SALINA AIRPORT AUTHORITY (SALINA, KANSAS)

Transcription

1 This Preliminary Official Statement and the information contained herein are subject to completion and amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This Preliminary Official Statement is intended solely for solicitation of initial bids to purchase the Bonds. New Issue Moody s Rating- Applied For Bank Qualified Bidders Option Insurance- Applied For In the opinion of Gilmore & Bell, P.C., Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Code of 1986, as amended (the Code ), the interest on the Series 2009-A Bonds (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes, except as described in this Official Statement, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. Under the Code, interest on the Series 2009-B Bonds is included in gross income for federal income tax purposes. The interest on the Bonds is excluded from computation of Kansas adjusted gross income. The Series 2009-A Bonds are qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Code. See TAX MATTERS herein. Dated: June 1, 2009 PRELIMINARY OFFICIAL STATEMENT DATED APRIL 30, 2009 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $2,045,000 (subject to change) GENERAL OBLIGATION BONDS SERIES 2009-A $6,130,000 (subject to change) TAXABLE GENERAL OBLIGATION BONDS SERIES 2009-B Due: As shown herein The Series 2009-A Bonds (the Series 2009-A Bonds ) and the Series 2009-B Bonds (the Series 2009-B Bonds ) (collectively, the Bonds ) will be issued by the Salina Airport Authority (Salina, Kansas) (the Authority or the Issuer ) as fully registered bonds, without coupons and, when issued, will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company ( DTC ), New York, New York. DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the Bond owners or registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (herein defined) of the Bonds. Principal of and semiannual interest on the Bonds will be paid from moneys available therefor under the Resolution (herein defined) by the State Treasurer of Kansas, as paying agent and bond registrar, referred to hereinafter as the Paying Agent. So long as DTC or its nominee, Cede & Co. is the Bond owner, such payments will be made directly to such Bond owner. DTC is expected, in turn, to remit such principal and interest to the DTC Participants (herein defined) for subsequent disbursement to the Beneficial Owners. Principal of the Bonds will be payable on each September 1 in the years shown below. Interest on the Bonds will be payable on each March 1 and September 1, beginning on March 1, MATURITY SCHEDULES (see inside front cover) The Bonds and the interest therein will constitute general obligations of the Authority, 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 City of Salina, Kansas. The full faith, credit, and resources of the Authority are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas. See THE BONDS - Security herein. The Bonds are offered when, as and if issued by the Authority subject to the unqualified approving opinion of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel whose opinion will accompany the Bonds. It is expected that the Bonds will be available for delivery through the facilities of DTC, New York City, New York, on or about June 10, BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF BOND SALE: On or before Noon, Central Daylight Time On Wednesday, May 20, 2009 THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.

2 MATURITY SCHEDULES $2,045,000 (subject to change) GENERAL OBLIGATION BONDS SERIES 2009-A Base CUSIP (1) Amount Maturity Rate Yield $105, * 620, * 645, * 675, * $6,130,000 (subject to change) TAXABLE GENERAL OBLIGATION BONDS SERIES 2009-B Base CUSIP (1) Amount Maturity Rate Yield $130, , , , , , , , , , , * 420, * 450, * 475, * 510, * 540, * 475, * *The Bonds maturing on or after September 1, 2020 are subject to redemption prior to maturity at the option of the Authority beginning on September 1, 2019 and thereafter, in whole or in part at any time, at a price equal to 100% of the principal amount thereof plus interest accrued to the redemption date. See THE BONDS Redemption Provisions herein. (1) CUSIP numbers have been assigned to this issue by Standard & Poor s CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc., and are included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above.

3 NOTICE OF SALE SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $2,045,000 * GENERAL OBLIGATION BONDS SERIES 2009-A $6,130,000 * TAXABLE GENERAL OBLIGATION BONDS SERIES 2009-B (GENERAL OBLIGATIONS PAYABLE FROM UNLIMITED AD VALOREM TAXES) BIDS Written and electronic (as explained below) bids for the purchase of above-referenced bonds (the Bonds ) of the Salina Airport Authority (Salina, Kansas) (the Issuer ) herein described will be received on behalf of the Issuer by the undersigned Manager of Administration and Finance of the Issuer, in the case of written bids, at the address hereinafter set forth, and in the case of electronic bids, via PARITY until 12:00 Noon, Central Time, on MAY 20, 2009 (the Sale Date ). All bids will be publicly evaluated at said time and place and the award of the securities will be acted upon by the governing body at its meeting to be held on the Sale Date. No oral or auction bids will be considered. THE SERIES 2009-A BONDS The Series 2009-A Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof (the Authorized Denomination ). The Series 2009-A Bonds will be dated June 1, 2009 (the Dated Date ), and will become due on September 1 in the years as follows: Maturity Date (September 1) Principal Amount* 2026 $105, , , ,000 The Series 2009-A Bonds will bear interest from the Dated Date at rates to be determined when such Series 2009-A Bonds are sold, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, * Preliminary; subject to change.

