2015B

Post Sale
$1,130,000
City of Newton, Kansas
Taxable General Obligation Bonds, Series 2015-B
Airport Land Acquisition
Bond Balance Report
Date Principal Coupon Interest Total P+I Bond Balance
03/01/2016 - - - - 1,130,000.00
09/01/2016 - - 23,255.75 23,255.75 1,130,000.00
03/01/2017 - - 14,385.00 14,385.00 1,130,000.00
09/01/2017 100,000.00 2.000% 14,385.00 114,385.00 1,030,000.00
03/01/2018 - - 13,385.00 13,385.00 1,030,000.00
09/01/2018 105,000.00 2.000% 13,385.00 118,385.00 925,000.00
03/01/2019 - - 12,335.00 12,335.00 925,000.00
09/01/2019 105,000.00 2.250% 12,335.00 117,335.00 820,000.00
03/01/2020 - - 11,153.75 11,153.75 820,000.00
09/01/2020 110,000.00 2.250% 11,153.75 121,153.75 710,000.00
03/01/2021 - - 9,916.25 9,916.25 710,000.00
09/01/2021 110,000.00 2.500% 9,916.25 119,916.25 600,000.00
03/01/2022 - - 8,541.25 8,541.25 600,000.00
09/01/2022 115,000.00 2.500% 8,541.25 123,541.25 485,000.00
03/01/2023 - - 7,103.75 7,103.75 485,000.00
09/01/2023 115,000.00 2.750% 7,103.75 122,103.75 370,000.00
03/01/2024 - - 5,522.50 5,522.50 370,000.00
09/01/2024 120,000.00 2.850% 5,522.50 125,522.50 250,000.00
03/01/2025 - - 3,812.50 3,812.50 250,000.00
09/01/2025 125,000.00 3.000% 3,812.50 128,812.50 125,000.00
03/01/2026 - - 1,937.50 1,937.50 125,000.00
09/01/2026 125,000.00 3.100% 1,937.50 126,937.50 -
Total $1,130,000.00 - $199,440.75 $1,329,440.75 -
2015-B Tax GO Bonds - PS | SINGLE PURPOSE | 10/13/2015 | 11:03 AM

Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
Tel: 651.223.3000
Fax: 651.223.3002
www.springsted.com
December 11, 2015
Mr. Lunda Asmani, Assistant City Manager for Budget and Finance
City of Newton
201 East Sixth Street
P.O. Box 426
Newton, KS 67114
RE: $1,130,000 Taxable General Obligation Bonds, Series 2015-B
Dear Mr. Asmani:
We are pleased to present to you an electronic supplemental transcript for the above-referenced bonds for your files.
This supplements the transcript of proceedings that you have received, or will be receiving, from bond counsel and
contains some documents that may not be included in your transcript. Please place this with your transcript for total
reference to this Issue.
It was a pleasure working with you and we appreciate the courtesies extended to us by you and your staff during this
project. If you have questions at any time regarding this Issue, please do not hesitate to contact us.
Sincerely,
Jan Morin, CIPMA

Bond Services Analyst
mmk
P u bli c Se ct o r A dvis o rs
4. The ten largest taxpayers in the Taxing District based on the total Taxable Assessed Value are as follows
(please include real property, personal property and state-assessed utility taxpayers):
2014/15 Taxable
Taxpayer Type of Business Assessed Value
1. Walmart Retail Store 2,146,653

2. Kansas Gas & Electric Utility Company 2,011,027
3. Cargill Flour Mill 1,596,670
4. Kansas Gas Service Utility Company 1,266,187
5. Burlington Northern Railroad 1,038,877
6. Dillons Companies Grocery Stores 998,606
7. Norcraft Companies LLC Cabinetry Maker 866,358
8. Newton Medical Medical 850,000
9. Broadway Hospitality Lodging 752,017
10. Dillon Real Estate Convenience Stores 724,731
5. Tax rates per $1,000 of assessed value of the governmental units listed in #8 for the past five years
are (if more space is needed, please attach a separate sheet of paper) or attach levy sheets:
Valuation Year/Collection Year

Governmental Units 2010/11 2011/12 2012/13 2013/14 2014/15
Harvey County 28.771 31.316 31.449 35.586 36.238

USD #373 64.722 65.098 65.407 65.005 60.478
Sand Creek Watershed .266 .257 .255 .254 .257
6. The tax levies required by the Taxing District for its purposes and payable in the County, after
deduction of cancellations and abatements, were as follows. PLEASE DO NOT INCLUDE
SPECIAL ASSESSMENTS.
Levy/Collect Levy/Collect Levy/Collect Levy/Collect Levy/Collect

Fiscal Year 2010/11 2011/12 2012/13 2013/14 2014/15*
Amount of Levy
(as defined above) $ 4,845,866 $ 5,173,889 $ 5,414,555 $ 6,010,719 $ 6,218,542
Amount of Levy
Collected during
Collection Year $ 4,678,168 $ 4,998,579 $ 5,292,695 $ 5,513,304 $ 2,954,524
Amount of Levy
Delinquent at End
of Collection Year $ 167,698 $ 175,310 $ 121,860 $ 497,415 $ N/A
Delinquencies
Collected for any
Prior Year $ 173,072 $ 82,269 $ 169,836 $ 146,337 $ N/A
Total Collected Levy

and Delinquencies as
of End of Fiscal Year $ 4,851,240 $ 5,080,848 $ 5,462,531 $ 5,659,641 $ N/A
* Collections are as of 1-20-15.

Post Sale
$1,130,000
Debt Service Schedule -- Accrual Basis
Calendar Principal Coupon Interest Total P+I

Year
2016 - - 23,255.75 23,255.75
2017 100,000.00 2.000% 28,770.00 128,770.00
2018 105,000.00 2.000% 26,770.00 131,770.00
2019 105,000.00 2.250% 24,670.00 129,670.00
2020 110,000.00 2.250% 22,307.50 132,307.50
2021 110,000.00 2.500% 19,832.50 129,832.50
2022 115,000.00 2.500% 17,082.50 132,082.50
2023 115,000.00 2.750% 14,207.50 129,207.50
2024 120,000.00 2.850% 11,045.00 131,045.00
2025 125,000.00 3.000% 7,625.00 132,625.00
2026 125,000.00 3.100% 3,875.00 128,875.00
- $1,130,000.00 - $199,440.75 $1,329,440.75
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................

$7,358.42
Average Life............................................................................................................................................................................................
6.512 Years
Average Coupon..........................................................................................................................................................................................
2.7103759%
Net Interest Cost (NIC).................................................................................................................................................................................

2.6023548%
True Interest Cost (TIC)................................................................................................................................................................................
2.5786988%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................
2.4624659%
All Inclusive Cost (AIC)................................................................................................................................................................................
2.9453779%
IRS Form 8038

Net Interest Cost.......................................................................................................................................................................................
2.4698948%
Weighted Average Maturity...............................................................................................................................................................................
6.490 Years

Post Sale
$1,130,000
Debt Service Schedule
Date Principal Coupon Interest Total P+I

09/01/2016 - - 23,255.75 23,255.75
03/01/2017 - - 14,385.00 14,385.00
09/01/2017 100,000.00 2.000% 14,385.00 114,385.00
03/01/2018 - - 13,385.00 13,385.00
09/01/2018 105,000.00 2.000% 13,385.00 118,385.00
03/01/2019 - - 12,335.00 12,335.00
09/01/2019 105,000.00 2.250% 12,335.00 117,335.00
03/01/2020 - - 11,153.75 11,153.75
09/01/2020 110,000.00 2.250% 11,153.75 121,153.75
03/01/2021 - - 9,916.25 9,916.25
09/01/2021 110,000.00 2.500% 9,916.25 119,916.25
03/01/2022 - - 8,541.25 8,541.25
09/01/2022 115,000.00 2.500% 8,541.25 123,541.25
03/01/2023 - - 7,103.75 7,103.75
09/01/2023 115,000.00 2.750% 7,103.75 122,103.75
03/01/2024 - - 5,522.50 5,522.50
09/01/2024 120,000.00 2.850% 5,522.50 125,522.50
03/01/2025 - - 3,812.50 3,812.50
09/01/2025 125,000.00 3.000% 3,812.50 128,812.50
03/01/2026 - - 1,937.50 1,937.50
09/01/2026 125,000.00 3.100% 1,937.50 126,937.50
Total $1,130,000.00 - $199,440.75 $1,329,440.75
SIGNIFICANT DATES
Dated Date..............................................................................................................................................................................................
11/10/2015
Delivery Date...........................................................................................................................................................................................
11/10/2015
First Coupon Date.......................................................................................................................................................................................
9/01/2016
Yield Statistics

$7,358.42
Average Life............................................................................................................................................................................................
6.512 Years
Average Coupon..........................................................................................................................................................................................
2.7103759%

2.6023548%
2.5786988%
2.4624659%
2.9453779%
IRS Form 8038

2.4698948%
6.490 Years

PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 23, 2015
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,
The information contained in this Preliminary Official Statement is deemed by the City to be final as of the date hereof; however, the pricing and underwriting information is subject to completion or amendment.
NEW ISSUES Standard & Poor’s Ratings: Requested
BANK QUALIFIED – The Series 2015-A Bonds
In the opinion of Gilmore & Bell, P.C., Bond Counsel to the Issuer, under existing law and assuming continued compliance with certain requirements of the
Internal Revenue Code of 1986, as amended (the “Code”): (1) the interest on the Series 2015-A Bonds [(including any original issue discount properly
allocable to an owner thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals and corporations; (2) the interest on the Series 2015-A Bonds is exempt from income taxation by the
State of Kansas; and (3) the Series 2015-A Bonds are “qualified tax-exempt obligations” within the meaning of Code § 265(b)(3). The interest on the Series
2015-B Bonds is included in gross income for federal income tax purposes. See “TAX MATTERS – Opinion of Bond Counsel” in this Official Statement.

$5,125,000* $1,155,000*
General Obligation Bonds, Taxable General Obligation Bonds,
Series 2015-A Series 2015-B
(the “Series 2015-A Bonds”) (the “Series 2015-B Bonds”)
(General Obligation Bonds Payable From Unlimited Ad Valorem Taxes)
(Book Entry Only)

Dated Date: Date of Delivery Interest Due: Each March 1 and September 1,
commencing September 1, 2016
The Bonds (as defined herein) will mature as shown on the inside front cover of this Official Statement.
A bidder may elect to have all or a portion of the Bonds scheduled to mature in consecutive years issued as term bonds (the
“Term Bonds”) scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements
solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds
of the same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall
make such an election by completing the applicable paragraph on the Official Bid Form or completing the applicable
information on PARITY®.
The Bonds shall be general obligations of the City payable as to both principal and interest from ad valorem taxes which may
be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial
limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the
principal and interest on the Bonds as the same become due. Proceeds of the Bonds will be used to for the purpose of paying a
portion of the cost of certain internal improvements.
A separate proposal must be submitted for each series of Bonds subject to the minimum bid amounts shown below, plus
accrued interest, if any. Bidders shall specify rates in integral multiples of 1/100 or 1/8 of 1%. No interest rate shall exceed a
rate equal to the daily yield for the 10-year Treasury Bonds as published by The Bond Buyer in New York, New York, on the
Monday preceding the day on which the Bonds are sold, plus 6% for the Series 2015-A Bonds and plus 7% for the
Series 2015-B Bonds. The initial price to the public for each maturity must be 98.0% or greater. Following receipt of bids, a
good faith deposit for each issue will be required to be delivered to the City by the lowest bidder as described in the “Notice of
Bond Sale” herein. The award of each series of the Bonds will be made on a True Interest Cost (TIC) basis (see “Notice of
Bond Sale” herein).
Minimum Bid
The Series 2015-A Bonds $5,058,375
The Series 2015-B Bonds 1,139,985
The City will designate the Series 2015-A Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of Cede &
Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Individual
purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof (the
“Authorized Denomination”). Investors will not receive physical certificates representing their interest in the Bonds
purchased. (See “Book Entry System” herein.) The Treasurer of the State of Kansas, Topeka, Kansas will act as registrar and
paying agent (the “Registrar and Paying Agent”) for the Bonds. The Bonds will be available for delivery at DTC on or about
November 10, 2015.
BID OPENING: October 13, 2015 (Tuesday) at 10:00 A.M., Central Daylight Time
AWARD: October 13, 2015 (Tuesday) at 7:00 P.M., Central Daylight Time
Further information may be obtained from SPRINGSTED Incorporated,

Municipal Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 55101-2887 (651) 223-3000.
* Preliminary; subject to change.

$5,125,000* General Obligation Bonds, Series 2015-A
The Series 2015-A Bonds will mature September 1 in the years and amounts* as follows:
2017 $205,000 2022 $225,000 2027 $250,000 2032 $290,000

2018 $210,000 2023 $230,000 2028 $260,000 2033 $300,000
2019 $215,000 2024 $240,000 2029 $265,000 2034 $310,000
2020 $215,000 2025 $245,000 2030 $275,000 2035 $315,000
2021 $220,000 2026 $245,000 2031 $280,000 2036 $330,000
At the option of the City, Series 2015-A Bonds maturing on September 1 in the years 2024, and
thereafter, will be subject to redemption and payment prior to maturity on September 1, 2023, and
thereafter, as a whole or in part (selection of maturities and the amount of Bonds of each maturity to be
redeemed to be determined by the City in such equitable manner as it may determine) at any time, at the
redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the
date of redemption.
$1,155,000* Taxable General Obligation Bonds, Series 2015-B
The Series 2015-B Bonds will mature September 1 in the years and amounts* as follows:
2017 $105,000 2020 $110,000 2023 $120,000 2025 $125,000

2018 $105,000 2021 $115,000 2024 $120,000 2026 $130,000
2019 $110,000 2022 $115,000
At the option of the City, Series 2015-B Bonds maturing on September 1 in the years 2025, and
date of redemption.

CITY OF NEWTON, KANSAS
CITY COMMISSION
Glen L. Davis Mayor
Barth Hague Vice Mayor
Leroy Koehn Commissioner
David A. Nygaard Commissioner
Kathy Valentine Commissioner
ASSISTANT CITY MANAGER OF BUDGET AND FINANCE
Lunda Asmani
ASSISTANT FINANCE DIRECTOR

Lisa Marshall
MUNICIPAL ADVISOR
St. Paul, Minnesota and Kansas City, Missouri
BOND COUNSEL
Gilmore & Bell, P.C.
Wichita, Kansas
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this
document, as the same may be supplemented or corrected by the City from time to time, may be treated as
a Preliminary Official Statement with respect to the Bonds described herein that is deemed final as of the
date hereof (or of any such supplement or correction) by the City.
By awarding a series of the Bonds to any underwriter or underwriting syndicate submitting a Bid therefor,
the City agrees that, no more than seven business days after the date of such award, it shall provide
without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies
of the Final Official Statement in the amount specified in the Notice of Bond Sale.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to
make any representations with respect to the Bonds, other than as contained in the Preliminary Official
Statement or the Final Official Statement, and if given or made, such other information or representations
must not be relied upon as having been authorized by the City.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not
guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION
IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE
SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL
STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety
by reference to the particular document, the full text of which may contain qualifications of and
exceptions to statements made herein. Where full texts have not been included as appendices to the
Preliminary Official Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in
the Final Official Statement. No assurance can be given by the City that the CUSIP numbers for the
Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bonds.
TABLE OF CONTENTS
Page(s)
Notice of Bond Sale ........................................................................................................................... i-vii
Introductory Statement....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The Bonds .......................................................................................................................................... 2
The Projects ....................................................................................................................................... 8
Authority and Purpose ....................................................................................................................... 8
Sources and Uses of Funds ................................................................................................................ 9
Security and Financing ...................................................................................................................... 9
Future Financing ................................................................................................................................ 10
Absence of Litigation ......................................................................................................................... 10
Approval of Legality .......................................................................................................................... 10
Tax Matters – The Series 2015-A Bonds ........................................................................................... 10
Tax Matters – The Series 2015-B Bonds ........................................................................................... 12
Risk Factors and Investment Considerations ..................................................................................... 13
Ratings ............................................................................................................................................... 15
Municipal Advisor ............................................................................................................................. 15
Certification ....................................................................................................................................... 15
City Property Values .......................................................................................................................... 16
City Indebtedness ............................................................................................................................... 17
City Tax Rates, Levies and Collections ............................................................................................. 20
Funds on Hand ................................................................................................................................... 22
Investments ........................................................................................................................................ 23
General Information Concerning the City ......................................................................................... 24
Governmental Organization and Services.......................................................................................... 29
Financial Information Concerning the City ....................................................................................... 33
Proposed Forms of Bond Counsel Opinions ........................................................................... Appendix I

Summary of Financing Documents.......................................................................................... Appendix II
Summary of Property Valuation, Tax Levies, Payment Provisions,
and the Cash-Basis Law ....................................................................................................... Appendix III
Excerpt of 2014 Comprehensive Annual Financial Report .................................................... Appendix IV
NOTICE OF BOND SALE
$5,125,000* $1,155,000*
GENERAL OBLIGATION BONDS TAXABLE GENERAL OBLIGATION BONDS
SERIES 2015-A SERIES 2015-B
(GENERAL OBLIGATION BONDS PAYABLE

FROM UNLIMITED AD VALOREM TAXES)
Bids. Written and electronic (as explained below) bids for the separate purchase of the General
Obligation Bonds, Series 2015-A (the “Series 2015-A Bonds”) and the Taxable General Obligation
Bonds, Series 2015-B (the “Series 2015-B Bonds” and collectively with the Series 2015-A Bonds, the
“Bonds”) of the City of Newton, Kansas (the “Issuer”) herein described will be received on behalf of the
undersigned Director of Finance of the Issuer at the address hereinafter set forth in the case of written
bids, and via PARITY® in the case of electronic bids, until 10:00 A.M., Central Daylight Time (the
“Submittal Hour”), on
OCTOBER 13, 2015
(the “Sale Date”). All bids will be publicly evaluated at said time and place and the award of each series
of the Bonds to the respective successful bidder (collectively the “Successful Bidder”) will be acted upon
by the governing body at its meeting to be held at 7:00 P.M. on the Sale Date. No oral or auction bids
will be considered. Capitalized terms not otherwise defined herein shall have the meanings set forth in
the hereinafter referenced Preliminary Official Statement relating to the Bonds.
Terms of the Bonds.
General. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any
integral multiple thereof (the “Authorized Denomination”), will be dated November 10, 2015 (the “Dated
Date”), and will bear interest from the Dated Date at rates to be determined when the Bonds are sold as
hereinafter provided, which interest will be payable semiannually on March 1 and September 1 in each
year, beginning on September 1, 2016 (the “Interest Payment Dates”).
Series 2015-A Bonds. The Series 2015-A Bonds will become due in principal installments on
September 1 in the years as follows:
Principal Principal
Year Amount* Year Amount*
2017 $205,000 2027 $250,000
2018 210,000 2028 260,000
2019 215,000 2029 265,000
2020 215,000 2030 275,000
2021 220,000 2031 280,000
2022 225,000 2032 290,000
2023 230,000 2033 300,000
2024 240,000 2034 310,000
2025 245,000 2035 315,000
2026 245,000 2036 330,000

-i-
Series 2015-B Bonds. The Series 2015-B Bonds will become due in principal installments on
September 1 in the years as follows:
Principal Principal
Year Amount* Year Amount*
2017 $105,000 2022 $115,000
2018 105,000 2023 120,000
2019 110,000 2024 120,000
2020 110,000 2025 125,000
2021 115,000 2026 130,000
*Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total
principal amount of each series of the Bonds or any maturity of either series of Bonds, depending on the
purchase price and interest rates submitted by the Successful Bidder, to properly size the borrowing. 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 or principal of any maturity as described herein. If there is an
increase or decrease in the final aggregate principal amount of the Bonds or the schedule of principal
payments as described above, the Issuer will notify the Successful Bidder by means of telephone or
facsimile transmission, subsequently confirmed in writing, no later than 12:00 p.m., central daylight time,
on the Sale Date. The actual purchase price for the Bonds shall be calculated by applying the percentage
of par value bid by the Successful Bidder against the final aggregate principal amount of the Bonds, as
adjusted, plus accrued interest from the date of the Bonds to the date of delivery.
Place of Payment. The principal of and interest on the Bonds will be payable in lawful money of
the United States of America by check or draft 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.
Bond Registration. The Bonds will be registered pursuant to a plan of registration approved by
the Issuer and the Attorney General of the State of Kansas (the “State”). The Issuer will pay for the fees
of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable
supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary
market, other than fees of the Bond Registrar, will be the responsibility of the Owners.
Book-Entry-Only System. The Depository Trust Company, New York, New York (“DTC”), will
act as securities depository for the Bonds. The Bonds will initially be issued exclusively in “book entry”
form and 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 its participants who shall be responsible for transmitting
payments to beneficial owners of the Bonds in accordance with agreements between such participants and
- ii -
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.
Redemption of Bonds Prior to Maturity.
General. Whenever the Issuer is to select Bonds for the purpose of redemption, it will, in the
case of Bonds in denominations greater than the minimum Authorized Denomination, if less than all of
the Bonds then outstanding are to be called for redemption, treat each minimum Authorized
Denomination of face value of each such fully registered Bond as though it were a separate Bond in the
minimum Authorized Denomination.
Optional Redemption.
Series 2015-A Bonds. At the option of the Issuer, Series 2015-A Bonds maturing on September 1
in the years 2024, and thereafter, will be subject to redemption and payment prior to maturity on
September 1, 2023, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds
of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may
determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal
amount), plus accrued interest to the date of redemption.
Series 2015-B Bonds. At the option of the Issuer, Series 2015-B Bonds maturing on September 1
in the years 2025, and thereafter, will be subject to redemption and payment prior to maturity on
September 1, 2024, and thereafter, as a whole or in part (selection of maturities and the amount of Bonds
of each maturity to be redeemed to be determined by the Issuer in such equitable manner as it may
determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal
amount), plus accrued interest to the date of redemption.
Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to
mature in consecutive years issued as term bonds (the “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: (a) not less than all Bonds of the
same serial maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b)
a bidder shall make such an election by completing the applicable paragraph on the Official Bid Form or
completing the applicable information on PARITY®.
Notice and Effect of Call for Redemption. Unless waived by any owner of Bonds to be
redeemed, if the Issuer shall call any Bonds for redemption and payment prior to the maturity thereof, the
Issuer shall give written notice of its intention to call and pay said Bonds to the Bond Registrar and the
Successful Bidder. In addition, the Issuer shall cause the Bond Registrar to give written notice of
redemption to the registered owners of said Bonds. Each of said written notices shall be deposited in
United States first class mail not less than 30 days prior to the date fixed for redemption. All notices of
redemption shall state the date of redemption, the redemption price, the Bonds to be redeemed, the place
of surrender of Bonds so called for redemption and a statement of the effect of the 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 as of the date of such notice. With respect to any Bonds
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called for redemption and payment as aforesaid, all interest on such Bonds shall cease from and after the
date for which such call is made, provided funds are available for its payment at the price hereinbefore
specified.
Authority, Purpose and Security. The Bonds are being issued pursuant to the Constitution,
particularly including Article 12, § 5 thereof, and statutes of the state of Kansas, including K.S.A. 12-685
et seq., K.SA. 12-1613h, K.S.A. 12-1736 et seq., K.S.A. 13-1024a, as amended by Charter Ordinances
Nos. 35 and 47 of the City, and K.S.A. 65-163d et seq., all as amended, and separate ordinances and
resolutions adopted by the governing body of the Issuer (the “Bond Resolution”) for the purpose of
paying a portion of the cost of certain internal improvements (the “Improvements”). The Bonds shall be
general obligations of the Issuer payable as to both principal and interest from ad valorem taxes which
may be levied without limitation as to rate or amount upon all the taxable tangible property, real and
personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are
irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same
become due.
Submission of Bids. Separate proposals shall be submitted for each series of Bonds. Written
bids must be made on forms which may be procured from the Municipal Advisor and shall be addressed
to the undersigned, and marked either (a) “Proposal for General Obligation Bonds, Series 2015-A” or
“Proposal for Taxable General Obligation Bonds, Series 2015-B,” as appropriate. Written bids submitted
by facsimile should not be preceded by a cover sheet and should be sent only once to (651) 223-3046.
Confirmation of receipt of facsimile bids may be made by contacting the Municipal Advisor 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 Bond Sale. If provisions of this Notice of Bond
Sale conflict with those of PARITY®, this Notice of Bond Sale shall control. Bids must be received prior
to the Submittal Hour on the Sale Date accompanied by the Deposit (as hereinafter defined), which may
be submitted separately. Neither the Issuer nor the Municipal Advisor 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. (212) 849-5023.
Conditions of Bids. Each of such proposals shall bear such rate or rates of interest as may be
specified by the bidders, subject to the following conditions: (a) a series of Bonds shall have the same
interest rate for the entire principal amount of each maturity year; (b) no interest rate may exceed a rate
equal to the daily yield for the 10-year Treasury Bond published by THE BOND BUYER, in New York,
New York, on the Monday next preceding the day on which the Bonds are sold, plus: (i) 6% for the
Series 2015-A Bonds; and (ii) 7% for the Series 2015-B Bonds; (c) no supplemental interest payments
will be considered; and (d) each interest rate specified shall be a multiple of 1/100 or 1/8 of 1%. The
initial price to the public for each maturity of each issue must be 98.0% or greater. No bid shall be for
less than $5,058,375 and accrued interest thereon to the date of delivery will be considered for the Series
2015-A Bonds; and no bid shall be for less than $1,139,985 and accrued interest thereon to the date of
delivery will be considered for the Series 2015-B Bonds. Each bid shall specify the total interest cost
(expressed in dollars) during the term of the Bonds on the basis of such bid, the discount, if any, the
premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid
and the TIC (as hereinafter defined) on the basis of such bid. Each bidder shall certify to the Issuer the
correctness of the information contained on the Official Bid Form; the Issuer will be entitled to rely on
such certification. Each bidder agrees that, if it is awarded a series of Bonds, it will provide the
certification as to initial offering prices described under the caption "Certification as to Offering Price" in
this Notice.
Good Faith Deposits. The Successful Bidder shall submit a good faith deposit (the “Deposit")
payable to the order of the Issuer to secure the Issuer from any loss resulting from the failure of the bidder
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to comply with the terms of its bid. Separate Deposits should be submitted with each separate proposal.
The amount of the Deposit for each series of Bonds is as follows: (a) Series 2015-A - $102,500; and (b)
Series 2015-B - $23,100. The Deposit, which must be received by the Issuer by 1:00 p.m., CDT on the
Sale Date. The Deposit may be submitted by wire transfer in Federal Reserve funds, immediately
available for use by the Issuer (wire transfer information may be obtained from the Issuer or the
Municipal Advisor at the addresses set forth below).
No interest on the Deposit will be paid by the Issuer. The Deposit will be held by the Issuer until the
Successful Bidder has complied with all of the terms and conditions of this Notice at which time the
amount of said Deposit shall be returned to the Successful Bidder or deducted from the purchase price at
the option of the Issuer. If the Issuer fails to deliver the Bonds to the Successful Bidder in accordance
with the terms and conditions of this Notice, said Deposit, or the proceeds thereof, will be returned to the
Successful Bidder. If the Successful Bidder defaults in the performance of any of the terms and
conditions of this Notice, the proceeds of such Deposit will be retained by the Issuer as and for liquidated
damages.
Basis of Award. The award of each 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 such series of the Bonds, from the payment dates to the Dated Date,
produces an amount equal to the price bid, including any 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. Bidders are requested to provide a calculation of the TIC for each series of the Bonds on
the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be
considered as informative only and not binding on either the Issuer or the bidder. The Financial Advisor
will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid
price and interest rates specified, the specified bid price and interest rates 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 bid received after the Submittal Hour on the Sale Date will be returned to the bidder.
Any disputes arising hereunder shall be governed by the laws of the State, 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.
The Issuer’s acceptance, including electronic acceptance through PARITY®, of the Successful
Bidder’s proposal for the purchase of a series of the Bonds in accordance with this Notice of Bond Sale
shall constitute a bond purchase agreement between the Issuer and the Successful Bidder for purposes of
the laws of the State and a contract between the Issuer and the Successful Bidder for the purposes of Rule
15c2-12 of the Securities and Exchange Commission (the “Rule”) and Rule G-32 of the Municipal
Securities Rulemaking Board (“Rule G-32”). The method of acceptance shall be determined solely by the
governing body of the Issuer.
Bond Ratings. The outstanding general obligation bonds of the Issuer are rated “A1” by
Moody’s Investors Service. The Issuer has applied to Standard & Poor’s Ratings Services, a division of
McGraw Hill Financial Inc., for a rating on the Bonds herein offered for sale.
Optional Bond Insurance. The Issuer has not applied for any policy of municipal bond
insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance, and any bidder
desires to purchase such policy, such indication and the name of the desired insurer must be set forth on
the bidder’s Official Bid Form. The Issuer specifically reserves the right to reject any bid specifying
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municipal bond insurance, even though such bid may result in the lowest TIC to the Issuer. All costs
associated with the issuance of such policy and associated ratings and expenses (other than any
independent rating requested by the Issuer) shall be paid by the Successful Bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by the Successful Bidder to accept delivery of the Bonds.
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.
Delivery and Payment. The Issuer will pay for preparation of the Bonds and will deliver the
Bonds properly prepared, executed and registered without cost on or about NOVEMBER 10, 2015 (the
“Closing Date”), to DTC for the account of the Successful Bidder. Each 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 Issuer will deliver one Bond of each
maturity of each series registered in the nominee name of DTC.
Reoffering Prices. Each Successful Bidder will be required to complete, execute and deliver to
the Issuer prior to the delivery of the Bonds, a written certification (the “Issue Price Certificate”)
containing the following: (a) the initial offering price and interest rate for each maturity of the Bonds; (b)
that all of the Bonds were offered to the public in a bona fide public offering at the initial offering prices
on the Sale Date; and (c) on the Sale Date the Successful Bidder reasonably expected that at least 10% of
each maturity of the Bonds would be sold to the “public” at prices not higher than the initial offering
prices. For purposes of the preceding sentence “public” means persons other than bond houses, brokers,
or similar persons or organizations acting in the capacity of underwriters or wholesalers. However, such
Issue Price Certificate may indicate that the Successful Bidder has purchased the Bonds for its own
account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the
Bonds for sale to the public.
Subsequent to the Submittal Hour, such initial offering prices to the public shall be provided to
the Municipal Advisor not more than 20 minutes after requested by Municipal Advisor.
At the request of the Issuer, the Successful Bidder will provide information explaining the factual
basis for the Successful Bidder’s Issue Price Certificate. This agreement by the Successful Bidder to
provide such information will continue to apply after the Closing Time if: (a) the Issuer requests the
information in connection with an audit or inquiry by the Internal Revenue Service (the “IRS”) or the
Securities and Exchange Commission (the “SEC”) or (b) the information is required to be retained by the
Issuer pursuant to future regulation or similar guidance from the IRS, the SEC or other federal or state
regulatory authority.
Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary
Official Statement dated September 23, 2015, “deemed final” by the Issuer except for the omission of
certain information as provided in the Rule, copies of which may be obtained from the Municipal 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, which may be in electronic format, in order for the
Successful Bidder to comply with the requirements of the Rule and Rule G-32. Additional copies may be
ordered by the Successful Bidder at its expense.
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Continuing Disclosure. In the Bond Resolution, the Issuer has covenanted to provide annually
certain financial information and operating data and other information necessary to comply with the Rule,
and to transmit the same to the Municipal Securities Rulemaking Board. 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 2015 is as follows:
Equalized Assessed Valuation of

Taxable Tangible Property ............................................................. $118,091,383
Tangible Valuation of Motor Vehicles(2014) ....................................... 17,144,189
Equalized Assessed Tangible Valuation
for Computation of Bonded Debt Limitations ................................. $135,235,572
The total general obligation indebtedness of the Issuer as of the Dated Date, including the Bonds
being sold, is $47,460,000.
Legal Opinion. The Bonds will be sold subject to the approving legal opinions of GILMORE &
BELL, P.C., WICHITA, KANSAS, Bond Counsel, which opinions will be furnished and paid for by the
Issuer, will be printed on the Bonds, if the Bonds are printed, and will be delivered to the Successful
Bidder when the Bonds are delivered. Said opinions will also include the opinion of Bond Counsel
relating to the interest on the Series 2015-A Bonds being excluded from gross income for federal income
tax purposes and interest on the Bonds being exempt from income taxation by the State. 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
Municipal Advisor at the address set forth below:
DATED: September 23, 2015.

