Audit - 2021300 West Ash Street
P.O. Box 736
Salina, Kansas 67402‐0736
Annual Comprehensive Financial Report
For Fiscal Year Ending December 31, 2021
ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF
CITY OF SALINA, KANSAS
300 West Ash Street
P.O. Box 736
Salina, Kansas 67402-0736
For the Fiscal Year Ended
December 31, 2021
Prepared by Department of Finance and Administration
of City of Salina, Kansas
CITY OF SALINA, KANSAS
Annual Comprehensive Financial Report
For the year ended December 31, 2021
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-wide 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 Fiduciary Net Position -Fiduciary Funds 30
Statement of Changes in Fiduciary Net Position -Fiduciary Funds 31
CITY OF SALINA, KANSAS
Annual Comprehensive Financial Report
For the year ended December 31, 2021
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Notes to the Basic Financial Statements 32 -70
Required Supplementary Information
Other Postemployment Benefits
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 71
Other Postemployment Benefits -KPERS
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 72
KPERS Pension Plan
Schedule of City’s Proportionate Share of the Net Pension Liability 73
Schedule of City Contributions 73
Combining Statements and Individual Fund Schedules
Combining Statements -Nonmajor Funds
Fund Descriptions 74 -75
Combining Balance Sheet -Nonmajor Governmental Funds 76
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Governmental Funds 77
Combining Balance Sheet -Nonmajor Special Revenue Funds 78 - 79
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Special Revenue Funds 80 - 81
Combining Balance Sheet -Nonmajor Permanent Funds 82
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances -Nonmajor Permanent Funds 83
Individual Fund Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual (Non-GAAP Basis):
Bicentennial Center Fund 84
Business Improvement District Fund 85
Neighborhood Park Fund 86
Special Parks and Recreation Fund 87
Special Alcohol Fund 88
Sales Tax Economic Development Fund 89
Arts & Humanities Fund 90
Debt Service Fund 91
Solid Waste Disposal Fund 92
Water and Sewer Fund 93
Sanitation Fund 94
Golf Course Fund 95
Workers’ Compensation Reserve Fund 96
Health Insurance Fund 97
Central Garage Fund 98
CITY OF SALINA, KANSAS
Annual Comprehensive Financial Report
For the year ended December 31, 2021
TABLE OF CONTENTS -CONTINUED
Page
FINANCIAL SECTION -CONTINUED
Internal Service Fund Descriptions 99
Combining Statement of Net Position -Internal Service Funds 100
Combining Statement of Revenues, Expenses, and Changes in Net
Position -Internal Service Funds 101
Combining Statement of Cash Flows -Internal Service Funds 102 -103
Schedule
STATISTICAL SECTION
Net Position by Component -Last Ten Fiscal Years 1 104
Changes in Net Position -Last Ten Fiscal Years 2 105
Fund Balances, Governmental Fund -Last Ten Fiscal Years 3 106
Changes in Fund Balances, Governmental Funds -Last Ten Fiscal Years 4 107
Tax Revenues by Source, Governmental Funds -Last Ten Fiscal Years 5 108
Assessed and Estimated Actual Value of Taxable Property –Last Ten Fiscal Years 6 109
Direct and Overlapping Property Tax Rates –Last Ten Fiscal Years 7 110
Principal Property Taxpayers 8 111
Property Tax Levies and Distributions 9 112
Direct Sales Rate by Taxing Entity 10 113
Water Sales by Class of Customer 11 114
Ratio of Outstanding Debt by Type 12 115
Ratio of Net General Bonded Debt Outstanding 13 116
Direct and Overlapping Governmental Activities Debt 14 117
Legal Debt Margin 15 118
Pledged Revenue Coverage 16 119
Demographic and Economic Statistics 17 120
Principal Employers 18 121
CITY OF SALINA, KANSAS
Annual Comprehensive Financial Report
For the year ended December 31, 2021
TABLE OF CONTENTS -CONTINUED
Page
GOVERNMENTAL AUDIT SECTION
Schedule of Expenditures of Federal Awards 122
Notes to Schedule of Expenditures of Federal Awards 123
Schedule of Findings and Questioned Costs 124 -125
Independent Auditor’s Report on Internal Control over Financial Reporting
And on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards 126 - 127
Independent Auditor’s Report on Compliance for Each Major Federal Program
and Internal Control Over Compliance Required by the Uniform Guidance 128 - 129
INTRODUCTORY SECTION
DEPARTMENT OF FINANCE TELEPHONE (785) 309-5735
AND ADMINISTRATION FA X (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 14, 2022
To the Citizens of the City of Salina, Kansas:
The Annual Comprehensive Financial Report of the City of Salina, Kansas (the "City") for the year ended
December 31, 2021, is hereby submitted. 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 organizational 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 procedures are reviewed by the City
Commission 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, 2021 in the general fund and the special revenue funds.Various
internal compliance procedures are implemented to ensure 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 serve 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 population of the City reported by the 2010 decennial census was 47,707.The City anticipates
results of the 2020 decennial census during 3rd quarter 2022.
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 which is the 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 for the ownership, operation and maintenance
of the City-County Building. 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 programming; 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, Stryten Manufacturing, Great Plains
Manufacturing, 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 Factor report, Salina had a pull of
factor of 1.52 in 2021. 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 retail trade beyond
the expected activity attributable to just the residents of that community. It is apparent from this that Salina
continues to serve as a regional economic hub in 2021.Two Salina area company’s announced major
expansions in the second half of 2020. Schwan’s Company announced expansion of its pizza production
facility, adding approximately 225 jobs to the Salina area. Kubota announced a new plant for the production
of compact track loaders, adding approximately 410 jobs to the Salina area. Both projects remained on track
during 2021.
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.
iii
In 2018, the City of Salina issued $22,570,000 in STAR bonds which funded several projects in the City’s
downtown corridor. In 2020,Homewood Suites opened for business and the majority of the City’s Downtown
Streetscape project was completed. In 2021 Stiefel Theatre completed renovations and The Garage, an
educational and historical exhibit about automobiles, neared completion. Other major projects that were on
going included gutter and paving on North 9th Street,South Well Field improvements, continued improvements
to the water distribution system and preliminary design on the Smoky Hill River Renewal and construction of
the Police Training Center project.
The City continues to address fiduciary pressures generated by a recessionary economy and the more recent
financial impacts of the Covid-19 pandemic. General adjustments to the pay plan for cost of living changes
at a rate of 2.0%were implemented in 2021, in addition to merit increases of up to 3.0%. In 2020, the City
cost of living increase was 2.0%, with no merit increases.
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.
Increases in 2020 and 2021 are a result of the anticipated beginning of the construction of the Smoky Hill River
Renewal Project, Ninth Street Bridge Construction and Wastewater Treatment Plant respectively. Due to
uncertain Sales Tax recovery post Covid-19, the River Renewal project has been delayed. Few major projects
have been planned for 2022 and 2023 until financial resources for those years could be further evaluated.
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.Ensure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.).
iv
Acknowledgments
The preparation of the Annual Comprehensive Financial Report was made possible by the dedicated Finance
staff of the City of Salina and the professional advice and efforts of the Gordon CPA auditing team.Finally,
preparation of this report would not have been possible without the support of the City Commission.
Sincerely,
Michael D. Schrage
City Manager
City of Salina
CITIZENS
CITY COMMISSION
Trent Davis, Mayor
Karl Ryan
Bill Longbine
Greg Lenkiewicz
Mike Hoppock
City Manager
Michael Schrage
Development Services
Lauren Driscoll
Legal Services
Clark Mize & Linville Chartered*
Greg Bengtson
Computer
Technology
Interim-Scott Gardner
Police
Brad Nelson
Fire
Tony Sneidar
Public Works
Jim Teutsch
Engineering
Public Services
Streets
Traffic Control
Flood Control
Sanitation
Solid Waste
Central Garage
Fire Administration
Fire Suppression
Fire Prevention
EMS
Water Plant Division
Wastewater Plant
Division
Utility Division
Water Distribution
Wastewater
Collection
Administration
Patrol Division
Support Division
Investigative Division
Finance/Administration
Debbie Pack
City Clerk
Water Customer
Accounting
Finance
Smoky Hill Museum
Arts & Humanities
Brad Anderson
Human Resources
Natalie Fischer
Parks & Recreation
Jeff Hammond
Utilities
Martha Tasker
Municipal
Court
Building Services
Neighborhood Services
Planning & Zoning
Community Relations
Parks Division
Recreation Division
Golf Course
Facility Maintenance
Animal Services
Bicentennial Center
Continuous Process
Improvement
Scott Gardner
* Contract Position
Deputy City
Manager
Jacob Wood
Assistant City
Manager
Shawn Henessee
Risk
Management
v
vi
City of Salina, Kansas
List of Principal Officials
City Commission
Mayor Trent Davis
Vice-Mayor Karl Ryan
Commissioner Bill Longbine
Commissioner Greg Lenkiewicz
Commissioner Mike Hoppock
City Executive Staff
Mike Schrage, City Manager
Jacob Wood, Deputy City Manager
Shawn Henessee, Assistant City Manager
Greg Bengtson, City Attorney
Debbie Pack, Director of Finance & Administration
Brad Anderson, Director of Arts & Humanities
Lauren Driscoll, Director of Community & Development Services
Natalie Fischer, Director of Human Resources
Scott Gardner, Continuous Process Improvement Director &
Interim Computer Technology Dir.
Jeff Hammond, Director of Parks & Recreation
Sean Morton, Interim Police Chief
Martha Tasker, Director of Utilities
Jim Teutsch, Director of Public Works
Tony Sneidar, Fire Chief
FINANCIAL SECTION
1
INDEPENDENT AUDITOR’S REPORT
Mayor and City Commissioners
City of Salina, Kansas
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City of
Roeland Park, Kansas, as of and for the year ended December 31, 2021, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of December
31, 2021, and the respective changes in financial position 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.
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 governmental fund. This activity
represents 1.39% and .38%, respectively, of the total assets and total revenues of the governmental funds. Those
financial statements were audited by other auditors whose report has been furnished to us, and in our opinion, insofar
as it relates to the amounts 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 $50,479,492 as of December 31, 2021 and total revenues of $8,337,643 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 $7,653,178 as of June 30, 2021 and total revenues of $3,011,270 for the year then ended, which are
discretely presented component units in the accompanying financial statements. Those financial statements were
audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to
the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely
on the reports of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS), the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, and the Kansas Municipal Accounting and Audit Guide. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
2
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve, collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the economic decisions of users made on the basis of these
financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amount and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Emphasis of Matter
As discussed in Note 3. to the financial statements, certain errors in amounts previously reported as of December
31, 2020, were discovered by management of the City during the current year. Accordingly, these amounts have
been restated in the December 31, 2021, financial statements now presented, and adjustments have been made
to fund balance 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 discussion
and analysis, the schedule of the City’s proportionate share of the net pension liability, the schedule of City
contributions, and the schedule of changes in the City’s total OPEB liability and related ratios, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the responsibility of
management and although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
3
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The statements and schedules listed under supplementary information in the
accompanying table of contents, including the schedule of expenditures of federal awards as required by Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not
a required part of the basic financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditors’report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that
an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 14, 2022, on our
consideration of the City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City’s internal control over financial reporting and compliance.
Certified Public Accountant
Lawrence, Kansas
October 14, 2022
4
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Management Discussion and Analysis
This section of the report contains an overview and analysis of the City of Salina’s financial statements for the fiscal
year ended December 31, 2021. 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 government-wide net position increased $74.1 million from current operations
with net position change of $79.0 million and $(4.9) million in governmental activities and business-type
activities, respectively.
At the close of 2021, the City’s governmental funds reported combined ending fund balances of $110.2
million, an increase of $78.9 million from the prior year. The Capital Projects expenditures increased $12.2
million from prior year. The General Fund fund balance increased $5.9 million, and all Other Governmental
Funds fund balances increased $73.0 million over the prior year. The majority of this amount, $66.7 million,
comes from the Former Schilling AFB Environmental Fund.
At the close of 2021, the City’s enterprise funds reported a combined ending Net Position of $93.5 million, a
decrease of $3.1 million compared to the prior year. The Water and Sewer Fund, the Sanitation Fund, Solid
Waste Disposal and the Golf Fund all reported slight decreases to net position for the year.
Revenues from governmental activities increased by $67.6 million from the prior year and revenues from
business type activities increased $4.5 million from the prior year.
Revenues from investments continue to be minimal due to low interest rates.
The Basic Financial Statements
The basic financial statements of the City include the government-wide financial statements and the fund financial
statements. The notes to the financial statements follow the basic financial statements and are essential for the
reader’s understanding of the financial statements. Other supplementary information, including the combining
schedules for non-major funds and the budgetary comparison reports, are at the end of this report to provide
additional information for the reader.
Government-wide Financial Statements
The government-wide financial statements present the results of the City’s operations using the accrual basis of
accounting, the same basis as is used by private sector businesses. These statements focus on the long-term
financial picture of the City as a whole.
The Statement of Net 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 overall financial
health. Net position represents the total accumulated and unused resources available 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 revenues and expenses related to specific programs and how much of those programs
were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting,
all revenues and expenses are included, regardless of when cash is actually received. Both statements show the
operations of the City broken down between governmental and business-type activities. Governmental activities are
the operations of the City generally supported by taxes, such as public safety (police, fire, and EMS), public works,
5
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
public health, and culture & recreation. Business-type activities are operations of the City that are intended to
recover a significant portion of their costs through user fees and charges. These include water and sewer, refuse
collection, the golf course, and operation of the City solid waste facility.
The government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as
discretely presented component units of the City 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: governmental funds, proprietary funds, and fiduciary
funds. A fund is a fiscal entity with a set of self-balancing accounts recording financial resources together with all
related liabilities and residual equities and balances, and the changes therein. These accounting entities are
separated for the purpose of carrying on specific activities or attaining certain objectives in accordance with
regulations, restrictions, or limitations.
Governmental fund financial statements are prepared on a modified accrual basis. Under this basis, revenues are
recognized when they become measurable and available, and expenditures are recognized when the related fund
liability is incurred with the exception of long-term debt and similar items which are recorded when due. The focus is
on the short-term financial picture of the operations of the individual fund, rather than long-term citywide view
provided by the government-wide statements. Major governmental funds are presented in individual columns, while
non-major governmental funds are aggregated into an “Other Governmental Funds” column. A combining statement
for the non-major funds is presented as supplementary information in the back of the report. The information
presented in these statements can be compared to the governmental activities information in the government-wide
statements. The reconciliation at the end of the fund financial statements details the relationship between the two
types of financial statements.
Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are
prepared on the accrual basis of accounting and are used to account for business-type activities. Enterprise fund
statements present the same information that is in the government-wide statements for business-type activities, but
in greater detail. The City of Salina currently operates four enterprise funds: Sanitation, 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 Reserve, and Health Insurance. The remaining accounts for the Central Garage
operation. A combining statement for these internal service funds can be found in the supplementary information
following the notes to the financial statements.
Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a
special class of fiduciary fund in which liabilities always equal assets, and thus there is no net position. The City of
Salina operates twelve 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 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.
6
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Other Information
In addition to the basic financial statements and the notes described above, this report also presents the general fund
and major special revenue fund’s budgetary statements as required supplementary information directly following the
notes to the basic financial statements. The combining statements for the non-major funds are shown after the
required supplementary information. Finally, the statistical section includes selected statistical data about the City’s
operations and economy.
The City as a Whole
This section will identify, discuss, and analyze significant differences and trends that will enhance the reader’s
understanding of the City’s financial position.
Tax Base and Economy
The City of Salina relies on three major groups of revenues to support its operations. Each of these revenue 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 governmental activities, while charges for services
apply to both governmental (25%) and business-type (75%) activities.
Charges for services account for about 24% ($38.6 million) of the City’s revenue stream. Charges for service
depend on both the rate that is set for the activity, as well as the volume of services provided. Significant services
include water and wastewater fees, sanitation and landfill fees, licenses and permits, inspection fees and golf course
fees. Charges for services increased in 2021, largely due to the COVID pandemic as most services were paused
temporarily in 2020. This was offset by lower expenses.
Sales taxes are the next largest component of the revenue mix, providing 16% ($26.7 million) of the total revenues.
The City receives a 1.25% City-wide sales tax, and also a portion of the County-wide 1.5% sales tax. Forty-four
percent, (a rate of .75%) 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 available for general purposes.
The City is affected by the formula used to distribute the County-wide sales tax among participating jurisdictions (only
Cities and the County participate, School and other special districts do not). The formula is based, in part, on the
property tax efforts of each jurisdiction. As the portion of the overlapping levy attributable to the City of Salina
changes so does the City’s allocated portion of the County-wide sales tax. This change is recognized bi-annually
and can affect the overall allocation of the City’s portion of the County-wide sales tax.
In 2008, Salina voters approved 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 purposes
only, as well as retaining a property tax stabilization component. In May 2017, Salina voters approved an increase in
the special purpose .40% tax to a .75% tax (thus repealing the 2008 increase). This change became effective
October 1, 2017, for twenty years.
Property taxes are the third major component of the revenue mix, accounting for 9% ($15.5 million) of total
revenues. Property taxes consist of two components: Real estate and personal property taxes which are
determined by the mill levy set by the city and the assessed value of the property; and motor vehicle taxes which are
established by a countywide average tax rate and the assessed value of the vehicle.
Real estate assessed value increased by 1.0%. The total City mill levy decreased by 1.2%. The overlapping levy
increased in 2021 by 0.8%.
Personal property value continued to slide, presumably as a result of removing business equipment from the tax
base. Personal property value has now dropped to $11.2 million from its peak of $39.7 million in 2007.
7
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Motor vehicle value increased 1.7%. Motor vehicle taxes are distributed based on a formula using prior year’s tax
effort (similar to the Countywide Sales Tax Distribution).
The following table summarizes the comparative property assessed values and tax levy rates:
Fiscal (Budget) Year 2021 2020 Change
Real Estate and Personal Property Assessed Valuation 459,861,906$ 456,362,518$ 3,499,388$
City Mill Levy ($ per $1,000)
Operating (General Fund)23.847 22.908 0.939
Debt Service 6.803 6.812 (0.009)
Total City Rate 30.452 30.650 (0.198)
Total Overlapping Levy 139.738 140.308 (0.570)
Percent Total Taxes Collected 98.0%97.8% 0.002
Ratio of Total Taxes (including delinquent collections) to taxes levied 99.1%99.4% (0.003)
Motor Vehicle Valuation 56,545,812$ 54,589,132$ 1,956,680.000
Comparative Propert y Values and Tax Levy Rates
The unemployment rate in Salina decreased from 3.4% at the end of 2020 to 2.3% at the end of 2021, reflecting
general economic conditions. This is still slightly below the statewide and significantly below the national
unemployment rate. The total labor force was 24,962 in 2021.
In 2021, the top ten property taxpayers accounted for 9.99% of total assessed value.
Statement of Net Position
Net position may, over time, provide an indicator of a government’s financial position. In the case of the City of
Salina, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $316.5
million as of December 31, 2021. This represents an increase in net assets of $76 million over 2020. A comparative
Condensed Statement of Net Position at December 31, 2021 and 2020:
8
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
% of % of 2021-2020
2021 2020 2021 2020 2021 Total 2020 Total change
Cash and investments 120,526 42,246$ 44,760$ 38,876$ 165,286$ 32% 81,122$ 19% 84,164$
Other current assets 17,262 16,910 2,235 2,082 19,497 4% 18,992 4% 505
Noncurrent (capital) assets 218,619 215,438 117,494 119,118 336,113 65% 334,556 77% 1,557
Total assets 356,408 274,594 164,489 160,076 520,897 100% 434,670 100% 86,227
Total deferred outflows of 7,444 8,761 903 1,117 8,347 100% 9,878 100% (1,531)
resources
Total assets and deferred
outflows of resources 363,852 283,355 165,392 161,192 529,244 444,547 84,697
Current liabilities 17,292 17,230 5,539 3,964 22,831 12% 21,194 11% 1,637
Noncurrent liabilities 100,427 106,651 64,899 60,379 165,326 88% 167,030 89% (1,704)
Total liabilities 117,719 123,881 70,438 64,343 188,157 100% 188,224 100% (67)
Total deferred inflows of
resources 22,999 15,392 1,424 240 24,423 15,632 8,791
Net position:
Net investment in capital assets 143,768 143,559 56,004 63,742 199,772 63% 207,301 91% (7,529)
Restricted for permanent funds 559 543 - - 559 0% 543 0%16
Restricted for public works 66,698 -- - 66,698 21% - 0% 66,698
Restricted for debt service 2,112 1,724 1,132 1,175 3,244 1% 2,899 1% 345
Unrestricted 9,997 (1,744) 36,394 31,692 46,391 15% 29,948 8% 16,443
Total net position 223,134 144,082 93,530 96,610 316,664 100% 240,692 100% 75,972
Percent of total net position 70% 61% 30% 39% 100%100%
Cash and investments as a
percentage of current liabilities 697% 245% 808% 981% 724%383%
Activities Activities Total Primary Government
Condensed Statement of Net Position
As of December 31
(in $000)
Governmental Business-Type
The largest segment of the City’s net position reflects its investment in capital assets (land, buildings, streets and
drainage facilities, utility plant, vehicles, equipment, etc.), less any debt used to acquire those assets that is still
outstanding. These assets are used to provide services to citizens. As a result, resources required to retire related
debt 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.
9
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
In 2021, the amount of net investment in capital assets decreased by $7.5 million. Amount restricted for debt service
increased by $345,000. Amount restricted for public works increased by $66.7 million. Unrestricted increased by
$16.4 million. Outside of these changes, 2021 resulted in a $16,000 increase to the net position.
Total liabilities slightly decreased in governmental activities and slightly increased in business-type activities. In
governmental activities, current liabilities increased, and non-current liabilities decreased primarily due to an increase
in unearned revenue and a decrease in general obligation bonds.
Statement of Activities
A Condensed Statement of Activities is shown below.
2021-2020
2021 2020 2021 2020 2021 %2020 %Change
Program Revenues:
Charges for Services 9,629 8,400 29,001 26,513 38,630 24% 34,913 37% 3,717
Operating Grants and Contributions 4,711 4,714 - - 4,711 3% 4,714 5% (3)
Capital Grants and Contributions 66,150 - - - 66,150 -- - -
General Revenues:
Property Taxes 13,885 14,887 - - 13,885 8% 14,887 16% (1,002)
Sales Taxes 26,720 23,448 - - 26,720 16% 23,448 25% 3,272
Other Taxes 8,759 6,117 - - 8,759 5% 6,117 7% 2,642
Investment Revenue 158 286 - 4 158 0% 290 0% (132)
Other Miscellaneous 2,405 8,328 2,416 447 4,821 3%8,775 9%(3,954)
Total Revenues:132,417 66,180 31,417 26,964 163,834 60%93,144 100%70,690
Expenses:
General Government 16,098 10,395 - - 16,098 18% 10,395 14% 5,703
Public Safety 23,877 24,672 - - 23,877 27% 24,672 33% -795
Public Works 16,335 10,511 - - 16,335 18% 10,511 14% 5,824
Public Health and Sanitation 2,315 1,323 - - 2,315 3% 1,323 2% 992
Culture and Recreation 6,305 5,033 - - 6,305 7% 5,033 7% 1,272
Planning and Development 2,289 2,004 - - 2,289 3% 2,004 3% 285
Solid Waste Disposal - - 1,836 2,056 1,836 2% 2,056 3% -220
Water and Sewer - - 13,310 13,386 13,310 15% 13,386 18% -76
Sanitation - - 3,655 2,526 3,655 4% 2,526 3% 1,129
Golf Course - -878 805 878 1% 805 1% 73
Interest on Long Term Debt 2,827 2,350 - - 2,827 3%2,350 3% 477
Total Expenses 70,046 56,288 19,678 18,773 89,725 100%75,061 100%14,664
Increase in net assets before transfers 62,371 9,892 11,738 8,191 74,109 18,083 56,026
Transfers and other extraordinary items 16,681 5,133 (16,681) (5,133)- (0) 0
Change in Net Position 79,052 15,025 (4,943) 3,058 74,109 18,083 56,027
Net Position January 1 144,081 138,359 96,610 93,552 240,691 231,911 8,780
Prior Period Adjustment - (9,303) 1,862 0 1,862 -9303 1,862
Net Position January 1 restated 144,081 129,056 98,472 93,552 242,553 222,608 19,945
Net Position December 31 223,133$ 144,081$ 93,530$ 96,610$ 316,662$ 240,691$ 75,971$
Condensed Statement of Activities
For the Year Ended December 31
(in $000)
Governmental
Activities
Business-Type
Activities
Total Primary Government
10
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Governmental Activities. Charges for services attributable to governmental activities totaled $9.6 million, operating
grants for those purposes were $4.7 million and capital grants totaled $66.2 million. Charges for services increased,
operating grants decreased slightly from the prior year due to the 2020 COVID pandemic as most services were
paused temporarily. Capital grants increased due to the City receiving a payment from the U.S. Department of
Defense for environmental remediation of the former Schilling Air Force Base in 2021. The balance was funded by
general revenues. Sales taxes accounted for $26.7 million of general revenues, with property taxes providing $13.9
million. The net position increased by $79 million as a result of governmental activities. This increase was primarily
related to the capital contribution from the federal government and increases in sales and other taxes.
Total expenses for governmental activities for the year ending December 31, 2021, were $70 million compared to
$59.3 million in 2020. Governmental activities represent 78% of the City’s total expenses. The largest element of
governmental activity expense was public safety, accounting for 34% of the total expenses.
Business Type Activities. Business-type activities are primarily supported by user charges. Total expenses for
business-type activities for the year were $19.7 million, or 22% of the City’s total expenses. The majority of this
expense ($13.3 million) is attributable to water and sewer operations, with the other activities costing a combined
total of $6.4 million. Net position decreased by $4.9 million. This increase was primarily related to an overall increase
in business-type activity expenses after the 2020 COVID pandemic.
Fund Financial Analysis
Governmental Funds
Fund Balances:
The table below shows the Governmental Fund balances for major funds as of December 31, 2021 and December
31, 2020.
Fund 2021 2020 Change
General 21,064$ 15,142$ 5,922$
Tourism and Convention 603 327 276
Special Gas 2,362 2,866 (504)
Sales Tax Capital 9,402 5,209 4,193
Schilling Capital Improvement -1,494 (1,494)
Former Schilling AFB Environmental 66,698 - 66,698
Debt Service 2,112 1,724 388
Capital Projects (922)(4,028) 3,106
SFH QalicB 1,843 1,561 282
Other Governmental Funds 7,052 6,990 62
110,215$ 31,285$ 78,930$
Governmental Fund Balances
as of December 31,
(in $000's)
Total governmental fund balances increased by $78.9 million. The reasons for these changes are varied, including
lower expenses during the 2020 COVID pandemic. The Former Schilling AFB Environmental Fund was created to
account for funds from the U.S. Government for environmental remediation former air force base located in within
City limits.
Revenues and Expenditures:
The following table shows a comparison of revenues and expenditures (including other sources and uses) for major
funds for the years ending December 31, 2021 and 2020.
11
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Fund 2021 2020 Change
Revenues (including Other Financing Sources)
General 46,346$ 44,560$ 1,786$
Tourism and Convention 1,764 1,192 572
Special Gas 1,598 2,209 (611)
Sales Tax Capital 9,639 8,871 768
Schilling Capital Improvement 462 7 455
Former Schilling AFB Environmental 67,959 - 67,959
Debt Service 12,855 7,740 5,115
Capital Projects 20,276 8,598 11,678
SFH QalicB 493 494 (1)
Other Governmental Funds 6,540 7,757 (1,217)
Total Revenues 167,932 81,428 86,504
Less Other Sources (37,405) (18,515) (18,890)
Revenues, net of other sources 130,528$ 62,913$ 67,615$
Expenditures (including Other Financing Uses)
General 40,424$ 38,921$ 1,503$
Tourism and Convention 1,487 1,316 171
Special Gas 2,102 1,534 568
Sales Tax Capital 5,447 6,067 (620)
Schilling Capital Improvement 1,956 462 1,494
Former Schilling AFB Environmental 1,261 - 1,261
Debt Service 12,467 7,155 5,312
Capital Projects 17,169 4,974 12,195
SFH QalicB 210 244 (34)
Other Governmental Funds 6,478 5,865 613
Total Expenditures 89,002 66,538 22,464
Less Other Uses (6,399) (4,271) (2,128)
Expenditures, net of other uses 82,603$ 62,267$ 20,336$
Consolidated Statement of Revenues and Expenditures for Major Governmental Funds
For the years ended December 31
Modified Accrual Basis
(in $000's)
Total revenues, including other sources, increased $86.5 million compared to 2020, with Former Schilling AFB
Environmental Fund showing the largest increase between the two years, which was $68 million.