4 THE SERIES 2009-B BONDS The Series 2009-B Bonds will consist of fully registered bonds in the Authorized Denomination. The Series 2009-B Bonds will be dated June 1, 2009, and will become due on September 1 in the years as follows: Maturity Date (September 1) Principal Amount * Maturity Date (September 1) Principal Amount * 2010 $130, $375, , , , , , , , , , , , , , , ,000 The Series 2009-B Bonds will bear interest from the Dated Date at rates to be determined when such Series 2009-B Bonds are sold, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, PROVISIONS APPLICABLE TO BOTH SERIES OF BONDS Authority, Purpose and Security The Bonds are being issued pursuant to the provisions of K.S.A et seq. and et seq., all as amended, for the purpose of financing the cost of construction of certain capital improvements at the Salina Airport and Industrial Center and currently refunding a portion of the Issuer s Taxable General Obligation Temporary Notes, Series 2007, previously issued to finance the cost of certain capital improvements at the Salina Airport and Industrial Center. The principal of and interest on the Bonds will be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all of the taxable tangible property, real and personal, within the territorial limits of the City of Salina, Kansas. Place of Payment and Bond Registration. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check, draft or wire transfer of funds of the Treasurer of the State of Kansas, Topeka, Kansas (the Paying Agent and Bond Registrar ). The principal of each Bond will be payable at maturity or earlier redemption to the owners thereof whose names are on the registration books (the Bond Register ) of the Bond Registrar (the Registered Owner ) upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the Registered Owner of such Bond as of the fifteenth day (whether or not a business day) of the calendar month next preceding each Interest Payment Date (the Record Date ): (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered 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 wire transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Redemption of Bonds Prior to Maturity. Optional Redemption. At the option of the Issuer, Series 2009-A Bonds and Series 2009-B Bonds maturing on September 1, 2020 and thereafter may be called for redemption and payment prior to maturity, on September 1, 2019, and thereafter, in whole or in part at any time (the series, maturities and principal amounts of the Bonds of each maturity to be redeemed will be determined by the Issuer), at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. * Preliminary; subject to change. 2