By Denise R. Duerksen, Clerk
Written Bid and Good Faith Deposit Delivery Address:

City Hall
201 E. 6th
P.O. Box 426
Newton, Kansas 67114
Phone No.: (316) 284-6001
Fax No.: (316) 284-6090
Email: dduerksen@newtonkansas.com
Municipal Advisor - Facsimile Bid Delivery Address:

Springsted Incorporated, Attn: Bond Services
St. Paul, Minnesota 55101-2887
Phone No. (651) 223-3000
Fax No. (651) 223-3046
Email: bond_services@springsted.com
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OFFICIAL STATEMENT
$5,125,000*
GENERAL OBLIGATION BONDS, SERIES 2015-A
$1,155,000*
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015-B
(GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES)
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Newton, Kansas (the “City”)
and its issuance of $5,125,000* General Obligation Bonds, Series 2015-A (the “Series 2015-A Bonds”)
and $1,155,000* Taxable General Obligation Bonds, Series 2015-B (the “Series 2015-B Bonds” and
collectively with the Series 2015-A Bonds, the “Bonds”).
All capitalized terms used in the following sections that are not expressly defined herein shall have the
meanings as defined in the Bond Resolution, unless the context clearly requires a different meaning. (See
“APPENDIX Il – SUMMARY OF FINANCING DOCUMENTS”.) The Appendices to this Official
Statement are integral parts of this document, to be read in their entirety.
Inquiries may be directed to Mr. Lunda Asmani, Assistant City Manager of Budget and Finance, City of
Newton, 201 East Sixth Street, Newton, KS 67114, by telephoning (316) 284-6019, or by e-mailing
lasmani@newtonkansas.com. Inquiries may also be made to Springsted Incorporated of St. Paul,
Minnesota and Kansas City, Missouri, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101-2887,
by telephoning (651) 223-3000, or by e-mailing bond_services@springsted.com. If information of a
specific legal nature is desired, requests may be directed to Mr. Joe Norton, Gilmore & Bell P.C., Bond
Counsel, by telephoning (316) 267-2091, or by e-mailing jnorton@gilmorebell.com.
CONTINUING DISCLOSURE
The Securities and Exchange Commission (the “SEC”) has promulgated amendments to Rule 15c2-12
(the “Rule”), requiring continuous secondary market disclosure. The City adopted in 2013 an Omnibus
Continuing Disclosure Undertaking, as may be amended and supplemented (the “Disclosure
Undertaking”) wherein the City has covenanted to provide annually certain Financial Information and
Operating Data and other information necessary to comply with the Rule, and to transmit the same to the
Municipal Securities Rulemaking Board. The Disclosure Undertaking modified previous undertakings
the City entered into pursuant to the Rule (the “Prior Undertakings”). In the Bond Resolutions, the City
has covenanted with the Underwriters and the Beneficial Owners to apply the provisions of the Disclosure
Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial
Owners of the Bonds.
In certain prior years, the City has failed to file its Comprehensive Annual Financial Report (the “CAFR”)
within the time period prescribed by the Prior Undertakings. The CAFR contains the audited financial

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statements of, and statistical information regarding, the City. The statistical information included in the
CAFRs contains most, but not all, of the information described as Operating Data in Prior Undertakings
but does contain the information described as Operating Data in the Disclosure Undertaking. The City’s
filings for such years are set forth on the table below.
Fiscal Year
Ending Filing Time CAFR
December 31 Period (Days) Filing Date
2014 210 07/30/2015

2013 210 07/30/2014
2012 210 08/16/2013
2011 210 02/07/2013
2010 210 07/26/2011 *
*
The City inadvertently did not associate this filing with its Water Utility System Revenue Bonds, Series 2000.
On February 7, 2013, the City associated its CAFR for the fiscal year ending in 2010 with said bonds.
While the City had the filing deficiencies referred to above, it issued general obligation bonds in 2010,
2012 and 2013 payable from the same source of revenue as the Bonds. The official statements for the
Series 2010, Series 2012 and Series 2013 Bonds were filed with the MSRB, but were not incorporated by
reference in the filings made by the City with respect to one or more series of then outstanding general
obligation bonds.
During the past five years, the City has made filings of event notices on EMMA with respect to bond calls
and defeasances, however, during said time period, the City may not have made timely filings of event
notices on EMMA relating to all bond calls, defeasances or rating changes. The City believes this
information was disseminated or available through other sources.
For more information regarding the Disclosure Undertaking, see “APPENDIX II – SUMMARY OF
FINANCING DOCUMENTS – The Disclosure Undertaking.”
THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on September 1 as set forth on the
inside front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the
Bonds is payable on March 1 and September 1 of each year, commencing September 1, 2016. Interest
will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar and Paying
Agent as of the fifteenth day of the calendar month next preceding such interest payment date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. Principal of and interest on the
Bonds will be paid as described in the section herein entitled “Book Entry System.” The Treasurer of the
State of Kansas, Topeka, Kansas will act as Registrar and Paying Agent for the Bonds.
Method and Place of Payment of the Bonds
The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency
which, on the respective dates of payment thereof, is legal tender for the payment of public and private
debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose
name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and
surrender of such Bond at the principal office of the Paying Agent.
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The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond
as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check
or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such
other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an
interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of
Bonds, by electronic transfer to such Owner upon written notice given to the Registrar by such Owner,
not less than 15 days prior to the Record Date for such interest, containing the electronic transfer
instructions including the bank, ABA routing number and account number to which such Owner wishes
to have such transfer directed.
Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable
to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name
such Bond is registered at the close of business on the Special Record Date for the payment of such
Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall
notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond
and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by
the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the
Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall
notify the City of such Special Record Date and shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid,
to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date.
SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE
PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY,
WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL
PROCEDURES. See “THE BONDS – Book-Entry Bonds; Securities Depository.”
Payments Due on Saturdays, Sundays and Holidays
In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption
Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding
Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall
accrue for the period after such Bond Payment Date.
Mutilated, Lost, Stolen or Destroyed Bonds
If (a) any mutilated Bond is surrendered to the Registrar or the Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the City and the
Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to
the City or the Registrar that such Bond has been acquired by a bona fide purchaser, the City shall execute
and, upon the City's request, the Registrar shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor
and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to
become due and payable, the City, in its discretion, may pay such Bond instead of issuing a new Bond.
Upon the issuance of any new Bond, the City may require the payment by the Owner of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Paying Agent) connected therewith.
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Nonpresentment of Bonds
If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds
sufficient to pay such Bond have been made available to the Paying Agent all liability of the City to the
Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely
discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for
interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively
to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with
respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date
when such Bond becomes due at Maturity, the Paying Agent shall repay to the City the funds theretofore
held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute
of limitation, thereafter be an unsecured obligation of the City, and the Owner thereof shall be entitled to
look only to the City for payment, and then only to the extent of the amount so repaid to it by the Paying
Agent, and the City shall not be liable for any interest thereon and shall not be regarded as a trustee of
such money.
Redemption Provisions
Optional Redemption
At the option of the City, Series 2015-A Bonds maturing on September 1 in the years 2024, and
date of redemption.
At the option of the City, Series 2015-B Bonds maturing on September 1 in the years 2025, and
date of redemption.
Selection of Bonds for Redemption
The Bonds shall be redeemed only in denominations $5,000 or any integral multiple thereof (the
“Authorized Denomination”). When less than all of the Bonds are to be redeemed and paid prior to their
Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less
than a full Stated Maturity shall be selected by the Registrar in minimum Authorized Denomination in
such equitable manner as the Registrar may determine. In the case of a partial redemption of Bonds by lot
when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding,
then for all purposes in connection with such redemption each minimum Authorized Denomination of
face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If
it is determined that one or more, but not all, of the minimum Authorized Denomination value represented
by any Bond is selected for redemption, then upon notice of intention to redeem such minimum
Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and
surrender such Bond to the Registrar: (1) for payment of the Redemption Price and interest to the
Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for
exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal
amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond
fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall,
nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized
Denomination value called for redemption (and to that extent only).
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Notice of Redemption
As long as the book entry only system applies to the Bonds, notice of redemption is to be mailed to DTC
not less than 30 days prior to the date set for redemption in accordance with the procedures set forth in the
letter of representations between the City and DTC. See “THE BONDS - Book Entry System” herein for
a description of DTC’s practices with respect to redemption notices. If the book entry only system is
discontinued, the following notice of redemption procedures will apply.
Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for
redemption and payment prior to the maturity, the City shall instruct the Registrar to give written notice
of its intention to call and pay such Bonds on a specified date, the same being described by maturity and
series, such notice to be mailed by United States first class mail addressed to the owners of the Bonds,
each of the notices to be mailed not less than 30 days prior to the date fixed for redemption. The City
shall also give such additional notice as may be required by Kansas law or regulation of the Securities and
Exchange Commission in effect as of the date of such notice. If any Bonds are called for redemption and
payment as described above, all interest on such Bonds shall cease from and after the date for which such
call is made, provided funds are available for its payment at the price specified.
Registration and Transfer
Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption
and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call
and pay said Bonds to the Registrar and the Underwriter. In addition, the City shall cause the Registrar to
give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be
deposited in the United States first class mail not less than 30 days prior to the Redemption Date.
All official notices of redemption shall be dated and shall contain the following information: (a) the
Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed,
the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts)
of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will
become due and payable upon each such Bond or portion thereof called for redemption and that interest
thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are
to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying
Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect
therein shall not invalidate any redemption.
Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money
sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on
such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or
portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the
Redemption Price therein specified, and from and after the Redemption Date (unless the City defaults in
the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest.
For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Registrar shall
provide the notices specified to the Securities Depository. It is expected that the Securities Depository
shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the
Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the
part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Registrar, the
Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected,
shall not affect the validity of the redemption of such Bond.
In addition to the foregoing notice, the City shall provide such notices of redemption as are required by
the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or
voluntary standards then in effect for processing redemptions of municipal securities established by the
State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect
or invalidate the redemption of any Bond.
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Book Entry System
The following information concerning the Depository Trust Company (“DTC”) and DTC’s book-
entry system has been obtained from DTC. The City takes no responsibility as to the accuracy or
completeness thereof and neither the Indirect Participants nor the Beneficial Owners should rely on
the following information with respect to such matters, but should instead confirm the same with
DTC or the Direct Participants, as the case may be. There can be no assurance that DTC will abide
by its procedures or that such procedures will not be changed from time to time.
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of each series of the Bonds, each in
the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries)that
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AAA. The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished
by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
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Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City or its agent on the payable date in accordance with their respective holdings shown on
DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in “street name,” and will be the responsibility of such Participant and not of DTC or the City,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may
be requested by an authorized representative of DTC) is the responsibility of the City or its agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its
Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant
to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Paying Agent. The
requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory
purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct
Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Paying
Agent’s DTC account.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository
is not obtained, certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
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THE PROJECTS
The Bonds are being issued for the purpose of providing permanent financing for the construction of
certain internal improvements (collectively, the “Improvements”), more specifically described as follows:
Amount
Project Description Ord./Res. No. Authority (K.S.A) Financed
Logistics Park Paving, Phase I Res. I-1147 12-685 et seq. $2,525,000
Ord. 4775-11
Logistics Park Paving, Phase II Res. I-1151 12-685 et seq. 565,000
Ord. 4794-11
Airport Land Acquisition Ord. 4881-15 12-1613h/Kan. 1,345,000
Const. Art. 12, § 5
Ash Street Bridge Res. I-1156 13-1024a/ 510,000
Ch. Ords. 35 & 47
Hillside & SE 9th – Water Main Res. I-1149 65-163d et seq. 295,000
Extension
Hillside Sewer Improvements Res. I-1150 13-1024a/ 490,000
Ch. Ords. 35 & 47
2013 CIP Overlay Program Res. I-1159 12-685 et seq. 345,000
Ord. 4824-13
Runway 17-35 Design & Res. I-1158 12-1736 et seq. 205,000
Reconstruct
Total: $6,280,000
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to the Constitution, particularly including Article 12, § 5 thereof,
and statutes of the state of Kansas, including K.S.A. 12-685 et seq., K.SA. 12-1613h, K.S.A. 12-1736 et
seq., K.S.A. 13-1024a, as amended by Charter Ordinances Nos. 35 and 47 of the City, and
K.S.A. 65-163d et seq., all as amended, and separate ordinances and resolutions adopted by the governing
body of the City (collectively the “Bond Resolution”). The proceeds of the Bonds, along with available
City funds, will be used for the purpose of paying a portion of the cost of certain internal improvements as
further described in THE PROJECTS.
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SOURCES AND USES OF FUNDS
The Series 2015-A Bonds
The composition of the Series 2015-A Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $5,125,000
Available City Funds 185,436
Total Sources of Funds $5,310,436
Uses of Funds:
Deposit to Project Fund $5,186,994
Allowance for Discount Bidding 66,625
Costs of Issuance 56,817
Total Uses of Funds $5,310,436
The Series 2015-B Bonds

The composition of the Series 2015-B Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $1,155,000
Total Sources of Funds $1,155,000
Uses of Funds:
Deposit to Project Fund $1,112,613
Costs of Issuance 27,372
Allowance for Discount Bidding 15,015
Total Uses of Funds $1,155,000
SECURITY AND FINANCING
The Bonds shall be general obligations of the City payable as to both principal and interest from ad
valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
property, real and personal, within the territorial limits of the City. The full faith, credit and resources of
the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the
same become due.
Levy and Collection of Annual Tax, Transfer to Debt Service Account
The governing body of the City shall annually make provision for the payment of principal of, premium,
if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and
collecting the necessary taxes upon all of the taxable tangible property within the City in the manner
provided by law. Such taxes shall be extended upon the tax rolls in each of the several years,
respectively, and shall be levied and collected at the same time and in the same manner as the other ad
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valorem taxes of the City are levied and collected. The proceeds derived from said taxes shall be
deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the City,
shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the
principal of and interest on the Bonds as and when the same become due, taking into account any
scheduled mandatory redemptions, and the fees and expenses of the Paying Agent.
FUTURE FINANCING
The City does not anticipate issuing any additional long-term general obligation debt within the next
90 days.
ABSENCE OF LITIGATION
The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of
management of the City, any judgment rendered against the City in such proceedings would not
materially adversely effect the financial position of the City.
There is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby
any question is raised or may be raised, questioning, disputing or affecting in any way the legal
organization of the City or its boundaries, or the right or title of any of its officers to their respective
offices, or the legality of any official act shown to have been done in the transcript evidencing the
issuance of the Bonds, or the constitutionality or validity of the indebtedness represented by the Bonds
shown to be authorized in said transcript, or the validity of the Bonds, or any of the proceedings had in
relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the
principal and interest thereof.
APPROVAL OF LEGALITY
All matters incident to the authorization and issuance of the Bonds are subject to the approval of Gilmore
& Bell, P.C., Wichita, Kansas, Bond Counsel to the City. The factual and financial information appearing
herein has been supplied or reviewed by certain officials of the City and its certified public accountants,
as referred to herein, and Bond Counsel expresses no opinion as to the accuracy or sufficiency thereof,
except for the matters appearing in the sections of this Official Statement captioned “THE BONDS,”
“TAX MATTERS – THE SERIES 2015-A BONDS,” “TAX MATTERS – THE SERIES 2015-B
BONDS,” “APPENDIX I – PROPOSED FORMS OF BOND COUNSEL OPINIONS,” and “APPENDIX
II – SUMMARY OF FINANCING DOCUMENTS.”
TAX MATTERS – THE SERIES 2015-A BONDS
The following is a summary of the material federal and state income tax consequences of holding and
disposing of the Series 2015-A Bonds. This summary is based upon laws, regulations, rulings and
judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This
summary does not discuss all aspects of federal income taxation that may be relevant to investors in light
of their personal investment circumstances or describe the tax consequences to certain types of holders
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subject to special treatment under the federal income tax laws (for example, dealers in securities or other
persons who do not hold the Series 2015-A Bonds as a capital asset, tax-exempt organizations, individual
retirement accounts and other tax deferred accounts, and foreign taxpayers) and, except for the income tax
laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign
tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2015-A
Bonds in the secondary market at a premium or a discount. Prospective investors are advised to consult
their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing
of the Series 2015-A Bonds.
Opinion of Bond Counsel

In the opinion of Bond Counsel, under the law existing as of the issue date of the Series 2015-A Bonds:
Federal Tax Exemption. The interest on the Series 2015-A Bonds [(including any original issue discount
properly allocable to an owner thereof)] is excludable from gross income for federal income tax purposes.
Alternative Minimum Tax. Interest on the Series 2015-A Bonds is not an item of tax preference for
purposes of computing the federal alternative minimum tax imposed on individuals and corporations, but
is taken into account in determining adjusted current earnings for the purpose of computing the alternative
minimum tax imposed on certain corporations.
Bank Qualification. The Series 2015-A Bonds have been designated as “qualified tax-exempt
obligations” for purposes of Code §265(b).
Kansas Tax Exemption. The interest on the Series 2015-A Bonds is exempt from income taxation by the
State of Kansas.
Bond Counsel’s opinions are provided as of the date of the original issue of the Series 2015-A Bonds,
subject to the condition that the City comply with all requirements of the Code that must be satisfied
subsequent to the issuance of the Series 2015-A Bonds in order that interest thereon be, or continue to be,
excludable from gross income for federal income tax purposes. The City has covenanted to comply with
all such requirements. Failure to comply with certain of such requirements may cause the inclusion of
interest on the Series 2015-A Bonds in gross income for federal income tax purposes retroactive to the
date of issuance of the Series 2015-A Bonds. Bond Counsel is expressing no opinion regarding other
federal, state or local tax consequences arising with respect to the Series 2015-A Bonds.
Other Tax Consequences

[Original Issue Discount. For Federal income tax purposes, original issue discount (“OID”) is the excess
of the stated redemption price at maturity of a Series 2015-A Bond over its issue price. The issue price of
a Series 2015-A Bond is the first price at which a substantial amount of the Series 2015-A Bonds of that
maturity have been sold (ignoring sales to bond houses, brokers, or similar persons or organizations
acting in the capacity of underwriters, placement agents, or wholesalers). Under Code § 1288, OID on
tax-exempt bonds accrues on a compound basis. The amount of OID that accrues to an owner of a Series
2015-A Bond during any accrual period generally equals: (a) the issue price of that Series 2015-A Bond,
plus the amount of OID accrued in all prior accrual periods; multiplied by (b) the yield to maturity on that
Series 2015-A Bond (determined on the basis of compounding at the close of each accrual period and
properly adjusted for the length of the accrual period); minus (c) any interest payable on that Series 2015-
A Bond during that accrual period. The amount of OID accrued in a particular accrual period will be
considered to be received ratably on each day of the accrual period, will be excludable from gross income
for Federal income tax purposes, and will increase the owner’s tax basis in that Series 2015-A Bond.
Prospective investors should consult their own tax advisors concerning the calculation and accrual of
OID.]
[Original Issue Premium. If a Series 2015-A Bond is issued at a price that exceeds the stated redemption
price at maturity of the Series 2015-A Bond, the excess of the purchase price over the stated redemption
price at maturity constitutes “premium” on that Series 2015-A Bond. Under Code § 171, the purchaser of
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that Series 2015-A Bond must amortize the premium over the term of the Series 2015-A Bond using
constant yield principles, based on the purchaser’s yield to maturity. As premium is amortized, the
owner’s basis in the Series 2015-A Bond and the amount of tax-exempt interest received will be reduced
by the amount of amortizable premium properly allocable to the owner. This will result in an increase in
the gain (or decrease in the loss) to be recognized for Federal income tax purposes on sale or disposition
of the Series 2015-A Bond prior to its maturity. Even though the owner’s basis is reduced, no Federal
income tax deduction is allowed. Prospective investors should consult their own tax advisors concerning
the calculation and accrual of bond premium.]
Sale, Exchange or Retirement of Series 2015-A Bonds. Upon the sale, exchange or retirement (including
redemption) of a Series 2015-A Bond, an owner of the Series 2015-A Bond generally will recognize gain
or loss in an amount equal to the difference between the amount of cash and the fair market value of any
property received on the sale, exchange or retirement of the Series 2015-A Bond (other than in respect of
accrued and unpaid interest) and such owner’s adjusted tax basis in the Series 2015-A Bond. To the
extent the Series 2015-A Bonds are held as a capital asset, such gain or loss will be capital gain or loss
and will be long-term capital gain or loss if the Series 2015-A Bond has been held for more than 12
months at the time of sale, exchange or retirement.
Reporting Requirements. In general, information reporting requirements will apply to certain payments
of principal, interest and premium paid on the Series 2015-A Bonds, and to the proceeds paid on the sale
of the Series 2015-A Bonds, other than certain exempt recipients (such as corporations and foreign
entities). A backup withholding tax will apply to such payments if the owner fails to provide a taxpayer
identification number or certification of foreign or other exempt status or fails to report in full dividend
and interest income. The amount of any backup withholding from a payment to an owner will be allowed
as a credit against the owner’s federal income tax liability.
Collateral Federal Income Tax Consequences. Prospective purchasers of the Series 2015-A Bonds
should be aware that ownership of the Series 2015-A Bonds may result in collateral federal income tax
consequences to certain taxpayers, including, without limitation, financial institutions, property and
casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits,
certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits
tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued
indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Series 2015-A
Bonds. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of the
Series 2015-A Bonds should consult their tax advisors as to the applicability of these tax consequences
and other federal income tax consequences of the purchase, ownership and disposition of the
Series 2015-A Bonds, including the possible application of state, local, foreign and other tax laws.
TAX MATTERS – THE SERIES 2015-B BONDS
disposing of the Series 2015-B Bonds. This summary is based upon laws, regulations, rulings and
judicial decisions now in effect, all of which are subject to change (possibly on a retroactive basis). This
summary does not discuss all aspects of federal income taxation that may be relevant to investors in light
of their personal investment circumstances or describe the tax consequences to certain types of holders
subject to special treatment under the federal income tax laws (for example, dealers in securities or other
persons who do not hold the Series 2015-B Bonds as a capital asset, tax-exempt organizations, individual
retirement accounts and other tax deferred accounts, and foreign taxpayers) and, except for the income tax
laws of the State of Kansas, does not discuss the consequences to an owner under state, local or foreign
tax laws. The summary does not deal with the tax treatment of persons who purchase the Series 2015-B
Bonds in the secondary market at a premium or a discount. Prospective investors are advised to consult
their own tax advisors regarding federal, state, local and other tax considerations of holding and disposing
of the Series 2015-B Bonds.
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In the opinion of Bond Counsel, under the law existing as of the issue date of the Series 2015-B Bonds:
Interest Taxable. The interest on the Series 2015-B Bonds is included in gross income for federal income
tax purposes.
Kansas Tax Exemption. The interest on the Series 2015-B Bonds is exempt from income taxation by the
State of Kansas.

[Original Issue Premium. If a Series 2015-B Bond is purchased at a price that exceeds the stated
redemption price of the Series 2015-B Bond at maturity, the excess of the purchase price over the stated
redemption price at maturity constitutes premium on the Series 2015-B Bond, and that Series 2015-B Bond
is referred to in this discussion as a “Taxable Premium Bond.” Under Code § 171, the purchaser of a
Taxable Premium Bond may elect to amortize the premium over the term of the Taxable Premium Bond
using constant yield principles, based on the purchaser’s yield to maturity. An owner of a Taxable Premium
Bond amortizes bond premium by offsetting the qualified stated interest allocable to an accrual period with
the bond premium allocable to that accrual period. This offset occurs when the owner takes the qualified
stated interest into income under the owner’s regular method of accounting. If the premium allocable to an
accrual period exceeds the qualified stated interest for that period, the excess is treated by the owner as a
deduction under Code § 171(a)(1). As premium is amortized, the owner’s basis in the Taxable Premium
Bond will be reduced by the amount of amortizable premium properly allocable to the owner. Prospective
investors should consult their own tax advisors concerning the calculation and accrual of bond premium.]
Sale, Exchange or Retirement of Series 2015-B Bonds. Upon the sale, exchange or retirement (including
redemption) of a Series 2015-B Bond, an owner of the Series 2015-B Bond generally will recognize gain
or loss in an amount equal to the difference between the amount of cash and the fair market value of any
property received on the sale, exchange or retirement of the Series 2015-B Bond (other than in respect of
accrued and unpaid interest) and such owner’s adjusted tax basis in the Series 2015-B Bond. To the
extent the Series 2015-B Bonds are held as a capital asset, such gain or loss will be capital gain or loss
and will be long-term capital gain or loss if the Series 2015-B Bond has been held for more than 12
months at the time of sale, exchange or retirement.
RISK FACTORS AND INVESTMENT CONSIDERATIONS
A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE

THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE
RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS
ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE
DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE
THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE
CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND
ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS
SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED
FROM THE ISSUER OR THE UNDERWRITER.
Taxation of Interest on the Series 2015-A Bonds

An opinion of Bond Counsel will be obtained in the effect that interest earned on the Series 2015-A
Bonds is excludable from gross income for federal income tax purposes under current provisions of the
Code, and applicable rulings and regulations under the Code; however, an application for a ruling has not
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been made and an opinion of counsel is not binding upon the Internal Revenue Service. There can be no
assurance that the present provisions of the code, or the rules and regulations thereunder, will not be
adversely amended or modified, thereby rendering the interest earned on the Series 2015-A Bonds
includable in gross income for federal income tax purposes.
The City has covenanted in the Series 2015-A Resolution and in other documents and certificates to be
delivered in connection with the issuance of the Series 2015-A Bonds to comply with the provisions of
the Code, including those which require the City to take or omit to take certain actions after the issuance
of the Series 2015-A Bonds. Because the existence and continuation of the excludability of the interest
on the Series 2015-A Bonds depends upon events occurring after the date of issuance of the
Series 2015-A Bonds, the opinion of Bond Counsel described under “TAX MATTERS – THE
SERIES 2015-A BONDS” assumes the compliance by the City with the provisions of the Code described
above and the regulations relating thereto. No opinion is expressed by Bond Counsel with respect to the
excludability of the interest on the Series 2015-A Bonds in the event of noncompliance with such
provisions. The failure of the City to comply with the provisions described above may cause the interest
on the Series 2015-A Bonds to become includable in gross income as the date of issuance.
Market for the Bonds

There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices
of B traded in the secondary market, though, are subject to adjustment upward and downward in response
to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary
market trading in the Bonds as a result of financial condition or market position of broker-dealers,
prevailing market conditions, lack of adequate current financial information about the City, or a material
adverse change in the financial condition of the City, whether or not the Bonds are in default as to
principal and interest payments, and other factors which may give rise to uncertainty concerning prudent
secondary market practices.
No Additional Interest or Mandatory Redemption upon Event of Taxability

The Series 2015-A Resolution does not provide for the payment of additional interest or penalty on the
Series 2015-A Bonds or the mandatory redemption thereof if the interest thereon becomes includable in
gross income for federal income tax purposes. Likewise, the Series 2015-A Resolution does not provide
for the payment of any additional interest or penalty on the Series 2015-A Bonds if the interest thereon
becomes includable in gross income for Kansas income tax purposes.
Legal Matters
Various state and federal laws, regulations and constitutional provisions apply to the Bonds created by the
Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such
applicable laws, provisions and regulations which would have a material effect, either directly or
indirectly, on the City or the taxing authority of the City. Changes in laws affecting the taxing authority
of the City could limit the ability of the City to collect revenue sufficient to pay principal and interest on
the Bonds.
Limitations on Remedies Available to Owners of Bonds

The enforceability of the rights and remedies of the owners of the Bonds, and the Bonds incurred by the
City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the
enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may
limit the specific enforcement under state law of certain remedies; the exercise by the United States of
America of the powers delegated to it by the United States Constitution; and the reasonable and necessary
exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its
- 14 -
governmental subdivisions in the interest of serving a legitimate and significant public purpose.
Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could
subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and
otherwise, and consequently may involve risks of delay, limitation or modification of their rights.
Suitability of Investment
The tax exempt feature of the Series 2015-A Bonds is more valuable to high tax bracket investors than to
investors who are in low tax brackets and so the value of the interest compensation to any particular
investor will vary with individual tax rates. Each prospective investor should carefully examine this
Official Statement, including the Appendices hereto, and its own financial condition to make a judgment
as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an
appropriate investment.
RATINGS
Application for ratings of the Bonds has been made to Standard & Poor’s Ratings Services (“Standard &
Poor’s”), 55 Water Street, New York, New York. If ratings are assigned, they will reflect only the
opinion of Standard & Poor’s. Any explanation of the significance of the ratings may be obtained only
from Standard & Poor’s.
There is no assurance that ratings, if assigned, will continue for any given period of time, or that such
ratings will not be revised, suspended or withdrawn, if, in the judgment of Standard & Poor’s,
circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on
the market price of the Bonds.
MUNICIPAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota and Kansas
City, Missouri (“Springsted”), as municipal advisor in connection with certain aspects of the issuance of
the Bonds. In preparing this Official Statement, Springsted has relied upon governmental officials, and
other sources, who have access to relevant data to provide accurate information for this Official
Statement, and Springsted has not been engaged, nor has it undertaken, to independently verify the
accuracy of such information. Springsted is not a public accounting firm and has not been engaged by the
City to compile, review, examine or audit any information in this Official Statement in accordance with
accounting standards. Springsted is an independent advisory firm, registered as a municipal advisor, and
is not engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
CERTIFICATION
The City has authorized the distribution of the Preliminary Official Statement for use in connection with
the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The
Purchaser(s) will be furnished with a certificate signed by the appropriate officers of the City stating that
the City examined each document and that, as of the respective date of each and the date of such
certificate, each document did not and does not contain any untrue statement of material fact or omit to
state a material fact necessary, in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading.
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CITY PROPERTY VALUES
The determination of assessed valuation and the collection of property taxes for all political subdivisions
in the State of Kansas is conducted by Kansas counties. The Harvey County Appraiser’s office
determines annually the assessed valuation that is used as a basis for the mill levy on property located in
the City. The County Appraiser’s determination is based on criteria established by Kansas Statutes.
The market valuation of every property must be updated every year, with physical inspection required
once every six years. Valuations as of January 1 are made available in September of each year for taxes
payable during the next calendar year. The State Constitution provides that, for ad valorem taxation
purposes, real and personal property are divided into classes and assessed at percentages of market value.
Trend of Values
Harvey Taxable Assessed

County Appraised Assessed Motor Tangible
Year(a) Sales Ratio Valuation Valuation(b) Vehicles Valuation
2015/16(c) N/A N/A $118,091,383 N/A $135,235,572