Total expenditures increased $22.5 million over 2020. The majority of that increase, $12.2 million was in the Capital
Projects Fund as a result of increased spending on projects, which has slowed due to the 2020 COVID pandemic.
Proprietary Funds
The City of Salina operates four enterprise funds as well as five internal service funds. A summarized comparative
Statement of Net Position follows for each enterprise fund:
12
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
2021 2020 Change 2021 2020 Change
Current Assets 9,164$ 8,075$ 1,089$ 36,210$ 30,396$ 5,814$
Capital Assets 3,206 3,335 (129)112,719 114,104 (1,385)
Deferred Outflows 115 137 (22) 569 706 (137)
Total Assets and deferred outflows 12,485$ 11,547$ 938$ 149,498$ 145,206$ 4,292$
Current Liabilities 2,306$ 448$ 1,858$ 3,134$ 3,394$ (260)$
Noncurrent Liabilities 4,360 4,929 (569)59,760 54,285 5,475
Deferred Inflows 153 33 120 921 151 770
Total Liabilities 6,819$ 5,410$ 1,409$ 63,815$ 57,830$ 5,985$
Net investment in capital assets 1,185$ 910$ 275$ 53,250$ 61,154$ (7,904)$
Restricted - - - 1,132 1,175 (43)
Unrestricted 4,482 5,227 (745)31,301 25,046 6,255
Total Net Position 5,667$ 6,137$ (470)$ 85,683$ 87,375$ (1,692)$
Current Assets as percentage
of current liabilities 397% 1802%1155% 896%
2021 2020 Change 2021 2020 Change
Current Assets 1,508$ 2,395$ (887)$ 112$ 91$ 21$
Capital Assets 1,135 1,003 132 433 675 (242)
Deferred Outflows 127 164 (37) 91 110 (19)
Total Assets and deferred outflows 2,771$ 3,562$ (791)$ 636$ 876$ (240)$
Current Liabilities 82$ 97$ (15)$ 17$ 25$ (8)$
Noncurrent Liabilities 562 833 (271)216 330 (114)
Deferred Inflows 264 41 223 86 15 71
Total Liabilities 909$ 971$ (62)$ 319$ 370$ (51)$
Net investment in capital assets 1,135$ 1,003$ 132$ 433$ 675$ (242)$
Restricted - - - - - -
Unrestricted 727 1,588 (861) (116)(169) 53
Total Net Position 1,862$ 2,591$ (729)$ 317$ 506$ (189)$
Current Assets as percentage
of current liabilities 1839% 2469%674% 364%
Sanitation Golf Course
Comparative Summar y Statement of Net Position
as of December 31
(in $000's)
Solid Waste Disposal Water and Sewer
13
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Revenues, Expenses, and Changes in Net Position
All enterprise funds continue to show healthy net position.
2021 2020 Change 2021 2020 Change
Operating Revenues 3,636$ 3,322$ 314$ 23,668$ 19,504$ 4,164$
Operating Expenses 1,746 2,011 (265) 12,078 12,460 (382)
Operating Income 1,890 1,311 579 11,590 7,044 4,546
Non-operating revenues (expenses) (90)(45)(45) (1,232) (922) (310)
Income (Loss) before Transfers 1,800 1,266 534 10,359 6,122 4,237
Transfers in (out)(2,271) (2,729) 458 (13,913) (2,006) (11,907)
Change in Net Position (471) (1,463) 992 (3,554) 4,116 (7,670)
Net Position January 1 6,137 5,640 497 87,375 85,219 2,156
Restatement - 1,960 (1,960) 1,862 (1,960) 3,822
Net Position, January 1, restated 6,137 7,600 (1,463) 89,237 83,259 5,978
Net Position December 31 5,666$ 6,137$ (471)$ 85,683$ 87,375$ (1,692)$
2021 2020 Change 2021 2020 Change
Operating Revenues 3,423$ 3,194$ 229$ 689$ 939$ (250)$
Operating Expenses 3,655 2,526 1,129 878 805 73
Operating Income (232)668 (900) (189)134 (323)
Non-operating revenues (expenses) - - - - - -
Income (Loss) before Transfers (232)668 (900) (189)134 (323)
Transfers in (out)(497)(497)-- 100 (100)
Change in Net Position (729) 171 (900) (189) 234 (423)
Net Position January 1 2,591 2,420 171 506 272 234
Restatement - - - - - -
Net Position January 1, restated 2,591 2,420 171 506 272 234
Net Position December 31 1,862$ 2,591$ (729)$ 317$ 506$ (189)$
Sanitation Golf Course
Comparative Summar y of Revenue, Expenses and Changes in Net Position
for the Year Ended December 31
(in 000's)
Solid Waste Disposal Water and Sewer
14
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Budgetary Highlights
The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the fund
level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the
departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which
estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders
are reported as reservations of budgetary basis fund balances as of December 31, 2021. Formal budgetary
amendments are limited to those circumstances in which the need is perceived to alter the total fund budget. Re-
allocation among departments or line items are not typically recorded as budgetary amendments.
However, in addition to formal amendments, departments within the City are allowed to transfer budget between line
items within a department. Budgets may also be transferred from department to department within each fund. As a
result of these transfers, the original budget and the final budgets may not be the same for departments within a
fund.
Capital Assets and Debt Administration
Capital Assets
The total amount invested in Capital Assets for the City as of December 31, 2021, was $336,112,690, net of
accumulated depreciation.
The following table illustrates the Capital Asset balance by various classes of assets as of December 31, 2021 and
2020:
2021 2020 2021 2020 2021 2020
Equipment, Furniture and Fixtures 2,378$ 2,309$ 1,042$ 1,280$ 3,420$ 3,589$
Vehicles 2,315 2,676 885 1,079 3,200 3,755
Buildings and Improvements 27,905 29,218 7,964 8,103 35,869 37,321
Land 24,224 24,224 2,386 2,386 26,610 26,610
Leased land under capital leases 423 423 - - 423 -
Infrastructure 140,690 130,010 83,646 78,294 224,336 208,304
Leasehold Improvements 357 357 - - 357 -
Construction in Progress 20,327 26,221 21,571 27,976 41,898 54,197
Total 218,619$ 215,438$ 117,494$ 119,118$ 336,113$ 333,776$
Governmental Activity Business-Type Activity Total
Capital Assets Balances Net of Depreciation
as of December 31
(in $000's)
Changes to capital assets may be summarized as follows:
Governmental Business-Type
Activity Activity Total
Additions 24,371 11,074 35,444
Retirements (14,616)(8,806) (23,421)
Depreciation (6,574)(3,892) (10,466)
Net Additions 3,181$ (1,624)$ 1,557$
Changes to Capital Assets, 2021
(in $000's)
15
CITY OF SALINA, KANSAS
Management Discussion and Analysis
Year Ended December 31, 2021
Additional information on the City’s capital assets can be found in Note 4,D. of the notes to the basic financial
statements.
Debt Management
The City’s general policy for general obligation bonds is to issue them for no more than 10 years for the City at Large
portion, with some exceptions permitted for extraordinary projects. On special assessment bonds, the maturity may
extend to 15 years.
The outstanding general obligation bonds for governmental activities as of December 31, 2021, totaled $62,624,018.
In addition, there were temporary notes outstanding in the amount of $3,713,786, and loans payable outstanding in
the amount of $12,226,942 related to SFH QalicB, a blended component unit of the City.
Business-type activities had $9,525,145 in revenue bonds outstanding and $7,998,491 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 $43,966,366 and temporary notes outstanding totals
$1,611,714.
The City engaged in the following debt transactions during 2021:
On April 29th, the City issued Series 2021-A, General Obligation Bonds in the amount of $7,645,000. The
proceeds were used to finance construction of a Police Facility, Basketball Court, Pheasant Ridge 3, Stone
Lake 2 and 9 South.
On September 9th, the City issued Series 2021-B General Obligation Refunding Bonds in the amount of
$6,220,000. The proceeds were used to refund outstanding bonds, Series 2013-B in the amount of
$2,310,000 and Series 2014-A in the amount of $3,910,000.
On April 29th, the City issued Series 2021-1, Temporary Notes in the amount of $5,230,000, to finance
construction costs for the final design of the Smoky Hill River project, the 9th Street Bridge project, sanitation
trucks and HVAC replacement at Heritage Hall.
Additional information on the City’s debt can be found in Note 4, E. of the notes to the basic financial statements.
Requests for Information
This financial report is intended to give the reader a general overview of the City’s finances. Questions about
information in this report or requests for additional information should be directed to the Director of Finance, Room
206, 300 West Ash Street, Salina, Kansas, 67401.
Total Total Total Salina Salina
Governmental Business-type Primary Housing Airport
Activities Activities Government Authority Authority
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current assets:
Cash and investments 120,526,465$ 44,759,681$ 165,286,146$ 2,183,089$ 5,303,767$
Receivables (net of allowance for uncollectibles)
Accounts 2,234,136 1,827,625 4,061,761 31,885 1,545,489
Taxes 14,461,875 -14,461,875 --
Interest 4,144 16 4,160 --
Inventory 304,079 407,146 711,225 40,154 -
Restricted cash and investments 258,041 -258,041 --
Prepaid expenses ---115,458 17,065
Total current assets 137,788,740 46,994,468 184,783,208 2,370,586 6,866,321
Noncurrent assets:
Capital assets, nondepreciable
Construction in progress 20,326,839 21,570,873 41,897,712 234,592 1,985,221
Land 24,646,334 2,386,334 27,032,668 1,557,554 9,920,765
Capital assets, depreciable 313,096,294 172,443,670 485,539,964 8,999,012 80,623,761
Less: Accumulated depreciation 139,450,408 78,907,246 218,357,654 5,627,631 50,002,230
Total noncurrent assets 218,619,059 117,493,631 336,112,690 5,163,527 42,527,517
Total assets 356,407,799 164,488,099 520,895,898 7,534,113 49,393,838
Deferred outflows of resources:
KPERS OPEB deferred outflows of resources 63,151 30,586 93,737 300 803
OPEB deferred outflows of resources 303,660 49,293 352,953 --
Pension deferred outflows of resources 7,077,223 822,774 7,899,997 118,765 197,575
Deferred charge on bond issuance ----887,276
Total deferred outflows of resources 7,444,034 902,653 8,346,687 119,065 1,085,654
Total assets and deferred outflows of resources 363,851,833$ 165,390,752$ 529,242,585$ 7,653,178$ 50,479,492$
Liabilities:
Current liabilities:
Accounts payable 1,864,097$ 397,378$ 2,261,475$ 44,637$ 769,715$
Retainage payable 737,931 -737,931 --
Accrued liabilities 614,807 -614,807 20,827 145,765
Accrued interest payable 477,718 535,809 1,013,527 -193,171
Deposits payable -422,066 422,066 83,553 -
Unearned revenue 3,551,978 -3,551,978 9,223 -
Current portion of compensated absences 1,252,185 290,568 1,542,753 1,937 53,228
Current portion of temporary notes payable 3,713,786 1,611,714 5,325,500 --
Current portion of loans payable -383,064 383,064 -40,800
Current portion of revenue bonds payable -775,000 775,000 --
Current portion of general obligation bonds payable 5,079,941 1,123,223 6,203,164 -1,670,000
Total current liabilities 17,292,443 5,538,822 22,831,265 160,177 2,872,679
Noncurrent liabilities:
Accrued liabilities 168,990 -168,990 78,909 -
Compensated absences 1,586,470 361,164 1,947,634 17,432 -
Security deposits returnable ----91,771
OPEB obligation 3,502,471 569,713 4,072,184 --
KPERS OPEB obligation 340,238 164,791 505,029 7,868 13,911
Net pension liability 25,057,864 2,261,985 27,319,849 392,205 509,789
Loans payable 12,226,942 43,583,302 55,810,244 -379,258
Revenue bonds payable -8,750,145 8,750,145 --
General obligation bonds payable 57,544,077 6,875,268 64,419,345 -23,547,949
Landfill post-closure care liabilities -2,332,241 2,332,241 --
Total noncurrent liabilities 100,427,052 64,898,609 165,325,661 496,414 24,542,678
Total liabilities 117,719,495 70,437,431 188,156,926 656,591 27,415,357
Deferred inflows of resources:
Unavailable revenue - property taxes 13,922,553 -13,922,553 --
KPERS OPEB deferred inflows of resources 143,112 67,659 210,771 5,740 10,726
OPEB deferred inflows of resources 273,521 45,698 319,219 --
Pension deferred inflows of resources 8,659,808 1,310,457 9,970,265 16,827 218,778
Total deferred inflows of resources 22,998,994 1,423,814 24,422,808 22,567 229,504
Total liabilities and deferred inflows of resources 140,718,489$ 71,861,245$ 212,579,734$ 679,158$ 27,644,861$
Net Position
Net investment in capital assets 143,768,099$ 56,003,629$ 199,771,728$ 5,163,527$ 16,889,510$
Restricted for:
Permanent funds:
Expendable 558,976 -558,976 31,390 -
Public works 66,697,767 -66,697,767 --
Debt service 2,111,664 1,131,606 3,243,270 --
Unrestricted 9,996,838 36,394,272 46,391,110 1,779,103 5,945,121
Total net position 223,133,344$ 93,529,507$ 316,662,851$ 6,974,020$ 22,834,631$
Primary Government
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
December 31, 2021
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 16,097,945$ 3,440,146$ 227,127$ -$[12,430,672]$ -$[12,430,672]$ -$-$
Public safety 23,877,346 4,526,565 1,198,087 -[18,152,694]-[18,152,694]--
Public works 16,335,127 414,928 1,368,101 66,150,000 51,597,902 -51,597,902 --
Public health and sanitation 2,315,098 63,263 1,363,117 -[888,718]-[888,718]--
Culture and recreation 6,304,537 1,069,993 473,517 -[4,761,027]-[4,761,027]--
Planning and development 2,289,275 114,483 80,856 -[2,093,936]-[2,093,936]--
Interest on long-term debt 2,827,085 ---[2,827,085] -[2,827,085]--
Total governmental activities 70,046,413 9,629,378 4,710,805 66,150,000 10,443,770 -10,443,770 --
Business-type activities:
Solid Waste Disposal 1,835,923 3,548,636 ---1,712,713 1,712,713 --
Water and Sewer 13,309,765 21,240,517 ---7,930,752 7,930,752 --
Sanitation 3,654,819 3,422,158 ---[232,661] [232,661] --
Golf Course 877,795 789,539 ---[88,256] [88,256] --
Total business-type activities 19,678,302 29,000,850 ---9,322,548 9,322,548 --
Total primary government 89,724,715$ 38,630,228$4,710,805$ 66,150,000$10,443,770 9,322,548 19,766,318 --
Component units:
Salina Housing Authority 2,882,491$ 394,196$ 2,370,487$ 136,111$ ---18,303 -
Salina Airport Authority 6,700,195 2,893,724 - 2,717,177 ----[1,089,294]
Total component units 9,582,686$ 3,287,920$ 2,370,487$ 2,853,288$ ---18,303 [1,089,294]
General Revenues:
Property taxes levied for
General purposes 10,820,524 -10,820,524 -2,570,657
Debt service 3,064,701 -3,064,701 --
Motor vehicle tax
General purposes 1,643,038 -1,643,038 --
Sales tax
General purposes 15,314,664 -15,314,664 --
Selective purposes 11,405,273 -11,405,273 --
Other taxes
General purposes 7,115,535 -7,115,535 --
Investment revenues 158,169 -158,169 8,980 1,311
Miscellaneous 2,405,412 2,415,696 4,821,108 101,496 154,774
Transfers, net 16,680,855 [16,680,855] ---
Subtotal general revenues 68,608,171 [14,265,159] 54,343,012 110,476 2,726,742
Change in net position 79,051,941 [4,942,611] 74,109,330 128,779 1,637,448
Net position - beginning 144,081,403 96,609,977 240,691,380 6,845,241 21,197,183
Prior period adjustment -1,862,141 1,862,141 --
Net position - beginning, restated 144,081,403 98,472,118 242,553,521 6,845,241 21,197,183
Net position - ending 223,133,344$ 93,529,507$ 316,662,851$6,974,020$22,834,631$
Changes in Net Position
Component UnitsPrimary GovernmentProgram Revenues
CITY OF SALINA, KANSAS
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
Net [Expenses] Revenue and
The notes to the basic financial statements are an integral part of this statement.
17
Tourism Schilling
and Special Sales Tax Capital
General Convention Gas Capital Improvement
ASSETS
Cash and investments 19,206,886$ 854$ 2,434,711$ 9,589,335$ -$
Restricted cash -----
Receivables (net)
Accounts 1,629,294 602,631 ---
Taxes 11,025,946 -316,446 --
Interest 4,144 ----
Inventory 167,703 ----
Due from other funds 1,158 ----
Total assets 32,035,131$ 603,485$ 2,751,157$ 9,589,335$ -$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 109,494$ -$31,748$ 141,907$ -$
Retainage payable --357,472 45,000 -
Unearned revenue -----
Temporary notes payable -----
Due to other funds -----
Total liabilities 109,494 -389,220 186,907 -
Deferred inflows of resources
Unavailable revenue - property taxes 10,728,135 ----
Unavailable revenue - other 133,970 ----
Total deferred inflows of resources 10,862,105 ----
Fund balance:
Nonspendable 167,703 ----
Restricted -603,485 2,140,934 --
Committed ---8,379,831 -
Assigned 152,402 -221,003 1,022,597 -
Unassigned 20,743,427 ----
Total fund balances 21,063,532 603,485 2,361,937 9,402,428 -
Total liabilities, deferred inflows of
resources and fund balances 32,035,131$ 603,485$ 2,751,157$ 9,589,335$ -$
CITY OF SALINA, KANSAS
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2021
Former Other Total
Schilling AFB Debt Capital SFH Governmental Governmental
Environmental Service Projects QalicB Funds Funds
66,742,220$ 2,052,630$ 4,295,503$ 3,834$ 10,798,509$ 115,124,482$
---258,041 -258,041
---1,605,407 2,211 3,839,543
-3,119,483 ---14,461,875
-----4,144
-----167,703
--10,000 --11,158
66,742,220$ 5,172,113$ 4,305,503$ 1,867,282$ 10,800,720$ 133,866,946$
44,453$ -$1,258,184$ -$195,690$ 1,781,476$
--321,636 13,823 -737,931
----3,551,978 3,551,978
--3,647,188 --3,647,188
---10,000 1,158 11,158
44,453 -5,227,008 23,823 3,748,826 9,729,731
-3,060,449 ---13,788,584
-----133,970
-3,060,449 ---13,922,554
-----167,703
66,697,767 2,111,664 --471,333 72,025,183
---1,843,459 6,373,218 16,596,508
----343,350 1,739,352
--[921,505] -[136,007]19,685,915
66,697,767 2,111,664 [921,505] 1,843,459 7,051,894 110,214,661
66,742,220$ 5,172,113$ 4,305,503$ 1,867,282$ 10,800,720$ 133,866,946$
The notes to the basic financial statements are an integral part of this statement.
18
Total Governmental Fund Balances 110,214,661$
Amounts reported for governmental activities in the
statement of net position are different because
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds
The cost of capital assets is 357,901,233
Accumulated depreciation is 139,296,083 218,605,150
Pension contributions are reported as an expense in the funds and as a
deferred outflow of resources in the governmental activities in the
statement of net position.7,405,958
Pension fundings are reported as a revenue in the funds and as a
deferred inflow of resources in the governmental activities in the
statement of net position.[9,005,574]
Certain intrafund transactions have been eliminated between the City's
primary funds and the QALICB blended component unit.[1,672,004]
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.4,508,611
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 2,808,600
Net OPEB obligation 3,834,225
Net pension liability 24,951,955
Bonds payable 62,624,018
Loans payable 12,226,942
Accrued interest on the bonds 477,718 [106,923,458]
Net Position of Governmental Activities 223,133,344$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO
NET POSITION OF GOVERNMENTAL ACTIVITIES
December 31, 2021
The notes to the basic financial statements are an integral part of this statement.
19
Tourism Schilling
and Special Sales Tax Capital
General Convention Gas Capital Improvement
REVENUES:
Taxes
Real estate taxes 10,521,583$ -$-$-$-$
Delinquent taxes 298,941 ----
Motor vehicle taxes 1,268,419 ----
General sales taxes 15,314,664 ----
Selective sales taxes ---9,639,452 -
Other taxes 5,351,559 1,763,976 ---
Intergovernmental 1,144,657 -1,357,801 --
Special assessments -----
Licenses and permits -----
Charges for services 5,841,900 ----
Investment revenue 78,253 ----
Donations -----
Miscellaneous 719,637 -80,373 -462,374
Total revenues 40,539,613 1,763,976 1,438,174 9,639,452 462,374
EXPENDITURES:
Current
General government 5,629,698 ----
Public safety 23,214,758 ----
Public works 5,464,894 - 388,839 --
Public health and sanitation 746,880 ----
Culture and recreation 3,732,377 ----
Planning and development 55,174 833,830 ---
Miscellaneous -----
Capital outlay 675,363 -1,713,301 2,753,166 -
Debt service
Principal retirement -----
Interest and other charges -----
Total expenditures 39,519,144 833,830 2,102,140 2,753,166 -
Excess [deficiency] of revenue and other sources
over [under] expenditures and other [uses]1,020,469 930,146 [663,966] 6,886,286 462,374
OTHER FINANCING SOURCES [USES]
Issuance of bonds -----
Bond and temporary note premium -----
Transfers in 5,806,300 - 160,000 --
Transfers [out][905,500] [653,523] -[2,693,350][1,956,351]
Total other financing sources [uses]4,900,800 [653,523] 160,000 [2,693,350][1,956,351]
Net change in fund balance 5,921,269 276,623 [503,966] 4,192,936 [1,493,977]
Fund balance - Beginning of year 15,142,263 326,862 2,865,903 5,209,492 1,493,977
Fund balance - End of year 21,063,532$ 603,485$ 2,361,937$ 9,402,428$ -$
CITY OF SALINA, KANSAS
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2021
Former Other Total
Schilling AFB Debt Capital SFH Governmental Governmental
Environmental Service Projects QalicB Funds Funds
-$2,978,243$ -$-$-$13,499,826$
-86,458 --- 385,399
- 374,619 ---1,643,038
-----15,314,664
----1,765,821 11,405,273
-----7,115,535
65,900,000 - 250,000 -2,239,721 70,892,179
-1,405,148 ---1,405,148
----10,300 10,300
--- 492,917 375,649 6,710,466
65,998 --45 13,873 158,169
----89,647 89,647
----635,492 1,897,876
65,965,998 4,844,468 250,000 492,962 5,130,503 130,527,520
-----5,629,698
-----23,214,758
---- 312,121 6,165,854
----1,549,128 2,296,008
----1,584,686 5,317,063
----1,189,341 2,078,345
----1,880 1,880
1,261,025 -16,875,459 10,085 1,650,384 24,938,783
-10,549,900 ---10,549,900
-1,917,407 293,791 200,044 -2,411,242
1,261,025 12,467,307 17,169,250 210,129 6,287,540 82,603,531
64,704,973 [7,622,839] [16,919,250] 282,833 [1,157,037] 47,923,989
-6,167,545 7,645,000 --13,812,545
-- 592,398 -- 592,398
1,992,794 1,842,841 11,788,154 -1,409,532 22,999,621
----[190,042][6,398,766]
1,992,794 8,010,386 20,025,552 -1,219,490 31,005,798
66,697,767 387,547 3,106,302 282,833 62,453 78,929,787
-1,724,117 [4,027,807] 1,560,626 6,989,441 31,284,874
66,697,767$ 2,111,664$ [921,505]$ 1,843,459$ 7,051,894$ 110,214,661$
The notes to the basic financial statements are an integral part of this statement.
20
Total Net Change In Fund Balances - Governmental Funds 78,929,787$
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.