5 Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds of a series scheduled to mature consecutively issued as term bonds scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (1) not less than all of the Bonds of the same serial maturity of a series shall be converted to term bonds with mandatory redemption requirements and (2) a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or including such information in an electronic bid submitted via PARITY. Selection of Bonds to be Redeemed. Whenever the Bond Registrar is to select Bonds for the purpose of redemption, it will, if less than all of the Bonds then outstanding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond in the denomination of $5,000. Notice and Effect of Call for Redemption. Unless waived by any owner of the Bonds to be redeemed, if the Issuer elects to call any Bonds for redemption and payment prior to the maturity thereof, the Issuer shall cause the Bond Registrar to give written notice of its intention to call and pay the Bonds on a specified date, the same being described by maturity, said notice to be mailed by United States first class mail addressed to the owners of said Bonds, such notice to be mailed not less than 30 days prior to the date fixed for redemption. The Issuer shall also give such additional notice as may be required by Kansas law or regulation of the Securities and Exchange Commission in effect on the date of such notice. If a Bond is called for redemption and payment, all interest on such Bond will cease from the date for which the call is made, provided funds are available for its payment at the redemption price. Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Bonds, depending on the amount of the premium, discount and interest rates bid by the successful bidder. The principal amount of any maturity may be adjusted by the Issuer in order to properly size the issue based on the premium, discount and interest rate bid on the Bonds. The successful bidder may not withdraw its bid or change the interest rates bid as a result of any changes made to the principal amount of the Bonds. If there is an increase or decrease in the final aggregate principal amount of the Bonds, the Issuer will notify the successful bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 2:00 p.m., Central Time, on the Sale Date. The net production as a percentage of the par amount of the Bonds generated from the bid of the Successful Bidder will not be decreased as a result of any change in the aggregate principal amount for Bonds or in the principal amount per maturity. Conditions of Bids. Bids may be submitted for one or more series of the Bonds. A separate bid must be submitted for each series of Bonds. Proposals will be received for the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Bonds of a series with the same maturity; (b) each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%; (c) no interest rate may exceed a rate equal to the daily yield for 10-year treasury bonds published by THE BOND BUYER in New York, New York, on the Monday next preceding the day of which the Bonds are sold, plus 5% for the Series 2009-A Bonds and plus 6% for the Series 2009-B Bonds; (d) the difference between the highest and lowest interest rate in any bid for the Series 2009-A Bonds shall not exceed 2.00%; and (e) the difference between the highest and lowest interest rate in any bid for the Series 2009-B Bonds shall not exceed 3.00%, provided, however, that if the rates for the Series 2009-B Bonds are in equal or ascending order according to maturity, such 3.00% limitation shall not apply. No bid of less than 98.00% of the principal amount of a series of Bonds and accrued interest thereon to the date of delivery will be considered and no supplemental interest payments will be considered. Each bid for a series of Bonds must specify the total interest cost to the Issuer during the term of such Bonds on the basis of such bid, the premium or discount, if any, offered by the bidder, and the net interest cost to the Issuer on the basis of such bid, all certified by the bidder to be correct and the Issuer will be entitled to rely on the certificate of correctness of the bidder. Each bid for a series of Bonds must also specify the TIC (as hereinafter defined) to the Issuer on the basis of such bid. Good Faith Deposit. Each bid for a series of the Bonds shall be accompanied by a good faith deposit (the Deposit ) in the amount of 2% of the principal amount of the applicable series of Bonds, in the form of (1) a certified or cashier s check drawn on a bank located in the United States of America, payable to the order of the Issuer, (2) a financial surety bond (the Surety Bond ), or (3) a wire of federal reserve funds, immediately available for use by the 3

6 Issuer. Good faith checks and wires submitted by unsuccessful bidders will be returned. No interest on the Deposit will be paid by the Issuer. The Issuer reserves the right to withhold reasonable charges for returning any wire transfers. All Surety Bonds must be from an insurance or surety company rated at least AA- by Standard and Poor s Ratings Services or Aa3 by Moody s Investors Service, and licensed to issue such a surety bond in the State of Kansas. The Surety Bond must be submitted to the Issuer prior to the Submittal Hour on the Sale Date and must identify each bidder whose deposit is guaranteed by such Surety Bond. If the sale of a series of the Bonds is awarded to a bidder utilizing a Surety Bond, the successful bidder is required to submit to the Issuer a cashier s or certified check or wire transfer of immediately available federal funds to such financial institution designated by the Issuer, not later than 2:00 p.m., Central Time on the next business day following the Sale Date. If such funds are not received by such time, the Surety Bond may be drawn on by the Issuer to satisfy the Deposit requirement. Any Deposits sent to the Issuer in the form of a wire transfer of federal reserve funds shall be sent to the Issuer pursuant to wire instructions which can be obtained from the Financial Adviser. All Deposits sent via wire transfer must be received by the Issuer, prior to 12:00 Noon Central Time on the Sale Date. Contemporaneously with such wire transfer, each bidder shall send an to arteberry@gkbaum.com, including the following information: (i) notification that a wire transfer has been made, (ii) the wire number, time and amount of the wire transfer, (iii) the series of Bonds to which it applies, and (iv) the return wire instructions if such bidder is not awarded the series of Bonds.. The Deposit of the successful bidder shall constitute a good faith deposit and shall be retained by the Issuer to insure performance of the requirements of the sale by the successful bidder. In the event the successful bidder shall fail to comply with the terms of its bid, the Deposit will be forfeited as full and complete liquidated damages. Upon delivery of the Bonds, the Deposit will be applied to the purchase price of the Bonds but no interest shall be allowed thereon. Basis of Award. The award of a series of the Bonds will be made on the basis of the lowest true interest cost ( TIC ), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including adjustments for premium or discount, if any. Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months. If there is any discrepancy between the TIC specified and the interest rates and premium or discount specified, the specified interest rates and premium or discount shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest TIC are received, the governing body of the Issuer will determine which bid, if any, will be accepted, and its determination is final. The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any disputes arising hereunder shall be governed by the laws of Kansas, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within Kansas with regard to such dispute. Any bid for the Bonds received after 12:00 Noon Central Time on the date of sale will not be considered. Pre-Bid Revisions. The Issuer reserves the right to issue a Supplemental Notice of Sale not later than 24 hours prior to the sale date via the MUNIFACTS News Service. If issued, the Supplemental Notice of Sale may (i) modify the principal amount of one or more series of the Bonds, (ii) withdraw a series of the Bonds from the sale, and/or (iii) modify such other terms of this Notice of Sale as the Issuer determines. Any such modifications will supersede the terms of this Notice of Sale as set forth herein. Submission of Bids. Written bids must be made on forms which may be procured from the Manager of Administration and Finance or the Financial Advisor and shall be addressed to the undersigned, and marked Proposal for General Obligation Bonds, Series for the Bonds. Written bids submitted by facsimile should not be preceded by a cover sheet and should be sent only once to (785) Confirmation of receipt of facsimile bids may be made by contacting the Manager of Administration and Finance at the number listed below. Electronic bids via PARITY must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Sale. If provisions of this Notice of Sale conflict with those of PARITY, this Notice of Sale shall control. Bids for 4