2014/15 100.0%(d) $800,408,755 117,140,894 $17,144,189 134,285,083
2013/14 100.0(d) 795,829,943 116,974,268 16,974,048 133,659,354
2012/13 101.3 791,414,304 114,979,257 16,685,086 131,664,343
2011/12 101.2 781,274,217 114,957,329 16,765,853 131,723,182
2010/11 97.2 758,847,049 110,532,316 16,698,797 127,231,113
2009/10 96.1 755,759,652 109,591,288 17,604,906 127,196,194
(a) As valued in the first year for the purpose of computing the rates of taxes collectible in the following year.
(b) The value of motor and recreational vehicles is not included in total property valuation for determining the
property tax levy. It is, however, included in total property valuation for determining the County’s debt limit.
(c) Preliminary; subject to change.
(d) Preliminary 2014 preliminary sales ratio, 2014 final sales ratio, and 2015 preliminary sales ratios are not yet
available.
Sources: The Harvey County Clerk’s Office and the Kansas Department of Revenue, http://www.ksrevenue.org.
For an explanation of Kansas property taxes, see Appendix III.
2015/16 Preliminary Equalized Assessed Tangible Valuation: $135,235,572

Real Property $109,177,299 92.4%
Personal Property 2,798,333 2.4
State Assessed Utilities 6,115,751 5.2
Total Taxable Assessed
Valuation $118,091,383 100.0%
Motor Vehicles (2014) 17,144,189
Total Equalized Assessed
Tangible Valuation $135,235,572
Source: Harvey County Clerk’s Office September 2015.
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Ten of the Largest Taxpayers in the City
2014/15 Taxable
Taxpayer Type of Property Assessed Value
Walmart Retail Store $ 2,146,653
Kansas Gas and Electric Utility 2,011,027
Cargill Grain Elevator and Mill 1,596,670
Kansas Gas Service Utility 1,266,187
BNSF Railway Company Railroad 1,038,877
Dillons Companies Grocery Stores 998,606
Norcraft Companies Wood Cabinets/Manufacturing 866,358
Newton Medical Center Medical Services 850,000
Broadway Hospitality Holiday Inn Hotel 752,017
Dillons Real Estate Convenience Store 724,731
Total $12,251,126*
* Represents 9.1% of the City's 2014/15 equalized assessed tangible valuation of $134,285,083.
CITY INDEBTEDNESS
2015/16 Total Equalized Assessed Tangible Valuation $135,235,572

Debt Limit Ratio 30%
Debt Limit $ 40,570,672
Outstanding Debt Subject to Debt Limit (30,587,345)
Debt Authority Remaining as of November 10, 2015 $ 9,983,327
NOTE: General obligation bonds and temporary notes issued to finance utility improvements, revenue bonds,
and refunding bonds are not subject to the debt limit.
General Obligation Bonds

Est. Principal % Subject Amount
Date Original Final Outstanding to the Subject to
of Issue Amount Purpose Maturity As of 11-10-15 Debt Limit the Debt Limit
9-1-04 $ 515,000 Taxable Refunding 9-1-2024 $ 310,000 100.00 $ 310,000
11-1-06 9,515,000 Improvements 9-1-2019 1,830,000 50.61 926,163
11-1-06 1,100,000 Taxable Improvements 9-1-2016 135,000 100.00 135,000
11-1-07 2,300,000 Improvements 9-1-2027 1,605,000 -0- -0-
4-1-08 12,600,000 Improvements 9-1-2028 9,710,000 90.48 8,785,608
4-1-08 710,000 Taxable Improvements 9-1-2018 265,000 100.00 265,000
7-1-09 6,815,000 Refunding &
Improvements 9-1-2029 4,655,000 48.18 2,242,779
7-15-10 7,800,000 Refunding &
Improvements 9-1-2030 5,540,000 70.21 3,889,634
12-1-10 2,000,000 Taxable Improvements 12-1-2030 2,000,000 100.00 2,000,000
12-15-10 2,935,000 Tax Increment
Improvements 12-1-2030 2,690,000 -0- -0-
4-1-12 3,570,000 Refunding 9-1-2024 3,150,000 72.06 2,269,890
3-26-13 9,595,000 Refunding &
Improvements 9-1-2033 9,290,000 47.99 4,458,271
11-10-15 5,125,000 Improvements (the
Series 2015-A Bonds) 9-1-2036 5,125,000 81.00 4,150,000
11-10-15 1,155,000 Taxable Improvements
(the Series 2015-B
Bonds) 9-1-2025 1,155,000 100.00 1,155,000
Total $47,460,000 $30,587,345
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State Revolving Loans
1999 $2,086,456 Water 8-1-2017 $ 493,171 -0- -0-

2002 1,207,034 Sewer 2-1-2019 464,031 -0- -0-
2004 1,231,500 Water 2-1-2020 416,830 -0- -0-
2006 1,070,150 KDOT 8-1-2029 177,783 -0- -0-
2008 651,533 Water 2-1-2029 457,823 -0- -0-
2010 1,749,683 Water 9-1-2022 1,325,511 -0- -0-
2010 7,181,779 Sewer 9-1-2029 5,329,360 -0- -0-
Total $8,664,509
Public Building Commission Revenue Bonds*

6-1-04 $2,685,000 Athletic Facilities 2-1-2024 $1,785,000 -0- -0-

3-1-05 6,685,000 Golf Course 3-1-2017 835,000 -0- -0-
5-1-12 5,915,000 Refunding 3-1-2025 5,315,000 -0- -0-
Total $7,935,000
* These issues are secured by rental payments made from the City to the City of Newton, Kansas Public Building
Commission. The City’s obligation under the lease agreements is not subject to annual appropriation.
County Public Building Commission Revenue Bonds*

3-6-14 $1,230,000 Airport (AMT) 8-1-2033 $1,230,000 -0- -0-

3-6-14 148,000 Taxable Airport 8-1-2020 148,000 -0- -0-
Total $1,378,000
* The Bonds are secured by lease payments made from the City and the County to the Harvey County Public
Building Commission. The City’s obligation under the lease agreements is not subject to annual appropriation.
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Estimated Calendar Year Debt Service Payments Including the Bonds
General Obligation Bonds State Revolving Loans
Year Principal Principal & Interest(a) Principal Principal & Interest
2015 (at 11-10) $ 125,000 $ 233,147 (Paid) (Paid)
2016 2,790,000 4,444,275 $ 804,566 $ 1,047,308
2017 3,240,000 4,826,829 793,356 1,010,643
2018 3,350,000 4,833,781 746,502 938,826
2019 3,385,000 4,756,126 695,478 864,610
2020 3,495,000 4,754,600 583,036 732,680
2021 3,620,000 4,767,775 554,034 687,994
2022 3,295,000 4,325,676 570,830 689,512
2023 3,405,000 4,325,892 513,509 616,963
2024 3,540,000 4,346,587 529,068 618,387
2025 3,245,000 3,930,284 545,103 619,856
2026 3,360,000 3,930,064 561,627 621,369
2027 2,585,000 3,024,036 578,658 622,929
2028 2,535,000 2,863,029 596,209 624,537
2029 1,605,000 1,823,079 592,533 604,430
2030 1,220,000 1,367,893
2031 550,000 645,818
2032 570,000 646,198
2033 590,000 645,573
2034 310,000 343,923
2035 315,000 338,228
2036 330,000 342,045
Total $47,460,000(b) $61,514,858 $8,664,509(c) $10,300,044
Public Building Commission County Public Building

Revenue Bonds Commission Revenue Bonds
Year Principal Principal & Interest Principal Principal & Interest
2015 (at 11-10) (Paid) (Paid) -0- (Paid)
2016 $ 725,000 $ 942,335 -0- $ 51,366
2017 710,000 896,920 $ 36,000 87,366
2018 790,000 951,260 36,000 86,376
2019 815,000 956,080 37,000 86,386
2020 855,000 974,955 74,000 122,369
2021 855,000 953,076 75,000 121,421
2022 850,000 925,581 75,000 119,359
2023 855,000 907,062 80,000 122,034
2024 865,000 892,386 80,000 119,394
2025 615,000 622,380 85,000 121,594
2026 85,000 118,513
2027 90,000 120,283
2028 95,000 121,683
2029 100,000 122,788
2030 100,000 118,638
2031 105,000 119,388
2032 110,000 119,873
2033 115,000 120,060
Total $7,935,000 $9,022,035 $1,378,000(d) $1,998,891
(a) Includes the Series 2015-A Bonds and the Series 2015-B Bonds as assumed average annual interest rates of
3.03% and 2.81%, respectively.
(b) 63.7% of this debt will be retired within ten years.
(c) 73.1% of this debt will be retired within ten years.
(d) 48.1% of this debt will be retired within ten years.
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Debt Payment Record
The City has never in its history monetarily defaulted on the payment of any of its debt or lease
obligations.
Overlapping Debt
Debt Applicable
Est. G.O. Debt to Value in City
Taxing Unit* As of 11-10-15 Percent Amount
Harvey County $ 3,780,000 18.65% $ 704,970

USD No. 373 (Newton) 38,195,000 59.58 22,756,581
Total $23,461,551
* Only those units with outstanding general obligation debt are shown here.
Debt Ratios*
G.O. G.O. Direct &
Direct Debt Overlapping Debt
2014/15 Appraised Valuation ($800,408,755) 5.93% 8.86%

2015/16 Equalized Assessed Tangible
Valuation ($135,235,572) 35.09% 52.44%
Per Capita - (19,120 - 2014 U.S. Census Estimate) $2,482 $3,709
* Excludes revenue bonds, state revolving loans, and Public Building Commission revenue bonds.
CITY TAX RATES, LEVIES AND COLLECTIONS
Property taxes are certified by the City to the County Clerk by August 25 of each year for the following
fiscal year. Taxes are levied by the County Clerk and payable to the County Treasurer. Property taxes
may be paid in two installments, the first due December 20 in the year the taxes are levied and the second
due May 10 of the following year. Taxes become delinquent after May 10 and interest accrues at a rate
set by State statute until paid or until the property is sold for taxes. Special assessments are levied and
collected in the same manner as property taxes.
Tax Rates (Expressed in Mills)
Tax Rates of the City
Levy Budget Bond Special Total

Year Year General Airport and Interest Library Liability City
2014 2015 43.739 0.647 1.873 5.708 0.129 52.096

2013 2014 42.704 0.656 1.843 5.674 0.237 51.114
2012 2013 34.793 0.731 4.443 5.646 0.236 45.849
2011 2012 34.552 0.731 4.413 5.608 0.236 45.540
2010 2011 34.265 0.760 3.201 5.583 0.071 43.880
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Tax Rates for Jurisdictions Overlapping with the City
Levy Budget City of Harvey USD No. 373

Year Year Newton County (Newton) State Other Total
2014 2015 52.096 36.238 60.478 1.500 0.257 150.569

2013 2014 51.114 35.586 65.005 1.500 0.254 153.459
2012 2013 45.849 31.449 65.407 1.500 0.255 144.460
2011 2012 45.540 31.316 65.098 1.500 0.257 143.711
2010 2011 43.880 28.771 64.722 1.500 0.266 139.139
Source: Harvey County Clerk’s Office.
Tax Levies and Collections
The City may levy taxes in accordance with the requirements of its adopted budget and within the
restrictions of Kansas statute. The County Clerk determines property tax levies based on the assessed
valuation provided by the appraiser and spreads the levies on the tax rolls.
Ratio
Current % Current Prior Collection
Levy Year/ Total Tax Tax Tax Years Tax Total Tax Versus
Budget Year Levy Collections Collected Collected Collections Levy
2014/15* $6,218,542 $2,954,524 47.5% $ 0 $2,954,524 47.5%

2013/14 6,010,719 5,513,304 91.7 146,337 5,659,641 94.2
2012/13 5,414,555 5,292,695 97.7 169,836 5,462,531 100.9
2011/12 5,173,889 4,998,579 96.6 82,269 5,080,848 98.2
2010/11 4,845,866 4,678,168 96.5 173,072 4,851,240 100.1
* Collections through January 20, 2015.
Source: Harvey County.
Special Assessment Collections
Ratio
2014/15* $1,232,753 $ 450,928 36.6% $ 0 $ 450,928 36.6%

2013/14 1,260,600 1,093,610 86.8 11,890 1,105,500 87.7
2012/13 1,215,878 1,153,144 94.8 85,035 1,238,179 101.8
2011/12 1,227,498 1,086,632 88.5 149,234 1,235,866 100.7
2010/11 1,285,592 1,009,545 85.5 178,384 1,277,929 99.4
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Sales Tax Collections
Harvey County levies a sales and use tax within the County limits, of which 1.00% is shared among
Harvey County and the various cities located therein, including the City. The sales tax is paid on
purchases made within Harvey County, and the use tax is paid on tangible personal property purchased
from other states which is used, stored or consumed in the State of Kansas where no sales tax was paid.
In 2006, Harvey County voters approved an additional 1.00% sales and use tax for the purpose of
providing property tax relief to citizens.
Each of the above sales and use taxes are distributed to each entity pursuant to a formula based on each
entity’s population. The following table sets forth the City’s sales and use tax collections in the years
indicated:
Amount
Year Received
2015* $2,822,538
2014 5,084,012
2013 4,846,037
2012 4,746,534
2011 4,608,436
2010 4,351,084
2009 4,437,602
2008 4,689,626
2007 4,298,112
2006 1,930,477
* 2015 information is as of July 31, 2015.
FUNDS ON HAND
As of July 31, 2015
Fund Cash and Investments
General Fund $ 4,987,200

Special Revenue Funds 849,957
Debt Service Fund 3,276,867
Enterprise Funds 9,816,409
Internal Service Funds 2,868,179
Total $21,798,612
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INVESTMENTS
The City has a formal investment policy, adopted by the City Commission. The governing body of the
City has authority to invest all operating funds of the City pursuant to K.S.A. 12-1675, a State law which
governs the investment of public funds by governmental subdivisions, units, and entities. As of July 31,
2015, the City has cash and investments totaling $21,798,612.
The City may invest its funds pursuant to K.S.A. 12-1675, a state law which governs the investment of
public funds by governmental subdivisions, units, and entities. K.S.A. 12-1675 authorizes the City to
invest in the following:
1) its own temporary notes or no-fund warrants;

2) time deposit, open accounts, certificates of deposit or time certificates of deposit with maturities
of not more than two years in banks, savings and loan associations and savings banks;
3) repurchase agreements with banks, savings and loan associations and savings banks;
4) United States treasury bills or notes with maturities not exceeding two years;
5) in the municipal investment pool fund established in K.S.A. 1997 Supp. 12-1677a;
6) in the investments authorized and in accordance with the conditions prescribed in K.S.A. 1997
Supp. 12-1677b; or
7) in multiple municipal client investment pools managed by trust departments of commercial banks
which have offices located in the City or with trust companies incorporated under the laws of this
state which have contracted to provide trust services under the provisions of K.S.A. 9-2107.
The local banks have a right of first refusal under the statute for the investments described in (2) or (3)
above, and the City is authorized to make the other investments described above only if the local banks
have refused. The municipal investment pool described in paragraph (5) above and in part (b) of the
following paragraph is statutorily limited to those investments permitted for state monies under Kansas
law. Permissible investments include:
1) direct obligations of, or obligations that are insured as to principal and interest by the United
States of America or any agency thereof and obligations and securities of United States sponsored
enterprises which under federal law may be accepted as security for public funds, provided that,
after July 1, 1996 no investment may be made in mortgage-backed securities of such enterprises
and of the Government National Mortgage Association (any investments existing before July 1,
1996 will be permitted to mature);
2) state agency bonds and projects; or commercial paper that does not exceed 270 days to maturity
and which has received one of the two highest commercial paper credit ratings by a nationally
recognized rating firm; or
3) repurchase agreements with a Kansas bank or a primary government securities dealer which
reports to the market reports division of the Federal Reserve Bank of New York for direct
obligations of, or obligations that are insured as to principal and interest by the United States
government or any agency thereof and securities of United States government sponsored
enterprises which under federal law may be accepted as security for public funds. The municipal
investment pool and all of state monies for investment, on a competitive basis, to qualified banks.
Any such investments in qualified banks are required to be secured by a pledge of securities as
required by K.S.A. 1995 Supp. 75-4218.
The City (and the accounting staff of the City) has the responsibility for making and monitoring the
investments made under these statutes and City ordinances and resolutions. For additional information
regarding the City’s financial position, see Appendix IV of this Official Statement.
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GENERAL INFORMATION CONCERNING THE CITY
The City is the Harvey County seat, is located approximately 25 miles north of the City of Wichita,
Kansas, and encompasses approximately 12.6 square miles (8,064 acres).
Population
The City’s population trend is shown below.

Percent
Population Change
2014 U.S. Census Estimate 19,120 (0.1)%
2010 U.S. Census 19,132 11.3
2000 U.S. Census 17,190 2.9
1990 U.S. Census 16,700 2.3
1980 U.S. Census 16,332 --
Source: United States Census Bureau, http://www.census.gov/.
The City’s population by age group for the past two years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2014/15 5,082 3,978 6,901 3,171

2013/14 5,092 4,064 6,999 3,222
Source: Claritas, Inc.
Transportation
The City is transversed by both US Highway 50 and Interstate 135. The Newton City/County Airport,
which is owned jointly by the County and the City, is located within the City and is managed by the City.
The airport has a 7,000-foot runway to accommodate commercial jets and a 3,500-foot crosswind runway
to handle private and corporate aircraft. The County and the City will be constructing a new community
hangar facility at the Newton City/County Airport, along with apron and taxi-way improvements, which
are being financed with proceeds of the Bonds. Wichita Mid-Continent Airport, located in the nearby
City of Wichita, offers commuter and cargo flights to County residents. Rail service is provided to the
County by the Burlington Northern Santa Fe Railroad and the Union Pacific Railroad.
- 24 -
Major Employers
Approximate
Number
Employer Product/Service of Employees
Unified School District No. 373
(Newton) Education 847
Newton Medical Center Medical Services 560
Norcraft Companies Wood Cabinets/Manufacturing 400
BNSF Railway Company Railroad 380
Walmart Retail Store 275
Prairie View Hospital Hospital 258
City of Newton Government 225
Dillon’s Stores Grocery Store 213
Harvey County Government 182
Asbury Park Retirement Home 180
Source: This does not purport to be a comprehensive list and is based on a September 2015 best efforts telephone
survey of individual employers. Some employers do not respond to inquiries.
Labor Force Data

Annual Average July
2011 2012 2013 2014 2015
Labor Force:
Harvey County 17,402 17,241 17,123 17,225 17,092
State of Kansas 1,491,258 1,484,016 1,486,764 1,500,353 1,493,222
Unemployment Rate:
Harvey County 6.2% 5.5% 4.9% 4.2% 4.8%
State of Kansas 6.5 5.8 5.3 4.5 5.1
Source: Kansas Labor Information Center, http://www.klic.dol.ks.gov. 2015 data are preliminary.
Retail Sales and Effective Buying Income (EBI)
City of Newton
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2014/15 $216,892 $351,907 $39,507
2013/14 248,481 350,652 38,931
Harvey County
2014/15 $375,508 $683,437 $43,341
2013/14 $379,888 672,060 42,645
2012/13 352,166 596,933 36,361
2011/12 431,927 618,765 39,064
The 2014/15 Median Household EBI for the State of Kansas was $44,803. The 2014/15 Median
Household EBI for the United States was $45,448.
- 25 -
Permits Issued by the City
New Single New Total Value(a)
Family Residential Commercial/Industrial (All Permits)
Year Number Value Number Value
2015 (to 7-31) 11 $1,766,199 21 $ 4,056,481 $ 2,171,680
2014 21 3,844,565 57 27,295,717(b) 31,140,282
2013 16 2,666,944 49 6,767,636 9,434,580
2012 25 4,308,425 68 3,585,811 7,894,236
2011 16 2,374,085 49 2,737,834 5,111,919
2010 20 2,781,044 44 5,045,997 7,827,041
(a) In addition to building permits, the total value includes all other permits issued by the City (i.e. heating,
lighting, plumbing, roof replacement, etc.).
(b) The City issued permits for a $17.2 million wastewater treatment plant and a $5 million manufacturing buiding
at the airport.
Source: City of Newton.
Economic Development
Infrastructure investments, rail, water and sewer, access roads, power lines, highway and interchange
improvements are in place or in progress at the Kansas Logistics Park, which is an industrial park open to
a broad scope of businesses and manufacturers. In addition to the development of the Kansas Logistics
Park, the following projects are underway:
o Approximately $63 million in State and federal funding is being applied to new infrastructure,
public safety, and economic development projects throughout the City;
o Expansion of multiple facilities at the Newton City-County Airport;
o Reconstruction of a runway at the Newton City-County Airport in the amount of approximately
$7.8 million (90% in federal funding, 5% of State funding, and 5% to be split between the City
and Harvey County);
o Demolition and replacement of the Ash Street Bridge;
o Reconstruction of South Kansas Avenue to accommodate expansion at the Newton Medical
Center, the proposed YMCA facility, and additional residential and commercial growth;
o Expansion and construction of several local businesses, including Kansas Electric, Concrete
Vaults Inc., Future Foam, Asbury Park Senior Residential Center, and an additional private
medical office facility on the Newton Medical Center campus; and
o Private investment in the City’s historic Main Street retail and commercial district.
Wastewater Treatment Plant

The City’s largest public works project in recent decades was started in 2014. The upgrade project will
increase wastewater capacity from 3 million gallons a day to 4.4 million gallons per day. Upon
completion in 2015, the City plant will meet the Biological Nutrient Reduction (BNR) requirements for
the discharge of nutrients like nitrogen and phosphorus.
The cost for the project is expected to be approximately $26 million. The City saved approximately
$3 million from previous rate increases to apply to the project. The average City residential customer
uses approximately 600 cubic feet per month, and should expect to see a Plant Upgrade Fee of $21.99 in
2015.
- 26 -
Passenger Rail Support
Passenger rail is at the heart and core of the City. The City is on Amtrak’s transcontinental Southwest
Chief line, the City stop registers a high number of passengers for the State of Kansas. Due to
deterioration of track between the City and the City of Raton, New Mexico, and the reduction in
passenger rail speed from 90 mph to as low as 60 mph in some locales, Amtrak has required the track be
repaired at State/local government expense or risk losing passenger rail service. A coalition of western
Kansas cities was formed, and the City contributed $15,000 to support a successful application for a
$12.5 million Transportation Investment Generating Economic Recovery (TIGER) grant from the United
States Department of Transportation (USDOT). The cost for the needed track repairs is estimated at
$100 million in immediate construction, and $10 million per year for annual maintenance.
Recreation Enhancements
Recreation facilities and amenities were identified as high priority by participating citizens in the 2010
20-year comprehensive plan of the City. The existing facilities of the Newton Recreation Commission
were renovated in 2014, in part, with a five-year no-interest loan from the City.
Additionally, a 40,000 square foot Wichita Metro YMCA is planned for construction to be located on
ground donated near the footprint of the Newton Medical Center. The City Commission authorized the
issuance of $16 million in Industrial Revenue Bonds to finance the construction of the new facility, and
the community generated $5 million in private donations. The community gains the benefit of the project,
yet the City carries no liability or cost associated with the IRBs, even in the case of default. Construction
is in progress.
ABI Chemicals Builds at the City’s Municipal Airport
ABI Group of Companies (“ABI”) completed a 20,000 square-foot manufacturing plant and hangar at the
Newton City/County Airport in 2014. The project was a $6.2 million project, with ABI Chemicals
investing about $2.2 million in capital equipment and other upgrades.
The new facility houses ABI's chemical milling capability and work on a next-generation aerospace
coating process. The new facility initially has employed approximately eighteen people. Additionally,
the coating product has brought ABI into a new partnership with the National Institute for Aviation
Research at Wichita State University Innovation Campus.
Comprehensive Plan Progress
In 2010, the City introduced a comprehensive plan entitled ReNewton 2030. Pursuant to its vision
statement, between 2010 and 2030, the City will expand its tax base and enhance community amenities
while preserving its richness of character, heritage, and way of life. During the past year, several
community projects have been studied and initiated under the ReNewton plan, including:
o Hiking and biking trails throughout the City and Harvey County;
o Building loft apartments and creating social third spaces on Main Street;
o Renovation and program enhancements to the historic Newton Fox Theater;
o Continued efforts to build mutually beneficial relationships between Bethel College and the
Newton community;
o Community assessment of the need for an off-leash dog park;
o Movement toward additional community recreation facilities; and
o A potential referendum for a new public library facility.
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Financial Institutions
The following full service banks are located in the City*:
Deposits
As of 6-30-13
First Bank of Newton $158,687,000
The Midland National Bank of Newton 120,208,000
Total $278,895,000
In addition, branch offices of Bank of the West, Central National Bank, Community National Bank &
Trust, and The Citizens State Bank are located throughout the City.
* This does not purport to be a comprehensive list.
Source: Federal Deposit Insurance Corporation, http://www2.fdic.gov/idasp/main.asp.
Health Care Facilities

The following is a summary of inpatient health care facilities located in the City:
Facility Location No. of Beds

Newton Medical Center City of Newton 103
Prairie View Hospital City of Newton 60
Source: Kansas Department of Health and Environment, www.kdheks.gov/bhfr/fac_list/.
Education
Public Education
The City is served primarily by Unified School District No. 373 (Newton), which had a 2014/15
enrollment of 3,700 students. (The 2015/16 enrollment figure is not yet available.)
Source: The Kansas State Department of Education; http://svapp15586.ksde.org/k12/k12.aspx
Non-Public Education
City residents are also served by the following private schools:
2014/15*
School Location Grades Enrollment
St. Mary Catholic School City of Newton K-8 149
* 2015/16 enrollment figures are not yet available.
Post-Secondary Education
Post-secondary education is available to City residents at Bethel College, a private four-year school
located just north of the City. In addition, there are twelve colleges and universities in the area including
Wichita State University, University of Kansas School of Medicine, Friends University, and Newman
University.
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GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
The City is a municipal corporation, is a city of the first class under Kansas law, and has a Commissioner-
Manager form of government. Three of the five Commissioners are elected every two years, two of
which serve a four-year term and one of which serves a two-year term. The City Commission conducts
all legislative functions for the City, establishes general policies, and promotes the general welfare of the
City. The City Commission also appoints the City Manager and City Attorney. The City Manager is
responsible for the employment and supervision of all other staff, and carries out the provision of City
services according to the City Commission’s adopted policies and budget.
The following individuals comprise the current City Council:

Expiration of Term
Glen L. Davis Mayor November 2017
Barth Hague Vice Mayor November 2019
Leroy Koehn Commissioner November 2017
David A. Hygaard Commissioner November 2019
Kathy Valentine Commissioner November 2017
Key Appointed Officials
Employed Since
Randall K. Riggs City Manager March 1, 2008

Lunda Asmani Assistant City Manager for Budget and Finance May 17, 2010
Lisa Marshall Assistant Director of Finance December 17, 2007
Denise Duerksen City Clerk December 2, 2007
The daily administration of City operations is the responsibility of the appointed City Manager, who has
been with the City since March 2008. Previously, Mr. Riggs was the City Manager of the City of
Chanute, Kansas.
Mr. Lunda Asmani, Assistant City Manager for Budget and Finance, is responsible for the City’s
financial services. Previously, Mr. Asmani worked for Sedgwick County, Kansas.
The City has 205 regular full-time and 20 seasonal full- and part-time employees.
Municipal Utilities and Services
The City owns and operates its own water and sewer utility systems. Natural gas is supplied by Kansas
Gas Service, electricity is supplied by Westar Energy, telephone service is supplied by SBC, and cable
television is supplied by Cox Communication.
The City has 37 sworn police officers and 48 firefighters/emergency medical technicians. The City also
operates an emergency ambulance service for its residents and surrounding areas.
Labor Contracts
The City has no bargaining units.
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Recreational and Cultural Activities
Recreational and cultural opportunities available to residents throughout the City include sporting events,
movie theaters, parks, swimming pools, golf courses, tennis courts, a community theater, a symphony,
and museums. In addition, approximately 46 churches serve the community. Annual activities for the
community include the Bethel Fall Fest, the Harvey County Fair, and the Sand Creek Folk Art Festival.
Employee Pensions
The City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police
and Firemen’s Retirement System (KP&F). Both are cost-sharing multiple-employer defined benefit
pension plans as provided by K.S.A. 74-4901, et seq. KPERS and KP&F provide retirement benefits, life
insurance, disability income benefits and death benefits. Kansas law establishes and amends benefit
provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained by writing to KPERS
(611 S. Kansas, Topeka, KS 66603-3803) or by calling 1-888-275-5737.
As of December 31, 2014, KPERS serves over 295,000 members and approximately 1,500 participating
employers, including the State, school districts, counties, cities, public libraries, hospitals and other
governmental units. KPERS administers the following three statewide, defined benefit retirement plans
for public employees:
(a) Kansas Public Employees Retirement System;

(b) Kansas Police and Firemen’s Retirement System; and
(c) Kansas Retirement System for Judges.
These three plans are separate and distinct with different membership groups, actuarial assumptions,
experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is
the largest of the three plans, accounting for more than 95% of the members. The Kansas Public
Employees Retirement System is further divided into two separate groups, as follows:
(a) State/School Group - includes members employed by the State, school districts,
community colleges, vocational-technical schools and educational cooperatives. The State of Kansas
makes all employer contributions for this group, 85% of which comes from the State General Fund. State
legislation enacted in 2003 made certain pre-1962 Board employees (which are part of a small group of
pre-1962 Board and University of Kansas Hospital Authority employees known as the “TIAA Group”),
special members of the State/School Group.
(b) Local Group - all participating cities, counties, library boards, water districts and political
subdivisions are included in this group. Local employers contribute at a different rate than the
State/School Group rate. State legislation enacted in 2003 made certain pre-1962 employees of the
University of Kansas Hospital Authority (which are a part of a small group of pre-1962 Board and
University of Kansas Hospital Authority employees known as the “TIAA Group”), special members of
the Local Group.
KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received
IRS determination letters attesting to the plan’s qualified status dated October 14, 1999 and March 5,
2001. KPERS is also a “contributory” defined benefit plan, meaning that employees make contributions
to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer
contributions. The City's employees currently annually contribute 6% of their gross salary to the plan if
such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009) or KPERS Tier
2 members (covered employment on or after July 1, 2009).
In 2012, the Legislature created a new KPERS Tier 3 category (covered employment on or after
January 1, 2015) based on a cash balance plan. Each Tier 3 member shall have a retirement annuity
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account to which such participant shall contribute 6% of their gross salary to the plan. The employer or
State contribution varies based on longevity of participant service: (a) 3% for less than 5 years; (b) 4%
for at least 5 years but less than 12 years; (c) 5% for at least 12 years but less than 24 years; and (d) 6%
for 24 or more years. Such account shall receive an interest credit of 5.25% per annum, and under certain
circumstances, shall receive additional interest credits. Subject to certain exceptions, a Tier 3 member,
upon retirement, shall receive a single life annuity benefit.
Also in 2012, the Legislature adopted a number of other changes to KPERS including: (a) increasing the
statutory maximum employer contribution annual increase from 0.6% per year (status quo) to 0.9% per
year in 2014, 1.0% in 2015, 1.1% in 2016 and 1.2% per year in 2017 and thereafter, (b) eliminating
COLA adjustments for Tier 2 member with corresponding benefit adjustments (effective January 1,
2014), (c) providing additional flexibility for alternative investments for the plan, and (d) providing
additional contribution flexibility for Tier 1 members with corresponding benefit adjustments effective
January 1, 2014, subject to approval by the IRS (the IRS issued a private letter ruling stating the election
granted to Tier 1 members was impermissible; therefore, employee contributions for Tier 1 members
increased to 5% of compensation effective January 1, 2014, and to 6% of compensation effective January
1, 2015).
In 2015, the Legislature authorized, subject to certain conditions, the issuance of revenue bonds in an
amount not to exceed $1 billion (plus associated costs of issuance) (the “Revenue Bonds”), the proceeds
of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The
repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an
obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be
pledged to the repayment of the Revenue Bonds. Additionally, the statutory maximum annual increases
to employer contributions for State/School Group and certain employees of the State department of
corrections were modified as follows: (a) if the Revenue Bonds are issued and finance capitalized
interest, an increase of 1.1% in 2015 and 1.2% in 2016 and thereafter; or (b) if such Revenue Bonds are
not issued to finance capitalized interest, such rate of contribution shall be 10.91% in 2015 and 10.81% in
2016. The Revenue Bonds in the aggregate principal amount of $1,005,180,000 were issued on August
20, 2015, to finance a portion of the unfunded actuarial pension liability and costs of issuance, but did not
finance capitalized interest.
The City's contribution varies from year to year based upon the annual actuarial valuation and appraisal
made by KPERS, subject to legislative caps on percentage increases. The City's contribution is 9.48% of
the employee’s gross salary for calendar year 2015. The rate is scheduled to change to 9.18% beginning
January 1, 2016. In addition, the City contributes 1% of the employee’s gross salary for Death and
Disability Insurance for covered employees for the period beginning July 1, 2015, through June 30, 2016.
According to the Valuation Report as of December 31, 2014 (the “2014 Valuation Report”) the KPERS
Local Group, of which the City is a member, carried an unfunded accrued actuarial liability (“UAAL”) of
$1.487 billion at the end of 2014. The 2014 Valuation Report includes additional information relating to
the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS
Local Group, and is available on the KPERS website at kpers.org/about/reports.html. The City has no
means to independently verify any of the information set forth on the KPERS website or in the 2014
Valuation Report, which is the most recent financial and actuarial information available on the KPERS
website relating to the funded status of the KPERS Local Group. The 2014 Valuation Report sets the
employer contribution rate for the period beginning January 1, 2017, for the KPERS Local Group, and
KPERS’ actuaries identified that an employer contribution rate of 8.46% of covered payroll would be
necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by 2033,
the end of the actuarial period. The statutory contribution rate of employers currently equals the 2014
Valuation Report’s actuarial rate. As a result, members of the Local Group are adequately funding their
projected actuarial liabilities and the UAAL can be expected to diminish over time. KPERS’ actuaries
project the required employer contribution rate to increase by the maximum statutorily allowed rate,
which is currently 0.9% in fiscal year 2014, then 1.0% in fiscal year 2015, 1.1% in fiscal year 2016 and
1.2% in fiscal year 2017 and thereafter.
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The City has established membership in the Kansas Police and Fire Retirement System (“KP&F”) for its
police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions
are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases.
According to the 2014 Valuation Report, KP&F carried an UAAL of $726 million at the end of 2014.
The KP&F employer rate established for the City for 2014 was 19.92% for police and firefighters and
19.75% for emergency medical technicians. Employers participating in KP&F also make contributions to
amortize the liability for past service costs, if any, which is determined separately for each participating
employer. The City’s contributions are equal to the required contributions for each year.
The City’s contributions for the past five years are as follows:
KPERS KP&F
2014 $525,052 $996,198