Capital outlays 9,755,057
Depreciation expense [5,916,846] 3,838,211
Interest on long-term debt in the statement of activities differs from the amount
reported in the governmental funds because interest is recorded as an
expenditure in the funds when it is due, and thus requires the use of current
financial resources. In the statement of activities, however, interest expense
is recognized as the interest accrues, regardless of when it is due. This is
the amount by which interest increased.[415,843]
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 funds are reported with governmental activities.959,307
Certain intrafund transactions have been eliminated between the City's
primary funds and the QALICB blended component unit.[656,562]
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.477,418
Pension payments are reported as expenditures in the governmental funds and
do not affect the statement of net activities.[231,324]
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.[14,900,350]
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.11,051,297
Changes In Net Position of Governmental Activities 79,051,941$
CITY OF SALINA, KANSAS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE W ITH THE GOVERNMENT-W IDE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 10,521,583$ 10,737,173$ 10,737,173$ [215,590]$
Delinquent taxes 298,941 160,000 160,000 138,941
Motor vehicle taxes 1,255,152 1,209,066 1,209,066 46,086
General sales tax 15,314,664 13,418,742 13,418,742 1,895,922
Other taxes 5,351,559 6,691,350 6,691,350 [1,339,791]
Intergovernmental 1,144,657 1,124,700 1,124,700 19,957
Charges for services 4,656,662 5,679,400 5,679,400 [1,022,738]
Investment revenue 89,874 306,000 306,000 [216,126]
Miscellaneous 689,766 482,500 482,500 207,266
Total revenues 39,322,858 39,808,931 39,808,931 [486,073]
Expenditures
General government 4,892,999 6,209,388 6,209,388 1,316,389
Public safety 23,139,413 22,801,134 22,801,134 [338,279]
Public works 5,432,764 5,243,043 5,243,043 [189,721]
Public health and sanitation 746,880 --[746,880]
Culture and recreation 3,733,772 6,450,666 6,450,666 2,716,894
Planning and development [291,234] 2,059,517 2,059,517 2,350,751
Capital outlay 675,363 7,453,927 7,453,927 6,778,564
Total expenditures 38,329,957 50,217,675 50,217,675 11,887,718
Excess [deficiency] of revenues
over [under] expenditures 992,901 [10,408,744] [10,408,744] 11,401,645
Other financing sources [uses]
Transfers in 5,806,300 4,366,500 4,366,500 1,439,800
Transfers [out][905,500] [905,500] [905,500] -
Total other financing sources [uses]4,900,800 3,461,000 3,461,000 1,439,800
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]5,893,701 [6,947,744] [6,947,744] 12,841,445
Unreserved fund balance, January 1 12,918,477 6,947,744 6,947,744 5,970,733
Unreserved fund balance, December 31 18,812,178 -$-$18,812,178$
Reconciliation to GAAP
Interest receivable 4,144
Accounts receivable 1,629,294
Taxes receivable 11,025,946
Inventory 167,703
Deferred revenue [10,728,135]
Current year encumbrances 152,402
GAAP Fund Balance, December 31 21,063,532$
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Other taxes 1,487,353$ 1,895,800$ 1,895,800$ [408,447]$
Total revenues 1,487,353 1,895,800 1,895,800 [408,447]
Expenditures
Planning and development 833,830 1,047,033 1,047,033 213,203
Total expenditures 833,830 1,047,033 1,047,033 213,203
Excess [deficiency] of revenues
over [under] expenditures 653,523 848,767 848,767 [195,244]
Other financing sources [uses]
Transfers [out][653,523][848,767][848,767]195,244
Total other financing sources [uses][653,523][848,767][848,767]195,244
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]----
Unreserved fund balance, January 1 854 853 853 1
Unreserved fund balance, December 31 854 853$ 853$ 1$
Reconciliation to GAAP
Accounts receivable 602,631
GAAP Fund Balance, December 31 603,485$
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 1,347,162$ 1,172,550$ 1,172,550$ 174,612$
Miscellaneous 80,373 - - 80,373
Total revenues 1,427,535 1,172,550 1,172,550 254,985
Expenditures
Public works 388,839 486,950 486,950 98,111
Capital outlay 1,302,212 1,006,243 1,006,243 [295,969]
Total expenditures 1,691,051 1,493,193 1,493,193 [197,858]
Excess [deficiency] of revenues
over [under] expenditures [263,516] [320,643] [320,643] 57,127
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]
expenditures and other [uses][103,516] [160,643] [160,643] 57,127
Unreserved fund balance, January 1 1,928,004 1,693,383 1,693,383 234,621
Unreserved fund balance, December 31 1,824,488 1,532,740$ 1,532,740$ 291,748$
Reconciliation to GAAP
Taxes receivable 316,446
Current year encumbrances 221,003
GAAP Fund Balance, December 31 2,361,937$
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Selective sales taxes 9,639,452$ 8,500,559$ 8,500,559$ 1,138,893$
Total revenues 9,639,452 8,500,559 8,500,559 1,138,893
Expenditures
Capital outlay 2,632,049 5,050,500 5,050,500 2,418,451
Total expenditures 2,632,049 5,050,500 5,050,500 2,418,451
Excess [deficiency] of revenues
over [under] expenditures 7,007,403 3,450,059 3,450,059 3,557,344
Other financing sources [uses]
Transfers [out][2,693,350][2,693,350][2,693,350]-
Total other financing sources [uses][2,693,350][2,693,350][2,693,350]-
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]4,314,053 756,709 756,709 3,557,344
Unreserved fund balance, January 1 4,065,778 1,996,130 1,996,130 2,069,648
Unreserved fund balance, December 31 8,379,831 2,752,839$ 2,752,839$ 5,626,992$
Reconciliation to GAAP
Current year encumbrances 1,022,597
GAAP Fund Balance, December 31 9,402,428$
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 8,924,536$ 34,471,779$ 1,271,617$ 91,749$ 44,759,681$ 5,401,983$
Receivables (net of allowance for uncollectibles)
Accounts 239,542 1,351,300 236,783 - 1,827,625 -
Interest 16 - - - 16 -
Inventory and prepaid supplies - 386,967 - 20,179 407,146 136,375
Total current assets 9,164,094 36,210,046 1,508,400 111,928 46,994,468 5,538,358
Capital assets:
Nondepreciable capital assets:
Construction in progress 265 21,570,608 - - 21,570,873 -
Land 682,000 1,689,334 - 15,000 2,386,334 -
Depreciable capital assets:
Capital assets 13,304,495 154,979,628 2,848,648 1,310,899 172,443,670 168,234
Less: accumulated depreciation 10,780,426 65,520,383 1,713,607 892,830 78,907,246 154,325
Total capital assets 3,206,334 112,719,187 1,135,041 433,069 117,493,631 13,909
Total assets 12,370,428 148,929,233 2,643,441 544,997 164,488,099 5,552,267
Deferred outflows of resources:
KPERS OPEB deferred outflows of resources 3,103 19,872 5,718 1,893 30,586 1,575
OPEB deferred outflows of resources 5,678 32,076 9,564 1,975 49,293 -
Pension deferred outflows of resources 106,247 517,300 111,828 87,399 822,774 36,501
Total deferred outflows of resources 115,028 569,248 127,110 91,267 902,653 38,076
Total assets and deferred outflows of resources 12,485,456$ 149,498,481$ 2,770,551$ 636,264$ 165,390,752$ 5,590,343$
Liabilities and deferred inflows of resources:
Current liabilities
Accounts payable 226,826$ 163,363$ 6,764$ 425$ 397,378$ 82,621$
Interest payable 35,008 500,801 - - 535,809 -
Meter deposits payable - 422,066 - - 422,066 -
Temporary notes payable 1,611,714 - - - 1,611,714 -
Current portion of compensated absences payable 21,557 177,561 75,275 16,175 290,568 13,400
Current portion of accrued claims payable - - - - - 614,807
Current portion of loans payable - 383,064 - - 383,064 -
Current portion of general obligation bonds payable 411,176 712,047 - - 1,123,223 -
Current portion of revenue bonds payable - 775,000 - - 775,000 -
Total current liabilities 2,306,281 3,133,902 82,039 16,600 5,538,822 710,828
Noncurrent liabilities:
Compensated absences payable 26,794 220,702 93,563 20,105 361,164 16,655
Accrued claims payable - - - - - 168,990
OPEB obligation 66,512 370,077 110,339 22,785 569,713 -
KPERS OPEB obligation 16,716 107,066 30,807 10,202 164,791 8,484
Net pension liability 307,465 1,463,705 327,703 163,112 2,261,985 105,909
Payable from restricted assets
Loans payable - 43,583,302 - - 43,583,302 -
General obligation bonds payable 1,610,134 5,265,134 - - 6,875,268 -
Revenue bonds payable - 8,750,145 - - 8,750,145 -
Landfill post-closure care liabilities 2,332,241 - - - 2,332,241 -
Total noncurrent liabilities 4,359,862 59,760,131 562,412 216,204 64,898,609 300,038
Total liabilities 6,666,143 62,894,033 644,451 232,804 70,437,431 1,010,866
Deferred inflows of resources
KPERS OPEB deferred inflows of resources 7,028 43,454 12,966 4,211 67,659 3,541
OPEB deferred inflows of resources 5,084 30,240 8,541 1,833 45,698 -
Pension deferred inflows of resources 140,535 847,264 242,548 80,110 1,310,457 67,325
Total deferred inflows of resources 152,647 920,958 264,055 86,154 1,423,814 70,866
Total liabilities and deferred inflows of resources 6,818,790$ 63,814,991$ 908,506$ 318,958$ 71,861,245$ 1,081,732$
Net position
Net investment in capital assets 1,185,024$ 53,250,495$ 1,135,041$ 433,069$ 56,003,629$ 13,909$
Restricted
Restricted for bond retirement - 1,131,606 - - 1,131,606 -
Unrestricted 4,481,642 31,301,389 727,004 [115,763] 36,394,272 4,494,702
Total net position 5,666,666$ 85,683,490$ 1,862,045$ 317,306$ 93,529,507$ 4,508,611$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2021
The notes to the basic financial statements are an integral part of this statement.
26
Total Internal
Solid Waste Water and Enterprise Service
Disposal Sewer Sanitation Golf Course Funds Funds
Operating revenues
Charges for services 3,548,636$ 21,240,517$3,422,158$789,539$ 29,000,850$ 8,223,682$
Miscellaneous 87,560 2,427,749 830 [100,443] 2,415,696 28,852
Total operating revenues 3,636,196 23,668,266 3,422,988 689,096 31,416,546 8,252,534
Operating expenses
General government -----7,372,865
Public works 1,617,278 8,510,657 3,502,147 -13,630,082 -
Recreation ---834,562 834,562 -
Depreciation 129,016 3,567,276 152,672 43,233 3,892,197 362
Total operating expenses 1,746,294 12,077,933 3,654,819 877,795 18,356,841 7,373,227
Operating income [loss]1,889,902 11,590,333 [231,831] [188,699] 13,059,705 879,307
Nonoperating revenues [expenses]
Interest expense [89,629] [1,313,168] --[1,402,797] -
Accretion of bond premium -81,336 --81,336 -
Total nonoperating revenues [expenses][89,629] [1,231,832] --[1,321,461] -
Income [loss] before transfers 1,800,273 10,358,501 [231,831] [188,699] 11,738,244 879,307
Transfers from [to] other funds
Transfers in -153,599 --153,599 80,000
Transfers [out][2,270,914] [14,066,190][497,350] -[16,834,454]-
Total transfers [2,270,914] [13,912,591][497,350] -[16,680,855]80,000
Change in net position [470,641] [3,554,090] [729,181] [188,699] [4,942,611]959,307
Net position, January 1 6,137,307 87,375,439 2,591,226 506,005 96,609,977 3,549,304
Prior period adjustment -1,862,141 --1,862,141 -
Net position, January 1, restated 6,137,307 89,237,580 2,591,226 506,005 98,472,118 3,549,304
Net position, December 31 5,666,666$ 85,683,490$1,862,045$317,306$ 93,529,507$ 4,508,611$
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, 2021
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 3,507,381$21,272,184$3,405,318$789,539$ 28,974,422$7,955,984$
Cash paid to suppliers of goods or services [777,661] [5,395,358] [2,544,053][376,910] [9,093,982] [7,103,848]
Cash paid to employees [612,504] [3,738,887] [983,943] [483,664] [5,818,998] [276,664]
Other operating receipts 87,560 2,427,749 830 [100,443] 2,415,696 28,852
Net cash provided by [used in] operating activities 2,204,776 14,565,688 [121,848] [171,478] 16,477,138 604,324
Cash flows from capital and related financing activities
[Purchase and construction] sale of capital assets [265] [239,196] [284,228] 198,957 [324,732] -
Proceeds from bonds 320,000 ---320,000 -
Proceeds from temporary notes 1,611,714 ---1,611,714 -
Proceeds from loans -10,176,440 --10,176,440 -
Principal payments - loans -[2,136,102]--[2,136,102]-
Principal payments - general obligation bonds [724,078] [705,422]--[1,429,500]-
Principal payments - revenue bonds -[816,015]--[816,015] -
Interest paid [93,368] [1,220,668] --[1,314,036]-
Net cash provided by [used in] capital
and related financing activities 1,114,003 5,059,037 [284,228] 198,957 6,087,769 -
Cash flows from noncapital financing activities
Transfers in -153,599 --153,599 80,000
Transfers [out][2,270,914][14,066,190][497,350] -[16,834,454]-
Net cash provided by [used in] noncapital financing activities [2,270,914][13,912,591][497,350] -[16,680,855]80,000
Net increase [decrease] in cash and cash equivalents 1,047,865 5,712,134 [903,426] 27,479 5,884,052 684,324
Cash and cash equivalents, January 1 7,876,671 28,759,645 2,175,043 64,270 38,875,629 4,717,659
Cash and cash equivalents, December 31 8,924,536$34,471,779$1,271,617$91,749$ 44,759,681$5,401,983$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2021
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]1,889,902$ 11,590,333$[231,831]$ [188,699]$ 13,059,705$879,307$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense 129,016 3,567,276 152,672 43,233 3,892,197 362
[Increase] decrease in accounts receivable [41,255] [105,140] [16,840] -[163,235]-
[Increase] decrease in inventory -3,762 -7,039 10,801 [35,156]
[Increase] decrease in deferred outflows 22,338 136,312 36,926 18,369 213,945 11,901
Increase [decrease] in accounts payable 207,302 [346,294][18,685] [7,098][164,775]36,871
Increase [decrease] in retainage payable -[211,528]--[211,528]-
Increase [decrease] in accrued compensated absences 5,193 40,119 13,093 [984]57,421 [246]
Increase [decrease] in claims payable -----[267,698]
Increase [decrease] in net pension liability [161,557] [1,034,740] [297,731] [98,593] [1,592,621] [81,998]
Increase [decrease] in net KPERS OPEB obligation [6,764] [9,256] 3,862 [17,818] [29,976] [239]
Increase [decrease] in net OPEB obligation 8,945 27,619 13,611 2,024 52,199 -
Increase [decrease] in meter deposits payable -136,807 --136,807 -
Increase [decrease] in deferred inflows 119,768 770,418 223,075 71,049 1,184,310 61,220
Net cash provided by [used in] operating activities 2,204,776$ 14,565,688$[121,848]$ [171,478]$ 16,477,138$604,324$
Business-Type Activities:
Enterprise Funds
CITY OF SALINA, KANSAS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS (Continued)
For the Year Ended December 31, 2021
The notes to the basic financial statements are an integral part of this statement.
29
Custodial
Fund
ASSETS
Cash and investments 1$
Total assets 1
LIABILITIES AND NET POSITION
Liabilities
Accounts payable -
Total liabilities -
NET POSITION
Restricted for individuals, organizations and other governments 1$
December 31, 2021
CITY OF SALINA, KANSAS
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
The notes to the basic financial statements are an integral part of this statement.
30
Custodial
Fund
ADDITIONS
Miscellaneous 25,711$
Total additions 25,711
DEDUCTIONS
Contractual services 26,461
Total deductions 26,461
Change in net position [750]
Net position, January 1 751
Net position, December 31 1$
CITY OF SALINA, KANSAS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
December 31, 2021
The notes to the basic financial statements are an integral part of this statement.
31
32
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Reporting Entity
The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor as part of a five-member
commission. These financial statements present the City and its component units, entities for which the
government is considered to be financially accountable. Each discretely presented component unit is reported
in a separate column in the government wide statements (see note below for descriptions)to emphasize that
it is legally separated from the government.The blended 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. O ne of the primary functions of the Airport Authority is to facilitate the continued growth
of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five-
member Board of Directors appointed by the Salina City Commission. Any director may be removed by a
majority vote of the Salina City Commission. The Airport Authority’s basic mill levy (up to 3 mills) requires the
approval of the City Commission. The Commission must also approve the issuance of general obligation debt
by the Airport Authority. The Airport Authority has a December 31 fiscal year end.
Housing Authority of the City of Salina -The purpose of the Housing Authority of the City of Salina (Housing
Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. T he
Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners
of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability
of the Housing Authority is essentially supported by the operating and debt service subsidies received under
contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in
the accompanying financial statements covers the fiscal year ended June 30, 2021.
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. This mix of
participation is expected to provide the most consistent visitation and tourism for the downtown district. The
SFH QalicB is managed and controlled by a five-member Board of Directors appointed by the Salina City
Commission. The field house is staffed 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 Sal ina Field House
3237 Ar nold Ave.the City of Salina QALICB, Inc.
Salina, KS 469 S. 5th 300 W. Ast St.
Sal ina, KS Sal ina, KS
Joint Ventures
The City of Salina also 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 governments. The primary governments each have an ongoing financial responsibility for the joint
venture. Separate financial statements are available from the governing board of the joint venture.
33
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A.Reporting Entity (Continued)
Joint Ventures (Continued)
(Kansas Re gulator y Basi s)
Buildi ng
Author ity
(Audited)
To tal unencumber ed cash, December 31, 2021 2,021,068$
To tal change in unencumber ed cash, year ended Dec ember 31, 2021 92,869
To tal cash receipts, year ended December 31, 2021 1,644,624
To tal cash receipts from City of Sali na 510,668
Complete financial statements for the joint venture may be obtained at the entity’s administrative office.
Salina County-City
Building Authority
300 West Ash Street
Salina, KS
B.Government-wide and fund financial statements
The statement 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 statements. Exceptions to this general rule are charges between the City’s
governmental and business-type activities. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities,
which rely to a significant extent on fees and charges for support. L ikewise, the primary government is reported
separately from certain legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset
by program revenues. Direct expenses are those that are specifically associated with a service, program or
department and therefore clearly identifiable to a particular function. Program revenues include charges paid
by the recipient of the goods or services offered by the program and grants and contributions that are restricted
to meeting the operational requirements of a particular program. Taxes and other items, which are not
classified as program revenues,are presented as general revenues of the City.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual funds are
reported as separate columns in the fund financial statements. N onmajor funds are aggregated and presented
in a single column in the fund financial statements.
C.Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. G rants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
34
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
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. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to
be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to certain compensated absences and claims and judgments are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
Property taxes and interest associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Entitlements and shared
revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. E xpenditure-
driven grants are recognized as revenue when the qualifying expenditures have 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 distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing goods and services in connection with a proprietary
fund’s ongoing operations. The principal operating revenues of the City’s proprietary funds are charges to
customers for sales and services. Operating expenses for enterprise funds and internal service funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
The internal service funds account for risk management, worker’s compensation, health insurance, and central
garage that are provided to other departments or agencies of the government, or to other governments, on a
cost-reimbursement basis.
The fiduciary funds are used by the City to accounts for resources held by the City for the benefit of a third part.
Because the resources of these funds are not available for the City’s operations, they are not presented in the
government-wide financial statements. The City’s lone fiduciary fund is reported as a custodial fund.
The City reports the following major governmental funds:
General Fund -To account for resources traditionally associated with government, which are not required
legally,or by sound financial management,to be accounted for in another fund.
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 58% of the 1.25 cent sales tax designated for capital, debt, and human
services purposes.
Schilling Capital Improvement Fund -To account for the funding provided by U.S.Government and Public
Entities and the remedial investigation, feasibility study and expenditures necessary to abate groundwater
contamination beneath the property formerly identified as Schilling Air Force Base.
Former Schilling AFB Environmental Fund -To account for the funding provided by U.S. Government and
expenditures necessary to abate groundwater contamination beneath the property formerly identified as
Schilling Air Force Base.
35
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Debt Service Fund -To account for the accumulation of resources and payment of general obligation bond
principal and interest from governmental resources and special assessment bond principal and interest from
special assessment levies when the City is obligated in some manner for the payment.
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 activities 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 Disposal Fund -To account for the activities of the City's landfill.
Golf Course Fund -To account for the operations of the municipal golf course.
Water and Sewer Fund -To account for the activities of the City's water and sewer operations.
D.Assets, Liabilities, 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 available in certificates of deposit and other authorized
investments. Investments with maturity dates greater than three months are stated separately. Earnings from
these investments, unless specifically designated, are allocated monthly to the investing fund based on the
percentage of funds invested to total investments. All investments are carried at fair value.
2.Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end
of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans)
or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as “due to/from other funds.”
Accounts Receivable. The City records revenues when services are provided. All receivables are shown net
of an allowance for doubtful accounts.
36
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, Fund Balance and Net Position (Continued)
2.Receivables and Payables (Continued)
Property taxes receivable. Collection of current year property tax by the County Treasurer is not completed,
apportioned or distributed to the various subdivisions until the succeeding year, such procedure being in
conformity with governing state statutes. Consequently, current year property taxes receivable are not available
as a resource that can be used to finance the current year operations of the City and, therefore, are not
susceptible to accrual. Accruals of uncollected current year property taxes are offset by deferred revenue and
are identical to the adopted budget for 2021. 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.
The determination of assessed valuations and the collection of property taxes for all political subdivisions in
the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines
assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The
County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state
statutes, property taxes levied during the current year are a revenue source to be used to finance the budget
of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the
year prior to the fiscal year for which they are budgeted. P ayments 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. Taxes remaining due
and unpaid as of February 15 and July 1 are subject to collection procedures prescribed in state statutes.
3.Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type
inventories are recorded as expenditures when consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items.
4.Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and
an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value
at the date of donation. Capital assets used in governmental fund types of the City are recorded at cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at their estimated
fair value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. I nterest incurred
during the construction phase of capital assets of business-type is included in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
Property, plant and equipment of the primary government, are depreciated using the straight-line method over
the following estimated useful lives:
37
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D.Assets, Liabilities, Fund Balance, and Net Position (Continued)
4. Capital Assets (Continued)
Assets Years
Buildings 50
Other equipment 5 -15
Vehicles 6 -10
Infrastructure 30 -50
5. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of
8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave
that can be accumulated. Employees with more than five years of service with the City are paid for one-third
of their accumulated sick leave at their current wage scale upon termination of employment in good standing.
In 2001, a limited buy back policy was instituted.
All regular employees are entitled to paid vacation time. Such leave is granted each year of employment.
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 employment.
Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial
resources is reported as an expenditure and a fund liability in the government fund financial statements that
will pay it. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee resignations and retirements. Vested or accumulated vacation leave of the
business-type funds and government wide financial statements are recorded as an expense and liability of
those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick
pay benefits that are payable upon termination of employment.
The General Fund, Bicentennial Center Fund, Central Garage Fund, Sanitation Fund, Solid Waste Fund, Golf
Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for
compensated absences.
6.Temporary Notes
Upon authorization for the issuance of general obligation bonds for certain improvements, Kansas law permits
the temporary financing of such improvements by the issuance of temporary notes. Temporary notes issued
may not exceed the aggregate amount of bonds authorized, are interest bearing and have a maturity date not
later than four years from the date of issuance of such temporary notes. Temporary notes outstanding are
retired from the proceeds of the sale of general obligation bonds.
7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net 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 discount. Bond issuance costs are reported
as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual
debt proceeds received, are reported as debt service expenditures.
38
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
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, governmental funds report fund balance in the following classifications:
nonspendable, restricted, committed, assigned and unassigned. Nonspendable fund balance includes
amounts that cannot be spent because they are either not in spendable form or legally or contractually required
to be maintained intact. Restricted fund balance indicates that constraints have been placed on the use of
resources either by being externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments or imposed by law through constitutional provisions or enabling legislation. Committed fund
balances 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 balance 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 expenditure is
incurred for purposes for which both restricted and unrestricted fund balance is available restricted amounts
are considered to be spent first. When an expenditure is incurred for purposes for which committed, assigned,
or unassigned fund balance is available, 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:
Tour ism Former Other Total
and Spec ial Sales Tax Schi lli ng AFB Debt Capital SFH Go vernmental Gove rnmental
General Convention Gas Capital Environmental Servi ce Projec ts Qali cB Funds Funds
Fund Balances:
Nonspendable for:
Inventor y 167,703$ -$ -$ -$ -$ -$ -$-$ -$ 167,703$
Restricted for:
Public works -- 2,140,934 - - - - -- 2,140,934
Public health and sanitation -- -- - - - - 234 234
Cultu re and recreation - - -- - - - - 245,319 245,319
Planning and development -603,485 -- - - --224,980 828,465
Capital improvements - - -- 66,697,767 - - --66,697,767
Debt pay ments - - -- -2,111,664 -- 800 2,112,464
Commi tted for:
Public safety - - -- - - - - 677,239 677,239
Cultu re and recreation - - -- - - - - 782,574 782,574
Planning and development - - -- - - - 1,843,459 728,371 2,571,830
Ceme ter y - - -- - - - - 553,053 553,053
Capital improvements - - -8,379,831 - - - - 3,631,981 12,011,812
Assi gned for:
General government 152,402 - - - - - - - - 152,402
Public safety - - -- - - - - 105,726 105,726
Public works - - -- - - - - - -
Culture and recreation - - -- - - - - 237,624 237,624
Capital improvements - - 221,003 1,022,597 - - - - -1,243,600
Unassi gned:20,743,427 - - - - -[921,505]-[136,007]19,685,915
To tal Fund Balances 21,063,532$603,485$2,361,937$9,402,428$66,697,767$2,111,664$[921,505]$ 1,843,459$7,051,894$ 110,214,661$
Ma jor Governmental Funds
39
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
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 assets, the statement of financial position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, 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 changes in the pension and OPEB plan
liability proportion and assumptions, net difference between projected and actual earnings on pension plan
and OPEB plan investments and differences between pension and OPEB plan liability expected and actual
experience are reported as deferred outflows of resources in the government 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 element, 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 (revenue) until that time. Unavailable revenue-property taxes is reported in the
governmental funds balance sheet and the governmental activities in the government-wide statement of net
position. Additionally, differences between expected and actual experience, changes in assumptions, and
changes in the pension liability and OPEB plan proportion are reported as deferred inflows. 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 revenues 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 balances 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.
If the City is holding a revenue neutral rate hearing, the budget timeline for adoption of the final budget has
been adjusted to on or before September 20th. T he City was not required to hold a revenue neutral rate hearing
for this year.
40
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
A.Budgetary Information (Continued)
The statutes allow the governing body to increase the originally adopted budget for previously unbudgeted
increases in revenue other than ad valorem property taxes. To do this, a notice of public hearing to amend the
budget must be published in the local newspaper. At least ten days after publication the hearing may be held
and the governing body may amend the budget at that time. The 2021 budget was not amended during the
year.
The statutes permit management to transfer budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of
expenditures of individual funds. Budget comparison statements are presented for each fund showing actual
receipts and expenditures compared to legally budgeted receipts and expenditures.
All legal annual operating budgets are prepared using the statutory basis of accounting, in which, revenues are
recognized when cash is received, and expenditures include disbursements, accounts payable, and
encumbrances. Encumbrances are commitments by the municipality for future payments and are supported
by a document evidencing the commitment, such as a purchase order or contract. All unencumbered
appropriations (legal budget expenditure authority) lapse at year end.
A legal operating budget is not required for capital projects funds, Former Schilling AFB Environmental fund,
SFH QalicB fund, non-major debt service funds, trust funds,permanent funds, and the following special
revenue funds: Community Development Revolving, Downtown TIF District #1, South 9th CID,Downtown CID,
Alley CID, Downtown Hotel CID,North 9th CID, STAR Bonds Subprojects, 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, Private Grants, Animal Shelter Donations, Special Assessments Escrow, Court Bond and
Restitution, Police Investigation Account, Citizenship, DTF Local, DTF Reserve, Beechcraft Remediation
Settlement and Bail Bond Escrow funds. A legal operating budget is not required for Internal Service Funds,
however, actual to budget comparisons for these funds that present budgets to the Commissioners are shown
strictly for informational purposes.
Spending in funds, which are not subject to the legal annual operating budget requirements are controlled by
federal regulations, other statutes, or by the use of internal spending limits established by the governing body.
B.Legal Debt Margin
The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive
of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the assessed
value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August
25.As of December 31, 2021, the statutory limit for the City was $155,844,910, providing a debt margin of
$89,020,771.
41
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 3. RESTATEMENT OF EQUITY
During the year ended December 31, 2021, management discovered certain errors that occurred in the prior
year. The effects of these items caused a restatement to net position as follows:
Water and
Sewer
Ne t Positi on
Dec ember 31, 2020 87,375,439$
Pr ior Period Adjustment 1,862,141
Ne t Positi on
Dec ember 31, 2020, Restated 89,237,580$
Note 4. DETAILED NOTES ON ALL FUNDS
A.Deposits and Investments
The City’s cash is considered to be active funds by management and is invested according to KSA 9-1401.
The statute requires that banks eligible to hold active funds have a main or branch bank in the county in which
the City is located or in a c ounty adjacent to the City and the banks provide an acceptable rate for active funds.
Various City investments are considered to be idle funds by management and are invested according to KSA
12-1675. The statute requires that the City invest its idle funds in only temporary notes of the City, bank
certificates of deposit, repurchase agreements, and if eligible banks do not offer an acceptable rate for the
funds: U.S. Treasury bills or notes or the Municipal Investment Pool (KMIP). Maturities of the above
investments may not exceed two years by statute.
Some of the City’s investments are of bond proceeds invested pursuant to KSA 10-131. This statute allows
additional investment authority beyond that of KSA 12-1675. Investments of bond proceeds may follow KSA
12-1675 or include other investments such as the KMIP, direct obligations of the U.S. government or any
agency thereof, investment agreements with a financial institution the obligations of which at the time of
investment are rated in either of the three highest rating categories by Moody’s investors service or Standard
and Poor’s corporation, and various other investments as specified in KSA 10-131.
As of December 31, 2021, the City has the following investments:
Inve stment Ty pe Fai r Value Ra ti ng
Kansas Mu nicipal Inve stment Pool 318,091$ S&P AAAf /S1+
To tal fair value 318,091$
42
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
A.Deposits and Investments (Continued)
The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board is
comprised of the State Treasurer and four additional members appointed by the State Governor. The board
reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations of, or
obligations that are insured as to principal and interest by the U.S. government or any agency thereof, with
maturities up to four years. No more than 10 percent of those funds may be invested in mortgage-backed
securities. In addition, the State pool may invest in repurchase agreements with Kansas banks or with primary
government securities dealers.
The City’s investment policy provides direction on concentration risk. The City policy states that funds shall be
diversified to reduce the extent of losses due to having an unbalanced portfolio in terms of maturities,
instrument type, and issuers. Therefore, portfolio maturities shall be staggered to avoid undue concentration
of assets in a specific maturity sector. Liquidity, free of market risk, shall be assured through practices insuring
that the next disbursement date and payroll date are covered through maturing investments, marketable U.S.
Treasury Bills, the Municipal Investment Pool, or money market accounts.
Default risk shall be minimized by requiring that all security purchases occur on a delivery vs. payment basis,
and that all securities are adequately collateralized.
Risk of market price volatility shall be controlled through the adoption of a "buy and hold" strategy whereby the
City holds each investment to maturity, coupled with maintenance of an adequate liquidity position to insure
the ability to meet normal anticipated cash flow needs.