7 the Bonds must be received before 12:00 Noon, Central Time on the Sale Date and accompanied by the Deposit, which may be submitted separately, provided such Deposit is received by the Issuer or the Financial Advisor prior to 12:00 Noon, Central Time on the Sale Date. The Issuer shall not be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. PARITY. Information about the electronic bidding services of PARITY may be obtained from i-deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. ( ) and from the following website: CUSIP Numbers. CUSIP identification numbers will be assigned and printed on the Bonds, but neither the failure to print such number on any Bond nor any error with respect thereto shall constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of this Notice. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the Issuer. Optional Municipal Bond Insurance. Applications have been submitted to Financial Security Assurance Inc. ( FSA ) and Assured Guaranty ( Assured ) for municipal bond insurance relating to the Bonds. The Bonds may be purchased with or without this insurance at the option of the successful bidder. All expenses associated with the purchase of said insurance (including rating agency fees other than the fee of Moody s Investors Service) will be the responsibility of the successful bidder. The amount of such premium and rating agency fees may be obtained from the above-named insurers. Bidders desiring to purchase the optional municipal bond insurance must so indicate on the Official Bid Form. Bond Ratings. The outstanding general obligation bonds of the Issuer are rated Aa3 by Moody s Investors Service. The Issuer has applied to Moody s Investors Service for a rating on the Bonds herein offered for sale. Such application and rating are further described in the Preliminary Official Statement, hereinafter described. Book-Entry-Only System. The Bonds shall be initially registered in the name of Cede & Co., as the nominee of DTC and no beneficial owner will receive certificates representing their interests in the Bonds. During the term of the Bonds, so long as the book-entry-only system is continued, the Issuer will make payments of principal of, premium, if any, and interest on the Bonds to DTC or its nominee as the Registered Owner of the Bonds, DTC will make book-entry-only transfers among its participants and receive and transmit payment of principal of, premium, if any, and interest on the Bonds to is participants who shall be responsible for transmitting payments to beneficial owners of the Bonds in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that (i) DTC determines not to continue to act as securities depository for the Bonds, or (ii) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the Issuer will discontinue the book-entry-only form of registration with DTC. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will cause to be authenticated and delivered to the beneficial owners replacement Bonds in the form of fully registered certificates. Reference is made to the Preliminary Official Statement for further information regarding the book-entry-only system of registration of the Bonds and DTC. Delivery and Payment. The Issuer will pay for printing the Bonds and will deliver the Bonds properly prepared, executed and registered without cost on or about June 10, 2009, at DTC for the account of the successful bidder. The successful bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds shall be made in federal reserve funds, immediately available for use by the Issuer. The denominations of the Bonds and the names, addresses and social security or taxpayer identification numbers of the registered owners shall be submitted in writing by the successful bidder to the Bond Registrar at least one week prior to the date of delivery of the Bonds. In the absence of such information, the Issuer will deliver one Bond of each maturity registered in the name of the manager of the successful bidder. The Issuer will deliver one Bond of each maturity registered in the nominee name of DTC. 5

