Tax Revenues Policy Memo and Presentation

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City of Kelsey

Comprehensive Annual Financial Report for the year ended June 2005

Making sense of your dollars

City of Kelsey

Mission of Kelsey

Amenities of the big city without sacrificing the small town charm

People of Kelsey

Mayor and Council

City Manager

Police

Fire

Administration

Development Services

Community Services

Transportation

City Values: Public Trust - we are honest, accountable and trustworthy

Customer Service - we provide excellent effective and efficient services to our citizen

Employees - we value and respect each other as we serve the public

Continuous Improvement – just as the needs of our residents change so must the service we provide. We look for innovative and imaginative team problem solving to deliver superior customer service

City of Kelsey

Introductory Section

The transmittal letter contained in this section includes information on the City's economic condition and outlook, major intiativies, and financial information

City of Kelsey

June 2005

Honorable Mayor and Councilmembers, City Manager and residence of Kelsey:

The comprehensive annual financial report of the City of Kelsey, for the year ended June 20, 2005, is hereby submitted in accordance state statutes. Both the City charter and state statutes require that the City issue an annual report on its financial position and activity. This report is audited by an independent certified public accountant. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures rests with City’s management. To the best of our knowledge, the enclosed data is accurate in all material respects.

These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for local governments as prescribed by the Governmental Standards Board (GASB).

The comprehensive annual report is presented in three sections: introductory, financial and statistical. The introductory section, which is unaudited, includes this letter and an organizational chart. The financial section includes general purpose financial statements, as well as the independent auditors’ letter, the combining fund statements, schedules and required supplementary information. The statistical section, which is unaudited, includes financial and demographic information.

The City is required to undergo an annual single audit in conformity with the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States and Local Governments and Non-Profit Organizations.

The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire Administrative Services Department. I also wish to thank you and members of the City Council for their interest and support in the planning and conducting the financial affairs of the City.

Respectfully Submitted,

Director of Administrative Services

City of Kelsey

The Reporting Entity

The City of Kelsey was founded by M. Kelsey, who realized that the sprawling fields, the pristine lake and the rolling hills provided the perfect landscape for farming and raising a family. His vision was to preserve the natural resources of the land and maintain a close- knit community. Kelsey's roots are grounded in a history of agriculture and self- sufficiency. Kelsey’s decennial growth rates have been below the statewide average with the exception of the period from 1900 to 1930 when Kelsey experienced its fastest growth; 19.7% from 1900 to 1910, 22.7% from 1910 to 1920 and 12.4% from 1920 to 1930. During the 1960’s and 1970’s, Kelsey saw a loss of population. The 1970 census showed a 1.5% decrease from the 1960 population and the 1980 census showed an additional loss of 7.3%. This negative trend was reversed in the 1980’s and the 1990 census showed an increase of 1.7%; the city’s slowest population growth rate. Over one hundred years, Kelsey's population increased by 280,000 residents, going from 342,768 in 1900 to 625,233 residents in 2000. Kelsey is ranked 1st among Northwest Valley incorporated cities and towns.

The City of Kelsey provides a full range of services that include public safety, development and community services. Where effective and efficient services are provided by private companies, for example building maitainance and trash collection has historically been awarded to low cost bidder. Sevices provided must be at the highest quality, this year the resident satisation survey ranked privatally provided services at 98% over satisfaction.

Year in Review

The City of Kelsey is a modertly growing city. The quality of life in Kelsey is enhanced by the City’s development of cultural actitives and the maintenance of our agricultural roots. Kelsey faces growth issuess, but its residents and municipal government are committed to finding solutions for the future.

The continuing trend of new housing starts during this year increased the size of our community. This growth must be balanced with our agricultural roots. City planning and zoning is the key to long term City growth management.

In September of last year, our citizens approved $2,000,000 in general obligation bonds. These funds are for street sign renovation and repair and park enhancements.

Economic Outlook

The economic outlook is good for Kelsey with strong and stable fund balance reserves. As a result of the continued retail and commercial improvements, the City can diversify and strengthen its revenue base without comprising our small town values.

City of Kelsey

The State economy continues to experience a period of relatively strong growth. This current growth has increased the City’s allocation of state shared funds for transportation.

Financial Information

In developing the City’s accounting system, focus is given to internal accounting controls. Internal controls are designed to provide reasonable, but not absolute, assurance reguarding the safegarding of assets. The concept reasonable assurance recognizes that cost of a control should not exceed the benefit. The cost/benefit evaluation is a judgement made by management.

Budget Controls

The City of Kelsey, as is all cities in this state, is mandated to adopt an annual budget. The City maintains budgetary controls to ensure expenditures do not exceed appropriated funds on a citywide financial basis.

Single Audit

As a recipient state assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure complaince with applicable laws. The internal control structure is subject to periodic evaluation by management. As part of the City’s single audit, tests are made of the internal control structure and its compliance.

Financial Structure

The City’s operating budget is organized into funds in accordance with Generally Accepted Accounting Principle (GAAP) with guidelines established by the Governmental Accounting Standards Board (GASB). The City of Kelsey financial structure separates resources into five funds. Funds are a self balancing set of accounts can be viewed a mini-checkbooks or subsidies with specific purpose.

Overview of Major Fund Types

General Governmental

General Fund (GF) – Used to account for the majority of general government operating activities (e.g. Police, Fire, Administration).

Debt Service Funds (DSF) - Used to account for financial resources segregated to pay principal or interest on long-term general liabilities; this fund has much in common with sinking funds set aside funds to retire debt.

City of Kelsey

Capital Projects Funds (CPF) - Used to account for financial resources segregated to pay for construction or acquisition of long-lived capital assets; used to set aside resources to fund construction, does not have assets. Permanent Funds - (PF) Used to account for resources provided by trust in which the earnings but not the principal must be used for public purposes (e.g. donation can only use interest).

Special Revenue Funds (SRF) - Used when required by law or by policy to account for financial resources earmarked for a specified operating purpose (e.g. toll on highway to collect fund for highway repair and maintenance).

