Audit - 2016COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2016
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, 2016
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 1 -3
Management's Discussion and Analysis 4 -15
Basic Financial Statements:
Government-wi de Financial Statements
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements
Balance Sheet -Governmental Funds 18
Reconciliation of the Total Governmental Fund Balance to
Net Position of Governmental Activities 19
Statement of Revenues, Expenditures, and Changes in
Fund Balance -Governmental Funds 20
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance with the Government-Wide Statement of Activities 21
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual (Non-GAAP Basis)
General Fund 22
Tourism and Convention Fund 23
Special Gas Fund 24
Sales Tax Capital Fund 25
Statement of Net Position -Proprietary Funds 26
Statement of Revenues, Expenses, and Changes in
Net Position -Proprietary Funds 27
Statement of Cash Flows -Proprietary Funds 28 -29
Statement of Assets and Liabilities -Agency Funds 30
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2016
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Notes to the Basic Financial Statements 31 -66
Required Supplementary Information
Schedule of Funding Progress and Schedule of Employer Contributions 67
KPERS Pension Plan
Schedule of City’s Proportionate Share of the Net Pension Liability 68
Schedule of City Contributions 68
Combining Statements and Individual Fund Schedules
Combining Statements -Nonmajor Funds
Fund Descriptions 69 -70
Combining Balance Sheet -Nonmajor Governmental Funds 71
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Governmental Funds 72
Combining Balance Sheet -Nonmaj or Special Revenue Funds 73 -74
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Special Revenue Funds 75 -76
Combining Balance Sheet -Nonmajor Permanent Funds 77
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Permanent Funds 78
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual (Non-GAAP Basis):
Bicentennial Center Fund 79
Business Improvement City Fund 80
Neighborhood Park Fund 81
Special Parks and Recreation Fund 82
Special Alcohol Fund 83
Sales Tax Economic Development Fund 84
Arts & Humanities Fund 85
Debt Service Fund 86
Solid W aste Disposal Fund 87
Water and Sewer Fund 88
Sanitation Fund 89
Golf Course Fund 90
Workers’ Compensation Reserve Fund 91
Health Insurance Fund 92
Central Garage Fund 93
CITY OF SALINA, KANSAS
Comprehensive Annual Financial Report
For the year ended December 31, 2016
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Internal Service Fund Descriptions 94
Combining Statement of Net Position -Internal Service Funds 95
Combining Statement of Revenues, Expenses, and Changes in Net
Position -Internal Service Funds 96
Combining Statement of Cash Flows -Internal Service Funds 97 -98
Fiduciary Fund Descriptions -Agency Funds 99
Combining Balance Sheet -Agency Funds 100
Combining Statement of Changes in Assets and Liabilities -Agency Funds 101
Schedule
STATISTICAL SECTION
Net Position by Component -Last Ten Years 1 102
Changes in Net Position -Last Ten Years 2 103
Fund Balances, Governmental Fund -Last Ten Years 3 104
Changes in Fund Balances, Governmental Funds -Last Ten Years 4 105
Tax Revenues by Source, Governmental Funds -Last Ten Years 5 106
Assessed and Estimated Actual Value of Taxable Property –Last Ten Years 6 107
Direct and Overlapping Property Tax Rates –Last Ten Years 7 108
Principal Property Tax Payers 8 109
Property Tax Levies and Distributions 9 110
Direct Sales Rate by Taxing Entity 10 111
Water Sales by Class of Customer 11 112
Ratio of Outstanding Debt by Type 12 113
Ratio of Net General Bonded Debt Outstanding 13 114
Direct and Overlapping Governmental Activities Debt 14 115
Legal Debt Margin 15 116
Pledged Revenue Coverage 16 117
Demographic and Economic Statistics 17 118
Principal Employers 18 119
INTRODUCTORY SECTION
DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735
AND ADMINISTRATION FAX (785) 309-5738
300 West Ash, P.O. Box 736 TDD (785) 309-5747
Salina, Kansas 67402-0736 Website: www.salina-ks.gov
i
October 8, 2018
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, 2016, 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 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, 2016 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.
ii
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 its 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 47,336.
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. The entity also includes one blended component unit. Salina Field House Qualified Active Low-
Income Community Business, Inc. (SFH QalicB). SFH QalicB was created for the purpose of providing an
indoor sports facility in the downtown core of the city of Salina. In addition, the City of Salina participates in a
joint venture with Saline County, 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 Technologies, Blue Philips Lighting
Company, ElDorado National, and Schwan’s Global Supply Chain. 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.” According to the Kansas Department of Revenue’s Annual City Trade Pull Factors Report, Salina
had a pull factor of 1.46 in 2016. 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 2016.
Major Initiatives
In April, 2016, voters elected to replace the .40 cent capital improvement sales tax with a .75 cent capital
improvement sales tax for a term of 20 years. Priorities for the sales tax are improving neighborhood streets
and drainage, preserving stable property tax rates, ensuring a quality park system, constructing and
maintaining community improvements, funding equipment for maintenance, repayment of future bonds for
large projects and attracting quality jobs.
In 2016 several major projects were ongoing, including the continuation of construction on the Salina Field
House, approval of the Downtown Redevelopment District, continued improvements to Ohio and Iron Streets
and continued improvements to the water distribution system.
iii
The City continues to address fiduciary pressures generated by a recessionary economy. While general
adjustments to the pay plan for cost of living changes have not yet resumed, the City did allow for merit
review increases averaging 2%.
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*: 2017 2018 2019 2020 2021
Sales Tax 4,060,000$ 5,380,000$ 4,385,000$ 4,390,000$ 4,395,000$
Water & Wastewater Fund - - - 1,850,000 -
General Obligation Bonds 2,050,000 4,500,000 29,135,000 - -
Revenue Bonds 36,000,000 4,000,000 4,000,000 4,000,000 32,000,000
Other Sources 800,000 60,000 - - -
Total 42,910,000$ 13,940,000$ 37,520,000$ 10,240,000$ 36,395,000$
*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.
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.).
iv
Acknowledgments
The preparation of the Comprehensive Annual Financial Report was made possible by the dedicated
Finance staff of the City of Salina and the professional advice and efforts of the Mize Houser auditing team.
Finally, preparation of this report would not have been possible without the support of the City Commission.
Sincerely,
Michael D. Schrage
Interim City Manager
CITIZENS
CITY COMMISSION
Karl Ryan, Mayor
Trent Davis
Melissa Rose Hodges
Mike Hoppock
Joe Hay
Interim City Manager
Michael Schrage
Municipal Court
Risk Management
Deputy City Manager
Michael Schrage
Legal Services
Clark Mize & Linville Chartered*
Greg Bengtson
Continuous Process Improvement
Scott Gardner
Development Services
Lauren Driscoll
Building Services
Neighborhood Services
Planning & Zoning
Community Relations
Human Resources
Natalie Fischer
Arts & Humanities
Brad Anderson
Computer Technology
Jack Rolfs
Smoky Hill Museum
Parks Division
Recreation Division
Golf Course
Facility Maintenance
Animal Services
*Tony’s Event Center
Parks & Recreation
Chris Cotten
Public Works
Jim Kowach
Police
Brad Nelson
Utilities
Martha Tasker
Finance/Administration
Debbie Pack
Fire
Kevin Royse
Engineering
Public Services
Streets
Traffic Control
Flood Control
Sanitation
Solid Waste
Central Garage
Water Plant Division
Wastewater Plant
Division
Utility Division
Water Distribution
Wastewater
Collection
City Clerk
Water Customer
Accounting
Finance
Fire Administration
Fire Suppression
Fire Prevention
EMS
Administration
Patrol Division
Support Division
Investigative
Division
vi
City of Salina, Kansas
List of Principal Officials
City Commission
Karl Ryan, Mayor
Trent Davis, Vice Mayor
Mike Hoppock, Commissioner
Melissa Hodges, Commissioner
Joe Hay, Jr, Commissioner
City Executive Staff
Jason Gage, City Manager
Michael Schrage, Deputy City Manager
Lauren Driscoll,Director of Development Services
Debbie Pack,Director of Finance and Administration
Jack Rolfs, Director of Computer Technology
Natalie Fischer, Director of Human Resources
Greg Bengston, City Attorney
Brad Nelson, Chief of Police
Kevin Royse, Fire Chief
Daniel Stack, City Engineer
Jim Kowach, Director of Public W orks
Martha Tasker, Director of Utilities
Chris Cotton, Director of Parks and Recreation
Brad Anderson, Director of Arts and Humanities
FINANCIAL SECTION
www.mizehouser.com mhco@mizehouser.com
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1
INDEPENDENT AUDITOR’S REPORT
Mayor and City Commissioners
City of Salina, Kansas
Report on the Financial Statements
We have audited the accompanying financial st atements of the governmental activities, the business-type activities,
the aggregate di scretely 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, 2016, and the related notes to
the financial st atements, whi ch collectively comprise the City’s basic financial st atements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial st atements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relev ant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the Kansas
Municipal Audit and Accounting Guide. Those standards require we plan and perform the audit to obtain
reasonable assurance about whether the financial statement is free of material misstatement. We did not audit the
financial statements of the Salina Field House Qualified Active Low-Income Community Business, Inc. (SFH
QalicB), which is included within the financial statements as a major gov ernmental fund. This activity represents
22% and 0%, respectiv el y,of the total assets and total revenues of the gov ernmental funds. Those financial
statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it
relates to the am ounts included for SFH QalicB, is based solely on the report of the other auditors. We also did
not audit the financial statements of the Salina Airport Authority which statements reflect total assets and deferred
outflows of resources of $45,554,036 as of December 31, 2016 and total revenues of $4,927,388 for the year then
ended, and the Housing Authority of the City of Salina which statements reflect total assets and deferred outflows
of resources of $7,589,510 as of June 30, 2016 and total revenues of $2,544,070 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 hav e been furnished to us, and our opinion, insofar as it
relates to the am ounts 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.
2
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of
material misstatement of the financial st atements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
ex pressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit al so includes ev al uating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit ev idence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinions
In our opi nion, based on our audit and the reports of other auditors,the financial statements referred to abov e
present fairly, in all material respects, the respective financial position of the gov ernmental activities, the business-
type activ ities, the aggregate di scretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Salina, Kansas, as of December 31, 2016, and the respective changes in financial
position and cash flows, where applicable, thereof and the respective budgetary comparison for the General,
Tourism and Convention, Special Gas and Sales Tax Capital Funds for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter
Prior Period Restatement
As discussed in Note 3 to the financial statements, certain errors resulting in amounts previously reported as capital
assets as of December 31, 2015, were discovered by management of the City during the current year. Accordingly,
these amounts have been restated in the December 31, 2016, financial statements now presented, and adjustments
have been made to net position to correct the error. Our opinion is not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's di scussion
and analysis on pages 4 through 15 and the schedules of funding progress on page 67, the schedule of the City’s
proportionate share of the net pension liability on page 68, and the schedule of City contributions on page 68 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 hi st orical
context. We hav e applied certain limited procedures to the required supplementary information in accordance with
auditing st andards generally accepted in the United States of America, whi ch 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 prov ide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial st atements that collectively comprise
the City’s financial statements as a whole. The introductory section, combining and individual nonmajor fund
financial statements and schedules, and st atistical 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 st atements. The combining and
individual nonmajor fund financial statements and schedules 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 basic financial st atements or to the financial st atements 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 st atements as a whole.
3
The introductory and statistical sections hav e 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.
Certified Public Accountants
Lawrence, Kansas
October 8, 2018
4
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Management Discussion and Analysis
This section of the report contains an ov erview and analysis of the City of Salina’s financial statements for the fiscal
year ended December 31, 2016. 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
On an accrual basis, the City’s gov ernment-wide net position increased $11.5 million from current operations with
net position increases of $9.2 million and $2.3 million in governmental activities and business-type activities,
respectiv el y.
At the close of 2016, the City’s gov ernmental funds reported combined ending fund balances of $16.7 million, an
increase of $10.3 million from the prior year (as restated). Thi s primarily resulted from the addition of the SFH
QalicB fund ($6.8 million), a reduction in spending of Capital Projects fund ($3.6 million) and a decrease in the
Schilling Groundwater Abatement Capital project fund balance ($1.5 million). The General Fund balance
increased $192K (3.9%) ov er the prior year (as restated).
At the close of 2016, the City’s enterprise funds reported a combined ending Net Position of $87.5 million, an
increase of $2.3 million ov er prior year (as restated). Positive performance was shared by all enterprise funds
except the Solid Waste Fund, which showed a slight negative performance ($135K), with the Water and Sewer
Fund providing the bulk of the change ($2.2 million).
Rev enues from gov ernmental funds increased $6.08 million from the prior year and revenues from business type
funds increased $677K from the prior year.
Rev enues from inv estments continue to be minimal.
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 gov ernment-wide financial statements present the results of the City’s operations using the accrual basis of
accounting, the same basis as is used by priv ate sector businesses. These statements focus on the long-term
financial picture of the City as a whole.
The Statement of Net Position reports all of the City’s assets and liabilities. Net position, the difference between
assets and deferred outflows of resources and liabilities, are an important measure of the City’s ov erall financial
health. Net position represents the total accumulated and unused resources av ailable to the City for the purpose of
providing services. Over time, the increases and decreases in net position can be monitored to determine if the
City’s financial position is improving or deteriorating.
The Statement of Activities shows how net position has changed during the fiscal year. One unique feature of this
statement is how it shows the rev enues 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 rev enues and expenses are included, regardless of when cash is actually received. Both statements show the
operations of the City broken down between gov ernmental and business-type activities. Governmental activities are
the operations of the City generally supported by taxes, such as public saf ety (police, fire, and EMS), public works,
public health, and culture & recreation. Business-type activities are operations of the City that are intended to
recov er 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.
5
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
The gov ernment-wide financial statements include the Salina Airport Authority and Salina Housing Authority as
discretely presented component units of the City and the Salina Field House Qualified Active Low-Income
Community Business, Inc. (SFH QalicB) as a blended component unit. 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: gov ernmental 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.
Gov ernmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are
recognized when they become measurable and av ailable, and ex penditures 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 pi cture of the operations of the individual fund, rather than long-term citywide view
provided by the government-wide statements. Major gov ernmental funds are presented in individual columns, while
non-major gov ernmental 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 gov ernmental 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 gov ernment-wide statements for business-type activities, but
in greater detail. The City of Salina currently operates four enterprise funds: Sanitation, 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 three internal service funds. Two of these are for self-insurance
activity: Workers Compensation Reserv e, and Health Insurance. The remaining accounts for the Central Garage
operation. A com bi ni ng 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 is no net position. The City of
Salina operates ten 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 abov e, 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.
6
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
The City as a Whole
This section will identify, di scuss, 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 its operations. Each of these rev enue streams
has a different revenue base. In declining order of magnitude, they are charges for services, sales taxes, and
property taxes. Sales taxes and property taxes apply primarily to gov ernmental activities, while charges for services
apply to both gov ernmental (25%) and business-type (75%) activities.
Charges for services account for about 42% ($36.0 million) of the City’s rev enue stream. Charges for service
depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services
include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course
fees.Charges for services increased $1.2 million (3.6%) from the prior year with the general fund increasing $520K
(5.4%) and solid waste fees increasing $276K (11%). The increase in service fees in the general fund is a result of
increased charges for EMS services, while the decline in solid waste fees is a result of reduced volume related
McPherson County opening their own facility.
Sales taxes are the next largest component of the revenue mix, providing 21%($17.7 million) of the total revenues.
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 County-wide tax is av ailable for general purposes. Total revenue from the sales tax in 2016
was up 1.0% from the prior year. This 1.0%increase follows a 2.0% increase for 2015.
The City was unfavorably affected by the formula used to di stribute the County-wide sales tax am ong 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 ov erlapping levy attributable to the
City of Salina has decreased, the City’s allocated portion of the County-wide sales tax has also decreased. The
decline in the City of Salina share of countywide sales tax is a long-term trend.
In 2008, Salina voters approv ed an increase of the special purpose .25% tax to a .40% tax. The extended tax is to
sunset March 31, 2019. The tax was also modestly re-purposed, for Capital and Economic Development purpose s
only, as well as retaining a property tax stabilization component.In May 2016, Salina voters approv ed an increase in
the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective
October 1, 2016 for twenty years and had minimal impact on 2016 revenues.
Property taxes are the third major component of the rev enue mix, accounting for 15%($12.6 million) of total
rev enues. 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 av erage tax rate and the assessed v alue of the vehicle.
Real estate assessed value increased by 2.3%. The total City mill levy increased 1.07%. The ov erlapping levy
increased in 2016 by .72%.
Personal property value continued to slide, presumably as a result of rem ov ing business equipment from the tax
base. Personal property value has now dropped to $11.8 million from its peak of $39.7 million in 2007. At the 2016
tax rate, this exemption is equivalent to ov er $760K in annual lost revenue.
Motor vehicle value increased 4% bringing it back to 2010 values. Motor vehicle taxes are distributed based on a
formula using prior year’s tax effort (similar to the Countywide Sales Tax Distribution).
7
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
The following table summarizes the comparative property assessed v alues and tax levy rates:
Fiscal (Budget) Year 2016 2015 Change
Real Estate and Personal Property Assessed Valuation 420,849,599$ 412,679,694$ 8,169,905$
City Mill Levy ($ per $1,000)
Operating (General Fund)19.95 20.692 (0.742)
Debt Service 7.361 6.388 0.973
Total City Rate 27.311 27.08 0.231
Total Overlapping Levy 134.999 134.037 0.962
Percent of Total Taxes Collected 93.5%92.4%1.1%
Ratio of Total Taxes (including delinquent collections) to taxes levied 95.5%97.9%-2.4%
Motor Vehicle Valuation 51,833,505$ 50,350,566$ 1,482,939$
Comparative Property Values and Tax Levy Rates
The unemployment rate in Salina decreased slightly from 3.9% at the end of 2015 to 3.3% at the end of 2016,
reflecting general economic conditions. This is still slightly below the statewide and significantly below the national
unemployment rate. The total labor force increased to 27,684, an increase of 6%.
In 2016, the top ten property taxpayers accounted for 9.59% of total assessed value. This is more concentrated than
ten years ago (at 13.71%).
Statement of Net Position
Net position may, ov er time, provide an indicator of a gov ernment’s financial position. In the case of the City of
Salina, assets and deferred outflows of resources exceeded liabilities by $203.4 million at December 31, 2016. This
represents an increase in net asset s of $11.5 million ov er 2015 (as restated). A comparative Condensed Statement
of Net Position at December 31, 2016 and 2015:
8
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
2016 2015 2016 2015 2016
% of
Total 2015
% of
Total
2016-2015
change
Cash and investments 26,873$ 14,508$ 29,505$ 28,415$ 56,378$ 16%42,923$ 13%13,455$
Other current assets 13,990 13,966 2,213 2,004 16,203 4%15,970 5%233
Noncurrent (capital) assets 197,122 181,241 90,784 90,596 287,906 80%271,837 82%16,069
Total assets 237,985 209,715 122,502 121,015 360,487 100%330,730 100%29,757
Total deferred outflows of
resources 6,681 2,272 878 460 7,559 100%2,732 100%4,827
Total assets and deferred
outflows of resources 244,666 211,987 123,380 121,475 368,046 333,462 34,584
Current liabilities 17,370 16,425 3,598 4,311 20,968 14%20,736 16%232
Noncurrent liabilities 98,158 75,308 32,020 31,567 130,178 86%106,875 84%23,303
Total liabilities 115,528 91,733 35,618 35,878 151,146 100%127,611 100%23,535
Total deferred inflows of
resources 13,270 13,550 202 368 13,472 13,918 (446)
Net position:
Net investment in capital assets 124,635 130,401 62,427 68,107 187,062 92%198,508 103%(11,446)
Restricted for permanent funds 489 479 - - 489 0%479 0%10
Restricted for debt service 1,249 745 1,512 1,512 2,761 1%2,257 1%504
Unrestricted (10,505) (24,922) 23,621 15,610 13,116 6%(9,312) -5%22,428
Total net position 115,868 106,703 87,560 85,229 203,428 100%191,932 100%11,496
Percent of total net position 57%56%43%44%100%100%
Cash and investments as a
percentage of current liabilities 155%88%820%659%269%207%
Governmental Activities Business-Type Activities
Condensed Statement of Net Position
As of December 31
(In $000)
Total Primary Government
The largest segment of the City’s net position reflects its investment in capital assets (land, buildings, streets and
drainage facilities, utility plant, vehi cles, 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 cannot 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 position is restricted for debt service and permanent funds. The remainder (unrestricted) of net
position may be used to meet the City’s obligations to citizens and creditors.
In 2016, the am ount of net investment in capital assets decreased by $11.4 million. Amount restricted for debt
service increased by $504 thousand. Outside of the increase in net investment in capital asset s and the increase of
restricted for debt service, 2016 resulted in a $11.5 million increase to the net position.
Total liabilities increased in governmental activities and slightly decreased in business-type activities. In
gov ernmental activities, current liabilities and non-current liabilities increased primarily due to a $5 million increase in
pension liability and a $4.6 million increase in temporary notes payable. In business-type activities current liabilities
decreased and non-current liabilities increased with the total being a slight decrease.
9
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Statement of Activities
A Condensed Statement of Activities is shown below.
2016 2015 2016 2015 2016 % 2015 %
2016-2015
Change
Program Revenues:
Charges for Services 10,085$ 9,564$ 25,657$ 24,926$ 35,742$ 42%34,490$ 44%1,252$
Operating Grants and Contributions 4,332 3,394 - - 4,332 5%3,394 4%938
Capital Grants and Contributions 734 - - - 734 1%- 0%734
General Revenues:-
Property Taxes 12,588 12,320 - - 12,588 15%12,320 16%268
Sales Taxes 17,682 17,489 - - 17,682 21%17,489 23%193
Other Taxes 7,991 7,362 - - 7,991 9%7,362 9%629
Investment Revenue 148 86 78 56 226 0%142 0%84
Other Miscellaneous 5,841 2,371 79 133 5,920 7%2,504 3%3,416
Total Revenues:59,401 52,586 25,814 25,115 85,215 100%77,701 100%7,514
Expenses:-
General Government 9,188 10,743 - - 9,188 12%10,743 16%(1,555)
Public Safety 22,232 21,083 - - 22,232 30%21,083 31%1,149
Public Works 9,773 9,049 - - 9,773 13%9,049 13%724
Public Health and Sanitation 1,095 995 - - 1,095 1%995 1%100
Culture and Recreation 6,612 6,517 - - 6,612 9%6,517 10%95
Planning and Development 2,047 1,915 - - 2,047 3%1,915 3%132
Solid Waste Disposal - - 2,335 1,766 2,335 3%1,766 3%569
Water and Sewer - - 14,807 11,712 14,807 20%11,712 17%3,095
Sanitation - - 2,043 1,909 2,043 3%1,909 3%134
Golf Course - - 792 821 792 1%821 1%(29)
Interest on Long Term Debt 2,971 1,774 - - 2,971 4%1,774 3%1,197
Total Expenses 53,918 52,076 19,977 16,208 73,895 100%68,284 100%5,611
Increase in net assets before transfers 5,483 510 5,837 8,907 11,320 9,417 (1,903)
Transfers and other extraordinary items 3,600 3,820 (3,581) (3,782) 19 38 (19)
Change in Net Position 9,083 4,330 2,256 5,125 11,339 9,455 (1,922)
Net Position January 1 106,704 127,879 85,229 82,778 191,933 210,657 (18,724)
Prior Period Adjustment 82 (25,505) 74 (2,674) 156 (28,179) 28,335
Net Position January 1, restated 106,786 102,374 85,303 80,104 192,089 182,478 9,611
Net Position December 31 115,869$ 106,704$ 87,559$ 85,229$ 203,428$ 191,933$ 7,689$
Condensed Statement of Activities
For the Year Ended December 31
(In $000's)
Governmental Activities Business-Type Total Primary Government
Gov ernmental Activities. Charges for services attributable to governmental activities totaled $10.1 million and
operating grants for those purposes were $4.3 million. Both of these revenue streams increased slightly from the
prior year. The balance was funded by general revenues. Sales taxes accounted for $17.7 million of general
rev enues, with property taxes providing $12.6 million. The net position increased by $9.2 million as a result of
gov ernmental activities. This increase was primarily related to the prior year adjustment made in 2015 as a result of
changing accounting methods for pension liabilities that was not made in 2016.
Total ex penses for gov ernmental activities for the year ending December 31, 2016 were $53.9 million compared to
$52.1 million in 2015. Governmental activities represent 73% of the City’s total ex penses. The largest el ement of
gov ernmental activity expense was public safety, accounting for 41.2% of the total.
.
10
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Business Type Activities. Business-type activities are primarily supported by user charges, with a very small amount
coming from investment and miscellaneous rev enues. Total ex penses for business-type activities for the year were
$20.0 million, or 27% of the City’s total expenses. The majority of this expense ($14.8 million)is attributable to water
and sewer operations, with the other activities costing a combined total of $5.2 million. Net position increased by $2.3
million.This increase was primarily related to the adjustment to prior year’s balance as a result of changing
accounting methods for pension liabilities.
Fund Financial Analysis
Governmental Funds
Fund Balances:
The table below shows the Gov ernmental Fund balances for major funds as of December 31, 2016 and December
31, 2015.
Fund 2016 2015 Change
General 5,032$ 4,840$ 192$
Tourism and Convent ion 183 164 19
Spec ial Gas 812 638 174
Sales Tax Capital 1,667 1,620 47
Schilling Capital Improvement 4,061 5,536 (1,475)
Debt Service 1,249 745 504
Capital Projects (6,823) (10,537) 3,714
SFH QalicB 6,811 - 6,811
Other Government al Funds 3,685 3,404 281
Total 16,677$ 6,410$ 10,267$
Governmental Fund Balances
as of December 31,
(in 000's)
Total governmental fund balances increased by $10.3 million. The reasons for these changes are varied. The
Schilling Capital Improv ement Fund, which was created to account for U.S. Gov ernment and other funds received for
the abatement of groundwater contamination, continues to decrease as the City uses funds previously di stributed.