8 Certification as to Offering Prices. In order to properly size the Bonds, the reoffering prices to the public must be furnished to the Issuer by the successful bidder immediately following the opening of the bids. Additionally, to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended (the Code ), the successful bidder will be required to complete, execute and deliver to the Issuer prior to the delivery of the Series 2009-A Bonds, a certificate regarding the issue price of the Series 2009-A Bonds (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10% or more) of the Series 2009-A Bonds have been or are expected to be sold to the public. The term public excludes bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers. Such certificate shall state that 10% or more of the Series A Bonds have been or are expected to be sold to the public at prices no higher than such initial offering prices. However, such certificate may indicate that the successful bidder will not offer the Series 2009-A Bonds for sale to the public. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement dated April 30, 2009, deemed final by the Issuer except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which may be obtained from the Clerk or from the Financial Advisor. Upon the sale of the Bonds, the Issuer will adopt the final Official Statement and will furnish the successful bidder, without cost, within seven business days of the acceptance of the successful bidder s proposal, with a sufficient number of copies thereof in order to comply with the requirements of Rule 15c2-12(3) and (4) of the Securities and Exchange Commission and Rule G-32 of the Municipal Securities Rulemaking Board (jointly the Rules ). Additional copies may be ordered by the successful bidder at its expense. The Issuer s acceptance of the successful bidder s proposal for the purchase of the Bonds shall constitute a contract between the Issuer and the successful bidder for purposes of the Rules. Continuing Disclosure. The Securities and Exchange Commission (the SEC ) has promulgated amendments to its Rule 15c2-12 (the Rule ) requiring continuous secondary market disclosure for certain issues. In the documents authorizing the Bonds, the Issuer will covenant to provide annually certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to certain national repositories and the Municipal Securities Rulemaking Board, as applicable. This covenant is for the benefit of and is enforceable by any Registered Owner of the Bonds. For further information, reference is made to the caption CONTINUING DISCLOSURE in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2008 is $451,333,804. The total general obligation bonded indebtedness of the Issuer as of the date of the Bonds, including the Bonds being issued, but excluding the temporary notes to be retired with the proceeds of the Bonds, is $21,750,000. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the Issuer, will be printed on the Bonds, and will be delivered to the successful bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross income for federal income tax purposes and from computation of Kansas adjusted gross income. Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Bonds. Additional Information. Additional information regarding the Bonds may be obtained from the undersigned, or from the Financial Advisor, at the addresses set forth below: DATED: April 30, SALINA AIRPORT AUTHORITY (SALINA, KANSAS) By: Shelli Swanson Manager of Administration and Finance 6

9 Written and Facsimile Bid and Good Faith Deposit Delivery Address: Salina Municipal Airport 3237 Arnold Avenue Salina, Kansas Telephone: Fax: Financial Advisor: George K. Baum & Company Attention: David Arteberry Public Finance Department 4801 Main Street Suite 500 Kansas City, Missouri Telephone:

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11 OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF SALINA AIRPORT AUTHORITY (SALINA, KANSAS) GENERAL OBLIGATION BONDS SERIES 2009-A TO: Manager of Administration and Finance May 20, 2009 Salina Airport Authority (Salina, Kansas) For $2,045,000 * principal amount of General Obligation Bonds, Series 2009-A, of the Salina Airport Authority (Salina, Kansas), to be dated June 1, 2009, as described in your Notice of Sale dated April 30, 2009, said Bonds to bear interest as follows: Maturity September 1 Principal Amount* Interest Rate 2026 $105,000 % ,000 % ,000 % ,000 % the undersigned will pay the par value of the Bonds plus accrued interest to the date of delivery, plus a total premium in the amount set forth below. Total interest cost to maturity at the rates specified... $ Premium (if any)... ($ ) Discount (if any) (not to exceed 2.00%)... ($ ) Net interest cost... $ Average annual net interest rate... % True Interest Cost... % The Bidder elects to purchase Municipal Bond Insurance from [FSA] [ASSURED]. Circle One. The Bidder elects to have the following Term Bonds: Maturity Date Years Amount September 1, to $ September 1, to $ subject to mandatory redemption requirements in the amounts and at the times shown above. This proposal is subject to all terms and conditions contained in said Notice of Sale, and if the undersigned is the successful bidder, the undersigned will comply with all of the provisions contained in said Notice. A cashier s or certified check in the amount of $40,900 payable to the order of the Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer shall constitute a contract between the Issuer and the successful bidder for purposes of complying with Rule 15c2-12 of the Securities and Exchange Commission. Submitted by: [LIST ACCOUNT MEMBERS ON REVERSE] By: Telephone No.( ) ACCEPTANCE Pursuant to action duly taken by the Governing Body of the Salina Airport Authority (Salina, Kansas), Kansas, the above proposal is hereby accepted on May 20, Attest: Secretary Chairman NOTE: No additions or alterations in the above proposal form shall be made, and any erasures may cause rejection of any bid. Sealed bids may be filed with the Salina Airport Authority (Salina, Kansas) 3237 Arnold Avenue, Salina, Kansas 67402, facsimile bids may be filed with the Manager of Administration and Finance, Fax No. (785) , electronic bids may be submitted via PARITY, at or prior to 12:00 Noon, Central Time, on May 20, Any bid received after such time will be returned to the bidder. * Preliminary; subject to change as provided in the Notice of Sale.

