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Audit - 2004 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF CITY OF SALINA, KANSAS 300 West Ash Street P.O. Box 736 Salina, Kansas 67402-0736 For the Fiscal Year Ended December 31,2004 Prepared by Department of Finance and Administration of City of Salina, Kansas This page intentionally left blank. CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2004 TABLE OF CONTENTS Paae INTRODUCTORY SECTION Letter of Transmittal i-v GFOA Certificate of Achievement for Excellence in Financial Reporting vi Organizational Chart vii List of Principal Officials viii FINANCIAL SEC-nON Independent Auditors Report on the Basic Financial Statements 1 - 2 Management's Discussion and Analysis 3 - 14 Basic Financial Statements: Government-wide Financial Statements Statement of Net Assets 15 Statement of Activities 16 Fund Financial Statements Balance Sheet - Governmental Funds 17 Reconciliation of the Total Governmental Fund Balance to Net Assets of Governmental Activities 18 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 19 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance with the Government-Wide Statement of Activities 20 Statement of Net Assets - Proprietary Funds 21 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds 22 Statement of Cash Flows - Proprietary Funds 23 - 24 Statement of Assets and Liabilities - Agency Funds 25 Notes to the Basic Financial Statements 26 - 48 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31,2004 TABLE OF CONTENTS - CON1-INUED Paae FINANCIAL SECTION - CONTINUED Required Supplementary Information Schedules of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Non-GMP Basis) General Fund Employee Benefit Fund Flood and Drainage Improvement Fund Tourism and Convention Fund Special Gas Fund Bicentennial Center Fund 49 - 51 52 - 53 54 55 56 57 Combining Statements and Individual Fund Schedules Combining Statements - Nonmajor Funds Fund Descriptions Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Combining Balance Sheet - Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Combining Balance Sheet - Nonmajor Permanent Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Permanent Funds 58 - 59 60 61 62 - 63 64 - 65 66 67 Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Non-GMP Basis): Business Improvement District Fund Neighborhood Park Fund Special Parks and Recreation Fund Special Alcohol Fund Fair Housing Fund Debt Service Fund Solid Waste Disposal Fund Water and Sewer Fund Sanitation Fund Golf Course Division Fund Risk Management Fund Workers' Compensation Fund Health Insurance Fund Central Garage Fund Computer Technology Fund 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2004 TABLE OF CONTENTS - CON1-INUED FINANCIAL SECTION - CONTINUED Internal Service Fund Descriptions Combining Statement of Net Assets - Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Assets - Internal Service Funds Combining Statement of Cash Flows - Internal Service Funds Fiduciary Fund Descriptions - Agency Funds Combining Balance Sheet - Agency Funds Combining Statement of Changes in Assets and Liabilities - Agency Funds STATISTICAL SEC-rION General Governmental Expenditures by Function - Last Ten Years General Governmental Revenues by Source - Last Ten Years General Governmental Tax Revenues by Source - Last Ten Years Property Tax Levies and Collections - Last Ten Years Assessed and Estimated Actual Value of Property - Last Ten Years Principal Taxpayers Property Tax Rates - Direct and Overlapping Governments Special Assessments Billings and Collections Computation of Legal Debt Margin Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Table 2 3 4 5 6 7 8 9 10 Pace 83 84 85 86 - 87 88 89 90 91 92 93 94 95 96 97 98 99 100 CITY OF SALINA, KANSAS Comprehensive Annual Financial Report For the year ended December 31, 2004 TABLE OF CONTENTS - CON1-INUED STATISTICAL SECTION - CONTINUED Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures Computation of Direct and Overlapping Debt Revenue Bond Coverage - Water and Sewer Fund Property Value and Construction Demographic Analysis Enterprise Fund Operating Position History Table PaQe 11 101 12 102 13 103 14 104 15 105 16 106 INTRODUCTORY SECTION This page intentionally left blank. DEPARTMENT OF FINANCE AND ADMINIS-rRATION Rodney Franz, Director 300 West Ash, P.O. Box 736 Salina, Kansas 67402-0736 City of ~ Salina TELEPHONE (785) 309-5735 FAX (785) 309-5738 TDD (785) 309-5747 E-MAIL rod.franz@salina.org Website: www.cLsalina.ks.us August25,2005 To the Citizens of the City of Salina, Kansas: The Comprehensive Annual Financial Report of the City of Salina, Kansas (the "City") for the year ended December 31,2004, is hereby submitted. The City's Finance Department prepared the report. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of all various funds and account groups of the City. We believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. Report Format -rhe 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. -rhe City's organizational chart is also included to assist the reader in understanding the structure of the City. The financial section includes the Independent auditor's report, Management's discussion & analysis, Government wide financial statements, Fund financial statements, Notes to the financial statements, and Individual and combining statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. -rhe reader is specifically directed to Management's Discussion and Analysis (MD&A) which immediately follows the independent auditor's report. MD&A provides a narrative explanation and overview of significant features and trends reflected by data in the financial statements. Accounting Systems and Internal Controls A critical part of the control system is the City's comprehensive Budgetary and Financial Policies, which establish guidelines for budgetary and financial practices. The Budgetary and Financial Policies are reviewed by the City Commission and updated each year as a part of the budget process. City staff is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgment by management. -rhe objective of buqgetary 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 31,2004 in the general fund and the special revenue funds. Various internal compliance procedures are implemented to insure proper implementation of the budget as well as to maintain a degree of accountability for both revenues and expenditures. Independent Audit Kansas Statutes Annotated 75-1122 requires an annual audit of the books of account, financial records and transactions of all administrative departments of the City by independent certified public accountants selected by the City Commission. This requirement has been complied with and the auditor's opinion has been included in this report. Profile of the Community The Town of Salina was organized in 1858 under the Town and Village Act in the State of Kansas, and became a City of the First Class on July 9, 1920. The City has had a Commission-City Manager form of government since 1921. The Commission is comprised of five members elected at large. Each year the commission chooses one member to act as Mayor. -rhe City Manager is appointed by the Commission, and acts as it's primary agent in accordance with state statute. Other city officers and employees are appointed by the City Manager. The current population of the City is 45,969. The reporting entity includes the City of Salina as well as two discretely presented component units, both proprietary fund types. The Salina Airport Authority operates the Salina Municipal Airport and Airport Industrial Center, and the Salina Housing Authority administers public housing programs within the City of Salina. In addition, the City of Salina participates in two joint ventures with Saline County, the Salina - Saline County Board of Health and the City-County Building Authority. This report includes all funds and account groups of the City. The City provides a full range of services including police and fire protection, development services, construction and maintenance of streets, drainage facilities and other infrastructure; recreational activities and cultural events; emergency medical services and convention facilities. In addition to general government activities, the City also provides water, wastewater, sanitation. and solid waste services; therefore, these activities are included in the reporting entity. Economic Outlook and Strength The City benefits from its location at the junction of Interstate Highways 70 and 135. This convenient location has drawn numerous national and regional companies to open manufacturing or distribution centers in or adjacent to the community. Such companies include Raytheon Aircraft, Pepsi-cola, Exide Battery, Philips Lighting, EIDorado Bus and lock/line. Currently manufacturing, retail trade, and service industries rank as the three primary employers in the City. No single industry is dominant. The City of Salina retains its position near the top of a list of first class cities with respect to 'trade pull factor", ranking 5th (pull factor = 1.53). The pull factor measures the degree to which a city or county area captures retail trade from outside the jurisdiction. A pull factor of greater than 1 indicates that a city is attracting more retail trade from outside the city/county than it is losing to other counties. It is apparent from this that Salina continues to serve as a regional economic hub in 2004. In addition, Saline County continues to rank third in the State Economic Strength index, as outlined by Kansas State University research and extension. -rhe index measures economic prosperity. using wealth, personal income, and employment. 2004 represented a time of continuing economic challenges for the community and the nation. Growth in the building industry continued, but at a reduced pace. Value of permits issued fell from $46 million to $41, million, while new commercial permit value increased from $19 million to $22 million. However, these are still both well within historical ranges. The unemployment rate for the City increased to 4.80/0 at the close of 2004, considerably below statewide and national rates. 11 The growth activity in the local housing industry continued in 2004. The strong local economy and lower interest rates contributed to this demand. Eighty-three (83) new single-family homes were started in 2004. This is just slightly below the average of the previous 9 years. In addition to single family homes, one significant (48 total living units) multi-family housing complexes were permitted in 2004. Major Initiatives The Salina community initiated a major improvement to the educational system in November 1999, when the voters approved a $98,000,000 bond issue to be used for school expansion and construction. Also approved in the same election was an additional X. cent City sales tax to be used for instructional technology and career educational equipment. Bond issue proceeds have been used to construct a new middle school (now complete), replacing a structure built in 1912. In addition, expansions and improvements are completed or substantially underway at both high schools, at South Middle School, and at the Elementary Schools. The tax for this purpose is scheduled to sunset June 30, 2004. From project inception through June 30, 2004, the City has transferred a total of $ 11,563,268 in sales tax proceeds to U.S.D. 305 for use in the technology project. In March, 2004, voters elected to extend the X. cent tax until June 30,2010. Eighty-five percent (850;0) of the tax is to be used for capital improvements, tax stabilization, and human services. The remaining 150/0 is to be used for economic development programs. A $4.5 million project to construct an interchange at Waterwell Road and 1-135 has been completed by the State of Kansas. This is a cooperative City-County-State Project, with the City of Salina share projected at $950,000. Saline County will contribute $365,000, with the State of Kansas picking up the balance of the project as part of a major economic development program. -rhis interchange provides direct service to the South Ninth Street Industrial Area as well as the Airport Industrial Center. In 2001, the City progressed towards another major transportation objective with the announcement of a grant to construct a railroad overpass on North Ohio Street, a major arterial and entryway to the city. The State of Kansas will contribute $12,000,000 towards the $20,000,000 project, with the City of Salina and the railroad paying the remaining portion. The project will eliminate four tracks and bridge six additional tracks, providing significant traffic safety enhancements as well as improving access to the City from Interstate 70. During 2004 progress continued on the project, including acquisition of the required additional property. This phase of the project was nearly complete at the close of 2004, with project bid letting scheduled for mid-2005. ~rhe project is due to be completed in late 2007. Major improvements to the Water Treatment Plant were initiated in 1998 to increase treatment capability and efficiency, and to address a groundwater contamination issue in Central Salina. This groundwater redemption project brought the City into full completion of a state compliance agreement, eliminating any economic impacts related to groundwater issues. Cost for the plant improvements was $5,500,000. Approximately $1,800,000 in grant funds from the State of Kansas assisted in construction. The balance of the cost is financed by a 20-year low interest loan from the State of Kansas. A second phase of the project has been initiated, at an additional estimated cost of $4,000,000, also financed by a 20 year loan. This phase of the project will replace and expand the clarifiers, provide a new lab facility, as well as an administration building. This project was completed in 2004. Solid Waste disposal is becoming a stable operation, with 80,000 to 90,000 tons being disposed of each year. The community remains committed to recycling and resource conservation, with several initiatives that began in 1997, including a yard waste recycling and composting program in addition to continuing a mulching mower rebate program. -rhe community currently has about 4,700 yard carts placed to encourage recycling of yard waste as an alternative to disposal. A Pilot residential recycling program was continued in 2004. This program involves 968 households, and will continue until June, 2005, at which time results will be evaluated and a decision made as to the expansion of the program to the rest of the community. Capital Improvement Planning -rhe City's Capital Improvement Plan (CIP) consists of two components. One component consists of Uroutine" capital-including vehicle and equipment replacement, technology replacement, building repair and improvement, routine pavement maintenance activity, utility system enhancements and similar items. The amount offunding for iii these projects may fluctuate based on needs and funding availability, however, planned amounts are allocated over a multi-year period. Source of funding for routine capital is current cash resources from the fund appropriate to the nature of the purchase. The second component of the CIP includes major projects that typically require issuance of bonds or notes, although these projects may also be supplemented with available cash and grant financing. The plan is updated each year after an extensive evaluation of the demands on future financial resources. The Capital Improvement program is scheduled for a major revision as the result of the sales tax to be used for that purpose. Construction Initiated*: 2006 2007 2008 2009 2010 Routine Capital (All Funds) $ 3.4001000 $ 3,400,000 $ 5,000,000 $ 4.000,000 $ 4,000,000 Major Projects: General Fund Sales Tax* $ 122,500 $ 500,000 $ 415,000 $ 415,000 Flood and Drainage Fund $ 200,000 $ 200,000 $ 200.000 $ 200,000 $ 200,000 Special Park Fund $ 120,000 $ 120,000 $ 120.000 $ 120,000 $ 120,000 Gas Tax Fund Solid Waste Fund Water & Wastewater Fund $ 1,873,350 General Obligation Bonds $ 2,100,000 $ 2,000,000 $ 2,000,000 $ 3,000.000 $ 1.000,000 Revenue Bonds $ Other Sources $ 1,500.000 Total $ 9,315.850 $ 6,220,000 $ 7,735,000 $ 7,735,000 $ 5.320,000 *The year a project is scheduled reflects the year that construction is initiated. Preliminary work (design, acquisition) may precede this date by one or more years, and permanent financing may not occur until one (or more years depending on project magnitude) subsequent to this date. Financial Policies The City has adopted a formal set of Budgetary and Financial Policies, addressing such items as fund balances, capital improvements, operating budgets, long term debt management, accounting, auditing and financial reporting, revenues, cash management and investments. Financial policies contribute to financial stability by: 1. Providing consistent guidance in decision making 2. Establishing appropriate levels of fund balances 3. Governing the use of one time or unanticipated resources 4. Providing a multi-year capital improvements process 5. Establishing responsibilities and deadlines for budget preparation 6. Providing for a balanced annual operating budget 7. Providing guidelines on the use of debt, including appropriate purposes and terms 8. Provide a linkage between capital improvement scheduling and long term debt management planning 9. Require annual audits and financial reporting in conformance with Generally Accepted Accounting Procedures 10. Require timely and regular interim financial reporting to the Governing body 11. Insure the safety of cash and near cash resources (timely collection of Accounts Receivable, etc.). Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Salina for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31,2003. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe our current report continues to conform to Certificate of Achievement program requirements, and we are submitting it to GFOA. iv Acknowledgments .rhe preparation of the Comprehensive Annual Financial Report was made possible by the dedicated, professional advice and effort of the Lowenthal, Singleton, Webb, and Wilson auditing team. A special thank you needs to be given to Valerie Gebhardt, City Accountant, who is responsible for much of the data assembly and reconciliation, and to Penny Day, Account Clerk III, who has been largely responsible for document assembly and production. Finally, preparation of this report would not have been possible without the support of the City Commission. Sincerely, Jason A. Gage e7 ~Q . L14J1!- ?/ City Manager v Certificate of Achievement for Excellence in Financial Reporting Presented to City of Salina, Kansas For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~~x~ President ~/~ Executive Director ( City of Salina] II CITIZENS II CITY COMMISSION Deborah P. Diville, Mayor Alall E. Jilka Donnie D. Marrs R. Abner Perlley Johll K. Vanier II Development Services Coordination Building Services Deputy City Manager Position Vacant Planning & Development Dean Andrew Assistant City Manager Deborah Demel Municipal Court Administration City Prosecutor Jennifer WJ'att General Services Streets Flood Works Traffic Control Central Garage Sanitation Landfill Operations Food & Beverage Business/Ticket Office Municipal Court Judge Brenda Stoss City Attorney Greg Bengtson * Human Resources Admin istration Computer Technology Jack Rolfs Human Relations Kaye Crawford Risk Management Engineering Design/I nspecti on Traffic Fire Suppression EMS Codes/Inspection Public Education Utilities Water Treatment & Dist. Wastewater Collect./Treat. City Clerk Accounting Utility Accounting Treasurer Museum Arts Education Arts Services River Festival Horizons Grants Program Community Art & Design vii il Contract Position Patrol Investigations 9 I I /Commun ications Internal Affairs Swimming Pools Golf Course Neighborhood Centers Parks Recreation Forestry Cemetery Building Maintenance City of Salina, Kansas List of Principal Officials City Commission Deborah P. Divine, Mayor Donnie D. Marrs, Vice Mayor Alan E. Jilka, Commissioner R. Abner Perney, Commissioner John K. Vanier, II Commissioner City Staff Jason A. Gage, City Manager Deborah Demel, Assistant City Manager Rodney Franz, Director of Finance and Administration Jim Hill, Chief of Police Darrell Easton, Fire Chief Shawn O'Leary, Director of Public Works Keith Rawlings, Bicentennial Center Manager Steve Snyder, Parks and Recreation Director Dean Andrew, Planning and Community Development Director John Highkin, Director of Arts and Humanities Kaye Crawford, Human Relations Director Jack Rolfs, Director of Computer Technology Greg Bengston, City Attorney viii FINANCIAL SECTION CERTIFIED PUBLIC ACCOUNTANTS David A. Lowenthal~ CPA Thomas E. Singleton, CPA Patricia L. W ebb~ CPA Thomas G. Wilson, CPA Audrey M. Odennann, CPA LOWENTIIAL SINGLETON WEBB & WILSON PROFESSIONAL ASSOCIATION 900 Massachusetts, Suite 301 Lawrence, Kansas 66044-2868 Phone: (785) 749-5050 Fax: (785) 749-5061 E-mail: Iswwcpa@lswwcpa.com Abram M. Chrislip, CPA Leanne E. Miller, CPA Members of American Institute and Kansas Society of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON THE BASIC FINANCIAL STATEMENTS Mayor and City Commissioners City of Salina, Kansas We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, as of and for the year ended December 31, 2004, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Salina Airport Authority which statements reflect total assets of $33,059,951 as of December 31, 2004 and total revenues of $4,864,990 for the year then ended, and the Housing Authority of the City of Salina which statements reflect total assets of $7,310,387 as of June 30, 2004 and total revenues of $2,129,056 for the year then ended, which are discretely presented component units in the accompanying financial statements. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Salina Airport Authority and the Housing Authority of the City of Salina, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the uKansas Municipal Audit Guide." Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Salina, Kansas, at December 31, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis on pages 3 through 14 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1 Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical tables as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual non major fund financial statements have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. We did not audit the data included in the introductory and statistical sections of this report and therefore, we express no opinion thereon. d~/..k~J ~f4.~ Professional Association May 11, 2005 2 This page intentionally left blank. 