2013 503,841 838,407
2012 445,030 772,158
2011 408,267 669,651
2010 360,827 563,465
In 2015, the City is required to implement GASB 68 – Accounting and Financial Reporting for Pensions.
According to KPERS’ Schedule of Employer and Nonemployer Allocations and Schedules of Pension
Amounts by Employer and Nonemployer for the fiscal years ended June 30, 2014 and 2013 (the “GASB
68 Report”), the net pension liability allocated to the City as of June 30, 2014, is $11,652,675. The
GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The City has no
means to independently verify any of the information set forth on the KPERS website or in the GASB 68
Report. It is important to note that under existing State law, the City has no legal obligation for the
UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes
only.
For more information regarding the liability of the City with respect to its employees, please reference
“Note 5 – Defined Benefit Pension Plans” of the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2014, an excerpt of which is included as Appendix VI of this Official
Statement.
Sources: City’s Comprehensive Annual Financial Reports.
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Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which
addresses how state and local governments must account for and report their obligations related to post-
employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or
“OPEB”).
Terminated employees may remain on the City’s health insurance plan for up to 18 months if they pay the
monthly premiums. This benefit is required under the Federal Consolidated Omnibus Budget
Reconciliation Act (the “C.O.B.R.A. Law”). Therefore, the City’s only liability under GASB 45 would
come from the implicit rate subsidy.
The benefits described above are the City’s only OPEB. The City must report an annual OPEB cost
based on actuarially determined amounts that, if paid on an ongoing basis, will provide sufficient
resources to pay these benefits as they come due. The City may establish its OPEB liability to zero as of
the beginning of the initial year of implementation; however, the unfunded actuarial liability is required to
be amortized over future periods.
FINANCIAL INFORMATION CONCERNING THE CITY
Financial Reports
The City has established a uniform system of accounting maintained in accordance with the laws of the
State of Kansas and generally accepted accounting principles. The accounts are maintained on the
modified accrual basis for all budgetary funds and on the accrual basis for all other funds.
Budgeting Procedures
Applicable Kansas Statutes require that budgets be legally adopted for all funds (including debt service
and enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the
modified accrual basis of accounting. This means that commitments such as purchase orders and
contracts in addition to disbursements and accounts payable are recorded as expenditures.
The statutes provide that the budget for the succeeding calendar year must be prepared on or before
August 1 and published on or before August 5 of each year. A public hearing is required to be held on or
before August 15, with the final budget being adopted on or before August 25 of each year. Original
appropriations may be modified by supplemental appropriations and transfers among budget categories.
The governing body must approve all significant budget changes. If there is cash in a fund in excess of
budget requirements, it cannot be spent during the year, but must be carried forward as income for the
ensuing year, unless the budget is amended. Kansas statute prohibits municipalities from creating
indebtedness unless there is money on hand in the proper fund, unencumbered by previous commitments,
with which to pay the indebtedness required. The executor of a contract, or the issuing of a purchase
order, automatically encumbers the money in the fund for the payments of the amount represented by the
commitment. It makes no difference that the amount may not have to be paid until more moneys are in
the fund or until the following year. An exception to this cash basis law is the issuance of debt in the
form of bonds, notes, or warrants pursuant to statutory or constitutional authority. In the event debt is
issued, funds need not be on hand for future payments.
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General Fund Budget Summary
2014 Budget 2014 Actual 2015 Budget
Fund balance as of January 1 $ 3,310,587 $ 3,054,915 $ 3,885,993
Revenues:
Taxes $12,218,058 $13,011,913 $12,665,546
Intergovernmental 32,000 564,338 32,000
Licenses and permits 173,350 174,173 178,200
Charges for services 1,516,750 1,461,940 1,506,750
Fines, forfeitures and penalties 530,350 592,416 530,350
Use of money 7,800 16,731 10,300
Other revenue 444,075 45,121 451,575
Transfers in 2,142,142 2,147,555 2,406,247
Total revenues $17,064,525 $18,014,187 $17,780,968
Expenditures:
Personnel services $12,194,136 $11,168,868 $12,582,559
Contractual services 1,781,097 1,922,110 1,842,757
Commodities and supplies 688,369 906,163 821,689
Vehicle operating 527,563 489,866 535,312
Capital outlay 70,356 114,800 70,336
Transfers out 2,432,231 2,581,302 2,887,915
Total expenditures $17,693,752 $17,183,109 $18,740,568
Fund balance as of December 31 $ 2,681,360 $ 3,885,993 $ 2,926,393
Sources: City’s Comprehensive Annual Financial Reports and 2015 Budget.
Major General Fund Revenue Sources
Revenue 2010 2011 2012 2013 2014
Taxes $10,460,916 $10,802,007 $11,133,386 $11,300,398 $13,011,913

Transfers In 1,498,943 1,276,882 2,029,983 1,759,729 2,147,555
Charges for Services 1,664,001 1,491,887 1,469,470 1,489,779 1,461,940
Fines, Forfeitures,
and Penalties 491,690 545,865 536,584 534,836 592,416
Intergovernmental 425,875 424,604 32,620 411,911 564,338
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APPENDIX I
PROPOSED FORMS OF BOND COUNSEL OPINIONS
GILMORE & BELL, P.C.

Attorneys at Law
100 N. Main Suite 800
Wichita, Kansas 67202
November 10, 2015
Governing Body [Purchaser]

City of Newton, Kansas [City, State]
Re: $5,125,000* General Obligation Bonds, Series 2015-A, of the City of Newton,
Kansas, Dated November 10, 2015
We have acted as Bond Counsel in connection with the issuance by the City of Newton, Kansas
(the “Issuer”), of the above-captioned bonds (the “Bonds”). In this capacity, we have examined the law
and the certified proceedings, certifications and other documents that we deem necessary to render this
opinion. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
resolution adopted by the governing body of the Issuer authorizing the issuance and prescribing the
details of the Bonds.
Regarding questions of fact material to our opinion, we have relied on the certified proceedings
and other certifications of public officials and others furnished to us without undertaking to verify them
by independent investigation.
Based upon the foregoing, we are of the opinion, under existing law, as follows:
1. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid
and legally binding general obligations of the Issuer.
2. The Bonds are payable as to both principal and interest from ad valorem taxes which may
be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal,
within the territorial limits of the Issuer. The Issuer is required by law to include in its annual tax levy the
principal and interest coming due on the Bonds to the extent that necessary funds are not provided from
other sources.
3. The interest on the Bonds [(including any original issue discount properly allocable to an
owner of a Bond)] is: (a) excludable from gross income for federal income tax purposes; and (b) not an
item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and
corporations, but is taken into account in determining adjusted current earnings for the purpose of
computing the alternative minimum tax imposed on certain corporations. The opinions set forth in this
paragraph are subject to the condition that the Issuer complies with all requirements of the Internal
Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issuance of the
Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal
income tax purposes. The Issuer has covenanted to comply with all of these requirements. Failure to
comply with certain of these requirements may cause interest on the Bonds to be included in gross income
for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds are “qualified
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tax-exempt obligations” within the meaning of Code § 265(b)(3). We express no opinion regarding other
federal tax consequences arising with respect to the Bonds.
4. The interest on the Bonds is exempt from income taxation by the State of Kansas.
We express no opinion regarding the accuracy, completeness or sufficiency of the Official

Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the
Official Statement). Further, we express no opinion regarding tax consequences arising with respect to
the Bonds other than as expressly set forth in this opinion.
The rights of the owners of the Bonds and the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
generally and by equitable principles, whether considered at law or in equity.
This opinion is given as of its date, and we assume no obligation to revise or supplement this
opinion to reflect any facts or circumstances that may come to our attention or any changes in law that
may occur after the date of this opinion.
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Attorneys at Law
November 10, 2015
Governing Body [[Purchaser]

City of Newton, Kansas [City, State]]
Re: $1,155,000* Taxable General Obligation Bonds, Series 2015-B, of the City of
Newton, Kansas, Dated November 10, 2015
other sources.
We express no opinion regarding federal tax consequences arising with respect to the Bonds.

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APPENDIX II
SUMMARY OF FINANCING DOCUMENTS
The following is a summary of certain provisions contained in the Bond Resolutions authorizing the
issuance of each series of the Bonds and the Disclosure Undertaking. This summary does not purport to be
complete and is qualified by reference to the entirety of the foregoing documents.
THE BOND RESOLUTION
DEFINITIONS
In addition to words and terms defined elsewhere in this Official Statement, the following words and terms
as used herein shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words
importing the singular number shall include the plural and vice versa, and words importing persons shall include
firms, associations and corporations, including public bodies, as well as natural persons.
“Act” means the Constitution, particularly Article 12, § 5 thereof, and statutes of the State of Kansas
including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 12-685 et seq., K.S.A. 12,1613h, K.S.A. 12-1736 et seq.,
K.S.A. 13-1024a, as amended by Charter Ordinance Nos. 35 and 47 of the City, and K.S.A. 65-163d et seq., as
amended and supplemented.
[ “AGM” means Assured Guaranty Municipal Corp., a New York domiciled financial guaranty insurance
company, or any successor thereto.]
“Authorized Denomination” means $5,000 or any integral multiples thereof.
[ “BAM” means Build America Mutual Assurance Company., a New York domiciled mutual insurance
corporation, or any successor thereto.]
“Beneficial Owner” of the Bonds includes any Owner of the Bonds and any other Person who, directly or
indirectly has the investment power with respect to such Bonds.
“Bond and Interest Fund” means the Bond and Interest Fund of the Issuer for its general obligation
bonds.
“Bond Counsel” means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose
expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally
recognized and acceptable to the Issuer.
[ “Bond Insurance Policy” means the municipal bond insurance policy issued by the Bond Insurer
concurrently with the delivery of the Bonds guaranteeing the scheduled payment when due of the principal of and
interest on the Bonds.]
[ “Bond Insurer” means [AGM] [BAM] with respect to the Bonds.]
“Bond Payment Date” means any date on which principal of or interest on any Bond is payable.
“Bond Register” means the books for the registration, transfer and exchange of Bonds kept at the office of
the Bond Registrar.
“Bond Registrar” means the State Treasurer, and its successors and assigns.
“Bond Resolution” means collectively the Series 2015-A Bond Resolution and the Series 2015-B Bond
Resolution.
“Bonds” means collectively the Series 2015-A Bonds and the Series 2015-B Bonds, authorized and issued
by the Issuer pursuant to the Bond Resolution.
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“Business Day” means a day other than a Saturday, Sunday or any day designated as a holiday by the
Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the
normal course of its operations to be open to the public for conduct of its operations.
“Cede & Co.” means Cede & Co., as nominee of DTC and any successor nominee of DTC with respect to
the Bonds.
“City” means the City of Newton, Kansas.
“Clerk” means the duly appointed and acting Clerk of the Issuer or, in the Clerk's absence, the duly
appointed Deputy, Assistant or Acting Clerk of the Issuer.
“Code” means the Internal Revenue Code of 1986, as amended, and the applicable regulations
promulgated thereunder of the United States Department of the Treasury.
“Compliance Account” means collectively the Compliance Account 2015-A and the Compliance Account
2015-B.
“Compliance Account 2015-A” means the account by that name created by the Series 2015-A Bond
Resolution.
“Compliance Account 2015-B” means the account by that name created by the Series 2015-B Bond
Resolution.
“Consulting Engineer” means an independent engineer or engineering firm, or architect or architectural

firm, having a favorable reputation for skill and experience in the construction, financing and operation of public
facilities, at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Consulting
Engineer by the Bond Resolution.
“Costs of Issuance” means all costs of issuing the Bonds, including but not limited to all publication,
printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal
fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with
the Code, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses
incurred in obtaining municipal bond insurance on the Bonds.
“Costs of Issuance Account” means collectively the Costs of Issuance Account 2015-A and the Costs of
Issuance Account 2015-B.
“Costs of Issuance Account-2015-A” means the Costs of Issuance Account 2015-A created by the Series
2015-A Bond Resolution.
“Costs of Issuance Account-2015-B” means the Costs of Issuance Account 2015-B created by the Series
2015-B Bond Resolution.
“Dated Date” means November 10, 2015.
“Debt Service Account” means collectively the Debt Service Account 2015-A and Debt Service Account
2015-B.
“Debt Service Account 2015-A” means the account by that name created within the Bond and Interest
Fund by the Series 2015-A Bond Resolution.
“Debt Service Account 2015-B” means the account by that name created within the Bond and Interest
Fund by the Series 2015-B Bond Resolution.
“Debt Service Requirements” means the aggregate principal payments (whether at maturity or pursuant to
scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of
time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest
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shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is
payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying
Agent or other commercial bank or trust company located in the State and having full trust powers.
“Defaulted Interest” means interest on any Bond which is payable but not paid on any Interest Payment
Date.
“Defeasance Obligations” means any of the following obligations:
(a) United States Government Obligations that are not subject to redemption in advance of their
maturity dates; or
[ (b) evidences of ownership of proportionate interests in future interest and principal payments on
United States Government Obligations held by a bank or trust company as custodian, under which the owner of the
investment is the real party in interest and has the right to proceed directly and individually against the obligor and
the underlying United States Government Obligations are not available to any person claiming through the custodian
or to whom the custodian may be obligated; or]
[(b)][(c)] obligations of any state or political subdivision of any state, the interest on which is
excluded from gross income for federal income tax purposes and which meet the following conditions:
(1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for
such obligations has been given irrevocable instructions concerning their calling and redemption and the
issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such
instructions;
(2) the obligations are secured by cash or United States Government Obligations that may be
applied only to principal of, premium, if any, and interest payments on such obligations;
(3) such cash and the principal of and interest on such United States Government Obligations
(plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations;
(4) such cash and United States Government Obligations serving as security for the
obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust;
(5) such cash and United States Government Obligations are not available to satisfy any
other claims, including those against the trustee or escrow agent; and
(6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no
lower than the rating category then assigned by that Rating Agency to United States Government
Obligations.]
“Derivative” means any investment instrument whose market price is derived from the fluctuating value of
an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage
obligations.
“Director of Finance” means the duly appointed and acting Assistant City Manager for Budget and
Finance of the Issuer or, in the Assistant City Manager’s absence, the duly appointed Deputy or Acting Assistant
City Manager for Budget and Finance of the Issuer.
“Disclosure Undertaking” means the Issuer’s Omnibus Continuing Disclosure Undertaking, as may be
amended and supplemented, relating to certain obligations contained in the SEC Rule.
“DTC” means The Depository Trust Company, New York, New York.
II-3
“Event of Default” means each of the following occurrences or events:
(a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be
made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or
otherwise;
(b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall
become due; or
(c) The Issuer shall default in the due and punctual performance of any other of the covenants,
conditions, agreements and provisions contained in the Bonds or in the Bond Resolution (other than the covenants
relating to continuing disclosure contained in the Bond Resolution and the Disclosure Undertaking) on the part of
the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such
default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then
Outstanding.
“Federal Tax Certificate” means the Issuer's Federal Tax Certificate for the Series 2015-A Bonds, dated
as of the Issue Date, as the same may be amended or supplemented in accordance with the provisions thereof.
“Financeable Costs” means the amount of expenditure for an Improvement which has been duly
authorized by action of the governing body of the Issuer to be financed by general obligation bonds, less: (a) the
amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and
available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid
by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under
State or federal law.
“Fiscal Year” means the twelve month period ending on December 31.
“Funds and Accounts” means funds and accounts created by or referred to in the Bond Resolution.
“Improvement Fund” means collectively the Improvement Fund 2015-A and Improvement Fund 2015-B.
“Improvement Fund-2015-A” means the fund by that name created in the Series 2015-A Bond
Resolution.
“Improvement Fund-2015-B” means the fund by that name created in the Series 2015-B Bond
Resolution.
“Improvements” means the improvements referred to in the Bond Resolution and any Substitute
Improvements.
“Independent Accountant” means an independent certified public accountant or firm of independent

certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on
the Independent Accountant by the Bond Resolution.
[ “Insurer's Fiscal Agent” means the agent designated by the Bond Insurer pursuant to the Bond Insurance
Policy.]
“Interest Payment Date(s)” means the Stated Maturity of an installment of interest on any Bond which
shall be March 1 and September 1 of each year, commencing September 1, 2016.
“Issue Date” means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the
Purchase Price.
“Issuer” means the City and any successors or assigns.
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“Maturity” when used with respect to any Bond means the date on which the principal of such Bond
becomes due and payable as therein and in the Bond Resolution provided, whether at the Stated Maturity thereof or
call for redemption or otherwise.
“Mayor” means the duly elected and acting Mayor of the Issuer, or in the Mayor's absence, the duly
appointed and/or elected Vice Mayor or Acting Mayor of the Issuer.
“Moody's” means Moody's Investors Service, a corporation organized and existing under the laws of the
State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no
longer perform the functions of a securities rating agency, “Moody's” shall be deemed to refer to any other
nationally recognized securities rating agency designated by the Issuer [with notice to the Bond Insurer].
“Official Statement” means the Issuer’s Official Statement relating to the Bonds.
“Outstanding” means, when used with reference to the Bonds, as of a particular date of determination, all
Bonds theretofore, authenticated and delivered, except the following Bonds:
(a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation;
(b) Bonds deemed to be paid in accordance with the provisions of the Bond Resolution; [and]
(c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered
hereunder[.][; and
[ (d) Bonds, the principal or interest of which has been paid by the Bond Insurer.]
“Owner” when used with respect to any Bond means the Person in whose name such Bond is registered on
the Bond Register. Whenever consent of the Owners is required pursuant to the terms of the Bond Resolution, and
the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the
Beneficial Owner of the Bonds.
“Participants” means those financial institutions for whom the Securities Depository effects book-entry
transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at
the time of such reference.
“Paying Agent” means the State Treasurer, and any successors and assigns.
“Permitted Investments” shall mean the investments hereinafter described, provided, however, no
moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments
thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c)
direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued
pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust
companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit
Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage
association, federal home loan banks, federal home loan mortgage corporation or government national mortgage
association; (g) repurchase agreements for securities described in (c) or (f); (h) investment agreements or other
obligations of a financial institution the obligations of which at the time of investment are rated in either of the three
highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market
fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); (j) receipts evidencing
ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations
issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the
municipality issuing the same; or (l) bonds of any municipality of the State as defined in K.S.A. 10-1101 which have
been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by
deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f)[; or (m) other investment
obligations authorized by the laws of the State and approved in writing by the Bond Insurer], all as may be further
restricted or modified by amendments to applicable State law.
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“Person” means any natural person, corporation, partnership, joint venture, association, firm, joint-stock
company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other
public body.
“Purchaser” means collectively the financial institution or investment banking firm that is the original
purchaser of each or either series of the Bonds.
“Rating Agency” means any company, agency or entity that provides, pursuant to request of the Issuer,
financial ratings for the Bonds.
“Record Dates” for the interest payable on any Interest Payment Date means the fifteenth day (whether or
not a Business Day) of the calendar month next preceding such Interest Payment Date.
“Redemption Date” means, when used with respect to any Bond to be redeemed, the date fixed for the
redemption of such Bond pursuant to the terms of the Bond Resolution.
“Redemption Price” means, when used with respect to any Bond to be redeemed, the price at which such
Bond is to be redeemed pursuant to the terms of the Bond Resolution, including the applicable redemption premium,
if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date.
“Replacement Bonds” means Bonds issued to the Beneficial Owners of the Bonds in accordance with the
Bond Resolution.
“SEC Rule” means Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934.
“Securities Depository” means, initially, DTC, and its successors and assigns.
“Series 2015-A Bonds” means the Issuer's General Obligation Bonds, Series 2015-A, authorized and
issued by the Issuer pursuant to the Series 2015-A Bond Resolution.
“Series 2015-B Bonds” means the Issuer's Taxable General Obligation Bonds, Series 2015-B, authorized
and issued by the Issuer pursuant to the Series 2015-B Bond Resolution.
“Series 2015-A Bond Resolution” means collectively the ordinance and resolution adopted by the
governing body of the Issuer authorizing the issuance of the Series 2015-A Bonds, as amended from time to time.
“Series 2015-B Bond Resolution” means collectively the ordinance and resolution adopted by the
governing body of the Issuer authorizing the issuance of the Series 2015-B Bonds, as amended from time to time.
“Special Record Date” means the date fixed by the Paying Agent for the payment of Defaulted Interest.
“Standard & Poor's” means Standard & Poor’s Ratings Services, a division of McGraw Hill Financial
Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns,
and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating
agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Issuer [with notice to the Bond Insurer].
“State” means the state of Kansas.
“State Treasurer” means the duly elected Treasurer of the State or, in the Treasurer's absence, the duly
appointed Deputy Treasurer or acting Treasurer of the State.
“Stated Maturity” when used with respect to any Bond or any installment of interest thereon means the
date specified in such Bond and the Bond Resolution as the fixed date on which the principal of such Bond or such
installment of interest is due and payable.
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“Substitute Improvements” means the substitute or additional improvements of the Issuer described in
the Bond Resolution.
[ “Series 2015-A Term Bonds” means the Series 2015-A Bonds scheduled to mature in the year 2036.]
[ “____ Series 2015-A Term Bonds” means the Series 2015-A Bonds scheduled to mature in the year
____.]
[ “2026 Series 2015-A Term Bonds” means the Series 2015-A Bonds scheduled to mature in the year
2026.]
[ “2036 Series 2015-A Term Bonds” means the Series 2015-A Bonds scheduled to mature in the year
2036.]
[ “Term Bonds” means collectively, the 2026 Series 2015-A Term Bonds and the 2036 Series 2015-A Term
Bonds.]
[ “Series 2015-B Term Bonds” means the Series 2015-B Bonds scheduled to mature in the year 2036.]
[ “[____] Series 2015-B Term Bonds” means the 2015-B Bonds scheduled to mature in the year ____.]
[ “2026 Series 2015-B Term Bonds” means the 2015-B Bonds scheduled to mature in the year 2026.]
2015-B
[ “Term Bonds” means collectively, the [____] Series 2015-B Term Bonds and the 2026 Series 2015-B
Term Bonds.]
“Treasurer” means the duly appointed and/or elected Treasurer of the Issuer or, in the Treasurer's absence,
the duly appointed Deputy Treasurer or acting Treasurer of the Issuer.
“United States Government Obligations” means bonds, notes, certificates of indebtedness, treasury bills
or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully
and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences
of a direct ownership interest in future interest or principal payment on obligations issued by the United States of
America (including the interest component of obligations of the Resolution Funding Corporation), or securities
which represent an undivided interest in such obligations, which obligations are rated in the highest rating category
by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the
Issuer.
ESTABLISHMENT OF FUNDS AND ACCOUNTS;

DEPOSIT AND APPLICATION OF BOND PROCEEDS
Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created
within the Treasury of the Issuer the following Funds and Accounts:
(a) Series 2015-A Bonds
(1) Improvement Fund2015-A

(2) Debt Service Account 2015-A (within the Bond and Interest Fund).
(3) Costs of Issuance Account 2015-A
(4) Compliance Account 2015-A.
(5) Rebate Fund
(b) Series 2015-B Bonds
(1) Improvement Fund-2015-B.

