NEW ISSUE BOOK-ENTRY ONLY BANK QUALIFIED This official statement provides information about the Bonds and Notes (as defined herein). Some of the information appears on this cover page for ready reference. A prospective investor must read the entire Official Statement to make an informed investment decision.
CITY OF BEL AIRE, KANSAS
$6,060,000 $1,430,000
General Obligation Bonds Taxable General Obligation Refunding Bonds Series 2019A Series 2019B
(payable from unlimited ad valorem taxes) (payable from unlimited ad valorem taxes)
$2,860,000 General Obligation 1.350% Temporary Renewal and Improvement Notes
Series 2019C (payable from unlimited ad valorem taxes)
Dated: Date of Delivery Due: As shown on the inside front cover hereof
Rating of the Bonds and Notes
The Series 2019A Bonds: Standard and Poor’s Bond Rating: “A+”.The Series 2019B Bonds: Standard and Poor’s Bond Rating Insured: “AA”, Underlying: “A+”. The Notes: Standard and Poor’s Note Rating: “SP-1+”.
Interest Payment Dates
The Bonds: May 1 and November 1, commencing May 1, 2020.The Notes: June 1 and December 1, commencing June 1, 2020
Redemption The Bonds are subject to optional redemption prior to maturity as described herein.
The Notes are subject to optional redemption prior to maturity as described herein. Source of Payment
The General Obligation Bonds, Series 2019A (the “Series 2019A Bonds”) and the interest thereon shall be general obligations of the City of Bel Aire, Kansas (the “City” or the “Issuer”) payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the 2019A Improvements (as described herein) and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The Taxable General Obligation Refunding Bonds, Series 2019B (the “Series 2019B Bonds,” and, with the Series 2019A Bonds, jointly, the “Bonds”) and the interest thereon shall be general obligations of the City of Bel Aire, Kansas (the “City” or the “Issuer”) payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. The scheduled payment of principal of and interest on the Series 2019B Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Series 2019B Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY.
The Notes and the interest thereon shall be general obligations of the City, payable in part from special assessments levied upon the property benefited by the construction of certain Improvements, or from the proceeds of the City's general obligation bonds, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Notes as the same become due.
Tax Exemption
In the opinion of Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended, (1) the interest on the Series 2019A Bonds and the Notes (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of computing the federal alternative minimum tax; (2) the interest on the Bonds and Notes (jointly, the “Obligations”) is exempt from income taxation by the State of Kansas; and (3) the Series 2019A Bonds and the Notes have been designated or deemed designated as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “APPROVAL OF LEGALITY,” “TAX EXEMPTION – THE OBLIGATIONS” herein.
Purpose of the Series 2019A Bonds
The proceeds of the Series 2019A Bonds will be used for the purpose of providing permanent financing for certain paving, sidewalk, sanitary sewer, storm water drainage, and water distribution system improvements, a portion of which were previously financed by certain temporary notes of the City, pay costs of issuance related to the Series 2019A Bonds, and pay a portion of the costs to retire the City’s Series 2016B Notes.
Purpose of the Series 2019B Bonds
The proceeds of the Series 2019B Bonds will be used for the purpose of refunding the 2029 Term Bond of the City’s General Obligation Bonds, Series A 2009, and pay costs of issuance related to the Series 2019B Bonds.
Purpose of the Notes
The proceeds of the Notes will be used for the purpose of paying the cost of certain paving, sidewalk, sanitary sewer, storm water drainage, and water distribution system improvements, pay costs of issuance related to the Notes, and retire the City’s Temporary Notes, Series 2018A.
Denominations Multiples of $5,000. Closing On or about November 21, 2019. Book-Entry System
The Bonds and Notes will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”).
Bond Counsel Gilmore & Bell, P.C., Wichita, Kansas. Registrar & Paying Agent
Kansas State Treasurer, Topeka, Kansas.
Issuer Contact Additional information regarding this Official Statement is available by contacting the City of Bel Aire, 7651 E. Central Park Avenue, Bel Aire, Kansas, Attn: Ted Henry, Director of Finance and Administrations, (316) 744-2451.
This Official Statement is dated November 12, 2019.
i
$6,060,000
CITY OF BEL AIRE, KANSAS
General Obligation Bonds
Series 2019A(payable from unlimited ad valorem taxes)
Dated: Date of Delivery Due: November 1, as shown below
Maturity
Amount
Interest RateInitial
Reoffering YieldInitial
Reoffering Price CUSIP
(Base: 077324)
2021 $235,000 3.000% 1.350% 103.155% R94
2022 240,000 3.000% 1.380% 104.658% S28
2023 250,000 3.000% 1.400% 106.118% S36
2024 255,000 3.000% 1.450% 107.369% S44
2025 265,000 3.000% 1.500% 108.499% S51
2026 270,000 3.000% 1.550% 109.511% S69
2027 280,000 3.000% 1.650% 110.012% S77
2028 290,000 2.000% 1.750% 101.846%† S85
2029 295,000 2.000% 1.850% 101.103%† S93
2030 300,000 2.000% 2.000% 100.000% T27
2031 305,000 2.000% 2.050% 99.472% T35
2032 310,000 2.100% 2.150% 99.437% T43
2033 320,000 2.150% 2.200% 99.401% T50
2034 325,000 2.200% 2.250% 99.367% T68
2035 335,000 2.250% 2.300% 99.335% T76
2036 340,000 2.300% 2.350% 99.303% T84
2037 350,000 2.350% 2.400% 99.273% T92
2038 355,000 2.400% 2.450% 99.245% U25
2039 365,000 2.450% 2.500% 99.217% U33
2040 375,000 2.500% 2.550% 99.191% U41 _________________ † Priced to the November 1, 2027 optional redemption date.
ii
$1,430,000
CITY OF BEL AIRE, KANSAS
Taxable General Obligation Refunding Bonds
Series 2019B(payable from unlimited ad valorem taxes)
Dated: Date of Delivery Due: November 1, as shown below
Maturity
Amount
Interest Rate
InitialReoffering Yield
InitialReoffering Price
CUSIP (Base: 077324)
2020 $130,000 2.000% 1.900% 100.092% U582021 135,000 2.000% 1.950% 100.094% U662022 135,000 2.000% 2.000% 100.000% U742023 140,000 2.050% 2.050% 100.000% U822024 140,000 2.100% 2.100% 100.000% U902025 145,000 2.150% 2.150% 100.000% V242026 145,000 2.250% 2.250% 100.000% V322027 150,000 2.350% 2.350% 100.000% V402028 155,000 2.450% 2.450% 100.000% V572029 155,000 2.550% 2.550% 100.000% V65
$2,860,000
CITY OF BEL AIRE, KANSAS
General Obligation
1.350% Temporary Renewal and Improvement Notes Series 2019C
(payable from unlimited ad valorem taxes) Dated: Date of Delivery Due: December 1, as shown below
Maturity
Amount
Interest Rate
InitialReoffering Yield
InitialReoffering Price
CUSIP (Base: 077324)
2022 $2,860,000 1.350% 1.350% 100.000% V73
iii
CITY OF BEL AIRE, KANSAS
7651 E. Central Park Avenue Bel Aire, Kansas 67226
(316) 744-2451
CITY COUNCIL
David Austin, Mayor Justin Smith, Council President Jim Benage, Council Member Jeff Elshoff, Council Member Jeff Hawes, Council Member
Betty Martine, Council Member
CITY MANAGER Ty Lasher
CITY CLERK
Melissa Krehbiel
DIRECTOR OF FINANCE AND ADMINISTRATION Ted Henry
CERTIFIED PUBLIC ACCOUNTANTS
Allen, Gibbs & Houlik, L.C. Wichita, Kansas
BOND COUNSEL
Gilmore & Bell, P.C. Wichita, Kansas
MUNICIPAL ADVISOR
Columbia Capital Management, LLC Overland Park, Kansas
iv
No dealer, broker, salesman or other person has been authorized by the City of Bel Aire, Kansas, or the Original Purchasers to give any information or to make any representations with respect to the Obligations offered hereby other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Obligations offered hereby by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been furnished by the City of Bel Aire, Kansas, and other sources that are believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the Original Purchasers. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City of Bel Aire, Kansas, since the date hereof. IN CONNECTION WITH THIS OFFERING, THE ORIGINAL PURCHASERS MAY OVER ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE OBLIGATIONS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE OBLIGATIONS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE OBLIGATIONS ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION. THE REGISTRATION, QUALIFICATION OR EXEMPTION OF THE OBLIGATIONS IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THESE SECURITIES HAVE BEEN REGISTERED, QUALIFIED, OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE JURISDICTIONS NOR ANY OF THEIR AGENCIES HAVE GUARANTEED OR PASSED UPON THE SAFETY OF THE OBLIGATIONS AS AN INVESTMENT, UPON THE PROBABILITY OF ANY EARNINGS THEREON, OR UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT CONTAINS STATEMENTS THAT ARE “FORWARD-LOOKING STATEMENTS” AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN USED IN THIS OFFICIAL STATEMENT, THE WORDS “ESTIMATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. Build America Mutual Assurance Company (“BAM”) makes no representation regarding the Series 2019B Bonds or the advisability of investing in the Series 2019B Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “Bond Insurance” and “Appendix F - Specimen Municipal Bond Insurance Policy”.
v
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................................................. 1 THE OBLIGATIONS ........................................................................................................................................ 1
Description of the Obligations .......................................................................................................................... 1 Security for the Obligations .............................................................................................................................. 2 Levy and Collection of Annual Tax, Transfer to Debt Service Account .......................................................... 3 Eligibility for Pledging of Public Deposits ....................................................................................................... 3 Optional Redemption ........................................................................................................................................ 3 Selection of Series 2019A Bonds for Redemption ........................................................................................... 3 Selection of Notes for Redemption .................................................................................................................. 4 Notice of Series 2019A Bonds for Redemption ............................................................................................... 4 Notice of Notes for Redemption ....................................................................................................................... 5 Registration and Transfer ................................................................................................................................. 5 Authority and Purpose of the Series 2019A Bonds .......................................................................................... 7 Authority and Purpose of the Series 2019B Bonds .......................................................................................... 8 Authority and Purpose of the Series 2019C Notes ........................................................................................... 9
DEBT STRUCTURE OF THE CITY ............................................................................................................ 10
Chisholm Creek Utility Authority .................................................................................................................. 12 Debt Payment Record ..................................................................................................................................... 12 Overlapping Debt ........................................................................................................................................... 12 Debt Ratios ..................................................................................................................................................... 13
FUTURE FINANCING ................................................................................................................................... 13 ABSENCE OF LITIGATION ......................................................................................................................... 13 APPROVAL OF LEGALITY ......................................................................................................................... 13 CONTINUING DISCLOSURE ...................................................................................................................... 13 TAX EXEMPTION – THE SERIES 2019A BONDS AND THE NOTES .................................................. 14
Opinion of Bond Counsel Regarding the Series 2019A Bonds and the Notes ............................................... 14 Other Tax Consequences ................................................................................................................................ 15 Changes in Federal and State Tax Law .......................................................................................................... 16
BANK QUALIFIED TAX-EXEMPT OBLIGATIONS – THE SERIES 2019A BONDS AND THE NOTES .............................................................................................................................................................. 17 BOND INSURANCE ....................................................................................................................................... 17
Bond Insurance Policy .................................................................................................................................... 17 Build America Mutual Assurance Company .................................................................................................. 17
TAX MATTERS – THE SERIES 2019B BONDS ......................................................................................... 19
Opinion of Bond Counsel ............................................................................................................................... 19 RISK FACTORS AND INVESTMENT CONSIDERATIONS ................................................................... 19
Taxation of Interest on the Series 2019A Bonds and the Notes ..................................................................... 19 Debt Service Source ....................................................................................................................................... 20 Market for the Obligations ............................................................................................................................. 20 Legal Matters .................................................................................................................................................. 20 Limitations on Remedies Available to Owners of the Obligations ................................................................ 20 Kansas Public Employees Retirement System ............................................................................................... 21 Suitability of Investment ................................................................................................................................ 21
vi
Premium on the Obligations ........................................................................................................................... 21 No Additional Interest or Mandatory Redemption upon Event of Taxability ................................................ 21 Cybersecurity Risks ........................................................................................................................................ 21 Natural Disasters or Terrorist Attacks ............................................................................................................ 22
RATING ............................................................................................................................................................ 22
The Bonds ...................................................................................................................................................... 22 The Notes ....................................................................................................................................................... 22
FINANCIAL ADVISOR .................................................................................................................................. 22 UNDERWRITING ........................................................................................................................................... 22
The Series 2019A Bonds ................................................................................................................................ 22 The Series 2019B Bonds ................................................................................................................................ 23 The Notes ....................................................................................................................................................... 23
CERTIFICATION ........................................................................................................................................... 23 AUTHORIZATION OF OFFICIAL STATEMENT .................................................................................... 24 APPENDIX A—Information Regarding the City of Bel Aire, Kansas
APPENDIX B—Book-Entry Only System APPENDIX C—Summary of Financing Documents APPENDIX D—Excerpt of Audited Financial Statements for the Year Ended December 31, 2018 APPENDIX E—Form of Bond Counsel’s Opinion APPENDIX F—Specimen Municipal Bond Insurance Policy
[This Page Is Intentionally Left Blank.]
1
CITY OF BEL AIRE, KANSAS
$6,060,000 $1,430,000 General Obligation Bonds Taxable General Obligation Refunding Bonds
Series 2019A Series 2019B (payable from unlimited ad valorem taxes) (payable from unlimited ad valorem taxes)
$2,860,000
General Obligation
1.350% Temporary Renewal and Improvement Notes
Series 2019C (payable from unlimited ad valorem taxes)
INTRODUCTION
The purpose of this Official Statement is to furnish information relating to the City of Bel Aire,
Kansas (the “City”), and the City’s issuance of: (i) $6,060,000 principal amount of General Obligation Bonds, Series 2019A (the “Series 2019A Bonds”), dated the day of delivery, (ii) $1,430,000 principal amount of Taxable General Obligation Refunding Bonds, Series 2019B (the “Series 2019B Bonds”), and, together with the Series 2019A Bonds, the “Bonds”), and (iii) $2,860,000 principal amount of General Obligation Temporary Renewal and Improvement Notes, Series 2019C (the “Series 2019C Notes” or the “Notes”, and, together with the Bonds, the “Obligations”), dated the day of delivery.
THE OBLIGATIONS
Description of the Obligations
The Obligations will be issued in the total principal amounts provided on the cover page hereof;
will be dated the date of delivery, in the denomination of $5,000 each or any integral multiple thereof (the “Authorized Denomination”) not exceeding the principal amount maturing on any maturity date; will be initially registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York, to which payment of principal of and interest on the Obligations will be made; and will mature as set forth on the inside cover page hereof. Individual purchases of the Obligations will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Obligations purchased. The principal of the Obligations will be payable at the office of the State Treasurer of Kansas (the “Paying Agent,” “Bond Registrar” and “Note Registrar” or “Registrar”). See APPENDIX B—Book Entry Only System.
The Bonds will bear interest at the rates specified on the inside cover page hereof, based upon a
360-day year consisting of twelve 30-day months, from the later of the dated date or the most recent Bond Interest Payment Date to which interest has been paid. Interest on the Bonds will be payable semiannually on May 1 and November 1 (the “Bond Interest Payment Dates”) of each year until maturity, commencing May 1, 2020.
The Notes will bear interest at the rate specified on the inside cover page hereof, based upon a
360-day year consisting of twelve 30-day months, from the later of the dated date or the most recent Note Interest Payment Date to which interest has been paid. Interest on the Notes will be payable semiannually on June 1 and December 1 (the “Note Interest Payment Dates”) of each year until maturity, commencing June 1, 2020.
The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or
currency which, on the respective dates of payment thereof, is legal tender for the payment of public and
2
private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent.
The interest payable on each Bond on any Bond Interest Payment Date shall be paid to the Owner
of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Bond Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank ABA routing number and account number to which such Owner wishes to have such transfer directed.
The principal or Redemption Price of each Note shall be paid at Maturity to the Person in whose
name such Note is registered on the Note Register at the Maturity thereof, upon presentation and surrender of such Note at the principal office of the Paying Agent.
The interest payable on each Note on any Note Interest Payment Date shall be paid to the Owner
of such Note as shown on the Note Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Note Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Notes, by electronic transfer to such Owner upon written notice given to the Note Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. Security for the Obligations
The Series 2019A Bonds and the interest thereon shall be general obligations of the City of Bel
Aire, Kansas payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of the 2019A Improvements (as described herein) and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City.
The Series 2019B Bonds and the interest thereon shall be general obligations of the City of Bel
Aire, Kansas payable as to both principal and interest in part from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City of Bel Aire, Kansas are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due.
The scheduled payment of principal of and interest on the Series 2019B Bonds when due will be
guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Series 2019B Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY.
The Notes and the interest thereon shall be general obligations of the City, payable in part from special assessments levied upon the property benefited by the construction of certain Improvements, or from the proceeds of the City's general obligation bonds, and if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City of Bel
3
Aire, Kansas are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Notes as the same become due. Levy and Collection of Annual Tax, Transfer to Debt Service Account The governing body of the City shall annually make provision for the payment of principal of, premium, if any, and interest on the Obligations as the same become due by, to the extent necessary, levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the City in the manner provided by law. Such taxes and/or assessments shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the City are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the City, shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Obligations as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. Eligibility for Pledging of Public Deposits
The Obligations are eligible and lawful security for all deposits of public funds of the State of
Kansas and all agencies and subdivisions of the State, including all counties, cities, and school districts.
Optional Redemption
At the option of the City, Series 2019A Bonds maturing on November 1 in the years 2028, and thereafter, will be subject to redemption and payment prior to their Stated Maturity on November 1, 2027, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined by the City in such equitable manner as it may determine) at any time at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date.
The Series 2019B Bonds will not be subject to redemption prior to maturity.
At the option of the City, the Series 2019C Notes will be subject to redemption and payment prior to
their Stated Maturity on December 1, 2021, and thereafter, as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the City in such equitable manner as it may determine) at any time at the Redemption Price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the Redemption Date.
Selection of Series 2019A Bonds for Redemption
Series 2019A Bonds shall be redeemed only in an Authorized Denomination. When less than all
of the Series 2019A Bonds are to be redeemed and paid prior to their Stated Maturity, such Series 2019A Bonds shall be redeemed in such manner as the City shall determine. Series 2019A Bonds of less than a full Stated Maturity shall be selected by the Bond Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Bond Registrar may determine. In the case of a partial redemption of Series 2019A Bonds by lot when Series 2019A Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption a minimum Authorized Denomination of face value shall be treated as though it were a separate Series 2019A Bond of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination
4
of face value represented by any Series 2019A Bond is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner’s duly authorized agent shall forthwith present and surrender such Series 2019A Bond to the Bond Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Series 2019A Bond or Series 2019A Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Series 2019A Bond. If the Owner of any such Series 2019A Bond fails to present such Series 2019A Bond to the Paying Agent for payment and exchange as aforesaid, such Series 2019A Bond shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only). Selection of Notes for Redemption
Notes shall be redeemed only in an Authorized Denomination. When less than all of the Notes
are to be redeemed and paid prior to their Stated Maturity, such Notes shall be redeemed in such manner as the City shall determine. Notes of less than a full Stated Maturity shall be selected by the Note Registrar in a minimum Authorized Denomination of principal amount in such equitable manner as the Note Registrar may determine. In the case of a partial redemption of Notes by lot when Notes of denominations greater than a minimum Authorized Denomination are then Outstanding, then for all purposes in connection with such redemption a minimum Authorized Denomination of face value shall be treated as though it were a separate Note of the denomination of a minimum Authorized Denomination. If it is determined that one or more, but not all, of a minimum Authorized Denomination of face value represented by any Note is selected for redemption, then upon notice of intention to redeem a minimum Authorized Denomination, the Owner or the Owner’s duly authorized agent shall forthwith present and surrender such Note to the Note Registrar: (1) for payment of the Redemption Price and interest to the Redemption Date of a minimum Authorized Denomination of face value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Note or Notes of the aggregate principal amount of the unredeemed portion of the principal amount of such Note. If the Owner of any such Note fails to present such Note to the Paying Agent for payment and exchange as aforesaid, such Note shall, nevertheless, become due and payable on the redemption date to the extent of a minimum Authorized Denomination of face value called for redemption (and to that extent only).
Notice of Series 2019A Bonds for Redemption
In the event the City desires to call the Series 2019A Bonds for redemption prior to maturity,
written notice of such intent shall be provided to the Bond Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Bond Registrar shall call Series 2019A Bonds for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Bond Registrar at least 45 days prior to the Redemption Date of written instructions of the City specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Series 2019A Bonds to be called for redemption. Unless waived by any Owner of Series 2019A Bonds to be redeemed, if the City shall call any Series 2019A Bonds for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Series 2019A Bonds to the Bond Registrar and the Purchaser. In addition, the City shall cause the Bond Registrar to give written notice of redemption to the Owners of said Series 2019A Bonds. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date.
5
Notice of Notes for Redemption
In the event the City desires to call the Notes for redemption prior to maturity, written notice of such intent shall be provided to the Note Registrar in accordance with K.S.A. 10-129, as amended, not less than 45 days prior to the Redemption Date. The Note Registrar shall call Notes for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Note Registrar at least 45 days prior to the Redemption Date of written instructions of the City specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Notes to be called for redemption. Unless waived by any Owner of Notes to be redeemed, if the City shall call any Notes for redemption and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call and pay said Notes to the Note Registrar and the Purchaser. In addition, the City shall cause the Note Registrar to give written notice of redemption to the Owners of said Notes. Each of said written notices shall be deposited in the United States first class mail not less than 30 days prior to the Redemption Date.
Registration and Transfer
The Issuer covenants that, as long as any of the Obligations remain Outstanding, it will cause the
Bond and Note Register to be kept at the office of the Registrar as herein provided. Each Obligation when issued shall be registered in the name of the Owner thereof on the Bond or Note Register.
Obligations may be transferred and exchanged only on the Bond or Note Register as provided in this Section. Upon surrender of any Obligation at the principal office of the Registrar, the Registrar shall transfer or exchange such Obligation for a new Obligation or Obligations in any Authorized Denomination of the same Stated Maturity and in the same aggregate principal amount as the Obligation that was presented for transfer or exchange. Obligations presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Registrar, duly executed by the Owner thereof or by the Owner's duly authorized agent. In all cases in which the privilege of transferring or exchanging Obligations is exercised, the Registrar shall authenticate and deliver Obligations in accordance with the provisions of the Resolutions. The Issuer shall pay the fees and expenses of the Registrar for the registration, transfer and exchange of Obligations provided for by the Resolutions and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Registrar, are the responsibility of the Owners of the Obligations. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Code § 3406, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Owner hereunder or under the Obligations. The Issuer and the Registrar shall not be required (a) to register the transfer or exchange of any Obligation that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Obligation during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. The Issuer and the Paying Agent may deem and treat the Person in whose name any Obligation is
6
registered on the Bond or Note Register as the absolute Owner of such Obligation, whether such Obligation is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Obligation and for all other purposes. All payments so made to any such Owner or upon the Owner's order shall be valid and effective to satisfy and discharge the liability upon such Obligation to the extent of the sum or sums so paid, and neither the City nor the Paying Agent shall be affected by any notice to the contrary. At reasonable times and under reasonable regulations established by the Registrar, the Bond or Note Register may be inspected and copied by the Owners (or a designated representative thereof) of 10% or more in principal amount of the Obligations then Outstanding or any designated representative of such Owners whose authority is evidenced to the satisfaction of the Registrar.
[Remainder of page left blank intentionally]
7
Authority and Purpose of the Series 2019A Bonds
The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State of Kansas, including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 12-6a0l et seq., and City Charter Ordinance No. 13, all as amended, an ordinance passed by the governing body of the City and a resolution adopted by the governing body of the City (collectively, the “Series 2019A Bond Resolution”). The proceeds of the Bonds will be used for the purpose of paying the cost of certain paving, sidewalk, sanitary sewer, storm water drainage, and water distribution system improvements, which were previously financed by certain temporary notes of the City (the “2019A Improvements”), paying costs of issuance related to the Bonds, and pay a portion of the costs to retire the City’s Series 2016B Notes.
The 2019A Improvements consist of the following projects:
Project Description
Res. No. Cost
Englert Addition – Water R-16-10 $ 11,357.59 Rock Springs Addition Phase 4 – Paving R-16-11 135,800.95Rock Springs Addition Phase 4 – Water R-16-12 52,345.46Chapel Landing 2nd Addition Phase 2 – Paving R-16-18 252,793.20Chapel Landing 2nd Addition Phase 2 – Sewer R-16-19 109,651.93Chapel Landing 2nd Addition Phase 2 – Water R-16-20 67,438.99Deer Run Addition Phase 1 – Paving R-16-21 661,369.01Deer Run Addition Phase 1 – Sewer R-16-22 254,215.22Deer Run Addition Phase 1 – Sidewalk R-16-23 48,009.38Deer Run Addition Phase 1 – Storm Water R-16-24 716,922.26Deer Run Addition Phase 1 – Water R-16-25 148,161.73Rock Springs 2nd Addition – Paving R-16-26 482,627.02Rock Springs 2nd Addition – Water R-17-04 99,759.26Rock Springs 2nd Addition – Sidewalk R-16-28 25,830.66Rock Springs 2nd Addition – Sewer R-16-29 169,794.7837th Street – Water R-16-31 142,104.4537th Street – Paving R-16-31 774,165.1453rd Street – Paving R-16-32 585,800.9153rd Street – Water R-16-33 239,490.77Courtyards at Elk Creek Addition Phase 3 – Water R-17-09 110,285.58Courtyards at Elk Creek Addition Phase 3 – Sewer R-17-08 156,436.87Courtyards at Elk Creek Addition Phase 3 – Paving R-17-07 415,319.68Sunflower Commerce Park 2nd Addition Phase 2 – Drainage R-16-37 637,128.40
The costs of the 2019A Improvements were previously financed by the City’s General Obligation
Temporary Notes, Series 2016B, dated November 22, 2016 (“Series 2016B Notes”), which will be redeemed in full on December 1, 2019 with Series 2019A Bond proceeds, unspent Series 2016B Note proceeds, and available City funds.
8
The composition of the Series 2019A Bonds is as follows:
Principal of Series 2019A Bonds $6,060,000.00 Available City Funds 1,086,631.84 Less: Original Issue Discount 23,043.75 Plus: Original Issue Premium 137,522.30
Total Sources of Funds: $7,261,110.39
Deposit to the Improvement Fund $6,984,701.50 Capitalized Interest 140,353.89 Costs of Issuance, including Underwriter’s Discount 136,055.00
Total Uses of Funds: $7,261,110.39
Authority and Purpose of the Series 2019B Bonds
The Series 2019B Bonds are being issued pursuant to and in full compliance with the Constitution
and statutes of the State of Kansas, including K.S.A. 10-427 et seq., as amended, and a resolution adopted by the governing body of the City (the “Series 2019B Bond Resolution,” and, with the Series 2019A Bond Resolution, the “Bond Resolution”). The proceeds of the Series 2019B Bonds will be used to refund the 2029 Term Bond of the City’s Taxable General Obligation Bonds Series A, 2009 (the “Refunded Bonds”), and pay costs of issuance related to the Series 2019B Bonds.
The composition of the Series 2019B Bonds is as follows:
Principal of Series 2019B Bonds $1,430,000.00 Plus: Original Issue Premium 246.50
Total Sources of Funds: $1,430,246.50
Deposit to the Refunding Fund $1,387,072.50 Costs of Issuance, including Underwriter’s Discount and Bond Insurance Premium
43,174.00
Total Uses of Funds: $1,430,246.50
9
Authority and Purpose of the Series 2019C Notes The Series 2019C Notes are being issued pursuant to and in full compliance with the Constitution and
statutes of the State of Kansas, including K.S.A. 10-101 to 10-125, inclusive (specifically including K.S.A 10-123) and K.S.A. 12-6a0l et seq., as amended, and a resolution adopted by the governing body of the City (the “Note Resolution,” and, with the Bond Resolution, jointly the “Obligation Resolution”) adopted by the governing body of the City. The proceeds of the Series 2019C Notes will be used for the purpose of paying the cost of certain paving, sidewalk, sanitary sewer, storm water drainage, and water distribution system improvements (the “2019C Improvements”), pay costs of issuance related to the Series 2019C Notes, and retire and renew the City’s Temporary Notes, Series 2018A.
The 2019C Improvements consist of the following projects: Project Description
Res. No.
Estimated Amount*
Rock Spring Phase 6 – Water 19-05 $ 46,000Rock Spring Phase 6 – Paving 19-04 264,000Rock Spring 3rd Addition – Water 19-09 191,750Rock Spring 3rd Addition – Sewer 19-07 225,400Rock Spring 3rd Addition – Paving 19-06 449,000Webb Road Lift Station – Sewer 19-12 560,000Webb Road Sewer Extension – Sewer 19-11 190,000Villas at Prestwick – Water 18-11 98,906Villas at Prestwick – Sewer 18-09 174,180Villas at Prestwick – Paving 18-07 335,496Villas at Prestwick – Drainage 18-05 154,001
* Construction and engineering only; excludes temporary note interest, costs of issuance and administration.
The composition of the Series 2019C Notes is as follows:
Principal of Series 2019C Notes $2,860,000.00 Available City Funds 32,951.01
Total Sources of Funds: $2,892,951.01
Deposit to the Improvement Fund $2,751,170.86 Capitalized Interest 97,597.50 Costs of Issuance, including Underwriter’s Discount 44,182.65
Total Uses of Funds: $2,892,951.01
10
DEBT STRUCTURE OF THE CITY
General Obligation Bonds
Date of Issue Series Original Par Purpose Final Maturity Est. Principal Outstanding
11-21-19
% Subject to the Debt Limit
Amount Subject to the Debt Limit
01-15-2011 2011A 2,885,000 Refunding & Improvements
10-01-2031 1,685,000 57.78% 973,593
05-15-2012 2012A 5,215,000 Improvements 10-01-2032 3,595,000 39.31% 1,413,195
09-30-2013 2013D 3,895,000 Improvements 10-01-2033 3,005,000 30.68% 921,934
07-30-2014 2014A 1,100,000 Improvements 10-01-2034 860,000 30.90% 265,740
05-05-2015 2015A 5,390,000 Refunding 11-01-2027 3,440,000 29.62% 1,018,928
05-05-2015 2015B 575,000 Refunding 11-01-2027 380,000 59.29% 225,302
11-24-2015 2015D 3,960,000 Improvements 11-01-2035 3,470,000 0.53% 18,392
11-24-2015 2015E 220,000 Taxable
Improvements 11-01-2035 195,000 100.00% 195,000
11-22-2016 2016A 2,820,000 Improvements 11-01-2037 2,530,000 51.46% 1,301,938
11-21-2017 2017A 5,545,000 Improvements 11-01-2038 5,310,000 58.87% 3,125,997
11-21-2019 2019A 6,060,000
Improvements (the Series
2019A Bonds)
11-01-2040 6,060,000 53.70% 3,254,220
11-21-2019 2019B 1,430,000
Taxable Refunding (the Series
2019B Bonds)
11-01-2029 1,430,000 100.00% 1,430,000
Total 31,960,000 14,144,239
Source City of Bel Aire, KS
General Obligation Temporary Notes
Date of Issue Series Original Par Purpose Final Maturity Est. Principal Outstanding
11-21-19
% Subject to the Debt Limit
Amount Subject to the Debt Limit
11-21-2017 2017B 2,130,000 Improvements 12-01-2020 2,130,000 55.74% 1,187,262
11-21-2019 2019C 2,860,000 Improvement
(the Notes) 12-01-2022 2,860,000 39.00% 1,115,400
Total 4,990,000 2,302,662
Source City of Bel Aire, KS
11
Public Building Commission Revenue Bonds*
Date of Issue Series Original Par Purpose Final Maturity Est. Principal Outstanding
11-21-19
% Subject to the Debt Limit
Amount Subject to the
Debt Limit
04-15-2010 2010 19,315,000 Taxable
Refunding 05-01-2035 495,000 N/A N/A
12-18-2014 2014A 3,050,000 Revenue Refunding
02-01-2030 2,375,000 N/A N/A
12-18-2014 2014B 1,120,000 Taxable Revenue
Refunding 02-01-2030 865,000 N/A N/A
07-13-2017 2017 17,755,000 Taxable Revenue
Refunding 05-01-2034 16,680,000 N/A N/A
Total 20,415,000 N/A
Notes *These issues are secured by rental payments made from the City to the PBC. The City's obligation under the lease agreements is not subject to annual appropriation.
Source City of Bel Aire, KS
Estimated Fiscal Year Debt Service
General Obligation Bonds
and Notes† Series 2019ABC Total
Fiscal Year Principal Interest Principal Interest Principal Interest
2019 2,040,000 885,960 - - 2,040,000 885,960
2020 4,075,000 751,440 130,000 209,753 4,205,000 961,193
2021 2,000,000 670,005 370,000 216,085 2,370,000 886,090
2022 2,055,000 622,930 3,235,000 206,335 5,290,000 829,265
2023 1,715,000 573,521 390,000 157,825 2,105,000 731,346
2024 1,755,000 529,051 395,000 147,455 2,150,000 676,506
2025 1,800,000 482,254 410,000 136,865 2,210,000 619,119
2026 1,835,000 431,739 415,000 125,798 2,250,000 557,536
2027 1,745,000 379,085 430,000 114,435 2,175,000 493,520
2028 1,250,000 326,698 445,000 102,510 1,695,000 429,208
2029 1,235,000 285,973 450,000 92,913 1,685,000 378,885
2030 1,230,000 245,273 300,000 83,060 1,530,000 328,333
2031 1,280,000 203,808 305,000 77,060 1,585,000 280,868
2032 1,235,000 160,138 310,000 70,960 1,545,000 231,098
2033 930,000 118,063 320,000 64,450 1,250,000 182,513
2034 765,000 84,806 325,000 57,570 1,090,000 142,376
2035 555,000 56,950 335,000 50,420 890,000 107,370
2036 575,000 38,025 340,000 42,883 915,000 80,908
2037 320,000 18,400 350,000 35,063 670,000 53,463
2038 245,000 7,656 355,000 26,838 600,000 34,494
2039 - - 365,000 18,318 365,000 18,318
2040 - - 375,000 9,375 375,000 9,375
Total $28,640,000 $6,871,773 $10,350,000 $2,045,968 $38,990,000 $8,917,741
Notes †Excludes Series A, 2009 Bonds (for Fiscal Years 2020-2040) and Series 2016B Notes which will be redeemed on December 1, 2019 with proceeds of the Bonds. Source City of Bel Aire, KS
12
Statement of Legal Debt Margin
2018/19 Total Equalized Assessed Tangible Valuation $71,364,681
Debt Limit Ratio 30%
Debt Limit $21,409,404
Outstanding Debt Subject to Debt Limit ($16,446,901)
Debt Authority Remaining November 21, 2019 $4,962,504
Notes
General obligation bonds and temporary notes issued to finance utility improvements, revenue bonds, and refunding bonds are not subject to the debt limit.
Source City of Bel Aire, KS
Chisholm Creek Utility Authority
The City of Bel Aire and the City of Park City, Kansas have joined together to create the Chisholm Creek Utility Authority (the “Authority”) under an Interlocal Cooperation Agreement. As a contracting member of the Authority, the City of Bel Aire will receive certain water and sewer services from the Authority. The Authority is authorized to issue debt, in its own name, on behalf of the members; however, such debt shall not constitute a charge against or indebtedness of any member on behalf of which such debt is issued. The contracting members are not liable for the debt obligations of the Authority, but each member shall be liable to the Authority to the extent of its obligations specified in any contract or agreement by and between the members and the Authority.
The Authority has $23,870,000 in bonds outstanding, and the Authority anticipates that payments
made by the members will be sufficient to meet the annual debt service requirements on the outstanding obligations. The City, through Service Agreement payments, is responsible for approximately 64.14% of the debt service on the Authority Bonds. The City has covenanted that such payments constitute operating expenses of its water and wastewater Utility System, that the City will not in the future cause such pledge to be subordinated to any other obligation of the System and that the City will impose such rates, fees and charges for use of such system to fulfill its obligations under the Service Agreement.
Debt Payment Record
The City has never in its history monetarily defaulted on the payment of any of its debt or lease
obligations.
Overlapping Debt
Overlapping Indebtedness
Taxing Unit*
Est. G.O. Debt Outstanding
As of 12-31-18 % Overlap $ Overlap
Sedgwick County $ 52,940,000 1.249% $ 661,221
USD No. 259 (Wichita) 456,265,000 2.160% 9,855,324
Total $ 10,516,545
Notes *Only those units with outstanding general obligation debt are shownSource Sedgwick County and USD No. 259
13
Debt Ratios
Total Direct and Overlapping Indebtedness
G.O. Direct
Debt
G.O. Direct & Overlapping
Debt
2018/19 Appraised Valuation ($480,798,888) 7.69% 9.87%
2018/19 Equalized Assessed Tangible Valuation ($71,364,681) 51.78% 66.51%
Per Capita (8,073 - 2018 U.S. Census Estimate) $4,577 $5,880
FUTURE FINANCING
The City does not anticipate issuing any additional general obligation debt within the next 90 days.
ABSENCE OF LITIGATION
There is no controversy, suit or other proceeding of any kind pending or threatened wherein or
whereby any question is raised or may be raised, questioning, disputing or affecting in any way the legal organization of the City or its boundaries, or the right or title of any of its officers to their respective offices, or the legality of any official act shown to have been done in the transcript evidencing the issuance of the Obligations, or the constitutionality or validity of the indebtedness represented by the Obligations shown to be authorized in said transcript, or the validity of the Obligations, or any of the proceedings had in relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the principal and interest thereof.
APPROVAL OF LEGALITY
All matters incident to the authorization and issuance of the Obligations are subject to the
approval of Gilmore & Bell, P.C., Wichita, Kansas, Bond Counsel. The factual and financial information appearing herein has been supplied or reviewed by certain officials of the City and its certified public accountants, as referred to herein, and Bond Counsel expresses no opinion as to the accuracy or sufficiency thereof, except for the matters appearing in the sections of this Official Statement captioned “THE OBLIGATIONS,” “TAX EXEMPTION,” “APPENDIX C – SUMMARY OF FINANCING DOCUMENTS,” and “APPENDIX E – PROPOSED FORM OF BOND COUNSEL OPINION,”
CONTINUING DISCLOSURE
The Securities and Exchange Commission (the “SEC”) has promulgated amendments to Rule 15c2-12 (the “Rule”), requiring continuous secondary market disclosure. In connection with the issuance of the Obligations, the City will enter into a continuing disclosure undertaking (the “Disclosure Undertaking”) wherein the City covenants to annually provide certain financial information and operating data (collectively the “Annual Report”) and other information necessary to comply with the Rule, and to transmit the same to the MSRB. Pursuant to the Disclosure Undertaking, the City has agreed to file its Annual Report with the national repository (“EMMA”) not later than the last day of the eighth month after the end of the City’s Fiscal Year, commencing with the year ending December 31, 2019. In each of the Bond Resolution and Note Resolution, hereinafter defined, the City covenants with the Underwriter and the Beneficial Owners to apply the provisions of the Disclosure Undertaking to the Bonds and Notes. This covenant is for the benefit of and is enforceable by the Beneficial Owners of the Bonds and Notes.
The table below presents the City’s compliance with its various continuing disclosure agreements
14
and undertakings, executed in part to permit compliance with the Rule. Except as set forth below, the City believes that in the past five years it has complied in all material respects with its prior undertakings under the Rule:
Continuing Disclosure Summary
Fiscal Year Ending Dec. 31
Filing Time Period
Financial Information Filing Date
Operating Data Filing Date
2014 240 Days 08/13/2015 08/13/2015 and
08/28/2015*
2015 240 Days 08/26/2016 08/26/2016
2016 240 Days 08/24/2017 08/24/2017
2017 240 Days 08/28/2018 08/28/2018
2018 240 Days 08/28/2019 08/28/2019
*The City has Annual Report filing obligations with respect to its Water and Sewer Utility System, and has filed the Operating Data portion of such Annual Reports late, or at a later time than other filings, in certain years
In addition to the foregoing, the City issued general obligation bonds and temporary notes in
2015, 2016 and 2017 payable from the same source of revenue as the Obligations. The official statements for such general obligation bonds and notes were filed with the MSRB, but may not have been incorporated by reference in the filings made by the City with respect to one or more series of then outstanding general obligation bonds and temporary notes.
For more information regarding the Disclosure Undertaking, see Appendix C – SUMMARY OF
FINANCING DOCUMENTS--The Disclosure Undertaking.
TAX EXEMPTION – THE SERIES 2019A BONDS AND THE NOTES
The following is a summary of the material federal and State income tax consequences of holding and disposing of the Obligations. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Obligations as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers), and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2019A Bonds and the Notes in the secondary market. Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Series 2019A Bonds and the Notes. Opinion of Bond Counsel Regarding the Series 2019A Bonds and the Notes
In the opinion of Bond Counsel, under the law existing as of the issue date of the Series 2019A
Bonds and the Notes:
15
Federal Tax Exemption. The interest on the Series 2019A Bonds and the Notes (including any
original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes.
Alternative Minimum Tax. Interest on the Series 2019A Bonds and the Notes is not an item of tax
preference for purposes of computing the federal alternative minimum tax.
Bank Qualification. The Series 2019A Bonds and the Notes are “qualified tax-exempt obligations” for purposes of Code § 265(b)(3).
Kansas Tax Exemption. The interest on the Series 2019A Bonds and the Notes is exempt from
income taxation by the State of Kansas.
No Other Opinions. Bond Counsel’s opinions are provided as of the date of the original issue of the Series 2019A Bonds and the Notes, subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Series 2019A Bonds and the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The City has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 2019A Bonds and the Notes in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2019A Bonds and the Notes. Bond Counsel is expressing no opinion regarding other federal, state or local tax consequences arising with respect to the Series 2019A Bonds and the Notes.
Other Tax Consequences
Original Issue Discount. For federal income tax purposes, original issue discount is the excess of
the stated redemption price at maturity of a Series 2019A Bond or Note over its issue price. The issue price of a Series 2019A Bond or Note is generally the first price at which a substantial amount of the Series 2019A Bonds or Notes of that maturity have been sold to the public. Under Code § 1288, original issue discount on tax-exempt obligations accrues on a compound basis. The amount of original issue discount that accrues to an owner of a Series 2019A Bond or Note during any accrual period generally equals (1) the issue price of that Series 2019A Bond or Note, plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (2) the yield to maturity on that Series 2019A Bond or Note (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (3) any interest payable on that Series 2019A Bond or Note during that accrual period. The amount of original issue discount accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excludable from gross income for federal income tax purposes, and will increase the owner’s tax basis in that Series 2019A Bond or Note. Prospective investors should consult their own tax advisors concerning the calculation and accrual of original issue discount.
Original Issue Premium. For federal income tax purposes, premium is the excess of the issue
price of a Series 2019A Bond or Note over its stated redemption price at maturity. The issue price of a Series 2019A Bond or Note is generally the first price at which a substantial amount of the Series 2019A Bonds or Notes of that maturity have been sold to the public. Under Code § 171, premium on tax-exempt obligations amortizes over the term of the Series 2019A Bond or Note using constant yield principles, based on the purchaser’s yield to maturity. As premium is amortized, the owner’s basis in the Series 2019A Bond or Note and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to the owner, which will result in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes on sale or disposition of the Series 2019A Bond or Note prior to its maturity. Even though the owner’s basis is reduced, no federal income
16
tax deduction is allowed. Prospective investors should consult their own tax advisors concerning the calculation and accrual of premium.
Sale, Exchange or Retirement of the Series 2019A Bonds and the Notes. Upon the sale, exchange
or retirement (including redemption) of the Series 2019A Bonds and the Notes, an owner of the Series 2019A Bonds and the Notes generally will recognize gain or loss in an amount equal to the difference between the amount of cash and the fair market value of any property received on the sale, exchange or retirement of the Series 2019A Bonds and the Notes (other than in respect of accrued and unpaid interest) and such owner’s adjusted tax basis in the Series 2019A Bonds and the Notes. To the extent the Series 2019A Bonds and the Notes are held as a capital asset, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the Series 2019A Bonds and the Notes have been held for more than 12 months at the time of sale, exchange or retirement.
Reporting Requirements. In general, information reporting requirements will apply to certain
payments of principal, interest and premium paid on the Series 2019A Bonds and the Notes, and to the proceeds paid on the sale of the Series 2019A Bonds and the Notes, other than certain exempt recipients (such as corporations and foreign entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer identification number or certification of foreign or other exempt status or fails to report in full dividend and interest income. The amount of any backup withholding from a payment to an owner will be allowed as a credit against the owner’s federal income tax liability.
Collateral Federal Income Tax Consequences. Prospective purchasers of the Series 2019A Bonds
and the Notes should be aware that ownership of the Series 2019A Bonds and the Notes may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Series 2019A Bonds and the Notes. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of the Series 2019A Bonds and the Notes should consult their tax advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Series 2019A Bonds and the Notes, including the possible application of state, local, foreign and other tax laws.
Changes in Federal and State Tax Law
From time to time, there are legislative proposals in the Congress and in the states that, if enacted,
could alter or amend the federal and state tax matters referred to above or adversely affect the market value of the Series 2019A Bonds and the Notes. It cannot be predicted whether or in what form any such proposal might be enacted or whether if enacted it would apply to bonds or notes issued prior to enactment. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value of the Series 2019A Bonds and the Notes. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Series 2019A Bonds and the Notes or the market value thereof would be impacted thereby. Purchasers of the Series 2019A Bonds and the Notes should consult their tax advisors regarding any pending or proposed legislation, regulatory initiatives or litigation. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Series 2019A Bonds and the Notes and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending legislation, regulatory initiatives or litigation.
17
BANK QUALIFIED TAX-EXEMPT OBLIGATIONS – THE SERIES 2019A BONDS AND THE NOTES
The City has designated the Series 2019A Bonds and the Notes as “qualified tax-exempt
obligations” for purposes of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax- exempt obligations.
BOND INSURANCE
Bond Insurance Policy
Concurrently with the issuance of the Series 2019B Bonds, Build America Mutual Assurance Company (“BAM”) will issue its Municipal Bond Insurance Policy for the Series 2019B Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the Series 2019B Bonds when due as set forth in the form of the Policy included as an exhibit to this Official Statement.
The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law.
Build America Mutual Assurance Company
BAM is a New York domiciled mutual insurance corporation and is licensed to conduct financial guaranty insurance business in all fifty states of the United States and the District of Columbia. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended. No member of BAM is liable for the obligations of BAM.
The address of the principal executive offices of BAM is: 200 Liberty Street, 27th Floor, New York, New York 10281, its telephone number is: 212-235-2500, and its website is located at: www.buildamerica.com.
BAM is licensed and subject to regulation as a financial guaranty insurance corporation under the laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.
BAM’s financial strength is rated “AA/Stable” by S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC (“S&P”). An explanation of the significance of the rating and current reports may be obtained from S&P atwww.standardandpoors.com. The rating of BAM should be evaluated independently. The rating reflects the S&P’s current assessment of the creditworthiness of BAM and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the Series 2019B Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of BAM in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the Series 2019B Bonds. BAM only guarantees scheduled principal and scheduled interest payments payable by the issuer of the Series 2019B Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and BAM does not guarantee the market price or liquidity of the Series 2019B Bonds, nor does it guarantee that the rating on the Series 2019B Bonds will not be revised or withdrawn.
18
Capitalization of BAM BAM’s total admitted assets, total liabilities, and total capital and surplus, as of September 30,
2019 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $552.8 million, $130.8 million and $422.1 million, respectively.
BAM is party to a first loss reinsurance treaty that provides first loss protection up to a maximum
of 15% of the par amount outstanding for each policy issued by BAM, subject to certain limitations and restrictions.
BAM’s most recent Statutory Annual Statement, which has been filed with the New York State
Insurance Department and posted on BAM’s website at www.buildamerica.com, is incorporated herein by reference and may be obtained, without charge, upon request to BAM at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.
BAM makes no representation regarding the Series 2019B Bonds or the advisability of investing
in the Series 2019B Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “BOND INSURANCE”.
Additional Information Available from BAM
Credit Insights Videos. For certain BAM-insured issues, BAM produces and posts a brief Credit Insights video that provides a discussion of the obligor and some of the key factors BAM’s analysts and credit committee considered when approving the credit for insurance. The Credit Insights videos are easily accessible on BAM's website at buildamerica.com/creditinsights/. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)
Credit Profiles. Prior to the pricing of bonds that BAM has been selected to insure, BAM may prepare a pre-sale Credit Profile for those bonds. These pre-sale Credit Profiles provide information about the sector designation (e.g. general obligation, sales tax); a preliminary summary of financial information and key ratios; and demographic and economic data relevant to the obligor, if available. Subsequent to closing, for any offering that includes bonds insured by BAM, any pre-sale Credit Profile will be updated and superseded by a final Credit Profile to include information about the gross par insured by CUSIP, maturity and coupon. BAM pre-sale and final Credit Profiles are easily accessible on BAM's website at buildamerica.com/obligor/. BAM will produce a Credit Profile for all bonds insured by BAM, whether or not a pre-sale Credit Profile has been prepared for such bonds. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)
Disclaimers. The Credit Profiles and the Credit Insights videos and the information contained therein are not recommendations to purchase, hold or sell securities or to make any investment decisions. Credit-related and other analyses and statements in the Credit Profiles and the Credit Insights videos are statements of opinion as of the date expressed, and BAM assumes no responsibility to update the content of such material. The Credit Profiles and Credit Insight videos are prepared by BAM; they have not been reviewed or approved by the issuer of or the underwriter for the Series 2019B Bonds, and the issuer and underwriter assume no responsibility for their content.
19
BAM receives compensation (an insurance premium) for the insurance that it is providing with
respect to the Series 2019B Bonds. Neither BAM nor any affiliate of BAM has purchased, or committed to purchase, any of the Series 2019B Bonds, whether at the initial offering or otherwise.
TAX MATTERS – THE SERIES 2019B BONDS
The following is a summary of the material federal and state income tax consequences of holding
and disposing of the Series 2019B Bonds. This summary is based upon laws, regulations, rulings and judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not discuss all aspects of federal income taxation that may be relevant to investors in light of their personal investment circumstances or describe the tax consequences to certain types of holders subject to special treatment under the federal income tax laws (for example, dealers in securities or other persons who do not hold the Series 2019B Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other tax deferred accounts, and foreign taxpayers) and, except for the income tax laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2019B Bonds in the secondary market . Prospective investors are advised to consult their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing of the Series 2019B Bonds.
Opinion of Bond Counsel
General. Interest on the Series 2019B Bonds is includable in gross income for federal income tax purposes.
Kansas Tax Exemption. The interest on the Series 2019B Bonds is exempt from income taxation
by the State of Kansas. No Other Opinions. Bond Counsel is expressing no other opinion regarding other federal, state or
local tax consequences arising with respect to the Series 2019B Bonds.
RISK FACTORS AND INVESTMENT CONSIDERATIONS
PROSPECTIVE PURCHASER(S) OF THE OBLIGATIONS DESCRIBED HEREIN SHOULD BE AWARE THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE OBLIGATIONS WHICH MUST BE RECOGNIZED.
Taxation of Interest on the Series 2019A Bonds and the Notes
Opinions of Bond Counsel will be obtained in the effect that interest earned on the Series 2019A
Bonds and the Notes is excludable from gross income for federal income tax purposes under current provisions of the Code, and applicable rulings and regulations under the Code; however, an application for a ruling has not been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no assurance that the present provisions of the code, or the rules and regulations thereunder, will not be adversely amended modified, thereby rendering the interest earned on the Series 2019A Bonds and the Notes includable in gross income for federal income tax purposes.
The City has covenanted in the Series 2019A Bond Resolution and the Note Resolution (jointly,
the “Resolutions”) and in other documents and certificates to be delivered in connection with the issuance of the Series 2019A Bonds and the Notes to comply with the provisions of the Code, including those which require the City to take or omit to take certain actions after the issuance of the Series 2019A Bonds and the Notes. Because the existence and continuation of the excludability of the interest on the Series
20
2019A Bonds and the Notes depends upon events occurring after the date of issuance of the Series 2019A Bonds and the Notes, the opinion of Bond Counsel described under “TAX EXEMPTION – THE SERIES 2019A BONDS AND THE NOTES” assumes the compliance by the City with the provisions of the Code described above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the excludability of the interest on the Series 2019A Bonds and the Notes in the event of noncompliance with such provisions. The failure of the City to comply with the provisions described above may cause the interest on the Series 2019A Bonds and the Notes to become includable in gross income as the date of issuance. Debt Service Source The Obligations are general obligations of the City payable as to both principal and interest, if necessary, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. Taxpayers may also challenge the fair market value of property assigned by the county appraiser. The effects of such legislative changes and successful challenges to the appraiser’s determination of fair market value could affect the City’s property tax collections. If a taxpayer valuation challenge is successful, the liability of the City to refund property taxes previously paid under protest may have a material impact on the City’s financial situation. See “APPENDIX A – FINANCIAL INFORMATION – Property Valuations.”
Market for the Obligations
There is no assurance that a secondary market will develop for the purchase and sale of the
Obligations. The absence of continuing disclosure of financial or other information pertaining to the City may impair the development of a secondary market for the Obligations and could impair the ability of an owner to sell the Obligations in the secondary market. Prices of bonds traded in the secondary market, though, are subject to adjustment upward and downward in response to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary market trading in the Obligations as a result of financial condition or market position of broker-dealers, prevailing market conditions, lack of adequate current financial information about the City, or a material adverse change in the financial condition of the City, whether or not the Obligations are in default as to principal and interest payments, and other factors which may give rise to uncertainty concerning prudent secondary market practices.
Legal Matters
Various state and federal laws, regulations and constitutional provisions apply to the obligations
created by the Obligations. There is no assurance that there will not be any change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City or the taxing authority of the City. Changes in laws affecting the taxing authority of the City could limit the ability of the City to collect revenue sufficient to pay principal and interest on the Obligations.
Limitations on Remedies Available to Owners of the Obligations
The enforceability of the rights and remedies of the owners of the Obligations, and the obligations incurred by the City in issuing the Obligations, are subject to the following: the federal Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States
21
of America of the powers delegated to it by the United States Constitution; and the reasonable and necessary exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its governmental subdivisions in the interest of serving a legitimate and significant public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Obligations to judicial discretion and interpretation of their rights in bankruptcy and otherwise, and consequently may involve risks of delay, limitation or modification of their rights.
Kansas Public Employees Retirement System As described in “APPENDIX A--FINANCIAL INFORMATION – Employee Pensions,” the City participates in the Kansas Public Employees Retirement System (“KPERS”), as an instrumentality of the State to provide retirement and related benefits to public employees in Kansas. KPERS administers three statewide defined benefit retirement plans for public employees which are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The City participates in the Public Employees Retirement System – Local Group (the “Plan”). Under existing law, employees make contributions and the City makes all employer contributions to the Plan; neither the employees nor the City are directly responsible for any unfunded accrued actuarial liability (“UAAL”); however, Plan contribution rates may be adjusted by legislative action over time to address any UAAL. According to KPERS’ Valuation Report, dated as of December 31, 2018, the Local Group had an UAAL of $1.502 billion.
Suitability of Investment
The tax exempt feature of the Series 2019A Bonds and the Notes is more valuable to high tax bracket investors than to investors who are in low tax brackets and so the value of the interest compensation to any particular investor will vary with individual tax rates. Each prospective investor should carefully examine this Official Statement, including the Appendices hereto, and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Obligations are an appropriate investment. Premium on the Obligations
Any person who purchases an Obligation in excess of its principal amount, whether during the initial offering or in a secondary market transaction, should consider that the Obligations are subject to redemption at par under the various circumstances described under “Optional Redemption.”
No Additional Interest or Mandatory Redemption upon Event of Taxability
The Resolutions do not provide for the payment of additional interest or penalty on the Series 2019A Bonds and the Notes or the mandatory redemption thereof if the interest thereon becomes includable in gross income for federal income tax purposes. Likewise, the Resolutions do not provide for the payment of any additional interest or penalty on the Obligations if the interest thereon becomes subject to Kansas income taxation. Cybersecurity Risks Security breaches, including electronic break-ins, computer viruses, attacks by hackers and similar breaches could create disruptions or shutdowns of the City and the services it provides, or the unauthorized disclosure of confidential personal, health-related, credit and other information. If a security breach occurs, the City may incur significant costs to remediate possible injury to the affected persons, and the City may be subject to sanctions and civil penalties. Any failure to maintain proper functionality and security of information systems could interrupt the City’s operations, delay receipt of revenues,
22
damage its reputation, subject it to liability claims or regulatory penalties and could have a material adverse effect on its operations, financial condition and results of operations. Natural Disasters or Terrorist Attacks The occurrence of a terrorist attack in the City, or natural disasters, such as fires, tornados, earthquakes, floods or droughts, could damage the City and its systems and infrastructure, and interrupt services or otherwise impair operations of the City.
RATING
The Bonds
S&P Global Ratings, a division of Standard & Poor’s Financial Services LLC, a part of S&P
Global, Inc. (“S&P”), has assigned a rating to the Series 2019A Bonds of “A+”. S&P is expected to assign a rating to the Series 2019B Bonds of “AA” based upon the issuance of
the Policy by BAM for the benefit of the holders of the Series 2019B Bonds; and has assigned the Series 2019B Bonds the underlying rating of “A+”.
Such rating reflects only the views of S&P, and an explanation of the significance of such rating
may be obtained only therefrom. There is no assurance that the rating assigned will remain in effect for any given period of time or that the rating will not be revised, either downward or upward, or withdrawn entirely, by S&P if, in its sole judgment, circumstances so warrant. Any such downward revisions or withdrawals of this rating may have an adverse effect upon the market price of the Bonds.
The Notes
S&P has assigned a rating to the Notes of “SP-1+”. Such rating reflects only the views of S&P,
and an explanation of the significance of such rating may be obtained only therefrom. There is no assurance that the rating assigned will remain in effect for any given period of time or that the rating will not be revised, either downward or upward, or withdrawn entirely, by S&P if, in its sole judgment, circumstances so warrant. Any such downward revisions or withdrawals of this rating may have an adverse effect upon the market price of the Notes.
FINANCIAL ADVISOR
Columbia Capital Management, LLC serves as financial advisor (“Financial Advisor”) to the
City. The Financial Advisor is an independent municipal advisor registered with U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board. The Financial Advisor has participated in the preparation of this Official Statement, but has not verified all of the factual information contained herein, nor has it conducted a detailed investigation of the affairs of the City for the purpose of passing upon the accuracy or completeness of this Official Statement. No person is entitled to rely on the Financial Advisor’s participation as an assumption of responsibility for, or an expression of opinion of any kind with regard to, the accuracy or completeness of the information contained herein.
UNDERWRITING
The Series 2019A Bonds
On Tuesday, November 5, 2019, the City received six sealed bid proposals for the purchase of the
Series 2019A Bonds. The Series 2019A Bonds were awarded to Country Club Bank (the “Original Purchaser of the Series 2019A Bonds”).
23
After a resizing directed by the City, the Original Purchaser of the Series 2019A Bonds purchased
the Series 2019A Bonds at the principal amount thereof plus a premium of $137,522.30, less original issue discount of $23,043.75 and net underwriting discount of $56,055.00, resulting in a true interest cost of 2.265%. The Original Purchaser of the Series 2019A Bonds provided a certification to the City that the Series 2019A Bonds were initially reoffered to the public at the yields shown on the inside cover hereof.
The Series 2019B Bonds
On Tuesday, November 5, 2019, the City received seven sealed bid proposals for the purchase of
the Series 2019B Bonds. The Series 2019B Bonds were awarded to Robert W. Baird & Co. (the “Original Purchaser of the Series 2019B Bonds”).
After a resizing directed by the City, the Original Purchaser of the Series 2019B Bonds purchased
the Series 2019B Bonds at the principal amount thereof plus a premium of $246.50 and net underwriting discount and payment of the premium of the Policy of $12,771.32, resulting in a true interest cost of 2.461%. The Original Purchaser of the Series 2019B Bonds provided a certification to the City that the Series 2019B Bonds were initially reoffered to the public at the yields shown on the inside cover hereof.
The Notes
On Tuesday, November 5, 2019, the City received four sealed bid proposals for the purchase of
the Notes. The Notes were awarded to Country Club Bank (the “Original Purchaser of the Notes”). After a resizing directed by the City, the Original Purchaser of the Notes purchased the Series
2019C Notes at the principal amount thereof and net underwriting discount of $12,870.00, resulting in a true interest cost of 1.503%. The Original Purchaser of the Notes provided a certification to the City that the Series 2019C Notes were initially reoffered to the public at the yields shown on the inside cover hereof.
CERTIFICATION
The City has authorized the distribution of the Preliminary Official Statement for use in
connection with the initial sale of the Obligations and a Final Official Statement following award of the Obligations. The Purchaser(s) will be furnished with a certificate signed by the appropriate officers of the City stating that the City examined each document and that, as of the respective date of each and the date of such certificate, each document did not and does not contain any untrue statement of material fact or omit to state a material fact necessary, in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
24
AUTHORIZATION OF OFFICIAL STATEMENT This Official Statement was duly authorized and approved by the City Council of the City of Bel
Aire, Kansas on November 5, 2019.
/s/ David Austin Mayor
ATTEST:
/s/ Justin Smith Council President
/s/ Melissa Krehbiel City Clerk
A-1
APPENDIX A ISSUER INFORMATION
I . GENERAL INFORMATION CONCERNING THE CITY
Size and Location
The City encompasses approximately 6.83 square miles (4,371 acres) and is located in Sedgwick
County, in the northeast part of the Wichita Metropolitan Area. The City’s population trend is shown below.
City of Bel Aire Population
Population Percent Change
1990 Census 3,695 --
2000 Census 5,836 57.9%
2010 Census 6,769 16.0%
2018 U.S. Census Estimate 8,073 19.3%
Source
U.S. Census Bureau
Government and Organization of the City
The City is a municipal corporation and is a city of the second class under Kansas law. The City
has a Council/Manager form of government. The City Council conducts all legislative functions for the City, establishes general policies, and promotes the general welfare of the City. The City Council appoints its staff members, including the City Manager and City Clerk, to carry out the provision of City services.
[Remainder of page left blank intentionally]
A-2
Municipal Utilities and Services
The City owns its own municipal waterworks utility and sanitary sewer utility, including treatment facilities owned and operated through the Chisholm Creek Utility Authority, under an Interlocal Cooperation Agreement with the City of Park City, Kansas. Natural gas, electric and telephone services are provided by private utilities. Water is also obtained through a contract with the City of Wichita.
The largest water and wastewater system customers are as follows:
Largest System Customers
Customer Gallons Percent of Total
Catholic Care 18,335,200 6.65%
Tree Top Nursery 5,667,300 2.06%
Central Park 4th HOA 4,598,000 1.67%
Villas at Elk Creek HOA 4,445,000 1.61%
Broadstone Villas LLC 3,374,000 1.22%
Courtyards at Elk Creek HOA 3,249,000 1.18%
Irongate Development 2,429,000 0.88%
North Webb LLC 1,731,000 0.63%
Gospel Assembly 1,441,000 0.52%
USD 259 1,311,000 0.48%
Total 46,580,500 16.90%
Source
Chisholm Creek Utility Authority
A minimum water service charge of $28.64 per monthly billing period shall be assessed to all
residential customers who have their premises connected to the City water system at any time during the monthly billing period. In addition to the minimum water service charge, the following charges for any metered volume of water passing from the City water system to any service connection shall be billed to the person, firm or organization whose premises are serviced by the connection.
Residential Water Utility Rates
Gallons Rate
Minimum $28.64
0-2,999 Additional $3.53 per 1,000 gallons
3,000-5,999 Additional $4.83 per 1,000 gallons
6,000-11,999 Additional $5.27 per 1,000 gallons
12,000-16,999 Additional $5.41 per 1,000 gallons
17,000-24,999 Additional $5.54 per 1,000 gallons
25,000 and over Additional $5.60 per 1,000 gallons Source Chisholm Creek Utility Authority
A-3
A base fee of $41.66 per monthly billing period shall be assessed to all commercial customers who have their premises connected to the Bel Aire water system at any time during the monthly billing period. In addition to the minimum water service charge, the following charges for any metered volume of water passing from the Bel Aire water system to any service connection shall be billed to the person, firm or organization whose premises are serviced by the connection.
Commercial Water Utility Rates
Gallons Rate
Base Fee $41.66
0-2,999 Additional $3.96 per 1,000 gallons
3,000-5,999 Additional $5.27 per 1,000 gallons
6,000-11,999 Additional $5.79 per 1,000 gallons
12,000-16,999 Additional $6.14 per 1,000 gallons
17,000-24,999 Additional $6.58 per 1,000 gallons
25,000 and over Additional $7.24 per 1,000 gallons Source Chisholm Creek Utility Authority
A minimum sanitary sewer service charge of $32.88 per monthly billing period shall be assessed
to all residential customers who have their premises connected to the City sanitary sewer system at any time during the monthly billing period. In addition to the minimum sanitary sewer service charge, additional charges for sanitary sewer collection and treatment, based on metered volume of water from the City water system, shall be billed to the person, firm or organization whose premises are serviced by the connection at the rate of $5.95 per 1,000 gallons.
A base fee of $67.72 per month will be charged to each commercial customer connected to the
public sanitary sewer system regardless of use. Winter average consumption will be used to determine consumption fees. Consumption will be charged at $8.04 per 1,000 gallons used. Educational Facilities
The City is served by the City of Wichita USD No. 259 (Wichita) and the City of Towanda USD
No. 375 (Circle) for K-12 education.
Post-secondary education is available to City residents at Wichita State University, Friends University, Newman University, University of Kansas School of Medicine and the Wichita Area Vocational-Technical School, all located in the City of Wichita.
Transportation
The City is located south of US Highway 254, west of I-35 (the Kansas Turnpike) and north of
the K-96 expressway. Colonel James Jabara Airport, located just outside the City, is a public general aviation airport used for private and charter flights. Wichita Mid-Continent Airport, located approximately 20 minutes outside the City, offers commercial and cargo flights.
Medical and Health Facilities
The City has two hospitals and medical center complexes located within 30 miles of the City,
HCA Wesley Medical Center and Via Christi Hospitals.
Sedgwick County provides emergency medical services to the City.
A-4
Recreational and Cultural Facilities
Sedgwick County offers a wide variety of cultural and entertainment options to City residents, including: Botanica – The Wichita Gardens; Wurlitzer Organ Pops Concerts; Metropolitan Ballet Company; Wichita Community Theater; Wichita Children’s Theater; Music Theater of Wichita; Mid-America Dance Theater, Inc.; Wichita Symphony and Choral Society; Wichita Art Association Galleries; Lake Afton Public Observatory; Wichita Art Museum; Whittier Fine Arts Gallery; Mid America All Indian Center Museum; and Exploration Place. Some of the major cultural events held annually in the area are: Kansas Junior Livestock Show; Wichita Jazz Festival; Renaissance Fair; Wichita River Festival; Victorian Garden Festival; National Baseball Congress Tournament; Lake Afton Grand Prix; Wichita Arts Festival; and the Sedgwick County Fair.
In addition to the recreational and cultural facilities offered above, Sedgwick County operates the
Intrust Bank Arena, the Sedgwick County Zoo and Botanical Gardens, Lake Afton Park, and the Sedgwick County Park. The Intrust Bank Arena is a multi-purpose facility hosting nationally recognized musical entertainers, circuses, rodeos, the Wichita Thunder professional hockey team of the Central Hockey League and a wide variety of other entertainment events. The Sedgwick County Zoo and Botanical Gardens are considered world-class facilities. The zoo provides an environment where animals roam in spacious areas that stimulate their natural habitats, while the Botanical Gardens offer a wide variety of species of native American and foreign plants, trees and shrubs in a natural setting.
[Remainder of page left blank intentionally]
A-5
II. ECONOMIC INFORMATION CONCERNING THE CITY Labor Force
Labor Force data for Sedgwick County and the State of Kansas are presented in the table below.
Labor Force
2015 2016 2017 2018 July 2019
Sedgwick County 246,489 245,170 242,781 246,865 253,149
State of Kansas 1,487,435 1,476,149 1,472,602 1,487,183 1,484,096
Notes
Annual end of period data.
Source
Bureau of Labor Statistics
Unemployment Rates
Unemployment rates for Sedgwick County, the State of Kansas and the United States are
presented in the table below.
Unemployment Rate (%)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sedgwick County 8.4 8.1 7.0 6.0 5.1 4.5 4.1 4.1 3.7 3.5
State of Kansas 6.8 6.4 5.7 5.2 4.3 3.8 3.6 3.6 3.1 3.1
United States 9.7 9.1 8.3 7.6 6.5 5.4 4.8 4.5 3.9 3.7
Notes
Annual end of period data
Source
Bureau of Labor Statistics
Major Employers
Major employers located with the Wichita Metropolitan Area are as follows:
Major Employers
Employer Product or Service Approximate Number
of Employees
Spirit AeroSystems Aircraft Assemblies 12,500
Textron Aviation Aircraft Manufacturer 9,000
Unified School District 259 -- Wichita Public School District 7,326
McConnell Air Force Base Air Force Base 6,867
Ascension Via Christi Health Care 5,156
State of Kansas State Government 4,494
Koch Industries Global HQ – Diversified 3,263
City of Wichita Municipal Government 3,250
U.S. Government Federal Government 2,793
Dillons Food Stores Grocery Chain 2,701
Sedgwick County County Government 2,670
Wesley Healthcare Health Care 2,490
Source Greater Wichita Economic Development Coalition
A-6
Financial and Banking Institutions
The following full service banks are located in the surrounding Wichita Metropolitan Area and serve City residents:
Financial and Banking Institutions
Institution Total Assets ($000)
As of 06-30-2019
Intrust Bank, National Association 5,359,562
Fidelity Bank 2,363,674
Emprise Bank 1,734,923
American State Bank & Trust Company 633,547
Southwest National Bank 443,827
Bankers' Bank of Kansas 181,416
Garden Plain State Bank 96,629
Chisholm Trail State Bank 91,048
Community Bank of Wichita, Inc. 77,914
Source
Federal Deposit Insurance Corporation
Building Permits
The following table includes historical residential and commercial building permits issued in the
City from 2010 to 2019.