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 311 2004. The information contained here, as well as the information contained in the letter of transmittal, are intended to provide the reader of the financial statements with a well rounded picture of the City's financial condition. Financial Highlights . Net Assets increased by $511271095. Of this amountl $41119,914 was attributable to Governmental Activities and $11008,181 was attributable to Business-Type activities. . A significant portion of the City's outstanding General Obligation Debt was re-financed. . A significant capital project, the $20,000,000 North Ohio Grade Separation proceeded through the land acquisition phase. . Completed and financed closure on two solid waste landfill cells, and opened a third at a cost of $2,735,000 . Completed and financed a $51000,000 Water plant improvement project. . On the whole, fund balances maintained at a relatively stable level. . The voters approved the extension of a .250/0 sales tax for 6 years, purposed for Capital Investment, Tax Stabilization, Economic Development and Human Services. The Basic Financial Statements -rhe 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 -rhe Statement of Net Assets reports all of the City's assets and liabilities. Net assets, the difference between assets and liabilitiesl are an important measure of the City's overall financial health. Net assets represent the total accumulated and unused resources available to the City for the purpose of providing services. Over time, the increases and decreases in net assets can be monitored to determine if the City's financial position is improving or deteriorating. The Statement of Activities shows how the net assets have changed during the fiscal year. One unique feature of this statement is how it shows the revenues and expenses related to specific programs and how much of those programs were supported by the general taxes of the City. Since this statement is prepared on the accrual basis of accounting, all revenues and expenses are included, regardless of when cash is actually received. Both statements show the operations of the City broken down between governmental and business type activities. Governmental activities are the operations of the City generally supported by taxes, such as Public Safety (Policel Fire, and EMS)I Public Works, Public Health, and Culture & Recreation. Business-type Activities are operations of the City that are intended to recover a significant portion of their costs through user fees and charges. These include Water and Sewer, Refuse collection, the Golf Course, and operation of the City Solid Waste Facility. -rhe government-wide financial statements include the Salina Airport Authority and Salina Housing Authority as discretely presented component units of the City. Note 1, item A in the Notes to the Financial Statements provide a more complete explanation of the relationship between these entities and the City of Salina. Fund Financial Statements -rhe 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 3 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 nOther Governmental Funds column. A combining statement for the Non-major funds is presented as supplementary information in the back of the report. The information presented in these statements can be compared to the governmental activities information in the government-wide statements. The reconciliation at the end of the fund financial statements details the relationship between the two types of financial statements. Proprietary funds fall into two categories: enterprise funds and internal service funds. All proprietary funds are prepared on the accrual basis of accounting, and are used to account for business-type activities. Enterprise fund statements present the same information that is in the government-wide statements for business-type activities, but in greater detail. The City of Salina currently operates four enterprise funds: Sanitation Collection, Solid Waste Disposal, Golf Course, and Water and Sewer. Internal Service funds are used to account for the cost of operations shared by various departments of the City. The city operates five internal service funds. Three of these are for self- insurance activity: Risk Management, Workers Compensation Reserve, and Health Insurance. The remaining two account for our Information Services activity and for the Central Garage operation. A combining statement for these internal service funds can be found in the supplementary information following the notes to the financial statements. Fiduciary funds are used by the City to account for resources held by the City for a third party. Agency funds are a special class of Fiduciary Fund in which liabilities always equal assets, and thus there are no net assets. The City of Salina operates seven Agency funds. Schedules for these funds may be viewed in the supplementary section of this report. Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used. Permanent funds operated by the City include the Citizenship Trust, Cemetery and Mausoleum Endowments, and the Tri-centennial Commission fund. Notes to the Financial Statements -rhe notes to the financial statements are an integral part of the basic financial statements since they contain valuable additional information necessary for gaining a complete understanding of the City's financial statements. Other Information In addition to the basic financial statements and the notes described above, this report also presents the general fund and major special revenue fund's budgetary statements as required supplementary information directly following the notes to the basic financial statements. The combining statements for the non-major funds are shown after the required supplementary information. Finally, the statistical section includes selected statistical data about the City's operations and economy. The City as a Whole -rhis section will identify, discuss, and analyze significant differences and trends that will enhance the reader's understanding of the City's financial position. Tax Base and Economy The City of Salina relies on three major groups of revenues to support it's operations. Each of these revenue streams has a different revenue base. In declining order of magnitude, they are charges for service, sales taxes, and property taxes. Sales taxes and property taxes apply primarily to Governmental Activities, while charges for services apply to both Governmental (340/0) and Business-type (660/0) activities. Charaes for Services account for about 490/0 ($26,398,891) of the City's revenue stream. Charges for Service depend on both the rate that is set for the activity, as well as the volume of services provided. The following table 4 illustrates service volume and rate adjustments for some of the more significant services for the year ending December 31,2004. Description Monthly Ave Water Accounts Billed Water Metered (In Billion Gallons) Sanitation Customers Golf Rounds (18 Hole) Golf Rounds (Par 3) Golf Annual Memberships Solid Waste Tonnage Building Permits Issued Building Permit Value ($ Millions) 2003 Volume 19,366 2.101 13,954 38,485 5,823 293 88,393 678 $ 46 $ 2004 Volume 19,368 2.01 14,103 40,406 5,279 314 90,069 656 42 $ Change Rate Comments 2 Water Rates Increased 2.50/0 -0.091 Wastewater Increased by 5.80/0 149 Sanitation Rates increased by 5.50/0 1,921 (544) No Change in Golf Rates 21 1,676 No Change in Solid Waste raates (22) No Change in fees. (4) The number of Water accounts billed remained relatively stable, however the amount of water metered (sold) declined by 4.30/0. -rhe number of sanitation customers increased by about 10/0. Golf activity shows an increase (30/0) in rounds, as well as an increase (7.10/0) in annual memberships. Solid Waste tonnage showed a slight increase. Building permit activity declined slightly. Sales taxes are the next largest com ponent of the revenue m ix, providing 220/0 ($12,764,788) of the total revenues. The City receives a .750/0 City-wide sales tax, and also a portion of the County-wide 1 % sales tax. One-third (.250/0) of the City-wide sales tax is required to be used for special purposes. The remaining .50/0 along with the City portion of the Countywide tax is available for general purposes. Total revenue from the sales tax in 2004 was $12,764,788, up from $12,026,714 in 2003. This represents an apparent increase of6.10/0. However, this is misleading, as detailed in the discussion below. A number of factors affected the sales tax in 2004. First are the regional and local economic conditions and relationships. Second, effective July 1,2003 legislation extended the compensating use tax to local governments. Local governments began receiving this tax in October, 2003. The use tax is a component of the sales tax that applies to purchases made from out-of-state retailers. This expansion of the Sales Tax base resulted in $381,731 of the $738,074 in total sales tax growth. The ureal" growth in the sales tax, adjusted for additional tax base was thus only $356,343 or 30/0 over 2003. However, the expansion of the use tax is a continuing structural change in the tax base for the City of Salina Finally, the City was adversely 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). -rhe formula is based, in part, on the property tax efforts of each jurisdiction. Because the portion of the overlapping levy attributable to the City of Salina was reduced for 2004, the City's allocated portion of the County-wide sales tax was reduced from 63.20/0 in 2003 to 62.20/0 in 2004. This is equivalent to a reduction of approximately $96.000 from 2003 to 2004. -rhe .250/0 sales tax dedicated to education technology expired (sunset) June 30, 2004. On March 16,2004, Salina voters approved the extension of the .250/0 tax purposed for Capital Investment, Economic Development, Human Services, and Tax Stabilization. The extended tax is to sunset June 30, 2010. The tax will produce, at 2004 levels, about $2,000,000 per year. Property Taxes are the third major component of the revenue mix, accounting for 150/0 ($8,961,728) 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 and personal property assessed value grew by 3.60/0. The total City mill levy was reduced by .30/0., while the overlapping levy was increased by 1.50/0. Tax delinquency decreased slightly. Motor Vehicle value increased by $2,007,829 (4.30/0), while the rate applied for motor vehicles increased by 10.129 mills (12.50/0). Motor vehicle taxes are distributed based on a formula using prior years tax effort (similar to the Countywide Sales Tax Distribution). 5 -rhe following table summarizes the comparative property assessed values and tax levy rates: Fiscal (Budget) Year 2003 2004 Change Real Estate and Personal Property Assessed Valuation 317,134,605 328,593,726 11,459.121 City M ill Levy ($ per $1,000) Operating (General Fund, Employee Benefits, Flood and Drainage Fund) 18.581 20.017 1 .436 Debt Service Millage 5.511 3.996 (1.515) Total City Levy Rate 24.092 24.013 (0.079) Total Overlapping Levy 116.817 118.574 1 .757 Percent of Current Taxes Collected 97.10/0 97.30/0 0.002 Ratio of Total Taxes (including delinquent tax collections) to Taxes Levied 99.40/0 100.20/0 0.008 Motor Vehicle Valuation 46,679,292 48,687,121 2.007,829 Co un ty W id eAve ra g eVe h ic Ie T a x Rate ($ per$1,000) 80.82 90.949 10.129 The unemployment rate in Saline County increased slightly from 4.00/0 in 2003 to 4.80/0 in 2004, reflecting general economic conditions. This is still below the statewide and national unemployment rate. The total labor force remained stable at 30,800. In 2004, the top ten property taxpayers accounted for 9.460/0 of total assessed value. This is less concentrated than last year (at 11.30/0). Statement of Net Assets Net assets may, over time, provide an indicator of a government's financial position. In the case of the City of Salina, assets exceeded liabilities by $151,123,897 at December 31, 2004. This represents an increase in net assets of $7,177,368 over 2003. A condensed version of the Statement of Net Assets at December 31, 2004 follows: The largest segment of the Comparative Condensed Statement of Net Assets, 2003 and 2004 City's net assets (870/0) (In $000) reflects its investment in 2004 2003 capital assets (land, buildings, Business Total Total streets and drainage facilities, Governmental Type Primary Primary utility plant, vehicles, Activities Activities Government 0/0 Government 0/0 equipment, etc.), less any Cash and Investments $ 14,342 $ 11 ,537 $ 25,879 130/0 $ 27,225 140/0 debt used to acquire those Other Current Assets $ 2,543 $ 2,794 $ 5,338 30/0 $ 4,405 20/0 assets that is still outstanding. Noncurrent (Capital) Assets $ 114,716 $ 59,352 $ 174,068 850/0 $ 166,025 840/0 -rhese assets are used to Total Assets $ 131,601 $ 73,685 $ 205,286 1 000/0 $ 197,655 1 000/0 provide services to citizens. As a result, resources Current Liabilities $ 9,726 $ 3,057 $ 12,783 240/0 $ 6,355 120/0 required to retire related debt Long- Term Liabilities $ 20,554 $ 20,825 $ 41 ,379 760/0 $ 47,354 880/0 can not come from liquidation Total Liabilities $ 30,280 $ 23,882 $ 54,162 1 000/0 $ 53,708 1 000/0 of the asset. Such resources Net Assets: generally must be provided Invested in capital assets, net of from other sources, such as related debt $ 92,948 $ 38,560 $ 131,507 870/0 $ 116,377 810/0 future taxes or user charges. Restricted for Debt Service $ 1,317 $ 1,406 $ 2,723 20/0 $ 1,584 10/0 Un res tricted $ 7,057 $ 9,837 $ 16,894 110/0 $ 25,985 180/0 A small portion of net assets Total Net Assets $ 1 01 ,321 $ 49,803 $ 151,124 1 000/0 $ 143,946 1 000/0 Percent of Total Assets 670/0 330/0 1000/0 1 ooo~ (20/0) is restricted for debt Quick Ratio 1.47 3.77 2.02 4.28 service. The remainder of net assets (11 0/0) may be used to meet the City's obligations to citizens and creditors. In 2004, the amount invested in capital assets net of related debt increased substantially, while unrestricted net assets declined. This represents two trends: investment of current resources in capital assets, and payout of existing debt. 6 Liabilities remained relatively stable overall, but there was a shift from long term to current liabilities. This reflects the reclassification of temporary notes, due 8/01/2005, as current liabilities. These notes will be retired from the proceeds of long term bonds at that time. Assets increased slightly (by about $7,631,000 or 4.60;0). This increase is nearly all attributable to the increase in capital assets, with cash and current assets remaining stable. The quick ratio indicates that the City has enough liquidity to retire current liabilities approximately 2 times. During the year ended December 31, 2004, there were several significant events that changed the balance of net assets. Governmental Activities. During 2004, the City of Salina engaged in significant land acquisition activity prepatory to the North Ohio Grade separation project. This $20,000,000 project is scheduled to bid in mid 2005. Sources of funding include a significant ($12,000,000) grant from the State of Kansas, and contributions from the Union Pacific Railroad. Total City costs are estimated to be on the order of $5,000,000, however, the City must Ufront" the money for project design and land acquisition activities. Under the terms of the grant, these will be partially reimbursed at a later date. The City also issued $5,585,000 in refunding bonds, refinancing all or portions of Internal Improvement Bonds issued in 1996, 1997, 1998, 1999, 2000, 2001, and 2002, realizing some long term savings as a result of the current economic climate. Business-type Activities: Likewise, Business Type activities saw the completion of several capital improvement projects, including a $5,000,000 expansion of the Water treatment plant. The Solid Waste operation opened a new landfill cell, and completed the closure on two cells. Statement of Activities A condensed statement of activities is shown below. Business- Total Governmental Type Total Primary Primary Activities Activities Government 0/0 Government 0/0 Program Revenues: Charges for Services $ 8,943 $ 17 A56 $ 26,399 44 0.10 $ 26,044 470/0 Operating Grants and Contributions $ 3,197 $ 368 $ 3,565 60/0 $ 2,751 50/0 Capital Grants and Contributions $ 2,480 $ $ 2,480 40/0 $ General Revenues: 0%) 00/0 Property Taxes $ 8,962 $ $ 8,962 150.10 $ 8,803 160/0 Sales Taxes $ 12,765 $ $ 12,765 21 0.10 $ 12,026 220/0 Other Taxes $ 3,426 $ $ 3,426 60k $ 3,345 60/0 I nvestment Revenue $ 390 $ 222 $ 612 10/0 $ 432 10/0 Other Miscellaneous $ 1,084 $ 93 $ 1,177 20/0 $ 1,607 30/0 Transfers (net) $ 24 $ (24) $ OOk $ 00/0 Total Revenues: $ 41,271 $ 18,115 $ 59,386 1 000.10 $ 55,008 1000/0 Expenses: General Government $ 4,931 $ 4,931 90k $ 6,767 120/0 Public Safety $ 13,548 $ 13,548 250k $ 12,636 230/0 Public Works $ 7,958 $ 7,958 150k $ 7,896 140/0 Public Health and Sanitation $ 1,016 $ 1,016 20k $ 906 20/0 Culture and Recreation $ 4,784 $ 4,784 90k $ 4,657 80/0 Planning and Development $ 4,130 $ 4,130 80k $ 4,507 80/0 Solid Waste Disposal $ 2,818 $ 2,818 50k $ 2,367 40/0 Water and Sewer $ 11,552 $ 11 ,552 21 ok $ 11,572 210/0 Sanitation $ 1,920 $ 1,920 40k $ 1,682 30/0 Golf Course $ 817 $ 817 20k $ 786 10/0 Interest on Long Term Debt $ 786 $ $ 786 10k $ 1,085 20/0 Total Expenses $ 37,153 $ 17,107 $ 54,260 1 DOok $ 54,861 1 000/0 Increase in Net ~sets $ 4,119 $ 1,008 $ 5,127 $ 147 Net ~sets, January 1 $ 95,838 $ 48,308 $ 143,949 $ 142,229 Prior Period Adjustment $ 1,584 $ 486 $ 2,050 $ (2,319) Net ~sets, January 1, restated $ 97,202 $ 48,784 $ 145,997 $ 142,910 Net ~sets December 31 $ 101,321 $ 48,803 $ 151,124 $ 143,913 7 Governmental Activities. Total expenses for Governmental Activities for the year ending December 31, 2004 were $37,152,433 compared to $38,454,509 in 2003. Governmental activities represent 680/0 of the City's total expenses. The largest element of Governmental Activity expense was Public Safety, at 250k of the City total, followed by Public Works at 140/0 of the total. Charges for service attributable to Governmental Activities totaled $8,943,073 and operating grants for those purposes were $3,197,048. Capital grants and contributions totaled $2,480,451, and were primarily related to the construction of the North Ohio Street grade separation. The balance of $26,650,775 was funded by general revenues. Sales taxes accounted for $12,764,788 of the general revenues, with property taxes providing $8,961,728. Net assets increased by $4,118,914 as a result of Governmental Activities. Business Tvpe Activities. Total expenses for Business-type Activities for the year were $17,107,394, or 320k of the City's total expense. The majority of this expense ($11,552,362) is attributable to Water and Sewer operations, with the other activities (Solid Waste Disposal, Sanitation, and Golf Course) costing a combined total of $5,555,032. These activities are primarily supported by user charges, with only $291,383 coming from general revenues, representing largely the interest earned on fund balances held by the City. Net assets increased by $1,008,181 as a result of Business-type Activity operations. Fund Financial Analysis Governmental Funds Fund Balances: ~rhe table below shows the Governmental Fund balances for major funds for the years ended December 31, 2003 and December 31, 2004. Fund 2004 2003 Change General $ 7,311.303 $ 6,775.543 $ 535,760 Employee Benefits $ 612,266 $ 364,888 $ 247,378 Flood and Drainage $ 521.148 $ 372,333 $ 148,815 Tourism and Convention $ 267,200 $ 249,156 $ 18.044 Special Gas $ 1,382,177 $ 1,542,222 $ (160,045) Bicentennial Center $ 256,903 $ 241 ,482 $ 15,421 Debt Service $ 1,317,062 $ 1,584,330 $ (267,268) Capital Projects $ (6,477,626) $ (2, 183, 189) $ (4,294,437) Other Governmental Funds $ 1,202,647 $ 1,193,481 $ 9,166 Total $ 6,393,080 $ 10,140,246 $ (3,747,166) Total Governmental Fund balances decreased by $3,747,166. All of this decrease is attributable to the Capital Projects funds. Approximately one-half of this change is attributable to the North Ohio Grade Separation project, with the remainder being attributable to a variety of improvement projects. The deficit will be financed using grant and bond proceeds. Governmental fund balances. net of Capital Projects increased by $547,271. ~rhe reductions in the Special Gas and Debt Service funds were planned reductions. The General Fund balance increased by $535,760. This is a result of a combination of factors, including some growth in revenue (Sales Tax, Intergovernmental revenues) and control of expenditures, including a reduction in Capital Outlay. The General Fund current balance (current revenues less current expenditures, before other sources and uses) increased from a surplus of $8,697 in 2003 to $572,987 in 2004. 8 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, 2003 and 2004. Fund 2004 2003 Change Revenues (Including Other Financing Sources) General $ 23,782.586 $ 22,848,559 $ 934,027 Employee Benefits $ 4,557,020 $ 3,675,967 $ 881 ,053 Flood and Drainage Improvement $ 371,570 $ 367,788 $ 3,782 Tourism and Convention $ 825,853 $ 820,512 $ 5,341 Special Gas $ 1,776,477 $ 1,579,637 $ 196,840 Bicentennial Center $ 1,326,152 $ 1 ,269,348 $ 56,804 Debt Service $ 8,429,798 $ 3,764,081 $ 4,665,717 Capital Projects $ 4,413,426 $ 9,483,879 $ (5,070,453) Other Governmental Funds. $ 2,160,815 $ 1,481 ,055 $ 679,760 Total Revenues $ 47,643,697 $ 45,290,826 $ 2,352,871 Less Other Sources $ 7,773,367 $ 9,299,661 $ (1,526,294) Revenues, net of other sources $ 39,870,330 $ 35,991,165 $ 3,879,165 Expenditures (Including Other Financing Uses) General $ 23,246,826 $ 23,090,201 $ 156,625 Em ployee Benefits $ 4,309,642 $ 3,923,757 $ 385,885 Flood and Drainage Improvement $ 222,755 $ 244,119 $ (21,364) Tourism and Convention $ 807,809 $ 775,000 $ 32,809 Special Gas $ 1 ,936,522 $ 1,310,097 $ 626,425 Bicentennial Center $ 1,310,731 $ 1,312,364 $ (1,633) Debt Service $ 8,697,066 $ 3,179,781 $ 5,517,285 Capital Projects $ 8,707,863 $ 7,915,766 $ 792,097 Other Governmental Funds. $ 1,581,838 $ 1,429,018 $ 152,820 Total Expenditures $ 50,821,052 $ 43.180, 1 03 $ 7,640,949 Less Other Uses $ 6,476,060 $ 609,045 $ 5,867,015 Expenditures. net of other uses $ 44,344,992 $ 42,571,058 $ 1 ,773,934 Total revenues and other sources increased moderately from 2003 to 2004. However, if the changes related to bond and note financing activity (other sources) is removed, the increase in revenues is about 9.7010. The majority of that increase ($2,212,202) is in the Capital Projects funds. reflecting an increase in intergovernmental revenues, mostly resulting from reimbursements on the North Ohio project. General Fund increases reflect changes in the Sales tax, increases in charges for services. The increase in Employee Benefits revenues are changes in property taxes. Total expenditures and other uses also show substantial changes resulting from financing activity. -rhe increase in expenditures, net of those activities is $1,773,934. This increase reflects increases in the cost of Employee Health Insurance, increased investment in street maintenance activity out of the Special Gas Tax Fund, and and increase in the Capital Projects funds. Proprietary Funds The City of Salina operates four Enterprise Funds as well as five Internal Service Funds. The Solid Waste Fund shows a significant shift from current liabilities to long term liabilities. This is the result of financing tem porary notes outstanding for the purposes of landfill cell construction and closure to longer term bonds. Total net assets decline slightly, as do unrestricted net assets. The Water and Sewer fund shows a modest increase in total net assets. Unrestricted net assets decline slightly. Current assets decline slightly, while fixed assets increase. Assets invested in Capital, net of related debt, also increase. This pattern is the result of investment of current revenue flows in capital improvements. 9 The Sanitation fund shows a $98,138 decline in net assets, while the Golf course had no change. A summarized comparative Statement of Net Assets follows for each Enterprise Fund: Solid Waste Disposal Water and Sewer 2004 2003 Change 2004 2003 Change Current Assets $ 3, 180 $ 3,263 $ (83) $ 10,405 $ 10,421 $ (16) Fixed Assets $ 4,106 $ 3,885 $ 221 $ 54,275 $ 53,777 $ 498 Total Assets $ 7,287 $ 7,148 $ 139 $ 64,680 $ 64,198 $ 482 Current Liabilities $ 513 $ 2,722 $ (2.209) $ 2,444 $ 2,155 $ 289 Noncurrent Liabilities $ 4,270 $ 1,725 $ 2.545 $ 16,417 $ 18,013 $ (1,596) Total Liabilities $ 4,784 $ 4,447 $ 337 $ 18,861 $ 20,168 $ (1,307) Assets Invested in Capital, net of related debt $ 1,273 $ 1,206 $ 67 $ 36,173 $ 34,456 $ 1,717 Restricted Net Assets $ 1,406 $ 1,111 Unrestricted Net Assets $ 1 ,230 $ 1 ,494 $ (264) $ 8,241 $ 8,462 $ (221 ) Total Net Assets $ 2,503 $ 2,701 $ ( 198) $ 45,820 $ 44,029 $ 1,791 Restatement $ 60 $ (60) $ 427 $ ( 427) Total Net Assets, restated $ 2,503 $ 2,761 $ (258) $ 45,820 $ 44,456 $ 1 ,364 Current Ratio 6.2 1.2 4.3 4.8 Sanitation Golf Course 2004 2003 Change 2004 2003 Change Current Assets $ 577 $ 707 $ ( 130) $ 170 $ 143 $ 27 Fixed Assets $ 456 $ 443 $ 13 $ 515 $ 554 $ (39) Total Assets $ 1,033 $ 1,150 $ ( 117) $ 685 $ 697 $ (12) Current Liabilities $ 53 $ 1 $ 52 $ 47 $ 22 $ 25 Noncurrent Liabilities $ 69 $ 140 $ (71 ) $ 69 $ 106 $ (37) Total Liabilities $ 122 $ 141 $ (19) $ 116 $ 128 $ (12) Assets Invested in Capital, net of related debt $ 405 $ 443 $ (38) $ 441 $ 494 $ (53) Restricted Net Assets Unrestricted Net Assets $ 507 $ 567 $ (60) $ 128 $ 76 $ 52 Total Net Assets $ 911 $ 1,009 $ (98) $ 569 $ 569 $ - Restatement $ (1) $ 1 Total Net Assets, Restated 911 $ 1,008 $ (97) $ 5691 $ 569 $ - Current Ratio 10.9 707.0 3.6 6.5 Summary Statement of Net Assets (in $OOO's) Revenues, Expenses. and Changes in Net Assets A summary table of revenues, expenses and net assets is shown below. The Solid Waste and Sanitation Fund had a reduction in net assets for the year, while the Golf Course showed no change. The Water and Sewer Fund had a increase in net assets. 