(2) Debt Service Account 2015-B(within the Bond and Interest Fund).
(3) Costs of Issuance Account 2015-B
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(4) Compliance Account 2015-B.
The above Funds and Accounts shall be administered in accordance with the provisions of the Bond
Resolution so long as the Bonds are Outstanding.
Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds and certain other funds
shall be deposited simultaneously with the delivery of the Bonds as follows:
(a) Series 2015-A Bonds.
(1)[ Excess proceeds, if any, received from the sale of the Series 2015-A Bonds shall be
deposited in the Debt Service Account-2015-A.
([_]) ]An amount necessary to pay the Costs of Issuance for the Series 2015-A Bonds shall be
deposited in the Costs of Issuance Account-2015-A.
[ ([_]) An amount necessary to pay the costs of compliance for the Series 2015-A Bonds shall
be deposited to the Compliance Account-2015-A.]
([_]) The remaining balance of the proceeds derived from the sale of the Series 2015-A Bonds
shall be deposited into the Improvement Fund-2015-A.
(b) Series 2015-B Bonds.
(1)[ Excess proceeds, if any, received from the Sale of the Series 2015-B Bonds shall be
deposited in the Debt Service Account-2015-B.
([_]) ]An amount necessary to pay the Costs of Issuance for the Series 2015-B Bonds shall be
deposited in the Costs of Issuance Account-2015-B.
[ ([_]) An amount necessary to pay the costs of compliance for the Series 2015-B Bonds shall be
deposited to the Compliance Account-2015-B.]
([_]) The remaining balance of the proceeds derived from the sale of the Series 2015-B Bonds
shall be deposited into the Improvement Fund-2015-B.
Application of Moneys in the Improvement Fund. Moneys in the Improvement Fund-2015-A shall be
used for the sole purpose of: (a) paying the costs of the Improvements; and (b) paying interest on the Series 2015-A
Bonds during construction of the Improvements; and (c) paying Costs of Issuance. Moneys in the Improvement
Fund-2015-B shall be used for the sole purpose of: (a) paying a portion of the costs of the Improvements; (b) paying
interest on the Series 2015-B Bonds during construction of the Improvements; and (c) paying Costs of Issuance.
Withdrawals from the Improvement Fund shall be made only when authorized by the governing body of the Issuer.
Each authorization for costs of the Improvements shall be supported by a certificate executed by the Consulting
Engineer stating that such payment is being made for a purpose within the scope of the Bond Resolution and that the
amount of such payment represents only the contract price of the property, equipment, labor, materials or service
being paid for or, if such payment is not being made pursuant to an express contract, that such payment is not in
excess of the reasonable value thereof. Authorizations for withdrawals for other authorized purposes shall be
supported by a certificate executed by the Clerk (or designate) stating that such payment is being made for a purpose
within the scope of the Bond Resolution. Upon completion of the Improvements, any surplus remaining in the
Improvement Fund-2015-A shall be deposited in the Debt Service Account-2015-A; any surplus remaining in the
Improvement Fund-2015-B shall be deposited in the Debt Service Account-2015-B.
Substitution of Improvements; Reallocation of Proceeds. The Issuer may elect for any reason to
substitute or add other public improvements to be financed with proceeds of the Series Bonds provided the
following conditions are met: (a) the Substitute Improvement and the issuance of general obligation bonds to pay
the cost of the Substitute Improvement has been duly authorized by the governing body of the Issuer in accordance
with the laws of the State; (b) a resolution authorizing the use of the proceeds of the Bonds to pay the Financeable
Costs of the Substitute Improvement has been duly adopted by the governing body of the Issuer pursuant to this
II-8
Section, (c) the Attorney General of the State has approved the amendment made by such resolution to the
applicable transcript of proceedings for Bonds to include the Substitute Improvements; and (d) the use of the
proceeds of the Series 2015-A Bonds to pay the Financeable Cost of the Substitute Improvement will not adversely
affect the tax status of the Series 2015-A Bonds under State or federal law.
The Issuer may reallocate expenditure of the proceeds of the Bonds among all Improvements financed by
such Bonds; provided the following conditions are met: (a) the reallocation is approved by the governing body of
the Issuer; (b) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the
Financeable Costs of the Improvements; and (c) the reallocation will not adversely affect the tax status of: (a) the
Series 2015-A Bonds under federal law; or (b) the tax status of the Bonds under state law.
Application of Moneys in the Debt Service Account. All amounts paid and credited to the Debt Service
Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price
of and interest on the Bonds as and when the same become due and the usual and customary fees and expenses of
the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service
Account sums sufficient to pay both principal or Redemption Price of and interest on the Bonds and the fees and
expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to
the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such
amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the
Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer
entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the
Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject
to all of the provisions contained in the Bond Resolution and shall be held in trust by the Paying Agent for the
benefit of the Owners of the Bonds entitled to payment from such moneys. Any moneys or investments remaining
in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and
Interest Fund.
Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a
Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment
Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond
Payment Date, and no interest shall accrue for the period after such Bond Payment Date.
Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall
be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after
payment of all Costs of Issuance, but not later than the later of 30 days prior to the first Stated Maturity of principal
or one year after the date of issuance of the Bonds, shall be transferred to the Improvement Fund until completion of
the Improvements and thereafter to the Issuer for deposit into the Debt Service Account.
Application of Moneys in the Compliance Account. Moneys in the Compliance Account shall be used by
the Issuer to pay the to pay fees and expenses relating to compliance with federal arbitrage law and state or federal
securities laws. Any funds remaining in the Compliance Account on the sixth anniversary of the Issue Date shall be
transferred to the Issuer for deposit in the Debt Service Account.
DEPOSIT AND INVESTMENT OF MONEYS
Deposits. Moneys in each of the Funds and Accounts shall be deposited in a bank, savings and loan
association or savings bank which are members of the Federal Deposit Insurance Corporation, or otherwise as
permitted by State law, and which meet certain guidelines of State law. All such deposits shall be held in cash or
invested in Permitted Investments or shall be adequately secured as provided by the laws of the State.
Investments. Moneys held in any Fund or Account may be invested in accordance with the Bond
Resolution and the Federal Tax Certificate, in Permitted Investments; provided, however, that no such investment
shall be made for a period extending longer than to the date when the moneys invested may be needed for the
purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue
to and become a part of such Fund or Account; provided that, during the period of construction of the
Improvements, earnings on the investment of such funds may, at the discretion of the Issuer, be credited to the Debt
Service Account.
II-9
DEFAULT AND REMEDIES
Remedies. The provisions of the Bond Resolution, including the covenants and agreements herein
contained, shall constitute a contract between the Issuer and the Owners of the Bonds. If an Event of Default occurs
and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Bonds at the time
Outstanding shall have the right for the equal benefit and protection of all Owners of Bonds similarly situated:
(a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such
Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and
obligations required by the provisions of the Bond Resolution or by the Constitution and laws of the State;
(b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and
employees to account as if they were the trustees of an express trust; and
(c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be
unlawful or in violation of the rights of the Owners of the Bonds.
[ The Paying Agent shall notify the Owners and Bond Insurer of any Event of Default of which it has actual
notice.]
Limitation on Rights of Owners. The covenants and agreements of the Issuer contained in the Bond
Resolution and in the Bonds shall be for the equal benefit, protection, and security of the Owners of any or all of the
Bonds, all of which Bonds of any series shall be of equal rank and without preference or priority of one Bond over
any other Bond in the application of the Funds and Accounts pledged to the payment of the principal of and the
interest on the Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as
provided in the Bond Resolution. No one or more Owners secured hereby shall have any right in any manner
whatever by his or their action to affect, disturb or prejudice the security granted and provided for in the Bond
Resolution, or to enforce any right, except in the manner provided in the Bond Resolution, and all proceedings at
law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of such Outstanding
Bonds.
Remedies Cumulative. No remedy conferred upon the Owners is intended to be exclusive of any other
remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised
without exhausting and without regard to any other remedy conferred. No waiver of any default or breach of duty or
contract by the Owner of any Bond shall extend to or affect any subsequent default or breach of duty or contract or
shall impair any rights or remedies thereon.
[ Control of Remedies By Bond Insurer Upon an Event of Default and Event of Insolvency. Upon the
occurrence and continuance of an Event of Default, the Bond Insurer, provided the Bond Insurance Policy is in full
force and effect and the Bond Insurer shall not be in default thereunder, shall be entitled to control and direct the
enforcement of all rights and remedies granted to the Owners under the Bond Resolution. Any reorganization or
liquidation plan with respect to the Issuer must be acceptable to the Bond Insurer. In the event of any reorganization
or liquidation, the Bond Insurer shall have the right to vote on behalf of all Owners who hold the Bonds insured by
the Bond Insurer absent a default by the Bond Insurer under the applicable Bond Insurance Policy insuring such
Bonds.]
DEFEASANCE
When any or all of the Bonds, redemption premium, if any, or scheduled interest payments thereon have
been paid and discharged, then the requirements contained in the Bond Resolution and all other rights granted
thereby shall terminate with respect to the Bonds or scheduled interest payments thereon so paid and discharged.
Bonds, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and
discharged within the meaning of the Bond Resolution if there has been deposited with the Paying Agent, or other
commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity
or Redemption Date of said Bonds or the interest payments thereon, in trust for and irrevocably appropriated thereto,
moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance
Obligations, will be sufficient for the payment of the principal or Redemption Price of said Bonds and/or interest
accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to
II-10
the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any
Bonds, no such satisfaction shall occur until: (a) the Issuer has elected to redeem such Bonds, and (b) either notice
of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an
escrow agent to give irrevocable instructions, to the Bond Registrar to give such notice of redemption. [The Issuer
shall notify the Bond Insurer of any defeasance of the Bonds.]
[ Notwithstanding anything in the Bond Resolution to the contrary, in the event that the principal and/or
interest due on the Bonds shall be paid by the Bond Insurer pursuant to the Bond Insurance Policy, the Bonds shall
remain Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the Issuer
and the covenants, agreements and other obligations of the Issuer to the Owners shall continue to exist and shall run
to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights of such Owners.]
TAX COVENANTS
General Covenants. The Issuer covenants and agrees that it will comply with: (a) all applicable provisions
of the Code necessary to maintain the exclusion from gross income for federal income tax purposes of the interest on
the Series 2015-A Bonds; and (b) all provisions and requirements of the Federal Tax Certificate. The Issuer will
take such actions as may be necessary to comply with the Code and with all other applicable future laws,
regulations, published rulings and judicial decisions, in order to ensure that the interest on the Series 2015-A Bonds
will remain excluded from federal gross income, to the extent any such actions can be taken by the Issuer.
Survival of Covenants. The covenants contained in the Bond Resolution and in the Federal Tax Certificate
shall remain in full force and effect notwithstanding the defeasance of the Bonds or any other provision of the Bond
Resolution until such time as is set forth in the Federal Tax Certificate.
CONTINUING DISCLOSURE REQUIREMENTS
Disclosure Requirements. The Issuer covenants in the Bond Resolution with the Purchaser and the
Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set
forth in the Disclosure Undertaking and to make the provisions of the Disclosure Undertaking applicable to the
Bonds. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners.
Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a
timely manner with its continuing disclosure covenants contained in the Bond Resolution, the Purchaser and/or any
Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer
does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any
Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits
in equity for the specific performance of such covenant or agreement or for the enforcement of any other appropriate
legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce
any of the duties of the Issuer under such preceding section. [The Purchaser or Beneficial Owner shall provide a
copy of any such demand or notice to the Bond Insurer.] Notwithstanding any other provision of the Bond
Resolution, failure of the Issuer to comply with its continuing disclosure covenants contained in the Bond
Resolution shall not be considered an Event of Default under the Bond Resolution.
PROVISIONS RELATING TO THE BOND INSURANCE POLICY
[TO BE INSERTED IF NECESSARY]
MISCELLANEOUS PROVISIONS
Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be
made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within
30 days after the completion of each such annual audit, a copy thereof shall be filed in the office of the Clerk, [and a
duplicate copy of the audit shall be mailed to the Purchaser of the Bonds and to the Bond Insurer]. Such audits shall
at all times during the usual business hours be open to the examination and inspection by any Owner of any of the
Bonds, or by anyone acting for or on behalf of such user or Owner.
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Levy and Collection of Annual Tax. The governing body of the Issuer shall annually make provision for
the payment of Debt Service Requirements on the Bonds as the same become due by levying and collecting the
necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes
referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied
and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and
collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept
separate and apart from all other funds of the Issuer shall thereafter be deposited in the Debt Service Account and
shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due,
taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any
time said taxes are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is
hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to
reimburse said general funds for money so expended when said taxes are collected.
Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the
Bonds or of the Bond Resolution, may be amended or modified at any time in any respect by resolution of the Issuer
with the written consent of [the Bond Insurer and] the Owners of not less than a majority in principal amount of the
Bonds then Outstanding, such consent to be evidenced by an instrument or instruments executed by [the Bond
Insurer and] such Owners and duly acknowledged or proved in the manner of a deed to be recorded, and such
instrument or instruments shall be filed with the Clerk, but no such modification or alteration shall: (a) extend the
maturity of any payment of principal or interest due upon any Bond; (b) effect a reduction in the amount which the
Issuer is required to pay as principal of or interest on any Bond; (c) permit preference or priority of any Bond over
any other Bond; or (d) reduce the percentage in principal amount of Bonds required for the written consent to any
modification or alteration of the provisions of the Bond Resolution.
Any provision of the Bonds or of the Bond Resolution may, however, be amended or modified by
resolution duly adopted by the governing body of the Issuer at any time in any legal respect with the written consent
of [the Bond Insurer and] the Owners of all of the Bonds at the time Outstanding.
Without notice to or the consent of any Owners, the Issuer may amend or supplement the Bond Resolution
for the purpose of curing any formal defect, omission, inconsistency or ambiguity, to grant to or confer upon the
Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the
Owners, to more precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to
provide for Substitute Improvements, to conform the Series 2015-A Bond Resolution to the Code or future
applicable federal law concerning tax-exempt obligations, or in connection with any other change therein which is
not materially adverse to the interests of the Owners.
Notices, Consents and Other Instruments by Owners. Any notice, request, complaint, demand or other
communication required or desired to be given or filed under the Bond Resolution shall be in writing, and shall be
deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or
(b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be
given to the Paying Agent[ and the Bond Insurer]. The Issuer, the Paying Agent[, the Bond Insurer] and the
Purchaser may from time to time designate, by notice given hereunder to the others of such parties, such other
address to which subsequent notices, certificates or other communications shall be sent. All notices given by: (a)
certified or registered mail as aforesaid shall be deemed duly given as of the date they are so mailed; (b) fax as
aforesaid shall be deemed duly given as of the date of confirmation of receipt. If, because of the temporary or
permanent suspension of regular mail service or for any other reason, it is impossible or impractical to mail any
notice in the manner herein provided, then such other form of notice as shall be made with the approval of the
Paying Agent shall constitute a sufficient notice.
Electronic Transactions. The issuance of the Bonds and the transactions related thereto and described
herein may be conducted and documents may be stored by electronic means.
Severability. If any section or other part of the Bond Resolution, whether large or small, is for any reason
held invalid, the invalidity thereof shall not affect the validity of the other provisions of the Bond Resolution.
Governing Law. The Bonds and the Bond Resolution shall be governed exclusively by and construed in
accordance with the applicable laws of the State.
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THE DISCLOSURE UNDERTAKING
The Issuer has adopted an Omnibus Continuing Disclosure Undertaking, as may be amended and
supplemented (the “Disclosure Undertaking”) in which the Issuer covenants to provide certain financial and other
information with respect to its outstanding obligations, including the Bonds, in order to assist the Participating
Underwriter in complying with the provisions of the SEC Rule. In the Bond Resolution, the Issuer covenants to
apply the provisions of the Disclosure Undertaking to the Bonds. Such covenants are for the benefit of and
enforceable by the Participating Underwriter and the Beneficial Owners. The Issuer is the only “obligated person”
with responsibility for continuing disclosure with respect to the Bonds.
DEFINITIONS
In addition to the definitions set forth in this “APPENDIX II – THE BOND RESOLUTION –
Definitions” unless otherwise defined herein, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report filed by the Issuer pursuant to, and as described in the
Disclosure Undertaking, which may include the Issuer's CAFR, so long as the CAFR contains the Financial
Information and Operating Data.
“Beneficial Owner” means, with respect to a series of Bonds, any registered owner of any Bonds of such
series and any person which: (a) has the power, directly or indirectly, to vote or consent with respect to, or to
dispose of ownership of, any Bonds of such series (including persons holding Bonds through nominees, depositories
or other intermediaries); or (b) is treated as the owner of any Bonds of such series for federal income tax purposes.
“Bond Insurer” means the provider of the bond insurance policy, if any, for any series of Bonds.
“Bonds” means all bonds, notes, installment sale agreements, leases or certificates intended to be a debt
obligation of the Issuer identified in the Disclosure Undertaking, including the Bonds.
“CAFR” means the Issuer's Comprehensive Annual Financial Report, if any.
“Designated Agent” means Gilmore & Bell, P.C. or one or more other entities designated in writing by the
Issuer to serve as a designated agent of the Issuer for purposes of the Disclosure Undertaking.
“Dissemination Agent” means any entity designated in writing by the Issuer to serve as dissemination
agent pursuant to the Disclosure Undertaking and which has filed with the Issuer a written acceptance of such
designation.
“EMMA” means the Electronic Municipal Market Access system for municipal securities disclosures
established and maintained by the MSRB, which can be accessed at www.emma.msrb.org.
“Financial Information” means the financial information of the Issuer described under the heading
“PROVISION OF ANNUAL REPORTS – Financial Information.”
“Material Events” means any of the events listed under the heading “REPORTING OF MATERIAL
EVENTS.”
“MSRB” means the Municipal Securities Rulemaking Board, or any successor repository designated as
such by the Securities and Exchange Commission in accordance with the SEC Rule.
“Official Statement” means collectively the Issuer's Official Statement(s) for each series of the Bonds,
including all appendices and exhibits thereto.
“Operating Data” means the operating data of the Issuer described under the heading “PROVISION OF
ANNUAL REPORTS – Operating Data.”
“Participating Underwriter” means each of the original underwriters of a series of Bonds required to
comply with the SEC Rule in connection with the offering of such Bonds.
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“Repository” means the MSRB via EMMA.
“SEC” means the Securities and Exchange Commission of the United States.
PROVISION OF ANNUAL REPORTS
The Issuer shall, or shall cause the Dissemination Agent to, not later than 210 days after the end of the
Issuer’s Fiscal Year, commencing with the Fiscal Year ended in 2012, file with the Repository the Issuer’s Annual
Report, consisting of the Financial Information and Operating Data described as follows:
Financial Information. The audited financial statements of the Issuer for such prior Fiscal Year, prepared
in accordance with generally accepted auditing standards, in substantially the format contained in Appendix B to the
Official Statement. If audited financial statements are not available by the time the Annual Report is required to be
filed, the Annual Report shall contain summary unaudited financial information and the audited financial statements
shall be filed in the same manner as the Annual Report promptly after they become available. The accounting basis
and the method of preparation of the financial statements of the Issuer are contained in Appendix B to the Official
Statement. The method of preparation and basis of accounting of the Financial Information may not be changed to a
basis less comprehensive than contained in the Official Statement, unless the Issuer provides notice of such change
in the same manner as for a Material Event.
Operating Data. Updates as of the end of the Fiscal Year of certain financial information and operating
data described in the Official Statement (with such modifications to the formatting and general presentation thereof
as deemed appropriate by the Issuer) generally described as follows:
·Tax Revenues by Source ·Ratios of Outstanding Debt by Type

·Assessed Value and Estimated Actual ·Direct and Overlapping Governmental Activities
Value of Taxable Property Debt
·Property Tax Levies and Collections ·Legal Debt Margin Information
·Direct and Overlapping Property Tax Rates ·Schedule of Bonded Indebtedness by Category
·Principal Property Taxpayers
Operating Data for Water Revenue Bonds
·Changes in Net Assets ·Pledged Revenue Coverage

·Ratios of Outstanding Debt by Type ·Debt Service Payments to Final Maturity – Revenue Bonds
Additionally, the Issuer shall provide updates as of the end of the Fiscal Year for any material adverse
changes in that section of the most recent final Official Statement entitled “Employee Pensions” and “Property
Valuations.”
Any or all of the items listed above may be included by specific reference to other documents, including
official statements of debt issues with respect to which the Issuer is an “obligated person” (as defined by the SEC
Rule), which have been filed with the Repository, the MSRB or the SEC. If the document included by reference is a
final official statement, it must be available from the Repository. The Issuer shall clearly identify each such other
document so included by reference. In each case, the Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as provided in this Section;
provided that the audit report and accompanying financial statements may be submitted separately from the balance
of the Annual Report and later than the date required above for the filing of the Annual Report if they are not
available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as
for a Material Event.
From and after such time that Section (b)(5) of the SEC Rule applies to any series of Bonds, if the Annual
Report is not filed within the time period specified in subsection (a) hereof, the Issuer shall send a notice to the
Repository in a timely manner. Pursuant to Section (d)(3) of the SEC Rule, filing of an Annual Report shall not apply
to any Bonds with a stated maturity of 18 months or less.
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REPORTING OF MATERIAL EVENTS
No later than 10 Business Days after the occurrence of any of the following Material Events, the Issuer
shall give, or cause to be given, to the Repository notice of the occurrence of any of the following Material Events
with respect to the Bonds, with copies to the Bond Insurer:
(1) principal and interest payment delinquencies;

(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions; the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the
Bonds;
(7) modifications to rights of bondholders, if material;
(8) bond calls, if material, and tender offers;
(9) defeasances;
(10) release, substitution or sale of property securing repayment of the Bonds, if material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the Issuer (which shall be deemed to
occur as provided in the SEC Rule);
(13) the consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all
or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other
than pursuant to its terms, if material; and
(14) appointment of a successor or additional paying agent or trustee or the change of name of the
paying agent or trustee, if material.
Notwithstanding the foregoing, notice of Material Events described in (8) and (9) need not be given any
earlier than the notice (if any) of the underlying event is given to the Owners of affected Bonds pursuant to the Bond
Resolution.
DISSEMINATION AGENT
General. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in
carrying out its obligations under the Disclosure Undertaking, and may discharge any such Dissemination Agent,
with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign as
Dissemination Agent at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not
be responsible in any manner for the content of any notice or report (including without limitation the Annual Report)
prepared by the Issuer pursuant to the Disclosure Undertaking.
Annual Reports. If a Dissemination Agent shall be appointed, not later than 15 Business Days prior to the
date specified for providing the Annual Report to the Repository, the Issuer shall provide the Annual Report to the
Dissemination Agent or the Repository; provided that an Annual Report shall not be required for any series of
Bonds that has a stated maturity of 18 months or less. The Dissemination Agent shall file a report with the Issuer
certifying that the Annual Report has been filed pursuant to the Disclosure Undertaking, stating the date it was filed,
or that the Issuer has certified to the Dissemination Agent that the Issuer has filed the Annual Report with the
Repository. If the Dissemination Agent has not received an Annual Report or has not received a written notice from
the Issuer that it has filed an Annual Report to the Repository, by the date required in the Disclosure Undertaking,
the Dissemination Agent shall send a notice to the Repository.
Material Event Notices.
(1) The Dissemination Agent shall, promptly after obtaining actual knowledge of the occurrence of
any event that it believes may constitute a Material Event, contact the chief financial officer of the Issuer or his or
her designee, or such other person as the Issuer shall designate in writing to the Dissemination Agent from time to
time, inform such person of the event, and request that the Issuer promptly notify the Dissemination Agent in
writing whether or not to report the event.
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(2) The Issuer will promptly respond in writing to any such request. Whenever the Issuer obtains
knowledge of the occurrence of a Material Event, because of a notice from the Dissemination Agent or otherwise,
the Issuer shall promptly determine if such event constitutes a Material Event and shall promptly notify the
Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence. If the
Issuer has determined that knowledge of an event is listed in (2), (7), (10) or (13) of the definition of a Material
Event, is not material, the Issuer shall notify the Dissemination Agent in writing not to report the occurrence.
(3) If the Dissemination Agent has been given written instructions by the Issuer to report the
occurrence of a Material Event, the Dissemination Agent shall file a notice of such occurrence with the Repository
within 10 Business Days after the occurrence, with copies to the Issuer and the Bond Insurer. Notwithstanding the
foregoing, notice of Material Events described in paragraphs (8) and (9) need not be given any earlier than the notice
(if any) of the underlying event is given to the Owners of affected Bonds pursuant to the Bond Resolution.
Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only
such duties as are specifically set forth in the Disclosure Undertaking. The Dissemination Agent shall not be
responsible in any manner for the content of any notice or report prepared by the Issuer.
Other Designated Agents. The Issuer may, from time to time, appoint or designate a Designated Agent to
submit Annual Reports, Material Event notices, and other notices or reports pursuant to the Disclosure Undertaking.
The Issuer hereby appoints the Dissemination Agent and the Designated Agent(s) solely for the purpose of
submitting Issuer-approved Annual Reports, Material Event notices, and other notices or reports pursuant to the
Disclosure Undertaking. The Issuer may revoke this designation at any time upon written notice to the Designated
Agent.
Termination of Reporting Obligation. The Issuer's obligations under the Disclosure Undertaking for a
particular series of Bonds shall terminate upon the legal defeasance, prior redemption or payment in full of that
series of Bonds. If the Issuer's obligations hereunder are assumed in full by some other entity as permitted in the
Bond Resolution, such person shall be responsible for compliance with under the Disclosure Undertaking in the
same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such
termination or assumption occurs prior to the final maturity of such Bonds, the Issuer shall give notice of such
termination or assumption in the same manner as for a Material Event.
Amendment; Waiver. In conjunction with the public offering of any series of Bonds, the Issuer and the
Dissemination Agent, if any, may amend the categories of Operating Data to be updated to conform to the operating
data included in the final Official Statement for such series of Bonds, in conformance with the requirements and
interpretations of the SEC Rule as of the date of such final Official Statement, without further amendment to the
Disclosure Undertaking. Thereafter, the Operating Data to be filed by the Issuer with the Repository with respect to
the Bonds (and all other series of Bonds then subject to the Disclosure Undertaking) shall be deemed to be amended
to reflect the requirements of the revised Operating Data for the new series of Bonds.
The Issuer may amend and any other provision of the Disclosure Undertaking may be waived, provided
that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written
opinion that the undertaking of the Issuer contained therein, as so amended or after giving effect to such waiver, is in
compliance with the SEC Rule and all current amendments thereto and interpretations thereof that are applicable to
the Disclosure Undertaking; provided, however, that the Disclosure Undertaking, may be amended for the purpose
of (a) extending the coverage of the Disclosure Undertaking to any additional series of Bonds or (b) removing
reference to any series of Bonds for which the Issuer’s reporting obligations have terminated, each without the
provision of a written opinion as otherwise required by this paragraph. If a provision of the Disclosure Undertaking
is amended or waived with respect to a series of Bonds pursuant to this paragraph, the Issuer shall describe such
amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the
reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles,
on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements: (a) notice of such
change shall be given in the same manner as for a Material Event; and (b) the Annual Report for the year in which
the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form)
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between the financial statements as prepared on the basis of the new accounting principles and those prepared on the
basis of the former accounting principles.
Additional Information. Nothing shall be deemed to prevent the Issuer from disseminating any other
information, using the means of dissemination set forth in the Disclosure Undertaking or any other means of
communication, or including any other information in any Annual Report or notice of occurrence of a Material
Event, in addition to that which is required by the Disclosure Undertaking. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is
specifically required by the Disclosure Undertaking, the Issuer shall have no obligation under the Disclosure
Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a
Material Event.
Noncompliance. In the event of a failure of the Issuer or the Dissemination Agent, if any, to comply with
any provision of the Disclosure Undertaking with respect to a series of Bonds, any Participating Underwriter or any
Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking
mandamus or specific performance by court order, to cause the Issuer or the Dissemination Agent, if any, as the case
may be, to comply with its obligations under the Disclosure Undertaking. Noncompliance with the provisions of the
Disclosure Undertaking shall not be deemed an Event of Default under the Bond Resolution or the Bonds, and the
sole remedy under the Disclosure Undertaking in the event of any failure of the Issuer or the Dissemination Agent, if
any, to comply with the Disclosure Undertaking shall be an action to compel performance.
Electronic Transactions. Actions taken under the Disclosure Undertaking and the arrangements described
therein may be conducted and related documents may be stored by electronic means.
Beneficiaries. The Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Dissemination
Agent, if any, each Participating Underwriter and Beneficial Owners from time to time with respect to a series of
Bonds, and shall create no rights in any other person or entity.
Governing Law. The Disclosure Undertaking shall be governed by and construed in accordance with the
laws of the State.
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APPENDIX III
SUMMARY OF PROPERTY VALUATION, TAX LEVIES,
PAYMENT PROVISIONS AND THE CASH-BASIS LAW
Following is a summary of certain statutory and constitutional provisions relative to the mechanisms of
real property valuation, tax levy procedures, tax payment and distribution procedures, and the cash-basis
laws of the state. The summary does not purport to be inclusive of all such provisions or of the specific
provisions discussed, and is qualified by reference to the complete text of applicable statutes and articles
of the State Constitution. This summary reflects changes to Kansas property tax laws following
amendment of the State Constitution in 1986 and 1992 relating to reappraisal and classification of real
property for the purpose of property taxation.
Property Valuations (Chapter 79, Article 14, Kansas Statutes Annotated, and
Article 11, Kansas Constitution)
Assessor’s Estimated Fair Market Value
The valuation of each parcel of real property subject to taxation must, by law, be updated each year, as of
each January 1, and must be physically inspected by the appraiser at least once every six years. With the
exception of agricultural land, all property is valued at its market value in money which is the value the
appraiser determines to be the price the appraiser believes the property to be fairly worth, and which is
referred to as the “Fair Market Value.” Land devoted to agricultural use is appraised on the basis of the
income-generating capabilities of such land for agricultural purposes at median levels of production.
Assessed Value and Property Classification
For taxable years commencing January 1, 1993, and thereafter, property is classified and assessed at the
percentages of value as follows:
Class 1
This class consists of real property. Real property is further classified into seven subclasses. Such
property is defined by law for the purpose of subclassification and assessed uniformly as to subclass at the
following percentages of market value:
(1) Real property used for residential purposes including multi-family residential real
property and real property necessary to accommodate a residential community of mobile
or manufactured homes including the real property upon which such homes are located ..... 11½%
(2) Land devoted to agricultural use which shall be valued upon the basis of its agricultural
income or agricultural productivity pursuant to Section 12 of Article 11 of the
Constitution ............................................................................................................................. 30%
(3) Vacant lots .............................................................................................................................. 12%
(4) Real property which is owned and operated by a not-for-profit organization not subject to
federal income taxation pursuant to Section 501 of the federal Internal Revenue Code,
and which is included in this subclass by law ......................................................................... 12%
(5) Public utility real property, except railroad real property which shall be assessed at the
average rate that all other commercial and industrial property is
assessed .................................................................................................................................... 33%
(6) Real property used for commercial and industrial purposes and buildings and other
improvements located upon land devoted to agricultural use ................................................. 25%
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(7) All other urban and rural real property not otherwise specifically subclassified .................... 30%
Class 2
This class consists of tangible personal property. Such tangible personal property is further classified into
six subclasses. Such property is defined by law for the purpose of subclassification and assessed
uniformly as to subclass at the following percentages of market value:
(1) Mobile homes used for residential purposes .......................................................................... 11½%
(2) Mineral leasehold interests, except oil leasehold interests, the average daily production
from which is five barrels or less, and natural gas leasehold interests, the average daily
production from which is 100 mcf or less, which shall be assessed at 25% ........................... 30%
(3) Public utility tangible personal property including inventories thereof, except railroad
personal property including inventories thereof, which shall be assessed at the average
rate all other commercial and industrial property is assessed ................................................. 33%
(4) All categories of motor vehicles not defined and specifically valued and taxed pursuant to
law enacted prior to January 1, 1985 ...................................................................................... 30%
(5) Commercial and industrial machinery and equipment which, if its economic life is seven
years or more, shall be valued at its retail cost less seven-year straight-line depreciation,
or which, if its economic life is less than seven years, shall be valued at its retail cost
when new less straight-line depreciation over its economic life, except that, the value so
obtained for such property, notwithstanding its economic life and as long as such
property is being used, shall not be less than 20% of the retail cost when new of such
property ................................................................................................................................... 25%
(6) All other tangible personal property not otherwise specifically classified ............................. 30%
All property used exclusively for state, county, municipal, literary, educational, scientific, religious,
benevolent and charitable purposes, farm machinery and equipment, merchants’ and manufacturers’
inventories (other than public utility inventories included in Subclass (3) of Class 2), livestock, and all
household goods and personal effects not used for the production of income is exempted from property
taxation.
The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the
laws of the State all commercial, industrial, telecommunications and railroad machinery and equipment
acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30,
2006 for the purpose of expanding an existing business or creation of a new business.
Property Tax Payments and Delinquencies (Chapter 79, Articles 18, 20, 23, 24, 28 and 29, Kansas
Statutes Annotated)
The amount of ad valorem taxes to be levied against property within a taxing jurisdiction is determined by
the governing body of the jurisdiction as part of the annual budget approval process and certified, along
with special assessments, to the county clerk not later than August 25 of each year. The county clerk
assembles the tax levies and assessments from the various jurisdictions located within the county,
together with any State property tax levies, into a tax roll specifying the tax on each taxable parcel of land
in the county. The county treasurer receives the certified tax roll not later than September 1 each year and
mails tax statements to taxpayers not later than December 15. Taxpayers have the option of paying the
entire amount of taxes owed not later than December 20, or paying half at that time and the other half by
the following May 10.
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Property taxes not paid when and in the amounts due are considered delinquent and are subject to an
interest penalty at a rate set by law. If delinquent taxes, plus accrued interest, have not been paid by
July 10, the county treasurer will convey ownership of the property to the county, pursuant to statute.
Delinquent taxpayers then have three years (or two years if both property taxes and special assessments
are owed) to redeem their property by paying all unpaid taxes, fees, accrued interest and costs thereon. If
not redeemed, the real estate will be disposed of by sheriff’s sale at public auction to the highest bidder
following judicial foreclosure proceedings. The net proceeds of the sheriff’s sale are apportioned on a pro
rata basis to the various taxing units having jurisdiction over the property.
Property Tax Distributions (Section 12-1678a, Kansas Statutes Annotated)
Property taxes and special assessments collected by the county treasurer on December 20 and May 10 are
distributed to the various taxing units on January 20 and June 5, respectively, in the actual amount
collected as of not more than 20 days prior to the distribution date. In addition, distributions of interim
collections are made on March 20 and September 20, in an amount equal to 95% of the estimated amount
collected but not less than the actual amount collected as of not more than 20 days prior to such
distribution dates. A final distribution is made on October 31, just prior to the receipt by the treasurer of
the following year’s tax roll.
The Kansas Cash-Basis Law (Chapter 10, Article 11, Kansas Statutes Annotated)
All municipalities and taxing subdivisions of the State are required by law to administer their financial
operations on a cash basis, except in specific instances. Simply stated, a municipality may not incur a
financial obligation in an amount which exceeds the amount of funds actually on hand at the time the
obligation is incurred. The most notable exceptions to the cash-basis law are bonds, notes and warrants
issued in accordance with State law, contracts approved by referenda and teacher contracts.
In order to operate efficiently on a cash basis, municipalities must adhere to certain statutory budgeting
and accounting requirements which segregate financial resources into various operating funds, such as the
general fund and the debt service fund, and limit the expenditure of such resources to the amounts
identified in the duly adopted budget for each fund. Budgeted expenditures must be balanced with
budgeted revenue for each fund, and moneys cannot be transferred between funds to cover excessive
spending. Likewise, surplus revenue must be carried forward and used to reduce tax levies in the
following year, with allowance for reasonable reserves.
According to the Kansas Supreme Court, the purpose of the cash-basis and budget laws is to provide for
“the systematical, intelligent and economical administration of the financial affairs of municipalities and
other taxing subdivisions of the state, so as to avoid waste and extravagance and yet permit such units of
government to function so as to supply the governmental wants and needs of the people.” (State, ex rel.,
v. Republic County Commissioners, 148 Kan. 376, 383.) It has the collateral effect of ensuring that
financial obligations legally entered into will be paid.
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APPENDIX IV
EXCERPT OF 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2014, audited by Knudsen Monroe & Company LLC, Newton Kansas.
The reader should be aware that the complete financial statements may contain additional information
which may interpret, explain or modify the data presented here.
The City’s comprehensive annual financial reports for the years ending 1989 through 2013 were awarded
the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. The City has
submitted its CAFR for the 2014 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.
IV-1
Financial Section
Basic Financial Statements
IV-2
INDEPENDENT AUDITOR'S REPORT
City Commission
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Newton, Kansas as of and for the year ended December 31, 2014, and the
related notes to the financial statements, which collectively comprises the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Newton,
Kansas, as of December 31, 2014, the respective changes in financial position and, where applicable, cash
flows thereof, and the budgetary comparison for the general fund, for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages A3-A 11 be presented to supplement the basic financial statements. Such
information, ahhough not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Newton, Kansas's basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements, individual fund budgetary comparison schedules and statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements and the individual fund budgetary
comparison schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining and individual nonmajor fund financial statements
and the individual fund budgetary comparison schedules are fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on
them.
-k_._, ~"- j c...p- ~L LC:...