Building Permits
Year No. Permits Amount
2010 137 49,741,221*
2011 106 2,384,936
2012 132 8,798,611
2013 1,438 33,885,097**
2014 283 23,695,159
2015 205 28,456,106
2016 186 21,701,770
2017 189 30,453,639
2018 163 16,061,041
2019 (08-31) 130 12,779,498
Notes
*Increase in valuation is due, in part, to the construction of new schools by Unified School District No. 259 (Wichita). **Increase in valuation is due, in part, to a hailstorm that hit the City on May 19, 2013 and damaged many homes throughout the City.
Source
City of Bel Aire
[Remainder of page left blank intentionally]
A-7
III. FINANCIAL INFORMATION Financial Reports
The City has established a uniform system of accounting maintained in accordance with the laws
of the State of Kansas and generally accepted accounting principles. The accounts are maintained on the modified accrual basis for all budgetary funds and on the accrual basis for all other funds.
Budgeting Procedures
Applicable Kansas Statutes require that budgets be legally adopted for all funds (including debt
service and enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the modified accrual basis of accounting. This means that commitments such as purchase orders and contracts in addition to disbursements and accounts payable are recorded as expenditures.
The statutes provide that the budget for the succeeding calendar year must be prepared on or
before August 1 and published on or before August 5 of each year. A public hearing is required to be held on or before August 15, with the final budget being adopted on or before August 25 of each year. Original appropriations may be modified by supplemental appropriations and transfers among budget categories. The governing body must approve all significant budget changes. If there is cash in a fund in excess of budget requirements, it cannot be spent during the year, but must be carried forward as income for the ensuing year, unless the budget is amended. Kansas statute prohibits municipalities from creating indebtedness unless there is money on hand in the proper fund, unencumbered by previous commitments, with which to pay the indebtedness required. The executor of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the payments of the amount represented by the commitment. It makes no difference that the amount may not have to be paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the issuance of debt in the form of bonds, notes, or warrants pursuant to statutory or constitutional authority. In the event debt is issued, funds need not be on hand for future payments. The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies are based on the adopted budget of the City and the assessed valuations provided by the County appraiser. Beginning in 2015, the Kansas Legislature passed legislation that, among other things, imposes an additional limit on the aggregate amount of property taxes that may be imposed by cities and counties, without a majority vote of qualified electors of the city or county (the “Tax Lid,” located at K.S.A. 79-2925c). The Tax Lid became effective on January 1, 2017, and provides that, subject to certain exceptions, no city or county may approve an appropriation or budget which provides for funding by property tax revenues in an amount exceeding that of the immediately prior year, as adjusted to reflect the average changes in the consumer price index for the preceding five calendar years and provided that such average shall not be less than zero, unless approved by a majority vote of electors. Among other exceptions, the Tax Lid does not require an election in a situation where the increased property tax revenues that will be spent on: • bond, temporary notes, no fund warrants, state infrastructure loans and interest payments
not exceeding the amount of ad valorem property taxes levied in support of such payments, and
• payments made to a public building commission and lease payments but only to the extent such payments were obligations that existed prior to July 1, 2016.
Therefore, the City is permitted under the Tax Lid to levy unlimited ad valorem taxes as necessary to pay principal of and interest on the Obligations, as required by the Obligation Resolution.
A-8
The City cannot predict the impact of the Tax Lid on the ratings on the Obligations, or the general rating of the City. A change in the rating on the Obligations or a change in the general rating of the City may adversely impact the market price of the Obligations in the secondary market. General Fund Budget Summary
A summary of the general fund by source and category for the City for the fiscal years 2017,
2018, and 2019 is set forth below. Actual revenues and expenditures are provided for the years 2017 and 2018 and operating revenues and expenditures for the year 2019. In addition, the adopted revenues and expenditures are provided for the years 2018 and 2019. This is a summary of revenues and expenditures only, produced by the City. Audited financial statements for the year ended December 31, 2018, are included in APPENDIX D to this Official Statement.
General Fund
Revenues 2017
Actual 2018
Adopted 2018
Actual 2019
Adopted 2019
Operating Taxes $ 3,973,535 $ 4,163,972 $ 4,256,527 $ 4,404,310 4,458,174 Licenses and permits 331,059 294,350 176,385 254,850 327,505 Fines and fees 765,714 780,000 826,854 835,000 835,000 Recreation and pool 104,214 104,200 113,408 106,000 101,154 Grants 50,292 41,500 44,318 58,000 50,686 Land sales - - - - - Miscellaneous 112,189 73,500 109,615 71,200 92,869 Transfer In - - - -
Total Revenues $ 5,337,003 $ 5,457,522 $ 5,527,107 $ 5,729,360 $ 5,865,388
Expenditures
Personnel $ 1,924,269 $ 2,083,210 $ 1,865,060 $ 2,180,800 $2,180,800 Contractual 562,982 578,500 399,339 630,900 630,900 Commodities 471,951 621,850 823,547 565,350 565,350 Capital Outlay 73,246 37,584 26,142 25,500 25,500 Transfers out 2,093,694 2,641,457 1,999,431 2,770,843 2,311,938 Reserve - - - - -
Total Expenditures $ 5,126,141 $ 5,962,601 $ 5,113,519 $ 6,173,393 $5,714,488
Revenues over (under) $ 210,862 $ (505,079) $ 413,588 $ (444,033) (150,900)
Ending Cash Balance $ 2,797,394 $ 2,185,767 $ 3,104,434 $ 2,660,401 2,811,301
Cash balance % of Revenue 52% 40% 56% 46% 48% Source City of Bel Aire
Major General Fund Revenue Sources
Revenue 2014 2015 2016 2017 2018 Taxes and shared revenues $ 3,004,070 $ 3,511,635 $ 3,757,736 $ 3,973,535 $ 4,256,527 Land sale 169,894 113,934 - - - Franchise fees 453,753 446,021 509,071 467,738 662,193 Licenses, permits and fees 306,123 488,605 518,751 331,059 336,776 Court fines 106,022 130,485 149,845 192,876 164,661 Other 45,119 51,094 41,763 112,188 106,950 Source City of Bel Aire
Cash and Investments
The City has a formal investment policy. The governing body of the City has authority to invest
all operating funds of the City pursuant to K.S.A. 12-1675, a State law which governs the investment of public funds by governmental subdivisions, units, and entities. As of August 31, 2019, the City has cash and investments totaling $3,732,155 consisting of $735,114 held in cash and savings with local banks and $2,997,041 invested in the Municipal Investment Pool.
A-9
Labor Contracts The City does not have any employees covered by labor contracts. Employee Pensions The City participates in the Kansas Public Employees Retirement System (“KPERS”) established in 1962, as an instrumentality of the State, pursuant to K.S.A. 74-4901 et seq., to provide retirement and related benefits to public employees in Kansas. KPERS is governed by a board of trustees consisting of nine members each of whom serve four-year terms. The board of trustees appoints an executive director to serve as the managing officer of KPERS and manage a staff to carry out daily operations of the system. As of June 30, 2018, KPERS serves approximately 312,000 members and approximately 1,500 participating employers, including the State, school districts, counties, cities, public libraries, hospitals and other governmental units. KPERS administers the following three statewide, defined benefit retirement plans for public employees:
(a) Kansas Public Employees Retirement System; (b) Kansas Police and Firemen’s Retirement System; and (c) Kansas Retirement System for Judges.
These three plans are separate and distinct with different membership groups, actuarial assumptions, experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is the largest of the three plans, accounting for approximately 95% of the members. The Kansas Public Employees Retirement System is further divided into two separate groups, as follows: (a) State/School Group - includes members employed by the State, school districts, community colleges, vocational-technical schools and educational cooperatives. The State of Kansas makes all employer contributions for this group, the majority of which comes from the State General Fund. (b) Local Group - all participating cities, counties, library boards, water districts and political subdivisions are included in this group. Local employers contribute at a different rate than the State/School Group rate. KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received IRS determination letters attesting to the plan’s qualified status dated October 14, 1999 and March 5, 2001. KPERS is also a “contributory” defined benefit plan, meaning that employees make contributions to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer contributions. The City's employees currently annually contribute 6% of their gross salary to the plan if such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009), KPERS Tier 2 members (covered employment on or after July 1, 2009), or KPERS Tier 3 members (covered employment on or after January 1, 2015). The City's contribution varies from year to year based upon the annual actuarial valuation and appraisal made by KPERS, subject to legislative caps on percentage increases. The City's contribution is 8.89% of the employee’s gross salary for calendar year 2019. The City’s contribution is projected to change to 8.61% of gross compensation for calendar year 2020. In addition, the City contributes 1% of the employee’s gross salary for Death and Disability Insurance for covered employees. According to the Valuation Report as of December 31, 2018 (the “2018 Valuation Report”) the KPERS Local Group, of which the City is a member, carried an unfunded accrued actuarial liability
A-10
(“UAAL”) of approximately $1.502 billion at the end of 2018. The amount of the UAAL in 2018 changed from the previous year’s amount due to the factors discussed in the 2018 Valuation Report; such report also includes additional information relating to the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS Local Group. A copy of the 2018 Valuation Report is available on the KPERS website at kpers.org/about/reports.html. The City has no means to independently verify any of the information set forth on the KPERS website or in the 2018 Valuation Report, which is the most recent financial and actuarial information available on the KPERS website relating to the funded status of the KPERS Local Group. The 2018 Valuation Report sets the employer contribution rate for the period beginning January 1, 2021, for the KPERS Local Group, and KPERS’ actuaries identified that an employer contribution rate of 8.87% of covered payroll would be necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by the end of the actuarial period set forth in the 2018 Valuation Report. The statutory contribution rate of employers currently equals the 2018 Valuation Report’s actuarial rate. As a result, members of the Local Group are adequately funding their projected actuarial liabilities and the UAAL can be expected to diminish over time. The required employer contribution rate may increase up to the maximum statutorily allowed rate, which is 1.2% in fiscal year 2017 and thereafter. The City is required to implement GASB 68 – Accounting and Financial Reporting for Pensions. KPERS produces a Schedule of Employer and Nonemployer Allocations and Schedules of Pension Amounts by Employer and Nonemployer (the “GASB 68 Report”) which provides the net pension liability allocated to each KPERS participant, including the City. The GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The City has no means to independently verify any of the information set forth on the KPERS website or in the GASB 68 Report. It is important to note that under existing State law, the City has no legal obligation for the UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes only. Other Post Employment Benefits (GASB 45)
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which addresses how state and local governments must account for and report their obligations related to post- employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or “OPEB”).
Terminated employees may remain on the City’s health insurance plan for up to 18 months if they
pay the monthly premiums. This benefit is required under the Federal Consolidated Omnibus Budget Reconciliation Act (the “C.O.B.R.A. Law”). Therefore, the City’s only liability under GASB 45 would come from the implicit rate subsidy.
The benefits described above are the City’s only OPEB. The City must report an annual OPEB
cost based on actuarially determined amounts that, if paid on an ongoing basis, will provide sufficient resources to pay these benefits as they come due. The City may establish its OPEB liability to zero as of the beginning of the initial year of implementation; however, the unfunded actuarial liability is required to be amortized over future periods.
For more information regarding the liability of the City with respect to its employees, please
reference “Note IV. Other Information – Pension and Other Post-Employment Benefit Plans” of the City’s Financial Statements for the fiscal year ended December 31, 2018, which is included as Appendix D of this Official Statement.
A-11
Property Valuation
The determination of assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas is conducted by Kansas counties. The Sedgwick County Appraiser’s office determines annually the assessed valuation that is used as a basis for the mill levy on property located in the City. The County Appraiser’s determination is based on criteria established by Kansas Statutes.
The market valuation of every property must be updated every year, with physical inspection
required once every six years. Valuations as of January 1 are made available in September of each year for taxes payable during the next calendar year. The State Constitution provides that, for ad valorem taxation purposes, real and personal property are divided into classes and assessed at percentages of market value, as set forth below.
Property subject to ad valorem taxation is divided into two classes, real property and personal property. Real property is divided into seven subclasses; there are six subclasses of personal property. The real property (Class 1) subclasses are: (i) real property used for residential purposes including multi family mobile or manufactured homes and the real property on which such homes are located, assessed at 11.5%, (ii) agricultural land, valued on the basis of agricultural income or productivity, assessed at 30%, (iii) vacant lots, assessed at 12%, (iv) real property, owned and operated by a not for profit organization not subject to federal income taxation, pursuant to Code §501, assessed at 12%, (v) public utility real property, except railroad real property, assessed at the average rate that all other commercial and industrial property is assessed, assessed at 33%, (vi) real property used for commercial and industrial purposes and buildings and other improvements located on land devoted to agricultural use, assessed at 25%, and (vii) all other urban and real property not otherwise specifically classified, assessed at 30%. Tangible personal property (Class 2) subclasses are: (i) mobile homes used for residential purposes, assessed at 11.5%, (ii) mineral leasehold interests, except oil leasehold interests, the average daily production from which is 5 barrels or less, and natural gas leasehold interests, the average daily production from which is 100 mcf or less, which shall be assessed at 25%, assessed at 30%, (iii) public utility tangible personal property, including inventories thereof, except railroad personal property, including inventories thereof, which shall be assessed at the average rate all other commercial and industrial property is assessed, assessed at 33%, (iv) all categories of motor vehicles not defined and specifically valued and taxed pursuant to law enacted prior to January 1, 1985, assessed at 20%, (v) commercial and industrial machinery and equipment which if its economic life is 7 years or more, shall be valued at its retail cost, when new, less seven year straight line depreciation, or which, if its economic life is less than 7 years, shall be valued at its retail cost when new, less straight line depreciation over its economic life, except that, the value so obtained for such property, notwithstanding its economic life and as long as such property is being used, shall not be less than 20% of the retail cost when new of such property, assessed at 25%, and (vi) all other tangible personal property not otherwise specifically classified, assessed at 30%. All property used exclusively for state, county, municipal, literary, educational, scientific, religious, benevolent and charitable purposes, farm machinery and equipment, merchants' and manufacturers' inventories, other than public utility inventories included in subclass (3) of class 2, livestock, and all household goods and personal effects not used for the production of income, shall be exempted from property taxation. The 2006 Legislature exempted from all property or ad valorem property taxes levied under the laws of the State all commercial, industrial, telecommunications and railroad machinery and equipment acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30, 2006 for the purpose of expanding an existing business or creation of a new business. The Legislature may from time to time adopt changes in the property tax system or method of imposing and collecting property taxes within the State. Taxpayers may also challenge the fair market
A-12
value of property assigned by the county appraiser. The effects of such legislative changes and successful challenges to the appraiser’s determination of fair market value could affect the City’s property tax collections. If a taxpayer valuation challenge is successful, the liability of the City to refund property taxes previously paid under protest may have a material impact on the City’s financial situation.
The total assessed valuation of the taxable tangible property in the City of Bel Aire, Kansas, for the last five (5) years is shown below:
Assessed Valuation
Year* Sedgwick County
Sales Ratio Appraised Valuation
Taxable Assessed Valuation**
Motor and Recreation Vehicles
Equalized Assessed Tangible Valuation
2014/15 87.9% $ 365,545,270 $ 45,309,074 $ 8,760,209 $ 54,069,283
2015/16 88.2% 383,369,967 48,143,387 9,243,852 57,387,239
2016/17 89.5% 416,722,453 52,479,400 9,682,993 62,162,393
2017/18 84.5% 447,620,939 56,501,399 10,121,490 66,622,889
2018/19 N/A*** 480,798,888 60,692,494 10,672,187 71,364,681
Notes
*As valued in the first year for the purpose of computing the rates of taxes collectible in the following year. ** The value of motor and recreation vehicles is not included in total property valuation for determining the property tax levy. It is, however, included in total property valuation for determining the City’s debt limit. ***2018 Kansas Appraisal/Sales Ratio Study is not yet available on the State of Kansas Department of Revenue website.
Sources
The Sedgwick County Clerk’s Office, the Kansas Department of Revenue and the City of Bel Aire, Kansas
2018/19 Equalized Assessed Tangible Valuation
Category Amount Percent
Real Property $ 58,606,122 96.6%
Personal Property 192,238 0.3%
State Assessed Utilities 1,894,134 3.1%
Total Taxable Assessed Valuation $ 60,692,494 100.0%
Motor and Recreational Vehicles 10,672,187
Total Equalized Assessed Tangible Valuation $ 71,364,681
Source
Sedgwick County Clerk’s Office
Major Taxpayers
According to the Sedgwick County tax rolls, the ten (10) largest taxpayers with property located within the City as of 2018, and their assessed valuations, are as follows:
Major Taxpayers
Taxpayer
Assessed Valuation
JDO LLC $ 2,132,400
Alley Investments LLC 1,297,325
City of Bel Aire 1,289,089
Kansas Gas & Elec-Westar Energy 976,270
Kansas Gas Service-Oneok 532,970
RKR LLC 396,330
Belpointe LLC 336,925
SMM Investments LLC 309,956
Family Video Movie Club Inc. 288,825
Scarlet Maples LLC 287,710
Total $ 7,847,800
Source
Sedgwick County Clerk’s Office
A-13
City Tax Rates, Levies and Collections
Property taxes are certified by the City to the County Clerk by August 25 of each year for the following fiscal year. Taxes are levied by the County Clerk and payable to the County Treasurer. Property taxes may be paid in two installments, the first due December 20 in the year the taxes are levied and the second due May 10 of the following year. Taxes become delinquent after May 10 and interest accrues at a rate set by State statute until paid or until the property is sold for taxes. Special assessments are levied and collected in the same manner as property taxes.
The property taxes levied and collected for the last five (5) years for the City of Bel Aire and all
other taxing jurisdictions of real and personal property located within the City are as follows:
District and Overlapping Property Tax Rates
(Per $1,000 of assessed value)
Levy Year
USD 259 (Wichita)
Budget Year
City of Bel Aire
Sedgwick County State Other Total
2014 2015 45.730 49.345 53.735 1.500 1.133 151.443
2015 2016 46.246 47.754 56.278 1.500 1.132 152.910
2016 2017 45.726 47.807 53.683 1.500 1.253 149.969
2017 2018 45.719 47.785 53.733 1.500 1.253 149.990
2018 2019 45.725 47.546 53.638 1.500 1.237 149.646
Source
Sedgwick County Clerk’s Office
Historical Property Tax Collections
Levy Year/ Budget Year
Total Tax Levy 1
Current Taxes Collected
% Current Levy Collected
Prior Years Tax Collected
Total Taxes Collected
% Total Collections to Current Levy
2014/15 $ 2,071,995 $ 2,023,406 97.66% $ 31,562 $ 2,054,968 99.18%
2015/16 2,227,576 2,181,391 97.93% 31,587 2,212,978 99.48%
2016/17 2,401,245 2,355,290 98.09% 26,900 2,382,190 99.21%
2017/18 2,584,488 2,516,618 97.37% 27,816 2,544,434 98.45%
2018/19 2,777,047 2,712,014 97.66% 59,241 2,771,254 99.79%
Source
Sedgwick County Treasurer’s Office and the City of Bel Aire
[Remainder of page left blank intentionally]
A-14
The following table sets forth the City’s portion of the Sedgwick County sales tax collections in the years indicated.
Sales Tax Collections
Year Amount Received
2010 $ 846,431
2011 890,721
2012 972,275
2013 1,008,037
2014 1,039,547
2015 1,093,371
2016 1,165,977
2017 1,174,000
2018 1,259,045
2019 (08-31) 879,058
Source
City of Bel Aire
[Remainder of page left blank intentionally]
B-1
APPENDIX B
BOOK-ENTRY ONLY SYSTEM The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for
the Obligations. The Obligations will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond and Note will be issued for each maturity, due on the respective maturity dates as set forth on the inside cover page hereof, in the aggregate principal amount of such issue, and will be deposited with DTC.
DTC, the world’s largest depository, is a limited-purpose trust company organized under the New
York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTC, is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of the Obligations under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Obligations on DTC’s records. The ownership interest of each actual purchaser of each Obligation (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Obligations are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book-entry system for the Obligations is discontinued.
To facilitate subsequent transfers, all Bonds and Notes deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds and Notes are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
B-2
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Obligations may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of the Obligations may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Bond Registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within an issue are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Obligations unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to an issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Obligations will be made to Cede & Co., or such other
nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Bond Registrar, on the payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Bond Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Bond Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Obligations at any time
by giving reasonable notice to the City or Bond Registrar. Under such circumstances, in the event that a successor depository is not obtained, Bond and Note certificates are required to be printed and delivered.
See APPENDIX C—REGISTRATION AND TRANSFER OF THE OBLIGATIONS for a discussion
of the provisions of the Resolution related to the registration, transfer and exchange of Bonds and the replacement of mutilated, lost, stolen or destroyed bonds.
The information in this section concerning DTC and DTC’s book-entry system has been obtained
from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
C-1
AAPPENDIX C
SUMMARY OF FINANCING DOCUMENTS
The following is a summary of certain provisions contained in the Bond Resolution authorizing the issuance of the Bonds, the Note Resolution authorizing the issuance of the Notes. This summary does not purport to be complete and is qualified by reference to the entirety of the foregoing documents.
THE BOND RESOLUTION DEFINITIONS In addition to words and terms defined elsewhere in this Official Statement, the following words and terms as used herein shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution and statutes of the State of Kansas including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., and K.S.A. 10-427 et seq., as amended and supplemented. "Authorized Denomination" means $5,000 or any integral multiples thereof. “BAM” means Build America Mutual Assurance Company., a New York domiciled mutual insurance corporation, or any successor thereto. "Beneficial Owner" of the Bonds includes any Owner of the Bonds and any other Person who, directly or indirectly has the investment power with respect to such Bonds. "Bond and Interest Fund" means the Bond and Interest Fund of the Issuer for its general obligation bonds. "Bond Counsel" means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. “Bond Insurance Policy” means the municipal bond insurance policy issued by the Bond Insurer concurrently with the delivery of the Series 2019B Bonds guaranteeing the scheduled payment when due of the principal of and interest on the Series 2019B Bonds.
“Bond Insurer” means BAM with respect to the Series 2019B Bonds. "Bond Payment Date" means any date on which principal of or interest on any Bond is payable. "Bond Register" means the books for the registration, transfer and exchange of Bonds kept at the office of the Bond Registrar. "Bond Registrar" means the State Treasurer, Topeka, Kansas, and its successors and assigns. "Bond Resolution" means jointly the Ordinance passed by the governing body of the Issuer and the resolution adopted by the governing body of the Issuer authorizing the issuance of the Bonds, as amended from time to time. "Bonds" means, jointly, the Series 2019A Bonds and Series 2019B Bonds. "Business Day" means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. "Cede & Co." means Cede & Co., as nominee of DTC and any successor nominee of DTC with respect to the Bonds.
C-2
"City" means the City of Bel Aire, Kansas. "Clerk" means the duly appointed and/or elected Clerk or, in the Clerk's absence, the duly appointed Deputy Clerk or Acting Clerk of the Issuer. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder of the United States Department of the Treasury. "Costs of Issuance" means all costs of issuing the Bonds, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, all expenses incurredin connection with receiving ratings on the Bonds, and any premiums or expenses incurred in obtaining municipal bond insurance on the Series 2019B Bonds. "Costs of Issuance Account" means the account by that name created by the Bond Resolution. "Dated Date" means November 21, 2019. "Debt Service Account" means the account by that name (within the Bond and Interest Fund) created by the Bond Resolution. "Debt Service Requirements" means the aggregate principal payments (whether at maturity or pursuant to scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers. "Defaulted Interest" means interest on any Bond which is payable but not paid on any Interest Payment Date. "Defeasance Obligations" means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or
(b) evidences of ownership of proportionate interests in future interest and principal payments on United States Government Obligations held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the underlying United States Government Obligations are not available to any person claiming through the custodian or to whom the custodian may be obligated; or
(c) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions:
(1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions;
(2) the obligations are secured by cash or United States Government Obligations that may be applied
only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus
any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are
held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims,
including those against the trustee or escrow agent; and (6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower
C-3
than the rating category then assigned by that Rating Agency to United States Government Obligations.
"Derivative" means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. “Director of Finance” means the duly appointed and acting Director of Finance and Administration of the Issuer or, in the Director's absence, the duly appointed Deputy, Assistant or Acting Director of Finance and Administration of the Issuer. “Disclosure Undertaking” means the Continuing Disclosure Undertaking dated as of the Issue Date, attached to the Issuer's Closing Certificate for the Bonds relating to certain obligations contained in the SEC Rule. "DTC" means The Depository Trust Company, New York, New York. "Event of Default" means each of the following occurrences or events:
(a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise; or
(b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due;
(c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in the Bond Resolution (other than the covenants relating to continuing disclosure contained in the Bond Resolution and the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then Outstanding. "Federal Tax Certificate" means the Issuer's Federal Tax Certificate for the Bonds, dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. “Financeable Costs” means the amount of expenditure for an Improvement which has been duly authorized by action of the governing body of the Issuer to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. "Fiscal Year" means the twelve month period ending on December 31. "Fitch" means Fitch Ratings, a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Fitch" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer with notice to the Bond Insurer. "Funds and Accounts" means funds and accounts created by or referred to in the Bond Resolution. “Improvement Fund” means the fund by that name created in the Bond Resolution. “Improvements” means the improvements referred to in the preamble to the Ordinance. "Independent Accountant" means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by the Bond Resolution. “Insurer's Fiscal Agent” means the agent designated by the Bond Insurer pursuant to the Bond Insurance Policy. "Interest Payment Date(s)" means the Stated Maturity of an installment of interest on any Bond which shall be May 1 and November 1 of each year, commencing May 1, 2020. "Issue Date" means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the Purchase Price.
C-4
"Issuer" means the City and any successors or assigns. "Maturity" when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and in the Bond Resolution provided, whether at the Stated Maturity thereof or call for redemption or otherwise. "Mayor" means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer with notice to the Bond Insurer. “Official Statement” means the Issuer’s Official Statement relating to the Bonds. "Outstanding" means, when used with reference to the Bonds, as of a particular date of determination, all Bonds theretofore, authenticated and delivered, except the following Bonds:
(a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation;
(b) Bonds deemed to be paid in accordance with the provisions of the Bond Resolution; (c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered hereunder; and (d) Bonds, the principal or interest of which has been paid by the Series 2019B Bond Insurer. "Owner" when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register. Whenever consent of the Owners is required pursuant to the terms of the Bond Resolution, and the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Bonds. "Participants" means those financial institutions for whom the Securities Depository effects book-entry transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at the time of such reference. "Paying Agent" means the State Treasurer, Topeka, Kansas, and any successors and assigns. "Permitted Investments" shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks or the federal home loan mortgage corporation; (g) repurchase agreements for securities described in (c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); (j) receipts evidencing ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the municipality issuing the same; (l) bonds of any municipality of the State as defined in K.S.A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f); or (m) other investment obligations authorized by the laws of the State and approved in writing by the Bond Insurer, all as may be further restricted or modified by amendments to applicable State law. "Person" means any natural person, corporation, partnership, joint venture, association, firm, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body.
C-5
"Purchaser" means the financial institution or investment banking firm that is original purchaser of the Bonds. "Rating Agency" means any company, agency or entity that provides financial ratings for the Bonds. "Record Dates" for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. "Redemption Date" when used with respect to any Bond to be redeemed means the date fixed for the redemption of such Bond pursuant to the terms of the Bond Resolution. "Redemption Price" when used with respect to any Bond to be redeemed means the price at which such Bond is to be redeemed pursuant to the terms of the Bond Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. “Refunded Bonds” means the Series A, 2009 Bonds maturing in the year 2029 in the aggregate principal amount of $1,380,000. “Refunded Bonds Paying Agent” means the paying agent for the Refunded Bonds as designated in the Refunded Bonds Resolution, and any successor or successors at the time acting as paying agent of the Refunded Bonds. “Refunded Bonds Redemption Date” means December 1, 2019, for the Series A, 2009 Bonds. “Refunded Bonds Resolution” means the ordinance and resolution which authorized the Refunded Bonds. “Refunded Notes” means the Series 2016B Notes. “Refunded Notes Maturity Date” means December 1, 2019. “Refunded Notes Resolution” means the resolution which authorized the Refunded Notes. "Replacement Bonds" means Bonds issued to the Beneficial Owners of the Bonds in accordance with the Bond Resolution. "SEC Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as may be amended from time to time. "Securities Depository" means, initially, DTC, and its successors and assigns. “Series A, 2009 Bonds” means the Issuer's Taxable General Obligation Bonds, Series A, 2009, dated January 29, 2009. “Series 2016B Notes” means the City's General Obligation Temporary Notes, Series 2016B, dated November 22, 2016. “Series 2019A Bonds” means the Issuer's General Obligation Bonds, Series 2019A, dated November 21, 2019, authorized and issued by the Issuer pursuant to the Ordinance “Series 2019B Bonds” means the Issuer's Taxable General Obligation Refunding Bonds, Series 2019B, dated November 21, 2019, authorized and issued by the Issuer pursuant to the Ordinance. "Special Record Date" means the date fixed by the Paying Agent for the payment of Defaulted Interest. “Standard & Poor's” means S&P Global Ratings, a division of S&P Global Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer with notice to the Bond Insurer. "State" means the state of Kansas. "State Treasurer" means the duly elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the State.
C-6
"Stated Maturity" when used with respect to any Bond or any installment of interest thereon means the date specified in such Bond and the Bond Resolution as the fixed date on which the principal of such Bond or such installment of interest is due and payable. "Treasurer" means the duly appointed and/or elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. "United States Government Obligations" means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ESTABLISHMENT OF FUNDS AND ACCOUNTS; DEPOSIT AND APPLICATION OF BOND PROCEEDS Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the Issuer the following Funds and Accounts:
(a) Improvement Fund. (b) Redemption Fund.
(c) Costs of Issuance Account. (d) Debt Service Account for General Obligation Bonds, Series 2019A (within the Bond and Interest Fund). (e) Debt Service Account for Taxable General Obligation Refunding Bonds, Series 2019B (within the Bond
and Interest Fund). The above Funds and Accounts shall be administered in accordance with the provisions of the Bond Resolution so long as the Bonds are Outstanding. Deposit of Bond Proceeds. (a) The net proceeds received from the sale of the Series 2019A Bonds shall be deposited simultaneously with the delivery of the Series 2019A Bonds as follows: (1) All accrued interest and excess proceeds, if any, received from the sale of the Series 2019A Bonds, and an amount representing interest on the Series 2019A Bonds to and including the November 1, 2020 Interest Payment Date, shall be deposited in the Debt Service Account—Series 2019A Bonds. (2) An amount necessary to pay the Costs of Issuance on the Series 2019A Bonds shall be deposited in the Costs of Issuance Account. (3) The remaining balance of proceeds derived from the sale of the Series 2019A Bonds shall be deposited in the Improvement Fund. In addition to proceeds of the Series 2019A Bonds deposited in the Improvement Fund, the Issuer will apply the amount of special assessments pre-paid in cash for the Improvements, and any unspent Refunded Note proceeds to the redemption of Refunded Notes.
(b) The net proceeds received from the sale of the Series 2019B Bonds shall be deposited simultaneously with the delivery of the Series 2019B Bonds as follows: (1) All accrued interest and excess proceeds, if any, from the sale of the Series 2019B Bonds shall be deposited in the Debt Service Account—Series 2019B Bonds. (2) An amount necessary to pay the Costs of Issuance on the Series 2019B Bonds shall be deposited in the Costs of Issuance Account. (3) The remaining balance of the proceeds derived from the sale of the Series 2019B Bonds shall be deposited in the Redemption Fund. Application of Moneys in the Improvement Fund; Redemption of Refunded Notes. Moneys in the Improvement
C-7
Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements; and (b) paying the cost of retiring the Refunded Notes. Withdrawals from the Improvement Fund shall be made only when authorized by the governing body of the Issuer. Each authorization for costs of the Improvements shall be supported by a certificate executed by the Mayor (or designate) stating that such payment is being made for a purpose within the scope of the Bond Resolution and that the amount of such payment represents only the contract price of the property, equipment, labor, materials or service being paid for or, if such payment is not being made pursuant to an express contract, that such payment is not in excess of the reasonable value thereof. Authorizations for withdrawals for other authorized purposes shall be supported by a certificate executed by the Clerk (or designate) stating that such payment is being made for a purpose within the scope of the Bond Resolution. Moneys in the Improvement Fund shall be paid and transferred to the Refunded Notes Paying Agent, with irrevocable instructions to apply such amount to the payment of the Refunded Notes on the Refunded Notes Maturity Date. Any moneys remaining in the Improvement Fund not needed to retire the Refunded Notes or pay costs of the Improvements shall be transferred to the Debt Service Account-Series 2019A Bonds. Application of Moneys in the Debt Service Account. (a) All amounts paid and credited to the Debt Service Account—Series 2019A Bonds shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Series 2019A Bonds as and when the same become due and the usual and customary fees and expenses of the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account—Series 2019A Bonds sums sufficient to pay both principal or Redemption Price of and interest on the Series 2019A Bonds and the fees and expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Series 2019A Bonds are no longer entitled to enforce payment of the Series 2019A Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in the Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Series 2019A Bonds entitled to payment from such moneys.
(b) All amounts paid and credited to the Debt Service Account—Series 2019B Bonds shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Series 2019B Bonds as and when the same become due and the usual and customary fees and expenses of the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account—Series 2019B Bonds sums sufficient to pay both principal or Redemption Price of and interest on the Series 2019B Bonds and the fees and expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Series 2019B Bonds are no longer entitled to enforce payment of the Series 2019B Bonds or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in the Bond Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Series 2019B Bonds entitled to payment from such moneys. Any moneys or investments remaining in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and Interest Fund. Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after payment of all Costs of Issuance, but not later than the later of 30 days prior to the first Interest Payment Date, shall be apportioned and transferred to the respective Debt Service Accounts in amounts corresponding to the Series 2019A Bond and Series 2019B Bond proceeds deposited in the Cost of Issuance Account. Application of Moneys in the Redemption Fund. Moneys in the Redemption Fund shall be transferred to the Refunded Bonds Paying Agent and utilized to retire the Refunded Bonds on the Refunded Bonds Redemption Date. The Clerk is authorized and instructed to provide appropriate notice of redemption in accordance with the Refunded Bonds Resolution. Any moneys remaining in the Redemption Fund not needed to retire the Refunded Bonds shall be transferred to the Debt Service Account—Series 2019B.
C-8
DEPOSIT AND INVESTMENT OF MONEYS Deposits. Moneys in each of the Funds and Accounts shall be deposited in a bank, savings and loan association or savings bank which are members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law, and which meet certain guidelines of State law. All such deposits shall be held in cash or invested in Permitted Investments or shall be adequately secured as provided by the laws of the State. Investments. Moneys held in any Fund or Account other than the Redemption Fund may be invested in accordance with the Bond Resolution and the Federal Tax Certificate, in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account. DEFAULT AND REMEDIES Remedies. The provisions of the Bond Resolution, including the covenants and agreements herein contained, shall constitute a contract between the Issuer and the Owners of the Bonds. If an Event of Default occurs and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Bonds at the time Outstanding shall have the right for the equal benefit and protection of all Owners of Bonds similarly situated: (a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of the Bond Resolution or by the Constitution and laws of the State; (b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and employees to account as if they were the trustees of an express trust; and (c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Owners of the Bonds. Limitation on Rights of Owners. The covenants and agreements of the Issuer contained in the Bond Resolution and in the Bonds shall be for the equal benefit, protection, and security of the Owners of any or all of the Bonds, all of which Bonds of any series shall be of equal rank and without preference or priority of one Bond over any other Bond in the application of the Funds and Accounts pledged to the payment of the principal of and the interest on the Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in the Bond Resolution. No one or more Owners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for in the Bond Resolution, or to enforce any right, except in the manner provided in the Bond Resolution, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of such Outstanding Bonds. Remedies Cumulative. No remedy conferred upon the Owners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred. No waiver of any default or breach of duty or contract by the Owner of any Bond shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. Control of Remedies By Bond Insurer Upon an Event of Default and Event of Insolvency. Upon the occurrence and continuance of an Event of Default, the Bond Insurer, provided the Bond Insurance Policy is in full force and effect and the Bond Insurer shall not be in default thereunder, shall be entitled to control and direct the enforcement of all rights and remedies granted to the Owners under the Bond Resolution. Any reorganization or liquidation plan with respect to the Issuer must be acceptable to the Bond Insurer. In the event of any reorganization or liquidation, the Bond Insurer shall have the right to vote on behalf of all Owners who hold the Series 2019B Bonds insured by the Bond Insurer absent a default by the Bond Insurer under the applicable Bond Insurance Policy insuring such Series 2019B Bonds. DEFEASANCE When any or all of the Bonds, redemption premium, if any, or scheduled interest payments thereon have been paid and discharged, then the requirements contained in the Bond Resolution and all other rights granted thereby shall terminate with respect to the Bonds or scheduled interest payments thereon so paid and discharged. Bonds, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and discharged within the meaning of the Bond Resolution if there has been deposited with the Paying Agent, or other commercial bank or trust company located in the
C-9
State and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Bonds or the interest payments thereon, in trust for and irrevocably appropriated thereto, moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance Obligations, will be sufficient for the payment of the principal or Redemption Price of said Bonds and/or interest accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any Bonds, no such satisfaction shall occur until: (a) the Issuer has elected to redeem such Bonds, and (b) either notice of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an escrow agent to give irrevocable instructions, to the Bond Registrar to give such notice of redemption. The Issuer shall notify the Bond Insurer of any defeasance of the Series 2019B Bonds.
Notwithstanding anything in the Bond Resolution to the contrary, in the event that the principal and/or interest due on the Series 2019B Bonds shall be paid by the Bond Insurer pursuant to the Bond Insurance Policy, the Series 2019B Bonds shall remain Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the Issuer and the covenants, agreements and other obligations of the Issuer to the Owners of the Series 2019B Bonds shall continue to exist and shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of such Owners. TAX COVENANTS General Covenants. The Issuer covenants and agrees that it will comply with all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds and it will not use or permit the use of any proceeds of Series 2019A Bonds or any other funds of the Issuer, will not take or permit any other action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of the interest on the Series 2019A Bonds. The Issuer covenants and agrees that it will not use any portion of the proceeds of the Series 2019A Bonds, including any investment income earned on such proceeds, directly or indirectly, in a manner that would cause any Series 2019A Bond to be a "private activity bond" within the meaning of Code § 141(a), or to make or finance a loan to any Person other than the State or a political subdivision thereof. Rebate Covenants. The Issuer covenants and agrees that it will pay or provide for the payment from time to time all amounts required to be rebated to the United States pursuant to the Code and the Federal Tax Certificate. CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements. The Issuer covenants in the Bond Resolution with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking and to make the provisions of the Disclosure Undertaking applicable to the Bonds. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its continuing disclosure covenants contained in the Bond Resolution, the Purchaser and/or any Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits in equity for the specific performance of such covenant or agreement or for the enforcement of any other appropriate legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce any of the duties of the Issuer under such preceding section. The Purchaser or Beneficial Owner shall provide a copy of any such demand or notice to the Bond Insurer. Notwithstanding any other provision of the Bond Resolution, failure of the Issuer to comply with its continuing disclosure covenants contained in the Bond Resolution shall not be considered an Event of Default under the Bond Resolution. PROVISIONS RELATING TO THE BOND INSURANCE POLICY Payment Procedure Pursuant to Bond Insurance Policy. As long as the Bond Insurance Policy shall be in full force and effect, the Issuer and the Paying Agent agree to comply with the following provisions: (a) In the event that principal and/or interest due on the Series 2019B Bonds shall be paid by the Bond Insurer pursuant to the Bond Insurance Policy, the Series 2019B Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the Issuer, the assignment and pledge of the trust estate and all covenants, agreements and other obligations of the Issuer to the registered owners shall continue to exist and shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of such registered owners including, without limitation, any rights that such owners may have in respect of securities law violations arising from the offer and sale of the Series 2019B Bonds.
C-10
(b) In the event that on the second (2nd) business day prior to the payment date on the Series 2019B Bonds, the Paying Agent has not received sufficient moneys to pay all principal of and interest on the Series 2019B Bonds due on the second (2nd) following business day, the Paying Agent shall immediately notify the Bond Insurer or its designee on the same business day by telephone or electronic mail, of the amount of the deficiency.
(c) If any deficiency is made up in whole or in part prior to or on the payment date, the Paying Agent or
Trustee shall so notify the Bond Insurer or its designee.
(d) In addition, if the Paying Agent has notice that any Series 2019B Bondholder has been required to disgorge payments of principal of or interest on the Series 2019B Bonds pursuant to a final, non-appealable order by a court of competent jurisdiction that such payment constitutes an avoidable preference to such Series 2019B Bondholder within the meaning of any applicable bankruptcy law, then the Paying Agent shall notify the Bond Insurer or its designee of such fact by telephone or electronic mail, or by overnight or other delivery service as to which a delivery receipt is signed by a person authorized to accept delivery on behalf of the Bond Insurer.
(e) The Paying Agent shall irrevocably be designated, appointed, directed and authorized to act as attorney-in-fact for holders of the Series 2019B Bonds as follows:
(1) If there is a deficiency in amounts required to pay interest and/or principal on the Series 2019B
Bonds, the Paying Agent or Trustee shall (i) execute and deliver to the Bond Insurer, in form satisfactory to the Bond Insurer, an instrument appointing the Bond Insurer as agent for such holders of the Series 2019B Bonds in any legal proceeding related to the payment of and an assignment to the Bond Insurer of the claims for interest on the Series 2019B Bonds, (ii) receive as designee of the respective holders (and not as Paying Agent) in accordance with the tenor of the Bond Insurance Policy payment from the Bond Insurer with respect to the claims for interest so assigned, and (iii) disburse the same to such respective holders; and
(2) If there is a deficiency in amounts required to pay principal of the Series 2019B Bonds, the Paying Agent shall (i) execute and deliver to the Bond Insurer, in form satisfactory to the Bond Insurer, an instrument appointing the Bond Insurer as agent for such holder of the Series 2019B Bonds in any legal proceeding related to the payment of such principal and an assignment to the Bond Insurer of the Series 2019B Bond surrendered to the Bond Insurer (but such assignment shall be delivered only if payment from the Bond Insurer is received), (ii) receive as designee of the respective holders (and not as Paying Agent) in accordance with the tenor of the Bond Insurance Policy payment therefore from the Bond Insurer, and (iii) disburse the same to such holders. (f) Payments with respect to claims for interest on and principal of Series 2019B Bonds disbursed by the
Paying Agent from proceeds of the Bond Insurance Policy shall not be considered to discharge the obligation of the Issuer with respect to such Series 2019B Bonds, and the Bond Insurer shall become the owner of such unpaid Series 2019B Bond and claims for the interest in accordance with the tenor of the assignment made to it under the provisions of the preceding paragraph (e) or otherwise.
(g) Irrespective of whether any such assignment is executed and delivered, the Issuer and the Paying Agent shall agree for the benefit of the Bond Insurer that:
(1) They recognize that to the extent the Bond Insurer makes payments directly or indirectly (e.g., by paying through the Paying Agent), on account of principal of or interest on the Series 2019B Bonds, the Bond Insurer will be subrogated to the rights of such holders to receive the amount of such principal and interest from the Issuer, with interest thereon, as provided and solely from the sources stated in the transaction documents and the Series 2019B Bonds; and
(2) They will accordingly pay to the Bond Insurer the amount of such principal and interest, with interest thereon as provided in the transaction documents and the Series 2019B Bonds, but only from the sources and in the manner provided therein for the payment of principal of and interest on the Series 2019B Bonds to holders, and will otherwise treat the Bond Insurer as the owner of such rights to the amount of such principal and interest.
Notices to the Bond Insurer. (a) While the Bond Insurance Policy is in effect, the Issuer shall, in addition to the other notice requirements contained in the Bond Resolution, furnish to the Bond Insurer:
(1) As soon as practicable after the filing thereof, a copy of any financial statement, audit and/or annual report of the Issuer;
C-11
(2) A copy of any notice to be given to the Owners, including, without limitation, notice of any redemption of or defeasance of Series 2019B Bonds, and any certificate rendered pursuant to this Bond Resolution relating to the security for the Series 2019B Bonds;
(3) Copies of any filings or notices required to be given by the Issuer pursuant to the Disclosure Undertaking;
(4) Notice of an Event of Default within five business days after the occurrence of such event; and (5) Such additional information as the Bond Insurer may reasonably request.
(b) The Issuer shall notify the Bond Insurer of any failure of the Issuer to provide relevant notices, certificates, etc. (c) Notwithstanding any other provision of this Bond Resolution, the Issuer shall immediately notify the Bond Insurer if at any time there are insufficient moneys to make any payments of principal and/or interest as required and immediately upon the occurrence of any Event of Default hereunder. Suspension of Bond Insurer's Rights. Rights of the Bond Insurer to direct or consent to actions granted under this Bond Resolution shall be suspended during any period in which the Bond Insurer is in default in its payment obligations under the Bond Insurance Policy (except to the extent of amounts previously paid by the Bond Insurer and due and owing to the Bond Insurer) and shall be of no force or effect in the event the Bond Insurance Policy is no longer in effect or the Bond Insurer asserts that the Bond Insurance Policy is not in effect or the Bond Insurer shall have provided written notice that it waives such rights. MISCELLANEOUS PROVISIONS Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such annual audit, a copy thereof shall be filed in the office of the Clerk, and a duplicate copy of the audit shall be mailed to the Purchaser of the Bonds and to the Bond Insurer. Such audits shall at all times during the usual business hours be open to the examination and inspection by any Owner of any of the Bonds, or by anyone acting for or on behalf of such user or Owner. Levy and Collection of Annual Tax. The governing body of the Issuer shall annually make provision for the payment of Debt Service Requirements on the Bonds as the same become due by levying and collecting the necessary taxes and/or assessments upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes and/or assessments referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be deposited in the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Bonds or of the Bond Resolution, may be amended or modified at any time in any respect by resolution of the Issuer with the written consent of the Bond Insurer and the Owners of not less than a majority in principal amount of the Bonds then Outstanding, such consent to be evidenced by an instrument or instruments executed by the Bond Insurer and such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Bond; (c) permit preference or priority of any Bond over any other Bond; or (d) reduce the percentage in principal amount of Bonds required for the written consent to any modification or alteration of the provisions of the Bond Resolution. Any provision of the Bonds or of the Bond Resolution may, however, be amended or modified by resolution duly adopted by the governing body of the Issuer at any time in any legal respect with the written consent of the Bond Insurer and the Owners of all of the Bonds at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement the Bond Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity, to grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more
C-12
precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to provide for Substitute Improvements, to conform the Bond Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Notices, Consents and Other Instruments by Owners. Any notice, request, complaint, demand or other communication required or desired to be given or filed under the Bond Resolution shall be in writing, and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be given to the Paying Agent and the Bond Insurer. The Issuer, the Paying Agent, the Bond Insurer and the Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. All notices given by: (a) certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of confirmation of receipt. If, because of the temporary or permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice. Electronic Transactions. The issuance of the Bonds and the transactions related thereto and described herein may be conducted and documents may be stored by electronic means. Severability. If any section or other part of the Bond Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of the Bond Resolution. Governing Law. The Bonds and the Bond Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
C-13
THE NOTE RESOLUTION
DEFINITIONS In addition to words and terms defined elsewhere in this Official Statement, the following words and terms as used herein shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. “Act” means the Constitution and statutes of the State of Kansas including K.S.A. 10-101 to 10-125, inclusive (specifically including K.S.A. 10-123), K.S.A. 10-620 et seq., and K.S.A. 12-6a01 et seq, as amended and supplemented. “Authorized Denomination” means $5,000 or any integral multiples thereof. “Beneficial Owner” of the Notes includes any Owner of the Notes and any other Person who, directly or indirectly has the investment power with respect to such Notes. “Bond and Interest Fund” means the Bond and Interest Fund of the Issuer for its general obligation bonds. “Bond Counsel” means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally recognized and acceptable to the Issuer. “Business Day” means a day other than a Saturday, Sunday or any day designated as a holiday by the Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its operations. “Cede & Co.” means Cede & Co., as nominee of DTC and any successor nominee of DTC with respect to the Notes. “City“ means the City of Bel Aire, Kansas. “Clerk” means the duly appointed and acting Clerk of the Issuer or, in the Clerk's absence, the duly appointed Deputy, Assistant or Acting Clerk of the Issuer. “Code” means the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder of the United States Department of the Treasury. “Consulting Engineer” means an independent engineer or engineering firm, or architect or architectural firm, having a favorable reputation for skill and experience in the construction, financing and operation of public facilities, at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Consulting Engineer by the Note Resolution. “Costs of Issuance” means all costs of issuing the Notes, including but not limited to all publication, printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with the Code, and all expenses incurred in connection with receiving ratings on the Notes. “Costs of Issuance Account” means the account by that name created by the Note Resolution. “Dated Date” means November 21, 2019. “Debt Service Account” means the account by that name (within the Bond and Interest Fund) created by the Note Resolution. “Debt Service Requirements” means the aggregate principal payments (whether at maturity or pursuant to scheduled mandatory sinking fund redemption requirements) and interest payments on the Notes for the period of time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying Agent or other commercial bank or trust company located in the State and having full trust powers.
C-14
“Defaulted Interest” means interest on any Note which is payable but not paid on any Interest Payment Date. “Defeasance Obligations” means any of the following obligations: (a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or (b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions: (1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions; (2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations; (3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations; (4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust; (5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and
(6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no lower than the
rating category then assigned by that Rating Agency to United States Government Obligations. “Derivative” means any investment instrument whose market price is derived from the fluctuating value of an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage obligations. “Director of Finance” means the duly appointed and acting Director of Finance and Administration of the Issuer or, in the Director's absence, the duly appointed Deputy, Assistant or Acting Director of Finance and Administration of the Issuer. “Disclosure Undertaking” means the Continuing Disclosure Undertaking dated as of the Issue Date, attached to the Issuer's Closing Certificate for the Notes relating to certain obligations contained in the SEC Rule. “DTC” means The Depository Trust Company. “Event of Default” means each of the following occurrences or events:
(a) Payment of the principal and of the redemption premium, if any, of any of the Notes shall not be made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or otherwise;
(b) Payment of any installment of interest on any of the Notes shall not be made when the same shall become due; or
(c) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Notes or in the Note Resolution (other than the covenants relating to continuing disclosure contained in the Note Resolution or the Disclosure Undertaking) on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Notes then Outstanding. “Federal Tax Certificate” means the Issuer's Federal Tax Certificate for the Notes, dated as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof. “Fiscal Year” means the twelve month period ending on December 31.
C-15
“Financeable Costs” means the amount of expenditure for an Improvement which has been duly authorized by action of the governing body of the Issuer to be financed by general obligation bonds, less: (a) the amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under State or federal law. “Fitch” means Fitch Ratings, a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. “Funds and Accounts” means funds and accounts created by or referred to in the Note Resolution. “Improvement Fund” means the fund by that name created in the Note Resolution. “Improvements” means the improvements referred to in the preamble to the Note Resolution and any Substitute Improvements. “Independent Accountant” means an independent certified public accountant or firm of independent certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Independent Accountant by the Note Resolution. “Interest Payment Date(s)” means the Stated Maturity of an installment of interest on any Note which, for the Notes, shall be June 1 and December 1 of each year, commencing June 1, 2020. “Issue Date” means the date when the Issuer delivers the Notes to the Purchaser in exchange for the Purchase Price. “Issuer” means the City and any successors or assigns. “Maturity” when used with respect to any Note means the date on which the principal of such Note becomes due and payable as therein and in the Note Resolution provided, whether at the Stated Maturity thereof or call for redemption or otherwise. “Mayor“ means the duly elected and acting Mayor, or in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the Issuer. “Moody's” means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Moody's” shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. “Note Payment Date” means any date on which principal of or interest on any Note is payable. “Note Register” means the books for the registration, transfer and exchange of Notes kept at the office of the Note Registrar. “Note Registrar” means the State Treasurer, Topeka, Kansas, and its successors and assigns. “Note Resolution” means the resolution adopted by the governing body of the Issuer authorizing the issuance of the Notes, as amended from time to time. “Notes” means the General Obligation Temporary Notes, Series 2019C, authorized and issued by the Issuer pursuant to the Note Resolution. “Official Statement” means the Issuer’s Official Statement relating to the Notes. “Outstanding” means, when used with reference to the Notes, as of a particular date of determination, all Notes theretofore, authenticated and delivered, except the following Notes:
(a) Notes theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation;
C-16
(b) Notes deemed to be paid in accordance with the provisions of the Note Resolution; and
(c) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered hereunder. “Owner” when used with respect to any Note means the Person in whose name such Note is registered on the Note Register. Whenever consent of the Owners is required pursuant to the terms of this Note Resolution, and the Owner of the Notes, as set forth on the Note Register, is Cede & Co., the term Owner shall be deemed to be the Beneficial Owner of the Notes. “Participants” means those financial institutions for whom the Securities Depository effects book-entry transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at the time of such reference. “Paying Agent” means the State Treasurer, Topeka, Kansas, and any successors and assigns. “Permitted Investments” shall mean the investments hereinafter described, provided, however, no moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c) direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage association, federal home loan banks, federal home loan mortgage corporation or government national mortgage association; (g) repurchase agreements for securities described in (c) or (f); (h) investment agreements or other obligations of a financial institution the obligations of which at the time of investment are rated in either of the three highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); (j) receipts evidencing ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the municipality issuing the same; or (l) bonds of any municipality of the State as defined in K.S.A. 10-1101 which have been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), all as may be further restricted or modified by amendments to applicable State law. “Person” means any natural person, corporation, partnership, joint venture, association, firm, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body. “Purchaser” means the financial institution or investment banking firm that is original purchaser of the Notes. “Rating Agency” means any company, agency or entity that provides ratings for the Notes. “Record Dates” for the interest payable on any Interest Payment Date means the fifteenth day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date. “Redemption Date” when used with respect to any Note to be redeemed means the date fixed for the redemption of such Note pursuant to the terms of the Note Resolution. “Redemption Price” when used with respect to any Note to be redeemed means the price at which such Note is to be redeemed pursuant to the terms of the Note Resolution, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date. “Replacement Notes” means Notes issued to the Beneficial Owners of the Notes in accordance with the Note Resolution. “SEC Rule” means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. “Securities Depository” means, initially, The Depository Trust Company, New York, New York, and its successors and assigns. “Series 2018A Notes” means the City's General Obligation Temporary Notes, Series 2018A, dated November 21, 2018.
C-17
“Special Record Date” means the date fixed by the Paying Agent for the payment of Defaulted Interest. “Standard & Poor's” means S&P Global Ratings, a division of S&P Global Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency designated by the Issuer. “State” means the state of Kansas. “State Treasurer” means the duly elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the State. “Stated Maturity” when used with respect to any Note or any installment of interest thereon means the date specified in such Note and the Note Resolution as the fixed date on which the principal of such Note or such installment of interest is due and payable. “Substitute Improvements” means the substitute or additional improvements of the Issuer described in the Note Resolution. “Treasurer” means the duly appointed and/or elected Treasurer or, in the Treasurer's absence, the duly appointed Deputy Treasurer or acting Treasurer of the Issuer. “United States Government Obligations” means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences of a direct ownership interest in future interest or principal payment on obligations issued by the United States of America (including the interest component of obligations of the Resolution Funding Corporation), or securities which represent an undivided interest in such obligations, which obligations are rated in the highest rating category by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the Issuer. ESTABLISHMENT OF FUNDS AND ACCOUNTS; DEPOSIT AND APPLICATION OF NOTE PROCEEDS Creation of Funds and Accounts. Simultaneously with the issuance of the Notes, there shall be created within the Treasury of the Issuer the following Funds and Accounts:
(a) Improvement Fund. (b) Debt Service Account.
(c) Costs of Issuance Account. The above Funds and Accounts shall be administered in accordance with the provisions of the Note Resolution so long as the Notes are Outstanding. Deposit of Note Proceeds. The net proceeds received from the sale of the Notes shall be deposited simultaneously with the delivery of the Notes as follows: (1) All accrued interest and excess proceeds, if any, received from the sale of the Notes shall be deposited in the Debt Service Account. (2) An amount necessary to pay the Costs of Issuance on the Notes shall be deposited in the Costs of Issuance Account. (3) The remaining balance of the proceeds derived from the sale of the Notes shall be deposited in the Improvement Fund. Application of Moneys in the Improvement Fund. Moneys in the Improvement Fund shall be used for the sole purpose of: (a) paying the costs of the Improvements, in accordance with the plans and specifications therefor prepared by the Consulting Engineer heretofore approved by the governing body of the Issuer and on file in the office of the Clerk, including any alterations in or amendments to said plans and specifications deemed advisable by the Consulting Engineer and approved by the governing body of the Issuer; (b) paying interest on the Notes and (c) refund and renew the Refunded Notes.
C-18
Withdrawals from the Improvement Fund shall be made only when authorized by the governing body of the Issuer and only on duly authorized and executed warrants therefor accompanied by a certificate executed by the Mayor (or designate) that such payment is being made for a purpose within the scope of this Note Resolution and that the amount of such payment represents only the contract price of the property, equipment, labor, materials or service being paid for or, if such payment is not being made pursuant to an express contract, that such payment is not in excess of the reasonable value thereof. Authorizations for withdrawals for other authorized purposes shall be supported by a certificate executed by the Mayor (or designate) stating that such payment is being made for a purpose within the scope of this Note Resolution. Upon completion of the Improvements and redemption of the Refunded Notes, amounts remaining in the Improvement Fund shall be deposited in the Debt Service Account. Substitution of Improvements; Reallocation of Proceeds. The Issuer may elect for any reason to substitute or add other public improvements to be financed with proceeds of the Notes provided the following conditions are met: (a) the Substitute Improvement and the issuance of general obligation bonds to pay the cost of the Substitute Improvement has been duly authorized by the governing body of the Issuer in accordance with the laws of the State; (b) a resolution authorizing the use of the proceeds of the Notes to pay the Financeable Costs of the Substitute Improvement has been duly adopted by the governing body of the Issuer pursuant to this Section, (c) the Attorney General of the State has approved the amendment made by such resolution to the transcript of proceedings for the Notes to include the Substitute Improvements; and (d) the use of the proceeds of the Notes to pay the Financeable Cost of the Substitute Improvement will not adversely affect the tax-exempt status of the Notes under State or federal law. The Issuer may reallocate expenditure of Note proceeds among all Improvements financed by the Notes; provided the following conditions are met: (a) the reallocation is approved by the governing body of the Issuer; (b) the reallocation shall not cause the proceeds of the Notes allocated to any Improvement to exceed the Financeable Costs of the Improvement; and (c) the reallocation will not adversely affect the tax-exempt status of the Notes under State or federal law. Application of Moneys in the Debt Service Account. All amounts paid and credited to the Debt Service Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price of and interest on the Notes as and when the same become due and the usual and customary fees and expenses of the Note Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service Account sums sufficient to pay both principal or Redemption Price of and interest on the Notes and the fees and expenses of the Note Registrar and Paying Agent as and when the same become due, and to forward such sums to the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Notes are no longer entitled to enforce payment of the Notes or the interest thereon, the Paying Agent shall return said funds to the Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in the Note Resolution and shall be held in trust by the Paying Agent for the benefit of the Owners of the Notes entitled to payment from such moneys. Any moneys or investments remaining in the Debt Service Account after the retirement of the indebtedness for which the Notes were issued shall be transferred and paid into the Bond and Interest Fund. Payments Due on Saturdays, Sundays and Holidays. In any case where a Note Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Note Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Note Payment Date, and no interest shall accrue for the period after such Note Payment Date. Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after payment of all Costs of Issuance, but not later than 30 days prior to the first Interest Payment Date, shall be transferred to the Debt Service Account. DEPOSIT AND INVESTMENT OF MONEYS Deposits. Moneys in each of the Funds and Accounts shall be deposited in a bank, savings and loan association or savings bank which are members of the Federal Deposit Insurance Corporation, or otherwise as permitted by State law, and which meet certain guidelines of State law. All such deposits shall be held in cash or invested in Permitted Investments or shall be adequately secured as provided by the laws of the State. Investments. Moneys held in any Fund or Account may be invested in accordance with the Note Resolution and the Federal Tax Certificate, in Permitted Investments; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund was created.
C-19
All earnings on any investments held in any Fund or Account shall accrue to and become a part of such Fund or Account; provided that, during the period of construction of the Improvements, earnings on the investment of such funds shall be credited to the Debt Service Account. DEFAULT AND REMEDIES Remedies. The provisions of the Note Resolution, including the covenants and agreements herein contained, shall constitute a contract between the Issuer and the Owners of the Notes. If an Event of Default occurs and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Notes at the time Outstanding shall have the right for the equal benefit and protection of all Owners of Notes similarly situated: (a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of the Note Resolution or by the Constitution and laws of the State; (b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and employees to account as if they were the trustees of an express trust; and
(b) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Owners of the Notes.
Limitation on Rights of Owners. The covenants and agreements of the Issuer contained in the Note Resolution and in the Notes shall be for the equal benefit, protection, and security of the Owners of any or all of the Notes, all of which Notes of any series shall be of equal rank and without preference or priority of one Note over any other Note in the application of the Funds and Accounts pledged to the payment of the principal of and the interest on the Notes, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in the Note Resolution. No one or more Owners secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for in the Note Resolution, or to enforce any right, except in the manner provided in the Note Resolution, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of such Outstanding Notes. Remedies Cumulative. No remedy conferred upon the Owners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred. No waiver of any default or breach of duty or contract by the Owner of any Note shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. DEFEASANCE When any or all of the Notes, redemption premium, if any, or scheduled interest payments thereon have been paid and discharged, then the requirements contained in the Note Resolution and all other rights granted thereby shall terminate with respect to the Notes or scheduled interest payments thereon so paid and discharged. Notes, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and discharged within the meaning of the Note Resolution if there has been deposited with the Paying Agent, or other commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity or Redemption Date of said Notes or the interest payments thereon, in trust for and irrevocably appropriated thereto, moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance Obligations, will be sufficient for the payment of the principal or Redemption Price of said Notes and/or interest accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any Notes, no such satisfaction shall occur until: (a) the Issuer has elected to redeem such Notes, and (b) either notice of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an escrow agent to give irrevocable instructions, to the Note Registrar to give such notice of redemption.
C-20
TAX COVENANTS General Covenants. The Issuer covenants and agrees that: it will comply with: (a) all applicable provisions of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on the Notes; and (b) all provisions and requirements of the Federal Tax Certificate. The Issuer will, in addition, adopt such other ordinances or resolutions and take such other actions as may be necessary to comply with the Code and with all other applicable future laws, regulations, published rulings and judicial decisions, in order to ensure that the interest on the Notes will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer. Survival of Covenants. The covenants contained in the Note Resolution and in the Federal Tax Certificate shall remain in full force and effect notwithstanding the defeasance of the Notes pursuant to the Note Resolution or any other provision thereof until such time as is set forth in the Federal Tax Certificate CONTINUING DISCLOSURE REQUIREMENTS Disclosure Requirements. The Issuer covenants in the Note Resolution with the Purchaser and the Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set forth in the Disclosure Undertaking and to make the provisions of the Disclosure Undertaking applicable to the Notes. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners. Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a timely manner with its covenants contained in the Note Resolution, the Purchaser and/or any Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits in equity for the specific performance of such covenant or agreement or for the enforcement of any other appropriate legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce any of the duties of the Issuer under such preceding section. MISCELLANEOUS PROVISIONS Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within 30 days after the completion of each such annual audit, a copy thereof shall be filed in the office of the Clerk, and a duplicate copy of the audit shall be mailed to the Purchaser of the Notes. Such audits shall at all times during the usual business hours be open to the examination and inspection by any Owner of any of the Notes, or by anyone acting for or on behalf of such user or Owner. Levy and Collection of Annual Tax. The governing body of the Issuer shall annually make provision for the payment of Debt Service Requirements on the Notes as the same become due by levying and collecting the necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the Issuer shall thereafter be deposited in the Debt Service Account and shall be used solely for the payment of the principal of and interest on the Notes as and when the same become due, taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any time said taxes are not collected in time to pay the principal of or interest on the Notes when due, the Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to reimburse said general funds for money so expended when said taxes are collected. Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the Notes or of the Note Resolution, may be amended or modified at any time in any respect by resolution of the Issuer with the written consent of the Owners of not less than a majority in principal amount of the Notes then Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or interest due upon any Note; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or interest on any Note;
C-21
(c) permit preference or priority of any Note over any other Note; or (d) reduce the percentage in principal amount of Notes required for the written consent to any modification or alteration of the provisions of the Note Resolution. Any provision of the Notes or of the Note Resolution may, however, be amended or modified by resolution duly adopted by the governing body of the Issuer at any time in any legal respect with the written consent of the Owners of all of the Notes at the time Outstanding. Without notice to or the consent of any Owners, the Issuer may amend or supplement the Note Resolution for the purpose of curing any formal defect, omission, inconsistency or ambiguity, to grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners, to more precisely identify the Improvements, to reallocate proceeds of the Notes among Improvements, to provide for Substitute Improvements, to conform the Note Resolution to the Code or future applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is not materially adverse to the interests of the Owners. Notices, Consents and Other Instruments by Owners. Any notice, request, complaint, demand or other communication required or desired to be given or filed under the Note Resolution shall be in writing, and shall be deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or (b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be given to the Paying Agent. The Issuer, the Paying Agent and the Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or other communications shall be sent. All notices given by: (a) certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of confirmation of receipt. If, because of the temporary or permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice.
Electronic Transaction. The issuance of the Notes and the transactions related thereto and described herein may be conducted and documents may be stored by electronic means. Severability. If any section or other part of the Note Resolution, whether large or small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other provisions of the Note Resolution. Governing Law. The Notes and the Note Resolution shall be governed exclusively by and construed in accordance with the applicable laws of the State.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
Gilmore & Bell, P.C. 10/23/2019
__________________________________________
CCONTINUING DISCLOSURE UNDERTAKING
DATED AS OF NOVEMBER 21, 2019
BY
CITY OF BEL AIRE, KANSAS
____________________________________
$6,060,000 GENERAL OBLIGATION BONDS
SERIES 2019A
$1,430,000 TAXABLE GENERAL OBLIGATION
REFUNDING BONDS SERIES 2019B
DATED NOVEMBER 21, 2019
____________________________________
CONTINUING DISCLOSURE UNDERTAKING This CONTINUING DISCLOSURE UNDERTAKING dated as of November 21, 2019 (the “Continuing Disclosure Undertaking”), is executed and delivered by CITY OF BEL AIRE, KANSAS (the “Issuer”).
RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance by the Issuer of its General Obligation Bonds, Series 2019A (the “Series 2019A Bonds”) and Taxable General Obligation Refunding Bonds, Series 2019B (the “Series 2019B Bonds”, and, jointly the “Bonds”), pursuant to an Ordinance and Resolution adopted by the governing body of the Issuer (collectively the “Bond Resolution”). 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”). The Issuer is the only “obligated person” with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Bond Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's CAFR, so long as the CAFR contains the financial information and operating data described in Section 2(a)(1) and (2). “Beneficial Owner” means any registered owner of any Bonds and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. “Business Day” means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or (c) a day on which the Securities Depository or the New York Stock Exchange is closed. “CAFR” means the Issuer's Comprehensive Annual Financial Report, if any. “Dissemination Agent” means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. “EMMA” means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. “Financial Obligation” means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation;
2
or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Fiscal Year” means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. “GAAP” means generally accepted accounting principles, as applied to governmental units, as in effect at the time of the preparation of the financial information described in Section 2(a)(1). “Material Events” means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. “MSRB” means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. “Participating Underwriter” means any of the original underwriter(s) of the Bonds required to comply with the Rule in connection with the offering of the Bonds. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than the last day of the eighth month after the end of the Issuer’s Fiscal Year, commencing with the year ending December 31, 2019, file with the MSRB, through EMMA, the following financial information and operating data (the “Annual Report”):
(1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared in accordance with GAAP on a modified accrual basis of accounting. A more detailed explanation of the accounting basis is contained in the Official Statement relating to the Bonds. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain summary unaudited financial information, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available.
(2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Bonds, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer.
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an “obligated person” (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer’s Fiscal Year changes, it shall give notice of such change in the same
3
manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become the last day of the eighth month after the end of the Issuer’s new fiscal year. (b) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Bonds (“Material Events”): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds;
(7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated
person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
(14) appointment of a successor or additional trustee or the change of name of the trustee, if material;
(15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and
(16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
If the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer’s obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If the Issuer’s obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final
4
maturity of the Bonds, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Bond Resolution or the Bonds, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance.