The Capital Projects Fund increase was largely the result of the issuance of temporary notes to fund capital outlays
on projects. The SFH QalicB fund was created to account for funds for the Salina Field House.
11
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Rev enues and Expenditures:
The following table shows a comparison of revenues and expenditures (including other sources and uses) for major
funds for the years ending December 31, 2016 and 2015.
Fund 2016 2015 Change
Revenues (Including Other Financing Sources)
General 40,081$ 39,003$ 1,078$
To urism and Convention 1,643 1,699 (56)
Special Gas 1,570 1,594 (24)
Sales Tax Capital 4,439 4,209 230
Schilling Capital Improvement 10 14 (4)
Debt Service 20,228 8,035 12,193
Capital Projects 16,432 8,130 8,302
SFH QalicB 12,573 - 12,573
Other Governmental Funds 4,119 3,287 832
Total Revenues 101,095 65,971 35,124
Les s Other Sources (43,876) (14,836) (29,040)
Revenues, net of other sources 57,219$ 51,135$ 6,084$
Expenditures (Including Other Financing Uses)
General 39,889$ 38,590$ 1,299$
To urism and Convention 1,624 2,086 (462)
Special Gas 1,396 1,886 (490)
Sales Tax Capital 4,392 4,503 (111)
Schilling Capital Improvement 1,484 2,075 (591)
Debt Service 19,724 7,697 12,027
Capital Projects 12,718 18,386 (5,668)
SFH QalicB 5,762 - 5,762
Other Governmental Funds 3,838 2,794 1,044
Total Expenditures 90,827 78,017 12,810
Less Other Uses (3,971) (3,913) (58)
Expenditures, net of other uses 86,856$ 74,104$ 12,752$
Consolidated Statement of Revenues and Expenditures for Major Governmental Funds
For the years ended December 31
Modified Accrual Basis
(i n $000's)
Total revenues, including other sources, were up $6,084,183 compared to 2015. The largest components of this
change were a $12,192,723 increase in Debt Service Fund primarily resulting from increased bond proceeds and a
$8,301,720 increase in the Capital Projects Fund primarily resulting from increased bond and temporary note
proceeds.
Expenditures decreased in most ev ery fund. The Debt Service Fund ex penditures increased significantly as a result
of refunding of prior debt.
12
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Proprietary Funds
The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative
Statement of Net Position follows for each enterprise fund:
2016 2015 Change 2016 2015 Change
Current Assets 5,886$ 5,753$ 133$ 24,445$ 23,246$ 1,199$
Capital Assets 4,047 4,701 (654) 85,444 84,894 550
Deferred Outflows 72 22 50 675 396 279
Total Assets and deferred outflows 10,005$ 10,476$ (471)$ 110,564$ 108,536$ 2,028$
Current Liabilities 442$ 472$ (30)$ 3,043$ 3,720$ (677)$
Noncurrent Liabilities 3,605 3,892 (287) 27,554 26,925 629
Deferred Inflows 26 45 (19) 129 242 (113)
Total Liabilities 4,073$ 4,409$ (336)$ 30,726$ 30,887$ (161)$
Net investment in capital assets 2,527$ 2,826$ (299)$ 66,038$ 64,280$ 1,758$
Restricted - - - 1,512 1,512 -
Unrestricted 3,405 3,241 164 12,288 11,857 431
Total Net Position 5,932$ 6,067$ (135)$ 79,838$ 77,649$ 2,189$
Current Assets as a percentage of
current liabilities 1332%1219%803%625%
2016 2015 Change 2016 2015 Change
Current Assets 1,250$ 1,214$ 36$ 136$ 207$ (71)$
Capital Assets 894 710 184 399 290 109
Deferred Outflows 100 31 69 31 10 21
Total Assets 2,244$ 1,955$ 289$ 566$ 507$ 59$
Current Liabilities 75$ 67$ 8$ 38$ 51$ (13)$
Noncurrent Liabilities 613 531 82 248 220 28
Deferred Inflows 36 62 (26) 11 19 (8)
Total Liabilities 724$ 660$ 64$ 297$ 290$ 7$
Net investment in capital assets 894$ 710$ 184$ 399$ 290$ 109$
Restricted - - - - - -
Unrestricted 626 585 41 (130) (73) (57)
Total Net Position 1,520$ 1,295$ 225$ 269$ 217$ 52$
Current Assets as a percentage of
current liabilities 1667%1812%358%406%
Solid Waste Disposal Water and Sewer
Sanitation Golf Course
13
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Revenues, Expenses, and Changes in Net Position
All enterprise funds show healthy results, with all funds other than Solid Waste reflecting increases in net position
prior to the restatement of prior year balances. The restatement was primarily due to a change in method of
accounting for pension obligations.The decline in net position in the Solid Waste Fund (prior to restatement) is
primarily due to reduced operating income as a result of McPherson County opening their own facility combined with
transfers out.
2016 2015 Change 2016 2015 Change
Operating Revenues 2,816$ 2,564$ 252$ 19,328$ 19,099$ 229$
Operating Expenses 2,312 1,690 622 13,982 10,818 3,164
Operating Income 504 874 (370) 5,346 8,281 (2,935)
Non-operating revenues (expenses)(8) (64) 56 (764) (853) 89
Income (Loss) before Transfers 496 810 (314) 4,582 7,428 (2,846)
Transfers in (out)(640) (626) (14) (2,450) (2,707) 257
Change in Net Position (144) 184 (328) 2,132 4,721 (2,589)
Net Position January 1 6,067 5,794 273 77,649 75,000 2,649
Restatement 9 89 (80) 57 (2,072) 2,129
Net Position January 1, restated 6,076 5,883 193 77,706 72,928 4,778
Net Position December 31 5,932$ 6,067$ (135)$ 79,838$ 77,649$ 2,189$
2016 2015 Change 2016 2015 Change
Operating Revenues 2,751$ 2,529$ 222$ 840$ 866$ (26)$
Operating Expenses 2,092 1,950 142 788 820 (32)
Operating Income 659 579 80 52 46 6
Non-operating revenues (expenses)52 43 9 (4) - (4)
Income (Loss) before Transfers 711 622 89 48 46 2
Transfers in (out)(492) (448) (44) - - -
Change in Net Position 219 174 45 48 46 2
Net Position January 1 1,296 1,650 (354) 217 335 (118)
Restatement 5 (528) 533 3 (164) 167
Net Position January 1, restated 1,301 1,122 179 220 171 49
Net Position December 31 1,520$ 1,296$ 224$ 268$ 217$ 51$
Comparative Summary of Revenues, Expenses and Changes in Net Position
for the Year Ended December 31
(In $000's)
Solid Waste Disposal Water and Sewer
Sanitation Golf Course
14
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Budgetary Highlights
The objective of budgetary controls is to ensure compliance with legal provisions em bodied in the annual
appropriated budget approv ed 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 di scretion 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 reserv ations of budgetary basis fund balances at December 31, 2016. Formal budgetary
amendments are limited to those circumstances in which the need is perceiv ed to al ter the total fund budget. Re-
allocation among departments or line items are not typically recorded as budgetary amendments.
Howev er, in addition to formal amendments, departments within the City are allowed to transfer budget between line
items within a department. Budgets may al so 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.
Capital Assets and Debt Administration
Capital Assets
The total amount inv ested in Capital Assets for the City at December 31, 2016 was $287,907,000 net of accumulated
depreciation.
The following table illustrates the Capital Asset balance by various classes of assets at December 31, 2016 and
2015:
2016 2015 2016 2015 2016 2015
Equipment, Furniture and Fixtures 1,190$ 1,141$ 1,692$ 1,645$ 2,882$ 2,786$
Vehicles 3,148 3,386 1,161 766 4,309 4,152
Buildings and Improvements 24,857 24,109 9,783 10,206 34,640 34,315
Land 24,002 23,263 1,542 1,547 25,544 24,810
Infrastructure 113,114 110,322 60,879 62,853 173,993 173,175
Construction in Progress 30,811 19,020 15,728 13,579 46,539 32,599
Total 197,122$ 181,241$ 90,785$ 90,596$ 287,907$ 271,837$
Capital Asset Balances Net of Depreciation
as of December 31
(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 29,855$ 5,344$ 35,199$
Retirements (8,434) (1,229) (9,663)
Depreciation (5,622) (4,000) (9,622)
Net Additions 15,799$ 115$ 15,914$
Changes to Capital Assets, 2016
(in 000's)
Additional information on the City’s capital assets can be found in Note 4,D. of the notes to the basic financial
statements.
15
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2016
(Unaudited)
Debt Management
The City’s general policy for general obl igation bonds is to issue them for no more than 10 years for the City at Large
portion, with some ex ceptions permitted for extraordinary projects. On special assessment bonds, the maturity may
extend to 15 years.
The outstanding general obligation bonds for gov ernmental activities at December 31, 2016 totaled $51,816,399. In
addition, there were temporary notes outstanding in the amount of $11,505,000, as well as a financing lease in the
amount of $321,174.
Business-type activities had $13,285,443 in rev enue bonds outstanding, as well as $7,640,381 in general obligation
bonds. Revenues generated by user fees are pledged to retire all of the bonds issued by business-type activities. In
addition, a loan payable is outstanding in the amount of $7,432,024.
The City engaged in the following debt transactions during 2016:
On July 26th, the City issued 2016A, $6,570,000 of improv em ent bonds. The proceeds were used to finance
construction to Iron, Centennial and N. Ohio streets, as well as improvements to Fire Headquarters. They
also issued 2016B, $13,750,000 of refunding bonds. The proceeds were used to refund all or a portion of
the 2006B, 2007A, 2008A, 2009A, 2010A and 2011A issues. This refunding is expected to sav e the City over
$1,000,000 in debt service expense.
On July 26th, the City issued $4,615,000 in temporary notes to finance construction of the Salina Fieldhouse.
This note will be refinanced into a long term bond issue in August 2019.
On July 27, 2016, the SFH QalicB issued four promissory notes in the amounts of $6,016,500 (Dakotas Note
A), $2,623,500 (Dakotas Note B), $2,674,000 (CNMC Note A), and $1,326,000 (CNMC Note B) all maturing
on December 10, 2050 to finance construction of the Salina Fieldhouse.
Additional information on the City’s debt can be found in Note 4, E. of the notes to the basic financial statements.
Requests for Information
This financial report is intended to giv e the reader a general ov erview of the City’s finances. Questions about
information in this report or requests for additional information should be directed to the Director of Finance, Room
206, 300 West Ash Street, Salina, Kansas, 67401.
BASIC FINANCIAL STATEMENTS
Total Total Total Salina Salina
Governmental Business-type Primary Housing Airport
Activities Activities Government Authority Authority
ASSETS AND DEFERRED OUTLFOWS OF RESOURCES
Current assets:
Cash and investments 18,359,980$ 29,505,287$ 47,865,267$ 1,822,554$ 240,357$
Receivables (net of allowance for uncollectibles)
Accounts 1,465,603 1,709,441 3,175,044 15,567 789,344
Taxes 12,178,439 - 12,178,439 - -
Interest 24,930 16 24,946 - -
Inventory 321,164 502,756 823,920 30,148 -
Restricted cash and investments 8,513,216 - 8,513,216 164,725 -
Prepaid expenses - - - 39,951 146,963
Total current assets 40,863,332 31,717,500 72,580,832 2,072,945 1,176,664
Noncurrent assets:
Capital assets, nondepreciable
Construction in progress 30,810,942 15,727,780 46,538,722 153,252 1,835,795
Land 24,001,859 1,541,807 25,543,666 1,456,891 9,857,488
Capital assets, depreciable 252,326,160 132,655,775 384,981,935 8,207,657 71,862,751
Less: Accumulated depreciation 110,017,034 59,141,013 169,158,047 4,311,652 39,255,332
Total noncurrent assets 197,121,927 90,784,349 287,906,276 5,506,148 44,300,702
Total assets 237,985,259 122,501,849 360,487,108 7,579,093 45,477,366
Deferred outflows of resources:
Pension - difference between expected and actual experience 1,117,007 20,160 1,137,167 - 3,382
Pension - contributions subsequent to the measurement date 1,774,095 193,187 1,967,282 10,417 4,453
Pension - net difference between projected and actual earnings on pension plan investments 3,631,693 410,329 4,042,022 - 68,835
Pension - changes in proportion 251 104 355 - -
Deferred charge on bond issuance 157,934 254,595 412,529 - -
Total deferred outflows of resources 6,680,980 878,375 7,559,355 10,417 76,670
Total assets and deferred outflows of resources 244,666,239$ 123,380,224$ 368,046,463$ 7,589,510$ 45,554,036$
Liabilities:
Current liabilities:
Accounts payable 2,710,561$ 141,195$ 2,851,756$ 57,861$ 154,132$
Retainage payable 192,610 293,593 486,203 - -
Accrued liabilities 489,139 - 489,139 38,546 108,115
Matured bond principal and interest 145 - 145 - -
Accrued interest payable 228,666 274,555 503,221 - 311,276
Deposits payable - 178,938 178,938 95,608 -
Current portion of compensated absences 1,484,659 354,838 1,839,497 3,004 -
Current portion of temporary notes payable 6,890,000 - 6,890,000 - -
Current portion of loans payable - 556,748 556,748 - -
Current portion of revenue bonds payable - 678,696 678,696 - -
Current portion of financing leases payable 163,306 - 163,306 - -
Current portion of special assessment debt payable - - - - 2,061
Current portion of general obligation bonds payable 5,210,465 1,119,947 6,330,412 - 1,065,000
Total current liabilities 17,369,551 3,598,510 20,968,061 195,019 1,640,584
Noncurrent liabilities:
Accrued liabilities 60,348 - 60,348 29,717 -
Compensated absences 1,319,188 315,288 1,634,476 27,038 -
Security deposits returnable - - - - 44,904
Net OPEB obligation 4,559,898 445,253 5,005,151 - -
Net pension liability 28,683,048 3,339,163 32,022,211 318,110 582,704
Temporary notes payable 4,615,000 - 4,615,000 - -
Loans payable 12,157,127 6,875,276 19,032,403 - -
Revenue bonds payable - 12,606,747 12,606,747 - -
Financing leases payable 157,868 - 157,868 - -
Special assessment debt payable - - - - 9,207
General obligation bonds payable 46,605,934 6,520,434 53,126,368 - 21,362,267
Landfill post-closure care liabilities - 1,917,849 1,917,849 - -
Total noncurrent liabilities 98,158,411 32,020,010 130,178,421 374,865 21,999,082
Total liabilities 115,527,962 35,618,520 151,146,482 569,884 23,639,666
Deferred inflows of resources:
Unavailable revenue - property taxes 11,615,912 - 11,615,912 5,911 77,078
Pension - difference between expected and actual experience 358,750 62,693 421,443 - 10,517
Pension - changes of assumptions 202,466 32,494 234,960 - 5,451
Pension - change in proportion 1,093,125 107,083 1,200,208 - 98,089
Total deferred inflows of resources 13,270,253 202,270 13,472,523 5,911 191,135
Total liabilities and deferred inflows of resources 128,798,215$ 35,820,790$ 164,619,005$ 575,795$ 23,830,801$
Net Position
Net investment in capital assets 124,635,185$ 62,426,501$ 187,061,686$ 5,506,148$ 21,862,166$
Restricted for:
Permanent funds:
Expendable 489,281 - 489,281 27,390 -
Debt service 1,248,914 1,512,125 2,761,039 - -
Unrestricted [10,505,356] 23,620,808 13,115,452 1,480,177 [138,931]
Total net position 115,868,024$ 87,559,434$ 203,427,458$ 7,013,715$ 21,723,235$
Primary Government
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
December 31, 2016
Component Units
The notes to the basic financial statements are an integral part of this statement.
16
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 9,188,028$ 3,134,287$ 751,426$ 733,596$ [4,568,719]$ -$ [4,568,719]$ -$ -$
Public safety 22,232,444 4,890,933 1,504,034 - [15,837,477] - [15,837,477] - -
Public works 9,772,737 238,103 1,415,476 - [8,119,158] - [8,119,158] - -
Public health and sanitation 1,095,078 43,928 284,819 - [766,331] - [766,331] - -
Culture and recreation 6,611,837 1,637,690 177,819 - [4,796,328] - [4,796,328] - -
Planning and development 2,047,320 139,709 198,519 - [1,709,092] - [1,709,092] - -
Interest on long-term debt 2,970,905 - - - [2,970,905] - [2,970,905] - -
Total governmental activities 53,918,349 10,084,650 4,332,093 733,596 [38,768,010] - [38,768,010] - -
Business-type activities:
Solid Waste Disposal 2,334,504 2,794,694 - - - 460,190 460,190 - -
Water and Sewer 14,807,444 19,322,077 - - - 4,514,633 4,514,633 - -
Sanitation 2,042,540 2,751,178 - - - 708,638 708,638 - -
Golf Course 792,378 788,807 - - - [3,571] [3,571] - -
Total business-type activities 19,976,866 25,656,756 - - - 5,679,890 5,679,890 - -
Total primary government 73,895,215$ 35,741,406$4,332,093$ 733,596$ [38,768,010] 5,679,890 [33,088,120] - -
Component units:
Salina Housing Authority 2,564,060$ 416,769$ 1,998,126$ 102,743$ - - - [46,422] -
Salina Airport Authority 5,439,420 1,850,722 - 943,219 - - - - [2,645,479]
Total component units 8,003,480$ 2,267,491$ 1,998,126$ 1,045,962$ - - - [46,422] [2,645,479]
General Revenues:
Property taxes levied for
General purposes 8,195,762 - 8,195,762 - 2,017,013
Debt service 3,022,114 - 3,022,114 - -
Motor vehicle tax
General purposes 1,370,291 - 1,370,291 - -
Sales tax
General purposes 12,780,891 - 12,780,891 - -
Selective purposes 4,900,721 - 4,900,721 - -
Other taxes
General purposes 7,990,959 - 7,990,959 - -
Investment revenues 148,133 78,302 226,435 7,154 3,387
Reimbursements - - - - -
Miscellaneous 5,841,633 79,089 5,920,722 19,278 113,047
Transfers, net 3,600,312 [3,581,500] 18,812 - -
Subtotal general revenues 47,850,816 [3,424,109] 44,426,707 26,432 2,133,447
Change in net position 9,082,806 2,255,781 11,338,587 [19,990] [512,032]
Net position - beginning 106,703,403 85,229,252 191,932,655 7,033,705 22,235,267
Prior period adjustment 81,815 74,401 156,216 - -
Net position - beginning, restated 106,785,218 85,303,653 192,088,871 7,033,705 22,235,267
Net position - ending 115,868,024$87,559,434$ 203,427,458$7,013,715$21,723,235$
Changes in Net Position
Component UnitsPrimary GovernmentProgram Revenues
CITY OF SALINA, KANSAS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
Net [Expenses] Revenue and
The notes to the basic financial statements are an integral part of this statement.
17
Tourism
and Special
General Convention Gas
ASSETS
Cash and investments 3,919,811$ 367$ 522,183$
Restricted cash - - -
Receivables (net)
Accounts 1,055,326 409,037 -
Taxes 9,304,642 - 322,752
Interest 24,930 - -
Inventory 131,278 - -
Due from other funds 27,374 - -
Cash with fiscal agent - - -
Total assets 14,463,361$ 409,404$ 844,935$
LIABILITIES, DEFERRED INFLOW S OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 301,513$ 225,887$ 32,810$
Retainage payable - - -
Due to other funds - - -
Matured principal and interest - - -
Temporary notes payable - - -
Total liabilities 301,513 225,887 32,810
Deferred inflows of resources
Unavailable revenue - property taxes 9,129,492 - -
Total deferred inflows of resources 9,129,492 - -
Fund balance:
Nonspendable 131,278 - -
Restricted - 183,517 710,671
Committed - - -
Assigned 135,910 - 101,454
Unassigned 4,765,168 - -
Total fund balances 5,032,356 183,517 812,125
Total liabilities, deferred inflows of
resources and fund balances 14,463,361$ 409,404$ 844,935$
BALANCE SHEET
CITY OF SALINA, KANSAS
December 31, 2016
GOVERNMENTAL FUNDS
Schilling Other Total
Sales Tax Capital Debt Capital SFH Governmental Governmental
Capital Improvement Service Projects QalicB Funds Funds
1,800,114$ 4,177,302$ 1,184,289$ 388,159$ 15$ 3,743,075$ 15,735,315$
- - - - 8,513,216 - 8,513,216
- - - - - 1,240 1,465,603
- - 2,551,045 - - - 12,178,439
- - - - - - 24,930
- - - - - - 131,278
- - - 63,817 - - 91,191
- - 145 - - - 145
1,800,114$ 4,177,302$ 3,735,479$ 451,976$ 8,513,231$ 3,744,315$ 38,140,117$
133,065$ 116,137$ -$ 339,221$ 1,491,879$ 32,177$ 2,672,689$
- - - 46,060 146,550 - 192,610
- - - - 63,817 27,374 91,191
- - 145 - - - 145
- - - 6,890,000 - - 6,890,000
133,065 116,137 145 7,275,281 1,702,246 59,551 9,846,635
- - 2,486,420 - - - 11,615,912
- - 2,486,420 - - - 11,615,912
- - - - - - 131,278
- - 1,248,914 - - 999,021 3,142,123
1,056,648 3,767,688 - - 6,810,985 2,648,720 14,284,041
610,401 293,477 - - - 37,023 1,178,265
- - - [6,823,305] - - [2,058,137]
1,667,049 4,061,165 1,248,914 [6,823,305] 6,810,985 3,684,764 16,677,570
1,800,114$ 4,177,302$ 3,735,479$ 451,976$ 8,513,231$ 3,744,315$ 38,140,117$
18
The notes to the basic financial statements are an integral part of this statement.
Total Governmental Fund Balances 16,677,570$
Amounts reported for governmental activities in the
statement of net position are different because
Bond issuance costs are shown as current year expenditures in the funds.
Bond issuance costs 157,934
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds
The cost of capital assets is 306,938,457
Accumulated depreciation is 109,853,194 197,085,263
Pension contributions are reported an expense in the funds and as a
deferred outflow of resources in the governmental activities in the
statement of net position.6,492,968
Pension fundings are reported an a revenue in the funds and as a
deferred inflow of resources in the governmental activities in the
statement of net position.[1,643,783]
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.2,077,933
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 2,764,342
Net OPEB obligation 4,559,898
Net pension liability 28,517,255
Temporary notes payable 4,615,000
Bonds payable 51,816,399
Financing leases payable 321,174
Loans payable 12,157,127
Accrued interest on the bonds 228,666 [104,979,861]
Net Position of Governmental Activities 115,868,024$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO
NET POSITION OF GOVERNMENTAL ACTIVITIES
December 31, 2016
The notes to the basic financial statements are an integral part of this statement.
19
Tourism
and Special
General Convention Gas
REVENUES:
Taxes
Real estate taxes 8,010,541$ -$ -$
Delinquent taxes 185,221 - -
Motor vehicle taxes 1,021,834 - -
General sales taxes 12,780,891 - -
Selective sales taxes - - -
Other taxes 6,347,717 1,643,242 -
Intergovernmental 1,301,106 - 1,408,878
Special assessments - - -
Licenses and permits - - -
Charges for services 6,472,698 - -
Investment revenue 102,045 - 1,160
Reimbursements - - -
Donations - - -
Miscellaneous 507,330 - -
Total revenues 36,729,383 1,643,242 1,410,038
EXPENDITURES:
Current
General government 5,422,010 - -
Public safety 21,664,398 - -
Public works 5,066,426 - 454,676
Public health and sanitation 703,606 - -
Culture and recreation 4,147,736 - -
Planning and development 980,950 942,292 -
Miscellaneous - - -
Capital outlay 1,098,587 - 941,384
Debt service
Principal retirement - - -
Interest and other charges - - -
Total expenditures 39,083,713 942,292 1,396,060
Excess [deficiency] of revenue and other sources
over [under] expenditures and other [uses][2,354,330] 700,950 13,978
OTHER FINANCING SOURCES [USES]
Issuance of bonds - - -
Issuance of temporary notes - - -
Bond premium - - -
Loan proceeds - - -
Transfers in 3,351,500 - 160,000
Transfers [out][805,000] [681,722] -
Total other financing sources [uses]2,546,500 [681,722] 160,000
Net change in fund balance 192,170 19,228 173,978
Fund balance - Beginning of year 4,840,186 164,289 638,147
Fund balance - End of year 5,032,356$ 183,517$ 812,125$
EXPENDITURES AND CHANGES IN FUND BALANCE
STATEMENT OF REVENUES,
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2016
GOVERNMENTAL FUNDS
Schilling Other Total
Sales Tax Capital Debt Capital SFH Governmental Governmental
Capital Improvement Service Projects QalicB Funds Funds
-$ -$ 2,961,758$ -$ -$ -$ 10,972,299$
- - 60,356 - - - 245,577
- - 348,457 - - - 1,370,291
- - - - - - 12,780,891
4,427,332 - - - - 473,389 4,900,721
- - - - - - 7,990,959
- - - - - 1,615,512 4,325,496
- - 1,668,694 - - - 1,668,694
- - - - - 6,600 6,600
- - - - - 480,134 6,952,832
4,185 9,833 1,279 - - 23,509 142,011
- - - 1,406,218 - - 1,406,218
- - - - - 141,110 141,110
8,000 - - 3,728,899 - 71,152 4,315,381
4,439,517 9,833 5,040,544 5,135,117 - 2,811,406 57,219,080
- - - - - - 5,422,010
- - - - - - 21,664,398
- - - - - 256,523 5,777,625
- - - - - 373,956 1,077,562
- - - - - 1,669,855 5,817,591
- - - - - 118,885 2,042,127
- - - - - 35 35
2,324,435 1,484,119 - 12,013,621 5,696,399 442,022 24,000,567
- - 17,056,662 - - 845,000 17,901,662
- - 2,667,299 287,778 66,052 131,585 3,152,714
2,324,435 1,484,119 19,723,961 12,301,399 5,762,451 3,837,861 86,856,291
2,115,082 [1,474,286] [14,683,417] [7,166,282] [5,762,451] [1,026,455] [29,637,211]
- - 11,550,000 6,570,000 - - 18,120,000
- - - 4,615,000 - - 4,615,000
- - 1,391,004 111,766 - - 1,502,770
- - - - 12,157,127 - 12,157,127
- - 2,245,988 - 416,309 1,307,896 7,481,693
[2,068,350] - - [416,309] - - [3,971,381]
[2,068,350] - 15,186,992 10,880,457 12,573,436 1,307,896 39,905,209
46,732 [1,474,286] 503,575 3,714,175 6,810,985 281,441 10,267,998
1,620,317 5,535,451 745,339 [10,537,480] - 3,403,323 6,409,572
1,667,049$ 4,061,165$ 1,248,914$ [6,823,305]$ 6,810,985$ 3,684,764$ 16,677,570$
20
The notes to the basic financial statements are an integral part of this statement.
