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Audit Report - 2015Annual Report For the fiscal year ended December 31, 2015 SALINA AIRPORT AUTHORITY Salina, KS Financial Information Enclosed: Operating data for the Salina Airport Authority (the “SAA”) for the fiscal year ended December 31, 2015can be found in the attached Exhibit A.In addition, the SAA provides Financial Information concerning the SAA in the attached Exhibit B. The SAA’s unaudited financial statements for the fiscal year ended December 31, 2015are located in the attached Exhibit C.The SAA will submit its audited financial statements to the Municipal Securities Rulemaking Board to complete its annual reporting obligations pursuant to the Undertaking when such audited financial statements are available. The SAA has provided the operating data in this Annual Report based on the information referred to in the SAA’s Omnibus Continuing Disclosure Undertaking, dated August 19, 2015, (the “Omnibus Continuing Disclosure Undertaking”) together with certain information required by prior undertakings. The SAA has reviewed its continuing obligations and believes any difference between the operating data provided in this Annual Report and the operating data referred to in previous continuing disclosure obligations is not material. The information contained in this Annual Report is current as of December 31, 2015, or as otherwise indicated. Certain information in this Annual Report has been provided by third-party sources. Nothingcontained in any continuing disclosure undertaking or this Annual Report is, or should be construed as, a representation by any person, including the SAA, that this Annual Report includes all of the information that may be material to a decision to investin, hold or dispose of any of the securities listed on Schedule 1, or any other securities of the SAA. Nothing contained in this Annual Report obligates the SAA to update any of the financial information or operating data contained in this Annual Report. For additional information contact: Michelle R. Swanson, C.M. Director of Administration and Finance Salina Airport Authority 3237 Arnold Ave. Salina, KS 67401 shellis@salair.org 785-827-3914 SALINA AIRPORT AUTHORITY, SALINA, KS 1 Dated: June 29, 2016 Schedule 1 Schedule of Bond Issues Series 2005-A GO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$3,635,000,Taxable General Obligation Bonds Date of Issuance:August 1, 2005 Series 2007-A GO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$1,005,000,Taxable General Obligation Bonds Date of Issuance:December 15, 2007 Series 2009-A GO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$2,025,000, General Obligation Bonds Date of Issuance:June 1, 2009 Series 2009-BGO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$6,080,000,Taxable General Obligation Bonds Date of Issuance:June 1, 2009 Series 2011-AGO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$11,820,000Taxable General Obligation Bonds Date of Issuance:August 17, 2011 Series 2011-BGO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$2,505,000Taxable General Obligation Bonds Date of Issuance:August 17, 2011 Series 2015-AGO Bonds Issuer:Salina Airport Authority, Salina, Kansas Issue Name:$3,075,000Taxable General Obligation Bonds Date of Issuance:August 28, 2015 2 Exhibit A Operating Data for the Salina Airport Authority for the year ended December 31, 2015 I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A.Reporting Entity The Salina Airport Authority (Authority) was established by the City of Salina, pursuant to Chapter 27, Article 3, of the Kansas Statutes Annotated for the purpose of acquiring surplus federal government property, specifically the former Schilling Air Force Base, located near the City of Salina. The Authority operates, maintains, and develops the Salina Regional Airport and the Salina Airport Industrial Center. The Authority is controlled by a five-member Board of Directors appointed by the Salina City Commission and, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 61, the Authority is considered to be a component unit of the City of Salina. The Authority is discreetly presented in the City’s comprehensive annual financial reports. B.Measurement Focus, Basis of Accounting and Basis of Presentation The Authority’sfinancial statements have been prepared in conformity with generally accepted accounting principles (GAAP) for state and local governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles for state and local governments in the United States of America. The Authority consists of a single enterprise fund. Enterprise funds are classified as proprietary funds by the GASB and are accounted for using a total economic resource measurement focus. The enterprise fund is used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the Authority is that the costs of providing services on a continuing basis be recovered through user fees and rents. The financial statements are prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized as earned and expenses as incurred. Revenues from airlines, fuel flowage fees, building and land rents, and rental car commissions are reported as operating revenues. Transactions, which are capital, financing or investing related, and the sale of assets, related to economic development, are reported as non-operating revenues. All expenses related to operating the Airport and Industrial Center are reported as operating expenses. Interest expense and financing costs are reported as non-operating expenses. 