5
Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Bond Resolution or the Bonds shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
(Signature Page to Disclosure Undertaking)
IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF BEL AIRE, KANSAS (SEAL)
Mayor
Clerk
A-1
EXHIBIT A
FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT
The financial information and operating data contained in tables in the following sections contained in Appendix A of the final Official Statement relating to the Bonds:
Operating Data ·CITY PROPERTY VALUES ·CITY TAX RATES, LEVIES AND COLLECTIONS ·CITY INDEBTEDNESS*
* This Operating Data is also available in the Issuer’s financial information portion of its Annual Report.
Gilmore & Bell, P.C. 10/23/2019
__________________________________________
CCONTINUING DISCLOSURE UNDERTAKING
DATED AS OF NOVEMBER 21, 2019
BY
CITY OF BEL AIRE, KANSAS
____________________________________
$2,860,000 CITY OF BEL AIRE, KANSAS
GENERAL OBLIGATION TEMPORARY IMPROVEMENT AND RENEWAL NOTES SERIES 2109C
DATED NOVEMBER 21, 2019
____________________________________
CONTINUING DISCLOSURE UNDERTAKING This CONTINUING DISCLOSURE UNDERTAKING dated as of November 21, 2019 (the “Continuing Disclosure Undertaking”), is executed and delivered by CITY OF BEL AIRE, KANSAS (the “Issuer”).
RECITALS 1. This Continuing Disclosure Undertaking is executed and delivered by the Issuer in connection with the issuance by the Issuer of its General Obligation Temporary Improvement and Renewal Notes (the “Notes”), pursuant to a Resolution adopted by the governing body of the Issuer (the “Note Resolution”). 2. The Issuer is entering into this Continuing Disclosure Undertaking for the benefit of the Beneficial Owners of the Notes and in order to assist the Participating Underwriter in complying with Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “Rule”). The Issuer is the only “obligated person” with responsibility for continuing disclosure hereunder. The Issuer covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Note Resolution, which apply to any capitalized term used in this Continuing Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the Issuer pursuant to, and as described in, Section 2 of this Continuing Disclosure Undertaking, which may include the Issuer's CAFR, so long as the CAFR contains the financial information and operating data described in Section 2(a)(1) and (2). “Beneficial Owner” means any registered owner of any Notes and any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Notes (including persons holding Notes through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Notes for federal income tax purposes. “Business Day” means a day other than (a) a Saturday, Sunday or legal holiday, (b) a day on which banks located in any city in which the principal office or designated payment office of the paying agent or the Dissemination Agent is located are required or authorized by law to remain closed, or (c) a day on which the Securities Depository or the New York Stock Exchange is closed. “CAFR” means the Issuer's Comprehensive Annual Financial Report, if any. “Dissemination Agent” means any entity designated in writing by the Issuer to serve as dissemination agent pursuant to this Continuing Disclosure Undertaking and which has filed with the Issuer a written acceptance of such designation. “EMMA” means the Electronic Municipal Market Access system for municipal securities disclosures established and maintained by the MSRB, which can be accessed at www.emma.msrb.org. “Financial Obligation” means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b) in this definition; provided however, the term Financial Obligation shall not
2
include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Fiscal Year” means the 12-month period beginning on January 1 and ending on December 31 or any other 12-month period selected by the Issuer as the Fiscal Year of the Issuer for financial reporting purposes. “GAAP” means generally accepted accounting principles, as applied to governmental units, as in effect at the time of the preparation of the financial information described in Section 2(a)(1). “Material Events” means any of the events listed in Section 3 of this Continuing Disclosure Undertaking. “MSRB” means the Municipal Securities Rulemaking Board, or any successor repository designated as such by the Securities and Exchange Commission in accordance with the Rule. “Participating Underwriter” means any of the original underwriter(s) of the Notes required to comply with the Rule in connection with the offering of the Notes. Section 2. Provision of Annual Reports. (a) The Issuer shall, not later than the last day of the eighth month after the end of the Issuer’s Fiscal Year, commencing with the year ending December 31, 2019, file with the MSRB, through EMMA, the following financial information and operating data (the “Annual Report”):
(1) The audited financial statements of the Issuer for the prior Fiscal Year, prepared in accordance with GAAP on a modified accrual basis of accounting. A more detailed explanation of the accounting basis is contained in the Official Statement relating to the Notes. If audited financial statements are not available by the time the Annual Report is required to be provided pursuant to this Section, the Annual Report shall contain summary unaudited financial information, and the audited financial statements shall be provided in the same manner as the Annual Report promptly after they become available.
(2) Updates as of the end of the Fiscal Year of certain financial information and operating data contained in the final Official Statement related to the Notes, as described in Exhibit A, in substantially the same format contained in the final Official Statement with such adjustments to formatting or presentation determined to be reasonable by the Issuer.
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the Issuer is an “obligated person” (as defined by the Rule), which have been provided to the MSRB and are available through EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB on EMMA. The Issuer shall clearly identify each such other document so included by reference. In each case, the Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Section; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the Issuer’s Fiscal Year changes, it shall give notice of such change in the same
3
manner as for a Material Event under Section 3, and the Annual Report deadline provided above shall automatically become the last day of the eighth month after the end of the Issuer’s new fiscal year. (b) The Annual Report shall be filed with the MSRB in such manner and format as is prescribed by the MSRB. Section 3. Reporting of Material Events. Not later than 10 Business Days after the occurrence of any of the following events, the Issuer shall give, or cause to be given to the MSRB, through EMMA, notice of the occurrence of any of the following events with respect to the Notes (“Material Events”): (1) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Notes, or other material events affecting the tax status of the Notes;
(7) modifications to rights of bondholders, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of property securing repayment of the Notes, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the obligated person; (13) the consummation of a merger, consolidation, or acquisition involving the obligated
person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
(14) appointment of a successor or additional trustee or the change of name of the trustee, if material;
(15) incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and
(16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
If the Issuer has not submitted the Annual Report to the MSRB by the date required in Section 2(a), the Issuer shall send a notice to the MSRB of the failure of the Issuer to file on a timely basis the Annual Report, which notice shall be given by the Issuer in accordance with this Section 3. Section 4. Termination of Reporting Obligation. The Issuer’s obligations under this Continuing Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Notes. If the Issuer’s obligations under this Continuing Disclosure Undertaking are assumed in full by some other entity, such person shall be responsible for compliance with this Continuing Disclosure Undertaking in the same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such termination or substitution occurs prior to the final
4
maturity of the Notes, the Issuer shall give notice of such termination or substitution in the same manner as for a Material Event under Section 3. Section 5. Dissemination Agents. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Continuing Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign as dissemination agent hereunder at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report (including without limitation the Annual Report) prepared by the Issuer pursuant to this Continuing Disclosure Undertaking. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Continuing Disclosure Undertaking, the Issuer may amend this Continuing Disclosure Undertaking and any provision of this Continuing Disclosure Undertaking may be waived, provided that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written opinion that the undertaking of the Issuer contained herein, as so amended or after giving effect to such waiver, is in compliance with the Rule and all current amendments thereto and interpretations thereof that are applicable to this Continuing Disclosure Undertaking. In the event of any amendment or waiver of a provision of this Continuing Disclosure Undertaking, the Issuer shall describe such amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (1) notice of such change shall be given in the same manner as for a Material Event under Section 3, and (2) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 7. Additional Information. Nothing in this Continuing Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Continuing Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that required by this Continuing Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event, in addition to that specifically required by this Continuing Disclosure Undertaking, the Issuer shall have no obligation under this Continuing Disclosure Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 8. Default. If the Issuer fails to comply with any provision of this Continuing Disclosure Undertaking, any Participating Underwriter or any Beneficial Owner of the Notes may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under this Continuing Disclosure Undertaking. A default under this Continuing Disclosure Undertaking shall not be deemed an event of default under the Note Resolution or the Notes, and the sole remedy under this Continuing Disclosure Undertaking in the event of any failure of the Issuer to comply with this Continuing Disclosure Undertaking shall be an action to compel performance.
5
Section 9. Beneficiaries. This Continuing Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriter, and the Beneficial Owners from time to time of the Notes, and shall create no rights in any other person or entity. Section 10. Severability. If any provision in this Continuing Disclosure Undertaking, the Note Resolution or the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 11. Electronic Transactions. The arrangement described herein may be conducted and related documents may be sent, received, or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Governing Law. This Continuing Disclosure Undertaking shall be governed by and construed in accordance with the laws of the State of Kansas.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
(Signature Page to Disclosure Undertaking)
IN WITNESS WHEREOF, the Issuer has caused this Continuing Disclosure Undertaking to be executed as of the day and year first above written. CITY OF BEL AIRE, KANSAS (SEAL)
Mayor
Clerk
(Signature Page to Disclosure Undertaking)
EXHIBIT A
FINANCIAL INFORMATION AND OPERATING DATA TO BE INCLUDED IN ANNUAL REPORT
The financial information and operating data contained in tables in the following sections contained in Appendix A of the final Official Statement relating to the Notes:
Operating Data ·CITY PROPERTY VALUES ·CITY TAX RATES, LEVIES AND COLLECTIONS ·CITY INDEBTEDNESS*
* This Operating Data is also available in the Issuer’s financial information portion of its Annual Report.
[THIS PAGE INTENTIONALLY LEFT BLANK]
D-1
APPENDIX D
AUDITED FINANCIAL STATEMENTS
[THIS PAGE INTENTIONALLY LEFT BLANK]
�
�
�
�
�
�
�
�
�
�
�
�
�
CITY OF BEL AIRE, KANSAS
���������������� ��������������������������
�����������������������������
����
�������������������������
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�����������������������
���������������� ��������������������������
�����������������������������
����
�������������������������
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�����������������������
���������������� ��������������������������
�����������������������������
�
�
��������������� ���� ���!" # !" !$��%"&$'(�)�� #'($�****************************************************************************************************************************� ��+������!�� , !$�)��&)-%))&'!��!"��!�./)&)�************************************************************************************************************� ����+�������)&-��&!�!-&�.�$�$ , !$)0���1'2 (!, !$34&" ��&!�!-&�.�$�$ , !$)0�� $�$ , !$�'5�� $��')&$&'!�*****************************************************************************************************************************� ���� $�$ , !$�'5��-$&2&$& )�**********************************************************************************************************************************� ������%!"��&!�!-&�.�$�$ , !$)0�� ��.�!- �6 $�+�1'2 (!, !$�.��%!")�*********************************************************************************************************� ���� � -'!-&.&�$&'!�'5�$6 ���.�!- �6 $�'5�1'2 (!, !$�.��%!")�$'�$6 �� ���$�$ , !$�'5�� $��')&$&'!�**************************************************************************************************************************� �7�� $�$ , !$�'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"�� �����.�!- )�+�1'2 (!, !$�.��%!")��*************************************************************************************************************� �9�� � -'!-&.&�$&'!�'5�$6 �$�$ , !$�'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"�� �����.�!- )�'5�1'2 (!, !$�.��%!")�$'�$6 �$�$ , !$�'5��-$&2&$& )�***************************************************************� �:�� $�$ , !$�'5�� $��')&$&'!�+��('#(& $�(/��%!")�********************************************************************************************� �;�� $�$ , !$�'5�� 2 !% )���8# !) )���!"��6�!� )�&!�� $��� �����')&$&'!�+��('#(& $�(/��%!")�********************************************************************************************************************� ���� $�$ , !$�'5���)6��.'4)�+��('#(& $�(/��%!")�*********************************************************************************************� �<����'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)�*******************************************************************************************************************� ����+�9���� =%&( "�%##. , !$�(/��!5'(,�$&'!0�� �'$ )�$'�( =%&( "�)%##. , !$�(/�&!5'(,�$&'!�***********************************************************************************************� 9��� -6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"���.�!- �+��� ���%"� $��!"��-$%�.�>�%"� $���)&)?0�� � � 1 ! (�.��%!"�************************************************************************************************************************************� 97�3�99��� � � ��!"���!@��%!"��*******************************************************************************************************************************� 9:�
-6 "%. �'5��&$/A)��('#'($&'!�$ �6�( �'5�$6 ��'.. -$&2 �� $�� !)&'!��&�B&.&$/�********************************************� 9;�-6 "%. �'5��&$/A)��'!$(&B%$&'!)�*******************************************************************************************************************� 9��-6 "%. �'5��6�!� )�&!�$6 ��&$/�)�� �$6�C��&)�B&.&$/�'$�.�������&�B&.&$/��!"�� .�$ "���$&')�*******************� 9<�
�%##. , !$�(/��!5'(,�$&'!0�� �',B&!&!����.�!- �6 $�+��'!,�D'(�1'2 (!, !$�.��%!")�**********************************************************************� :��� �',B&!&!��-6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�� ����&!��%!"���.�!- )�+��'!,�D'(�1'2 (!, !$�.��%!")�********************************************************************************� :��� -6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"���.�!- �+��� ��1'2 (!, !$�.��%!"�+��%"� $��!"��-$%�.�>�%"� $���)&)?0�� � � �'!"��!"��!$ ( )$��%!"�********************************************************************************************************************� :��� � � ��#&$�.��('D -$)��%!"�************************************************************************************************************************� :��� � � �%B.&-��%&."&!���',,&))&'!�**************************************************************************************************************� :7�� � � # -&�.�$( $��!"��&�64�/��%!"�*****************************************************************************************************� :9�� �',B&!&!����.�!- �6 $�+��'!,�D'(��!$ (#(&) ��%!")�****************************************************************************� ::�� �',B&!&!��$�$ , !$�'5�� 2 !% )���8# !) )���!"��6�!� )�� ����&!��%!"���.�!- )�+��'!,�D'(��!$ (#(&) ��%!")�**************************************************************************************� :;�������',B&!&!��$�$ , !$�'5���)6��.'4)�+��'!3��D'(��!$ (#(&) ��%!")�EEEEEEEEEEE*�******************� :��-6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"���.�!- �+��� ���!$ (#(&) ��%!")�+��%"� $��!"��-$%�.�>�%"� $���)&)?0�� � � �$ (��%!"�***************************************************************************************************************************************� :<�� � � 4 (��%!"�***************************************************************************************************************************************� ;��� � � '.&"� �)$ ��%!"�******************************************************************************************************************************� ;��� � � $'(,4�$ (��%!"�******************************************************************************************************************************� ;����
This is a copy of the City’s annual financial statements reproduced from an electronic file. An original copy of this document
is available at the City’s office. �
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
����������������
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
��������������������������
���'!'(�B. ���/'(��!"��&$/��'%!-&.�� ,B ()������������� ���������� �6�2 ��%"&$ "�$6 ��--',#�!/&!��5&!�!-&�.�)$�$ , !$)�'5�$6 ��'2 (!, !$�.��-$&2&$& )��$6 �B%)&! ))3$/# ��-$&2&$& )�� �-6�,�D'(�5%!"���!"�$6 ����( ��$ �( ,�&!&!��5%!"�&!5'(,�$&'!�'5�$6 ��&$/�'5�� .��&( ����!)�)�>�&$/?��)�'5��!"�5'(�$6 �/ �(� !" "�� - ,B (������������!"�$6 �( .�$ "�!'$ )�$'�$6 �5&!�!-&�.�)$�$ , !$)��46&-6�-'.. -$&2 ./�-',#(&) �$6 ��&$/�)�B�)&-� 5&!�!-&�.�)$�$ , !$)��)� .&)$ "� &!� $6 �$�B. �'5�-'!$ !$)*������������������������������ ����������������������� ��!�� , !$�&)�( )#'!)&B. �5'(�$6 �#( #�(�$&'!��!"�5�&(�#( ) !$�$&'!�'5�$6 ) �5&!�!-&�.�)$�$ , !$)�&!��--'("�!- � 4&$6� �--'%!$&!�� #(&!-&#. )� � ! (�../� �-- #$ "� &!� $6 � �!&$ "� $�$ )� '5� �, (&-�F� $6&)�&!-.%" )�$6 �" )&�!�� &,#. , !$�$&'!���!"�,�&!$ !�!- �'5� &!$ (!�.�-'!$('.�( . 2�!$� $'�$6 �#( #�(�$&'!��!"�5�&(�#( ) !$�$&'!�'5�5&!�!-&�.�)$�$ , !$)�$6�$��( �5( �5(',�,�$ (&�.�,&))$�$ , !$��46 $6 (�"% �$'�5(�%"�'(� (('(*��������� �������������������%(� ( )#'!)&B&.&$/� &)� $'� 8#( ))� '#&!&'!)� '!� $6 ) � 5&!�!-&�.� )$�$ , !$)� B�) "� '!� '%(� �%"&$*� �-'!"%-$ "�'%(��%"&$�&!��--'("�!- �4&$6��%"&$&!��)$�!"�(")�� ! (�../��-- #$ "�&!�$6 ��!&$ "�$�$ )�'5��, (&-���!"�$6 �Kansas Municipal Audit and Accounting Guide*�6') �)$�!"�(")�( =%&( �$6�$�4 �#.�!��!"�# (5'(,�$6 ��%"&$�$'�'B$�&!�( �)'!�B. ��))%(�!- ��B'%$�46 $6 (�$6 �5&!�!-&�.�)$�$ , !$)��( �5( �5(',�,�$ (&�.�,&))$�$ , !$*����!��%"&$�&!2'.2 )�# (5'(,&!��#('- "%( )�$'�'B$�&!��%"&$� 2&" !- ��B'%$�$6 ��,'%!$)��!"�"&)-.')%( )�&!�$6 �5&!�!-&�.�)$�$ , !$)*�6 �#('- "%( )�) . -$ "�" # !"�'!�$6 ��%"&$'(�)�D%"�, !$��&!-.%"&!��$6 ��)) )), !$�'5�$6 �(&)@)�'5�,�$ (&�.�,&))$�$ , !$�'5�$6 �5&!�!-&�.�)$�$ , !$)��46 $6 (�"% �$'�5(�%"�'(� (('(*��!�,�@&!��$6') �(&)@��)) )), !$)��$6 ��%"&$'(�-'!)&" () &!$ (!�.�-'!$('.�( . 2�!$�$'�$6 � !$&$/�)�#( #�(�$&'!��!"�5�&(�#( ) !$�$&'!�'5�$6 �5&!�!-&�.�)$�$ , !$)�&!�'(" (�$'�" )&�!��%"&$�#('- "%( )�$6�$��( � �##('#(&�$ � &!� $6 � -&(-%,)$�!- )�� B%$� !'$� 5'(� $6 � #%(#') � '5� 8#( ))&!�� �!� '#&!&'!� '!� $6 � 55 -$&2 ! ))�'5� $6 � !$&$/�)� &!$ (!�.�-'!$('.*��--'("&!�./��4 � 8#( ))�!'�)%-6�'#&!&'!*��!��%"&$��.)'�&!-.%" )� 2�.%�$&!�� $6 � �##('#(&�$ ! ))� '5� �--'%!$&!�� #'.&-& )� %) "� �!"� $6 � ( �)'!�B. ! ))� '5�)&�!&5&-�!$��--'%!$&!�� )$&,�$ )�,�" �B/�,�!�� , !$���)�4 ..��)� 2�.%�$&!��$6 �'2 (�..�#( ) !$�$&'!�'5�$6 �5&!�!-&�.�)$�$ , !$)*��� �B .& 2 �$6�$�$6 ��%"&$� 2&" !- �4 �6�2 �'B$�&! "�&)�)%55&-& !$��!"��##('#(&�$ �$'�#('2&" ���B�)&)�5'(�'%(��%"&$�'#&!&'!)*�� ����������!�'%(�'#&!&'!�� $6 � 5&!�!-&�.�)$�$ , !$)� ( 5 (( "� $'��B'2 �#( ) !$� 5�&(./�� &!��..�,�$ (&�.� ( )# -$)�� $6 �( )# -$&2 �5&!�!-&�.�#')&$&'!�'5�$6 ��'2 (!, !$�.��-$&2&$& )��B%)&! ))3$/# ��-$&2&$& )�� �-6�,�D'(�5%!"���!"� $6 ����( ��$ � ( ,�&!&!�� 5%!"� &!5'(,�$&'!�'5� $6 ��&$/�'5�� .��&( ����!)�)���)�'5�� - ,B (������������!"�$6 �( )# -$&2 �-6�!� )�&!�5&!�!-&�.�#')&$&'!���!"��46 ( ��##.&-�B. ��-�)6�5.'4)�$6 ( '5�5'(�$6 �/ �(�$6 !� !" "�&!��--'("�!- �4&$6��--'%!$&!��#(&!-&#. )�� ! (�../��-- #$ "�&!�$6 ��!&$ "�$�$ )�'5��, (&-�*�
�
��
!��������������� ���)� "&)-%)) "� &!� �'$ � �G*� �*�� &!� ������ $6 � �&$/� �"'#$ "� 1��� $�$ , !$� �'*� ;9�� Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions� �)� &$� ( .�$ )� $'� $6 &(�#�($&-&#�$&'!�&!�$6 �$�$ �'5���!)�)��� �$6��!"��&)�B&.&$/������#.�!*��%(�'#&!&'!�&)�!'$�,'"&5& "�4&$6�( )# -$�$'�$6&)�,�$$ (*�� �� ����� �� Required Supplementary Information��--'%!$&!�� #(&!-&#. )� � ! (�../� �-- #$ "� &!� $6 � �!&$ "� $�$ )� '5� �, (&-�� ( =%&( � $6�$� $6 �,�!�� , !$�)�"&)-%))&'!��!"��!�./)&)��!"�( =%&( "�)%##. , !$�(/�&!5'(,�$&'!�.&)$ "�'!�$6 �$�B. �'5�-'!$ !$)�B �#( ) !$ "�$'�)%##. , !$�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*�%-6�&!5'(,�$&'!���.$6'%�6�!'$���#�($�'5�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)�� &)�( =%&( "�B/�$6 �1'2 (!, !$�.��--'%!$&!��$�!"�(")��'�("�46'�-'!)&" ()�&$�$'�B ��!� )) !$&�.�#�($�'5�5&!�!-&�.�( #'($&!��5'(�#.�-&!��$6 �B�)&-�5&!�!-&�.�)$�$ , !$)�&!� �!� �##('#(&�$ � '# (�$&'!�.�� -'!',&-�� '(� 6&)$'(&-�.� -'!$ 8$*� � 6�2 � �##.& "� - ($�&!� .&,&$ "�#('- "%( )�$'�$6 �( =%&( "�)%##. , !$�(/�&!5'(,�$&'!�&!��--'("�!- �4&$6��%"&$&!��)$�!"�(")�� ! (�../��-- #$ "� &!� $6 � �!&$ "� $�$ )� '5� �, (&-��� 46&-6� -'!)&)$ "� '5� &!=%&(& )� '5� ,�!�� , !$� �B'%$� $6 �, $6'")� '5� #( #�(&!�� $6 � &!5'(,�$&'!� �!"� -',#�(&!�� $6 � &!5'(,�$&'!� 5'(� -'!)&)$ !-/� 4&$6�,�!�� , !$�)� ( )#'!) )� $'� '%(� &!=%&(& )�� $6 � B�)&-� 5&!�!-&�.� )$�$ , !$)�� �!"� '$6 (� @!'4. "� � 4 �'B$�&! "�"%(&!��'%(��%"&$�'5�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*� �"'�!'$� 8#( ))��!�'#&!&'!�'(�#('2&" ��!/� �))%(�!- � '!� $6 � &!5'(,�$&'!� B -�%) � $6 � .&,&$ "� #('- "%( )� "'� !'$� #('2&" � %)� 4&$6� )%55&-& !$� 2&" !- �$'� 8#( ))��!�'#&!&'!�'(�#('2&" ��!/��))%(�!- *� Supplementary Information��%(� �%"&$� 4�)� -'!"%-$ "� 5'(� $6 � #%(#') � '5� 5'(,&!�� '#&!&'!)� '!� $6 � 5&!�!-&�.� )$�$ , !$)� $6�$�-'.. -$&2 ./� -',#(&) � $6 � �&$/�)� B�)&-� 5&!�!-&�.� )$�$ , !$)*� 6 � -',B&!&!�� �!"� &!"&2&"%�.� !'!,�D'(�5%!"�5&!�!-&�.�)$�$ , !$)��!"�)-6 "%. )��)�.&)$ "�&!�$6 �$�B. �'5�-'!$ !$)��( �#( ) !$ "�5'(�#%(#') )�'5��""&$&'!�.��!�./)&)��!"��( �!'$���( =%&( "�#�($�'5�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*�6 �-',B&!&!���!"�&!"&2&"%�.� !'!,�D'(� 5%!"� 5&!�!-&�.� )$�$ , !$)� �!"� )-6 "%. )� �( � $6 � ( )#'!)&B&.&$/� '5� ,�!�� , !$��!"� 4 ( � " (&2 "� 5(',� �!"� ( .�$ � "&( -$./� $'� $6 � %!" (./&!�� �--'%!$&!�� �!"� '$6 (� ( -'(")� %) "� $'�#( #�( � $6 � B�)&-� 5&!�!-&�.� )$�$ , !$)*� %-6� &!5'(,�$&'!� 6�)� B !� )%BD -$ "� $'� $6 � �%"&$&!��#('- "%( )��##.& "� &!� $6 ��%"&$�'5� $6 �B�)&-� 5&!�!-&�.� )$�$ , !$)��!"�- ($�&!��""&$&'!�.�#('- "%( )��&!-.%"&!��-',#�(&!���!"�( -'!-&.&!��)%-6�&!5'(,�$&'!�"&( -$./�$'�$6 �%!" (./&!���--'%!$&!���!"�'$6 (�( -'(")� %) "� $'� #( #�( � $6 � B�)&-� 5&!�!-&�.� )$�$ , !$)� '(� $'� $6 � B�)&-� 5&!�!-&�.� )$�$ , !$)�$6 ,) .2 )�� �!"� '$6 (� �""&$&'!�.� #('- "%( )� &!� �--'("�!- � 4&$6� �%"&$&!�� )$�!"�(")� � ! (�../��-- #$ "� &!� $6 � �!&$ "� $�$ )� '5� �, (&-�*� �!� '%(� '#&!&'!�� )%-6� &!5'(,�$&'!� &)� 5�&(./� )$�$ "�� &!� �..�,�$ (&�.�( )# -$)��&!�( .�$&'!�$'�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)��)���46'. *���
������������ ������������ � � � � ����������������������������������������������������������%�%)$�������<� &-6&$�����!)�)
�
��
���������
�������������
����1���������������������������
�
��
���"�#!�!"$���%&��'��& "��"%��"�()�&����6&)� ) -$&'!� '5� $6 � �&$/� '5� � .� �&( �)� >�&$/?� 5&!�!-&�.� )$�$ , !$)� #('2&" )� �� !�((�$&2 � '2 (2& 4� �!"��!�./)&)�'5�$6 ��&$/�)�5&!�!-&�.��-$&2&$& )�5'(�$6 �5&)-�.�/ �(� !" "�� - ,B (���������*�6&)�"&)-%))&'!�5'..'4)� �%&" .&! )� #( )-(&B "� B/� $6 � 1'2 (!, !$�.� �--'%!$&!�� $�!"�(")� �'�("� >1��?�$�$ , !$��7��46&-6� !6�!- )�-',#�(�B&.&$/�B $4 !��'2 (!, !$)*�6 �&!5'(,�$&'!�#( ) !$ "�6 ( �)6'%."� B � ( �"� &!� -'!D%!-$&'!� 4&$6� $6 � �--',#�!/&!�� B�)&-� 5&!�!-&�.� )$�$ , !$)� �!"� $6 � !'$ )� $'�$6') �B�)&-�5&!�!-&�.�)$�$ , !$)*���&"�"�&�(�*&#*(&#*$����� 6 � �)) $)� #.%)� " 5 (( "� '%$5.'4)� '5� ( )'%(- )� '5� $6 � �&$/� 8- " "� &$)� .&�B&.&$& )� �!"� " 5 (( "�
&!5.'4)�'5�( )'%(- )��$�$6 �-.') �'5�$6 �,')$�( - !$�5&)-�.�/ �(�B/�H�9�;�����7�>! $�#')&$&'!?*���� 6 � �&$/�)� $'$�.� ! $� #')&$&'!� &!-( �) "� "%(&!�� $6&)� 5&)-�.� / �(� B/� H���������� &!-.%"&!�� $6 � #(&'(�
# (&'"��"D%)$, !$�5'(�( -'("&!��'5�$6 ������� �$6��!"��&)�B&.&$/��.�!�.&�B&.&$/�%!" (�1���;9*���� �$� $6 �-.') �'5������� $6 ��&$/�)��'2 (!, !$�.� 5%!")�( #'($ "�-',B&! "� !"&!�� 5%!"�B�.�!- )�'5�
H�:�����;������" -( �) �'5�H���<<�9���'2 (�$6 �#(&'(�/ �(*���� �$� $6 �-.') �'5�������%!�))&�! "�5%!"�B�.�!- �5'(� $6 �1 ! (�.��%!"�4�)�H��:�<�<:<�'(�7�I�'5�
( 2 !% )�5'(�$6 �5%!"*��� +!�+&!,� ��$*!��&"�"�&�(��$�$!�!"$�����!�� , !$�)� �&)-%))&'!� �!"� �!�./)&)� &)� &!$ !" "� $'� ) (2 � �)� �!� &!$('"%-$&'!� $'� $6 � �&$/�)� B�)&-�5&!�!-&�.� )$�$ , !$)�� 46&-6� &!-.%" � $6( � -',#'! !$)0� �?� 1'2 (!, !$34&" � 5&!�!-&�.� )$�$ , !$)���?��%!"�5&!�!-&�.�)$�$ , !$)��!"��?��'$ )�$'�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*�6&)�( #'($��.)'�-'!$�&!)�'$6 (�)%##. , !$�(/�&!5'(,�$&'!�&!��""&$&'!�$'�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)�$6 ,) .2 )*���#�- ����.,�����������������������6 ��'2 (!, !$34&" �5&!�!-&�.�)$�$ , !$)��( �" )&�! "�$'�#('2&" �( �" ()�4&$6���B('�"�'2 (2& 4�'5�$6 � �&$/�)� 5&!�!- )�� &!� �� ,�!! (� )&,&.�(� $'� �� #(&2�$ 3) -$'(� B%)&! ))*� 6 ) � )$�$ , !$)� %) � $6 ��--(%�.� B�)&)� '5� �--'%!$&!��� 46&-6� , �!)� $6�$� $6 � -%(( !$� / �(�)� ( 2 !% )� �!"� 8# !) )� �( �( -'(" "��)�$6 /��( � �(! "�'(�&!-%(( "��( ��(". ))�'5�46 !�-�)6�&)�( - &2 "�'(�#�&"*��6 �Statement of Net Position�#( ) !$)� &!5'(,�$&'!�'!��..�'5� $6 ��&$/�)��)) $)��" 5 (( "�'%$5.'4)�'5�( )'%(- )�� .&�B&.&$& )��!"�" 5 (( "� &!5.'4)�'5� ( )'%(- )��4&$6� $6 �"&55 ( !- � ( #'($ "��)�! $�#')&$&'!*�6 ) � )$�$ , !$)� &!-.%" � &!5(�)$(%-$%( � �)) $)� �)� 4 ..� �)� �..� @!'4!� .&�B&.&$& )�� &!-.%"&!�� .'!�3$ (,�" B$*��2 (�$&, ��&!-( �) )�'(�" -( �) )�&!�! $�#')&$&'!�,�/�) (2 ��)���%) 5%.�&!"&-�$'(�'5�46 $6 (�$6 �5&!�!-&�.� #')&$&'!� '5� $6 � �&$/� &)� &,#('2&!�� '(� " $ (&'(�$&!�*� 6 � Statement of Activities #('2&" )�&!5'(,�$&'!�" $�&.&!��how�$6 ��&$/�)�! $�#')&$&'!�-6�!� "*���6 ��'2 (!, !$34&" � 5&!�!-&�.�)$�$ , !$)� ( #'($� 5%!-$&'!)�'5� $6 ��&$/� $6�$��( �#(&!-&#�../�)%##'($ "�B/�$�8 )��!"�&!$ (�'2 (!, !$�.�( 2 !% �>�'2 (!, !$�.��-$&2&$& )?�) #�(�$ ./�5(',�'$6 (�5%!-$&'!)�$6�$��( �&!$ !" "�$'�( -'2 (��..�'(���)&�!&5&-�!$�#'($&'!�'5�-')$)�$6('%�6�%) (�5 )��!"�-6�(� )�>B%)&! ))3$/# � �-$&2&$& )?*� 1'2 (!, !$�.� �-$&2&$& )� '5� $6 � �&$/� &!-.%" � � ! (�.� �'2 (!, !$�� .�4� !5'(- , !$��#%B.&-�4'(@)��-�#&$�.� &,#('2 , !$��-',,%!&$/�" 2 .'#, !$���!"�#�(@)��!"�( -( �$&'!*�6 ��&$/�6�)�5'%(� B%)&! ))3$/# � �-$&2&$& )� 46&-6� �( � %) "� $'� �--'%!$� 5'(� $6 � �)) $)�� .&�B&.&$& )�� ( 2 !% )� �!"� 8# !) )��))'-&�$ "�4&$6�4�$ (��) 4 (���!"�)'.&"�4�)$ ��!"�)$'(,�4�$ (�5%!-$&'!)*�
�
7�
��������������������������� 5%!"� &)� �� 5&)-�.� !$&$/� 4&$6� �� ) $� '5� ) .53B�.�!-&!�� �--'%!$)� $6�$� &)� %) "� $'� ,�&!$�&!� -'!$('.� '2 (�( )'%(- )� $6�$� 6�2 � B !� ) �( ��$ "� 5'(� )# -&5&-� �-$&2&$& )� '(� 'BD -$&2 )*� 6 � �&$/� %) )� 5%!"��--'%!$&!�� $'� " ,'!)$(�$ � -',#.&�!- � 4&$6� . ��.� ( =%&( , !$)�� )%-6� �)� )$�$ � )$�$%$ )� '(� B'!"�-'2 !�!$)*�6 ( ��( �$6( �$/# )�'5�5%!")0��'2 (!, !$�.��#('#(& $�(/���!"�5&"%-&�(/*���Governmental Funds 1'2 (!, !$�.� 5%!"� �--'%!$&!�� 5'-%) )� '!� �?�-�)6� 5.'4� �!"� 6'4� 5&!�!-&�.� �)) $)� -�!� ( �"&./� B �-'!2 ($ "� $'� �2�&.�B. � ( )'%(- )�� �!"� �?� $6 � B�.�!- )� . 5$� �$� $6 � !"� '5� $6 � 5&)-�.� / �(� 5'(� 5%$%( �)# !"&!�*�6 �5'-%)�&)�'!�$6 �B%"� $�(/��)6'($3$ (,�5&!�!-&�.�#&-$%( �'5�$6 �( #'($ "�'# (�$&'!)�(�$6 (�$6�!�'!�$6 �.'!� (�$ (,� -'!',&-�#&-$%( �'5�$6 ��&$/��)���46'. *��1'2 (!, !$�.� 5%!")� �( � ( #'($ "� %)&!�� $6 � modified accrual� B�)&)� '5� �--'%!$&!��� 46&-6� , �)%( )�-�)6��!"�'$6 (�5&!�!-&�.��)) $)�$6�$�-�!�( �"&./�B �-'!2 ($ "�$'�-�)6*��!" (�$6&)�B�)&)�'5��--'%!$&!���( 2 !% )� �( � ( -'�!&J "� 46 !� $6 /� B -', � , �)%(�B. � �!"� �2�&.�B. �� �!"� 8# !"&$%( )� �( �� ! (�../� ( -'�!&J "� 46 !� $6 � ( .�$ "� 5%!"� .&�B&.&$/� &)� &!-%(( "*� %-6� &!5'(,�$&'!� ,�/� B � %) 5%.� &!�" $ (,&!&!��46�$�5&!�!-&�.�( )'%(- )��( ��2�&.�B. �&!�$6 �! �(�5%$%( �$'�5&!�!- �$6 ��&$/�)�#('�(�,)*���6 ( 5'( �� B'$6� $6 � �'2 (!, !$�.� �-$&2&$& )� &!� $6 � �'2 (!, !$34&" � 5&!�!-&�.� )$�$ , !$)� �!"� $6 ��'2 (!, !$� 5%!"� 5&!�!-&�.�)$�$ , !$)�#( ) !$�"&55 ( !$�%) 5%.��)# -$)�'5� $6 ��&$/�)� 5&!�!-&�.�#&-$%( *�6 /��( �" )&�! "�$'�B �-',#�( "��!"�&!$ (#( $ "�$'� $6 (*�6 �( -'!-&.&�$&'!)��$�$6 � !"�'5�$6 �5%!"�5&!�!-&�.� )$�$ , !$)� " $�&.� $6 � ( .�$&'!)6&#� �!"� "&55 ( !- )� B $4 !� $6 � $4'� $/# )� '5� 5&!�!-&�.�)$�$ , !$)*��Proprietary Funds 6 � �&$/� ,�&!$�&!)� #('#(& $�(/� 5%!")� $6�$� �( � %) "� $'� ( #'($� $6 � )�, � 5%!-$&'!)� #( ) !$ "� �)�B%)&! ))3$/# � �-$&2&$& )� &!� $6 � �'2 (!, !$34&" � 5&!�!-&�.� )$�$ , !$)�� B%$� &!� ,'( � " $�&.*� 6 �#('#(& $�(/� 5%!"� 5&!�!-&�.� )$�$ , !$)� #('2&" � ) #�(�$ � &!5'(,�$&'!� 5'(� $6 � ) 4 (� �!"� 4�$ (� 5%!")��46&-6��( �-'!)&" ( "�,�D'(�5%!")�'5�$6 ��&$/*� �"�����������������������������������6 �!'$ )�$'�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)��( ��!�&!$ �(�.�#�($�'5�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*�6 /�#('2&" � �""&$&'!�.� &!5'(,�$&'!� $6�$� &)� )) !$&�.� $'� �� 5%..� %!" ()$�!"&!�� '5� $6 � "�$�� #('2&" "� &!� $6 ��'2 (!, !$34&" ��!"�5%!"�5&!�!-&�.�)$�$ , !$)*�� �� ���������� ��&��� ��������� =%&( "� B%"� $�(/� "�$�� ( .�$ "� $'� $6 � 1 ! (�.� �%!"�� ��!"� ��!@� �%!"�� -',B&!&!�� )$�$ , !$)� 5'(�!'!,�D'(��'2 (!, !$�.��!"�!'!,�D'(� !$ (#(&) �5%!")��!"�5%!"�B%"� $�(/�)-6 "%. )��( �#( ) !$ "�&,, "&�$ ./�5'..'4&!��$6 �!'$ )�$'�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*��
�
9�
# +!�"�!"$.,&%!��&"�"�&�(��"�()�&���#�- ����.,���������������������
/012 /013 /012 /013 /012 /013�%(( !$��!"�'$6 (��)) $) �9�:���<�7H���������� �;�<:�����H��� 7�77��7;�H����� ��7<��::�H������ 7���::��<9H���� 7��7:��7:�H�����#&$�.��)) $) 7��;9��<�������������� 7�������<������ �;�7�:��99����� �;�7�:���������� 9���79�;;:������ 9��7�:�7����������'$�.��)) $) ;:������79������������ ;��<:���<������ ���<�����:����� ���<�;�<�������� <�������;������� <<��;:��;9�����
� 5 (( "�'%$5.'4) ���7������������������� ���:;����������� :���:9������������ 7����:������������� ����9���:�������� ��7�9��<7�������
�'!�3$ (,�.&�B&.&$& ) 9<�;;��77;H���������� :����:���9H��� ���7:����H����� ����:�:7�H������ :����;��9�H���� :��;����::H����$6 (�.&�B&.&$& ) �����<������������������ ����<�9;:������� ��;�:7����������� ������������������ <�9�;7������������ ������:�<����������'$�.�.&�B&.&$& ) :��9;��979������������ :����9��������� ��7;7�79�������� ��9<��;97�������� :���9��<<������� :7�<�7�999�����
� 5 (( "�&!5.'4) �������<��������������� ��:�<�<9�������� ����9�������������� ;�9<���������������� ����:��;9�������� ��:�;�99��������
� $�#')&$&'!� $�&!2 )$, !$�&!�-�#&$�.��)) $) >�����<��<�?���������� >����;���7�?���� �:��<��<9<����� �:��:��799������ 7�9;��::��������� ����<�:���������� )$(&-$ " �������<;�������������� 7�����;���������� 3������������������ 3������������������� �������<;�������� 7�����;�����������!( )$(&-$ " �:���7���������������� �������;9;����� 7������<7������� ����;�9:;�������� ���������:������ ���<�<���7��������'$�.�! $�#')&$&'! �9��������H���������� �9��;���7�H��� ���9����9�H��� �<��9�����H���� �9�;�����7H���� �7�;����:7H���
#�- ������ ������.��� $�����4 ��� �����-���� ����-���� #�- ����
�������������"��4����������)� #( 2&'%)./� , !$&'! "�� ! $� #')&$&'!� ,�/� ) (2 � �)� �� %) 5%.� &!"&-�$'(� '5� �� �'2 (!, !$�)� 5&!�!-&�.�#')&$&'!*�6 ��&$/�)��)) $)�#.%)�" 5 (( "�'%$5.'4)�'5�( )'%(- )�'5�$6 ��&$/� 8- " "�&$)�.&�B&.&$& )��!"�" 5 (( "�&!5.'4)�'5�( )'%(- )�B/�H�9�;�����7��$�$6 �-.') �'5�����*��6 � �&$/�)� ! $� &!2 )$, !$� &!� -�#&$�.� �)) $)� '5� H7�9;��::�� ( #( ) !$)� -�#&$�.� �)) $)� > *�*� .�!"��B%&."&!�)�� =%&#, !$� �!"� &!5(�)$(%-$%( ?� . ))� �!/� ( .�$ "� '%$)$�!"&!�� " B$� %) "� $'� �-=%&( � $6') ��)) $)*�6 ) ��)) $)��( �%) "�'!��!�'!�'&!��B�)&)�$'�#('2&" �) (2&- )�$'�-&$&J !)���!"��( �$6%)�!'$��2�&.�B. �5'(�5%$%( �)# !"&!�*�6 ��&$/�)�&!2 )$, !$�&!�&$)�-�#&$�.��)) $)�&)�( #'($ "�! $�'5�( .�$ "�" B$F�6'4 2 (��$6 �( )'%(- )�! " "�$'�( #�/�$6&)�" B$�,%)$�-', �5(',�'$6 (�)'%(- )*�6 �-�#&$�.��)) $)�$6 ,) .2 )�-�!!'$�B �.&=%&"�$ "�$'�)�$&)5/�$6 ) �.&�B&.&$& )*���6 ��&$/�)�! $�#')&$&'!�$6�$�( #( ) !$)�( )'%(- )�$6�$��( �)%BD -$�$'� 8$ (!�.�( )$(&-$&'!)�'!�6'4�$6 /�,�/�B �%) "�'5�H�������<;*�� )$(&-$ "�! $�#')&$&'!�&!-.%" )0��
�� � B$�) (2&- 0�H������7��� ��#&$�.�#('D -$)0�H79�������� �%B.&-��%&."&!���',,&))&'!0�H����99;F��� ��!"���!@0�H��9��:9F��!"��� �(%��5'(5 &$%( 0�H��:9��
�6 ��&$/�)�$'$�.�%!( )$(&-$ "�! $�#')&$&'!�&)�H���������:*�
�
:�
�����������������������������"��4�������
/012 /013 /012 /013 /012 /013� 2 !% )0�('�(�,�( 2 !% )0���6�(� )�5'(�) (2&- ) 7���9��H��������������� :�7�:;�H�������� 9������;�H����� 9��;<�:��H������ 9�;����:�H������ 9�;�7��97H��������# (�$&!���(�!$)��!"�-'!$(&B%$&'!) 77����������������������� 9���<������������� 3������������������ 3������������������� 77����������������� 9���<�����������������#&$�.��(�!$)��!"�-'!$(&B%$&'!) �������;��������������� ������<;�������� 3������������������ 3������������������� �������;��������� ������<;��������1 ! (�.�( 2 !% )0���('# ($/�$�8 ) ��9����99�������������� ���9��<7:������� 3������������������ 3������������������� ��9����99�������� ���9��<7:����������. )�$�8 ) ���;;�;���������������� ���;<�<77������� 3������������������ 3������������������� ���;;�;���������� ���;<�<77����������$6 (�$�8 ) <;:�<�<����������������� ;<9��:;���������� 3������������������ 3������������������� <;:�<�<����������� ;<9��:;�������������(�!-6&) �$�8 ) :�<�;������������������� 9�7�:<:���������� 3������������������ 3������������������� :�<�;������������� 9�7�:<:�������������!2 )$, !$� �(!&!�) ��<�9�<����������������� �;�;;;������������ ����;������������� ���<���������������� �7��79<����������� <:��;����������������&)- ..�! '%) :���:97����������������� 7�����9���������� �9���7������������ 9���9;������������� :7��;9������������ 79��������������������'$�.�( 2 !% ) ;�;<����7�������������� <�������<������� 9��7���9�������� 9�����7���������� �������7;:������ �7��9��:�������
�8# !) )0�",&!&)$(�$&'!��,�/'(��!"�-'%!-&. :�<��7������������������ 9:��::����������� 3������������������ 3������������������� :�<��7������������ 9:��::�������������4��!"�,%!&-&#�.�-'%($ ��7��������������������� ��7��:����������� 3������������������ 3������������������� ��7��������������� ��7��:�����������$( $)��!"�6&�64�/ 79<��7������������������ ;����;;���������� 3������������������ 3������������������� 79<��7������������ ;����;;������������#&$�.�&,#('2 , !$�#('�(�, �9��97������������������� �<���������������� 3������������������ 3������������������� �9��97������������� �<�����������������',,%!&$/�" 2 .'#, !$ ����<������������������ ����:�979������� 3������������������ 3������������������� ����<������������ ����:�979���������(@)���('%!")��( -( �$&'!��#''.�� $-* ;�<�;9������������������ �9��;������������ 3������������������ 3������������������� ;�<�;9������������ �9��;�������������'.&- �<9��<������������������ <9:��9<���������� 3������������������ 3������������������� �<9��<������������ <9:��9<�����������'!" #�($, !$�.��!"�'$6 ( ����9�7����������������� �;7�99����������� 3������������������ 3������������������� ����9�7����������� �;7�99�������������!"�)�. )�#('D -$ ��7�7�:�<�������������� <�7�9������������ 3������������������ 3������������������� ��7�7�:�<�������� <�7�9�������������!$ ( )$��!"�5 )�'!�.'!�3$ (,�" B$ ��;�;�9�;�������������� ���<���7�������� 3������������������ 3������������������� ��;�;�9�;�������� ���<���7��������
�� �$ ( 3������������������������ 3������������������ ����:�;9�������� ���99�7�7�������� ����:�;9��������� ���99�7�7��������� 4 ( 3������������������������ 3������������������ ��<�7�:9:������� ��<:7�9<9�������� ��<�7�:9:�������� ��<:7�9<9���������'.&"� �)$ ��!"�$'(,4�$ ( 3������������������������ 3������������������ 7���:7����������� ��;�9�:����������� 7���:7������������ ��;�9�:���������������'$�.� 8# !) ) ;�9;��;�7�������������� ;�:�;�7�9������� 7�77���97������� 7�:�;�9<9�������� �����:�;;������� �����9����������!-( �) �&!�! $�#')&$&'!�B 5'( �$(�!)5 () ��;�9������������������� ��7<��;97������� �<;��<����������� 9����������������� ����7�:<��������� ������9<��������(�!)5 () >�:�����?��������������� >:�9���:?��������� �:��������������� :�9���:����������� 3������������������� 3�������������������!-( �) �>" -( �) ?�&!�! $�#')&$&'! >79����?����������������� �9:��:����������� ���:������������ ���::�;�7�������� ����7�:<��������� ������9<��������� $�#')&$&'!�3�B �&!!&!��'5�/ �( �9��;���7������������� �7�9����;7����� �<��9���������� ��������<������� �7�;����:7������ ���:<:�9;�������(&'(�# (&'"��"D%)$, !$ ><:�:;�?����������������� 3������������������ 3������������������ 3������������������� ><:�:;�?������������ 3������������������� $�#')&$&'!�3� !"�'5�/ �( �9��������H���������� �9��;���7�H��� ���9����9�H��� �<��9�����H���� �9�;�����7H���� �7�;����:7H���
#�- ������ ������.��� $�����4 ��� �����-���� ����-���� #�- ����
�����������������������"��4��������
�6 � �&$/�)� ! $� #')&$&'!� &!-( �) "� "%(&!�� $6 � 5&)-�.� / �(� B/� �� $'$�.� '5� H���������� &!-.%"&!�� $6 ) �-6�!� )0���� �6�(� )� 5'(�) (2&- )� &!-( �) "�H;;�9�;�,')$./�"% � $'��!� &!-( �) � &!�4�$ (��!"�) 4 (�) (2&- )�
#('2&" "�'5�H����9<9*��� ��#&$�.� �(�!$)� �!"� -'!$(&B%$&'!)� " -( �) "� B/� H��<;��9<�� "% � $'� �� " -( �) � &!� )# -&�.�
�)) )), !$)*���� 1 ! (�.�( 2 !% )�&!-( �) "�H;;<�<�<�4&$6�$6 �.�(� )$�&!-( �) �&!�,&)- ..�! '%)�'5�H�����9��"% �
$'��!�&!-( �) �&!�(�&.�.'�!�( &,B%() , !$)*��� �8# !) )� '5� �'2 (!, !$�.� �-$&2&$& )� 4 ( � -',#�(�B. � $'� $6 � #(&'(� / �(� 4&$6� �� " -( �) � '5�
H9��;��*���� �8# !) )�'5�B%)&! ))3$/# ��-$&2&$& )�" -( �) "�B/�H�:7�97��#(&,�(&./�"% �$'���" -( �) �&!�4�$ (�
#%(-6�) )��!"�-'!$(�-$%�.�-')$)�#�&"�$'�$6 �����*�
�
;�
��
��
6 �-6�($)��B'2 �&..%)$(�$ �$6 ��&$/�)��'2 (!, !$�.� 8# !) )��!"�#('�(�,�( 2 !% )�B/�5%!-$&'!���!"�( 2 !% )�B/�)'%(- *�6 �&!$ ( )$�'!�.'!�3$ (,�" B$�( #( ) !$)�$6 �.�(� )$�#'($&'!�'5������ 8# !) )��5'..'4 "�B/�.�!"�)�. )�#('D -$)*�
H�
H�����
H�����
!5���������4 �� ����-���&������������67�0008�9
�8# !) )
�('�(�,( 2 !% )
������������� ���
�� ������ ���������������� ��� ���
��
��� ����������������� ��� ���
���
����������������
������������
�������������
!����� �������"�
#�����$������� ���
��
% �����������"�
������������� ��
�
��
�'(� �'2 (!, !$�.� �-$&2&$& )� '2 (�..�� &!$ (�'2 (!, !$�.� ( 2 !% )� �( � $6 � .�(� )$� )'%(- � '5� ( 2 !% �5'..'4 "�B/�#('# ($/� $�8� ( 2 !% � ( - &2 "� 5'(� -')$� )6�(&!���((�!� , !$)�'!�-�#&$�.� #('D -$)*��$6 (�( 2 !% )��!"� 8# !) �5%!-$&'!)�5�..�4&$6&!��!$&-&#�$ "�(�!� )*���"�()�&�� ��$*!��'"%��&"�"�&�(��$�$!�!"$���6 � �&$/� %) )� 5%!"� �--'%!$&!�� $'� !)%( � �!"� " ,'!)$(�$ � -',#.&�!- � 4&$6� 5&!�!- � ( .�$ "� . ��.�( =%&( , !$)*�/# )�'5��'2 (!, !$�.� 5%!")� ( #'($ "�B/� $6 ��&$/� &!-.%" � $6 �1 ! (�.��%!"��# -&�.�� 2 !% ��%!")��� B$� (2&- ��%!")����#&$�.��('D -$)��%!")��!"���!"���!@*���$� $6 � !"� '5� ������ $6 � �&$/�)� �'2 (!, !$�.� 5%!")� ( #'($ "� -',B&! "� !"&!�� 5%!"� B�.�!- )� '5�H�:�����;���&!-.%"&!�0�
�� �'!)# !"�B. 0�H<��<���<;F��� � )$(&-$ "�B/� 8$ (!�.�( =%&( , !$)��!"�.�4)0�H7��<<��;7F��� �))&�! "�$'�-�#&$�.�#('D -$)�'(�'$6 (�%) )0�H�����<�F��!"��� �!�))&�! "�5%!")��2�&.�B. �5'(�%) ��$�$6 ��&$/�)�"&)-( $&'!0�H��:�<�<:<*�
�6 �1 ! (�.��%!"�&)�$6 �#(&,�(/�'# (�$&!��5%!"�5'(�$6 ��&$/*��$�$6 � !"�'5�������$'$�.�5%!"�B�.�!- �'5�$6 �1 ! (�.��%!"�4�)�H��:<��:::*�6 � 5%!"�B�.�!- � &!-( �) "�B/�H�;<���;�"%(&!�� $6 � 5&)-�.� / �(�"% �$'�&!-( �) )�&!�$�8 )��)6�( "�( 2 !% )��!"�5(�!-6&) �5 )�4&$6���" -( �) �$'�$(�!)5 ()�'%$*���6 ��'!"��!"��!$ ( )$��%!"�6�"��!�&!-( �) �&!�5%!"�B�.�!- �'5�H����:7��"% ��!�&!-( �) �&!�)# -&�.��)) )), !$)�( 2 !% �( -'�!&J "*��6 ���#&$�.��('D -$)��%!"�6�"���" -( �) �&!�5%!"�B�.�!- �'5�H���;��7���"% �$'�$6 �)# !"&!��'5�B'!"�#('- ")�5'(�-�#&$�.�#('D -$)*��6 ��%B.&-��%&."&!���',,&))&'!�6�"��!� &!-( �) � &!� 5%!"�B�.�!- �'5�H9���;:�"% � $'��!� &!-( �) � &!�$(�!)5 ()�&!�-',#�( "�$'�$6 �#(&'(�/ �(*���6 ���!"���!@�6�"���" -( �) �&!�5%!"�B�.�!- �'5�H��<��;;�"% �$'���.'))�'!�.�!"�#('D -$�)�. )*���'!,�D'(��'2 (!, !$�5%!")�4 ( �-',#�(�B. �$'�$6 �#(&'(�/ �(�4&$6���" -( �) �'2 (�..�'5�H9��9�<*���6 � �$ (� �%!")�� 4 (� �%!")�� �!"� '$6 (� !'!,�D'(� B%)&! ))3$/# � 5%!")� 6�"� &!-( �) )� &!� ! $�#')&$&'!�'5�H7����;<��H:<<�:�9��!"�H7����;��( )# -$&2 ./�"% �$'�&!-( �) "�-6�(� )�5'(�) (2&- )*��#!"!��(��'"%�'%#!$��)�*&#*(&#*$���G�(&�!- )�B $4 !�$6 �5&!�.�B%"� $��!"��-$%�.��,'%!$)��( �!'$� 8# -$ "�$'�&,#�-$� &$6 (�.&=%&"&$/�'(�5%$%( � ) (2&- )*� �'$'(� 2 6&-. � �!"� )�. )� $�8� -'.. -$&'!)� 4 ( � ,'( � $6�!� B%"� $ "� 5'(� ������ 46&. �#('# ($/�$�8 )��!"�.&- !) )��# (,&$)��!"�5 )�-�, �&!�%!" (�B%"� $*��2 (�..�B%"� $ "�( 2 !% )�4 ( �-',#�(�B. � $'� �-$%�.� ( )%.$)*� �""&$&'!�../�� $6 � �&$/�)� $(�!)5 ()� '%$� 4 ( � )&�!&5&-�!$./� .'4 (� $6�!�B%"� $ "*�
�
<�
��4&$�(����!$��"%�%!$��%�&"&�$��$& "�����������������6 � �&$/�)� &!2 )$, !$� &!� -�#&$�.� �)) $)�� ! $� '5� �--%,%.�$ "� " #( -&�$&'!�� 4�)� H9���79�;;:� �)� '5�� - ,B (���������*�6 ) �-�#&$�.��)) $)�&!-.%" �.�!"��B%&."&!�)��&,#('2 , !$)�� =%&#, !$��"(�&!�� �&,#('2 , !$)��)$( $)��B(&"� )��)$( $.&�6$)���!"�$(�55&-�)&�!�.)*���
/012 /013 /012 /013 /012 /013
��!" 7��7����9H������������ 7��7����9H����� 9�7��7�H�������� 9�7��7�H��������� 7�;;7��:9H������ 7�;;7��:9H�������!"�#('D -$ :��:9��<��������������� :��:9��<�������� 3������������������ 3������������������� :��:9��<��������� :��:9��<���������'!)$(%-$&'!�&!����#('�( )) ��;��9������������������ �:���<����������� ����������������� �:��9������������� ��<��������������� 9����<������������&$/�6�.. ��<;<�<�:�������������� ���7:��:;������� 3������������������ 3������������������� ��<;<�<�:�������� ���7:��:;�������4&,,&!��#''. 9����<������������������ 97;��7����������� 3������������������ 3������������������� 9����<������������ 97;��7������������$6 (�)$(%-$%( )����!"� =%&#, !$ ���:;������������������ ���7:�9��������� �:�;9��;������� �:�:���;�������� �;�<�;�;99������ �;�::���<7������!5(�)$(%-$%( �9�;<;��7������������� �9�<<���9:����� 3������������������ 3������������������� �9�;<;��7������� �9�<<���9:����������'$�. 7��;9��<��H���������� 7�������<�H��� �;�7�:��99H��� �;�7�:����H���� 9���79�;;:H���� 9��7�:�7��H���
����-���� ����-����$�����4 ��� ��#�- ����
#�- ������ ������.$��
���""&$&'!�.� &!5'(,�$&'!� �B'%$� $6 � �&$/�)� -�#&$�.� �)) $)� ,�/� B � 5'%!"� &!� �'$ � ���*� �*� $'� $6 � 5&!�!-&�.�)$�$ , !$)*��(���.$ ��%�����$�� - ,B (����������$6 ��&$/�6�"�$'$�.� .'!�3$ (,�B'!")�'%$)$�!"&!��'5�H9;��������*�6&)��,'%!$�&!-.%" "� H�;��<������ '5� � ! (�.� 'B.&��$&'!� B'!")� B�-@ "� B/� $6 � 5%..� 5�&$6� �!"� -( "&$� '5� $6 � �&$/��H����9�����&!�$ ,#'(�(/�!'$ )�46&-6�4&..�B �( #�&"�4&$6��!�&))%�!- �'5�� ! (�.�'B.&��$&'!�B'!")��!"�H�����9�����&!�( 2 !% �B'!")�4&$6�$6 ��%B.&-��%&."&!���',,&))&'!*���'$�.�.'!�3$ (,�B'!")�#�/�B. �" -( �) "�B/�H��9;9�����"%(&!��$6 �5&)-�.�/ �(�"% �$'�$6 �( #�/, !$�'5�" B$�,�" �"%(&!��$6 �/ �(*��6 ��&$/�6�"�H���<7��<:�'5�'%$)$�!"&!��( 2'.2&!�� .'�!�5%!")�5'(�4�$ (��!"�) 4 (� 5%!"�#('D -$)��!"�H�<���9��'5�'%$)$�!"&!��(�&.�.'�!�5%!")�5'(���-�#&$�.�#('D -$*��$�!"�("��!"��''(�)�(�$ "�$6 ��&$/�)�,')$�( - !$�B'!"�&))% �����!"��55&(, "�$6&)�(�$&!��5'(��..� 8&)$&!��" B$*����!)�)�)$�$%$ )�.&,&$�$6 ��,'%!$�'5�� ! (�.�'B.&��$&'!�" B$����'2 (!, !$�.� !$&$/�,�/�&))% �$'���I�'5�&$)�$'$�.��)) )) "�2�.%�$&'!*��5$ (�)%B$(�-$&!��" "%-$&'!)��..'4 "�B/�$6 �)$�$%$ )��$6 �-%(( !$�" B$�.&,&$�5'(� $6 � �&$/� &)� H���7�<�7�7� �!"� " B$� '%$)$�!"&!�� )%BD -$� $'� $6 � .&,&$� &)� H�:��7��9���� . �2&!��H9��:;�����&!�. ��.�" B$�,�(�&!*����""&$&'!�.� &!5'(,�$&'!� '!� $6 � �&$/�)� .'!�3$ (,� " B$� -�!� B � 5'%!"� &!� �'$ � ���*� �*� '5� $6 � 5&!�!-&�.�)$�$ , !$)*�
�
���
/012 /013
1 ! (�.�'B.&��$&'!�B'!") �;��<�����H���������� �<�;�9����H��� ,#'(�(/�!'$ ) ����9������������������ ��<�������������� 2 !% �B'!")�3����%B.&-��%&."&!���',,&))&'! �����9���������������� ���;����������������'$�. 9;��������H���������� :��7�9����H���
����-����
� ���������������#� ��� ���������������-�������
#�- ������
��!������������� �����('# ($/�$�8�-'.. -$&'!)�&!-( �) "�;*��I�'2 (����;��!"�$6 �#')&$&2 �$( !"�6�)�-'!$&!% "�&!$'�$6 �5&()$�6�.5�'5����<*�6 ��)) )) "�2�.%�$&'!�&!-( �) "�;*7I�&!�����*���!:'!�$��� ��&"� ���$& "��6&)�5&!�!-&�.�( #'($�&)�" )&�! "�$'�#('2&" ��!�'2 (2& 4�'5�$6 ��&$/�)�5&!�!- )�5'(��..�&!$ ( )$ "�#�($& )*�K% )$&'!)� -'!- (!&!�� �!/� '5� $6 � &!5'(,�$&'!� #('2&" "� &!� $6 � ( #'($� '(� ( =% )$)� 5'(� �""&$&'!�.�&!5'(,�$&'!�)6'%."�B �"&( -$ "� $'� $6 ��&!�!- ��&( -$'(���&$/�'5�� .��&( ��;:9���*�� !$(�.���(@��2 *��� .��&( ����:;��:*�
�
�
������������������������
���������������������
City of Bel Aire, KansasStatement of Net Position
December 31, 2018
11
Governmental Business-type Activities Activities Total
Assets:Cash, including investments 7,889,149$ 4,063,264$ 11,952,413$ Receivables, net 19,616,075 380,207 19,996,282 Property held for resale 8,117,700 - 8,117,700 Capital assets:
Land and construction in progress 11,293,266 736,123 12,029,389 Other capital assets, net of depreciation 29,465,655 16,750,732 46,216,387
Total assets 76,381,845 21,930,326 98,312,171
Deferred outflows of resources:Deferred refunding 1,950,573 - 1,950,573 Deferred outflows - OPEB 14,938 - 14,938 Deferred outflows - pensions 277,610 62,265 339,875
Total deferred outflows of resources 2,243,121 62,265 2,305,386
Liabilities:Accounts payable 415,637 113,102 528,739 Accrued wages 51,770 14,540 66,310 Interest payable 340,691 - 340,691 Long-term liabilities
Due within one year 9,494,540 64,340 9,558,880 Due in more than one year 50,275,907 1,282,471 51,558,378
Total liabilities 60,578,545 1,474,453 62,052,998
Deferred inflows of resources:Deferred property tax receivable 2,775,180 - 2,775,180 Deferred inflows - OPEB 7,065 - 7,065 Deferred inflows - pensions 36,045 8,085 44,130
Total deferred inflows of resources 2,818,290 8,085 2,826,375
Net position:Net investment in capital assets (11,819,298) 16,391,959 4,572,661 Restricted for:
Debt service 208,104 - 208,104 Capital projects 452,218 - 452,218 Public Building Commission 133,557 - 133,557 Land Bank 235,865 - 235,865 Drug forfeiture 3,653 - 3,653
Unrestricted 26,014,032 4,118,094 30,132,126 Total net position 15,228,131$ 20,510,053$ 35,738,184$
The accompanying notes are an integral part of the basic financial statements.
City
of B
el A
ire, K
ansa
sSt
atem
ent o
f Act
iviti
esFo
r the
Yea
r End
ed D
ecem
ber 3
1, 2
018
12
Net
(Exp
ense
) Rev
enue
and
Cha
nges
in N
et P
ositi
onO
pera
ting
Cap
ital
Tota
lTo
tal
Cha
rges
for
Gra
nts
and
Gra
nts
and
Gov
ernm
enta
lB
usin
ess-
type
Func
tions
/Pro
gram
sEx
pens
esSe
rvic
esC
ontr
ibut
ions
Con
trib
utio
nsAc
tiviti
esAc
tiviti
esTo
tal
Gov
ernm
enta
l act
iviti
es:
Adm
inis
tratio
n, m
ayor
and
cou
ncil
609,
242
$
176,
385
$
44,3
18$
-
$
(388
,539
)$
-$
(388
,539
)$
La
w a
nd m
unic
ipal
cou
rt11
4,30
0
16
4,66
1
-
-
50
,361
-
50,3
61
Stre
ets
and
high
way
459,
243
-
-
-
(4
59,2
43)
-
(4
59,2
43)
Com
mun
ity d
evel
opm
ent
1,23
9,30
3
26,1
29
-
-
(1,2
13,1
74)
-
(1,2
13,1
74)
Pa
rks,
gro
unds
, rec
reat
ion,
poo
l, et
c.78
9,75
1
11
3,40
8
-
-
(6
76,3
43)
-
(6
76,3
43)
Polic
e89
5,29
1
-
-
-
(895
,291
)
-
(895
,291
)
N
onde
partm
enta
l and
oth
er21
8,58
4
-
-
-
(218
,584
)
-
(218
,584
)
La
nd s
ales
pro
ject
1,43
4,61
9
-
-
250,
000
(1,1
84,6
19)
-
(1,1
84,6
19)
C
apita
l im
prov
emen
t pro
gram
85,8
54
-
-
882,
373
796,
519
-
796,
519
I nte
rest
and
fees
on
long
-term
deb
t1,
727,
537
-
-
-
(1,7
27,5
37)
-
(1,7
27,5
37)
To
tal g
over
nmen
tal a
ctiv
ities
7,57
3,72
4
480,
583
44,3
18
1,
132,
373
(5
,916
,450
)
-
(5
,916
,450
)
Bus
ines
s-ty
pe a
ctiv
ities
:W
ater
2,10
6,75
8
2,42
8,44
1
-
-
-
32
1,68
3
321,
683
Sew
er1,
934,
656
2,
273,
060
-
-
-
338,
404
33
8,40
4
N
onm
ajor
bus
ines
s-ty
pe fu
nds
401,
640
599,
777
-
-
-
19
8,13
7
198,
137
Tota
l bus
ines
s-ty
pe a
ctiv
ities
4,44
3,05
4
5,30
1,27
8
-
-
-
85
8,22
4
858,
224
Tota
l 12
,016
,778
$
5,78
1,86
1$
44,3
18$
1,
132,
373
$
(5
,916
,450
)
85
8,22
4
(5,0
58,2
26)
Gen
eral
reve
nues
:
Prop
erty
taxe
s 2,
521,
355
-
2,
521,
355
Sale
s ta
xes
1,27
7,73
0
-
1,27
7,73
0
O
ther
taxe
s97
6,91
9
-
97
6,91
9
Fran
chis
e fe
es60
9,70
3
-
60
9,70
3
Inve
stm
ent e
arni
ngs
119,
589
23,8
70
14
3,45
9
Mis
cella
neou
s62
8,65
4
15,1
04
64
3,75
8
Tran
sfer
s(2
62,8
33)
26
2,83
3
-
To
tal g
ener
al re
venu
es5,
871,
117
30
1,80
7
6,17
2,92
4
Cha
nge
in n
et p
ositi
on(4
5,33
3)
1,
160,
031
1,11
4,69
8
Net
pos
ition
, beg
inni
ng o
f yea
r15
,370
,142
19,3
50,0
22
34,7
20,1
64
Pr
ior p
erio
d ad
just
men
t(9
6,67
8)
-
(9
6,67
8)
N
et p
ositi
on, e
nd o
f yea
r15
,228
,131
$
20,5
10,0
53$
35,7
38,1
84$
Prog
ram
Rev
enue
s
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
bas
ic fi
nanc
ial s
tate
men
ts.