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13 OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF SALINA AIRPORT AUTHORITY (SALINA, KANSAS) TAXABLE GENERAL OBLIGATION BONDS SERIES 2009-B TO: Manager of Administration and Finance May 20, 2009 Salina Airport Authority (Salina, Kansas) For $6,130,000 * principal amount of Taxable General Obligation Bonds, Series 2009-B, of the Salina Airport Authority (Salina, Kansas), to be dated June 1, 2009, as described in your Notice of Sale dated April 30, 2009, said Bonds to bear interest as follows: Maturity September 1 Principal Amount* Interest Rate Maturity September 1 Principal Amount* Interest Rate 2010 $130,000 % 2019 $375,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % ,000 % the undersigned will pay the par value of the Bonds plus accrued interest to the date of delivery, plus a total premium in the amount set forth below. Total interest cost to maturity at the rates specified... $ Premium (if any)... ($ ) Discount (if any) (not to exceed 2.00%)... ($ ) Net interest cost... $ Average annual net interest rate... % True Interest Cost... % The Bidder elects to purchase Municipal Bond Insurance from [FSA] [ASSURED]. Circle One. The Bidder elects to have the following Term Bonds: Maturity Date Years Amount September 1, to $ September 1, to $ subject to mandatory redemption requirements in the amounts and at the times shown above. This proposal is subject to all terms and conditions contained in said Notice of Sale, and if the undersigned is the successful bidder, the undersigned will comply with all of the provisions contained in said Notice. A cashier s or certified check in the amount of $122,600 payable to the order of the Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer shall constitute a contract between the Issuer and the successful bidder for purposes of complying with Rule 15c2-12 of the Securities and Exchange Commission. Submitted by: [LIST ACCOUNT MEMBERS ON REVERSE] ACCEPTANCE By: Telephone No.( ) Pursuant to action duly taken by the Governing Body of the Salina Airport Authority (Salina, Kansas), Kansas, the above proposal is hereby accepted on May 20, Attest: Secretary Chairman NOTE: No additions or alterations in the above proposal form shall be made, and any erasures may cause rejection of any bid. Sealed bids may be filed with the Salina Airport Authority (Salina, Kansas) 3237 Arnold Avenue, Salina, Kansas 67402, facsimile bids may be filed with the Manager of Administration and Finance, Fax No. (785) , electronic bids may be submitted via PARITY, at or prior to 12:00 Noon, Central Time, on May 20, Any bid received after such time will be returned to the bidder. * Preliminary; subject to change as provided in the Notice of Sale.

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15 SALINA AIRPORT AUTHORITY Salina Municipal Airport/Industrial Center 3237 Arnold Avenue Salina, Kansas BOARD OF DIRECTORS Julie Sager Miller, Chairman Jeff Thompson, Vice Chairman Troy Vancil, Secretary Dr. Randy Hassler, Treasurer Eric Hardman, Past Chairman APPOINTED OFFICIALS Timothy F. Rogers, A.A.E., Executive Director Michelle R. Swanson, Manager of Administration and Finance David Wiles, Manager of Operations AUTHORITY S COUNSEL Greg Bengtson Clark, Mize & Linville, Chartered Salina, Kansas CERTIFIED PUBLIC ACCOUNTANTS Clubine & Rettele Chartered Salina, Kansas BOND COUNSEL Gilmore & Bell, P.C. Kansas City, Missouri FINANCIAL ADVISOR George K. Baum & Company Kansas City, Missouri