General Governmental Overview

The citywide operating budget for FY 2005-06 $37.5 million, and represent a 6.4% operating budget growth. Much of the operating budget growth is due to an increase in funds for Police and Community Services reflecting the City’s continued commitment to public safety, youth and social services programs.

General Fund appropriations grew by 6.7% in FY 2005-06. This primarily reflects funding for new employees to address workload increases in the Police Department, Development Services, Council priorities in Community Services, and increases for employee health care and retirement.

General Fund

Fund Structure Description

The General Fund is the general operating fund of the City and is used to account for all financial activity not reflected in another fund.

Major Services

The General Fund consists of the following major functions:

• Administrative Services-Accounting, Budget, Human Resources, Facilities • Police • Fire • Community Services • Development Services

Revenue Structure

Major revenue sources for the fiscal years are: Local Sales Taxes, Charges for Services, Property Taxes, Charges for Services, and All Other.

City of Kelsey

Local Sales Taxes Local sales tax revenues are estimated at $30.0 million in FY 2005-06, derived from a 1.1% City sales tax. Over half of the sales tax revenue comes from retail sales, with the remainder collected primarily from rental payments, utility and telecommunication payments, restaurant and bar sales and contracting sales. While Kelsey's single largest revenue source is highly responsive to changes in economic activity, the diverse and robust nature.

Property Tax Kelsey’s property tax rate is $1.00 per $100 of assessed valuation, consisting of a primary tax rate of $0.80 per $100 of assessed valuation and a secondary tax rate of $0.20 per $100 of assessed valuation. Only the primary levy goes to the General Fund. While there is no restriction on its usage, the primary levy is limited by state law to a 2% annual increase plus any amount generated by new construction. The primary levy is estimated at $2.0 million for FY 2005-06.

Expenditure Structure

As the City of Kelsey is a service entity it is not surprising that the largest expenditure is personal services. For the FY 2005-06 Personal Services account for 80% of the total budget. The remainer of the 20% appropriated funds is for Fees and Services (10%), Materials and Supplies (5%), and Capital (5%).

Personnel expenditures increase by 4% primarily due to increases in health care and retirement contribution rate. Additional staff was added in accordance with Councils’ Police and Community Services reflecting the City’s continued commitment to public safety, youth and social services programs.

Transportation Funds

Fund Structure Description

The Highway User Revenue Fund (HURF) and the Local Transportation Assistance Fund (LTAF) are Special Revenue funds that comprise the City’s Transportation funds. They have been established to account for the receipt and expenditure of Kelsey’s allocation of state-shared Highway User taxes and state Lottery funds.

Major Services

Studies and Design Operations Traffic Lights and Signal System Street and Field Maintenance Planning

City of Kelsey

Revenue Structure

Transportation revenues are derived primarily 95.0% from state-shared Highway User taxes. State Lottery proceeds account for 5.0% of FY 2005-06. Highway User Tax

Highway User revenues come primarily (60%) from the fuel tax (currently $0.05 per gallon), with the remainder from motor carrier fees (20%), vehicle license taxes (10%), vehicle registration fees (5%), and other transportation-related fees (5%). Estimates for the total pool of HURF revenues to be shared by cities will be $290.9 million in FY 2005-06, with Kelsey’s share at $3 million. Experience has shown, however, that state projections for HURF revenue have not proven reliable. In short, HURF revenues are subject to state policy changes, fuel sales, and population growth, all factors beyond the City’s control. Pursuant to state statute, HURF monies can be used only for street and highway purposes, including right-of-way acquisition, construction, reconstruction, maintenance in the public right-of-way, and payment of debt service on highway and street bonds. HURF funds may not be used for transit or law enforcement programs.

Expenditure Structure

Transportation funds include all personnel in the Streets and Traffic Operations and Transporations Divisions. Major budgeted expenditures include: Major budgeted expenditures include: Personnel Services (42%), Utilities (20%), Material and Supplies (10%), Fees and Services (23%), and Capital (5%). Non-personnel expenditures are due to the installation of new energy efficient hollagen street signs. Non-personnel expenditures are due to the installation of new energy efficient hollagen street signs.

Debt Service Fund

Fund Structure Description

A Debt Service fund is maintained to receive dedciated revenues used to make principal and interest payments on the City’s general obligaition debt.

Revenue Structure

Debt Service fund revenues are derived soley from a secondary tax rate of $0.20 per $100 of assessed valuation. Debt Service revenues trends are a function of changes in assessed valuation and the City’s secondary property tax rate. While changes in the assessed valution represent the effect of marketplace and assessor methodology, the secondary rate is deterimined by City policy.

City of Kelsey

Expenditure Structure Expenditures in this fund are confined to principal and interest on voter approved bond indebtness. To keep these costs in check, the Council adopted a long-range debt management plan, which is updated annually based on populations growth, tax base growth, and current levels of operating expenses. Cash Management

Temporary idle cash during the year was invested in the State Treasurer’s Investment Pool and overnight purchase agreements collateralized by the U.S. Government securities. The average yield on unrestricted investment was 6.3% of the year ended.

Risk Management

The City’s self insurance fund in at $10 million dollars and is the responsibility of Administrative Services. The City also participates in the State risk management fund for claims over $10 million. Worker Compensation claims are also handled by the State.

Independent Audit

The City’s charter required an annul audit by independent certified accountants. The auditor’s report on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of this report.

City of Kelsey

Financial Section

The following section contains the City's independent auditors' report, combined general purpose financial statements, and financial statements for individual funds.

City of Kelsey

Independent Auditor’s Report

We have audited the accompanying general purpose financial statements and the combining and individual fund and account group financial statements and schedules of City of Kelsey (the “Government”), as of June 30, 2005, for the year then ended, listed in the foregoing table of contents. These financial statements are the responsibility of the management of the Government. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Government at June 30, 2005 and the results of its operations and the cash flows in generally accepted accounting principles. Also, in our opinion, the combining and individual fund and account group financial statements and schedules, present fairly, in all material respects, the financial position of each of the individual funds and account groups of the Government at June 30, 2005, and the results of operations of such funds and the cash flows of individual proprietary and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting principles.

Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements and on the combining and individual fund and account group financial statements and schedules taken as a whole. The accompanying financial information listed as supplemental schedules in the foregoing table of contents presented for the purpose of additional analysis and is not a required part of the financial statements of the Government. The supplemental schedules are also the responsibility of the management of the Government. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose, combining, and individual fund and account group financial statements and schedules and, in our opinion, based upon our audit and the reports of other auditors, is fairly stated in all material respects when considered in relation to the financial statements of each of the respective individual funds and account groups taken as a whole.

In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2005, on our consideration of the Government’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants.

The statistical data presented for the purpose of additional analysis and is not a required part of the general purpose financial statements of the Government. Such additional information has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no opinion on it.

City of Kelsey

Combined Balance Sheet - All Funds Types and Account Groups June 2005

with Comparative totals for June 30, 2004

General

General Governmental Transit Special Debt

Revenue Service

Capital Projects

General Fixed Assets

General

Long-Term Debt

2005

Totals

2004 Assets

Pooled cash and investments Receivables:

Taxes

$26,333,869

2,430,550

$847,833

47,143

$4,381,890

159,386

$6,686,942 $38,250,533

2,637,080

$37,485,523

2,584,338 Accounts 865,018 865,018 847,718 Accrued interest 378,509 5,002 383,511 375,841

Due from other funds 244,938 244,938 240,039 Due from other governments 443,638 117,239 1,323,065 1,883,942 1,846,263 Inventories 100,127 100,127 98,125 Prepaid items 1,450 Restricted cash and investments 20,785 3,027,648 3,048,434 2,987,465 Property, plant, and equipment (net of depreciation) 50,495,035 50,495,035 49,485,134

Amount to be provided for retirement of general long-term debt 35,000,000 35,000,000 39,500 Total assets 30,817,435 1,017,217 7,568,924 8,010,007 50,495,035 35,000,000 132,908,618 130,250,445

Liabilities, Equity and Other Credits

Liabilities Accounts payable 1,142,275 170,825 5,176 977,622 2,295,898 2,249,980 Deposits 2,437,362 2,437,362 2,388,614 Accrued expenditures 1,534,777 1,692 4,300,505 5,836,973 5,720,234 Claims and judgements 272,202 304 272,507 267,057 Due to other governments 17,668 17,668 17,315 Deferred revenue 484,261 104,393 588,654 576,881 Matured bonds payable 2,218,333 2,218,333 2,173,967 Matured interest payable 795,787 795,787 779,871 Capital improvements note payable 23,344,585 23,344,585 22,877,693 Capital leases 7,354,910 7,354,910 7,207,812

Total liabilities 5,888,545 172,821 3,123,689 977,622 0 35,000,000 45,162,677 44,259,423 Equity and other Credits

Contributed Capital Investment in general fixed assests 50,495,035 50,495,035 Fund balances: Reserved for:

Encumbrances 364,216 36,711 6,517,452 6,918,379 6,780,011 Inventories 100,127 100,127 98,125 Notes receivable 190,000 190,000 186,200 Debt Service 4,445,235 4,445,235 4,356,331

Unreserved, designated 12,780,962 12,780,962 12,525,343 Unreserved, reported in:

General fund 11,493,585 11,493,585 11,263,713 Special revenue funds 807,684 807,684 791,531 Capital projects funds 514,933 514,933 504,634

Total fund balances 24,928,890 844,396 4,445,235 7,032,385 37,250,906 36,505,888 Total liabilities, equity and other credits $30,817,435 $ 1,017,217 $ 7,568,924 $ 8,010,007 $50,495,035 $ 35,000,000 $132,908,618 $130,250,445

City of Kelsey

City of Kelsey Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds June 30, 2005

Transit Special

Capital

Total Governmental

Revenues: General Taxes:

Revenue Debt Service Projects Funds

Sales taxes $31,625,959 $31,625,959 Property taxes 2,898,211 4,570,060 7,468,271 Franchise taxes 485,695 485,695

Intergovernmental: Federal grants 235 235 Highway User Revenue Fund 2,900,000 2,900,000 Other

Investment income 448,324 10,000 458,324 Charges for services 2,568,047 2,568,047 Fines and forfeitures 1,943,711 1,943,711 Licenses and permits 377,172 377,172 M iscellaneous 762,136 762,136

Total revenues 41,109,489 2,900,000 4,580,060 48,589,549

Expenditures: Current:

Police 15,873,596 15,873,596 Fire 5,207,602 5,207,602 Community services 5,855,528 5,855,528 Public Works 2,498,372 2,498,372 Mayor and council 135,939 135,939 City manager 1,486,075 1,486,075 Development services 6,428,871 6,428,871 Adminstrative Services 1,672,301 1,672,301

Debt service: 36,659,912 36,659,912 Principal retirement 0 1,147,173 2,500,000 3,647,173 Interest and fiscal fees 0 2,200,000 150,000 2,350,000

Capital outlay 3,500,000 3,500,000 Total Expenditures 36,659,912 5,845,545 2,650,000 3,500,000 48,655,457

Excess (deficiency) of revenues over expenditures before other financing sources (uses) 4,449,577 (2,945,545) 1,930,060 (3,500,000) (65,908)

Other financing sources (uses):

Transfers in 120,165 200,000 1,305,000 1,625,165 Transfers out (2,021,495) (1,505,000) (3,526,495) Issuance of debt 0 2,000,000 2,000,000 Premium on issuance of debt 0 195,000 195,000 Capital lease proceeds 211,178 211,178 Proceeds from sale of capital assets 2,830,956 2,830,956 Proceeds of refunding bonds 2,000,000 2,000,000 Payment to refunded bond escrow agent 10,000 10,000

Total other financing sources (uses) 1,140,803 (1,505,000) 2,210,000 3,500,000 5,345,803 Net change in fund balances 5,590,380 (4,450,545) 4,140,060 5,279,895 Fund balance at beginning of year 19,338,510 5,294,941 305,175 7,302,835 32,241,461 Fund balance at end of year $24,928,890 $844,396 $4,445,235 $7,302,835 $37,521,356 City of Kelsey

City of Kelsey Combined Statement of Revenues, Exenditures and Changes in Fund Balances