When advantageous, it is allowable to sell investments to realize a gain due to price fluctuations; however,
such transactions shall not be a part of the normal course of business.
The City recognizes that investment risks can result from issuer defaults, market price changes or various
technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control
risk due to issuer default. In the event of a default by a specific issuer, the Director of Finance and
Administration shall review, and, if appropriate, proceed to liquidate securities having comparable credit risks.
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it.
The City’s deposit policy for custodial credit risk require that the depository banks will maintain 100% security
in the form of FDIC coverage and pledged collateral according to KSA 9-1402. As of December 31, 2021 the
City’s deposits were considered fully secured.
Restricted cash is comprised of an interest reserve account (the "Interest Reserve"), and an operating
reserve account (the "Operating Reserve") related to the SFH QalicB blended component unit. The Interest
Reserve and the Operating Reserve accounts are available as part of the loans payable financing (see Note
4E). As of December 31, 2021, the balance of the Interest Reserve and Operating Reserve was $131,391
and $126,650, respectively.
43
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
B.Receivables
Receivables as of year-end, including the applicable allowances for doubtful accounts, are as follows:
To ur ism and Spec ial Debt SFH Other
Gener al Convention Ga s Servi ce Qa licB Gove rnme ntal Subtotal
Pr imar y Government
Re ceivables:
Accounts 7,464,058$ 602,631$ -$ -$1,605,407$3,244$9,675,340$
Taxes 11,025,946 - 316,446 3,119,483 --14,461,875
Interest 4,144 -- - --4,144
Gr oss receivables 18,494,148 602,631 316,446 3,119,483 1,605,407 3,244 24,141,359
Less: allowanc e for
uncollec ti bles [5,834,764] -- --[1,033] [5,835,797]
To tal 12,659,384$602,631$ 316,446$3,119,483$1,605,407$2,211$ 18,305,562$
Solid Water
Waste andDisposalSewer Sanitati on To tal
Pr imar y Government
Re ceivables:
Accounts 239,542$ 2,243,162$382,326$ 12,540,370$
Taxes ---14,461,875
Interest 16 - -4,160
Gr oss receivables 239,558 2,243,162 382,326 27,006,405
Less: allowanc e for
uncollec ti bles -[891,862][145,543] [6,873,202]
To tal 239,558$ 1,351,300$236,783$ 20,133,203$
Component Units
Salina Airport Authority
Accounts 94,058$
Grants 1,452,931
Less: allowance for uncollec tibles [1,500]
To tal Salina Airport Author ity 1,545,489
Salina Housing Authority
Accounts 45,755
Less: allowance for uncollec tibles [13,870]
To tal Salina Housi ng Authority 31,885
To tal 1,577,374$
C.Interfund Receivables and Payables
The composition of interfund balances as of December 31, 2021, is as follows:
Fund Ty pes Due From Due To
Ge ner al Fund 11,158$ -$
Other Governmental Funds -11,158
11,158$ 11,158$
The City uses interfund receivables and payables between the General Fund and Other Governmental Funds
as needed when pooled cash is negative within a fund until investments mature or grant proceeds are received.
All payables are cleared in less than one year.
44
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D.Capital Assets
Capital asset activity for the year ended December 31, 2021, was as follows:
Balanc e Ad j. Bal.Balanc e
12/31/2020 Ad justments 12/31/2020 Ad ditions Retirements 12/31/2021
City governm ental activities :
Governm ental ac tivities :
Capital as sets, not being depreciated
C ons truc tion in progres s 26,221,157$ -$26,221,157$ 8,718,691$ 14,613,009$ 20,326,839$
Land 24,223,535 -24,223,535 --24,223,535
Leas ed land under c apital leas e 422,799 -422,799 --422,799
Capital as sets, being deprec iated
Infrastruc ture 226,276,624 -226,276,624 15,030,407 -241,307,031
Buildings and im provem ents 53,158,946 -53,158,946 --53,158,946
Vehic les 10,169,524 -10,169,524 218,001 -10,387,525
Equipment, furniture and fixtures 7,484,442 -7,484,442 403,574 2,607 7,885,409
Leas ehold im provem ents 357,383 -357,383 --357,383
Total capital as sets 348,314,410 -348,314,410 24,370,673 14,615,616 358,069,467
Les s ac cumulated depreciation for:
Infrastructure 96,266,536 -96,266,536 4,350,078 -100,616,614
Buildings and im pr ovem ents 23,940,647 -23,940,647 1,313,174 -25,253,821
Vehicles 7,494,122 -7,494,122 578,773 -8,072,895
Equipm ent, furniture and fixtures 5,174,971 -5,174,971 334,714 2,607 5,507,078
Total ac cumulated depreciation 132,876,276 -132,876,276 6,576,739 2,607 139,450,408
Governm ental ac tivities capital assets, net 215,438,134$ -$215,438,134$ 17,793,934$ 14,613,009$ 218,619,059$
Busines s-type ac tivities :
Capital as sets, not being depreciated
C ons truc tion in progres s 27,975,939$ -$27,975,939$ 2,400,534$ 8,805,600$ 21,570,873$
Land 2,386,334 -2,386,334 --2,386,334
Capital as sets, being deprec iated
Infrastruc ture 131,643,670 -131,643,670 8,388,201 -140,031,871
Buildings and im provem ents 22,579,936 -22,579,936 284,228 -22,864,164
Vehic les 3,781,267 -3,781,267 --3,781,267
Equipment, furniture and fixtures 5,765,524 -5,765,523 845 -5,766,368
Total capital as sets 194,132,670 -194,132,669 11,073,808 8,805,600 196,400,877
Les s ac cumulated depreciation for:
Infrastructure 53,350,542 -53,350,542 3,035,435 -56,385,977
Buildings and im pr ovem ents 14,476,597 -14,476,597 423,824 -14,900,421
Vehicles 2,701,833 -2,701,833 194,366 -2,896,199
Equipm ent, furniture and fixtures 4,486,078 -4,486,078 238,572 -4,724,650
Total ac cumulated depreciation 75,015,050 -75,015,050 3,892,197 -78,907,247
Busines s-type ac tivities capital as sets, net 119,117,620$ -$119,117,619$ 7,181,611$ 8,805,600$ 117,493,630$
45
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
D.Capital Assets (Continued)
The City’s depreciation expense was charged to governmental functions as follows:
Go ve rnme ntal Ac ti vi ti es:
Ge ner al government 59,708$
Publi c safety 660,307
Publi c works 4,450,051
Publi c health 30,651
Cultur e and recreation 1,042,548
Planning and development 333,474
To tal depr ec iati on 6,576,739$
Busi ness-ty pe Ac ti vi ti es:
Soli d Waste Disposal 129,016$
Water and Sewer 3,567,276
Sani tati on 152,672
Go lf Cour se Di vi sion 43,233
To tal depr ec iati on 3,892,197$
E.Long-Term Debt
Following is a summary of changes in long-term debt for fiscal year 2021:
Balance Balance Amounts
January 1, Dec ember 31,Due Within
2021 Additions Deletions 2021 One Year
Governmental activities:
General obligation bonds 56,587,549$ 13,545,000$ 10,549,900$ 59,582,649$ 4,826,778$
General obligation bond premium 2,743,432 793,345 495,408 3,041,369 253,163
Loans pay able 12,640,000 --12,640,000 -
Loans pay able dis count [427,021]-[13,963][413,058]-
OP EB liability 3,097,540 498,956 94,025 3,502,471 -
KPERS OPEB liability 402,677 53,298 115,737 340,238 -
Net pens ion liability 34,571,390 -9,513,526 25,057,864 -
Accrued compens at ion 2,697,006 1,407,234 1,265,585 2,838,655 1,252,185
Te mporary notes 7,050,000 3,647,188 7,050,000 3,647,188 3,647,188
Te mporary note premium -66,598 -66,598 66,598
Total 119,362,573$ 20,011,619$ 29,070,218$ 110,303,974$ 10,045,912$
Busines s-type ac tivities:
General obligation bonds 8,742,451$ 320,000$ 1,390,100$ 7,672,351$ 1,123,223$
General obligation bond premium 365,539 -39,399 326,140 39,399
Loans pay able 35,926,027 10,176,440 2,136,101 43,966,366 383,064
Revenue bonds 9,615,000 -750,000 8,865,000 775,000
Revenue bond premium 726,160 -66,015 660,145 -
OP EB liability 517,514 80,995 28,796 569,713 -
KPERS OPEB liability 194,767 25,815 55,791 164,791 -
Net pens ion liability 3,854,606 -1,592,621 2,261,985 -
Accrued compens at ion 594,311 347,989 290,568 651,732 290,568
Te mporary notes -1,582,812 -1,582,812 1,582,812
Te mporary note premium -28,902 -28,902 28,902
Total 60,536,375$ 12,562,953$ 6,349,391$ 66,749,937$ 4,222,968$
46
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E.Long-Term Debt (Continued)
The following is a detailed listing of the City’s general obligation bonds outstanding as of December 31, 2021:
Go ve rnmental Busi ness-ty pe
Final Or iginal Ac tivi tes Ac ti vi te s
Pur pose, Series Issue Date Ma tur ity Interest Ra tes Issue Outstandi ng Outstandi ng
Inter nal Improvements, 2013A 2/15/2013 10/1/2028 2.60% to 3.65% 1,360,000$725,000$ -$
Improvement and Re funding, 2015A 7/29/2015 10/1/2035 3.00% to 3.50% 6,825,000 4,795,000 -
Inter nal Improvements, 2016A 7/26/2016 10/1/2036 2.00% to 3.00% 6,570,000 5,220,000 2,097,351
Re funding, 2016B 7/26/2016 10/1/2031 2.00% to 5.00%13,750,000 8,092,649 -
Inter nal Improvements, 2017A 7/27/2017 10/1/2037 3.00% to 3.38% 9,310,000 7,940,000 -
Inter nal Improvements, 2018A 11/27/2018 10/1/2033 3.15% to 4.00% 2,090,000 1,750,000 -
Inter nal Improvements, 2019A 4/24/2019 10/1/2039 3.00% to 4.00%11,090,000 10,440,000 -
Inter nal Improvements, 2020A 4/29/2020 10/1/2035 2.00% to 3.00% 5,210,000 3,110,000 1,605,000
Inter nal Improvements, 2020B 11/19/2020 10/1/2036 2.00% to 3.00% 8,450,000 3,965,000 3,650,000
Inter nal Improvements, 2021A 4/29/2021 10/1/2041 1.63% to 4.50% 7,645,000 7,645,000 -
Re funding, 2021B 9/8/2021 10/1/2034 1.15% to 2.00% 6,220,000 5,900,000 320,000
59,582,649$7,672,351$
Gener al Ob li gation Bonds - Primar y Government
The following is a detailed listing of the City’s revenue bonds outstanding as of December 31, 2021:
Business-ty pe
Or iginal Acti vi tes
Pur pose, Ser ies Issue Date Final Matur ity Inter est Rates Issue Outstanding
Re ve nue & Refunding, 2019 9/11/2019 10/1/2031 3.00% 10,330,000$8,865,000$
Reve nue Bonds - Primary Government
The following is a detailed listing of the City’s temporary notes outstanding as of December 31, 2021:
Go ve rnme ntal Busi ness-ty pe
Or iginal Ac ti vi tes Acti vi tes
Purpose, Ser ies Issue Date Final Matur ity Inter est Ra tes Issue Ou tstanding Ou tstanding
Inter nal Improvements, 2021-1 4/29/2021 5/1/2022 2.00%5,230,000$3,647,188$ 1,582,812$
Te mp orary Notes - Primar y Government
47
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
The following is a detailed listing of the City’s loans payable as of December 31, 2021:
Governmental Business-ty pe
Or iginal Ac ti vi tes Ac ti vi tes
Pur pose Issue Date Final Matur ity Inter est Rates Issue Outstanding Outstanding
Kansas Public Water Supply 2629 8/1/2014 8/1/2034 2.12% 8,562,911$-$ 5,669,144$
Kansas Public Water Supply 2917 8/15/2018 2/1/2040 2.33% 32,000,000 - 29,736,642
Kansas Public Water Supply 2957 7/2/2018 2/1/2040 2.33% 4,250,000 - 3,726,201
Kansas Public Water Supply 2997 7/7/2020 8/1/2041 1.43% 4,250,000 - 2,172,136
Kansas Water Polluti on Contr ol 2049 2/22/2021 9/1/2042 1.30% 31,500,000 - 1,499,577
Kansas Water Polluti on Contr ol 2050 12/11/2018 3/1/2035 2.54% 2,250,000 - 1,162,666
Dakotas No te A 7/27/2016 12/10/2050 1.58% 6,016,500 6,016,500 -
Dakotas No te B 7/27/2016 12/10/2050 1.58% 2,623,500 2,623,500 -
CNMC Note A 7/27/2016 12/10/2050 1.58% 2,674,000 2,674,000 -
CNMC Note B 7/27/2016 12/10/2050 1.58% 1,326,000 1,326,000 -
12,640,000$43,966,366$
Loans Pay able - Primar y Government
The following is a detailed listing of the long-term debt outstanding of the City’s component unit, the Salina
Airport Authority, as of December 31, 2021:
Or iginal
Pur pose, Ser ies Issue Date Fi nal Matur ity Inter est Ra tes Issue Ou tstandi ng
Inter nal Impr ovement & Re fundi ng, 2015A 8/28/2015 9/1/2025 1.50% to 3.55%3,075,000$430,000$
Ta xa ble Re funding, 2017A 7/12/2017 9/1/2030 1.61% to 3.35%10,255,000 9,935,000
Re fundi ng, 2017B 7/12/2017 9/1/2031 2.00% to 3.00%4,835,000 4,735,000
Re fundi ng, 2019A 10/10/2019 9/1/2029 2.10% to 3.10%675,000 555,000
Ta xa ble Re funding, 2019B 10/10/2019 9/1/2023 2.80% to 3.00%3,455,000 1,615,000
Re fundi ng, 2021A 8/17/2021 9/1/2031 0.25% to 2.00%2,345,000 2,345,000
Less: Unamor ti zed bond premium 18,163
Plus: Unamor ti zed bond disc ount [60,214]
19,572,949$
Or iginal
Pur pose, Ser ies Issue Date Fi nal Matur ity Inter est Ra tes Issue Ou tstandi ng
Inter nal Impr ovements, 2020-1 9/1/2020 9/1/2023 0.48% 2,100,000$2,100,000$
Ta xa ble, 2021-1 11/10/2021 9/1/2023 0.45% 3,545,000 3,545,000
5,645,000$
Gove rnmental
Or iginal Ac ti vi tes
Purpose Issue Date Fi nal Matur ity Inter est Ra tes Issue Ou tstandi ng
Bui ldi ng 824 Impr ovements 8/12/2020 9/1/2030 3.30%460,000$ 420,058$
Lease Pur chase Agr eement - Component Un its
Te mp or ar y Notes - Comp onent Un its
Gener al Obli gati on Bonds - Component Un its
48
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Annual debt service requirements to maturity for general obligation bonds:
Year Ending
December 31,Principal Inter est To tal Inter est To tal
2022 4,826,777$ 253,163$ 5,079,940$ 1,123,222$39,399$ 1,162,621$
2023 4,941,734 253,163 5,194,897 973,267 39,399 1,012,666
2024 4,870,140 253,163 5,123,303 869,860 39,399 909,259
2025 4,576,004 253,163 4,829,167 873,996 39,399 913,395
2026 4,312,044 253,163 4,565,207 437,956 15,322 453,278
2027 - 2031 17,622,963 1,021,062 18,644,025 2,117,037 76,610 2,193,647
2032 - 2036 14,012,987 552,510 14,565,497 1,277,013 76,610 1,353,623
2037 - 2041 4,420,000 201,985 4,621,985 -4,680,500 4,680,500
To tal 59,582,649$3,041,372$ 62,624,021$7,672,351$5,006,638$12,678,989$
Pr incipal
General Ob li gation Bonds - Primary Gover nment
Go ve rnme ntal Ac ti vi tes Busi ness-ty pe Ac ti vi tes
Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues:
Year Endi ng
Dec ember 31,Pr incipal Inter est To tal
2022 775,000$ 66,015$ 841,015$
2023 795,000 66,015
861,015
2024 820,000 66,015
886,015
2025 845,000 66,015
911,015
2026 870,000 66,015
936,015
2027 - 2031 4,760,000 330,073 5,090,073
To tal 8,865,000$ 660,148$ 9,525,148$
Busi ness-ty pe Ac ti vi tes
Reve nue Bonds - Primar y Government
Annual debt service requirements to maturity for temporary notes -to be paid through the issuance of general
obligation bonds:
Year Endi ng
Dec ember 31,Pr incipal Interest To ta l Interest To tal
2022 3,647,188$ 73,349$ 3,720,537$ 1,582,812$31,832$ 1,614,644$
Te mpor ar y Notes - Primar y Gover nment
Go ve rnmental Ac ti vi tes Busi ness-ty pe Ac ti vi te s
49
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E.Long-Term Debt (Continued)
Annual debt service requirements to maturity of the for loans payable:
Year Ending
Dec ember 31,To tal
2022 -$
2023 -
2024 -
2025 -
2026 616,140
Th eraf ter 12,023,860
To tal 12,640,000$
Annual debt service requirements to maturity of the long-term debt outstanding of the City’s component unit,
the Salina Airport Authority, as of December 31, 2021:
Year Ending
Dec ember 31,Pr incipal Inter est To tal
2022 1,670,000$ 541,056$ 2,211,056$
2023 1,710,000 498,754 2,208,754
2024 1,760,000 454,540 2,214,540
2025 1,810,000 411,120 2,221,120
2026 1,865,000 363,633 2,228,633
2027 - 2031 9,960,000 983,284 10,943,284
2032 - 2036 840,000 49,780 889,780
To tal 19,615,000$3,302,167$ 22,917,167$
Gener al Ob li gati on Bonds - Component Un its
Go ve rnme ntal Ac ti vi tes
Year Ending
Dec ember 31,Pr incipal Inter est To tal
2022 -$ 22,975$ 22,975$
5,645,000 26,033 5,671,033
5,645,000$ 49,008$ 5,694,008$
Te mporar y Notes - Component Un its
Go ve rnme ntal Ac ti vi tes
Year Ending
December 31,Pr incipal Inter est To tal
2022 40,800$ 13,528$ 54,328$
2023 42,157 12,171 54,328
2024 43,560 10,768 54,328
2025 45,009 9,318 54,327
2026 46,507 7,821 54,328
2027 - 2030 202,025 15,287 217,311
420,058$ 68,893$ 488,950$
Lease Purchase Agr eement - Component Un its
Go ve rnme ntal Ac ti vi tes
Kansas Public Water Supply Loans.The City has engaged in a loan with the Kansas Public Water Supply Fund.
The following displays annual debt service requirements to maturity for the loan payable to be paid from service
revenues, for the full proceeds amount:
50
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E.Long-Term Debt (Continued)
Pr incipal Inter est To tal
383,064$ 118,166$ 501,230$
391,228 110,002 501,230
399,566 101,664 501,230
408,082 93,148 501,230
416,779 84,451 501,230
3,670,424 339,422 4,009,846
5,669,143$846,853$ 6,515,996$
Loans Pay able - Primary Government
Busi ness-ty pe Ac ti vi tes
During 2019, the City entered into additional loans with the Kansas Public Water Supply Fund and the Kansas
Water Pollution Control Fund. The water supply loans allow the City to borrow up to $36,170,000 with a gross
interest rate of 2.33%. The water pollution control loan allows the City to borrow up to $2,250,000 with a gross
interest rate of 2.54%. Amortization schedules for the loans are not yet available since the loans have not been
fully finalized. The purpose of the loans are to finance various water and sewer infrastructure projects
throughout the City.
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 due, partially in
arrears and partially in advance, on the tenth day of each December through December 10, 2025. On July
27, 2023, payment of all accrued and unpaid interest through July 27, 2023,is due. Commencing on
December 10, 2016, 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 plus 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, 2021, the note balance was $6,016,500.
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 due, partially in arrears and partially in
advance, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of all
accrued and unpaid interest through July 27, 2023,is due. Commencing on December 10, 2026,and
continuing through the maturity date, annual payments of principal and interest in an amount equal to
$127,883 are due. At maturity, the entire outstanding principal balance plus 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, 2021, 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-CDE 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, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of
all accrued and unpaid interest through July 27, 2023,is due. Commencing on December 10, 2026,and
51
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E.Long-Term Debt (Continued)
continuing through the maturity date, annual payments of principal and interest in an amount equal to
$130,345 are due.At maturity, the entire outstanding principal balance plus 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, 2021, 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-CDE 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, on the tenth day of each December through December 10, 2025. On July 27, 2023, payment of
all accrued and unpaid interest through July 27, 2023,is due. Commencing on December 10, 2026,and
continuing through the maturity date, annual payments of principal and interest in an amount equal to $64,636
are due. At maturity, the entire outstanding principal balance plus 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, 2021, the note balance was $1,326,000.
As of December 31, 2021, the principal balance of these four loans,net of $413,058 of unamortized debt
issuance costs,was $12,226,942.
Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are
financed through general obligation bonds of the City and are retired from the debt service fund. Special
assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special
assessments received after the issuance of bonds are recorded as revenue in the debt service fund. The special
assessments are not recorded as revenue when levied against the respective property owners as such amounts
are not available to finance current year operations. The special assessment debt is a contingent obligation of
the City to the extent of property owner defaults, which have historically been immaterial.
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 advance,
as specified in the Net Lease agreement.
For the year ended December 31, 2021, SFH QalicB earned $492,917 of rental income under the terms of
the Net Lease. As of December 31, 2021, rental income of $102,281 remained receivable from the City.
The following is a schedule, by year, of total minimum lease payments by the City to SFH QalicB under the
direct financing lease as of December 31, 2021:
Year Endi ng
Dec ember 31,Lease Pay me nt
2022 130,000$
2023 162,500
2024 227,500
2025 227,500
2026 650,000
2027 - 2031 3,250,000
2032 - 2036 3,250,000
2037 - 2041 3,250,000
2042 - 2046 2,925,000
To tal 14,072,500$
Premises Leases between Qa li cB and City
52
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
E. Long-Term Debt (Continued)
Ground Lease.On October 24, 2018, SFH QalicB entered into a lease agreement with Salina Regional
Medical Education, LLC for the use of property for parking of passenger vehicles and non-commercial trucks
(the Parking Lot) by the public. SFH QalicB will have the option to acquire the Parking Lot for $1 upon the
end of the lease term, which is 100 years, as defined in the Ground Lease. A one-time basic rent payment of
$250,000 was due on the commencement date. There are no additional minimum lease payments due.
Sales tax and Revenue (STAR) Bonds.STAR Bonds are authorized to be issued pursuant to K.S.A. 12-17, 160,
et seq., as amended (the STAR Bond Act). T he STAR Bond Act provides a form of tax increment financing that
enables the issuance of bonds payable from certain State and local sales and compensating use tax revenues
and transient guest tax revenues generated from STAR bond projects constructed within a STAR bond project
district. To implement STAR bond financing, a local government must adopt a resolution that specifies a
proposed STAR bond project district’s boundary and describes the overall district plan, hold a public hearing on
the district and plan, and pass a resolution that establishes the STAR bond project district. Additionally, there
may be one or more projects within a STAR bond district.
In accordance with the STAR Bond Act, the City has no liability for payment of bonds in the event that revenues
received from sources noted above are inadequate to pay the debt incurred with the issuance of the STAR
bonds.
In connection with the issuance of STAR bonds, the City of Salina and the State of Kansas enter into a Tax
Distribution Agreement. T he agreement provides that the principal of, accreted value, and interest on the STAR
bonds will be paid proportionally by the City of Salina and the State of Kansas, based on each entity’s respective
share of sales taxes generated within the district. These proportional shares may change in the future if the
sales taxes assessed by the local or state governments are modified.
On June 1, 2015, the City of Salina Commission adopted Ordinance 15-10776 establishing the district known
as the Salina STAR Bond Project District. On August 22, 2016, the City held a public hearing and approved
Ordinance 16-10856 adopting the STAR Bond Project Plan.
On December 1, 2018, the City of Salina issued $18,250,000 in Senior Special Obligation Revenue Bonds
(Series 2018-A) and $4,320,000 in Subordinate Special Obligation Revenue Bonds (Series 2018-B). As of
December 31, 2021, the outstanding balances for the 2018-A and 2018-B were $17,975,000 and $4,320,000,
respectively.
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 $93,926 for
the year ended December 31, 2021. The future minimum lease payments for the lease are as follows:
Year Endi ng
Dec ember 31,Principal Inter est To tal
2022 77,682$ 16,244$93,926$
2023 80,391 13,536 93,927
2024 83,194 10,733 93,927
2025 86,095 7,832 93,927
2026 89,096 4,829 93,925
2027 92,202 1,722 93,924
To tal 508,660$54,896$563,556$
HV AC Oper ati ng Lease
53
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 4. DETAILED NOTES ON ALL FUNDS (Continued)
G.Interfund Transfers
A reconciliation of interfund transfers follows:
Tr ansf er In Tr ansf er Out
Major Funds:
Gener al 5,806,300$ 905,500$
Tour ism and Conventi on -653,523
Spec ial Ga s 160,000 -
Sales Ta x Capi tal -2,693,350
Schilli ng Capi tal Impr ovement 1,956,351
For me r Schilli ng AFB Environ. 1,992,794 -
Debt Ser vi ce 1,842,841 -
Capital Pr ojec ts 11,788,154 -
Other governmental funds 1,409,532 190,042
Solid Waste Disposal -2,270,914
Water and Sewer 153,599 14,066,190
Sani tati on -497,350
Centr al Garage 80,000 -
To ta l tr ansf er s 23,233,220$ 23,233,220$
The City uses interfund transfers to share administrative costs between funds.
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 provides benefit provisions
to the following statewide pension groups under one plan, as provided by K.S.A. 74, article 49:
Public employees, which includes:
o State/School employees
o Local employees
Police and Firemen
Judges
Substantially all public employees 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 employees group
and the Kansas Police and Firemen group.
KPERS issues a stand-alone Annual Comprehensive Financial Report, which is available on the KPERS
website at www.kpers.org.
54
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
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 whenever 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 average salary and years of
service. When ending employment, members may withdraw their contributions from their individual
accounts, including interest. Members who withdraw 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 reserve fund as established by K.S.A. 74-
4922.
Members choose one of seven 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 service. Early retirement is available 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.
For all pension coverage groups, the retirement benefits are disbursed 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 employee 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 Employees Retirement Fund established by
K.S.A. 74-4921. All of the retirement systems are funded on an actuarial reserve basis.
For fiscal years beginning in 1995, Kansas legislation established statutory limits on increases in contribution
rates for KPERS employers. Annual increases in the employer contribution rates related to subsequent
benefit enhancements are not subject to these limitations. The statutory cap increase over the prior year
contribution rate is 1.2% of total payroll for the fiscal year ended June 30, 2021.
The actuarially determined employer contribution rates (not including the 1.00% contribution rate for the
Death and Disability Program) and the statutory contribution rate was 8.87% for KPERS and 22.80% for
KP&F for the year ended December 31, 2021. Member contribution rates as a percentage of eligible
compensation for the fiscal year 2021 are 6.00% for Local employees and 7.15% for Police and Firemen.
Employer Allocations. Although KPERS administers one cost-sharing multiple-employer 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 expense are determined
separately for each of the following groups of the plan:
55
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
A.Defined Benefit Pension Plan (Continued)
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 employer and nonemployer.
The allocation percentages for the City’s share of the collective pension amounts as of December 31, 2021,
are based on the ratio of its contributions to the total of the employer and nonemployer contributions of the
group for the fiscal years ended December 31, 2021.
The contributions used exclude contributions made for prior service, excess benefits and irregular payments.
At June 30, 2021, the City’s proportion for the Local employees group was 0.701%, which was a decrease
of .066% from its proportion measured at June 30, 2020. At June 30, 2021, the City’s proportion for the
Police and Firemen group was 1.982%, which was a decrease of .056% from its proportion measured at
June 30, 2020.