City
of B
el A
ire, K
ansa
sBa
lanc
e Sh
eet
Gov
ernm
enta
l Fun
dsD
ecem
ber 3
1, 2
017
13
Non
maj
orTo
tal
Bon
d an
dC
apita
lPu
blic
Bui
ldin
gG
over
nmen
tal
Gov
ernm
enta
lG
ener
alIn
tere
stPr
ojec
tsC
omm
issi
onLa
nd B
ank
Fund
sFu
nds
Asse
ts:
C
ash,
incl
udin
g in
vest
men
ts2,
447,
911
$
548,
795
$
3,
732,
902
$
133,
557
$
34
7,22
8$
678,
756
$
7,
889,
149
$
R
ecei
vabl
es (n
et o
f allo
wan
ce fo
r unc
olle
ctib
les)
Prop
erty
taxe
s2,
775,
180
-
-
-
-
-
2,77
5,18
0
Sp
ecia
l ass
essm
ents
-
16,2
46,6
07
-
-
-
-
16,2
46,6
07
Mot
or v
ehic
le a
nd R
V ta
x32
,928
-
-
-
-
-
32
,928
R
eal e
stat
e m
ortg
age
note
rece
ivab
le27
3,69
7
-
-
-
-
-
273,
697
Sa
les
tax
238,
372
-
-
-
-
-
23
8,37
2
Fran
chis
e ta
xes
and
fees
44,2
35
-
-
-
-
-
44,2
35
Oth
er
-
-
-
-
-
5,05
6
5,
056
Ad
vanc
es to
oth
er fu
nds
800,
000
-
-
-
-
-
80
0,00
0
Pr
oper
ty h
eld
for r
esal
e-
-
-
-
8,
117,
700
-
8,11
7,70
0
Tota
l ass
ets
6,61
2,32
3$
16
,795
,402
$
3,
732,
902
$
133,
557
$
8,
464,
928
$
683,
812
$
36
,422
,924
$
Liab
ilitie
s:
Acco
unts
pay
able
93,8
18$
-$
207,
816
$
-
$
11
1,36
3$
2,64
0$
41
5,63
7$
Ac
crue
d lia
bilit
ies
49,6
59
-
-
-
-
2,11
1
51
,770
Adva
nces
from
oth
er fu
nds
-
-
800,
000
-
-
-
80
0,00
0
To
tal l
iabi
litie
s14
3,47
7
-
1,00
7,81
6
-
11
1,36
3
4,75
1
1,
267,
407
Def
erre
d in
flow
s of
reso
urce
s:
Def
erre
d pr
oper
ty ta
x re
ceiv
able
2,77
5,18
0
-
-
-
-
-
2,
775,
180
U
nava
ilabl
e re
venu
e - s
peci
al a
sses
smen
ts-
16
,246
,607
-
-
-
-
16
,246
,607
Tota
l def
erre
d in
flow
s of
reso
urce
s2,
775,
180
16,2
46,6
07
-
-
-
-
19,0
21,7
87
Fund
bal
ance
:
Non
spen
dabl
e1,
073,
697
-
-
-
8,11
7,70
0
-
9,
191,
397
R
estri
cted
-
548,
795
2,
725,
086
133,
557
23
5,86
5
455,
871
4,
099,
174
A
ssig
ned
-
-
-
-
-
223,
190
22
3,19
0
U
nass
igne
d2,
619,
969
-
-
-
-
-
2,61
9,96
9
Tota
l fun
d ba
lanc
e3,
693,
666
548,
795
2,
725,
086
133,
557
8,
353,
565
679,
061
16
,133
,730
Tota
l lia
bilit
ies,
def
erre
d in
flow
s of
r
esou
rces
and
fund
bal
ance
6,61
2,32
3$
16
,795
,402
$
3,
732,
902
$
133,
557
$
8,
464,
928
$
683,
812
$
36
,422
,924
$
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
bas
ic fi
nanc
ial s
tate
men
ts.
City of Bel Aire, KansasReconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net PositionDecember 31, 2018
14
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balance -- governmental funds 16,133,730$
Capital assets used in governmental activities are not financial resourcesand, therefore, are not reported in the funds.
Cost 57,921,485$ Accumulated depreciation (17,162,564) 40,758,921
Special assessments receivable are not available to pay for current periodexpenditures and, therefore, are reported as unavailable in the fund statements 16,246,607
Deferred outflows of resources are not available and payable in the current periodand, therefore, are not reported in the funds.
Deferred outflows - pensions 277,610 Deferred outflows - OPEB 14,938
Long-term liabilities, including bonds payable, are not due and payable in thecurrent period and, therefore, are not reported as liabilities in the funds.
Accrued interest payable (340,691) General obligation bonds payable (27,890,000) Revenue bonds - Public Building Commission (21,135,000) Deferred refunding 1,950,573 Temporary notes (8,805,000) Net pension liability (1,087,242) Total OPEB liability (83,779) Premiums (431,694) Rail loan (290,150) Compensated absences (47,582) (58,160,565)
Other deferred inflows of resources are not due and payable in the current periodand, therefore, are not reported in the funds.
Deferred inflows - pensions (36,045) Deferred inflows - OPEB (7,065)
Total net position -- governmental activities 15,228,131$
The accompanying notes are an integral part of the basic financial statements.
City
of B
el A
ire, K
ansa
sSt
atem
ent o
f Rev
enue
s, E
xpen
ditu
res
and
Cha
nges
in F
und
Bala
nces
Gov
ernm
enta
l Fun
dsFo
r the
Yea
r End
ed D
ecem
ber 3
1, 2
018
15
Non
maj
orTo
tal
Bon
d an
dC
apita
lPu
blic
Bui
ldin
gG
over
nmen
tal
Gov
ernm
enta
lG
ener
alIn
tere
stPr
ojec
tsC
omm
issi
onLa
nd B
ank
Fund
sFu
nds
Rev
enue
s:Ta
xes
and
shar
ed re
venu
es4,
273,
970
$
195,
323
$
-
$
-
$
-
$
30
6,71
1$
4,77
6,00
4$
In
terg
over
nmen
tal r
even
ues
44,3
18
-
470,
990
-
-
-
51
5,30
8
Fran
chis
e fe
es60
9,70
3
-
-
-
-
-
609,
703
C
ourt
fines
164,
661
-
-
-
-
-
16
4,66
1
Lice
nses
, per
mits
and
fees
289,
793
-
-
-
-
-
28
9,79
3
Ren
ts a
nd s
ales
26,1
29
-
-
89,1
27
-
-
115,
256
Sp
ecia
l ass
essm
ents
-
2,06
5,89
7
-
-
-
-
2,
065,
897
Con
tribu
tion
of p
rope
rty h
eld
for r
esal
e-
-
-
-
25
0,00
0
-
250,
000
O
ther
83,9
52
519
49
,320
-
4,
096
30,3
15
168,
202
T
otal
reve
nues
5,49
2,52
6
2,
261,
739
520,
310
89
,127
25
4,09
6
337,
026
8,
954,
824
Expe
nditu
res:
Cur
rent
:
Adm
inis
tratio
n, m
ayor
and
cou
ncil
611,
509
-
-
-
-
-
61
1,50
9
La
w a
nd m
unic
ipal
cou
rt11
4,15
5
-
-
-
-
-
114,
155
Stre
ets
and
high
way
-
-
-
-
-
282,
596
28
2,59
6
C
omm
unity
dev
elop
men
t17
2,47
1
-
-
-
-
-
172,
471
Park
s, g
roun
ds, r
ecre
atio
n, p
ool,
etc.
726,
933
-
-
-
-
-
72
6,93
3
Po
lice
913,
198
-
-
-
-
-
91
3,19
8
N
onde
partm
enta
l and
oth
er21
8,30
7
-
-
2,71
5
-
-
22
1,02
2
La
nd p
roje
ct35
2,50
7
-
-
-
303,
500
-
65
6,00
7
Cap
ital o
utla
y/pr
ojec
ts-
-
1,
341,
576
-
-
556,
330
1,
897,
906
Deb
t Ser
vice
:
Prin
cipa
l ret
irem
ent
5,00
8
1,
815,
000
215,
284
58
5,00
0
-
-
2,62
0,29
2
Inte
rest
and
oth
er-
88
1,47
3
131,
876
73
5,04
4
-
-
1,74
8,39
3
Deb
t iss
uanc
e co
sts
-
856
5,
005
-
-
5,86
1
T
otal
exp
endi
ture
s3,
114,
088
2,69
7,32
9
1,
693,
741
1,32
2,75
9
30
3,50
0
838,
926
9,
970,
343
Exce
ss (d
efic
ienc
y) o
f rev
enue
s
over
(und
er) e
xpen
ditu
res
2,37
8,43
8
(4
35,5
90)
(1,1
73,4
31)
(1
,233
,632
)
(49,
404)
(5
01,9
00)
(1,0
15,5
19)
Oth
er fi
nanc
ing
sour
ces
(use
s):
La
nd s
ales
-
-
-
-
(789
,973
)
-
(7
89,9
73)
Tr
ansf
ers
in-
76
9,23
1
-
1,28
4,80
8
-
50
0,00
0
2,55
4,03
9
Tran
sfer
s ou
t(1
,999
,431
)
-
-
-
-
(48,
619)
(2
,048
,050
)
Tot
al o
ther
fina
ncin
g so
urce
s (u
ses)
(1,9
99,4
31)
76
9,23
1
-
1,28
4,80
8
(7
89,9
73)
451,
381
(2
83,9
84)
N
et c
hang
e in
fund
bal
ance
379,
007
33
3,64
1
(1,1
73,4
31)
51
,176
(8
39,3
77)
(50,
519)
(1
,299
,503
)
Fund
bal
ance
, beg
inni
ng o
f yea
r3,
314,
659
215,
154
3,
898,
517
82,3
81
9,19
2,94
2
72
9,58
0
17,4
33,2
33
Fund
bal
ance
, end
of y
ear
3,69
3,66
6$
54
8,79
5$
2,72
5,08
6$
13
3,55
7$
8,35
3,56
5$
67
9,06
1$
16,1
33,7
30$
The
acco
mpa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
bas
ic fi
nanc
ial s
tate
men
ts.
City of Bel Aire, KansasReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of ActivitiesFor the Year Ended December 31, 2018
16
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balance-- total governmental funds (1,299,503)$
Governmental funds report capital outlays as expenditures. However, in the statementof activities, the cost of those assets is allocated over their estimated useful lives andreported as depreciation expense. This is the amount by which capital outlays exceededdepreciation expense in the current period.
Depreciation expense (1,216,426) Capital assets capitalized 981,106 (235,320)
In the statement of activities, the gain or loss from the sale of capital assets isreported, whereas in the governmental funds, only any proceeds from the saleincrease financial resources. Thus, the change in net position differs from the change in fund balance by the cost of capital assets sold. (5,850)
Payments received on certain assets are recognized as revenue when received in the fund.However, in the statement of net position, revenue is recognized when earned. (1,183,524)
Payment of pension contributions is an expenditure in the governmental funds, but reduces the netpension liability in the statement of net position. Additionally, the effect of changes in deferred inflows and deferred outflows for pensions are only recorded in the statement of activities. (26,253)
Payment of OPEB contributions is an expenditure in the governmental funds, but reduces the totalOPEB liability in the statement of net position. Additionally, the effect of changes in deferred inflows and deferred outflows for OPEB are only recorded in the statement of activities. 20,772
Repayment of bond principal and other long-term obligations is an expenditure in thegovernmental funds, but the repayment reduces long-term liabilities in the statement of net position.
General obligation bonds 1,815,000 Temporary notes 175,000 Revenue bond - Public Building Commission 585,000 Change in deferred charge on refunding (118,217) Rail loan 40,284 Capital leases 5,008 2,502,075
In the statement of activities, interest is accrued on outstanding bonds, whereas ingovernmental funds, an interest expenditure is reported when due. 146,610
The amortization of bond premiums affects long-term assets and liabilities on the statementof net position, but does not provide or use current financial resources to governmental funds. 37,135
In the statement of activities, compensated absences are measured by the amountsearned during the year. In the governmental funds, however, expenditures for thisitem is measured by the amount of financial resources used (essentially, the amounts actually paid). This year, the following difference was noted: Compensated absences earned exceeded benefits paid (1,475)
Change in net position of governmental activities (45,333)$
The accompanying notes are an integral part of the basic financial statements.
City of Bel Aire, KansasStatement of Net Position
Proprietary FundsDecember 31, 2018
17
NonmajorProprietary
Water Sewer Funds TotalAssets:Current assets:
Cash, including investments 1,557,363$ 2,100,308$ 405,593$ 4,063,264$ Receivables, net 161,155 185,527 33,525 380,207
Total current assets 1,718,518 2,285,835 439,118 4,443,471
Noncurrent assets:Capital assets:
Land and construction in progress 303,968 432,155 - 736,123 Other capital assets, net of depreciation 7,515,195 9,235,537 - 16,750,732
Total noncurrent assets 7,819,163 9,667,692 - 17,486,855
Total assets 9,537,681 11,953,527 439,118 21,930,326
Deferred outflows of resources:Pension related items 21,208 41,057 - 62,265
Liabilities:Current liabilities:
Accounts payable 55,218 25,302 32,582 113,102 Accrued payroll 2,575 11,965 - 14,540 Revolving loan - current 38,278 23,940 - 62,218 Compensated absences 670 1,452 - 2,122
Total current liabilities 96,741 62,659 32,582 191,982
Noncurrent liabilities:Revolving loan 639,837 392,841 - 1,032,678 Net pension liability 83,060 160,797 - 243,857 Compensated absences 1,640 4,296 - 5,936
Total noncurrent liabilities 724,537 557,934 - 1,282,471
Total liabilities 821,278 620,593 32,582 1,474,453
Deferred inflows of resources:Pension related items 2,754 5,331 - 8,085
Net position:Investment in capital assets 7,141,048 9,250,911 - 16,391,959 Unrestricted 1,593,809 2,117,749 406,536 4,118,094
Total net position 8,734,857$ 11,368,660$ 406,536$ 20,510,053$
The accompanying notes are an integral part of the basic financial statements.
City of Bel Aire, KansasStatement of Revenues, Expenditures and Changes in Net Position
Proprietary FundsFor the Year Ended December 31, 2018
18
NonmajorProprietary
Water Sewer Funds TotalOperating revenues: Charges for services 2,428,441$ 2,273,060$ 599,777$ 5,301,278$
Operating expenses: Personnel 129,811 306,286 - 436,097 Contractual services 110,880 20,363 401,640 532,883 Water purchases 354,924 - - 354,924 Operations and maintenance - CCUA 391,229 341,682 - 732,911 Debt service - CCUA 545,349 693,775 - 1,239,124 Payment in lieu of franchise fees 50,000 100,000 - 150,000 Other operating expenses 224,831 74,257 299,088 Depreciation 299,734 398,293 - 698,027 Total operating expenses 2,106,758 1,934,656 401,640 4,443,054
Operating income 321,683 338,404 198,137 858,224
Nonoperating revenues and expenses: Interest and other 24,019 14,955 - 38,974 Capital contributions 214,582 554,240 - 768,822 Total nonoperating revenue 238,601 569,195 - 807,796
Income before transfers 560,284 907,599 198,137 1,666,020
Transfers out (148,005) (207,984) (150,000) (505,989)
Change in net position 412,279 699,615 48,137 1,160,031
Net position, beginning of year 8,322,578 10,669,045 358,399 19,350,022
Net position, end of year 8,734,857$ 11,368,660$ 406,536$ 20,510,053$
The accompanying notes are an integral part of the basic financial statements.
City of Bel Aire, KansasStatement of Cash Flows
Proprietary FundsFor the Year Ended December 31, 2018
19
NonmajorProprietary
Water Sewer Funds TotalCash flows from operating activities: Cash received from customers 2,434,031$ 2,253,242$ 597,384$ 5,284,657$ Payments to suppliers for goods and services (1,710,597) (1,297,315) (399,972) (3,407,884) Payments to employees for salaries and benefits (146,727) (269,133) - (415,860) Net cash flow from operating activities 576,707 686,794 197,412 1,460,913
Cash flows from non-capital financing activities: Transfers to other funds (148,005) (207,984) (150,000) (505,989) Net cash flow from non-capital financing activities (148,005) (207,984) (150,000) (505,989)
Cash flows from capital and related financing activities: Revolving loan payments (36,475) (22,495) - (58,970) Proceeds from sale of assets 134 127 - 261 Net cash flow from capital and related financing activities (36,341) (22,368) - (58,709)
Cash flows from investing activities: Interest on investments 24,019 14,955 - 38,974 Net cash flow from investing activities 24,019 14,955 - 38,974
Net increase in cash and cash equivalents 416,380 471,397 47,412 935,189
Cash and cash equivalents, beginning of the year 1,140,983 1,628,911 358,181 3,128,075 Cash and cash equivalents, end of the year 1,557,363$ 2,100,308$ 405,593$ 4,063,264$
Reconciliation of operating income to net cash flow from operating activities: Operating income 321,683$ 338,404$ 198,137$ 858,224$ Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation expense 299,734 398,293 - 698,027 Change in net pension liability (19,867) 36,255 - 16,388 Change in deferred outflows - pensions (922) (12,957) - (13,879) Change in deferred inflows - pensions 663 (170) - 493 Change in accounts receivable 5,590 (19,818) (2,393) (16,621) Change in accounts payable (33,384) (67,238) 1,668 (98,954) Change in accrued liabilities 3,210 14,025 - 17,235
Net cash flow from operating activities 576,707$ 686,794$ 197,412$ 1,460,913$
Schedule of non-cash capital and related financing activities: Contributions of capital assets 214,582$ 554,240$ -$ 768,822$
The accompanying notes are an integral part of the basic financial statements.
�����������
�������
������������������������
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!���6 ��&$/�'5�� .��&( ����!)�)� >�&$/?� &)� &!-'(#'(�$ "�%!" (� $6 � .�4)�'5� $6 �$�$ �'5���!)�)*�6 ��&$/��"'#$ "����'%!-&.3��!�� (�5'(,�'5��&$/��'2 (!, !$�&!���!%�(/�������-'!)&)$&!��'5��!� . -$ "���/'(��!"��'%!-&.��!"��!��##'&!$ "��&$/���!�� (�$'�'2 () �$6 �"�&./�'# (�$&'!)*���6 ��&$/�#('2&" )�) (2&- )�$'�$6 �-&$&J !)� &!�$6 ��( �)�'5�)$( $)��4�$ (�) (2&- ��4�)$ 4�$ (�) (2&- ��-',,%!&$/�" 2 .'#, !$��#%B.&-�)�5 $/��#.�!!&!���!"�J'!&!���#�(@)��!"�( -( �$&'!��#%B.&-�4'(@)��!"�� ! (�.��",&!&)$(�$&2 �) (2&- )*��6 � ,'( � )&�!&5&-�!$� �--'%!$&!�� �!"� ( #'($&!�� #'.&-& )� �!"� #(�-$&- )� ,#.'/ "� B/� $6 � �&$/� �( � �)�5'..'4)0���J� ��� �����!��������1 ! (�../��-- #$ "��--'%!$&!��#(&!-&#. )�( =%&( �$6�$�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)�#( ) !$�$6 ��&$/�>$6 �#(&,�(/��'2 (!, !$?��!"�&$)�-',#'! !$�%!&$)*��',#'! !$�%!&$)��( �( =%&( "�$'�B �&!-.%" "�&!�$6 ��&$/�)�( #'($&!�� !$&$/�B -�%) �'5�$6 �)&�!&5&-�!- �'5�$6 &(�'# (�$&'!�.�'(�5&!�!-&�.�( .�$&'!)6&#)�4&$6�$6 ��&$/*���Blended Component Unit: 6 � )$�$ , !$)� &!-.%" � $6 � 5&!�!-&�.� "�$�� '5� $6 � �%B.&-� �%&."&!���',,&))&'!�>���?*�6 �����4�)�5'(, "�) 2 (�.�/ �()���'�&!�'(" (�$'�5&!�!- ��!"�B%&."�$6 ��?��&$/���..�� �?� $6 � )4&,,&!�� #''.� �?� �!� 55.% !$� .&! � 5'(� $6 � )�. � '5� ��(�/� 4�$ (�� $'� &..'4B !"� �!"� 7?� $'�5&!�!- �$6 � &!"%)$(&�.�#�(@�'5� $6 � .�!"�#('D -$*�6 �����&))% "�" B$� &!)$(%, !$)�>( 2 !% �B'!")?�$'�5&!�!- � $6 �#('D -$)��!"� . �) )� $6 ��&$/���..��!"�)4&,,&!��#''.� $'� $6 ��&$/*��..� ( 2 !% )� 5(',��&$/���..�( !$)���(�/�4�$ (�)�. )��!"�#''.�'# (�$&'!)��( �#. "� "�5'(�" B$�) (2&- �'!�$6 �( )# -$&2 �����( 2 !% �B'!")*����.$6'%�6� $6 � ���� &)� �� . ��../� ) #�(�$ � '(��!&J�$&'!�� $6 � �&$/� &)� 5&!�!-&�../� �--'%!$�B. � 5'(� $6 �-',#'! !$� %!&$� &!� �--'("�!- � 4&$6� 1'2 (!, !$�.� �--'%!$&!�� $�!"�(")� �'�("� >1��?� )$�!"�(")*�6 �����)��'2 (!&!��B'"/�&)�)%B)$�!$&�../�$6 �)�, ��)�$6 ��'2 (!&!��B'"/�'5�$6 ��&$/F�$6 ( 5'( �$6 �����&)��B. !" "��4&$6�$6 ��&$/�)�5&!�!-&�.�)$�$ , !$)*��'(�5&!�!-&�.�( #'($&!���$6 ��-$&2&$& )�'5�$6 ������( ��--'%!$ "�5'(�4&$6&!�$6 �)# -&�.�( 2 !% �5%!")�4&$6&!�$6 ��&$/�)�5&!�!-&�.�)$�$ , !$)*�� #�(�$ ��%"&$ "�5&!�!-&�.�)$�$ , !$)��( �!'$�#( #�( "�5'(�$6 ����*���!��%�%)$� 7�� ���9�� $6 ��&$/� )$�B.&)6 "� $6 �� .��&( ���!"���!@� >��!"���!@?� &!� -'!5'(,�!- �4&$6��**�*� ��39<��� $� ) =*� �.$6'%�6� $6 � ��!"� ��!@� &)� �� . ��../� ) #�(�$ � '(��!&J�$&'!�� $6 � �&$/� &)�5&!�!-&�../��--'%!$�B. �5'(�$6 �-',#'! !$�%!&$�&!��--'("�!- �4&$6�1���)$�!"�(")*�6 ���!"���!@�)��'2 (!&!��B'"/�&)�)%B)$�!$&�../�$6 �)�, ��)�$6 ��'2 (!&!��B'"/�'5�$6 ��&$/F�$6 ( 5'( �$6 ���!"���!@�&)��B. !" "��4&$6�$6 ��&$/�)�5&!�!-&�.�)$�$ , !$)*��'(�5&!�!-&�.�( #'($&!���$6 ��-$&2&$& )�'5�$6 ���!"���!@��( ��--'%!$ "�5'(�4&$6&!�$6 �)# -&�.�( 2 !% �5%!")�4&$6&!�$6 ��&$/�)�5&!�!-&�.�)$�$ , !$)*���� #�(�$ ��%"&$ "�5&!�!-&�.�)$�$ , !$)��( �!'$�#( #�( "�5'(�$6 ���!"���!@*����
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��Related Organizations: 6 � �6&)6'.,� �( @� �$&.&$/� �%$6'(&$/� >�%$6'(&$/?� &)� �� =%�)&3,%!&-&#�.��'2 (!, !$�.� !$&$/� 5'(, "� &!� ����� &!� �--'("�!- � 4&$6� ��!)�)� $�$%$ )� ��3�<��� $6('%�6� �<�<��( 5 (( "� $'� �)� $6 � ��!)�)� �!$ (.'-�.� �''# (�$&'!� �-$*� �$� 4�)� 5'(, "� $6('%�6� $6 � D'&!$� �-$&'!� '5� $6 ��&$& )�'5���(@��&$/��!"�� .��&( ����!)�)��5'(�$6 �#%(#') �'5�#('2&"&!���46'. )�. ��4�$ (��4�)$ 4�$ (��!"�%$&.&$/�) (2&- )�$'�$6 �-&$& )*��6 ��%$6'(&$/�)�#%(#') � &)� $'�) (2 � $6 � $4'�-&$& )��!"� $6 � 5%!-$&'!�'5� $6 �-&$& )� &)� $'� &!)%( � $6�$� $6 � 8# !) )�'5� $6 ��%$6'(&$/�( .�$ "�$'�$6 �4�$ (��!"�4�)$ 4�$ (�'# (�$&'!)�'5� $6 �#('D -$�-'!)$(%-$ "�B/�$6 �( 2 !% �B'!")��( �#�&"*�6 �-&$& )�5'(,&!��$6 ��%$6'(&$/�6�2 �#.�!! "�$6�$�$6 ��%$6'(&$/�)6�..�!'$�-( �$ �)%(#.%)�-�)6�B�.�!- )�5(',�$6 �%) �'5�-&$/�5%!")*��6 ��%$6'(&$/�"' )�!'$�, $�1���( =%&( , !$)�$'�B �( #'($ "��)���-',#'! !$�%!&$��B%$�"' )�, $�$6 �-(&$ (&���)� D'&!$�2 !$%( � &!� $6 ��&$/�)� 5&!�!-&�.�)$�$ , !$)F�6'4 2 (��!'��)) $�4&..�B �( -'(" "��)�$6 ��&$/�"' )�!'$�6�2 ��!� =%&$/�&!$ ( )$*���/, !$)�,�" �B/�$6 ��&$/�5'(�" B$�) (2&- ��!"�)%B)&"&J&!��'# (�$&!��-')$)�4&..�B �( -'(" "��)�'# (�$&!�� 8# !) )�'5�$6 ��&$/*� ��.)'��'$ ��G*�*���%"&$ "�5&!�!-&�.�)$�$ , !$)��( ��2�&.�B. �5'(�$6 ��6&)6'.,��( @��$&.&$/��%$6'(&$/��$�$6 �'55&- �'5�$6 ��&$/�'5���(@��&$/��:�����*��/"(�%.&-����(@��&$/����!)�)�:;��<*��J� ��������4 ����������6 ��&$/�)� B�)&-� 5&!�!-&�.� )$�$ , !$)� &!-.%" �B'$6��'2 (!, !$34&" � >( #'($&!�� $6 ��&$/� �)���46'. ?��!"�5%!"�5&!�!-&�.�)$�$ , !$)�>( #'($&!��$6 ��&$/�)�,�D'(�5%!")?*��1'2 (!, !$34&" ��&!�!-&�.�$�$ , !$)���6 �$�$ , !$�'5�� $��')&$&'!��!"�$6 �$�$ , !$�'5��-$&2&$& )�"&)#.�/�&!5'(,�$&'!��B'%$�$6 ��&$/��)���46'. *� 1'2 (!, !$�.� �-$&2&$& )� �( � � ! (�../� 5&!�!- "� $6('%�6� $�8 )�� &!$ (�'2 (!, !$�.� ( 2 !% )���!"� '$6 (� !'!3 8-6�!� � $(�!)�-$&'!)�� �!"� �( � ( #'($ "� ) #�(�$ ./� 5(',� B%)&! ))3$/# � �-$&2&$& )��46&-6�( ./� $'���)&�!&5&-�!$� 8$ !$�'!� 5 )��!"�-6�(� )� 5'(�)%##'($*��.&,&!�$&'!)�'5� &!$ (5%!"�-6�(� )��!"� B�.�!- )� 6�2 � B !� ,�" � &!� $6 ) � )$�$ , !$)� $'� ,&!&,&J � $6 � "'%B. 3-'%!$&!�� '5� &!$ (!�.��-$&2&$& )*��6 �$�$ , !$�'5��-$&2&$& )�#( ) !$)���-',#�(&)'!�B $4 !�"&( -$� 8# !) )��!"�#('�(�,�( 2 !% )�5'(� �-6�#('�(�,�'5� $6 ��'2 (!, !$�.� �-$&2&$& )*��&( -$� 8# !) )��( � )# -&5&-�../� �))'-&�$ "�4&$6���) (2&- ��#('�(�,�'(�" #�($, !$��!"��( �$6 ( 5'( �-. �(./�&" !$&5&�B. �$'���#�($&-%.�(�5%!-$&'!*��('�(�,�( 2 !% )�&!-.%" �-6�(� )�#�&"�B/�$6 �( -&#& !$)�'5�$6 ��''")�'(�) (2&- )�'55 ( "�B/�$6 �#('�(�,)��!"��(�!$)� �!"� -'!$(&B%$&'!)� $6�$� �( � ( )$(&-$ "� $'� , $&!�� $6 � '# (�$&'!�.� '(� -�#&$�.� ( =%&( , !$)� '5� ��#�($&-%.�(�#('�(�,*�� 2 !% )�$6�$��( �!'$�-.�))&5& "��)�#('�(�,�( 2 !% )��( �#( ) !$ "��)�� ! (�.�( 2 !% )*� 6 � -',#�(&)'!� '5� #('�(�,� ( 2 !% )� �!"� 8# !) )� &" !$&5& )� $6 � 8$ !$� $'� 46&-6� �-6�#('�(�,�&)�) .535&!�!-&!��'(�"(�4)�5(',�$6 �� ! (�.�( 2 !% )�'5�$6 ��&$/*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��6 � �&$/�)� ! $� #')&$&'!� &)� ( #'($ "� &!� $6( � #�($)� +� ! $� &!2 )$, !$� &!� -�#&$�.� �)) $)F� ( )$(&-$ "� ! $�#')&$&'!F��!"�%!( )$(&-$ "�! $�#')&$&'!*�6 ��'2 (!, !$34&" �5'-%)�&)�,'( �'!�$6 �)%)$�&!�B&.&$/�'5�$6 ��&$/��)��!� !$&$/��!"�$6 �-6�!� �&!�$6 ��&$/�)�! $�#')&$&'!�( )%.$&!��5(',�$6 �-%(( !$�/ �(�)��-$&2&$& )*���%!"��&!�!-&�.�$�$ , !$)���%!"�5&!�!-&�.�)$�$ , !$)�( #'($�" $�&. "�&!5'(,�$&'!��B'%$�$6 ��&$/*�6 �5'-%)�'5��'2 (!, !$�.�5%!"�5&!�!-&�.� )$�$ , !$)� &)� '!� ,�D'(� 5%!")� (�$6 (� $6�!� ( #'($&!�� 5%!")� B/� $/# *� ��-6� ,�D'(� 5%!"� &)�#( ) !$ "�&!���) #�(�$ �-'.%,!*��'!,�D'(�5%!")��( ����( ��$ "��!"�#( ) !$ "�&!���)&!�. �-'.%,!*��6 �,�D'(��'2 (!, !$�.�5%!")�'5�$6 ��&$/��( �" )-(&B "�B .'40��6 �General Fund &)�$6 ��'2 (!, !$�)�#(&,�(/�'# (�$&!��5%!"*��$��--'%!$)�5'(��..�5&!�!-&�.�( )'%(- )�'5�$6 �� ! (�.��'2 (!, !$�� 8- #$�$6') �( =%&( "�$'�B ��--'%!$ "�5'(�&!��!'$6 (�5%!"*��6 � Bond and Interest Fund &)� %) "� $'� #�/� $6 � � ! (�.� 'B.&��$&'!� �!"� ( 2 !% � B'!"� " B$� ) (2&- �( =%&( , !$)�'5�$6 ��&$/*���6 �Capital Projects Fund &)�%) "�$'��--'%!$�5'(�$ ,#'(�(/�" B$�&))% "�5%!")�$6�$��( �%) "�$'�5&!�!- �)# -&5&-�#('D -$)�&!�$6 �)6'($3$ (,*���6 �Public Building Commission�&)�%) "�$'�5&!�!- ��!"�#�/�5'(�- ($�&!�#('D -$)�%)&!��( 2 !% �B'!")*���6 �Land Bank Fund &)�%) "� $'��--'%!$� 5'(�,�&!$�&!&!���!"�) ..&!��( �.�#('# ($/� .'-�$ "�4&$6&!� $6 ��&$/*��6 � ,�D'(� #('#(& $�(/� 5%!")� '5� $6 � �&$/� �( � $6 � Water� Fund �!"� $6 � Sewer� Fund �!"� �( � %) "� $'��--'%!$�5'(�( 2 !% )��!"� 8# !) )�'5�$6') ��-$&2&$& )*���J� ���� ������������������������������������������������������������
4 ����������
1'2 (!, !$34&" � �&!�!-&�.� $�$ , !$)� +� 6 � �'2 (!, !$34&" � 5&!�!-&�.� )$�$ , !$)� �( � ( #'($ "�%)&!��$6 � -'!',&-�( )'%(- )�, �)%( , !$�5'-%)��!"�$6 ��--(%�.�B�)&)�'5��--'%!$&!�*��..��)) $)��!"�.&�B&.&$& )� �))'-&�$ "� 4&$6� $6 � '# (�$&'!� '5� $6 � �&$/� �( � &!-.%" "� '!� $6 � )$�$ , !$� '5� ! $� #')&$&'!*�� 2 !% )� �( � ( -'(" "� 46 !� �(! "� �!"� 8# !) )� �( � ( -'(" "� 46 !� �� .&�B&.&$/� &)� &!-%(( "��( ��(". ))� '5� $6 � $&,&!�� '5� ( .�$ "� -�)6� 5.'4)*� �('# ($/� $�8 )� �( � ( -'�!&J "� �)� ( 2 !% )� &!� $6 �B%"� $�/ �(�5'(�46&-6�$6 /��( �. 2& "*�# -&�.��)) )), !$)��( �( -'�!&J "�46 !�. 2& "*�1(�!$)��!"�)&,&.�(� &$ ,)� �( � ( -'�!&J "� �)� ( 2 !% � �)� )''!� �)� �..� .&�&B&.&$/� ( =%&( , !$)� &,#') "� B/� $6 �#('2&" (�6�2 �B !�, $*���%!"��&!�!-&�.�$�$ , !$)�+�1'2 (!, !$�.�5%!"�5&!�!-&�.�)$�$ , !$)��( �( #'($ "�%)&!��$6 �-%(( !$�5&!�!-&�.� ( )'%(- )� , �)%( , !$� 5'-%)� �!"� $6 � ,'"&5& "� �--(%�.� B�)&)� '5� �--'%!$&!�*� &$6� $6&)�, �)%( , !$�5'-%)��'!./�-%(( !$��)) $)��!"�-%(( !$� .&�B&.&$& )�� ! (�../��( �&!-.%" "�'!�$6 �B�.�!- �)6 $*�� 2 !% )��( �( -'�!&J "��)�)''!��)�$6 /��( �B'$6�, �)%(�B. ��!"��2�&.�B. *�� 2 !% )��( �
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��-'!)&" ( "� $'� B � �2�&.�B. � 46 !� $6 /� �( � -'.. -$&B. � 4&$6&!� $6 � -%(( !$� # (&'"� '(� )''!� !'%�6�$6 ( �5$ (�$'�#�/�.&�B&.&$& )�'5�$6 �-%(( !$�# (&'"*��'(�$6&)�#%(#') ��$6 ��&$/�-'!)&" ()�( 2 !% )�$'�B ��2�&.�B. � &5� $6 /� �( � -'.. -$ "� 4&$6&!� :�� "�/)� '5� $6 � !"� '5� $6 � -%(( !$� 5&)-�.� # (&'"*� �8# !"&$%( )�� ! (�../� �( � ( -'(" "� 46 !� �� .&�B&.&$/� &)� &!-%(( "�� �)� %!" (� �--(%�.� �--'%!$&!�*� �'4 2 (�� " B$�) (2&- � 8# !"&$%( )�� �)� 4 ..� �)� 8# !"&$%( )� ( .�$ "� $'� -',# !)�$ "� �B) !- )� �!"� -.�&,)� �!"�D%"�, !$)���( �( -'(" "�'!./�46 !�#�/, !$�&)�"% *���('# ($/� $�8 )�� )$�$ � 5% .� $�8�� �!"� 5(�!-6&) � $�8 )� �))'-&�$ "� 4&$6� $6 � -%(( !$� 5&)-�.� # (&'"� �( � �..�-'!)&" ( "�$'�B �)%)- #$&B. �$'��--(%�.��!"�)'�6�2 �B !�( -'�!&J "��)�( 2 !% )�'5�$6 �-%(( !$�5&)-�.�# (&'"*��. )�$�8 )�-'.. -$ "��!"�6 ."�B/�, (-6�!$)��!"�'(�$6 �)$�$ ��$�/ �(3 !"�'!�B 6�.5�'5�$6 ��&$/��( � ( -'�!&J "� �)� ( 2 !% *� �$6 (� ( 2 !% )�� &!-.%"&!�� .&- !) )� �!"� # (,&$)�� - ($�&!� -6�(� )� 5'(�) (2&- )���!"�,&)- ..�! '%)�( 2 !% )���( �( -'(" "��)�( 2 !% �46 !�( - &2 "�&!�-�)6�B -�%) �$6 /��( �� ! (�../�!'$�, �)%(�B. �%!$&.��-$%�../�( - &2 "*���8# !"&$%( 3"(&2 !� �(�!$)� �( � ( -'�!&J "� �)� ( 2 !% � 46 !� $6 � =%�.&5/&!�� 8# !"&$%( )� 6�2 � B !�&!-%(( "��!"��..�'$6 (��(�!$�( =%&( , !$)�6�2 �B !�, $*��!( )$(&-$ "��&"� &)�( #'($ "��)�( 2 !% �&!�$6 �5&)-�.�/ �(�"%(&!��46&-6�$6 � !$&$. , !$�&)�( - &2 "*���('#(& $�(/� 5%!")�"&)$&!�%&)6�'# (�$&!�� ( 2 !% )��!"� 8# !) )� 5(',�!'!'# (�$&!�� &$ ,)*��# (�$&!��( 2 !% )��!"� 8# !) )�� ! (�../�( )%.$�5(',�#('2&"&!��) (2&- )��!"�#('"%-&!���!"�" .&2 (&!���''")�&!�-'!! -$&'!�4&$6���#('#(& $�(/�5%!"�)�#(&!-&#�.�'!�'&!��'# (�$&'!)*�6 �#(&!-&#�.�'# (�$&!��( 2 !% )�'5�$6 �4�$ (��!"�) 4 (�5%!")��( �-6�(� )�$'�-%)$', ()�5'(�)�. )��!"�) (2&- )*��# (�$&!�� 8# !) )�&!-.%" �$6 �-')$�'5�)�. )��!"�) (2&- ���",&!&)$(�$&2 � 8# !) )��!"�" #( -&�$&'!�'!�-�#&$�.��)) $)*��..�( 2 !% )� �!"� 8# !) )� !'$� , $&!�� $6&)� " 5&!&$&'!� �( � ( #'($ "� �)� !'!'# (�$&!�� ( 2 !% )� �!"� 8# !) )*��� 6 !� B'$6� ( )$(&-$ "� �!"� %!( )$(&-$ "� ( )'%(- )� �( � �2�&.�B. � 5'(� %) �� &$� &)� $6 � �&$/�)� #'.&-/� $'� %) �( )$(&-$ "�( )'%(- )�5&()$���!"�$6 !�%!( )$(&-$ "�( )'%(- )���)�$6 /��( �! " "*��%J� �������%� �� �����M��������� ����(�����������%� ��&����M��������� �������
"��4���������1. Deposits and Investments ��**�*� ��3�:;9� .&,&$)� $6 � �&$/�)� &!2 )$, !$� '5� &". � 5%!")� $'� $&, � " #')&$)�� '# !� �--'%!$)� �!"�- ($&5&-�$ )� '5� " #')&$� 4&$6� �..'4�B. � 5&!�!-&�.� &!)$&$%$&'!)F� �**� 1'2 (!, !$� ) -%(&$& )F� $ ,#'(�(/�!'$ )F� !'35%!"� 4�((�!$)F� ( #%(-6�) � ��( , !$)F� �!"� $6 � ��!)�)� �%!&-&#�.� �!2 )$, !$� �''.*��!2 )$, !$)��( �( #'($ "��$�5�&(�2�.% �B�) "�'!�=%'$ "�,�(@ $�#(&- )*���'(� $6 � #%(#') )� '5� $6 � )$�$ , !$� '5� -�)6� 5.'4)�� $6 � �&$/� -'!)&" ()� " #')&$)� �!"� 6&�6./� .&=%&"�&!2 )$, !$)�4&$6��!�'(&�&!�.�,�$%(&$/�'5�$6( �,'!$6)�'(�. ))�$'�B �-�)6� =%&2�. !$)*���
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�7�
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��6 � &!2 )$, !$)�'5�#('- ")�'5� .'!�3$ (,�" B$��( ��'2 (! "�B/�)# -&5&-�)$�$%$ )��!"��%$6'(&J � $6 ��&$/�$'�&!2 )$�&!�$6 �5'..'4&!�0��
�!2 )$, !$)��%$6'(&J "�B/��**�*���3�:;9��&( -$�'B.&��$&'!)�'5�$6 ��**��'2 (!, !$�'(��!/�'$6 (��� !-/�$6 ( '5��'! /� ,�(@ $� 5%!")� -',#(&) "� !$&( ./� '5� 'B.&��$&'!)� '5� $6 � �**� ( �)%(/� �!"� �� !-& )�
$6 ( '5��B.&��$&'!)�'5��!/�,%!&-&#�.&$/�'5���!)�)��!2 )$, !$���( , !$)�4&$6���5&!�!-&�.�&!)$&$%$&'!�(�$ "�&!�$6 �$6( �6&�6 )$�(�$&!��-�$ �'(& )�B/�
�''"/�)�'(�$�!"�("��!"��''(�)���
6 ��&$/�#''.)�$ ,#'(�(&./� &". �-�)6�5(',��..� 5%!")�5'(� &!2 )$, !$)�#%(#') )*���-6�5%!"�)�#'($&'!�'5�$6 �#''.� &)�)6'4!�'!�$6 �$�$ , !$�'5�� $��')&$&'!��)�-�)6�� &!-.%"&!�� &!2 )$, !$)*�� #')&$)�"%(&!��$6 �/ �(� &!-.%" "�-�)6� &!� &!$ ( )$�B �(&!���!"�" ,�!"�B�!@��--'%!$)*� �!$ ( )$� &)��..'-�$ "� $'� �-6�5%!"�B�) "�'!�$6 �( )# -$&2 �&!2 )$ "�B�.�!- *��6 ��&$/�5'..'4)�1���;���Fair Value Measurement and Application, 46&-6� )$�B.&)6 )���5(�, 4'(@�5'(�, �)%(&!�� 5�&(�2�.% � $6�$� ( =%&( )�'(�# (,&$)� 5�&(� 2�.% �, �)%( , !$��!"� !6�!- )�"&)-.')%( )��B'%$�5�&(�2�.% �, �)%( , !$)*���&(�2�.% �&)�" 5&! "��)�$6 � 8-6�!� �#(&- �$6�$�4'%."�B �( - &2 "�$'�) ..��!��)) $�'(�#�&"�$'�$(�!)5 (���.&�B&.&$/�>�!� 8&$�#(&- ?�&!�$6 �#(&!-&#�.�'(�,')$��"2�!$�� '%)�,�(@ $�5'(� $6 � �)) $� '(� .&�B&.&$/� &!� �!� '(" (./� $(�!)�-$&'!*� 6 ( � &)� �� 5�&(� 2�.% � 6& (�(-6/� 46&-6� ( =%&( )� �!� !$&$/� $'�,�8&,&J � $6 �%) �'5� 'B) (2�B. � &!#%$)�46 !�, �)%(&!�� 5�&(� 2�.% *�6 ��%&"�!- � ( =%&( )�$6( �. 2 .)�'5�5�&(�2�.% �, �)%( , !$�B�) "�'!�$6 �( )# -$&2 �&!#%$)*���$�� - ,B (�����������&!2 )$, !$)�-'!)&)$ "�'5�5%!")�&!2 )$ "�&!�$6 ���!)�)��%!&-&#�.��!2 )$, !$��''.� >����?*� 6 � ����� &)� �!� 8$ (!�.� &!2 )$, !$� #''.� !'$� ��� > -%(&$& )� �!"� �8-6�!� ��',,&))&'!?�( �&)$ ( "��46&-6�&)�( �%.�$ "�B/�$6 �)$�$ ��!"�&)�2�.% "��$�-')$*��2. Receivables Property tax receivable�+��!��--'("�!- �4&$6��'2 (!&!��)$�$ �)$�$%$ )��#('# ($/�$�8 )�. 2& "�"%(&!��$6 �-%(( !$�/ �(��( � ( 2 !% �)'%(- )� $'�B �%) "� $'� 5&!�!- � $6 �B%"� $�'5� $6 � !)%&!��/ �(*��8 )��( ��)) )) "�'!���-�. !"�(�/ �(�B�)&)��!"��( �. 2& "��!"�B -', ���.& !�'!�$6 �#('# ($/�'!��'2 ,B (���'5� �-6�/ �(*�6 ��'%!$/�( �)%( (�&)�$6 �$�8�-'.. -$&'!��� !$�5'(��..�$�8&!�� !$&$& )�4&$6&!�$6 ��'%!$/*��('# ($/�'4! ()�6�2 �$6 �'#$&'!�'5�#�/&!��'! 36�.5�'(�$6 �5%..��,'%!$�'5�$6 �$�8 )�. 2& "�'!�'(�B 5'( �� - ,B (����"%(&!��$6 �/ �(�. 2& "�4&$6�$6 �B�.�!- �$'�B �#�&"�'!�'(�B 5'( ���/����'5�$6 � !)%&!��/ �(*�$�$ �)$�$%$ )�#('6&B&$�$6 ��'%!$/�( �)%( (�5(',�"&)$(&B%$&!��$�8 )�-'.. -$ "�&!�$6 �/ �(�. 2& "�#(&'(� $'� ��!%�(/� �� '5� $6 � !)%&!�� / �(*� �'!) =% !$./�� 5'(� ( 2 !% � ( -'�!&$&'!� #%(#') )�� $6 � $�8 )�. 2& "� "%(&!�� $6 � -%(( !$� / �(� �( � !'$� "% � �!"� ( - &2�B. �%!$&.� $6 � !)%&!�� / �(*��$� � - ,B (� ����)%-6� $�8 )� �( � ( -'(" "� �)� $�8 )� ( - &2�B. � 4&$6� �� -'(( )#'!"&!�� �,'%!$� ( -'(" "� �)� " 5 (( "�&!5.'4)�'5� ( )'%(- )�'!� $6 �B�.�!- �)6 $)�'5� $6 ��##('#(&�$ � 5%!")*� �$� &)�!'$�#(�-$&-�.� $'��##'($&'!�" .&!=% !$�$�8 )�6 ."�B/�$6 ��'%!$/�( �)%( (��)�'5�� - ,B (���������*��)$&,�$ "�" .&!=% !-& )��( �&!)&�!&5&-�!$��!"�6�2 �!'$�B !�( -'(" "*���Special assessment receivable� +��)� ( =%&( "�B/�)$�$ �)$�$%$ )��#('D -$)� 5&!�!- "� &!�#�($�B/�)# -&�.��)) )), !$)��( �5&!�!- "�$6('%�6�� ! (�.�'B.&��$&'!�B'!")�'5�$6 ��&$/��!"��( �( $&( "�5(',�$6 ��'!"�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�9�
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9���!"��!$ ( )$��%!"*��%($6 (��)$�$ �)$�$%$ )�( =%&( �. 2/&!���""&$&'!�.�� ! (�.��"�2�.'( ,�#('# ($/�$�8 )�&!�$6 ��'!"��!"��!$ ( )$��%!"�$'�5&!�!- �" .&!=% !$�)# -&�.��)) )), !$)*����6 ��&$/�)�)# -&�.��)) )), !$�$�8 )��( �. 2& "�'2 (����9�$'����/ �(�$ (,�'5�$6 �B'!")��!"�$6 ��!!%�.�&!)$�.., !$)��( �"% ��!"�#�/�B. �4&$6� �!!%�.� �"� 2�.'( ,�#('# ($/� $�8 )*� �& !)�,�/�B � 5'( -.') "����&!)$� $6 � #('# ($/� B ! 5&$ "� B/� $6 � )# -&�.� �)) )), !$)� 46 !� " .&!=% !$� �)) )), !$)� �( � $4'�/ �()� &!� �(( �()*� �$� � - ,B (� ���� ������ $6 � )# -&�.� �)) )), !$� $�8 )� . 2& "� �( � �� .& !� '!� $6 �#('# ($/��!"��( �( -'(" "��)�)# -&�.��)) )), !$)�( - &2�B. � &!� $6 ��'!"��!"� �!$ ( )$��%!"�4&$6���-'(( )#'!"&!���,'%!$�( -'(" "��)�" 5 (( "�&!5.'4)�'5�( )'%(- )�&!�$6 �5%!"�5&!�!-&�.�)$�$ , !$)*� Real estate mortgage note receivable�+�6 �!'$ �( - &2�B. �&)�5(',�$6 �)�. �'5�$6 �#( 2&'%)��&$/���..*�6 �!'$ �4�)� !$ ( "� &!$'�'!��%! �������7�� 5'(�H7<9������4&$6��!� &!&$&�.� &!$ ( )$�(�$ �'5�7*9I�� 5'(���# (&'"�!'$�$'� 8- "��7*9�/ �()*��$�� - ,B (�����������$6 �!'$ �B�.�!- �4�)�H�;��:<;*��3. Property held for resale 6 ��&$/�6�)�$(�!)5 (( "�#('# ($/�$'�$6 ���!"���!@��%!"*�6 �#%(#') �'5�$6 �5%!"�&)�$'�,�&!$�&!��!"�) ..� ( �.� #('# ($/� .'-�$ "� 4&$6&!� $6 � �&$/*� 6 � #('# ($& )� 6�2 � B !� &!-.%" "� �)� #('# ($/� 6 ."� 5'(�( )�. �&!�$6 ���!"���!@��%!"* 4. Capital Assets and Depreciation �1 ! (�.�-�#&$�.��)) $)��( �$6') ��)) $)�!'$�)# -&5&-�../�( .�$ "�$'��-$&2&$& )�( #'($ "�&!�$6 �#('#(& $�(/�5%!")*� 6 ) � �)) $)� �( � ( #'($ "� &!� $6 � �'2 (!, !$�.� �-$&2&$& )� -'.%,!� '5� $6 � �'2 (!, !$34&" �)$�$ , !$�'5�! $�#')&$&'!*���#&$�.��)) $)�%) "�B/�#('#(& $�(/�5%!")��( �( #'($ "�&!�B'$6�$6 �#('#(& $�(/��-$&2&$& )� -'.%,!�'5� $6 ��'2 (!, !$34&" � )$�$ , !$� '5� ! $� #')&$&'!��!"� &!� $6 � &!"&2&"%�.� #('#(& $�(/�5%!")*��'!�$ "��)) $)��( �( -'(" "��$��-=%&)&$&'!�2�.% ��)�'5�$6 �"�$ �'5�$6 �"'!�$&'!*��6 � �--'%!$&!�� �!"� ( #'($&!�� $( �$, !$� �##.& "� $'� $6 � -�#&$�.� �)) $)� �))'-&�$ "� 4&$6� �� 5%!"� �( �" $ (,&! "�B/� &$)�, �)%( , !$� 5'-%)*�1 ! (�.�-�#&$�.��)) $)��( � .'!�3.&2 "��)) $)�'5� $6 ��&$/��)���46'. *��!5(�)$(%-$%( �)%-6��)�)$( $)��$(�55&-�)&�!�.)��!"�)&�!)��( �-�#&$�.&J "*�6 �2�.%�$&'!�B�) )�5'(�� ! (�.�-�#&$�.��)) $)��( �6&)$'(&-�.�-')$��'(�46 ( �6&)$'(&-�.�-')$�&)�!'$��2�&.�B. �� )$&,�$ "�6&)$'(&-�.�-')$�B�) "�'!�( #.�- , !$�-')$*���#&$�.��)) $)�&!�$6 �#('#(& $�(/�5%!")��( ��--'%!$ "�5'(�&!�$6 �5%!"�&!� 46&-6� $6 /� �( � %$&.&J "*� 6 � 2�.%�$&'!� B�) )� 5'(� #('#(& $�(/� 5%!"� -�#&$�.� �)) $)��( � $6 � )�, � �)�$6') �%) "�5'(�$6 �� ! (�.�-�#&$�.��)) $)*��6 ��&$/� 5'..'4)� $6 �#'.&-/�'5� -�#&$�.&J&!���)) $)�4&$6�%!&$� -')$)�'5�H��9���'(�,'( *�� #( -&�$&'!�'5�-�#&$�.��)) $)�&)�-',#%$ "��!"�( -'(" "�B/�$6 �)$(�&�6$3.&! �, $6'"��!"�&)�( -'(" "��)��!��..'-�$ "� 8# !) �&!�$6 �$�$ , !$�'5��-$&2&$& )�4&$6��--%,%.�$ "�" #( -&�$&'!�( 5. -$ "�&!�$6 �$�$ , !$�'5�� $��')&$&'!��!"�&)�#('2&" "�'!�$6 �)$(�&�6$3.&! �B�)&)�'2 (�$6 �5'..'4&!�� )$&,�$ "�%) 5%.�.&2 )0�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�:�
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��
�)) $��.�))� � �)$&,�$ "��) 5%.��&2 )��%&."&!�)� � �����7��/ �()��,#('2 , !$)�&!5(�)$(%-$%( � � ��37��/ �()��=%&#, !$� � ��93���/ �()� �$ (�/)$ ,� � ��������������������������937��/ �()� 4 (�/)$ ,� � �����7��/ �()�
5. Accrued Compensated Absences �6 ��&$/�)�#'.&-/�( ��("&!��2�-�$&'!�# (,&$)� ,#.'/ )�4&$6�'! �$'� 5&2 �/ �()�-'!$&!%'%)�) (2&- �$'� �(!� . 2 !�"�/)��2�-�$&'!�#�/��)&8� $'� . 2 !�/ �()�-'!$&!%'%)�) (2&- �$'� �(!�)&8$ !�"�/)��!"�5'(�,'( �$6�!�$4 .2 �/ �()�-'!$&!%'%)�) (2&- �$'� �(!� &�6$ !�"�/)��2�-�$&'!�#�/*���(! "�2�-�$&'!�#�/�&!� 8- ))� '5� 5&2 � "�/)� ,%)$� B � $�@ !� #(&'(� $'� $6 � ,#.'/ �)� ! 8$� �(!&!�� "�$ � >��!%�(/� �� '5� $6 �5'..'4&!��/ �(?�'(�B �5'(5 &$ "*��..�2�-�$&'!�#�/�&)��--(% "�46 !� �(! "�&!�$6 ��'2 (!, !$34&" ��!"�#('#(& $�(/�5%!"�5&!�!-&�.�)$�$ , !$)*��6 �)&-@�. �2 �#'.&-/�'5�$6 ��&$/�#('2&" )�$6�$��..�( �%.�(� ,#.'/ )�)6�..� �(!�'! �"�/�'5�)&-@�. �2 �5'(� �-6�-�. !"�(�,'!$6�'5�) (2&- *�6 �,�8&,%,��--%,%.�$&'!�'5�)&-@�. �2 �&)�����"�/)*��5$ (�$ !�/ �()�'5�-'!$&!%'%)�) (2&- �4&$6�$6 ��&$/��!� ,#.'/ �)6�..�( - &2 �-',# !)�$&'!�5'(�%#�$'�:��"�/)�>,�8&,%,�'5�H9����?� 5'(�%!%) "��--%,%.�$ "�)&-@� . �2 �46 !�# (,�! !$./�) #�(�$ "�5(',�) (2&- �B/�( �)'!�'5�" �$6�'(�( $&( , !$*��,#.'/ )�4&$6�-'!$&!%'%)� ,#.'/, !$� $6�$�)$�($ "�#(&'(� $'��<<��)6�..�B �-',# !)�$ "� 5'(�%#� $'�9��"�/)� >!'�,�8&,%,��,'%!$?� 5'(�%!%) "��--%,%.�$ "�)&-@� . �2 �46 !� # (,�! !$./� ) #�(�$ "� 5(',� ) (2&- � B/� ( �)'!� '5� " �$6� '(� ( $&( , !$*� �..� '$6 (� �--%,%.�$ "�)&-@�. �2 �&)�-�!- .. "�%#'!�$ (,&!�$&'!�'5� ,#.'/, !$*���6. Long-Term Obligations �!� $6 � �'2 (!, !$34&" � 5&!�!-&�.� )$�$ , !$)�� .'!�3$ (,� " B$� �!"� '$6 (� .'!�3$ (,� 'B.&��$&'!)� �( �( #'($ "��)�.&�B&.&$& )�&!�$6 �)$�$ , !$�'5�! $�#')&$&'!*��'!"�&))%�!- �-')$)��( � 8# !) "�&!�$6 �/ �(�&!-%(( "*����!� $6 � 5%!"� 5&!�!-&�.�)$�$ , !$)���'2 (!, !$�.� 5%!"� $/# )� ( -'�!&J �B'!"�#( ,&%,)��!"�"&)-'%!$)���)�4 ..��)�B'!"�&))%�!- �-')$)��"%(&!��$6 �-%(( !$�# (&'"*�6 �5�- ��,'%!$�'5�" B$�&))% "�&)�( #'($ "��)� '$6 (� 5&!�!-&!�� )'%(- )*� �( ,&%,)� ( - &2 "� '!� " B$� &))%�!- )� �( � ( #'($ "� �)� '$6 (� 5&!�!-&!��)'%(- )� 46&. � "&)-'%!$)� '!� " B$� &))%�!- )� �( � ( #'($ "� �)� '$6 (� 5&!�!-&!�� %) )*� �))%�!- � -')$)��46 $6 (� '(� !'$� 4&$66 ."� 5(',� $6 � �-$%�.� " B$� #('- ")� ( - &2 "�� �( � ( #'($ "� �)� " B$� ) (2&- � 8# !"&$%( )*�� 7. Pensions �6 �! $�# !)&'!�.&�B&.&$/�&)�-�.-%.�$ "��)�$6 �"&55 ( !- �B $4 !�$6 ��-$%�(&�../�-�.-%.�$ "�2�.% �'5�$6 �#('D -$ "�B ! 5&$�#�/, !$)��$$(&B%$ "�$'�#�)$�# (&'")�'5� ,#.'/ �) (2&- ��!"�$6 �#.�!�)�5&"%-&�(/�! $�#')&$&'!*� 6 � $'$�.� # !)&'!� 8# !) � &)� -',#(&) "� '5� $6 � ) (2&- � -')$� '(� �-$%�(&�.� #( ) !$� 2�.% � '5�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�;�
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��#('D -$ "�B ! 5&$�#�/, !$)��$$(&B%$ "�$'�$6 �2�.%�$&'!�/ �(��&!$ ( )$�'!�$6 �$'$�.�# !)&'!�.&�B&.&$/��#.�!��",&!&)$(�$&2 � 8# !) )�� -%(( !$� / �(� B ! 5&$� -6�!� )�� �!"� '$6 (� -6�!� )� &!� #.�!� 5&"%-&�(/� ! $�#')&$&'!� . ))� ,#.'/ � -'!$(&B%$&'!)� �!"� #('D -$ "� �(!&!�)� '!� #.�!� &!2 )$, !$)*� �""&$&'!�../�� $6 �$'$�.� # !)&'!� 8# !) � &!-.%" )� $6 � �!!%�.� ( -'�!&$&'!� '5� '%$5.'4)� �!"� &!5.'4)� '5� ( )'%(- )� "% � $'�# !)&'!��)) $)��!"�.&�B&.&$/*����'(� #%(#') )� '5� , �)%(&!�� $6 � -'.. -$&2 � ! $� # !)&'!� .&�B&.&$/�� " 5 (( "� '%$5.'4)� '5� ( )'%(- )� �!"�" 5 (( "� &!5.'4)� '5� ( )'%(- )� ( .�$ "� $'� # !)&'!)�� �!"� # !)&'!� 8# !) �� &!5'(,�$&'!� �B'%$� $6 �5&"%-&�(/� ! $� #')&$&'!� '5� $6 � ��!)�)� �%B.&-� �,#.'/ )� � $&( , !$� /)$ ,� >����?� �!"� �""&$&'!)�$'�" "%-$&'!)�5(',������5&"%-&�(/�! $�#')&$&'!�6�2 �B !�" $ (,&! "�'!�$6 �)�, �B�)&)��)�$6 /��( �( #'($ "�B/�����*��'(�$6&)�#%(#') ��B ! 5&$�#�/, !$)�>&!-.%"&!��( 5%!")�'5� ,#.'/ �-'!$(&B%$&'!)?��( �( -'�!&J "�46 !�"% ��!"�#�/�B. �&!��--'("�!- �4&$6�$6 �B ! 5&$�$ (,)*��!2 )$, !$)��( �( #'($ "��$�5�&(�2�.% *� 8. Fund Equity �!� $6 � �'2 (!, !$34&" � )$�$ , !$)�� =%&$/� &)� )6'4!� �)� ! $� #')&$&'!� �!"� -.�))&5& "� &!$'� $6( �-',#'! !$)0��
�� � $� &!2 )$, !$� &!� -�#&$�.� �)) $)� +� -'!)&)$&!�� '5� -�#&$�.� �)) $)� &!-.%"&!�� ( )$(&-$ "� -�#&$�.��)) $)�� ! $� '5� �--%,%.�$ "� " #( -&�$&'!� �!"� ( "%- "� B/� $6 � '%$)$�!"&!�� B�.�!- )� '5� �!/�B'!")�� . �) )�� '(� '$6 (� B'(('4&!�)� $6�$� �( � �$$(&B%$�B. � $'� $6 � �-=%&)&$&'!�� -'!)$(%-$&'!�� '(�&,#('2 , !$�'5�$6') ��)) $)*
�� � )$(&-$ "�! $�#')&$&'!�+�-'!)&)$&!��'5�! $�#')&$&'!�4&$6�-'!)$(�&!$)�#.�- "�'!�$6 &(�%) � &$6 (�B/�>�?� 8$ (!�.��('%#)�)%-6��)�-( "&$'()���(�!$'()��-'!$(&B%$'()��'(�.�4)�'(�( �%.�$&'!)�'5�'$6 (��'2 (!, !$)F�'(�>B?�.�4�$6('%�6�-'!)$&$%$&'!�.�#('2&)&'!)�'(� !�B.&!��. �&).�$&'!*�6 ��&$/�5&()$�%$&.&J )�( )$(&-$ "�( )'%(- )�$'�5&!�!- �=%�.&5/&!���-$&2&$& )*�
��� �!( )$(&-$ "�! $�#')&$&'!�+�-'!)&)$)�'5��..�'$6 (�! $�#')&$&'!�$6�$�"' )�!'$�, $�$6 �" 5&!&$&'!�'5�
�( )$(&-$ "��'(��! $�&!2 )$, !$�&!�-�#&$�.��)) $)*�� �)�#( )-(&B "�B/�1���$�$ , !$��'*�97��Fund Balance Reporting and Governmental Fund Type Definitions, �'2 (!, !$�.� 5%!")� ( #'($� 5%!"�B�.�!- �-.�))&5&-�$&'!)�B�) "�#(&,�(&./�'!� $6 � 8$ !$� $'�46&-6�$6 ��&$/�&)�B'%!"�$'�6'!'(�-'!)$(�&!$)�'!�$6 �)# -&5&-�#%(#') )�5'(�46&-6��,'%!$)�&!�$6 �5%!")�-�!�B �)# !$* ��!�$6 ��'2 (!, !$�.�5%!")�� =%&$/�&)�)6'4!��)�5%!"�B�.�!- ��!"�-.�))&5& "�&!$'�5&2 �-',#'! !$)0���
�� �'!)# !"�B. �+��'!)# !"�B. �-'!)&)$)�'5��,'%!$)� $6�$�-�!!'$�B �)# !$�B -�%) � $6 /��( �!'$�&!�)# !"�B. �5'(,��'(��( �. ��../�'(�-'!$(�-$%�../�( =%&( "�$'�B �,�&!$�&! "*��
�� � )$(&-$ "� +� �%!"� B�.�!- � &)� ( #'($ "� �)� ( )$(&-$ "� 46 !� -'!)$(�&!$)� #.�- "� '!� $6 � %) � '5�( )'%(- )� �( � &$6 (� 8$ (!�../� &,#') "� B/� -( "&$'()� >)%-6� �)� $6('%�6� " B$� -'2 !�!$)?���(�!$'()�� -'!$(&B%$'()�� '(� .�4)� '(� ( �%.�$&'!)� '5� '$6 (� �'2 (!, !$)�� '(� &)� &,#') "� B/� .�4�$6('%�6�-'!)$&$%$&'!�.�#('2&)&'!)�'(� !�B.&!��. �&).�$&'!*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9�
��� �',,&$$ "� +� 6&)� -.�))&5&-�$&'!� -'!)&)$)� '5� �,'%!$)� $6�$� -�!� B � %) "� '!./� 5'(� $6 � )# -&5&-�
#%(#') )�&,#') "�B/���( )'.%$&'!�,�" �B/�$6 ��&$/��'%!-&.��!"�-�!!'$�B �%) "�5'(��!/�'$6 (�#%(#') � %!. ))� ( ,'2 "� '(� -6�!� "� B/� $�@&!�� $6 � )�, � $/# � '5� �-$&'!� $6�$� #( 2&'%)./�-',,&$$ "�$6') ��,'%!$)*��
�� �))&�! "�+��,'%!$)� &!� $6 ��))&�! "� 5%!"�B�.�!- �-.�))&5&-�$&'!��( � &!$ !" "� $'�B �%) "�B/�$6 � �&$/� 5'(� )# -&5&-� #%(#') )� B%$� "'� !'$� , $� $6 � -(&$ (&�� $'� B � -.�))&5& "� �)� ( )$(&-$ "� '(�-',,&$$ "*� �!� �'2 (!, !$�.� 5%!")� '$6 (� $6�!� $6 � � ! (�.� 5%!"�� �))&�! "� 5%!"� B�.�!- �( #( ) !$)� $6 � ( ,�&!&!�� �,'%!$� $6�$� &)� !'$� ( )$(&-$ "� '(� -',,&$$ "*� �!� $6 � � ! (�.� 5%!"���))&�! "��,'%!$)� ( #( ) !$� &!$ !" "�%) )� )$�B.&)6 "�B/� $6 ��&$/��'%!-&.� '(����&$/�'55&-&�.�" . ��$ "� $6�$��%$6'(&$/*��!-%,B(�!- )��( �-'!)&" ( "��)��))&�! "�%!. ))� $6 /�)# -&5&-�../�, $�$6 �( =%&( , !$)�$'�B �( )$(&-$ "�'(�-',,&$$ "*�
��� �!�))&�! "�+�6&)�-'!)&)$)�'5� $6 �( )&"%�.�B�.�!- �5'(� $6 �� ! (�.� 5%!"�!'$�-'!$�&! "� &!�$6 �
'$6 (�-.�))&5&-�$&'!)*��!�'$6 (��'2 (!, !$�.�5%!")��$6 �%!�))&�! "�-.�))&5&-�$&'!�&)�%) "�'!./�$'�( #'($� �� " 5&-&$� B�.�!- � ( )%.$&!�� 5(',� 8# !"&$%( )� 8- "&!�� �,'%!$)� $6�$� 6�"� B !�( )$(&-$ "��-',,&$$ "�'(��))&�! "*�
�6 ��&$/��##.& )�( )$(&-$ "�( )'%(- )�5&()$�$'�5&!�!- �=%�.&5/&!�� 8# !"&$%( )��46 !� &$6 (�( )$(&-$ "�'(�%!( )$(&-$ "��,'%!$)��( ��2�&.�B. *��'(�%!( )$(&-$ "� 5%!"�B�.�!- �� -',,&$$ "��,'%!$)��( � ( "%- "�5&()$�5'..'4 "�B/��))&�! "���!"�$6 !�%!�))&�! "��,'%!$)*� 9. Deferred Inflows of Resources/Deferred Outflows of Resources �!��""&$&'!�$'��)) $)��$6 �)$�$ , !$�'5�5&!�!-&�.�#')&$&'!�4&..�)', $&, )�( #'($���) #�(�$ �) -$&'!�5'(�" 5 (( "� '%$5.'4)� '5� ( )'%(- )*� 6&)� ) #�(�$ � 5&!�!-&�.� )$�$ , !$� . , !$�� deferred outflows of resources��( #( ) !$)���-'!)%,#$&'!�'5�! $�#')&$&'!�$6�$��##.& )�$'���5%$%( �# (&'">)?��!"�)'�4&..�not B �( -'�!&J "��)��!�'%$5.'4�'5�( )'%(- )�> 8# !) �� 8# !"&$%( ?�%!$&.�$6 !*�6 ��&$/�6�)�$6( �&$ ,)�$6�$�=%�.&5/� 5'(� ( #'($&!�� &!� $6&)�-�$ �'(/� &!� $6 ��'2 (!, !$34&" �)$�$ , !$�'5�! $�#')&$&'!��" 5 (( "�'%$5.'4)� 5'(� # !)&'!)�� " 5 (( "� '%$5.'4)� 5'(� ����� �!"� " 5 (( "� -6�(� )� '!� ( 5%!"&!�* �� " 5 (( "�-6�(� � '!� ( 5%!"&!�� ( )%.$)� 5(',� $6 � "&55 ( !- � &!� $6 � -�((/&!�� 2�.% � '5� ( 5%!" "� " B$� �!"� &$)�( �-=%&)&$&'!�#(&- *�6 ��,'%!$�&)�" 5 (( "��!"��,'($&J "�'2 (�$6 �)6'($ (�'5�$6 �.&5 �'5�$6 �( 5%!" "�'(� ( 5%!"&!�� " B$*� � �'$ � �G*� �*� �!"� �G*� �*� 5'(� ,'( � &!5'(,�$&'!� '!� $6 � " 5 (( "� '%$5.'4)� 5'(�# !)&'!)��!"�������( )# -$&2 ./*���!��""&$&'!�$'�.&�B&.&$& )��$6 �)$�$ , !$�'5�5&!�!-&�.�#')&$&'!�4&..�)', $&, )�( #'($���) #�(�$ �) -$&'!�5'(�" 5 (( "� &!5.'4)� '5� ( )'%(- )*� 6&)� ) #�(�$ � 5&!�!-&�.� )$�$ , !$� . , !$�� " 5 (( "� &!5.'4)� '5�( )'%(- )��( #( ) !$)��!��-=%&)&$&'!�'5�! $�#')&$&'!�$6�$��##.& )�$'���5%$%( �# (&'">)?��!"�)'�4&..�!'$�B �( -'�!&J "� �)� �!� &!5.'4� '5� ( )'%(- )� >( 2 !% ?� %!$&.� $6�$� $&, *� 6 � �&$/� 6�)� 5'%(� $/# )� '5� &$ ,)��%!�2�&.�B. �( 2 !% ��" 5 (( "�( 2 !% ��" 5 (( "�&!5.'4)�5'(�# !)&'!)��!"�" 5 (( "�&!5.'4)�5'(������$6�$� =%�.&5/� 5'(� ( #'($&!�� &!� $6&)� -�$ �'(/� $6�$� =%�.&5/� 5'(� ( #'($&!�� &!� $6&)� -�$ �'(/*� �!�2�&.�B. �( 2 !% �� 46&-6� �(&) )� '!./� %!" (� �� ,'"&5& "� �--(%�.� B�)&)� '5� �--'%!$&!��� &)� ( #'($ "� '!./� &!� $6 ��'2 (!, !$�.�5%!")�B�.�!- �)6 $*�6 ��'2 (!, !$�.�5%!")�( #'($�%!�2�&.�B. �( 2 !% )�5(',�)# -&�.��)) )), !$)*�6 ) ��,'%!$)��( �" 5 (( "��!"� ( -'�!&J "��)��!� &!5.'4�'5� ( )'%(- )� &!� $6 �# (&'"�$6�$� $6 � �,'%!$)� B -', � �2�&.�B. *� � 5 (( "� ( 2 !% )� �( � ( #'($ "� &!� B'$6� $6 � �'2 (!, !$34&" �)$�$ , !$� '5� ! $� #')&$&'!� �!"� $6 � �'2 (!, !$�.� 5%!")� B�.�!- � )6 $� 5'(� #('# ($/� $�8� ( - &2�B. *�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�<�
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9� �('# ($/�$�8 )��( �!'$�( -'�!&J "��)�( 2 !% �%!$&.�$6 �# (&'"�5'(�46&-6�$6 /��( �. 2& "*�6 �$6&("��!"�5'%($6� &$ ,)�� " 5 (( "� &!5.'4)� 5'(� # !)&'!)� �!"� ������ �( � ( #'($ "� '!� $6 � �'2 (!, !$34&" �)$�$ , !$� '5� ! $� #')&$&'!*� � �'$ � �G*� �*� �!"� �G*� �*�� ( )# -$&2 ./�� 5'(� ,'( � &!5'(,�$&'!� '!� $6 ) �" 5 (( "�&!5.'4)*� 10. Land Project �6 ��&$/�&!2 )$ "�&!�$6 �.�!"�#('D -$�5'(�#('D -$ "��('4$6��!"�5%$%( �" 2 .'#, !$*��6 � .�!"� #('D -$� -'!)&)$)� '5� �##('8&,�$ ./� ��:��� �-( )� '5� .�!"� >:��� �-( )� ( )&" !$&�.�� ���� �-( )�-',, (-&�.� �!"� ���� �-( )� &!"%)$(&�.� #�(@?� �!"� &)� B &!�� �--'%!$ "� 5'(� B/� %)&!�� $6 � -')$� ( -'2 (/�, $6'"��)��..'4 "�%!" (�1���:�*���
��#&$�.&J "�-')$)�'5�$6 �.�!"�#('D -$�&!-.%" �B%$��( �!'$�.&,&$ "�$'0�����!"��-=%&)&$&'!��!"�$&$. �-')$)�����#&$�.&J "�&!$ ( )$��!"�" B$�&))%�!- �-')$)���$( $��) 4 ()���(�"&!��� 8-�2�$&!���&,#('2 , !$)��!"�&!5(�)$(%-$%( ����$6 (�" 2 .'#, !$�-')$)��
�!" (�$6 �6/B(&"�-')$�( -'2 (/�, $6'"���)�#�(- .)�'5� .�!"��( �)'."��$6 �#('- ")��( �'55) $����&!)$�$6 � $'$�.� �--%,%.�$ "� -')$)� '5� $6 � #('D -$*� �$6 (� , $6'")� '5� ,�$-6&!�� -')$)�� )%-6� �)� $6 � )# -&5&-�&" !$&5&-�$&'!� , $6'"�� $6 � �('))� #('5&$� , $6'"� �!"� $6 � %!&$��( �� , $6'"� 4 ( � !'$� #(�-$&-�.� &!� $6 �-&(-%,)$�!- )*�����!�� , !$�" ,)�$6�$�$6 �-%(( !$� )$&,�$ "�5�&(�2�.% �'5�$6 �#('D -$�&)�&!� 8- ))�'5�$6 �( ,�&!&!��%!( -'2 ( "�-')$)*��!( -'2 ( "�-')$)��$�� - ,B (������������,'%!$ "�$'�H�7�<���9<�*��6 � &!"%)$(&�.�#�(@�#'($&'!�'5� $6 � .�!"�#('D -$�4�)� 5&!�!- "�4&$6��%B.&-��%&."&!���',,&))&'!�B'!")��!"�$6 ��,'%!$�'%$)$�!"&!���$�� - ,B (����������4�)�H�;�:9��������.)'�) ��'$ ����*��*� 11. Net Position �� $� #')&$&'!� ( #( ) !$)� $6 � "&55 ( !- � B $4 !� �)) $)� �!"� " 5 (( "� '%$5.'4)� '5� ( )'%(- )� �!"�.&�B&.&$& )� �!"� " 5 (( "� &!5.'4)� '5� ( )'%(- )*� � $� &!2 )$, !$� &!� -�#&$�.� �)) $)�� -'!)&)$)� '5� -�#&$�.��)) $)��! $�'5��--%,%.�$ "�" #( -&�$&'!��( "%- "�B/�$6 �'%$)$�!"&!��B�.�!- )�'5��!/�B'(('4&!�)�%) "�5'(�$6 ��-=%&)&$&'!��-'!)$(%-$&'!�'(�&,#('2 , !$�'5�$6') ��)) $)*�� $�#')&$&'!�&)�( #'($ "��)�( )$(&-$ "�46 !�$6 ( ��( �.&,&$�$&'!)�&,#') "�'!�$6 &(�%) � &$6 (�$6('%�6�$6 � !�B.&!��. �&).�$&'!��"'#$ "�B/�$6 ��&$/� '(� $6('%�6� 8$ (!�.� ( )$(&-$&'!)� &,#') "� B/� -( "&$'()�� �(�!$'()� '(� .�4)� '(� ( �%.�$&'!)� '5� '$6 (��'2 (!, !$)*�� )$(&-$ "�( )'%(- )��( �%) "�5&()$�$'�5%!"��##('#(&�$&'!)*���� $�#')&$&'!� &)�( #'($ "��)�( )$(&-$ "�46 !�$6 ( ��( � .&,&$�$&'!)� &,#') "�'!�$6 &(�%) � &$6 (� $6('%�6�$6 � !�B.&!�� . �&).�$&'!� �"'#$ "� B/� $6 � �&$/� '(� $6('%�6� 8$ (!�.� ( )$(&-$&'!)� &,#') "� B/� -( "&$'()���(�!$'()� '(� .�4)� '(� ( �%.�$&'!)� '5� '$6 (� �'2 (!, !$)*� � )$(&-$ "� ( )'%(- )� �( � %) "� 5&()$� $'� 5%!"��##('#(&�$&'!)*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&J� �'����)� ���&#"&�&��"$���� '"$&"#�4 (&�&!��6� "$&"'!%9��12. Estimates �6 � #( #�(�$&'!� '5� 5&!�!-&�.� )$�$ , !$)� &!� -'!5'(,&$/� 4&$6� 1���� ( =%&( )� ,�!�� , !$� $'� ,�@ � )$&,�$ )� �!"� �))%,#$&'!)� $6�$� �55 -$0� >�?� $6 � ( #'($ "� �,'%!$)� '5� �)) $)� �!"� .&�B&.&$& )��>�?�"&)-.')%( )� )%-6� �)� -'!$&!� !-& )�� �!"� >�?� $6 � ( #'($ "� �,'%!$)� '5� ( 2 !% )� �!"� 8# !) )�&!-.%" "�&!�)%-6�5&!�!-&�.�)$�$ , !$)*��-$%�.�( )%.$)�-'%."�"&55 (�5(',�$6') � )$&,�$ )*���)$&,�$ )�)&�!&5&-�!$� $'� $6 � 5&!�!-&�.�)$�$ , !$� &!-.%" � $6 �2�.%�$&'!�'5� .�!"�6 ."� 5'(� ( )�. F�) � $6 ���!"��('D -$�"&)-%))&'!�&!��'*�����B'2 *��&&J� �$!,��%�*&4��� �4(&�"�!���"%���� '"$�&(&$)���J� ����� ��&��� ����������!)�)�)$�$%$ )�( =%&( �B%"� $)�B ��"'#$ "�5'(��..�5%!")��%!. ))� 8 ,#$ "�B/���)# -&5&-�)$�$%$ *�6 �)$�$%$ )�#('2&" �5'(�$6 �5'..'4&!��) =% !- ��!"�$&, $�B. �&!�$6 ��"'#$&'!�'5�$6 �. ��.�B%"� $*���
�*� �( #�(�$&'!�'5�$6 �B%"� $�5'(�$6 �-%(( !$�5&)-�.�/ �(�'!�'(�B 5'( ��%�%)$��)$*��*� �%B.&-�$&'!�&!�.'-�.�! 4)#�# (�'5�$6 �#('#') "�B%"� $��!"�!'$&- �'5�6 �(&!��'!�$6 �B%"� $�
'!�'(�B 5'( ��%�%)$�9$6*��*� �%B.&-�6 �(&!��'!�'(�B 5'( ��%�%)$��9$6��B%$��$�. �)$����"�/)��5$ (�#%B.&-�$&'!�'5�!'$&- �'5�
6 �(&!�*�7*� �"'#$&'!�'5�$6 �5&!�.�B%"� $�'!�'(�B 5'( ��%�%)$��9$6*�
�6 � )$�$%$ )� �..'4� 5'(� $6 � �'2 (!&!�� B'"/� $'� &!-( �) � $6 � '(&�&!�../� �"'#$ "� B%"� $� 5'(� #( 2&'%)./�%!B%"� $ "�&!-( �) )�&!�( 2 !% �'$6 (�$6�!��"�2�.'( ,�#('# ($/�$�8 )*�'�"'�$6&)����!'$&- �'5�#%B.&-�6 �(&!�� $'� �, !"� $6 � B%"� $� ,%)$� B � #%B.&)6 "� &!� $6 � .'-�.� ! 4)#�# (*� �$� . �)$� $ !� "�/)� �5$ (�#%B.&-�$&'!�$6 �6 �(&!��,�/�B �6 ."��!"�$6 ��'2 (!&!��B'"/�,�/��, !"�$6 �B%"� $��$��!/�$&, *���6 � )$�$% )� # (,&$� $(�!)5 ((&!�� B%"� $ "� �,'%!$)� B $4 !� .&! � &$ ,)� 4&$6&!� �!� &!"&2&"%�.� 5%!"*��'4 2 (��)%-6�)$�$%$ )�#('6&B&$� 8# !"&$%( )�&!� 8- ))�'5�$6 �$'$�.��,'%!$�'5�$6 ��"'#$ "�B%"� $�'5� 8# !"&$%( )�'5�&!"&2&"%�.�5%!")*��%"� $�-',#�(&)'!�)$�$ , !$)��( �#( ) !$ "�5'(� �-6�5%!"�)6'4&!���-$%�.�( - &#$)��!"� 8# !"&$%( )�-',#�( "�$'�. ��../�B%"� $ "�( - &#$)��!"� 8# !"&$%( )*���..� . ��.� �!!%�.� '# (�$&!�� B%"� $)� �( � #( #�( "� %)&!�� $6 � ,'"&5& "� �--(%�.� B�)&)� '5� �--'%!$&!���,'"&5& "� 5%($6 (� B/� $6 � !-%,B(�!- � , $6'"� '5� �--'%!$&!�*� �8# !"&$%( )� &!-.%" � "&)B%() , !$)��--'%!$)� #�/�B. �� �!"� !-%,B(�!- )*� �!-%,B(�!- )� �( � -',,&$, !$)� B/� $6 � �&$/� 5'(� 5%$%( �#�/, !$)�)%-6��)�#%(-6�) �'(" ()�'(�-'!$(�-$)*���� . ��.� '# (�$&!�� B%"� $� &)� !'$� ( =%&( "� 5'(� $6 � 5'..'4&!�� 5%!")0� ��#&$�.� �,#('2 , !$�� �=%&#, !$�� ) (2 �� ��#&$�.� �('D -$)�� �'-�.� �(%�� �'(5 &$%( � �%!"�� $�$ � �(%�� �'(5 &$%( � �%!"�� � " (�.� �(%���'(5 &$%( ��%!"���!"�$6 ��%B.&-��%&."&!���',,&))&'!*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%����J� %�����������&�-��������Custodial Credit Risk. �'(�" #')&$)��-%)$'"&�.�-( "&$�(&)@�&)�$6 �(&)@�$6�$��&!�$6 � 2 !$�'5���B�!@�5�&.%( ��$6 ��&$/�4&..�!'$�B ��B. �$'�( -'2 (�$6 �2�.% �'5�&$)�" #')&$). �'(�" #')&$)��$6 ��&$/�)�#'.&-/�5'..'4)�)$�$ �)$�$%$ )�46&-6�( =%&( �#. "� "�-'..�$ (�.�4&$6���5�&(�2�.% � =%�.�$'����I�'5�$6 �5%!")�'!�" #')&$��. ))�&!)%( "��,'%!$)���!"�$6�$� $6 �-'..�$ (�.�B �6 ."� &!�)�5 @ #&!�� &!�$6 ��&$/�)�!�, ��$�'$6 (�$6�!�$6 �" #')&$'(/� 5&!�!-&�.� &!)$&$%$&'!*� '� -',#./� 4&$6� $6 � )$�$%$ )�� $6 � �&$/� ( =%&( )� $6 � &))%�!- � '5� D'&!$�-%)$'"/�( - &#$)��)� 2&" !- �'5�$6 �#. "� "�-'..�$ (�.*�6 �-%)$'"&�.�-( "&$�(&)@�5'(�&!2 )$, !$)�&)�$6 �(&)@� $6�$�� &!� $6 � 2 !$�'5� $6 � 5�&.%( �'5� $6 �-'%!$ (#�($/� $'��� $(�!)�-$&'!�� $6 ��&$/�4&..� !'$�B ��B. � $'�( -'2 (� $6 � 2�.% � '5� &$)� &!2 )$, !$� '(� -'..�$ (�.� ) -%(&$& )� $6�$� �( � &!� $6 � #')) ))&'!� '5� �!� '%$)&" �#�($/*����$� � - ,B (� ���� ������ $6 � �&$/�)� " #')&$)� 4 ( � 5%../� -'2 ( "� B/� 5 " (�.� " #')&$'(/� &!)%(�!- � '(�-'..�$ (�.&J "�B/�) -%(&$& )�6 ."�B/�$6 ��&$/�)��� !$�&!�$6 ��&$/�)�!�, *�����$�� - ,B (�����������$6 ��&$/�6�"�&!2 )$ "�H;��9���:9�&!�$6 �)$�$ �)�,%!&-&#�.�&!2 )$, !$�#''.�!'$����> -%(&$& )��!"��8-6�!� ��',,&))&'!?�( �&)$ ( "*�6 �,%!&-&#�.� &!2 )$, !$�#''.� &)�%!" (�$6 �'2 ()&�6$�'5�$6 ��''. "��'! /��!2 )$, !$��'�("*�6 �B'�("�&)�-',#(&) "�'5�$6 �$�$ �( �)%( (��!"�5'%(��""&$&'!�.�, ,B ()��##'&!$ "�B/�$6 �$�$ �1'2 (!'(*�6 �B'�("�( #'($)��!!%�../�$'�$6 ���!)�)�� �&).�$%( *� $�$ � #''. "� ,'!& )� ,�/� B � &!2 )$ "� &!� "&( -$� 'B.&��$&'!)� '5�� '(� 'B.&��$&'!)� $6�$� �( �&!)%( "��)�$'�#(&!-&#�.��!"�&!$ ( )$��B/�$6 ��**��'2 (!, !$�'(��!/��� !-/�$6 ( '5��4&$6�,�$%(&$& )�%#�$'� 5'%(� / �()*� �'� ,'( � $6�!� $ !� # (- !$� '5� $6') � 5%!")� ,�/� B � &!2 )$ "� &!� ,'($��� 3B�-@ "�) -%(&$& )*��!��""&$&'!��$6 �)$�$ �#''.�,�/�&!2 )$�&!�( #%(-6�) ���( , !$)�4&$6���!)�)�B�!@)�'(�4&$6�#(&,�(/��'2 (!, !$�) -%(&$& )�" �. ()*�6 �&!2 )$, !$�&!�$6 �,%!&-&#�.�&!2 )$, !$�#''.)�&)�2�.% "��$�-')$*��Credit Risk and Concentration of Credit Risk*���!)�)�.�4�.&,&$)�$6 �$/# )�'5�&!2 )$, !$)�$6�$�-�!�B �,�" �B/�$6 ��&$/��46&-6�&!6 ( !$./�( "%- )�&$)�-( "&$�(&)@*��( "&$�(&)@�&)�$6 �(&)@�$6�$�$6 �&))% (�'(�'$6 (�-'%!$ (#�($/� $'��!� &!2 )$, !$�4&..�B �%!�B. � $'� 5%.5&..� &$)�'B.&��$&'!)� $'� $6 �6'." (�'5� $6 � &!2 )$, !$*�6&)�(&)@�-�!�B �, �)%( "�B/�$6 ��))&�!, !$�'5���(�$&!��B/���!�$&'!�../�( -'�!&J "�)$�$&)$&-�.�(�$&!��'(��!&J�$&'!*��!�� - ,B (��������������I�'5�$6 ��&$/�)� &!2 )$, !$)��H;��9���:9��4 ( � &!2 )$ "� &!�$6 ���!)�)��%!&-&#�.��!2 )$, !$��''.��46&-6�&)�!'$�(�$ "*� Interest Rate Risk*��)���, �!)�'5�,�!��&!��&$)� 8#')%( �$'�5�&(�2�.% �.')) )��(&)&!��5(',�&!-( �)&!��&!$ ( )$�(�$ )��$6 ��&$/�5'..'4)�)$�$ �)$�$%$ )�46&-6�� ! (�../�.&,&$�&!2 )$, !$�,�$%(&$& )�$'�$4'�/ �()*�'�,&!&,&J � $6 � (&)@�'5� .'))�� $6 ��&$/�,�$-6 )� &!2 )$, !$)� $'��!$&-&#�$ "�-�)6� 5.'4)��!"�"&2 ()&5& )�$6 �&!2 )$, !$�$/# )�$'�$6 � 8$ !$�#(�-$&-�B. *��!2 )$, !$)�&!��**�$( �)%(/�-'%#'!�) -%(&$& )�6�2 ���,�$%(&$/�'5�. ))�$6�!�'! �/ �(*���� #')&$)��!"� &!2 )$, !$)��$�� - ,B (�����������## �(� &!�$6 �5&!�!-&�.�)$�$ , !$)��)�)%,,�(&J "�B .'40��
��((/&!���,'%!$�'5�" #')&$)� H��������7������7���((/&!���,'%!$�'5�&!2 )$, !$)�� ;��9���:9� �'$�.� H���������<9��7��
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��J� �����������������#&$�.��)) $��-$&2&$/�5'(�$6 �/ �(� !" "�� - ,B (����������4�)��)�5'..'4)0��
��.�!- ���!%�(/����
����� �!-( �) )� � -( �) )�
��.�!- �� - ,B (�����
�����#�- �����������-����Q�
��#&$�.��)) $)��!'$�B &!��" #( -&�$ "0���!"��!"�&,#('2 , !$)�
��!"�#('D -$��6 ."�5'(�)�. � H�����:��:9��<� H�����������������33 H�����������������33 H����:��:9��<���(@)��( -( �$&'!�� $-*� ��7����:� 33 33 ��7����:��&$/���..� 7���;9� 33 33 7���;9��$6 (� 7���9�� 33 33 7���9���'!)$(%-$&'!�&!�#('- ))��! $� �:���<� :�;�<9� ;������ ��;��9�
'$�.�-�#&$�.��)) $)��!'$�B &!����" #( -&�$ "� ����:<���7 :�;�<9� ;������ ����<���::
��#&$�.��)) $)��B &!��" #( -&�$ "��!5(�)$(%-$%( � ���:<:�9:9 ����7�� 33 �<�7<��<�9�&$/���..� ��<9���;� 33 33 ��<9���;�4&,,&!��#''.� �97�;9: 33 33 �97�;9:�$6 (�)$(%-$%( )��!"� =%&#, !$� ����;�:�; �97�9�7 7;�<7: ����7���9
'$�.�-�#&$�.��)) $)��B &!��" #( -&�$ "� 79�:�<���� ���9:�<97 7;�<7: 7:�:�����<
� ))��--%,%.�$ "�" #( -&�$&'!��!5(�)$(%-$%( � ���;�9�9�< <<:���� 33 ���;���;�;�&$/���..� <���<�: ::���� 33 <;����;4&,,&!��#''.� ��;�;�9 �9�:7� 33 �����9��$6 (�)$(%-$%( )��!"� =%&#, !$� ���;����7 �����;7 7���<: ���9;����
'$�.��--%,%.�$ "�" #( -&�$&'!� �9�<�����7 ����:�7�: 7���<: �;��:��9:7'$�.�-�#&$�.��)) $)��B &!���" #( -&�$ "��
! $� �<�:���<;; >�9<�7;�?� 9��9� �<�7:9�:99
1'2 (!, !$�.��-$&2&$& )�-�#&$�.��)) $)����! $� H���7�������<� H�������7:��7�� H�������;�<�:9� H��7��;9��<��
�� #( -&�$&'!� 8# !) �4�)�-6�(� "�$'�5%!-$&'!)�#('�(�,)�'5�$6 �#(&,�(/��'2 (!, !$��)�5'..'4)0��
1'2 (!, !$�.��-$&2&$& )0� � ��",&!&)$(�$&'!��,�/'(��!"�-'%!-&.� � H������������������'.&- � � �9�7;����#&$�.�&,#('2 , !$�#('�(�,� � ;;���7��',,%!&$/�" 2 .'#, !$� � ��������;���(@)���('%!")��( -( �$&'!��#''.�� $-*� � ;;�:���
'$�.�" #( -&�$&'!� 8# !) � � H��������:�7�:��
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��� � � � � ��.�!- �
��!%�(/���������
��
�!-( �) )�
��
� -( �) )�
��.�!- �� - ,B (�����
�����
������.��������-����Q���#&$�.��)) $)��!'$�B &!��" #( -&�$ "0
��!"��!"�&,#('2 , !$)� H������9�7��7�� H����������������33� H���������������33� H����������9�7��7��'!)$(%-$&'!�&!�#('- ))� �:��9��� ;:������ ��9���<� �������'$�.�-�#&$�.��)) $)��!'$�B &!����������" #( -&�$ "� ����97�� ;:������ ��9���<� ;�:����
� � � � ���#&$�.��)) $)��B &!��" #( -&�$ "0� � � � � �
�.�!$��!"� =%&#, !$� �7�7�9��<�� ��7�<;�� 33� �9������:�� ))��--%,%.�$ "�" #( -&�$&'!� ;��;����<� :<����;� 33� ��9;����:'$�.�-�#&$�.��)) $)��B &!�����" #( -&�$ "��! $� �:�:���;��� ��:�<9�� 33� �:�;9��;��
� � � � ��%)&! ))3$/# ��-$&2&$& )�-�#&$�.����)) $)��! $� H��;�7�:����� H�����<�9�;;�� H�������9���<� H������;�7�:��99
� � � � �� �� #( -&�$&'!� 8# !) � � � � � H����������:<����;
�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�7�
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9���J� (���.� �������
�'!�3$ (,�.&�B&.&$/��-$&2&$/�5'(�$6 �/ �(� !" "�� - ,B (����������4�)��)�5'..'4)0��
��.�!- ���!%�(/��������
�(&'(�# (&'"��"D%)$, !$ �""&$&'!) � "%-$&'!)
��.�!- �� - ,B (�����
�����% �4&$6&!�'! �
/ �(#�- �����������-����Q
1 ! (�.�'B.&��$&'!�B'!") �<�;�9����H������ 3H������������������ 3H������������������ ����9����H������� �;��<�����H������ ���7�����H��� ,#'(�(/�!'$ ) ��<���������������� 3������������������� 3������������������� �;9��������������� ����9�������������� :�:;9��������� 2 !% �B'!")�3���� ���;�������������� 3������������������� 3������������������� 9�9��������������� �����9������������ ;���������������&.�.'�! ����7�7������������� 3������������������� 3������������������� 7����7������������� �<���9�������������� 7���<;�����������#&$�.�. �) 9��������������������� 3������������������� 3������������������� 9������������������� 3�������������������� 3����������������( ,&%,) 7:����<������������� 3������������������� 3������������������� �;���9������������� 7���:<7������������� 3���������������� $�# !)&'!�.&�B&.&$/ ���;���7;���������� 3������������������� 9��9;�������������� �7��;9������������� ����;��7����������� 3���������������'$�.������.&�B&.&$/ 3��������������������� ��<�;<:����������� �7��7�������������� 9���9�������������� ���;;<��������������� 3����������������',# !)�$ "��B) !- ) 7:���;��������������� 3������������������� <<�9�9������������� <���9�������������� 7;�9����������������� ���77����������'$�.�1'2 (!, !$�.��-$&2&$&$ ) :����:���9H������ ��<�;<:H���������� �;7���:H���������� ����<�;��H������� 9<�;;��77;H������ <�7<7�97�H���
������.��������-����� 2'.2&!��.'�!) ���9���::H�������� 3H������������������ 3H������������������ 9��<;�H������������ ���<7��<:H�������� :�����H��������� $�# !)&'!�.&�B&.&$/ ��;�7:<������������� 3������������������� 77�<�;������������� ���9<<������������� �7���9;������������� 3����������������',# !)�$ "��B) !- ) 9���:����������������� 3������������������� �<��9:������������� �:�:�7������������� ���9������������������ ����������������'$�.��%)&! ))3/# ��-$&2&$& ) ����:�:7�H�������� 3H������������������� :7��7�H������������� ��7��;�H����������� ���7:����H�������� :7��7�H���������
��',# !)�$ "� �B) !- )� 5'(� $6 � �'2 (!, !$�.� �-$&2&$& )� �!"� -�#&$�.� . �) )� �( � .&=%&"�$ "� &!� $6 �1 ! (�.��%!"*��
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�9�
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��#� ��� �������������������"�����6 �� ! (�.� 'B.&��$&'!�B'!")� $'�B �#�&"�4&$6� $�8� . 2& )�4 ( � &))% "� $'� -'!)$(%-$�'(��-=%&( � -�#&$�.��)) $)*� � B$� ) (2&- � #�/, !$)� �( � #(&,�(&./� ,�" � B/� $6 � �'!"� �!"� �!$ ( )$� �%!"� �!"� $6 � �%B.&-��%&."&!���',,&))&'!*� ,#'(�(/�!'$ )��( �� ! (�../�#�&"�5(',�$6 ���#&$�.��('D -$)��%!"��5$ (�B'!")��( �&))% "*��1 ! (�.�'B.&��$&'!�B'!")�'%$)$�!"&!���$�� - ,B (�����������( ��)�5'..'4)0��
�!$ ( )$���$ )� �(&�&!�.��))% � ��$%(&$/���$ �
�%$)$�!"&!��� - ,B (�����
�����
(& )����<�� �:*��9I�3�:*�9�I�� � H ������������ � ��������<� � H� ��7������ (& )������� ��*9��I�3�7*9��I�� � � ����9����� � ���������� � � ���7����� (& )������� ��*���I�3��*�9�I�� � � 9���9����� � ���������� � � ����9���� (& )������� �*���I�3�7*�;9I� � � ���<9����� � ��������7� � � ��������� (& )����7�� �*���I�3��*;9�I� � � ���������� � ��������7� � � <������ (& )����9�� �*���I�3��*9��I� � � 9��<������ � ��������;� � � 7��<����� (& )����9�� �*9��I�3��*�9�I� � � 9;9����� � ��������;� � � 77����� (& )����9�� �*���I�3��*9��I� � � ��<:������ � ��������:� � � ��:7����� (& )����9�� �*9��I�3�9*���I� � � �������� � ��������:� � � ��9���� (& )����:�� �*���I�3�7*���I� � � ���������� � ��������;� � � ��:;9���� (& )����;�� � �*���I�3��*;9�I� � � 9�979����� � ���������� � � 9�979����
� � � � � � � � � �'$�.� � � H� �����9����� � � H� �;��<�����
� ,#'(�(/�!'$ )�'%$)$�!"&!���$�� - ,B (�����������( ��)�5'..'4)0��
�!$ ( )$���$ )� �(&�&!�.��))% � ��$%(&$/���$ �
�%$)$�!"&!��� - ,B (�����
�����
(& )����:�� � �*�9�I� � H :�:;9����� � ��������<� � H� :�:;9���� (& )����;�� � �*;9�I� � � ���������� � ���������� � � ���������
� � � � � � � � � �'$�.� � �� H ����9����� � � H� ����9����
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�:�
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��6 ��!!%�.�" B$�) (2&- �( =%&( , !$)�$'��,'($&J �$6 �� ! (�.�'B.&��$&'!�B'!")��!"�$ ,#'(�(/�!'$ )�'%$)$�!"&!���)�'5�� - ,B (�����������( ��)�5'..'4)0��
1'2 (!, !$�.��-$&2&$& )�1 ! (�.��B.&��$&'!��'!")� ,#'(�(/��'$ )�
� �(�� �(&!-&#�.� �!$ ( )$� �(&!-&#�.� �!$ ( )$�
���<� H� ���7����� H �7��:�9 H :�:;9���� H� ����;������� ��<79���� � ;<<���9 � ��������� � �;��;9����� ����9���� � ;7��7�� � 33 � 33����� ��������� � :<7�9;; � 33 � 33����� ��9������ � :����<: � 33 � 33
���7�3������ ���:����� � ���7;��:: � 33 � 33���<�3������ ;���9���� � ����7���� � 33 � 33���7�3������ ���79���� � ��9���� � 33 � 33
� � �'$�.� H� �;��<����� H ;���:���� H ����9���� H� �9;�<��
������������ �4��������������������������6 ��&$/�'5�� .��&( ��%B.&-��%&."&!���',,&))&'!�>���?�&)���-',#'! !$�%!&$�'5�$6 ��&$/*�6 ��&$/�6�)��%$6'(&$/�$'�&))% �( 2 !% �B'!")�$'�5&!�!- �$6 �-')$�'5��-=%&(&!���!"�'(�-'!)$(%-$&!��.�!"��!"�5�-&.&$& )�'# (�$ "� 5'(� �� #%B.&-� #%(#') � B/� ���'2 (!, !$�.� !$&$/*� 6 � ���� 5&!�!- )� $6 �" B$� ) (2&- � '5� $6 �( 2 !% � B'!")� B/� . �)&!�� $6 � .�!"� �!"� 5�-&.&$& )� $'� $6 � �'2 (!, !$�.� !$&$/� 46&-6� '# (�$ )� &$*� 6 �'# (�$&!���'2 (!, !$�.� !$&$/��%�(�!$ )�$6 �( !$�.)�%!" (�$6 �����. �) *�6 �����6�)�!'�#'4 (�$'�. 2/�$�8 )���!"�( 2 !% �B'!")�&))% "�B/�$6 ������( �!'$�&!-.%" "�&!��!/�. ��.�" B$�.&,&$�$&'!�'5�$6 ��&$/*��..�( 2 !% )�5(',��&$/���..�( !$)���(�/�4�$ (�)�. )��#''.�'# (�$&'!)���!"�&!"%)$(&�.�.�!"�)�. )��( �#. "� "�5'(�" B$�) (2&- �'!�$6 �( 2 !% �B'!")*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�;�
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9���'(�$6 �#�/, !$�'5�&$)�. �) �'B.&��$&'!)��&5�! - ))�(/��$6 ��&$/�,�/�. 2/�$�8 )�'!��..�$�8�B. �$�!�&B. �#('# ($/�4&$6&!�&$)�$ ((&$'(&�.�D%(&)"&-$&'!*��'(�$6 �.�!"�#('D -$�B'!")��&!��""&$&'!�$'�$6 �. �) �#�/, !$)��'$6 (�( 2 !% �#. "� "�5'(�" B$�) (2&- �&!-.%" �)�. )�'5�.�!"�5'(�&!"%)$(&�.�#%(#') )*��6 �'%$)$�!"&!��( 2 !% �B'!")��( ��)�5'..'4)0��
�%(#') � �!$ ( )$���$ � �(&�&!�.��))% � ��$%(&$/���$ � �,'%!$�
��!"��('D -$�3��!"%)$(&�.���(@�3��� (& )������� :*���I�3�:*��7I� � H �<���9���� � � 9�������� H 7<9����� 2 !% �� 5%!"&!���'!")�3� (& )����7�� �*���I�3�7*���I� � � ���9����� � � ��������� � ��99������8�B. �� 2 !% �� 5%!"&!���'!")�3��
(& )����7�� �*���I�3�7*:��I� � � ��������� � � ��������� � <�9����
��8�B. �� 2 !% �� 5%!"&!���'!")�3�
(& )����;� �*9��I�3��*;9�I� � � �;�;99���� � � ���������7� � �;��99����� � � � � � � �
'$�.� � � H 7���7������ � � � H �����9�����6 ��&$/�6�)� !$ ( "�&!$'�-�#&$�.�. �) ���( , !$)�4&$6�$6 �����5'(�. �) )�'5�$6 ��&$/���..��)4&,,&!��#''.��!"�$6 �.�!"�#('D -$*�� �) �#�/, !$)��( �$'�B �&!��,'%!$)��" =%�$ �$'�#�/�$6 �����)�#(&!-&#�.��!"�&!$ ( )$�,�$%(&$& )�'!�&$)�B'!")�#�/�B. *��%$%( �#�/, !$)�"% �5(',�$6 ��&$/��( �( 5. -$ "�B .'40��
�����'!")�� �(�� �(&!-&#�.� �!$ ( )$� '$�.�
���<� H� ;������ H ;������� H ��77���������� �:9���� � :<��99�� � ��99��99������ ��������� � ::���9�� � ��:;���9������ ��������� � :������� � �������������� � � ����9���� � 9<����:� � ��<�����:
���7�3������ ;�������� � ����;�<��� � <�99;�<�����<�3������ ;�9������ � <�<����� � ��79<���������3����7� ���;9���� � ���<�:� � ���<��<�:
� � � �'$�.� H� �����9���� H :�9������� H �;�;������
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
���
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��4������-�����6 ��&$/�6�)�#. "� "�)# -&5&-�( 2 !% �)$( �,)�$'�) -%( �$6 �( #�/, !$�'5�- ($�&!�'%$)$�!"&!��" B$�&))% )*�6 �5'..'4&!��$�B. �.&)$)�$6') �( 2 !% )��$6 ��,'%!$��!"�$ (,�'5�#. "� �( ,�&!&!���$6 �-%(( !$�/ �(�#(&!-&#�.��!"�&!$ ( )$�'!�$6 �" B$��$6 ��,'%!$�'5�#. "� "�( 2 !% �( -'�!&J "�"%(&!��$6 �-%(( !$�5&)-�.� / �(�� �!"� �##('8&,�$ � # (- !$�� � '5� $6 � ( 2 !% � )$( �,� $6�$� 6�)� B !� -',,&$$ "*� �!!%�.�#(&!-&#�.��!"� &!$ ( )$�#�/, !$)�!'$� 5%!" "�B/�$6 �#. "� "�( 2 !% )�!'$ "�B .'4��( �B%"� $ "��!"�#�&"�5(',�$6 ��&$/�)�� ! (�.�$�8�( 2 !% )0��
�))% � � 2 !% ��. "� "��,'%!$�'5�
�. "� � (,�'5�
�',,&$, !$�
� (- !$�'5�� 2 !% ��. "� "�
�(&!-&#�.��!"��!$ ( )$�5'(�
�����
�. "� "�� 2 !% )�
� -'�!&J "�&!������
�#�- �����������-�����
���������;��
���!"�)�. )�5'(�&!"%)$(&�.�
%) � H������9����; � 6('%�6����7� � ���I� H�������<79�;;7 � H������������������33
���7���
�&$/�6�..�( !$� H�������<��:;9 � 6('%�6������ � ���I� H��������:<�;�� � H���������:��<�;
���7��
��!!%�.�#('# ($/�$�8�. 2/�
�!"�)�. �'5�4�$ (�$6('%�6� 55.% !$�.&! �&,#('2 , !$)� H�������;��:�< � 6('%�6������ � ���I���� H������������9� � H���������9:�;<�
���������%�����(',� $&, � $'� $&, �� $6 � �&$/� 6�)� )#'!)'( "� $6 � &))%�!- � '5� �!"%)$(&�.� � 2 !% � �'!")� $'� #('2&" �5&!�!-&�.� �))&)$�!- � $'� #(&2�$ 3) -$'(� !$&$& )� 5'(� $6 � �-=%&)&$&'!� �!"� -'!)$(%-$&'!� '5� &!"%)$(&�.� �!"�-',, (-&�.� 5�-&.&$& )� " , "� $'� B � &!� $6 � #%B.&-� &!$ ( )$*� 6 � B'!")� �( � ) -%( "� B/� $6 � #('# ($/�5&!�!- "� �!"� �( � #�/�B. � )'. ./� 5(',� #�/, !$)� ( - &2 "� '!� $6 � %!" (./&!�� ,'($��� � .'�!)*� �#'!�( #�/, !$� '5� $6 � B'!")�� '4! ()6&#� 5'(� $6 � �-=%&( "� 5�-&.&$& )� $(�!)5 ()� $'� $6 � #(&2�$ 3) -$'(� !$&$/�) (2 "�B/�$6 �B'!"�&))%�!- *�6 ��&$/��$�$ �!'(��!/�#'.&$&-�.�)%B"&2&)&'!�$6 ( '5�&)�'B.&��$ "�&!��!/�,�!! (� 5'(� ( #�/, !$� '5� $6 � B'!")*� 6 � $'$�.� �,'%!$� '%$)$�!"&!�� �$� � - ,B (� ���� ����� 4�)�H9����;�:�7*
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
�<�
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9����-��-����(������6 ��&$/� !$ ( "�&!$'���.'�!���( , !$�4&$6�$6 ���!)�)�� #�($, !$�'5�� �.$6��!"��!2&('!, !$�5'(���#('D -$� $'� ( ('%$ �- ($�&!�4�$ (.&! )��!"�( #.�- � 8&)$&!��%) (�, $ ()*�6 �,�8&,%,��,'%!$�'5� $6 �.'�!� &)� !'$� $'� 8- "� H�9��<7�*� �(&!-&#�.� �!"� &!$ ( )$� #�/, !$)� -',, !- "� �%�%)$� ��� ���7��$��*�:I�&!$ ( )$*��$�� - ,B (�����������$6 �B�.�!- �'5�$6&)�.'�!�4�)�H:;����9*��6 ��&$/� !$ ( "�&!$'���.'�!���( , !$�4&$6�$6 ���!)�)�� #�($, !$�'5�� �.$6��!"��!2&('!, !$�5'(���#('D -$� $'� #('2&" � 5'(� 2�(&'%)� &,#('2 , !$)� $'� $6 � )�!&$�(/� ) 4 (� )/)$ ,� &!-.%"&!�� ,�!6'. �( 6�B&.&$�$&'!�� ( #.�- , !$� '5� ) 2 (�.� ) 4 (� .&! )�� %#�(�" � $'� 4�)$ 4�$ (� #%,#&!�� )$�$&'!� �!"������)/)$ ,*�6 �,�8&,%,��,'%!$�'5�$6 �.'�!�&)�!'$�$'� 8- "�H9�9�<��*��(&!-&#�.��!"�&!$ ( )$�#�/, !$)�-',, !- "� #$ ,B (�������7��$��*��I�&!$ ( )$*��$�� - ,B (�����������$6 �B�.�!- �'5�$6&)�.'�!�4�)�H7�:�;��*���!!%�.�" B$�) (2&- �( =%&( , !$)��)�'5�� - ,B (�����������( ��)�5'..'4)0��
�%)&! ))3$/# ��-$&2&$& )� �$ (��%!"�� 4 (��%!"�
� �(�� �(&!-&#�.� �!$ ( )$� �(&!-&#�.� �!$ ( )$�
���<� H� ����;� H ���7�9 H ���<7�� �H� ����������� �<���� � ���;�� � �7�79�� � � ;�9:������� �<�<9< � �����: � �7�<;�� � � ;���������� 7����; � ����<< � �9�9��� � � :�:�������� 7��;�� � <�99: � �:��7;� � � :��9��
���7�3������ ����999 � �:��9< � �������� � � ����<<����<�3������ �7;�;<7 � �7�<�� � �9���:<� � � <�9�9�
���7� � � ;��;< � ��� � 33� � � 33�� � � � � �
'$�.� H� :;����9 H ��:��:� H 7�:�;��� �H� :����9�������(�����6 ��&$/� !$ ( "�&!$'���.'�!���( , !$�4&$6�$6 ���!)�)�� #�($, !$�'5�(�!)#'($�$&'!�5'(���#('D -$�$'�B%&."��� (�&.('�"�)#%(� &!� $6 �%!5.'4 (��',, (- ���(@*�6 �,�8&,%,��,'%!$�'5� $6 � .'�!� &)�!'$� $'� 8- "�H7����9�*���/, !$)�-',, !- �%#'!� $6 �-',#. $&'!�'5� $6 �(�&.('�"�)#%(��$��I� &!$ ( )$*��$�� - ,B (�����������$6 �B�.�!- �'5�$6&)�.'�!�4�)�H�<���9�*��!!%�.�" B$�) (2&- �( =%&( , !$)��)�'5�� - ,B (�����������( ��)�5'..'4)0��
� �(�� �(&!-&#�.� �!$ ( )$� '$�.�
���<� H� 7���<; H 9�7��� H� 7:�9�9����� 7��<�; 7�9<�� � 7:�9�9����� 7��;;� ��;9�� � 7:�9�9����� 7��:�: ����<� � 7:�9�9����� 77�9�; ������ � 7:�9�9
���7�3����9� ;:���� ���9�� � ;;�99�� �
'$�.� H� �<���9� H �����9� H� �����;9
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7��
�&&&J� %!$�&(!%�" $!�� "��((���$&+&$&!���"%��'"%��6� "$&"'!%9��%J� &�� �����$ ���� �����)%,,�(/�'5�&!$ (5%!"�$(�!)5 ()�B/�5%!"�$/# �5'(�$6 �/ �(� !" "�� - ,B (����������&)��)�5'..'4)0��
�'!"��!"��!$ ( )$� ����
� �# -&�.��&�64�/�
�=%&#, !$�� ) (2 �
��#&$�.��,#('2 , !$)� '$�.�
(�!)5 (�5(',0� �
1 ! (�.� H�������������:7�:�� H�������������7���� � H���������9����� H�������������9����� H�������������9����� H�����������<<<�7��# -&�.�$( $��!"��&�64�/� 7��:�< 33 � 33 33 33 7��:�<'.&"� �)$ � � 33� 33 � �9������ 33� 33� �9����� �$ (� �7����9 33 � 33 33 33 �7����9 4 (� ��;�<�7 33 � 33 33 33 ��;�<�7
�
'$�.� H������������;:<���� H�������������7���� � H��������7������ H�������������9����� H�������������9����� H�����������997���<
�(�!)5 ()��( �%) "�$'�>�?�,'2 �( 2 !% )�5(',�$6 �5%!"�$6�$���)$�$%$ �'(�$6 �B%"� $�( =%&( )�$'�-'.. -$�$6 ,�$'�$6 �5%!"�$6�$���)$�$%$ �'(�$6 �B%"� $�( =%&( )�$'� 8# !"�$6 ,��>�?�,'2 �( - &#$)�( )$(&-$ "�$'�" B$� ) (2&- � 5(',� $6 � 5%!")� -'.. -$&!�� $6 � ( - &#$)� $'� $6 � �'!"� �!"� �!$ ( )$� �%!"� �)� " B$� ) (2&- �#�/, !$)�B -', �"% ���!"� >�?�%) �%!( )$(&-$ "� ( 2 !% )�-'.. -$ "� &!� $6 �1 ! (�.��%!"� $'� 5&!�!- �2�(&'%)� #('�(�,)� �--'%!$ "� 5'(� &!� '$6 (� 5%!")� &!� �--'("�!- � 4&$6� B%"� $�(/� �%$6'(&J�$&'!)*� �!/�$(�!)5 ()�4&$6&!� $6 ��'2 (!, !$�.� 5%!")�6�2 �B !� .&,&!�$ "� &!� $6 ��'2 (!, !$34&" �$�$ , !$�'5��-$&2&$& )*����""&$&'!�../��$6 ���#&$�.��('D -$)��%!"�-'!)$(%-$ "��)) $)�&!�$6 ��,'%!$�'5�H��7�9����!"�H997��7��$'�$6 � �$ (��!"� 4 (��%!")��( )# -$&2 ./*�6&)��-$&2&$/� &)�)6'4!��)��!� 8# !"&$%( �5(',�$6 ���#&$�.��('D -$)��%!"��!"�-�#&$�.�-'!$(&B%$&'!�( 2 !% � $'� $6 � �$ (��!"� 4 (��%!")�� &!� $6 � 5%!"� 5&!�!-&�.�)$�$ , !$)*� �'4 2 (�� $6&)� �-$&2&$/� &)� )6'4!� 4&$6&!� $(�!)5 ()� &!� $6 � �'2 (!, !$34&" � 5&!�!-&�.�)$�$ , !$)*���!J� ���������������)%,,�(/�'5�$6 �-',#'! !$)�'5��'2 (!, !$�.�5%!"�B�.�!- ��B/�#%(#') ��&)��)�5'..'4)0��
1 ! (�.�
��'!"��!"��!$ ( )$�
���#&$�.��('D -$)�
� �%B.&-��%&."&!��
�',,&))&'!
� ���!"���!@�
��'!,�D'(�
1'2 (!, !$�.�
�
'$�.�"���������� H�������;��:<;� H�����������������33 H������������������33 H�����������������33 H���������;�;�� H�����������������33 H�����<��<���<;���� ������� Q�
�'!"��!"�&!$ ( )$� 33 97��;<9 33 33 33 33 97��;<9��!"�B�!@� 33 33 33 33 ��9��:9 33 ��9��:9��#&$�.�#('D -$)� 33 33 ��;�9���: 33 33 79����� ���;;���7�%B.&-��%&."&!���',,&))&'!� 33 33 33 ����99; 33 33 ����99;�(%��5'(5 &$%( � 33 33 33 33 33 ��:9� ��:9�
�����������Q�
��#&$�.�#('D -$)� 33 33 33 33 33 �<:�7�: �<:�7�:�=%&#, !$�( ) (2 � 33 33 33 33 33 �:�;:7 �:�;:7
�'��������� ��:�<�<:< 33 33 33 33 33 ��:�<�<:<$����� H������:<��::: H�������97��;<9 H������;�9���: H�����������99; H�������9��9:9 H�������:;<��:� H����:�����;��
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7��
�&+J� $*!��&"� ���$& "���J� ���U�����������6 ��&$/� &)� 8#') "� $'� 2�(&'%)� (&)@)�'5� .'))� 5(',� $'($)0� $6 5$�� "�,�� � $'��!"�" )$(%-$&'!�'5� �)) $)F�B%)&! ))� &!$ ((%#$&'!F� (('()� �!"� ',&))&'!)F� ,#.'/ � &!D%(& )� �!"� &..! )) )F� !�$%(�.� "&)�)$ ()F� �!"� ,#.'/ � 6 �.$6�� " !$�.� �!"� �--&" !$� B ! 5&$)*� �',, (-&�.� &!)%(�!- � -'2 (�� � &)� #%(-6�) "� 5'(�-.�&,)��(&)&!��5(',�)%-6�,�$$ ()*� $$. "�-.�&,)�6�2 �!'$� 8- " "�$6&)�-',, (-&�.�-'2 (�� �&!��!/�'5�$6 �$6( �#( - "&!��/ �()*���J� ����������(�����������G�(&'%)�. ��.��-$&'!)��!"�-.�&,)����&!)$�$6 ��&$/��( �-%(( !$./�# !"&!�*�6 �%.$&,�$ �.&�B&.&$/�$6�$�,&�6$�( )%.$�5(',�$6 &(�( )'.%$&'!�&)�!'$�#( ) !$./�" $ (,&!�B. F�6'4 2 (��&!�$6 �'#&!&'!�'5�,�!�� , !$��!"�-'%!) .��$6 �#('B�B&.&$/�'5�,�$ (&�.����( ��$ �.&�B&.&$& )�( )%.$&!��5(',�$6 ) �-.�&,)�&)�( ,'$ *���J� ����� �������������������6 ��&$/�6�"�'%$)$�!"&!��-'!)$(%-$&'!�-',,&$, !$)�5'(�2�(&'%)�-�#&$�.�#('D -$)��!"�&,#('2 , !$)��$�� - ,B (�����������)�5'..'4)0��
�('D -$��('D -$�-')$)�$'�
"�$ ��##('2 "�
#('D -$��,'%!$��( )$4&-@� H �77�99� � H �������� ''".�4!�� )&�!� � � �77�9�� � � 9�����9�
H ��<���� � H ��������9��%J� ������������������������ U�'������������ �����6 ��&$/�)� (2&- ���( , !$�4&$6��6&)6'.,��( @��$&.&$/��%$6'(&$/�>�%$6'(&$/?�( =%&( )�$6 ��&$/�$'�#�/�5'(�,&!&,%,��,'%!$)�'5�4�$ (��!"�$( �$ "�4�)$ 4�$ (��46 $6 (�)%-6�4�$ (�&)��-$%�../�( - &2 "�B/�$6 ��&$/�'(�46 $6 (�)%-6�4�)$ 4�$ (�&)��-$%�../��-- #$ "�B/�$6 ��%$6'(&$/��!"�$( �$ "*���6 � (2&- ���( , !$��.)'�( =%&( )� $6 ��&$/� $'�,�&!$�&!��!"�-'.. -$� (�$ )��!"�-6�(� )� 5'(�) (2&- �)%55&-& !$�$'��?�#�/�&$)�)6�( �'5�$6 � 8# !) )�'5�$6 ��%$6'(&$/��B?�#�/�&$)�)6�( �'5�$6 ��%$6'(&$/�)�" B$�) (2&- �#�/, !$)��-?� !�B. �$6 ��&$/�$'�6�2 �&!� �-6�5&)-�.�/ �(���-'2 (�� �(�$&'���)�" 5&! "�B/�$6 ���( , !$��'5�!'$� . ))� $6�!��*�9�'!��..�" B$�) (2&- �( =%&( , !$)��!"�'5�!'$� . ))� $6�!��*���'!��!/��""&$&'!�.� �!" B$ "! ))�� �)� " 5&! "� B/� $6 � ��( , !$�� �!"� "?� #('2&" � ( �)'!�B. � �!"� �" =%�$ �( ) (2 )�5'(�$6 �#�/, !$�'5��""&$&'!�.��!" B$ "! ))*���6 � �&$/�)� 'B.&��$&'!)� %!" (� $6 � (2&- � ��( , !$� �( � ) 2 (�.F� !'� , ,B (� '5� $6 � �%$6'(&$/� &)�( )#'!)&B. �5'(�#�/, !$�'B.&��$&'!)�'5��!/�'$6 (�, ,B (�'5�$6 ��%$6'(&$/*��
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7��
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��&,&.�(./�� �)� ( =%&( "� B/� $6 � B'!"� -'2 !�!$)� ( .�$&!�� $'� B'!")� &))% "� B/� $6 � �%$6'(&$/�� $6 � (�$ )�-6�(� "�B/� �-6�-&$/�#�($&-&#�$&!��&!�$6 ��%$6'(&$/�$'�&$)�( )&" !$)��!"�B%)&! )) )�)6'%."�( )%.$�&!�$6 �5%!")�! - ))�(/�5'(�$6 �-&$& )�$'�#�/�5'(��..�$6 �4�$ (��!"�4�)$ 4�$ (�-')$)�'5�$6 ��%$6'(&$/�&!��""&$&'!�$'� �..� " B$� ) (2&- � #�/, !$)*� �%(( !$� / �(� '# (�$&!�� ( )%.$)� '5� $6 � �%$6'(&$/� ( 5. -$ "� �� .'))� &!�-',#�(&)'!�4&$6�$6 �#( 2&'%)�/ �(*��('2&)&'!)�'5�$6 �( 2 !% �B'!"�(�$ �-'2 !�!$�4 ( �-',#.& "�4&$6�5'(�����*���$�/ �(3 !"�� $6 ��%$6'(&$/�6�"�( 2 !% �B'!")��-�#&$�.� . �) )��!"��� .�!"�-'!$(�-$�'%$)$�!"&!�� &!�$6 �#(&!-&#�.��!"�&!$ ( )$��,'%!$�'5�H�����:��;7*�6 �" B$�&)�,'( �5%../�" )-(&B "�&!�$6 ��%"&$ "�5&!�!-&�.�)$�$ , !$)� '5� $6 � �%$6'(&$/*� � B$� �",&!&)$(�$&'!� &)� 6�!". "� B/� $6 � ��!@� '5� � 4� �'(@� �!"� -%(&$/���!@�'5���!)�)��&$/�� 8-.%"&!��$6 �-�#&$�.�. �) )��!"�.�!"�-'!$(�-$*���%(&!�����<���� $ ,#'(�(/� 5&!�!-&!����( , !$�4�)��##('2 "�B/� $6 ��&$/� 5'(� $6 ��%$6'(&$/� $'�,�@ �- ($�&!�-�#&$�.�&,#('2 , !$)�$'�$6 �4�)$ 4�$ (�$( �$, !$�5�-&.&$& )*�6 �&,#('2 , !$)�4 ( ��##('2 "�%#�$'�H��<�����:��'5�46&-6�$6 ��&$/�'5�� .��&( �&)�.&�B. �5'(�H������<�7*�6 �$ ,#'(�(/�5&!�!-&!��B/�$6 ��&$/� 4&..� B � ( #�&"� $6('%�6� $6 � &))%�!- � '5� ( 2 !% � B'!")� B/� $6 � �%$6'(&$/*� 6 � #�/, !$� '5� $6 �( 2 !% �B'!")�4&..�B �$6('%�6�,'!$6./�#�/, !$)�B/�$6 �-&$& )�$'�$6 ��%$6'(&$/�5(',�( 2 !% )�&!�%$&.&$/�5%!")*��� .��&( �)�)-6 "%. "�)6�( �'5�#�/, !$)�"% �$'�$6 ��%$6'(&$/�5'(�-%(( !$./�&))% "�( 2 !% �B'!")��!"�&!$ ( )$��)�'5�� - ,B (�����������( ��)�5'..'4)0��
�!$ ( )$��!"�� �(� �(&!-&#�.����<� H ��<:���<7����� ��<:9�<79����� ����7��7;����� ���79���9����� ���:���9;
���7��!"�$6 ( �5$ (� ���;����;:'$�.� H ���;����77
�6 ��B'2 �#�/, !$)��( �( -'�!&J "��)� 8# !) )�&!-%(( "�5'(�4�$ (��!"�) 4 (�'# (�$&'!)*��%!"&!��&)�$'�B �#('2&" "�B/�%) (�-6�(� )*��!J� 4���������� �� �4���.!��������������4������%����������4������General Information about the Pension Plan Plan description: 6 ��&$/�#�($&-&#�$ )�&!�$6 ���!)�)��%B.&-��,#.'/ )�� $&( , !$�/)$ ,�>����?����-')$3)6�(&!��,%.$&#. 3 ,#.'/ (�" 5&! "�B ! 5&$�# !)&'!�#.�!��)�#('2&" "�B/��**�*�;737<���� $*�) =*���!)�)�.�4� )$�B.&)6 )��!"��, !")�B ! 5&$�#('2&)&'!)*�������&))% )���#%B.&-./��2�&.�B. �5&!�!-&�.�( #'($� $6�$� &!-.%" )� 5&!�!-&�.� )$�$ , !$)� �!"� ( =%&( "� )%##. , !$�(/� &!5'(,�$&'!*� ������ 5&!�!-&�.�)$�$ , !$)� �( � &!-.%" "� &!� &$)� �',#( 6 !)&2 � �!!%�.� �&!�!-&�.� � #'($� 46&-6� -�!� B � 5'%!"� '!� $6 �
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7��
�&+J� $*!��&"� ���$& "�6� "$&"'!%9� ����� 4 B)&$ � �$� 6$$#0��444*@# ()*'(�� '(� B/� 4(&$&!�� $'� ����� >:��� '%$6� ��!)�)�� %&$ � �����'# @�����:::��?�'(�B/�-�..&!���3���3�;939;�;*� Benefits provided. �����#('2&" )�( $&( , !$�B ! 5&$)��.&5 �&!)%(�!- ��"&)�B&.&$/�&!-', �B ! 5&$)���!"�" �$6� B ! 5&$)*� � ! 5&$)� �( � )$�B.&)6 "� B/� )$�$%$ � �!"� ,�/� '!./� B � -6�!� "� B/� $6 � 1 ! (�.��)) ,B./*�� ,B (� ,#.'/ )�4&$6�$ !�'(�,'( �/ �()�'5�-( "&$ "�) (2&- ��,�/�( $&( ��)� �(./��)��� �99��4&$6��!��-$%�(&�../�( "%- "�,'!$6./�B ! 5&$*��'(,�.�( $&( , !$�&)��$��� �:9���� �:��4&$6�$ !�/ �()�'5�-( "&$ "�) (2&- ��'(�46 ! 2 (��!� ,#.'/ �)�-',B&! "��� ��!"�/ �()�'5�-( "&$ "�) (2&- � =%�.��9��#'&!$)�*� �'!$6./� ( $&( , !$�B ! 5&$)��( �B�) "�'!���)$�$%$'(/� 5'(,%.�� $6�$� &!-.%" )� 5&!�.��2 (�� �)�.�(/��!"�/ �()� '5� ) (2&- *� 6 !� !"&!�� ,#.'/, !$�� , ,B (� ,#.'/ )� ,�/� 4&$6"(�4� $6 &(� -'!$(&B%$&'!)�5(',�$6 &(�&!"&2&"%�.��--'%!$)��&!-.%"&!��&!$ ( )$*�� ,B (� ,#.'/ )�46'�4&$6"(�4�$6 &(��--%,%.�$ "�-'!$(&B%$&'!)�.') ��..�(&�6$)��!"�#(&2&. � )�'5�, ,B ()6&#*�6 ��--%,%.�$ "�-'!$(&B%$&'!)��!"�&!$ ( )$��( �" #')&$ "�&!$'��!"�"&)B%() "�5(',�$6 �, ,B ()6&#��--%,%.�$ "�( ) (2 �5%!"��)� )$�B.&)6 "�B/��**�*�;737<��*��� ,B (� ,#.'/ )� -6'') �'! �'5� ) 2 !�#�/, !$� '#$&'!)� 5'(� $6 &(�,'!$6./� ( $&( , !$� B ! 5&$)*��$�( $&( , !$� �� , ,B (� ,#.'/ � ,�/� ( - &2 � �� .%,#3)%,� #�/, !$� '5� %#� $'� 9�I� '5� $6 � �-$%�(&�.�#( ) !$�2�.% �'5�$6 �, ,B (� ,#.'/ �)�.&5 $&, �B ! 5&$*��&)�'(�6 (�,'!$6./�( $&( , !$�B ! 5&$�&)�$6 !�# (,�! !$./�( "%- "�B�) "�'!�$6 ��,'%!$�'5�$6 �.%,#3)%,*�� ! 5&$�&!-( �) )��&!-.%"&!���"�6'-�#')$3( $&( , !$�B ! 5&$� &!-( �) )��,%)$�B �#�)) "� &!$'� .�4�B/� $6 ���!)�)�� �&).�$%( *�� ! 5&$� &!-( �) )��( �%!" (�$6 ��%$6'(&$/�'5�$6 �� �&).�$%( ��!"�$6 �1'2 (!'(�'5�$6 �$�$ �'5���!)�)*���6 ������� �&).�$%( �,�" �-6�!� )��55 -$&!��! 4�6&( )��-%(( !$�, ,B (� ,#.'/ )��!"� ,#.'/ ()*���! 4��������-�)6�B�.�!- �( $&( , !$�#.�!�5'(�! 4�6&( )�)$�($&!����!%�(/�������9��4�)�-( �$ "*��'(,�.� ( $&( , !$� �� � 5'(� ����� �� &)� :9� 4&$6� 5&2 � / �()� '5� ) (2&- � '(�:��4&$6����/ �()� '5� ) (2&- *���(./� ( $&( , !$� &)� �2�&.�B. � �$� �� � 99� 4&$6� $ !� / �()� '5� ) (2&- �� 4&$6� �� ( "%- "� B ! 5&$*� �'!$6./�B ! 5&$�'#$&'!)��( ��!��!!%&$/�B ! 5&$�B�) "�'!�$6 ��--'%!$�B�.�!- ��$�( $&( , !$*����'(� �..� # !)&'!� -'2 (�� � �('%#)�� $6 � ( $&( , !$� B ! 5&$)� �( � "&)B%() "� 5(',� $6 � ( $&( , !$� B ! 5&$�#�/, !$�( ) (2 �5%!"��)� )$�B.&)6 "�B/��**�*�;737<��*� Contributions. � �**�*� ;737<�<� �!"� �**�*� ;737<����� )$�B.&)6� $6 � ����� , ,B (3 ,#.'/ �-'!$(&B%$&'!)� (�$ )*� ����� 6�)� ,%.$&#. � B ! 5&$� )$(%-$%( )� �!"� -'!$(&B%$&'!� (�$ )� " # !"&!�� '!�46 $6 (�$6 � ,#.'/ �&)������������������'(��������, ,B (*��������, ,B ()��( ��-$&2 ��!"� -'!$(&B%$&!�� , ,B ()� 6&( "� B 5'( � �%./� ��� ���<*� ����� �� , ,B ()� 4 ( � 5&()$� ,#.'/ "� &!� ��-'2 ( "�#')&$&'!�'!�'(��5$ (��%./�������<���!"��������, ,B ()�4 ( �5&()$� ,#.'/ "�&!���-'2 ( "�#')&$&'!�'!�'(��5$ (���!%�(/�������9*��55 -$&2 ���!%�(/�������9����!)�)�.�4� )$�B.&)6 "�$6 ������, ,B (3 ,#.'/ �-'!$(&B%$&'!�(�$ ��$�:I�'5�-'2 ( "�)�.�(/� 5'(�����������������!"��������, ,B ()*�� ,B (�-'!$(&B%$&'!)��( �4&$66 ."�B/�$6 &(� ,#.'/ (��!"�#�&"�$'�������--'("&!��$'�$6 �#('2&)&'!)�'5� -$&'!�7�7>6?�'5�$6 ��!$ (!�.�� 2 !% ��'" *�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
77�
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��$�$ � .�4� #('2&" )� $6�$� $6 � ,#.'/ (� -'!$(&B%$&'!� (�$ )� 5'(� ����� ��� ����� �� �!"� ����� �� B �" $ (,&! "�B�) "�'!�$6 �( )%.$)�'5� �-6��!!%�.��-$%�(&�.�2�.%�$&'!*������&)�5%!" "�'!��!��-$%�(&�.�( ) (2 �B�)&)*���!)�)� .�4�) $)��� .&,&$�$&'!�'!��!!%�.� &!-( �) )� &!� $6 � ,#.'/ (� -'!$(&B%$&'!� (�$ )*�6 ��-$%�(&�../�" $ (,&! "� ,#.'/ (�-'!$(&B%$&'!� (�$ � >!'$� &!-.%"&!�� $6 ��I�-'!$(&B%$&'!� (�$ � 5'(� $6 �� �$6��!"��&)�B&.&$/��('�(�,?��!"�$6 �)$�$%$'(/�-'!$(&B%$&'!�(�$ �4�)��*�<I�5'(������5'(�$6 �5&)-�.�/ �(� !" "�� - ,B (���������*���'!$(&B%$&'!)� $'� $6 � # !)&'!� #.�!� 5(',� $6 � �&$/� 4 ( � H�79�;�:� 5'(� ����� 5'(� $6 � / �(� !" "�� - ,B (���������*� � !)&'!��&�B&.&$& )��� !)&'!��8# !) ���!"�� 5 (( "��%$5.'4)�'5�� )'%(- )��!"�� 5 (( "� �!5.'4)�'5�� )'%(- )�� .�$ "�$'�� !)&'!)���.$6'%�6� ����� �",&!&)$ ()� '! � -')$� )6�(&!�� ,%.$&#. 3 ,#.'/ (� " 5&! "� B ! 5&$� # !)&'!� #.�!��) #�(�$ � >)%B?� �-$%�(&�.� 2�.%�$&'!)� �( � #( #�( "� $'� " $ (,&! � $6 � �-$%�(&�.� " $ (,&! "� -'!$(&B%$&'!�(�$ �B/��('%#*��'..'4&!��$6&)�, $6'"��$6 �, �)%( , !$�'5�$6 �-'.. -$&2 �! $�# !)&'!�.&�B&.&$/��" 5 (( "�'%$5.'4)�'5�( )'%(- )��" 5 (( "�&!5.'4)�'5�( )'%(- )���!"�# !)&'!� 8# !) ��( �" $ (,&! "�) #�(�$ ./�5'(� �-6��('%#�'5�$6 �#.�!*�6 ��&$/�#�($&-&#�$ )�&!�$6 �.'-�.�>����?��('%#*� �$� � - ,B (� ���� ������ $6 � �&$/� ( #'($ "� �� .&�B&.&$/� '5� H�������<<� 5'(� ����� 5'(� &$)� #('#'($&'!�$ �)6�( �'5�$6 �������-'.. -$&2 �! $�# !)&'!�.&�B&.&$/*�6 �-'.. -$&2 �! $�# !)&'!�.&�B&.&$/�4�)�, �)%( "�B/� ����� �)� '5� �%! � ���� ������ �!"� $6 � $'$�.� # !)&'!� .&�B&.&$/� %) "� $'� -�.-%.�$ � $6 � -'.. -$&2 � ! $�# !)&'!�.&�B&.&$/�4�)�" $ (,&! "�B/��!��-$%�(&�.�2�.%�$&'!��)�'5�� - ,B (��������;�46&-6�4�)�('.. "�5'(4�("�$'��%! ���������*�6 ��&$/�)�#('#'($&'!�'5�$6 �-'.. -$&2 �! $�# !)&'!�.&�B&.&$/�4�)�B�) "�'!�$6 �(�$&'� '5� $6 � �&$/�)� �-$%�.� -'!$(&B%$&'!)� $'� ������ ( .�$&2 � $'� $6 � $'$�.� ,#.'/ (� �!"� !'! ,#.'/ (�-'!$(&B%$&'!)�'5�$6 ������5'(�$6 �5&)-�.�/ �(� !" "��%! ���������*�6 �-'!$(&B%$&'!)�%) "� 8-.%" �-'!$(&B%$&'!)�,�" � 5'(�#(&'(�) (2&- �� 8- ))�B ! 5&$)��!"� &(( �%.�(�#�/, !$)*��$��%! ����������� $6 ��&$/�)�#('#'($&'!��!"�-6�!� �5(',�&$)�#('#'($&'!�, �)%( "��)�'5��%! ����������4 ( ��)�5'..'4)0��
#�- ����������-����
������.$�������-���� $����
4 ��� �����������V���X0��/012
&�� ���6�� ��9����� ��� ������ ���
V���X0��/013���������>.'-�.? ����;��7�H���������������� �7���9;H������������ �������<<H������������� �*�<:I �*��:I
"�������������������������%��� �X1��/012
�'(� $6 � / �(� !" "� � - ,B (� ���� ������ $6 � �&$/� ( -'�!&J "� # !)&'!� 8# !) � '5� H�;7�<;�� 5'(�����*��$�� - ,B (�����������$6 ��&$/�( #'($ "�" 5 (( "�'%$5.'4)�'5�( )'%(- )��!"�" 5 (( "�&!5.'4)�'5�( )'%(- )�( .�$ "�$'�# !)&'!)�5(',�$6 �5'..'4&!��)'%(- )0�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
79�
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��
#�- �����������-����
������.$�������-����
#�- �����������-����
������.$�������-����
�&55 ( !- �B $4 !� 8# -$ "��!"��-$%�.� 8# (& !- ��<�:H��������������������� ���H����������������������� �����<H������������������� :�<��H��������������������
� $�"&55 ( !- �B $4 !�#('D -$ "��!"��-$%�.� �(!&!�)�'!�# !)&'!�#.�!�&!2 )$, !$) �9�7�9��������������������� 9�;�9���������������������� 3��������������������������� 3��������������������������
�6�!� )�&!�#('#'($&'!�$ �)6�( �7��99�������������������� ���9�9�������������������� 3��������������������������� 3��������������������������
�6�!� )�&!��))%,#$&'!) 7;������������������������� ���9:��������������������� 9���:����������������������� ���;7����������������������
�&$/�-'!$(&B%$&'!)�)%B) =% !$�$'�, �)%( , !$�"�$ :��:����������������������� ���9<7�������������������� 3��������������������������� 3��������������������������
���'$�. �;;�:��H����������������� :���:9H������������������ �:��79H������������������� ����9H��������������������
%� �� �����M��������� �� %� ��&����M��������� ��
�6 �H;7����� ( #'($ "��)�" 5 (( "�'%$5.'4)�'5� ( )'%(- )� ( .�$ "� $'�# !)&'!)� ( )%.$&!�� 5(',� $6 ��&$/�-'!$(&B%$&'!)� )%B) =% !$� $'� $6 � , �)%( , !$� "�$ � 4&..� B � ( -'�!&J "� �)� �� ( "%-$&'!� '5� $6 � ! $�# !)&'!�.&�B&.&$/�5'(�$6 �/ �(� !" "�� - ,B (��������<*��$6 (��,'%!$)�( #'($ "��)�" 5 (( "�'%$5.'4)�'5� ( )'%(- )��!"�" 5 (( "� &!5.'4)�'5� ( )'%(- )� ( .�$ "� $'�# !)&'!)�4&..� B � ( -'�!&J "��)� &!-( �) )�>" -( �) )?�$'�# !)&'!� 8# !) ��)�5'..'4)0�
)� �����%��� �X1Q#�- �������
����-����������.$���
����-�������< �<��79H������������������������ �<�<;�H�������������������������� :����9�������������������������� ���<;<���������������������������� �����<�������������������������� ��<�9������������������������������ �����<�������������������������� ����9������������������������������ ��:9<���������������������������� 9<9�����������������������������
����<9;H��������������������� 7��9�:H����������������������
����%� �� �����M��6&����M�9�������� ��
Actuarial assumptions. 6 � $'$�.� # !)&'!� .&�B&.&$/� 5'(� ����� &!� $6 � � - ,B (� ���� ����� �-$%�(&�.�2�.%�$&'!�4�)�" $ (,&! "�%)&!��$6 �5'..'4&!���-$%�(&�.��))%,#$&'!)���##.& "�$'��..�# (&'")�&!-.%" "�&!�$6 �, �)%( , !$0�
�(&- �&!5.�$&'! �� �&!5.�$&'!�.�(/�&!-( �) )��&!-.%"&!��4�� �&!-( �) )�'!�3$ (,�(�$ �'5�( $%(!��! $�'5�&!2 )$, !$���� 8# !) ���!"�&!-.%"&!��#(&- �&!5.�$&'!