0
Certified Public Accountants
July 27,2015
IV-3
MANAGEMENT DISCUSSION AND ANALYSIS The Statement of Net Position and the Statement of Activities
One of the most important questions asked about the City's finances is, "Is the City as a whole better off or worse
off as a result of the past year's activities?" The Statement of Net Position and the Statement of Activities each
As management of the City of Newton, Kansas, we offer readers of the City of Newton's financial statements report information about the City as a whole and about its activities in a way that helps answer this question.
this narrative overview and analysis of the financial activities of the City of Newton for the year ended December These statements include all assets and liabilities using the accrual basis of accounting, which is similar to
31, 2014. We encourage readers to consider the information presented here in conjunction with additional the accounting methods used by most private-sector companies. All of the current year's revenues and
information that we have furnished in our letter of transmittal, which can be found on pages i-xvii of this report, expenses are taken into account as they are earned or incurred, regardless of when cash is received or paid.
and the City of Newton's financial statements, which follow this section beginning on page A-12.
These two statements report the City's net position and changes in them. You can think of the City's net
FINANCIAL HIGHLIGHTS position as the difference between assets and liabilities as one way to measure the City's financial health, or
financial position. Over time, increases or decreases in the City's net position are one indicator of whether
The assets of the City of Newton exceeded its liabilities at the close of the most recent fiscal year by its financial health is improving or deteriorating. You will need to consider other non-financial factors, however.
$89,529,037. Of this amount $30,227,047 (unrestricted net assets) may be used to meet the such as changes in the City's property tax base and the condition of the City's roads and other infrastructure, to
government's ongoing obligations to the citizens and creditors. assess the overall health of Newton.
The City's total net position increased 5.7% to $89.5 million and unrestricted net position decreased The Statement of Net Position and the Statement of Activities distinguish functions of the City of Newton that
3. 7% to $30.2 million as a result of this year's operations. are principally supported by taxes and intergovernmental revenues (government activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business-
At the end of 2014, the unrestricted fund balance for the General Fund was $6,855,567 or 41.2% of type activities). The City's governmental activities include general government, public safety, highways and
General Fund expenditures net of transfers. This is compared to $6,389,945 or 41.2% of General Fund street, community and economic development, and parks and recreation. Property taxes, transient guest taxes,
expenditures in 2013. The increase in the unrestricted fund balance is due to an increase in the sales taxes, and franchise fees finance most of these activities. The City's business-type activities include water,
unassigned fund balance. This fund balances remains within the Fund Balance Policy limits. sewer, sanitation, and golf course. The City of Newton has two component units, the Newton Public Library and
the Newton Public Building Commission, which are both separate legal entities. Although legally separate, these
The City of Newton's General Obligation (GO) Debt decreased $2,635,000 during 2014 to $43,655,000. "component units" are important because the City is financially accountable for them.
This is the net impact of paying of GO Debt and not issuing new GO debt is 2014.
Reporting the Citv's Most Significant Funds
OVERVIEW OF THE FINANCIAL STATEMENTS
IV-4
A fund is a grouping of related accounts that is used to maintain control over resources that have been
This discussion and analysis is intended to serve as an introduction to the City of Newton's comprehensive segregated for specific activities or objectives. The fund financial statements provide detailed information about
annual financial report which includes the basic financial statements. The City's basic financial statements the most significant funds-not the City of Newton as a whole. Some funds are required to be established by
comprise three components. 1) Government-wide financial statements - consisting of The Statement of Net State Law and by bond covenants. In addition, the City Commission establishes other funds to help control and
Position and the Statement of Activities which provide information about the activities of the City as a whole and manage money for particular purposes, or to demonstrate that Newton is complying with legal requirements for
present a more long-term view of the City's finances. 2) Fund financial statements that report the City's using certain taxes, grants, and other money. The City's three kind of funds; governmental, proprietary and
operations in more detail than the government-wide statements, by providing information about the City's most fiduciary use different accounting approaches.
significant funds. 3) Notes to the financial statement. Other included statements provide financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the Fund Financial Statements
government. This report also contains other supplementary statistical and financial information in addition to
the basic financial statements themselves. Governmental funds--Most of the City's basic services are reported in its governmental funds, which
focus on how money flows into and out of those funds and the balances left at year-end that are available
Reporting the Cltv as a Whole
for future spending. These funds are reported using an accounting method called the modified accrual
The government-wide financial statements (pages A-12 to A-14 of this CAFR) are designed to provide readers basis of accounting, which measures cash and other financial assets that can readily be converted to
with a broad overview of the City of Newton's finances, in a format similar to a private-sector business. cash. With this method, the governmental fund statements provide a detailed short-term view of the
city's general government operations and the basic services it provides. Governmental fund information
helps the reader determine whether there are more or fewer financial resources that can be spent in the
near future to finance the City's programs. We describe the relationship (or differences) between
governmental activities (reported in the Statement of Net Position and the Statement of Activities) and
governmental funds (reported in the fund financial statements) in a reconciliation document following
the fund financial statements. on pages A-17 and A-20.
• Proprietary funds--When the City charges for certain services it provides, these services are generally
reported in proprietary funds. Proprietary funds are reported using the full accrual basis of accounting,
in the same way that all activities are reported in the Statement of Net Position and the Statement of
Activities. The City of Newton maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. We use internal service funds to report activities provided through one fund for other City
programs and activities-such as the City's Stores and Maintenance and Self Insurance Funds.
Table2
Fiduciary funds-- The City is a trustee, or fiduciary, for certain amounts held on behalf of others. The City of Newton
City's fiduciary activities are reports in the Statement of Fiduciary Net Position. We exclude these Statement of ActJvl... and Changes in Net Poalion
activities from the City's other financial statements, because the city cannot use these assets to finance Year Ended December 31, 2014
its operations. The City is responsible for ensuring that the assets reported in these funds are used only
for their intended purposes. Govemmenllll Business-Type
Activities Activities Total
THE CITY AS A WHOLE 201 .. 2013 2014 2013 2014 2013
Revenues
Prpgram Reyanues
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In 4,312,182 $ 4,085,008 s 16,219,100 $ 13,365,180 $ 20,531.282 $ 17,450,188
Charges for services $
the case of the City of Newton, assets exceeded liabilities by $89,529,037 at the close of 2014, the most recent Operating grants and contributions 632.319 642,795 632,319 642,795
fiscal year. This represents an increase of 5.7% as compared to the close of 2013. Capita! grants and contributions 2,586,491 5.828.963 669,107 889.233 3,255,598 6,718,196
General Revenues
Property taxes and special assessrmnts 7,010,541 7,896,230 7,010,541 7,896,230
By far the largest portion of the City of Newton's net position reflects its investment in capital assets (e.g., land, Sales taxes 5,084,012 4,822.064 5,084,012 4,822,064
buildings, infrastructure. machinery and equipment), less any related outstanding debt used to construct or Franchise taxes 1,641,767 1,533.637 1,641,767 1,533,637
acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these Other taxes 1,050.347 907,779 1,050,347 907,779
lntergovemmBnta!, not restricted
assets are not available for future spending. Although the City's investment in its capital assets is reported net to specific programs 643.094 630,322 643,094 630,322
of related debt, it should be noted that the resources needed to repay this debt must be provided from other Interest Income 7,665 8,873 17 39 7,682 8,912
sources, since the capital assets themselves cannot be used to liquidate these liabilities. Other 194,311 436,256 194.311 436,256
Total R•venues ~729 26,791,927 16,888.224 14,254,452 40,050,953 41,046,379
Table 1 Expenses
City of Newton General government 2,748,317 2.288,726 2,748,317 2.288,726
Public safety 9,091,977 8,646,918 9,091,977 8,646,918
Condensed Statement of Net Position
Highway and streets 3,123,553 3,032,939 3,123,553 3.032,939
December 31, 2014 Culture and recreation 3,301,952 3,419,439 3,301,952 3,419,439
.Nrp:>rt 2.037,345 1,552,477 2.037,345 1,552.477
Public works 1,768,709 1,864,153 1,768,709 1,864,153
Interest and fiscal charges 1,455.286 1,538.070 1,455.266 1,538,070
Gowrnmental Business-Type Sewe• 4,497,867 4,281,556 4,497,867 4,281,556
Activities Activities Total Sanitation 1,719,060 1,712,657 1,719,060 1,712.657
201<4 2013 201<4 2013 201<4 2013 Waterwor1<s 3,626,523 3,337,612 3,626.523 3,337,612
IV-5
Golf Course 1,810,959 1,567,606 1,810,959 1,567,606

Current and other assets $28,877,745 $27,393,014 $14,944,216 $15,234,324 $43,821,961 $42,627,338 Total ExpenMs 23,527,119 22,342,722 11,654,409 10,899,431 35,181,528 33,242,153
capital assets, nan ....preclable 25,309,573 22,539,613 11,569,963 2,117,125 36,879.536 24,656,738
C&pltal assets, net of depreciation 41,155.245 43,009,136 45,481,984 46,902.111 86,637,229 89,911,247 Excess (Deficiency) before transfers (364,390) 4,449,205 5,233,815 3,355,021 4,869,425 7.804,226
Transfers 2,362,303 1,887,870 (2,362,303) (1 ,887 ,870}
Total Assets 95,342,563 92,941,763 71,996,163 64,253,560 167,338,726 157,195,323 Change in Net Assets 1,997,913 6,337,075 2,871,512 1,467,151 4,869,425 7,804,226
Deferred OUtflows of Resources 538,580 581,663 581,600 636,366 1,120,180 1,218.029 Net Position, Beginning of the Year
Long-term liabilities outstanding 37,602,428 39.748,821 30,012,698 25.205,394 67,615,126 64,954,215 /Ia prevlousty reported 45,468,244 39,730,736 39,191,368 37,724,217 84,659,612 77,454,953
Prior Period adjustment 0 (599,567) 0 0 0 ~599,567)
Other llabllftles 4,709,756 2,370,906 502,185 493,164 5,211,941 2,864,070 As restated 45,468,244 39,131,169 39,191,368 37,724.217 84,659,612 76,855,386
Total Uabllftles 42,312.184 42,119,727 30,514,883 25,698.558 72.827,067 67,818.285 Net Position, End of the Year $ 47,466,157 $ 45,468,244 $ 42,062,880 $ 39,191,368 $ 89,529,037 $ 84,659,612
Deferred Inflows of Resources 6,102.802 5.935,455 0 0 ~802 5.935.455
Not Posftlon: Governmental Activities
Not lrwestment in C&pltal Assets 29.883,633 26.838.054 27,620,849 24,448,242 57,504,482 51,286,296
Resll'icted 1,362,548 1,536,715 434,960 434,960 • 1,797,508 1,971,675 Table 3 presents the cost of the City's four largest governmental activities-general government; public safety;
Urwestricted 16,219.976 17,093,475 14,007,071 14,308,166 30,227,047 31.401,641 highway and streets, public works; and culture and recreation-as well as each activity's net cost (total cost,
Total Not Poaftlon $47,466,157 $45.468.244 $42,062,880 $39,191,368 $89,529,037 $84,659.612 less revenues generated by the activity). The net cost shows the financial burden that was placed on the City's
taxpayers by each of these governmental functions.
An additional portion of the city's net assets represents resources that are subject to external restrictions on how
Table 3
they may be used. The remaining balance of unrestricted net assets of $30,227,047 may be used to meet the
government's ongoing obligations to citizens and creditors. The decrease in the unrestricted net assets is a Net Cost of Governmental Activities
result of now reporting certain business type activity assets as net investment in capital assets as opposed to
unrestricted net assets.
Total Cost Net Cost
At the end of the current fiscal year, the city is able to report positive balances in all categories of net position of Services of Services
for governmental activities. The City's combined net position from governmental and business-type increased General government $ 2,748,317 $ 2,438.997
as described previously. This increase is reflected in the Statement of Net Position through Statement of
Public safety 9,091,977 6,737,651
Activities, on pages A-12 and A-13 to A-14, respectively.
Highway & streets and public works 4,892,262 4,738,551
Culture and recreation 3,301,952 1,401,168
Totals $ 20,034,508 $ 15,316,367
Property taxes increased $167,347 (2.9%) for the year 2014 as compared to 2013. This is due to a Functional Expenses
combination of increase in assessed valuation and a slight mill increase to fund replacement of 800MHz
radios for emergency services.
For the most part, increases in expenses closely paralleled general economic inflation and growth in the
General
demand for services.
Capital outlay
19%
11%
Source of Revenue
and other
Public
32%
Licenses
permits Taxes Business-type Activities
1% 67%
Business-type activities increased the City's net position by $2,871,512 to $42,062,880 during 2014. Table 4
presents the cost of the City's four business-type activities-Sewer. Sanitation, Water and Golf Course--as well
as each activity's net revenue (revenue generated by the activity less its total cost).
IV-6
Table 4
Net Revenue from Business-Type Activities
Total Cost Net Revenue

of Activity from Activity
Sewer $ 4.497,867 $ 3,755,651
Sanitation 1,719,060 167,379
Waterworks 3,626,523 1,240,336
Golf Course 1,810,959 70,432
Totals $ 11,654.409 $ 5,233,798
In 2008 the City Commission approved a rate increase in the water and sewer with new water rates
taking effect with the April15, 2008 billing and new sewer rates taking effect with the October 15,
2008 billing. Additionally in 2010, the City Commission approved incremental increases in water and
sewer rates for subsequent years.
The water rate increase is due to infrastructure requirements and the sewer rate increase is being
driven by both growth demands and a series of federal and state mandates.
In 2014 the City began a mandated upgrade of the Wastewater Treatment Plant for estimated cost
of $24 million. The City Commission adopted a plant upgrade fee in 2014 to pay for the debt service
for the upgrade.
The 2015-2020 Capital Improvement Plan is approximately $37 million. The CIP is funded through
a combination of City, State and Federal funds.
Table 5
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
City of Newton's Capital Assets
(net of depreciation)
At December 31, 2014, the City's governmental funds reported combined fund balance of $1,590,845.The
negative fund balance in the Street Capital Project and Other Governmental Funds will be discussed below.
Governmental Activities Buaineii·M!!: Activities Total
The General Fund is the major operating and taxing fund for the City of Newton. The beginning total ~ 2013 2014 2013 ~ _______1Qg
fund balance was $6,864,190. In 2013, the ending balance was $7,325,094, a $460,904 or 6.7% Land 4.111.721 $ 4,111,721 $ 1,082.579 $ 1,082.579 5,194,300 $ 5,194,300
increase over 2013. The increase in fund balance is due increase in the unassigned fund balance. The Bt.Jidings and if'Tl)roverrents 13.587.912 14.211.200 14,627,245 15.116,222 28.215.157 $ 29,327,422
City's Fund Balance Policy requires the General Fund unassigned fund balance to be 15% of Machinery and equipment 2.126.279 2,382.968 3,045,780 2,778.496 5.172,059 $ 5,161.464
General infrastructure 25.441,054 26.414,968 25,441,054 $ 26.414,968
expenditures. The current balance is 16.7%, well within the policy limits. 29,007,393 27.808.959 $ 29,007,393
Utility service lines 27.808,959
• The Debt Service Fund reflected a decrease of $234,926. The Debt Service Fund balance at year end Construction in progress 21,197.852 18.427.892 10.487,364 1,034.546 31.685,236 $ 19.462,438
2014 was $528,849. The decrease was part of a planned draw down of reserves that had buiH up over Total capital assets 66.464,818 's 65.548,749 $ 57,051,947 $ 49,019.236 123,516,765 $ 114.567.985
time. The City's Fund Balance Policy requires the Debt Service Fund unassigned fund balance to be
5% of expenditures. The current balance is 13.8%, well within the policy limits.
The Street Capital Projects Fund accounts for major street projects in Newton. In 2014, the City The City's five-year Capital Improvement Plan reflects appropriations for construction, improvements to, or
continued with projects funded from State and Federal. The fund reflects an ending balance of acquisition of an additional $37 million worth of capital assets for fiscal 2015 through 2020. Funding is budgeted
($5,863,953). The negative ending balance is the result of interfund loans from reserve funds for capital to come from general obligation bonds, utility revenue bonds, state revolving fund loans and special benefit
projects. In 2014 the City plans to issue approximately $6.4 million in bonds for these completed projects districts and other sources. The most significant projects include construction or enhancements of various
that would bring the Street Capital projects fund to a positive ending balance. streets, bridges, and traffic-ways, construction and enhancements to parks and athletic fields, airport facilities,
water treatment and distribution system improvements, wastewater collection and treatment facilities and storm
In Other Governmental Funds, the ending fund balance is ($399,145). The negative balance is due to water drainage improvements.
timing of interfund transfers and federal grant reimbursement. As discussed above, the City will issue
bonds in 2014 for completed projects that will bring the fund balance to a positive ending balance. Debt
General Fund Budgetary Highlights At December 31, 2014, the City had total general obligation debt outstanding of $43,655,000 backed by the full
faith and credit of the government. The remainder of the City bonded debt represents revenue bonds. The City
The General Fund actual revenues exceeded budgeted revenues by $948,003 for 2014. The actual 2014
IV-7
is obligated for a Kansas Department of Transportation Revolving Loan of $280,223 which is also backed by the
expenditures were $308,6751ess than budgeted. In 2014 revenues exceeded expenditure by $629,109 growing full faith and credit ofthe government. The City is obligated for $15,606,145 ofstate revolving fund loans secured
the fund balance in the General Fund. solely by specified revenue sources. This reflects $6.4 million debt for the rehabilitation of the water treatment
plant. In addition the City has a Golf Course Capital Lease obligation for $6,660,000 payable from specific
General Fund tax revenues, actual vs. budget, reflected a positive variance of $792,196. The increase revenue sources.
was largely due to higher than budgeted revenues for sales tax, franchise taxes and in lieu of tax revenue
from the wastewater fund. Charges for services were $54,810 below budget. Additional information of the City of Newton's long-term debt can be found in Note 5, of the Notes to Financial
Statements, on pages A-40 to A-45.
General Fund expenditures in 2014 were $17, 385,286 compared to $17,107,965 in 2013. This reflects
a 1.6% expenditure increase. The City has made deliberate attempts to hold the line on spending. The
increases are largely due to the cost of doing business and inflation. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
CAPITAL ASSET AND DEBT ADMINISTRATION Newton is the seat of Harvey County, within the Wichita Metropolitan Statistical Area (MSA). Wichita is one of
366 Metropolitan Statistical Areas (MSAs) in the nation. The Wichita MSA 2010 population of 624,099, ranked
Capital Assets 84"' in the nation. In 2010 Harvey County with a population of 34,684 had a per capita personal income (PCPI)
of $36,300. This PCPI ranked 49th in the state and was 93 percent of the state average, $38,977, and 91 percent
At the end of 2014, the City had $123,516,765 (net of depreciation) invested in a broad range of capital assets, of the national average, $39,937. The 2010 PCPI reflected an increase of 0.8 percent from 2009. The 2009-
including police and fire equipment. buildings, improvements, land, park facilities, golf course, and water and 2010 state change was 1.8 percent and the national change was 2.8 percent. In 2000 the PC PI of Harvey County
wastewater treatment facilities (see Table 5 below). This amount represents a net increase (including additions was $25,969 and ranked 23rd in the state. The 2000-2010 compound annual growth rate of PCPI was 3.4
and deletions) of $8,948,780. Construction in progress increased $12,222,789 as a result for the ongoing percent. The compound annual growth rate for the state was 3.2 percent and for the nation was 2.8 percent.
construction and upgrade of the wastewater treatment plant. Building and Improvements decreased $1, 112,265. The Harvey County Civilian Labor Force was 17,837 with an unemployment rate of 5.7%
Machinery and Equipment decreased $10,595 largely due depreciation. Additional information of the City of
Newton's capital assets can be found in Note 4, of the Notes to Financial Statements, on pages A-38 to A-39. The Kansas Logistics Park, located in Newton, Kansas, is ideally situated to provide manufacturers an ideal
location from which to serve the wind energy industry. The goal of the park is to facilitate growth in the wind
industry by providing a valuable resource in overcoming the high costs of logistics and manufacturing. The
Kansas Logistics Park is located between interstates 35 and 135 and provides access to two Class 1 carriers
as well as the WATCO short line railroads. The central location enables original equipment manufacturers and
suppliers to minimize the burden of supplying the large components into the heart of the nation's wind resources.
Tindall Corporation will construct a new precast, pre-stressed manufacturing facility at the Kansas Logistics
Park, which will be dedicated to the manufacture of the company's new concrete wind tower base system. The
150,000- 200,000-sq.-ft., state-of-the-art facility will be the company's sixth and largest and at full capacity will
have more than 400 employees. The 132-foot concrete and steel cable tower designed to increase the height
of wind turbines. The prototype has been completed and unveiled during the American Wind Energy Association
conference and exhibition. The Atlas CTB is more than 140 feet in height, made from staves of concrete which
weigh in at 100,000 pounds. The tower contains more than 13 miles of steel cable and six miles of conduit.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the City's finances and to show the City's accountability for the money it receives. If you
have questions about this report or need additional financial information, contact the Office of Assistant City
Manager for Budget and Finance, at the City of Newton, 201 E 61h Street, Newton, Kansas 67114.
IV-8
STATEMENT OF NET POSITION
December 31, 2014
Business
Governmental Type Component
Activities Activities Total Units
ASSETS
Cash and investments $ 6,124,665 10,483,812 16,608,477 1,444,787
Due from other funds 1,875,345 1,875,345
Receivables:
Property taxes 6,102,802 6,102,802
Special assessment taxes 11,890,120 11,890,120
Sales tax 417,629 417,629
Franchise taxes 181,220 181,220
Accounts 378,118 1,702,138 2,080,256
Capital lease 6,078,400
Other 3,198,701 3,198,701
Internal balances (263,010) 263,010
Prepaid items 470,430 470,430
Inventory 135,181 144,951 280,132
Restricted assets:
Cash and investments 241,889 434,960 676,849 1,051,238
Other assets and deferred charges:
Joint venture investment 40,000 40,000
Capital assets:
Capital assets not being depreciated 25,309,573 11,569,963 36,879,536
Other capital assets, net of depreciation 41,155,245 45,481,984 86,637,229 2,066,371
Total Assets 95,342,563 71,996,163 167,338,726 10,640,796
DEFERRED OUTFLOWS OF RESOURCES
Debt refunding costs, net of amortization 538,580 581,600 1,120,180 581,600
LIABILITIES
Accounts payable and accrued expenses 2,057,666 267,442 2,325,108
Due to other funds 1,875,345 1,875,345
Accrued interest expense 422,600 156,300 578,900 88,208
Claims payable 23,900 23,900
Unearned revenues 330,245 78,443 408,688
Noncurrent liabilities
Due within one year 2,841,202 1,559,074 4,400,276 640,000
Due in more than one year 34,761,226 28,453,624 63,214,850 8,093,350
Total Liabilities 42,312,184 30,514,883 72,827,067 8,821,558
DEFERRED INFLOWS OF RESOURCES
Property taxes 6,102,802 6,102,802
NET POSITION
Net investment in capital assets 29,883,633 27,620,849 57,504,482 (6,979)
Restricted for:
Community development 378,210 378,210
Cemetery perpetual care 339,652 339,652
Debt service 528,849 434,960 963,809 963,030
Other purposes 115,837 115,837
Unrestricted 16,219,976 14,007,071 30,227,047 1,444,787
TOTAL NET POSITION $ 47,466,157 42,062,880 89,529,037 2,400,838
The accompanying notes are an integral part of this statement
IV-9
STATEMENT OF ACTIVITIES
Year Ended December 31,2014
Net (Expenses) Revenues and
Program Revenues Changes in Net Assets
Operating Capital Business

Charges for Grants and Grants and Governmental Type Component
Functions/Programs Expenses Services Contributions Contributions Activities Activities Totals Units
Primary Government:
Governmental Activities:
General government $ 2,748,317 309,320 - (2,438,997) (2,438,997)
Public safety 9,091,977 1,839,673 514,653 (6,737,651) (6,737,651)
Highway and streets 3,123,553 17,054 117,666 18,991 (2,969,842) (2,969,842)
Culture and recreation 3,301,952 363,347 1,537,437 (I ,40 I, 168) (1,401,168)
Airport 2,037,345 1,782,788 1,030,063 775,506 775,506
Public works 1,768,709 (I' 768, 709) (1,768,709)
Interest and fiscal charges 1,455,266 - - (I ,455,266) (I ,455,266)
Total Governmental Activities 23,527,119 4,312,182 632,319 2,586,491 p5,996,127) (15,996,127)
Business Type Activities:
Sewer 4,497,867 8,253,518 - - - 3,755,651 3,755,651
Sanitation 1,719,060 1,886,439 167,379 167,379
Waterworks 3,626,523 4,866,859 - - 1,240,336 1,240,336
Golf Course I 810 959 1,212,284 669107 - 70,432 70,432
IV-10
Total Business Type Activities 11,654,409 16,219,100 669,107 5,233,798 5,233,798

Total Primary Government $ 35,181,528 20,531,282 632,319 3,255,598 ( 15,996,127) 5,233,798 (I 0, 762,329)
Component Units:
Public Library System $ 777,919 21,608 - - (756,311)
Public Building Commission 460,624 - 333,189 97,800 - - ~29,635)
Total Component Units $ 1,238,543 21,608 333,189 97,800 - (785,946)
General Revenues
Taxes:
Property taxes and special assessments 7,010,541 7,010,541
Sales tax 5,084,012 5,084,012
Franchise taxes 1,641,767 - 1,641,767
Other 1,050,347 - 1,050,347
Property tax payments from the City of Newton - 716,789
Intergovernmental, not restricted to specific programs 643,094 - 643,094 156,482
Investment earnings 7,665 17 7,682 6,620
Other 194,311 194,311 48,995
Transfers 2,362,303 ~2.362,303)
17,994,040 (2,362,286) 15,631,754 928,886
Change in net position 1,997,913 2,871,512 4,869,425 142,940
Net Position, Beginning of the Year 45,468,244 39,191,368 84,659,612 2,257,898
Net Position, End of the Year $ 47,466,157 42,062,880 89,529,037 2,400,838

BALANCESHEET-GOVERNMENTALFUNDS
December 31, 2014
Street Other Total
Debt Capital Governmental Government
General Service Projects Funds Funds
ASSETS
Cash and investments $ 2,315,298 528,849 704,106 3,548,253
Due from other funds 4,367,508 465,783 4,833,291
Receivables:
Property tax 5,123,809 219,357 759,636 6,102,802
Special assessments 11,890,120 11,890,120
Sales tax 417,629 417,629
Franchise tax 181,220 181,220
Accounts receivable 378,118 378,118
Other 765,111 2,000,000 433,590 3,198,701
Inventory 70,083 70,083
Prepaid expenditures 469,527 903 470,430
Restricted Assets:
Cash 241,889 241,889
Total assets $ 14,018,220 14,638,326 2,675,990 31,332,536
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE (DEFICITS)

Liabilities
Accounts payable $ 809,441 1,162,894 73,602 2,045,937
Due to other funds 4,701,059 2,007,547 6,708,606
Unearned revenue 759 876 2,000,000 234,350 2,994,226
Total liabilities 1,569,317 2,000,000 5,863,953 2,315,499 11,748,769

Deferred inflows
Property and special assessment taxes 5,123,809 12,109,477 759,636 17,992,922
Total liabilities and deferred inflows 6,693,126 14,109,477 5,863,953 3,075,135 29,741,691
Fund Balance (deficit)

Nonspendable:
Prepaid items 469,527 903 470,430
Inventory 70,083 70,083
Restricted for:
Debt service 528,849 528,849
Perpetual care 339,652 339,652
Law enforcement 115,837 115,837
Assigned to:
Capital asset acquisition 4,051,023 465,783 4,516,806
Other purposes 135,056 271,123 406,179
Unassigned 2,669,488 (5,863,953) {2,040,736) {5,235,201)
Total fund balance 7,325,094 528,849 (5,863,953) {399,145) 1,590,845
Total liabilities, deferred inflows and fund balance $ 14,018,220 14,638,326 2,675,990 31,332,536
IV-11
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
December 31, 2014
Total Fund Balance- Governmental Funds $ 1,590,845
Amounts reported for governmental activities in the statement of net position are
different because:
Special assessments are not considered available to liquidate liabilities of

the current period, and are deferred in the funds. However, they are properly
recognized as revenue in the entity-wide statements as soon as the related
improvement has been completed. 11,890,120
Developer loans receivable are not considered available to liquidate liabilities

of the current period, and are deferred in the funds. However, they have been
recognized as a reduction in expenses in the entity-wide statements. 2,663,981
Capital assets used in governmental activities are not financial resources and
therefore, are not reported in the funds.
Cost $ 94,067,274
Accumulated depreciation (27 ,602,456) 66,464,818
Long-term liabilities are not due and payable in the current period and therefore,
not reported as liabilities in the funds.
General obligation bonds payable (35,908,447)
Bond issue premiums, net (734,018)
KDOT revolving loan payable (280,223)
Capital leases payable (197,077)
Compensated absences (482,663)
Deferred GO debt refunding costs, net 538,580
Accrued interest payable on bonds (422,600) (37,486,448)
Internal service funds are used by the City to charge the cost of certain
activities such as employee insurance and vehicle operating costs to
individual funds. The assets and liabilities of internal service funds are
included in governmental activities in the statement of net position.
Net position of internal service funds 3,181,192
Less property assets and long-term liabilities reported above (575,341)
Less amount to business type activities (263,010) 2,342,841
Total Net Position -Governmental Funds $ 47,466,157
IV-12
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

GOVERNMENTAL FUNDS
Year ended December 31,2014
Street Other Total

Revenues:
Taxes and special assessments $ 13,036,223 1,389,804 - 1,114,640 15,540,667
Intergovernmental 568,543 33,900 18,991 2,576,489 3,197,923
Licenses and permits 174,173 - - - 174,173
Charges for services 1,454,223 - - - 1,454,223
Fines, forfeitures and penalties 592,416 - - - 592,416
Use of money and property 7,480 - - 917,032 924,512
Other 66,005 113,317 - 1,213,502 1,392,824
Total revenues ~899,063 1,537,021 18,991 5,821,663 23,276,738
Expenditures:
Current:
General government 2,451,207 - - 131,565 2,582,772
IV-13
Public safety 8,666,840 - 43,512 8,710,352

Highway and streets 2,161,912 - - - 2,161,912
Culture and recreation 1,664,488 - - 1,233,761 2,898,249
Airport - - - 1,542,993 1,542,993
Capital outlay 1,677,596 - 717,165 2,671,598 5,066,359
Debt service:
Principal - 2,319,928 - - 2,319,928
Interest - 1,496,978 - - 1,496,978
Fees & commissions - 947 - - 947
Total expenditures 16,622,043 3,817,853 717,16~ 5,623,429 26,780,490
Excess (deficiency) of revenues
Over (under) expenditures (722,980) (2,280,832) (698,174) 198,234 (3,503,752)
Other financing sources (uses):
Transfers in 2,351,069 2,045,906 - 140,255 4,537,230
Transfers out (1,167,185) - ~1.007,742) {2.174,927)
1,183,884 2,045,906 - ~867,487) 2,362,303
Net change in fund balances 460,904 (234,926) (698,174) (669,253) (1,141,449)

Fund balance, beginning of the year 6,864,190 763,775 ~5.165,779) 270,108 2,732,294
Fund balance, end of the year $ 7,325,094 528,849 ~863,953) (399,145) 1,590,845