Budget and Acutal, General and Special Revenue Budget Basis June 30, 2005

General Fund Special Fund Totals

Actual Variance with Final Budget

Actual

Variance with Final Budget

Actual

Budgeted Amounts Positive Budgeted Amounts Positive Budgeted Amounts Amounts (budgetary basis) (Negative) Amounts (budgetary basis) (Negative) Amounts (budgetary basis) Revenues

Taxes

$ 34,309,667

$ 35,009,864

700,197

$ 34,309,667

$ 35,009,864 Intergovernmental 235 235 - 2,875,000 2,900,000 25,000 2,875,235 2,900,235 Investment income 448,324 430,129 (18,195) 448,324 430,129 Charges for services 2,516,686 2,568,047 51,361 2,516,686 2,568,047 Fines and forfeitures 1,904,837 1,943,711 38,874 1,904,837 1,943,711 Licenses and permits 369,629 377,172 7,543 369,629 377,172 Miscellaneous 800,000 762,136 (37,864) 800,000 762,136

Total revenues 40,349,377 41,091,294 741,917 2,875,000 2,900,000 25,000 43,224,377 43,991,294 Expenditures

Police

15,714,860

14,845,267

(869,593)

15,714,860

14,845,267 Fire 5,155,526 5,010,608 (144,918) 5,155,526 5,010,608 Community services 5,796,972 6,043,324 246,352 5,796,972 6,043,324 Public Works 2,675,000 2,498,372 176,628 2,675,000 2,498,372 Mayor and council 134,580 141,658 7,078 134,580 141,658 City manager 1,236,913 1,214,913 (22,000) 1,236,913 1,214,913 Development services 6,439,012 6,333,886 (105,126) 6,439,012 6,333,886 Administrative Services 1,679,000 1,500,727 (178,273) 1,679,000 1,500,727

Total current expenditures 36,156,863 35,090,383 (1,066,480) 2,675,000 2,498,372 176,628 38,831,863 37,588,755

Debt Service

3,347,173

Excess (deficiency) of revenues over expenditures

before other financing sources (uses) 4,192,514 6,000,911 1,808,397 (3,147,173) (2,945,545) (201,628) 1,045,341 3,055,366

Other financing sources (uses)

Transfers from other funds 120,165 120,165 120,165 120,165 Transfers to other funds (2,021,495) (2,021,495) (2,021,495) (2,021,495) Proceeds from sale of capital assets - - (1,505,000) (1,505,000) (1,505,000) (1,505,000)

Total other financing sources (uses) (1,901,330) (1,901,330) - (1,505,000) (1,505,000) (3,406,330) (3,406,330) Net change in fund balance 2,291,184 4,099,581 1,808,397 (4,652,173) (4,450,545) (201,628) (2,360,989) (350,964)

Fund balance at beginning of year 19,338,510 19,338,510 - 5,496,569 5,496,569 - 24,835,079 24,835,079

Fund balance at end of year $21,629,693 $23,438,091 $1,808,397 $844,396 $1,046,024 $201,628 $22,474,089 $24,484,115

City of Kelsey

Notes to the Financial Section A. Basis of Presentation

The financial statements of the City of Kelsey have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) as applied to governmental units. The Government Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The GASB pronouncements are recognized as U.S. generally accepted accounting principles for state and local governments.

This financial report has been prepared in conformity with GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, issued in June 1999.

B. Financial Reporting Entity

City of Kelsey is non-profit governmental entity thus exempt from federal and state income tax. For financial reporting purposes, the City has included all funds and account groups. The City has also considered all potential component units for which it is financially accountable and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete, and has determined there are none. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. The City has no component units that meet the GASB criteria. The City has only one enterprise fund but maintains separate accounts within the Enterprise Debt Service and Capital Projects.

C. Basis of Accounting

Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied.

The accompanying basic financial statements have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles. Revenues are recognized when earned. Expenses are recorded when the related liability is incurred. The principal operating revenues are rental and lease income, while the principal operating expenses are for the operations of the facilities that are being leased.

City of Kelsey

In accordance with Governmental Accounting Standards Board (GASB) Statement 20, the City has elected to apply the Financial Accounting Standards Board (FASB) Statements and interpretations issued after November 30, 1989.

D. Land Held for Resale

Land held for resale represents 3.52 acres of land located on 18th Avenue Northwest and 8th Street Northwest. The land is available for purchase for commercial development. Land held for resale is valued at the lower of cost or market value.

E. Capital Assets

Capital assets are valued at historical cost or estimated historical cost if historical cost is not available. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

F. Deferred Charges

Deferred charges consist of the unamortized bond issuance costs incurred on the Taxable General Obligation Development Refunding Bonds, Series 1997. The deferred charges are being amortized on the straight-line basis over the fifteen-year life of the bonds.

G. Unamortized Bond Discount

Discounts on the Bonds issued in 1997 are being amortized over the fifteen-year life of the bonds using the straight-line method.

H. Advances from Primary Government

Transactions between the primary government (State) and the City that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "advances from primary government."

I. Net Assets

Net Assets represent the difference between assets and liabilities in the basic financial statements. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long- term debt used to build or acquire the capital assets. Net assets are reported as restricted in the basic financial statement when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments.

City of Kelsey

NOTE 1 CASH AND INVESTMENTS The City of Kelsey maintains a cash and investment pool that is available for use by the City. The City deposits all investments within the State investment pool. Earnings from such investments are allocated to the City and respective City funds on the basis of applicable balance participation by each fund. The City’s investment pool does not specifically identify the Authority’s investments. Therefore, the investments are not categorized by level of risk in accordance with Governmental Accounting Standards Board (GASB) Statement 3.

