Audit Report - 1965
SALINA AIRPORT AUTHORITY
Salina, Kansas
AUDIT REPORT
Year 1965
A. H. LECKBAND & CO.
Certified P~~1ic Accountant
Salina, K2.ns2.s
A. H. LECKBAND & Co.
CERTIFIED PUBLIC ACCOUNTANT
ACCOUNTING BUILDING
A. H. LECKBAND. C.P.A. .
719 EAST CRAWFORD
SALINA. KANSAS
MEM"ER AMERICAN IN5TITlIT"
OF CERTIFIED PUBLIC ACCOUNTANTS
TAYLOR 7-7244
July 13, 1966
To the Directors
Salina Airport Authority
Salina, Kansas
Gentlemen:
In accordance with your request, we have examined the financial activity
of the Salina Airport Authority for the period beginning April 26, 1965,
and ending December 31, 1965.
We have examined the official Minutes of the Authority and other docu~ents
and find that during this period the Salina Airport Authority receiveè no
income, acquired no assets or property, created no indebtedness and incurred
no expenses.
Senate Bill #235, as adopted by the 1965 Session of the Kansas Legislature,
authorized certain cities to establish and create an authority for the
purpose of acquiring property from the United States or any of its agencies,
the State of Kansas, any political subdivision thereof, or a!lY municip2.lity
therein, or any other source authorized by the act, and to own, maintain,
operate, improve, develop and dispose of such property; and to levy taxes
and to issue general obligation bonds, revenue bonds, industrial revenue
bonds and warrants to provide revenues required for such purposes.
Under such authority the Salina City Commission on April 26, 1965, by
Ordinance No. 6854 authorized the creation of the Salina Airport Authority
for the above purposes. The Salina Airport Authority is governed by a
board of five directors appointed by the City Commission of che City of
Salina, Kansas. The following directors served during the period of our
examination:
M. J. Kennedy, Chairman
C. J. Wertz, Vice Chairman
Edward H. Bell, Director
W. W. Yos:, Secretary
Allen R. Dodge, Director
In view of the fact that the Authority was a new municipal entity which
was formed after January 1, 1965, a state law prohibited the Authority
from levying funds until August, 1966. Because of this limitation of funds
and particularly in view of the fact that the Salina Airport Authority
is an arm of the City of Salina, Kansas, the expenses necessary to carry
on the activity of the Authority during the period prior to its ability
to obtain funds was borne by the City of Salina, Kansas, through its
Airport Revolving Fund. This accounts for the fact that there has been
no financial activity as such by the Salina Airport Authority during the
period April 26, 1965 to December 31, 1965.
(2)
The Salina Airport Authority, during the period under review, devoted the
greater part of its attention to a??lying for land, buildings and facilities
at the old Schilling Air Force Base in Saline County, Kansas, which had been
deactivated by the Department of Defense. The runways, ramps and taxiways
were a?plied for with the purpose in mind of moving the present Salina
l-lunicipal Airport to these larger facilities, and certain other buildings
and land areas were applied for to provide adequate facilities to possible
new industries to encourage them to expand in Salina, Kansas, and also to
develop an industrial area. Actual transfer of title from goverm!1ent
agencies had not been effected at December 31, 1965, although effective
title was obtained to many of the properties shortly after Janua~y 1, 1966.
In accordance with advice of its legal counsel, the Sali!1a Airport Authority
made application to tbe Board of Tax Appeals at Topeka, Kansas, for the
issuance of no-fund warrants to the extent of $90,000.00, tc be redeemable
throug~ a tax levy in August, 1966. The purpose for this actio!1 was to
provide necessary funds to expend for the transfer of the present Salina
Municipal Airport to the new location. On November 10, 1965, the Board
of Tax Appeals authorized the Salina Airport Authority to issue !1o-furd
warrants for such su~. None of the no-fund warrants had been sold at
December 31, 1965, as the expenditure of the funds will not take rylace
until the spring or su~er of 1966.
During the year 1966 it is anticipated that the Salina Airport Authority
will acquire title to the properties from the various goverr'rnent agencies,
and will move the Salina Municipal Airport to the new location. It is
anticiryated that a large part of the buildings and other facilities will
be rented to industries durirg 1966 a!1d the new municipal airport will be
in full operation. A tax levy will be made in August, 1~66, fo~ such funds
as may be necessary for- the !)~oper operation of the Authority, for the
repayment of a!1Y no-fund warrants that are actually sold, and for the purchase
of cer-tain land and buildings from the appropriate gove~r~ent agencies. The
report of the independent auditor for the calendar year 1966 will include the
financial aspects of all these activities.
. .þ ./
d ;{I. o?:!<--~é~é Et C-O.
CERTIFIED PUBL:C ACCOU~TA~T
d- /./ 4f~í~~,-¿
A. H. Leckband, Licensed
Municipal Public Accountant,
in charge of and actively engaged
on this audit.