�*;9I�*��I�*9�I�$'���*��I��&!-.%"&!��&!5.�$&'!
;*;9
��'($�.&$/� (�$ )�4 ( �B�) "�'!� $6 ���3���7��'($�.&$/��B. ��4&$6��� �) $� 5'(4�(")��)�4 ..� �)�'$6 (��"D%)$, !$)�B�) "�'!�"&55 ( !$�, ,B ()6&#��('%#)*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7:�
�&+J� $*!��&"� ���$& "�6� "$&"'!%9� 6 ��-$%�(&�.��))%,#$&'!)�%) "�&!�$6 �� - ,B (��������;��2�.%�$&'!�4 ( �B�) "�'!�$6 �( )%.$)�'5��!��-$%�(&�.� 8# (& !- � )$%"/� -'!"%-$ "� 5'(� $6 � $6( 3/ �(� # (&'"� !" "� � - ,B (� ���� ���9*� 6 � 8# (& !- �)$%"/�&)�"�$ "��'2 ,B (��������:*��6 � �-$%�(&�.� �))%,#$&'!)� -6�!� )� �"'#$ "� B/� $6 � # !)&'!� #.�!� 5'(� �..� �('%#)� B�) "� '!� $6 � 8# (& !- �)$%"/0��
���(&- �&!5.�$&'!��))%,#$&'!�.'4 ( "�5(',��*���# (- !$�$'��*;9�# (- !$����!2 )$, !$�( $%(!��))%,#$&'!�4�)�.'4 ( "�5(',��*���# (- !$�$'�;*;9�# (- !$���1 ! (�.�4�� ��('4$6��))%,#$&'!�4�)�.'4 ( "�5(',�7*���$'��*9�# (- !$�����/('..��('4$6��))%,#$&'!�4�)�.'4 ( "�5(',�7*���# (- !$�$'��*���# (- !$�
�6 �.'!�3$ (,� 8# -$ "�(�$ �'5�( $%(!�'!�# !)&'!�#.�!�&!2 )$, !$)�4�)�" $ (,&! "�%)&!����B%&."&!�3B.'-@�, $6'"�&!�46&-6�B )$3 )$&,�$ �(�!� )�'5� 8# -$ "�5%$%( �( �.�(�$ )�'5�( $%(!�> 8# -$ "�( $%(!)��! $� '5� # !)&'!� #.�!� &!2 )$, !$� 8# !) � �!"� &!5.�$&'!?� �( � " 2 .'# "� 5'(� �-6� ,�D'(� �)) $� -.�))*�6 ) � (�!� )� �( � -',B&! "� $'� #('"%- � $6 � .'!�3$ (,� 8# -$ "� (�$ � '5� ( $%(!� B/� 4 &�6$&!�� $6 � 8# -$ "�5%$%( �( �.�(�$ )�'5�( $%(!�B/�$6 �$�(� $��)) $��..'-�$&'!�# (- !$�� ��!"�B/��""&!�� 8# -$ "�&!5.�$&'!*�� )$� )$&,�$ )�'5��(&$6, $&-� ( �.� (�$ )�'5� ( $%(!� 5'(� �-6�,�D'(��)) $�-.�))� &!-.%" "� &!� $6 �# !)&'!�#.�!�)�$�(� $��)) $��..'-�$&'!)��)�'5��%! �����������( �)%,,�(&J "�&!�$6 �5'..'4&!��$�B. 0��
����������$� ���
����������(���.$ ��!5������������������� �
1.'B�.� =%&$/ ���7;I ���:*�9I�&8 "�&!-', ������ �*�9�& ."�"(&2 ! ��� :*99� �.�( $%(! �� �*;�� �.� )$�$ �� 9*�9�.$ (!�$&2 ) ��� <*�96'($3$ (,�&!2 )$, !$) ��� >�*�9?����'$�. �����I
Discount rate. 6 �"&)-'%!$� (�$ �%) "�B/������ $'�, �)%( � $6 � $'$�.� # !)&'!� .&�B&.&$/�4�)�;*;9I*�6 �#('D -$&'!�'5�-�)6�5.'4)�%) "�$'�" $ (,&! �$6 �"&)-'%!$�(�$ ��))%, "�$6�$�-'!$(&B%$&'!)�5(',�#.�!�, ,B ()� 4&..� B � ,�" � �$� $6 � -'!$(�-$%�../� ( =%&( "� (�$ *� 6 � .'-�.� ,#.'/ ()� "'� !'$� ! - ))�(&./�-'!$(&B%$ � $6 � 5%..� �-$%�(&�.� " $ (,&! "� (�$ *� ��) "� '!� . �&).�$&'!� #�)) "� &!� �<<��� $6 � ,#.'/ (�-'!$(&B%$&'!�(�$ )�- ($&5& "�B/�$6 ��������'�("�'5�(%)$ )�5'(�$6&)��('%#�,�/�!'$�&!-( �) �B/�,'( �$6�!�$6 �)$�$%$'(/�-�#*�6 �)$�$%$'(/�-�#�5'(�$6 �)$�$ �5&)-�.�/ �(������4�)��*�I*�6 �.'-�.� ,#.'/ ()��( � -%(( !$./� -'!$(&B%$&!�� $6 � 5%..� �-$%�(&�.� -'!$(&B%$&'!� (�$ *� 6 � 8# -$ "� ,#.'/ (� �-$%�(&�.�-'!$(&B%$&'!� (�$ � 4�)� ,'" . "� 5'(� 5%$%( � / �()�� �))%,&!�� �..� �-$%�(&�.� �))%,#$&'!)� �( � , $� &!� $6 �5%$%( �/ �()*���) "�'!�$6') ��))%,#$&'!)��$6 �# !)&'!�#.�!�)�5&"%-&�(/�! $�#')&$&'!�4�)�#('D -$ "�$'�B ��2�&.�B. � $'�,�@ ��..�#('D -$ "� 5%$%( �B ! 5&$�#�/, !$)�'5�-%(( !$�#.�!�, ,B ()*�6 ( 5'( �� $6 �.'!�3$ (,� 8# -$ "�(�$ �'5�( $%(!�'!�# !)&'!�#.�!�&!2 )$, !$)�4�)��##.& "�$'��..�# (&'")�'5�#('D -$ "�B ! 5&$�#�/, !$)�$'�" $ (,&! �$6 �$'$�.�# !)&'!�.&�B&.&$/*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (������������
7;�
&+J� $*!��&"� ���$& "�6� "$&"'!%9��Sensitivity of the City’s proportionate share of the collective net pension liability to changes in the discount rate. 6 � 5'..'4&!�� #( ) !$)� $6 � �&$/�)� #('#'($&'!�$ � )6�( � '5� $6 � -'.. -$&2 � ! $�# !)&'!� .&�B&.&$/� -�.-%.�$ "� %)&!�� $6 � "&)-'%!$� (�$ � '5� ;*;9I�� �)� 4 ..� �)� 46�$� $6 � �&$/�)�#('#'($&'!�$ �)6�( �'5� $6 �-'.. -$&2 �! $�# !)&'!� .&�B&.&$/�4'%."�B � &5� &$�4 ( �-�.-%.�$ "�%)&!����"&)-'%!$� (�$ � $6�$� &)� �3# (- !$�� 3#'&!$� .'4 (� >:*;9I?� '(� �3# (- !$�� 3#'&!$� 6&�6 (� >�*;9I?�$6�!�$6 �-%(( !$�(�$ 0��
1Y�%� ���6ZJ3[Y9
�� ���%������������
63J3[Y91Y�&�� ���
62J3[Y9
�&$/A)������#('#'($&'!�$ �)6�( �'5�$6 �! $�# !)&'!�.&�B&.&$/ �H�������<9���7�� �H�����������<<� �H���������:��:<�
Pension plan fiduciary net position. � $�&. "� &!5'(,�$&'!��B'%$� $6 �# !)&'!�#.�!�)�5&"%-&�(/�! $�#')&$&'!�&)��2�&.�B. �&!�$6 �) #�(�$ ./�&))% "������5&!�!-&�.�( #'($*��%��������� ��������4����\[3�������6 ��&$/� )$�B.&)6 "���" 5&! "�-'!$(&B%$&'!�#.�!�5'(�- ($�&!� ,#.'/ )*�6 �#.�!�&)��",&!&)$ ( "�B/� $6 � ����� � $&( , !$� �'(#'(�$&'!�� �!"� �!/� -6�!� )� $'� $6 � #.�!�)� #('2&)&'!)� '(� $6 �-'!$(&B%$&'!�( =%&( , !$)��( �" $ (,&! "�B/� $6 ��'2 (!&!��B'"/�'5� $6 ��&$/*� �6 �-'!$(&B%$&'!�# (- !$�� �&)�;I��!"�$6 ( �&)�!'�,�$-6*�6 �-'!$(&B%$&'!)�B/�$6 ��&$/�5'(������4 ( �H;�;��*���J� �� �4����!����������������� �����!" (� $6 ��'!)'.&"�$ "��,!&B%)��%"� $�� -'!-&.&�$&'!��-$� >�����?�� $6 ��&$/�,�@ )�6 �.$6�-�( � B ! 5&$)� �2�&.�B. � $'� .&�&B. � 5'(, (� ,#.'/ )� �!"� .&�&B. � " # !" !$)*� � ($�&!�( =%&( , !$)��( �'%$.&! "�B/�$6 �5 " (�.��'2 (!, !$�5'(�$6&)�-'2 (�� *�6 �#( ,&%,�&)�#�&"�&!�5%..�B/�$6 �&!)%( "*�6 ( �&)�!'�-')$�$'�$6 ��&$/�%!" (�$6&)�#('�(�,*���4!���%��������%���������� 4!�4�����Plan DescriptionJ�6 ��&$/�#�($&-&#�$ )�&!��!��� !$�,%.$&#. 3 ,#.'/ (�" 5&! "�B ! 5&$�'$6 (�#')$3 ,#.'/, !$� B ! 5&$� >����?� #.�!� 46&-6� &)� �",&!&)$ ( "� B/� ����*� 6 � �.�!� #('2&" )� .'!�3$ (,�"&)�B&.&$/�B ! 5&$)��!"�.&5 �&!)%(�!- �B ! 5&$�5'(�"&)�B. "�, ,B ()�$'������, ,B ()���)�#('2&" "�B/��**�*�;73�7<�;*�6 �#.�!� &)��",&!&)$ ( "�$6('%�6���$(%)$�6 ."�B/������$6�$� &)�5%!" "�$'�#�/��!!%�.�B ! 5&$�#�/, !$)*�� -�%) �$6 �$(%)$�)��)) $)��( �%) "�$'�#�/� ,#.'/ �B ! 5&$)� '$6 (� $6�!� ������ !'� �)) $)� �( � �--%,%.�$ "� &!� �� $(%)$� $6�$� , $)� $6 � -(&$ (&�� &!�#�(��(�#6�7�'5�1���$�$ , !$�;9*�6 ( �&)�!'�)$�!"3�.'! �5&!�!-&�.�( #'($�5'(�$6 �#.�!*�
�Benefits provided:
� ! 5&$)��( � )$�B.&)6 "�B/�)$�$%$ ��!"�,�/�B ��, !" "�B/�$6 �������'�("�'5�(%)$ )*�6 ��.�!�#('2&" )�.'!�3$ (,�"&)�B&.&$/�B ! 5&$)� =%�.�$'�:�I�>#(&'(�$'���!%�(/�������:��::����I?�'5��!!%�.�-',# !)�$&'!��'55) $�B/�'$6 (�B ! 5&$)*�� ,B ()�( - &2&!�� .'!�3$ (,�"&)�B&.&$/�B ! 5&$)��.)'�( - &2 �-( "&$�$'4�(")�$6 &(������( $&( , !$�B ! 5&$)��!"�6�2 �$6 &(��('%#�.&5 �&!)%(�!- �-'2 (�� �-'!$&!% "�%!" (�$6 �4�&2 (�#( ,&%,�#('2&)&'!*�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
%��� �X1��/012��
�
7��
&+J� $*!��&"� ���$& "�6� "$&"'!%9��Long-term disability benefit:� �'!$6./� B ! 5&$� &)� :�I� '5� $6 � , ,B (�)� ,'!$6./� -',# !)�$&'!��4&$6���,&!&,%,�'5�H�����!"�,�8&,%,�'5�H9����*�6 �,'!$6./�B ! 5&$�&)�)%BD -$�$'�( "%-$&'!�B/�" "%-$&B. � )'%(- )� '5� &!-', �� 46&-6� &!-.%" � '-&�.� -%(&$/� #(&,�(/� "&)�B&.&$/� '(� ( $&( , !$�B ! 5&$)�� 4'(@ (�)� -',# !)�$&'!� B ! 5&$)�� '$6 (� "&)�B&.&$/� B ! 5&$)� 5(',� �!/� '$6 (� )'%(- � B/�( �)'!� '5� ,#.'/, !$�� �!"� �(!&!�)� 5(',� �!/� 5'(,� '5� ,#.'/, !$*� �5� $6 � "&)�B&.&$/� B �&!)�B 5'( ��� �:���B ! 5&$)��( �#�/�B. �46&. �"&)�B&.&$/�-'!$&!% )�%!$&.�$6 �, ,B (�)�:9$6�B&($6"�/�'(�( $&( , !$�"�$ ��46&-6 2 (�'--%()�5&()$*��5�$6 �"&)�B&.&$/�'--%()��5$ (��� �:���B ! 5&$)��( �#�/�B. �46&. �"&)�B&.&$/�-'!$&!% )��5'(���# (&'"�'5�9�/ �()�'(�%!$&.�$6 �, ,B (�( $&( )��46&-6 2 (�'--%()�5&()$*� � ! 5&$� #�/, !$)� 5'(� "&)�B&.&$& )� -�%) "� '(� -'!$(&B%$ "� $'� B/� )%B)$�!- � �B%) � '(� !'!3B&'.'�&-�../� B�) "� , !$�.� &..! )) )� �( � .&,&$ "� $'� $6 � $ (,� '5� $6 � "&)�B&.&$/� '(� �7� ,'!$6)� # (�.&5 $&, �� 46&-6 2 (� &)� . ))*� 6 ( � �( � !'� �%$',�$&-� -')$3'53.&2&!�� &!-( �) � #('2&)&'!)*� �����6�)�$6 ��%$6'(&$/�$'�&,#. , !$��!��"�6'-�-')$3'5�.&2&!��&!-( �) *��Group life waiver of premium benefit:��#'!�$6 �" �$6�'5��!� ,#.'/ �46'�&)�( - &2&!��,'!$6./�"&)�B&.&$/� B ! 5&$)�� $6 � #.�!� 4&..� #�/� �� .%,#3)%,� B ! 5&$� $'� .&�&B. � B ! 5&-&�(& )*� 6 � B ! 5&$��,'%!$�4&..�B ��9�I�'5�$6 ��( �$ (�'5�$6 �, ,B (�)��!!%�.�(�$ �'5�-',# !)�$&'!��$�$6 �$&, �'5�"&)�B&.&$/�'(�$6 �, ,B (�)�#( 2&'%)����,'!$6)�'5�-',# !)�$&'!��$�$6 �$&, �'5�$6 �.�)$�"�$ �'!�#�/('..*� �5� $6 � , ,B (� 6�)� B !� "&)�B. "� 5'(� 9� '(� ,'( � / �()�� $6 � �!!%�.� -',# !)�$&'!� '(�)�.�(/� (�$ � �$� $6 � $&, � '5� " �$6� 4&..� B � &!" 8 "� %)&!�� $6 � -'!)%, (� #(&- � B 5'( � $6 � .&5 �&!)%(�!- �B ! 5&$� &)� -',#%$ "*�6 � &!" 8&!�� &)�B�) "�'!� $6 �-'!)%, (�#(&- � &!" 8�� . ))�'! �# (- !$�� �#'&!$��$'�-',#%$ �$6 �" �$6�B ! 5&$*��5��!�, ,B (�&)�"&��!') "��)�$ (,&!�../�&..�4&$6���.&5 � 8# -$�!-/�'5����,'!$6)�'(�. ))��$6 �, ,B (�,�/�B � .&�&B. �$'�( - &2 �%#�$'����I�'5�$6 �" �$6� B ! 5&$� (�$6 (� $6�!� 6�2&!�� $6 � B ! 5&$� #�&"� $'� $6 � B ! 5&-&�(/*� �5� �� , ,B (� ( $&( )� '(�"&)�B&.&$/� B ! 5&$)� !"�� $6 � , ,B (� ,�/� -'!2 ($� $6 � �('%#� .&5 � &!)%(�!- � -'2 (�� � $'� �!�&!"&2&"%�.�.&5 �&!)%(�!- �#'.&-/*��Employees covered by benefit terms. �$� � - ,B (� ���� ������ $6 � 5'..'4&!�� ,#.'/ )� 4 ( �-'2 ( "�B/�$6 �B ! 5&$�$ (,)0���
�!�-$&2 � ,#.'/ )�'(�B ! 5&-&�(& )�-%(( !$./�( - &2&!��B ! 5&$�#�/, !$) ��-$&2 � ,#.'/ ) �7
�:�
'$�.�������&�B&.&$/� 6 � �&$/�)� $'$�.� ����� .&�B&.&$/� '5� H���;;<� 4�)� , �)%( "� �)� '5� �%! � ���� ������ �!"� 4�)�" $ (,&! "� B/� �!� �-$%�(&�.� 2�.%�$&'!� �)� '5� � - ,B (� ���� ���;�� 46&-6� 4�)� ('.. "� 5'(4�("� $'��%! ���������*��Actuarial assumptions and other inputs. 6 � $'$�.� ����� .&�B&.&$/� &!� $6 � � - ,B (� ���� ���;��-$%�(&�.�2�.%�$&'!�4�)�" $ (,&! "�%)&!��$6 �5'..'4&!���-$%�(&�.��))%,#$&'!)��!"�'$6 (� &!#%$)���##.& "�$'��..�# (&'"�&!-.%" "�&!�$6 �, �)%( , !$��%!. ))�'$6 (4&) �!'$ "0����(&- �&!5.�$&'!��/('..��('4$6�.�(/�&!-( �) )��&!-.%"&!��&!5.�$&'!�&)-'%!$���$ �*�;I� �.$6-�( �-')$�$( !"�(�$ )� $&( �)6�( �'5�B ! 5&$�-')$
�*;9I
�*9��$'���I��&!-.%"&!��#(&- �&!5.�$&'!�*��I
�'$��##.&-�B. �5'(�$6 �-'2 (�� �&!�$6&)�#.�!�'$��##.&-�B. �5'(�$6 �-'2 (�� �&!�$6&)�#.�! �
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
7<�
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��6 �"&)-'%!$�(�$ �4�)�B�) "�'!�$6 ��'!"��%/ (�1 ! (�.��B.&��$&'!���3�'!"��%!&-&#�.��!" 8*���'($�.&$/� (�$ )� 4 ( � B�) "� '!� $6 � ��3���7� �'($�.&$/� $�B. )�� �)� �##('#(&�$ �� 4&$6� �"D%)$, !$� 5'(�,'($�.&$/�&,#('2 , !$)�B�) "�'!�-�. ���3����*��6 � �-$%�(&�.� �))%,#$&'!)� %) "� &!� $6 � �%! � ���� ����� 2�.%�$&'!� 4 ( � B�) "� '!� �!� �-$%�(&�.� 8# (& !- �)$%"/� 5'(� $6 �# (&'"��%./�������7�+��%! ��������:*��$6 (�" ,'�(�#6&-��))%,#$&'!)��( �) $� $'� B � -'!)&)$ !$� 4&$6� $6 � �-$%�(&�.� �))%,#$&'!)� ( 5. -$ "� &!� $6 � � - ,B (� ���� ���;� �����# !)&'!�2�.%�$&'!*���6�!� )�&!�$6 �'$�.�������&�B&.&$/���
$����� 4!(��������
������������������ .���1/]X1]/013 ��<�;<:H������������ ������ Q
(2&- �-')$ :��������������!$ ( )$ ��:�;����������55 -$�'5� -'!',&-�" ,'�(�#6&-���&!)�'(�.')) ) >9���7?���������55 -$�'5��))%,#$&'!)�-6�!� )�'(�&!#%$) >;;�?������������ ! 5&$�#�/, !$) >�<��;9?������
"�������� >�:���;?������������������������ .���1/]X1]/012 ���;;<H����
�Changes of assumptions. �6�!� )�'5��))%,#$&'!)��!"�'$6 (�&!#%$)�( 5. -$�$6 � 55 -$)�'5�-6�!� )�&!�$6 �"&)-'%!$�(�$ � �-6�# (&'"*�6 �"&)-'%!$�(�$ �&!-( �) "�5(',��*9�I�'!��%! ��������;�$'��*�;I�'!��%! ���������*� Sensitivity of the total OPEB liability to changes in the discount rate. 6 �5'..'4&!��#( ) !$)�$6 �$'$�.������.&�B&.&$/�'5�$6 ��&$/���)�4 ..��)�46�$�$6 ��&$/�)�$'$�.������.&�B&.&$/�4'%."�B �&5�&$�4 ( �-�.-%.�$ "�%)&!����"&)-'%!$�(�$ � $6�$� &)��3# (- !$�� 3#'&!$� .'4 (�>�*�;I?�'(��3# (- !$�� 3#'&!$�6&�6 (�>7*�;I?�$6�!�$6 �-%(( !$�"&)-'%!$�(�$ 0��
1Y�%� ���6/J23Y9
�� ���%������������
6XJ23Y91Y�&�� ���
6\J23Y9'$�.������.&�B&.&$/ H�����������:�7�9� H������������;;<� �H�������������;��
�Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. 6 � 6 �.$6-�( �$( !"�(�$ )�"'�!'$��55 -$�$6 �.&�B&.&$& )�( .�$ "�$'�$6 �.'!�3$ (,�"&)�B&.&$/�B ! 5&$)�)#'!)'( "�B/�����*�6 ( 5'( ��$6 ( �&)�!'�) !)&$&2&$/�$'���-6�!� �&!�6 �.$6-�( �$( !"�(�$ )*��������8# !) ��!"�� 5 (( "��%$5.'4)�'5�� )'%(- )��!"�� 5 (( "��!5.'4)�'5�� )'%(- )�� .�$ "�$'��������'(� $6 � / �(� !" "� � - ,B (� ���� ������ $6 � �&$/� ( -'�!&J "� ����� 8# !) � '5� H<����*� �$�� - ,B (����� ������ $6 � �&$/� ( #'($ "� " 5 (( "� '%$5.'4)� '5� ( )'%(- )� �!"� " 5 (( "� &!5.'4)� '5�( )'%(- )�( .�$ "�$'������5(',�$6 �5'..'4&!��)'%(- )0�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
9��
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��
%� �� �����M��������� ��
%� ��&����M��������� ��
�&55 ( !- �B $4 !� 8# -$ "��!"��-$%�.���� 8# (& !- 3H������������������������� 7�;9;H��������������������
�6�!� )�&!��))%,#$&'!) 3��������������������������� ���������������������������
� ! 5&$�#�/, !$)�)%B) =% !$�$'�$6 �, �)%( , !$�"�$ �7�<����������������������� 3��������������������������
���'$�. �7�<��H������������������� ;��:9H��������������������
�6 �H�7�<���B ! 5&$�#�/, !$)�,�" �)%B) =% !$� $'� $6 �, �)%( , !$�"�$ �4&..�B � ( -'�!&J "��)���( "%-$&'!�&!�$6 �$'$�.������.&�B&.&$/�5'(�$6 �/ �(� !" "�� - ,B (���������*�6 �( ,�&!&!���,'%!$)�( #'($ "��)�" 5 (( "� &!5.'4)�'5� ( )'%(- )� ( .�$ "� $'������4&..�B � ( -'�!&J "� &!������ 8# !) ��)�5'..'4)0��
%� ��6&����M�9�������� ��
)� �����%��� �X1Q���< >��;?H�������������������������������� >��;?���������������������������������� >��;?���������������������������������� >��;?���������������������������������� >��;?������������������������������
6 ( �5$ ( >�����?���������������������������>;��:9?H�������������������������
�Prior period adjustment. 6 �&,#. , !$�$&'!�'5�1���;9�( )%.$ "�&!���H��<�;<:�&!-( �) �$'�$6 �$'$�.������.&�B&.&$/��H������&!-( �) �$'�$6 �" 5 (( "�&!5.'4)�'5�( )'%(- )��H�7�<���&!-( �) �$'�$6 �" 5 (( "�'%$5.'4)�'5�( )'%(- )��!"���H<:�:;��" -( �) �$'�! $�#')&$&'!��)�'5���!%�(/���������5'(�$6 ������� �$6�C��&)�B&.&$/�#.�!*��#J� ������ ��������6 � �&$/� B%/)� �..� '5� &$)� 4�)$ 4�$ (� ) (2&- )� 5(',� $6 � �6&)6'.,� �( @� �$&.&$/� �%$6'(&$/*� �..� 4�$ (�#%(-6�) )��( �,�" �5(',�$6 ��6&)6'.,��( @��$&.&$/��%$6'(&$/��!"�$6 ��&$/�'5� &-6&$�*��*J� $�5�����������6 ��&$/�5'..'4)�1���$�$ , !$��'*�;;�Tax Abatement Disclosures��46&-6� !6�!- )�-',#�(�B&.&$/�'5� 5&!�!-&�.� )$�$ , !$)� �,'!�� �'2 (!, !$)� B/� )$�B.&)6&!�� "&)-.')%( )� �B'%$� $6 � !�$%( � �!"�,��!&$%" � '5� $�8� �B�$ , !$)� !�B.&!�� %) ()� $'� %!" ()$�!"� �?� 6'4� $�8� �B�$ , !$)� �55 -$� ���'2 (!, !$�)� 5%$%( � �B&.&$/� $'� (�&) � ( )'%(- )� �!"� , $� &$)� 5&!�!-&�.� 'B.&��$&'!)� �!"� �?� $6 � &,#�-$�$6') ��B�$ , !$)�6�2 �'!����'2 (!, !$�)�5&!�!-&�.�#')&$&'!��!"� -'!',&-�-'!"&$&'!*��1��� ;;� " 5&! )� �� $�8� �B�$ , !$� �)� �� ( "%-$&'!� &!� $�8� ( 2 !% )� $6�$� ( )%.$)� 5(',� �!� ��( , !$�B $4 !�'! �'(�,'( ��'2 (!, !$)��!"��!�&!"&2&"%�.�'(� !$&$/�&!�46&-6�>�?�'! �'(�,'( ��'2 (!, !$)�#(',&) � $'� 5'(�'� $�8� ( 2 !% )� $'� 46&-6� $6 /� �( � '$6 (4&) � !$&$. "� �!"� >B?� $6 � &!"&2&"%�.� '(� !$&$/�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
9��
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��#(',&) )� $'� $�@ � �� )# -&5&-� �-$&'!� �5$ (� $6 � ��( , !$� 6�)� B !� !$ ( "� &!$'� $6�$� -'!$(&B%$ )� $'� -'!',&-�" 2 .'#, !$�'(�'$6 (4&) �B ! 5&$)�$6 �-&$&J !)�'5�$6') ��'2 (!, !$)*��6 � �&$/� !$ ()� &!$'� #('# ($/� $�8� �B�$ , !$� ��( , !$)� 4&$6� .'-�.� B%)&! )) )� %!" (� $6 � )$�$ ��-'!',&-� � 2 .'#, !$� �##'($%!&$/� �-$� '5� ���:*� �!" (� $6 � �-$�� .'-�.&$& )� ,�/� �(�!$� #('# ($/� $�8��B�$ , !$)�'5���,�8&,%,�'5�$ !�/ �()��$�%#�$'����I�'5���B%)&! ))��#('# ($/�$�8�B&..�5'(�$6 �#%(#') �'5��$$(�-$&!��'(�( $�&!&!��B%)&! )) )�4&$6&!�$6 &(�D%(&)"&-$&'!)*�6 ��B�$ , !$)�,�/�B ��(�!$ "�$'��!/�B%)&! ))�.'-�$ "�4&$6&!�'(�#(',&)&!��$'�( .'-�$ �$'�$6 ��&$/*� �5%($6 (� &!5'(,�$&'!�( ��("&!������)��&!-.%"&!��$6 ��,'%!$�'%$)$�!"&!���$�� - ,B (������������$��''$!'$ ����*�*�+��'!"%&$�� B$*��6 � �'%!$/� �##(�&) (� " $ (,&! )� $6 � 5%..� 2�.% � '5� $6 � #('# ($/�� !'$&!�� $6 � 2�.% � $6�$� 6�)� B !� 8 ,#$ "� $6('%�6� $6 � #('�(�,*� 6 � �'%!$/� ( �)%( (� -',#%$ )� $6 � $�8 )� "% � '!� $6 � �##(�&) "�2�.% �'!./�'!�$6 �$�8�B. �#'($&'!�'5�$6 �#('# ($/*��'(�$6 �5&)-�.�/ �(� !" "�� - ,B (������������..�'5�$6 �B%&."&!�)��))'-&�$ "�4&$6�$�8��B�$ , !$)�4 ( �)$&..�%!" (�-'!)$(%-$&'!F�$6 ( 5'( ��$6 ��&$/��B�$ "�#('# ($/� $�8 )� $'$�.&!�� H�;7�<9�� %!" (� $6&)� #('�(�,*� 6 ) � ��( , !$)� �.)'� &!-.%" � # (5'(,�!- �, �)%( , !$)�$6�$�$6 �B%)&! ))�,%)$��-6& 2 *��5�$6 �# (5'(,�!- �, �)%( , !$)��( �!'$�, $��$6 �$�8��B�$ , !$�4&..�B �( ,'2 "��!"�$6 �B%)&! ))�4&..�6�2 �$'�#�/�$6 &(�5%..�#('# ($/�$�8 )*��*J� 4������#�- ������������������������ ����6 � 55 -$�'!�$6 ��&$/�)�5&!�!-&�.�)$�$ , !$)�'5�$6 �5'..'4&!��)$�$ , !$)�&))% "��B%$�!'$�/ $��"'#$ "��6�)�!'$�/ $�B !�" $ (,&! "*��1���$�$ , !$��'*�����Certain Asset Retirement Obligations, �""( )) )��--'%!$&!���!"� 5&!�!-&�.�( #'($&!�� 5'(� - ($�&!� �)) $� ( $&( , !$� 'B.&��$&'!)� >���)?*� �!� ���� &)� �� . ��../� !5'(- �B. � .&�B&.&$/��))'-&�$ "�4&$6�$6 �( $&( , !$�'5���$�!�&B. �-�#&$�.��)) $*����'2 (!, !$�$6�$�6�)�. ��.�'B.&��$&'!)�$'�# (5'(,� 5%$%( � �)) $� ( $&( , !$� �-$&2&$& )� ( .�$ "� $'� &$)� $�!�&B. � -�#&$�.� �)) $)� )6'%."� ( -'�!&J � ��.&�B&.&$/��!"���-'(( )#'!"&!��" 5 (( "�'%$5.'4�'5�( )'%(- )�5'(����)�46 !�$6 �.&�B&.&$/�&)�&!-%(( "��!"�( �)'!�B. � )$&,�B. *� 6&)� )$�$ , !$� �.)'� ( =%&( )� "&)-.')%( � '5� &!5'(,�$&'!� �B'%$� $6 � !�$%( � '5� ���'2 (!, !$�)����)��$6 �, $6'")��!"��))%,#$&'!)�%) "�5'(� )$&,�$&!��$6 �.&�B&.&$/��!"�$6 � )$&,�$ "�( ,�&!&!�� %) 5%.� .&5 � '5� $6 � �))'-&�$ "� $�!�&B. � -�#&$�.� �)) $*� 6 � #('2&)&'!)� '5� $6&)� )$�$ , !$� �( � 55 -$&2 �5'(�5&!�!-&�.�)$�$ , !$)�5'(�$6 ��&$/�)�5&)-�.�/ �(� !"&!��� - ,B (��������<*��1��� $�$ , !$� �'*� �7�� Fiduciary Activities, &,#('2 )� �%&"�!- � ( ��("&!�� $6 � &" !$&5&-�$&'!� '5�5&"%-&�(/��-$&2&$& )�5'(��--'%!$&!���!"�5&!�!-&�.�( #'($&!��#%(#') )��!"�6'4�$6') ��-$&2&$& )�)6'%."�B �( #'($ "*�6&)�)$�$ , !$��.)'�#('2&" )� 5'(� ( -'�!&$&'!�'5��� .&�B&.&$/� $'� $6 �B ! 5&-&�(& )� &!��� 5&"%-&�(/�5%!"�46 !�" ,�!")�5'(�( )'%(- )�6�)�B !�,�" �'(�46 !�!'�5%($6 (��-$&'!���##('2�.�'(�-'!"&$&'!�&)�( =%&( "�$'�B �$�@ !�'(�, $�B/�$6 �B ! 5&-&�(/�$'�( . �) �$6 ��)) $)*�6 �#('2&)&'!)�'5�$6&)�)$�$ , !$��( � 55 -$&2 �5'(�5&!�!-&�.�)$�$ , !$)�5'(�$6 ��&$/�)�5&)-�.�/ �(� !"&!��� - ,B (��������<*��1��� $�$ , !$� �'*� �;�� Leases, &,#('2 )� �--'%!$&!�� �!"� 5&!�!-&�.� ( #'($&!�� 5'(� . �) )� B/��'2 (!, !$)*�6&)�)$�$ , !$�( =%&( )�( -'�!&$&'!�'5�- ($�&!�. �) ��)) $)��!"�.&�B&.&$& )�5'(�. �) )�$6�$�#( 2&'%)./�4 ( �-.�))&5& "��)�'# (�$&!��. �) )��!"�( -'�!&J "��)�&!5.'4)�'5�( )'%(- )�'(�'%$5.'4)�'5�( )'%(- � B�) "� '!� $6 � #�/, !$� #('2&)&'!)� '5� $6 � -'!$(�-$*� �$� )$�B.&)6 )� �� )&!�. � ,'" .� 5'(� . �) ��--'%!$&!��B�) "�'!�5'%!"�$&'!�.�#(&!-&#. �$6�$�. �) )��( �5&!�!-&!�)�'5�$6 �(&�6$�$'�%) ��!�%!" (./&!���)) $*��!" (�$6&)�)$�$ , !$����. )) �&)�( =%&( "�$'�( -'�!&J ���. �) �.&�B&.&$/��!"��!�&!$�!�&B. �(&�6$3$'3%) �. �) ��)) $���!"���. ))'(�&)�( =%&( "�$'�( -'�!&J ���. �) �( - &2�B. ��!"���" 5 (( "�&!5.'4�'5�
������������ ����������
�'$ )�$'�$6 ��&!�!-&�.�$�$ , !$)��
� - ,B (����������
9��
�&+J� $*!��&"� ���$& "�6� "$&"'!%9��( )'%(- )�� $6 ( B/� !6�!-&!�� $6 � ( . 2�!- � �!"� -'!)&)$ !-/� '5� &!5'(,�$&'!� �B'%$� �'2 (!, !$)��. �)&!���-$&2&$& )*��('2&)&'!)�'5�$6&)�)$�$ , !$��( � 55 -$&2 �5'(�5&!�!-&�.�)$�$ , !$)�5'(�$6 ��&$/�)�5&)-�.�/ �(� !"&!��� - ,B (���������*��1���$�$ , !$��'*�����Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements, &,#('2 )� &!5'(,�$&'!� $6�$� &)� "&)-.') "� &!� !'$ )� $'� �'2 (!, !$� 5&!�!-&�.� )$�$ , !$)�( .�$ "� $'� " B$�� &!-.%"&!�� "&( -$� B'(('4&!�)� �!"� "&( -$� #.�- , !$)*� �$� �.)'� -.�(&5& )� 46&-6� .&�B&.&$& )��'2 (!, !$)�)6'%."�&!-.%" �46 !�"&)-.')&!��&!5'(,�$&'!�( .�$ "�$'�" B$*��('2&)&'!)�'5�$6&)�)$�$ , !$��( � 55 -$&2 �5'(�5&!�!-&�.�)$�$ , !$)�5'(�$6 ��&$/�)�5&)-�.�/ �(� !"&!��� - ,B (��������<*��1��� $�$ , !$� �'*� �<�� Accounting for Interest Cost Incurred Before the End of a Construction Period, &,#('2 )�5&!�!-&�.�( #'($&!��B/�#('2&"&!��,'( �( . 2�!$� &!5'(,�$&'!��B'%$�-�#&$�.��)) $)��!"�$6 �-')$�'5�B'(('4&!�� 5'(��� ( #'($&!��# (&'"*� �$��.)'� !6�!- )�$6 �-',#�(�B&.&$/�'5� &!5'(,�$&'!��B'%$�-�#&$�.� �)) $)��!"� $6 �-')$�'5� B'(('4&!�� 5'(��� ( #'($&!��# (&'"� 5'(�B'$6��'2 (!, !$�.� �-$&2&$& )��!"�B%)&! ))3$/# � �-$&2&$& )*� �('2&)&'!)� '5� $6&)� )$�$ , !$� �( � 55 -$&2 � 5'(� 5&!�!-&�.� )$�$ , !$)� 5'(� $6 ��&$/�)�5&)-�.�/ �(� !"&!��� - ,B (���������*��1���$�$ , !$��'*�<���Major Equity Interests��&,#('2 )�-'!)&)$ !-/��!"�-',#�(�B&.&$/�'5�( #'($&!�����'2 (!, !$�)�,�D'(&$/� =%&$/�&!$ ( )$�&!���. ��../�) #�(�$ �'(��!&J�$&'!���!"�&,#('2 )�$6 �( . 2�!- �'5�5&!�!-&�.�)$�$ , !$�&!5'(,�$&'!�5'(�- ($�&!�-',#'! !$�%!&$)*��$�" 5&! )���,�D'(&$/� =%&$/�&!$ ( )$��!"�)# -&5& )� $6�$���,�D'(&$/� =%&$/� &!$ ( )$� &!��� . ��../� ) #�(�$ �'(��!&J�$&'!�)6'%."�B � ( #'($ "��)��!�&!2 )$, !$� &5� �� �'2 (!, !$�)� 6'."&!�� '5� $6 � =%&$/� &!$ ( )$� , $)� $6 � " 5&!&$&'!� '5� �!� &!2 )$, !$*��('2&)&'!)� '5� $6&)� )$�$ , !$� �( � 55 -$&2 � 5'(� 5&!�!-&�.� )$�$ , !$)� 5'(� $6 � �&$/�)� / �(� !"&!��� - ,B (��������<*��1��� $�$ , !$� �'*� <��� Conduit Debt Obligations�� #('2&" )� �� )&!�. � , $6'"� '5� ( #'($&!�� -'!"%&$�" B$� 'B.&��$&'!)� B/� &))% ()� �!"� .&,&!�$ )� "&2 ()&$/� &!� #(�-$&- � �))'-&�$ "� 4&$6� >�?� -',,&$, !$)� 8$ !" "�B/�&))% ()��>�?��((�!� , !$)��))'-&�$ "�4&$6�-'!"%&$�" B$�'B.&��$&'!)���!"�>�?�( .�$ "�!'$ �"&)-.')%( )*��$�-.�(&5& )�$6 � 8&)$&!��" 5&!&$&'!�'5�-'!"%&$�" B$�'B.&��$&'!F� )$�B.&)6 )�$6�$���-'!"%&$�" B$�'B.&��$&'!�&)�!'$���.&�B&.&$/�'5�$6 �&))% (F� )$�B.&)6 )�)$�!"�(")�5'(��--'%!$&!���!"�5&!�!-&�.�( #'($&!��'5��""&$&'!�.� -',,&$, !$)� �!"� 2'.%!$�(/� -',,&$, !$)� 8$ !" "� B/� &))% ()� �!"� �((�!� , !$)��))'-&�$ "�4&$6�-'!"%&$�" B$�'B.&��$&'!)F��!"� &,#('2 )� ( =%&( "�!'$ �"&)-.')%( )*��('2&)&'!)�'5� $6&)�)$�$ , !$��( � 55 -$&2 �5'(�5&!�!-&�.�)$�$ , !$)�5'(�$6 ��&$/�)�/ �(� !"&!��� - ,B (���������*���
�
�
�����������������������
��K����������������������������������
�
������������ ����������
�'$ )�$'�� =%&( "�%##. , !$�(/��!5'(,�$&'!��
� - ,B (����������
9��
�� =%&( "�)%##. , !$�(/�&!5'(,�$&'!�&!-.%" )�5&!�!-&�.�&!5'(,�$&'!��!"�"&)-.')%( )�$6�$��( �( =%&( "�B/�1���B%$��( �!'$�-'!)&" ( "���#�($�'5�$6 �B�)&-�5&!�!-&�.�)$�$ , !$)*���'(�$6 ��&$/��$6&)�&!5'(,�$&'!�&!-.%" )0�
����B%"� $�(/�-6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"���.�!- �+��%"� $�����!"��-$%�.�+��%"� $���)&)�+�1 ! (�.��%!"������B%"� $�(/�-6 "%. �'5�� 2 !% )���8# !"&$%( )���!"��6�!� )�&!��%!"���.�!- �+��%"� $�����!"��-$%�.�+��%"� $���)&)�+���!"���!@����� 5&! "�� ! 5&$�� !)&'!��.�!)�+�6�( �'5�$6 ��'.. -$&2 �� $�� !)&'!��&�B&.&$/���!)�)��%B.&-����,#.'/ �� $&( , !$�/)$ ,���)$�&8��&)-�.�� �()����� 5&! "�� ! 5&$�� !)&'!��.�!)�+�-6 "%. �'5��&$/�)��'!$(&B%$&'!)���!)�)��%B.&-��,#.'/ )���� $&( , !$�/)$ ,���)$�&8��&)-�.�� �()�����$6 (��')$��,#.'/, !$��.�!)�+�-6 "%. �'5��6�!� )�&!�$6 ��&$/�)�� �$6�C��&)�B&.&$/�'$�.��������������
�&�B&.&$/��!"�� .�$ "���$&')���)$�4'��&)-�.�� �()���
����� ������� �������������
�*�6 ��&$/�%$&.&J )� !-%,B(�!- )� 5'(�B%"� $�(/� ( #'($&!��#%(#') )*��!-%,B(�!- )� ( .�$&!�� $'�- ($�&!�-'!$(�-$%�.� ��( , !$)�� )%##.& )� �!"� =%&#, !$� $6�$� 6�2 � B !� '(" ( "� B%$� !'$� ( - &2 "� �( �( #'($ "� &!�$6 �/ �(�$6 �-',,&$, !$��(&) )�5'(�B%"� $�(/�( #'($&!��#%(#') )*��'4 2 (�� 5'(� 5&!�!-&�.�( #'($&!��#%(#') )��$6 ��''")�'(�) (2&- )��( �( #'($ "�46 !�$6 /��( �( - &2 "*��.)'�) ��'$ ����$'�$6 �5&!�!-&�.�)$�$ , !$)�5'(��""&$&'!�.�B%"� $�(/�&!5'(,�$&'!*���
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisGeneral Fund
Year ended December 31, 2018
54
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Taxes and shared revenue:
Ad valorem tax 2,583,163$ 2,583,163$ 2,521,355$ (61,808)$ Delinquent tax 40,000 40,000 59,241 19,241 Motor vehicle tax 356,309 356,309 416,886 60,577 Sales tax 1,184,500 1,184,500 1,259,045 74,545
Franchise tax 609,000 609,000 662,193 53,193 Court fines 171,000 171,000 164,661 (6,339) Licenses, permits and fees 294,350 294,350 176,385 (117,965) Recreation fees 104,200 104,200 113,408 9,208 Rents and note collections 43,000 43,000 46,983 3,983 Intergovernmental 41,500 41,500 44,318 2,818 Interest 1,000 1,000 22,550 21,550 Other 29,500 29,500 40,082 10,582
Total revenues 5,457,522 5,457,522 5,527,107 69,585
Expenditures:City Administration:
Personnel services 522,510 522,510 528,918 6,408 Contractual services 38,500 38,500 19,404 (19,096) Operating expenses 26,000 26,000 27,187 1,187
Community Development:Personnel services 192,200 192,200 152,289 (39,911) Contractual services 15,000 15,000 10,067 (4,933) Operating expenses 18,400 18,400 10,115 (8,285)
Law and Municipal Court:Personnel services 59,500 59,500 57,792 (1,708) Contractual services 59,700 59,700 51,422 (8,278) Operating expenses 4,600 4,600 4,941 341
Parks and Grounds:Personnel services 106,900 106,900 106,479 (421) Contractual services 45,000 45,000 37,021 (7,979) Operating expenses 41,400 41,400 25,657 (15,743) Capital outlay 6,000 6,000 13,597 7,597
Police:Personnel services 795,000 795,000 749,590 (45,410) Contractual services 75,500 75,500 73,296 (2,204) Operating expenses 94,000 94,000 82,775 (11,225) Capital outlay 21,584 21,584 12,545 (9,039)
Recreation:Personnel services 228,100 228,100 190,652 (37,448) Contractual services 50,500 50,500 50,441 (59) Operating expenses 38,700 38,700 23,357 (15,343)
Senior Center:Personnel services 60,550 60,550 16,396 (44,154) Contractual services 5,600 5,600 4,702 (898) Operating expenses 9,400 9,400 5,367 (4,033)
Budgeted Amounts
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisGeneral Fund
Year ended December 31, 2018
55
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Budgeted Amounts
Mayor and Council:Personnel services 13,100 13,100 12,837 (263) Contractual services 6,700 6,700 7,861 1,161 Operating expenses 13,500 13,500 15,302 1,802
Central Park Pool:Personnel services 25,550 25,550 23,441 (2,109) Contractual services 14,000 14,000 14,720 720 Operating expenses 9,650 9,650 9,289 (361)
Economic Development:Personnel services 73,800 73,800 23,166 (50,634) Contractual services 106,100 106,100 54,321 (51,779) Operating expenses 35,200 35,200 128,327 93,127
Nondepartmental:Personnel services 6,000 6,000 3,500 (2,500) Contractual services 161,900 161,900 76,084 (85,816) Operating expenses 17,000 17,000 138,723 121,723 Capital outlay 10,000 10,000 - (10,000)
Transfer out 2,641,457 2,641,457 1,999,431 (642,026) Land project 314,000 314,000 352,507 38,507
Total expenditures 5,962,601 5,962,601 5,113,519 (849,082)
Net change in fund balance (505,079)$ (505,079)$ 413,588 918,667$
Fund balance, beginning of year 2,690,846
Fund balance, end of year 3,104,434$
Explanation of difference between budgetary and GAAP fund balance:
Accrued revenues 589,232
GAAP fund balance at end of year 3,693,666$
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisLand Bank Fund
For the Year Ended December 31, 2018
56
ActualAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Residential lot sales 100,000$ 100,000$ 84,377$ (15,623)$ Commercial lot sales 50,000 50,000 - (50,000) Interest - - 4,096 4,096
Total revenues 150,000 150,000 88,473 (61,527)
Expenditures:Special assessments 400,000 400,000 329,889 (70,111) Contractual services 15,000 15,000 28,611 13,611
Total expenditures 415,000 415,000 358,500 (56,500)
Net change in fund balance (265,000)$ (265,000)$ (270,027) (5,027)$
Fund balance, beginning of year 505,892
Fund balance, end of year 235,865$
Explanation of difference between budgetary and GAAP fund balance:Property held for resale 8,117,700
GAAP fund balance at end of year 8,353,565$
Budgeted Amounts
City of Bel Aire, KansasRequired Supplementary Information
December 31, 2018
57
2018 2017 2016 2015 2014 2013
Measurement DateJune 30,
2018June 30,
2017June 30,
2016June 30,
2015June 30,
2014June 30,
2013
0.096% 0.090% 0.087% 0.076% 0.076% 0.070%
$ 1,331,099 $ 1,298,316 $ 1,353,388 $ 1,002,884 $ 931,409 $ 1,065,989
$ 1,594,160 $ 1,477,171 $ 1,450,432 $ 1,257,280 $ 1,208,004 $ 1,128,446
83% 88% 93% 80% 77% 94%
68.88% 67.12% 65.10% 64.95% 66.60% 59.94%
Schedule of City's Proportionate Share of the Collective Net Pension Liability Kansas Public Employees Retirement System
Last Six Years*
Covered payroll is measured as of the measurement date ending June 30.
*GASB 68 requires presentation of ten years. As of December 31, 2018, only six years of information is available.
Plan fiduciary net position as a percentage of the total pension liability
City's proportion of the collective net pension liability
City's proportionate share of the net pension liability
City's covered payroll^
City's proportionate share of the net pension liability as a percentage of its covered-employee payroll
City of Bel Aire, KansasRequired Supplementary Information
December 31, 2018
58
2018 2017 2016 2015 2014 2013
Contractually required contribution 145,716$ 133,898$ 138,160$ 130,342$ 107,294$ 97,298$
Contributions in relation to the contractually required contribution
(145,716) (133,898) (138,160) (130,342) (107,294) (97,298)
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$
City's covered payroll ^ 1,736,656$ 1,569,560$ 1,337,466$ 1,374,918$ 1,107,270$ 1,106,921$
Contributions as a percentage of covered payroll 8.39% 8.53% 10.33% 9.48% 9.69% 8.79%
Schedule of City's ContributionsKansas Public Employees Retirement System
Last Six Fiscal Years*
*GASB 68 requires presentation of ten years. As of December 31, 2018, only six years of information is available.
^ Covered payroll is measured as of the the fiscal year end December 31
Changes from the November 2016 experience study that impacted KPERS are listed below:• The post-retirement healthy mortality assumption was changed to the RP-2014 Mortality Table, with adjustments to better fit the observed experience for the various KPERS groups. The most recent mortality improvement scale, MP-2016, is used to anticipate future mortality improvements in the valuation process through the next experience study.• The active member mortality assumption was modified to also be based on the RP-2014 Employee Mortality Table with adjustments.• The retirement rates for the select period (when first eligible for unreduced benefits under Rule of 85) were increased, but all other retirement rates were decreased.• Disability rates were decreased for all three groups.• The termination of employment assumption was increased for all three groups.• The interest crediting rate assumption for KPERS 3 members was lowered from 6.50% to 6.25%.
Changes in assumptions for KPERS. As a result of the experience study completed in November 2016, there were several changes made to the actuarial assumptions and methods since the prior valuation. The changes that impact all groups were effective December 31, 2016 and include:
• The price inflation assumption was lowered from 3.00% to 2.75%.• The investment return assumption was lowered from 8.00% to 7.75%.• The general wage growth assumption was lowered from 4.00% to 3.50%.• The payroll growth assumption was lowered from 4.00% to 3.00%.
For the state fiscal year 2017, the Legislature changed the working after retirement rules for members who retire on or after January 1, 2018. The key changes to the working after retirement rules were to lengthen the waiting period for KPERS members to return to work from 60 days to 180 days for members who retire before attaining age 62, remove the earnings limitation for all retirees and establish a single-employer contribution schedule for all retirees.
January 1, 2015, the KPERS 3 cash balance plan became effective. Members enrolled in this plan are ones first employed in a KPERS covered position on or after January 1, 2015, or KPERS 1 or KPERS 2 members who left employment before vesting and returned to employment on or after January 1, 2015. The retirement benefit is an annuity based on the account balance at retirement.
Changes in benefit terms for KPERS. Effective January 1, 2014, KPERS 1 member’s employee contribution rate increased to 5.0 percent and then on January 1, 2015, increase to 6.0 percent, with an increase in benefit multiplier to 1.85 percent for future years of service. For KPERS 2 members retired after July 1, 2012, the cost of living adjustment (COLA) is eliminated, but members will receive a 1.85 percent multiplier for all years of service.
City of Bel Aire, KansasRequired Supplementary Information
December 31, 2018
59
2018 2017Measurement Date June 30, 2018 June 30, 2017
Total OPEB liabilityService cost 6,313$ 6,051$ Interest 3,627 3,515 Effect of economic/demographic gains or losses (5,304) - Effect of assumptions changes or inputs (778) (2,030) Benefit payments (29,875) (29,875) Net change in total OPEB liability (26,017) (22,339) Total OPEB liability - beginning 109,796 132,135 Total OPEB liability - ending 83,779$ 109,796$ Covered-employee payroll 1,594,160$ 1,477,171$
Total OPEB liability as a percentage of covered-employee payroll 5.26% 7.43%
- The discount rate increased from 2.85% on June 30, 2016 to 3.58% on June 30, 2017. - The discount rate increased from 3.58% on June 30, 2017 to 3.87% on June 30, 2018.
* GASB 75 requires presentation of ten years. As of December 31, 2018, only two years of information is available.There are no assets accumulated in the trust to pay related benefits.
Schedule of Changes in the City'sDeath & Disability Total OPEB Liability and Related Ratios
Last Two Fiscal Years*
Changes of assumptions. Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period:
�
�
����������������������
�����������������������
City
of B
el A
ire, K
ansa
sC
ombi
ning
Bal
ance
She
etN
onm
ajor
Gov
ernm
enta
l Fun
dsD
ecem
ber 3
1, 2
018
60
Spec
ial R
even
ue F
unds
Tota
lN
onm
ajor
Spec
ial S
treet
Loca
l Dru
gSt
ate
Dru
gFe
dera
lC
apita
lEq
uipm
ent
Gov
ernm
enta
lan
d H
ighw
ayFo
rfeitu
reFo
rfeitu
reFo
rfeitu
reIm
prov
emen
tR
eser
veFu
nds
Asse
ts:
Cas
h, in
clud
ing
inve
stm
ents
451,
913
$
88
0$
1,
552
$
1,
221
$
19
6,42
6$
26,7
64$
67
8,75
6$
Rec
eiva
bles
5,05
6
-
-
-
-
-
5,
056
T
otal
ass
ets
456,
969
$
88
0$
1,
552
$
1,
221
$
19
6,42
6$
26,7
64$
68
3,81
2$
Liab
ilitie
s A
ccou
nts
and
reta
inag
e pa
yabl
e2,
640
$
-
$
-$
-
$
-$
-
$
2,64
0$
Acc
rued
liab
ilitie
s2,
111
-
-
-
-
-
2,11
1
Tota
l lia
bilit
ies
4,75
1
-
-
-
-
-
4,
751
Fund
bal
ance
: R
estri
cted
452,
218
88
0
1,
552
1,
221
-
-
45
5,87
1
Ass
igne
d-
-
-
-
19
6,42
6
26,7
64
22
3,19
0
Tota
l fun
d ba
lanc
e45
2,21
8
880
1,55
2
1,22
1
196,
426
26
,764
679,
061
T
otal
liab
ilitie
s, d
efer
red
inflo
ws
of
reso
urce
s an
d fu
nd b
alan
ce45
6,96
9$
880
$
1,55
2$
1,22
1$
196,
426
$
26
,764
$
683,
812
$
Cap
ital P
roje
ct F
unds
City
of B
el A
ire, K
ansa
sC
ombi
ning
Sch
edul
e of
Rev
enue
s, E
xpen
ditu
res
and
Cha
nges
in
Fund
Bal
ance
s - N
onm
ajor
Gov
ernm
enta
l Fun
dsFo
r the
Yea
r End
ed D
ecem
ber 3
1, 2
018
61
Tota
lN
onm
ajor
Spec
ial S
treet
Loca
l Dru
gSt
ate
Dru
gFe
dera
lC
apita
lEq
uipm
ent
Gov
ernm
enta
lan
d H
ighw
ayFo
rfeitu
reFo
rfeitu
reFo
rfeitu
reIm
prov
emen
tR
eser
veFu
nds
Rev
enue
s:
Taxe
s an
d sh
ared
reve
nues
306,
711
$
-$
-
$
-$
-$
-
$
306,
711
$
M
isce
llane
ous
-
-
-
-
11
,169
19,1
46
30
,315
Tota
l rev
enue
s30
6,71
1
-
-
-
11
,169
19,1
46
33
7,02
6
Expe
nditu
res:
Stre
ets
and
high
way
s28
2,59
6
-
-
-
-
-
28
2,59
6
C
apita
l out
lay
248,
471
-
-
-
77,3
93
23
0,46
6
556,
330
Tota
l exp
endi
ture
s53
1,06
7
-
-
-
77
,393
230,
466
83
8,92
6
E
xces
s of
reve
nues
ove
r (un
der)
expe
nditu
res
(224
,356
)
-
-
-
(66,
224)
(2
11,3
20)
(5
01,9
00)
Oth
er fi
nanc
ing
sour
ces
(use
s):
Tra
nsfe
rs in
400,
000
-
-
-
50,0
00
50
,000
500,
000
Tra
nsfe
rs o
ut(4
8,61
9)
-
-
-
-
-
(4
8,61
9)
Tot
al o
ther
fina
ncin
g so
urce
s (u
ses)
351,
381
-
-
-
50,0
00
50
,000
451,
381
Net
cha
nge
in fu
nd b
alan
ce12
7,02
5
-
-
-
(1
6,22
4)
(161
,320
)
(50,
519)
Fund
bal
ance
, beg
inni
ng o
f yea
r32
5,19
3
88
0
1,55
2
1,22
1
21
2,65
0
188,
084
72
9,58
0
Fu
nd b
alan
ce, e
nd o
f yea
r45
2,21
8$
88
0$
1,55
2$
1,22
1$
19
6,42
6$
26,7
64$
67
9,06
1$
Cap
ital P
roje
ct F
unds
Spec
ial R
even
ue F
unds
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisBond and Interest Fund
For the Year Ended December 31, 2018
62
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Special assessments 2,360,168$ 2,360,168 2,065,897$ (294,271)$ Delinquent tax - - 195,323 195,323 Interest - - 519 519 Transfer in 1,413,213 1,413,213 769,231 (643,982)
Total revenues 3,773,381 3,773,381 3,030,970 (742,411)
Expenditures:Fees - - 856 856 Principal payments 1,915,000 1,915,000 1,815,000 (100,000) Interest expense 1,413,798 1,413,798 881,473 (532,325)
Total expenditures 3,328,798 3,328,798 2,697,329 (631,469)
Net change in fund balance 444,583$ 444,583$ 333,641 (110,942)$
Fund balance, beginning of year 215,154 Fund balance, end of year 548,795$
Budgeted Amounts
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget BasisCapital Projects Fund
For the Year Ended December 31, 2018
63
ActualAmounts
Budgetary Basis
Revenues:Capital contributions 470,990$ Interest 49,320
Total revenues 520,310
Expenditures:Cost of issuance 5,005 Rail Grant 2,300 Sunflower Commerce Park 9,946 Rock Spring 939,351 Chapel Landing 144,581 The Courtyards at Elk Creek 846 Prestwick 244,552 Deer Run - Temporary note and bond principal 215,284 Temporary note and bond interest 131,876
Total expenditures 1,693,741
Net change in fund balance (1,173,431)
Fund balance, beginning of year 3,898,517 Fund balance, end of year 2,725,086$
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget BasisPublic Building Commission
For the Year Ended December 31, 2018
64
ActualAmounts
Budgetary Basis
Revenues:Industrial land sales 32,329$ Effluent sales 56,798 Transfer in 1,284,808
Total revenues 1,373,935
Expenditures:Fees 2,715 Bond principal 585,000 Bond interest 735,044
Total expenditures 1,322,759
Net change in fund balance 51,176
Fund balance, beginning of year 82,381 Fund balance, end of year 133,557$
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisSpecial Street and Highway Fund
For the Year Ended December 31, 2018
65
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Taxes and Shared Revenue:
State gas tax 194,020$ 194,020$ 212,013$ 17,993$ County gas tax 85,650 85,650 94,698 9,048
Transfer in 400,000 400,000 400,000 - Total revenues 679,670 679,670 706,711 27,041
Expenditures:Personnel services 123,600 123,600 108,357 (15,243) Contractual services 90,500 90,500 91,822 1,322 Operating expense 96,100 96,100 82,417 (13,683) Capital outlay 400,000 400,000 248,471 (151,529) Transfer out 48,619 48,619 48,619 -
Total expenditures 758,819 758,819 579,686 (179,133)
Net change in fund balance (79,149)$ (79,149)$ 127,025 206,174$
Fund balance, beginning of year 325,193 Fund balance, end of year 452,218$
Budgeted Amounts
City of Bel Aire, KansasCombining Balance Sheet
Nonmajor Enterprise FundsDecember 31, 2018
66
TotalNonmajor
Solid Waste Stormwater EnterpriseAssets: Cash, including investments 258,652$ 146,941$ 405,593$ Accounts receivable 33,525 - 33,525 Total assets 292,177 146,941 439,118
Liabilities: Accounts payable 32,582 - 32,582 Total liabilities 32,582 - 32,582
Net position: Unrestricted 259,595 146,941 406,536 Total net position 259,595$ 146,941$ 406,536$
City of Bel Aire, KansasCombining Statement of Revenues, Expenses and Changes in
Net Position - Nonmajor Enterprise FundsFor the Year Ended December 31, 2018
67
TotalNonmajor
Solid Waste Stormwater EnterpriseOperating revenues: Utility income 515,220$ 84,557$ 599,777$ Total operating revenues 515,220 84,557 599,777
Operating expenses: Contractual services 384,617 17,023 401,640 Total operating expenses 384,617 17,023 401,640
Operating income (loss) 130,603 67,534 198,137
Non-operating revenues (expenses): Transfers out (150,000) - (150,000)
Change in net position (19,397) 67,534 48,137
Net position, beginning of year 278,992 79,407 358,399 Net position, end of year 259,595$ 146,941$ 406,536$
City of Bel Aire, KansasCombining Statement of Cash Flows
Nonmajor Enterprise FundsFor the Year Ended December 31, 2018
68
Solid Waste Stormwater TotalCash flows from operating activities: Cash received from customers 512,827$ 84,557$ 597,384$ Payments to suppliers for goods and services (382,949) (17,023) (399,972) Net cash flow from operating activities 129,878 67,534 197,412
Cash flows from non-capital financing activities: Transfers to other funds (150,000) - (150,000) Net cash flow from non-capital financing activities (150,000) - (150,000)
Net increase in cash and cash equivalents (20,122) 67,534 47,412
Cash and cash equivalents, beginning of the year 278,774 79,407 358,181 Cash and cash equivalents, end of the year 258,652$ 146,941$ 405,593$
Reconciliation of operating income to net cash flow from operating activities: Operating income 130,603$ 67,534$ 198,137$ Adjustments to reconcile operating income to net cash provided by operating activities:
Change in accounts receivable (2,393) - (2,393) Change in accounts payable 1,668 - 1,668
Net cash flow from operating activities 129,878$ 67,534$ 197,412$
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisWater Fund
For the Year Ended December 31, 2018
69
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Utility income 2,238,000$ 2,238,000$ 2,434,031$ 196,031$ Interest income - - 9,112 9,112 Miscellaneous 3,000 3,000 14,907 11,907
Total revenues 2,241,000 2,241,000 2,458,050 217,050
Expenditures:Personnel services 168,800 168,800 149,168 (19,632) Contractual services 1,641,000 1,641,000 1,489,984 (151,016) Commodities 106,000 106,000 274,831 168,831 Capital outlay 72,951 72,951 - (72,951) Debt service 54,475 54,475 36,475 (18,000) Transfer out 198,005 198,005 148,005 (50,000)
Total expenditures 2,241,231 2,241,231 2,098,463 (142,768)
Net change in fund balance (231)$ (231)$ 359,587 359,818$
Fund balance, beginning of year 1,139,983 Fund balance, end of year 1,499,570$
Budgeted Amounts
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisSewer Fund
For the Year Ended December 31, 2018
70
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Utility income 1,947,600$ 1,947,600$ 2,253,242$ 305,642$ Interest income - - 14,758 14,758 Miscellaneous - - 197 197
Total revenues 1,947,600 1,947,600 2,268,197 320,597
Expenditures:Personnel services 281,314 281,314 280,914 (400) Contractual services 1,351,000 1,351,000 1,055,820 (295,180) Commodities 226,000 226,000 174,257 (51,743) Capital outlay 3,800 3,800 - (3,800) Debt service 53,101 53,101 22,495 (30,606) Transfer out 207,985 207,985 207,984 (1)
Total expenditures 2,123,200 2,123,200 1,741,470 (381,730)
Net change in fund balance (175,600)$ (175,600)$ 526,727 702,327$
Fund balance, beginning of year 1,536,314 Fund balance, end of year 2,063,041$
Budgeted Amounts
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisSolid Waste Fund
For the Year Ended December 31, 2018
71
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Utility income 460,000$ 460,000$ 512,827$ 52,827$
Total revenues 460,000 460,000 512,827 52,827
Expenditures:Contractual services 410,000 410,000 384,617 (25,383) Transfers Out 150,000 150,000 150,000 -
Total expenditures 560,000 560,000 534,617 (25,383)
Net change in fund balance (100,000)$ (100,000)$ (21,790) 78,210$
Fund balance, beginning of year 247,860 Fund balance, end of year 226,070$
Budgeted Amounts
City of Bel Aire, KansasSchedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual - Budget BasisStormwater Fund
For the Year Ended December 31, 2018
72
Actual Variance withAmounts Final Budget
Budgetary Over/Original Final Basis (Under)
Revenues:Utility income 75,000$ 75,000$ 84,557$ 9,557$
Total revenues 75,000 75,000 84,557 9,557
Expenditures:Contractual services 21,000 21,000 17,023 (3,977) Capital Outlay 50,000 50,000 - (50,000)
Total expenditures 71,000 71,000 17,023 (53,977)
Net change in fund balance 4,000$ 4,000$ 67,534 63,534$
Fund balance, beginning of year 79,407 Fund balance, end of year 146,941$
Budgeted Amounts
� �
����������
��� ���������������������������������������
������������� ������������
� � � � � � � � � � � � � �� �
A D O P T E D B Y T H E G O V E R N I N G B O D Y A U G U , 2 0 1
������������ ��
1
2
TABLE OF CONTENTS INTRODUCTION GFOA Budget Award Certificate…………………………………………………………... 2 Mission Statement………………………………………………………………………….. 5 Governing Body…………………………………………………………………………….. 6 Management Team…………………………………………………………………………. 7 Organizational Chart………………………………………………………………………... 8
READER’S GUIDE TO THE BUDGET Executive Summary…...……………………………………………………………………. 9 City Profile………………………………………………………………………………….. 15 Budget Process……………………………………………………………………………… 18 Budget Calendar…………………………………………………………………………….. 20 Financial Policies…………………………………………………………………………… 21 All Funds Summary………………………………………………………………………… 22
GENERAL FUND 25 General Fund Revenues…………………………………………………………………….. 26 Department Summaries & Budgets
Administration……………………………………………………………………… 30 Planning & Zoning…………………………………………………………………. 32 Municipal Court…………………………………………………………………….. 34 Parks & Grounds……………………………………………………………………. 36 Police………………………………………………………………………………... 39 Recreation………………………………………………………………………….... 41 Central Park Pool…………………………………………………………………… 44 Seniors Center……………………………………………………………………..... 46 Mayor & Council…………………………………………………………………… 48 Non-Departmental…………………………………………………………………... 50 Community Development…………………………………………………………... 52 Land…………………………………………………………………………………. 54
ENTERPRISE FUNDS 56 Water Fund………………………………………………………………………………….. 58 Wastewater (Sewer) Fund…………………………………………………………………... 63 Solid Waste & Recycling…………………………………………………………………… 68 Stormwater Fund……………………………………………………………………………. 69
OTHER FUNDS 70 Street Fund………………………………………………………………………………….. 71 Bond & Interest (Debt Service) Fund……..………………………………………………... 74 Land Bank…………………………………………………………………………………... 76
NON BUDGETED FUNDS 77 Capital Improvement Fund………………………………………………………………….. 78 Equipment Reserve Fund…………………………………………………………………… 80
Capital Projects Fund……………………………………………………………………….. 82 Trustee Public Building Commission (PBC) Fund………...……………………………….. 84 Sunflower Commerce Park Map……………………………………………………………. 85 Zoning Map for Bel Aire, KS……………………………………………………………….. 86 Glossary……………………………………………………………………………………... 87 Appendix A: State Budget Forms…………………………………………………………... 90 Appendix B: Property Tax Information…………………………………………………….. 108 Appendix C: City Indebtedness……………………………………………………………... 112
&
MISSION STATEMENT
It is the mission of the council, staff and employees of the City of Bel Aire to work together cooperatively and efficiently for and with all citizens to provide a safe, clean and attractive community. A community that includes full and open access to basic services, educational programs and recreational facilities that enhance the excellent quality of life for residents, potential residents and visitor.