NOTE 2 CAPITAL ASSETS

Fixed Assets

The following is a summary of changes in capital assets for the year ending June 30, 2005:

6/30/2004 Additions Deletions 6/30/2005

Buildings

$ $59,005,707

$ $163,809

$ - $ $59,169,516

Furniture and Fixtures 32,055,058 205,480 32,260,538

Subtotal $ 91,060,765 $ 369,289 $ - $ 91,430,054 Less: Accumulated Depreciation

40,910,400

24,619

40,935,019

Net Fixed Assets

$ $ 50,150,365

$ $ 344,670

$ - $ $ 50,495,035

NOTE 3 LONG-TERM DEBT

Bonds payable are comprised of the following individual issues:

Highway User Revenue

Interest Annual Maturity Bonds Rate % Principal Date Outstanding

Bonds of 1995 4.00-5.75 $ 55,000-145,000 02/01/16 $ 1,400,000

Development, Series 1994 6.90-8.50 $ 35,000-85,000 02/01/04 $ 480,000 Series 1997 5.75-7.30 180,000-345,000 02/01/11 1,995,000

Subtotal Development Bonds $ 2,475,000

Total Bonds Payable

$ 3,875,000

Less: Unamortized Bond Discount (17,786) Unamortized Loss on Bond Refinancing (66,000)

Net Long-Term Debt $ 3,791,214 Less Current Portion (830,000)

Long-Term Debt $ 2,961,214

City of Kelsey

Changes in long-term bonds payable are as follows:

6/30/04 Additions Deletions 6/30/05

Revenue Bonds $ 1,475,000 $ - $ 75,000 $ 1,400,000 Development Bonds 2,790,000 - 315,000 2,475,000 Total $ 4,265,000 $ - $ 390,000 $ 3,875,000

Annual requirements to retire bonds payable are as follows:

Highway User

Revenue Development Total Bonds Bonds

2004 $ 1,055,136 $ 148,842 $ 906,294 2005 2,218,333 795,787 3,014,120 2006 561,753 150,998 410,755 2007 563,965 151,578 412,387 2008 370,918 151,813 219,105 2009-2013 1,415,833 759,403 656,430 2014-2016 451,486 451,486 - $ 5,815,020 $ 2,609,907 $ 8,424,927

Less Interest Included (1,101,153) (564,203) (1,665,356)

Principal Payable $ 4,713,867 $ 2,045,704 $ 6,759,571

On January 1, 1997 the City advance refunded the 1988 and 1990 Taxable General Obligation Development Bonds to reduce its total debt service payments by $408,927 over the next fifteen years and to obtain a net present value savings of $281,155. The advance refunding resulted in a deferred loss on advance refunding of $123,774, which is being amortized over the life of the new bonds. The unamortized balance at December 31, 2003 is $66,000.

City of Kelsey

NOTE 4 BUDGET BASIS OF ACCOUNTING

Adjustments necessary to convert the fund balances for the fiscal year ended from GAAP to budget basis are as follows:

Fund Balances at June 30, 2005 General Special

GAAP basis $24,928,890 $844,396

Encumbrances reserved at June 30, but recognized as expenditure for budget purposes

Expense and claims payable not recognized as expenditures for budget purposes

Supply inventory expended when purchased for Fund balance designed for GAAP and expended for budget purposes

(125,403) (165,132)

691,147 379,261

(35,048) (12,501)

(2,021,495)

Budget basis $23,438,091 $1,046,024

City of Kelsey

City of Kelsey General Fund Balance Sheet June 30, 2005

2004 2005

Pooled cash and investments

Assets $25,807,192

$26,333,869

Receivables: Taxes

2,381,939

2,430,550

Accounts, net 847,718 865,018 Accrued interest 370,939 378,509

Due from other governments 674,804 688,576 Inventories 98,125 100,127 Restricted cash and investments 5,196 20,785

Total assets 30,185,913 30,817,435

Liabilities Accounts payable 1,142,177 1,142,275 Deposits 2,437,264 2,437,362 Accrued expenses 1,534,679 1,534,777 Claims and judgements 272,202 Due to other governments 272,104 17668 Deferred revenue 484,163 484,261

Total Liabilities 5,870,387 5,888,545

Fund Balance Fund Balance

Reserve for Encumbrances 750,000 364,216 Reserve for Inventory 120,000 100,127 Reserve for note recieveable 13,500 190,000 Unreserved:

Designated: Self-Insurance 10,000,000 5,000,000 Capital Projections 4,500,000 4,500,000 Carryforward Appropriations 1,000,000 1,993,585

Undesignated 7,932,026 12,780,962 Total Fund Balance 24,315,526 24,928,890

Total Liabilities and Fund Balance $30,185,913 $30,817,435

City of Kelsey

City of Kelsey General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance

June 30, 2005 2004 2005

Revenues Taxes $34,309,667 $35,009,864 Intergovernmental 235 Investment income 421,526 430,129 Charges for services 2,516,686 2,568,047 Fines and forfeitures 1,904,837 1,943,711 Licenses and permits 369,629 377,172 Miscellaneous 746,893 762,136 Total revenues 40,269,468 41,091,294 Expenditures

Police

14,727,079

14,845,267

Fire 4,970,717 5,010,608 Community services 5,995,211 6,043,324 Mayor and council 140,530 141,658 City manager 1,205,241 1,214,913 Development services 6,283,460 6,333,886 Administrative Services 1,488,779 1,500,727

Total expenditures 34,811,018 35,090,383

Excess (deficiency) of revenues and other sources over expenditures before other uses

5,458,450 6,000,911

Other financing sources (uses) Transfers from other funds

Transfers in 125,000 120,165 Transfers out (8,190,000) (2,021,495)

Total other financing sources (uses) (8,065,000) (1,901,330)

Excess(deficiency) of revenues and other sources over expenditures and other uses

(2,606,550) 4,099,581

Fund balance at beginning of year 21,945,059 19,338,510

Fund balance at end of year $19,338,510 $23,438,091

City of Kelsey

City of Kelsey General Fund

Statement of Revenues, Expenditures and Changes in Fund Balance- Budget to Actual

June 30, 2005

Budgeted Amounts

Variance with Actual Final Budget Amounts Positive

Revenues

Original Final (budgetary basis) (Negative)

Taxes $34,309,667 $35,009,864 $35,009,864 $0 Intergovernmental 235 235 235 - Investment income 448,324 448,324 430,129 (18,195) Charges for services 2,516,686 2,568,047 2,568,047 - Fines and forfeitures 1,904,837 1,943,711 1,943,711 - Licenses and permits 369,629 377,172 377,172 - Miscellaneous 800,000 762,136 762,136 -