Total Net Change In Fund Balances - Governmental Funds 10,267,998$
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 position 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/[Loss] on sale of assets 43,260
Proceeds from sale of assets [49,871]
Capital outlays 21,428,587
Depreciation expense [5,609,083] 15,812,893
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 decreased.181,809
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.678,939
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.[215,338]
Pension payments are reported as expenditures in the governmental funds and
do not affect the statement of net activities.125,102
Bond, temporary note, loan and lease proceeds are other financing sources in the
governmental funds, but they increase long-term liabilities in the statement of net
position 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.[35,670,259]
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 position and does not affect the statement of activities.17,901,662
Changes In Net Position of Governmental Activities 9,082,806$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE WITH THE GOVERNMENT-W IDE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
The notes to the basic financial statements are an integral part of this statement.
21
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
GENERAL FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 8,010,541$ 8,139,579$ 8,139,579$ [129,038]$
Delinquent taxes 185,221 177,337 177,337 7,884
Motor vehicle taxes 1,017,981 953,439 953,439 64,542
General sales tax 12,780,891 13,675,000 13,675,000 [894,109]
Other taxes 5,147,717 5,790,000 5,790,000 [642,283]
Intergovernmental 1,301,106 1,135,000 1,135,000 166,106
Charges for services 6,099,993 5,982,887 5,982,887 117,106
Investment revenue 87,850 21,668 21,668 66,182
Miscellaneous 507,331 420,650 420,650 86,681
Total revenues 35,138,631 36,295,560 36,295,560 [1,156,929]
Expenditures
General government 5,053,113 3,767,161 3,767,161 [1,285,952]
Public safety 21,658,044 17,337,459 17,337,459 [4,320,585]
Public works 5,102,590 3,498,695 3,498,695 [1,603,895]
Public health and sanitation 703,606 - - [703,606]
Culture and recreation 4,139,766 4,344,713 4,344,713 204,947
Planning and development 980,950 3,098,241 3,098,241 2,117,291
Capital outlay 1,106,188 4,662,273 4,662,273 3,556,085
Total expenditures 38,744,257 36,708,542 36,708,542 [2,035,715]
Excess [deficiency] of revenues
over [under] expenditures [3,605,626] [412,982] [412,982] [3,192,644]
Other financing sources [uses]
Transfers in 4,551,500 5,663,733 5,663,733 [1,112,233]
Transfers [out][805,000] [8,715,675] [8,715,675] 7,910,675
Total other financing sources [uses]3,746,500 [3,051,942] [3,051,942] 6,798,442
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]140,874 [3,464,924] [3,464,924] 3,605,798
Unreserved fund balance, January 1 3,331,956 3,658,914 3,658,914 [326,958]
Prior year cancelled encumbrances 36,932 - - 36,932
Unreserved fund balance, December 31 3,509,762 193,990$ 193,990$ 3,315,772$
Reconciliation to GAAP
Interest receivable 24,930
Accounts receivable 1,055,326
Taxes receivable 9,304,642
Inventory 131,278
Deferred revenue [9,129,492]
Current year encumbrances 135,910
GAAP Fund Balance, December 31 5,032,356$
Budgeted Amounts
See independent auditor's report on the financial statements.
22
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
TOURISM AND CONVENTION FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Other taxes 1,600,512$ 1,420,000$ 1,600,512$ -$
Investment revenue - - 200 [200]
Total revenues 1,600,512 1,420,000 1,600,712 [200]
Expenditures
Planning and development 942,293 788,810 918,790 [23,503]
Total expenditures 942,293 788,810 918,790 [23,503]
Excess [deficiency] of revenues
over [under] expenditures 658,219 631,190 681,922 [23,703]
Other financing sources [uses]
Transfers [out][681,722] [631,189] [681,723] 1
Total other financing sources [uses][681,722] [631,189] [681,723] 1
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][23,503] 1 199 [23,702]
Unreserved fund balance, January 1 [202,017] 24,149 216,610 [418,627]
Unreserved fund balance, December 31 [225,520] 24,150$ 216,809$ [442,329]$
Reconciliation to GAAP
Accounts receivable 409,037
GAAP Fund Balance, December 31 183,517$
Budgeted Amounts
See independent auditor's report on the financial statements.
23
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SPECIAL GAS FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 1,400,876$ 1,383,070$ 1,383,070$ 17,806$
Investment revenue 1,160 6,000 6,000 [4,840]
Total revenues 1,402,036 1,389,070 1,389,070 12,966
Expenditures
Public works 454,676 569,915 569,915 115,239
Capital outlay 1,043,257 821,243 821,243 [222,014]
Total expenditures 1,497,933 1,391,158 1,391,158 [106,775]
Excess [deficiency] of revenues
over [under] expenditures [95,897] [2,088] [2,088] [93,809]
Other financing sources [uses]
Transfers in 160,000 160,000 160,000 -
Total other financing sources [uses]160,000 160,000 160,000 -
Excess [deficiency] of revenues
and other sources over [under]64,103 157,912 157,912 [93,809]
expenditures and other [uses]
Unreserved fund balance, January 1 217,927 342,088 342,088 [124,161]
Prior year cancelled encumbrances 105,889 - - 105,889
Unreserved fund balance, December 31 387,919 500,000$ 500,000$ [112,081]$
Reconciliation to GAAP
Taxes receivable 322,752
Current year encumbrances 101,454
GAAP Fund Balance, December 31 812,125$
Budgeted Amounts
See independent auditor's report on the financial statements.
24
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
SALES TAX CAPITAL FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Selective sales taxes 4,427,332$ 4,377,500$ 4,377,500$ 49,832$
Miscellaneous 8,000 - - 8,000
Investment revenue 4,185 5,000 5,000 [815]
Total revenues 4,439,517 4,382,500 4,382,500 57,017
Expenditures
Capital outlay 2,830,319 3,267,469 3,267,469 437,150
Total expenditures 2,830,319 3,267,469 3,267,469 437,150
Excess [deficiency] of revenues
over [under] expenditures 1,609,198 1,115,031 1,115,031 494,167
Other financing sources [uses]
Transfers [out][2,068,350] [1,816,750] [1,816,750] [251,600]
Total other financing sources [uses][2,068,350] [1,816,750] [1,816,750] [251,600]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][459,152] [701,719] [701,719] 242,567
Unreserved fund balance, January 1 1,495,985 701,719 701,719 794,266
Prior year cancelled encumbrances 19,815 - - 19,815
Unreserved fund balance, December 31 1,056,648 -$ -$ 1,056,648$
Reconciliation to GAAP
Current year encumbrances 610,401
GAAP Fund Balance, December 31 1,667,049$
Budgeted Amounts
See independent auditor's report on the financial statements.
25
Total Internal
Solid Waste Water and Enterprise Service
Assets and deferred outflows of resources:Disposal Sewer Sanitation Golf Course Funds Funds
Current assets:
Cash and investments 5,696,219$ 22,635,442$ 1,060,752$112,874$ 29,505,287$ 2,624,520$
Receivables (net of allowance for uncollectibles)
Accounts 189,483 1,330,256 189,702 - 1,709,441 -
Interest 16 - - - 16 -
Inventory and prepaid supplies - 479,772 - 22,984 502,756 189,886
Total current assets 5,885,718 24,445,470 1,250,454 135,858 31,717,500 2,814,406
Capital assets:
Nondepreciable capital assets:
Construction in progress - 15,727,780 - - 15,727,780 -
Land 682,000 844,807 - 15,000 1,541,807 -
Depreciable capital assets:
Capital assets 11,312,996 117,915,909 2,292,772 1,134,098 132,655,775 200,504
Less: accumulated depreciation 7,948,350 49,044,259 1,398,741 749,663 59,141,013 163,840
Total capital assets 4,046,646 85,444,237 894,031 399,435 90,784,349 36,664
Total assets 9,932,364 109,889,707 2,144,485 535,293 122,501,849 2,851,070
Deferred outflows of resources:
Pension - contributions subsequent to the measurement date 23,528 127,119 32,549 9,991 193,187 9,650
Pension - difference between expected and actual experience 2,295 13,718 3,156 991 20,160 956
Pension - net difference between projected and actual
earnings on pension plan investments 46,720 279,207 64,240 20,162 410,329 19,467
Pension - changes in proportion 12 71 16 5 104 5
Deferred charge on bond issuance - 254,595 - - 254,595 -
Total deferred outflows of resources 72,555 674,710 99,961 31,149 878,375 30,078
Total assets and deferred outflows of resources 10,004,919$110,564,417$ 2,244,446$566,442$ 123,380,224$ 2,881,148$
Liabilities and deferred inflows of resources:
Current liabilities
Accounts payable 23,184$ 101,542$ 13,848$ 2,621$ 141,195$ 37,872$
Retainage payable - 293,593 - - 293,593 -
Interest payable 11,598 262,957 - - 274,555 -
Meter deposits payable - 178,938 - - 178,938 -
Current portion of compensated absences payable 41,886 215,727 61,500 35,725 354,838 20,918
Current portion of accrued claims payable - - - - - 489,139
Current portion of loans payable - 556,748 - - 556,748 -
Current portion of general obligation bonds payable 365,000 754,947 - - 1,119,947 -
Current portion of revenue bonds payable - 678,696 - - 678,696 -
Total current liabilities 441,668 3,043,148 75,348 38,346 3,598,510 547,929
Noncurrent liabilities:
Compensated absences payable 37,217 191,683 54,645 31,743 315,288 18,587
Accrued claims payable - - - - - 60,348
Net OPEB Obligation 91,491 308,701 - 45,061 445,253 -
Net pension liability 403,518 2,206,122 557,845 171,678 3,339,163 165,793
Payable from restricted assets
Loans payable - 6,875,276 - - 6,875,276 -
General obligation bonds payable 1,155,000 5,365,434 - - 6,520,434 -
Revenue bonds payable - 12,606,747 - - 12,606,747 -
Landfill post-closure care liabilities 1,917,849 - - - 1,917,849 -
Total noncurrent liabilities 3,605,075 27,553,963 612,490 248,482 32,020,010 244,728
Total liabilities 4,046,743 30,597,111 687,838 286,828 35,618,520 792,657
Deferred inflows of resources
Pension - difference between expected and actual experience 7,138 42,659 9,815 3,081 62,693 2,974
Pension - changes of assumptions 3,700 22,110 5,087 1,597 32,494 1,542
Pension - change in proportion 15,234 64,256 21,340 6,253 107,083 6,042
Total deferred inflows of resources 26,072 129,025 36,242 10,931 202,270 10,558
Total liabilities and deferred inflows of resources 4,072,815$ 30,726,136$ 724,080$ 297,759$ 35,820,790$ 803,215$
Net position
Net investment in capital assets 2,526,646$ 58,606,389$ 894,031$ 399,435$ 62,426,501$ 36,664$
Restricted
Restricted for bond retirement - 1,512,125 - - 1,512,125 -
Unrestricted 3,405,458 19,719,767 626,335 [130,752] 23,620,808 2,041,269
Total net position 5,932,104$ 79,838,281$ 1,520,366$268,683$ 87,559,434$ 2,077,933$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2016
The notes to the basic financial statements are an integral part of this statement.
26
Total Internal
Solid W aste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Operating revenues
Charges for services 2,794,694$19,322,077$2,751,178$788,807$ 25,656,756$8,463,517$
Miscellaneous 21,854 5,744 - 51,491 79,089 28,795
Total operating revenues 2,816,548 19,327,821 2,751,178 840,298 25,735,845 8,492,312
Operating expenses
General government - - - - - 7,896,191
Public works 1,453,108 11,050,473 1,912,879 - 14,416,460 -
Recreation - - - 756,928 756,928 -
Depreciation 859,217 2,931,338 179,061 30,787 4,000,403 13,304
Total operating expenses 2,312,325 13,981,811 2,091,940 787,715 19,173,791 7,909,495
Operating income [loss]504,223 5,346,010 659,238 52,583 6,562,054 582,817
Nonoperating revenues [expenses]
Investment revenue 14,044 61,527 2,470 261 78,302 6,122
Interest expense [53,079] [842,574] - - [895,653] -
Gain/[loss] on disposal of fixed assets 30,900 12,125 49,400 [4,663] 87,762 810
Accretion of bond premium - 24,749 - - 24,749 -
Amortization of bond issuance costs - [19,933] - - [19,933] -
Total nonoperating revenues [expenses][8,135] [764,106] 51,870 [4,402] [724,773] 6,932
Income [loss] before transfers 496,088 4,581,904 711,108 48,181 5,837,281 589,749
Transfers from [to] other funds
Transfers in - - - - - 100,000
Transfers [out][640,000] [2,450,000] [491,500] - [3,581,500] [10,000]
Total transfers [640,000] [2,450,000] [491,500] - [3,581,500] 90,000
Change in net position [143,912] 2,131,904 219,608 48,181 2,255,781 679,749
Net position, January 1 6,067,348 77,648,903 1,295,686 217,315 85,229,252 1,390,096
Restatement 8,668 57,474 5,072 3,187 74,401 8,088
Net position, January 1, restated 6,076,016 77,706,377 1,300,758 220,502 85,303,653 1,398,184
Net position, December 31 5,932,104$79,838,281$1,520,366$268,683$ 87,559,434$2,077,933$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
The notes to the basic financial statements are an integral part of this statement.
27
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 2,777,362$19,171,817$2,724,789$788,807$ 25,462,775$8,455,964$
Cash paid to suppliers of goods or services [843,650] [8,228,376] [1,036,221][380,211] [10,488,458][7,638,588]
Cash paid to employees [638,251] [3,766,679] [881,119] [386,802] [5,672,851] [275,345]
Other operating receipts 21,854 5,744 - 51,491 79,089 28,795
Net cash provided by [used in] operating activities 1,317,315 7,182,506 807,449 73,285 9,380,555 570,826
Cash flows from capital and related financing activities
Purchase and construction of capital assets [202,357] [3,424,218] [357,436] [141,358] [4,125,369] -
Proceeds from sale of capital assets 37,536 12,125 49,400 - 99,061 810
Proceeds from loans - 2,133,625 - - 2,133,625 -
Proceeds from issuance of general obligation bonds - 2,200,000 - - 2,200,000 -
Principal payments - loans - [430,472] - - [430,472] -
Principal payments - general obligation bonds [355,000] [2,748,087] - - [3,103,087] -
Principal payments - revenue bonds - [660,000] - - [660,000] -
Interest paid [55,767] [845,452] - - [901,219] -
Net cash provided by [used in] capital
and related financing activities [575,588] [3,762,479] [308,036] [141,358] [4,787,461] 810
Cash flows from investing activities
Interest received 14,044 61,527 2,470 261 78,302 6,121
Cash flows from noncapital financing activities
Transfers in - - - - - 100,000
Transfers [out][640,000] [2,450,000] [491,500] - [3,581,500] [10,000]
Net cash provided by [used in] noncapital financing activities [640,000] [2,450,000] [491,500] - [3,581,500] 90,000
Net increase [decrease] in cash and cash equivalents 115,771 1,031,554 10,383 [67,812] 1,089,896 667,757
Cash and cash equivalents, January 1 5,580,448 21,603,888 1,050,369 180,686 28,415,391 1,956,763
Cash and cash equivalents, December 31 5,696,219$22,635,442$1,060,752$112,874$ 29,505,287$2,624,520$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2016
PROPRIETARY FUNDS
The notes to the basic financial statements are an integral part of this statement.
28
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]504,223$ 5,346,010$ 659,238$52,583$ 6,562,054$ 582,817$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense 859,217 2,931,338 179,061 30,787 4,000,403 13,304
[Increase] decrease in accounts receivable [17,332] [150,288] [26,389] - [194,009] -
[Increase] decrease in inventory - [17,443] - 3,265 [14,178] 4,203
[Increase] decrease in deferred outflows [49,903] [298,226] [68,616] [21,535] [438,280] [20,793]
Increase [decrease] in accounts payable [38,889] [826,680] 3,081 [15,412] [877,900] [20,467]
Increase [decrease] in retainage payable - [93,458] - - [93,458] -
Increase [decrease] in accrued compensated absences [1,115] 34,490 6,562 3,597 43,534 2,797
Increase [decrease] in claims payable - - - - - [7,554]
Increase [decrease] in landfill postclosure liabilities 15,597 - - - 15,597 -
Increase [decrease] in net pension liability 58,566 349,999 80,527 25,274 514,366 24,403
Increase [decrease] in net OBEB obligation 5,871 19,807 - 2,891 28,569 -
Increase [decrease] in meter deposits payable - 28 - - 28 -
Increase [decrease] in deferred inflows [18,920] [113,071] [26,015] [8,165] [166,171] [7,884]
Net cash provided by [used in] operating activities 1,317,315$ 7,182,506$ 807,449$73,285$ 9,380,555$ 570,826$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Continued)
For the Year Ended December 31, 2016
The notes to the basic financial statements are an integral part of this statement.
29
ASSETS
Cash and investments 268,293$
Total assets 268,293$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 268,293$
Total liabilities 268,293$
December 31, 2016
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.
30
31
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation gov erned by a mayor as part of a five-
member commission. These financial statements present the City and its component units, entities for which
the gov ernment is considered to be financially accountable. Each di scretely presented component unit is
reported in a separate column in the gov ernment wide statements (see note below for descriptions)to
em phasize that it is legally separated from the gov ernment.The bl ended component unit is reported as a
governmental fund of the City (see note below for description) to emphasize that it is a part of the city.
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 al so 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 gov erning 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, 2016.
Blended Component Unit
Salina Field House Qualified Active Low-Income Community Business, Inc.(SFH QalicB)-SFH QalicB was
created to function as a qualified low-income community business,as defined in Section 45D(d)(2) of the
Internal Revenue Code of 1986 for the purpose of providing an indoor sports facility in the downtown corridor
of the city of Salina. The purpose of the facility is to cater to local residents as well as host regional sports
tournaments with the anticipation of becoming a regional destination for youth athletics. Thi s mix of
participation is ex pected to provide the most consistent visitation and tourism for the downtown di strict. The
SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City
Commission. The field house is st affed by City of Salina employees. SFH QalicB has a December 31 fiscal
year end.SFH QalicB is a not-for-profit organization exempt from income tax under Section 50l(c)(3)of the
Internal Revenue Code and is exempt from similar state and local taxes.
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 Salina Field House
3237 Arnold Ave.the City of Salina QALICB, Inc.
Salina, KS 469 S. 5th 300 W. Ast St.
Salina, KS Salina, KS
Joint Ventures
The City of Salina al so participates with Saline County in one joint venture. The City and County organized
the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative
offices of both gov ernments. The primary gov ernments each have an ongoing financial responsibility for the
joint venture. Separate financial statements are available from the governing board of the joint venture.
32
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A.Reporting Entity (Continued)
Joint Ventures (Continued)
(Kansas Regulatory Basis)
Building
Authority
(Audited)
Total unencumbered cash, December 31, 2016 1,150,351$
Total change in unencumbered cash, year ended December 31, 2016 242,609
Total cash receipts, year ended December 31, 2016 1,208,449
Total cash receipts from City of Salina 449,083
Complete financial statements for the joint venture may be obtained at the entity’s administrative office.
Sal ina County-City
Bui lding Authority
300 West Ash Street
Sal ina, KS
B.Government-wi de and fund financial statements
The st atement of net position 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 st atements. Exceptions to this general rule are charges between the City’s
governmental and business-type activities. Elimination of these charges would di st ort 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 activ ities,
which rely to a significant extent on fees and charges for support. Likewise, the primary gov ernment is
reported separately from certain legally separate component units for whi ch the primary gov ernment is
financially accountable.
The st atement of activities demonstrates the degree to whi ch the direct expenses of a giv en function are
offset by program revenues. Direct expenses are those that are specifically associated with a serv ice,
program or department and therefore clearly identifiable to a particular function. Program revenues include
charges paid by the recipient of the goods or serv ices offered by the program and grants and contributions
that are restricted to meeting the operational requirements of a particular program. Tax es 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,
ev en though the latter are excluded from the gov ernment-wide financial statements. Maj or 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 gov ernment-wide financial st atements 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
ex penses 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.
33
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Rev enues are recognized as soon as they are both
measurable and av ailable. Rev enues are considered to be av ailable when they are collectible wi thin 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.
Ex penditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as ex penditures related to certain compensated absences and claims and
judgments are recognized when the obligations are expected to be liquidated with ex pendable av ailable
financial resources.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so hav e 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.
Ex penditure-driven grants are recognized as revenue when the qualifying expenditures hav e been incurred
and all other grant requirements have been met.
Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net
position. Proprietary funds di stinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and serv ices 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 serv ice
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 serv ice 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 hav e 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 gov ernment, whi ch are not required
legally,or by sound financial management to be accounted for in another fund.
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.
Sales tax capital fund -To account for 93% of the .40 cent sales tax designated for capital, debt, and human
services purposes.
Schilling capital improvement fund -To account for the funding prov ided by U.S. Gov ernment and Public
Entities and the remedial investigation, feasibility st udy and expenditures necessary to abate groundwater
contamination beneath the property formerly identified as Schilling Air Force Base.
34
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Debt serv ice 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.
Capital projects fund -To account for the acquisition and construction of major capital facilities other than
those financed by proprietary funds and trust funds.
SFH QalicB fund -To account for the activ ities of Salina Field House Qualified Active Low-Income
Community Business, Inc. as a component unit blended into the financial statements.
The City reports the following major proprietary funds:
Sanitation fund -To account for the operations of the City's refuse collection service.
Solid waste di sposal 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, Fund Balance, and Net Position
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 av ailable in certificates of deposit and other
authorized investments. Inv estments 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 compl eted,
apportioned or di st ributed to the various subdivisions until the succeeding year, such procedure being in
conformity with gov erning state statutes. Consequently, current year property taxes receivable are not
av ailable 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 2017. 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.
35
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
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 wi thin the County. In accordance with st ate
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property tax es are levied and liens against property are pl aced on November 1 of the
year prior to the fiscal year for whi ch 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 av ailable 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 st ate
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, whi ch include property, pl ant, equipment and infrastructure assets, are reported in the
applicable gov ernmental or business-type activ ities columns in the government-wi de financial statements.
Capital assets are defined by the gov ernment 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
hist orical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation. Capital assets used in gov ernmental fund types of the City are recorded at
cost or estimated hi storical 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 gov ernment, are depreciated using the straight-line method
ov er the following estimated useful lives:
Assets Years
Buildings 50
Other equipment 5 -15
Vehicles 6 -10
Infrastructure 30 -50
36
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (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
leav e that can be accumulated. Employees with more than five years of serv ice 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 em ployees are entitled to paid vacation time. Such leave is granted each year of employment.
Employees must use 50% of leave accrued each calendar year and an employee's maximum accrued
vacation leave balance cannot exceed 250 hours (or 350 hours for employees working 24 hour shifts).
Employees are paid for all accumulated vacation leave at their current wage scale upon termination of
em ployment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable av ailable financial
resources is reported as an expenditure and a fund liability in the gov ernment fund financial st atements that
will pay it. A liability for these amounts is reported in gov ernmental funds onl y if they hav e matured, for
ex ample, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the
business-type funds and gov ernment wide financial st atements 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, 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 hav e 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 gov ernment-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 position. 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 di scount. Bond
issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial st atements, gov ernmental fund types recognize bond premiums and di scounts, 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 di scounts 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.
37
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
8. Fund Balances
In the fund financial statements, gov ernmental funds report fund bal ance in the following classifications:
nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes
am ounts that cannot be spent because they are either not in spendable form or legally or contractually
required to be maintained intact. Restricted fund balance indi cates that constraints hav e been placed on the
use of resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations
of other gov ernments or imposed by law through constitutional prov isions or enabling legislation. Committed
fund bal ances include amounts that can only be used for specific purposes pursuant to constraints imposed
by formal action of the city commission. Assigned fund balances include amounts that are constrained by the
City management’s intent to be used for specific purposes, but are neither restricted nor committed.
Unassigned fund balance represents fund bal ance that has not been assigned to other funds and that has
not been restricted, committed, or assigned to specific purposes within the General Fund. When an
ex penditure is incurred for purposes for whi ch both restricted and unrestricted fund balance is av ailable
restricted amounts are considered to be spent first.When an ex penditure is incurred for purposes for whi ch
committed, assigned, or unassigned fund balance is av ailable, the following is the order in which resources
will be expended: committed, assigned and unassigned.