Net Pension Liability. At December 31, 2021 and 2020, the City and its component units reported a liability
of $28,147,530 and $39,553,871, 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 valuation as of December
31, 2020, which was rolled forward to June 30, 2021, using the following actuarial assumptions:
Assumpti ons Ra te
Pr ice inflation 2.75%
Wage inflati on 3.50%
Salary increases, including wa ge increases 3.50% to 12.00% including inflation
Long-ter m rate of retur n, net of inve stment expense, and
including pr ice inflation 7.25%
Mortality rates were based on the RP-2014 Mortality Tables, with age setbacks and age set forwards as well
as other adjustments based on different membership groups. Future mortality improvements are anticipated
using Scale MP-2016.
The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an
actuarial experience study conducted for the period of January 1, 2016, through December 31, 2018. The
experience study is dated January 7, 2020.
The long-term expected 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 expense and inflation) are developed 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, 2021 are summarized in the following table:
56
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
Long-Te rm Exp ec ted
Asset Long-Te rm Alloc ation Re al Ra te of Retur n
US Equiti es 23.50%5.20%
No n-US Equi ti es 23.50%6.40%
Private Equi ty 8.00%9.50%
Private Re al Estate 11.00%4.45%
Yield Driven 8.00%4.70%
Re al Re tur n 11.00%3.25%
Fi xe d Income 11.00%1.55%
Shor t Te rm Inve stme nts 4.00%0.25%
100.00%
Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members will be made
at the contractually required rate. The State, School and Local employers 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
expected KPERS employer statutory contribution was modeled for future years, assuming all actuarial
assumptions are met in future years. Employers contribute the full actuarial determined rate for Police &
Firemen, and Judges. Future employer contribution rates were also modeled for Police & Firemen and
Judges, assuming all actuarial assumptions are met in future years. Based on those assumptions, the
pension plan’s fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
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 discount
rate of 7.25%, 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 (6.25%) or 1-percentage point higher
(8.25%) than the current rate:
1% Decrease (6.25%)Discount Ra te (7.25%)1% Increase (8.25%)
Loc al 15,194,065$ 9,237,058$ 4,241,355$
Police & Fireme n 28,382,810 18,910,472 10,986,860
To tal 43,576,875$ 28,147,530$ 15,228,215$
Pension Expense. For the year ended December 31, 2021, the City recognized Local pension expense of
$585,240 and Police and Firemen pension expense of $2,404,879, which includes the changes in the
collective net pension liability, projected earnings on pension plan investments, and the amortization 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 $33,484 and $50,292,
respectively.
Deferred Outflows of Resources and Deferred Inflows of Resources. As of December 31, 2021, the City
and its component units reported deferred outflows of resources and deferred inflows of resources related
to pensions for Local and Police and Firemen groups from the following sources:
57
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
Deferred outf lows Defer red inf lows
Loc al of resour ces of resour ces
Di fferenc es between ac tual and expec ted exper ienc e 331,937$ 76,143$
Ne t di fferenc es between projec ted and ac tual ear nings on inve stments -2,986,146
Changes in assumpti ons 1,655,396 -
Changes in propor ti on 86,602 1,065,862
To tal 2,073,935$ 4,128,151$
Deferred outf lows Defer red inf lows
Poli ce & Fireme n of resour ces of resour ces
Di fferenc es between ac tual and expec ted exper ienc e 1,492,178$ -$
Ne t di fferenc es between projec ted and ac tual ear nings on inve stments -4,961,187
Changes in assumpti ons 2,405,439 -
Changes in propor ti on 6,299 880,927
To tal 3,903,916$ 5,842,114$
Deferred outf lows Defer red inf lows
Loc al of resour ces of resour ces
Di fferenc es between ac tual and expec ted exper ienc e 6,549$ 5,042$
Ne t di fferenc es between projec ted and ac tual ear nings on inve stments 45,761 -
Changes in assumpti ons 23,624 -
Changes in propor ti on -11,785
To tal 75,934$ 16,827$
Deferred outf lows Defer red inf lows
Loc al of resour ces of resour ces
Di fferenc es between ac tual and expec ted exper ienc e 20,123$ 4,616$
Ne t di fferenc es between projec ted and ac tual ear nings on inve stments -181,025
Changes in assumpti ons 100,353 -
Changes in propor ti on 34,068 33,137
To tal 154,544$ 218,778$
Ai rpor t Author ity
Ho using Author ity
$1,922,146 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2022. Amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Loc al Police & Firemen
Deferred Defer red
Year ended [Inflows] Outflows [Inflows] Outf lows
December 31,Amount Amount To tal
2022 [370,233]$ [151,613]$ [521,846]$
2023 [378,369][216,057][594,426]
2024 [443,777][417,715][861,492]
2025 [888,204][1,238,756] [2,126,960]
2026 26,367 85,941 112,308
To tal [2,054,216]$ [1,938,200]$ [3,992,416]$
58
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
A. Defined Benefit Pension Plan (Continued)
$42,831 and $43,030 reported as deferred outflows of resources related to pensions resulting from Salina
Housing Authority and Salina Airport Authority contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended December 31, 2022. Amounts reported
as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Ho using Airport
Author ity Author ity
Defer red Defer red
Year ended [Inflows] Outf lows [Inflows] Outf lows
Dec ember 31,Amount Amount To tal
2022 10,375$ [1,081]$ 9,294$
2023 15,669 [8,824] 6,845
2024 16,180 [18,175][1,995]
2025 16,263 [40,318][24,055]
2026 620 4,164 4,784
To tal 59,107$ [64,234]$ [5,127]$
B. Deferred Compensation Plan
The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal
Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their
salary until future years. T he deferred compensation is not available to employees until termination, retirement,
death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are
not available to the claims of the City's general creditors.
C. Flexible Benefit Plan (I.R.C. Section 125)
The City Commission has adopted by resolution a salary reduction flexible benefit plan ("Plan") under Section
125 of the Internal Revenue Code. All City employees working more than 20 hours per week are eligible to
participate in the Plan beginning after two full months of employment. Each participant may elect to reduce his
or her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various
insurance and disability benefits.
D. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; natural disasters and other events for which the City carries commercial insurance. No
significant reductions in insurance coverage from that of the prior year have occurred. Settlements have not
exceeded insurance coverage for each of the past three years.
The City has established a limited risk management program for workers’ compensation. The program covers
all City employees. Premiums are paid into the Workers’ Compensation Reserve Fund by all other funds and
are available to pay claims, claim reserves and administrative costs of the program. An excess coverage
insurance policy covers individual claims in excess of $250,000 ($350,000 for claims involving employees
classified as policemen or firemen). Incurred claims, including incurred but not reported claims, have been
accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of
inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and
social factors. The liability for claims and judgments is reported in the Workers' Compensation Reserve Fund
because it is expected to be liquidated with expendable available financial resources. Of the liability, $197,807
is considered to be due within one year.
59
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
D. Risk Management (Continued)
Changes in the balances of claims liabilities during the past two years are as follows:
2021 2020
Un paid clai ms , Januar y 1 446,495$ 311,572$
Incurred clai ms (includi ng
IBNRs )989,033 917,229
Clai m pay me nts [1,068,732][782,306]
Un paid clai ms , Decemb er 31 366,796$ 446,495$
The City established a limited risk management program for employee health and dental insurance in 1997.
The program covers eligible City employees. Premiums are paid into the health insurance fund by all other
funds and are available to pay claims, claim reserves and administrative costs of the program. An excess
coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred
but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts
of payouts and other economic and social factors. The liability for claims and judgments is reported in the
Health Insurance Fund because it is expected to be liquidated with expendable available financial resources.
Therefore, all of the liability is considered to be due within one year. Changes in the balances of claims liabilities
during the past two years are as follows:
2021 2020
Un paid claims , Januar y 1 605,000$ 489,418$
Incurred claims (including
IBNRs )4,560,880 3,056,323
Claim pay me nts [4,748,880][2,940,741]
Un paid claims , December 31 417,000$ 605,000$
E.Contingent Liabilities
The City receives significant financial assistance from numerous federal and state governmental agencies in
the form of grants and state pass-through aid. The disbursement of funds received under these programs
generally requires compliance with terms and conditions specified in the grant agreements and is subject to
audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other
applicable funds. However, in the opinion of management, any such disallowed claims would not have a
material effect on any of the financial statements of the City as of December 31, 2021.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material
adverse effect on the financial condition of the City.
F. Municipal Solid Waste Landfill
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill
stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating
expense of the Solid Waste Fund in each period based on landfill capacity used as of each balance sheet date.
The $2,332,241 reported as landfill closure and postclosure care liability as of December 31, 2021, represents
the cumulative amount reported to date based on the use of 28.82% of the estimated capacity of the landfill.
60
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
F. Municipal Solid Waste Landfill (Continued)
The City's solid waste fund will recognize the remaining estimated cost of closure and postclosure care of
$8,091,339 as the remaining estimated capacity is filled over the remaining life expectancy of 179.2 years.
These amounts are based on what it would cost to perform all closure and postclosure care in 2021. Actual
cost may be higher due to inflation, changes, in technology or changes in regulations. The City is required by
State and Federal laws and regulations to provide assurances of financial responsibility for closure and post-
closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S.
Environmental Protection Agency (at 40 CFR 258.74(f)) and the Kansas Department of Health and
Environment to provide these assurances. Any future closure or post-closure care costs will be provided
through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if
necessary.
G. Environmental Matters
The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence
of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site.
The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on
December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which
the City assumed primary responsibility for the further investigation and remediation of the groundwater
contamination. Field testing work has been completed. The necessary remediation work will be conducted
over the next several years at a yet undetermined cost to the City's Water and Sewer Fund.
Since 2010, the City has been involved with civil litigation concerning environmental contamination in certain
areas in the vicinity of the Salina Regional Airport and the Salina Airport Industrial Center. The contamination
was caused by military activity that occurred between 1942 and 1966 when the site was operated as the
Schilling Air Force Base. The City, the Salina Airport Authority, Unified School District No. 305 and Kansas
State University (the “Salina Public Entities”) sued the United States seeking federal funds to clean up the
contamination. A remedial investigation and feasibility study (RI/FS) were completed in 2019 to determine the
extent and severity of the contamination and to determine the best method of remediation. B ased on the RI/FS,
the Kansas Department of Health and Environment (KDHE) issued a Corrective Action Decision (CAD) on July
29, 2019. The Salina Public Entities and the U.S. Department of Justice (DOJ) reached a settlement of the
litigation ultimately documented in the form of a Consent Decree filed in U.S. District Court on November 23,
2020. Pursuant to the Consent Decree, the Salina Public Entities assumed responsibility for the Response
Action in the CAD in exchange for a $69.5 million lump sum payment by the United States to the Salina Public
Entities. The settlement payment was received by the City during the year ended December 31, 2021.
61
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
H.Capital Projects
Capital projects often extend over two or more fiscal years. The following is a schedule, which compares the
project authorization including allowable interest revenue to total project expenditures from project inception to
December 31, 2021.
Pr ojec t Author izati on Expenditur es
Markley -Magnolia VV Sewer 5,150,000$ 1,466,985$
Ri ve r Trail 2 956,072 11,312
Downtown Streetsc ape 12,787,597 11,669,107
Smoky Hill Ri ve r Renewal 12,165,000 3,595,670
S Well Field & WTP Phase 1 27,000,000 17,947,528
Re hab Pump St 28,29/Repl 28 Fac e Main 550,000 -
No rthbound 9th Street Br idge 103,768 619,026
N.9th Street Br idge 2,000,000 12,005
Smoky Hill Gr eenway Trail 435,637 62,362
Chorine Bluildi ng 2 Roof Replac ement 35,000 -
2019 Water Main Re plac ement 4,000,000 2,391,998
Magnoli a Hi lls Estates II 1,575,240 13,785
Stone Lake Phase 2 670,166 456,485
Stone Lake Phase 3A 1,647,053 3,368
Sound Garden Oakdale Park 10,046 10,046
Wheatland Valley -Spec ials 5,474,790 9,000
LED Li ghti ng replac ement - Parks 18,223 -
WWTP Own er s Re p 896,790 194,101
WWTP Improvement PH I 879,193 1,961,994
Public Saf ety Communi cati on Sy stem 2,361,323 2,313,468
2021 Pavement Sealing 250,000 322,332
TP EC Improvements (Floor /HVAC)170,426 126,961
2021 Mi ll and Inlay 1,000,000 835,200
2021 Ma jor Conc rete 400,000 -
5th Str eet Par king Lot 467,963 638
Bill Burke Drainage 136,849 63,246
Landfill Sc ale House Repai rs 45,000 265
Cedar Ridge Additi on #2 647,793 657
Pool Te nnis Cour t Remo del 864,000 3,401
2021 Water Main Re plac ement 2,000,000 -
Campbell Plaza 159,632 184,399
Magnoli a Ro ad Si dewalk 25,000 -
Landfill Fenc e Projec t 30,000 265
TP EC Improvements (Spec tr a)100,000 -
62
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
I.Other Postemployment Healthcare Benefits
Plan Description. The City offers postemployment health insurance to retirement employees. The benefits are
provided through a single employer defined benefit postemployment healthcare plan administered by the City.
The Employee Benefit Plan (the Plan) provides medical and dental benefits to eligible early retirees and their
spouses. KSA 12-5040 requires all local governmental entities in the state that provide a group health care plan
to make participation available to all retirees and dependents until the retiree reaches the age of 65 years. No
separate financial report is issued for the Plan.
Funding Policy. The contribution requirements of plan participants and the City are established and amended
by the City. The required contribution is based on projected pay-as-you-go financing requirements. In 2021,
the City did not contribute to the plan.
As of December 31, 2021, the following employees were covered by the benefit terms:
Ac ti ve emp loy ees 440
Re ti rees and cove red spouses 29
To tal 469
The total OPEB liability of $3,615,054 was measured as of December 31, 2020 and was determined by an
actuarial valuation as of December 31, 2019.
The total OPEB liability in the December 31, 2019,actuarial valuation was determined using the following
assumptions and other inputs, applied to all periods in the measurement, unless otherwise specified:
Valuati on date Dec ember 31, 2019
Ac tuar ial cost me thod Entr y age nor mal as a level per centage of pay roll
Inflati on 2.75%
Salar y increases 3.50%
Discount rate 2.12%
He althcare cost tr end rates
Me dical: 5.90% for 2021, dec reasing 0.50% per
year to an ulti ma te rate of 3.7% for 2074
Dental: 5.00% to 2022, then dec reasi ng to an
ulti ma te rate of 3.70% in 2074
Re ti ree's share of benef it
related costs 100% of the premium
The discount rate was based on an index rate for 20-year, tax-exempt general obligation municipal bonds
with an average rating of AA/Aa or higher.
Mortality rates were based on the RP 2014 Mortality Tables, with age set forwards as well as other
adjustments based on different membership groups.
Changes in the total OPEB liability are as follows:
Balanc e 1/1/2021 3,615,054$
Ser vi ce cost 244,531
Inter est 104,082
Benef it pai d [122,821]
Ec onomic/demogr aphic gai ns/losses -
Changes in assumpti ons 231,338
Balanc e 12/31/2021 4,072,184$
63
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
I.Other Postemployment Healthcare Benefits (Continued)
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using a discount rate that is one percentage point lower (1.74%) or one percentage
point higher (3.74%) than the current discount rate:
1% dec rease Disc ount rate 1% increase
(1.12%)(2.12%)(3.12%)
To tal OP EB Li abili ty 4,473,621$ 4,072,184$ 3,705,558$
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using healthcare cost trend rates that are one percentage point lower or one
percentage point higher than the current healthcare cost trend rate:
He althc are Cost
1% dec rease Tr end rates 1% inc rease
To tal OPEB Liability 3,523,416$ 4,072,184$ 4,735,426$
For the year ended December 31, 2021, the City recognized OPEB expense of $349,611.
Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2021, the City reported
deferred outflows related to other postemployment benefits from the following sources:
Defer red outflows Def er red inflows
of resour ces of resour ces
Changes of assumpti ons 352,953$ [122,309]$
Differenc es between expec ted and ac tual exper ienc e -[196,910]
To tal 352,953$ [319,219]$
Amounts reported as deferred outflows of resources will be recognized in OPEB expense as follows:
Year ended Defer red [Inflows]
June 30,Ou tf lows Amount
2022 998$
2023 998
2024 998
2025 998
2026 [1,810]
2027+31,552
To tal 33,734$
J.Other Postemployment Benefits (KPERS)
Plan Description. The City participates in a multiple-employer defined benefit other postemployment benefit
(OPEB) plan (the Plan) which is administered by KPERS. The Plan provides long-term disability benefits and
a life insurance benefit for disabled members to KPERS members, as provided by K.S.A. 74-04927. The Plan
is administered through a trust held by KPERS that is funded to pay annual benefit payments. However, because
the trust’s assets are used to pay employee benefits other than OPEB, the trust does not meet the criteria in
paragraph 4 of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions. Accordingly, the Plan is considered to be administered on a pay-as-you-go basis.
64
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
J.Other Postemployment Benefits (KPERS) (Continued)
Benefits. Benefits are established by statute and may be amended by the KPERS Board of Trustees. The Plan
provides long-term disability benefits equal to 60 percent (prior to January 1, 2006, 66 2/3 percent) of annual
compensation, offset by other benefits. Members receiving long-term disability benefits also receive credit
towards their KPERS retirement benefits and have their group life insurance coverage continued under the
waiver of premium provision.
The monthly long-term disability benefit is 60 percent of the member’s monthly compensation, with a minimum
of $100 and a maximum of $5,000. The monthly benefit is subject to reduction by deductible sources of income,
which include Social Security primary disability or retirement benefits, workers compensation benefits, other
disability benefits from any other sources by reason of employment, and earnings from any form of
employment. If the disability begins before age 60, benefits are payable while the disability continues until the
member’s 65th birthday or retirement date, whichever occurs first. If the disability begins after age 60, benefits
are payable while the disability continues, for a period of five years or until the member retires, whichever occurs
first. Benefit payments for disabilities caused or contributed to by substance abuse or non-biologically based
mental illnesses are limited to the shorter of the term of the disability or 24 months per lifetime.
The death benefit paid to beneficiaries of disabled members is 150% of the greater of 1) the member’s annual
rate of compensation at the time of disability, or 2) the members previous 12 months of compensation at the
time of the last date on payroll. If the member has been disabled for five or more years, the annual
compensation or salary rate at the time of death will be indexed using the consumer price index, less one
percentage point, to compute the death benefit. If a member is diagnosed as terminally ill with a life expectancy
of 12 months or less, the member may be eligible to receive up to 100% of the death benefit rather than having
the benefit paid to the beneficiary. If a member retires or disability benefits end, the member may convert the
group life insurance coverage to an individual insurance policy.
Employees covered by benefit terms. As of June 30, 2021, the valuation date, the following employees were
covered by the benefit terms:
Ac ti ve employ ees 263
Disabled memb er s 3
To tal 266
Total OPEB Liability. The City and its component units reported a total KPERS OPEB liability of $526,808 as
of December 31, 2021, was measured as of June 30, 2021, and was determined by an actuarial valuation as of
December 31, 2020, which was rolled forward to June 30, 2021, using the following actuarial assumptions:
Valuati on date Dec ember 31, 2020
Actuar ial cost method Entr y age nor ma l
Inflati on 2.75%
Salar y increases 3.00%
Disc ount rate (based on 20 year
mu ni cipal bond rate wi th an
aver age rati ng of AA/Aa or better ,
obtai ned thr ough the Bond Buy er
Gener al Ob li gati on 20-Bond
Mu ni cipal Index)2.16%
The discount rate was based on the bond buyer general obligation 20-bond municipal index.
65
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
J.Other Postemployment Benefits (KPERS) (Continued)
Mortality rates were based on the RP 2014 Mortality Tables, with age setbacks and age set forwards as well
as other adjustments based on different membership groups. Future mortality improvements are anticipated
using Scale MP-2019. The actuarial assumptions used in the December 31, 2020, valuation were based on
the results of an actuarial experience study for the period of January 1, 2016 through December 31, 2018.
Other demographic assumptions are set to be consistent with the actuarial assumptions reflected in the
December 31, 2020, KPERS pension valuation.
The changes in the total OPEB liability are as follows:
City Ho using Authority Ai rpor t Author ity To tal
Balanc e 1/1/2021 597,444$7,658$ 13,924$ 619,026$
Ser vi ce cost 64,709 1,670 3,797 70,176
Inter est 14,404 326 392 15,122
Effect of economic/demogr aphi c gai ns or losses [151,608][2,076][4,212][157,896]
Changes in assumpti ons 984 290 10 1,284
Benef it pay me nts [20,904] --[20,904]
Balanc e 12/31/2021 505,029$7,868$ 13,911$ 526,808$
To tal KPERS OP EB Liabili ty
Sensitivity of the total KPERS OPEB liability to changes in the discount rate. The following presented the total
KPERS OPEB liability of the City, as well as what the City’s total KPERS OPEB liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (1.16%) or 1-percentage-point higher (3.16%)
than the current discount rate:
1% dec rease Disc ount rate 1% increase
(1.16%)(2.16%)(3.16%)
To tal OP EB Liabi li ty - City 524,146$ 505,029$ 485,076$
To tal OP EB Liabi li ty - Housing Authority 7,888$ 7,868$ 7,773$
To tal OP EB Liabi li ty - Airpor t Author ity 14,040$ 13,911$ 13,649$
Sensitivity of the total KPERS OPEB liability to changes in the healthcare cost trend rates. The following
presented the total KPERS OPEB liability of the City calculated using the current healthcare cost trend rates as
well as what the City’s total KPERS OPEB liability would be if it were calculated using trend rates that are 1
percentage point lower or 1 percentage point higher than the current trend rates. The reader should note that
healthcare trend rates do not affect the liabilities related to the long-term disability benefits sponsored by
KPERS, but this exhibit is provided as it is a required disclosure under GASB 75.
He althc are cost
1% dec rease Tr end rates 1% increase
To tal OP EB Li abi li ty - City 505,029$ 505,029$ 505,029$
To tal OP EB Li abili ty - Housing Author ity 7,868$ 7,868$ 7,868$
To tal OP EB Li abili ty - Airpor t Authority 13,911$ 13,911$ 13,911$
For the year ended June 30, 2021, the City recognized OPEB expense of $66,761.
66
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
J.Other Postemployment Benefits (KPERS) (Continued)
Deferred Outflows of Resources and Deferred Inflows of Resources. At December 31, 2021, the City reported
deferred outflows and inflows related to other postemployment benefits from the following sources:
Def er red Def er red Def er red Def er red Deferred Def er red
Ou tf lows of Inflows of Ou tf lows of Inflows of Ou tf lo ws of Inflows of
Re sour ces Resources Re sour ces Re sour ces Re sour ces Re sour ces
Differenc es between expec ted
and ac tual experience 57,771$ [202,414]$ -$ [5,573]$ -$ [10,603]$
Changes of assumpti ons 35,963 [8,357] 300 [167] 803 [123]
To tal 93,734$ [210,771]$ 300$ [5,740]$ 803$ [10,726]$
Ai rpor t Author ityCityHousing Author ity
$0 reported as deferred outflows of resources related to OPEB resulting from City and Airport Authority
contributions subsequent to the measurement date, respectively, will be recognized as a reduction of the
OPEB liability in the year ended December 31, 2022. Amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized in OPEB expense as follows:
Year Ended Ho usi ng Airpo rt
June 30,City Author ity Authority
2022 [12,352]$ [718]$ [1,343]$
2023 [12,352] [718] [1,343]
2024 [12,352] [718] [1,343]
2025 [12,352] [718] [1,343]
2026 [12,047] [718] [1,335]
Th er eafter [55,582] [1,850] [3,216]
To tal [117,037]$[5,440]$ [9,923]$
K.Tax Abatements
In 2021, the City of Salina participated in real property tax abatements for five local companies. Property tax
abatements are authorized under Kansas state statutes K.S.A. 12-1740 et seq. and K.S.A. 79-201a and subject
to City policy.
The City provides property tax abatements to encourage existing industry to expand, assist new business start-
ups, recruit new companies from out-of-state or internationally, encourage high technology and research based
businesses, encourage training and development of Salina area employees, and encourage location and
retention of businesses which are good "corporate citizens" that will add to the quality of life in the community
through leadership and support of civic and philanthropic organizations. Property tax abatements reduce ad
valorem property taxes. T he percentage of reduction ranges from 40.5% to 100%, but in all cases, the maximum
duration is for ten years as per state statute. To receive an abatement, applicants must submit an application,
which undergoes due diligence and analysis before being considered by the City Commission. I f the abatement
is authorized, the applicant must sign a performance agreement that specifies annual compliance measures.
Each year, the applicant submits a renewal application, along with compliance information, which is reviewed
by City staff for conformance with agreement provisions. If compliance is not met, appeals can be made to the
City Commission to determine the amount of incentives, if any, to be received by the property owner. The City
of Salina negotiates property tax abatements on an individual basis.
67
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
K. Tax Abatements (Continued)
Company Star t End %2021 Ta x Abated
Salina Vortex Corp (facility impr ovements)2015 2024 37.5%3,539$
Gr eat Plai ns Mf g (facility improvements)2014 2023 50%2,800
Ver is Tec hnologi es (facility addi ti on/impr ovements)2015 2024 50%479
Twi n Oa ks (facility addi ti on/impr ovements)2015 2024 50%651
7,469$
Ad Valorem Property Tax Abatements
Abatement
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
employment and economic base of the City, increasing property values and tax revenues, reducing poverty,
creating economic stability, 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 district 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 district 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
expenses and compliance with agreement provisions. O nce the project begins to generate TIF revenues (sales
tax and/or property tax), City staff works with the distributing 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 distributions are made to the
City, there are no provisions for recapturing taxes. The City of Salina negotiates TIFs on an individual basis.
District Pur pose Base Year Expi res Sales Ta x Proper ty Tax
Downtown Promote, sti mu late and develop the
gener al and ec onomic welf ar e of a
ma jor comme rcial enter tai nment and
tour ism area 2016 2036 $ -$ 306,683
To tal $-$ 306,683
TI F Projec t Plans
2021 Re imbur sements
Community Improvement Districts (CID). CIDs are an economic development tool established by the Kansas
CID Act (K.S.A. 12-6a26 et seq.) and subject to City policy to assist with the development of community
improvements which can benefit a development and the public. In all CIDs, public improvements were financed
initially by the developer and are reimbursed annually via a two percent (2%) transportation district sales tax on
retail or taxable services occurring within the district.
68
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
K. Tax Abatements (Continued)
To establish a CID, the applicant first submits a CID petition which is signed 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
expenses and compliance with agreement provisions. 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 paid until after improvements are put in place, agreement compliance is met, eligible
expenses are certified, and CID sales tax distributions are made to the City, there are no provisions for
recapturing taxes. The City of Salina negotiates CIDs on an individual basis.
2021 Eligible
Re imbur sement
Name Ra te Star t Expi res Purpose Amount
South 9th Street 2.00% 3/1/2016 12/31/2037
Assist wi th improvements to hotel
and conference center $246,989
Alley 1.00% 10/1/2019 9/30/2041
Assist wi th bui ldi ng of fami ly
enter tainment facility in downtown 22,166
Downtown 1.00% 7/1/2019 6/30/2041
Assist wi th Re vi ti li zation of
Downtown Corridor 349,418
Downtown Hotel 1.00% 10/1/2019 9/30/2041
Assist wi th bui ldi ng of downtown
hotel 73,722
No rth 9th Street 2.00% 7/1/2021 6/30/2043
Assist wi th improvements to hotel
and conference center 12,156
To tal $704,451
Community Improvement Distr ict (CID)
Neighborhood Revitalization Areas (NRA).NRAs are authorized under Kansas state statutes K.S.A. 12-117 and
subject to City policy to spur investment and revitalization of properties which can benefit a neighborhood and
the public. The program works by rebating a portion of the incremental increase in property taxes resulting from
improvements back to the property owner. The base value, or what the property was valued at prior to
improvements, is shielded from the rebate. Participation in the program and percentage of rebate and duration
are determined separately by the City, County, and School District. The current City of Salina adopted plan is
a 4-year plan running from 2015-2019. It allows for a 10-year rebate and provides rebates from 25% to 100%
depending on year in plan and type of improvement. To receive an NRA, taxpayers must submit an application,
which undergoes due diligence and analysis before being approved by the City. If the NRA is approved, each
year, the applicant must submit proof that property taxes have been paid in full. Because the rebate is not given
until after improvements are put in place and property taxes paid, there are no provisions for recapturing taxes.