16 No person has been authorized by the Authority or the Successful Bidders to give any information or to make any representations with respect to the Bonds to be issued, other than those contained in this Official Statement, and if given or made, such other information or representations not so authorized must not be relied upon as having been given or authorized by the Authority or the Successful Bidders. This Official Statement is not to be used in connection with an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. All financial and other information presented herein, except for information expressly attributed to other sources, has been provided by the Authority from its records and is intended to show recent historic information. Such information is not guaranteed as to accuracy or completeness. All descriptions of laws and documents contained herein are only summaries and are qualified in their entirety by reference to such laws and documents. Information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale of the Bonds shall, under any circumstances, create any implication that the information contained herein has remained unchanged since the respective dates as of which such information is given. TABLE OF CONTENTS Page INTRODUCTORY STATEMENT... 1 General... 1 Additional Information... 1 THE BONDS... 2 Description... 2 Book-Entry Bonds; Securities Depository... 2 Registration and Transfer... 3 Redemption Provisions... 3 Authority... 4 Security... 4 THE DEPOSITORY TRUST COMPANY... 4 THE FINANCING PLAN... 6 The Projects... 6 Sources and Uses of Funds... 6 FINANCIAL OVERVIEW... 7 THE SALINA AIRPORT AUTHORITY... 8 History and Description... 8 Government and Powers... 8 Economic Condition and Outlook... 9 Larger Businesses... 9 Principal Customers Goals, Objectives and Projects Environmental Matter Kansas Public Employees Retirement System (KPERS) THE CITY OF SALINA, KANSAS Location and Size Government Retirement Systems Police and Fire Protection Economic Characteristics Agriculture and Industry Income Major Employers Population Unemployment Rate Education Kansas State University at Salina Kansas Wesleyan University Transportation Utilities and Infrastructure Health Facilities Page Financial Institutions Other Information Building Permits Issued DEBT SUMMARY Salina Airport Authority Overlapping Debt-The City of Salina, Kansas Overlapping Debt-All Jurisdictions Historical Debt Information Annual Debt Payments-Authority Legal Debt Limits Future Indebtedness Debt Payment Record PROPERTY TAX PROCEDURES Property Tax Levy Limits FINANCIAL INFORMATION Assessed Valuation Estimated Actual Valuation Largest Taxpayers Property Tax Collections Sales Tax Tax Levies Budgeting Procedures Appraisal and Assessment Procedures Property Assessment Rates Equalization Ratios LEGAL MATTERS TAX MATTERS Opinion of Bond Counsel-Series 2009-A Bonds.. 26 Other Tax Consequences-Series 2009-A Bonds Opinion of Bond Counsel-Series 2009-B Bonds.. 27 General Matters RATING FINANCIAL ADVISOR UNDERWRITING ABSENCE OF MATERIAL LITIGATION CONTINUING DISCLOSURE CERTIFICATION OF THIS OFFICIAL STATEMENT APPENDIX A Financial Statements APPENDIX B Continuing Disclosure Instructions

17 SALINA AIRPORT AUTHORITY (SALINA, KANSAS) $2,045,000 (subject to change) GENERAL OBLIGATION BONDS SERIES 2009-A $6,130,000 (subject to change) TAXABLE GENERAL OBLIGATION BONDS SERIES 2009-B INTRODUCTORY STATEMENT General This Official Statement is provided for the purpose of presenting certain information concerning the Salina Airport Authority, Salina, Kansas (the Authority ), and the offering of its $2,045,000 (subject to change) General Obligation Bonds, Series 2009-A Bonds (the Series 2009-A Bonds ) and its $6,130,000 (subject to change) Taxable General Obligation Bonds, Series 2009-B Bonds (the Series 2009-B Bonds ) (collectively, the Bonds ) both dated June 1, The Bonds are being issued to provide funds for certain capital improvements at the Salina Airport and the Airport Industrial Center, to provide permanent financing for a portion of the Series Temporary Notes, and to pay the costs associated with the issuance of the Bonds. See THE FINANCING PLAN herein. The full faith, credit, and resources of the Authority are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. The Bonds shall not constitute a debt or obligation of the City of Salina, Kansas (the City ). See THE BONDS - Security herein. APPENDIX A, containing selected financial data relating to the Authority, is an integral part of this Official Statement and should be read in its entirety. All financial and other information presented herein has been compiled by the Authority s Financial Advisor, George K. Baum & Company, Kansas City, Missouri. All information has been provided by the Authority unless otherwise noted. Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described under the section captioned INTRODUCTORY STATEMENT, THE BONDS, LEGAL MATTERS, TAX MATTERS, and APPENDIX B and, accordingly expresses no opinion as to the accuracy or sufficiency of any information contained herein. Additional Information Additional information regarding the Authority or the Bonds, including basic Bond documentation, may be obtained from George K. Baum & Company, Public Finance Department, 4801 Main Street, Kansas City, Missouri 64112, telephone The Authority has provided for compliance with secondary market disclosure requirements as further described in the section titled CONTINUING DISCLOSURE.