The following is the detail for fund balance classifications in the financial statements:
Tourism Schilling Other Total
and Special Sales Tax Capital Debt Capital SFH Governmental Governmental
General Convention Gas Capital Im provement Service Projects QalicB Funds Funds
Fund Balances:
Nonspendable for:
Inventory 131,278$ -$ -$ -$ -$ -$ -$ -$ -$ 131,278$
Restricted for:
Public works - - 710,671 - - - - - - 710,671
Public health and sanitation - - - - - - - - 134 134
Culture and recreation - - - - - - - - 104,904 104,904
Planning and development - 183,517 - - - - - - 210,949 394,466
Debt payments - - - - - 1,248,914 - - 683,034 1,931,948
Committed for:
Public safety - - - - - - - - 217,108 217,108
Culture and recreation - - - - - - - - 684,996 684,996
Planning and development - - - - - - - - 14,463 14,463
Cemetery - - - - - - - - 483,505 483,505
Capital improvements - - - 1,056,648 3,767,688 - - 6,810,985 1,248,648 12,883,969
Assigned for:
General government 6,968 - - - - - - - - 6,968
Public safety 58,537 - - - - - - - 9,283 67,820
Public works 35,794 - - - - - - - - 35,794
Culture and recreation - - - - - - - - 27,740 27,740
Capital improvements 34,611 - 101,454 610,401 293,477 - - - - 1,039,943
Unassigned:4,765,168 - - - - - [6,823,305] - - [2,058,137]
Total Fund Balances 5,032,356$ 183,517$ 812,125$ 1,667,049$ 4,061,165$ 1,248,914$ [6,823,305]$ 6,810,985$ 3,684,764$ 16,677,570$
Major Governmental Funds
38
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
9. Deferred Outflows/Inflows of Resources
In addition to asset s, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement el em ent, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. The City reports a def erred charge on bond
issuance reported in the gov ernment-wide statement of net position. A def erred charge on bond issuance
results from the difference in the carrying value of the debt and its reacquisition price. This am ount is
deferred and am ortized ov er the life of the debt.Additionally, the City reports changes in the pension
liability proportion and contributions made to the pension plan after the measurement date of the net
pension liability as deferred outflows of resources in the gov ernment activities.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement el em ent, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (rev enue) until that time.Unavailable revenue –property taxes, is reported in the
gov ernmental funds balance sheet and the governmental activities in the government-wide statement of
net position. Additionally, the City reports differences between expected and actual experience, differences
between projected and actual investment earnings, changes in assumptions, and changes in the pension
liability proportion as deferred inflows for governmental activities.These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
10. 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 rev enues and expenses during the reporting period.
Actual results could differ from those estimates.
11. Net Position
Net position represents the difference between assets and liabilities. Net investment in capital assets
consists of capital assets, net of accumulated depreciation, reduced by the outstanding bal ances of any
borrowings used for the acquisition, construction or improvement of those assets. Net position is 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.
39
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A.Budgetary Information (Continued)
The st atutes 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 gov erning body may amend the budget at that time. The 2016 budget was amended for the
Tourism and Convention Fund, the Neighborhood Park Fund, the Bicentennial Center Fund, the Debt
Service Fund and the Sales Tax Economic Development Fund.
The st atutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such st atutes prohibit ex penditures in excess of the total amount of the adopted budget of
ex penditures 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 st atutory basis of accounting, in whi ch, revenues
are recognized when cash is receiv ed, and expenditures include di sbursements, accounts payable, and
encumbrances. Encumbrances are commitments by the municipality for future payments and are supported
by a document ev idencing 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, the SFH QalicB fund, non-major debt
service funds, trust funds, and the following special rev enue funds: Community Development Rev olv ing,
Downtown TIF District #1, South 9th CID, State Grants, 911 Communications, Kenwood Cove Capital,
Special Law Enforcement, Police Grants, Federal Grants, DARE Donations,War Memorial Maintenance,
Federal CARE Grant, Police Department Federal Forfeiture,Homeowners’ Assistance and Animal Shelter
Donations Funds. A legal operating budget is not required for the following Enterprise funds: Solid Waste
Disposal, W ater and Sewer, Sanitation and Golf Course 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 gov erning
body.
B.Statutory Violations
Actual ex ceeded budgeted expenditures at December 31, 2016 in the Tourism and Convention Fund,
Special Gas Fund, and Debt Service 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 hav e outstanding to 30 percent of the
assessed value of all tangible taxable property wi thin the city, as certified to the county clerk on the
proceeding August 25. At December 31, 2016, the st atutory limit for the City was $141,804,931, providing a
debt margin of $79,732,446.
40
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 3. RESTATEMENT OF EQUITY
Following the close of the previous fiscal year, it was discovered that sev eral capital assets were
misclassified or recorded. Accordingly, the beginning net position/fund balances were restated, the effects of
which are as follows:
Solid Waste Water and Central
Governmental Disposal Sewer Sanitation Golf Course Garage
Activities Fund Fund Fund Fund Fund
Net Position, December 31, 2015 106,703,403$ 6,067,348$ 77,648,903$ 1,295,686$ 217,315$ 33,893$
Capital Asset Adjustment 81,815 8,668 57,474 5,072 3,187 8,088
Net Position, December 31, 2015, Restated 106,785,218$ 6,076,016$ 77,706,377$ 1,300,758$ 220,502$ 41,981$
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 st atute requires that banks eligible to hold active funds hav e a main or branch bank in the county in
which the City is located or in a county adj acent 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 abov e
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 st atute 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.gov ernment or any
agency thereof, investment agreements with a financial institution the obligations of whi ch 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, 2016, the City has the following investments:
Investment Type Fair Value Rating
Kansas Municipal Investm ent Pool 305,523$ S&P AAAf/S1+
Total fair value 305,523$
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. gov ernment 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 wi th Kansas banks or wi th
primary government securities dealers.
41
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
A.Deposits and Investments (Continued)
The City’s investment policy provides direction on concentration risk. The City policy states that funds shall
be div ersified 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 di sbursement date and payroll date are cov ered 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" st rategy 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 adv antageous, it is allowable to sell investments to realize a gain due to price fluctuations; howev er,
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 ri sk require that the depository banks will maintain 100% security
in the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31 2016,
$8,280 of the City’s deposits were considered uncollateralized due to being in excess of federal depository
insurance limits and pledged collateral amounts.
Restricted cash is comprised of a construction account, an interest reserv e account (the "Interest
Reserv e"), and an ex pense reserv e account (the "Operating Reserv e")related to the SFH QalicB bl ended
component unit. The Interest Reserv e and the Operating Reserv e accounts are av ailable as part of the
loans payable financing (see Note 4E). As of December 31, 2016, the balance of the construction account,
Interest Reserv e, and Operating Reserv e was $7,874,303, $513,859, and $125,054, respectively.
42
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
B.Receivables
Receivables as of year-end, including the applicable allowances for doubtful accounts,are as follows:
Tourism
and Special Debt Other
General Convention Gas Service Governmental Subtotal
Primary Government
Receivables:
Accounts 5,394,341$ 409,037$ -$ -$ 7,682$ 5,811,060$
Taxes 9,304,642 - 322,752 2,551,045 - 12,178,439
Interest 24,930 - - - - 24,930
Gross receivables 14,723,913 409,037 322,752 2,551,045 7,682 18,014,429
Less: allowance for
uncollectibles [4,339,015] - - - [6,442] [4,345,457]
Total 10,384,898$ 409,037$ 322,752$ 2,551,045$ 1,240$ 13,668,972$
Solid Water
Waste and
Disposal Sewer Sanitation Total
Primary Government
Receivables:
Accounts 189,483$ 2,459,555$ 350,747$ 8,810,845$
Taxes - - - 12,178,439
Interest 16 - - 24,946
Gross receivables 189,499 2,459,555 350,747 21,014,230
Less: allowance for
uncollectibles - [1,129,299] [161,045] [5,635,801]
Total 189,499$ 1,330,256$ 189,702$ 15,378,429$
Component Units
Salina Airport Authority
Accounts 790,844$
Less: allowance for uncollectibles [1,500]
Total Salina Airport Authority 789,344
Salina Housing Authority
Accounts 16,176
Less: allowance for uncollectibles [1,000]
Interest 391
Total Salina Housing Authority 15,567
Total 804,911$
C.Interfund Receivables and Payables
The composition of interfund balances as of December 31, 2016, is as follows:
Fund Types Due From Due To
General Fund 27,374$ -$
Capital Projects Fund 63,817 -
SFH QalicB Fund - 63,817
Other Government Funds - 27,374
91,191$ 91,191$
The City uses interfund receivables and payables between the General Fund and Other Gov ernmental
Funds as needed when pooled cash is negative within a fund until investments mature or grant proceeds are
received. The interfund receivable and payable between the Capital Projects Fund and SFH QalicB Fund
reflect a payment owed to the City by the SFH QalicB blended component unit. All payables are cleared in
less than one year.
43
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D.Capital Assets
Capital asset activity for the year ended December 31, 2016, was as follows:
Balance Adj. Bal.Balance
12/31/2015 Adjustments 12/31/2015 Additions Retirements 12/31/2016
City governmental activities:
Governmental activities:
Capital assets, not being depreciated
Construction in progress 19,019,623$ [54,581]$ 18,965,042$ 20,272,224$ 8,426,324$ 30,810,942$
Land 23,263,030 4,999 23,268,029 733,830 - 24,001,859
Capital assets, being depreciated
Infrastructure 187,694,221 [618,195] 187,076,026 6,469,833 - 193,545,859
Buildings and improvements 41,939,147 [107,546] 41,831,601 1,767,803 - 43,599,404
Vehicles 9,539,020 [105,700] 9,433,320 384,208 265,589 9,551,939
Equipment, furniture and fixtures 5,828,831 [297,090] 5,531,741 227,013 129,796 5,628,958
Total capital assets 287,283,872 [1,178,113] 286,105,759 29,854,911 8,821,709 307,138,961
Less accumulated depreciation for:
Infrastructure 77,372,226 [645,162] 76,727,064 3,705,233 - 80,432,297
Buildings and improvements 17,829,924 [118,430] 17,711,494 1,030,755 - 18,742,249
Vehicles 6,152,825 [188,149] 5,964,676 697,193 258,168 6,403,701
Equipment, furniture and fixtures 4,687,564 [308,187] 4,379,377 189,205 129,795 4,438,787
Total accumulated depreciation 106,042,539 [1,259,928] 104,782,611 5,622,386 387,963 110,017,034
Governmental activities capital assets, net 181,241,333$ 81,815$ 181,323,148$ 24,232,525$ 8,433,746$ 197,121,927$
Business-type activities:
Capital assets, not being depreciated
Construction in progress 13,579,083$ 54,581$ 13,633,664$ 3,312,276$ 1,218,160$ 15,727,780$
Land 1,546,806 [4,999] 1,541,807 - - 1,541,807
Capital assets, being depreciated
Infrastructure 99,990,359 - 99,990,359 1,129,637 - 101,119,996
Buildings and improvements 22,579,933 - 22,579,933 - - 22,579,933
Vehicles 3,464,966 [81,073] 3,383,893 603,523 334,495 3,652,921
Equipment, furniture and fixtures 5,322,627 [127,912] 5,194,715 298,094 189,884 5,302,925
Total capital assets 146,483,774 [159,403] 146,324,371 5,343,530 1,742,539 149,925,362
Less accumulated depreciation for:
Infrastructure 37,136,941 - 37,136,941 3,104,161 - 40,241,102
Buildings and improvements 12,373,996 - 12,373,996 422,642 - 12,796,638
Vehicles 2,698,794 [96,071] 2,602,723 223,991 334,496 2,492,218
Equipment, furniture and fixtures 3,677,762 [137,733] 3,540,029 249,609 178,583 3,611,055
Total accumulated depreciation 55,887,493 [233,804] 55,653,689 4,000,403 513,079 59,141,013
Business-type activities capital assets, net 90,596,281$ 74,401$ 90,670,682$ 1,343,127$ 1,229,460$ 90,784,349$
44
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
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 73,142$
Public safety 611,781
Public works 4,052,195
Public health 24,687
Culture and recreation 855,388
Planning and development 5,193
Total depreciation 5,622,386$
Business-type Activities:
Solid W aste Disposal 859,217$
Water and Sewer 2,931,338
Sanitation 179,061
Golf Course Division 30,787
Total depreciation 4,000,403$
E.Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2016:
Restated
Balance Balance Amounts
January 1, December 31,Due Within
2016 Additions Deletions 2016 One Year
Governmental activities:
General obligation bonds 50,840,632$ 19,622,770$ 18,647,003$ 51,816,399$ 5,210,465$
Financing lease 479,366 - 158,192 321,174 163,306
Loans payable - 12,157,127 - 12,157,127 -
Accrued compensation 2,878,290 1,410,216 1,484,659 2,803,847 1,484,659
Temporary notes 5,995,000 11,505,000 5,995,000 11,505,000 6,890,000
Total 60,193,288$ 44,695,113$ 26,284,854$ 78,603,547$ 13,748,430$
Business-type activities:
General obligation bonds 8,539,772$ 2,200,000$ 3,099,391$ 7,640,381$ 1,119,947$
Revenue bonds 13,949,139 - 663,696 13,285,443 678,696
Loans payable 5,753,620 2,133,625 455,221 7,432,024 556,748
Accrued compensation 626,592 398,371 354,837 670,126 354,838
Total 28,869,123$ 4,731,996$ 4,573,145$ 29,027,974$ 2,710,229$
Component Units:
General obligation bonds 23,010,000$ 657,000$ 1,035,000$ 22,632,000$ 1,065,000$
Less unamortized discount [218,670] - [13,937] [204,733] -
Financing lease 55,696 - 55,696 - -
Special assessment debt 30,465 - 19,197 11,268 2,061
Total component units 22,877,491$ 657,000$ 1,095,956$ 22,438,535$ 1,067,061$
45
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
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 2007A, due 10/1/2027 6,545,000$ 4.25% to 4.625%360,000$
Internal Improvements 2008A, due 10/1/2023 3,720,000 3.25% to 4.00%250,000
Internal Improvements 2008B, due 7/1/2028 3,525,000 3.65% to 5.00%2,025,000
Internal Improvements 2009A, due 10/1/2029 23,695,000 2.00% to 5.00%7,363,872
Internal Improvements 2010A, due 10/1/2025 6,916,592 2.00% to 3.875%1,271,091
Internal Improvements 2010B, due 10/1/2023 7,973,044 0.50% to 3.00%2,870,869
Internal Improvements 2011A, due 10/1/2031 6,587,985 2.00% to 5.00%1,785,747
Internal Improvements 2012A, due 10/1/2027 2,383,903 1.00% to 2.45%1,813,862
Refunding 2012B, due 10/1/2020 3,817,108 1.00% to 1.40%1,391,053
Internal Improvements 2013A, due 10/1/28 1,369,380 3.00% to 4.00%1,167,505
Internal Improvements 2013B, due 10/1/33 4,485,073 0.60% to 3.65%3,786,812
Internal Improvements 2014A, due 10/1/34 7,839,050 2.50% to 3.75%6,702,145
Im provement and Refunding 2015A, due 10/1/35 7,157,688 2.00% to 4.00%6,846,054
Internal Improvements 2016A, due 10/1/36 6,681,766 2.00% to 3.00%6,681,766
Refunding 2016B, due 10/1/2031 15,141,004 2.00% to 5.00%15,141,004
Total general obligation bonds 59,456,780$
Revenue Bonds
Revenue 2011, due 10/1/31 16,193,925$ 2.00% to 4.60%13,285,443$
Total revenue bonds 13,285,443$
Temporary Notes
Series 2016-1, due 8/1/2017 6,890,000$ 0.65%6,890,000$
Series 2016-2, due 9/1/2019 4,615,000 1.00%4,615,000
Total temporary notes 11,505,000$
Loans Payable
Kansas Public W ater Supply, due 8/1/2034 9,330,000$ 2.12%5,298,399$
Kansas Public W ater Supply, due 8/1/2035 4,250,000 2.78%2,133,625
Dakotas & CNMC Notes, due 12/10/2050 12,640,000 1.58%12,157,127
Total loans payable 19,589,151$
Financing Lease, due 2/10/2017
Equipment, due 2/10/17 30,000$ 3.54%10,350$
Equipment, due 5/8/18 146,235 3.28%75,476
Software, due 10/10/18 456,370 3.19%235,348
321,174$
46
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
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 2009A, due 2029 2,025,000 4.31%2,025,000$
General Obligation 2009B, due 2026 6,080,000 5.00%4,030,000
General Obligation 2011A, due 2030 11,820,000 4.64%10,775,000
General Obligation 2011B, due 2031 2,505,000 4.28%2,505,000
General Obligation 2015A, due 2025 3,075,000 2.14%2,640,000
General Obligation 2016-1 Temp Note, due 2019 657,000 0.90%657,000
Less unamortized bond premium 42,930
Less unamortized bond discount [247,663]
Total general obligation bonds 22,427,267
Special Assessment Debt
Hangar 600 Sanitary Sewer, due 2021 27,599 4.47%11,268
Total special assessment debt 11,268
Total 22,438,535$
Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies:
Bonds Interest
Year Outstanding Due Total
2017 6,330,412$ 1,880,648$ 8,211,060$
2018 6,624,769 1,562,669 8,187,438
2019 6,529,769 1,347,357 7,877,126
2020 4,379,768 1,162,726 5,542,494
2021 4,084,516 1,041,707 5,126,223
2022-2026 18,235,743 18,235,743 36,471,486
2027-2031 8,991,439 1,208,876 10,200,315
2032-2036 4,280,364 322,801 4,603,165
Total 59,456,780$ 26,762,527$ 86,219,307$
General Obligation - Primary Government
47
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Bonds Interest
Year Outstanding Due Total
2017 1,065,000$ 934,057$ 1,999,057$
2018 1,090,000 904,849 1,994,849
2019 1,872,000 872,337 2,744,337
2020 1,255,000 827,989 2,082,989
2021 1,300,000 783,659 2,083,659
2022 1,350,000 731,064 2,081,064
2023-2027 7,545,000 2,701,006 10,246,006
2028-2031 7,155,000 819,200 7,974,200
Total 22,632,000$ 8,574,161$ 31,206,161$
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
2017 678,696$ 529,391$ 1,208,087$
2018 708,696 509,141 1,217,837
2019 728,696 487,991 1,216,687
2020 748,696 466,242 1,214,938
2021 773,696 798,696 1,572,392
2022-2026 4,323,480 1,738,821 6,062,301
2027-2031 5,323,483 743,320 6,066,803
Total 13,285,443$ 5,273,602$ 18,559,045$
Revenue Bonds - Primary Government
Annual debt service requirements to m aturity for temporary notes -to be paid through the issuance of general
obligation bonds:
Notes Interest
Year Outstanding Due Total
2017 6,890,000$ 96,191$ 6,986,191$
2018 - 46,150 623,119
2019 4,615,000 46,150 624,682
Total 11,505,000$ 188,491$ 8,233,992$
Temporary Notes - Primary Government
48
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for financing leases -to be paid from revenues:
Lease Interest
Year Outstanding Due Total
2017 163,306$ 10,350$ 173,656$
2018 157,868 5,071 162,939
Total 321,174$ 15,421$ 336,595$
Capital Lease - Primary Government
Kansas Public Water Supply Loans.The City has engaged in a loan with the Kansas Public Water Supply
Fund. The following di splays annual debt serv ice requirements to maturity for the loan payable to be paid
from service revenues, for the full proceeds amount:
Loans Interest
Year Outstanding Due Total
2017 556,748$ 296,507$ 621,622$
2018 569,693 283,562 623,119
2019 582,943 270,312 624,682
2020 596,506 256,749 626,245
2021 610,391 242,864 626,245
2022-2026 3,272,008 994,267 3,149,263
2027-2031 3,671,943 594,329 3,149,263
2032-2035 2,953,691 162,998 1,415,883
Total 12,813,923$ 3,101,588$ 10,836,322$
Kansas Water Supply Loans - Primary Government
Dakotas and CNMC Notes. Dakotas Note A -On July 27, 2016, a $6,016,500 promissory note with a
maturity date of December 10, 2050 was provided to SFH QalicB by Dakotas XXII, LLC. Interest accrues
on the unpaid principal balance at an interest rate of 1.582625% with annual interest only payments,
partially in arrears and partially in advance, commencing on December 10, 2016 and continuing on the
tenth day of each December thereafter through December 10, 2022. On July 27, 2023, payment of all
accrued and unpaid interest through July 27, 2023 is due. Commencing on December 10, 2023 and
continuing on the tenth day of each December thereafter through December 10, 2025, accrued and unpaid
interest shall be due and payable annually, partially in arrears and partially in adv ance for interest accruing
through the end of each calendar year. Commencing on December 10, 2026 and continuing through the
maturity date,annual payments of principal and interest in an amount equal to $293,276 are due. At
maturity, the entire outstanding principal balance pl us all accrued and unpaid interest thereon is due and
payable in full. The loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security
Agreement. As of December 31, 2016, the note balance was $6,016,500.
49
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Dakotas Note B -On July 27, 2016, a $2,623,500 promissory note with a maturity date of December 10,
2050 was provided to the SFH QalicB by Dakotas XXII, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December 10,2022. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December 10, 2026 and continuing through the maturity date,annual
payments of principal and interest in an am ount equal to $127,883 are due. At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2016, the note balance was $2,623,500.
CNMC Note A -On July 27, 2016, a $2,674,000 promissory note with a maturity date of December 10, 2050
was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December 10, 2022. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December 10, 2026 and continuing through the maturity date, annual
payments of principal and interest in an am ount equal to $130,345 are due.At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2016, the note balance was $2,674,000.
CNMC Note B -On July 27, 2016, a $1,326,000 promissory note with a maturity date of December 10, 2050
was provided to the SFH QalicB by CNMC Sub-COE 114, LLC. Interest accrues on the unpaid principal
balance at an interest rate of 1.582625% with annual interest only payments, partially in arrears and
partially in advance, commencing on December 10, 2016 and continuing on the tenth day of each
December thereafter through December I 0, 2022. On July 27, 2023, payment of all accrued and unpaid
interest through July 27, 2023 is due. Commencing on December 10, 2023 and continuing on the tenth day
of each December thereafter through December 10, 2025, accrued and unpaid interest shall be due and
payable annually, partially in arrears and partially in adv ance for interest accruing through the end of each
calendar year. Commencing on December I 0, 2026 and continuing through the maturity date, annual
payments of principal and interest in an am ount equal to $64,636 are due. At maturity, the entire
outstanding principal balance pl us all accrued and unpaid interest thereon is due and payable in full. The
loan may not be prepaid prior to July 27, 2023 and is secured by the Loan and Security Agreement. As of
December 31, 2016, the note balance was $1,326,000.
As of December 31, 2016, the principal balance of these four loans net of $482,873 of unamortized debt
issuance costs was $12,157,127.
50
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue:
Assessment Interest
Year Outstanding Due Total
2017 2,061$ 504$ 2,565$
2018 2,153 412 2,565
2019 2,249 315 2,564
2020 2,350 215 2,565
2021 2,455 110 2,565
Total 11,268$ 1,556$ 12,824$
Special Assessment Debt - Component Units
Special assessments. As prov ided 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 serv ice 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 serv ice fund. The
special assessments are not recorded as rev enue when levied against the respective property owners as
such amounts are not av ailable to finance current year operations. The special assessment debt is a
contingent obligation of the City to the extent of property owner defaults, which hav e hi st orically been
immaterial.
Defeased debt. On July 11, 2016, the City issued $13,750,000 in general obligation refunding bonds with
interest ranging from 2.00 to 5.00% to current refund all $185,000 of the outstanding Series 2006B general
obligation improvement bonds with an interest rate of 4.50% and to adv ance refund $2,925,000 of the
outstanding Series 2007A general obligation improvement bonds wi th interest rates ranging from 4.50 to
4.65%, $1,500,000 of the outstanding Series 2008A general obligation improvement bonds with interest rates
ranging from 3.75 to 4.00%, $4,425,000 of the outstanding Series 2009A general obligation improvement
bonds with interest rates ranging from 3.60 to 4.25%, $1,825,000 of the outstanding Series 2010A general
obligation improvement bonds wi th interest rates ranging from 3.30 to 3.875%and $3,275,000 of the
outstanding Series 2011A general obligation improvement bonds wi th interest rates ranging from 3.25 to
4.25%. The net proceeds were used to establish an escrow account inv ested in U.S. Gov ernment Securities
to pay the outstanding principal of the refunded debt and the interest due on the refunding general
obligation bonds. As a result, these portions of the adv ance refunded bonds were considered to be
defeased and the liability for the def eased bonds has been remov ed from the City's financial statements.
The combined refunding transactions resulted in an economic gain of $1,416,006 and a reduction of
$1,628,113 in future debt payments.
Premises lease.On July 27, 2016, SFH QalicB entered into a lease agreement with the City for the use of
the Salina Field House, as defined in the Net Lease agreement (the "Property"), under a direct financing
lease. The lease term is 30 years, as defined in the Net Lease agreement. Beginning on July 1, 2017 and
on the first day of each December thereafter through December 1, 2046, annual payments are due, in
adv ance, as specified in the Net Lease agreement.
As of December 31, 2016, no base rent on the lease had been earned by SFH QalicB and none was
payable by the City.