The City of Salina approves NRAs on an individual basis.
69
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
K. Tax Abatements (Continued)
2021
Property/Business Na me Address Ty pe Re bate Paid
Ser io Guzman 241 N. Front Str eet Re s 366$
Willi am & Mar y Warhur st 714 Park Str eet Re s 380
Jessi ca A. Ziegler 221 N. 2nd Street Re s 263
Ry an Mu rphy 207 N. Penn Re s 416
Ra ve y Inve stments LLC
157 N. Seventh, 203 W. Ash, 205 W. Ash, 207
W.Ash & 209 W. Ash Com 2,088
Lamont Ou tland 1206 N. 7th Street Re s 526
Mi chelle Bunc h 634 N. 8th Str eet Re s 565
Jermaine and Ty kea Polk 226 N. 2nd Street Re s 633
Ma ry Mar shall 937 N. 3rd Street Re s 495
Angela Fishburn 1219 N. 8th Street Re s 501
GMW Rentals LLC 809 W. Ash Re s 696
Donnie & Ra mona Marrs 2035 E. Iron #300R Re s 6,471
TJ TM, Inc.
2035 E. Iron
#213C/105R/302R/202R/205R/006R/301RA/301
RB/001R/002R/003R/004R/005R Re s 25,581
Tr oy Valcil 853 Na va ho Re s 695
Ti mo thy & Linda Ri ckma n 719 E. Ash Re s 680
Yvette Ge linas 1115 N. 8th Street Re s 531
Char les H Carroll Jr Trust 156-158 S. Santa Fe Com 2,393
Lati sha Pierce 705 N. 2nd Street Re s 533
Ta nya Shiehzadeh 703 N. 2nd Street Re s 566
Ro ber t & Br enda Burns 1205 N. 4th Street Re s 1,024
Pr oper ty Par tner s LLC 116 & 118 N. Santa Fe (2nd Floor Loft Apartments)Com 1,834
Phill He mmer 2035 E. Iron Avenue, Uni t #203R Re s 8,124
AP Pr oper ty Holdi ngs, LLC 201 E. Iron Avenue Com 22,492
Gr egory Davis 156-158 N. 11th Street Re s 1,270
Mi cheal Money 2035 E. Iron Avenue, Uni t #206R Re s 787
Tr aniesh By rd 701 N. 2nd Street Re s 533
Ma rk Mar tin Li vi ng Tr ust 2035 E. Iron #104R Com 2,445
Kevin & Rebec ca Poland 601 Johnstown Re s 327
Jana Endsley 1321 N. 3rd Street Re s 984
Kanesha Samilton 214 W. Grand Avenue Re s 1,248
Ma ria E Padilla 810 N. 5th Str eet Re s 1,243
JK Webb Pr oper ti es LLC 120 S. Santa Fe Avenue Com 8,416
Alan and Na nc y Franzen 1413 Arapahoe Re s 954
Br andon Sear s 900 N. 12th Street Re s 346
Santa Fe Properti es, LLC 131 N. Santa Fe Avenue/128 S. Santa Fe Avenue Com 10,172
Ru sty A Leister Living Tr ust 600 N. Santa Fe Avenue Com 10,438
John & Kr istin Gu nn 2035 E. Iron #200BR Re s 5,747
Chr istopher Helm 608 N. 11th Street Re s 312
Chr istopher Helm 752 N. Broadway Com 11,944
Laur ie Donmyer 255 N. Columbia Re s 1,552
Eva Wright 1200 N. 8th Re s 1,122
Foley Equipment Co.2225 N. Ohio St Com 74,096
Ma rk Ritter 2035 E. Iron #108R Re s 7,167
Angelica Far ris 846 Choctaw Ave Re s 1,190
Chr istopher Vogel 2035 E. Iron #209R Re s 3,786
Chr istopher Helm 619 N. 5th Str eet Com 3,294
HP SA, LLC.501 Bhakta Court Com 24,911
Jordan Bressel 2035 E. Iron #106R Re s 993
Ma ry C. Roth 2035 E. Iron #208R Re s 5,480
Ceec ee Investments LLC 200 S. Santa Fe Avenue Com 1,404
Gr eg Hu ston & Ter ry A Swear ingen 1025 W Cr awford Street Com 8,805
To tal 268,814$
Ne ighborhood Re vi tali zation Act (NRA )
70
CITY OF SALINA, KANSAS
NOTES TO THE BASIC FINANCIAL STATEMENTS
December 31, 2021
Note 5. OTHER INFORMATION (Continued)
L. Subsequent Events
On April 4,2022, the City issued Series 2022-A general obligation internal improvement bonds in the amounts
of $7,840,000. Proceeds from the bonds will be used to provide long-term financing for a portion of the costs
of certain public improvements within the City and to retire a portion of the City’s outstanding general obligation
temporary notes. The City will make the first payment on the bonds on October 1, 2023 the last payment on
October 1, 2037. The interest rate on the bonds ranges from 2.50% to 4.00%.
REQUIRED SUPPLEMENTARY INFORMATION
71
CITY OF SALINA, KANSAS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
Last Ten Fiscal Years*
To tal OP EB li abi li ty 2021 2020 2019 2018
Ser vi ce cost 244,531$ 231,391$ 249,957$ 226,762$
Inter est 104,082 150,552 125,877 128,578
Benefit paid [122,821][159,018][157,465][265,000]
Ec onomic/demographi c gai ns/losses -[255,426]--
Changes in assumpti ons 231,338 128,228 [186,344]90,918
Ne t change in total OP EB liabili ty 457,130 95,727 32,025 181,258
To tal OP EB li abi li ty - beginning 3,615,054 3,519,327 3,487,302 3,306,044
To tal OP EB li abi li ty - ending 4,072,184$ 3,615,054$ 3,519,327$ 3,487,302$
Covered pay roll 25,163,639$25,163,639$25,232,129$24,740,225$
To tal OP EB li abi li ty as a per centage of 16.18% 14.37% 13.95% 14.10%
covered-employ ee pay roll
Ac tuar ially deter mi ned contribution 122,821$ 159,018$ 157,465$ 265,000$
Ac tual contr ibuti on 122,821$ 159,018$ 157,465$ 265,000$
Contributi ons as a percentage
of cove red pay roll 0.49% 0.63% 0.62% 1.07%
*data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is
unavailable.
72
CITY OF SALINA, KANSAS
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
OTHER POSTEMPLOYMENT BENEFITS -KPERS
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
Last Ten Fiscal Years*
To tal OP EB li abi li ty 2021 2020 2019 2018
Ser vi ce cost 64,709$ 57,185$ 52,863$ 52,380$
Inter est 14,404 19,037 22,667 17,061
Effect of economic/demographi c gai ns or losses [151,608] 17,086 [95,243] 75,173
Effect of assumpti ons changes or inputs 984 37,368 7,614 [6,574]
Benef it pay ments [20,904][39,627][28,432][30,368]
Net change in total OP EB li abili ty [92,415] 91,049 [40,531] 107,672
To tal OP EB li abi li ty - begi nning 597,444 506,395 546,926 439,254
To tal OP EB li abi li ty - endi ng 505,029$ 597,444$ 506,395$ 546,926$
Covered pay roll 12,482,683$14,338,983$13,991,543$13,652,194$
To tal OP EB li abi li ty as a per centage of 4.05% 4.17%3.62% 4.01%
cove red-employ ee pay roll
Actuar ially deter mi ned contr ibution 135,087$ 144,746$ 135,087$ 109,466$
Actual contr ibuti on 135,087$ 144,746$ 135,087$ 109,466$
Contributi ons as a per centage of cove red pay roll 1.08% 1.01%0.97% 0.80%
*data became available with the inception of GASB 75 during fiscal year 2018, therefore 10 years of data is
unavailable.
73
CITY OF SALINA, KANSAS
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
KPERS PENSION PLAN
Schedule of the City’s Proportionate Share of the Net Pension Liability
Last Ten Fiscal Years*
2015 2016 2017 2018 2019 2020 2021
City 's proporti on of the net pension li abi li ty
Local 0.764%0.761%0.811%0.790%0.796%0.766%0.701%
Police & Fire 2.258%2.180%2.191%2.081%2.074%2.038%1.982%
City 's proporti onate shar e of the
net pension li abi li ty
Local 10,027,679$11,770,699$11,753,246$11,014,328$11,123,112$13,290,226$8,409,377$
Police & Fire 16,395,794$20,251,512$20,546,882$20,019,473$20,993,820$25,135,770$18,910,472$
City 's cove red-employee pay roll
Local 12,931,197$13,251,236$13,548,056$13,944,989$14,366,294$14,948,415$13,436,992$
Police & Fire 10,161,866$10,730,033$10,593,419$10,441,055$10,859,219$11,285,465$10,970,505$
City 's proporti onate shar e of the net
pensi on li ability as a percentage of its
its cove red-employ ee pay roll
Local 77.55% 88.83% 86.75% 78.98%77.43%88.91%62.58%
Police & Fire 161.35%188.74%193.96%191.74%193.33%222.73%172.38%
Plan fiduciary net posi ti on as a
per centage of the total pension liabili ty
Local 71.98% 68.55% 72.15% 74.22%75.02%70.77%81.14%
Police & Fire 74.60% 69.30% 70.99% 71.53%71.22%66.81%76.09%
*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*
2015 2016 2017 2018 2019 2020 2021
Contr ac tually requi red contr ibuti on
Local 1,256,217$ 1,243,711$ 1,179,745$ 1,205,334$ 1,328,915$ 1,156,925$ 1,259,601$
Poli ce & Fire 2,527,995$ 2,361,273$ 1,986,933$ 2,181,617$ 2,497,473$ 2,405,832$ 2,563,084$
Contr ibuti ons in relati on to the
contractually requi red contr ibuti on
Local 1,256,217 1,243,711 1,179,745 1,205,334 1,328,915 1,156,925 1,259,601
Poli ce & Fire 2,527,995 2,361,273 1,986,933 2,181,617 2,497,473 2,405,832 2,563,084
Contr ibuti on deficienc y [exc ess]-$ -$ -$ -$ -$ -$ -
City 's cove red-employ ee pay roll
Local 13,251,236$13,548,056$13,944,989$14,366,294$14,948,415$13,436,992$14,200,661$
Poli ce & Fire 10,730,033$10,593,419$10,441,055$10,859,219$11,285,465$10,970,505$11,241,597$
Contr ibuti ons as a per centage
of cove red employ ee pay roll
Local 9.48% 9.18% 8.46% 8.39% 8.89% 8.61%8.87%
Poli ce & Fire 23.56% 22.29% 19.03% 20.09% 22.13% 21.93% 22.80%
*Data became available with the inception of GASB 68 during fiscal year 2015, therefore 10 years of data is
unavailable.
COMBINING SCHEDULES AND INDIVIDUAL FUND STATEMENTS SECTION
74
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 district fund -State law allows businesses within an area to voluntarily establish an
improvement district. This fund is used to account for the assessments made on the District. All revenues are to be
used within the Business Improvement District.
Neighborhood park fund -To account for fees collected from new residential building projects in Salina. Expenditures
are for acquisition or development of neighborhood parks in the growing areas of the community.
Special parks and recreation fund -To account for liquor tax revenues, which must be used for park maintenance and
improvements.
Special alcohol fund -To account for liquor tax revenues, which must be used for programs, which address prevention,
education or intervention for drug and alcohol abuse.
Community development revolving fund -To account for funds, which may be loaned for housing and economic
development,purposes, to later be repaid and reused on a revolving basis.
Sales tax economic development fund -To account for 2.34% of the .75 cent sales tax designated for economic
Development purposes.
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 to the developers as part
of the Community Improvement District formed in 2015.
Downtown CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part
of the Community Improvement District formed in 2017.
Alley CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part of
the Community Improvement District formed in 2016.
Downtown Hotel CID fund -To account for incremental sales tax revenues received and disbursed to the developers
as part of the Community Improvement District formed in 2017.
North 9th CID fund -To account for incremental sales tax revenues received and disbursed to the developers as part
of the Community Improvement District formed in 2021.
STAR Bonds Subproject fund -To track disbursements and reimbursements associated with the Stiefel Theatre’s
STAR Bond
State Grants fund -To account for grant revenue and expenditures received from the State of Kansas.
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.
Kenwood cove 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
75
CITY OF SALINA, KANSAS
COMBINING STATEMENTS -NONMAJOR FUNDS
NONMAJOR SPECIAL REVENUE FUNDS -CONTINUED
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.
Special assessments escrow fund -To account for property owners' prepayment on outstanding special assessments.
Court bond and restitution fund -To account for bonds and restitution remitted to the court and awaiting court orders
for distribution.
Police investigation account fund -To account for monies held by the police department for use in investigations.
Citizenship fund -To account for donations received and used for the citizenship fund.
DTF local fund -To account for revenues and expenditures related to the sale of assets acquired during drug
enforcement activities as they relate to local cases. Expenses are limited to equipment and training for the Drug Task
Force.
DTF reserve fund -To account for revenues and expenditures related to the sale of assets acquired during drug
enforcement activities as they related to federal cases placed in a reserve for future use.
Beechcraft remediation settlement fund -To account for revenues 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.
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.
Private grants fund -To account for revenues and expenditures related to grants received from private entities with
specific purposes.
Animal shelter donations fund -To accumulate donations and account for expenses to benefit the animal shelter.
NONMAJOR PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal,
may be used for purposes that support the reporting government’s programs.
Cemetery endowment fund -To account for amounts expended for perpetual care of the City cemetery. Interest
earnings are used for cemetery maintenance.
Mausoleum endowment fund -To account for amounts charged for perpetual care of the City mausoleum. Interest
earnings are used for mausoleum maintenance.
Tricentennial commission fund -To account for donations to be used to celebrate the nation's tricentennial in the year
2076.
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
ASSETS
Cash and investments 10,236,853$ 560,856$ 800$ 10,798,509$
Receivables
Accounts 2,211 --2,211
Total assets 10,239,064$ 560,856$ 800$ 10,800,720$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 193,810$ 1,880$ -$195,690$
Unearned revenue 3,551,978 --3,551,978
Due to other funds 1,158 --1,158
Total liabilities 3,746,946 1,880 -3,748,826
Fund balances:
Restricted 470,533 -800 471,333
Committed 5,814,242 558,976 -6,373,218
Assigned 343,350 --343,350
Unassigned [136,007] --[136,007]
Total fund balances 6,492,118 558,976 800 7,051,894
Total liabilities and fund balances 10,239,064$ 560,856$ 800$ 10,800,720$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2021
See independent auditor's report on the financial statements.
76
Total Total Nonmajor Total
Nonmajor Nonmajor Debt Nonmajor
Special Revenue Permanent Service Governmental
Funds Funds Fund Funds
REVENUES
Taxes 1,765,821$ -$ -$1,765,821$
Intergovernmental 2,239,721 --2,239,721
Charges for services 358,102 17,547 -375,649
Licenses and permits 10,300 --10,300
Investment revenue 13,319 554 -13,873
Donations 89,647 --89,647
Miscellaneous 635,492 --635,492
Total revenues 5,112,402 18,101 -5,130,503
EXPENDITURES
Current
Culture and recreation 1,584,686 --1,584,686
Public safety 312,121 --312,121
Public health and sanitation 1,549,128 --1,549,128
Planning and development 1,189,341 --1,189,341
Miscellaneous -1,880 -1,880
Debt service
Interest and other charges ----
Capital outlay 1,650,384 --1,650,384
Total expenditures 6,285,660 1,880 -6,287,540
Excess [deficiency] of revenues
over [under] expenditures [1,173,258] 16,221 -[1,157,037]
Other financing sources [uses]
Transfers in 1,409,532 --1,409,532
Transfers [out][190,042] --[190,042]
Total other financing sources [uses]1,219,490 --1,219,490
Net change in fund balance 46,232 16,221 -62,453
Fund balance - Beginning of year 6,445,886 542,755 800 6,989,441
Fund balance - End of year 6,492,118$ 558,976$ 800$ 7,051,894$
For the Year Ended December 31, 2021
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.
77
Business Special Community Sales Tax Downtown
Bicentennial Improvement Neighborhood Parks &Special Development Economic TIF South
Center District Park Recreation Alcohol Revolving Development District #1 9th CID
ASSETS
Cash and investments 652,457$ -$44,121$ 549,701$ 234$ 186,307$ 101,846$ 1,096,634$ 50,822$
Receivables
Accounts -2,205 -------
Total assets 652,457$ 2,205$ 44,121$ 549,701$ 234$ 186,307$ 101,846$ 1,096,634$ 50,822$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 94$535$ -$66,758$ -$-$4,491$ -$49,104$
Unearned revenue ---------
Due to other funds -1,092 -------
Total liabilities 94 1,627 -66,758 --4,491 -49,104
Fund balance:
Restricted -578 -245,319 234 186,307 ---
Committed 652,363 -44,121 ---97,355 1,096,634 1,718
Assigned ---237,624 -----
Unassigned ---------
Total fund balance [deficit]652,363 578 44,121 482,943 234 186,307 97,355 1,096,634 1,718
Total liabilities and fund balances 652,457$ 2,205$ 44,121$ 549,701$ 234$ 186,307$ 101,846$ 1,096,634$ 50,822$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2021
Kenwood Special
Downtown Alley Downtown North 9th STAR Bonds State 911 Cove Law Police
CID CID Hotel CID CID Subprojects Grants Communications Capital Enforcement Grants
196,987$ 2,131$71,358$ 12,156$ 2,000,000$ 217,883$ 475,880$ 65,371$ 82$3,479$
----------
196,987$ 2,131$71,358$ 12,156$ 2,000,000$ 217,883$ 475,880$ 65,371$ 82$3,479$
16,613$ 2,128$10,706$ 12,156$ -$-$20,697$7,403$-$-$
----------
----------
16,613 2,128 10,706 12,156 --20,697 7,403 --
----------
180,374 3 60,652 -2,000,000 217,883 349,457 57,968 82 3,479
------105,726 ---
----------
180,374 3 60,652 -2,000,000 217,883 455,183 57,968 82 3,479
196,987$ 2,131$71,358$ 12,156$ 2,000,000$ 217,883$ 475,880$ 65,371$ 82$3,479$
See independent auditor's report on the financial statements.
78
Police
War Federal Department Animal
Federal DARE Memorial Arts &CARE Federal Homeowners'Private Shelter
Grants Donations Maintenance Humanities Grant Forfeiture Funds Assistance Grants Donations
ASSETS
Cash and investments 3,416,037$ 31,887$ 30,873$ 151,402$ 26,141$ 99$20,595$ 11,954$ 550,866$
Receivables
Accounts ---6 -----
Total assets 3,416,037$ 31,887$ 30,873$ 151,408$ 26,141$ 99$20,595$ 11,954$ 550,866$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$-$-$-$-$-$-$-$577$
Unearned revenue 3,551,978 --------
Due to other funds ---------
Total liabilities 3,551,978 -------577
Fund balance:
Restricted ----26,141 --11,954 -
Committed -31,887 30,873 151,408 -99 20,595 -550,289
Assigned ---------
Unassigned [135,941] --------
Total fund balance [deficit][135,941] 31,887 30,873 151,408 26,141 99 20,595 11,954 550,289
Total liabilities and fund balances 3,416,037$ 31,887$ 30,873$ 151,408$ 26,141$ 99$20,595$ 11,954$ 550,866$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
For the Year Ended December 31, 2021
Special Court Police Beechcraft Bail
Assessments Bond and Investigation DTF DTF Remediation Bond
Escrow Restitution Account Citizenship Local Reserve Settlement Escrow Totals
116,682$ 26,840$ 3,385$44,081$ 29,704$ 47,723$ -$1,135$10,236,853$
--------2,211
116,682$ 26,840$ 3,385$44,081$ 29,704$ 47,723$ -$1,135$10,239,064$
-$-$-$-$2,548$-$-$-$193,810$
--------3,551,978
------66 -1,158
----2,548 -66 -3,746,946
--------470,533
116,682 26,840 3,385 44,081 27,156 47,723 -1,135 5,814,242
--------343,350
------[66]-[136,007]
116,682 26,840 3,385 44,081 27,156 47,723 [66]1,135 6,492,118
116,682$ 26,840$ 3,385$44,081$ 29,704$ 47,723$ -$1,135$10,239,064$
See independent auditor's report on the financial statements.
79
Business Special Community Sales Tax Downtown
Bicentennial Improvement Neighborhood Parks &Special Development Economic TIF South
Center District Park Recreation Alcohol Revolving Development District #1 9th CID
Revenues
Taxes -$-$-$-$-$-$391,195$ 701,203$ 239,914$
Intergovernmental ---227,127 227,127 ----
Charges for services -94,726 -------
Licenses and permits --10,300 ------
Investment revenue -------1,224 21
Donations ---------
Miscellaneous 366,192 -------12,116
Total Revenues 366,192 94,726 10,300 227,127 227,127 -391,195 702,427 252,051
Expenditures
Current
Culture and recreation 727,152 --------
Public safety ---------
Public health and sanitation ----227,127 ----
Planning and development -108,452 -----315,326 252,030
Capital outlay ---222,567 --1,009,526 --
Total Expenditures 727,152 108,452 -222,567 227,127 -1,009,526 315,326 252,030
Excess [deficiency] of revenues over
[under] expenditures [360,960] [13,726] 10,300 4,560 --[618,331] 387,101 21
Other financing sources [uses]
Transfers in 695,682 --------
Transfers [out]---------
Total other financing sources [uses]695,682 --------
Net change in fund balance 334,722 [13,726] 10,300 4,560 --[618,331] 387,101 21
Fund balance, beginning of year 317,641 14,304 33,821 478,383 234 186,307 715,686 709,533 1,697
Fund balance, end of year 652,363$ 578$ 44,121$ 482,943$234$ 186,307$ 97,355$ 1,096,634$ 1,718$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2021
Kenwood Special
Downtown Alley Downtown North 9th STAR Bonds State 911 Cove Law Police
CID CID Hotel CID CID Subprojects Grants Communications Capital Enforcement Grants
332,345$ 21,324$ 67,436$ 12,404$ -$-$-$-$-$-$
-----246,390 403,087 ---
----------
----------
291 2 47 ---459 ---
----------
----174,608 -----
332,636 21,326 67,483 12,404 174,608 246,390 403,546 ---
----------
------290,355 ---
----------
438,826 25,065 25,550 12,404 ------
----174,608 35,000 -202,772 --
438,826 25,065 25,550 12,404 174,608 35,000 290,355 202,772 --
[106,190] [3,739] 41,933 --211,390 113,191 [202,772] --
-------68,350 --
----------
-------68,350 --
[106,190] [3,739] 41,933 --211,390 113,191 [134,422] --
286,564 3,742 18,719 -2,000,000 6,493 341,992 192,390 82 3,479
180,374$ 3$60,652$ -$2,000,000$ 217,883$ 455,183$ 57,968$ 82$3,479$
See independent auditor's report on the financial statements.
80
Police
War Federal Department
Federal DARE Memorial Arts &CARE Federal Homeowners'Private
Grants Donations Maintenance Humanities Grant Forfeiture Funds Assistance Grants
Revenues
Taxes -$-$-$-$-$-$-$-$
Intergovernmental 1,135,990 -------
Charges for services - --263,376 ----
Licenses and permits - -------
Investment revenue - -30 -----
Donations - -------
Miscellaneous -30,369 ----1,554 10,000
Total Revenues 1,135,990 30,369 30 263,376 --1,554 10,000
Expenditures
Current
Culture and recreation - --857,534 ----
Public safety - -------
Public health and sanitation 1,223,502 -------
Planning and development -11,688 ------
Capital outlay --------
Total Expenditures 1,223,502 11,688 -857,534 ----
Excess [deficiency] of revenues over
[under] expenditures [87,512] 18,681 30 [594,158] --1,554 10,000
Other financing sources [uses]
Transfers in - - -645,500 ----
Transfers [out]-- ------
Total other financing sources [uses]-- -645,500 ----
Net change in fund balance [87,512] 18,681 30 51,342 --1,554 10,000
Fund balance, beginning of year [48,429] 13,206 30,843 100,066 26,141 99 19,041 1,954
Fund balance, end of year [135,941]$ 31,887$ 30,873$ 151,408$ 26,141$ 99$20,595$ 11,954$
For the Year Ended December 31, 2021
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS (Continued)
Animal Special Court Police Beechcraft Bail
Shelter Assessments Bond and Investigation DTF DTF Remediation Bond
Donations Escrow Restitution Account Citizenship Local Reserve Settlement Escrow Totals
-$-$-$-$-$-$-$-$-$1,765,821$
---------2,239,721
---------358,102
---------10,300
----11,235 --10 -13,319
89,647 --------89,647
---1 -34,592 6,060 --635,492
89,647 --1 11,235 34,592 6,060 10 -5,112,402
---------1,584,686
--4,554 --17,212 ---312,121
98,499 --------1,549,128
---------1,189,341
----5,911 ----1,650,384
98,499 -4,554 -5,911 17,212 ---6,285,660
[8,852] -[4,554]1 5,324 17,380 6,060 10 -[1,173,258]
---------1,409,532
-------[190,042] -[190,042]
-------[190,042] -1,219,490
[8,852] -[4,554]1 5,324 17,380 6,060 [190,032] -46,232
559,141 116,682 31,394 3,384 38,757 9,776 41,663 189,966 1,135 6,445,886
550,289$ 116,682$ 26,840$ 3,385$ 44,081$ 27,156$ 47,723$ [66]$1,135$ 6,492,118$
See independent auditor's report on the financial statements.
81
Cemetery Mausoleum Tricentennial
ASSETS Endowment Endowment Commission Total
Cash and investments 552,860$ 2,073$ 5,923$ 560,856$
Total assets 552,860$ 2,073$ 5,923$ 560,856$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable 1,880$ -$-$1,880$
Total liabilities 1,880 --1,880
Fund balances
Committed 550,980 2,073 5,923 558,976
Total liabilities and fund balances 552,860$ 2,073$ 5,923$ 560,856$
CITY OF SALINA, KANSAS
COMBINING BALANCE SHEET
December 31, 2021
NONMAJOR PERMANENT FUNDS
See independent auditor's report on the financial statements.
82
Cemetery Mausoleum Tricentennial
Endowment Endowment Commission Total
Revenues
Charges for services 17,547$ -$-$17,547$
Investment revenue 546 2 6 554
Total revenues 18,093 2 6 18,101
Expenditures
Miscellaneous 1,880 --1,880
Total expenditures 1,880 --1,880
Net change in fund balance 16,213 2 6 16,221
Fund balances - beginning of year 534,767 2,071 5,917 542,755
Fund balances - end of year 550,980$ 2,073$ 5,923$ 558,976$
NONMAJOR PERMANENT FUNDS
For the Year Ended December 31, 2021
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
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)
BICENTENNIAL CENTER FUND
For the Year Ended December 31, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Miscellaneous 366,192$ 828,674$ 828,674$ [462,482]$
Total revenues 366,192 828,674 828,674 [462,482]
Expenditures
Culture and recreation 727,152 740,000 740,000 12,848
Total expenditures 727,152 740,000 740,000 12,848
Excess [deficiency] of revenues
over [under] expenditures [360,960]88,674 88,674 [449,634]
Other financing sources [uses]
Transfers in 695,682 -828,674 [132,992]
Total other financing sources [uses]695,682 -828,674 [132,992]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]334,722 88,674 917,348 [582,626]
Unreserved fund balance, January 1 317,641 -137,177 180,464
Unreserved fund balance/GAAP fund balance
December 31 652,363$ 88,674$ 1,054,525$ [402,162]$
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)
BUSINESS IMPROVEMENT DISTRICT FUND
For the Year Ended December 31, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 95,808$ 90,500$ 90,500$ 5,308$
Total revenues 95,808 90,500 90,500 5,308
Expenditures
Planning and development 108,452 90,500 90,500 [17,952]
Total expenditures 108,452 90,500 90,500 [17,952]
Excess [deficiency] of revenues
over [under] expenditures [12,644]--[12,644]
Unreserved fund balance, January 1 11,017 4,461 4,461 6,556
Unreserved fund balance, December 31 [1,627]4,461$ 4,461$ [6,088]$
Reconciliation to GAAP
Accounts receivable 2,205
GAAP Fund Balance, December 31 578$
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)
NEIGHBORHOOD PARK FUND
For the Year Ended December 31, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Licenses and permits 10,300$ 3,000$ 4,500$ 5,800$
Total revenues 10,300 3,000 4,500 5,800
Expenditures
Capital outlay -10,000 10,000 10,000
Total expenditures -10,000 10,000 10,000
Excess [deficiency] of revenues
over [under] expenditures 10,300 [7,000] [5,500]15,800
Unreserved fund balance, January 1 33,821 21,751 21,751 12,070
Unreserved fund balance/GAAP fund balance
December 31 44,121$ 14,751$ 16,251$ 27,870$
Budgeted Amounts
See independent auditor's report on the financial statements.