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Net Change in Fund Balance- Total Governmental Funds $ (1,141,449)
Amounts reported for governmental activities in the statement of activities are

different because:
Governmental funds report long-term receivables as deferred inflows of revenue. In the statement
of activities, revenue from these receivables are recognized in the year recorded 663,981
Governmental funds report capital outlays as expenditures. However, in the statement

of activities, the cost of these assets is allocated over their estimated useful lives and
reported as depreciation expense.
Capital outlay expenditures 3,297,650
Depreciation expense (2,31 0,676)
In the statement of activities, gains and losses from the sale of property assets are reported net
of accumulated depreciation. In the funds statements, only the proceeds from sale are
reported as a revenue source. Changes in net position differ by the remaining basis
of assets sold or disposed. (23,990)
Long-term debt principal transactions are reflected in the governmental fund statements as
expenditures and other financing sources. In the government wide statement, these
transactions are reported as changes in debt on the statement of net position and have
no effect on the statement of activities.
Principal payments 2,336,959
Debt proceeds - contributed to golf enterprise fund asset purchases (214,107)
In the statement of activities, interest is accreted on outstanding bonds, in the

governmental funds an interest expenditure is reported when due.
Change in accrued interest payable 36,000
Bond issue premiums and refunding costs amortized to interest expense in the current year 6,659
In the statement of activities, compensated absences are measured by the

amounts earned during the year. In the governmental funds, expenditures are
measured by the amount of financial resources used. The net change in compensated
absences is reported on the statement of activities. (26,200)
Special assessments are not considered available to liquidate liabilities

of the current period, and accordingly, are deferred in the governmental funds. They
are properly recognized as revenue in the statement of activities as soon as the
related improvement has been completed. (754,000)
individual funds. The revenues and expenses of internal service funds, net of the portion
allocated to business activities, are included in governmental activities in the statement of net position. 127,086
Changes in net position - Governmental Activities $ 1,997,913
IV-14
BUDGET AND ACTUAL- GENERAL FUND
Year Ended December 31, 2014
Variance
Budgeted Amounts With Final
Original Final Actual Budget
Revenues and other sources:
Taxes $ 12,219,717 12,219,717 13,011,913 792,196
Intergovernmental 432,000 432,000 564,338 132,338
Licenses and permits 173,350 173,350 174,173 823
Charges for services 1,516,750 1,516,750 1,461,940 (54,810)
Fines, forfeitures and penalties 530,350 530,350 592,416 62,066
Use of money and property 27,800 27,800 16,731 (11,069)
Other 24,075 24,075 45,121 21,046
Transfers in 2,142,142 2,142,142 2,147,555 5,413
Total revenues and other sources 17,066,184 17,066,184 18,014,187 948,003
Expenditures and other uses:
Current:
General government 3,057,268 3,057,268 2,453,141 604,127
Public safety 9,123,548 9,123,548 8,672,437 451,111
Highway and streets 2,055,080 2,055,080 2,173,483 (118,403)
Parks and cemeteries 1,248,938 1,248,938 1,683,194 (434,256)
Capital outlay 70,000 70,000 114,833 (44,833)
Transfers out 2,138,919 2,138,919 2,287,990 {149,071)
Total expenditures and other uses 17,693,753 17,693,753 17,385,078 308,675
Excess (deficiency) of revenues over (under)
expenditures and other uses (627,569) (627,569) 629,109 1,256,678
Budgetary fund balance, beginning 627,569 627,569 1,058,177 430,608
Budgetary fund balance, ending $ 1,687,286 1,687,286
Budget-to-GAAP Reconcilation
Sources/inflows of resources
Actual budgetary basis revenues and other sources $ 18,014,187
Differences - budget-to-GAAP
Revenue included in special revenue funds for budgetary reporting 224,068
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes (2,147,555)
Grant revenues reported as reimbursements for budget purposes 41,604
Accrued revenue is included in revenues for financial
reporting purposes but are not inflows of budgetary resources (233,241)
Total revenues as reported on the statement of revenues,

expenditures, and changes in fund balances - governmental funds $ 15,899,063
Uses/outflows of resources
Actual budgetary basis expenditures and other uses $ 17,385,078
Expenditures included in special revenue funds for budgetary reporting 1,613,687
Transfers to other funds are outflows of budget resources but
are not expenditures for financial reporting purposes (2,287,990)
Encumbrances are included in budget expenditures, but not for GAAP (135,055)
Prepaid expenditures are included as expenditures for budget
purposes but not for financial reporting purposes 4,719
Total expenditures as reported on the statement of revenues,
The accompanying notes are an integral part ofthis statement
IV-15
STATEMENT OF NET POSITION- PROPRIETARY FUNDS
December 31,2014
Governmental
Business-type Activities - Activities -
Ent~riseFunds Internal
Sewer Sanitation Waterworks Golf Course Total Service Funds
ASSETS
Current assets
Cash, including investments $ 3,353,525 6,807,283 323,004 10,483,812 2,576,382
Accounts receivable 917,198 224,006 556,108 4,826 1,702,138
Inventories 73,588 71,363 144,951 65,098
Total current assets 6,278,725 224,006 7,436,979 399,193 14,338,903 2,641,480
Noncurrent assets
Restricted cash 260,960 174,000 434,960
Capital assets
Property, plant and equipment,
net of accumulated depreciation 36,843,831 633,463 11,450,935 8,123,718 57,051,947 582,336
Total noncurrent assets 37,104,791 633,463 11,664,935 8,123,718 57,526,907 582,336
Total assets 43,383,516 857,469 19,101,914 8,522,911 71,865,810 3,223,816
Debt refunding costs, net of amortization 581,600 581,600
LIABILITIES
Current liabilities
Due to other funds 132.657 132,657
Accounts payable 79,192 45,381 77,050 12,150 213,773 11,730
Compensated absences 9,782 18,462 25,425 53,669 6,994
Unreported claims payable 23,900
Unearned Revenue 78,443 78,443
Current portion of long-term debt 638,041 411,033 510,000 1,559,074
Accrued interest expense 109,700 46,600 156,300
Total current liabilities 836,715 196,500 560,108 600,593 2,193,916 42,624

State revolving fund loans payable 12,237,540 2,693,335 14,930,875
Lease payable to Public Building Commission 6,150,000 6,150,000
General obligation bonds 5,172,324 2,200,425 7,372,749
Total noncurrent liabilities 17,409,864 4,893,760 6,150,000 28,453,624
Total liabilities 18,246,579 196,500 5,453,868 6,750,593 30,647,540 42,624
NET POSITION
Net invesment in capital assets 18,795,926 633,463 6,146,142 2,045,318 27,620,849 582,336
Restricted for debt service 260,960 174,000 434,960
Unrestricted 6,080,051 27,506 7,327,904 308,600 13,744,061 2,598,856
Total net position $25,136,937 660,969 13,648,046 2,353,918 41,799,870 3,181,192
Net position per fund statements $ 41,799,870

Amounts reported for business-type
activities in the statement of net position
are different because certain internal
service assets/liabilities are included
with business-type activities 263,010
Net position of business-type activities $ 42,062,880
IV-16
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
-PROPRIETARY FUNDS
Governmental
Ente!l!rise Funds Internal
Operating revenues:
Charges for goods and services $ 8,220,495 1,861,420 4,789,547 1,144,956 16,016,418 3,579,900
Other 33,023 25,019 77,312 67,328 202,682
Total operating revenues 8,253,518 1,886,439 4,866,859 1,212,284 16,219,100 3,579,900
Operating expenses:
Personal services 1,532,369 925,979 1,556,184 645,332 4,659,864 2,086,589
Contractual services 1,026,005 384,941 1,181,128 468,664 3,060,738 769,916
Commodities 59,988 34,833 155,886 177,749 428,456 594,516
Vehicle operating 41,904 192,879 56,171 290,954 40,155
Depreciation and amortization 1,304,722 180,790 429,168 346,714 2,261,394 46,915
Total operating expenses 3,964,988 1,719,422 3,378,537 1,638,459 10,701,406 3,538,091
Operating income 4,288,530 167,017 1,488,322 (426,175) 5,517,694 41,809
Non-operating revenues (expenses):
Gain (loss) on disposal of property 3,650 13,079 10,442 (119,700) (92,529)
Interest income 10 7 17
Interest expense !497,772) (224,625) !52,800) !775,197)
Income before capital contributions
and transfers 3,794,408 180,096 1,274,149 (598,668) 4,649,985 41,809
Capital contributions 669,107 669,107
Transfers in 7,000 7,000 116,620
Transfers out ! I ,468,589) (175,752) (841,582) (2,485,923)
Change in net position 2,332,819 4,344 432,567 70,439 2,840,169 158,429
Net position, beginning of the year 22,804,118 656,625 13,215,479 2,283,479 38,959,701 3,022,763
Net position, end of the year $ 25,136,937 660,969 13,648,046 2,353,918 41,799,870 3,181,192
Increase in fund equity per funds $ 2,840,169

Some amounts reported for business-
type activities in the statement of net
position are different because certain
internal service expenses are included with
business-type activities 31,343
Change in net position of business-
type activities $ 2,871,512
IV-17
STATEMENT OF CASH FLOWS
-PROPRIETARY FUNDS
Governmental
Ente!}!rise Funds Internal
Cash flows from operating activities:
Cash received from customers $ 8,24I,l69 1,883,352 4,776,123 1,163,640 16,064,284 3,579,900
Cash payments to suppliers for goods
and services (I ,098,828) (612,927) (I ,4 72,663) (648,995) (3,833,413) (1,404,284)
Cash payments to employees for services (I ,528,993) (927,218) (I ,559,086) (648,149) (4,663,446) (207,955)
Cash payments for health benefits (I ,862,569)
Other operating revenues 33,023 77,312 67,328 177,663
Net cash provided by operating
activities 5,646,371 343,207 I,821,686 ~66,176) 7,745,088 105,092
Cash flows from non-capital
financing activities:
Transfers in 7,000 7,000 II6,620
Transfers out (I ,468,589) (175,752) (841,582) (2,485,923)
Due to (from) other funds ~I ,I83,000) 132,657 (I ,050,343)
Net cash used for non-capital
financing activities {2!644,589) ~43,095) (841,582) (3,529,266) II6,620
Cash flows from capital and
related financing activities:
Proceeds from selling capital assets 3,650 31,860 12,167 47,677
Payments for capital assets (9,693,394) (504,988) (21,822) (I 0,220,204)
Long-term debt proceeds 6,444,148 6,444,148
Long-term debt payments:
Principal paid (693,598) (488,247) (1,181 ,845)
Interest and fees paid ~444.872) (225,059) ~669,931)
Net cash used for capital and

related financing activites ~4,384,066) ~473,128) ~722,961) ~5.580,155)
Cash flows from investing

activities:
Interest income received 10 7 17
Net cash from investing activites 10 7 17
Net increase (decrease) in cash (1,382,284) (173,016) 257,153 (66,169) (I ,364,3I6) 221,712
Cash, beginning of the year 4,996,769 173,016 6,724,130 389,173 12,283,088 2,354,670
Cash, end of the year $ 3,614,485 6,981,283 323,004 10,918,772 2,576,382
IV-18
STATEMENT OF CASH FLOWS (CONTINUED)
- PROPRIETARY FUNDS
Governmental
Enterprise Funds Internal
Sanitation Waterworks GolfCourse Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 4,288,530 167,017 1,488,322 (426,175) 5,517,694 41,809
Adjustments to reconcile operating

income to net cash:
Changes in operating assets and liabilities:
Accounts receivable 20,674 (3,087) (13,424) 28,351 32,514
Inventories (38,900) 10,864 (28,036) 34,628
Prepaid expenses 3,000 3,000
Accounts payable and accrued expenses 32,445 (1,513) (46,480) (25,930) (41,478) (33,460)
Claims payable 15,200
Total adjustments 1.357.841 176.190 333,364 359.999 2.227.394 63.283
Net cash provided by (used in) operating

activities $ 5.646.371 343.207 1.821.686 (66.176) 7,745,088 105.092
NONCASH FINANCING ACTIVITIES

Capital assets acquired with contributed capital $ 214,107 214,107
Long-term debt retirements though capital
contributions 455,000 455,000
$ 669,107 669,107
IV-19
STATEMENT OF FIDUCIARY NET POSITION

- POLICE & FIRE PENSION FUND
December 31,2014
ASSETS
Cash and investments $ 85,705
LIABILITIES
NET POSITION
Held in trust for employee
pension benefits $ 85,705
IV-20
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
Additions:
Employer contributions:
Police $
Fire
Investment income:
Interest earned 8
Total additions 8
Deductions:
Benefits paid 4,774
Total deductions 4,774
Net increase (decrease) (4,766)
Net position held in trust for pension benefits

Beginning of the year 90,471
End of the year $ 85,705
IV-21
COMBINING STATEMENT OF NET POSITION
COMPONENT UNITS
December 31, 2014
Public Public
Library Building
System Commission Total
ASSETS
Cash and investments $ 1,444,787 1,444,787
Restricted assets:
Cash and investments 1,051,238 1,051,238
Other Receivables:
Capital lease receivable 6,078,400 6,078,400
Capital assets:
Other capital assets, net of depreciation 64,582 2,001,789 2,066,371
Total Assets 1,509,369 9,131,427 10,640,796
LIABILITIES
Accounts payable
Accrued interest expense 88,208 88,208
Noncurrent liabilities:
Due within one year 640,000 640,000
Due in more than one year 8,093,350 8,093,350
Total Liabilities 8,821,558 8,821,558
NET POSITION
Net investment in capital assets 64,582 (71,561) (6,979)
Restricted for:
Debt service 963,030 963,030
Unrestricted 1,444,787 1,444,787
Total Net Position $ 1,509,369 891,469 2,400,838
IV-22
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED DECEMBER 31, 2014
Public Public
Library Building
Program expenses
Personal services $ 460,802 460,802
Contractual services 93,706 93,706
Commodities 199,110 1,856 200,966
Interest and fiscal charges 295,506 295,506
Depreciation 24,301 163,262 187,563
Total program expenses 777,919 460,624 1,238,543
Program revenues
Capital grants and contributions 97,800 97,800
Operating lease payments from other governments 333,189 333,189
Charges for services 21,608 21,608
Total program revenues 21,608 430,989 452,597
Net program (expense) revenue (756,311) (29,635) (785,946)
General Revenues
Property taxes 716,789 716,789
Interest 5,469 1,151 6,620
Other 48,995 48,995
Total general revenues 841,843 87,043 928,886
Increase (decrease) in net position 85,532 57,408 142,940

Net position, beginning of the year 1,423,837 834,061 2,257,898
Net position, end of the year $ 1,509,369 891,469 2,400,838
IV-23
City of Newton, Kansas City of Newton, Kansas
NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS
December 31,2014 December 31, 2014
!. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reporting Entity - The City of Newton was originally incorporated in 1871 under the laws of the State of Measurement Focus. Basis of Accounting. and Financial Statement Presentation- The government-wide
Kansas. The City operates under a commission-manager form of government and provides services to its financial statements are reported using the economic resources measurement focus and the accrual basis of
citizens in the areas of public safety, public works, community planning and development, water, accounting, as are the proprietary funds and fiduciary fund financial statements. Revenues are recorded
wastewater and sanitation utilities, recreation, cultural and social assistance and municipal facilities. when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and
Accounting principles generally accepted in the United States of America require that these financial similar items are recognized as a revenue as soon as all eligible requirements imposed by the provider
statements present the City of Newton (the primary government) and its component units. The component have been met.
units described below are included in the City's reporting entity because of their operational significance
or financial relationships with the City. Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
Discretely Presented Component Units measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
The Newton Public Library, although a separate legal entity, is reported as a discrete component unit. considers revenues to be available if they are collected within 60 days of year end. Expenditures are
The Library is governed by a Board, the appointees of which are approved by the City. The Library is generally recorded when a liability is incurred, as under accrual accounting. However, debt service
not a separate taxing entity under State statutes and the City levies taxes for the Library operation, expenditures, as well as expenditures related to changes in compensated absences, are recorded only when
which represents a significant portion of its total revenues. the payment is due.
The Newton Public Building Commission INPBC) was formed under Kansas statutes during 2005 to Property and sales taxes, franchise taxes, licenses and fees and investment income associated with the
IV-24
provide debt financing for City facilities. The NPBC is a separate legal entity, governed by a Board current fiscal period are all considered to be susceptible to accrual and have been recognized as revenue of
which is appointed by the City Commission. The NPBC is included as a component unit because of the current year. Property taxes and special assessments receivable not due in the current year are not
the City's ability to impose its will on Commission operations. susceptible to accrual and are recorded as deferred revenue. All other revenue items are considered to be
measurable and available when cash is received.
Separate financial statements of the component units are not issued.
Fund Equity- Beginning with fiscal year 2011, the City implemented Governmental Accounting
Related Organization - Newton Housing Authority is a related organization that is not included in the Standards Board (GASB) Statement No. 54, "Fund Balance Reporting and Governmental Fund Type
financial reporting entity. The Authority was created to administer public housing programs authorized by Definitions." This Statement provides more clearly defined fund balance categories to make the nature
the United States Housing Act of 1937, as amended. Revenues consist of housing assistance payments and extent of the constraints placed on a government's fund balances more transparent. The following
from the U.S. Department of Housing and Urban Development and rent received from eligible low income classifications describe the relative strength of the spending constraints:
tenants.
Nonspendable fund balance--amounts that are not in spendable form (such as inventory) or are
Government-wide and Fund Financial Statements- The government-wide financial statements (the required to be maintained intact.
statement of net position and the statement of activities) report information on all of the non-fiduciary Restricted fund balance--amounts constrained to specific purposes by their providers (such as
activities of the primary government and its component units. The effects of nearly all interfund activity grantors, bondholders, and higher levels of government), through constitutional provisions, or by
have been removed from these statements. Governmental activities, which normally are supported by enabling legislation.
taxes and intergovernmental revenues, are reported separately from the business-type activities, which rely
to a significant extent on fees and charges for support. Likewise, the primary government is reported Committed fund balance--amounts that can be used only for specific purposes determined by a formal
discretely from the legally separate component unit for which the government is financially accountable. action of the City Commission. The City Commission is the highest level of decision-making
authority for the City. Commitments may be established, modified, or rescinded only through
The statement of activities demonstrates the degree to which the direct expenses of a given function or ordinances approved through a majority vote by a quorum of the Commission.
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a Assigned fund balance--amounts the City intends to use for a specific purpose as directed by the City
specific function or segment. Program revenues include (I) charges to customers who purchase, use, or Commission. Fund balances segregated for capital asset acquisition and other special revenue fund
directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants purposes are included in assigned fund balance.
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported Unassigned fund balance--amounts that are available for any purpose. Positive amounts are reported
as general revenues. only in the general fund.
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally
available, the City considers restricted funds to have been spent first. When an expenditure is incurred for are followed in both the government-wide and enterprise fund financial statements to the extent that those
which committed, assigned, or unassigned fund balances are available, the City considers amounts to have standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board
been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, (GASB). Governments have the option offollowing subsequent private-sector guidance for their
unless the City Commission has provided otherwise in its commitment or assignment actions. business-type activities, subject to the same limitation. The City has elected not to follow subsequent
private-sector guidance.
The City has established a minimum fund balance policy for maintaining fund balances in governmental
funds. The City strives to maintain a minimum unassigned fund balance of at least 15% of budgeted As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
annual expenditures in the General fund. statements. Exceptions to the rule are payments in lieu of taxes and other charges between the City's
enterprise funds and various other functions of the city. Elimination of these charges would distort the
The following major governmental funds are reported: direct costs and program revenues reported in these other functions.
The General Fund is used to account for all financial resources except those required to be accounted for
in another fund. Amounts reported as program revenues include (I) charges to customers or applicants for goods, services
or fees, (2) operating grants and contributions, and (3) capital grants and contributions, including
The Debt Service Fund is used to account for the accumulation of resources for, and the payment of,
contribution through special assessment financing. Internally dedicated resources and all taxes are
interest and principal on general long-term debt, including special assessments which are general
reported as general revenues.
obligations of the City.
Street Capital Project Fund is used to account for financial resources to be used for the acquisition or Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
IV-25
construction of major capital improvements relating to the construction of city streets through capital grant revenues and expenses generally result from providing services and producing and delivering goods in
funding and issuance of general obligation debt. connection with the proprietary funds' ongoing operations. Operating revenues of the proprietary funds
are charges to customers for sales and services. Operating expenses for enterprise and internal service
The following major enterprise funds are reported: funds include the cost of sales and services, administrative expenses, and depreciation of capital assets.
All revenues and expenses not meeting these criteria are reported as non-operating revenues and expenses.
The Sewer Fund accounts for the operation and maintenance of the City's sewer system, including the
wastewater treatment facility and sewer infrastructure.
Cash and Investments - State statutes authorize the City to invest in temporary notes and no-fund warrants
The Sanitation Fund accounts for the operations of the City's trash collection and recycling utility. of the City, time deposits, United States Treasury bills or notes, bonds of municipalities of the State of
Kansas, repurchase agreements, and the Kansas Municipal Investment Pool.
The Waterworks Fund accounts for operation of the water utility, providing an adequate, quality supply of
water to the City.
Cash resources of the individual funds are combined to form a pool of cash and temporary investments,
The Golf Course Fund accounts for the activities of the Sand Creek Station Golf Course. The course was which is managed by the Director of Finance. The pool has the general characteristics of demand deposit
completed and began operations as a public course during the summer of 2006. accounts, in that, each fund may deposit additional cash at any time and also may withdraw cash at any
time without prior notice or penalty. Investments of the pool consist entirely of certificates of deposit and
funds held in the Kansas Municipal Investment Pool. All investments are reported at their fair values
The City also reports the following additional fund types:
which is identical to original cost.
Internal Service Funds are used to account for the financing of goods and services provided by one fund to
other funds of the City on a cost reimbursement basis and to account for the City's self-insurance activities Each fund type's portion of the pool is displayed on the combined balance sheet as cash and investments.
relating to employee health coverage. Earnings of the pool are allocated to the investing fund, unless specifically designated. Investments are
The Pension Trust Fund is used to account for the activities of the City's Police and Fire Pension fund stated at cost, which is the equivalent of fair value for all investments held during 2014.
which was established in 1947 to provide benefits for police and fire personnel who retired prior to the
City's participation in the State of Kansas Public Employees Retirement System. This plan will end with
the deaths of the few remaining beneficiaries of the plan.
December 31, 2014 December 31,2014
Property Taxes Receivable -In accordance with governing State statutes, property taxes levied during the Capital Assets - Capital assets are reported in the applicable governmental or business-type activities
current year are a revenue source to be used to finance the budget of the ensuing year. Taxes are assessed columns in the government-wide financial statements. Capital assets are recorded at cost or estimates of
on a calendar year basis and become a lien on the property on November I of each year. The County original cost and gifts at fair value at the date of the gift. The City capitalizes purchases of assets with a
Treasurer is the tax collection agent for all taxing entities within the County. Property owners have the cost of $1,000 or more and an estimated useful life in excess of one year. The cost of normal maintenance
option of paying one-half or the full amount of the taxes levied on or before December 20 during the year and repairs that do not add to the value of the asset or materially extend the life of an asset are not
levied with the balance to be paid on or before May 10 of the ensuing year. State statutes prohibit the capitalized.
County Treasurer from distributing taxes collected in the year levied prior to January I of the ensuing
year. Consequently, for revenue recognition purposes, the taxes levied during the current year are not due Depreciation of property, plant and equipment is calculated using the straight-line method over the
and receivable until the ensuing year. At December 31, such taxes are a lien on the property and are following estimated useful lives:
recorded as taxes receivable with a corresponding amount recorded as deferred revenue on the balance
sheet of the appropriate funds. It is not practicable to apportion delinquent taxes held by the County Buildings 30 to 50 years
Treasurer at the end of the year and further, the amounts thereof are not material in relationship to the Improvements other than buildings 15 to 30 years
financial statements taken as a whole. General infrastructure 30 to 50 years
Machinery 5 to 15 years
Intergovernmental and Other Revenues - Recognized State-shared taxes represent payments received Office equipment and furniture 5 to 12 years
during the current fiscal period. State statutes specify distribution dates for such shared taxes and, Water treatment plant 30 years
consequently, for revenue recognition purposes, amounts collected and held by the State on behalf of the Water and sewer mains 30 to 50 years
City at year-end are not due and receivable until the ensuing year.
IV-26
Compensated Absences- The City's policies regarding vacation and sick leave permit employees to
Federal and State grant aid is reported as revenue when the related reimbursable expenditures are incurred. accumulate a maximum of I 0 to 18 days of vacation leave (depending on the number of years of
Unrestricted aid is reported as revenue in the fiscal year the entitlement is received. continuous service) and a maximum accumulation of90 days sick leave. Policies require the cancellation
of accumulated sick leave on date of employment termination. The liability for accrued vacation leave of
Licenses, fees, fines, forfeitures, charges for services and other revenues are generally not susceptible to the governmental fund types is only recorded in the government-wide statements, representing the City's
accrual and are recorded when received in cash. commitment to fund such costs from future operations. Proprietary fund types accrue vacation leave
benefits in both the government-wide and fund financial statements. The liability is based on current
Proprietary Fund Revenues - Revenue is recorded in proprietary funds as billed to customers on a cycle salary costs and the vested portion of accumulated benefits.
basis. Residential and commercial customers are billed monthly. Within the City's utility funds, an
estimated amount has been recorded for services rendered but not yet billed at the close of the year. Cash Flows - For purposes of the statement of cash flows, the City considers all investments by funds in
the City's cash and investment pool (including restricted assets) to be a cash equivalent.
Special Assessments - In accordance with State statutes, projects financed in part by special assessments
are financed through issuance of general obligation bonds of the City and are retired from the bond and Estimates - The preparation of financial statements in conformity with accounting principles generally
interest fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the accepted in the United States of America requires management to make estimates and assumptions that
appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.
the bond and interest fund. The special assessments receivable are not recorded as revenue in the fund
financial statements when levied against the respective property owners as such amounts are not available Budgetary Principles -The City is required by State statute to adopt annual budgets for the general fund,
as a resource to finance current year operations. special revenue funds, debt service fund, enterprise funds, and internal service funds (unless specifically
exempted by statute) on or before August 25 for the ensuing year. Specific funds exempted from legally
Inventories - Inventories that benefit future periods are recorded as expenditures or expenses as consumed. adopted budgetary requirements include:
Inventories are stated at cost, as determined by the first-in, first-out method.
Special Revenue Funds Internal Service Funds
Community Development Health Benefits Risk
Restricted Assets - Certain proceeds of enterprise fund revenue bonds, as well as certain resources set
Management
aside for their repayment, are classified as restricted assets on the balance sheet because their use is
limited by applicable bond covenants. Controls over spending in funds which are not subject to legal budgets are maintained by the use of
internal spending limits established by management. Total expenditures by a fund constitute the legal
Certain assets of special revenue funds are classified as restricted assets on the balance sheet because their level of control. Expenditures may not exceed appropriations at this level. Management may transfer
use is limited by applicable grant agreements. appropriations between budget lines within the same fund without approval of the governing body.
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2. DEPOSITS AND INVESTMENTS (Continued)

State statutes permit original budgets to be increased for " ... previously unbudgeted increases in revenue Custodial credit risk- deposits
other than ad valorem property taxes." The City must first publish a Notice of Hearing to amend the
budget. Ten days after publication, a Public Hearing is held and the governing body may amend the Custodial credit risk is the risk that in the event of a bank failure, the Government's deposits may not be
budget at that time. Budgetary data in the financial statements represent the original budgeted amounts for returned to it. State statutes require the Government's deposits in financial institutions to be entirely
all funds. covered by federal depository insurance or by collateral held under a joint custody receipt issued by a bank
within the State of Kansas, the Federal Reserve Bank of Kansas City, or the Federal Home Loan Bank of
Budgetarv Basis of Accounting - Applicable Kansas statutes require the use of an encumbrance system as Topeka, except during designated "peak periods" when required coverage is 50%. The City of Newton has
a management control technique to assist in controlling expenditures. For budgetary purposes, not designed peak periods as defined above. All deposits were legally secured at December 31, 2014.
encumbrances of the budgeted governmental fund types, representing purchase orders, contracts and other
commitments, are reported as a charge to the current year budget. All unencumbered appropriations lapse At December 31, 2014, the City's carrying amount of deposits was $3,464,718 and the bank balances
at the end of the year, except for capital project funds which are carried forward until such time as the totaled $3,506,745. Of the bank balance, $600,550 was covered by federal depository insurance and
project is completed or terminated. Encumbered appropriations at year end are carried forward. For $2,906,195 was collateralized with securities held by the pledging financial institutions' agents in the
budgetary purposes, revenues are recognized on a cash basis in budgeted governmental fund types and not City's name.
on the modified accrual basis as required by generally accepted accounting principles. Accordingly, the
actual data presented in the budgetary comparison statements differs from the data presented in the Custodial credit risk - investments
financial statements prepared in accordance with accounting principles generally accepted in the United
States of America (GAAP). For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the
Government will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. State statutes require investments to be adequately secured. At December
IV-27
2. DEPOSITS AND INVESTMENTS 31,2014, the Government had invested $13,896,560 in the State's municipal investment pool. The fair
value ofthe City's position in the pool is the same as the value of the pool shares.
As of December 31,2014, the City had the following investments and maturities: The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board
is comprised of the State Treasurer and four additional members appointed by the State Governor. The
Maturity- board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations
Fair Less than of, or obligations that are insured as to principal and interest, by the U.S. government or any agency
Investment Type Value I Year Rating thereof, with maturities up to four years. No more than ten percent of those funds may be invested in
mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas
Kansas Municipal Investment Pool $13,896,560 13,896,560 S&PAAAf/SI+ banks or with primary government securities dealers.
K.S.A. 9-140 I establishes the depositories which may be used by the Government. The statute Investments of Discreetly Presented Component Units
requires banks eligible to hold the Government's funds have a main or branch bank in the county in I. Newton Public Building Commission held no investments at December 31,2014.
which the Government is located, or in an adjoining county if such institution has been designated as 2. Newton Public Library investments consist of$571,000 in collateralized bank deposits at
an official depository, and the banks provide an acceptable rate of return on funds. In addition, K.S.A. December 31,2014.
9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The City has no
other policies that would further limit interest rate risk. Financial Statement Presentation
Cash and investments, including cash on hand, is shown in the accompanying financial statements as
K.S.A. 12-1675limits the Government's investment of idle funds to time deposits, open accounts, and follows:
certificates of deposit with allowable financial institutions; U.S. government securities; temporary
notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The Primary Component
City has no investment policy that would further limit its investment choices. The rating of the City's Government Units Total
investments is noted above. Statement of net position
Concentration of credit risk Cash and investments $ 16,608,477 1,444,787 18,053,264
Restricted cash 676,849 1,051,238 1,728,087
State statutes place no limit on the amount the Government may invest in any one issuer as long as the Statement of fiduciary net position
investments are adequately secured under K.S.A. 9-1402 and 9-1405. As noted in the schedule above, the
Cash and investments 85,705 85,705
City's investments as of December 31,2014, consisted entirely of amounts held by the State's municipal
investment pool. $ 17,371,031 2,496,025 19,867,056
3. CAPITAL ASSETS 3. CAPITAL ASSETS (Continued}
Capital asset activity of the primary government for the year ended December 31, 2014, was as follows: Capital asset activity of component units for the year ended December 31, 2014, was as follows:
Balance Balance Balance Balance

January I Additions Retirements December 31 January I Additions Retirements December 31
Governmental activities: Newton Public Library:
Capital assets, not being depreciated: Capital assets, being depreciated
Land $ 4,111,721 4,111,721 Equipment $ 525,082 39,047 564,129
Construction in progress 18,427,892 2,769,960 21,197,852 Less accumulated depreciation (475,246} (24,301) (499,547)
Total capital assets, not being depreciated 22,539,613 2,769,960 25,309,573 Total capital assets, net of depreciated $ 49,836 14,746 64,582
Capital assets, being depreciated:
Buildings and structures 21,343,635 21,343,635 Newton Public Building Commission:
General infrastructure 36,794,81 I 36,794,811 Capital assets, being depreciated:
Equipment 10,493,533 527,690 (40!,968) 10,619,255 Building and structures $ 2,620,51! 346,760 2,967,271
General infrastructure 512,809 512,809
68,631,979 527,690 (401,%8) 68,757,701
Less accumulated depreciation: 3,133,320 346,760 3,480,080
Less accumulated depreciation (I ,315,029) (163,262} (1,478,291)
IV-28
Buildings and structures (7,132,435} (623,288} (7,755,723)