Total revenues 40,349,377 41,109,489 41,091,294 (18,195)

Expenditures Police 15,714,860 15,873,596 14,845,267 1,028,329 Fire 5,155,526 5,207,602 5,010,608 196,994 Community services 5,796,972 5,855,528 6,043,324 (187,796) Mayor and council 134,580 135,939 141,658 (5,719) City manager 1,236,913 84,859 1,214,913 (1,130,054) Development services 6,439,012 6,428,871 6,333,886 94,985 Administrative Services 1,679,000 1,672,301 1,500,727 171,574

Total expenditures 36,156,863 35,258,696 35,090,383 168,313 Other financing sources (uses)

Transfers from other funds

120,165

- Transfers to other funds (2,021,495) (2,021,495) (2,021,495) - Proceeds from sale of capital assets - - - -

Total other financing sources (uses) (1,901,330) (1,901,330) (1,901,330) - Net change in fund balance $2,291,184 $3,949,463 $4,099,581 $150,118

City of Kelsey

Debt Service Fund

Debt Service fund is used to account for the accumulation of resources and payment of debt other than debt issued for Enterprise funds.

General Obligation – for the accumulation of resources and payment of general obligation debt.

City of Kelsey

City of Kelsey Debt Fund Balance Sheet

June 30, 2005

2004 2005

Assets Pooled cash and investments $4,294,252 $4,381,890 Receivables:

Taxes 156,199 159,386 Restricted cash and investments 2,967,095 3,027,648

Total assets 7,417,546 7,568,924

Liabilities, Equity and Other Credits Liabilities

Accounts payable 67,443 5,176 Deferred revenue 100,217 104,393 Matured bonds payable 2,129,600 2,218,333 Matured interest payable 763,956 795,787 Capital improvements note payable Capital leases

Total liabilities 3,061,215 3,123,689 Equity and other Credits

Debt Service Total fund balances 4,356,331 4,445,235 Total liabilities, equity and other credits $7,417,546 $7,568,924

City of Kelsey

City of Kelsey Debt Fund

Statement of Revenues, Expenditures and Changes in Fund Balance

June 30, 2005

2004 2005 Revenues Property Tax

$4,478,659

$4,570,060

Interest $9,800 10,000 Total revenues 4,478,659 4,580,060

Debt service:

Principal retirement 1,055,136 2,500,000 Interest and fiscal fees 148,842 150,000

Total Expenditures 1,203,978 2,650,000

Excess (deficiency) of revenues and other sources over expenditures before other uses

3,274,681 1,930,060

Other financing sources (uses)

Transfers to other funds (4,000,000) 200,000 Total other financing sources (uses) 200,000

Excess (deficiency) of revenues and other sources over expenditures and other uses

(725,319) 2,130,060

Fund balance at beginning of year 1,030,494 305,175

Fund balance at end of year $305,175 $2,435,235

City of Kelsey

Capital Improvement Fund Capital Improvement fund accounts for all current financial resources used for the acquisition of capital facilities. Disbursement from this fund is primarily for property acquisition and the construction of permanent public improvements. The major sources of financing are derived from bond proceeds and special revenues.

City of Kelsey

City of Kelsey Capital Improvements Fund Balance Sheet

June 30, 2005

Assets 2004 2005 Pooled cash and investments $6,598,006 $6,686,942 Due from other governments 1,305,468 1,323,065

Total assets 7,903,474 8,010,007

Liabilities, Equity and Other Credits

Liabilities Accounts payable 964,619 977,622

Total liabilities 964,619 977,622

Reserved for: Equity and other Credits

Encumbrances 6,430,770 6,517,452 Capital projects funds 508,084 514,933

Total fund balances 6,938,854 7,032,385 Total liabilities, equity and other credits $7,903,474 $8,010,007

City of Kelsey

City of Kelsey Capital Improvements Fund Statement of Revenues, Expenditures and Changes in

Fund Balance June 30, 2005

Expenditures 2004 2005

Capital Outlay $3,535,000 $3,500,000

Total Expenditures 3,535,000 3,500,000

Excess (deficiency) of revenues and other sources over expenditures before other uses

3,535,000 3,500,000

Other financing sources (uses)

Transfers to other funds 4,000,000 3,500,000 Total other financing sources (uses) 3,500,000

Excess (deficiency) of revenues and other sources over expenditures and other uses

465,000 -

Fund balance at beginning of year 6,837,835 7,302,835

Fund balance at end of year $7,302,835 $7,302,835

City of Kelsey

Special Revenue Fund Special revenue fund is used to account for specific revenues used to finance certain projects or activities as required by law or contractual agreement.

Transportation Fund – to account for the receipt and expenditure of the City’s share of the Highway Users taxes. State law restricts the use of these monies to maintenance, construction and reconstruction of streets, and repayment of transportation-related general obligation debt.

City of Kelsey

City of Kelsey Transportation Fund Balance Sheet June 30, 2005

Assets 2004 2005

Pooled cash and investments $830,876 $847,833 Receivables:

Taxes 46,200 47,143 Accrued interest 4,902 5,002

Due from other governments 114,894 117,239 Total assets 996,873 1,017,217

Liabilities

Accounts payable 170,727 170,825 Accrued expenses 1,594 1,692 Claims and judgments 206 304

Total Liabilities 172,527 172,821

Fund Balance Fund Balance

Reserve for Encumbrances 50,000 36,711 Undesignated 824,345 807,684

Total Fund Balance 874,345 844,396

Total Liabilities and Fund Balance $1,046,873 $1,017,217

City of Kelsey

City of Kelsey Transportation Fund

Statement of Revenues, Expenditures and Changes in Fund Balance

June 30, 2005

Revenues 2004 2005

Intergovernmental $2,842,000 $2,900,000 Total revenues 2,842,000 2,900,000

Expenditures Current:

Debt service:

Public works 2,537,770 2,498,372 Principal retirement 1,147,173 Interest and fiscal fees 2,200,000

Total Expenditures 2,537,770 5,845,545

Excess (deficiency) of revenues and other sources over expenditures before other uses