86
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 227,127$ 227,300$ 227,300$ [173]$
Total revenues 227,127 227,300 227,300 [173]
Expenditures
Capital outlay 447,581 251,000 251,000 [196,581]
Total expenditures 447,581 251,000 251,000 [196,581]
Excess [deficiency] of revenues
over [under] expenditures [220,454] [23,700] [23,700] [196,754]
Unreserved fund balance, January 1 465,773 352,706 352,706 113,067
Unreserved fund balance, December 31 245,319 329,006$ 329,006$ [83,687]$
Reconciliation to GAAP
Current year encumbrances 237,624
GAAP Fund Balance, December 31 482,943$
Budgeted Amounts
See independent auditor's report on the financial statements.
87
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Intergovernmental 227,127$ 235,000$ 235,000$ [7,873]$
Total revenues 227,127 235,000 235,000 [7,873]
Expenditures
Public health and sanitation 227,127 235,000 235,000 7,873
Total expenditures 227,127 235,000 235,000 7,873
Excess [deficiency] of revenues
over [under] expenditures ----
Unreserved fund balance, January 1 234 234 234 -
Unreserved fund balance/GAAP fund balance
December 31 234$ 234$ 234$ -$
Budgeted Amounts
See independent auditor's report on the financial statements.
88
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes 391,195$ 338,228$ 344,976$ 46,219$
Miscellaneous -2,000 --
Total revenues 391,195 340,228 344,976 46,219
Expenditures
Capital outlay 1,009,526 375,000 370,000 [639,526]
Total expenditures 1,009,526 375,000 370,000 [639,526]
Excess [deficiency] of revenues
over [under] expenditures [618,331][34,772] [25,024][593,307]
Unreserved fund balance, January 1 715,686 673,791 673,791 41,895
Unreserved fund balance/GAAP fund balance
December 31 97,355$ 639,019$ 648,767$ [551,412]$
Budgeted Amounts
See independent auditor's report on the financial statements.
89
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 263,376$ 324,600$ 324,600$ [61,224]$
Miscellaneous - 78,000 78,000 [78,000]
Total revenues 263,376 402,600 402,600 [139,224]
Expenditures
Culture and recreation 857,534 906,099 906,099 48,565
Total expenditures 857,534 906,099 906,099 48,565
Excess [deficiency] of revenues
over [under] expenditures [594,158] [503,499] [503,499] [90,659]
Other financing sources [uses]
Transfers in 645,500 645,500 645,500 -
Total other financing sources [uses]645,500 645,500 645,500 -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]51,342 142,001 142,001 [90,659]
Unreserved fund balance, January 1 100,066 29,300 29,300 70,766
Unreserved fund balance/GAAP fund balance
December 31 151,408$ 171,301$ 171,301$ [19,893]$
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)
DEBT SERVICE FUND
For the Year Ended December 31, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Taxes
Real estate taxes 2,978,243$ 3,342,920$ 3,342,920$ [364,677]$
Delinquent taxes 86,458 40,000 40,000 46,458
Motor vehicle taxes 374,103 359,534 359,534 14,569
Special assessments 1,405,148 1,328,500 1,328,500 76,648
Miscellaneous -1,744,792 1,744,792 [1,744,792]
Total revenues 4,843,952 6,815,746 6,815,746 [1,971,794]
Expenditures
Debt Service
Principal retirement 10,549,900 2,935,000 2,935,000 [7,614,900]
Interest and other charges 1,917,407 1,750,000 1,750,000 [167,407]
Special assessments -1,336,700 1,336,700 1,336,700
Miscellaneous -2,420,000 2,420,000 2,420,000
Total expenditures 12,467,307 8,441,700 8,441,700 [4,025,607]
Excess [deficiency] of revenues
over [under] expenditures [7,623,355] [1,625,954] [1,625,954] [5,997,401]
Other financing sources [uses]
Transfers in 1,842,841 1,625,000 1,625,000 217,841
Bond proceeds 6,167,545 --6,167,545
Total other financing sources [uses]8,010,386 1,625,000 1,625,000 6,385,386
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]387,031 [954] [954]387,985
Unreserved fund balance, January 1 1,665,599 4,127,073 4,127,073 [2,461,474]
Unreserved fund balance, December 31 2,052,630 4,126,119$ 4,126,119$ [2,073,489]$
Reconciliation to GAAP
Taxes receivable 3,119,483
Deferred revenue [3,060,449]
GAAP Fund Balance, December 31 2,111,664$
Budgeted Amounts
See independent auditor's report on the financial statements.
91
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 3,507,381$ 3,066,100$ 3,066,100$ 441,281$
Miscellaneous 63,483 7,300 7,300 56,183
Total revenues 3,570,864 3,073,400 3,073,400 497,464
Expenditures
Public works 1,967,405 2,409,123 2,409,123 441,718
Total expenditures 1,967,405 2,409,123 2,409,123 441,718
Excess [deficiency] of revenues
over [under] expenditures 1,603,459 664,277 664,277 939,182
Other financing sources [uses]
Transfers [out][659,200][615,675] [615,675][43,525]
Total other financing sources [uses][659,200][615,675] [615,675][43,525]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]944,259 48,602 48,602 895,657
Unreserved fund balance, January 1 4,591,225 4,435,512 4,435,512 155,713
Unreserved fund balance, December 31 5,535,484$ 4,484,114$ 4,484,114$ 1,051,370$
Budgeted Amounts
See independent auditor's report on the financial statements.
92
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 20,071,807$ 19,785,400$ 19,785,400$ 286,407$
Investment revenue -179,300 179,300 [179,300]
Miscellaneous 4,470 4,000 4,000 470
Total revenues 20,076,277 19,968,700 19,968,700 107,577
Expenditures
Public works 8,381,112 14,641,296 14,641,296 6,260,184
Total expenditures 8,381,112 14,641,296 14,641,296 6,260,184
Excess [deficiency] of revenues
over [under] expenditures 11,695,165 5,327,404 5,327,404 6,367,761
Other financing sources [uses]
Transfers in 153,599 [144,400] [144,400]297,999
Transfers [out][8,201,769][5,964,717][5,964,717][2,237,052]
Total other financing sources [uses][8,048,170][6,109,117][6,109,117][1,939,053]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]3,646,995 [781,713] [781,713] 4,428,708
Unreserved fund balances, January 1 16,682,846 13,673,636 13,673,636 3,009,210
Unreserved fund balances, December 31 20,329,841$ 12,891,923$ 12,891,923$ 7,437,918$
Budgeted Amounts
See independent auditor's report on the financial statements.
93
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 3,407,884$ 3,228,400$ 3,228,400$ 179,484$
Miscellaneous 830 --830
Total revenues 3,408,714 3,228,400 3,228,400 180,314
Expenditures
Public works 4,091,836 4,171,267 4,171,267 79,431
Total expenditures 4,091,836 4,171,267 4,171,267 79,431
Excess [deficiency] of revenues
over [under] expenditures [683,122][942,867][942,867]259,745
Other financing sources [uses]
Transfers [out][497,350][417,350][417,350][80,000]
Total other financing sources [uses][497,350][417,350][417,350][80,000]
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses][1,180,472] [1,360,217] [1,360,217]179,745
Unreserved fund balance, January 1 2,149,592 -1,050,423 1,099,169
Unreserved fund balances, December 31 969,120$ [1,360,217]$ [309,794]$ 1,278,914$
Budgeted Amounts
See independent auditor's report on the financial statements.
94
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 789,538$ 870,100$ 870,100$ [80,562]$
Investment revenue -400 400 [400]
Miscellaneous 98,514 --98,514
Total revenues 888,052 870,500 870,500 17,552
Expenditures
Recreation 863,437 858,770 858,770 [4,667]
Total expenditures 863,437 858,770 858,770 [4,667]
Excess [deficiency] of revenues
over [under] expenditures 24,615 11,730 11,730 12,885
Other financing sources [uses]
Transfers in 100,000 [5,800]-100,000
Total other financing sources [uses]100,000 [5,800]-100,000
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]124,615 5,930 11,730 112,885
Unreserved fund balance, January 1 48,087 33,488 33,488 14,599
Unreserved fund balances, December 31 172,702$ 39,418$ 45,218$ 127,484$
Budgeted Amounts
See independent auditor's report on the financial statements.
95
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 250,000$ 250,000$ 250,000$ -$
Miscellaneous 1,279 --1,279
Total revenues 251,279 250,000 250,000 1,279
Expenditures
General government 322,088 430,418 430,418 108,330
Total expenditures 322,088 430,418 430,418 108,330
Excess [deficiency] of revenues
over [under] expenditures [70,809][180,418] [180,418]109,609
Unreserved fund balance, January 1 1,142,019 958,952 958,952 183,067
Unreserved fund balances, December 31 1,071,210$ 778,534$ 778,534$ 292,676$
Budgeted Amounts
See independent auditor's report on the financial statements.
96
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 6,428,331$ 7,268,999$ 7,268,999$ [840,668]$
Miscellaneous 24,298 49,500 49,500 [25,202]
Total revenues 6,452,629 7,318,499 7,318,499 [865,870]
Expenditures
General government 5,815,054 7,151,300 7,151,300 1,336,246
Total expenditures 5,815,054 7,151,300 7,151,300 1,336,246
Excess [deficiency] of revenues
over [under] expenditures 637,575 167,199 167,199 470,376
Unreserved fund balance, January 1 3,216,150 2,922,027 2,922,027 294,123
Unreserved fund balances, December 31 3,853,725$ 3,089,226$ 3,089,226$ 764,499$
Budgeted Amounts
See independent auditor's report on the financial statements.
97
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, 2021
Variance with
Final Budget
Positive
Actual Original Final [Negative]
Revenues
Charges for services 1,545,351$ 1,434,400$ 1,434,400$ 110,951$
Miscellaneous 3,276 --3,276
Total revenues 1,548,627 1,434,400 1,434,400 114,227
Expenditures
General government 1,547,939 1,500,286 1,500,286 [47,653]
Total expenditures 1,547,939 1,500,286 1,500,286 [47,653]
Excess [deficiency] of revenues
over [under] expenditures 688 [65,886][65,886]66,574
Other financing sources [uses]
Transfers in 80,000 80,000 80,000 -
Total other financing sources [uses]80,000 80,000 80,000 -
Excess [deficiency] of revenues
and other sources over [under]
expenditures and other [uses]80,688 14,114 14,114 66,574
Unreserved fund balance, January 1 313,738 189,656 189,656 124,082
Unreserved fund balance, December 31 394,426$ 203,770$ 203,770$ 190,656$
Budgeted Amounts
See independent auditor's report on the financial statements.
98
99
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one agency to other
departments or agencies of the government and to other governmental units on a cost reimbursement basis.
Workers' compensation reserve fund -To account for the costs of providing a partially self-insured workers'
compensation plan and for accumulating the necessary reserve amounts.
Health insurance fund -To account for the costs of providing a partially self-insured health insurance and for
accumulating the necessary reserve amounts.
Central garage fund -To account for the accumulation and allocation for costs associated with the City's centralized
vehicle repair shop.
Total
Workers'Internal
Compensation Health Central Service
ASSETS Reserve Insurance Garage Funds
Current assets:
Cash and investments 1,071,210$ 3,853,726$477,047$5,401,983$
Inventory and prepaid supplies --136,375 136,375
Total current assets 1,071,210 3,853,726 613,422 5,538,358
Capital assets:
Capital assets --168,234 168,234
Less: accumulated depreciation --154,325 154,325
Total capital assets --13,909 13,909
Total assets 1,071,210 3,853,726 627,331 5,552,267
Deferred outflows of resources:
KPERS OPEB deferred outflows of resources --1,575 1,575
Pension deferred outflows of resources --36,501 36,501
Total deferred outflows of resources --38,076 38,076
Total assets and deferred outflows of resources 1,071,210$ 3,853,726$665,407$5,590,343$
Liabilities:
Current liabilities (payable from current assets):
Accounts payable -$-$82,621$ 82,621$
Current portion of compensated absences payable --13,400 13,400
Current portion of accrued claims payable 197,807 417,000 -614,807
Total current liabilities (payable from current assets)197,807 417,000 96,021 710,828
Noncurrent liabilities:
Compensated absences payable --16,655 16,655
Accrued claims payable 168,990 --168,990
Net KPERS OPEB obligation --8,484 8,484
Net pension liability --105,909 105,909
Total noncurrent liabilities 168,990 -131,048 300,038
Total liabilities 366,797 417,000 227,069 1,010,866
Deferred inflows of resources
KPERS OPEB deferred inflows of resources --3,541 3,541
Pension deferred inflows of resources --67,325 67,325
Total deferred inflows of resources --70,866 70,866
Total liabilities and deferred inflows of resources 366,797$ 417,000$ 297,935$1,081,732$
Net Position
Invested in capital assets, net of related debt -$-$13,909$ 13,909$
Unrestricted 704,413 3,436,726 353,563 4,494,702
Total net position 704,413$ 3,436,726$367,472$4,508,611$
CITY OF SALINA, KANSAS
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2021
See independent auditor's report on the financial statements.
100
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Operating revenues
Charges for services 250,000$ 6,428,331$ 1,545,351$ 8,223,682$
Miscellaneous 1,279 24,298 3,275 28,852
Total operating revenues 251,279 6,452,629 1,548,626 8,252,534
Operating expenses
General government 242,390 5,627,054 1,503,421 7,372,865
Depreciation --362 362
Total operating expenses 242,390 5,627,054 1,503,783 7,373,227
Income [loss] before transfers 8,889 825,575 44,843 879,307
Transfers from [to] other funds
Transfers in - - 80,000 80,000
Total transfers --80,000 80,000
Change in net position 8,889 825,575 124,843 959,307
Net position, January 1 695,524 2,611,151 242,629 3,549,304
Net position, December 31 704,413$ 3,436,726$ 367,472$ 4,508,611$
COMBINING STATEMENT OF REVENUES, EXPENSES
INTERNAL SERVICE FUND
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2021
AND CHANGES IN NET POSITION
See independent auditor's report on the financial statements.
101
Total
Workers'Internal
Compensation Health Central Service
Reserve Insurance Garage Funds
Cash flows from operating activities
Cash received from customers and users 170,302$ 6,240,331$1,545,351$7,955,984$
Cash paid to suppliers of goods or services [242,390] [5,627,154] [1,234,304] [7,103,848]
Cash paid to employees --[276,664] [276,664]
Other operating receipts 1,279 24,298 3,275 28,852
Net cash provided by [used in] operating activities [70,809] 637,475 37,658 604,324
Cash flows from noncapital financing activities
Transfers in --80,000 80,000
Net cash provided by [used in] noncapital financing activities --80,000 80,000
Net increase [decrease] in cash and cash equivalents [70,809] 637,475 117,658 684,324
Cash and cash equivalents, January 1 1,142,019 3,216,251 359,389 4,717,659
Cash and cash equivalents, December 31 1,071,210$ 3,853,726$477,047$ 5,401,983$
For the Year Ended December 31, 2021
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
102
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]8,889$ 825,575$ 44,843$ 879,307$
Adjustments to reconcile operating income [loss] to
net cash provided by [used in] operating activities
Depreciation expense --362 362
[Increase] decrease in inventory --[35,156] [35,156]
[Increase] decrease in deferred outflows --11,901 11,901
Increase [decrease] in accounts payable -[100]36,971 36,871
Increase [decrease] in accrued compensated absences --[246] [246]
Increase [decrease] in net pension liability --[81,998] [81,998]
Increase [decrease] in KPERS OPEB liability --[239] [239]
Increase [decrease] in claims payable [79,698] [188,000] -[267,698]
Increase [decrease] in deferred inflows --61,220 61,220
Net cash provided by [used in] operating activities [70,809]$ 637,475$ 37,658$ 604,324$
For the Year Ended December 31, 2021
CITY OF SALINA, KANSAS
INTERNAL SERVICE FUNDS (Continued)
COMBINING STATEMENT OF CASH FLOW S
See independent auditor's report on the financial statements.
103
STATISTICAL SECTION
2012 2013 2014 2015 2016 2017 2018 2019
Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %Amount %
Governmental activities
Net investment in capital
assets 112,929$94%116,585$90%115,589$90%130,401$122%124,635$ 108%129,921$ 105%144,846$109%151,527$110%143,559$ 100%143,768$ 64%
Restricted 1,082 1%1,210 1% 876 1%1,224 1%1,738 1%2,012 2%2,366 2%1,670 1%2,267 2%69,368 31%
Unrestricted 5,511 5%11,628 9%11,413 9%(24,922) -23%(10,505) -9%(8,232) -7%(13,759)-10%(14,839) -11%(1,744) -1%9,997 4%
Total governmental activities
net position 119,522$100%129,423$100%127,878$100%106,703$100%115,868$ 100%123,701$ 100%133,453$100%138,358$100%144,081$ 100%223,133$ 100%
Business-type activities
Net investment in capital
assets 50,857$ 69%57,103$ 75%61,721$ 75%68,107$ 80%62,427$ 71%63,316$ 71%62,368$ 69%63,301$ 68%63,742$ 66%56,004$ 60%
Restricted 1,553 2%1,553 2%1,512 2%1,512 2%1,512 2%1,512 2%1,512 2%1,368 1%1,175 1%1,132 1%
Unrestricted 21,450 29%17,794 23%19,545 24%15,610 18%23,621 27%24,255 27%26,503 29%28,883 31%31,692 33%36,394 39%
Total business-type activities
net position 73,860$ 100%76,450$ 100%82,778$ 100%85,229$ 100%87,560$ 100%89,083$ 100%90,383$ 100%93,552$ 100%96,610$ 100%93,530$ 100%
Primary government
Net investment in capital
assets 163,786$85%173,688$84%177,311$84%198,508$103%187,062$ 92%193,237$ 91%207,213$93%214,828$93%207,301$ 86%199,772$ 63%
Restricted 2,635 1%2,763 1%2,388 1%2,736 1%3,250 2%3,524 2%3,878 2%3,038 1%3,442 1%70,500 22%
Unrestricted 26,961 14%29,422 14%30,959 15%(9,312) -5%13,116 6%16,023 8%12,744 6%14,044 6%29,948 12%46,391 15%
Total primary government net
position 193,382$100%205,873$100%210,658$100%191,932$100%203,428$ 100%212,784$ 100%223,835$100%231,910$100%240,691$ 100%316,663$ 100%
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
20212020
Fiscal Year
Schedule 1
City of Salina, Kansas
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(in 000's)
104
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:
General government 11,278$ 10,978$ 12,175$ 10,743$ 9,188$ 9,780$ 12,013$ 10,866$ 10,395$ 16,098$
Public safety 19,066 19,649 20,208 21,084 22,232 23,120 23,892 25,358 24,672 23,877
Public works 10,957 11,064 11,401 9,049 9,773 10,345 10,458 10,529 10,511 16,335
Public health and sanitation 1,383 1,369 347 995 1,095 1,126 1,256 1,156 1,323 2,315
Culture and recreation 5,338 4,809 5,156 6,517 6,612 6,880 7,040 6,879 5,034 6,305
Planning and development 3,362 3,399 3,236 1,915 2,047 1,835 2,369 2,522 2,004 2,289
Interest on long term debt 1,914 1,953 1,817 1,774 2,971 1,725 2,117 2,169 2,350 2,827
Total governmental activities expenses 53,298 53,221 54,340 52,077 53,918 54,811 59,145 59,479 56,288 70,046
Business-type activities:
Solid waste disposal 2,067 3,532 1,867 1,766 2,335 2,365 2,382 2,871 2,056 1,836
Water and sewer 14,897 15,418 14,938 11,712 14,807 15,650 15,190 14,551 13,386 13,310
Sanitation 2,441 2,237 2,399 1,909 2,043 2,178 2,419 2,313 2,526 3,655
Golf course 723 768 837 821 792 852 926 888 805 878
Total business-type activities expenses 20,128 21,955 20,041 16,208 19,977 21,045 20,917 20,623 18,773 19,678
Total primary government expenses 73,426$ 75,176$ 74,381$ 68,285$ 73,895$ 75,856$ 80,062$ 80,102$ 75,061$ 89,725$
Program Revenues
Governmental activities:
Charges for services
General government 6,328$ 5,548$ 5,662$ 3,151$ 3,134$ 3,470$ 3,569$ 3,401$ 3,339$ 3,440$
Public safety 4,290 4,656 4,222 4,600 4,891 4,601 4,815 4,357 4,325 4,527
Public works 306 277 255 193 238 348 285 309 294 415
Public health and sanitation 46 34 46 46 44 50 47 46 49 63
Culture and recreation 1,728 1,466 1,533 1,501 1,638 1,541 1,545 1,514 279 1,070
Planning and development 158 161 167 73 140 91 150 104 113 114
Operating grants and contibutions 4,495 4,200 4,015 3,394 4,332 4,541 4,299 4,540 4,714 4,711
Capital grants and contributions - - - - 733 - - - - 66,150
Total governmental activities program revenues 17,351 16,342 15,900 12,958 15,150 14,642 14,710 14,271 13,115 80,490
Business-type activities:
Charges for services
Solid waste disposal 3,137 3,138 3,024 2,519 2,795 3,165 3,097 3,082 3,290 3,549
Water and sewer 19,099 17,938 18,742 19,059 19,322 19,855 20,202 20,510 19,449 21,241
Sanitation 2,462 2,514 2,553 2,529 2,751 2,885 3,006 3,325 3,194 3,422
Golf course 783 719 811 820 789 798 756 810 581 790
Capital grants and contributions 274 -115 ------ -
Total business-type activities program revenues 25,755 24,309 25,245 24,927 25,657 26,703 27,061 27,727 26,513 29,001
Total primary government program revenues 43,106$ 40,651$ 41,145$ 37,885$ 40,807$ 41,345$ 41,771$ 41,998$ 39,628$ 109,491$
Net (Expense) Revenue
Governmental activities (35,947)$ (36,879)$ (38,440)$ (39,119)$ (38,768)$ (40,169)$ (39,800)$ (45,208)$ (43,173)$ 10,444$
Business-type activities 5,627 2,354 5,204 8,719 5,680 5,658 6,143 7,103 7,740 9,323
Total primary government net expense (30,320)$ (34,525)$ (33,236)$ (30,400)$ (33,088)$ (34,511)$ (33,657)$ (38,105)$ (35,433)$ 19,766$
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes, general purpose 8,272$ 8,031$ 8,315$ 8,242$ 8,196$ 9,101$ 8,623$ 9,708$ 10,308$ 10,821$
Property taxes, debt service 2,439 2,362 2,578 2,766 3,022 2,487 2,457 2,664 3,058 3,065
Motor vehicle taxes 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 1,520 1,643
Sales tax, general purpose 12,165 12,260 12,689 12,931 12,781 12,906 13,292 13,419 13,697 15,315
Selective sales tax 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 11,405
Other taxes 6,486 6,630 7,231 7,363 7,991 6,900 7,241 6,975 6,117 7,116
Investment revenues 66 67 98 86 148 92 183 670 286 158
Miscellaneous 660 9,918 1,160 2,371 5,842 2,003 1,062 1,168 8,328 2,405
Transfers, net 30 999 787 3,819 3,600 4,309 4,831 4,781 5,133 16,681
Total governmental activities 35,481 45,748 38,569 43,448 47,851 48,002 48,034 50,111 58,199 68,608
Business-type activities:
Investment revenues 79 49 51 56 78 129 233 -4 -
Miscellaneous 434 279 97 - - 103 153 846 446 2,416
Reimbursements 180 132 79 -
Transfers, net (30)(950)-(3,781)(3,581) (4,367) (4,831) (4,781) (5,133) (16,681)
Total business-type activities 483 (622)328 (3,593) (3,424) (4,135) (4,445) (3,935) (4,682) (14,265)
Total primary government 35,964$ 45,126$ 38,897$ 39,855$ 44,427$ 43,867$ 43,589$ 46,176$ 53,517$ 54,343$
Change in Net Position
Governmental activities (466)$ 8,869$ 129$ 4,329$ 9,083$ 7,833$ 8,233 4,902 15,026 79,052
Business-type activities 6,110 1,732 5,532 5,126 2,256 1,523 1,698 3,169 3,058 (4,943)
Total primary government 5,644$ 10,601$ 5,661$ 9,455$ 11,339$ 9,356$ 9,931$ 8,071$ 18,084$ 74,109$
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
Fiscal Year
Schedule 2
City of Salina, Kansas
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(in 000's)
105
2012 2013 2014 2015 2016 2017 2018 2019 2020 (Note 1)2021
General Fund
Nonspendable 116$ 81$ 107$ 111$ 131$ 153$ 152$ 212$ 184$ 168$
Restricted - - - - - - - - --
Committed - - - - - - - - --
Assigned 540 331 239 199 136 214 340 274 244 152
Unreserved/unassigned 3,172 3,138 3,908 4,530 4,765 6,516 6,251 8,821 14,714 20,743
Total general fund 3,828$ 3,550$ 4,254$ 4,840$ 5,032$ 6,883$ 6,743$ 9,307$ 15,142$ 21,064$
Restatement
Restated fund balance
All other governmental funds
Nonspendable -$ -$-$-$-$-$-$-$-$-$
Restricted 3,319 3,446 2,910 2,793 3,142 4,191 4,648 5,224 4,980 72,025
Committed (516)7,486 9,886 8,695 14,284 10,072 7,325 8,086 13,225 16,597
Assigned 4,087 3,146 1,280 619 1,043 641 1,227 963 1,965 1,587
Unreserved/unassigned - - - (10,537) (6,823) (28)(852)(7,804) (4,028) (1,058)
Total all other governmental funds 6,890$ 14,078$ 14,076$ 1,570$ 11,646$ 14,876$ 12,348$ 6,469$ 16,143$ 89,151$
Note 1: Committed fund balance increased due to changes from the implementation of GASB Statement 84 in fiscal year 2020.
Note 2: Restricted fund balance increased due to the City receiving $65.9 million from the federal government in 2021, restricted
for the environmental cleanup of the former Schilling Air Force Base.