10 Solid Waste Fund net assets declined by $257,391. The cause for this was a significant increase ($540,634) in depreciation expense associated with closing two completed cells and opening a new cell for use. Other operating expenses in the Slid Waste fund actually declined slightly. In the Sanitation Fund, the reduction of net assets was attributable to an increase in other operating expenses ($224,512). Charges for services did increase (19,998), but not to the same degree as operating expense. During 2004, the City had implemented a pilot recycling program, designed to assess the demand for curbside recycling and methods of providing that service. The pilot project was done at no charge to the participants. The estimated operating cost of the pilot program was about $60,000 for 2004. This accounts for the majority of the reduction in net assets. In a subsequent event, the City has established a charge structure for the recycling program designed to recover the operating costs. Summary of Revenues, Expenses and Changes in Net Assets (In $OOO's) Solid Waste Disposal Water and Sewer 2004 2003 Change 2004 2003 Change Operating Revenues $ 2,489 $ 2,402 $ 87 $ 12,432 $ 12,217 $ 215 Operating Expenses $ 2,727 $ 2,255 $ 472 $ 10,654 $ 10,683 $ (29) Operating Income $ (238) $ 147 $ (385) $ 1,778 $ 1,534 $ 244 Non-operating revenues (expenses) $ (19) $ (63) $ 44 $ (760) $ (843) $ 83 Income (Loss) before Transfers $ (257) $ (83) $ (174) $ 1,019 $ 691 $ 328 Transfers in (out) $ (24) $ (40) Capital Contributions $ 368 Change in Net Assets $ (257) $ (83) $ (174) $ 1,363 $ 651 $ 712 Net Assets, January 1 $ 2,701 $ 5,425 $ (2,724) $ 44,029 $ 41,271 $ 2,758 Restatement $ 60 $ (2,807) $ 2,867 $ 427 $ 2,107 $ ( 1,680) Net Assets, January 1, restated $ 2,761 $ 2,618 $ 143 $ 44,456 $ 43,378 $ 1,078 Net Assets, December 31 $ 2,503 $ 2,701 $ ( 198) $ 45,820 $ 44,029 $ 1,791 Sanitation Golf Course 2004 2003 Change 2004 2003 Change Operating Revenues $ 1,814 $ 1,795 $ 19 $ 814 $ 811 $ 3 Operating Expenses $ 1,908 $ 1,682 $ 226 $ 815 $ 783 $ 32 Operating Income $ (94) $ 113 $ (207) $ (2) $ 28 $ (30) Non-operating revenues (expenses) $ (4) $ 6 $ (10) $ $ (3) $ 4 Income (Loss) before Transfers $ (97) $ 119 $ (216) $ (1 ) $ 25 $ (26) Transfers in (out) $ (40) Change in Net Assets $ (97) $ 119 $ (216) $ (1 ) $ (14) $ 13 Net Assets, January 1 $ 1,009 $ 895 $ 114 $ 569 $ 1,176 $ (607) Restatement $ (1 ) $ (4) $ 3 $ (593) $ 593 Net Assets, January 1, restated $ 1,008 $ 891 $ 117 $ 569 $ 584 $ (15) Net Assets, December 31 $ 911 $ 1,009 $ (98) $ 568 $ 569 $ (1 ) The Internal Service funds experienced a reduction in net assets of $167,934. In the case of the Risk Management, Workers Compensation Reserve, this was the result of experience somewhat more adverse than had been the case in prior years. The Health Insurance Fund improved its position from a deficit net assets (-$133,808) in 2003 to a positive balance ($392,584) in 2004. Internal rates have been adjusted to correct the operating deficits 11 Budgetary Highlights The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Commission. The legal level of budgetary control is maintained at the Fund level, in accordance with State Statutes. Management control is maintained at the departmental level. Within the departments, considerable discretion is permitted. The City uses an encumbrance accounting system, in which estimated purchase orders are recorded prior to the release of purchase orders to vendors. Open purchase orders are reported as reservations of budgetary basis fund balances at December 31,2004. 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. -rhe City experienced a number of significant variances from budgeted items in the General Fund. Most notably, general sales taxes exceeded budget by $269,852. As noted earlier, this was due to changes in the Compensating Use tax. Public Safety revenues exceeded the budget by $124,000. This was due to a combination of Court fines and EMS fees. Overall revenues in the General Fund exceeded budgeted amounts by $466,814. Total expenditures were well within budget. Budgetary basis year end cash balances exceeded original budget by $840,725. Capital Assets and Debt Administration Capital Assets The total amount invested in Capital Assets for the City at December 31,2003 was $166,024,700, net of accumulated depreciation. The following table illustrates the Capital Asset balance by various classes of assets at December 31,2004: Capital Asset Balances, 12/31/2004 and 12/31/2003 (In OOO's) 2004 2003 Governmental Business-type Activity Activity Total Total Equipment, Furniture and Fixtures $ 1,388 $ 1,677 $ 3,065 $ 3,313 Vehicles $ 1,795 $ 635 $ 2,430 $ 2,357 Buildings and Improvements $ 11,351 $ 14,953 $ 26,304 $ 25,918 Land $ 13,823 $ 914 $ 14,737 $ 12,683 I nfrastructu re $ 76,392 $ 41,114 $ 117,506 $ 108,024 Construction in Progress $ 9,967 $ 61 $ 10,028 $ 13,728 Total $ 114,716 $ 59,354 $ 174,070 $ 166,025 * Net of Accumulated Depreciation Changes to capital assets may be summarized as follows: Changes to Capital Assets, 2004 (in OOO's) Governmental Business-Type Activity Activity Total Additions $ 101162 $ 10,982 $ 21, 144 Retirements $ (4,103) $ (10,266) $ (14,369) Adjustm ents $ 1,291 $ (22) $ 1,269 Net Additions $ 7,350 $ 694 $ 8,044 Depreciation Expense Applied $ 4,173 $ 2,526 $ 6,699 12 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 at 12/31/2004 totaled $26,927,565. Temporary notes outstanding total $5,615,000. Total General Debt is thus $32,542,565 Of this amount, $15,425,942 is considered net tax supported debt. Net general bonded debt per capita is thus $335.57 In addition, Business-type activities had $5,615,000 in Revenue Bonds outstanding, as well as $7,777,264 in loans provided through the Kansas Development Finance Authority. Revenues generated by user fees are pledged to retire all of the Bonds issued by Business-type activities. The City engaged in several debt transactions during 2004. One General Obligation Bond Refunding issue, Series 2004A was sold in the principal amount of $5,585,000. In addition, Internal Improvement Bonds in the amount of $4,053,000 were issued. Moody's rating service extended a rating of A-1 to both of these issues. This is consistent with prior ratings. In addition, three temporary note series were issued during the year, totaling $3,925,000. Subsequent Event In a subsequent event, Moody's rating service extended a rating of Aa3 to the City's outstanding debt with the issue of the 2005-A Internal Improvement Bond Issue. 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. 13 BASIC FINANCIAL STATEMENTS CITY OF SALINA, KANSAS STATEMENT OF NET ASSETS December 31, 2004 Primary Government Component Units Total Total Total Salina Salina Governmental Business-type Primary Housing Airport Activities Activities Government Authority Authority ASSETS Current assets: Cash and investments $ 14,341,911 $ 11,537,771 $ 25,879,682 $ 770,279 $ 2,962,020 Receivables (net of allowance for uncollectibles) Accounts 1,496,870 1,035,073 2,531,943 7,667 107,053 Taxes 457,693 457,693 1,052,591 Interest 78,684 67,159 145,843 834 Notes 5,527 5,527 Mortgages 28,850 Due from other governments 68,522 Inventory 172,134 491,972 664,106 Restricted cash 725,733 725,733 58,413 Prepaid expenses 4,055 Net investment in financing leases 880,030 Deferred charges 332,660 474,621 807,281 33,301 86,063 Total current assets 16,885,479 14,332,329 31,217,808 967,866 5,091,812 Noncurrent assets: Capital assets, nondepreciable Construction in progress 9,966,774 61,387 10,028,161 361,582 426,405 Land 13,823,444 913,774 14,737,218 1,456,890 9,156,560 Capital assets, depreciable 151,104,333 88,282,501 239,386,834 6,163,313 18,385,174 Less: Accumulated depreciation 60,178,629 29,905,353 90,083,982 1,639,264 Total noncurrent assets 114,715,922 59,352,309 174,068,231 6,342,521 27,968,139 Total assets $131,601,401 $ 73,684,638 $ 205,286,039 $ 7,310,387 $ 33,059,951 Liabilities: Current liabilities: Accounts payable $ 406,703 $ 327,116 $ 733,819 $ 9,755 $ 141,330 Retainage payable 126,568 4,901 131,469 Accrued liabilities 563,267 563,267 27,431 101,666 Matured bond principal and interest 25,145 25,145 Accrued interest payable 219,590 270,325 489,915 137,649 Unearned interest - financing leases 50,312 Deposits payable 101,280 101,280 56,633 Unearned revenue 1,780 1,126,989 Due to other governments 29,633 Current portion of compensated absences 1 ,155,309 269,412 1,424,721 Current portion of capital lease payable 20,206 20,206 Current portion of temporary notes payable 4,675,000 4,675,000 Current portion of loans payable 316,661 316,661 1,016,159 Current portion of revenue bonds payable 625,000 625,000 Current portion of general obligation bonds payable 2,534,349 1,141,840 3,676,189 Total current liabilities 9,726,137 3,056,535 12,782,672 125,232 2,574,105 Noncurrent liabilities: Accrued liabilities 75,874 75,874 Compensated absences 1 ,264,200 355,213 1,619,413 32,553 Capital lease payable 20,944 20,944 Temporary notes payable 2,200,000 2,200,000 Loans payable 7,460,603 7,460,603 8,485,351 Revenue bonds payable 4,990,000 4,990,000 General obligation bonds payable 16,992,921 6,258,455 23,251,376 Landfill post-closure care liabilities 1,761,260 1,761,260 Total noncurrent liabilities 20,553,939 20,825,531 41,379,470 32,553 8,485,351 Total liabilities $ 30,280,076 $ 23,882,066 $ 54,162,142 $ 157,785 $ 11,059,456 Net Assets Invested in capital assets, net of related debt $ 92,947,502 $ 38,559,750 $131,507,252 $ 6,342,521 $ 18,468,297 Restricted for: Debt service 1,317,062 1,405,822 2,722,884 85,000 Unrestricted 7,056,761 9,837,000 16,893,761 810,081 3,447,198 Total net assets $101,321,325 $ 49,802,572 $ 151,123.897 $ 7,152,602 $ 22,000,495 The notes to the basic financial statements are an integral part of this statement. 15 Governmental activities: General government Public safety Public works Public health and sanitation Culture and recreation Planning and development Interest on long-term debt Total governmental activities Business-type activities: Solid Waste Disposal Water and Sewer Sanitation Golf Course Total business-type activities Total primary government Component units: Salina Housing Authority Salina Airport Authority Total com ponent units CITY OF SALINA, KANSAS STATEMENT OF ACTIVITIES For the Year Ended December 31,2004 Net [Expenses] Revenue and Changes in Net Assets Program Revenues Primary Government Component Units Operating Capital Total Total Total Salina Salina Charges for G rants and Grants and Governmental Business-type Primary Housing Airport Expenses Services Contributions Contributions Activities Activities Government Authority Authority $ 4,930,556 $ 3,711,600 $ 136,218 $ $ [1,082,738] $ $ [1,082,738] $ $ 13,548,289 2,770,189 1,294,549 (9,483,551 J [9,483,551] 7,958,468 155,428 1,498,105 2,480,451 [3,824,484] [3,824,484] 1,015,567 34,880 134,088 (846,599J [846,599J 4,783,566 2,072,678 134,088 (2,576,800] [2,576,800) 4,130,445 198,298 (3,932,147] [3,932,147J 785,542 [785,542] [785,542] 37,152,433 8,943,073 3,197,048 2,480,451 [22,531,861] [22,531,861 ] 2,817,733 2,488,760 [328,973] [328,973) 11,552,362 12,361,877 368,374 1,177,889 1,177,889 1,920,239 1,814,256 [105,983] [105,983) 817,060 790,925 [26,135J [26,135] 17,107,394 17,455,818 368,374 716,798 716,798 $54,259,827 $ 26,398,891 $ 3,565,422 $ 2,480,451 [22,531,861] 716,798 [21,815,063] $ 2,174,471 $ 1,493,901 $ 635,155 $ (45,415] 2,894,543 1,330,303 2,289,342 725,102 $ 5,069,014 $ 2,824,204 $ 2,924,497 $ [45,415] 725,102 General Revenues: Property taxes levied for General purposes 6,576,194 6,576,194 1,036,579 Debt service 1 ,328,799 1,328,799 Motor vehicle tax General purposes 1 ,056,735 1,056,735 Sales tax General purposes 10,500,582 10,500,582 Selective purposes 2,264,206 2,264,206 Other taxes General purposes 3,425,772 3,425,772 126,949 Investment revenues 390,462 221,709 612,171 59,943 Miscellaneous 1 ,084,469 93,230 1,177,699 21,874 Transfers, net 23,556 [23,556J Subtotal general revenues 26,650,775 291 ,383 26,942,158 1,245.345 Change in net assets 4.118,914 1 ,008,181 5,127,095 [45,415J 1,970,447 Net assets - beginning 95,638,256 48,308,273 143,946,529 7,193,998 20,030,048 Prior period adjustment 1,564,155 486,118 2,050,273 4,019 Net assets - beginning, restated 97,202,411 48,794,391 145,996,802 7,198,017 20,030,048 Net assets - ending $ 101,321,325 $ 49,802,572 $ 151,123,897 $ 7,152,602 $ 22,000,495 The notes to the basic financial statements are an integral part of this statement. 16 This page intentionally left blank. "fhis page intentionally left blank. CITY OF SALINA, KANSAS BALANCE SHEET GOVERNMENTAL FUNDS December 31,2004 Flood & Tourism Employee Drainage and General Benefits Improvement Convention ASSETS Cash and investments $ 6,179,729 $ 612,518 $ 521,148 $ 55,001 Receivables (net) Accounts 1,254,555 211,878 Taxes 2,416,864 4,222,625 83,989 Interest 36,023 321 Notes Inventory 103,464 Cash with fiscal agent Total assets $ 9,990,635 $ 4,835, 143 $ 605,137 $ 267,200 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 262,468 $ 252 $ - $ Retainage payable Deferred revenue 2,416,864 4,222,625 83,989 Matured principal and interest Temporary notes payable Total liabilities 2,679,332 4,222,877 83,989 Fund balance: Reserved for encumbrances 160,350 52,603 Reserved for notes receivable Reserved for debt service Unreserved, undesignated General fund 7,150,953 Special revenue funds 612,266 468,545 267,200 Permanent funds Capital project funds Total fund balances 7,311,303 612,266 521,148 267,200 Total liabilities and fund balance $ 9,990,635 $ 4,835,143 $ 605, 137 $ 267,200 Other Total Special Bicentennial Debt Capital Governmental Governmental Gas Center Service Proiects Funds Funds $ 949,777 $ 271,522 $ 1,309,321 $ 541,630 $ 1 ,744,441 $ 12,185,087 3,367 27,070 1,496,870 457,693 1,343,822 8,524,993 5,536 1,577 7,741 5,046 10,015 66,259 5,527 5,527 103,464 25.145 25,145 $ 1,413,006 $ 276,466 $ 2,686,029 $ 546,676 $ 1,787,053 $ 22,407,345 $ 30,829 $ 19,563 $ - $ 22,734 $ 14,595 $ 350,441 126,568 126,568 1 ,343,822 8,067,300 25,145 25,145 6.875.000 6,875,000 30,829 19,563 1,368,967 7,024,302 14,595 15,444,454 491,097 725,843 18,188 1,448,081 5,527 5,527 1,317,062 1,317,062 7,150,953 891,080 256,903 1 ,421 ,495 3,917,489 327,248 327,248 [7,203,469] [7,203,469] 1,382,177 256,903 1,317,062 [6,477,6261 1,772,458 6,962,891 $ 1,413,006 $ 276,466 $ 2,686,029 $ 546,676 $ 1,787,053 $ 22,407,345 The notes to the basic financial statements are an integral part of this statement. 17 CITY OF SALINA, KANSAS RECONCILIATION OF THE TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS OF GOVERNMENTAL ACTIVITIES December 31, 2004 Total Governmental Fund Balances Amounts reported for governmental activities in the statement of net assets are different because Bond issuance costs are shown as current year expenditures in the funds. Bond issuance costs Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds -rhe cost of capital assets is Accumulated depreciation is 174,325,828 59,704,953 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. -rhe 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 Bonds payable Capital lease payable Accrued interest on the bonds 2,367,116 19,527,270 41, 150 219,590 Net Assets of Governmental Activities The notes to the basic financial statements are an integral part of this statement. 18 $ 6,962,891 332,660 114,620,875 1,560,025 [22,155,126] $ 101,321,325 This page intentionally left blank. CITY OF SALINA, KANSAS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended December 31, 2004 Flood & Tourism Employee Drainage and General Benefits Improvement Convention REVENUES: Taxes Real estate taxes $ 2,065,791 $ 4,015,801 $ 318,584 $ Delinquent taxes 71,099 95,570 9,349 Motor vehicle taxes 325,603 445,649 43,637 General sales taxes 10,500,582 Selective sales taxes 1,653,401 Other taxes 2,600,315 825,457 Intergovernmental 1,383,468 Special assessments Licenses and permits Charges for services 4,643,980 Investment revenue 107,269 396 Reimbursements Miscellaneous 297,449 Total revenues 23,648,957 4,557,020 371,570 825,853 EXPENDITURES: Current General government 2,477,262 207,825 Public safety 10,075,244 2,648,914 Public works 4,033,341 750,698 48,529 Public health and sanitation 825,324 24,361 Culture and recreation 1,896,785 454,500 Planning and development 3,052,745 223,344 465,000 Miscellaneous Capital outlay 715,269 74,226 Debt service Principal retirement 100,000 Interest and other charges Bond issuance costs Total expenditures 23,075,970 4,309,642 222,755 465,000 Excess [deficiency] of revenue and other sources over [under] expenditures and other [uses] 572,987 247,378 148,815 360,853 OTHER FINANCING SOURCES [USES} Issuance of bonds Transfers in 133,629 Transfers [out] [170,856] [342,809] Payment to refunded bond escrow agent Total other financing sources [uses} [37,227] [342,809] Net change in fund balance 535,760 247,378 148,815 18,044 Fund balance - Beginning of year 6,775,543 364,888 372,333 249,156 Prior period adjustment Fund balance - Beginning of year, restated 6,775,543 364,888 372,333 249,156 Fund balance - End of year $ 7,311,303 $ 612,266 $ 521 , 148 $ 267,200 Other Total Special Bicentenn ial Debt Capital Governmental Governmental Gas Center Service Proiects Funds Funds $ - $ - $ 1 ,277,239 $ - $ - $ 7,677,415 51 ,560 227,578 241 ,846 1,056,735 10,500,582 610,805 2,264.206 3,425,772 1,479,705 2,480,451 315,475 5,659,099 1,340,256 1,340,256 18,400 18,400 833,240 887,089 6,364,309 16,365 34,970 25,502 177,847 362,349 465,128 465,128 499 103 94,169 116,281 508,501 1,496,569 833,343 3,040,040 2,971,081 2,125,897 39,870,330 2,685,087 12,724,158 324,261 5, 156,829 131,420 981,105 1 ,308,634 809,997 4,469,916 283,850 4,024,939 35 35 1,590,736 2,097 8,307,175 134,366 10,823,869 2,511,317 2,611,317 796,802 69,391 866, 193 1,544 1,544 1,914,997 1,310,731 3,308,119 8,378,110 1,359,668 44,344,992 [418,428] [477,388] [268,079] [5,407,029] 766,229 [4,474,662] 5,388,947 1,318,000 6,706,947 279,908 492,809 811 124,345 34,918 1,066,420 [21 ,525] [329,753] [222, 1 70] [1,087,113] [5,388.947] [5,388,947] 258,383 492,809 811 1, 112,592 [187,252] 1,297,307 [160,045] 15,421 [267,268] [4,294.437] 578,977 [3,177,355] 1,542,222 241 ,482 1 ,584,330 2.066,811 1,202,647 14,399,412 [4,250,000] [9,166] [4,259, 166] 1,542,222 241,482 1,584,330 [2,183,189] 1,193,481 10,140,246 $ 1,382,177 $ 256,903 $ 1,317,062 $ [6,477,626] $ 1,772,458 $ 6,962,891 The notes to the basic financial statements are an integral part of this statement. 19 CITY OF SALINA, KANSAS RECONCiliATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE WITH THE GOVERNMENT-WIDE STATEMENT OF ACTIVrrlES For the Year Ended December 31, 2004 Total Net Change In Fund Balances - Governmental Funds $ [3,177,355] Amounts reported for governmental activities in the statement of activities are different because Capital outlays to purchase or build assets are reported in governmental funds as expenditures. However, for governmental activities those costs are shown in the statement of net assets and allocated over their estimated useful lives as annual depreciation expenses in the statement of activities. This is the amount by which capital outlays exceeds depreciation in the period. Gain on sale of assets Capital outlays Depreciation expense 226,220 10,019,498 [4,082,511] 6,163,207 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recorded as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. This is the amount by which interest decreased. 80,651 An internal service fund is used by the city's management to charge the costs of certain activities to the individual funds. The revenues and expenses of certain internal service fund is reported with governmental activities. [166,973] Some expenses reported in the statement of activities, such as compensated absences, do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. [38,686] Bond proceeds are an other financing source in the governmental funds, but it increases long-term liabilities in the statement of net assets and does 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. [6,742,194] Repayment of bond principal and bond issuance costs is an expenditure in the governmental funds, but it reduces long-term liabilities in the statement of net assets and does not affect the statement of activities. 8,000,264 Changes In Net Assets of Governmental Activities $ 4,118,914 The notes to the basic financial statements are an integral part of this statement. 20 CITY OF SALINA, KANSAS STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31,2004 Business-Type Activities: Enterprise Funds Total Internal Solid Waste Water and Enterprise Service ASSETS Disposal Sewer Sanitation Golf Course Funds Funds Current assets: Cash and investments $2,923,260 $ 8,005,724 $ 465,413 $ 143,374 $11,537,771 $2.131,679 Receivables (net of allowance for uncollectibles) Accounts 200,768 725.405 108,900 1.035,073 Interest 17,039 46,574 2}12 834 67, 159 12,425 Inventory and prepaid supplies 467.807 24.165 491,972 68,670 Restricted cash and investments 725,733 725,733 Deferred charges 39,170 434,040 1,411 474.621 Total current assets 3,180,237 10,405,283 577,025 169,784 14.332,329 2,212,774 Capital assets: Nondepreciable capital assets: Construction in progress 61,387 61,387 Land 120,000 793,774 913,774 Depreciable capital assets: Capital assets 5.995.398 80.317,379 1.031,095 938,629 88,282,501 568,723 Less: accumulated depreciation 2,008,929 26,897,791 574,669 423,964 29,905,353 473.676 Total capital assets 4,106,469 54,274,749 456,426 514,665 59,352,309 95,047 Total assets $ 7,286,706 $ 64,680,032 $1,033,451 $ 684,449 $ 73,684,638 $ 2,307,821 Liabilities: Current liabilities (payable from current assets): Accounts payable $ 123,424 $ 198, 1 06 $ 945 $ 4,641 $ 327,116 $ 56,262 Retainage payable 4,901 4,901 Interest payable 32,820 237,285 220 270,325 Meter deposits payable 101,280 101,280 Total current liabilities (payable from current assets) 156,244 541,572 945 4,861 703,622 56,262 Current liabilities Current portion of compensated absences payable 24,589 164,423 52,327 28,073 269,412 52,393 Current portion of accrued claims payable 563,267 Current portion of loans payable 316,661 316,661 Current portion of general obligation bonds payable 332,442 795,748 13,650 1,141,840 Current portion of revenue bonds payable 625,000 625,000 Total current liabilities 357,031 1,901,832 52,327 41,723 2,352,913 615,660 Noncurrent liabilities: Compensated absences payable 32,420 216.787 68,992 37,014 355,213 Accrued claims payable 75,874 Payable from restricted assets Loans payable 7,460,603 7,460,603 General obligation bonds payable 2,476,548 3,749,602 32,305 6,258,455 Revenue bonds payable 4,990,000 4,990,000 Landfill post-closure care liabilities 1,761,260 1,761,260 Total noncurrent liabilities 4,270,228 16,416,992 68,992 69,319 20,825,531 75,874 T otalliabilities $ 4,783,503 $18,860,396 $ 122,264 $ 115,903 $ 23,882,066 $ 747,796 Net Assets Invested in capital assets, net of related debt $1,272,890 $ 36,172,712 $ 404,099 $ 440,637 $ 38,290,338 $ 95,047 Restricted Restricted for bond retirement 1,405,822 1,405,822 Unrestricted 1,230,313 8,241,102 507,088 127,909 10,106,412 1,464,978 Total net assets $2,503,203 $45,819,636 $ 911.187 $ 568,546 $ 49,802,572 $1,560,025 The notes to the basic financial statements are an integral part of this statement. 