51
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Premises lease (continued).The following is a schedule, by year, of total minimum lease payments by the
City to SFH QalicB under the direct financing lease as of December 31, 2016:
2017 195,000$
2018 130,000
2019 130,000
2020 130,000
2021 130,000
2022-2026 1,397,500
2027-2031 3,250,000
2032-2036 3,250,000
2037-2041 3,250,000
2042-2046 2,925,000
14,787,500$
F. Operating Leases
On December 20, 2012, the City and Saline County jointly entered into a non-cancelable lease to finance a
$2,750,000 heating, ventilation and air conditioning (HVAC) upgrade at the Saline County-City Building
Authority. The City’s share of the lease agreement is 40% and will pay the lessor $1,100,000, plus interest,
through monthly payments of $7,827 over a term of 180 months. The total cost for this lease was $93,926 for
the year ended December 31, 2016. The future minimum lease payments for the lease are as follows:
Year Amount
2017 93,926$
2018 93,926
2019 93,926
2020 93,926
2021 93,926
2022-2026 469,633
2027 93,926
Total 1,033,189$
52
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
G. Reconciliation of Transfers
A reconciliation of interfund transfers follows:
Transfer In Transfer Out
Major Funds:
General fund 3,351,500$805,000$
Tourism and convention fund - 681,722
Special gas fund 160,000 -
Sales tax capital fund - 2,068,350
Debt service 2,245,988 -
Capital projects - 416,309
Salina Fieldhouse QALICB, Inc.416,309 -
Other governmental funds 1,307,896 -
Agency funds - 18,812
Solid waste disposal fund - 640,000
Water and sewer fund - 2,450,000
Sanitation fund - 491,500
Central garage fund 100,000 10,000
Total Transfers 7,581,693$7,581,693$
The City uses interfund transfers to share administrative costs between funds.
53
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION
A. Defined Benefit Pension Plan
Description of Pension Plan. The City participates in a cost-sharing multiple-employer pension plan (Pension
Plan), as defined in Governmental Accounting Standards Board Statement No. 67,Financial Reporting for
Pension Plans. The Pension Plan is administered by the Kansas Public Employees Retirement System
(KPERS), a body corporate and an instrumentality of the State of Kansas. KPERS prov ides benefit
provisions to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49:
Public employees, which includes:
State/School employees
Local employees
Police and Firemen
Judges
Substantially all public em pl oyees in Kansas are covered by the Pension Plan. Participation by local
political subdivisions is optional, but irrevocable once elected.
Those employees participating in the Pension Plan for the City are included in the Local em pl oyees group
and the Kansas Police and Firemen group.
KPERS issues a stand-alone comprehensiv e annual financial report, which is av ai lable on the KPERS
website at www.kpers.org.
Benefits. Benefits are established by statute and may only be changed by the State Legislature. Members
(except Police and Firemen) with ten or more years of credited service, may retire as early as age 55
(Police and Firemen may be age 50 with 20 years of credited service), with an actuarially reduced monthly
benefit. Normal retirement is at age 65, age 62 with ten years of credited service, or whenev er a member’s
combined age and years of service equal 85. Police and Firemen normal retirement ages are age 60 with
15 years of credited service, age 55 with 20 years, age 50 with 25 years, or any age with 36 years of
service.
Monthly retirement benefits are based on a statutory formula that includes final av erage salary and years
of service. When ending em pl oyment, members may withdraw their contributions from their individual
accounts, including interest. Members who wi thdraw their accumulated contributions lose all rights and
privileges of membership. For all pension coverage groups, the accumulated contributions and interest are
deposited into and disbursed from the membership accumulated reserv e fund as established by K.S.A. 74-
4922.
Members choose one of sev en payment options for their monthly retirement benefits. At retirement a
member may receive a lump-sum payment of up to 50% of the actuarial present value of the member’s
lifetime benefit. His or her monthly retirement benefit is then permanently reduced based on the amount of
the lump sum. Benefit increases, including ad hoc post-retirement benefit increases, must be passed into law
by the Kansas Legislature. Benefit increases are under the authority of the Legislature and the Governor of
the State of Kansas.
The 2012 Legislature made changes affecting new hires, current members and employers. A new KPERS 3
cash balance retirement plan for new hires starting January 1, 2015, was created. Normal retirement age for
KPERS 3 is 65 with five years of service or 60 with 30 years of serv ice. Early retirement is av ailable at age
55 with ten years of service, with a reduced benefit. Monthly benefit options are an annuity benefit based on
the account balance at retirement.
54
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
For all pension coverage groups, the retirement benefits are di sbursed from the retirement benefit payment
reserve fund as established by K.S.A. 74-4922.
Contributions. Member contributions are established by state law, and are paid by the em ployee
according to the provisions of Section 414(h) of the Internal Revenue Code. State law provides that the
employer contribution rates are determined based on the results of an annual actuarial valuation. The
contributions and assets of all groups are deposited in the Kansas Public Em pl oyees Retirement Fund
established by K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserv e basis.
For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in
contribution rates for KPERS em pl oyers. Annual increases in the em pl oyer contribution rates related to
subsequent benefit enhancements are not subject to these limitations. The statutory cap increase over the
prior year contribution rate is 1.1% of total payroll for the fiscal year ended June 30, 2016.
The actuarially determined em ployer contribution rates (not including the 1.00% contribution rate for the
Death and Disability Program) and the statutory contribution rates are as follows:
Actuarial Statutory Employer
Employer Rate Capped Rate
Local employees 9.18%9.18%
Police and Firemen 20.42%20.42%
Member contribution rates as a percentage of eligible compensation for the fiscal year 2016 are 5.00% or
6.00% for Local employees and 7.15% for Police and Firemen.
Employer Allocations. Although KPERS administers one cost-sharing multiple-em pl oyer defined benefit
pension plan, separate (sub) actuarial valuations are prepared to determine the actuarial determined
contribution rate by group. Following this method, the measurement of the collective net pension liability,
deferred outflows of resources, deferred inflows of resources, and pension ex pense are determined
separately for each of the following groups of the plan:
State/School
Local
Police and Firemen
Judges
To facilitate the separate (sub) actuarial valuations, KPERS maintains separate accounts to identify
additions, deductions, and fiduciary net position applicable to each group. The allocation percentages
presented for each group in the schedule of employer and nonemployer allocations are applied to amounts
presented in the schedules of pension amounts by em pl oyer and nonemployer.
The allocation percentages for the City’s share of the collective pension am ounts as of December 31,
2016, are based on the ratio of its contributions to the total of the employer and nonempl oyer contributions
of the group for the fiscal years ended December 31, 2016.
The contributions used exclude contributions made for prior service, ex cess benefits and irregular
payments. At June 30, 2016, the City’s proportion for the Local em pl oyees group was 0.761%, which was
a decrease of .003% from its proportion measured at June 30, 2015. At June 30, 2016, the City’s
proportion for the Police and Firemen group was 2.180%, which was an decrease of .078% from its
proportion measured at June 30, 2015.
55
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
Net Pension Liability. At December 31, 2016 and 2015, the City and its component units reported a liability
of $32,923,025 and $26,969,450, respectively, for its total proportionate share of the net pension liability
for the Local and Police and Firemen groups.
Actuarial Assumptions. The total pension liability was determined by an actuarial v al uation as of
December 31, 2015, which was rolled forward to June 30, 2016, using the following actuarial assumptions:
Assumptions Rate
Price inflation 3.00%
Wage inflation 4.00%
Salary increases, including wage increases 4% to 16.00%, including inflation
Long-term rate of return, net of investment expense, and
including price inflation 8.00%
Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table for Males and Females, with
adjustments to better match actual ex perience. Separate tables apply for males and females as well as
each group (State, School, Local, KP&F and Judges).
The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an
actuarial experience study conducted for three years ending December 31, 2012.
The long-term ex pected rate of return of pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment ex pense and inflation) are dev el oped for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage.
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2016 are summarized in the following table:
Long-Term Expected
Asset Long-Term Allocation Real Rate of Return
Global Equity 47.00%6.80%
Fixed Income 13.00%1.25%
Yield driven 8.00%6.55%
Real Return 11.00%1.71%
Real estate 11.00%5.05%
Alternatives 8.00%9.85%
Short-term investments 2.00%-0.25%
100.00%
Discount Rate. The di scount rate used to measure the total pension liability was 8.00%. The projection of
cash flows used to determine the discount rate assumed that contributions from pl an members will be
made at the contractually required rate. The State, School and Local em pl oyers do not necessarily
contribute the full actuarial determined rate. Based on legislation passed in 1993, the employer
contribution rates certified by the System’s Board of Trustees for these groups may not increase by more
than the statutory cap. The ex pected KPERS em pl oyer statutory contribution was modeled for future
years, assuming all actuarial assumptions are met in future years. Em pl oyers contribute the full actuarial
determined rate for Police & Firemen, and Judges. Future employer contribution rates were also modeled
for Police & Firemen and Judges, assuming al l actuarial assumptions are met in future years. Based on
those assumptions, the pension plan’s fiduciary net position was projected to be av ailable to make al l
projected future benefit payments of current pl an members. Therefore, the long-term ex pected rate of
return on pension pl an investments was applied to al l periods of projected benefit payments to determine
the total pension liability.
56
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The
following presents the City’s proportionate share of the net pension liability calculated using the di scount
rate of 8.00%, as well as what the City’s proportionate share of the net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower (7.00%) or 1-percentage point higher
(9.00%) than the current rate:
1% Decrease (7.00%)Discount Rate (8.00%)1% Increase (9.00%)
Local 16,133,645$ 11,770,698$ 8,071,258$
Police & Firemen 27,780,931 20,251,513 13,890,027
Total 43,914,576$ 32,022,211$ 21,961,285$
Pension Expense. For the year ended December 31, 2016, the City recognized Local pension expense of
$942,841 and Police and Firemen pension expense of $2,265,896, which includes the changes in the
collective net pension liability, projected earnings on pension plan investments, and the am ortization of
deferred outflows of resources and deferred inflows of resources for the current period.The Salina
Housing Authority’s and Salina Airport Authority’s portion of the Local pension expense were $20,212 and
$31,386, respectiv el y
Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2016, the City
reported def erred outflows of resources and def erred inflows of resources related to pensions for Local
and Police and Firemen groups from the following sources:
Deferred outflows Deferred inflows
Local of resources of resources
Differences between actual and expected experience 68,317$ 212,449$
Contributions subsequent to the measurement date 684,552 -
Net differences between projected and actual earnings on investments 1,390,471 -
Changes in assumptions - 110,108
Changes in proportion 355 422,261
Total 2,143,695$ 744,818$
Deferred outflows Deferred inflows
Police & Firemen of resources of resources
Differences between actual and expected experience 1,068,850$ 208,994$
Contributions subsequent to the measurement date 1,282,730 -
Net differences between projected and actual earnings on investments 2,651,551 -
Changes in assumptions - 124,852
Changes in proportion - 777,947
Total 5,003,131$ 1,111,793$
57
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
At December 31, 2016, the Salina Housing Authority and Salina Airport Authority reported deferred outflows
of resources and deferred inflows of resources related to pensions for Local and Police and Firemen groups
from the following sources:
Deferred outflows Deferred inflows Deferred outflows Deferred inflows
Local of resources of resources of resources of resources
Differences between actual and expected experience -$ 9,005$ 3,382$ 10,517$
Contributions subsequent to the measurement date 38,607 - 4,453 -
Net differences between projected and actual earnings on investments - 12,383 68,835 -
Changes in assumptions - 4,446 - 5,451
Changes in proportion 3,128 5,484 - 98,089
Total 41,735$ 31,318$ 76,670$ 114,057$
Airport AuthorityHousing Authority
$1,967,282 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2017. Amounts reported as deferred outflows of resources and deferred inflows
of resources related to pensions will be recognized in pension expense as follows:
Local Police & Firemen
Deferred Deferred
Year ended [Inflows] Outflows [Inflows] Outflows
December 31,Amount Amount Total
2017 [4,182]$ 354,352$ 350,170$
2018 [4,182] 354,352 350,170
2019 425,353 1,131,375 1,556,728
2020 293,074 710,761 1,003,835
2021 4,262 57,768 62,030
Total 714,325$ 2,608,608$ 3,322,933$
$41,735 and $6,417 reported as deferred outflows of resources related to pensions resulting from Salina
Housing Authority and Salina Airport Authority contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended December 31, 2017. Am ounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Housing Airport
Authority Authority
Deferred Deferred
Year ended [Inflows] Outflows [Inflows] Outflows
December 31,Amount Amount Total
2017 28,215$ [21,570]$ 6,645$
2018 [10,392] [21,570] [31,962]
2019 3,546 1,749 5,295
2020 [561] 4,648 4,087
2021 [10,391] [644] [11,035]
Total 10,417$ [37,387]$ [26,970]$
58
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
B. Deferred Compensation Plan
The City offers its employees a deferred compensation pl an ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, av ailable to all City employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not av ailable to employees until termination,
retirement, death, or unforeseeable emergency. Plan assets are transferred to a pl an agent in a custodial
trust and are not available to the claims of the City's general creditors.
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 hi s 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 hav e occurred. Settlements hav e not
ex ceeded 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 av ailable to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in ex cess of $250,000 ($350,000 for claims involving
em ployees 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 av ailable financial resources. Of the
liability, $194,806 is considered to be due within one year.
Changes in the balances of claims liabilities during the past two years are as follows:
2016 2015
Unpaid claims, January 1 281,601$ 342,362$
Incurred claims (including
IBNRs)947,583 844,704
Claim payments [974,030] [905,465]
Unpaid claims, December 31 255,154$ 281,601$
The City established a limited risk management program for employee health and dental insurance in 1997.
The program cov ers eligible City employees. Premiums are pai d into the health insurance fund by all other
funds and are av ailable to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy cov ers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
am ounts of payouts and other economic and social factors. The liability for claims and judgments is reported
in the Health Insurance Fund because it is expected to be liquidated with ex pendable av ailable financial
resources. Therefore, all of the liability is considered to be due within one year. Changes in the balances of
claims liabilities during the past two years are as follows:
59
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
D. Risk Management (Continued)
2016 2015
Unpaid claims, January 1 275,440$ 529,215$
Incurred claims (including
IBNRs)3,951,548 3,826,243
Claim payments [3,932,655][4,080,018]
Unpaid claims, December 31 294,333$ 275,440$
E. Contingent Liabilities
The City receives si gnificant financial assistance from numerous federal and st ate gov ernmental agencies in
the form of grants and st ate pass-through ai d. The di sbursement 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. Howev er, in the opinion of management, any such di sallowed claims would not hav e a
material effect on any of the financial statements of the City at December 31, 2016.
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 hav e a
material adverse effect on the financial condition of the City.
F. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to pl ace a final cover on its landfill site when it st ops
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 pai d 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
ex pense of the solid waste fund in each period based on landfill capacity used as of each balance sheet
date. The $1,917,849 reported as landfill closure and postclosure care liability at December 31 represents
the cumulative amount reported to date based on the use of 28.8% of the estimated capacity of the landfill.
The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of
$4,735,824 as the remaining estimated capacity is filled over the remaining life expectancy of 147 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2016. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has el ected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
60
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
G. Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the
project authorization including allowable interest revenue to total project ex penditures from project inception
to December 31, 2016.
Project Authorization Expenditures
Markley-Magnolia VV Sewer 5,150,000$ 200,718$
Cloud from Ohio to Levee 155,014 69,242
Downtown Wellfield 9,330,000 5,858,132
Water Main Replacements 23,000,000 8,773,214
Ninth and Cloud Intersection Realignment 1,100,000 1,048,542
S Well Field Imp Feasibility Study 214,300 88,993
Bicentennial Center Improvements 10,200,000 12,067,254
Lakewood Middle School Safe Route 81,375 56,422
Bicentennial Center Owners Rep 96,000 84,000
Water Well 13 & 14 Maintenance 52,184 44,252
Centennial Rd, Jumper Rd to S City 1,280,382 1,261,283
Pavement Condition Survey 36,222 33,909
Community Fieldhouse 6,937,827 8,632,926
Community Fieldhouse 713,858 733,992
WasteWater Treatment Plant Feasibil 154,395 136,752
Channel Road Erosion Repairs - 58,858
Microsurfacing 713,575 693,245
2016 Mill & Inlay 1,011,175 1,011,302
Rebuild High Service Pump P-203 24,187 6,259
Remote Telemetry Units @ 4 booster 97,835 491
Sanitary Sewer Rehabilitation 952,000 365
2016 Water Meters 30,000 18,128
2017 Country Club Road Improvements 84,596 71,352
Neal & Broadway Storm Sewers 39,928 306
2016 Water Main Replacement 1,995,235 600,144
WA & WW Extension to Co Expo Site 377,000 333
Grad Prairie Addition Phase II - 1,500
Dowtown STAR District 58,000 31,783
Downtown CID - Alley - 1,159
Downtown TIF - 1,944
H. Environmental Matters
The Kansas Department of Health and Env ironm ent (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring rem edi ation at the Salina Public Water Supply Wells 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
ov er the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
61
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
The U.S. Department of Defense transferred property located at the former Schilling Air Force Base (the
Base or Site) to the City on or about September 9, 1966.The property is now known to contain areas of
extensive soil and groundwater contamination, which is a result of the use and di sposal of chlorinated
solvents during military operations at the Base from 1942 until Base closure in 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 (Corps)
is the lead agency for the Department at formerly used defense sites.The Corps has investigated the soil
and groundwater contamination at the Site under the regulatory ov ersight of the U.S. Environmental
Protection Agency (EPA)and the Kansas Department of Health and Env ironment (KDHE).The Site is not
designated as a National Priority Li st Superfund si te, but investigation and remediation are required to be in
compliance with the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
Potential liability for contamination under CERCLA extends broadly to parties associated with the release or
presence of hazardous substances, including not only those entities involv ed 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 Site, the City is potentially liable under CERCLA,
although the City believes that it has meritorious defenses to such liability.
The City is considered to be a Potentially Responsible Party (PRP) for the Site, primarily due to its st atus as
a property owner.The Salina Airport Authority, City of Salina, Unified School District No. 305 and the Kansas
Board of Regents (Kansas State Univ ersity at Salina) (collectively Salina Public Entities) currently own ov er
90% of the nearly 4,000 acres of the Base property.No third party has asserted any claim for bodily injury or
property damage.
Beginning in August 2007, the Salina Public Entities initiated settlement negotiations with the U.S. Federal
Government.The negotiation objectives at that time included transferring the responsibility for completing
the cleanup from the U.S.to the Salina Public Entities.The local objective was to reach a settlement
agreement with the U.S.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, by and through its env ironmental consultant, prepared
a detailed Cost to Complete Estimate (CTC). The CTC preparation included consultation wi th the EPA and
KDHE.The Salina Public Entities’ CTC was completed in June of 2008 and submitted to the Corps.
Subsequently, on January 23, 2009, the Salina Public Entities delivered a dem and letter to the Corps.The
letter dem anded that settlement negotiations begin immediately with the U.S. Department of Justice.On
May 14, 2009 the City was notified that the Corp referred the Base 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 pl anned to file suit
against the U.S. if the matter was not settled by the end of May, 2010. The Salina Public Entities di d not
intend to cut off settlement negotiations by the filing of suit, and this has been communicated to the U.S.No
remedial action plan or record of decision has been adopted by the 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: Count I Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(2), Count
II Citizen Suit Claim Pursuant to 42 U.S.C.§ 9659(a)(1), Count III Claim for Recov ery of Response Costs
Pursuant to 42 U.S.C.§ 9607(a) and Count IV Claim for Declaratory Judgment Pursuant to 42 U.S.C.§
9613(g)(2).
62
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
H. Environmental Matters (Continued)
On or about October 6, 2010, Defendants filed their motion to di sm iss and to strike, primarily with respect to
the citizen suit claims. On or about March 25, 2011, Judge Murguia entered hi s 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 st rike the Salina
Public Entities' allegations of a conflict of interest. The Salina Public Entities' claims under Counts III 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, if necessary, pl an 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 agreed on a mediation to di scuss settlement. The mediation sessions occurred in October 2011,
and the mediation di scussions continued for ov er a year. The parties hav e now agreed upon a partial
settlement. The partial settlement includes payment by the U.S. in exchange for performance by the Salina
Public Entities of a remedial investigation/feasibility study through entry of a Corrective Action Decision by
KDHE (the "W ork"). The present cost estimate of the Work is less than $10,000,000. The agreement is that
the U.S. will pay 90% of the cost of the Work with the Salina Public Entities responsible for payment of the
remaining 10%. It is anticipated that the agreed share of the Salina Public Entities will be pai d by the City.
Also,the claims and counterclaims in the lawsuit have been dismissed without prejudice with provisions tolling
any and all st atutes of limitation. No party is obligated under the settlement agreement to implement the
Corrective Action Decision upon its entry by KDHE, and the parties will either negotiate an agreement to
implement such Corrective Action Decision or refile their claims in court. The Salina Public Entities hav e
entered into a Consent Agreement and Final Order ("CAFO") with KDHE, which is conditioned upon the U.S.'s
payment to the City. On May 2, 2013, the U.S.Di strict Court for the District of Kansas entered its Consent
Decree. City of Salina, Kansas, et al. v. United States of America, et al., Case No. 1 0-CV -2298 CM/DJW .
The Court's Consent Decree approved the settlement among the parties. The current st atus is that the U.S.
wire transferred $8,426,700 to the account of the City, and the City added the share of the Salina Public
Entities in the amount of $936,300 to the account.
The Remedial Investigation (RI) portion of the CAFO scope of work was completed during Q1 2018. The
Feasibility Study portion of the CAFO scope of work was al so completed during Q1 2018. The Feasibility
Study (FS) and Proposed Plan (PP) portions of the CAFO scope of work are scheduled to be completed
during Q2 2018 and submitted to KDHE. The Corrective Action Decision (CAD) document is scheduled to be
issued by KDHE during Q4 2018.
Although the claims and counterclaims in the lawsuit hav e been dismissed without prejudice, the City
intends to vigorously pursue its claims that the U.S. should implement the Correctiv e Action Decision upon
its entry by KDHE and its def enses against any claims brought against it. Based on presently known
information, the City has determined that while a possible liability exists, at this time no reasonable estimate of
the possible liability can be made. Therefore, no liability related to that matter has been recorded.
63
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
I. Postemployment Health Care Plan
Plan Description. The City operates a si ngl e em ployer defined benefit healthcare pl an administered by the
City. The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligi ble early retirees and
their spouses. KSA 12-5040 requires all local gov ernmental entities in the st ate 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 $257,000 to the Plan (approximately 100% of total premiums) through
their required contribution of $532 per month for retiree-only coverage and $1,428 for family coverage.
Annual OPEB Cost and Net OPEB Obligation. The City’s annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance wi th the parameters of GASB Statement 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the City’s annual OPEB cost for the Plan for the year, the
am ount actually contributed to the plan, and the changes in the City’s net OPEB obligation to the Plan:
Annual required contribution 593,760$
Interest on Net OPEB Obligation 140,520
Adjustment to Annual Required Contribution [156,134]
Annual OPEB cost (expense)578,146
Benefit payments [257,000]
Change in net OPEB obligation 321,146
Net OPEB obligation - beginning of year 4,684,005
Net OPEB obligation - end of year 5,005,151$
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, 2016 was as follows:
Annual
Fiscal Annual OPEB Net
Year OPEB Cost OPEB
Ended Cost Contributed Obligation
December 31, 2013 570,434$ 148,000$ 3,986,743$
December 31, 2014 534,877 185,000 4,336,620
December 31, 2015 556,385 209,000 4,684,005
December 31, 2016 578,146 257,000 5,005,151
Funding Status and Funding Progress. As of the year ended December 31, 2016, the most recent actuarial
valuation date, the Plan was not funded. The actuarial accrued liability for benefits was $5,538,770 and the
actuarial value of asset was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $5,538,770. The
covered payroll (annual payroll of active empl oyees covered by the pl an) was $28,245,887, and the ratio of
the UAAL to the covered payroll was 23.83%.
64
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
I.Postemployment Health Care Plan (Continued)
Actuarial valuations of an ongoing plan involv e estimates of the value of reported amounts and assumptions
about the probability of occurrence of ev ents far into the future. Examples include assum ptions about future
em ployment, 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 wi th 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 pl an as understood by the employer and the pl an participants) and include the types of
benefits provided at the time of each valuation and the hi storical pattern of sharing of benefit costs between
the employer and pl an 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 calcul ations.
In the year ended December 31, 2016, actuarial valuation, the projected unit credit actuarial cost method was
used. The actuarial assumptions include a 3.00% investment rate of return, whi ch is the rate of the
em ployer’s own investments as there are no plan assets and an initial annual medical and dental healthcare
cost trend of 6.60%, reduced by decrements to an ultimate rate 4.50% after eighty years. The UAAL is being
am ortized as a level dollar over an open thirty-year period.
J.Tax Abatements
Tax Increment Financing (TIF).TIFs are an economic development tool established by the Kansas TIF Act
(K.S.A. 12-1770 et seq.) and subject to City policy to aid in financing projects for substantial public benefit.
Public benefits can include creating jobs or retaining existing employment, eliminating blight, strengthening the
em ployment and economic base of the City, increasing property values and tax revenues, reducing pov erty,
creating economic st ability, upgrading older neighborhoods, facilitating economic self-sufficiency, promoting
projects that are of community wide importance, or implementing the economic development goals of the City.
The program works by reimbursing a portion of the incremental increase in property taxes resulting from
improvements and a portion of local sales tax generated within the di st rict to the property owner. The base
value, or what the property was valued at prior to improvements, is shielded from the rebate.
To receive a TIF, applicants must submit a detailed, written proposal to the City, which will undergo due
diligence and analysis before being considered by the City Commission. The City Commission then
determines if it will commence the statutory process to create a redevelopment district.