3 Salina Airport Authority AIR TRAFFIC, FUEL FLOWAGE AND ENPLANEMENT TRENDS Ten Years Ended December 31, 2015 Passenger Enplanements FiscalAir TrafficFuel FlowageScheduledNon-ScheduledTotal YearOperationsGallonsAir CarrierAir CarrierEnplanements 200681,4643,817,1121,8541,0232,877 200776,4793,778,7942,5041,6234,127 200871,5753,114,5153,6731,4975,170 200965,0622,481,5852,4474212,868 201060,4512,763,9911,6981,4463,144 201169,2072,386,6702,7052122,917 201297,3382,594,0492,5469803,526 201390,1311,757,9802,3614682,829 201491,1011,971,0611,9404582,398 1 201596,3502,487,6031,1249,26510,389 Note: One air traffic operation equals one aircraft takeoff and landing Sources: Salina Airport Authority Records Federal Aviation Administration Office of Airport Planning and Program 1 Non-scheduled air carrier data is estimated as data not available from FAA until July of the following calendar year Exhibit B 4 Operating Data for the Salina Airport Authority for the year ended December 31, 2015 Financial Information Estimated Actual Valuation Based on assessment percentages provided by Kansas Statutes and estimated actual valuation figures provided by the Saline County Appraiser’sOffice, the following table provides November 1 estimated actual valuations for the City in the years indicated. Estimated YearActual Value 2015$ 2,957,531,741 20142,917,267,724 20132,889,385,914 20122,884,188,981 20112,891,461,447 20102,888,659,004 Assessed Valuation and Current Indebtedness of the SAA Financing November General Special Leases / Percentage of Fiscal Assessed Motor Vehicle Capacity of Obligation Revenue Assessment Other Loans Temporary Remaining Personal Total Debt YearValuationValuationValuation TotalValuation TotalDebtBond DebtDebtPayableNotesTotal DebtCapacityIncomePer Capita 2006377,917,18750,551,299428,468,48612,854,0557,370,000-302,137481,2992,925,00011,078,4362,559,0550.68%241 2007392,728,48750,548,706443,277,19344,327,7197,490,000-255,270391,93213,900,00022,037,20222,937,7191.28%469 2008399,982,14851,351,656451,333,80445,133,3806,525,000-232,054358,83110,975,00018,090,88527,633,3800.97%389 2009397,470,62650,330,252447,800,87844,780,08813,782,154-207,948323,5007,050,00021,363,60223,947,9341.20%460 2010400,248,28348,184,331448,432,61444,843,26112,792,154-145,299285,79611,652,46724,875,71620,398,6401.42%539 2011402,354,57647,406,062449,760,63844,976,06425,808,985-125,014245,558-26,179,55719,167,0791.35%549 2012403,850,28247,553,744451,404,02645,140,40324,756,769-103,947202,617-25,063,33320,383,6341.25%522 2013405,107,47648,882,411453,989,88745,398,98923,880,661-66,746156,791-24,104,19821,518,3281.17%504 2014407,454,37848,865,900456,320,27845,632,02822,974,555-48,949107,966-23,131,47022,657,4731.10%483 2015416,179,07050,350,566466,529,63646,652,96423,010,000-30,46555,696-23,096,16123,642,9641.08%478 5 Largest Taxpayers According to the Saline County Clerk’s Office, the following table lists the largest taxpayers in the City, their November 2015 assessed valuations, and the percentage each taxpayer comprised of the total assessed valuation of the City. CompanyType of BusinessAssessed Valuation% of Total Valuation Westar EnergyUtility$ 11,025,0042.37% Schwan's Global Supply Chain, Inc.Manufacturing 7,175,0131.54% Garrison Salina Owner, LLCRegional Shopping Center 6,330,1441.36% RAF Salina LLCRetail-Shopping Center 4,478,0800.96% Salina Regional Health PropertiesMedical 4,318,0780.93% Kansas Gas ServiceUtility 3,669,8780.79% Menard, Inc.Home Improvement Store 2,896,5990.62% Collier DennisMulti-family 2,428,1170.52% Union PacificRailroad 2,399,8130.52% Great Plains ManufacturingManufacturing 2,378,1760.51% Total 47,098,90210.12% Property Tax Collections Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 10 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid oruntil the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are assessed, due and may be paid in the same manner as real estate taxes. Motor vehicle property taxes are based on valuations provided by the Kansas Department of Revenue and the county average tax rate for the county in which the vehicle is registered. Motor vehicle taxes are payable to the county by the State in a manner such as to equal registration over a twelve-month period. Motor vehicle taxes are distributed by the county to the state, city and other taxing jurisdictions based on their proportionate tax levies. Delinquent personal and motor vehicle taxes are penalized at the same rate as delinquent real property taxes. The following is a summary of tax collections for the Authority in the years shown. 6 CURRENTCURRENT AND DELINQUENT Levy YearTax RateTaxes Levied Tax CollectionsTax Collections 20154.396 1,829,523.19In progress 20144.486 1,827,840.34 1,761,86096.39% 1,802,14198.59% 20134.504 1,824,604.07 1,767,22296.86% 1,796,92898.48% 20124.007 1,618,228.08 1,565,13996.72% 1,600,80898.92% 20114.007 1,612,234.79 1,560,40596.79% 1,598,27699.13% 20104.055 1,623,006.79 1,574,96097.04% 1,616,08099.57% Tax Levies Salina Airport Authority LOCAL GOVERNMENT MILL LEVY RATES, DIRECT AND OVERLAPPING Ten Years Ended December 31, 2015 Other UnifiedSalinaStateSpecial FiscalSalineCity ofSchoolAirportofTaxing YearCountySalinaDist. #305AuthorityKansasDistrictsTotal 200627.95523.78955.2522.8771.56.350117.722 200727.47523.95954.992.8771.56.398117.199 200829.34725.88658.5472.8771.56.594124.751 200931.34325.88658.5424.3151.56.593128.179 201031.43226.02259.9134.0551.56.576129.498 201132.57626.27258.824.0071.56.471129.646 201234.82326.1958.6494.0071.56.628131.797 201337.89526.92758.1164.5041.56.937135.879 201438.04727.08055.6054.4861.57.319134.037 201538.27527.31156.124.3961.57.397134.999 Note: Funds generated from the Salina Airport Authority's mill levy become available during calendar year following the year levied and are budgeted accordingly. Source: Saline County Clerk 7 Exhibit C Salina Airport Authority for the year ended December 31, 2015 Financial Information 8