21 CITY OF SALINA, KANSAS STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended December 31.2004 Business-Type Activities: Enterprise Funds Total Internal Solid Waste Water and Enterprise Service Disposal Sewer Sanitation Golf Course Funds Funds Operating revenues Charges for services $ 2,488,760 $ 12,361,877 $1,814,256 $ 790,925 $17,455,818 $ 6.902,386 Reimbursements 914 914 23.971 Miscellaneous 70,565 21,751 92,316 86,869 Total operating revenues 2,488,760 12.432,442 1,814,256 813,590 17,549,048 7,013,226 Operating expenses General government 7,161,674 Public works 2.001,987 8,979,010 1,821.073 12,802,070 Recreation 776,337 776.337 Depreciation 725,126 1,675,239 86,745 39,149 2,526,259 90,887 Total operating expenses 2,727,113 10.654,249 1,907,818 815.486 16,104,666 7,252,561 Operating income [loss] [238,353] 1,778,193 [93,562] [1,896] 1.444,382 [239,335] Nonoperating revenues [expenses] Investment revenue 71,582 138,577 8,889 2,661 221,709 28,113 Debt service [86,594] [751,867] [1,104] [839,565] Amortization of bond issuance costs [4,026] [127,029] [470] [131,525] Gain [loss] on disposal of fixed assets [19,217] [12,421 ] [31,638] Total nonoperating revenues [expenses] [19,038] [759.536] [3,532] 1,087 [781,019] 28.113 Income [loss] before transfers [257,391] 1,018,657 [97,094] [809] 663,363 [211,222] Capital contributions 368,374 368,374 Transfers from [to] other funds Transfers in 39,084 39,084 44,249 Transfers [out] [62,640] [62.640] Total transfers [23,556] [23,556] 44,249 Change in net assets [257,391 ] 1,363,475 [97,094] [809} 1,008.181 [166,973] Net assets, January 1 2,700,540 44,029,053 1,009.325 569,355 48.308,273 1,727,959 Restatement 60,054 427,108 [1,044] 486,118 [961 ] Net assets, January 1, restated 2,760,594 44,456,161 1,008,281 569,355 48,794,391 1,726,998 Net assets, December 31 $ 2,503,203 $ 45,819.636 $ 911.187 $ 568,546 $ 49.802,572 $ 1,560,025 The notes to the basic financial statements are an integral part of this statement. 22 CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2004 Business-Type Activities: Enterprise Funds Total Internal Solid Waste Water and Enterprise Service Disposal Sewer Sanitation Golf Course Funds Funds Cash flows from operating activities Cash received from customers and users $2,437,671 $12,298,877 $1,799,924 $ 790,925 $17,327,397 $6,919,722 Cash paid to suppliers of goods or services [1,429,889] [6,059A38] [1,137,595] [410,288] [9,037,210] [6,659,061] Cash paid to employees [396,175] [2,805,614] [701 ,293] [362,384 ] [4,265.466] [518,785] Other operating receipts 70,565 22,665 93,230 110,840 Net cash provided by [used in] operating activities 611.607 3,504,390 [38,964J 40,918 4,117,951 [147,284] Cash flows from capital and related financing activities Purchase and construction of capital assets [886,391 ] [1,114,514] [113,933] [2,114,838] [5,307] Proceeds from issuance of debt 2,884,231 46,869 2.931,100 Debt issuance costs incurred [39,428] [51,811] [1,881 ] [93,120] Principal payments - general obligation bonds [220,144] [760,747] [60,895] [1,041,786] Principal payments - revenue bonds [600,000] [600,000] Principal payments - temporary notes [2,533,972] [2,533,972] Interest paid [56,869] [779,228] [2,112] [838,209] Principal payments - loans payable [304,935] [304,935J Net cash provided by [used in] capital and related financing activities [852,573] [3,611,235] [113,933] [18,019] [4,595,760} [5,307] Cash flows from investing activities Interest received 78,444 133.676 9,459 2,463 224,042 27,616 Cash flows from noncapital financing activities Transfers in 39,084 39.084 44,249 Transfers [out] [62,640] [62,640} Net cash provided by [used in] noncapital financing activities [23,556] [23,556] 44,249 Net increase [decrease] in cash and cash equivalents [162,522] 3,275 [143.438] 25,362 [277,323] [80,726] Cash and cash equivalents, January 1 3,085,782 8.728.182 608,851 118,012 12,540.827 2,212,405 Cash and cash equivalents. December 31 $2,923,260 $ 8,731,457 $ 465.413 $ 143,374 $12,263.504 $2.131,679 Cash and investments $2,923,260 $ 8,005,724 $ 465,413 $ 143,374 $11,537,771 $2.131,679 Restricted cash and investments 725,733 725,733 Total cash and cash equivalents $2,923,260 $ 8,731 ,457 $ 465,413 $ 143,374 $12,263,504 $2,131,679 The notes to the basic financial statements are an integral part of this statement. 23 CITY OF SALINA, KANSAS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31,2004 Reconciliation of operating [loss] income to net cash provided by [used in} operating activities Operating income [loss] Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense [Increase] decrease in accounts receivable [Increase} decrease in inventory Increase [decrease] in accounts payable Increase [decrease] in retainage payable Increase [decrease] in accrued compensated absences Increase [decrease] in claims payable Increase [decrease] in meter deposits payable Increase [decrease] in accrued landfill closure and postclosure care costs Net cash provided by [used in] operating activities Business-Type Activities: Enterprise Funds Solid Waste Water and Disposal Sewer Sanitation Golf Course Total Enterprise Funds Internal Service Funds $ [238,353] $1,778,193 $ [93,562} $ [1,896] $1,444,382 $ [239,335] The notes to the basic financial statements are an integral part of this statement. 24 CITY OF SALINA, KANSAS STATEMENT OF ASSETS AND LIABILrrlES AGENCY FUNDS December 31, 2004 ASSETS Cash and investments $ 371,034 Interest receivable 1,712 Total assets $ 372,746 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 372,746 Total liabilities $ 372,746 The notes to the basic financial statements are an integral part of this statement. 25 This page intentionally left blank. CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2004 Note 1. SUMMARY OF SIGNIFICANT ACCOUN-rING POLICIES A. Reporting Entity The City of Salina, Kansas (the City) is a municipal corporation governed by a mayor and a five member commission. These financial statements present the City and its component units, entities for which the government is considered to be financially accountable. Each discretely presented component unit is reported in a separate column in the government wide statements to emphasize that it is legally separated from the government. Discretelv Presented Comoonent Units City of Salina Airport Authority - The Salina Airport Authority was created for the purpose of accepting as surplus property portions of the former Schilling A.F.B that was closed by the United States Department of Defense in June, 1965. One of the primary functions of the Airport Authority is to facilitate the continued growth of jobs and payroll at the Airport Industrial Center. The Airport Authority is managed and controlled by a five-member Board of Directors appointed by the Salina City Commission. Any director may be removed by a majority vote of the Salina City Commission. The Airport Authority's basic mill levy (up to 3 mills) requires the approval of the City Commission. The Commission must also approve the issuance of general obligation debt by the Airport Authority. The Airport Authority has a December 31 fiscal year end. Housing Authority of the City of Salina - The purpose of the Housing Authority of the City of Salina (Housing Authority) is to administer Public Housing Programs authorized by the United States Housing Act of 1937. The Mayor of the City of Salina appoints the governing board. The City Commission may remove commissioners of the Housing Authority. The City must issue revenue bonds for the Housing Authority. The financial liability of the Housing Authority is essentially supported by the operating and debt service subsidies received under contract from the Federal government. The Housing Authority has a June 30 fiscal year end. Information in the accompanying financial statements covers the fiscal year ended June 30, 2004. Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices. Salina Airport Authority 3237 Arnold Ave. Salina, KS Housing Authority of the City of Salina 469 S. 5th Salina, KS Joint Ventures The City of Salina also participates with Saline County in two joint ventures. The Salina-Saline County Board of Health was organized by the City and County to promote public health. The City and County organized the Salina County-City Building Authority to acquire, operate and maintain facilities for the administrative offices of both governments. The primary governments each have an ongoing financial responsibility for the joint ventures. Separate financial statements are available from the governing boards of each joint venture. Total net assets, December 31,2004 Total revenues, year ended December 31, 2004 Total revenues from City of Salina Board of Buildi ng Health Authority (Unaudited) (Audited) $ 222,018 $ 2,762,734 3,233,766 831 ,134 740,448 310,425 26 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2004 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Government-wide and fund financial statements The statement of net assets and the statement of activities report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges between the City's governmental and business-type activities. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational requirements of a particular program. Taxes and other items which are not classified as program revenues are presented as general revenues of the city. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column in the fund financial statements. C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. 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 reven ues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. 27 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31,2004 Note 1. SUMMARY OF SIGNIFICANT ACCOL~NTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The City applies all applicable Governmental Accounting Standards Board (GASB) pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: FASB Statements and Interpretations, APB Opinions, and ARBs. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. The internal service funds account for operations that provide services to other departments or agencies of the government, or to other governments, on a cost-reimbursement basis. Agency funds are custodial in nature and do not measure results of operations or have a measurement focus. Agency funds do, however, use the accrual basis of accounting. The City reports the following major governmental funds: The general fund is used 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. Employee benefits fund - To account for the costs of various benefits provided to governmental employees. Flood and drainage improvement fund - To account for property tax revenues to be used for capital improvements to the flood control and stormwater drainage systems. Tourism and convention fund - To account for transient guest tax revenues, which are specifically restricted to promotion and tourism activities. Special gas fund - To account for the City's share of motor fuel tax revenues which are legally restricted to the maintenance or improvement of streets within the City. Bicentennial Center fund - To account for the activities of the City's convention center. The debt service fund is used 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. -rhe capital projects fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. 28 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 1. SUMMARY OF SIGNIFICANT ACCOL~NTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued) The City reports the following major proprietary funds: Sanitation fund - To account for the operations of the City's refuse collection service. Solid waste disposal fund - To account for the activities of the City's landfill. Golf course fund - To account for the operations of the municipal golf course. Water and sewer fund - To account for the activities of the City's water and sewer operations. D. Assets, Liabilities and Equity 1. Pooled cash and investments The City maintains a cash and investment pool that is available for use by all funds managed by the city. Each fund type's portion of this pool is displayed in the financial statements as IICash 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 Pavables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either "interfund receivables/payablesn (i.e., the current portion of interfund loans) or "advances to/from other funds" (Le., 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 selVices are provided. All receivables are shown net of an allowance for doubtful accounts. Properly 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 2005. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the accounting period, and further, the amounts thereof are not material in relationship to the financial statements taken as a whole. 29 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31,2004 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Equity (Continued) 2. Receivables and Pavables (Continued) The determination of assessed valuations and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The County Appraiser annually determines assessed valuations on January 1 and the County Clerk spreads the annual assessment on the tax rolls. The County Treasurer is the tax collection agent for all taxing entities within the County. In accordance with state statutes, property taxes levied during the current year are a revenue source to be used to finance the budget of the ensuing year. Property taxes are levied and liens against property are placed on November 1 of the year prior to the fiscal year for which they are budgeted. Payments are due November 1, becoming delinquent, with penalty, December 21. Payments of 500/0 are accepted through December 20, with the second 500/0 then being due on or before May 10 of the following year. -rhis procedure eliminates the need to issue tax anticipation notes since funds will be on hand prior to the beginning of each fiscal year. The City Treasurer draws down all available funds from the County Treasurer's office in two-month intervals. Taxes remaining due and unpaid at February 15 and July 1 are subject to collection procedures prescribed in state statutes. 3. Inventories and Preoaid 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. Restricted Assets Certain proceeds of the City's business-type fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. The llWater and Sewer Principal and Interest" account is used to segregate resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve" account is used to report resources set aside to make up potential future deficiencies in the "Water and Sewer Principal and Interest Account". 5. 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. Historically, governmental infrastructure assets have not been capitalized and reported in the financial statements. In conformity with GASB 34, infrastructure completed in the current year has been capitalized. Retroactive reporting of the City's major infrastructure assets extends to all assets. 30 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 1. SLIMMARY OF SIGNIFICANT ACCOLINTING POLICIES (Continued) D. Assets, Liabilities, and Equity (Continued) 5. Capital Assets (Continued) The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type is included in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Property, plant and equipment of the primary government, are depreciated using the straight line method over the following estimated useful lives: Assets Buildings Other equipment Vehicles I nfrastructu re Years 50 5 -15 6 -10 30 -50 6. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All employees of the City, except temporary and part time employees, may accumulate sick leave at a rate of 8 or 11 hours per month depending on their work duty schedule. There is no limit on the amount of sick leave that can be accumulated. Employees with more than five years of service with the City are paid for one-third of their accumulated sick leave at their current wage scale upon termination of employment in good standing. In 2001, a limited buy back policy was instituted. All regular employees are entitled to paid vacation time. Such leave is granted each year of employment and unused leave may accumulate without limit. Employees are paid for all accumulated vacation leave at their current wage scale upon termination of employment. Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability in the government fund fund financial statements that will pay it. Vested or accumulated vacation leave of the business-type funds and government wide financial statements are recorded as an expense and liability of those funds as the benefits accrue to employees. A liability is recorded for accumulated rights to receive sick pay benefits that are payable upon termination of employment. The General Fund, Bicentennial Center Fund, Central Garage Fund, Information Systems Fund, Sanitation Fund, Solid Waste Fund, Golf Course Fund, and Water and Sewer Fund have been used in prior years to liquidate the liability for compensated absences. 7. Temoorary 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. 31 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities and Equity (Continued) 8. Lona-term Obliaations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Fund Eauity In the fund financial statements, governmental funds report reservations of fund balance amounts that are not appropriable or are legally segregated for a specific purpose. Reservations of business-type net assets are limited to outside third-party restrictions. Designations of fund balance represent tentative management plans that are subject to change. 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 st. 2. Publication in local newspaper of the proposed budget and notice of public hearing on the budget on or before August 5th. 3. Public hearing on or before August 15th, but at least ten days after publication of notice of hearing. 4. Adoption of the final budget on or before August 25th. The statutes allow for 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 budget was amended, from $82,000 to $88,068, for the Business Improvement District Fund and from $775,000 to $810,000, for the Tourism and Convention Fund. 32 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEf\lIENTS December 31,2004 Note 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) A. Budgetary Information (Continued) The statutes permit management to transfer budgeted amounts between line items within an individual fund. However, such statutes prohibit expenditures in excess of the total amount of the adopted budget of expenditures of individual funds. Budget comparison statements are presented for each fund showing actual receipts and expenditures compared to legally budgeted receipts and expenditures. All legal annual operating budgets are prepared using the modified accrual basis of accounting, modified further by the encumbrance method of accounting. Revenues are recognized when cash is received. 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, trust funds, and the following special revenue funds: Bicentennial Center Event, HUD Community Development, Community Development Revolving, Heritage Commission, Sales Tax Capital, Sales Tax Economic Development, CDBG-ED, HOME IV, Special Law Enforcement, Fair Housing Partnership, Police Grants, Dare Donations, Large System Interface and War Memorial Maintenance. A legal operating budget is not required for the following Enterprise funds: Solid Waste Construction, Water and Sewer Principal and Interest, Water and Sewer Bond Reserve, Water and Sewer Construction and Reserve funds. A legal operating budget is also not required for the Internal Service funds. Actual to budget comparisons for these funds that present budgets to the Commissioners are shown strictly for informational purposes. Spending in funds which are not subject to the legal annual operating budget requirements are controlled by federal regulations, other statutes, or by the use of internal spending limits established by the governing body. B. Statutory Violations The following fund had deficit fund equity at December 31,2004: Capital Projects $[6,477,626]. This deficit will be recovered from the issuance of bonds. C. Compliance With Bond Reserve Requirements Water & Sewer Bond Reserve Requirements The bond reserve requirement is to establish and maintain a reserve account. -rhe Water & Sewer fund met this requirement for 2004. Reserve requirement $ 679,000 Actual reserves Bond reserve account Total actual reserves $ $ 680,089 680,089 The City was in compliance with the reserve account balance requirements at December 31, 2004. 33 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 2. S-rEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) D. Legal Debt Margin The City is subject to the municipal finance law of the state of Kansas which limits the bonded debt (exclusive of revenue bonds and special assessment bonds) the city may have outstanding to 30 percent of the assessed value of all tangible taxable property within the city, as certified to the county clerk on the proceeding August 25. At December 31, 2004, the statutory limit for the City was $115,184,791, providing a debt margin of $90,110,561. Note 3. RESTATEMENT OF EQUITY Following the close of the previous fiscal year, it was discovered that notes receivable had been incorrectly reported in the HUD Community Development Fund. In addition, it was discovered that proceeds from the 2003A General Obligation Bond had not been properly allocated to the Water and Sewer Fund and the temporary notes payable had not been properly recorded as a liability in the Capital Projects Fund. Accordingly, the beginning net assets balances were restated, the effects of which are as follows: Net Assets/Fund Balance December 31, 2003 Community Capital Development Water and Solid Governmental Projects Revolving Sewer Waste Sanitation Activities Fund Fund Fund Fund Fund $ 95,638,256 $ 2,0661811 $ 1801790 $ 44,029,053 $ 2,700,540 $ 1,009,325 1,290,737 709,692 60,054 [1,044] [9,166] [9,166] [4,250,000] 282,584 [282,584] $ 97,202,411 $ [2,183,189J $ 171,624 $ 44,456,161 $ 2,760,594 $ 1,008,281 Fixed Asset Adjustment Note Receivable Adjustment Temporary Note Adjustment General Obligation Bond Adjustment Net Assets/Fund Balance December 31, 2003, Restated Note 4. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Deposits - At year end, the City's carrying amount of the deposits and cash on hand was $15,859,961 and $14,818 respectively. The bank balance was $17,499,226. The difference between the carrying amount and the bank balance is outstanding checks, deposits in transit and cash on hand. Of the bank balance $400,000 was covered by FDIC insurance and the remaining $17,099,226 was collateralized by pledged securities held under joint custody receipts issued by a third-party bank in the City's name and by Bank Depository Guaranty Bonds issued by Kansas Bankers Surety Company. The third-party bank holding the pledged securities is independent of the pledging bank. The pledged securities are held under a tri-party custodial agreement signed by all three parties; the City, the pledging bank and the independent third-party bank holding the pledged securities. The Kansas State Treasurers Fiscal Agency Department held an unsecured and uncollateralized deposit of $25,145. 34 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A. Deposits and Investments (Continued) The carrying amount of deposits and cash on hand for the Housing Authority of the City of Salina, a discretely presented component unit, was $744,960 and $50, respectively, and the bank balance was $757,218. Of the bank balance, $757,218 was covered by federal depository insurance or by collateral held by the entity's agency in the Housing Authority's name. The carrying amount of deposits and cash on hand, respectively for the Salina Airport Authority, a discretely presented component unit, was $2,960,196 and $1,824 and the bank balance was $2,994,433. Of the bank balance, $2,994,433 was covered by federal depository insurance or by collateral held by the entity's agency in the Authority's name. Investments - Kansas statutes authorize the City to invest in U.S. Treasury bills and notes, repurchase agreements, the Kansas Municipal Investment Pool (KMIP), and certain other types of federal and Kansas municipal obligations. All investments must be insured, registered, or held by the City or its agent in the City's name. The City's investments are categorized to give an indication of the level of risk assumed by the City at year-end. Category 1 includes investments that are insured or registered, or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the pledging bank's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the pledging bank but not in the City's name. -rhe carrying amount of investments approximates fair value. At December 31, 2004, the City had invested $4,096,501 in the State's municipal investment pool. 