Fiscal Year
Schedule 3
City of Salina, Kansas
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
106
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes (see Schedule 5)34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$ 41,958$ 43,492$ 44,452$ 49,364$
Intergovernmental 4,487 4,192 4,008 3,385 4,325 4,536 4,297 4,573 5,317 70,892
Special assessments 2,315 1,706 1,810 1,679 1,669 1,539 1,546 1,596 1,511 1,405
Licenses and permits 8 9 7 10 7 6 3 4 5 10
Charges for services 8,484 8,536 8,276 6,416 6,953 6,880 7,338 6,804 5,557 6,710
Investment revenue 47 40 59 47 142 79 157 670 286 158
Reimbursements 36 9,015 123 491 1,406 - --- -
Donations - - 241 83 141 111 238 90 129 90
Miscellaneous 537 810 799 1,853 4,315 1,851 884 1,545 5,656 1,898
Total revenues 50,638 59,072 51,846 51,135 57,219 56,599 56,421 58,774 62,913 130,528
Expenditures
General government 3,574 4,269 3,986 5,342 5,422 5,423 5,649 4,582 5,506 5,630
Public safety 18,564 19,155 19,559 21,268 21,664 21,629 22,953 23,692 22,435 23,215
Public works 7,004 7,220 7,443 5,333 5,778 6,048 6,162 6,136 6,082 6,166
Public health and sanitation 1,343 1,344 319 982 1,078 1,097 1,236 1,121 1,280 2,296
Culture and recreation 4,449 3,939 4,292 5,659 5,817 6,143 6,255 6,047 4,245 5,317
Planning and development 3,256 3,293 3,232 1,910 2,042 1,801 2,185 2,311 1,794 2,078
Miscellaneous - - - - - - --1,354 2
Capital outlay 7,327 13,047 11,009 25,527 24,001 18,281 16,344 21,913 12,041 24,939
Debt service
Principal 8,592 5,038 5,261 6,250 17,902 5,088 14,243 10,324 5,164 10,550
Interest 2,103 1,867 1,864 1,833 3,152 1,771 2,192 2,136 2,366 2,411
Deposit to escrow 92 -- -------
Total expenditures 56,304 59,172 56,965 74,104 86,856 67,281 77,219 78,262 62,267 82,604
Other financing sources (uses)
Bonds and notes issued 6,150 5,690 5,365 6,825 34,892 11,490 8,090 11,090 8,720 13,813
Bond and note premium 60 185 302 369 1,503 95 70 443 468 592
Transfers in 3,488 4,907 3,001 7,642 7,065 8,339 13,462 9,714 9,323 23,000
Transfers out (3,458) (3,907) (2,999) (3,913) (3,555) (4,160) (4,186) (5,073) (4,271) (6,399)
Total other financing
sources (uses)6,240 6,875 5,669 10,923 39,905 15,764 17,436 16,174 14,241 31,006
Net change in fund balance 574$ 6,775$ 550$ (12,046)$10,268$ 5,082$ (3,362)$ (3,314)$ 14,887$ 78,930$
Debt service as a percentage
of non-capital expenditures 17% 28% 18% 18% 20% 50% 16% 37% 28% 29%
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
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
107
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Real estate 10,466$ 10,145$ 10,657$ 10,729$ 10,972$ 11,377$ 10,804$ 12,182$ 13,150$ 13,500$
Delinquent 245 248 235 279 246 210 276 190 216 385
Motor vehicle 1,153 1,200 1,250 1,312 1,370 1,372 1,428 1,403 1,520 1,643
General sales 12,165 12,260 12,689 12,931 12,781 12,906 13,293 13,419 13,697 15,315
Selective sales 4,210 4,281 4,461 4,558 4,901 8,832 8,917 9,323 9,751 11,405
Other taxes 6,485 6,630 7,231 7,362 7,991 6,900 7,240 6,975 6,117 7,116
Total taxes 34,724$ 34,764$ 36,523$ 37,171$ 38,261$ 41,597$ 41,958$ 43,492$ 44,452$ 49,364$
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
Last Ten Fiscal Years
(modified accrual basis of accounting)
(in 000's)
Fiscal Year
City of Salina, Kansas
Schedule 5
Tax Revenues by Source, Governmental Funds
108
Fiscal
(Budget)
Year Real Estate
Personal
Property State Assessed
Total, Excluding
Motor Vehicles Tax Rate
Motor Vehicle
(Note 1)
Total, Taxable
Assessed Value
Estimated Total
Market Value
(Note 2)
Ratio of
Assessed
Value to Est.
Market Value
2012 369,416,422$ 18,654,394$ 15,779,466$ 403,850,282$ 26.272 47,553,744$ 451,404,026$ 2,889,385,914$ 15.62
2013 370,390,092$ 17,769,120$ 16,948,264$ 405,107,476$ 26.927 48,882,411$ 453,989,887$ 2,917,267,724$ 15.56
2014 376,131,346$ 13,652,885$ 17,670,147$ 407,454,378$ 27.080 48,865,900$ 456,320,278$ 2,957,531,741$ 15.43
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$ 2,964,464,111$ 15.94
2017 399,918,216$ 10,900,308$ 19,671,685$ 430,490,209$ 26.129 50,970,796$ 481,461,005$ 3,097,885,103$ 15.54
2018 403,835,383$ 10,130,718$ 20,485,144$ 434,451,245$ 28.394 53,336,677$ 487,787,922$ 3,150,409,123$ 15.48
2019 421,108,311$ 11,245,813$ 22,113,195$ 454,467,319$ 29.720 54,687,311$ 509,154,630$ 3,294,115,685$ 15.46
2020 423,573,121$ 9,353,057$ 23,436,340$ 456,362,518$ 30.650 54,589,132$ 510,951,650$ 3,326,521,997$ 15.36
2021 427,732,694$ 11,229,345$ 23,975,182$ 459,861,906$ 30.452 56,545,812$ 519,483,033$ 3,392,138,959$ 15.31
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 ("year" Tax Levy Sheet)
Schedule 6
City of Salina, Kansas
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
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.
Assessed Value
109
City of Salina Saline County USD 305 (2)Other (1)
Fiscal
(Budget)
Year
Operating
Millage
Debt
Service
Millage
Total
City
Millage
Operating
Millage
Debt
Service
Millage
Total
County
Millage
Operating
Millage
Debt
Service
Millage
Total
USD
Millage Other
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
2017 21.694 5.909 27.603 37.508 37.508 44.069 11.674 55.743 13.299 134.153
2018 20.339 5.790 26.129 37.321 37.321 45.130 11.371 56.501 13.189 133.140
2019 22.285 6.109 28.394 38.437 38.437 46.776 10.746 57.522 13.988 138.341
2020 22.908 6.812 29.720 41.097 41.097 44.761 10.747 55.508 13.983 140.308
2021 23.847 6.803 30.650 40.606 40.606 45.130 10.729 55.859 12.623 139.738
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 $1,000 of assessed value)
(1) The "Other" column includes the State of Kansas, the Salina Airport Authority, the Salina Public Library and Kansas State Extension
District #3.
Total
110
Taxpayer Type of Business
Assessed
Valuation
% of Total
Valuation Rank
Assessed
Valuation
% of Total
Valuation Rank
Evergy (Westar Energy (Western Resources)Utility 7,852,360$ 1.74%2 19,659,775$ 3.78%1
SFC Global Supply Chain, Inc. (Schwan's)Pizza Manufacturing 8,050,871 1.78%1 5,927,488 1.14%2
Kansas Gas Service Utility 3,352,360 0.74%8 5,415,618 1.04%3
RAF Salina LLC Retail Shopping Mall 6,160,267 1.36%3 4,680,507 0.90%4
S&B Motels Motel N/A 3,010,427 0.58%5
Central Mall Realty Holding LLC Regional Shopping Center N/A 2,851,701 0.55%6
Union Pacific Railroad Co.Railroad N/A 2,565,902 0.49%7
Menard Inc.Home Improvement 3,552,360 0.79%5 2,427,090 0.47%8
Individual Residential N/A 2,367,201 0.46%9
Sams Real Estate Business Trust/Walmart Discount Retail Stores N/A 2,195,047 0.42%10
Wal-mart Real Estate Business Trust Discount Retail Stores 3,458,708 0.77%7
Great Plains Manufacturing Manufacturing 2,346,169 0.52%10
Gateway Properties Shopping Mall (Midstate)3,551,440 0.79%6
Southwestern Bell Telephone Utility 2,464,079 0.55%9
Salina Regional Health Center Hospital and Medical Offices 4,317,497 0.96%4
Combined Valuation of the Ten Largest Taxpayers 45,106,111$ 51,100,756$
City Valuation 451,404,026$ 519,483,033$
Percent of Total City Assessed Valuation 9.99%9.84%
Source: Saline County Clerk's Office or recent OS
Schedule 8
City of Salina, Kansas
Principal Property Taxpayers
Current Year and Ten Years Ago
2021 (2020 Assessed Value)2012 (2011 Assessed Value)
111
Fiscal
(Budget)
Year
Taxes Levied for
the fiscal year Amount Percentage
Delinquent
Collections (1)Amount
Percentage
of levy
2012 10,570,420$ 10,411,299$ 98.5% 245,086$ 10,656,385$ 100.8%
2013 10,550,730$ 10,145,404$ 96.2% 354,845$ 10,500,249$ 99.5%
2014 10,868,225$ 10,776,688$ 99.2% 62,432$ 10,839,120$ 99.7%
2015 10,991,959$ 10,460,246$ 95.2% 372,726$ 10,832,972$ 98.6%
2016 11,209,245$ 10,984,630$ 98.0% 184,970$ 11,169,600$ 99.6%
2017 11,564,876$ 11,320,197$ 97.9% 203,904$ 11,524,101$ 99.6%
2018 11,248,278$ 10,938,457$ 97.2% 276,340$ 11,214,797$ 99.7%
2019 12,335,808$ 12,097,740$ 98.1% 189,587$ 12,287,327$ 99.6%
2020 13,506,590$ 13,203,183$ 97.8% 216,358$ 13,419,541$ 99.4%
2021 13,958,495$ 13,552,390$ 98.0% 283,194$ 13,835,584$ 99.1%
Source: Saline County Treasurer's Office
(1) Delinquent collections are reported in the aggregate for all previous years. Data is not currently
available for "collected in subsequent years"
Current Year Tax
Distributions Total Tax Distributions
Schedule 9
City of Salina, Kansas
Property Tax Levies and Distributions
Last Ten Fiscal Years
112
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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 0.40% 0.40% 0.40% 0.40% 0.40% 0.75% 0.75% 0.75% 0.75% 0.75%
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)61.72% 60.86% 60.23% 60.28% 60.28% 60.28% 59.85% 60.33% 60.17% 60.17%
In May 2016, the voters approved an increase in the Special Purpose Tax rate from .40% to .75%, to be effective October 1, 2016.
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.
Schedule 10
City of Salina, Kansas
Direct Sales Rate by Taxing Entity
Last Ten Fiscal Years
Fiscal Year
113
# 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 17,893 1,225,931 17,966 989,788 18,042 1,003,100 18,086 987,540 18,125 950,697 18,124 988,572 18,130 963,387 18,155 864,810 18,238 965,782 18,303 987,792
Commercial 1,565 38,547 1,579 348,968 1,599 353,675 1,600 350,767 1,603 345,232 1,606 345,250 1,614 340,960 1,607 352,051 1,612 319,080 1,626 349,956
Industrial 42 174,595 40 182,529 42 193,233 44 202,407 44 191,236 44 193,503 44 211,843 44 196,229 43 164,766 41 167,991
Government 99 54,618 99 46,484 97 45,346 97 41,928 99 45,136 99 41,552 98 35,932 97 41,911 94 28,200 72 22,810
Apartment 169 70,263 168 67,155 166 60,865 164 61,400 163 57,039 163 58,378 157 71,559 157 62,127 156 58,651 157 61,021
Schools 81 57,027 84 44,187 84 45,328 85 45,545 85 41,176 83 36,039 81 30,810 79 31,839 78 24,518 78 31,960
Industrial special 1 40,448 1 20,439 - - - - - - - - - - - - - - - -
Consumed in production 12 19,266 12 18,665 12 19,264 12 17,338 9 9,580 8 9,652 7 6,966 7 6,974 7 4,109 6 3,012
Rural water 1 25,930 1 21,530 1 22,993 1 21,915 1 23,384 1 25,624 1 22,345 1 21,663 1 31,776 1 22,970
Hospitals 10 17,896 9 26,482 10 32,184 9 31,858 9 33,728 9 35,132 9 31,856 9 29,892 9 29,483 9 33,109
Religious/non profit 38 5,399 37 4,810 37 4,973 37 4,986 36 5,224 36 4,749 36 4,458 35 2,780 35 2,215 35 2,267
Engineering studies 8 6,104 8 6,822 8 5,095 8 4,807 7 4,573 7 4,772 7 4,471 7 3,835 6 2,553 6 2,213
Providing taxable service 2 6,118 2 3,495 1 3,561 1 3,167 1 3,921 1 3,347 1 2,331 1 2,676 1 1,909 1 2,585
Sale of component parts 8 5,726 6 5,972 6 6,850 5 3,900 4 3,129 4 2,917 4 2,190 4 1,542 4 1,310 4 1,533
Fire hydrant 4 2,533 3 1,922 2 1,474 - - 3 1,727 3 1,790 3 2,829 3 1,180 3 2,106 3 2,146
Industrial consumed in production 3 3,543 3 4,417 3 3,588 3 2,388 3 1,930 3 1,962 3 2,107 3 2,219 3 1,946 3 1,560
Sales of farm equipment 1 83 1 107 1 48 1 53 1 54 1 104 1 56 1 124 1 109 1 154
19,937 1,754,027 20,018 1,793,771 20,111 1,801,577 20,153 1,779,999 20,193 1,717,766 20,192 1,753,343 20,196 1,734,098 20,210 1,621,853 20,291 1,638,511 20,348 1,693,079
Water Rate Schedule:
Monthly meter charge (5/8")$4.74 $4.88 $5.03 $5.20 $5.36 $5.52 $5.74 $5.94 $6.15 $6.27
Commodity charge (per 000 gal.):
0 - 2000 gal.$3.88 $4.04 $4.24 $4.45 $4.48 $4.77 $4.96 $5.13 $5.31 $5.42
2001 - 10,000 gal
Over 10,000 gal.
Excess use charge $7.76 $8.08 $8.48 $8.90 $9.16 $9.54 $9.92 $10.26 $10.62 $10.84
Wastewater Rate Schedule:
Monthly base charge $6.77 $6.97 $7.11 $7.22 $7.36 $7.51 $7.81 $8.08 $8.36 $8.53
Unit cost (per 000 gal.):$4.61 $4.79 $4.94 $5.01 $5.19 $5.29 $5.51 $5.70 $5.90 $6.02
Water sold is expressed in thousands of gallons.
Number of Accounts billed is the annual number of billings for each class divided by 12.
Monthly meter charge increases with the size of the meter.
Residential W astewater is calculated based on Winter Quarter water consumption. Other accounts are based on monthly water consumption.
2008 W ater Consumption Rate Structure changed from a decreasing tier structure to one rate and Excess Use Charge which is double the consumption rate
Source: City of Salina Water Customer Accounting Office.
202120202019201820172013201620152012
Schedule 11
City of Salina, Kansas
Water Sales by Class of Customer
Last Ten Fiscal Years
2014
114
Fiscal Year
General
Obligation
Bonds Loans Payable Capital Lease Temporary Notes
General
Obligation
Bonds
Water
Revenue
Bonds Loans Payable
Temporary
Notes
Total Primary
Government
Percentage
of Personal
Income
2012 49,109,575$-$ -$ 1,485,000$ 9,613,926$ 15,850,228$-$ -$ 76,058,729$ 3.8%
2013 49,631,797$-$ -$ 3,800,000$ 8,519,799$ 15,226,532$-$ -$ 77,178,128$ 3.7%
2014 50,033,555$-$ 176,235$ 5,000,000$ 9,587,351$ 14,592,836$6,208,102$ -$ 85,598,079$ 4.1%
2015 50,840,632$-$ 479,366$ 5,995,000$ 8,539,773$ 13,949,139$5,753,620$ -$ 85,557,530$ 4.1%
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%
2017 55,994,305$12,171,090$ 157,868$ 6,811,742$ 6,520,433$ 12,606,747$8,862,810$ -$ 103,124,995$ 4.9%
2018 51,968,310$12,185,053$ -$ 18,123,505$ 5,282,578$ 11,898,051$10,632,351$ -$ 110,089,848$ 4.9%
2019 54,607,702$12,640,000$ -$ 11,170,000$ 4,102,298$ 10,330,000$46,354,852$ -$ 139,204,852$ 6.0%
2020 56,587,549$12,640,000$ -$ 7,050,000$ 8,742,451$ 9,615,000$ 35,926,029$ -$ 130,561,029$ 5.5%
2021 59,582,649$12,640,000$ -$ 3,647,188$ 7,672,351$ 8,865,000$ 43,966,366$ -$ 136,373,554$ 5.5%
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
Governmental Activities Business-Type Activities
Schedule 12
City of Salina, Kansas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
115
Fiscal Year
General
Obligation
Bonds Capital Lease
Temporary
Notes Total
Less: Debt
Service Fund
Net General
Bonded Debt
Percentage of
Actual Taxable
Value of Per Capita
2012 58,723,501$-$1,485,000$ 60,208,501$582,412$ 59,626,089$13.1%1,241.05$
2013 59,620,906$176,235$ 5,000,000$ 64,797,141$707,763$ 64,089,378$13.8%1,339.49$
2014 59,620,906$176,235$ 5,000,000$ 64,797,141$407,864$ 64,389,277$13.6%1,345.17$
2015 59,380,405$479,366$ 5,995,000$ 65,854,771$745,339$ 65,109,432$13.5%1,361.75$
2016 62,514,738$157,868$ 6,811,742$ 69,484,348$1,248,914$ 68,235,434$14.0%1,441.51$
2017 57,250,888$-$18,123,505$75,374,393$1,509,863$ 73,864,530$14.5%1,571.79$
2018 58,710,000$-$11,170,000$69,880,000$1,851,358$ 68,028,642$13.3%1,447.60$
2019 65,330,000$-$7,050,000$ 72,380,000$1,142,418$ 71,237,582$13.9%1,524.91$
2020 65,330,000$-$7,050,000$ 72,380,000$1,724,117$ 70,655,883$13.8%1,517.85$
2021 67,255,000$-$3,647,188$ 70,902,188$2,111,664$ 68,790,524$13.2%1,486.59$
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
General Bonded Debt Outstanding
Schedule 13
City of Salina, Kansas
Ratio of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
116
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 68,790,524$ 100.00%68,790,524$
Overlapping:
Salina Airport Authority 19,615,000 100.00% 19,615,000
Saline County 1 75,523,554 73.79% 55,728,830
USD 305 99,700,000 93.10% 92,820,700
Total Overlapping Debt 194,838,554 168,164,530
Total Direct and Overlapping Debt 263,629,078$ 236,955,054$
Per Capita Direct and Overlapping debt 5,005.81$
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, 2021
1 Includes $74,900,000 of bonds issued by Saline County that have a pledge of both property
taxes and a dedicated 0.50% retailers’ sales tax of the county. However, based on historical
collections, the County anticipates that such bonds will be repaid entirely from the sales tax.
117
Assessed Valuation 519,483,033$
Debt Limit (30% of Assessed Value)155,844,910
Debt applicable to limit:
Total Bonded Debt 142,079,520$
Less GO Debt Attributable to Exempt Purposes (7,672,351)
Less Revenue Bonds (8,865,000)
Less Loans Payable (56,606,366)
Less Fund Balance designated for Debt Service (2,111,664)
Total Debt Applicable to Limitation 66,824,139$
Legal debt margin 89,020,771$
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debt Limit 135,421,208$ 136,196,966$ 136,896,083$ 138,909,078$ 141,804,931$ 142,000,537$ 146,336,377$ 152,724,804$ 153,285,495$ 155,844,910$
Total net debt applicable to limit 49,309,445 52,724,034 56,090,293 74,229,612 62,072,485 61,296,184 68,240,457 66,232,649 65,748,563 66,824,139
Legal debt margin 86,111,763$ 83,472,932$ 80,805,790$ 64,679,466$ 79,732,446$ 80,704,353$ 78,095,920$ 86,492,155$ 87,536,932$ 89,020,771$
Total net debt applicable to the limit as a percentage of
debt limit 36%39%41%53%44%43%47%47%43%43%
Last Ten Fiscal Years
Fiscal Year
Legal Debt Margin Calculation for 2021
Schedule 15
City of Salina, Kansas
Legal Debt Margin
118
Utility Service Less Operating Net Available
Debt
Service
Fiscal Year Charges Expenses Revenue Principal Interest Coverage
2012 19,163,426$12,222,431$ 6,940,995$ 340,000$ 596,992$ 7.41
2013 17,974,089$13,373,088$ 4,601,001$ 620,000$ 590,191$ 3.80
2014 18,964,164$12,112,288$ 6,851,876$ 630,000$ 577,791$ 5.67
2015 19,139,612$9,859,974$ 9,279,638$ 640,000$ 565,191$ 7.70
2016 19,389,348$11,800,473$ 7,588,875$ 660,000$ 549,191$ 6.28
2017 19,958,862$13,148,035$ 6,810,827$ 675,000$ 529,391$ 5.65
2018 20,382,469$12,973,621$ 7,408,848$ 705,000$ 509,141$ 6.10
2019 20,842,606$13,269,741$ 7,572,865$ 725,000$ 487,991$ 6.24
2020 19,448,780$12,460,334$ 6,988,446$ 715,000$ 327,117$ 6.71
2021 21,240,517$12,077,933$ 9,162,584$ 750,000$ 282,825$ 8.87
Source: City of Salina Annual Comprehensive Financial Reports, 2012 - 2021
City of Salina Debt Service Schedules
Water/Sewer Revenue Bonds
Schedule 16
City of Salina, Kansas
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
119
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
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%
2017 46,994 44,732$ 2,102,135,608$ 2.7%27,684 7,176 62.1% 5,755,869$122.48$ 0.274%
2018 46,994 47,945$ 2,253,127,330$ 3.3%30,174 7,180 61.7% 5,770,174$122.79$ 0.256%
2019 46,716 49,983$ 2,335,005,828$ 2.9%30,094 7,245 59.2% 5,968,961$127.77$ 0.256%
2020 46,550 50,820$ 2,365,671,000$ 3.4%30,094 7,156 59.0% 5,998,424$128.86$ 0.254%
2021 46,274 53,309$ 2,466,820,666$ 2.3%24,962 7,031 44.3% 6,687,099$144.51$ 0.271%
Sources:Increase in per capita Sales Tax (10 years)18.1%
Population: Kansas Division of the Budget. (Population Data)Increase in per capita Personal Income 21.7%
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
2017 Per Capita Personal Income staff projection
2011 -2021 Employment City of Salina
USD305 headcount and free and reduced lunch data derived from Kansas Department of Education./USD 305 Budget Document
Employment: Kansas Department of Labor
Schedule 17
City of Salina, Kansas
Demographic 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 2020-
2021 school year is reported as 2020.
120
Employer Type of Business Employees Rank
Percentage of
Labor Force Employees Rank
Percentage of
Labor Force
Salina Regional Health Center Health Care 1300 3 5.0%1,875 1 6.2%
Unified School District No 305 Public School System 1659 2 6.3%1,500 2 5.0%
Schwan's Global Supply Chain Frozen Pizza Manufacturing 1800 1 6.9%1,200 3 4.0%
Great Plains Manufacturing Agricultrual & Landscaping Equipment 1,200 4 4.0%
Exide Technologies/Stryten Manufacturing Automotive Battery Manufacturer 750 4 2.9%700 5 2.3%
City of Salina City Government 465 6 1.8%425 6 1.4%
Salina Vortex Manufacturing 385 7 1.3%
Saline County County Government 277 10 1.1%325 8 1.1%
Walmart Retail 421 7 1.6%250 9 0.8%
REV Group Manufacturing 175 10 0.6%
Signify Fluorescent Lamps 490 5 1.9%-
Dillon Stores Retail 343 8 1.3%-
Solomon Corp.Electrical Equipment 324 9 1.2%-
Total 7,829 29.9%8,035 32.2%
Source: Salina Chamber of Commerce
2021
Schedule 18
City of Salina, Kansas
Principal Employers
Current Year and Nine Years Ago
2012
121
GOVERNMENTAL AUDIT SECTION
Federal
Federal Grantor/Pass-Through CFDA
Grantor/Program Title Number Expenditures
U.S. Department of Housing and Urban Development
Passed Through the Kansas Housing Resources Corporation:
Emergency Solutions Grant 14.231 1,487,072$
Total U.S. Department of Housing and Urban Development 1,487,072
U.S. Department of Justice
Crime Victims Assistance 16.575 300
Total U.S. Department of Justice 300
U.S. Department of the Treasury
Passed Through Saline County:
Coronavirus Relief Fund 21.019 35,000
Total U.S. Department of the Treasury 35,000
U.S. Department of Transportation
Passed Through Kansas Department of Transportation:
Highway Safety Cluster:
State and Community Highway Safety 20.600 7,651
National Priority Safety Programs 20.616 5,685
Total Highway Safety Cluster 13,336
Total U.S. Department of Transportation 13,336
Total Expenditures of Federal Awards 1,535,708$
CITY OF SALINA, KANSAS
SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS
For the Year Ended December 31, 2021
See independent auditor's report on the financial statements.
122
123
CITY OF SALINA, KANSAS
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2021
1.Organization
The City of Salina, Kansas, (the City), is the recipient of several federal awards. All federal awards received
directly from federal agencies as well as those awards that are passed through other government agencies,
are included on the Schedule of Expenditures of Federal Awards.
2.Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City
and is presented in accordance with generally accepted accounting principles. The information presented in
this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part
200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The
City elected not to use the 10% de minimis indirect cost rate.
3. Local Government Contributions
Local cost sharing is required by certain federal grants. The amount of cost sharing varies with each program.
Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards.
4.Additional Audits
Grantor agencies reserve the right to conduct additional audits of the City’s grant programs for economy and
efficiency and program results that may result in disallowed costs to the City. However, management does not
believe such audits would result in any disallowed costs that would be material to the City’s financial position
as of December 31, 2021.
5.Outstanding Loans
The City did not have any outstanding loans under any federal grants as of December 31, 2021.
6.Pass Through Numbers
Pass through numbers have not been assigned to pass through grants on the Schedule of Expenditures of
Federal Awards.
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued:Unmodified
Internal control over financial reporting:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified that are not
considered to be material weaknesses?Yes X None reported
Noncompliance material to financial statements noted?Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified that are not
considered to be material weaknesses?Yes X None reported
Type of auditor's report issued
on compliance for major programs:Unmodified
Any audit findings disclosed that are required to be
reported in accordance with section 510(a)
of Uniform Guidance?Yes X No
Identification of major programs:
CFDA Number(s)
14.231
Dollar threshold used to distinguish between
type A and type B programs:
Auditee qualified as low-risk auditee?Yes X No
CITY OF SALINA, KANSAS
Emergency Solutions Grant
$750,000
Name of Federal Program or Cluster
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2021
See independent auditor's report on the financial statements.
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Section II - Financial Statement Findings
Prior Year Findings
None Noted.
Current Year Findings
None Noted.
Section III - Federal Award Findings and Questioned Costs
Prior Year Findings
None Noted.
Current Year Findings
None Noted.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
CITY OF SALINA, KANSAS
For the Year Ended December 31, 2021
See independent auditor's report on the financial statements.
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INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH “GOVERNMENT AUDITING STANDARDS”
Mayor and City Commission
City of Salina, Kansas
We have audited, in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, and the Kansas Municipal Audit and Accounting Guide, the financial statements of the
City of Salina, Kansas (the City),as of and for the year ended December 31, 2021, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements, and have issued our report
thereon dated October 14, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion
on the effectiveness of the City’s internal control.
A deficiency in internal controls exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the financial statements will not be
prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charge with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting
that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However,material
weaknesses or significant deficiencies may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.
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Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
Certified Public Accountant
Lawrence, Kansas
October 14, 2022
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
Mayor and City Commission
City of Salina, Kansas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the compliance of the City of Salina, Kansas (the City),with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on
each of the City’s major federal programs for the year ended December 31, 2021. The City’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that
could have a direct and material effect on each of its major federal programs for the year ended December 31, 2021.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States (Government Auditing Standards); and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does
not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirement referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grants agreements applicable to the City’s federal
programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion of the City’s
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not
detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial
likelihood that, individually or in the aggregate, it would influence the judgement made by a reasonable user of the
report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we
exercise professional judgement and maintain professional skepticism throughout the audit.
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identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding Example Entity's compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies, and material weaknesses in internal control over
compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed no instances of noncompliance or other matters that are required to
be reported under Government Auditing Standards.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent or
detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A
material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of the internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in the
internal control over compliance that might be material weaknesses or significant deficiencies. Given these
limitations, we did not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.However, material weaknesses or significant deficiencies may exist that were not
identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the City as of and for the year ended December 31, 2021, and have
issued our report thereon dated October 14, 2022, which contained an unmodified opinion on those financial
statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by the Uniform Guidance and is not a required part of the financial statements. Such information is the
responsibility of management and was derived from and relates 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 accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the financial statements as a whole.
Certified Public Accountant
Lawrence, Kansas
October 14,2022