If the TIF di strict is authorized, the City and applicant will enter into an agreement that specifies performance,
certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible
ex penses and compliance with agreement provisions. Once the project begins to generate TIF rev enues
(sales tax and/or property tax), City staff works with the di st ributing agency and property owner to generate
and track reimbursements. Because reimbursements are not paid until after improvements are put in place,
agreement compliance is met, eligible expenses are certified, and sales and/or property tax di stributions are
made to the City, there are no prov isions for recapturing tax es. The City of Salina negotiates TIFs on an
individual basis.
65
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
J. Tax Abatements (Continued)
District Purpose Base Year Expires Sales Tax Property Tax
Lambertz
Construction of 10.79 acres of
shopping center, including single
and multi-tenant retail space, and
related public and private
infrastructure 2007 2027 166,512$ 247,645$
Total 166,512$ 247,645$
TIF Project Plans
2016 Reimbursements
Community Improvement Districts (CID). CIDs are an economic dev elopment tool established by the Kansas
CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the dev elopment of community
improvements which can benefit a dev elopment and the public. In all CIDs, public improvements were
financed initially by the developer and are reimbursed annually via a two percent (2%) transportation di strict
sales tax on retail or taxable services occurring within the district.
To establish a CID, the applicant first submits a CID petition which is si gned by the owners of all of the land
within the proposed district. The City Commission then considers the request to establish a CID.
If the CID is authorized, the City and applicant will enter into an agreement that specifies performance,
certification, and reimbursement requirements. City Staff will work with the property owner to certify eligible
ex penses and compliance with agreement prov isions. Once the project begins to generate CID revenues,
City Staff works with the distributing agency and property owner to make and track reimbursements. Because
reimbursements are not pai d until after improvements are put in place, agreement compliance is met, eligible
ex penses are certified, and CID sales tax di stributions are made to the City, there are no provisions for
recapturing taxes. The City of Salina negotiates CIDs on an individual basis.
2016 Eligible
Reimbursement
Name Rate Start Expires Purpose Amount*
South 9th Street 2.00%3/1/2016 12/31/2037
Assist with improvements
to hotel and conference
center 110,902$
Total 110,902$
* Reimbursement was not actually paid to developer until Jan. 2018
Community Improvement District (CID)
Neighborhood Revitalization Areas (NRA).NRAs are authorized under Kansas state st atutes K.S.A. 12-117
and subject to City policy to spur investment and rev italization of properties which can benefit a neighborhood
and the public. The program works by rebating a portion of the incremental increase in property taxes resulting
from improvements back to the property owner. The base value, or what the property was valued at prior to
improvements, is shielded from the rebate. Participation in the program and percentage of rebate and
duration are determined separately by the City, County, and School District. The current City of Salina
adopted plan is a 4 year plan running from 2014 –2018. It allows for a 10 year rebate and provides rebates
from 25% to 100% depending on year in plan and type of improvement. To receive an NRA, taxpayers must
submit an application, which undergoes due diligence and analysis before being approved by the City. If the
NRA is approved, each year, the applicant must submit proof that property tax es hav e been paid in full.
Because the rebate is not given until after improvements are put in place and property taxes paid, there are no
provisions for recapturing taxes. The City of Salina approves NRAs on an individual basis.
66
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2016
Note 5. OTHER INFORMATION (Continued)
K.Deficit Fund Balance
The Capital Projects Fund maintained a deficit fund balance of $[6,823,305] at December 31, 2016, as did the
following nonmajor funds: State Grants Fund -$[4,560] and Police Grants Fund -$[31,960].
L.Subsequent Events
On July 18, 2017, the City issued Series 2017-1 temporary notes in the amounts of $2,180,000. The
temporary notes will be used to finance various capital projects. The maturity date of the temporary notes is
August 1,2018 and the interest rate on the notes is 2.00%.
On July 19, 2017, the City issued Series 2017-A general obligation internal improvement bonds in the
am ounts of $9,310,000. The bonds will be used to retire Temporary Note 2016-1 that matures on August 1,
2017 and to finance various capital projects. The City will make the first payment on the bonds on April 1,
2018 and the last payment on October 1, 2037. The interest rate on the bonds ranges from 3.00% to 3.375%.
REQUIRED SUPPLEMENTARY INFORMATION
67
CITY OF SALINA, KANSAS
OTHER POST-EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
Schedule of Employer Contributions:
Annual
Fiscal Annual OPEB Net
Year OPEB Cost OPEB
Ended Cost Contributed Obligation
December 31, 2013 570,434$ 148,000$ 3,986,743$
December 31, 2014 534,877 185,000 4,336,620
December 31, 2015 556,385 209,000 4,684,005
December 31, 2016 578,146 257,000 5,005,151
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)
12/31/2013 -$ 5,579,912$ 5,579,912$ 0.0%22,283,185$ 25.04%
12/31/2014 - 5,538,770 5,538,770 0.0%22,156,127 25.00%
12/31/2015 - 5,538,770 5,538,770 0.0%22,958,300 24.13%
12/31/2016 - 5,538,770 5,538,770 0.0%23,245,887 23.83%
68
CITY OF SALINA, KANSAS
KPERS PENSION PLAN
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
December 31, 2016
Schedule of the City’s Proportionate Share of the Net Pension Liability
Last Ten Fiscal Years*
Police and Police and
Local Firemen Local Firemen
12/31/15 12/31/15 12/31/16 12/31/16
City's proportion of the net pension liability 0.764%2.258%0.761%2.180%
City's proportionate share of the net pension liability 10,027,679$16,395,794$11,770,699$20,251,512$
City's covered-employee payroll 12,931,197$10,161,866$13,371,550$10,799,898$
City's proportionate share of the net pension liability
as a percentage of its covered-employee payroll 77.55%161.35%88.03%187.52%
Plan fiduciary net position as a percentage of the total pension liability 71.98%74.60%68.55%69.30%
* - The amounts presented for each fiscal year were determined as of 12/31. Data became
available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of
data is unavailable.
Schedule of the City’s Contributions
Last Ten Fiscal Years*
Police and Police and
Local Firemen Local Firemen
12/31/15 12/31/15 12/31/16 12/31/16
Contractually required contribution 1,256,217$ 2,527,995$ 1,243,711$ 2,361,273$
Contributions in relation to the contractually
required contribution 1,256,217 2,527,995 1,243,711 2,361,273
Contribution deficiency [excess]-$ -$ -$ -$
City's covered-employee payroll 13,251,236$10,730,033$13,548,056$10,593,419$
Contributions as a percentage of covered
employee payroll 9.48%23.56%9.18%22.29%
* - Data became available with the inception of GASB 68
during fiscal year 2015, therefore 10 years of data is
unavailable.
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
69
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.
Bicentennial center fund -To account for the activities of the City's convention center.
Business improvement di strict 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.
Ex penditures 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 rev enues, whi ch 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.
Community dev elopment revolv ing fund -To account for funds, whi ch may be loaned for housing and economic
development,purposes, to later be repaid and reused on a revolving basis.
Sales tax economic dev elopment fund -To account for 12.5% of the 1/4 cent sales tax designated for economic
Development purposes.
911 communications fund -To account for transitioning the receipt and administration of 911 fees to the City from
the Kansas Department of Revenue and Saline County, as the City is now the public answering point. Monies will be
used to pay for 911 related services.
Downtown TIF District #1 fund -To account for revenues and expenditures related to the Tax Increment Financing
District that was formed as part of the Downtown Revitalization Project.
South 9th CID fund -To account for incremental sales tax revenues received and disbursed back to the developer as
part of the Community Improvement District formed in 2015.
State Grants fund -To account for grant revenue and expenditures received from the State of Kansas.
Kenwood cov e capital fund -To account for the Special Sales Tax proceeds to be used to provide for long-term
capital maintenance activity at the facility.
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
Federal grants fund -To account for grants received from the federal government to be used to monitor and mediate
fair housing complaints.
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.
Federal CARE grant fund -To account for revenue and expenses associated with the CARE Grant.
Police Department federal forfeiture funds -To account for revenue and expenses associated with federal Equitable
Sharing Program funds.
Homeowners’ assistance fund -To receive donations and/or other funds to assist low and moderate income persons
in improving their homes.
Animal shelter donations fund –To accumulate donations and account for expenses to benefit the animal shelter.
70
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 onl y earnings, not
principal, may be used for purposes that support the reporting government’s programs.
Cemetery endowment fund -To account for amounts ex pended 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 2,570,760$ 489,281$ 683,034$ 3,743,075$
Receivables
Accounts 1,240 - - 1,240
Total assets 2,572,000$ 489,281$ 683,034$ 3,744,315$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 32,177$ -$ -$ 32,177$
Due to other funds 27,374 - - 27,374
Total liabilities 59,551 - - 59,551
Fund balances:
Restricted 315,987 - 683,034 999,021
Committed 2,159,439 489,281 - 2,648,720
Assigned 37,023 - - 37,023
Total fund balances 2,512,449 489,281 683,034 3,684,764
Total liabilities and fund balances 2,572,000$ 489,281$ 683,034$ 3,744,315$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
See independent auditor's report on the financial statements.
71
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
REVENUES
Taxes 473,389$ -$ -$ 473,389$
Intergovernmental 1,041,904 - 573,608 1,615,512
Charges for services 469,834 10,300 - 480,134
Licenses and permits 6,600 - - 6,600
Investment revenue 23,368 17 124 23,509
Donations 141,110 - - 141,110
Miscellaneous 71,152 - - 71,152
Total revenues 2,227,357 10,317 573,732 2,811,406
EXPENDITURES
Current
Culture and recreation 1,669,855 - - 1,669,855
Public safety 256,523 - - 256,523
Public health and sanitation 373,956 - - 373,956
Planning and development 118,885 - - 118,885
Miscellaneous - 35 - 35
Debt service
Principal retirement - - 845,000 845,000
Interest and other charges - - 131,585 131,585
Capital outlay 442,022 - - 442,022
Total expenditures 2,861,241 35 976,585 3,837,861
Excess [deficiency] of revenues
over [under] expenditures [633,884] 10,282 [402,853] [1,026,455]
Other financing sources [uses]
Transfers in 1,307,896 - - 1,307,896
Transfers [out]- - - -
Total other financing sources [uses]1,307,896 - - 1,307,896
Net change in fund balance 674,012 10,282 [402,853] 281,441
Fund balance - Beginning of year 1,838,437 478,999 1,085,887 3,403,323
Fund balance - End of year 2,512,449$ 489,281$ 683,034$ 3,684,764$
For the Year Ended December 31, 2016
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.
72
Business Special
Bicentennial Improvement Neighborhood Parks &
Center District Park Recreation
ASSETS
Cash and investments 41,393$ 7,961$ 48,644$ 132,644$
Receivables
Accounts - 1,240 - -
Total assets 41,393$ 9,201$ 48,644$ 132,644$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 52$ -$ 300$ -$
Due to other funds - - - -
Total liabilities 52 - 300 -
Fund balance:
Restricted - 9,201 - 104,904
Committed 41,341 - 48,344 -
Assigned - - - 27,740
Total fund balance [deficit]41,341 9,201 48,344 132,644
Total liabilities and fund balances 41,393$ 9,201$ 48,644$ 132,644$
December 31, 2016
NONMAJOR SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
CITY OF SALINA, KANSAS
Community Sales Tax Downtown
Special Development Economic TIF South State 911
Alcohol Revolving Development District #1 9th CID Grants Communications
134$ 184,431$ 1,104,402$ 13,076$ 122,467$ -$ 281,673$
- - - - - - -
134$ 184,431$ 1,104,402$ 13,076$ 122,467$ -$ 281,673$
-$ -$ -$ -$ -$ 1,344$ 24,994$
- - - - - 3,216 -
- - - - - 4,560 24,994
134 184,431 - - - - -
- - 1,104,402 13,076 122,467 [4,560] 256,679
- - - - - - -
134 184,431 1,104,402 13,076 122,467 [4,560] 256,679
134$ 184,431$ 1,104,402$ 13,076$ 122,467$ -$ 281,673$
73
See independent auditor's report on the financial statements.
Kenwood Special
Cove Law Police Federal
Capital Enforcement Grants Grants
ASSETS
Cash and investments 63,909$ 2,880$ -$ 3,254$
Receivables
Accounts - - - -
Total assets 63,909$ 2,880$ -$ 3,254$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable [8,000]$ -$ 7,802$ -$
Due to other funds - - 24,158 -
Total liabilities [8,000] - 31,960 -
Fund balance:
Restricted - - - -
Committed 71,909 2,880 [31,960] 3,254
Assigned - - - -
Total fund balance [deficit]71,909 2,880 [31,960] 3,254
Total liabilities and fund balances 63,909$ 2,880$ -$ 3,254$
COMBINING BALANCE SHEET
CITY OF SALINA, KANSAS
December 31, 2016
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
Police
War Federal Department Animal
DARE Memorial Arts &CARE Federal Homeowners'Shelter
Donations Maintenance Humanities Grant Forfeiture Funds Assistance Donations Totals
14,897$ 32,293$ 157,978$ 17,317$ 98$ 8,703$ 332,606$ 2,570,760$
- - - - - - - 1,240
14,897$ 32,293$ 157,978$ 17,317$ 98$ 8,703$ 332,606$ 2,572,000$
434$ -$ 3,846$ -$ -$ -$ 1,405$ 32,177$
- - - - - - - 27,374
434 - 3,846 - - - 1,405 59,551
- - - 17,317 - - - 315,987
14,463 32,293 154,132 - [9,185] 8,703 331,201 2,159,439
- - - - 9,283 - - 37,023
14,463 32,293 154,132 17,317 98 8,703 331,201 2,512,449
14,897$ 32,293$ 157,978$ 17,317$ 98$ 8,703$ 332,606$ 2,572,000$
74
See independent auditor's report on the financial statements.
Business Special
Bicentennial Improvement Neighborhood Parks &
Center District Park Recreation
Revenues
Taxes -$ -$ -$ -$
Intergovernmental - - - 177,818
Charges for services - 79,121 - -
Licenses and permits - - 6,600 -
Investment revenue 18,667 19 113 268
Donations - - - -
Miscellaneous - - - -
Total Revenues 18,667 79,140 6,713 178,086
Expenditures
Current
Culture and recreation 724,354 - - -
Public safety - - - -
Public health and sanitation - - - -
Planning and development - 77,421 - -
Capital outlay 805 - 81,078 128,742
Total Expenditures 725,159 77,421 81,078 128,742
Excess [deficiency] of revenues over
[under] expenditures [706,492] 1,719 [74,365] 49,344
Other financing sources [uses]
Transfers in 714,546 - - -
Transfers [out]- - - -
Total other financing sources [uses]714,546 - - -
Net change in fund balance 8,054 1,719 [74,365] 49,344
Fund balance, beginning of year 33,287 7,482 122,709 83,300
Fund balance, end of year 41,341$ 9,201$ 48,344$ 132,644$
For the Year Ended December 31, 2016
NONMAJOR SPECIAL REVENUE FUNDS
AND CHANGES IN FUND BALANCES
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
CITY OF SALINA, KANSAS
Community Sales Tax Downtown
Special Development Economic TIF South State 911
Alcohol Revolving Development District #1 9th CID Grants Communications
-$ -$ 347,178$ 13,045$ 113,166$ -$ -$
177,819 - - - - - 512,482
- - - - - - -
- - - - - - -
- 189 1,854 31 286 - 656
- - - - - - -
- - - - 9,015 - 3,345
177,819 189 349,032 13,076 122,467 - 516,483
- - - - - - -
- - - - - - 256,523
177,819 - - - - - -
- - - - - - -
- - 141,845 - - 4,560 -
177,819 - 141,845 - - 4,560 256,523
- 189 207,187 13,076 122,467 [4,560] 259,960
- - - - - - -
- - - - - - -
- - - - - - -
- 189 207,187 13,076 122,467 [4,560] 259,960
134 184,242 897,215 - - - [3,281]
134$ 184,431$ 1,104,402$ 13,076$ 122,467$ [4,560]$ 256,679$
75
See independent auditor's report on the financial statements.
Kenwood Special
Cove Law Police Federal
Capital Enforcement Grants Grants
Revenues
Taxes -$ -$ -$ -$
Intergovernmental - - - 7,000
Charges for services - - - -
Licenses and permits - - - -
Investment revenue - - - 8
Donations - - - -
Miscellaneous - - - -
Total Revenues - - - 7,008
Expenditures
Current
Culture and recreation - - - -
Public safety - - - -
Public health and sanitation - - - 3,773
Planning and development - - - -
Capital outlay 78,171 - 6,821 -
Total Expenditures 78,171 - 6,821 3,773
Excess [deficiency] of revenues over
[under] expenditures [78,171]- [6,821] 3,235
Other financing sources [uses]
Transfers in 68,350 - - -
Transfers [out]- - - -
Total other financing sources [uses]68,350 - - -
Net change in fund balance [9,821] - [6,821] 3,235
Fund balance, beginning of year 81,730 2,880 [25,139] 19
Fund balance, end of year 71,909$2,880$ [31,960]$ 3,254$
For the Year Ended December 31, 2016
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
AND CHANGES IN FUND BALANCES
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
CITY OF SALINA, KANSAS
Police
War Federal Department Animal
DARE Memorial Arts &CARE Federal Homeowners'Shelter
Donations Maintenance Humanities Grant Forfeiture Funds Assistance Donations Totals
-$ -$ -$ -$ -$ -$ -$ 473,389$
- - - 66,785 - - 100,000 1,041,904
- - 390,713 - - - - 469,834
- - - - - - - 6,600
- 75 368 40 - 20 774 23,368
- - - - - - 141,110 141,110
11,008 - 44,707 - - 3,077 - 71,152
11,008 75 435,788 66,825 - 3,097 241,884 2,227,357
- 595 944,906 - - - - 1,669,855
- - - - - - - 256,523
- - - - - - 192,364 373,956
2,741 - - 38,723 - - - 118,885
- - - - - - - 442,022
2,741 595 944,906 38,723 - - 192,364 2,861,241
8,267 [520] [509,118] 28,102 - 3,097 49,520 [633,884]
- - 525,000 - - - - 1,307,896
- - - - - - - -
- - 525,000 - - - - 1,307,896
8,267 [520] 15,882 28,102 - 3,097 49,520 674,012
6,196 32,813 138,250 [10,785] 98 5,606 281,681 1,838,437
14,463$ 32,293$ 154,132$ 17,317$ 98$ 8,703$ 331,201$2,512,449$
76
See independent auditor's report on the financial statements.
Cemetery Mausoleum Tricentennial
ASSETS Endowment Endowment Commission Total
Cash and investments 481,484$ 2,021$ 5,776$ 489,281$
Total assets 481,484$ 2,021$ 5,776$ 489,281$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable -$ -$ -$ -$
Total liabilities - - - -
Fund balances
Committed 481,484 2,021 5,776 489,281
Total liabilities and fund balances 481,484$ 2,021$ 5,776$ 489,281$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
December 31, 2016
NONMAJOR PERMANENT FUNDS
See independent auditor's report on the financial statements.
77
Cemetery Mausoleum Tricentennial
Endowment Endowment Commission Total
Revenues
Charges for services 10,300$ -$ -$ 10,300$
Investment revenue - 4 13 17
Total revenues 10,300 4 13 10,317
Expenditures
Miscellaneous 35 - - 35
Total expenditures 35 - - 35
Net change in fund balance 10,265 4 13 10,282
Fund balances - beginning of year 471,219 2,017 5,763 478,999
Fund balances - end of year 481,484$ 2,021$ 5,776$ 489,281$
NONMAJOR PERMANENT FUNDS
For the Year Ended December 31, 2016
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
See independent auditor's report on the financial statements.
78
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Investment revenue 18,668$ -$ -$ 18,668$
Total revenues 18,668 - - 18,668
Expenditures
Culture and recreation 724,354 542,968 800,000 75,646
Capital outlay 805 - - [805]
Total expenditures 725,159 542,968 800,000 74,841
Excess [deficiency] of revenues
over [under] expenditures [706,491] [542,968] [800,000] 93,509
Other financing sources [uses]
Transfers in 714,545 500,793 714,546 [1]
Total other financing sources [uses]714,545 500,793 714,546 [1]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]8,054 [42,175] [85,454] 93,508
Unreserved fund balance, January 1 33,287 50,793 91,751 [58,464]
Unreserved fund balance/GAAP fund balance
December 31 41,341$ 8,618$ 6,297$ 35,044$
Budgeted Amounts
See independent auditor's report on the financial statements.
79
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS)
BUSINESS IMPROVEMENT DISTRICT FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 81,492$ 90,000$ 90,000$ [8,508]$
Investment revenue 19 500 500 [481]
Total revenues 81,511 90,500 90,500 [8,989]
Expenditures
Planning and development 77,421 90,500 90,500 13,079
Total expenditures 77,421 90,500 90,500 13,079
Excess [deficiency] of revenues
over [under] expenditures 4,090 - - 4,090
Unreserved fund balance, January 1 3,871 - - 3,871
Unreserved fund balance, December 31 7,961 -$ -$ 7,961$
Reconciliation to GAAP
Accounts receivable 1,240
GAAP Fund Balance, December 31 9,201$
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)
NEIGHBORHOOD PARK FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Licenses and permits 6,600$ 20,000$ 10,000$ [3,400]$
Investment revenue 113 4,000 161 [48]
Total revenues 6,713 24,000 10,161 [3,448]
Expenditures
Capital outlay 81,078 24,000 100,000 18,922
Total expenditures 81,078 24,000 100,000 18,922
Excess [deficiency] of revenues
over [under] expenditures [74,365] - [89,839] 15,474
Unreserved fund balance, January 1 100,132 - 124,065 [23,933]
Prior year cancelled encumbrances 22,577 - - 22,577
Unreserved fund balance, December 31 48,344 -$ 34,226$ 14,118$
Reconciliation to GAAP
Current year encumbrances -
GAAP Fund Balance, December 31 48,344$
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)
SPECIAL PARKS AND RECREATION FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 177,818$ 180,000$ 180,000$ [2,182]$
Investment revenue 268 4,000 4,000 [3,732]
Total revenues 178,086 184,000 184,000 [5,914]
Expenditures
Capital outlay 156,482 209,932 209,932 53,450
Total expenditures 156,482 209,932 209,932 53,450
Excess [deficiency] of revenues
over [under] expenditures 21,604 [25,932] [25,932] 47,536
Other financing sources [uses]
Transfers [out]- [30,000] [30,000] 30,000
Total other financing sources [uses]- [30,000] [30,000] 30,000
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]21,604 [55,932] [55,932] 77,536
Unreserved fund balance, January 1 83,300 159,168 159,168 [75,868]
Unreserved fund balance, December 31 104,904 103,236$ 103,236$ 1,668$
Reconciliation to GAAP
Current year encumbrances 27,740
GAAP Fund Balance, December 31 132,644$
Budgeted Amounts
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)
SPECIAL ALCOHOL FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 177,819$ 180,205$ 180,205$ [2,386]$
Total revenues 177,819 180,205 180,205 [2,386]
Expenditures
Public health and sanitation 177,819 217,252 217,252 39,433
Total expenditures 177,819 217,252 217,252 39,433
Excess [deficiency] of revenues
over [under] expenditures - [37,047] [37,047] 37,047
Unreserved fund balance, January 1 134 37,047 37,047 [36,913]
Unreserved fund balance/GAAP fund balance
December 31 134$ -$ -$ 134$
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)
SALES TAX ECONOMIC DEVELOPMENT FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes 347,178$ 327,276$ 327,276$ 19,902$
Investment revenue 1,854 5,000 - 1,854
Total revenues 349,032 332,276 327,276 21,756
Expenditures
Capital outlay 141,845 378,704 750,000 608,155
Total expenditures 141,845 378,704 750,000 608,155
Excess [deficiency] of revenues
over [under] expenditures 207,187 [46,428] [422,724] 629,911
Unreserved fund balance, January 1 897,215 96,428 896,399 816
Unreserved fund balance/GAAP fund balance
December 31 1,104,402$ 50,000$ 473,675$ 630,727$
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)
ARTS & HUMANITIES FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 390,713$ 480,350$ 480,350$ [89,637]$
Investment revenue 368 2,000 2,000 [1,632]
Miscellaneous 44,707 500 500 44,207
Total revenues 435,788 482,850 482,850 [47,062]
Expenditures
Culture and recreation 944,906 1,206,124 1,206,124 261,218
Total expenditures 944,906 1,206,124 1,206,124 261,218
Excess [deficiency] of revenues
over [under] expenditures [509,118] [723,274] [723,274] 214,156
Other financing sources [uses]
Transfers in 525,000 599,034 599,034 [74,034]
Transfers [out]- [67,343] [67,343] 67,343
Total other financing sources [uses]525,000 531,691 531,691 [6,691]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]15,882 [191,583] [191,583] 207,465
Unreserved fund balance, January 1 138,250 191,583 191,583 [53,333]
Unreserved fund balance/GAAP fund balance
December 31 154,132$ -$ -$ 154,132$
Budgeted Amounts
See independent auditor's report on the financial statements.
85
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 2,961,758$ 3,003,084$ 2,961,758$ -$
Delinquent taxes 60,356 55,000 60,356 -
Motor vehicle taxes 337,108 320,045 337,108 -
Special assessments 1,687,506 1,555,000 1,687,506 -
Investment revenue 1,280 5,000 - 1,280
Miscellaneous - 141,704 - -
Total revenues 5,048,008 5,079,833 5,046,728 1,280
Expenditures
Debt Service
Principal retirement 4,899,597 4,764,105 5,568,074 668,477
Interest and other charges 2,169,661 2,121,413 1,467,426 [702,235]
Total expenditures 7,069,258 6,885,518 7,035,500 [33,758]
Excess [deficiency] of revenues
over [under] expenditures [2,021,250] [1,805,685] [1,988,772] [32,478]
Other financing sources [uses]
Issuance of bonds 513,476 - - 513,476
Transfers in 2,000,000 1,560,396 2,476,501 [476,501]
Total other financing sources [uses]2,513,476 1,560,396 2,476,501 36,975
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]492,226 [245,289] 487,729 4,497
Unreserved fund balance,
January 1 692,063 245,289 213,658 478,405
Unreserved fund balance
December 31 1,184,289 -$ 701,387$ 482,902$
Reconciliation to GAAP
Taxes receivable 2,551,045
Deferred revenue [2,486,420]
GAAP Fund Balance, December 31 1,248,914$
Budgeted Amounts
See independent auditor's report on the financial statements.