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 US 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 in the State Treasurer's municipal investment pool is not subject to categorization as to risk. The fair value of the City's position in the municipal investment pool is substantially the same as the value of the pool shares. The categories of the City's investments are as follows: Pooled investment - State of Kansas Category Carrying 1 2 3 Amount $ 6,980,024 $ - $ - $ 6,980,024 4,096,501 $ 11,076,525 $ 83,682 Primary Government: U.S. Treasury Bills Salina Housing Authority 35 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31,2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) A. Deposits and Investments (Continued) Separate statutes regulate investment proceeds for most bond issues. Local units may invest bond proceeds in direct obligations of the United States Government and its agencies or make investments as authorized for other idle funds. Under existing Attorney General opinions maturity and interest rates are negotiable on such bonds. The cash and investments by fund type at December 31,2004 are as follows: Primary government: Statement of net assets - cash and investments $ 25,879,682 Statement of net assets - restricted cash 725,733 Statement of fiduciary net assets - cash and investments 371,034 Total $ 26,976,449 Cash and cash equivalents $ 15,859,961 Cash on hand 14,818 Cash held by fiscal agent 25,145 Investments 11,076,525 Total $ 26,976,449 Salina Housing Authority: Statement of net assets - cash and investments $ 770,279 Statement of net assets - restricted cash 58,413 Total $ 828,692 Cash and cash equivalents $ 744,960 Cash on hand 50 Investments 83,682 Total $ 828,692 Salina AiqxlIt Authority: Statement of net assets - cash and investments $ 2,962,020 Total $ 2,962,020 Cash and cash equivalents $ 2,960,196 Cash on hand 1,824 Total $ 2,962,020 36 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31,2004 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: Rood & Tourism Employee Drainage and Special Bicentennial Debt General Benefits Impr. Convention Gas Center Service Subtotal Primary Government Receivables: ,Accounts $ 1,641,592 $ $ - $ 211,878 $ - $ 3,367 $ - $ 1,856,837 Taxes 2,416,864 4,222,625 83,989 457,693 1,343,822 8,524,993 Interest 36,023 321 5,536 1,577 7,741 51,198 Gross receivables 4,094,479 4,222,625 83,989 212,199 463,229 4,944 1,351,563 10,433,028 Less: allowance for uncolI ectibles [387,037] [387,037J Total $ 3,707,442 $ 4,222,625 $ 83,989 $ 212,199 $ 463,229 $ 4,944 $ 1,351,563 $ 10,045,991 Solid Gaf Water Capital Other VVaste Course and Internal Projects Governmental Sanitation Disposal Division Sewer Service Rdudary Total Primary Government Receivables: ,Accounts Taxes Interest Notes Q-oss receivables Less: allowance for uncollecti bles Total $ - $ 33,986 $ 121,005 $ 200,768 $ - $ 800,437 $ - $ - $ 3,019,093 8,524,993 1,712 147,555 5,527 1,712 11,697,168 10,015 2,712 17,039 5,527 49,528 123,777 217,807 834 46,574 12.425 5,046 5,046 834 853,011 12,425 [6,916] [12,165] 42,612 $ 111,612 $ 217,807 $ [81,032] 834 $ 771,979 $ [487,150] 12,425 $ 1,712 $11,210,018 $ 108,771 [1,718] 107,053 1,052,591 1,159,644 7,667 834 8,501 $ 1,168,145 $ 5,046 $ Component Units Salina Airport Authority ,Accounts Less: allowance for uncoUectibles Taxes Total Salina Airport Authority Salina Housing Authority ,Accounts Interest Total Salina Housing Authority Total 37 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) C. Capital Assets Capital asset activity for the year ended December 31, 2004, was as follows: Balance Adj. Ba!. Balance 12/31/2003 Adjustments 12/31/2003 Additions Retirements 12/31/2004 City govemmental activities: Govemmental activities: Capital assets, not being depreciated Construction in progress $ 5,511,625 $ [15,370] $ 5,496,255 $ 8,800,117 $ [4,329,598] 9,966,774 Land 12,680,134 1,114,654 13,794,788 28,656 13,823,444 Capital assets, being depreciated Infrastructure 118,106,391 118,106,391 3,291,114 121,397,505 Buildings and improvements 18,902,798 [287,062] 18,615,736 1,411,628 20,027,364 Vehicles 5,308,670 6,723 5,315,393 561,372 [72,040] 5,804,725 Equipment, fumiture and fixtures 3,258,345 373,728 3,632,073 242,666 3,874,739 Total capital assets 163,767,963 1,192,673 164,960,636 14,335,553 [4,401,638] 174,894,551 Less accumulated depreciation for: I nfras tructure 42,498,280 12,923 42,511,203 2,494,791 45,005,994 Buildings and improvements 8,408,100 [210,127] 8,197,973 478,431 8,676,404 Vehicles 3,621,083 10,627 3,631,710 572,895 [195,005] 4,009,600 Equipment, fumiture and fixtures 1,874,092 88,513 1,962,605 627,281 [103,255] 2,486,631 Total accumulated depreciation 56,401,555 [98,064] 56,303,491 4,173,398 [298,2601 60,178,629 Governmental activities capital assets, net $ 107,366,408 $ 1,290,737 $ 108,657,145 $ 10,162,155 $ [4,103,378] $ 114,715,922 Bu siness-type activities: Capital assets, not being depreciated Construction in progress $ 8,216,772 $ [68,980] $ 8,147,792 $ 2,148,253 $ [10,234,658] 61 ,387 Land 3,552 120,000 123,552 790,222 913,774 Capital assets, being depreciated I nfra structure 49,944,345 [3,453] 49,940,892 10,388,324 [19,217] 60,309,999 Buildings and improvements 22,544,156 [7,172} 22,536,984 [12,421] 22,524,563 Vehicles 2,063,344 [23,416] 2,039,928 135,106 [84,273] 2,090,761 Equipment, furniture and fixtures 3,357,878 [41,755] 3,316,123 46,188 [5,133] 3,357,178 Total capital assets 86,130,047 [24,776] 86,105,271 13,508,093 [10,355,702] 89,257,662 Less accumulated depreciation for: I nfra structure 17,528,511 5,405 17,533,916 1,662,480 19,196,396 Buildings and improvements 7,120,709 [250] 7,120,459 451,963 7,572,422 Vehicles 1,393,903 [11,627] 1,382,276 158,870 [84,273] 1,456,873 Equipment, fumiture and fixtures 1,428,632 3,217 1,431,849 252,946 [5,133] 1,679,662 Total accumulated depreciation 27,471,755 [3,255] 27,468,500 2,526,259 [89,406] 29,905,353 Business-type activities capital assets, net $ 58,658,292 $ [21,521} $ 58,636,771 $ 10,981,834 $ [10,266,296] $ 59,352,309 38 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31,2004 Note 4. DETAILED NO-rES ON ALL FUNDS (Continued) C. Capital Assets (Continued) The City's depreciation expense was charged to governmental functions as follows: Governmental Activities: General government $ 105,666 Public safety 821 ,541 Public works 2,843,056 Public health 34,462 Culture and recreation 263,067 Planning and development 105,606 Total depreciation $ 4,173,398 Business-type Activities: Solid Waste Disposal $ 725,126 Water and Sewer 1 ,675,239 Sanitation 86,745 Golf Course Division 39,149 Total depreciation $ 2,526,259 D. Long-Term Debt Following is a summary of changes in long-term debt for fiscal year 2004: Adjusted Balance Balance Balance Amounts January 1, January 1, December 31, Due Within 2004 Adjustments 2004 Additions Deletions 2004 One Year Governmental activities: General obligation bonds $ 20}44,309 $ [282,584] $ 20,461 }25 $ 6}06,947 $ 7,641,402 $ 19,527,270 $ 2,534,349 Capital lease 60,000 60,000 18,850 41 ,150 20,206 Accrued compensation 2,368,412 2,368,412 1,103,635 1,052,538 2,419,509 1,155,309 Temporary notes 4,250,000 4,250,000 3,925,000 1,300,000 6,875,000 4,675,000 Total $ 27,422 }21 $ [282,584] $ 27,140,137 $ 11,735,582 $ 10,012}90 $ 28,862,929 $ 8,384,864 Business-type activities: General obligation bonds $ 5,228,397 $ 282,584 $ 5,510,981 $ 2,931,100 $ 1,041 }86 $ 7,400,295 $ 1,141,840 Revenue bonds 6,215,000 6,215,000 600,000 5,615,000 625,000 Loans payable 8,082,199 8,082,199 304,935 7,777,264 316,661 Temporary notes 2,533,972 2,533,972 2,533,972 Accrued compensation 623,000 623,000 232,599 230,974 624,625 269,412 Total $ 22,682,568 $ 282,584 $ 22,965,152 $ 3,163,699 $ 4,711,667 $ 21,417,184 $ 2,352,913 Component Units: General obligation bonds $ 6,265,000 $ - $ 6,265,000 $ - $ 830,000 $ 5,435,000 $ 850,000 Revenue bonds 245,000 245,000 75,000 170,000 80,000 Loans payable 218,629 218,629 53,036 165,593 54,109 Temporary notes 3,255,000 3,255,000 Special assessment debt 506,804 506,804 30,887 475,917 32,050 Total component units $ 7,235,433 $ - $ 7,235,433 $ 3,255,000 $ 988,923 $ 9,501,510 $ 1,016,159 39 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Long-Term Debt (Continued) The following is a detailed listing of the city's long-term debt including general obligation bonds, revenue bonds, temporary notes and loans payable: Primary Government Original Interest Bonds General Obligation Bonds I ssu e Rates Outstanding Internal Improvements 1998, due 8/1/2003 $ 3,900,000 4.100/0 to 5.000/0 $ 310,000 Water/sewer refunding 1998, due 10/1/2008 6,010,000 3.800/0 to 4.400/0 2,404,565 Internal Improvements 1999, due 10/1/2014 5,465,000 4.300k to 5.500/0 1,840,000 Internal Improvements 2000, due 10/1/2015 3,885,000 4.6250/0 to 6.500k 1 ,650,000 Internal Improvements 2001, due 10/1/2016 5,350,000 4.00% to 4.900/0 4,270,000 Water/sewer refunding 2002A, due 10/1/2013 2,045,000 3.000k to 4.500/0 1,655,000 Internal Improvements 2002B, due 10/1/2017 1 ,980,000 2.700/0 to 4.500/0 1,645,000 Internal Improvements 2003A, due 10/1/2018 4,350,000 2.130/0 to 3.85Ok 4,025,000 Refunding 2004A, due 8/1/15 5,585,000 2.100k to 4.000/0 5,075,000 Internal Improvements 2004B, due 10/1/19 4,053,000 3.000k to 4.00$ 4,053,000 Total general obligation bonds $ 26,927,565 Revenue Bonds Revenue Refunding 2002A, due 9/1/2012 6,790,000 2.200/0 to 4.250/0 $ 5,615,000 Total revenue bonds $ 5,615,000 Loans Payable Kansas Public Water Supply, due 2/1/2020 3,600,000 4.29Ok $ 3,033,158 Kansas Public Water Supply, due 2/1/2023 5,000,000 4.130/0 4,744,106 Total loans payable $ 7,777,264 Temporary Notes Series 2003-2, due 7/1/2007 1,200,000 2.000k $ 1,200,000 Series 2003-3, due 8/1/2005 1,750,000 1.350/0 1,750,000 Series 2004-1, due 7/1/2007 1,000,000 2.300k 1,000,000 Series 2004-2, due 8/1/2005 775,000 2.000/0 775,000 Series 2004-3, due 8/1/2005 2,150,000 3.00% 2,150,000 Total temporary notes $ 6,875,000 Capital Lease, due 6/1/2006 60,000 3.65 $ 41,150 40 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Long-Term Debt (Continued) Original Issue Interest Rates Bonds Outstandina Component Unit Salina Airport Authority General Obligation Bonds General Obligation 1998, due 2008 $ 4,440,000 4.050/0 to 5.500/0 $ 1,770,000 General Obligation 1999B, due 2010 555,000 3.900/0 to 5.200/0 320,000 General Obligation 2001A, due 2012 1,385,000 4.450/0 to 5.600/0 1,170,000 General Obligation 2002A, due 2012 2,635,000 2.450/0 to 3.700/0 2,175,000 Total general obligation bonds 5,435,000 Revenue Bonds Leasehold revenue 1991, due 2006 850,000 5.000/0 to 7.250/0 170,000 Loans Payable Kansas Dept of Commerce & Housing, due 2007 468,542 2.000/0 165,593 Temporary Notes 3,255,000 3.120/0 3,255,000 Special assessment debt 565,235 3.190/0 475,917 Total $ 9,501,510 Annual debt service requirements to maturity for general obligation bonds to be paid with tax levies: General Obligation - Primary Government Bonds Interest Year Outstandina Due Total 2005 $ 3,676,186 $ 1,034,939 $ 4,711,125 2006 3,538,189 871 ,096 4,409,285 2007 3,378,190 742,757 4,120,947 2008 3,040,000 617,689 3,657,689 2009 2,390,000 501,174 2,891,174 2010-2014 8,735,000 1,390,053 10,125,053 2015-2018 2,170,000 188,349 2,358,349 Total $ 26,927,565 $ 5,346,055 $ 32,273,620 General Obligation - Component Units Bonds Interest Year Outstandina Due Total 2005 $ 850,000 $ 220,434 $ 1,070,434 2006 850,000 186,866 1,036,866 2007 885,000 154,858 1 ,039,858 2008 905,000 120,041 1,025,041 2009 490,000 82,951 572,951 2010-2012 1 ,455,000 124,891 1,579,891 Total $ 5,435,000 $ 890,041 $ 6,325,041 41 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) D. Long-Term Debt (Continued) Annual debt service requirements to maturity for revenue bonds to be paid with utility revenues: Revenue Bonds - Primary Government Bonds Interest Year Outstandina Due Total 2005 $ 625,000 $ 191,810 $ 816,810 2006 640,000 178,060 818,060 2007 640,000 162,060 802,060 2008 680,000 143,500 823,500 2009 710,000 116,300 826,300 2010-2013 2,320,000 189,945 2,509,945 Total $ 5,615,000 $ 981,675 $ 6,596,675 Annual debt service requirements to maturity for revenue bonds to be paid with service revenues: Revenue Bonds - Component Units Bonds Interest Year Outstandina Due T ota I 2005 $ 80,000 $ 12,285 $ 92,285 2006 90,000 6,525 96,525 Total $ 170,000 $ 18,810 $ 188,810 Annual debt service requirements to maturity for temporary notes - to be paid through the issuance of general obligation bonds: Temporary Notes - Primary Government Notes Interest Year Outstanding Due Total 2005 $ 4,675,000 $ 139,667 $ 4,814,667 2006 21,211 21,211 2007 2,200,000 116,278 2,316,278 Total $ 6,875,000 $ 277,156 $ 7, 152, 156 Temporary Notes - Component Units Notes Interest Year Outstandina Due Total 2006 $ 3,255,000 $ 152,334 $ 3,407,334 42 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 D. Long-Term Debt (Continued) Note 4. DETAILED NOTES ON ALL FUNDS (Continued) The City has engaged in loans in which they have yet to receive all of the proceeds. The following displays annual debt service requirements to maturity for loans payable to be paid from service revenues, for the full proceeds amount: Year 2005 2006 2007 2008 2009 2010-2014 2015-2019 2020-2023 Total Year 2005 2006 2007 Total Loans - Primary Government Bonds Interest Outstandina Due T ota I $ 316,661 $ 296,049 $ 612,710 330,105 283,725 613,830 344,120 270,878 614,998 358,731 257,484 616,215 373,962 243,521 617,483 2,121,898 986,518 3,108,416 2,612,304 536,959 3,149,263 1,319,483 94,675 1,414,158 $ 7,777,264 $ 2,969,809 $ 10,747,073 Loans - Component Unit Bonds Interest Outstandina Due Total $ 54, 1 09 $ 3,043 $ 57, 152 55,184 1,955 57, 139 56,300 846 57,146 $ 165,593 $ 5,844 $ 171 ,437 Annual debt service requirement to maturity for Special Assessment Debt to be paid from rental revenue: Special Pssessment Debt - Component Unit Assessment Interest Year Outstandina Due Total 2005 $ 32,056 $ 18,038 $ 50,094 2006 33,271 16,824 50,095 2007 34,533 15,562 50,095 2008 35,841 14,254 50,095 2009 37,200 12,894 50,094 2010-2013 163,444 36,933 200,377 2014-2016 139,572 10,711 150,283 Total $ 475,917 $ 125,216 $ 601,133 43 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 4. DETAILED NO-rES ON ALL FUNDS (Continued) D. Long-Term Debt (Continued) Special assessments. As provided by Kansas statutes, projects financed in part by special assessments are financed through general obligation bonds of the City and are retired from the debt service fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in the debt service fund. -rhe 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 of the City to the extent of property owner defaults, which have historically been immaterial. Conduit debt. The City has entered into several conduit debt arrangements wherein the City issues industrial revenue bonds to finance a portion of the construction of facilities by private enterprises. In return, the private enterprises have executed mortgage notes or leases with the City. The City is not responsible for payment of the original bonds, but rather the debt is secured only by the cash payments agreed to be paid by the private enterprises under the terms of the mortgage or lease agreements. Generally, the conduit debt is arranged so that payments required by the private enterprises are equal to the mortgage payments schedule related to the original debt. At December 31, 2004, total outstanding conduit debt was $79,989,686. E. Capital Leases The City has entered into a lease agreement as lessee for financing the acquisition of equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. Governmental Activities Assets Other equipment $ 60,000 Minimum future lease payments under capital leases as of December 31, 2004 are: 2005 2006 Governmental Activities $ 21,708 21 ,708 43,416 [2,266} 41 , 1 50 $ Total minimum lease payments Less amount representing interest Present value of future minimum lease payments 44 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 4. DETAILED NOTES ON ALL FUNDS (Continued) F. Reconciliation of Transfers A reconciliation of interfund transfers follows: Transfer In Transfer Out Major Funds: General fund $ 133,629 $ 170,856 Tourism and convention fund 342,809 Special gas fund 279,908 21,525 Bicentennial center fund 492,809 Debt service 811 Capital project fund 124,345 329,753 Other governmental funds 34,918 222, 170 water and sewer fund 39,084 62,640 I nternal service funds 44,249 Total Transfers $ 1,149,753 $ 1,149,753 The City uses interfund transfers to share administrative costs between funds. Note 5. OTHER INFORMATION A. Defined Benefit Pension Plan Plan descn"ption. The City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer defined benefit pension plans as provided by Kansas statutes (KSA 74-4901 et seq). KPERS and KP&F provide retirement benefits, life insurance, disability income benefits and death benefits. Kansas law established and amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes financial statements and required supplementary information. Those reports may be obtained by writing to 611 South Kansas, Suite 100; Topeka, Kansas 66603 or by calling 1-888-275-5737. Funding Policy. K.S.A. 74-4919 establishes the KPERS member-employee contribution rate at 4% of covered salary. K.S.A. 74-4975 establishes the KP&F member-employee contribution rate at 70/0 of covered salary. The employer collects and remits member-employee contributions according to the provisions of section 414 (h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS and KP&F are funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS employer rate was 3.220k from January 1 to June 30, 2004 and 3.82% from July 1 to December 31, 2004. The City employer contributions to KPERS for the years ending December 31, 2004, 2003, and 2002 were $375,084, $334,377 and $347,505, respectively, equal to the required contributions for each year. The KP&F employer rate established for fiscal years beginning in 2004 is 12.980/0. Employers participating in KP&F also make contributions to amortize the liability for past service costs, if any, which are determined separately for each participating employer. The City's contributions to KP&F for the years ended December 31, 2004, 2003, and 2002 were $962,807, $781,320 and $735,657, respectively, equal to the required contributions for each year. B. Deferred Compensation Plan The City offers its employees a deferred compensation plan ("Plan") created in accordance with Internal Revenue Code Section 457. The Plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Plan assets are transferred to a plan agent in a custodial trust and are not available to the claims of the City's general creditors. 45 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 5. O-rHER INFORMA-rION (Continued) C. Flexible Benefit Plan (I.R.C. Section 125) -rhe 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 of her salary to purchase benefits offered through the Plan. Benefits offered through the Plan include various insurance and disability benefits. D. Risk Man~gement 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 if reported in the Workers' Compensation Reserve Fund because it is expected to be liquidated with expendable available financial resources. Of the liability, $261,335 is considered to be due within one year. Changes in the balances of claims liabilities during the past two years are as follows: 2004 2003 Unpaid claims, January 1 $ 247,459 $ 144,964 Incurred claims (including IBNRs) 281,750 294,845 Claim payments [192,000] [192,350] Unpaid claims, December 31 $ 337,209 $ 247,459 The City established a limited risk management program for employee health and dental insurance in 1997. The program covers eligible City employees. Premiums are paid into the health insurance fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. An excess coverage insurance policy covers individual claims in excess of $50,000. Incurred claims, including incurred but not reported claims, have been accrued based primarily upon subsequent payments. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amounts of payouts and other economic and social factors. The liability for claims and judgments in the Health Insurance Fund because it is expected to be liquidated with expendable available financial resources. -rherefore, 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: 2004 2003 Unpaid claims, January 1 $ 374,346 $ 447,253 I ncurred claims (including IBNRs) 2,774,366 3,492,899 Claim payments [2,846,780] [3,565,806] Unpaid claims, December 31 $ 301,932 $ 374,346 46 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA~rEMENTS December 31,2004 Note 5. OTHER INFORMATION (Continued) E. Capital Projects Capital projects often extend over two or more fiscal years. -rhe following is a schedule which compares the project authorization including 'allowable interest revenue to total project expenditures from project inception to December 31, 2004. Proiect Cedar Ridge Addition and Drive South Ohio Water Line Ext 2004 Subdivisions Bi Center HV AC North 9th Bridge Lakewood Bridge Bill Burke Soccer RiverRun Subdivision North Broadway Corridor West Grand Museum Gallery Fire Station #2 Renovation N Ohio Grade Separation Marymount Extension South Ohio Corridor Soccer Complex F. Contingent Liabilities Authorization $ 1,195,878 500,000 462,224 500,000 375,000 150,000 300,000 2,358,962 1,800,000 1 ,200,000 4,000,000 282,761 2,830,000 Expenditures $ 1,002,754 275,088 953,427 313,962 363,033 208,126 173,916 32,227 279,908 37,440 6,500 4,047,334 43,300 5,994 The City receives significant financial assistance from numerous federal and state governmental agencies in the form of grants and state pass-through aid. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims would not have a material effect on any of the financial statements of the City at December 31, 2004. 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. 