18 THE BONDS Description The Bonds will be issued in the principal amount shown on the cover, will be dated June 1, 2009, and will consist of fully registered bonds without coupons. When issued, the Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( DTC ). Purchases of the Bonds will be made in book-entry only form as described below (without certificates), in the denomination of $5,000 or any integral multiple thereof. The Bonds will mature, subject to redemption as described herein, on September 1 in the years and in the principal amounts set forth on the inside cover page of this Official Statement. Interest on the Bonds will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, Interest will be paid on the basis of a 360-day year consisting of twelve 30-day months. Principal will be payable upon presentation and surrender of the Bonds by the registered owners thereof at the office of the State Treasurer of Kansas (the Paying Agent ). Interest shall be paid to the registered owners of such Bonds as shown on the registration books maintained by the Paying Agent as of the fifteenth day of the month next preceding the date on which the interest is payable (the Record Date ), (a) by check or draft mailed by the Paying Agent to the address of such registered owner shown on the registration books, or (b) in the case of an interest payment to any registered owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such registered owner upon written notice given to the Paying Agent by such registered owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), ABA routing number, and account number to which such registered owner wishes to have such wire directed. Book-Entry Bonds; Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraphs. The Authority may decide, subject to the requirements of the Operational Arrangements of DTC (or a successor Securities Depository), and the following provisions of this section to discontinue use of the system of book-entry transfers through DTC (or a successor Securities Depository): (a) If the Authority determines (1) that the Securities Depository is unable to properly discharge its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or (b) if the Bond Registrar receives written notice from Participants having interest in not less than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(1) or (a)(2) of this section, the Authority, with the consent of the Bond Registrar, may select a successor securities depository as hereinafter provided to effect book-entry transfers. 2

19 In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Authority, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Authority. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Authority may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in appropriate denominations and form as provided in the Bond Resolution. Registration and Transfer As long as any Bond remains outstanding, the Paying Agent will maintain a bond register in which all transfers and exchanges of the Bonds will be registered. All Bonds presented for transfer or exchange must be accompanied by a written instrument of transfer or authorization for exchange in a form and with guarantee of a signature satisfactory to the Paying Agent. Bonds may be transferred or exchanged for Bonds of the same series and in the same aggregate principal amount and maturity upon presentation to the Paying Agent, and upon payment of any tax, fee or other governmental charge required to be paid with respect to any such registration, exchange, or transfer. The foregoing provisions for the registration, transfer and exchange of the Bonds will not be applicable to purchasers of the Bonds so long as the Bonds are subject to the DTC or other book-entry only system. Redemption Provisions Optional Redemption. At the option of the Authority, Bonds maturing on or after September 1, 2020, may be called for redemption and payment prior to maturity on September 1, 2019, and thereafter, in whole or in part at any time, at a redemption price of 100% of the principal amount thereof, without premium, plus accrued interest to the date fixed for redemption. [ Mandatory Redemption. The Bonds maturing (the Term Bonds ) shall be subject to mandatory redemption and payment prior to its stated maturity pursuant to the mandatory redemption requirements hereinafter set forth, at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date. The Authority shall redeem on September 1 in each year the following principal amounts of such Term Bonds: Principal Amount Year *Final maturity of Term Bond] Selection of Bonds to be Redeemed. The series of Bonds and the specific annual maturities of such series of Bonds called for redemption in advance of their stated maturities may be selected by the Authority as it determines in its sole discretion. In the event of a partial redemption of a series of Bonds of a given maturity, the Bonds to be redeemed will be selected in such equitable manner as the Paying Agent may determine. Bonds will be redeemed in integral multiples of $5,000. If fewer than all of a series of Bonds of a given maturity are called for redemption, the Authority and the Paying Agent shall, in the case of Bonds in denominations greater than $5,000, treat each $5,000 of face value as though it were a separate Bond. 3