86
CITY OF SALINA, KANSAS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS)
SOLID W ASTE DISPOSAL FUND
For the Year Ended December 31, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 2,814,898$ 2,089,997$ 2,089,997$ 724,901$
Investment revenue 7,384 7,000 7,000 384
Miscellaneous 21,854 450,000 450,000 [428,146]
Total revenues 2,844,136 2,546,997 2,546,997 297,139
Expenditures
Public works 1,488,975 1,312,046 1,312,046 [176,929]
Total expenditures 1,488,975 1,312,046 1,312,046 [176,929]
Excess [deficiency] of revenues
over [under] expenditures 1,355,161 1,234,951 1,234,951 120,210
Other financing sources [uses]
Transfers [out][640,000] [2,153,287] [2,153,287] 1,513,287
Total other financing sources [uses][640,000] [2,153,287] [2,153,287] 1,513,287
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]715,161 [918,336] [918,336] 1,633,497
Unreserved fund balances, January 1 2,325,619 2,007,686 2,007,686 317,933
Unreserved fund balances, December 31 3,040,780$ 1,089,350$ 1,089,350$ 1,951,430$
Budgeted Amounts
See independent auditor's report on the financial statements.
87
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 19,143,820$ 20,515,900$ 20,515,900$ [1,372,080]$
Investment revenue 32,681 25,000 25,000 7,681
Miscellaneous 5,744 91,350 91,350 [85,606]
Total revenues 19,182,245 20,632,250 20,632,250 [1,450,005]
Expenditures
Public works 14,278,342 12,797,772 12,797,772 [1,480,570]
Total expenditures 14,278,342 12,797,772 12,797,772 [1,480,570]
Excess [deficiency] of revenues
over [under] expenditures 4,903,903 7,834,478 7,834,478 [2,930,575]
Other financing sources [uses]
Transfers in - 34,600 34,600 [34,600]
Transfers [out][5,183,230] [11,554,444] [11,554,444] 6,371,214
Total other financing sources [uses][5,183,230] [11,519,844] [11,519,844] 6,336,614
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][279,327] [3,685,366] [3,685,366] 3,406,039
Unreserved fund balances, January 1 9,442,241 8,453,406 8,453,406 988,835
Prior year cancelled encumbrances 66,418 - - 66,418
Unreserved fund balances, December 31 9,229,332$ 4,768,040$ 4,768,040$ 4,461,292$
Budgeted Amounts
See independent auditor's report on the financial statements.
88
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 2,694,655$ 2,550,000$ 2,550,000$ 144,655$
Investment revenue 2,470 3,500 3,500 [1,030]
Total revenues 2,697,125 2,553,500 2,553,500 143,625
Expenditures
Public works 2,198,322 1,616,060 1,616,060 [582,262]
Total expenditures 2,198,322 1,616,060 1,616,060 [582,262]
Excess [deficiency] of revenues
over [under] expenditures 498,803 937,440 937,440 [438,637]
Other financing sources [uses]
Transfers [out][491,500] [1,515,519] [1,515,519] 1,024,019
Total other financing sources [uses][491,500] [1,515,519] [1,515,519] 1,024,019
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]7,303 [578,079] [578,079] 585,382
Unreserved fund balance, January 1 1,034,076 947,951 947,951 86,125
Unreserved fund balances, December 31 1,041,379$ 369,872$ 369,872$ 671,507$
Budgeted Amounts
See independent auditor's report on the financial statements.
89
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 788,808$ 888,750$ 888,750$ [99,942]$
Investment revenue 237 - - 237
Miscellaneous 48,377 - - 48,377
Total revenues 837,422 888,750 888,750 [51,328]
Expenditures
Recreation 901,802 834,175 834,175 [67,627]
Total expenditures 901,802 834,175 834,175 [67,627]
Excess [deficiency] of revenues
over [under] expenditures [64,380] 54,575 54,575 [118,955]
Other financing sources [uses]
Transfers [out]- [92,610] [92,610] 92,610
Total other financing sources [uses]- [92,610] [92,610] 92,610
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][64,380] [38,035] [38,035] [26,345]
Unreserved fund balance, January 1 164,358 164,717 164,717 [359]
Unreserved fund balances, December 31 99,978$ 126,682$ 126,682$ [26,704]$
Budgeted Amounts
See independent auditor's report on the financial statements.
90
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 510,909$ 458,010$ 458,010$ 52,899$
Investment revenue 2,340 1,890 1,890 450
Miscellaneous 3,599 89 89 3,510
Total revenues 516,848 459,989 459,989 56,859
Expenditures
General government 262,661 1,140,594 1,140,594 877,933
Total expenditures 262,661 1,140,594 1,140,594 877,933
Excess [deficiency] of revenues
over [under] expenditures 254,187 [680,605] [680,605] 934,792
Unreserved fund balance, January 1 621,709 680,605 680,605 [58,896]
Unreserved fund balances, December 31 875,896$ -$ -$ 875,896$
Budgeted Amounts
See independent auditor's report on the financial statements.
91
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 6,729,682$ 6,730,350$ 6,730,350$ [668]$
Investment revenue 3,737 5,000 5,000 [1,263]
Miscellaneous 20,722 - - 20,722
Total revenues 6,754,141 6,735,350 6,735,350 18,791
Expenditures
General government 6,316,347 6,588,000 6,588,000 271,653
Total expenditures 6,316,347 6,588,000 6,588,000 271,653
Excess [deficiency] of revenues
over [under] expenditures 437,794 147,350 147,350 290,444
Unreserved fund balance, January 1 1,162,550 1,130,908 1,130,908 31,642
Unreserved fund balances, December 31 1,600,344$ 1,278,258$ 1,278,258$ 322,086$
Budgeted Amounts
See independent auditor's report on the financial statements.
92
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, 2016
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 1,222,926$ 12,782$ 12,782$ 1,210,144$
Investment revenue 45 40 40 5
Miscellaneous 5,284 - - 5,284
Total revenues 1,228,255 12,822 12,822 1,215,433
Expenditures
General government 1,322,012 1,741,432 1,741,432 419,420
Total expenditures 1,322,012 1,741,432 1,741,432 419,420
Excess [deficiency] of revenues
over [under] expenditures [93,757] [1,728,610] [1,728,610] 1,634,853
Other financing sources [uses]
Transfers in 100,000 1,755,000 1,755,000 [1,655,000]
Transfers [out][10,000] [66,150] [66,150] 56,150
Total other financing sources [uses]90,000 1,688,850 1,688,850 [1,598,850]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][3,757] [39,760] [39,760] 36,003
Unreserved fund balance, January 1 [14,821] 39,760 39,760 [54,581]
Unreserved fund balance, December 31 [18,578]$ -$ -$ [18,578]$
Budgeted Amounts
See independent auditor's report on the financial statements.
93
94
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal serv ice funds are used to account for the financing of goods or services prov ided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Workers' compensation reserve fund -To account for the costs of prov iding 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.
Total
Workers'Internal
Compensation Health Central Service
ASSETS Reserve Insurance Garage Funds
Current assets:
Cash and investments 1,004,882$ 1,600,344$ 19,294$ 2,624,520$
Inventory and prepaid supplies - - 189,886 189,886
Total current assets 1,004,882 1,600,344 209,180 2,814,406
Capital assets:
Capital assets - - 200,504 200,504
Less: accumulated depreciation - - 163,840 163,840
Total capital assets - - 36,664 36,664
Total assets 1,004,882 1,600,344 245,844 2,851,070
Deferred outflows of resources:
Pension - contributions subsequent to the measurement date - - 9,650 9,650
Pension - difference between expected and actual experience - - 956 956
Pension - net difference between projected and actual
earnings on pension plan investments - - 19,467 19,467
Pension - changes in proportion - - 5 5
Total deferred outflows of resources - - 30,078 30,078
Total assets and deferred outflows of resources 1,004,882$ 1,600,344$ 275,922$2,881,148$
Liabilities:
Current liabilities (payable from current assets):
Accounts payable -$ -$ 37,872$ 37,872$
Current portion of compensated absences payable - - 20,918 20,918
Current portion of accrued claims payable 194,806 294,333 - 489,139
Total current liabilities (payable from current assets)194,806 294,333 58,790 547,929
Noncurrent liabilities:
Compensated absences payable - - 18,587 18,587
Accrued claims payable 60,348 - - 60,348
Net pension liability - - 165,793 165,793
Total noncurrent liabilities 60,348 - 184,380 244,728
Total liabilities 255,154 294,333 243,170 792,657
Deferred inflows of resources
Pension - difference between expected and actual experience - - 2,974 2,974
Pension - changes of assumptions - - 1,542 1,542
Pension - change in proportion - - 6,042 6,042
Total deferred inflows of resources - - 10,558 10,558
Total liabilities and deferred inflows of resources 255,154$ 294,333$ 253,728$803,215$
Net Position
Invested in capital assets, net of related debt -$ -$ 36,664$ 36,664$
Unrestricted 749,728 1,306,011 [14,470] 2,041,269
Total net position 749,728$ 1,306,011$ 22,194$ 2,077,933$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2016
See independent auditor's report on the financial statements.
95
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Operating revenues
Charges for services 510,909$ 6,729,682$ 1,222,926$ 8,463,517$
Miscellaneous 3,600 20,722 4,473 28,795
Total operating revenues 514,509 6,750,404 1,227,399 8,492,312
Operating expenses
General government 236,214 6,335,240 1,324,737 7,896,191
Depreciation - - 13,304 13,304
Total operating expenses 236,214 6,335,240 1,338,041 7,909,495
Operating income [loss]278,295 415,164 [110,642] 582,817
Nonoperating revenues [expenses]
Investment revenue 2,340 3,737 45 6,122
Gain/[loss] on disposal of fixed assets - - 810 810
Total other operating revenues [expenses] 2,340 3,737 855 6,932
Income [loss] before transfers 280,635 418,901 [109,787] 589,749
Transfers from [to] other funds
Transfers in - - 100,000 100,000
Transfers [out] - - [10,000] [10,000]
Total transfers - - 90,000 90,000
Change in net position 280,635 418,901 [19,787] 679,749
Net position, January 1 469,093 887,110 33,893 1,390,096
Restatement - - 8,088 8,088
Net position, January 1, restated 469,093 887,110 41,981 1,398,184
Net position, December 31 749,728$ 1,306,011$ 22,194$ 2,077,933$
COMBINING STATEMENT OF REVENUES, EXPENSES
INTERNAL SERVICE FUND
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2016
AND CHANGES IN NET POSITION
See independent auditor's report on the financial statements.
96
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Cash flows from operating activities
Cash received from customers and users 484,462$ 6,748,575$1,222,927$8,455,964$
Cash paid to suppliers of goods or services [236,418] [6,335,410] [1,066,760] [7,638,588]
Cash paid to employees - - [275,345] [275,345]
Other operating receipts 3,600 20,722 4,473 28,795
Net cash provided by [used in] operating activities 251,644 433,887 [114,705] 570,826
Cash flows from investing activities
Interest received 2,340 3,737 44 6,121
Cash flows from capital and related financing activities
Proceeds from sale of capital assets - - 810 810
Net cash provided by [used in] capital - - 810 810
Cash flows from noncapital financing activities
Transfers in - - 100,000 100,000
Transfers [out]- - [10,000] [10,000]
Net cash provided by [used in] noncapital financing activities - - 90,000 90,000
Net increase [decrease] in cash and cash equivalents 253,984 437,624 [23,851] 667,757
Cash and cash equivalents, January 1 750,898 1,162,720 43,145 1,956,763
Cash and cash equivalents, December 31 1,004,882$ 1,600,344$19,294$ 2,624,520$
For the Year Ended December 31, 2016
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
97
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Reconciliation of operating [loss] income to net cash
provided by [used in] operating activities
Operating income [loss]278,295$ 415,164$[110,642]$ 582,817$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense - - 13,304 13,304
[Increase] decrease in inventory - - 4,203 4,203
[Increase] decrease in deferred outflows - - [20,793] [20,793]
Increase [decrease] in accounts payable [204] [170] [20,093] [20,467]
Increase [decrease] in accrued compensated absences - - 2,797 2,797
Increase [decrease] in net pension liability - - 24,403 24,403
Increase [decrease] in claims payable [26,447] 18,893 - [7,554]
Increase [decrease] in deferred inflows - - [7,884] [7,884]
Net cash provided by [used in] operating activities 251,644$ 433,887$[114,705]$ 570,826$
For the Year Ended December 31, 2016
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS (Continued)
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
98
99
CITY OF SALINA, KANSAS
AGENCY FUNDS
Agency funds are used to account for assets held by the gov ernment 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 sev erely damaged buildings
the insurance proceeds, pl us interest, are returned to the property owners when the buildings are repaired or
demolished.
Payroll clearing agency fund -To account for interfund payroll receiv abl es 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 hel d by the police department for use in
investigations.
Citizenship agency 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.
DTF federal forfeiture fund -To account for revenues and expenditures related to the sale of assets acquired during
drug enforcement activities as they relate to federal cases. Expenses are limited to equipment and training for the
Drug Task Force.
Beechcraft remediation settlement fund -To account for rev enues and expenditures related to the bankruptcy of
Beechcraft and the former Schilling Airforce Base remediation case.
Bail bond escrow fund -To account for funds being held in escrow for bonds issued by Municipal Court.
Special Fire Court Police Section DTF Beechcraft Bail
Assessment Insurance Payroll Bond and Investigation 125 Federal Remedition Bond
Escrow Proceeds Clearing Restitution Account Citizenship Plan Forfeiture Settlement Escrow Totals
ASSETS:
Cash and investments 80,917$ 63$ [320,981]$ 34,525$ 3,378$ 24,874$ 290,772$7$ 153,614$ 1,124$268,293$
Total assets 80,917$ 63$ [320,981]$ 34,525$ 3,378$ 24,874$ 290,772$7$ 153,614$ 1,124$268,293$
LIABILITIES:
Accounts payable 80,917$ 63$ [320,981]$ 34,525$ 3,378$ 24,874$ 290,772$7$ 153,614$ 1,124$268,293$
Total liabilities 80,917$ 63$ [320,981]$ 34,525$ 3,378$ 24,874$ 290,772$7$ 153,614$ 1,124$268,293$
December 31, 2016
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
AGENCY FUNDS
See independent auditor's report on the financial statements.
100
Balance Balance
December 31,December 31,
2015 Additions Deductions 2016
Cash and investments
Special Assessment Escrow 84,647$ 15,082$ 18,812$ 80,917$
Fire Insurance Proceeds 63 5,661 5,661 63
Payroll Clearing [303,463] - 17,518 [320,981]
Court Bond and Restitution 31,696 2,829 - 34,525
Police Investigation Account 3,376 2 - 3,378
Citizenship Trust 172 24,702 - 24,874
Section 125 Plan Fund 310,950 321,617 341,795 290,772
DTF Federal Forfeiture - 7 - 7
Beechcraft Remediation Settlement - 153,614 - 153,614
Bail Bond Escrow - 1,124 - 1,124
Total Assets 127,441$ 524,638$ 383,786$ 268,293$
Accounts Payable
Special Assessment Escrow 84,647$ 15,082$ 18,812$ 80,917$
Fire Insurance Proceeds 63 5,661 5,661 63
Payroll Clearing [303,463] - 17,518 [320,981]
Court Bond and Restitution 31,696 2,829 - 34,525
Police Investigation Account 3,376 2 - 3,378
Citizenship Trust 172 24,702 - 24,874
Section 125 Plan Fund 310,950 321,617 341,795 290,772
DTF Federal Forfeiture - 7 - 7
Beechcraft Remediation Settlement - 153,614 - 153,614
Bail Bond Escrow - 1,124 - 1,124
Total liabilities 127,441$ 524,638$ 383,786$ 268,293$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 2016
AGENCY FUNDS
See independent auditor's report on the financial statements.
101
ST AT ISTICAL SECTION
2010
Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %
Governmental activities
Net investment in capital
assets 115,029$90%118,965$93%101,974$85%113,001$96%109,289$93%112,929$94%116,585$90%115,589$ 90%130,401$ 122%124,635$108%
Restricted 1,609 1%1,212 1%1,174 1%988 1%1,712 1%1,082 1%1,210 1%876 1%1,224 1%1,738 1%
Unrestricted 11,356 9%7,745 6%16,706 14%3,808 3%6,333 5%5,511 5%11,628 9%11,413 9%(24,922) -23%(10,505) -9%
Total governmental activities
net position 127,994$100%127,922$100%119,854$100%117,797$100%117,334$100%119,522$100%129,423$100%127,878$ 100%106,703$ 100%115,868$100%
Business-type activities
Net investment in capital
assets 45,435$ 80%45,931$ 79%48,234$ 79%48,078$ 75%44,227$ 63%50,857$ 69%57,103$ 75%61,721$ 75%68,107$ 80%62,427$ 71%
Restricted 1,151 2%1,211 2%1,553 3%1,553 2%1,553 2%1,553 2%1,553 2%1,512 2%1,512 2%1,512 2%
Unrestricted 10,412 18%11,197 19%11,482 19%14,306 22%24,528 35%21,450 29%17,794 23%19,545 24%15,610 18%23,621 27%
Total business-type activities
net position 56,998$ 100%58,339$ 100%61,269$ 100%63,937$ 100%70,308$ 100%73,860$ 100%76,450$ 100%82,778$ 100%85,229$ 100%87,560$ 100%
Primary government
Net investment in capital
assets 160,464$87%164,896$89%150,208$83%161,080$89%153,516$82%163,786$85%173,688$84%177,311$ 84%198,508$ 103%187,062$92%
Restricted 2,761 1%2,423 1%2,727 2%2,541 1%3,216 2%2,635 1%2,763 1%2,388 1%2,736 1%3,250 2%
Unrestricted 21,768 12%18,942 10%28,188 16%18,115 10%30,867 16%26,961 14%29,422 14%30,959 15%(9,312) -5%13,116 6%
Total primary government net
position 184,992$100%186,261$100%181,123$100%181,736$100%187,599$100%193,382$100%205,873$100%210,658$ 100%191,932$ 100%203,428$100%
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
City of Salina, Kansas
201520122013
(in 000's)
20142008
(accrual basis of accounting)
Schedule 1
2016
Last Ten Fiscal Years
Net Position by Component
Fiscal Year
2007 2009 2011
102
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 6,732$ 6,791$ 14,664$ 10,845$ 13,614$ 11,278$ 10,978$ 12,550$ 10,743$ 9,188$
Public safety 16,877 18,440 16,539 18,592 18,579 19,066 19,649 20,208 21,084 22,232
Public works 9,258 9,706 9,781 9,782 9,858 10,957 11,064 11,401 9,049 9,773
Public health and sanitation 1,281 1,310 1,390 1,365 1,368 1,383 1,369 347 995 1,095
Culture and recreation 5,658 5,582 5,397 8,572 6,693 5,338 4,809 5,156 6,517 6,612
Planning and development 2,814 3,481 3,375 3,716 3,450 3,362 3,399 3,236 1,915 2,047
Interest on long term debt 1,295 1,454 - 2,256 1,650 1,914 1,953 1,817 1,774 2,971
Total governmental activities expenses 43,916 46,764 51,146 55,128 55,212 53,298 53,221 54,715 52,077 53,918
Business-type activities:
Solid waste disposal 2,088 2,008 2,287 3,010 2,945 2,067 3,532 1,870 1,766 2,335
Water and sewer 12,227 13,284 12,995 14,050 13,597 14,897 15,418 14,904 11,712 14,807
Sanitation 2,038 2,184 2,224 2,261 2,261 2,441 2,237 2,399 1,909 2,043
Golf course 884 884 897 817 825 723 768 843 821 792
Total business-type activities expenses 17,236 18,360 18,403 20,138 19,628 20,128 21,955 20,016 16,208 19,977
Total primary government expenses 61,153$ 65,124$ 69,549$ 75,266$ 74,840$ 73,426$ 75,176$ 74,731$ 68,285$ 73,895$
Program Revenues
Governmental activities:
Charges for services
General government 4,309$ 4,581$ 4,599$ 5,143$ 6,106$ 6,328$ 5,548$ 5,662$ 3,151$ 3,134$
Public safety 3,539 3,588 2,913 3,969 3,766 4,290 4,656 4,222 4,600 4,891
Public works 457 120 164 198 262 306 277 255 193 238
Public health and sanitation 33 39 42 37 43 46 34 46 46 44
Culture and recreation 2,050 2,139 1,936 2,817 3,140 1,728 1,466 1,533 1,501 1,638
Planning and development 101 240 267 144 153 158 161 167 73 140
Operating grants and contibutions 3,381 3,752 3,163 3,415 2,907 4,495 4,200 4,015 3,394 4,332
Capital grants and contributions - - - - - - - - - 733
Total governmental activities program revenues 13,871 14,458 13,084 15,723 16,377 17,351 16,342 15,900 12,958 15,150
Business-type activities:
Charges for services
Solid waste disposal 2,789 2,749 2,903 2,853 2,904 3,137 3,138 3,024 2,519 2,795
Water and sewer 14,054 14,073 14,980 16,520 17,904 19,099 17,938 18,742 19,059 19,322
Sanitation 2,112 2,172 2,292 2,310 2,334 2,462 2,514 2,553 2,529 2,751
Golf course 723 751 757 736 636 783 719 811 820 789
Operating grants and contributions - - - - 202 - - - - -
Capital grants and contributions - - - - 3,804 274 - 115 - -
Total business-type activities program revenues 19,678 19,744 20,932 22,419 27,784 25,755 24,309 25,245 24,927 25,657
Total primary government program revenues 33,549$ 34,202$ 34,016$ 38,142$ 44,161$ 43,106$ 40,651$ 41,145$ 37,885$ 40,807$
Net (Expense) Revenue
Governmental activities (30,046)$ (32,306)$ (38,062)$ (39,405)$ (38,835)$ (35,947)$ (36,879)$ (38,815)$ (39,119)$ (38,768)$
Business-type activities 2,442 1,384 2,529 2,281 8,156 5,627 2,354 5,229 8,719 5,680
Total primary government net expense (27,604)$ (30,922)$ (35,533)$ (37,124)$ (30,679)$ (30,320)$ (34,525)$ (33,586)$ (30,400)$ (33,088)$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, general purpose 7,376$ 7,818$ 9,019$ 7,803$ 7,783$ 8,272$ 8,031$ 8,315$ 8,242$ 8,196$
Property taxes, debt service 1,471 1,529 1,711 2,230 2,779 2,439 2,362 2,578 2,766 3,022
Motor vehicle taxes 1,131 1,195 1,135 1,145 1,150 1,153 1,200 1,250 1,312 1,370
Sales tax, general purpose 11,472 11,986 11,669 11,118 11,767 12,165 12,260 12,689 12,931 12,781
Selective sales tax 2,484 2,589 3,380 4,108 4,080 4,210 4,281 4,461 4,558 4,901
Other taxes 5,445 5,747 5,791 6,298 6,390 6,486 6,630 7,231 7,363 7,991
Investment revenues 1,255 805 277 81 77 66 67 98 86 148
Miscellaneous 890 812 505 565 872 660 9,918 1,160 2,371 5,842
Transfers, net 672 60 255 92 199 30 999 1 3,819 3,600
Total governmental activities 32,195 32,540 33,742 33,440 35,097 35,481 45,748 37,783 43,448 47,851
Business-type activities:
Investment revenues 641 300 242 67 84 79 49 51 56 78
Miscellaneous 201 118 352 341 330 434 279 97 - -
Reimbursements 180 132 79
Transfers, net (672) (60) (255) (92) (199) (30) (950) - (3,781) (3,581)
Total business-type activities 170 358 339 316 215 483 (622) 328 (3,593) (3,424)
Total primary government 32,366$ 32,898$ 34,081$ 33,756$ 35,312$ 35,964$ 45,126$ 38,111$ 39,855$ 44,427$
Change in Net Position
Governmental activities 2,150$ 234$ (4,320)$ (5,965)$ (3,738)$ (466)$ 8,869$ (1,032)$ 4,329$ 9,083$
Business-type activities 2,612 1,742 2,868 2,597 8,371 6,110 1,732 5,557 5,126 2,256
Total primary government 4,762$ 1,976$ (1,452)$ (3,368)$ 4,633$ 5,644$ 10,601$ 4,525$ 9,455$ 11,339$
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
(accrual basis of accounting)
Last Ten Fiscal Years
Changes in Net Position
City of Salina, Kansas
Schedule 2
(in 000's)
Fiscal Year
103
2007 2008 2009 2010 2012 2013 2014 2015 2016
General Fund
Reserved 396$ 274$ 508$ 99$ -$ -$ -$ -$ -$ -$
Nonspendable - - - - 90 116 81 107 111 131
Restricted - - - - - - - - - -
Committed - - - - - - - - - -
Assigned - - - - 293 540 331 239 199 136
Unreserved/unassigned 6,935 5,756 4,580 3,518 3,454 3,172 3,138 3,908 4,530 4,765
Total general fund 7,331$ 6,030$ 5,088$ 3,617 3,837$ 3,828$ 3,550$ 4,254$ 4,840$ 5,032$
Restatement 156
Restated fund balance 3,773$
All other governmental funds
Reserved 2,796$ 3,951$ 11,092$ 6,413$ -$ -$ -$ -$ -$ -$
Nonspendable - - - - - - - - - -
Restricted - - - - 3,611 3,319 3,446 2,910 2,793 3,142
Committed - - - - 127 (516) 7,486 9,886 8,695 14,284
Assigned - - - - 4,323 4,087 3,146 1,280 619 1,043
Unreserved/unassigned 2,946 354 4,024 (1,130) - - - - (10,537) (6,823)
Total all other governmental funds 5,742$ 4,305$ 15,116$ 5,283$ 8,061$ 6,890$ 14,078$ 14,076$ 1,570$ 11,646$
Note 1: Prior year amounts have not been restated for the implementation of GASB Statement 54 in fiscal year 2011.