47 CITY OF SALINA, KANSAS NOTES TO THE BASIC FINANCIAL STA-rEMENTS December 31, 2004 Note 5. OTHER INFORMATION (Continued) G. Municipal Solid Waste Landfill State and federal laws and regulations require the City to place a final cover on its landfill site when it stops accepting waste, and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense of the solid waste fund in each period based on landfill capacity used as of each balance sheet date. The $1,761,260 reported as landfill closure and postclosure care liability at December 31 represents the cumulative amount reported to date based on the use of 29.60/0 of the estimated capacity of the landfill. The City's solid waste fund will recognize the remaining estimate cost of closure and postclosure care of $3,599,610 as the remaining estimated capacity is filled over the remaining life expectancy of 81 years. These amounts are based on what it would cost to perform all closure and postclosure care in 2004. Actual cost may be higher due to inflation, changes, in technology or changes in regulations. -rhe City is required by State and Federal laws and regulations to provide assurances of financial responsibility for closure and post- closure care. The City has elected to utilize the Local Government Financial test promulgated by the U.S. Environmental Protection Agency (at 40 CFR 258.74{f)) and the Kansas Department of Health and Environment to provide these assurances. Any future closure or post-closure care costs will be provided through the normal budgeting and rate setting process, including the issuance of general obligation bonds, if necessary. H. Environmental Matters The Kansas Department of Health and Environment (KDHE) issued a report in 1994 indicating the presence of volatile organic compounds at levels requiring remediation at the Salina Public Water Supply Wells Site (the Site). The City adopted a proactive Policy and Action Plan to remediate the groundwater contamination, and on December 7, 1994, the City and KDHE entered into a Consent Order and Settlement Agreement under which the City assumed primary responsibility for the further investigation and remediation of the groundwater contamination. Field testing work has been completed. The necessary remediation work will be conducted over the next several years at a yet undetermined cost to the City's Water and Sewer Fund. The Salina Airport Authority has been involved in discussions with the Corps of Engineers, Environmental Protection Agency, and the Kansas Department of Health and Environment relative to the former Schilling air Force Base (the Base) in Salina, Kansas. The Base was operational from 1942 to 1965 when it was decommissioned and became the current Salina Municipal Airport and Salina Airport Industrial Center. During its period of operation, the Base was used for large aircraft including B-17s, B-29s, B-47s and the refueling KC-97s and KC-135s. The Army Corps of Engineers did a removal of 107 former underground storage tanks at the former Base in 1995. In addition to efforts by the Corps of Engineers, the Environmental Protection Agency has conducted an Expanded Site Investigation (ESI) to determine all sources of potential contamination at the Site. Once the additional information gathering effort has been conducted and all parties know the nature and extent of contamination, it is anticipated that there will be a discussion with respect to cleanup options and allocation of responsibility. At this time, the Authority does not know specifically whether the City of Salina or the Authority will have cleanup obligations. 48 This page intentionally left blank. REQUIRED SUPPLEMENTARY INFORMATION CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 Revenues Taxes Real estate taxes $ 2,065,791 $ 2,081,101 $ 2,081,101 $ [15,310] Del i nquent taxes 71,099 50,000 50,000 21,099 Motor vehicle taxes 325,603 292,037 292,037 33,566 General sales tax 10,500,582 10,231,000 10,231,000 269,582 Selective sales tax 1,653,401 1,635,000 1,635,000 18,401 Other taxes 2,000,437 1,975,000 1,975,000 25,437 Total taxes 16,616,913 16,264,138 16,264,138 352,775 Charges for Services General charges 123,118 8,000 8,000 115,118 General government 6,560 9,000 9,000 [2,440] Public safety 2,770,191 2,645,354 2,645,354 124,837 Public works 155,428 175,000 175,000 [19,572] Health and sanitation 41,915 24,000 24,000 17,915 Culture and recreation 501,385 513,000 513,000 [11,615] Community and economic development 10,955 10,500 1 0,500 455 Total charges for services 3,609,552 3,384,854 3,384,854 224,698 Operating grants, restricted General grants 136,218 161,424 161,424 [25,206] Public safety 749,560 732,000 732,000 17,560 Total operating grants, restricted 885,778 893,424 893,424 [7,646] Operating grants, unrestricted Public safety 5,015 5,015 Public works 2,100 1,000 1,000 1,100 Total operating grants, unrestricted 7,115 1,000 1,000 6,115 Interest income General interest 102,684 150,000 150,000 [47,316] Total interest income 102,684 150,000 150,000 [47,316] Interfund services provided General services 616,737 716,500 716,500 [99,763] General government 1,104,955 1,050,455 1,050,455 54,500 Community and economic development 100,000 100,000 100,000 Total interfund services provided 1,821,692 1 ,866,955 1,866,955 [45,263] Miscellaneous revenues General miscellaneous revenues 30,959 57,500 57,500 [26,541 ] Public safety 105 105 Public works 70,456 32,000 32,000 38,456 Community and economic development 202 202 Total miscellaneous revenues 1 01,722 89,500 89,500 12,222 Proceeds of fixed assets General sales 129 30,000 30,000 [29,871] Public Safety 1,100 1,100 Total proceeds of fixed assets 1,229 30,000 30,000 [28,771] Total revenues 23,146,685 22,679,871 22,679,871 466,814 See independent auditor's report on the financial statements. 49 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 Expenditures General Government City commission $ 103,934 $ 105,450 $ 105,450 $ 1,516 City manager 338,807 414,750 415,750 76,943 Legal 169,840 131,300 131,300 [38,540] Finance 386,947 410,680 417,541 30,594 Human resources 208,523 202,597 214,181 5,658 Other general government 931,057 829,337 709,337 [221,720] Contingencies 51,340 200,000 200,000 148,660 Total general government 2,190,448 2,294,114 2,193,559 3,111 Public Safety Police 4,617,617 4,876,358 4,875,158 257,541 Municipal court 955,411 859,020 903,620 [51,791] Fire 4,414,455 4,364,920 4,369,420 [45,035] Total public safety 9,987,483 10,100,298 10,148,198 160,715 Public Works Buildings and general improvements 683,675 693,633 696,433 12,758 Engineering 516,402 51 0, 138 510,138 [6,264 ] Streets 1,172,832 1,210,139 1,210,139 37,307 Flood works 125,953 136,225 136,225 10,272 Traffic control 520,786 568,587 562,646 41,860 Parks 992,817 1,001,676 1,008,378 15,561 ADA compliance 12,233 25,000 25,000 12,767 Total public works 4,024,698 4,145,398 4,148,959 124,261 Public Health and Sanitation Cemetery 82,790 82,038 82,038 [752] Health department 740,448 740,448 740,448 Total public health and sanitation 823,238 822,486 822,486 [752] Culture and Recreation Swimming pools 68,047 75,900 75,900 7,853 Neighborhood centers 47,724 55,449 55,449 7,725 Recreation 1,163,788 1,167,148 1,167,148 3,360 Arts and humanities 286,174 302,695 302,695 16,521 Smoky Hill museum 316,546 310,060 310,060 [6,486] Total culture and recreation 1,882,279 1,911,252 1,911,252 28,973 Community Development Human relations 184,914 178,514 1841614 [300] Development services 900,803 934,978 968,498 67,695 Agency contracts 1,896,726 1,876,000 1,876,000 [20,726] Total community development 2,982,443 2,989,492 3,029,112 46,669 Capital Outlay Capital outlay 732,119 968,697 969,697 237,578 Cash Reserve 3,713,636 3,702,110 3,702,110 Total expenditures 22,622,708 26,945,373 26,925,373 4,302,665 Excess [deficiency] of revenues over [under] expenditures 523,977 [4,265,502] [4,245,502] 4,769,479 See independent auditors report on the financial statements. 50 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) GENERAL FUND For the Year Ended December 31,2004 Other financing sources [uses] Transfer in Transfer [out] Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 $ 133,629 $ - $ - $ 133,629 [170,856l [150,0001 [170,000] [856J [37,227] [150,OOO} [170,000] 132,773 Total other financing sources [uses] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Prior year cancelled encumbrances 486,750 [4,415,502] [4,415,502} 4,902,252 5,256,227 4,415,502 4,415,502 840,725 13,934 13,934 5,756,911 $ - $ - $ 5,756,911 36,023 1,254,555 103,464 160,350 $ 7,311,303 Unreserved fund balance, January 1 Unreserved fund balance, December 31 Reconciliation to GAAP I nterest receivable Accounts receivable Inventory Encumbrances GAAP Fund Balance, December 31 See independent auditor's report on the financial statements. 51 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDrrURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) EMPLOYEE BENEFITS FUND For the Year Ended December 31, 2004 Miscellaneous revenues General miscellaneous revenues Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 $ 4,015,801 $ 4,009,997 $ 4,009,997 $ 5,804 95,570 55,000 55,000 40,570 445,649 400,175 400,175 45,474 4,557,020 4,465,172 4,465, 172 91,848 2,000 2,000 [2,000] 4,557,020 4,467, 172 4,467,172 89,848 Revenues Taxes Real estate taxes Delinquent taxes Motor vehicle taxes Total taxes Total revenues Expenditures General Government City commission City manager Finance Human resources Total general government 1,422 1,420 1 ,420 [2] 76,809 84,461 84,461 7,652 82,364 87,266 87,266 4,902 41,857 41 ,638 41,638 [219] 202,452 214,785 214,785 12,333 1,245,986 1,207,499 1,207,499 [38,487] 114,970 114,213 114,213 [757] 1,287,958 1,217,042 1,217,042 [70,916] 2,648,914 2,538,754 2,538,754 [110,160) 77,605 69,892 69.892 [7,713] 120,483 118,783 118,783 [1,700] 264,769 287,447 287,447 22,678 36,479 35,679 35,679 [800] 23,498 43,440 43,440 19,942 227,864 237,322 237,322 9,458 750,698 792,563 792,563 41,865 Public Safety Police Municipal court Fire Total public safety Public Works Buildings and general improvements Engineering Streets Flood works Traffic control Parks Total public works See independent auditor's report on the financial statements. 52 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITLIRES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) EMPLOYEE BENEFITS FUND For the Year Ended December 31,2004 Variance with Final Budget BudQeted Amounts Positive Actual Oriqinal Final rN eaative 1 Expenditures - continued Public Health and Sanitation Cemetery $ 24,361 $ 27,335 $ 27,335 $ 2,974 Culture and Recreation Swimming pools 3,647 4,707 4,707 1,060 Neighborhood centers 3,431 3,617 3,617 186 Recreation 149,034 148,961 148,961 [73] Bi-Centennial Center 181,808 176,668 176,668 [5,140] Arts and humanities 57,002 63,580 63,580 6,578 Smoky Hill museum 59,578 60,926 60,926 1,348 Total culture and recreation 454,500 458,459 458,459 3,959 Community Development Human relations 40,871 37,677 37,677 [3,194] Developmental services 182,473 206,790 206,790 24,317 Total community development 223,344 244,467 244,467 21,123 Other Health insurance 5,373 12,000 12,000 6,627 Cash Reserve 400,000 400,000 400,000 Total expenditures 4,309,642 4,688,363 4,688,363 378,721 Excess [deficiency] of revenues over [under] expenditures 247,378 [221, 191 ] [221 , 191 ] 468,569 GAAP Fund balance, January 1 364,888 221 ,191 221 , 191 143,697 GAAP Fund balance, December 31 $ 612,266 $ - $ - $ 612,266 See independent auditor's report on the financial statements. 53 CITY OF SALINA1 KANSAS SCHEDULE OF REVENUES, EXPENDrrLIRES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) FLOOD AND DRAINAGE IMPROVEMENT FL'ND For the Year Ended December 31,2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 Revenues Taxes Real estate taxes $ 318,585 $ 317,954 $ 317,954 $ 631 Delinquent taxes 9,349 3,000 3,000 6,349 Motor vehicle taxes 43,637 39,157 391157 4,480 Total taxes 3711571 360,111 360, 111 11,460 Total revenues 371 ,571 360, 111 360, 111 11 ,460 Expenditures Capital Outlay Capital outlay 157,395 350,000 350,000 192,605 Debt Service 100,000 100,000 100,000 Cash Reserve 167,569 167,569 167,569 Total expenditures 257,395 617,569 617,569 360,174 Excess [deficiency] of revenues over [under] expenditures 114, 176 [257,458] [257,458] 371,634 Unreserved fund balance, January 1 346,379 257,458 257,458 88,921 Prior year cancelled encumbrances 7,990 7,990 Unreserved fund balance, December 31 468,545 $ - $ - $ 468,545 Reconciliation to GAAP Current Year Encumbrances 521603 GAAP Fund Balance, December 31 $ 521 , 148 See independent auditor's report on the financial statements. 54 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) TOURISM AND CONVEN-rION FLIND For the Year Ended December 31, 2004 Actual Budaeted Amounts Oriainal Final Revenues Taxes Other taxes $ 805,775 $ 775,000 $ 805,775 $ Interest income General interest 381 Total revenues 806,156 805,775 775,000 Expenditures Community Development Tourism 465,000 465,000 465,000 Total expenditures 465,000 465,000 465,000 Excess [deficiency] of revenues over [under] expenditures 341 , 156 310,000 340,775 Other financing sources [uses] Transfer [out] [310,0001 [345,000] [342,809] Excess [deficiency} of revenues and other sources over [under} expenditures and other [uses] [1,653J [4,225} Unreserved fund balance, January 1 56,654 56,654 Unreserved fund balance, December 31 55,001 $ - $ 52,429 $ Reconciliation to GAAP Accounts receivable Interest receivable 211,878 321 GAAP Fund Balance, December 31 $ 267,200 See independent auditor's report on the financial statements. 55 Variance with Final Budget Positive rNeaativel 381 381 381 2, 191 2,572 2,572 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL GAS FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel Revenues Operating grants, restricted Public works $ 1,444,934 $ 1,500,000 $ 1,500,000 $ [55,066] Interest income General interest 16,875 10,000 10,000 6,875 Interfund services provided Public works 500 500 Total revenues 1,462,309 1,510,000 1,510,000 [47,691 ] Expenditures Public works Streets 324,260 379,833 379,833 55,573 Capital Outlay Capital outlay 1,762,950 1,375,000 1,375,000 [387,950] Adjustment for qualifying budget credits 279,908 279,908 Cash Reserve 212,583 212,583 212,583 Total expenditures 2,087,210 1,967,416 2,247,324 160, 114 Excess [deficiency] of revenues over [under] expenditures [624,901] [457,416] [737,324] 112,423 Other financing sources [uses] Transfer in 279,908 279,908 Transfer [out] [21,525] [21,525] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [366,518] [457,416] [457,416] 90,898 Unreserved fund balance, January 1 744,360 457,416 457,416 286,944 Prior year cancelled encumbrances 50,009 50,009 Unreserved fund balance, December 31 427,851 $ - $ - $ 427,851 Reconciliation to GAAP Taxes receivable 457,693 Interest receivable 5,536 Current year encumbrances 491 ,097 GAAP Fund Balance, December 31 $ 1,382,177 See independent auditor's report on the financial statements. 56 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) BICENTENNIAL CENTER FLIND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel Revenues Charges for services Culture and recreation $ 839,517 $ 875,609 $ 875,609 $ [36,092] I nterest income General interest 1,368 5,000 5,000 [3,632J Miscellaneous revenues General miscellaneous revenues 103 103 Total revenues 840,988 880,609 880,609 [39,621 ] Expenditures Culture and Recreation Bi-Centennial Center 1,310,246 1,314,872 1,314,872 4,626 Capital Outlay Capital outlay 2,097 20,600 20,600 18,503 Cash Reserve 200,000 200,000 200,000 Total expenditures 1,312,343 1,535,472 1,535,472 223,129 Excess [deficiency] of revenues over [underJ expenditures [471,355] [654,863] [654, 863} 183,508 Other financing sources [uses] Transfer in 492,809 460,000 460,000 32,809 Total other financing sources [usesJ 492,809 460,000 460,000 32,809 Excess [deficiency} of revenues and other sources over [under] expenditures and other [uses] 21,454 [194,863J [194,863] 216,317 Unreserved fund balance, January 1 230,505 194,863 194,863 35,642 Unreserved fund balance, December 31 251,959 $ - $ - $ 251,959 Reconciliation to GAAP Accounts receivable 3,367 I nterest receivable 1,577 GAAP Fund Balance, December 31 $ 256,903 See independent auditor's report on the financial statements. 57 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES CITY OF SALINA, KANSAS COMBINING STATEMENTS - NONMAJOR FUNDS NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Business improvement district fund - State law allows businesses within an area to voluntarily establish an improvement 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. Bicentennial center event fund - To account for the revenues and expenses associated with special events (concerts, shows, etc.) at the City's convention center. HUD community development fund - To account for grants received from the state to be used for housing or economic development purposes. Community development revolving fund - To account for funds which may be loaned for housing and economic development purposes, to later be repaid and reused on a revolving basis. Heritage commission fund - To account for revenues and expenses associated with heritage preservation activities. Sales tax capital fund - To account for 87.5% of the 1/4 cent sales tax designated for capital, debt, and human services purposes. Sales tax economic development fund - To account for 12.50Jb of the 1/4 cent sales tax designated for economic Development purposes. Fair housing fund - To account for grants received from the federal government to be used to monitor and mediate fair housing complaints. CDBG ED fund- To account for grants received from the federal government to be used for economic development loans to qualifying businesses. HOME IV fund - To account for grants received from the state government to be used for housing rehabilitation. Special law enforcement fund - To account for revenues received from the sale of forfeited assets acquired during drug enforcement activities. Expenses are limited to capital items to be used for further drug enforcement activities. Fair housing partnership - To account for revenues and expenses associated with fair housing complaints. Police grants fund - To account for revenues from grants which are to be used for special police activities, including the D.A.R.E. program D.A.R.E. donations fund - To account for donations to the D.A.R.E. program. Large system interface fund - To account for grants received for the acquisition of computers and software used in law enforcement activities. War memorial maintenance fund - To account for monies to be used for maintenance of the local war memorial. 58 CITY OF SALINA, KANSAS COMBINING STATEMENTS - NONMAJOR FLINDS 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. 59 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31,2004 Total Total Total Nonmajor Nonmajor Nonmajor Special Revenue Permanent Governmental Funds Funds Funds ASSETS Cash and investments $ 1,419,089 $ 325,352 $ 1,744,441 Receivables Accounts 27,070 27,070 Interest 8,119 1,896 10,015 Notes 5,527 5,527 Total assets $ 1,459,805 $ 327,248 $ 1,787,053 LIABILI1-IES AND FUND BALANCES Liabilities: Accounts payable $ 14,595 $ - $ 14,595 T otalliabilities 14,595 14,595 Fund balances: Reserved for encumbrances 18, 188 18,188 Reserved for notes receivable 5,527 5,527 Unreserved Undesignated 1,421,495 327,248 1,748,743 Total fund balances 1,445,210 327,248 1,772,458 Total liabilities and fund balances $ 1,459,805 $ 327,248 $ 1,787,053 See independent auditor's report on the financial statements. 60 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FL~ND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31,2004 Total Total Total Nonmajor Nonmajor Nonmajor Special Revenue Permanent Governmental Funds Funds Funds REVENUES Taxes $ 610,805 $ - $ 610,805 Intergovernmental 315,475 315,475 Charges for services 880,054 7,035 887,089 Licenses and permits 18,400 18,400 Investment revenue 172,789 5,058 177,847 Miscellaneous 116,281 116,281 Total revenues 2,113,804 12,093 2,125,897 EXPENDITURES Current Culture and recreation 809,997 809,997 Public health and sanitation 131,420 131,420 Planning and development 283,850 283,850 Miscellaneous 35 35 Capital outlay 134,366 134,366 Total expenditures 1,359,633 35 1,359,668 Excess [deficiency] of revenues over [under] expenditures 754,171 12,058 766,229 Other financing sources [uses] Transfers in 34,918 34,918 Transfers [out] [222, 170] [222, 170] Total other financing sources [uses] [187,252] [187,252] Net change in fund balance 566,919 12,058 578,977 Fund balance - Beginning of year 887,457 315, 190 1,202,647 Prior period adjustment [9,166} [9,166] Fund balance - Beginning of year, restated 878,291 315,190 1,193,481 Fund balance - End of year $ 1,445,210 $ 327,248 $ 1,772,458 See independent auditor's report on the financial statements. 61 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2004 Business Special Improvement Neighborhood Parks & Special District Park Recreation Alcohol ASSETS Cash and investments $ 3,770 $ 152,885 $ 84,776 $ 15,385 Receivables Accounts 26,570 Interest 22 891 494 90 Notes Total assets $ 30,362 $ 153,776 $ 85,270 $ 15,475 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 3,757 $ - $ 8,857 $ Total liabilities 3,757 8,857 Fund balance: Reserved for encumbrances 18, 188 Reserved for notes receivable Unreserved Undesignated [deficit] 26,605 153,776 58,225 15,475 Total fund balance [deficit] 26,605 153,776 76,413 15,475 Total liabilities and fund balances $ 30,362 $ 153,776 $ 85,270 $ 15,475 Bicentennial HUD Comm. Sales Tax Center Community Development. Heritage Sales Tax Economic Event Dev. Revolvina Commission Capital Develooment $ 26,474 $ 60,422 $ 180,596 $ 1,081 $ 536,583 $ 76,697 352 1,053 6 3,128 447 5.527 $ 26,474 $ 66,301 $ 181,649 $ 1,087 $ 539,711 $ 77, 144 $ - $ - $ - $ - $ - $ 5,527 26,474 26,474 60,774 66,301 181,649 181,649 1,087 1,087 539,711 539,711 77,144 77,144 $ 26,474 $ 66,301 $ 181,649 $ 1,087 $ 539,711 $ 77, 144 See independent auditor's report on the financial statements. 62 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2004 Special Fair CDBG HOME Law Housina ED IV Enforcement ASSETS Cash and investments $ 204,649 $ - $ - $ 12,290 Receivables Accounts Interest 1 , 193 72 Notes Total assets $ 205,842 $ - $ - $ 12,362 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,981 $ - $ - $ Total liabilities 1,981 Fund balance: Reserved for encumbrances Reserved for notes receivable Unreserved Undesignated [deficit] 203,861 12,362 Total fund balance [deficit] 203,861 12,362 Total liabilities and fund balances $ 205,842 $ - $ - $ 12,362 Fair Large War Housing Police DARE System Memorial Part. Grants Donations Interface Maintenance Totals $ - $ - $ 29,756 $ - $ 33,725 $ 1,419,089 500 27,070 173 198 8,119 5,527 $ - $ - $ 301429 $ - $ 33,923 $ 1 ,459,805 $ - $ - $ - $ - $ - $ 14,595 14,595 18,188 5,527 30,429 33,923 1,421,495 30,429 33,923 1,445,210 $ - $ - $ 30,429 $ - $ 33,923 $ 1,459,805 See independent auditor's report on the financial statements. 63 CITY OF SALINA, KANSAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31,2004 Business Special Improvement Neighborhood Parks & Special District Park Recreation Alcohol Revenues Taxes $ - $ - $ - $ Intergovernmental 134,088 134,089 Charges for services 88,501 Licenses and permits 18,400 Investment revenue 92 2,351 1 ,240 Miscellaneous Total Revenues 88,593 20,751 135,328 134,089 Expend itu res Current Culture and recreation Public health and sanitation 131,420 Planning and development 85,989 Capital outlay 110,269 Total Expenditures 85,989 110,269 131,420 Excess [deficiency] of revenues over [under] expenditures 2,604 20,751 25,059 2,669 Other financing sources [uses] Transfers in Transfers [out] [50,000] Total other financing sources [uses} r50.0001 Net change in fund balance 2,604 20,751 [24,941 ] 2,669 Fund balance, beginning of year 24,001 133,025 101,354 12,806 Prior period adjustment Fund balance, beginning of year, restated 24,001 133,025 101,354 12,806 Fund balance, end of year $ 26,605 $ 153,776 $ 76,413 $ 15,475 Sicenten nial HUD Community Sales Tax Center Community Development Herit~ge Sales Tax Economic Event Development Revolvina Commission Capital Development $ - $ - $ - $ - $ 534,455 $ 76,350 791 ,553 940 2,803 17 5,256 794 7,222 791,553 940 10,025 17 539,711 77, 144 809,997 3,639 450 809,997 3,639 450 [18,444] [2,699] 10,025 [433] 539,711 77,144 [18,444] [2,699J 10,025 [433 ] 539,711 77, 144 44,918 69,000 180,790 1,520 [9,166] 441918 69,000 171,624 1,520 $ 26,474 $ 66,301 $ 181,649 $ 1,087 $ 539,711 $ 77,144 See independent auditor's report on the financial statements. 64 CITY OF SALINA, KANSAS COMBINING STA-rEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2004 Special Fair CDBG HOME Law Housina ED IV Enforcement Revenues Taxes $ - $ - $ - $ Intergovernmental Charges for services Licenses and permits Investment revenue 157,453 192 Miscellaneous 319 31,908 Total Revenues 157,772 31,908 192 Expend itu res Current Culture and recreation Public health and sanitation Planning and development 130,864 31 ,908 Capital outlay Total Expenditures 1301864 31,908 Excess [deficiency] of revenues over [under] expenditures 26,908 192 Other financing sources [uses] Transfers in 34,293 625 Transfers [out] [11,469] Total other financing sources [uses] 341293 625 [11,469] Net change in fund balance 61,201 625 [11,469) 192 Fund balancel beginning of year 142,660 [625] 11 ,469 121170 Prior period adjustment Fund balance, beginning of year, restated 142,660 [625] 11 ,469 12,170 Fund balance, end of year $ 203,861 $ - $ - $ 12,362 Fair Large War Housing Police DARE System Memorial Partnership Grants Donations I nte rface Maintenance Totals $ - $ - $ - $ - $ - $ 610,805 47,298 315,475 880,054 18,400 182 944 525 172,789 75, 152 1,680 116,281 75,152 47,480 2,624 525 2,113,804 See independent auditor's report on the financial statements. 