304,230 (2,945,545)

Other financing sources (uses)

Transfers to other funds (1,505,000) Total other financing sources (uses) (1,505,000)

Excess (deficiency) of revenues and other sources over expenditures and other uses

304,230 (4,450,545)

Fund balance at beginning of year 5,192,339 5,496,569

Fund balance at end of year $ 5,496,569 $ 1,046,024

City of Kelsey

Original Final (budgetary basis) (Negative)

$2,875,000

$2,900,000

$25,000 2,875,000 2,875,000 2,900,000 25,000

City of Kelsey Transportation Special Revenue Fund Statement of Revenues,

Expenditures and Changes in Fund Balance- Budget to Actual June 30, 2005

Budgeted Amounts

Variance with Actual Final Budget Amounts Positive

Revenues

Intergovernmental Total revenues

Expenditures

Current: Public works 2,675,000 2,600,298 2,498,372 (101,926)

Debt service: Principal retirement 1,147,173 1,147,173 1,147,173 Interest and fiscal fees 2,200,000 2,200,000 2,200,000 Total expenditures 6,022,173 5,947,471 5,845,545 (101,926)

Other financing sources (uses)

Transfers to other funds

(1,505,000)

Total other financing sources (uses) (1,505,000) (1,505,000) (1,505,000) Net change in fund balance ($4,652,174) ($4,577,471) ($4,450,545) $126,926

City of Kelsey

Statistical Section The following section contains various statistical schedules including historical revenue and expenditure comparisons, property taxes, debt service, and demographic information

City of Kelsey

City Of Kelsey

General Governmental Revenues by Source

Last Ten Years

Fiscal Year Ended

June 30, Taxes Intergovernmental Investment income Charges for services Fines and forfeitures Licenses and permits Miscellaneous Total

2005 $ 35,009,864 2,900,235 430,129 2,568,047 1,943,711 377,172 762,136 $ 43,991,294

2004 34,502,167 2,858,177 423,891 2,530,806 1,915,524 371,703 751,084 43,353,353

2003 34,001,833 2,816,729 417,744 2,494,105 1,887,746 366,312 740,192 42,724,663

2002 33,508,754 2,775,882 411,686 2,457,937 1,860,371 361,000 729,458 42,105,089

2001 33,022,826 2,735,628 405,716 2,422,293 1,833,393 355,765 718,880 41,494,501

2000 32,543,944 2,695,957 399,833 2,387,166 1,806,806 350,606 708,455 40,892,767

1999 32,072,007 2,656,861 394,035 2,352,549 1,780,604 345,522 698,181 40,299,759

1998 31,606,913 2,618,333 388,321 2,318,433 1,754,783 340,511 688,057 39,715,350

1997 31,148,564 2,580,363 382,689 2,284,812 1,729,336 335,573 678,079 39,139,417

1996 30,696,862 2,542,944 377,140 2,251,679 1,704,258 330,707 668,245 38,571,835

City of Kelsey

General Governmental Expenditure by Progam

Ten Years Ended Community Development Administrative

June 30, Police Fire services Public Works Mayor and council City manager services services Total

2005 14,845,267 5,010,608 6,043,324 2,498,372 141,658 1,214,913 6,333,886 1,500,727 37,588,755

2004 14,744,452 4,976,581 6,002,283 2,481,405 140,696 1,206,662 6,290,872 1,490,535 37,333,487

2003 14,644,321 4,942,784 5,961,521 2,464,554 139,741 1,198,468 6,248,150 1,480,413 37,079,953

2002 14,544,871 4,909,218 5,921,036 2,447,817 138,792 1,190,329 6,205,719 1,470,360 36,828,140

2001 14,446,095 4,875,879 5,880,826 2,431,194 137,849 1,182,245 6,163,575 1,460,374 36,578,038

2000 14,347,991 4,842,766 5,840,889 2,414,683 136,913 1,174,217 6,121,718 1,450,457 36,329,634

1999 14,250,553 4,809,879 5,801,223 2,398,285 135,983 1,166,243 6,080,145 1,440,607 36,082,917

1998 14,153,776 4,777,215 5,761,827 2,381,998 135,060 1,158,323 6,038,854 1,430,823 35,837,876

1997 14,057,657 4,744,772 5,722,698 2,365,822 134,142 1,150,456 5,997,844 1,421,107 35,594,498

1996 13,962,191 4,712,550 5,683,835 2,349,755 133,231 1,142,643 5,957,112 1,411,456 35,352,774

Note: (1) Includes general and special revenue

City of Kelsey

Assessed Value of Taxable Property

Last Ten Years

(Amounts Expressed in Millions)

Fiscal Year Ended June

30,

Tax Year Ended

December 31,

Real

Property

Personal Property

Public Service

Companies

Total Assessed Value (1)

2005

$ 46,042

$ 9,778

$ 3,705

$ 59,525

2004

29,471

9,153

2,835

41,459

2003

27,626

8,515

2,810

38,951

2002

25,972

7,765

2,978

36,715

2001

24,493

6,839

2,997

34,329

2000

23,054

5,903

3,096

32,053

1999

21,761

5,327

3,117

30,205

1998

20,843

5,131

3,315

29,289

1997

20,198

4,111

3,262

27,571

1996

13,275

4,113

2,701

20,089

Notes: (1) The County's property tax is levied each July 1 on the assessed value listed as of the prior January 1 for all real and personal property located in the County. Assessed valuations are established by the Board of County Commissioners at 100% of estimated market value for real property and 100% of actual value for personal property. Public service company property is certified by the State at 100% of actual value with no distinction between real and personal property values.

(2) A revaluation of real property is required by State Statutes at least every eight years.

City of Kelsey

Computation of Direct and Overlapping Debt for Northvalley County

June 30, 2005

Percentage Amount Net Bonded Applicable to Applicable to

Debt Kelsey Kelsey

DIRECT DEBT - City of Kelsey $4,500,000 100 $4,500,000

OVERLAPPING DEBT (1)

Northwest County 5,700,000 12 684,000 Fire District 28,384,593 2 567,692 County Hospital 1,898,155 17 322,686 Regional Transportation 2,000,000 32 640,000 County Health Care System 112,715,000 13 14,652,950 Regional Airport 2,160,139 5 108,007

TOTAL DIRECT AND OVERLAPPING DEBT $21,475,335

Note: (1) Overlapping debt does not include debt of the Special Airport District Riley County, as these bonds are payable by the Airport Authority out of airport revenues.