5
GOVERNING BODY
Contact Information
Name E-Mail Term ExpiresDavid Austin [email protected] November 2019
Justin Smith [email protected] November 2021
Jim Benage [email protected] November 2021
Jeff Elshoff [email protected] November 2021
Jeff Hawes [email protected] November 2019
Betty Martine [email protected] November 2019
Overview
The City of Bel Aire operates under a Council�Manager form of government which combines the
political leadership of elected officials with the professional experience of a city manager.
The Mayor is elected at-large (community-wide) and serves for a term of two years. The Mayor
presides at the City Council meetings and recommends measures deemed advisable, votes in case
of a tie, and has the power to veto any ordinance passed by the Council.
The five City Council members are elected at-large (community-wide) and serve for a term of
four years. Council members serve staggered terms, with two positions elected for four years,
and then two years later the remaining three positions are elected for four years terms.
Working as a consensus, the Council establishes the general policies under which the City
operates and gives direction to the city manager who oversees the daily operations of the City.
David AustinMayor
Justin SmithCouncil President
Jim BenageCouncil Member
Jeff ElshoffCouncil Member
Jeff HawesCouncil Member
Betty MartineCouncil Member
6
MANAGEMENT TEAM
City Manager Ty Lasher
Director of Finance City Attorney Ted Henry Jacqueline Kelly [email protected] [email protected]
Police Chief City Engineer/Public Works Director Darrell Atteberry Anne Stephens [email protected] [email protected]
Recreation Director Assistant Public Works Director Brian Hayes Dave Leiker [email protected] [email protected]
Director of Communications Building Inspector Tristin Terhune Keith Price [email protected] [email protected]
As the chief executive of the City organization, City Manager Ty Lasher is responsible for the
daily administration of the City’s operations and affairs. Like the CEO of a corporation, the City
Manager is hired by the Governing Body and is responsible for all City employees, department
projects and programs, and ensuring service delivery to the public.
Council members and citizens count on the City Manager to provide complete and objective
information, pros and cons of alternatives, and long�term consequences of decisions and policies.
Likewise, the City Manager relies on the management team of department directors to provide
professional, well-reasoned information and recommendations, and oversee the highest level of
public service possible.
7
ORGANIZATIONAL CHART
POSITION SUMMARY (not including elected or Contractual/Seasonal positions)
2015 2016 2017 2018 2019
FULL-TIME 36 36 38 38 38
PART-TIME 3 3 3 3 3
TOTAL FTE 39 39 41 41 41No Staffing changes required for the 2019 Budget Year
EXECUTIVE SUMMARY
Citizens of Bel Aire
Elected Officials
Municipal Court Judge (Contract)
City Manager
Director of Finance
Director of Communications
City Treasurer
City Clerk
Utility Clerk
Senior Director
Administrative Assistant
Director of Recreation
Assistant Director of Recreation
Recreation Coordinator
Recreation Assistant
(2 Part-Time)
Police Chief
Police Lieutenant
Police Detective
(9) Police Officers(1 Part-Time)
Court/ PD Clerk
Assistant Court Clerk (Part Time)
Director of Planning &
Zoning
Code Enforcement
Officer
Planning & Zoning Clerk (Part Time)
Director of Public Works/ City Engineer
Assistant Director of
Public Works/ Parks Director
Utilities Supervisor
(2) EquipmentOperator II
(4) EquipmentOperator I
City Arborist
City Attorney
8
The Honorable Mayor and City Council of the City of Bel Aire, Kansas,
It is my pleasure to present this 2019 budget document to you and the citizens of Bel Aire, as
adopted by the Bel Aire City Council on August 21, 2018. Prepared by the City Council, the
annual budget represents the ingenuity and hard work of many individuals. It communicates
management’s ideas on how to use the limited resources at hand to best serve the residents and
businesses of Bel Aire based on the goals, priorities, and direction provided by the City Council.
The total 2019 Budget equals $17,881,790, a 6.6% increase over the 2018 adopted Budget. The
increase is in large part attributable to a 36% increase in bond and interest payments. The
increase in payments are associated with paving, water and sewer line projects built to serve new
developments and are paid for with special assessments. The total 2019 General Fund operating
budget is 3.6% more than the 2018 General Fund operating budget. The 2018 Budget made a
one-time transfer to our Streets Fund for rehabilitation and street improvements. The 2019
Budget includes another one-time transfer to the Capital Improvement Reserve Fund for these
same purposes.
The annual budget is one of the most important documents prepared by the Governing Body. The
primary purpose of the budget process is to develop, adopt, and implement a plan for
accomplishing goals for the upcoming year within given constraints. It serves as a financial plan,
provides guidance to Department Mangers and communicates the City’s financial condition.
Most importantly, it presents the Governing Body’s vision for the community by describing how
public funds will be spent in order to achieve policy objectives.
Development of the 2019 Budget has been a lengthy, challenging process requiring careful
study, asking tough questions, and making difficult decisions about both current and future
issues facing the community. Overall, property values rose by 7.43% due to new construction
and reappraisal growth. The City’s portion of the Sedgwick County sales tax collection remain
strong. While continuing to address the core needs of the community, the 2019 Budget remains
basically the same.
2012 2013 2014 2015 2016 2017 2018
Bel Aire $44,036,656 $44,286,201 $45,309,074 $48,143,387 $52,479,400 $56,487,268 $60,686,206
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
Property Values from FY2012 - FY2018
9
General Fund- Revenue
Total new General Fund revenues for 2019 are projected at $5,729,360. Bel Aire's primary
revenue sources in the General Fund are property and sales taxes. Property taxes represent 48
percent of overall revenues in the General Fund. Property tax revenues are determined by
applying the City mill levy of 45.73 mills to the assessed valuation of taxable property located
within the boundaries of the City.
*Estimate, **Budgeted
Sales tax, which is the City’s share of a 1 percent County-wide tax, accounts for 21 percent of
overall revenues. Actual sales tax revenues for 2017 were higher than anticipated, totaling
$1,174,000. �ales tax revenues �������were budgeted at $1,184,500 and are on track to meet
that amount by the end of the year. Projections for 2019 are forecasted at $1,208,190.
*Estimate, **Budgeted
Other sources of General Fund revenue include franchise fees, fines and fees, permits and
licenses, recreation program fees, grant funding, and other taxes. These revenue sources
represent the remaining 31% of revenues to the General Fund.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2015 2016 2017 2018* 2018**
Property Tax
$0
$500,000
$1,000,000
$1,500,000
2015 2016 2017 2018* 2019**
Sales Tax
10
General Fund – Expenditures
Debt service costs, taxes, special assessments, and other costs associated with the land the City
owns along with other Public Building Commission (PBC) debt payment for City Hall and the
Central Park Pool total $2.7 million. This accounts for 43% of the City’s General Fund total
expenditures. All debt service payments are budgeted as a transfer from the General Fund to our
Bond and Interest and Public Building Commission Funds.
Obviously, the greatest budgetary concern for the City continues to be the outstanding debt
obligation for land the City purchased in 2004. In order to capture a lower interest rate, the City
refinanced our land debt in June of 2017 through an $18.25 million Public Building Commission
(PBC) bond. Through this effort the city saved just under $2 million in budgetary savings by
refinancing at a lower interest rate. For 2019, the principal and interest payment is budgeted at
just over $1 million.
The City Council established a policy that requires all proceeds from any land sale inside the
Sunflower Commerce Park to be used as an extra principal payment on our land debt. From 2010
through 2018 the City has made $4,050,000 in extra principal prepayments as a result of
industrial land sales. This budgetary practice has saved the city $4,585,363 in interest payments
over the life of the bond and removed a year off the debt service payment schedule.
Personal service costs account for 35% of the City’s General Fund total expenditures. A city-
wide compensation/ benefits study was conducted by staff. As a result of the study, salary
ranges, compensation in general and a few of the benefits offered have been adjusted so that the
City can remain competitive with area salaries and better recruit and retain quality employees.
The 2019 Budget has been designed to be consistent with the long-term vision of the City and
the overriding goals and objectives of the City.
43%
57%
Cost Associatedwith Land CityOwns and Debt
Basic ServicesProvided by the
City
Public Safety Crime Prevention, Patrol, Investigations
Public Works Operate and maintain the City’s Infrastructure
Administration Management, Planning, Financial Management, HR
Planning & Zoning Building Permits, Zoning and Code Administration
Community Development Promotes a sense of community within Bel Aire
Recreation Maintains Recreation Facilities and Programs
Court Municipal Judges, Prosecutor Services
11
Budget Goals and Priorities
The Governing Body and City staff began the budget process in 2018 by conducting work
sessions during the spring and summer in order to set goals and priorities for the 2019 budget.
The following goals and priorities were identified and incorporated into the 2019 Budget:
� Hold the mill levy at the current level
�� Continue to look for ways to keep cost down and reorganize to effectively deliver services
�� Sustain financial stability
� Increase funding for street improvements that will preserve and enhance property values
�� Strategically invest in quality of life issues that will distinguish Bel Aire from other�
communities
1. No Mill Levy Increase
Maintaining service delivery levels without a mill levy increase continues to be the main goal of
Bel Aire’s City Council. Guided by a disciplined operating philosophy, the adopted 2019 budget
maintains service delivery levels without a mill levy increase. The 2019 budget includes a
property tax rate of 45.73 mills. The total tax burden for all taxing jurisdictions for Bel Aire
residents is estimated at 150 mills. About 30 cents of every dollar of property tax paid will go to
the City of Bel Aire.
45.73 45.73 45.73 45.73 45.73 45.73
2014 2015 2016 2017 2018 2019
Adopted Mill Levy Rates FY2014-FY2019
12
2.� Look for ways to keep cost down and reorganize to effectively deliver services.
The City is also limiting our operational costs by keeping the number a staff at 2018 levels. The
City utilizes staff turnover situations to re-evaluate services and the ways in which they are
provided. The adopted 2019 budget continues to provide high levels of service by controlling
costs through increased efficiency and additional organizational restructuring. In 2017, the city
hired a full time code enforcement officer and full time City Attorney. This move has created
better service to our citizens and a more professional staff.
3.� Sustain Financial Stability
The 2019 Budget was developed during a steady upward economic trend. The local housing
market is strong, new residential developments are expanding, and commercial activity is
picking up. The City of Bel Aire understands it is not immune to an economic downturn and the
previous recession is still fresh in our minds. The 2019 Budget targets an ending General Fund
balance to be 39% of revenues or $2,236,064. If we experience revenue shortfalls or a decrease
in valuation, this ending balance will be used in the short term while decisions can be made to
reduce expenditures.
4.� Increase funding for street improvements
The 2018 budget includes $400,000 to address necessary street repair and projects. In 2018, the
Council prioritized the need to address many minor repairs throughout the City and funded the
asphalt overlay of 53rd Street between Woodlawn and Rock. The 2019 budget includes another
$500,000 to be spent on street improvements. Funding allocated to specific projects will be
prioritized by public hearings and voted on by the City Council.
Other Budgeted Funds
In addition to the General Fund, Bel Aire maintains other funds which must be budgeted for
each year. Proprietary funds include Water��Waste Water, Storm Water������Solid Waste�
�pecial funds include Street Fund, Land Bank Fund, and the Bond & Interest Fund. Non-
budgeted special funds ��������������������for Capital Improvement Reserve, Equipment
Reserve, Capital Projects and Trustee funds (Public Building Commission).
Water, Waste Water, Storm Water, and Solid Waste Fund revenues consist almost entirely of
charges for services. The Street Fund revenues are derived from State and County Highway fuel
taxes. The total tax revenue for 2019 is projected to be $299,110. The small amount ���revenue
going into the Street Fund does not allow for much infrastructure improvement. The 2019 budget
includes a onetime transfer to the Capital Improvement Reserve Fund for needed street repairs
and improvements.
13
Revenues in the Bond & Interest Fund are primarily made up of special assessments levied upon
beneficiary property owners for infrastructure improvements. The Bond & Interest Fund is used
to pay the debt service requirements of the City. Only General Obligation debt and Revenue
Bond debt are paid through the Bond and Interest Fund.
The Land Bank Fund is funded by the sale of parcels of land owned by the City’s Land Bank.
Land Bank revenues are used to pay the special assessments for property inside Land Bank. The
Land Bank Fund paid $360,000 in special assessments in 2018. The 2019 Land Bank
expenditure budget includes $400,000 in special assessments.
Budgeted Funds 2018 Budget 2018 Property Tax
General $ 8,362,923 $ 2,775,166
Bond & Interest 2,888,685
Water 2,554,163
Sewer 2,326,150
Streets 658,869
Solid Waste 600,000
Storm Water 71,000
Land Bank 420,000
Total 17,881,790 2,775,166
Conclusion
Municipal budgets are key documents utilized to meet the goals and objectives of a community.
The allocation of resources is a very important policy statement as taxes and fees affect every
citizen living within our boundaries. Voters entrust their elected officials to oversee these
resources while meeting their needs as a community. The 2019 budget totals $17,881,790 for all
funds. The 2019 budget process focused on maintaining service delivery levels without a mill
levy increase while ensuring all mandatory debt payments and other land-related expenses were
adequately funded, as well as addressing funding for street improvements and capital needs. The
City’s fiscal year is the calendar year. It is imperative that we be transparent with our resources
and give citizens numerous opportunities for input in the budget. I sincerely believe we, as an
organization, take this seriously and accomplish these goals.
I would also like to recognize the Director of Finance and Administration���� his staff, as well
as the Department Heads for� not only their time and effort spent preparing the annual budget�
but also for their dedication to the services their departments provide while continually looking
for opportunities to reduce expenses through improved efficiencies.
Ty Lasher
City Manager
14
CITY PROFILE
Demographics
The City of Bel Aire is a city of the second class, incorporated November 26, 1980. Originally an
improvement district close to Wichita, Bel Aire has grown into a prosperous and modern
community located in the northeastern portion of the Wichita Metropolitan Area in Sedgwick
County, Kansas. The small-town feel coupled with its convenient location to the amenities of
Wichita make Bel Aire a desirable community for residents of all ages. Bel Aire’s corporate
City limits contain approximately 6.83 square miles of property ranging from residential to light
manufacturing. Bel Aire is one of the fastest growing communities in the Wichita metropolitan
area.
Population Trend Population Increase
2017 Census Estimate 7,914 16.9% 2010 Census 6,769 16.0% 2000 Census 5,836 57.9% 1990 Census 3,695 --
According to 2017 Census estimates (the most recent available), Bel Aire’s population is 7,914;
a 16.9 percent increase since the 2010 Census was conducted. This exceeds the US population
average growth rate for the same time period. The median age of Bel Aire residents is 36 years.
Approximately 28 percent of the residents are under the age of 18. Those aged 65 and older
represent 12 percent of the population. There are 2,568 housing units in Bel Aire, and 85.8
percent are occupied. This compares favorably with the US average of 64.4 percent occupancy.
In 2017, The City of Bel Aire was ranked as the #1 safest town in Kansas by SafeWise. This
ranking comes just after being ranked the #1 safest small town by Movoto Real Estate. To
compile this report, SafeWise used the most recent FBI crime data from 2012 to analyze and
rank these cities, which all have a minimum population of 4,000 people. They look at crimes
from the FBI Unified Crime Report (UCR) reported crime data, which focuses on violent crimes
(aggravated assault, forcible rape, murder, and robbery) as well as property crimes (arson,
burglary, larceny-theft, and motor vehicle theft).
In 2014 a study from NerdWallet, a consumer advocacy site, listed Bel Aire as the 4�� �est place
for homeownership in Kansas. The study was based on affordability, population, growth and
homeownership rates.
In 2012, Coldwell Banker Real Estate, LLC ranked Bel Aire among the top 10 Kansas suburbs.
As reported in the Wichita Business Journal, Bel Aire ranked number 7 and was the only city in
the Wichita metropolitan area to make the list.
15
Cost of Living According to City-data.com, the cost of living in Bel Aire is 16 percent lower than the US
average. The Cost of Living Index measures the cost to purchase standard goods and services
including groceries, housing, utilities, transportation, health care and other goods, and compares
those costs to the national average score of 100. Low cost of living index and high median
household income means Bel Aire residents enjoy a high quality of life for a lower cost.
Quality of Life Bel Aire offers a safe, friendly environment for families. Both property and violent crime rates
for the City are far below the State and Wichita Metro Area averages. Bel Aire’s poverty rate is
under 2 percent.
Education Bel Aire is served by both Wichita Public Schools (USD 259) and Circle school district (USD
375). Two private schools, Sunrise Christian Academy and Resurrection Catholic School, also
serve the Bel Aire area. In 2012, Wichita Public Schools opened two new schools within the
boundaries of the City of Bel Aire. Isely Magnet Elementary School serves grades K-5 and is a
neighborhood magnet open to all Bel Aire residents. Northeast Magnet High School serves
grades 9-12 as a traditional magnet high school where admission is obtained only through an
application process; 25% of the enrollment slots are reserved for Bel Aire residents.
Post-secondary education is available to City residents at Wichita State University, Friends
University, Newman University, University of Kansas School of Medicine� and ��������, all
located in the City of Wichita.
Transportation The City is located south of US Highway 254, east of I-35 (the Kansas Turnpike) and north of
the K-96 expressway. Colonel James Jabara Airport, located just outside the City, is a public
general aviation airport used for private and charter flights.�Wichita �!�"������+������!���
<��������=��>���, located approximately 20 minutes outside the City, offers commuter and cargo
flights.
Health Care Facilities Medical services are available to City residents at HCA Wesley Medical Center, Via Christi-
Riverside Regional Medical Center, Via Christi-St. Joseph Regional Medical Center and Via
Christi-St. Francis Regional Medical Center. Specialized medical services are available at
Kansas Heart Hospital, Kansas Spine Hospital, Children’s Mercy Hospital by Wesley, and
Galicia Heart Hospital. All of these facilities are within 30 miles of the City. Sedgwick County
provides emergency medical services to the City.
16
Recreational and Cultural Activates
Sedgwick County offers a wide variety of cultural and entertainment options to City residents,
including:�Botanica – The Wichita Gardens; ��������Wurlitzer Organ; Metropolitan Ballet
Company; Wichita�Community Theater; Wichita Children’s Theater; Music Theater of Wichita;
Mid-America Dance Theater, Inc.; Wichita Symphony ?��������Q���������Choral Society;
Wichita Art Association Galleries; Lake Afton Public Observatory; Wichita Art Museum;
Whittier Fine Arts Gallery; MidXAmerica AllXIndian Center; and Exploration Place. Some of the
major cultural events held annually in the area are: Kansas Junior Livestock Show; Wichita Jazz
Festival; Renaissance Fair; Wichita River Festival; Victorian Garden Festival; National Baseball
Congress Tournament; Lake Afton Grand Prix; Wichita Arts Festival; and the Sedgwick County
Fair.
In addition to the recreational and cultural facilities offered above, Sedgwick County operates the
Intrust Bank Arena, the Sedgwick County Zoo, Lake Afton Park, and Sedgwick County Park.
The Intrust Bank Arena is a multi-purpose facility hosting nationally recognized musical
entertainers, circuses, rodeos, the Wichita Thunder professional hockey team and a wide variety
of other entertainment events.
17
BUDGET PROCESSEach August, the City Council adopts an annual budget which serves as the primary policy
document for City operations over the course of the following year. The scarcity of resources and
stewardship of public funds makes the budget process vital to government operations. In addition
to the input of citizens, Council members and staff, the annual budget is created in an
environment governed by State law, Generally Accepted Accounting Principles (GAAP) and
City policy.
State Statutes Statutes of the State of Kansas govern the operating budget process. Three primary statutes must
be observed in the annual budget process: the Budget Law, the Cash Basis Law and the Debt
Limit Law.
Basics of the municipal budgeting process are outlined in the Budget Law—KSA 79-2925, et seq. Specifically, those statutes require that cities:
� Prepare annual, itemized budgets
� Present the budget no later than August 1
� Do not budget contingency amounts greater than 10 percent of budgeted expenditures
� Do not budget fund balances (for applicable funds) of more than 5 percent of�
expenditures
� Provide notice of a public hearing no less than 10 days prior to the hearing
� Provide the adopted budget to the County Clerk by August 25th
The State’s Cash Basis Law is outlined in K.S.A. 10-1101 et seq. which includes the following: � No city can create an indebtedness greater than the funds in the city’s treasury.
� A city can issue “no fund warrants” by a resolutionof the governing body declaring an
extraordinary emergency.
� The Debt Limit Law is contained in K.S.A. 10-308 et seq. These statutes limit the total
debt of a city to no more than 30 percent of the assessed valuation of the city.
18
Basis of Accounting
Kansas legally requires a modified, accrual basis of accounting. In the Modified Accrual basis,
revenues are not recognized until received and are available to use for expenditures.
Expenditures are recognized when the liability is incurred.
Modified Accrual basis differs from a Cash Basis system where transactions are recorded only
when monies change hands. The Modified Accrual method is similar to the registry of a check
book, where transactions are recorded when checks are written, whether they are immediately
cashed or not. Incoming revenues are only recorded when they are received and available for
expenditures. This approach prevents the City from overspending resources. The basis of
budgeting is the same as the basis of accounting used in the City’s audited financial statements.
Budgetary Controls
Budgets for local governments are a plan for spending, but spending is legally limited to
approve� amounts. The City cannot spend more than is budgeted for each fund. If more is
needed, a budget adjustment, or amendment, must be approved. A budget amendment must be
approved through the same steps as the original budget adoption.
19
BUDGET CALENDAR
Budget preparation is a continuous process. Budgets are adopted in the middle of one calendar
year for implementation in the next year. Formal discussions about the budget begin no later than
March of each year and conclude with the adoption of the budget in August.
March 2018 – April 2018 City Manager and Finance Director discuss budget priorities and outlook
May 2018 Citizen input is solicited on the City’s website and Bel Aire Breeze
May 2018 Finance Director and Department Heads discuss budget needs for 2019
May 8, 2018 City Council Workshop; staff presents Five Year Forecast
June 12, 2018 City Council Workshop; staff presents 2019 budget outlook calling for no mill levy increase
July 10, 2018 City Council Workshop; changes are discussed
August 7, 2018 City Council Meeting; City Council approves the budget, sets the public hearing and authorizes publication
August 14, 2018 City Council Workshop; changes are discussed
August 21, 2018 City Council adopts the 2019 budget
20
FINANCIAL POLICIES
Fund Balance/Operating Reserves
Fund balance is the amount of unencumbered cash that ensures services can be provided for a
short time, even if commitments exceed revenues. City operating practice seeks to provide a fund
balance of at least 90 days of operational expenses in the General Fund. Additional fund
balances for propriety funds are governed by debt covenants.
General Fund Unassigned Fund Balance Target – The City’s targeted General Fund unassigned
fund balance is at least 30% of budgeted revenues. The target amount is expressed as a goal, and
may fluctuate from year to year in the normal course of operations.
Cash Management
The City pursues a cash management and investment policy to ensure proper liquidity, the safety
of City resources and return on investment when possible.
Debt Financing
The City uses debt financing for one-time capital improvement projects and unusual equipment
purchases. The City traditionally uses Temporary Notes and General Obligation Bonds to
finance the development of infrastructure and levies special assessments against beneficiary
properties to be paid over the lifespan of the project.
Capital Expenditures
A capital expenditure is a significant physical acquisition, construction, replacement or
improvement that has a useful life of 10 years or more. These are funded through the operating
budgets when possible.
Balanced Budget
The City of Bel Aire adheres to a State law which requires all local governments operate with a
balanced budget for funds that levy a tax. A balanced budgetis defined as a budget in which
projected revenues and available unencumbered cash are equal to expenditures.
21
ALL FUNDS SUMMARY
The City of Bel Aire must adopt a budget in accordance with Kansas Statutes that shows a
balance� budget where budgeted revenues and budgeted expenditures are equal in Funds that
receive tax revenue. However, there is a difference between budgeted expenditures and projected
(operational) expenditures in those Funds. Although the budgeted expenditures set the City’s
legal spending authority, unless absolutely necessary, the City will not exhaust all of that budget
authority and will have a carryover in those Fund�.
For budgeting purposes, staff routinely under estimates projected revenue and overestimates
projected expenditures as to maintain a balanced budget and maintain a surplus of budget
authority. For this reason, we budget a Transfer Out – Discretionary line item within the General
Fund. Should emergency circumstances require extra spending, funds budgeted here can be used,
and the Council has made use of this appropriation in the past for small not budgeted capital
projects or debt service shortfalls.
The City’s targeted General Fund unassigned fund balance is at least 30% of budgeted revenues.
The target amount is expressed as a goal, and may fluctuate from year to year in the normal
course of operations. The targeted minimum for the General Fund unrestricted fund balance is
17%, which represents the Government Finance Officers Association (GFOA) recommended
minimum of no less than 2 months of operating revenues/expenditures. The City’s operational
budget is projected to end fiscal year 2018 with an ending cash balance of $1,635,439 or 30% of
budgeted revenues.
LEGALLY ADOPTED BUDGET
FUND BALANCE 2019 2019 FUND BALANCE
January 1, 2019 NEW REVENUES EXPENSES December 31, 2019
General $ 2,680,772 $ 5,729,360 $ 6,174,068 $ 2,236,064
Bond & Interest 667,465 3,018,693 2,888,685 797,473
Water 1,173,188 2,332,001 2,554,162 951,027
Sewer 1,449,311 2,151,215 2,326,150 1,274,376
Streets 602,007 299,110 658,869 242,248
Solid Waste 148,773 500,000 600,000 48,773
Storm Water 83,407 85,400 71,000 97,807
Land Bank 467,894 474,065 420,000 521,959
TOTAL $ 7,272,817 $ 14,589,844 $ 15,692,934 $ 6,169,727
22
SUMMARY OF HISTORICAL REVENUES BY BUDGETED FUND
2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED
General $ 5,096,410 $5,337,003 $ 5,457,522 $ 5,729,360
Bond & Interest 2,139,250 2,576,675 2,699,399 3,018,693
Water 1,948,412 2,299,022 2,241,000 2,332,001
Sewer 1,948,412 2,136,693 1,947,600 2,151,215
Streets 481,915 891,309 679,670 299,110
Solid Waste 366,995 487,102 460,000 500,000
Storm Water 26,344 77,288 75,000 85,400
Land Bank 938,394 509,156 150,000 474,065
TOTAL $12,946,132 $14,314,248 $13,710,191 $14,589,844
SUMMARY OF HISTORICAL EXPENDITURES BY BUDGETED FUND
2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED
General $ 5,649,069 $ 5,126,140 $ 5,962,601 $ 6,174,068
Bond & Interest 2,288,171 2,445,507 2,696,473 2,888,685
Water 2,131,969 2,125,587 2,241,231 2,554,162
Sewer 1,787,996 1,708,890 2,123,200 2,326,150
Streets 364,288 584,907 758,819 658,869
Solid Waste 213,250 362,074 560,000 600,000
Storm Water 0 24,225 71,000 71,000
Land Bank 398,996 381,027 415,000 420,000
TOTAL $12,833,739 $12,758,357 $14,828,324 $ 15,692,934
23
REVENUE BY TYPE 2019 EXPENDITURE BY TYPE 2019
FOR BUDGETED FUNDS ADOPTED FOR BUDGETED FUNDS ADOPTED
Fund Balance $ 6,169,727 G? Bond Debt Service 2,888,685
Property Tax 2,775,180 Personnel 2,818,500
Water Utility Income 2,332,001 Contractual 1,470,209
Sewer Utility Income 2,151,215 Transfer To PBC Trustee Fund 1,410,534
Special Assessments 1,866,871 Transfer To Bond & Interest 1,151,821
Interfund Transfers 1,475,887 Commodities 1,090,616
County Sales Tax 1,208,190 Sewer Debt Service 741,662
Franchise Fees 664,000 Special Assessments & Taxes 629,000
Solid Waste Utility Income 500,000 Water Debt Service 602,246
Other Taxes 420,940 Water Purchased 550,000
Fuel Taxes 299,110 Solid Waste Expenditures 500,000
Permits & Licenses 254,850 Transfer To CIP 500,000
Fines & Fees 171,000 Sewer Treatment 450,000
Land Sales 150,000 Transfer To Equipment Res. 400,000
Stormwater Utility Income 85,400 Transfer To Land Bank 324,065
Other Income 71,200 Capital Outlay 94,596
Recreation 66,000 Storm Water Expenditures 71,000
Grants 58,000
Pool 40,000
TOTAL $ 14,589,844 TOTAL $ 15,692,934
24
���������
25
GENERAL FUND: REVENUERevenues for the City of Bel Aire can be divided into nine categories: Taxes, Franchise Fees,
Fines & Fees, Permits & Licenses, Recreation Fees, Pool Fees, Grants, Land Sales and Other
Income. Revenue projections are based on historical trends as well as anticipated future changes.
Total new General Fund revenues for 2019 are projected at $5,775,180. Bel Aire’s primary
revenue sources are tax revenues which are projected to total $4,404,310 or 77 percent of new
General Fund revenues for 2019. Property taxes represent 63 percent of all tax revenues and 48
percent of overall new revenues in the General Fund. Sales tax accounts for 27 percent of all tax
revenues and 21 percent of overall new revenues. Overall, property values rose by 7.43% due to
new construction and reappraisal growth. Actual property tax revenues for 2017 totaled
$2,353,946. Actual sales tax revenues for 2017 were higher than anticipated, totaling $1,174,000.
2018 sales tax revenues were budgeted at $1,184,500 and are on track to meet that amount by the
end of the year. Projections for 2019 are forecasted at $1,208,190.
In 2016, residential land sale revenue were moved out of the General Fund and into the Land
Bank Fund. Industrial land sale proceeds will continue to be sent directly to principal repayment
and are not included in the revenue budget. Franchise Fees are paid by cable, phone, gas and
electric utilities for the right to use public rights-of-way and infrastructure to provide service in
the City. Fines & Fees are a direct result of violations of municipal ordinances and court process.
In addition to the basic court fines, several fees are charged to violators.
Revenue categories as a percent of revenues are presented below. A detailed list of all revenue
line items is presented on page 29.
$106,000
$129,200
$171,000
$254,850
$664,000
$2,775,180 $1,208,190 $420,940
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000
Recreation
Grants & Other
Fines & Fees
Permits & Licenses
Franchise Fees
Taxes
General Fund Revenues
Property Tax Sales Tax Other Tax
26
LINE ITEM BUDGET: GENERAL FUND REVENUES�2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED AD VALOREM TAX 2,176,783 2,353,946 2,583,163 2,775,180
DELINQUENT TAX 31,587 27,816 40,000 30,000
PILOT FEES 14,500 17,000 17,500 17,500
MOTOR VEHICLE TAX 379,619 386,575 342,739 360,143
RECREATION VEHICLE TAX 2,060 2,586 2,046 2,554
16/20M VEHICLE TAX 174 149 183 250
WATERCRAFT TAX 1,156 1,344 1,000 1,458
KCOVRS CMV TAX 9,508 10,120 10,341 9,035
COUNTY SALES TAX 1,153,248 1,174,000 1,184,500 1,208,190
TAXES TOTAL 3,768,635 3,973,535 4,181,472 4,404,310
WATER FRANCHISE FEE 0 0 50,000 100,000
ELECTRIC FRANCHISE FEE 306,925 303,278 309,000 309,000
SEWER FRANCHISE FEE 50,000 0 100,000 100,000
GAS SERVICE FRANCHISE FEE 64,964 78,973 60,000 75,000
TELEPHONE FRANCHISE FEE 14,279 5,863 30,000 5,000
CABLE TV FRANCHISE FEE 73,840 79,624 60,000 75,000
FRANCHISE TOTAL 510,007 467,738 609,000 664,000
COURT FINES 110,136 192,876 110,000 110,000
COURT COSTS 39,709 78,795 42,000 42,000
LAW ENFORCE TRAIN FEE 4,126 8,174 4,000 4,000
COURT SYSTEM IMP FEE 2,484 4,919 3,000 3,000
COURT SVCS ASSESSED FEE 2,483 4,865 3,000 3,000
JAIL FEE REIMBURSEMENTS 5,864 3,556 5,000 5,000
FINGERPRINTING FEE 1,125 1,860 500 500
POLICE REPORT FEES 2,615 2,931 3,000 3,000
FALSE ALARM FEES 0 0 500 500
FINES & FEES TOTAL 168,541 297,976 171,000 171,000
BUILDING PERMITS 119,898 109,565 150,000 110,000
ZONING,PLATTING,VARIANCE 5,640 4,240 1,000 4,000
CONTRACTORS LICENSES 24,450 19,750 25,000 20,000
ADMINISTRATIVE FEES 222,102 175,716 100,000 100,000
BUSINESS LICENSES 3,250 3,900 3,000 3,000
COMMUNITY ROOM RENTAL 2,270 1,770 2,000 2,000
ANIMAL LICENSES/PERMITS 3,090 3,950 3,000 3,500
GARAGE SALES 354 168 350 350
FIREWORKS PERMITS 12,200 12,000 10,000 12,000
PERMITS & LICENSES TOTAL 393,254 331,059 294,350 254,850
27
(TABLE CONTINUED)
2016 2017 2018 2019ACTUAL ACTUAL ADOPTED ADOPTED
RECREATION PROGRAM FEES 50,782 44,940 52,000 50,000
RECREATION DAY FEES/PASS 4,665 4,398 5,000 5,000
RECREATION FAC RENTAL INC 6,280 8,025 10,000 10,000
RECREATION CONCESSIONS 3,440 1,513 200 1,000
RECREATION MISC FEES 0 1,823 0 0
RECREATION TOTAL 65,167 60,698 67,200 66,000
CP POOL - DAY FEES 8,362 6,357 7,000 7,000
CP POOL - PROGRAMS/LESSONS 7,193 7,721 6,000 6,000
CP POOL - MEMBERSHIPS 3,493 3,548 4,000 4,000
CP POOL - CONCESSIONS 0 948 0 500
CP POOL - FACILITY RENTALS 3,900 1,679 2,000 2,500
CP POOL - HOA DUES/PAYMENTS 20,955 23,265 18,000 20,000
POOL TOTAL 43,902 43,516 37,000 40,000
BUREAU OF JUSTICE - VEST PRO 24,970 15,598 0 10,000
GRANTS-SG CO DEPT AGING 18,000 14,396 38,500 18,000
GRANTS-USD259/SRO PD 20,703 20,298 0 30,000
GRANTS-PD SALARY (CLK/TCK) 0 0 3,000 0
GRANTS- KDHE WASTE TIRE 12,044 0 0 0
GRANTS TOTAL 75,717 50,292 41,500 58,000
DONATIONS 1,680 440 0 200
INTEREST ON INVESTMENTS 2,357 11,016 1,000 15,000
LEASE PYMT/OLD CITY HALL BLD 35,821 35,589 36,000 35,000
LEASE PMNTS/SPRINT TOWER 8,104 8,346 7,000 8,000
MISC. INCOME 2,655 4,681 2,000 3,000
MISC. REIMBURSEMENTS 10,777 45,236 10,000 10,000
SALES OF EQUIPMENT 9,794 6,881 0 0
MISC. TOTAL 71,188 112,188 56,000 71,200
TRANSFER IN 0 0 0 0
GENERAL FUND NEW REVENUES: 5,096,411 5,337,003 5,457,522 5,729,360
28
GENERAL FUND: EXPENDITURES
Expenditure projections are based on historical trends as well as anticipated future changes. The
City maintains 12 General Fund Departments. Debt service costs, taxes, special assessments, and
other costs associated with the land the City owns along with other Public Building Commission
(PBC) debt payment for City Hall and the Central Park Pool total $2.7 million. This accounts for
43% of the City’s General Fund total expenditures. All debt service payments are budgeted as a
transfer from the General Fund to our Bond and Interest and Public Building Commission Funds.
Land Debt Service Payment: $ 1,039,181
Special Assessments & Taxes: 579,000
City Hall & Pool Debt Payment: 371,353
Related GO Bond Debt Service Payment: 310,309
Other Land Related Contractual Expenses: 68,600
Budget Authority for Debt Reserve Transfer: 300,000
Total: $ 2,668,443
57% of the budget covers all other General Fund operating costs and one-time transfers.
The 2019 Budget includes a $200,000 one-time transfer to the Capital Improvement Reserve
Fund and a $200,000 one-time transfer to the Equipment Reserve Fund.
Total General Fund expenditures for 2019 are $6,174,068. The City’s General Fund operating
budget is projected to end fiscal year 2019 with an ending cash balance of $2,236,064 or 39% of
budgeted revenues.
$31,500
$47,283
$53,450
$112,000
$168,850
$196,083
$201,500
$214,000
$327,200
$701,459
$1,052,300
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000
Senior Center:
Mayor & Council:
Pool:
Community Development:
Municipal Court:
Parks & Grounds:
Planning and Zoning:
Non-Departmental:
Recreation:
Administration:
Police:
29
GENERAL FUND: ADMINISTRATION
The mission of the Administration Department is to assist all departments, carry out City Council
policies, safeguard the City’s financial resources and provide outstanding customer service. The
City Manager, as the Chief Administrative Officer of the City, is charged with carrying out the
Council’s policies and decisions to ensure the entire community is being effectively and
efficiently served. Department heads report directly to the City Manager.
The Administration Department is comprised of the City Manager, City Attorney, Director of
Finance, Director of Communications (one full-time position expense transferred from
Community Development Department for the 2019 Budget), City Treasurer, Administrative
Assistant, and City Clerk/Communications Coordinator (one part-time position expense
transferred from the Planning and Zoning Department for the 2019 Budget). Personnel costs are
the largest expense for the Administration Department.
Major Accomplishments for FY 2018: � Worked with the newly elected City Council to define existing policy and procedures.
� Included a Five Year Financial Forecast in the 2019 budget process.
� Helped establish the K-254 Corridor Development Association.
� Sold over $500,000 dollars in land and attracted a major senior residential development
project to the area.
Goals and Objectives for FY2019:
� Continue to look for ways to keep costs down and reorganize to effectively deliver
services.
� Work with City Council to complete a comprehensive strategic planning process that sets
the direction for the community.
� Assist department heads in formulating and accomplishing goals that align with the
organization’s comprehensive strategic plan.
� Increase communications with citizens and market the City’s available land.
$10,000
$26,000
$19,000
$646,150
Capital Outlay
Commodities
Contractual
Personnel
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
30
ADMINISTRATION 2016 2017 2018 2019EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 342,619 344,727 372,000 454,000
OVERTIME CONTINGENCY 1,801 2,920 1,800 4,000
FICA 25,883 27,219 36,100 36,000
KPERS 28,418 33,714 33,900 45,000
457 7,192 7,515 8,000 8,000
HEALTH & DENTAL 48,683 65,200 69,110 96,000
WORKMANS COMP -50 480 800 1,300
UNEMPLOYMENT EXPENSE -99 282 800 1,850
PERSONNEL TOTAL 454,448 482,057 522,510 646,150
CONTRACTUAL SERVICES 1,212 1,901 22,000 2,500
LIABILITY INSURANCE 4,284 5,474 5,500 6,000
LEGAL SERVICES 3,000 297 0 0
COMMUNICATION SERVICES 3,894 4,396 4,500 4,500
UTILITIES 5,726 4,478 6,500 6,000
CONTRACTUAL TOTAL 18,116 16,547 38,500 19,000
PROFESSIONAL DUES/MEMBER 2,134 2,962 2,000 2,000
OFFICE SUPPLIES 5,307 7,677 6,000 6,000
OFFICE EQUIP/FURNISHINGS 612 2,020 4,000 4,000
POSTAGE 1,356 1,502 2,000 2,000
PUBLICATIONS 2,702 2,949 2,000 2,000
MERCHANDISE TSF OR DIST 182 495 0 0
TRAINING & CONFERENCES 4,902 7,145 10,000 10,000
COMMODITIES TOTAL 17,195 24,750 26,000 26,000
DEVELOPMENT RESOURCES 0 0 10,000 10,000
CAPITAL OUTLAY TOTAL 0 0 10,000 10,000
ADMINISTRATION DEPT TOTAL 489,759 523,353 597,010 701,150
31
GENERAL FUND: PLANNING & ZONING
The mission of the Planning & Zoning Department is to ensure public safety through
enforcement of proper building codes and licenses, and enforce regulations regarding businesses
within the City. Planning & Zoning is responsible for the administration of the zoning and
subdivision codes, as well as long-range community planning.
This budget includes salary for one full-time Planning and Zoning Director, one full-time Code
Enforcement Officer and a part-time Planning and Zoning Assistant position. Responsibilities of
the Planning & Zoning Department include issuing permits, examine building plans, and review
compliance with zoning regulations. The Planning and Zoning Department is also responsible for
all private and public building construction inspections and to enforce the City’s codes in all
areas.
The Director serves as the Zoning Official and assists with the Planning Commission agenda,
corresponds with developers, reviews plats and works with zoning requests. All maintenance of
the City Hall building is overseen by this position as well.
Major Accomplishments for FY 2018: � Hired and trained new full-time Code Enforcement Officer.
� Increased compliance with codes and irrigation system overflow inspections by 20%.
Goals and Objectives for FY2019:
� Enforce compliance with City regulations and ordinances including those pertaining to
zoning, land use, nuisance housing, building codes, health and safety and other matters of
public concern.
� Receive and respond to citizens and developers City zoning and related municipal codes
and ordinances questions
� Develop an interactive map for the Department and our community.
$0
$16,000
$17,000
$168,500
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
32
PLANNING & ZONING 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 85,361 129,511 138,000 117,000
OVERTIME CONTINGENCY 2,794 2,507 2,800 2,000
FICA 6,520 9,833 10,500 9,000
KPERS 3,655 6,972 13,000 12,000
HEALTH/DENTAL/LIFE EXPENSE 15,255 14,761 18,000 15,000
WORKMANS COMP 0 5,920 9,500 13,000
UNEMPLOYMENT EXPENSE 59 66 400 500
PERSONNEL TOTAL 113,643 169,570 192,200 168,500
CONTRACTUAL SERVICES 2,490 5,637 3,500 6,000
LIABILITY INSURANCE 2,200 3,320 4,500 4,500
ENGINEERING SERVICES 0 0 2,000 2,000
COMMUNICATION SERVICES 1,216 1,787 2,000 2,000
UTILITIES 1,978 1,551 3,000 2,500
CONTRACTUAL TOTAL 7,884 12,295 15,000 17,000
PROFESSIONAL DUES/MEMBER 415 601 600 700
OFFICE SUPPLIES 617 1,265 1,000 1,500
OFFICE EQUIP/FURNISHINGS 0 1,867 3,500 2,000
POSTAGE 1,954 1,304 5,000 3,000
PUBLICATIONS/PRINTINGS 1,776 545 2,000 2,000
SAFETY EQUIP & SUPPLIES 0 0 1,000 1,000
UNIFORMS/CLOTHING 303 359 300 300
TRAINING & CONFERENCES 588 1,045 3,000 3,000
VEHICLE/EQUIP MAINT/REP 567 759 500 1,000
PETROLEUM PRODUCTS 523 780 1,500 1,500
COMMODITIES TOTAL 6,742 8,526 18,400 16,000
VEH/EQUIP LEASE/PURCHASE 0 0 0 0
CAPITAL OUTLAY TOTAL 0 0 0 0
PLANNING & ZONING TOTAL 128,270 190,391 225,600 201,500
33
GENERAL FUND: COURT
The mission of the Municipal Court Department is to provide a strong municipal court system
for the trial and interpretation of municipal regulations. The Municipal Court strives to ensure
that individuals charged with violating Bel Aire ordinances receive a fair and just hearing. The
Court adjudicates City traffic violations, DUI charges, shoplifting and parking violations. The
Court also processes City code violations, such as those involving neglected properties.This
budget includes salary for one full-time Court Clerk/ Police Clerk, one part-time Assistant Court
Clerk, one contracted Municipal Judge, and one contracted City Prosecutor.
Goals and Objectives for FY2019:
� Continually strive to improve performance in order to facilitate court proceedings
effectively.
$0
$4,600
$69,700
$94,550
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
34
COURT 2016 2017 2018 2019EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 45,626 36,093 39,000 61,000
OVERTIME CONTINGENCY 919 1,342 750 2,000
FICA 3,507 2,721 3,000 4,600
KPERS 3,253 3,270 3,500 6,000
HEALTH/DENTAL/LIFE EXPENSE 764 11,623 13,000 20,500
WORKMANS COMP 0 94 100 200
UNEMPLOYMENT EXPENSE 33 37 150 250
PERSONNEL TOTAL 54,102 55,180 59,500 94,550
CONTRACTUAL SERVICES 2,118 1,507 1,000 2,000
COURT APPT ATTY/INVESTIG 4,884 8,776 5,000 10,000
LIABILITY INSURANCE 971 1,076 1,000 1,500 LEGAL SERVICES (Judge, Prosecutor & ProTem) 8,922 22,630 25,000 25,000
COMMUNICATION SERVICES 567 563 700 700
UTILITIES 1,432 1,119 2,000 2,000
REFUNDS 0 2,946 0 3,500
INMATE HOUSING FEES 21,990 17,224 25,000 25,000
CONTRACTUAL TOTAL 40,883 55,841 59,700 69,700
PROFESSIONAL DUES/MEMBER 125 43 100 100
OFFICE SUPPLIES 899 1,167 1,000 1,000
OFFICE EQUIP/FURNISHINGS 207 54 1,000 1,000
POSTAGE 877 931 1,500 1,500
PUBLICATIONS/PRINTING 200 497 300 500
TRAINING & CONFERENCES 717 50 700 500
COMMODITIES TOTAL 3,025 2,741 4,600 4,600
MUNICIPAL COURT DEPT TOTAL 98,010 113,762 123,800 168,850
35
GENERAL FUND: PARKS & GROUNDS
The mission of the Parks & Grounds Department is to provide a cost-effective system of safe and
attractive parks and grounds that enhance the quality of life for the residents and visitors of Bel
Aire. The Parks & Grounds Department maintains eight public parks, eight lakes, 17 miles of
roadway ditches, over 500 trees in public areas, Central Park Pool and vacant lots in Central
Park, rights-of-way and public buildings and grounds. Parks staff are also responsible for
equipment installation, maintenance, landscaping, building repairs and other issues or special
projects as they arise.
Personnel is the largest expenditure category for the Parks & Grounds Department due to the
labor intensive nature of the department. Personnel are partially paid through the Street Fund for
maintenance of public rights-of-way.
Major Accomplishments for FY 2018: � Installed irrigation ���Central Park
� Installed updated playground equipment in various locations.
� Painted 5 trees.
� Treated and trimmed 40 City owned trees
Goals and Objectives for FY2019: � Maintain safe play equipment in City parks
� Manage Community Brush Drop-off Site
$5,500
$37,583
$40,500
$112,500
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
36
PARKS & GROUNDS 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 91,401 106,424 76,000 78,000
OVERTIME CONTINGENCY 4,353 3,558 1,600 3,000
FICA 7,224 8,620 5,800 6,000
KPERS 8,906 10,007 7,000 7,700
HEALTH/DENTAL/LIFE EXPENSE 11,948 15,849 14,000 14,500
WORKMANS COMP 0 1,981 2,300 3,000
UNEMPLOYMENT EXPENSE 53 59 200 300
PERSONNEL TOTAL 123,886 146,497 106,900 112,500
MOWING SERVICES 14,227 12,622 25,000 20,000
CONTRACTUAL SERVICES 3,688 3,504 4,000 4,000
LIABILITY INSURANCE 7,500 9,732 8,500 10,000
COMMUNICATION SERVICES 1,280 1,278 1,500 1,500
UTILITIES 4,902 4,339 6,000 5,000
CONTRACTUAL TOTAL 31,597 31,475 45,000 40,500
AGRICULT/HORTICULT SUPPLY 2,314 1,060 4,000 4,000
TREES 4,022 2,981 2,500 3,000
CHEMICALS 928 793 1,200 1,200
IRRIGATION SYSTEMS 3,424 3,249 5,000 4,000
PROFESSIONAL DUES/MEMBER 50 50 300 300
COMMUNITY RELATIONS/EVENT 0 49 1,000 500
OFFICE SUPPLIES 408 535 500 500
OFFICE EQUIP/FURNISHINGS 162 40 500 500
POSTAGE 2 0 0 0
PUBLICATIONS 85 176 0 0
CLEANING SUPPLIES 21 15 400 400
SAFETY EQUIP & SUPPLIES 705 542 1,000 1,000
UNIFORMS/CLOTHING 160 317 700 700
TRAINING & CONFERENCES 751 271 800 800
MINOR EQUIP: TOOLS,ELECT 2,157 544 3,000 3,000
VEH/EQUIP REPAIRS & MAINT 7,849 9,741 7,500 8,000
PETROLEUM PRODUCTS 3,600 3,599 8,500 5,000
CONSTRUCTION MATERIAL/SUP 1,384 779 1,000 1,000
SIGNS, MATERIAL/SUPPLIES 195 25 2,000 2,000
RECREATIONAL EQUIP/SUPPLY 302 610 1,500 1,500
COMMODITIES TOTAL 28,518 25,376 41,400 37,400
37
VEH/EQUIP LEASE/PURCHASES 0 0 3,000 0
PARK EQUIPMENT 0 0 1,000 2,500
PUBLIC GROUNDS IMPROVEMENT 8,777 42,004 2,000 3,000
CAPITAL OUTLAY TOTAL 8,777 42,004 6,000 5,500
PARKS & GROUNDS DEPT TOTAL 192,778 245,352 199,300 195,900
38
GENERAL FUND: POLICE
The mission of the Police Department is to create a partnership with the community by providing
professional Law Enforcement services emphasizing quality of life, individual rights, dignity,
respect and confidence within the community. The Bel Aire Police Department is committed to
excellence through positive interaction with the community to ensure quality of service. The
Department strives to protect life and property, prevent crime, apprehend criminals, recover
stolen property, enforce regulatory ordinances and provide general police services.
13.5 commissioned police personnel provide 24 hour coverage 7 days per week.
Major Accomplishments for FY 2018: � In 2018, The City of Bel Aire was ranked as the #] safest town in Kansas by SafeWise.�
This ranking comes just after being ranked the #1 safest small town by Movoto Real�
Estate. To compile this report, SafeWise used the most recent FBI crime data from 2012�
to analyze and rank these cities, which all have a minimum population of 4,000 people.�
They look at crimes from the FBI Unified Crime Report (UCR) reported crime data,�
which focuses on violent crimes (aggravated assault, forcible rape, murder, and robbery)�
as well as property crimes (arson, burglary, larceny-theft, and motor vehicle theft).
Goals and Objectives for FY2019: � Maintain commitment to excellence in police training, crime prevention, and overall
enforcement.
� Identify problems that have the potential for becoming intrusions in the community
� Create and maintain a feeling of security in the community
� Develop and implement strategies and programs which enhance delivery of police service
in the community
$0
$102,500
$77,000
$872,800
Capital Outlay
Commodities
Contractual
Personnel
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
39
POLICE DEPARTMENT 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 476,103 537,197 560,000 570,000
OVERTIME CONTINGENCY 25,919 33,994 23,000 40,000
FICA 37,328 42,229 43,000 43,000
KPERS 46,097 48,853 50,000 53,500
HEALTH/DENTAL/LIFE EXPENSE 84,896 89,592 104,000 146,000
WORKMANS COMP 0 8,163 13,500 18,000
UNEMPLOYMENT EXPENSE 363 407 1,500 2,300
PERSONNEL TOTAL 670,706 760,435 795,000 872,800
ANIMAL CONTROL 227 1,295 2,000 2,000
COMPUTER SUPPORT SERVICES 0 898 0 1,500
CONTRACTUAL SERVICES 23,729 25,901 23,000 23,000
LIABILITY INSURANCE 28,839 27,991 30,000 30,000
MEDICAL SERVICES 1,730 429 2,000 2,000
COMMUNICATION SERVICES 7,844 7,989 9,000 9,000
UTILITIES 9,339 7,302 9,500 9,500
CONTRACTUAL TOTAL 71,709 71,806 75,500 77,000
PROFESSIONAL DUES/MEMBER 470 385 1,000 1,000
COMMUNITY RELATIONS/EVENT 1,244 1,794 1,500 2,000
OFFICE SUPPLIES 2,907 5,553 2,500 2,500
OFFICE EQUIP/FURNISHINGS 349 1,557 3,000 3,000
POSTAGE 339 805 1,000 1,000
PRINTING & PUBLICATIONS 1,665 1,227 2,000 2,000
SAFETY EQUIP & SUPPLIES 5,638 4,984 6,000 6,000
MERCHANDISE TSF OR DIST 969 205 1,000 500
UNIFORMS/CLOTHING 10,837 9,985 10,000 10,000
TRAINING & CONFERENCES 3,838 4,460 12,000 15,500
VEH/EQUIP REPAIRS & MAINT 11,780 20,330 12,000 12,000
PETROLEUM PRODUCTS 16,261 25,624 30,000 30,000
CONSTRUCTION MATERIAL/SUP 0 0 0 0
POLICE SUPPLIES 12,507 3,433 12,000 17,000
COMMODITIES TOTAL 68,803 80,343 94,000 102,500
VEH/EQUIP LEASE/PURCHASE 12,169 12,169 21,584 0
CAPITAL OUTLAY TOTAL 12,169 12,169 21,584 0
POLICE DEPT TOTAL 823,386 924,753 986,084 1,052,300
40
GENERAL FUND: RECREATION
The mission of the Recreation Department is to foster community heritage by providing quality
recreational opportunities that promote physical fitness and strong human relationships while
maintaining excellent customer service.
The Recreation Center offers a 15,000 square foot facility with gymnasium, activity rooms,
fitness center and game room. In addition, multiple fields for baseball, softball, flag football and
soccer are locatedon the property. A playground, walking trail and green space are also
available for residents. More than 25,000 people attend the Recreation Center annually. The
Recreation Department also oversees the Central Park Pool.
The Personnel budget includes the salary for one full-time Recreation Director, two full-time
Recreation Coordinators and two part-time staff members. The largest Contractual expenses are
for program instructors and utilities.
Major Accomplishments for FY 2018: � Restricted �taffing and revised Assistant Director position into two Recreation�
Coordinator positions
� Assumed role of organizing special events
� Revived dance, tumbling, and cheer programs
� Began construction of a new program office
� Implemented new youth sport� team formation guidelines to improve parity in leagues
� Implemented new pickle ball program for seniors
Goals and Objectives for FY2019:
$0
$37,000
$60,000
Capital Outlay
Commodities
Contractual
� Refresh youth sport� progra��
� Offer programs to include more age groups
� Implement online and credit card payment services�
� Personnel� ��$230,200
$0 $100,000 $200,000 $300,000 $400,000 $500,000
41
RECREATION DEPARTMENT 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 170,090 144,975 180,000 170,000
OVERTIME CONTINGENCY 952 67 0 2,500
FICA 13,486 10,914 15,000 13,000
KPERS 12,438 9,214 10,000 14,000
HEALTH/DENTAL/LIFE EXPENSE 28,207 19,212 21,000 27,500
WORKMANS COMP 0 1,216 1,700 2,500
UNEMPLOYMENT EXPENSE 103 115 400 700
PERSONNEL TOTAL 225,276 185,712 228,100 230,200
CONTRACTUAL SERVICES 6,677 6,052 5,000 5,000
LIABILITY INSURANCE 8,803 10,786 11,000 11,000
RECREATION INSTRUCTORS 13,705 16,642 15,000 18,000
JANITORIAL SERVICES 0 4,944 1,500 10,000
COMMUNICATIONS SERVICES 3,527 3,346 4,000 4,000
UTILITIES 10,990 10,287 14,000 12,000
CONTRACTUAL TOTAL 43,702 52,058 50,500 60,000
AGRICULT/HORTICULT SUPPLY 4,612 3,371 5,000 3,500
CHEMICALS 4,444 3,640 4,500 4,500
PROFESSIONAL DUES/MEMBER 490 550 700 700
COMMUNITY RELATIONS/EVENT 1,037 0 1,000 1,000
OFFICE SUPPLIES 1,096 2,269 1,000 1,000
OFFICE EQUIP/FURNISHINGS 200 86 500 500
POSTAGE 29 20 200 200
PUBLICATIONS 51 750 200 200
CLEANING SUPPLIES 1,699 1,548 2,000 2,000
MERCHANDISE TSF OR DIST 6,454 5,158 6,500 6,500
UNIFORMS/CLOTHING 430 34 600 600
TRAINING & CONFERENCES 2,018 792 1,200 2,000
MINOR EQUIP: TOOLS,ELECT 954 819 2,000 2,000
VEH/EQUIP REPAIRS & MAINT 1,677 775 3,000 3,000
PETROLEUM PRODUCTS 1,355 1,230 3,000 2,000
CONSTRUCTION MATERIAL/SUP 572 1,857 3,000 3,000
SIGNS & MATERIALS 84 0 300 300
RECREATIONAL EQUIP/SUPPLY 3,508 3,095 4,000 4,000
COMMODITIES TOTAL 30,710 25,991 38,700 37,000
42
BUILDINGS/FIXED EQUIPMENT 0 5,109 0 0
RECREATION EQUIPMENT 14,721 0 0 0
CAPITAL OUTLAY TOTAL 14,721 5,109 0 0
RECREATION DEPT TOTAL 314,410 268,870 317,300 327,200
43
GENERAL FUND: CENTRAL PARK POOL
The Mission of the Central Park Pool Department is to provide high quality of life, help to
market the lots in Central Park, maintain the Central Park Pool to the highest standard, maintain
the grounds, trees and shrubbery of the area and provide an enjoyable opportunity for swimming.
The Central Park Pool is operated by the City of Bel Aire and is open to the public. Anyone can
utilize the pool through daily fees or annual memberships.
Operations of the pool are roughly from the end of school in May until school starts in August,
weather permitting. The pool offers open swimming, swimming lessons and is available for rent.
All members of the Central Park Home Owner’s Association enjoy family memberships to the
pool as part of their annual dues.
Personnel in this department are all seasonal pool staff. The Recreation Director oversees daily
operations and staff at the pool. Parks & Grounds staff maintain landscaping of the public areas
for this department.
$0
$11,950
$14,500
$27,000
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
44
CENTRAL PARK POOL 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
POOL SALARIES 20,210 19,758 23,000 24,000
FICA 1,546 1,512 1,800 1,800
WORKMANS COMP 0 413 700 1,100
UNEMPLOYMENT EXPENSE 0 0 50 100
PERSONNEL TOTAL 21,756 21,683 25,550 27,000
CONTRACTUAL SERVICES 7,783 9,199 8,000 8,000
LIABILITY INSURANCE 1,450 1,528 1,500 2,000
MEDICAL SERVICES 240 320 500 500
COMMUNICATION SERVICES 579 45 500 500
UTILITIES 2,971 2,750 3,500 3,500
CONTRACTUAL TOTAL 13,022 13,842 14,000 14,500
AG/HORTICULTURE SUPPLY 0 201 500 500
CHEMICALS 3,703 5,472 4,500 5,500
OFFICE SUPPLIES 406 833 200 1,500
CLEANING SUPPLIES 257 229 400 400
UNIFORMS/CLOTHING 233 553 400 400
TRAINING/CONFERENCES 185 0 250 250
MERCHANDISE TSF OR DIST 0 0 500 500
MINOR EQUIP/TOOLS 171 900 1,500 1,500
EQUIPMENT REPAIRS/MAINT 40 0 1,000 1,000
RECREATIONAL EQUIP/SUPPLY 107 98 400 400
COMMODITIES TOTAL 5,101 8,285 9,650 11,950
GROUNDS IMPROVEMENTS 0 0 0 0
CENTRAL PARK POOL TOTAL 39,879 43,810 49,200 53,450
45
GENERAL FUND: SENIORS
The mission of the Senior Department is to enrich the lives of seniors in the Bel Aire area
through programs and services that will improve health and wellness, decrease isolation and
provide social, economic and educational opportunities. The Senior Center, located in City Hall,
and the Bel Aire Recreation Center serve as gathering places where citizens come for fellowship,
information and recreation.
The City receives an annual grant from Sedgwick County to help fund the management and
activities of the Senior Department. The 2019 revenue budget includes $18,000 of revenue from
this grant. County contracts are negotiated on an annual basis.
Salary for a part-time Senior Coordinator position is funded through this department and
supervised by the Director of Finance and Administration. This position assists with record
keeping, planning of activities, scheduling events for seniors.
Funding for instructors and utility expenses are the largest Contractual obligations in the Senior
budget. Instructors provide educational and entertaining programming required by the terms of
the Sedgwick County contract.
Goals and Objectives for FY2019: � Increase participation in programs and opportunities.
� Continue to serve an aging population with social, recreational, active and healthy
opportunity.
$0
$9,400
$5,600
$16,500
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
46
SENIOR CENTER 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 16,500 16,500 40,000 16,500
OVERTIME 0 0 800 0
FICA 600 0 3,500 0
KPERS 0 0 4,000 0
HEALTH/DENTAL/LIFE EXPENSE 0 0 11,500 0
WORKMANS COMP 50 0 400 0
UNEMPLOYMENT EXPENSE 350 0 350 0
PERSONNEL TOTAL 17,500 16,500 60,550 16,500
COMPUTER SUPPORT 0 0 0 0
LIABILITY INSURANCE 486 616 1,100 1,100
INSTRUCTORS 75 150 1,000 1,000
COMMUNICATIONS SVCS 1,009 939 1,000 1,000
UTILITIES 2,796 2,188 2,500 2,500
REIMBURSEMENTS 0 0 0 0
CONTRACTUAL TOTAL 4,365 3,893 5,600 5,600
DUES & MEMBERSHIPS 199 145 200 200
COMM RELATIONS/EVENTS 3,917 3,253 3,000 3,000
SENIOR GRANTS/DONATIONS 2,500 2,500 4,000 4,000
OFFICE SUPPLIES 339 177 500 500
OFFICE EQUIP/FURNISHINGS 1,242 15 500 500
POSTAGE 196 218 500 500
PUBLICATIONS 0 109 100 100
ADVERTISING/MARKETING 0 0 100 100
TRAINING & CONFERENCES 0 349 500 500
COMMODITIES TOTAL 8,393 6,766 9,400 9,400
SENIOR CENTER TOTAL 30,258 27,159 75,550 31,500
47
GENERAL FUND: MAYOR & COUNCIL
The mission of the Mayor and City Council is to provide legislative direction by adopting
policies and ordinances in accordance with the values of the community.
The City of Bel Aire is governed by the Council-Manager form of government. The Mayor
serves for two years and is not limited on the number of terms. Council Members are elected to
four year terms and are also not limited on the number of terms. Elections are held in November
of every odd numbered year. The Mayor and Council Members are elected at-large which means
that every citizen in the community has the opportunity to vote on the Mayor and every member
on the City Council.
Goals and Objectives for FY2019:
� Continue to operate the city in a fiscally responsible manner meeting the current and�
future need.
� Continue to work in partnership with others to enhance economic development in the�
city and the community.
$0
$19,000
$15,500
$12,600
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
48
MAYOR & COUNCIL 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 10,500 10,125 12,000 11,500
FICA 803 774 1,000 1,000
WORKMANS COMP 0 45 50 50
UNEMPLOYMENT EXPENSE 8 9 50 50
PERSONNEL TOTAL 11,311 10,953 13,100 12,600
CONTRACTUAL SERVICES 2,097 1,795 2,000 7,700
LIABILITY INSURANCE 2,428 2,516 2,500 3,600
COMMUNICATION SERVICES 2,236 1,613 2,200 2,700
UTILITIES 1,364 1,068 0 1,500
CONTRACTUAL TOTAL 8,124 6,991 6,700 15,500
PROFESSIONAL DUES/MEMBERSHIPS 3,351 4,658 5,500 7,000
COMM RELATIONS/EVENTS 131 176 0 0
OFFICE SUPPLIES 1,164 567 1,000 1,000
OFFICE EQUIP/FURNISHINGS 1,643 0 1,000 1,000
POSTAGE 180 5 400 400
PRINTING & PUBLICATIONS 1,078 1,960 2,000 2,000
MERCH FOR TSF OR DIST 546 1,207 600 600
TRAINING & CONFERENCES 2,935 4,573 3,000 7,000
COMMODITIES TOTAL 11,027 13,146 13,500 19,000
MAYOR & COUNCIL DEPT TOTAL 30,463 31,091 33,300 47,100
49
GENERAL FUND: NON-DEPARTMENTAL As its name implies, the Non-Departmental budget includes General Fund expenses that do not
apply to a single department, or miscellaneous expenses that are not associated with any of the
operating departments. Expenditures that do not directly fit into any specific departmental budget
and are considered in the service of the government at large are classified as Non-Departmental
expenses.
For 2019, the Non-Departmental contractual expenditures includes $30,000 to cover the City’s
mandatory auditing and other accounting costs, $50,000 for all information technology support,
and $25,000 for janitorial services.
The largest expenditure category in Non-Departmental is for Transfers Out totaling $771,353.
This amount includes $371,353 to transfer to the Public Building Commission Fund for the City
Hall and Central Park Pool annual debt payments, $200,000 for a transfer to the Capital
Improvement Reserve Fund and $200,000 for a transfer to the Equipment Reserve Fund.
$771,353
$10,000
$22,000
$182,000
$0
Transfer Out
Capital Outlay
Commodities
Contractual
Personnel
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
50
NON-DEPARTMENTAL 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
HEALTH/DENTAL/LIFE EXPENSES 10,603 6,000
6,000 0
PERSONNEL TOTAL 10,603 6,000 6,000 0
ACH TRANSFER FEES 375 375 400 500
UNCLAIMED PROPERTY 0 1,261 0 0
ACCOUNTING & AUDITING 28,575 29,260 30,000 32,000
ANIMAL CONTROL 0 0 0 0
COMPUTER SUPPORT SVCS 38,281 40,299 50,000 55,000
CONTRACTUAL SVCS 37,998 32,351 40,000 40,000
LIABILITY INSURANCE 0 17,203 12,000 20,000
JANITORIAL SVCS 18,916 21,405 25,000 30,000
COMMUNICATIONS SVCS 4,267 1,117 4,000 4,000
UTILITIES 2,214 288 500 500
CONTRACTUAL TOTAL 130,625 143,559 161,900 182,000
PROF DUES/MEMBERSHIP 2,165 4,461 0 0
COMM RELATIONS/EVENTS 454 2,160 500 500
OFFICE SUPPLIES 5,317 4,405 2,000 2,000
OFFICE EQUIP/FURNISHINGS 1,240 8,192 10,000 10,000
POSTAGE -304 115 0 0
CLEANING SUPPLIES 1,560 1,514 1,500 2,000
MERCHANDISE TSF OR DIST 209 2,721 1,000 3,000
VEHICLE MAINTENANCE/REPAIR 1,365 2,422 1,000 3,000
PETROLEUM PRODUCTS 571 979 1,000 1,500
COMMODITIES TOTAL 12,576 26,969 17,000 22,000
BUILDINGS/FIXED EQUIPMENT 0 1,752 5,000 5,000
PUBLIC GROUNDS IMPROVE 7,158 3,784 5,000 5,000
CAPITAL OUTLAY TOTAL 7,158 5,536 10,000 10,000
TRANSFER OUT
City Hall Debt (2014A) 404,023 48,225 269,700 266,200
Pool Debt (2014B) 102,399 0 103,153 105,153
TO Capital Improvement Reserve 150,000 250,000 50,000 200,000
TO Equipment Reserve 100,000 200,000 50,000 200,000
TO Street Fund 200,000 600,000 250,000 0
TRANSFERS OUT TOTAL 956,422 1,098,225 722,853 771,353
NON-DEPARTMENTAL TOTAL 1,117,385 1,280,289 917,753 985,353
51
GENERAL FUND: COMMUNITY DEVELOPMENT
The mission of the Community Development Department is to promote a sense of community
within Bel Aire through various events and through the City’s media presence. The department
also provides administrative support to the Bel Aire Area Chamber of Commerce which has been
incubated by the City since the organization formed in 2008.
The Community Development Department is primarily responsible for the management of the
City brand and image in the greater community. Included in this management are the collective
advertising and marketing of the city at large, trade shows and exhibitions in which the City
participates, community relations, events and promotional publications.
The 2018 Contractual budget includes $75,000 in new home buyer incentive rebates for the
program that started in 2012 and ended in 2016. The Commodities budget contains funding for
some of the City’s advertising expenses, publication printing and membership dues to regional
organizations including the Wichita Metro Chamber of Commerce, REAP and the Bel Aire
Chamber of Commerce.