65 ASSETS Cash and investments I nterest receivable Total assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable Total liabilities Fund balances Unreserved Undesignated Total liabilities and fund balances CITY OF SALINA, KANSAS COMBINING BALANCE SHEET NONMAJOR PERMANENT FUNDS December 31, 2004 Cemetery Endowment Mausoleum Endowment Tricentennial Commission $ 291 ,679 $ 1,700 28,878 $ 168 $ 293,379 $ 29,046 $ $ - $ - $ 293,379 29,046 $ 293,379 $ 29,046 $ See independent auditor's report on the financial statements. 66 4,795 $ 28 4,823 $ - $ 4,823 Total 325,352 1,896 327,248 327,248 4,823 $ 327,248 Revenues Charges for services Investment revenue Total revenues Expenditures Miscellaneous Total expenditures Net change in fund balance CITY OF SALINA, KANSAS COMBINING STA-rEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON MAJOR PERMANENT FL~NDS For the Year Ended December 31, 2004 Cemetery Mausoleum Tricentennial Endowment Endowment Commission Total $ 7,035 $ - $ - $ 7,035 4,534 449 75 5,058 11 ,569 449 75 12,093 35 35 35 35 11,534 449 75 12,058 281,845 4,748 315,190 28,597 Fund balances - beginning of year Fund balances - end of year $ 293,379 $ 29,046 $ 4,823 $ 327,248 See independent auditor's report on the financial statements. 67 CITY OF SALINA, KANSAS SCHEDULE OF REVENLIES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) BUSINESS IMPROVEMENT DISTRICT FUND For the Year Ended December 31, 2004 Interest income General interest Variance with Final Budget BudQeted Amounts Positive Actual Oriainal Final rNeq ative 1 $ 87,343 $ 82,000 $ 88,000 $ [657] 100 68 32 87,443 82,000 88,068 [625] Revenues Charges for services Community and Economic Development Total revenues Expenditures Community Development Business Improvement District 87,438 82,000 88,068 630 Total expend itu res 87,438 82,000 88,068 630 Excess [deficiency] of revenues over [under] expenditures 5 5 Unreserved fund balance, January 1 8 8 Unreserved fund balance, December 31 13 $ - $ - $ 13 Reconciliation to GAAP Accounts receivable Interest receivable 26,570 22 GAAP Fund Balance, December 31 $ 26,605 See independent auditor's report on the financial statements. 68 CITY OF SALINA, KANSAS SCHEDULE OF REVENLIES, EXPENDITLIRES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) NEIGHBORHOOD PARK FLIND For the Year Ended December 31, 2004 Interest income General interest Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel $ 18,400 $ 20,000 $ 20,000 $ [1,600] 2,173 2,000 2,000 173 20,573 22,000 22,000 [1,427] Revenues Charges for services Public works Total revenues Expenditures Cash Reserve 153,810 153,810 153,810 Total expenditures 153,810 153,810 153,810 Excess [deficiency] of revenues over [under] expenditures 20,573 [131,810] [131,810] 152,383 Unreserved fund balance, January 1 132,312 131,810 131,810 502 Unreserved fund balance, December 31 152,885 $ - $ - $ 152,885 Reconciliation to GAAP I nterest receivable 891 GAAP Fund Balance, December 31 $ 153,776 See independent auditor's report on the financial statements. 69 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITLIRES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL PARKS AND RECREATION FLIND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriqinal Final rNeaativel Revenues Operating grants, restricted Culture and recreation $ 134,088 $ 131,424 $ 131,424 $ 2,664 Interest income General interest 1,330 2,000 2,000 [670]. Total revenues 135,418 133,424 133,424 1,994 Expenditures Public works Contingency 8,604 50,000 [8,604] Capital Outlay Capital outlay 119,853 80,000 180,000 60,147 Cash Reserve 78,444 28,444 28,444 Total expenditures 128,457 208,444 208,444 79,987 Excess [deficiency] of revenues over [under] expenditures 6,961 [75,020J [75,020] 81,981 Other financing sources [uses] Transfer [out] [50,0001 [50,000] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [43,039] [75,020] [75,020] 31,981 Unreserved fund balance, January 1 100,770 75,021 75,021 25,749 Unreserved fund balance, December 31 57,731 $ 1 $ 1 $ 57,730 Reconciliation to GAAP Current year encumbrances 18,188 Interest receivable 494 GAAP Fund Balance, December 31 $ 76,413 See independent auditor's report on the financial statements. 70 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDrrURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) SPECIAL ALCOHOL FL~ND For the Year Ended December 31, 2004 I nterest income General interest Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaative 1 $ 134,088 $ 131,424 $ 131,424 $ 2,664 91 91 134,179 131,424 131,424 2,755 Revenues Operating grants, restricted Health and sanitation Total revenues Expenditures Public Health and Sanitation Special alcohol 131,423 131,424 131,424 Total expenditures 131,423 131,424 131,424 1 Excess [deficiency] of revenues over [under] expenditures 2,756 2,756 Unreserved fund balance, January 1 12,629 2,346 2,346 10,283 Unreserved fund balance, December 31 15,385 $ 2,346 $ 2,346 $ 13,039 Reconciliation to GAAP Interest receivable 90 GAAP Fund Balance, December 31 $ 15,475 See independent auditor's report on the financial statements. 71 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) FAIR HOUSING FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel Revenues Operating grants, restricted Health and sanitation $ 319 $ - $ - $ 319 Interest income General interest 3,414 1,000 1,000 2,414 Interfund Services Provided Community and Economic Development 153,616 65,000 65,000 88,616 Total revenues 157,349 66,000 66,000 91,349 Expenditures Community Development Human relations 130,865 130,000 130,000 [865} Cash Reserve 95,031 95,031 95,031 Total expenditures 130,865 225,031 225,031 94,166 Excess [deficiency] of revenues over [under} expenditures 26,484 [159,0311 [159,031 ] 185,515 Other financing sources [uses] Transfer in 34,293 34,293 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] 60,777 [159,03~n [159,03~r] 219,808 Unreserved fund balance, January 1 141,891 159,031 159,031 [17,140] Unreserved fund balance, December 31 202,668 $ - $ - $ 202,668 Reconciliation to GAAP I nterest receivable 1,193 GAAP Fund Balance, December 31 $ 203,861 See independent auditor's report on the financial statements. 72 CITY OF SALINA, KANSAS SCHEDL~LE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) DEBT SERVICE FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Orioinal Final rNeaative 1 Revenues Taxes Real estate taxes $ 1 ,277,239 $ 1 ,275,734 $ 1,275,734 $ 1,505 Delinquent taxes 51,560 40,000 40,000 11 ,560 Motor vehicle taxes 241,846 216,922 216,922 24,924 Total taxes 1,570,645 1,532,656 1,532,656 37,989 Charges for services Special assessments 1,340,258 1,306,661 1 ,306,661 33,597 Interest income General interest 34,400 20,000 20,000 14,400 Miscellaneous revenues General miscellaneous revenues 94,169 94,169 Other financing sources General sources 1,323 1,323 Total revenues 3,040,795 2,859,317 2,859,317 181,478 Expenditures Debt Service Principal 2,511,317 2,418,983 2,435,227 [76,090] Interest and other charges 796,802 1,079,099 807,332 10,530 Cash Reserve 506,790 762,313 762,313 Total expenditures 3,308,119 4,004,872 4,004,872 696,753 Excess [deficiency] of revenues over [under] expenditures [267,324] [1,145,555] [1 ,145,555} 878,231 Other financing sources [uses] Issuance of bonds 5,388,947 5.388,947 Payment to refunded bond escrow agent [5,388,947] [5,388,947] Transfer in 811 811 Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] [266,513] [1,145,555] [1,145.555] 879,042 Unreserved fund balance, January 1 1,575,834 1.145,555 1,145,555 430,279 Unreserved fund balance, December 31 1,309,321 $ - $ - $ 1,309,321 Reconciliation to GAAP Interest Receivable 7,741 GAAP Fund Balance, December 31 $ 1,317,062 See independent auditor's report on the financial statements. 73 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) SOLID WASTE DISPOSAL FUND For the Year Ended December 31,2004 Actual Budaeted Amounts Oriainal Final Variance with Final Budget Positive rNeQativel Revenues Charges for services Health and sanitation $ 1,990,213 $ 2,330,000 $ 1,940,000 $ 50,213 Interest income General interest 38,578 20,000 20,000 18,578 I nterfund services provided Health and sanitation 402,423 410,000 [7,577] Miscellaneous revenues General miscellaneous revenues 20.000 2,431,214 2,370,000 2,370,000 61,214 Total revenues Expenditures Public Health and Sanitation Solid waste Hazardous waste disposal Total public health and sanitation 1,453,724 1,657,971 1,654,471 200,747 80,681 87,934 87,934 7,253 1,534,405 1,745,905 1,742,405 208,000 75,198 72,473 75,198 4,646 7,429 3,714 [932] 79,844 79,902 78,912 [932] 477,476 51,500 55,000 [422,476] 2,317,355 2,318,345 2,318,345 2,091,725 4,194,662 4, 194,662 2,102,937 Debt Service Principal Interest Total debt service Capital Outlay Capital outlay Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures 339,489 [1,824,662] [1 ,824,662] 2,164,151 Unreserved fund balances, January 1 1,994,736 1,824,662 1 ,824,662 170,074 Unreserved fund balances, December 31 $ 2,334,225 $ - $ - $ 2,334,225 See independent auditor's report on the financial statements. 74 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, 2004 Interest income General interest I nterfund services provided General services Water and wastewater Total interfund services Variance with Final Budget Budceted Amounts Positive Actual Oriainal Final rNeaativel $ 11,973,292 $ 12,298,000 $ 12,298,000 $ [324,708} 114,090 100,000 100,000 14,090 25,094 25,000 25,000 94 22,073 22,073 47,167 25,000 25,000 22, 167 162 162 266,234 270,000 270,000 [3,766] 266,396 270,000 270,000 [3,604] 12,400,945 12,693,000 12,693,000 [292,055] Revenues Charges for services Water and wastewater Miscellaneous revenues General miscellaneous revenues Water and wastewater Total miscellaneous revenues Total revenues Expenditures Water and Wastewater Water Sewer Total water and wastewater 6,492,542 2,447,497 8,940,039 6,924,272 2,603,522 9,527,794 6,950,529 2,603,522 9,554,051 457,987 156,025 614,012 Capital Outlay Capital outlay 608,636 1,136,800 1,130,800 522,164 Debt Service Interest and other 25 1,000 1,000 975 4,402,993 4,382,736 4,382,736 9,548,700 15,068,587 15.068,587 5,519,887 2,852,245 [2,375,587] [2,375,587] 5,227,832 39,084 39,084 [3,258,396] [2,416,460] [2,416,460] [841 ,936J Cash Reserve Total expenditures Excess [deficiency] of revenues over [under] expenditures Other financing sources [uses] Transfers in Transfers [out] Excess [deficiency] of revenues and other sources over [under] expenditures and other [uses] Unreserved fund balances, January 1 Prior year cancelled encumbrances Unreserved fund balances, December 31 [367,067] [4,792,047] [4,792,047] 4,424,980 6,454,723 4,792,047 4,792,047 1 ,662,676 1,470 1,470 $ 6,089,126 $ - $ - $ 6,089,126 See independent auditor's report on the financial statements. 75 Revenues Charges for services Health and sanitation Interest income General interest Total revenues 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 31,2004 Actual Budaeted Amounts Oriainal Final $ 1 ,796,202 $ 1,800,000 $ 1,800,000 $ 9,458 7,000 7,000 1,805,660 1,807,000 1,807,000 Expenditures Public Health and Sanitation Sanitation Capital Outlay Capital outlay Cash Reserve Total expenditures 1 ,694,657 1,670,578 1,664,578 141,149 137,800 388,433 151,425 380,808 1,835,806 2,196,811 2,196,811 Excess [deficiency] of revenues over [under} expenditures [30,146} [389,811 ] [389,81 ~I] 494,614 389,811 389,811 Unreserved fund balance, January 1 $ 464,468 $ - $ Unreserved fund balances, December 31 See independent auditor's report on the financial statements. 76 Variance with Final Budget Positive rNeaativel [3,798] 2,458 [1,340] [30,079] 10,276 380,808 361,005 359,665 104,803 - $ 464,468 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS - BUDGET AND ACTUAL (NON - GAAP BASIS) GOLF COURSE DIVISION FUND For the Year Ended December 31, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel Revenues Taxes General sales tax $ 26,317 $ 26,000 $ 26,000 $ 317 Charges for services Culture and recreation 764,609 807,400 807,400 [42,791 ] Operating grants, unrestricted General grants 10,000 10,000 [10,000] I nterest income General interest 2,463 4,000 4,000 [1,537] Miscellaneous revenues General miscellaneous revenues 914 914 Culture and recreation 21,751 6,500 6,500 15,251 Total miscellaneous revenues 22,665 6,500 6,500 16,165 Total revenues 816,054 853,900 853,900 [37,846] Expenditures Culture and Recreation Golf course 749,863 779,254 750,454 591 Debt Service Principal 15,925 21,525 15,000 [925] Interest 2,113 3,224 2,948 835 Total debt service 18,038 24,749 17,948 [90] Capital Outlay Capital outlay 21,708 79,000 22,000 292 Cash reserve 137,702 230,303 230,303 Total expenditures 789,609 1,020,705 1,020,705 231,096 Excess [deficiency] of revenues over [under] expenditures 26,445 [166,805] [166,805] 193,250 Unreserved fund balances, January 1 112,285 166,804 166,804 [54,519] Unreserved fund balances, December 31 $ 138,730 $ [1] $ [1] $ 138,731 See independent auditor's report on the financial statements. 77 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) RISK MANAGEMENT FUND For the Year Ended December 31,2004 Interfund services provided General services Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel $ 851 $ 2,000 $ 2,000 $ [1,149] 235,622 282,989 282,989 [47,367] 56,083 40,000 40,000 16,083 292,556 324,989 324,989 [32,433J Revenues Interest income General interest Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Other Risk management 439,551 376,101 376,101 [63,450] Capital Outlay Capital outlay Cash reserve 1,500 50,000 1,500 50,000 1,234 50,000 266 Total expenditures 439,817 427.601 427,601 [12,216] Excess [deficiency] of revenues over [under] expenditures [147,261] [102,612] [102,612] [44,649] Unreserved fund balance, January 1 148,512 102,612 102,612 45,900 Unreserved fund balance, December 31 $ 1,251 $ - $ - $ 1,251 See independent auditor's report on the financial statements. 78 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) WORKERS' COMPENSA-rION FUND For the Year Ended December 31, 2004 Interfund services provided General services Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel $ 9,824 $ 40,000 $ 4G,000 $ [30, 176] 192,000 182,350 182,350 9,650 201,824 222,350 222,350 [20,526} Revenues Interest income General interest Total revenues Expenditures Other Worker's compensation 386,307 250,000 255,000 [131,307] Capital Outlay Capital outlay Cash Reserve 850 773,471 768,471 [850] 768,471 Total expenditures 387,157 1 ,023,471 1,023,471 636,314 Excess [deficiency} of revenues over [under] expenditures [185,333J [801 , 121 ] [801,121] 615,788 Unreserved fund balance, January 1 691,484 801,121 801 , 121 [109,637] Unreserved fund balance, December 31 $ 506,151 $ - $ - $ 506,151 See independent auditor's report on the financial statements. 79 Revenues Charges for services General charges Interest income General interest CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS) HEAL-rH INSURANCE FUND For the Year Ended December 31, 2004 Actual Budaeted Amounts OriQinal Final Variance with Final Budget Positive rNeaativel $ 4,172,668 $ 4,407,588 $ 4,407,588 $ [234,920] 8,868 5,000 5,000 Interfund Services Provided General services 662,671 4451212 4451212 Miscellaneous revenues General miscellaneous revenues Total revenues Expenditures Other Health insurance Cash Reserve Total expenditures 27,883 10,000 10,000 4,872,090 4,867,800 4,867,800 4,420,847 4,687,500 620,064 4,687,500 620,064 4,420,847 5,307,564 5,307,564 Excess [deficiency] of revenues over [under] expenditures Unreserved fund balance, January 1 451,243 [439,764} [439,764} 239,248 439,764 439,764 $ 690,491 $ - $ Unreserved fund balance, December 31 See independent auditor's report on the financial statements. 80 3,868 217,459 17,883 4,290 266.653 620,064 886,717 891,007 [200,516] - $ 690,491 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, 2004 Variance with Final Budget Budaeted Amounts Positive Actual Oriainal Final rNeaativel Revenues Charges for Services General Charges $ 158,889 $ 169,000 $ 169,000 $ [10,111] Interest income General interest 1 ,900 1,500 1,500 400 Interfund services provided General services 807,695 885,000 885,000 [77,305J Miscellaneous revenues General miscellaneous revenues 6,553 2,998 2,998 3,555 Total revenues 9751037 1,058,498 1,058,498 [83,461 ] Expenditures Other Central garage 1,070,606 1,079,487 1, 148,240 77,634 Capital Outlay Capital outlay 100 250 250 150 Cash Reserve 219,831 151,078 151,078 Total expenditures 1,070,706 1,2991568 1,299,568 228,862 Excess [deficiency] of revenues over [under] expenditures [951669] [241 ,070} [241,070] 145,401 Other financing sources [uses] Transfers in 40,000 40,000 Excess [deficiency] of revenues and other financing sources over [under] expenditures and other financing [uses] [55,669] [241 ,070] [241 ,070] 185,401 Unreserved fund balance, January 1 158,031 241,071 241,071 [83,040] Unreserved fund balance, December 31 $ 102,362 $ $ $ 102,361 See independent auditor's report on the financial statements. 81 CITY OF SALINA, KANSAS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (NON - GAAP BASIS} COMPUTER TECHNOLOGY FUND For the Year Ended December 31, 2004 Variance with Final Budget BudQeted Amounts Positive Actual Oriainal Final rNeaative 1 Revenues Charges for services General charges $ 116,368 $ 106,572 $ 106,572 $ 9,796 Interest income General interest 8,013 4,000 4,000 4,013 Interfund services provided General services 556,473 556,473 556,473 Miscellaneous revenues General miscellaneous revenues 20,320 2,250 2,250 18,070 Total revenues 701,174 669,295 669,295 31,879 Expenditures Other I nformation services 679,862 721,890 725,239 45,377 Capital Outlay Capital outlay 188,889 302,500 302,500 113,611 Cash Reserve 259,069 255,720 255,720 Total expenditures 868,751 1 ,283,459 1,283,459 414,708 Excess [deficiency] of revenues over [under] expenditures [167,577] [614,164] [614,164J 446,587 Other financing sources [uses] Transfers in 4,249 41249 Excess [deficiency] of revenues and other financing sources over [under] expenditures and other financing [uses] [163,328] [614,164] [614,164] 450,836 Unreserved fund balance, January 1 765,501 614,164 614,164 151,337 Unreserved fund balance, December 31 $ 602,173 $ - $ - $ 602, 173 See independent auditor's report on the financial statements. 82 This page intentionally left blank. CITY OF SALINA, KANSAS IN-rERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one agency to other departments or agencies of the government and to other governmental units on a cost reimbursement basis. Risk management fund - To account for the accumulation and allocation of costs associated with risk management activities and the purchase of various forms of insurance. Workers' compensation reserve fund - To account for the costs of providing a partially self-insured workers' compensation plan and for accumulating the necessary reserve amounts. Health insurance fund - To account for the costs of providing a partially self-insured health insurance and for accumulating the necessary reserve amounts. Central garage fund - To account for the accumulation and allocation for costs associated with the City's centralized vehicle repair shop. Information services fund - To account for the accumulation and allocation of costs associated with electronic data processing. 83 CITY OF SALINA, KANSAS STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2004 Total Workers' Internal Risk Compensation Health Central Information Service ASSETS Management Reserve Insurance Garage Systems Funds Current assets: Cash and investments $ 8,795 $ 635,137 $ 690,524 $ 137,608 $659,615 $2,131,679 Interest receivable 51 3,702 4,025 802 3,845 12,425 Inventory and prepaid supplies 68,670 68,670 Total current assets 8,846 638,839 694,549 207,080 663,460 2,212,774 Fixed assets: Fixed assets 128,678 440,045 568,723 Less: accumulated depreciation 70,073 403,603 473,676 Total fixed assets 58,605 36,442 95,047 Total assets $ 8,846 $ 638,839 $ 694,549 $ 265,685 $699,902 $2,307,821 Li a bi lities: Current liabilities (payable from current assets): Accounts payable $ 7.544 $ - $ 33 $ 35,245 $ 13,440 $ 56,262 Current portion of compensated absences payable 19,764 32,629 52,393 Current portion of accrued claims payable 261,335 301,932 563,267 Total current liabilities (payable from current assets) 7,544 261,335 301,965 55,009 46,069 671,922 Noncurrent liabilities: Accrued claims payable 75,874 75,874 Total noncurrent liabilities 75,874 75,874 Total liabilities $ 7,544 $ 337,209 $ 301,965 $ 55,009 $ 46,069 $ 747,796 Net Assets Invested in capital assets, net of related debt $ - $ - $ - $ 58,605 $ 36,442 $ 95,047 Unrestricted 1,302 301,630 392,584 152,071 617,391 1,464,978 Total net assets $ 1,302 $ 301,630 $ 392,584 $ 210,676 $ 653,833 $1,560,025 See independent auditor's report on the financial statements. 84 CITY OF SALINA, KANSAS INTERNAL SERVICE FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2004 Workers' Total Risk Compensation Health Central Information Internal Management Reserve Insurance Garage Systems Service Funds Operating revenues Charges for services $ 235,622 $ 192,000 $4,835,339 $ 966,584 $ 672,841 $ 6,902,386 Reimbursements 17,466 6,505 23,971 Miscellaneous 56,083 10.418 48 20,320 86,869 Total operating revenues 291,705 192,000 4.863.223 973.137 693,161 7,013.226 Operating expenses General government 439.719 476,908 4,348,434 1,069,483 827,130 7,161,674 Depreciation 9,443 81,444 90,887 Total operating expenses 439,719 476,908 4,348,434 1.078,926 908,574 7,252,561 Operating income [1oss] [148,0141 [284,908] 514.789 [105,789] [215,413} [239,335} Other operating revenues [expenses} Investment income 9.102 11,603 7,408 28,113 Transfers in 40.000 4,249 44,249 Total other operating revenues [expenses} 9,102 11,603 40,000 11,657 72,362 Change in net assets [148,014] [275,806] 526,392 [65,789] [203,756] [166,973] Net assets, January 1 149,316 577,436 [133,808] 276.465 858,550 1,727,959 Prior period adjustment [961 ] [961 ] Net assets. January 1, restatement 149,316 577,436 [133.808} 276,465 857,589 1,726,998 Net assets, December 31 $ 1,302 $ 301,630 $ 392,584 $ 210,676 $ 653.833 $ 1,560,025 See independent auditor's report on the financial statements. 85 CITY OF SALINA, KANSAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2004 Total Workers' Internal Risk Compensation Health Central Information Service Management Reserve Insurance Garage Services Funds Cash flows from operating activities Cash received from customers and users $ 235,622 $ 281,750 $4,762,925 $966,584 $ 672,841 $6,919,722 Cash paid to suppliers of goods or services [432,762] [476,908] [4,348,476] [859,090] [541,825] [6,659,061 ] Cash paid to em ployees [194,792] [323,993] [518,785] Other operating receipts 56,083 27,884 6,553 20,320 110,840 Net cash provided by [used in} operating activities [141,057] [195,158] 442,333 [80,745] [172,657] [147,2841 Cash flows from capital and related financing activities Purchase of fixed assets [5,307) [5,307] Net cash provided by [used in] capital and related financing activities [5,307) [5,307J Cash flows from investing activities Interest received 752 9,824 8,868 159 8,013 27,616 Cash flows from noncapital financing activities Transfers in 40,000 4,249 44,249 Net increase [decrease] in cash and cash equivalents [140,305] [185,334] 451,201 [40,586] [165,702} [80,726] Cash and cash equivalents, January 1 149,100 820,471 239,323 178,194 825,317 2,212,405 Cash and cash equivalents, December 31 $ 8,795 $ 635,137 $ 690,524 $137,608 $ 659,615 $2,131,679 See independent auditor's report on the financial statements. 