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
Fiscal Year
2011
(Note 1)
Schedule 3
City of Salina, Kansas
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
104
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues
Taxes (see Schedule 5)29,379$ 30,788$ 32,706$ 32,702$ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$
Intergovernmental 3,363 3,741 3,153 3,404 2,901 4,487 4,192 4,008 3,385 4,325
Special assessments 1,444 1,178 1,269 1,385 1,535 2,315 1,706 1,810 1,679 1,669
Licenses and permits 18 10 10 11 6 8 9 7 10 7
Charges for services 7,131 7,415 6,767 8,934 9,730 8,484 8,536 8,276 6,416 6,953
Investment revenue 983 490 210 64 69 47 40 59 47 142
Reimbursements 153 39 140 70 32 36 9,015 123 491 1,406
Donations 241 83 141
Miscellaneous 650 597 438 448 599 537 810 799 1,853 4,315
Total revenues 43,120 44,258 44,693 47,018 48,821 50,638 59,072 51,846 51,135 57,219
Expenditures
General government 2,842 3,600 3,007 3,549 3,461 3,574 4,269 3,986 5,342 5,422
Public safety 16,175 17,945 17,883 18,229 18,118 18,564 19,155 19,559 21,268 21,664
Public works 6,171 6,593 6,643 6,634 6,569 7,004 7,220 7,443 5,333 5,778
Public health and sanitation 1,245 1,276 1,353 1,332 1,330 1,343 1,344 319 982 1,078
Culture and recreation 5,204 5,142 4,947 5,777 5,900 4,449 3,939 4,292 5,659 5,817
Planning and development 2,707 3,377 3,269 3,609 3,344 3,256 3,293 3,232 1,910 2,042
Miscellaneous - - - 32 - - - - - -
Capital outlay 7,615 10,581 17,707 18,603 9,847 7,327 13,047 11,009 25,527 24,001
Debt service
Principal 4,806 2,812 4,667 5,959 4,411 8,592 5,038 5,261 6,250 17,902
Interest 1,266 1,567 1,596 2,258 2,084 2,103 1,867 1,864 1,833 3,152
Deposit to escrow - - - 107 - 92 - - - -
Total expenditures 48,031 52,892 61,072 66,089 55,064 56,304 59,172 56,965 74,104 86,856
Other financing sources (uses)
Bonds and notes issued 6,545 7,245 23,695 7,034 6,565 6,150 5,690 5,365 6,825 34,892
Bond and note premium 80 1,369 47 23 60 185 302 369 1,503
Transfers in 2,349 2,823 3,617 5,076 7,994 3,488 4,907 3,001 7,642 7,065
Transfers out (1,737) (2,763) (3,422) (4,984) (5,692) (3,458) (3,907) (2,999) (3,913) (3,555)
Issuance costs - - - - - - - - -
Other 91 - - - 156 - - - - -
Total other financing
sources (uses)7,248 7,385 25,259 7,173 9,046 6,240 6,875 5,669 10,923 39,905
Net change in fund balance 2,337$ (1,250)$ 8,880$ (11,898)$2,803$ 574$ 6,775$ 550$ (12,046)$ 10,268$
Debt service as a percentage
of non-capital expenditures 18%12%17%21%17%28%18%18%20%50%
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
Schedule 4
City of Salina, Kansas
Changes in Fund Balances, Governmental Funds
105
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Real estate 8,662$ 9,084$ 9,971$ 9,756$ 10,288$ 10,466$ 10,145$ 10,657$ 10,729$ 10,972$
Delinquent 185 263 760 278 274 245 248 235 279 246
Motor vehicle 1,131 1,120 1,135 1,145 1,150 1,153 1,200 1,250 1,312 1,370
General sales 11,472 11,986 11,669 11,117 11,767 12,165 12,260 12,689 12,931 12,781
Selective sales 2,484 2,589 3,380 4,108 4,080 4,210 4,281 4,461 4,558 4,901
Other taxes 5,445 5,747 5,791 6,298 6,390 6,485 6,630 7,231 7,362 7,991
Total taxes 29,379$ 30,788$ 32,706$ 32,702$ 33,949$ 34,724$ 34,764$ 36,523$ 37,171$ 38,261$
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
Fiscal Year
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
Schedule 5
City of Salina, Kansas
Tax Revenues by Source, Governmental Funds
106
Assessed Value
Fiscal
(Budget)
Year Real Estate
Personal
Property State Assessed
Total, Excluding
Motor Vehicles Tax Rate
Motor Vehicle
(Note 1)
Total, Taxable
Assessed Value
Estim ated Total
Market Value
(Note 2)
Ratio of
Assessed
Value to Est.
Market Value
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$15.48
2011 367,750,803$ 19,918,188$ 14,685,585$ 402,354,576$ 26.022 47,406,062$ 449,760,638$ 2,869,531,746$15.67
2012 369,416,422$ 18,654,394$ 15,779,466$ 403,850,282$ 26.272 47,553,744$ 451,404,026$ 2,884,188,981$15.65
2013 370,390,092$ 17,769,120$ 16,948,264$ 405,107,476$ 26.927 48,882,411$ 453,989,887$ 2,889,385,914$15.71
2014 376,131,346$ 13,652,885$ 17,670,147$ 407,454,378$ 27.080 48,865,900$ 456,320,278$ 2,917,267,724$15.64
2015 381,087,426$ 12,607,815$ 18,984,453$ 412,679,694$ 27.311 50,350,566$ 463,030,260$ 2,957,531,741$15.66
2016 389,872,825$ 11,653,719$ 19,323,055$ 420,849,599$ 27.603 51,833,505$ 472,683,104$ 3,046,949,034$15.51
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 tax effort.
Note 3: The Direct rate is expressed in dollars per thousand dollars of assessed value.
Source: 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 assessed at 33% of market value, except for railroads, which are assessed at 15% of market value.
Schedule 6
City of Salina, Kansas
Assessed and Estim ated Actual Value of Taxable Property
Last Ten Fiscal Years
107
City of Salina Saline County USD 305 (2)Other (1)
Fiscal
(Budget)
Year
Operating
Millage
Debt
Serv ice
Millage
Total
City
Millage
Operating
Millage
Debt
Serv ice
Millage
Total
County
Millage
Operating
Millage
Debt
Serv ice
Millage
Total
USD
Millage Other
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 27.435 42.761 12.229 54.990 10.775 117.159
2009 21.749 4.137 25.886 29.347 29.347 46.339 12.208 58.547 10.971 124.751
2010 20.082 5.773 25.855 31.303 31.303 45.341 13.155 58.496 12.401 128.055
2011 19.236 6.786 26.022 31.432 31.432 45.818 13.095 58.913 12.131 128.498
2012 20.326 5.946 26.272 32.576 32.576 47.127 11.693 58.820 11.989 129.657
2013 20.242 5.948 26.190 34.823 34.823 47.133 11.516 58.649 12.135 131.797
2014 20.539 6.388 26.927 37.895 37.895 46.599 11.517 58.116 12.941 135.879
2015 20.692 6.388 27.080 38.047 38.047 44.088 11.517 55.605 13.305 134.037
2016 19.950 7.361 27.311 38.275 38.275 44.465 11.655 56.120 13.293 134.999
Source: Saline County Treasurer
(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.
Schedule 7
City of Salina, Kansas
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
(1) The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State
Extension District #3.
Total
108
Taxpayer Type of Business
Assessed
Valuation
% of Total
Valuation Rank
Assessed
Valuation
% of
Total Rank
Westar Energy (W estern Resources)Utility 8,036,664$ 2.40%1 11,025,004$ 2.38%1
SFC Global Supply Chain, Inc. (Schwan's)Pizza Manufacturing 7,938,775 2.37%2 7,175,013 1.55%2
Central Mall Realty Holding LLC Regional Shopping Center 6,064,998 1.81%3 6,330,144 1.37%3
RAF Salina, LLC Regional Shopping Center N/A 4,478,080 0.97%4
Kansas Gas Service Utility 3,058,959 0.91%7 3,669,878 0.79%5
Menard Inc.Home Improvement N/A 2,504,399 0.54%6
Collier Dennis D Property Mgmt N/A 2,428,117 0.52%7
Union Pacific Railroad N/A 2,288,512 0.49%8
Great Plains Manufacturing Manufacturing 2,415,729 0.72%8 2,327,353 0.50%9
Dillon Companies Inc Grocery N/A 2,160,125 0.47%10
Sams Real Estate Business Trust/W almart Discount Retail Stores 3,979,960 1.19%6
Salina Regional Health Center Hospital and Medical Offices 4,967,556 1.48%5
Southwestern Bell Telephone Utility 5,265,830 1.57%4
Western W ireless Microwave Transmission 2,218,381 0.66%9
Lowe's Home Center Building supply Center 2,015,463 0.60%10
Combined Valuation of the Ten Largest Taxpayers 45,962,315$ 44,386,625$
City Valuation 335,262,182$ 463,030,260$
Percent of Total City Assessed Valuation 13.71%9.59%
Source: Saline County Clerk's Office or recent OS
Current Year and Ten Years Ago
2016 (2015 Assessed Value)2006 (2005 Assessed Value)
Schedule 8
City of Salina, Kansas
Principal Property Taxpayers
109
Fiscal
(Budget)
Year
Taxes Lev ied for
the fiscal year Amount Percentage
Delinquent
Collections (1)Amount
Percentage of
levy
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%
2011 10,415,491$ 10,287,770$ 98.8%273,843$ 10,561,613$ 101.4%
2012 10,570,420$ 10,411,299$ 98.5%245,086$ 10,656,385$ 100.8%
2013 10,576,448$ 10,145,404$ 95.9%248,184$ 10,393,588$ 98.3%
2014 10,908,147$ 10,776,688$ 98.8%398,820$ 11,175,508$ 102.5%
2015 11,316,065$ 10,460,246$ 92.4%617,496$ 11,077,742$ 97.9%
2016 11,740,993$ 10,972,299$ 93.5%245,577$ 11,217,876$ 95.5%
Source: Saline County Treasurer's Office
Schedule 9
Last Ten Fiscal Years
Total Tax DistributionsCurrent Year Tax Distributions
(1) Delinquent collections are reported in the aggregate for all previous years. Data is not currently av ailable
for "collected in subsequent years"
City of Salina, Kansas
Property Tax Levies and Distributions
110
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City Direct Tax Rate
General 0.50%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%/0.40%0.40%0.40%0.40%0.40%0.40%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%1.00%
Portion of County-wide tax allocated
to City (July Percentage)61.92%62.31%62.46%61.58%63.34%61.72%60.86%60.23%60.28%60.28%
Source: Kansas Department of Revenue
In addition to the direct tax, the City receives 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.
In May, 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016.
Schedule 10
City of Salina, Kansas
Direct Sales Rate by Taxing Entity
Last Ten Fiscal Years
Fiscal Year
111
# 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 17,750 1,080,015 17,813 994,875 17,792 1,043,774 17,838 1,127,864 17,899 1,194,629 17,893 1,225,931 17,966 989,788 18,042 1,003,100 18,125 950,697 18,086 987,540
Commercial 1,592 331,440 1,591 333,720 1,589 339,507 1,568 350,633 1,574 372,499 1,565 38,547 1,579 348,968 1,599 353,675 1,603 345,232 1,600 350,767
Industrial 46 237,698 48 203,491 46 152,910 44 183,166 44 180,277 42 174,595 40 182,529 42 193,233 44 191,236 44 202,407
Government 151 58,568 152 68,366 104 41,793 85 42,714 97 55,910 99 54,618 99 46,484 97 45,346 99 45,136 97 41,928
Apartment 184 55,500 182 64,703 182 71,503 172 71,121 168 72,562 169 70,263 168 67,155 166 60,865 163 57,039 164 61,400
Schools 80 36,953 81 38,835 84 39,815 85 46,386 85 53,679 81 57,027 84 44,187 84 45,328 85 41,176 85 45,545
Industrial special 1 35,813 1 42,574 1 32,934 1 44,457 1 44,051 1 40,448 1 20,439 - - - - - -
Consumed in production 18 26,070 18 28,699 18 26,223 17 32,604 13 22,728 12 19,266 12 18,665 12 19,264 9 9,580 12 17,338
Rural water 1 23,963 1 24,798 1 22,824 1 23,854 1 28,621 1 25,930 1 21,530 1 22,993 1 23,384 1 21,915
Hospitals 15 13,755 15 18,723 13 20,488 12 18,503 10 15,674 10 17,896 9 26,482 10 32,184 9 33,728 9 31,858
Religious/non profit 41 7,463 40 6,913 39 7,312 39 5,569 38 5,690 38 5,399 37 4,810 37 4,973 36 5,224 37 4,986
Other taxable deductions 5 9,975 4 8,023 - - - - - 699 - - - - - - - - - -
Engineering studies 8 5,805 8 5,327 8 6,176 8 5,266 7 3,754 8 6,104 8 6,822 8 5,095 7 4,573 8 4,807
Providing taxable service 2 5,010 2 4,663 2 4,869 2 5,494 2 4,827 2 6,118 2 3,495 1 3,561 1 3,921 1 3,167
Sale of component parts 8 5,040 8 5,748 8 5,200 8 5,851 8 5,454 8 5,726 6 5,972 6 6,850 4 3,129 5 3,900
Fire hydrant 2 495 3 1,147 2 1,032 3 2,424 3 1,389 4 2,533 3 1,922 2 1,474 3 1,727 - -
Industrial consumed in production 3 3,593 3 3,230 3 2,314 3 4,083 3 3,260 3 3,543 3 4,417 3 3,588 3 1,930 3 2,388
Sales of farm equipment 1 180 1 256 1 205 1 213 1 56 1 83 1 107 1 48 1 54 1 53
19,908 1,937,336 19,971 1,854,091 19,893 1,818,879 19,887 1,970,202 19,954 2,065,759 19,937 1,754,027 20,018 1,793,771 20,111 1,801,577 20,193 1,717,766 20,153 1,779,999
Water Rate Schedule:
Monthly meter charge (5/8")$3.57 3.75$ 4.44$ 4.51$ $4.60 $4.74 $4.88 $5.03 $5.20 $5.36
Commodity charge (per 000 gal.):
0 - 2000 gal.$2.42 2.54$ 2.34$ 2.55$ $3.77 $3.88 $4.04 $4.24 $4.45 $4.48
2001 - 10,000 gal $2.20 2.31$
Over 10,000 gal.$1.97 2.07$
Excess use charge 4.68$ 5.10$ $7.54 $7.76 $8.08 $8.48 $8.90 $9.16
Wastewater Rate Schedule:
Monthly base charge $3.34 3.51$ 6.31$ 6.42$ $6.57 $6.77 $6.97 $7.11 $7.22 $7.36
Unit cost (per 000 gal.):$2.50 2.63$ 2.88$ 3.08$ $4.48 $4.61 $4.79 $4.94 $5.01 $5.19
Water sold is expressed in thousands of gallons.
Number of Accounts billed is the annual number of billings for each class divided by 12.
Monthly meter charge increases with the size of the meter.
Residential Wastewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption.
2008 Water Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate
Source: City of Salina Water Customer Accounting Office.
20102009 20132011201220082007
Last Ten Fiscal Years
Water Sales by Class of Customer
City of Salina, Kansas
Schedule 11
201620142015
112
Fiscal Year
General
Obligation
Bonds
Loans
Payable
Capital
Lease
Temporary
Notes
General
Obligation
Bonds
Water
Revenue
Bonds
Loans
Payable
Temporary
Notes
Total Primary
Government
Percentage
of Personal
Income Per Capita
2007 25,436,632$-$ -$ 7,625,000$ 3,888,368$3,710,000$ 6,786,743$-$ 47,446,743$ 2.8%1,010.80$
2008 29,869,930$-$ -$ 5,005,000$ 2,780,069$3,030,000$ 6,428,759$-$ 47,113,758$ 2.5%1,014.12$
2009 52,067,590$-$ -$ -$ 2,320,000$2,320,000$ 5,862,516$-$ 62,570,106$ 3.5%1,346.09$
2010 53,120,952$-$ -$ 2,500,000$ 8,614,576$1,580,000$ -$ -$ 65,815,528$ 3.8%1,425.20$
2011 55,225,670$-$ -$ 3,400,000$ 7,417,907$16,193,925$-$ -$ 82,237,502$ 4.3%1,723.80$
2012 49,109,575$-$ -$ 1,485,000$ 9,613,926$15,850,228$-$ -$ 76,058,729$ 3.8%1,583.07$
2013 49,631,797$-$ -$ 3,800,000$ 8,519,799$15,226,532$-$ -$ 77,178,128$ 3.7%1,613.05$
2014 50,033,555$-$ 176,235$5,000,000$ 9,587,351$14,592,836$6,208,102$-$ 85,598,079$ 4.1%1,788.25$
2015 50,840,632$-$ 479,366$5,995,000$ 8,539,773$13,949,139$5,753,620$-$ 85,557,530$ 4.1%1,789.42$
2016 51,816,399$12,157,127$321,174$11,505,000$7,640,381$13,285,443$7,432,024$-$ 104,157,548$5.0%2,200.39$
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
Governmental Activities Business-Type Activities
Schedule 12
City of Salina, Kansas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
113
Fiscal Year
General
Obligation
Bonds Capital Lease
Temporary
Notes Total
Less Debt
Serv ice Fund
Net General
Bonded Debt
Percentage of
Actual Taxable
Value of Per Capita
2007 29,325,000$-$ 7,625,000$ 36,950,000$1,210,457$ 35,739,543$8.3%761.39$
2008 32,649,999$-$ 5,005,000$ 37,654,999$792,744$ 36,862,255$8.3%793.45$
2009 54,387,590$-$ -$ 54,387,590$735,291$ 53,652,299$11.9%1,154.23$
2010 61,735,528$-$ 2,500,000$ 64,235,528$571,873$ 63,663,655$14.2%1,378.60$
2011 62,443,577$3,400,000$ 65,843,577$1,236,026$ 64,607,551$14.4%1,354.26$
2012 58,723,501$-$ 1,485,000$ 60,208,501$582,412$ 59,626,089$13.2%1,241.05$
2013 58,151,596$-$ 3,800,000$ 61,951,596$707,763$ 61,243,833$13.5%1,280.02$
2014 59,620,906$176,235$ 5,000,000$ 64,797,141$407,864$ 64,389,277$14.1%1,345.17$
2015 59,380,405$479,366$ 5,995,000$ 65,854,771$745,339$ 65,109,432$14.1%1,361.75$
2016 59,456,780$321,174$ 11,505,000$71,282,954$1,248,914$ 70,034,040$14.8%1,479.51$
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
General Bonded Debt Outstanding
Schedule 13
City of Salina, Kansas
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
114
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 70,034,040$ 100.00%70,034,040$
Overlapping:
Salina Airport Authority 22,632,000 100.00%22,632,000
Saline County 145,000 75.08%108,866
USD 305 123,335,000 93.63%115,478,561
Total Overlapping Debt 146,112,000 138,219,427
Total Direct and Overlapping Debt 216,146,040$ 208,253,467$
Per Capita Direct and Overlapping debt 4,355.58$
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, 2016
115
Assessed Valuation 472,683,104$
Debt Limit (30% of Assessed Value)141,804,931
Debt applicable to limit:
Total Bonded Debt 104,157,548$
Less GO Debt Attributable to Exempt Purposes(7,640,381)
Less Revenue Bonds (13,285,443)
Less Capital Leases (321,174)
Less Loans Payable (19,589,151)
Less Fund Balance designated for Debt Service(1,248,914)
Total Debt Applicable to Limitation 62,072,485$
Legal debt margin 79,732,446$
2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt Limit 128,539,768$133,224,043$ 135,400,141$ 134,340,263$ 134,928,191$ 135,421,208$ 136,196,966$ 136,896,083 138,909,078
Total net debt applicable to limit 35,739,543 36,862,255 53,652,299 58,411,185 57,747,032 49,309,445 52,724,034 54,625,691 56,090,293
Legal debt margin 92,800,225$ 96,361,788$ 81,747,842$ 75,929,078$ 77,181,159$ 86,111,763$ 83,472,932$ 82,270,392$ 82,818,785$
Total net debt applicable to the limit
as a percentage of debt limit 28%28%40%43%43%36%39%40%40%
Last Ten Fiscal Years
Legal Debt Margin Calculation for 2016
Fiscal Year
Schedule 15
City of Salina, Kansas
Legal Debt Margin
116
Fiscal Year
Utility Service
Charges
Less
Operating
Expenses
Net Av ailable
Rev enue Principal Interest Cov erage
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%
2011 17,905,056$12,963,891$4,941,165$ 1,580,000$496,760$238%
2012 19,098,626$13,963,941$5,134,685$ 340,000$ 596,992$548%
2013 17,938,288$14,524,148$3,414,140$ 620,000$ 590,191$282%
2014 18,742,029$14,002,088$4,739,941$ 630,000$ 577,791$392%
2015 19,058,855$11,711,823$7,347,032$ 640,000$ 565,191$610%
2016 19,322,077$13,981,811$5,340,266$ 660,000$ 549,191$442%
Source: City of Salina Comprehensive Annual Financial Reports, 2007 - 2016
City of Salina Debt Service Schedules
Schedule 16
City of Salina, Kansas
Pledged Rev enue Cov erage
Last Ten Fiscal Years
Water/Sewer Rev enue Bonds
117
Fiscal Year Population
Per Capita
Personal
Income
(Saline County)
Personal Income,
Salina
(interpolated)
Unemployment
Rate
Labor Force,
City of Salina
USD 305
Headcount
Percentage
Free and
Reduced
Lunch
City .5 cent
sales tax
Per Capita .5
cent sales
Tax
As a % of
per capita
personal
income
2007 46,940 36,707$ 1,723,026,580$ 3.6%25,400 4,967,468$105.83$ 0.288%
2008 46,458 40,351$ 1,874,626,758$ 3.8%26,343 7,348 56.3%5,177,461$111.44$ 0.276%
2009 46,483 38,392$ 1,784,575,336$ 6.0%26,769 7,432 58.7%4,965,147$106.82$ 0.278%
2010 46,180 37,880$ 1,749,298,400$ 6.7%26,379 7,346 57.8%4,803,553$104.02$ 0.275%
2011 47,707 40,512$ 1,932,705,984$ 6.7%26,258 7,289 58.7%5,076,751$106.42$ 0.263%
2012 48,045 41,762$ 2,006,455,290$ 6.3%26,185 7,305 59.1%5,241,205$109.09$ 0.261%
2013 47,846 43,078$ 2,061,109,988$ 5.1%26,441 7,305 60.7%5,326,723$111.33$ 0.258%
2014 47,867 43,736$ 2,093,511,112$ 5.3%26,303 7,388 61.3%5,555,601$116.06$ 0.265%
2015 47,813 44,065$ 2,106,879,845$ 3.9%26,170 7,369 61.8%5,670,040$118.59$ 0.269%
2016 47,336 44,230$ 2,093,647,612$ 3.3%27,684 7,386 68.7%5,727,260$120.99$ 0.274%
Sources:Increase in per capita Sales Tax (10 years)14.3%
Population: Kansas Division of the Budget.Increase in per capita Personal Income 20.5%
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
2016 Per Capita Personal Income staff projection
2007 -2016 Employment City of Salina
USD305 headcount and free and reduced lunch data derived from Kansas Department of Education.
Employment: Kansas Department of Labor
Schedule 17
City of Salina, Kansas
Dem ographic and Economic Statistics
Last Ten Fiscal Years
Free and Reduced Lunch percentage is an average of the percentages for each building reported. School Data is reported at beginning of school year, eg 2016-
2017 school year is reported as 2016.
118
Employer Type of Business Employees Rank
Percentage
of Labor
Force Employees Rank
Percentage
of Labor
Force
Schwan's Global Supply Chain Frozen Pizza Manufacturing 1,850 1 7.2%1,800 1 6.9%
Unified School District No 305 Public School System 935 3 3.6%1,659 2 6.3%
Salina Regional Health Center Health Care 1,082 2 4.2%1,300 3 5.0%
Exide Technologies Automotive Battery Manufacturer 800 4 3.1%750 4 2.9%
Blue Philips Lighting Company Fluorescent Lamps 600 6 2.3%490 5 1.9%
City of Salina City Government 471 7 1.8%465 6 1.8%
Walmart Retail 421 7 1.6%
Dillon Stores Retail (Grocery)343 8 1.3%
Solomon Corporation Electrical Equipment 324 9 1.2%
Great Plains Manufacturing Agricultrual & Landscaping Equipment 650 5 2.5%258 10 1.0%
Lock/line Cellular Phone Insurance 420 8 1.6%
Raytheon Aircraft Aircraft Manufacturing 357 9 1.4%
Saline County County Gov ernment 233 10 0.9%
Total 7,398 28.7%7,810 29.8%
Source: Salina Chamber of Commerce
2007 2016
Schedule 18
City of Salina, Kansas
Principal Employers
Current Year and Nine Years Ago
119