$0
$35,500
$76,500
$0
Capital Outlay
Commodities
Contractual
Personnel
$0 $100,000 $200,000 $300,000 $400,000 $500,000
52
COMMUNITY DEVELOPMENT 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 43,808 49,248 51,000 0
OVERTIME 0 0 0 0
FICA 3,239 3,655 3,900 0
KPERS 4,112 4,300 4,700 0
HEALTH/DENTAL/LIFE EXPENSE 13,349 12,388 14,000 0
WORKMANS COMP 0 57 100 0
UNEMPLOYMENT EXPENSE 31 35 100 0
PERSONNEL TOTAL 64,539 69,682 73,800 0
COMPUTER SUPPORT SVCS 20 0 0 0
CONTRACTUAL SVCS 3,715 1,130 3,000 1,500
LIABILITY INSURANCE 2,150 2,708 1,100 0
COMMUNICATION SERVICES 378 595 500 0
UTILITIES 1,364 1,068 1,500 0
REIMBURSEMENTS 96,080 115,490 100,000 75,000
CONTRACTUAL TOTAL 103,707 120,991 106,100 76,500
PROF DUES/MEMBERSHIPS 1,608 851 3,000 3,000
COMM RELATIONS/EVENTS 9,336 5,812 9,000 12,000
OFFICE SUPPLIES 613 651 500 0
OFFICE EQUIP/FURNISHINGS 386 114 500 0
POSTAGE 11 0 500 500
PRINTING & PUBLICATIONS 10,720 5,903 10,000 10,000
ADVERTISING & MARKETING 7,223 6,199 7,500 7,500
MERCH FOR TRANS/DISTRIB 2,357 3,472 2,000 2,000
TRAINING & CONFERENCES 1,526 1,127 1,700 0
SIGNS MATERIALS & SUPPLIES 255 2,141 500 500
COMMODITIES TOTAL 34,035 26,269 35,200 35,500
COMMUNITY DEVELOPMENT RESOURCES 0 8,428 0 0
CAPITAL OUTLAY TOTAL 0 8,428 0 0
COMMUNITY DEVELOP TOTAL 202,281 225,369 215,100 112,000
53
GENERAL FUND: LAND
The mission of the Land Development Department is to provide clear financial management and
tracking of the City’s land development efforts. In order to capture a lower interest rate, the City
refinanced our land debt in June of 2017 through an $18.25 million Public Building Commission
(PBC) bond. Through this effort the city saved just under $2 million in budgetary savings by
refinancing at a lower interest rate. For 2019, the principal and interest payment is budgeted at
just over $1 million.
The City Council established a policy that requires all proceeds from any land sale inside the
Sunflower Commerce Park to be used as an extra principal payment on our land debt. From 2010
through 2017 the City has made $4,050,000 in extra principal prepayments as a result of
industrial land sales. This budgetary practice has saved the city $4,585,363 in interest payments
over the life of the bond and removed a year off the debt service payment schedule.
The Commodities budget contains the City’s portion of real estate taxes and special assessments
on City-owned land. Adding infrastructure needed for development to occur requires the City to
pay $220,000 in special assessments in 2019. Those obligations are reduced as the City is able to
sell more of the remaining land.
$1,999,490
$0
$244,000
$53,600
$0
Transfer Out
Capital Outlay
Commodities
Contractual
Personnel
$0 $500,000 $1,000,000 $1,500,000 $2,000,000
54
LAND 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
CONTRACTUAL SERVICES 2,034 19,870 25,000 30,000
CP 1 HOA EXPENSES 1,810 5,179 3,000 0
LANDING HOA EXPENSES 0 0 500 0
VILLAS AT CP4 EXPENSES 0 0 0 0
ELK CREEK HOA EXPENSES 0 0 0 0
LIABILITY INSURANCE 270 463 500 500
ENGINEERING 28,381 5,159 20,000 20,000
LEGAL SERVICES 870 0 0 0
UTILITIES 246 598 0 600
REIMBURSEMENTS 14 2,416 0 2,500
CONTRACTUAL TOTAL 33,624 33,685 49,000 53,600
PUBLICATIONS/PRINTING 366 1,334 0 0
ADVERTISING & MARKETING 209 16,779 5,000 15,000
REAL ESTATE TAXES 5,598 7,319 10,000 9,000
SPECIAL ASSESSMENTS 322,765 197,357 250,000 220,000
COMMODITIES TOTAL 328,938 222,788 265,000 244,000
TRANSFER OUT
Land Debt (2010A) 1,038,535 636,320 960,000 1,039,181
For Eco Devo Projects (2009A) 186,614 186,715 186,508 190,995
Elk Creek & Ind. Park (2012A) 58,295 59,619 54,400 59,818
CP3, Tierra Verde, USD 259 (2013D) 18,096 17,896 17,696 17,496
Street Projects (2017A) 0 0 150,000 0
KDOT Rail Loan 0 0 0 42,000
Tierra Verde/Other Specials Shortfall 133,088 94,918 250,000 350,000
Land Bank 385,000 0 0 0
Contingency 0 0 300,000 300,000
TRANSFERS OUT TOTAL 1,819,628 995,468 1,918,604 1,999,490
LAND DEPARTMENT TOTAL 2,182,191 1,251,941 2,232,604 2,297,090
55
����������������
56
MUNICIPAL UTILITIES AND SERVICES
The City owns its own municipal waterworks utility and sanitary sewer utility, including
treatment facilities owned and operated through the Chisholm Creek Utility Authority, under an
Interlocal Cooperation Agreement with the City of Park City, Kansas. Water is also obtained
through a contract with the City of Wichita. Natural gas, electric and telephone services are
provided by private utility companies.
LARGEST SYSTEM CUSTOMERS
CUSTOMER GALLONS PERCENT OF TOTAL
Catholic Care 23,289,700 8.15%
Broadstone 8,007,900 2.80%
Tree Top Nursery 5,134,400 1.80%
Perfection Builders 3,691,800 1.29%
Individual 3,225,000 1.13%
Irongate Development 1,603,000 0.56%
Courtyards at Elk Creek HOA 1,597,700 0.56%
USD 259 1,379,000 0.48%
Spiritual Life Center 1,106,000 0.39%
Wichita Hoops LLC 1,079,000 0.38%
Source: Bel Aire
CHISHOLM CREEK UTILITY AUTHORITY
The City of Bel Aire and the City of Park City, Kansas have joined together to create the
Chisholm Creek Utility Authority (the “Authority”) under an Interlocal Cooperation Agreement.
As a contracting member of the Authority, the City of Bel Aire will receive certain water and
sewer services from the Authority. The Authority is authorized to issue debt, in its own name,
on behalf of the members, however, such debt shall not constitute a charge against or
indebtedness of any member on behalf of which such debt is issued. The contracting members
are not liable for the debt obligation specified in any contract or agreement by and between the
members and the Authority.
The Authority has $24,160,834 in bonds outstanding, and the Authority anticipates that payments
made by the members will be sufficient to meet the annual debt service requirements on the
outstanding obligations. The portions of the City of Bel Aire’s obligations under the service
agreement applicable to water service and wastewater service are approximately 47% and 53%,
respectively.
57
WATER FUND: REVENUES
The mission of the Water Department is to provide high quality, safe, potable water to all Bel
Aire residents; maintain the City’s water infrastructure, including water towers; and work with
CCUA and The City of Wichita to ensure no interruptions in water service. The Department staff
seeks to provide the highest level of customer service possible.
Major Accomplishments for FY 2018: � Upgraded pump house with variable frequency drives (VFDs)
� Exercised water valves and fire hydrants to ensure they are operational when needed.
Goals and Objectives for FY2019:
� Maintain drinking water distribution system.
� Preform rate study.
� Improve online utility payment system.
Revenue in the Water Fund is driven by water sales to Bel Aire utility customers. Water sales
account for 89 percent of the total annual revenue in the Water fund. Sales of $2,098,001 are
budgeted for 2019, based on historical sales data. As the City grows and more customers utilize
the City’s water supply, revenues will increase. The projected 2019 beginning fund balance of
$1,173,188 will be decreased to $951,027 at the end of the year if all budgeted expenditures are
made. This is due to a scheduled repair of a troubled water main.
Residential Water Utility Rates for 2019:
Rates are established by Resolution as adopted by the City Council. Per the current Resolution
the water rates are scheduled to increase by 3% annually.
The minimum water service charge of $29.50 per monthly billing period shall be assessed to all
residential customers who have their premises connected to the City water system at any time
during the monthly billing period. In addition to the minimum water service charge, the
following charges for any metered volume of water passing from the City water system to any
service connection shall be billed to the person, firm ororganization whose premises are serviced
by the connection.
GALLONS RATE
0-2,999 $3.64
3,000-5,999 $4.97
6,000-11,999 $5.43
12,000-16,999 $5.57
17,000-24,999 $5.71
25,000+ $5.77
58
2016 2017 2018 2019 WATER FUND REVENUES ACTUAL ACTUAL ADOPTED ADOPTED
CONNECTION FEES 14,256 16,850 15,000 16,500
FIRE STANDBY 15,330 15,390 13,000 13,000 LATE FEES/SERVICE CHARGES 55,833 25,713 25,000 10,000
METER REPLACEMENT FEES 0 0 0 0
SPRINKLER TESTING/PERMITS 2,595 4,600 3,000 3,500
WATER SALES COLLECTED 1,906,842 2,036,894 2,000,000 2,098,001
WATER TAP FEE(500) 121,275 179,277 122,000 150,000
PLANT EQUITY FEE(325) 0 0 0 0
WATER LINE INSP.(50) 0 0 0 0
TRASH ADMINISTRATIVE FEE 85,125 0 35,000 35,000
WATER UTILITY INCOME 2,201,257 2,278,723 2,213,000 2,326,001
INTEREST ON INVESTMENTS 238 3,113 3,000 3,000
MISCELLANEOUS INCOME 2,518 17,056 3,000 3,000
MISCELLANEOUS REIMBURSE -10 130 0 0
OTHER INCOME 2,746 20,298 6,000 6,000
TOTAL REVENUES: 2,204,003 2,299,022 2,219,000 2,332,001
59
WATER FUND: EXPENDITURES
Water Sources Water fund expenditures are largely concentrated in contractual obligations. Bel Aire purchases
water from two sources: the Chisholm Creek Utility Authority (CCUA) and the City of Wichita.
One of the greatest expense for the Water Fund is $550,000 in CCUA debt payments and
$285,000 for operations and maintenance at CCUA. Bel Aire has a take or pay contract with the
City of Wichita. The 2019 budget appropriates $550,000 for purchasing water for 2019.
Personnel, Debt and Other Operational Expenses The Water Department budget includes salary for one full-time Utilities Supervisor, Equipment
Operator II, and a Utility Clerk. Capital Outlays for 2019 include $69,096 for a maintenance
contract on the south and north water towers. Water system maintenance and repair increased
$200,000 for 2019. This amount will be spent on replacing sections of failing water main lines.
The Transfer Out amount will be transferred to the Bond & Interest fund for the Water Fund’s
portion of debt service on outstanding bonds.
CCUA Water Expenses $835,000
33%
Wichita Water Expenses$550,000
22%Personnel$183,300
7%
Debt$318,767
12%
System Maintenance & Improvments
$667,09526%
60
WATER 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 100,801 123,140 119,000 120,000
OVERTIME CONTINGENCY 2,512 1,977 2,500 4,000
FICA 7,757 9,349 9,500 9,000
KPERS 9,873 11,461 12,000 12,000
HEALTH/DENTAL 14,396 21,098 23,000 35,000
WORKMANS COMP 0 1,374 2,500 2,800
UNEMPLOYMENT EXPENSE 112 125 300 500
PERSONNEL TOTAL 135,451 168,525 168,800 183,300
FRANCHISE FEE TO GENERAL 0 0 50,000 100,000
CONTRACTUAL SERVICES 92,602 120,166 110,000 143,000
LIABILITY INSURANCE 15,921 13,589 14,500 15,000
ENGINEERING SERVICES 150 0 2,000 2,000
COMMUNICATIONS SERVICES 2,445 2,393 2,500 2,500
UTILITIES 10,620 10,353 12,000 12,000
WATER PURCHASED 574,497 505,695 550,000 550,000
WATER TREATMENT OP/CCUA 277,080 281,722 280,000 285,000
WATER SERVICE CCUA-Debt 595,527 608,809 620,000 550,000
REFUNDS 2,254 163 0 0
CONTRACTUAL TOTAL 1,571,096 1,542,890 1,641,000 1,659,500
AGRICULT/HORTICULT 110 0 500 500
PROFESSIONAL DUES 2,171 1,341 3,000 2,000
OFFICE SUPPLIES 1,264 1,376 1,500 1,500
OFFICE EQUIP/FURNISHINGS 217 3,273 2,000 2,000
POSTAGE 6,492 6,504 8,000 8,000
PUBLICATIONS 1,465 2,129 1,500 2,000
CLEANING SUPPLIES 74 109 500 500
SAFETY EQUIP & SUPPLIES 705 586 1,000 1,000
UNIFORMS/CLOTHING 163 245 500 500
TRAINING & CONFERENCES 1,711 2,486 2,000 3,000
MINOR EQUIP: TOOLS,ELECT 2,438 774 2,500 2,500
VEH/EQUIP REPAIRS & MAINT 5,098 6,876 6,000 7,000
PETROLEUM PRODUCTS 4,380 5,042 6,000 7,000
CONSTRUCTION MATERIAL 723 708 1,000 1,000
WATER SYSTEM MAINT/REPAIR 77,259 66,826 70,000 285,000
COMMODITIES TOTAL 104,271 98,274 106,000 323,500
61
WATER 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED PROPOSED
BUILDINGS/FIXED EQUIPMENT 0 0 3,000 0
WATER SYSTEM IMPROVE North Water Tower 0 102,728 51,364 51,364
South Water Tower 12,285 16,380 16,380 17,732
CAPITAL OUTLAY TOTAL 12,285 119,108 70,744 69,096
DEBT SERVICE PRINCIPAL
KDHE Water Loan (Ends 2034) 34,941 35,700 36,475 36,475
DEBT SERVICE INTEREST KDHE Water Loan (Ends 2034) 14,055 13,420 12,770 12,770
DEBT SERVICE FISCAL FEES 2,718 2,595 3,000 3,001
DEBT SERVICE TOTAL 51,715 51,715 52,245 52,246
TRANSFER OUT
Equipment Reserve 0 0 0 100,000
TRANSFER TO BOND/INTEREST 230,241 145,075
2012A Elk Industrial Park 1,102 1,000
2013D USD 259 9,511 9,411
2015A Refund 2007 Bond 137,392 132,298
2017A SCP Water Line 0 23,812
TRANSFERS OUT TOTAL 230,241 145,075 148,005 266,521
EXPENSE TOTAL: 2,105,058 2,125,586 2,186,794 2,554,162
62
WASTE WATER (SEWER) FUND: REVENUES
The mission of the Waste Water Department is to provide safe waste water service to all Bel
Aire residents, maintain the City’s waste water infrastructure including lift stations, and work
with CCUA to ensure no interruptions in waste water service. The Department staff seeks to
provide the highest level of customer service possible.
Major Accomplishments for FY 2018: � Inspected and Cleaned Sewer Lines
� Mapped potential problems as a result of inspection.
Goals and Objectives for FY2019:
� Clean and maintain sanitary sewer line
� Maintain lift stations
� Rehabilitate brick sanitary sewer manholes
Revenue in the Waste Water Fund is driven by sewer charges to Bel Aire utility customers.
Sewer charges account for 92 percent of the total annual revenue in the Waste Water Fund.
Charges of $1,987,215 are budgeted in 2019, based on historical sales data. The projected 2019
beginning fund balance of $1,449,311 will decrease to $1,274,376 due to sewer inspection and
maintenance projects expected in 2019.
Residential Sewer Utility Rates for 2019:
Rates are established by Resolution as adopted by the City Council. Per the current Resolution
the waste water rates are scheduled to increase by 3% annually.
A minimum sanitary sewer service charge of $33.87 per monthly billing period will be assessed
to all residential customers who have their premises connected to the City sanitary sewer system
at any time during the monthly billing period. In addition to the minimum sanitary sewer service
charge, additional charges for sanitary sewer collection and treatment based on metered volume
of water from the City water system shall be billed to the person, firm or organization whose
premises are serviced by the connection at the rate of $6.13 per 1,000 gallons.
63
SEWER FUND REVENUES 2016 2017 2018 2019 ACTUAL ADOPTED ADOPTED ADOPTED
LATE FEES/SERVICE CHARGES 24,049 22,711 20,000 10,000
SEWER CHARGES COLLECTED 1,794,425 1,929,335 1,800,000 1,987,215
SEWER TAP FEE(500) 121,275 179,277 123,600 150,000
SEWER LINE INSP.(50) 0 0 0 0
SEWER TARIFF FEES 0 0 0 0
PLANT EQUITY FEE(325) 0 0 0 0
SEWER UTILITY REVENUE TOTAL 1,939,749 2,131,322 1,943,600 2,147,215
INTEREST ON INVESTMENTS 379 5,280 0 4,000
MISCELLANEOUS INCOME 95 91 0 0 MISCELLANEOUS REIMBURSE 7,806 0 0 0
OTHER INCOME 8,280 5,371 0 4,000
TOTAL REVENUES: 1,948,029 2,136,693 1,943,600 2,151,215
64
WASTE WATER (SEWER) FUND: EXPENDITURES
CCUA Treatment Expenses Waste Water Fund expenditures are largely concentrated in Contractual obligations. The greatest
expense for the Waste Water Fund is $710,000 in CCUA debt payments and $450,000 for
treatment and maintenance at CCUA.
Personnel and Other Operational Expenses The Waste Water Department budget includes salary for one full-time Public Works Director,
Assistant Public Works Director, Equipment Operator I, and an Assistant Utility Clerk. The
Capital Outlay amount includes $31,662 for a debt payment on a loan from the Kansas
Department of Health and Environment. The Transfer Out amount will be transferred to the
Bond & Interest fund for the Waste Water Fund’s portion of debt service on outstanding bonds.
CCUA Treatment Expenses $1,160,000
50%
Personnel Expenses$339,000
15%
Other Operational Expenses$827,150
35%
65
SEWER 2016 2017 2018 2019 EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 194,423 156,828 218,000 252,000
OVERTIME CONTINGENCY 2,172 3,539 1,400 4,000
FICA 14,886 12,150 16,500 20,000
KPERS 20,323 14,666 20,000 25,000
HEALTH/DENTAL 17,526 12,689 20,814 31,000
WORKMANS COMP 0 1,937 4,100 6,000
UNEMPLOYMENT EXPENSE 108 121 500 1,000
PERSONNEL TOTAL 249,436 201,930 281,314 339,000
ACCOUNTING & AUDITING 0 0 0 0
FRANCHISE FEE 50,000 0 100,000 100,000
CONTRACTUAL SERVICES 22,654 24,163 20,000 53,000
LIABILITY INSURANCE 8,187 8,036 9,000 9,000
ENGINEERING SERVICES 300 0 2,000 2,000
COMMUNICATION SERVICES 1,874 1,894 2,000 2,000
UTILITIES 7,479 3,292 8,000 5,000
SEWER TREATMENT OP/CCUA 338,002 322,247 450,000 450,000
SEWER DEBT SVC - CCUA 711,873 757,216 760,000 710,000
REFUNDS 33,223 0 0 0
CONTRACTUAL TOTAL 1,173,591 1,116,849 1,351,000 1,331,000
PROFESSIONAL DUES/MEMBER 0 260 500 500
OFFICE SUPPLIES 425 819 1,000 1,000
OFFICE EQUIP/FURNISHINGS 198 2,530 6,500 2,500
POSTAGE 6,271 6,090 8,000 8,000
PUBLICATIONS 1,926 1,461 2,000 2,000
CLEANING SUPPLIES 131 15 300 300
SAFETY EQUIP & SUPPLIES 1,151 565 1,000 1,000
UNIFORMS/CLOTHING 163 289 600 500
TRAINING & CONFERENCES 561 1,447 600 2,000
MINOR EQUIP: TOOLS,ELECT 391 369 1,500 1,500 VEH/EQUIP REPAIRS & MAINT 7,581 4,202 8,000 8,000
PETROLEUM PRODUCTS 2,973 3,449 4,500 5,000 CONSTRUCTION MATERIAL/SUP 950 350 1,500 1,500
LIFT STATION OPERATIONS 36,403 93,270 40,000 40,000
WASTEWATER SYS M/R 45,823 39,423 150,000 250,000
COMMODITIES TOTAL 104,948 154,540 226,000 323,800
66
SEWER 2016 2017 2018 2019 EXPENSES ACTUAL ADOPTED ADOPTED ADOPTED
VEH/EQUIP LEASE/PURCHASE 0 0 3,000 0
PRODUCTION/CONSTR EQUIP 0 0 0 0
SYSTEM IMPROVEMENTS 0 0 0 0
CAPITAL OUTLAY TOTAL 0 0 3,000 0
DEBT SERVICE PRINCIPAL
KDHE Sewer Loan 26,213 22,026 30,605 22,975
DEBT SERVICE INTEREST KDHE Sewer Loan 6,004 8,524 22,495 7,687
DEBT SERVICE FEES 803 1,140 800 1,000
CAPITAL OUTLAY TOTAL 33,020 31,689 53,901 31,662
TRANSFER OUT
Equipment Reserve 0 0 0 100,000
TRANSFER TO BOND/INTEREST 227,000 203,882
2012A Elk Industrial Park 1,515 1,493
2013D USD 259 15,648 15,448
2015A Refund 2007 Bond 190,822 183,747
TRANSFERS OUT TOTAL 227,000 203,882 207,985 300,688
SEWER EXPENSE TOTAL: 1,787,996 1,708,890 2,123,200 2,326,150
67
SOLID WASTE FUND
The Solid Waste Fund was established in 2016. The City signed a 10-year contract with Waste
Connections for trash and recycling services for residents. All charges for trash and recycling
services are being placed into the Solid Waste Utility Fund. These funds will be used to pay the
provider of solid waste removal services.
Prior to the establishment of the Solid Waste Utility Fund, the accounting department would
move a dedicated portion of the water bill to pay for solid waste removal each month. The
establishment of this fund creates a more efficient and transparent method of accounting for solid
waste services in the City of Bel Aire.
The 2019 Budget includes a $100,000 transfer from the Solid Waste Fund into the Capital
Improvement Reserve Fund.
SOLID WASTE REVENUES 2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED TRASH FEES COLLECTED 228,138 363,469 330,000 370,000
RECYCLE FEES COLLECTED 75,936 123,633 130,000 130,000
TRANSFER IN 62,921 0 0 0
TOTAL REVENUES 366,995 487,102 460,000 500,000
SOLID WASTE EXPENDITURES 2016 2017 2018 2019 ACTUAL ACTUAL ADOPTED ADOPTED
SOLID WASTE SERVICES 157,560 262,835 330,000 350,000
RECYCLING SERVICES 55,690 99,239 110,000 150,000
TRANSFER OUT 0 0 150,000 100,000
TOTAL EXPENDITURES 213,250 362,074 590,000 600,000
OPERATING BALANCE: 153,745 125,028 -130,000 -100,000
ENDING CASH BALANCE 12/31/XXXX: 153,745 278,773 148,773 48,773
68
STORMWATER FUND
A Stormwater Fund was established in 2016. The Stormwater Fund will provide stable,
dedicated funding for the City’s stormwater management. Creating a fund for Stormwater
eliminates annual competition for funds within the budget and aids long-range planning for
funding of major stormwater improvement. The only revenue source for this fund is a $2
stormwater management fee, which was assessed to all utility customers in the City. Contracted
prices for trash was lowered $2 with the new agreement. This allowed the City to reallocate
those funds toward stormwater management without increasing the overall utility rates for
residents using the City’s contracted hauler.
Expenditures will go toward maintaining and replacing stormwater items in the City such as:
� Culverts (Pipes used to allow water to flow under a road)
� Curbs (Directs excess rain and ground water to designated drains)
� Storm Drains (Drains excess rain and ground water from streets and sidewalks)
STORMWATER FUND REVENUES 2016 2017 2018 2019 ACTUAL ACTUAL ADOPTED ADOPTED
LATE FEES/ SERVICE CHARGES 295 895 0 400
RESIDENTIAL FEES 22,119 65,985 65,000 65,000
COMMERCIAL FEES 3,930 10,408 10,000 20,000
TOTAL FEES COLLECTED 26,344 77,288 75,000 85,400
TOTAL REVENUES: 26,344 77,288 75,000 85,400
STORMWATER EXPENDITURES 2016 2017 2018 2019 ACTUAL ACTUAL ADOPTED PROPOSED
CONTRACTUAL SERVICES 0 700 1,000 1,000
ENGINEERING SERVICES 0 20,000 20,000
CONTRACTUAL TOTAL 0 700 21,000 21,000
DRAINAGE SYSTEM IMPROVEMENTS 23,525 50,000 50,000
CAPITAL OUTLAY TOTAL 0 23,525 50,000 50,000
STORMWATER EXPENSE TOTAL: 0 24,225 71,000 71,000
OPERATING BALANCE: 26,344 53,063 4,000 14,400
ENDING CASH BALANCE 12/31/XXXX: 26,344 79,407 83,407 97,807
69
�����������
70
SPECIAL HIGHWAY (STREET) FUND: REVENUES
The mission of the Special Highway Fund is to maintain the City’s transportation infrastructure
including streets, traffic signs and signals; work with other jurisdictions to ensure limited
resources are used properly and provide superior customer service. The City maintains almost
50 miles of roadway.
Major Accomplishments for FY 2018: � Complete reconstruction of 53rd Street.
� Address many minor repairs throughout the City and funded the asphalt overlay of 53rd
Street between Woodlawn and Rock.
� Worked to maintain safe street conditions through snow and ice removal, street seeping,
and pothole repair
Goals and Objectives for FY2019: � Maintain safe street conditions through snow and ice removal, street seeping, and pothole
repair
� Continue to repair and improve City Streets both paved and unpaved.
All revenues for the Special Highway Fund come from State and County highway fuel taxes.
Estimates are provided annually by the League of Kansas Municipalities. The beginning fund
balance of $402,007 is expected to decrease to $42,248 at the end of the 2019.
The 2019 budget includes a $200,000 transfer out of the Street Fund and into the Capital
Improvement Reserve Fund. The $200,000 total will be used for needed street repairs and
improvements thought-out the City.
STREET FUND REVENUES 2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED
STATE FUEL/HIGHWAY TAX 195,340 201,318 194,020 207,700
COUNTY FUEL/HIGHWAY TAX 84,989 89,991 85,650 91,410
TAXES TOTAL 280,329 291,309 279,670 299,110
MISCELLANEOUS INCOME 111 0 0 0
MISCELLANEOUS REIMBURSE 1,475 0 0 0TRANSFER IN FROM SOLID WASTE 0 0 150,000 0
TRANSFER IN FROM GENERAL 200,000 600,000 250,000 0
OTHER REVENUE TOTAL 201,586 600,000 400,000 0
TOTAL REVENUES: 481,915 891,309 679,670 299,110
71
SPECIAL HIGHWAY (STREET) FUND: EXPENDITURES
The Personnel category of expenditures within the Special Highway Fund covers the cost of two
full-time employee. The largest Contractual expenses are street lighting at $65,000 and liability
insurance services at $9,500.
The Transfer Out budget is for the City at large portions of paving projects. This amount will be
transferred to the Bond and Interest Fund.
STREET 2016 2017 2018 2019EXPENSES ACTUAL ACTUAL ADOPTED ADOPTED
SALARIES 41,356 56,531 81,000 74,000
OVERTIME CONTINGENCY 2,852 2,955 1,700 2,500
FICA 3,130 4,298 6,200 5,600
KPERS 4,188 4,843 8,000 7,500
HEALTH/DENTAL/LIFE EXPENSE 16,860 15,667 22,000 20,000
WORKMANS COMP 0 2,755 4,500 5,500
UNEMPLOYMENT EXPENSE 31 35 200 300
PERSONNEL TOTAL 68,418 87,083 123,600 115,400
COMPUTER SUPPORT SERVICES 0 0 0 0
CONTRACTUAL SERVICES 2,824 3,790 3,000 3,000
LIABILITY INSURANCE 7,059 8,718 9,000 9,500
ENGINEERING SERVICES 5,812 3,031 7,000 5,000
STREET LIGHTING 61,622 58,607 65,000 65,000
COMMUNICATIONS SERVICES 1,384 1,392 1,500 1,500
UTILITIES 4,087 3,087 5,000 4,500
CONTRACTUAL TOTAL 82,787 78,624 90,500 88,500
AGRICULT/HORTICULT SUPPLY 0 143 300 300
OFFICE EQUIP/FURNISHINGS 162 0 500 500
POSTAGE 97 9 100 100
SAFETY EQUIP & SUPPLIES 447 3,262 1,000 1,000
UNIFORMS/CLOTHING 119 245 500 500
TRAINING & CONFERENCES 454 328 500 1,000
MINOR EQUIP: TOOLS,ELECT 558 5,948 2,500 3,000
VEH/EQUIP REPAIRS & MAINT 21,263 12,475 20,000 15,000
PETROLEUM PRODUCTS 5,730 7,802 10,000 10,000
CONSTRUCTION MATERIAL/SUP 81 1,240 1,200 1,200
SIGNS, MATERIAL/SUPPLIES 5,216 6,103 5,500 12,000
SNOW & ICE REMOVAL 9,692 1,174 14,000 12,000
STREET REPAIR MATERIALS 29,881 51,060 40,000 50,000
COMMODITIES TOTAL 73,701 89,790 96,100 106,600
72
STREET 2016 2017 2018 2019EXPENSES ACTUAL ACTUAL ADOPTED PROPOSED
VEH/EQUIP LEASE/PURCHASE 5,403 0 0 0
PRODUCTION/CONSTR EQUIP 3,807 0 0 0
PUBLIC GROUNDS IMPROV 9,070 0 0 0
STREET IMPROVEMENTS 67,412 212,410 400,000 0
CAPITAL OUTLAY TOTAL 85,692 212,410 400,000 0
TRANSFERS OUT 53,687 117,000
2013D USD 259 0 0 40,986 40,386
2015A Refund 2007 Bond 0 0 7,633 7,350
2017A Street Projects 0 0 0 100,633
TO CIP Reserve 0 0 0 200,000
TRANSFERS OUT TOTAL 53,687 117,000 48,619 348,369
EXPENSE TOTAL: 364,286 584,907 758,819 658,869
73
BOND & INTEREST FUND
The Bond & Interest Fund is used to pay the debt service requirements of the City. Only General
Obligation debt and Revenue Bond debt are paid through the Bond & Interest Fund.
The Bond & Interest Fund revenues are made up of transfers in from the City’s General Fund,
Enterprise Funds, and special assessment revenues. Special assessment revenues are paid by
homeowners to repay infrastructure improvements for residential developments.
The City has traditionally used Temporary Note financing for installation of infrastructure in
new developments. Temporary Notes are issued at the request of developers for a project period
of up to three years. At the end of the project period, the total cost of the project is calculated
and assessed to the property owners. The City then converts the Temporary Notes to General
Obligation Bonds which are funded by the special assessments of the beneficiary property
owners, or payable by the City-at-large.
BOND & INTEREST FUND REVENUES 2016 2017 2018 2019
ACTUAL ACTUAL ADOPTED ADOPTED IMPACT FEE: WATER 0 0 0 0
IMPACT FEE: SEWER 0 0 0 0
IMPACT FEE: STREETS 0 0 0 0
SPECIAL ASSESSMENTS 1,218,402 1,423,755 1,548,168 1,816,871
DELINQUENT SPECIALS 70,883 76,410 586,804 50,000
TAXES TOTAL 1,289,284 1,500,165 2,134,972 1,866,871
INTEREST ON INVESTMENTS 265 5,354 0 0
OTHER REVENUES TOTAL 265 5,354 0 0
TRANSFER IN (FROM GENERAL) 396,093 359,149 609,204 636,244
TRANSFER FROM STREETS 53,687 117,000 48,619 148,369
TRANSFERS FROM WATER 167,320 145,075 148,005 166,521
TRANSFER FROM SEWER 227,000 203,882 207,984 200,688
TSF FROM BOND/TN PROCEEDS 0 246,050 0 0
TRANSFERS IN TOTAL 844,100 1,071,156 1,013,812 1,151,822
TOTAL REVENUES: 2,133,649 2,576,675 3,148,784 3,018,693
74
BOND & INTEREST EXPENDITURES 2016 2017 2018 2019
ACTUAL ACTUAL ESTIMATE PROPOSED
DEBT SERVICE PRINCIPAL 1,425,000 1,685,000 1,815,000 2,040,000
DEBT SERVICE INTEREST 863,171 760,507 881,473 848,685
DEBT SERVICE FISCAL FEES 0 0 0 0
DEBT SERVICE TOTAL 2,288,171 2,445,507 2,696,473 2,888,685
TOTAL EXPENDITURES 2,288,171 2,445,507 2,696,473 2,888,685
OPERATING BALANCE: -154,522 131,168 452,311 130,008
CASH BALANCE 12/31/XXXX: 83,985 215,153 667,464 797,473
75
LAND BANK FUND
The mission of the Land Bank is to take charge of, acquiring, maintaining and selling abandoned,
foreclosed, or similarly distressed property, including easements and reversionary interests, and
personal property subject to the provisions of the Kansas Land Bank Act, to help achieve the
elimination of blight, the enhancement of neighborhood viability and stability, the creation of
opportunities for affordable and mixed income home ownership and rental, maintenance of
property values throughout the City, conformance with the goals of the City’s Comprehensive
Plan, and the encouragement of economic development.
The Land Bank Fund is funded by the sale of specific parcels of land owned by the City and used
to pay the special assessments on unsold City owned land inside the Land Bank.
LAND BANK REVENUES
2016 2017 2018 2019 ACTUAL ACTUAL ADOPTED ADOPTED
RESIDENTIAL LOT SALES 297,489 66,754 84,377 100,000
COMMERCIAL LOT SALES 255,905 440,815 0 50,000
INTEREST ON INVESTMENTS 0 1,852 0 0
MISC. INCOME 0 1,587 0 0
TRANSFER IN 385,000 0 0 324,065
TOTAL REVENUES 938,394 511,007 84,377 474,065
LAND BANK EXPENDITURES
2016 2017 2018 2019 ACTUAL ACTUAL ADOPTED ADOPTED
CONTRACTUAL SERVICES 13,886 28,943 22,658 20,000
SPECIAL ASSESSMENTS 385,111 352,084 326,975 400,000
TRANSFER OUT 0 0 0 0
TOTAL EXPENDITURES 398,996 381,027 349,633 420,000
OPERATING BALANCE: 539,398 129,980 -265,256 54,065
CASH BALANCE 12/31/XXXX: 539,398 669,378 404,122 458,187
76
77
CAPITAL IMPROVEMENT RESERVE FUND
The Capital Improvement Reserve Fund is a special fund designated for long term savings for
larger capital projects.
For 2019, $500,000 has been budgeted to be transferred to the Capital Improvement Reserve
Fund. The fund is anticipated to begin 2018 with a cash balance of around $213,992.
Capital Improvement Reserve funds were utilized in 2018 to partially fund the complete
reconstruction of 53rd Street and small upgrades to the recreation facility. The Governing Body
also felt it important to receive community input on our City and Park Master Plan. Wichita State
University was contacted to start the engagement process and include a survey to gather citizen
input on how they want to see Bel Aire grow. The master plans and the survey are paid from the
Capital Improvement Reserve Fund.
Expenditures for 2019 will be determined by Council priorities in the Capital Improvement
Reserve Fund throughout the year. The two major expenditures currently being evaluated are:
$1,000,000 Phase 1 of the Bel Aire Master Park and listed street improvements through the City.
78
���� ���� ���� ���� ���� ���� ���� ���������� ������ ��� ����� !� ���"!��!� ���"!��!� ���"!��!� ���"!��!�
'��()*+�,(-*�./0+(+��12 3456555 7456555 456555 7556555'��()*+�)*�./).1,89�)'+ 5 5 3556555'��()*+�*�./)'�++') 5 5 75565550��(':�.�++8) 5 5�+('��1:��;8+<+1.:/+('*++) 336=>3 3?6>55,('+�+)'.(,(<+)'/+(' 35> 76@>4 765>4
�,:*A(8(+9�+<+(A+)B 3@36>>C 7@@6D>4 4765>4 #��$���
'.'�1�+).A��+)�<�,1�E1+B 7D?6@D@ 4=>6@?> ??@6>=7 =3?6CC7
���� ���� ���� ���� ���� ���� ���� ����! �%��� � ������ ������ ������ ����� !� ���"!��!� ���"!��!� ���"!��!� ���"!��!� ��������� �
&'(')*+�&,-')(.'(/1F�G8HIHJKLMH�N:JF� 46=45 364?5 =67>5/FONHP:FPQ:JF� 76=45 7?6>?> 7@64>>8PFR�FSH)NTGU 756?74 756?74�KMMT�RNU)TPIHU-9)A2 776>C3 776>C39�/:.9FJQFVJH:JFWHO =6@?= =6@?='KP�FGK)RPH�-�OXYZH��HWHOOFPU2 'E8�RNU[FJJ+�HPSU+\\RWRH�N[<�� 'E8
�RNU[FJJ9FNHP[HFNHP @67?> @67?>EHJ�RPH+�NHPF�WH)RS�-D4NZX.JRIHP2 =6455 =6455EHJ�RPH+�NHPF�WH)RS�1RSZNO ?6455 ?64551RSZN:KJH�HLJFWHMH�N ?6?=4 ?6?=4
�01+23�4,)56:TVJRW9KPQO)HWTPRNU0FNH 356C45 356C45:TVJRW9KPQO*H�WH 36D43 36D43:TVJRW9KPQO:KJHEFP� @6C7> 3=6=37 7D6@D5:TMLZKTOHALSPFGH D6C?7 ?76>?@ ?=6=@><*8:TPWZFOHO ?367D4 ?367D4*FY�1FQHEK��TJIHPN 'E8(HY:TVJRW9KPQO*FWRJRNU 'E8
�,+23':89R�S,MLPKIHMH�NO
�*)56�*(7��'3)'*/2,(�EHJ�RPH/FONHP:FPQ 365556555 'E8 'E8 'E8 'E8 'E8�HOTP\FHWHEHJ�RPH:FPQ D6C@@ D6C@@�HWPHFNRK�.\\RWH:PK]HWN @6555�HWPHFNRK���A�RNO 746C45 746C45�HWPHFNRK�,PPRSFNRK� 756744 3>645D ?>6=@5�H�NPFJ:FPQ:KKJ�HLFRP 3D6=>> 3D6=>>^TFRJ�RGSH:K�G�RLX�FL ?6@3> ?6@3>(HY�KK\\KP�HWPHFNRK�ETRJGR�S 'E8 'E8 'E8 'E8 'E8:FPQR�S1KN1RSZNR�S 'E8 'E8 'E8 'E8 'E8
/)''/�8.9),-.'(/64?PG)NPHHN\PKM9KKGJFY�NK�KWQ 37D634> =763?= 3C@67C4�KGHK_9KKGJFY�NKWTJ_GH_OFW 3C@6555 'E8 'E8 'E8 'E8 'E8:HPPUNK�_9KKGJFY�NK`F�HOIRJJH =76555 'E8 'E8 'E8 'E8 'E8+GR�VTPS_:HPPUNK�NKD3ON 3>>6555 'E8 'E8 'E8 'E8 'E8+GR�VTPS_:HPPUNK�NK`F�HOIRJJH >?6555 'E8 'E8 'E8 'E8 'E8)Na`FMHO�KTPN 456555 'E8 'E8 'E8 'E8 'E80T��ROK�_8F�VTPUNK9KKGJFY� >C6555 'E8 'E8 'E8 'E8 'E8[HGSHPKY_D4NZNK)T�PROH ?536355 'E8 'E8 'E8 'E8 'E8/HMLZRO_+GSHMKKP 3=56555 'E8 'E8 'E8 'E8 'E8D=NZ_*FPMONHFGNK0PFIHJ�KFG 7546555 'E8 'E8 'E8 'E8 'E8
)RGHYFJQ:PK]HWNO >6?45 >6?45'.'�1+b:+(8,'A�+) C?6?>7 7C?6>43 3776>>5.:+��',(0E�1�(�+B @>645= _7=6?@@ _=56=C4 4556555
+(8,(0��)[E�1�(�+37X?3XbbbbB ?37634? 7>D6=>= 73?6CC7 ���$���
���8����8:���;!:!<���! !�;!��!;!<�!
���8����8:���;!:!<���! !�;!�!=�!<�8���!
79
EQUIPMENT RESERVE FUND
The Equipment Reserve Fund serves as ��savings account for larger equipment and vehicle
purchases.
For 2019, $500,000 is budgeted to be transfer into the Equipment Reserve Fund. The Equipment
Reserve Fund will begin 2019 with a balance of $51,901.
It is anticipated that around $153,450 will be spent in 2019 to replace some of the City’s older
vehicles and equipment that are becoming too costly to repair. The anticipated 2018 ending cash
balance for the Equipment Reserve Fund is $��_�.
In 2018, Equipment Reserve Funds were used to purchase a new public works dump truck with
salt spreader.
80
���� ���� ���� ���� ���� ���� ���� ���������� ������ ������ ��� !� ��!��!� ��!��!� ��!��!� ��!��!�
���[E�����+c��c�� ��c� �� �c��� ����c�� ����c� ������� ����c� ������ _ �����
���� ���� ���� ���� ���� ���� ���� ���������� ������ ��� ��� !� ��!��!� ��!��!� ��!��!� ��!��!�
�����*+�,��*���0+�+���� �cc�ccc �cc�ccc �c�ccc �cc�ccc �E8 �E8 �E8 �E8�����*+��*������+� c c c �cc�ccc �E8 �E8 �E8 �E8�����*+�*����+�+� c c c �cc�ccc �E8 �E8 �E8 �E80��������++8� �c���� c c c,�������+���,� ������ c c���+�*+��,��+�� ������ �� �c c c,��+�+����,��+���+�� c c c c
�+��+�+��+� �����c ��c���� �c�ccc �cc�ccc c c c c������+�����+����,��E�+ � ����� ����c�� ����c�� �����c� ������� ����c� ������ _ �����
���� ���� ���� ���� ���� ���� ���� ���������� ������ ������ ��� !� ��!��!� ��!��!� ��!��!� ��!��!�
���� ��!"�! �c�ccc��#$%&�'�()8�*+),#�,'#-)�!*�.��� ��ccc ��ccc ��ccc ��ccc ��ccc
� �+2��4,�5�`,/(8��!�E%&+/,� ��c��� �� [,$$%(0�!%&),!+(12(� ����c �%$)�#!�%0�! ������,()�!(%)2,(%$8-'#�!-&+ ����� E,3&%)�+20�,%0�! �c�ccc+.'%!+�, �! ����cc*_��c�!-&+ 2)/E�0��$, �4�#!�%0�! ���ccc�585� �c�ccc*_��c�!-&+ ���ccc82!�&),!,6���!-&+ ���ccc*_��c�!-&+ 2)/E�0��$, �4�#!�%0�! ���ccc�%(0#!20��, �!� ���ccc�%(0#!20��, �!� � ��cc+.'%!+�, �! ����cc�(, 8,1�$, ���cc
�������2,(+.'%!+�, �! �c���� ���ccc
�,+2��+"20�(&��%(%1�'�()�7*)�'�0!%()� ��� ���c��8,01��,$2&���/2&$� �������c� *,!0�,$2&���/2&$� �������c� *,!0�,$2&���/2&$� �������-)62)����,$2&���/2&$�* �����c�#��0�21(*�0!%()� ��� ��,$2&���/2&$� �c�ccc �c�ccc �c�ccc �c�ccc �c�ccc��#$%&�'�()�%#),#�,'#-)�!*�.�� ���ccc��#$%&�'�()�%)!,$�26$�*�.�� ��ccc��#$%&�'�()E,07�%'�!%*�.��� ��ccc,()�!!,1%)2,(�,,'�20�,�7*)�' �ccc��#$%&�'�()�%)!,$�20�%!'*�.��� ���cc�� �%*�!*�.�c� �d��� ����c ����c ����c ����c��#$%&�'�()�%02,*�.��� �E8 �E8 �E8 �E8 �E8
��9+��2(����.�����!� 29.�(����+�2.���c� *,!0�,$2&���/2&$� � � ���-3$2&�,!+*�!%2$�! �����
�����+�+�8,���+� ������ ����� ������� ������c �c����c �����c �c����c �c��ccc
��+���,�0E�����+ _�c����� �� ��� _������� ������c _�c����c _�����c _�c����c _�c��ccc+�8,�0���[E�����+������ �c��� ����c�� ����c� ������� ����c� ������ _ ����� _�������
!�����!����!����!�!���������!;!��!
!�����!����!����!�!����!���!������ �
81
CAPITAL P��JECTS FUND
The Capital Projects Fund is comprised solely of temporary note proceeds that are used to
finance specific projects. Expenses in this fund are dictated by project costs but cannot exceed
available funds and cannot be used in any part to pay for City operating expenses or any other
cost outside of the scope of each individual project. Each project is treated as a separate account
within the Capital Projects Fund to allow for close tracking of revenues and expenditures
separately.
Once the projects have been completed and permanent financing (General Obligation Bond) is in
place, the assets become the property of the City of Bel Aire and future maintenance costs must
be covered by the City. Significant maintenance costs will not be realized for at least ten years
based on the asset lifespan.
The 2016B Improvements consist of the following projects:
Project Description Res. No. Estimated
Amount Courtyards at Elk Creek Phase 3 – Water 16-34 $152,000 Courtyards at Elk Creek Phase 3 – Sewer 16-35 $168,000 Courtyards at Elk Creek Phase 3 – Paving 16-36 $510,000 Rock Spring Phase 4 – Water 16-12 $63,000 Rock Spring Phase 4 – Paving 16-11 $113,000 Englert Addition – Water 16-10 $29,000 Rock Spring 2nd Addition – Water 16-27 $74,000 Rock Spring 2nd Addition – Sewer 16-29 $160,000 Rock Spring 2nd Addition – Paving 16-26 $476,000 Rock Spring 2nd Addition – Sidewalk 16-28 $20,000 Deer Run Phase 1 – Water 16-25 $190,000 Deer Run Phase 1 – Sewer 16-22 $322,000 Deer Run Phase 1 – Paving 16-21 $579,000 Deer Run Phase 1 – Storm Water 16-24 $887,000 Deer Run Phase 1 – Sidewalk 16-23 $44,000Chapel Landing Phase 2 – Water 16-20 $65,000 Chapel Landing Phase 2 – Sewer 16-19 $115,000 Chapel Landing Phase 2 – Paving 16-18 $247,000 37th Street – Water 16-31 $125,000 37th Street – Paving 16-34 $772,605 53rd Street – Water 16-33 $310,000 53rd Street – Paving 16-32 $518,000 Sunflower Phase 2 – Drainage 16-37 $450,000
82
The 2017B Improvements consist of the following projects:
Project Description Res. No. Estimated
Amount Rock Spring 2nd Addition, Phase II - Water R-17-28 $ 126,000Rock Spring 2nd Addition, Phase II - Sewer R-17-26 164,000 Rock Spring 2nd Addition, Phase II - Paving R-17-25 475,000 Rock Spring 2nd Addition, Phase II - Sidewalk R-17-27 33,000 Rock Spring 1st Addition, Phase V - Water R-17-24 94,000 Rock Spring 1st Addition, Phase V - Sewer R-17-22 95,000 Rock Spring 1st Addition, Phase V - Paving R-17-21 617,000 Rock Spring 1st Addition, Phase V - Sidewalk R-17-23 28,000 Woodlawn Ave. – Engineering and Design R-17-20 580,250
The 2017C Improvements consist of the following projects:
Project Description Res. No. Estimated
Amount Sunflower Commerce Park – Water Main R-14-17 $ 260,000Sunflower Commerce Park – Sanitary Sewer R-14-16 480,000
83
TRUSTEE FUND
The Trustee Fund is comprised of three separate Public Building Commission debt issuances.
This fund will receive the budgeted transfers from the General Fund to cover the 2019 debt
payments, which will also be paid directly from this fund.
The 2014A PBC bond was used to refund the 2006 PBC issuance. The 2006 Refunding Bond
was used to refinance the 2003 Revenue Bond that financed the construction of City Hall. The
principal amount was $3.275 million and debt payments continue through 2030. This refunding
shortened the repayment schedule by 6 years and saved the City over $794,000 in Net Future
Value Benefit. Debt service payments are paid from transfers out of the General Fund, Non-
Departmental Department. For 2019, City Hall debt service payments are budgeted at $266,200.
The 2014B PBC bond was used to refund the 2003B and 2004A PBC issuances. The 2003B
Revenue Bond was used to fund the construction of the Central Park Pool. The principal amount
was $730,000. Debt payments continue through 2036 and are paid from transfers out of the
General Fund, Non-Departmental Department. The 2004A Revenue Bond was used to fund the
construction of an effluent water line to serve a near-by golf course. The principal amount was
$420,000. Debt payments for the water line are paid solely from fees charged to the golf course
for the water they receive. The 2014B bond pays off in 2030 the refunding shorted the repayment
period by four years and had a Net Present Value savings of $275,000. Debt service payments
for pool and effluent line total $109,853 for 2019.
The largest debt issuance within the Trustee Fund is the 2017A Public Building Commission
Bond that was used to refinance the City-owned industrial land. The principal amount of this
issuance was $18,250,000. Debt service payments continue through 2034. Debt service payments
for 2019 total $1,069,030 and are paid through a transfer from the General Fund, Land
Department. Over the past seven years the City has made $4,050,000 in principal prepayments
for our land debt.
The budgeted transfer amount from the General Fund includes over $300,000 to be used for
principal prepayment; this provides the City with the budget authority to make a principal
prepayment on the 2010A debt issuance if land sale revenues exceed budgeted expectations.
84
SUNFLOWER COMMERCE PARK MAP
85
ZONING MAP FOR BEL AIRE, KS
86
GLOSSARY
16/20 Vehicle Tax: The State of Kansas collects tax on larger vehicles and distributes a portion
to cities.
Ad Valorem Tax: A tax levied on the assessed value of real and personal property (also referred
to as property tax).
Assessed Valuation: The official value placed on real estate, personal property, and utilities as a
basis for levying taxes. The value is determined by applying a mathematical factor to the
appraised value. The value is also determined by the property classification; residential real
estate is assessed at 11.5%, land devoted to agricultural use is assessed at 30%, land for
Commercial and Industrial uses is assessed at 25%.
Audit: An examination of the financial activities of an agency and the report based on such
examination.
Basis of Accounting: Method used to determine when revenues and expenditures are recognized
for budget purposes.
Balanced Budget: When a government’s total revenues equal total expenditures.
Budget: A plan of financial operation including an estimate of proposed expenditures for a given
period and proposed means of financing them.
Budget Adoption: A formal process by which the budget is approved by the governing body.
Budget Amendment: The legal means by which an adopted budget may be increased. The
budget may not be increased with ad valorem taxes. The amendment process follows similar
steps as the budget adoption.
Budget Calendar: Schedule of events followed by the City in the preparation, review and
administration of the budget. Capital Expenditures: Funds used to acquire or improve long-term
assets.
Capital Improvement Plan (CIP): A long-term plan for capital expenditures.
Certification of Participation (COP): Lease financing agreements in the form of tax exempt
securities similar to bonds.
���� !������" The chief administrator of a municipality under the council-manager form of
government.
City of the Second Class: Kansas statute provides for three classifications of cities based on
population size. Commodities: Tangible goods and supplies.
Contractual Services: Costs of services.
Council: Elected officials of a city who set the general policies under which the city operates.
87
Debt Service: The annual payments required to support debt issuances including interest and
principal.
Department: A functionally similar group of city employees. The City’s Departments are
headed by a single Department Director who reports directly to the City Manager.
Expenditure: An outlay of cash for the purpose of acquiring an asset or providing a service.
Fees: General term used for any charge levied by local government in connection with providing
a service, permitting an activity, or imposing a fine or penalty. Major types of fees include
building permits, fines and fees.
Fiscal Year: A year reckoned for taxing or accounting purposes. The City's fiscal year is a
calendar year.
Franchise: A special privilege granted by a government, permitting the use of public property.
Fund: An independent fiscal and accounting entity for recording expenditures and revenues.
Funds are established for specific activities and are subject to special limitations.
General Fund: The fund that accounts for all revenues and expenditures which are not
accounted for in specific purpose funds. It finances the ordinary operations of the City.
General Obligation Bond: A debt instrument which gives borrowing power to a municipality
based upon taxing authority to repay the debt and interest.
Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and
guidelines for financial accounting and reporting. They govern the form and content of the
financial statements of an entity.
Governing Body: The elected officials of the City including the mayor plus Council members.
Grant: A monetary contribution by an outside organization to financially support a particular
function or purpose.
Interest: Fee charged by the lender to a borrower for use of borrowed money.
Levy: The total amount of taxes imposed by a government to support governmental activities.
Line Item: The most detailed unit of budgetary expenditures listed in the City of Bel Aire
budget.
Mayor: Elected leader of the Governing Body.
Mill: A monetary unit used to express the property tax rate.
Modified Accrual: An accounting method which reports revenues when they are measurable
and available.
Motor Vehicle Tax: The County Appraiser determines the value of motor vehicles and the
County Treasurer collects and distributes the tax.
88
Operating Budget: A one-year budget approved by the City Council that includes
appropriations for direct services to the public including wages and benefits, materials and
services, and equipment. Excluded from the operating budget are capital improvement projects,
debt service requirements, transfers, and reserves.
Ordinance: An enforceable law or statute enacted by a city, town or county. See Resolution.
Principal: The amount of borrowed funds which remains unpaid.
Proprietary Fund: Governmental activities that can be operated most like a commercial
business.
Public Hearing: A meeting or portion of a meeting set up to give members of the public a
chance to speak on a particular subject such as the proposed annual budget.
Resolution: An act that is typically less formal than an ordinance, expressing the opinion or
mind of the governing body, and generally dealing with matters of a special or temporary
character or setting policy.
Revenue: A source of income which finances governmental operations.
Special Assessments: Charges assessed against property in a special district formed to pay for
specific improvements.
Special Revenue Funds: Funds used to account for proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
89
��������������������������� �
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
��������������������������������
108
APPENDIX B: PROPERTY TAX INFORMATION
The total assessed valuation of the taxable tangible property in the City of Bel Aire, Kansas, for the last five (5) years is shown below:
Trend of Values
Year (1)
Sedgwick County
Sales Ratio Appraised Valuation
Taxable Assessed
Valuation (2)
Motor and Recreational
Vehicles
Equalized Assessed Tangible Valuation
2017/18 84.5% $447,620,939 $56,501,399 $10,121,490 $66,622,889 2016/17 89.5 416,722,453 52,479,400 9,682,993 62,162,393 2015/16 88.2 383,369,967 48,143,387 9,243,852 57,387,239 2014/15 87.9 365,545,270 45,309,074 8,760,209 54,069,283 2013/14 93.3 357,325,169 44,286,201 8,395,707 52,681,908
(1) As valued in the first year for the purpose of computing the rates of taxes collectible in the following year. (2) The value of motor and recreational vehicles is not included in total property valuation for determining the property tax levy. It
is, however, included in total property valuation for determining the City’s debt limit.
Source: The Sedgwick County Clerk’s Office, the Kansas Department of Revenue, and the City of Bel Aire, Kansas. For an explanation of Kansas property taxes, see Appendix III.
2017/18 Equalized Assessed Tangible Valuation: $66,622,889 Real Property $54,566,500 96.6% Personal Property 211,058 0.4 State Assessed Utilities 1,723,841 3.1 Total Taxable Assessed Valuation $56,501,399 100.0% Motor and Recreational Vehicles 10,121,490 Total Equalized Assessed Tangible Valuation $66,622,889
Source: Sedgwick County Clerk’s Office
109
Major Taxpayers
According to the Sedgwick County tax rolls, the ten (10) largest taxpayers with property located within the City as of 2017, and their assessed valuations, are as follows:
Firm
Assessed Valuation
Total Taxes Due
1.) JDO LLC $2,023,570 $92,515.60 2.) Alley Investments, LLC 1,379,030 63,047.89 3.) Kansas Gas & Electric-A Westar Energy Co. 873,092 39,916.89 4.) Kansas Gas Service – A Division of Oneok 504,321 23,057.05 5.) Catholic Care Center 468,751 21,430.83 6.) Belpointe LLC 336,925 15,403.87 7.) RKR LLC 336,576 15,387.93 8.) Scarlet Maples LLC 287,735 13,154.93
9.) SMM Investments LLC 282,005 12,892.99 10.) Family Video Movie Club Inc. 281,625 12,875.61
Source: County Clerk
City Tax Rates, Levies and Collections
Property taxes are certified by the City to the County Clerk by August 25 of each year for the
following fiscal year. Taxes are levied by the County Clerk and payable to the County Treasurer. Property taxes may be paid in two installments, the first due December 20 in the year the taxes are levied and the second due May 10 of the following year. Taxes become delinquent after May 10 and interest accrues at a rate set by State statute until paid or until the property is sold for taxes. Special assessments are levied and collected in the same manner as property taxes.
The property taxes levied and collected for the last five (5) years for the City of Bel Aire and all
other taxing jurisdictions of real and personal property located within the City are as follows: Aggregate Tax Levies The aggregate tax levies (per $1,000 assessed valuation) of the City and overlapping jurisdictions for the years indicated are included in the following table:
Year
City
Sedgwick County
Unified School District No. 259
State
Other
Total Levy
2017/18 45.719 47.785 53.733 1.500 1.253 149.990
2016/17 45.726 47.807 53.683 1.500 1.253 149.969
2015/16 46.246 47.754 56.278 1.500 1.132 152.910
2014/15 45.730 49.345 53.735 1.500 1.133 151.443
2013/14 45.695 47.725 57.215 1.500 1.126 153.261
2012/13 46.162 47.845 57.185 1.500 1.138 153.830 Source: County Clerk
110
Tax Rates for a City Resident in USD No. 259 (Wichita) (Expressed in Mills)
Levy Year
Budget Year
City of Bel Aire
Sedgwick County
USD 259 (Wichita) State Other Total
2017 2018 45.719 47.785 53.733 1.500 1.253 149.990 2016 2017 45.726 47.807 53.683 1.500 1.253 149.969 2015 2016 46.246 47.754 56.278 1.500 1.132 152.910 2014 2015 45.730 47.845 53.735 1.500 1.133 149.943 2013 2014 45.695 47.725 57.215 1.500 1.126 153.261
Source: Sedgwick County Clerk’s Office
Tax Levies and Collections The City may levy taxes in accordance with the requirements of its adopted budget and within the restrictions of Kansas statute. The County Clerk determines property tax levies based on the assessed valuation provided by the appraiser and spreads the levies on the tax rolls.
Levy Year/ Budget Year
Total Tax Levy
Current Tax
Collections
% Current Tax
Collected
Prior Years Tax Collected
Total Tax Collections
Ratio Collection
Versus Levy
2017/18 $2,584,488 $2,516,618 97.37% $27,816 $2,544,434 98.45% 2016/17 2,401,245 2,355,290 98.09 26,900 2,382,190 99.21 2015/16 2,227,576 2,181,391 97.93 31,587 2,212,978 99.34 2014/15 2,071,995 2,023,406 97.65 31,562 2,054,968 99.18 2013/14 2,023,678 1,984,970 98.09 30,143 2,015,113 99.58
Sources: Sedgwick County Treasurer’s Office and the City.
Sales Tax Collections The following table sets forth the City’s portion of the Sedgwick County sales tax collections in the years indicated:
Year Amount Received
2018 (9-30) 943,806 2017 $1,174,000 2016 1,165,977 2015 1,093,371 2014 1,039,547 2013 1,008,037
Source: The City
111
��������������������������
112
APPENDIX C: CITY INDEBTEDNESS
DEBT STRUCTURE OF THE CITY General Obligation Bonds
Date Of Issue
Original Amount Purpose
Final Maturity
Est. Principal Outstanding
As of 12/31/2017
% Subject To the
Debt Limit
Amount Subject to
the Debt Limit
01-15-2009 $2,200,000 Taxable Refunding & Improvements 11-01-2019 $1,570,000 100.00% $1,570,000
01-15-2011 2,885,000 Refunding & Improvements 10-01-2031 2,000,000 57.78% 1,155,600
05-15-2012 5,215,000 Improvements 10-01-2032 4,175,000 39.31% 1,641,193 09-30-2013 3,895,000 Improvements 10-01-2033 3,355,000 30.68% 1,029,314 07-30-2014 1,100,000 Improvements 10-01-2034 960,000 30.90% 296,640 05-05-2015 5,390,000 Refunding 11-01-2027 4,755,000 29.62% 1,408,431 05-05-2015 575,000 Refunding 11-01-2027 510,000 59.29% 302,379 11-24-2015 3,960,000 Improvements 11-01-2036 3,800,000 7.53% 286,140 11-24-2015
220,000 Taxable Improvements 11-01-2036 215,000 100.00% 215,000
11-22-2016 2,820,000 Improvements 11-01-2036 2,820,000 51.46% 1,451,172 11-23-2017 5,545,000 Improvements 11-01-2038 5,545,000 58.87% 3,264,342 Total $29,705,000 $12,620,032
General Obligation Temporary Notes
Date Of Issue
Original Amount Purpose
Final Maturity
Est. Principal Outstanding
As of 12/31/2017
% Subject To the
Debt Limit
Amount Subject to
the Debt Limit 11-22-2016 $6,675,000 Improvements 12-01-2019 $6,675,000 46.62% $3,111,885 11-23-2017 2,130,000 Improvements 12-01-2020 2,130,000 52.12 1,110,156 11-23-2017 175,000 Improvements 01-01-2019 175,000 0.00 - Total $8,980,000 $4,222,041
Public Building Commission Revenue Bonds
Date Of Issue
Original Amount Purpose
Final Maturity
Est. Principal Outstanding
As of 12/31/2017
% Subject To the
Debt Limit
Amount Subject to
the Debt Limit 04-15-2010 $19,315,000 Taxable Refunding 05-01-2035 $495,000 -0- -0- 12-18-2014 3,050,000 Revenue Refunding 02-01-2030 2,725,000 -0- -0- 12-18-2014 1,120,000 Taxable Revenue Refunding 02-01-2030 1,000,000 -0- -0- 07/13/2017 17,755,000 Refunding Revenue 05-01-2034 17,755,000 -0- -0- Total $21,975,000
Source: The City
113
Estimated Fiscal Year Debt Service Payments Excluding All Temporary Notes General Obligation Bonds
And Notes Public Building Commission
Revenue Bonds Fiscal Year Principal
Principal & Interest
Principal
Principal & Interest
2018 $1,815,000 $2,820,359 $240,000 $1,372,155 2019 8,890,000 9,861,148 245,000 1,371,955 2020 4,180,000 5,016,310 745,000 1,865,405 2021 2,110,000 2,858,418 780,000 1,862,718 2022 2,170,000 2,864,578 825,000 1,868,025 2023 1,840,000 2,478,096 945,000 1,944,808 2024 1,885,000 2,470,939 1,045,000 1,993,515 2025 1,940,000 2,471,146 1,140,000 2,031,495 2026 1,985,000 2,457,021 1,240,000 2,068,540 2027 1,905,000 2,315,143 1,370,000 2,125,378 2028 1,415,000 1,762,915 1,495,000 2,169,197 2029 1,415,000 1,712,043 1,630,000 2,215,173 2030 1,230,000 1,475,273 1,790,000 2,276,992 2031 1,280,000 1,483,808 1,580,000 1,966,828 2032 1,235,000 1,395,138 1,730,000 2,014,902 2033 930,000 1,048,063 1,895,000 2,061,847 2034 765,000 849,806 550,000 587,532 2035 555,000 611,950 - - 2036 575,000 613,025 - - 2037 320,000 338,400 2038 245,000 252,656
Total $38,685,000 $47,156,235 $19,245,000 $31,796,465
City Indebtedness (1)
2017/18 Total Equalized Assessed Tangible Valuation $66,622,889 Debt Limit Ratio 30% Debt Limit $19,986,867 Outstanding Debt Subject to Debt Limit (16,842,073) Debt Authority Remaining December 31, 2017 $3,144,794
(1) General Obligation Bonds and Temporary Notes issued to finance utility improvements, revenue bonds, and refunding bonds are not subject to the debt limit.
114
Debt Ratios (1)
G.O. Direct Debt
G.O. Direct & Overlapping Debt
2017/18 Appraised Valuation ($447,620,939) 8.64% 10.86% 2017/18 Equalized Assessed Tangible Valuation ($66,622,889) 58.07% 72.94% Per Capita (7,914 – 2017 U.S. Census Estimate) $4,888.17 $6,140.05
(1) Excludes Public Building Commission revenue bonds.
The City maintains an A+ rating from Standard & Poor’s.
The City of Bel Aire has never in its history monetarily defaulted on the payment of any of its
debts of lease obligations.
115
[THIS PAGE INTENTIONALLY LEFT BLANK]
APPENDIX E
Form of Bond Counsel’s Legal Opinions
E-1
[THIS PAGE INTENTIONALLY LEFT BLANK]
E-2
November 21, 2019
Governing Body Country Club Bank City of Bel Aire, Kansas Prairie Village, Kansas Robert W. Baird & Co. Build America Mutual Assurance Company Milwaukee, Wisconsin New York, New York Re: $6,060,000 General Obligation Bonds, Series 2019A (the “Series 2019A
Bonds”), and $1,430,000 Taxable General Obligation Refunding Bonds, Series 2019B (the “Series 2019B Bonds”) of the City of Bel Aire, Kansas, Dated November 21, 2019
We have acted as Bond Counsel in connection with the issuance by the City of Bel Aire, Kansas (the “Issuer”), of the above-captioned Series 2019A Bonds and Series 2019B Bonds (jointly, the “Bonds”). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer prescribing the details of the Bonds. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Series 2019A Bonds are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The balance of the principal and interest on the Series 2019A Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer.
The Series 2019B Bonds are payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer.
E-3
$6,060,000 General Obligation Bonds, Series 2019A; and $1,430,000 Taxable General Obligation Refunding Bonds, Series 2019B City of Bel Aire, Kansas Dated November 21, 2019 Page 2
The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds to the extent that necessary funds are not provided from other sources. 3. The interest on the Series 2019A Bonds (including any original issue discount properly allocable to an owner of a Series 2019A Bond) is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issuance of the Series 2019A Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Series 2019A Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2019A Bonds. The Series 2019A Bonds are “qualified tax-exempt obligations” within the meaning of Code § 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Series 2019A Bonds.
We express no opinion regarding federal tax consequences arising with respect to the Series 2019B Bonds.
4. The interest on the Bonds is exempt from income taxation by the State of Kansas.
We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth in this opinion. The rights of the owners of the Bonds and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion.
E-4
November 21, 2019 Governing Body Country Club Bank City of Bel Aire, Kansas Prairie Village, Kansas Re: $2,860,000 General Obligation Temporary Renewal and Improvement Notes,
Series 2019C of the City of Bel Aire, Kansas, Dated November 21, 2019 We have acted as Bond Counsel in connection with the issuance by the City of Bel Aire, Kansas (the “Issuer”), of the above-captioned Notes (the “Notes”). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the details of the Notes. Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify them by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes have been duly authorized, executed and delivered by the Issuer and are valid and legally binding general obligations of the Issuer. 2. The Notes are payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements or from general obligation bonds of the Issuer and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Notes to the extent that necessary funds are not provided from other sources 3. The interest on the Notes is: (a) excludable from gross income for federal income tax purposes; and (b) not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the Issuer complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issuance of the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to comply with certain of these requirements may cause interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the
E-5
$2,860,000 City of Bel Aire, Kansas General Obligation Temporary Renewal and Improvement Notes Series 2019C, Dated November 21, 2019 Page 2 Notes. The Notes are “qualified tax-exempt obligations” within the meaning of Code § 265(b)(3). We express no opinion regarding other federal tax consequences arising with respect to the Notes. 4. The interest on the Notes is exempt from income taxation by the State of Kansas. We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Notes (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Notes other than as expressly set forth in this opinion. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion.
E-6
F-1
APPENDIX F
SPECIMEN MUNICIPAL BOND INSURANCE POLICY
MUNICIPAL BOND INSURANCE POLICY
ISSUER: [NAME OF ISSUER] Policy No: _____ MEMBER: [NAME OF MEMBER] BONDS: $__________ in aggregate principal Effective Date: _________ amount of [NAME OF TRANSACTION] [and maturing on]
Risk Premium: $__________ Member Surplus Contribution: $ _________
Total Insurance Payment: $_________ BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY AND
IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above (as set forth in the documentation providing for the issuance and securing of the Bonds), for the benefit of the Owners or, at the election of BAM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.
On the later of the day on which such principal and interest becomes Due for Payment or the first Business Day following the Business Day on which BAM shall have received Notice of Nonpayment, BAM will disburse (but without duplication in the case of duplicate claims for the same Nonpayment) to or for the benefit of each Owner of the Bonds, the face amount of principal of and interest on the Bonds that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by BAM, in a form reasonably satisfactory to it, of (a) evidence of the Owner’s right to receive payment of such principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner’s rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in BAM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of the preceding sentence, and BAM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, any of whom may submit an amended Notice of Nonpayment. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond. Payment by BAM either to the Trustee or Paying Agent for the benefit of the Owners, or directly to the Owners, on account of any Nonpayment shall discharge the obligation of BAM under this Policy with respect to said Nonpayment.
Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as defined herein) are authorized or required by law or executive order to remain closed. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by an Owner, the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any other person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.
F-2
BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee, the Paying Agent, the Member and the Issuer specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee, the Paying Agent, the Member or the Issuer (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.
To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.
This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.
In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its
Authorized Officer.
BUILD AMERICA MUTUAL ASSURANCE COMPANY By: _______________________________________ Authorized Officer
F-3
Notices (Unless Otherwise Specified by BAM) Email: [email protected] Address: 200 Liberty Street, 27th floor New York, New York 10281 Telecopy: 212-962-1524 (attention: Claims)
F-4
[THIS PAGE INTENTIONALLY LEFT BLANK]
Printed By
TheMuniGroup