86 CITY OF SALINA, KANSAS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31,2004 Risk Management Workers' Compensation Reserve Health Insurance Central Garage Information Services Total Internal Service Funds Reconciliation of operating [loss] income to net cash provided by [used in] operating activities Operating income [loss J $ [148,014] $ [284,908] $514,789 $(105,789] $[215,413] $[239,335] Adjustments to reconcile operating income [loss] to net cash provided by [used in] operating activities Depreciation expense [Increase] decrease in inventory Increase [decrease] in accounts payable Increase [decrease] in accrued compensated absences Increase [decrease] in claims payable Net cash provided by [used in] operating activities 9,443 81,444 90,887 [ 4,203] [ 4,203] 6,957 [42] 15,083 [46,378] [24,380] 4,721 7,690 12,411 89,750 [72,414] 17,336 $ [141,057] $ [195,158] $442,333 $ [80,745) $ [172,657] $ [147,284} See independent auditor's report on the financial statements. 87 CITY OF SALINA, KANSAS AGENCY FUNDS Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments and/or other funds. Special assessment escrow agency fund - To account for property owners' prepayment on outstanding special assessments. Fire insurance proceeds agency fund - To account for insurance proceeds received for severely damaged buildings The insurance proceeds, plus interest, are returned to the property owners when the buildings are repaired or demolished. PEGS access agency fund - To account for revenues collected on behalf of the community access television system for public, educational and governmental programming. Payroll clearing agency fund - To account for interfund payroll receivables and payables for all City funds. Court bond and restitution agency fund - To account for bonds and restitution remitted to the court and awaiting court orders for distribution. Police investigation account agency fund - To account for monies held by the police department for use in investigations. Fire cam agency fund - To account for donations received and used for fire equipment. Section 125 plan agency fund - To account for monies held for the Section 125 plan. 88 CITY OF SALINA, KANSAS COMBINING BALANCE SHEET AGENCY FUNDS December 31,2004 Special Fire Court Police Section Assessment Insurance PEGS Payroll Bond and Investigation 125 Escrow Proceeds Access Clearina Restitution Account Plan Totals ASSETS: Cash and investments $ 285,923 $ 5,916 $ 1,915 $ 306 $ 54,375 $ 2,252 $20,347 $ 371,034 I nterest receivable 1,667 34 11 1,712 Total assets $ 287,590 $ 5,950 $ 1 ,926 $ 306 $ 54,375 $ 2,252 $ 20,347 $ 372,746 LIABILITIES: Accounts payable $ 287,590 $ 5,950 $ 1,926 $ 306 $ 54,375 $ 2,252 $ 20,347 $ 372,746 Total liabilities $ 287,590 $ 5,950 $ 1,926 $ 306 $ 54,375 $ 2,252 $ 20,347 $ 372,746 See independent auditor's report on the financial statements. 89 CITY OF SALINA, KANSAS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For the Year Ended December 31, 2004 Balance Balance December 31, December 31, 2003 Additions Deductions 2004 Cash and investments Special Assessment Escrow $ 114,220 $ 218,645 $ 46,942 $ 285,923 Fire Insurance Proceeds 1,723 4,193 5,916 PEGS Access 1,686 185,736 185,507 1,915 Payroll -Clearing 64,432 64,126 306 Court Bond and Restitution 36,793 17,582 54,375 Police Investigation Account 2,593 341 2,252 Fire Cam Fund 67 67 Section 125 Plan Fund 293,999 273,652 20,347 Interest receivable Special Assessment Escrow 616 1,051 1,667 Fire Insurance Proceeds 9 25 34 PEGS Access 9 2 11 Total Assets $ 222,148 $ 721,233 $ 570,635 $ 372,746 Accounts payable $ 222,148 $ 721,233 $ 570,635 $ 372,746 T otalliabilities $ 222,148 $ 721,233 $ 570,635 $ 372,746 See independent auditor's report on the financial statements. 90 STATISTICAL SECTION Q.) :c co r- en c: .Q 13 c: ::::J l.L >-. ..0 en co ~ "~ .a ro:.c en ~ o ~ ~w Uc Q.) 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Q.) co co Q:j c:: Q)~ ~ .~ rn ~ o ~?f!. .~ ~ :c ::::l a.. c .Q ro~ ~N 0""'" ::::l Q) Oe::: -r- 0) City of Salina General Government Revenues by Source (1) Table 2 Last Ten Fiscal Years Fiscal Fees and Special Year Taxes I nteraovemmental Charaes Assesments Other Revenues Total 1994 $ 16,153,904 $ 3,305,815 $ 3,089,651 $ 868,202 $ 2,402,460 $ 25,820,032 1995 17,138,776 3,170,244 3,585,877 1,012,596 2,708,038 27,615,531 1996 17,557,494 3,342,888 3,160,771 1, 191 ,772 2,859,223 28,112,148 1997 18,416,347 3,197,436 3,197,039 1,127,400 2,153,460 28,091,682 1998 19,364,939 3,208,793 5,057,608 1,050,242 1,951,707 30,633,289 1998 (2) 19,364,939 4,050,492 2,137,769 974,648 3,899,387 30,427,235 1999 21,314,633 4,383,281 2,068,329 1,086,557 4,257,563 33,110,363 2000 22,459,765 4,114,704 2,104,897 1,228,683 4,622,510 34,530,559 2001 22,282,630 3,916,482 2,107,409 1,320,324 5,001,469 34,628,314 2002 23,388,799 3,601,543 2,127,904 1,288,961 4,294,010 34,701,217 2003 (3) 24,174,138 2,731,239 6,145,703 1,315,816 974,664 35,341,560 2004 25,152,288 3,178,648 6,382,709 1,340,256 845,348 36,899,249 (1) Includes Only General, Special Revenue, and Debt Service Funds. Capital Projects and Fiduciary funds are excluded. (2) Restated to 1999 Classification. Difference in total is due to restatement of interfund transfers (3) Reflects reclassifications required as a result of reporting model changes. For example Court Fines and Licenses and Permits shift from "Other Revenue" to "Fees and Charges" 2004 Revenue By Source Special Assesments 40/0 Other Revenues 20/0 Fees and Charges 170/0 Intergovernmental g% 92 City of Salina General Government Tax Revenues by Source (1) Table 3 LastTen Fiscal Years Fiscal Transient Year Prooerty Taxes Sales Tax Franchise Tax Guest Tax Total 1995 6,502,855 8,302,428 1,739,323 594,170 17,138,776 1996 6,690,485 8,446,809 1,836,694 583,506 17,557,494 1997 6,945,943 8,948,067 1,929,622 592,715 18,416,347 1998 6,995,943 9,687,988 1,950,520 730,488 19,364,939 1999 7,656,282 10,991,973 1,920,067 746,311 21,314,633 2000 7,576,973 12,032,797 2,141,736 708,259 22,459,765 2001 7,079,205 12,010,742 2,463,599 729,084 22,282,630 2002 8,085,665 12,257,819 2,275,737 769,578 23,388,799 2003 8,802,558 12,026,714 2,524,906 819,960 24,174,138 2004 8,961,728 12,764,788 2,600,315 825,457 25,152,288 Tax Revenues by Source 14,000,000 12,000,000 10,000,000 8)000,000 6,000,000 4,000,000 2,000,000 Sales Tax Property Taxes Franchise Tax Transient Guest Tax Year 2003 2004 (1) Includes General, special revenue and Debt Service Funds (2) Property Taxes include Real Estate, Motor Vehicle and Payments in Lieu of Taxes 93 City of Salina Property Tax Levies and Collections Table 4 Last 10 Fiscal Years Percent of Delinquent Ratio of Total Fiscal Current Tax Current Taxes Tax Total Tax Tax Collections Year Total Tax Levy Collections Collected Collections Co lIectio ns to Tax Levy 1995 5,230,834 5,192,453 99.30/0 97,615 5,290,068 101.10/0 1996 5,534,222 5,411,474 97.80/0 107,250 5,518,724 99.70/0 1997 5,772,414 5,689,316 98.60/0 133,171 5,822,487 100.90/0 1998 6,081,748 5,976,840 98.30/0 114,028 6,090,868 1 00.1 0/0 1999 6,416,832 6,269,408 97.70/0 140,976 6,410,384 99.90/0 2000 6,694,612 6,490,693 97.00/0 105,801 6,596,494 98.50/0 2001 7,020,875 6,831,220 97.30/0 147,819 6,979,039 99.40/0 2002 7,289,916 7,108,013 97.50/0 174,050 7,282,063 99.90/0 2003 7,640,249 7,417,427 97.10/0 176,906 7,594,333 99.40/0 2004 7,890,387 7,677,415 97.30/0 227,578 7,904,993 100.20/0 Percent of Property Taxes Collected 102.00/0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -" - - - - - - - - - - - - - - - - - . - - - - - - - - - - .. - - - - - - - - - - - - - - - - - - - - - - .. - - . - - - - - - - - - - - - - - - - - " - - - - - - - - - - - " - - - - 101.00/0 - - - - - - - .. .. .. .. .. .. .. .. .. .. - - - - - - - - - "0 - -.. - - - * * * - - - - - - .. - - - - - - .. " - . - - . - - - - - - - - - .. .. .. ~ * ~ ~ ~ - - * - - - - - - - .. - .. .. .. - .. ~ - - - - - - - - - - - .. .." .. .. .. - ~ * ~ - - - . - - .. - - - - - .. .. .. - " ,/ ......... " ......... " ,/ .........0__ ,0 1 00.00/0 __uun___,-~_;.._ /!'- - - - - u - -- -- - *- u_ u uu ---- --____ ----.-I"'i - - - u - -.. -.. ~ -.. u_ - u_ _nn_ - ---- _n - _n__~ -- u u _n__ un_u_ -7- -- Q "'\. .,.,.. ....... / " <r' -' ....... ""<> / " / 99.00/0 - - - _.. - - - .. - - - - - - - - - - - - .. - - - . - - - - - .. - - - - - - - - - - - . * - - .. .. - - - - - - - - - - - - .. - - -'" - - - - - .. - - - - .;!'- - .. - .. * - - - - - - - - - - - - . - - .. - * - - - - - - - - - - - - - .. - .. - - - - - - - - - V/ 98.00/0 97.00/0 - - - - - - - - - - - .. - - - - - - - - - - .. - .. .. - - - ~ - - - - - - - - - - - .. - - .. - - - - - - - - - - .. - - .. - .. .. - .. - .. - - - - 96.00/0 - - - .. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - .. - - .. ~ - - - - - - - - - - - - .. - .. - * - - - - - - - - - - - - - .. - .. .. -.. - .. - - - - - - - - - - .. - - - .. - - - - - - - - - - - - - - - .. .. .. - - .. - - - - - - - - .. .. .. - - . - - - - 95.00/0 .. - - . - - .. - - .. - - - - - - - - .. .. ~ .. - .. - - - - - - - - - - - - ~ .. .. .. - - - - - ~ - - - - - - - - .. - ~ .. - - ~ - - - - - - - - - .. - .. - - - ~ - - .. - .. - - - ~ - - - - . * ~ - - ~ ~ - - - ~ - - ~ .. .. .. - - .. ~ - * ~ - - - - - - - - .. .. - * .. - * - .. 94.00/0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 . Percent of Current Taxes Collected - -<> - Ratio of Total Tax Collections to Tax Levy I 94 L.O "'0 "'0 L.O ("I") V L.O 0 0 ........ eo L.O c; Q.) Q.) Q.) c.o c.o ("I") eo ........ eo ::0 en 10 Q.) cri c.ri cri cri cri ...0 ...0 ...0 ...0 cO ctS en E :::J ~ I- Q.) m en ~ en > <( w Q) '0 .9 ~ .Q Q.) Co 10 :::J :a: rn 0::: > Q) L.O L.O L.O en m en ("I") L.O ("I") N ~ 0 c.o N c.o 0 L.O ........ en eo v Co ........ ("I") V L.O_ c.o V CO c.o m :a: N- ~ ........- V- ~ N- MO v- V- a m eo v 0 c.o 0 co eo co L.O ........- m N co eo L.O m N v_ oo:::t' 0 Q.) N- ~ c.o- o- M c.o- N c.r5 00- ~ 0 :::J 0 I- 16 00 L.O ~ L.O L.O m eo m c.o ("I") N v_ L.O_ ........ 00_ m 0 ~N ("I") ~ "'0 > N- NN- N N- Q.) 10 M E 0 0 ~ N W "'0 eo ~ ("I") v ("I") c.o v v eo ("I") N c.o m c.o ~ eo ~ v v ~ 0 0 Q.) L.O 0 m N ........ ~ ........ v 0 ("I") 0 en M ~ m- eo- ........- c.r5 N- o ("1")- en - N en Q.) 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("I") Q") G E I- :::J en N- N- M N- v- v- -.::i" v- L.O- ........- Q") ~ Ui CO <( ~ ~ ~ ~ ~ ~ ~ w ctS > Q) --I 10 "'0 "'0 en (0 c Q) Q") ctS en ~ "'0 en Q) Q.) en L.O eo c.o ~ v CO M v ("I") CO en en CO v m ~ m CO L.O ("I") N en <( Q.) c.o v m eo 0 L.O V ~ L.O I,(') en CO >. - - m- -.::i" c.o- a) M ("1")- c.r5 0 tOO Q") en c Q.)mL.O ........ ("I") eo ("I") N m eo ~ ~ <( 0 a. eo_ L.O_ N L.O ........ V eo 0 ("I") en c.r5 ........- eo- N- I..C"i L.O- ...0- (u 0 V L.O ~ a: N N N N N ("I") ("l") ("I") ("l") ("I") a... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0- 0- 0 0 c:i c:i c:i 0 ci o~ c:i 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ("l") m ("I") N ........ L.O LO ("l") ("I") v o~ 0- 0 0 0 0 c;) c;) ci 0 c:i N ........ V 00 N L.O ~ V ~ eo 0 co (0 oo:::t' N 0 co (0 oo:::t' N 0 Q.) m eo eo L.O ........ ~ ........ v eo N oo:::t' M M M M M N N N N N 10 N- ........- 0 as ........- N ("1")- I..C"i c.r5 .....: Ui c.o m c.o eo 0 v ........ L.O LO v m ("I") v N ~ ("I") ~ v w c.o- ...0- c.o- ("1")- c.r5 v- .....: ........- N- m c.o ........ m N N V L.O c.o ........ eo Q.) ~ ~ ~ N N N N N N 0::: Co Q.) L.O c.o ........ eo m 0 N ("I") V >- m en m m m 0 C; 0 0 0 C6 m en m en m 0 0 0 0 0 u ~ ~ ~ N N N N N en u:::: City of Salina Principal Taxpayers 2004 Taxpayer Type of Business Western Resources Schwan's Sales Warmack, Salina Partnership Southwestern Bell Wal-Mart Stores, Inc. Salina Regional Health Center Kansas Gas Service Lowe's Home Center Dillon's Great Plains Manufacturing Utility Pizza Manufacturing Retail Shopping Mall Telephone Utility Discount Retail Stores Hospital and Medical Offices Utility Building Supply Center Supermarket Manufacturing Combined Valuation of the Ten Largest Taxpayers Percent of Total City Assessed Valuation (1) (1) Assessed value includes amount attributed to Motor Vehicles 96 2003 Assessed % of Total Valuation Valuation $ 7,687,247 7,120,122 5,912,488 5,086,092 3,978.931 3,788.081 3,016,460 2,218,361 2,202,265 2,163,465 35,486,265 2.050/0 1.900/0 1.580/0 1.360/0 1.060/0 1 .0 1 0/0 0.800/0 0.590/0 0.590/0 0.580/0 9.460/0 Table 6 r- Q.) ::c rn I- UJ e Q) E c: ID UJ ID ~ Co rnrn(9:e . ~ c::: co x .~ ~ en co a... UJ o~g-u: >. t "'C c: ~Q)~~ o 8-0 a:"C~ c: -I co <:5 ~ (5 ro (5 I- ~ ID ID .J:: .J:: 5 5 0 en Q) ::) 0'> co :m (5 ~ l- N Q.) u - .~ Q.) 1.(') 0'> 0 Q) ~ (""') en 0 15 ~ en Q.) ::) 0 0'> c: Q) :+:::: 0'> co co Q;= g~ >. 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N N N N N N N ca ~ 0> 1.(') N 1.(') 0 <0 1.(') co N ("l"') CD -..:t > 0 ~ -..:t 0 r- r- <0 N 0> ...- r- r--..: 0> r- N eo ("l"') ~ 0 0 cO N <ri Lri Lri ~ ~ ~ -..:t -..:t N N N N N N N N N -..:t N 0 ("l"') ("l"') -..:t co r- ~ <0 ...- 1.(') Lri ("l"') ~ co 0> <0 1.(') u:; 0> ~ 0 <0 -..:t N <0 0> 0 ~ Lri M Lri Lri Lri Lri M ...- 1.(') 1.(') N N r- N r- ...- ...- r- N co 0> <0 co C; 0 LO 0 ~ 0> co ("l"') 0 1.(') 1.(') 0 0 0 0 0 0 1.(') N co <0 ~ a> a> cri cO c:i ~ N 0 co <0 ~ N cO Lri c:> N N N ...- ~ N ~ ~ ~ SII!II\I U! J\Aal Co Q) co >- 1.(') <0 r- co 0> 0 N ("l"') -..:t <..) Q) 0> 0> 0> 0> 0> 0 c; 0 0 0 UJ 0> 0> 0> 0> 0> 0 0 0 0 0 u: 0'> ...- ~ ...- N N N N N "C =:J ~ ui c: .Q <:5 :.c UJ .C .~ Q.) UJ Q) € >. ..0 "C ~ Q) > 0 u ~ UJ rn 0 ~ 0 rn N ~ Q.) € ("i') rn .~ 0 .0 0 ~ C N .~ Q) Q; :0 ::t:: N =:J :.a 0 a... 0 rn ~ N .~ rn rn UJ en Q.) ~ Q.) rn 0 € c::: 0 "C X N rn c: I- ... co 0 ca ~ co r- 0 CD (5 0> 0 >- .~ I- .J:: N ..... "5 c:i CD <( 0 (j) -..:t C) t (j) -c 0 0 (j) e- en ::s ::) ~ OJ <! 0 rn co .~ r--.: (j) co 0 (j) en ("l"') ~ Q) 0 :5 en t'- ::) (j) u) <0- co (j) UJ 0 ~ c: ("l"') co 0 ~ <0 0 en ::) (j) Q.) >. (j) 10 ..0 ~ U5 "C Q) L() Q) Q; (j) -E > 0 (j) UJ U Q) ~ "C .~ =:J rn <3 .~ .~ co c en E 0 :::J (5 c: U 0 -Co :e 0 .J:: a... $5 co Q) E .J:: UJ I- <{ ~ ~ 1,600,000 1 AOO,OOO 1,200,000 1,000,000 8001000 600,000 400,000 200,000 Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 City of Salina Special Assesment Billings and Collections Last Ten Fiscal Years Special Assessment Billings 919,364 1,139,672 985,885 983,383 1 ,122,307 1,266,760 1,298,468 1,284,864 1,385,056 1,287,603 Special Assessment Collections 883,807 1,131,852 11048,863 974,648 1 ,086,557 1,285,105 1,320,324 1 ,288,961 1,315,816 1,3401256 Ratio of Total Special Assessments Collections to Total Assessments Levied 0.96 0.99 1.06 0.99 0.97 1.01 1.02 1.00 0.95 1.04 Special Assessment Billings and Collections 1995 1996 1997 1998 1999 2000 2001 I_ Special Assessment Billings D Special Assessment Collections I 2002 2003 2004 1. Includes prepayments and delinquent collections. 98 Table 8 City of Salina Computation of Legal Debt Margin December 31. 2004 Assessed Valuation (1) Legal Debt Margin: Debt Limit: 30%) of Assessed Valuation (2) Debt Applicable to Limitation: Total Bonded Debt Less: Revenue Bonds Fund Balance Designated for Debt Service Total Debt Applicable to Limitation Legal Debt Margin Table 9 $ 383,949,303 115.184,791 39,417,565 5.615,000 1,317,062 32,485.503 82,699,288 1. Assessed valuation for the purposes of calculating the debt limitation includes the valuation attributable to Motor Vehicles. 99 City of Salina Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Bonded Debt Per Capita Table 10 Fiscal Year Population (1 ) Assessed Value (2) Less Debt Gross Bonded Service Fund Debt (3) (4) Net Bonded Debt Ratio of Net Bonded Debt to Net Bonded Assessed Debt Per Value Capita 3.01 171.83 3.55 207.38 3.32 209.32 2.58 174.58 3.21 229.36 3.51 254.99 2.92 220.02 3.73 296.23 3.71 302.78 4.02 335.57 2002 2003 2004 1. 2000 population estimates are based on the 2000 federal census. Estimates for interim years are based on the 7/1 estimate issued by Kansas State Division of the Budget. 2. Includes motor vehicles 3. Outstanding Debt amounts reflect portion of the outstanding debt for which general taxes will be required. This excludes revenue bonds, GO obligations for which other revenue has been pledged, and obligations for which special assessments will be levied. 4. Amount available for repayment of General Obligation Bonds. 100 City of Salina Ratio of Annual Debt Service Expenditures Table 11 For General Obligation Bonded Debt (1) To Total General General Governmental Expenditures Last Ten Fiscal Years Total General Ratio of Debt Service to Govern mental General Governmental Fiscal Year Principal Interest (2) Total Debt Service Expenditiures (3) Expenditures (3) 1995 1,530,037 386,943 1,916,980 27,815,221 6.890/0 1996 1,229,378 305,808 1,535,186 28,176,844 5.45%) 1997 2,549,984 443,461 2,993,445 30,066,773 9.96 %) 1998 1,563,421 320,010 1,883,431 29, 167, 170 6.46% 1999 1,044,187 361,209 1,405,396 31,419,821 4.47%) 2000 1,277,861 447,025 1,724,886 34,833,093 4.95%) 2001 1,406,725 498,772 1,905,497 34,964,295 5.450/0 2002 1,365,330 564,355 1,929,685 35,348,137 5.460/0 2003 1,356,352 507,613 1,863,965 34,684,235 5.370/0 2004 1,493,878 624,372 1,967,863 35,966,882 5.470/0 Ratio of General Debt Service to General Government Expenditures 12.000/0 1 0.000/0 - . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - ~ - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - 8.000/0 6.000/0 4.000/0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * - - - * * - * - - * - ~ * ~ - - - - - - - - - - - - - .. - - - - - - - - - - - - - 2.000/0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 0.000/0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (1) Excludes special assessment debt with government commitment. (2) Excludes bond issuance and other costs. (3) Includes general, special revenue, and debt service funds. 101 Jurrisdiction Direct: City of Salina City of Salina Computation of Direct and Overlapping Bonded Debt General Obligation Bonds December 31, 2004 Net General Obligation Bonded Debt Outstanding Percentage Amount Applicable to City Applicable to the of Salina City of Salina $ 19)493,004 1 000/0 $ 19,493,004 Overlapping: Salina Airport Authority Saline County USD 305 Total Overlapping Debt 6,265,000 985,000 83,365,000 90,615,000 6,265,000 746,729 83,365,000 90,376,729 1 OooJb 76010 100010 110,108,004 109)869,733 Total Direct and Overlapping Debt Per Capita Direct and Overlapping debt $ 2,390 USD 305 750/0 Overlapping Debt, City of Salina 102 Table 12 Salina Airport Authority 60/0 Saline County 10/0 City of Salina Revenue Bond Coverage Water and Sewer Fund Last Ten Fiscal Years Table 13 Debt Service Requirements Net Kevenue Fiscal Ooeratina Ooeratina A vail able for Debt Year Revenues (1) Expenses(2) Service Principal Interest Total Coveraae 1995 9,993,020 5,879,776 4,113,244 880,000 1,588,797 2,468,797 1.67 1996 10,506,646 7,147,082 3,359,564 955,000 1,527,953 2,482,953 1.35 1997 10,442,409 6,714,541 3,727,868 1,015,000 1,483,493 2,498,493 1.49 1998 11,495,756 6,836,006 4,659,750 660,000 924,598 1,584,598 2.94 1999 10,753,843 7,399,094 3,354,749 700,000 876,793 1,576,793 2.13 2000 11,709,375 7,406,546 4,302,829 735,000 831,293 1,566,293 2.75 2001 11,886,131 8,461,367 3,424,764 835,000 688,515 1,523,515 2.25 2002 13,435,656 9,167,908 4,267,748 90,000 322,754 412,754 10.34 2003 12,216,580 9,145,564 3,071,016 575,000 234,018 809,018 3.80 2004 12,432,442 8,979,010 3,453,432 600,000 206,810 806,810 4.28 (1) Excludes interest income (2) Excludes Depreciation (3) Coverage for 2002 appears to be excessive because of refinancing activity and very limited principal and interest payments. 103 900 800 700 600 en :t:: E 500 CD D- '0 "- c>> 400 .D E :::::Ii Z 300 200 100 Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 City of Salina Property Value and Construction Last Ten Fiscal Years Total Property Value (Thousands) $ 1,314,831 1,482,502 1,551,794 1,716,987 1,850,244 1,953,642 2,096,803 2,182,563 2,296,901 2,368,265 2,131,485 Permits Issued 694 $ 759 832 725 757 772 771 679 776 678 656 Total Value of Permits Issued 38,667,261 34,156,955 55,369,816 41,528,712 42,830,543 41,431,443 99,462,211 74,250,045 62,416,514 46,213,139 41,551,281 Number and Value of Building Permits Issued Value of Commercial Perm its NA NA NA $ 24,604,611 22,162,767 11,225,834 75,141,289 53,696,870 47,809,924 19,407,078 22,145,481 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 I c::::J Pennits Issued --+- Total Value of Permits Issued I 104 Table 14 Single Family Home Permits NA 121,000,000 101,000,000 81,000,000 !! .~ CD 61,000,000 0- '0 CD :::::Ii Ii > 41,000,000 21.000,000 1,000,000 122 105 87 80 82 88 84 74 91 91 City of Salina Table 15 Demographic Analysis Last 10 Fiscal Years Per Capita Labor Force, Personal Income School Enrolllment Unemployment Saline County Fiscal Year Population (1) Saline County (2) Median Age (3) (4) Rate (5) (5) 1995 43,304 21,944 33.5 7,229 4.40/0 29,312 1996 44, 167 23,154 33.5 7,316 3.70/0 29,281 1997 44,51 0 24,423 33.5 7,307 3.6% 28,875 1998 44,176 25,470 33.5 7,257 3.5%) 29,262 1999 44,022 25,856 33.5 7,347 3.6%) 30,310 2000 45,679 27,780 36.1 7,418 2.80/0 30,740 2001 45,629 26,879 36.1 7,315 3.50/0 29,821 2002 45,729 26,839 36.1 7,273 3.6%) 30,569 2003 45,969 27,579 36.1 7,188 4.00/0 30,804 2004 45,969 NA 36.1 7,107 4.80/0 30,800 50,000 Q)45,OOO CJ ~ o LL ~ .840,000 ca ..J -... c ~35,OOO .!!! ::::s c. o 0.30,000 25,000 Population, labor Force, and School Enrollment 8,000 ~ . . . . ------ . . 7,500 - ~... .... c -. - .- ... -.. Q) - . .. - .. ...... E . - ...- '0 ...~ ... ~ .... c w 7,000 6,500 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 . Population (1) -----6-- Labor Force, Saline County (5) - .. - School Enrolllment (4) I Data Sources: 1) 2000 Population estimates are based on the 2000 Census. Population in intervening years is based on the Kansas Division of the Budget 7/1 estimate (2) U.S. Department of Commerce, Bureau of Economic Analysis. (3) Burea of the Census. (4) U.S.D. 305, Full Time Equivelancy (5) Kansas Department of Human Resources 105 Operating Position History, Enterprise Funds Table 16 Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Sanitation Solid Waste Disposal Non- Non- operating operating Operating Operating Operating Revenue Net Operating Operating Operating Revenue Revenues Expenses Income (Expense) Income Revenues Expenses Income (Expense) Net Income 1,052,413 999,308 53,105 16,451 69,556 1,214,207 878,128 336,079 (4,954 ) 331, 125 1,075,091 1,062,250 12,841 29,562 42,403 1,511,071 873,900 637,171 1,928 639,099 1,128,113 1,159,585 (31,472) 29,284 (2,188) 2,017,280 984,226 1,033,054 ( 128,332) 904,722 1,230,310 1,371,703 (141,393) 33,486 (107,907) 2,452,057 1,286,246 1,165,811 (62,151) 1,103,660 1,354,952 1,416,567 (61,615) 23,154 (38,461 ) 2,514,526 1,236,419 1,278,107 (60,847) 1,217,260 1,472,888 1,455,433 17,455 20,248 37,703 2,367,328 1,676,921 690,407 (32,586) 657,821 1,594,739 1,498,597 96,142 26,754 122,896 2,088,413 1,486,236 602,177 31 ,208 633,385 1,615,914 1,582,169 33,745 (74,531 ) (40,786) 2,094,700 2,171,127 (76,427) 29,529 (46,898) 1,638,280 1,654,313 (16,033) 20,208 4,175 2,210,231 2,049,152 161,079 62,622 223,701 1,794,621 1,682,352 112,269 6,350 118,619 2,401,509 2,255,388 146,121 (63,486) 82,635 1,814,256 1,907,818 (93,562) (3,532) (97,094) 2,488,760 2,727,113 (238,353) (19,038) (257,391 ) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Golf Course Water and Sewer Non- Non- operating operati ng Operating Operating Operating Revenue Net Operating Operating Operating Revenue Revenues Expenses Income (Expense) Income Revenues Expenses Income (Expense) Net Income 606,952 592,456 14,496 531 15,027 9,402,506 6,739,076 2,663,430 (577,935) 2,085,495 641,852 654,378 (12,526) (11,981 ) (24,507) 9,993,020 7,828,266 2,164,754 (1,508,687) 656,067 678,961 700,156 (21,195) (8,092) (29,287) 10,506,646 9,099,949 1,406,697 (859,874) 546,823 782,162 734,177 47,985 (19,452) 28,533 10,442,409 8,902,430 1,539,979 (722,798) 817,181 755,764 756,374 (610) (8,968) (9,578) 11,495,756 9,063,644 2,432,112 (395,640) 2,036,472 819,029 766,417 52,612 ( 1,302) 51,310 10,753,843 9,724,010 1,029,833 122,537 907,296 748,366 804,972 (56,606) (225) (56,831 ) 11,709,375 9,688,060 2,021,315 (391,373) 1,629,942 997,544 741,693 255,851 (899) 254,952 11,886,131 10,945,192 940,939 (532,155) 408,784 867,108 832,914 34,194 34, 194 37,259 13,435,656 11,628,379 1,807,277 (757,421 ) 1,049,856 810,717 782,734 27,983 (2,763) 25,220 12,216,560 10,682,725 1,533,835 (843,001 ) 690,834 813,590 815,486 ( 1,896) 1,087 (809) 12,432,442 10,654,249 1,778,193 (759,536) 1,363,475 106 This page intentionally left blank.