CPA ———
Abram M. Chrislip, CPA
Caroline H. Eddinger, CPA
Grant A. Huddin, CPA
Brian W. Nyp, CPA ———
Members of American Institute
and Kansas Society of
Certified Public Accountants
CERTIFIED PUBLIC ACCOUNTANTS
900 Massachusetts, Suite 301
Lawrence, Kansas 66044-2868
Phone: (785) 749-5050
Fax: (785) 749-5061
Website: www.lswwcpa.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Mayor and City Commissioners
City of Salina, Kansas
Compliance
We have audited the compliance of City of Salina, KS (the City) with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) ”Circular A-133 Compliance Supplement” that are
applicable to each of its major federal programs for the year ended December 31, 2010. The City’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of
its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion
on the City’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in “Government Auditing Standards,”
issued by the Comptroller General of the United States; and OMB Circular A-133, “Audits of States, Local
Governments, and Non-Profit Organizations.” Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on a major federal program occurred. An
audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City’s
compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that could have a
direct and material effect on each of its major federal programs for the year ended December 31, 2010.
Internal Control Over Compliance
The management of the City 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 the City’s internal control over compliance with requirements that could
have a direct and material effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal control over compliance in
accordance with OMB Circular A-133, 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 the City’s
internal control over compliance.
120
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A
material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in the internal control over compliance that might be
deficiencies, 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 city council, management and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than those
specified parties.
September 28, 2011