Outstanding County Hospital System is not included in overlapping debt, as these bonds are payable by the hospital out of hospital revenues.

City of Kelsey

Ratio of Annual Debt Service Expenditures for

General Obligation Debt

Last Ten Years

Ratio of Debt

Fiscal Year

Total General Service to

Total General Ended

June 30,

Principal

Interest Total Debt

Service Governmental

Expenditures Governmental

Expenditures

2005

$2,218,333

$795,787

$3,014,120

37,588,755

1,996,500

716,208

2,712,708

37,333,487

7% 2004

1,796,850

644,587

2,441,437

37,079,953

2003

1,617,165

580,129

2,197,294

36,828,140

1,455,449

522,116

1,977,564

36,578,038

5% 2002

1,309,904

469,904

1,779,808

36,329,634

2001

1,178,913

422,914

1,601,827

36,082,917

2000

1,061,022

954,920

380,622

342,560

1,441,644

1,297,480

35,837,876

35,594,498

1999

859,428

308,304

1,167,732

33,102,883

City of Kelsey

Ratio of Net General Bonded Debt

To Assessed Value and Net Bonded Debt Per Capita

Last Ten Years

Fiscal Year Ended June

30,

Population Estimate (1)

Total Assessed Value

Gross Bonded Debt

Percent of Net Bonded Debt to Assessed Value

Net Bonded

Debt Per Capita

2005

53,000

$595,254,943

$6,392,457

1.07

$ 121

2004

53,000

414,587,939

5,193,091

1.25

2003

53,000

389,508,578

5,326,178

1.37

100

2002

53,000

367,150,514

5,656,900

1.54

107

2001

53,000

343,374,227

4,350,450

1.27

2000

45,000

320,539,191

3,584,450

1.12

1999

45,000

302,052,170

2,705,950

0.90

1998

45,000

292,888,175

2,898,850

0.99

1997

45,000

275,710,535

1,854,550

0.67

1996

45,000

208,860,385

1,902,750

0.91

(1) U.S Census

City of Kelsey

Property value, Construction, and Bank Deposits

Last Ten Years

Non-Residential Residential Construction Construction Additions, Alterations Total Construction

Fiscal Year Ended June

30,

Tax Year Ended

December 31,

Property Value

Number of Units

Value

Number of Units

Value

Number of Units

Value

Number of Units

Value

Bank Deposits

on June 30,

2005

$ 595,254,943

890

$ 79,828,699

8,380

$11,687,926

4,509

$ 1,820,373

13,779

$ 93,336,998

$ 68,325,130

2004

414,587,939

852

63,744,016

9,182

12,366,009

3,948

1,864,599

13,982

77,974,624

65,886,680

2003

387,669,633

704

59,349,756

9,318

11,743,711

4,087

1,677,956

14,109

72,771,423

60,557,730

2002

367,150,514

625

51,456,069

8,271

9,947,408

4,153

1,101,201

13,049

62,504,677

56,113,980

2001

343,374,227

555

39,096,660

7,279

8,819,423

3,418

947,898

11,252

48,863,981

52,622,320

2000

320,539,191

684

36,821,670

6,607

8,253,052

3,012

691,981

10,303

45,766,703

51,227,000

1999

302,052,170

1,043

19,132,184

9,200

6,989,152

3,383

1,569,465

13,626

27,690,802

46,551,640

1998

292,888,176

716

17,098,107

8,583

8,756,211

3,315

1,275,668

12,616

27,129,986

47,519,884

1997

275,710,535

506

7,941,791

6,435

6,272,550

3,070

1,028,785

10,011

15,243,126

37,145,285

1996

200,886,039

484

1,122,339

5,648

4,681,445

3,044

993,143

9,176

6,796,927

35,815,910

City of Kelsey

Principal Taxpayers

Year Ended June

Percentage of Total

Type of 2005 Assessed Assessed *Tax Firm Enterprise Valuation Valuation Levy

Smith Systems Consulting, Inc Consulting $18,656,728 3.13 % 5,712,690

Huffman Trucking Trucking 3,952,233 .66 1,210,174 Kelsey Gardens

Agriculture

38,692,238

.65

11,847,563

Northvalley Telephone

Utility

2,499,650

.42

765,393

Northvalley Electricity

Utility

1,763,255

.30

539,909

Riley Community College

Education

1,600,832

.27

490,175

Northvalley Nat Gas

Utility

1,451,374

.24

444,411

MidState Airlines Corp. **

Transportation

1,431,711

.24

438,390

City of Kelsey Utilities 1,380,452 .23

Kelsey Day Care

Real Estate

1,353,461

.23

414,430

$72,781,935

6.37

$21,863,134

*Includes county property tax and late list penalty only; it does not include fire and special districts.

City of Kelsey

Demographic Statistics

Last Ten Years

Fiscal Year Ended June

30,

Population

Estimate (1)

School

Enrollment

Unemployment

Rate (1)

Per Capita Income (1)

Retail Sales (1) (in

millions)

2005

625,000

85,676

1.9%

$ 35,400

$ 17.42

2004

625,000

83,020

1.4

$ 34,200

$ 11.61

2003

625,000

81,393

1.5

$ 33,205

$ 11.54

2002

625,000

79,023

1.6

$ 30,251

$ 11.50

2001

625,000

74,550

2.0

$ 29,384

$ 10.18

2000

625,000

71,000

2.2

$ 28,858

$ 8.44

1999

614,000

67,171

2.6

$ 26,764

$ 7.65

1998

614,000

64,033

2.8

$ 24,841

$ 6.66

1997

614,000

61,393

3.7

$ 23,959

$ 5.45

1996

614,000

58,693

4.6

$ 22,805

$ 5.29

Source: (1) U.S. Census

City of Kelsey