Total capital assets, being depreciated $ 1,818,291 183,498 2,001,789
General infrastructure (10,379,843} (973,914} (II ,353, 757)
Equipment (8,1 10,565} (760,389) 377,978 (8,492,976)
Depreciation expense was charged to functions of the primary government, as follows:
(25,622,843) (2,357 ,591) 377,978 (27,602,456)
Total capital assets, being depreciated 43,009,136 (I ,829,90 I) (23,990) 41,155,245 Governmental activities:
Total capital assets, net of depreciation $ 65,548,749 940,059 (23,990) 66,464,818 General government $ 162,529
Public safety 455,942
Business-type activities: Highway and streets 977,283
Capital assets, not being depreciated: Cultural and recreation 214,514
Land $ 1,082,579 !,082,579 Airport 500,408
Construction in progress !,034,546 9,452,838 10,487,384 Depreciation on capital assets held by internal service funds,
Total capital assets, not being depreciated 2,117,125 9,452,838 11,569,963 charged to functions based on usage 46,915
Capital assets, being depreciated: Total depreciation expense- government activities $ 2,357,591
Buildings and improvements 19,515,603 19,515,603
Equipment 8,971,045 981,474 (730,323) 9,222,196 Business-type activities:
Utility service lines and infrastructure 50,976,387 50,976,387 Water $ 429,168
79,463,035 981,474 (730,323) 79,714,186 Sewer !,304,722
Sanitation !80,790
Less accumulated depreciation:
Golf Course 346,714
Buildings and improvements (4,399,381) (488,977) - (4,888,358)
Total depreciation expense- business-type activities $ 2,261,394
Equipment (6,192,549) (573,983) 590,116 (6,176,416)
Utility service lines and infrastructure (21,968,994) (1,198,434) (23,167,428)
590,116 (34,232,202) Component Units:
(32,560,924) (2,261 ,394)
Newton Public Library $ 24,301
Total capital assets, being depreciated 46,902,11! (I ,279,920) (140,207) 45,481,984
Newton Public Building Commission 163,262
Total capital assets, net of depreciation $ 49,019,236 8,172,918 (140,207) 57,051,947 $
Total depreciation expense - component units 187,563
4. LONG-TERM DEBT 4. LONG-TERM DEBT (Continued)
The following is a summary of changes in long-term debt of the City for the year ended December 31, 2014: General Obligation Bonds -General obligation bonds are serial bonds to be retired through calendar year
Payable from Governmental Actvities 2033. At December 31, 2014, the outstanding general obligation bonds consisted of the following:
General KDOT
Interest Outstanding Original
Obligation Revolving Capital Compensated
Bonds Loan Rates 12/31/14 Amount
Leases Absences Total
Primary Government: Airport refunding 5.250. 6.000 $ 335,000 515,000
Outstanding January I, 2014 $ 38.129,714 378,885 456.463 38,965.062 Internal improvements, 2006-A 3.800. 5.000 2,185,000 9,515,000
Additions 214,107 482,663 696.770 Airport improvements, 2006-B 5.375. 7.000 265,000 1,100,000
Retirements (2.221.267) (98,662) (17,030) (456,463) (2. 793.422) Internal improvements, 2007-A 3.500. 5.500 1,705,000 2,300,000
Principal outstanding 35.908,447 280,223 197,077 482,663 36,868.410 Internal improvements, 2008-A 3.500. 4.500 10,225,000 12,600,000
Add bond premium, net 734,018 734,018 Internal improvements, 2008-B 4.550 . 6.000 345,000 710,000
Outstanding December 31, 2014 36,642.465 280,223 197,077 482,663 37,602,428 Internal improvements, 2009 3.000. 5.000 4,900,000 6,815,000
Due within one year 2,226,197 102,440 29,902 482,663 2,841,202 Internal improvements/Refunding, 20 10-A 2.000. 4.000 6,075,000 7,800,000
Taxable GO Bonds, 2010-B 4.500 . 6.250 2,000,000 2,000,000
Due in more than one year $ 34,416,268 177,783 167,175 34,761,226
- Internal Improvement, 20 I 0-C 2.000. 4.375 2,690,000 2,935,000
GO Refunding, 2012-A 2.000 • 2.100 3,460,000 3,570,000
Pa~able from Business-T:r:ee Activities
IV-29
Internal improvements/Refunding, 20 13-A 2.000 • 4.000 9,470,000 9,595,000

General KDHE Golf Course
$ 43,655,000
Revenue Obligation Revolving Capital
Bonds Bonds Fund Loans Lease Total
Remaining debt service requirements for general obligation bonds will be paid from the bond and interest
Primary Government:
fund with future property tax revenues, special assessment taxes, and enterprise funds. A portion of the
Outstanding January I, 2014 $ 115,000 8,160,286 9,815.108 7,115,000 25.205.394
general obligation bond principal represents special assessment debt with government commitment to pay the
Additions 6,444,149 6,444,149
principal and interest if the special assessments are not paid by the applicable property owners. Annual debt
Retirements (115,000) (413,733) !653,112) !455,000) ! I ,636,845) service requirements to maturity for general obligation bonds are as follows:
Outstanding December 31, 2014 7,746,553 15,606,145 6,660,000 30,012.698
Due within one year 373,804 675,270 510,000 1,559,074 Pa~able from Government Act. Pa:z:able from Business Act.
Due in more than one year $ 7,372,749 14,930,875 6.150,000 28.453,624 Princieal Interest Princieal Interest
2015 $ 2,226,197 1,378,183 373,803 312,384
2016 2,398,386 1,303,799 391,614 299,636
2017 2,523,272 1,133,703 406,728 285,965
2018 2,613,230 1,048,662 421,770 271,445
2019 2,618,656 956,163 441,344 255,795
2020-2024 13,167,419 3,463,542 2,477,581 1,003,164
2025-2029 9,082,699 1,328,374 2,727,301 437,425
2030-2033 1,278,588 93,725 506,412 51,562
$ 35,908,447 10,706,151 7,746,553 2,917,376
December 3 I, 20 I 4 December 31,2014
4. LONG-TERM DEBT (Continued) 4. LONG-TERM DEBT (Continued)
Advance Refunding- the City's refunding issues that have underlying refunded debt outstanding at December
31, 2014, consisted of the following: Future principal payments on the Waterworks revolving loans are scheduled as follows:
Defeased Debt 2015 $ 310,720

Refunding Final Balance 2016 323,082
~ Description of Issues Refunded Maturing 12/31/14 2017 335,938
2018 349,31 I
2012 Internal improvements, 2004 2024 $ 3,230,000
2013 Internal improvements, 2006-A 2026 4,930,000 2019 286,769
2020-2024 673,656
KDOT Revolving Loan- During 2006, the City received a $1,070,150 revolving loan from the Kansas 2025-2029 724,579
Department of Transportation (KDOT) to provide funding for certain street improvements. Terms of the loan $ 3,004,055
agreement require the loan to be repaid as a general obligation of the City over a I 0-year term. The loan is
payable in semi-annual installments with an annual interest rate of3.83%. Sewer Fund Revolving Loans- Consists of three loans with KDHE to provide funding for City
wastewater treatment improvements. Terms of the individual loans are as follows:
Future principal payments on these loans are scheduled as follows:
Year of Interest 12/31/14
2015 102,440 Inception Rate Term Balance
IV-30
2016 106,364
2017 2002 3.03% 20 years $ 522,701
71,419
2008 2.85% 20 years 5,635,240
$ 280,223
2014 2.83% 20 years 6,444,148
$ 12,602,089
Revenue Bonds- All outstanding revenue bonds in the Waterworks fund, which are secured by revenues
derived from operations, were retired during the year ended December 3 I, 2014. Future principal payments on these loans are scheduled as follows:
Water Fund Revolving Loans- Consists of four loans with the Kansas Department of Health and 2015 $ 364,550
Environment (KDHE) to provide funding for City waterworks improvements. 2016 376,037
2017 385,998
Terms of the individual loans are as follows: 2018 397,191
2019 408,709
2020-2024 2,075,905
Inception Rate Term Balance
2025-2029 2,149,551
1999 4.17% 20 years $ 621,479
Total for amortizing loans from prior years 6,157,941
2002 4.17% 20 years 500,581
Add 2014 borrowings for construction in
2009 3.37% 20 years 1,398,535
progress (maximum $24,420,000) 6,444,148
2009 3.75% 20 years 483,460
$ 12,602,089
$ 3,004,055
2014 Sewer Revolving Loan - The City signed a loan agreement with the Kansas Department of Health &
Environment on November I, 2013, to provide a revolving loan for wastewater treatment plant
improvements. The maximum borrowing authority under the terms of the agreement loan is $24,420,000. If
the entire amount of the loan is borrowed during construction, the loan agreement calls for semi-annual
payments of$803,680 beginning September I, 2015, and ending March I, 2035. At December 31,2014,
$6,444,148 had been drawn from the available loan proceeds
December 3 l, 20 l 4 December 3 l, 2014
Debt service requirements to maturity for NPBC bonds are as follows:

Golf Course Capital Lease- During 2005, the City entered into an agreement with the Newton Public
Building Commission (NPBC) to provide funding for the Sand Creek Station Golf Course which was Princil!al Interest Total
completed during 2006. Under the agreement, the City will make lease payments equal to the NPBC debt
2015 $ 640,000 244,680 884,680
incurred to acquire, improve and equip the course. An equal amount was recorded on the NPBC's financial
statements when the course assets were transferred to the city, and recorded in the golf course fund. The 2016 725,000 217,335 942,335
required minimum lease payments, based on the NPBC's debt requirements, are as follows: 2017 710,000 186,920 896,920
2018 790,000 161,260 951,260
2015 674,020 2019 815,000 141,080 956,080
2016 722,670 2020-2024 4,280,000 373,059 4,653,059
2017 673,795 2025 615,000 7,380 622,380
2018 720,220 1,331,714
$ 8,575,000 9,906,714
2019 722,670
2020-2024 3,387,150
Advance Refunding- During 2012, the NPBC issued refunding revenue bonds, series 2012 (new debt), in the
2025 622,380
principal amount of $5,9 l 5,000. Proceeds from the issue were deposited to an irrevocable escrow account
Total 7,522,905 with a third party trustee to effect in substance defeasance of $5, 175,000 in existing series 2005 and 2005-B
(862,905) revenue bonds (old debt). At December 31, 2014, the NPBC's refunded debt consisted of$4,745000 for the
IV-31
Less amount representing interest

Remaining principal $6,660,000 2005 issue, which is scheduled to be called with proceeds from escrow on March I, 2015.
Compensated Absences - Consist of unused vacation time that has accrued to employees at year-end. Sick
5. DEFINED BENEFIT PENSION PLANS
leave benefits are not paid to employees upon termination and have not been recorded as a liability in these
financial statements.
Plan Description- The City participates in the Kansas Public Employees Retirement System (KPERS) and
the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer
The liability for accrued vacation for governmental activities is liquidated though governmental funds that
defined benefit pension plans as provided by K.S.A. 74-4901, et seq. KPERS and KP&F provide
have expenditures for personnel- the general and airport funds.
retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes
and amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes
Component Unit - Newton Public Building Commission (NPBC)
financial statements and required supplementary information. Those reports may be obtained by writing
During 2004 and 2005, the NPBC issued a total of $10,345,000 in Revenue Bonds to finance athletic field
to KPERS (611 S. Kansas, Topeka, KS 66603-3803) or by calling 1-888-275-5737.
improvements and to construct the Sand Creek Station Golf Course. At December 3 I, 20 I 4, the
outstanding NPBC revenue bonds consisted of the following:
Funding Policy- K.S.A. 74- I 9 l 9 establishes the KPERS member-employee contribution rate at 5%-6% of
covered salary. K.S.A. 74-4975 establishes the KP&F member-employee contribution rate at 7.15% of
Interest Outstanding Original covered salary. The employer collects and remits member-employee contributions according to the
Rates 12/31/14 Amount provisions of Section 414(h) of the Internal Revenue Code. State law provides that the employer
Series2004 4.36% $ 1,915,000 2,685,000 contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS
Series2005 3.00-5.00% 1,145,000 6,685,000 and KP&F are funded on an actuarial reserve basis. State law sets a limitation on annual increase in the
2012 Refunding 2.00-2.40% 5,515,000 5,915,000 employer contribution rates. The KPERS employer rate at December 31,2014 was 8.84%. The City's
employer contributions to KPERS for the years ending December 31,2014,2013 and 2012 were $525,052
Principal balance 8,575,000
$503,841, and $445,030 respectively, equal to the required contributions for each year. The KP&F
Add balance of bond issue premium 158,350
uniform employer rate established for fiscal year 2014 was 19.92%. Employers participating in KP&F
$ 8,733,350 also make contributions to amortize the liability for past service costs, if any, which is determined
separately for each participating employer. The City's contributions to KP&F for the years ending
December 31,2014,2013, and 2012 were $996,198,$838,407, and $772,158 respectively, equal to the
required contributions for each year.
December 31,2014 December 31,2014
5. DEFINED BENEFIT PENSION PLANS (Continued) 8. INTERFUND RECEIVABLE/PAY ABLE
Other Pension Plans - In addition to participating in Kansas Public Employees Retirement System, the lnterfund receivables and payables are recorded to eliminate negative cash balances in capital project and
City maintains an additional pension plan- Policemen's and Firemen's Pension. The plan, which is of the other funds prior to the issuance of permanent long-term financing. At December 31, 2014, the interfund
single-employer defined benefit variety, was established in 1947 to provide benefits for policemen and balances consisted ofthe following:
firemen (and surviving spouses) who retired prior to the City's participation in KP&F. Pension benefits
paid during the year ended December 31,2014, were $4,774. The plan will be phased out upon the deaths General Fund $ 4,367,508
of the few remaining participants. During 1996, an actuarial computation was performed to determine the Nonmajor Governmental:
amount necessary to fund the pension benefit obligation of the plan. This amount, $140,000, was Capital Improvement Fund 141,160
transferred to a pension trust fund from the general fund to pay future benefits.
Municipal Equipment Fund 324,623
Sewer Enterprise Fund 2,008,002
6. DEFERRED COMPENSATION PLAN Street Capital Projects 4,701,059
Sanitation Fund 132,687
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The plan, available to all City employees, permits them to defer a portion of their Nonmajor Governmental:
salary until future years. The deferred compensation is not available to employees until termination, Water Dept. Improvements 326,770
retirement, death, or unforeseeable emergency. Assets of the plan, valued at current market prices, are Sewer Dept. Improvements 477,322
held in trust for the benefit of the participants. Airport Improvements 244,729
Newton Rec Center Improvements 663,981
IV-32
All amounts of compensation deferred under the plan as well as earnings attributable to those amounts, are Other Building Projects 294,745
solely the property of the participant employees. Accordingly, the assets and related liabilities for the plan are
$ 6,841,293 ~293
not recorded in the accompanying financial statements.
7. INTERFUND TRANSFERS 9. DEFICIT FUND BALANCES
Interfund transfers reflect the flow of resources from one fund to another fund, generally from the fund in The following governmental and enterprise funds had a deficit fund balance at December 31, 2014:
which resources are received to the fund where resources will be expended. The City uses transfers from Deficit
business activities to provide support for general government, and to provide funding from government Balance
Fund
activities for specific capital needs. During the year ended December 31, 20 I4, interfund transfers totaled
$4,660,850. Transfers for the year were as follows: Street Capital Projects $ 5,863,953
Water Dept. Improvements 326,770
Transfer From Sewer Dept. Improvements 477,322
Nonmajor Airport Capital Projects 244,729
General Government Waterworks Sewer Sanitation Total Newton Rec Center Improvements 663,981
Transfer To Other Building Projects 294,745
General $ 672,239 659,857 866,545 152,428 2,351,069
Debt Service 1,117,185 293,186 98,339 537,196 2,045,906 The deficit balance in capital project funds will be eliminated upon the issuance of bonds in succeeding years.
Nonmajor Government 50,000 35,317 36,738 18,200 140,255
Internal service-stores 46,648 46,648 23,324 116,620
Sewer Enterprise 7,000 7,000
$1,167,185 1,007,742 841,582 1,468,589 175,752 4,660,850
December 31,2014 December 31, 20 14
I 0. COMMUNITY DEVELOPMENT FUND 12. RISK MANAGEMENT AND CLAIMS (Continued)
Restricted Assets - Restricted assets consist of cash and investments of $241 ,889 restricted for the Employee Health Care Benefits
Community Development Rehabilitation Loan program.
During the year ended December 31, 2014, employees of the City were covered by the City of Newton
Rehabilitation Loan Program - In 1984, the City of Newton received a Community Development Block Medical Benefits Plan (the Plan). Under the Plan, the City retains a significant portion of the risk of loss
Grant from the Department of Housing and Urban Development (HUD) for the purpose of establishing a for employee health benefits. Claims are paid by a third-party administrator acting on behalf of the City.
low-income housing rehabilitation loan program. The administrative contract between the City and the third-party administrator is renewable annually.
Administrative fees and stop-loss premiums are included in the contractual provisions.
Idle program funds remain in an interest-bearing account. When loans are repaid, the proceeds may be
used for additional loans; other community development projects, or remain in the fund. The City is protected against catastrophic loss by stop-loss coverage carried through a commercial
insurance carrier. Stop-loss coverage is in effect for individual claims exceeding $50,000 and for
Rehabilitation and development loans outstanding at December 31, 2014, were $331 ,221. No interest is aggregate loss, which is based on a factor determined monthly by the insurer.
being charged on the outstanding loans.
The risk management activities under the Plan are recorded in the Health Benefit Risk Management Fund.
Using the actuarial method, the City charges the cost of estimated benefits to funds in relation to personal
II. COMMITMENTS AND CONTINGENCIES services expenditures. An estimated liability is recorded for claims against the Plan that have been
incurred but not yet reported at year end. The following represents the changes in the liability for
Litigation - The City is a defendant in various lawsuits. Although the outcomes of these lawsuits are not unreported claims under the plan for 2014 and 2013:
presently determinable, in the opinion ofthe City Attorney, the resolution of these matters will not have a
IV-33
material adverse effect on the City's financial statements.

2014 2013
Federal Grants - In the normal course of operations, the City receives grant funds from various Federal
and State agencies. The grant programs are subject to audit by agents of the granting authority, the Liability balance, beginning $ 8,700 55,000
purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability Health benefit claims incurred 1,877,769 1,735,893
for reimbursement that may arise as the result of these audits is not believed to be material. Add premiums and fees 734,777 690,755
Total costs incurred 2,621,246 2,481,648
Less claims paid (1,862,569) (I' 795, 712)
12. RISK MANAGEMENT AND CLAIMS
Less Premiums and fees paid (734,777) (677,236)
Property. Liability and Employee Life Insurance Liability balance, ending $ 23,900 8,700
Losses under these programs are covered by commercial insurance policies, subject to deductibles in some
cases. There have been no significant reductions in insurance coverage for these programs and settlement 13. COMPLIANCE WITH KANSAS STATUTES AND OTHER FINANCE-RELATED LEGAL AND
amounts have not exceeded insurance coverage for the current year or the three prior years. CONTRACTUAL PROVISIONS
Workers' Compensation Coverage Cash Basis Violations- The City was not in compliance with K.S.A. 10-1113 which requires all funds to
maintain unencumbered cash balances of zero or above, in the following funds:
The City is a member of the Kansas Municipal Insurance Trust Workers' Compensation Pool (the Pool)
for purposes of workers' compensation coverage. This program is similar to commercial insurance Fund Amount
coverage because the Pool is liable for all claims. The City contributes to the Pool at the beginning of Meridian Convention Center $ (13,119)
each coverage period based on experience and payroll factors. The City records a liability for estimated Sanitation (158,755)
additional contributions that may be incurred because of adjustments made by the Pool. The cost of this
workers' compensation coverage is charged to City funds based on payroll expenditures.
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
14. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-
sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The bonds are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor
any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the
bonds are not reported as liabilities in the accompanying financial statements. At December 31, 2014,
eight City-issued Industrial Revenue bond issues were outstanding with a total balance of $10,953,373.
15. JOINT VENTURE -PUBLIC WHOLESALE WATER SUPPLY DISTRICT NO. 17
Description of the Entity
During 1997, the City ofNewton entered into an agreement with the cities of Halstead, North Newton and
Sedgwick to form the Public Wholesale Water Supply District No. 17 (the District). The purpose of the
District is to secure an additional water supply for sale to member cities and other potential customers.
The City of Newton has contributed $40,000 in capital to the District in exchange for a 40% share in
equity. Because of the nature of the operations of the District, this investment has been recorded within
the City's Waterworks enterprise fund.
Separate financial statements for the District can be obtained from the District's office located at the City
ofNewton administration building (201 East Sixth, Newton, Kansas 67114-0426).
Commitments and Contingencies
During 200 I , the District completed construction of the water distribution system and began selling water
to member cities. In order to purchase water rights and construct the water distribution system, the
District obtained a low interest loan through the Kansas Rural Water Finance authority. The balance of
this loan was $1,391,490 at December 31, 2014. In the event that the District terminates or otherwise fails
to meet debt service requirements on this loan, the member cities are required to tender their share of the
deficiency based on percentages specified in the organization agreement.
16. SUBSEQUENT EVENTS
Date of Management Review
Management has performed an analysis of the activities and transactions subsequent to December 31,
2014, to determine the need for any adjustments to and/or disclosures within the audited financial
statements. Management has performed their analysis through July 27, 2015, which is the date at which
the financial statements were available to be issued.
IV-34
OFFICIAL BID FORM
PROPOSAL FOR THE PURCHASE OF CITY OF NEWTON, KANSAS
GENERAL OBLIGATION BONDS, SERIES 2015-A
TO: Denise R. Duerksen, Clerk October 13, 2015

For $5,125,000* principal amount of General Obligation Bonds, Series 2015-A, of the City of Newton, Kansas, to be dated November 10,
2015, as described in the Notice of Bond Sale dated September 22, 2015, said Bonds to bear interest as follows:
Stated Annual Stated Annual

Maturity Principal Rate of Maturity Principal Rate of
September 1 Amount Interest Price September 1 Amount Interest Price
2017 $205,000 __________% __________% 2027 $250,000 __________% __________%
2018 210,000 __________% __________% 2028 260,000 __________% __________%
2019 215,000 __________% __________% 2029 265,000 __________% __________%
2020 215,000 __________% __________% 2030 275,000 __________% __________%
2021 220,000 __________% __________% 2031 280,000 __________% __________%
2022 225,000 __________% __________% 2032 290,000 __________% __________%
2023 230,000 __________% __________% 2033 300,000 __________% __________%
2024 240,000 __________% __________% 2034 310,000 __________% __________%
2025 245,000 __________% __________% 2035 315,000 __________% __________%
2026 245,000 __________% __________% 2036 330,000 __________% __________%
*Subject to change, see Notice of Bond Sale dated September 22, 2015
the undersigned will pay the purchase price for the Bonds set forth below, plus accrued interest to the date of delivery.
Principal Amount ............................................................................................................................................................ $5,125,000*

Less Discount (not to exceed $66,625) ................................................................................................... -______________________
Plus Premium (if any) ............................................................................................................................. ______________________
Total Purchase Price ............................................................................................................................ $_______________________
Total interest cost to maturity at the rates specified ............................................................................ $_______________________

Net interest cost (adjusted for Discount and/or Premium) ................................................................... $_______________________
True Interest Cost .................................................................................................................................................... ____________%
 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 Bond Sale, and if the undersigned is the Successful Bidder,
the undersigned will comply with all of the provisions contained in said Notice. A wire transfer in the amount of $102,500 payable to the order of the
Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer by execution below 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 and
a bond purchase agreement for purposes of the laws of the State of Kansas.
Submitted by:
(LIST ACCOUNT MEMBERS ON REVERSE) By:

) Telephone No. (
ACCEPTANCE
Pursuant to action duly taken by the Governing Body of the City of Newton, Kansas, the above proposal is hereby accepted on October 13,
2015
Attest:
Clerk Mayor
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 Clerk, City Hall, 201 E. 6th, P.O. Box 426, Newton, Kansas 67114, facsimile bids may be filed with Springsted Incorporated,
Fax No. (651) 223-3046 or electronic bids may be submitted via PARITY®, at or prior to 10:00 A.M., Central Daylight Time, on October 13,
2015. Any bid received after such time will not be accepted or shall be returned to the bidder.
OFFICIAL BID FORM
PROPOSAL FOR THE PURCHASE OF CITY OF NEWTON, KANSAS
TO: Denise R. Duerksen, Clerk October 13, 2015

For $1,155,000* principal amount of Taxable General Obligation Bonds, Series 2015-B, of the City of Newton, Kansas, to be dated
November 10, 2015, as described in the Notice of Bond Sale dated September 22, 2015, said Bonds to bear interest as follows:
Stated Annual Stated Annual

Maturity Principal Rate of Maturity Principal Rate of
September 1 Amount Interest Price September 1 Amount Interest Price
2017 $105,000 __________% __________% 2022 $115,000 __________% __________%
2018 105,000 __________% __________% 2023 120,000 __________% __________%
2019 110,000 __________% __________% 2024 120,000 __________% __________%
2020 110,000 __________% __________% 2025 125,000 __________% __________%
2021 115,000 __________% __________% 2026 130,000 __________% __________%
*Subject to change, see Notice of Bond Sale dated September 22, 2015
the undersigned will pay the purchase price for the Bonds set forth below, plus accrued interest to the date of delivery.
Principal Amount ............................................................................................................................................................ $1,155,000*

Less Discount (not to exceed $15,015) ................................................................................................... -______________________
Plus Premium (if any) ............................................................................................................................. ______________________
Total Purchase Price ............................................................................................................................ $_______________________
Total interest cost to maturity at the rates specified ............................................................................ $_______________________

Net interest cost (adjusted for Discount and/or Premium) ................................................................... $_______________________
True Interest Cost .................................................................................................................................................... ____________%
 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 Bond Sale, and if the undersigned is the Successful Bidder,
the undersigned will comply with all of the provisions contained in said Notice. A wire transfer in the amount of $23,100 payable to the order of the
Issuer, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the Issuer by execution below 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 and
a bond purchase agreement for purposes of the laws of the State of Kansas.
Submitted by:
(LIST ACCOUNT MEMBERS ON REVERSE) By:

) Telephone No. (
ACCEPTANCE
Pursuant to action duly taken by the Governing Body of the City of Newton, Kansas, the above proposal is hereby accepted on October 13,
2015.
Attest:
Clerk Mayor
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 Clerk, City Hall, 201 E. 6th, P.O. Box 426, Newton, Kansas 67114, facsimile bids may be filed with Springsted Incorporated,
Fax No. (651) 223-3046 or electronic bids may be submitted via PARITY®, at or prior to 10:00 A.M., Central Daylight Time, on October 13,
2015. Any bid received after such time will not be accepted or shall be returned to the bidder.
Post Sale
$1,130,000
Pricing Summary
Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price
09/01/2017 Serial Coupon 2.000% 1.000% 100,000.00 101.787% 101,787.00

09/01/2018 Serial Coupon 2.000% 1.300% 105,000.00 101.923% 107,019.15
09/01/2019 Serial Coupon 2.250% 1.550% 105,000.00 102.577% 107,705.85
09/01/2020 Serial Coupon 2.250% 1.800% 110,000.00 102.062% 112,268.20
09/01/2021 Serial Coupon 2.500% 2.000% 110,000.00 102.727% 112,999.70
09/01/2022 Serial Coupon 2.500% 2.300% 115,000.00 101.252% 116,439.80
09/01/2023 Serial Coupon 2.750% 2.550% 115,000.00 101.405% 116,615.75
09/01/2024 Serial Coupon 2.850% 2.750% 120,000.00 100.775% 120,930.00
09/01/2025 Serial Coupon 3.000% 3.000% 125,000.00 100.000% 125,000.00
09/01/2026 Serial Coupon 3.100% 3.100% 125,000.00 100.000% 125,000.00
Total - - - $1,130,000.00 - $1,145,765.45
Bid Information
Par Amount of Bonds.....................................................................................................................................................................................

$1,130,000.00
Reoffering Premium or (Discount)........................................................................................................................................................................
15,765.45
Gross Production........................................................................................................................................................................................
$1,145,765.45
Total Underwriter's Discount (0.692%)..................................................................................................................................................................

$(7,816.81)
Bid (100.703%)..........................................................................................................................................................................................
1,137,948.64
Total Purchase Price....................................................................................................................................................................................

$1,137,948.64

$7,358.42
Average Life............................................................................................................................................................................................
6.512 Years
Average Coupon..........................................................................................................................................................................................
2.7103759%

2.6023548%
2.5786988%

Recommendations for Issuance of Bonds
$5,125,000 General Obligation Bonds, Series 2015-A

$1,155,000 Taxable General Obligation Bonds, Series 2015-B
The City Commission has under consideration the issuance of bonds to fund (i) construction of infrastructure
improvement projects in various areas of the City (the “Tax Exempt Bonds”) and (ii) acquire land adjoining the airport
for expansion of the Logistics Park (the “Taxable Bonds”) (collectively, the “Bonds”). This document provides
information relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
September 22, 2015 City Commission sets sale date and terms
Week of September 28, 2015 Rating conference is conducted
Est. October 8, 2015 Receipt of rating
October 13, 2015, 10:00 AM Competitive bids are received
October 13, 2015, 7:00 PM City Commission considers award of bonds
On or about November 10, 2015 Proceeds are received
RATING: An application will be made to Standard & Poor’s Ratings Services for a rating on the
Bonds. The City’s general obligation debt is currently rated 'AA-' by S&P.
THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”)
which measures the yield of high grade municipal bonds in the 20 th year for general
obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25
Bond Index). The following chart illustrates these two indices over the past five years.
BBI 25-bond (Revenue) and 20-bond (G.O.) Rates for 5 Years Ending
9/10/2015
BBI 25 Bond
6.5%
BBI 20 Bond
9/10/2015
6.0% 25 bond: 4.25%
20 bond: 3.82%
5.5%
5.0%
Rates
4.5%
4.0%
3.5%
3.0%
Date September 16,2015
Study No.: 0011011.109
Dates Prepared by Springsted Incorporated

POST ISSUANCE The issuance of these bonds will result in post-issuance compliance responsibilities. The
COMPLIANCE: responsibilities are in two primary areas: i) compliance with federal arbitrage requirements
and ii) compliance with secondary disclosure requirements.
Note: The federal arbitrage regulations do not apply to taxable bonds such as the
Series 2015-B Taxable Bonds.
Federal arbitrage requirements include a wide range of implications that have been taken
into account as the Tax Exempt Bonds have been structured. Post-issuance compliance
responsibilities for tax-exempt issues include both rebate and yield restriction provisions of
the IRS Code. In general terms the arbitrage requirements control the earnings on
unexpended bond proceeds, including investment earnings, moneys held for debt service
payments (which are considered to be proceeds under the IRS regulations), and/or
reserves. Under certain circumstances any “excess earnings” will need to be paid to the
IRS to maintain the tax-exempt status of the Tax Exempt Bonds. Any interest earnings on
gross bond proceeds or debt service funds should not be spent until it has been
determined based on actual facts that they are not “excess earnings” as defined by the IRS
Code.
The arbitrage rules provide spend-down exceptions for proceeds that are spent within
either a 6-month, 18-month or 24-month period in accordance with certain spending
criteria. Proceeds that qualify for an exception will be exempt from rebate. These
exceptions are based on actual expenditures and not based on reasonable expectations,
and expenditures, including any investment proceeds will have to meet the spending
criteria to qualify for the exclusion. The City expects to meet the 6-month pending
exception.
Regardless of whether the issue qualifies for an exemption from the rebate provisions,
yield restriction provisions will apply to the debt service fund under certain conditions and
any unspent bond proceeds remaining after three years. These funds should be monitored
throughout the life of the Tax Exempt Bonds.
Secondary disclosure requirements result from an SEC requirement that underwriters

provide ongoing disclosure information to investors. To meet this requirement, any
prospective underwriter will require the City to commit to providing the information needed
to comply under a continuing disclosure agreement.
We understand that post issuance compliance responsibilities are being monitored

internally or through third party contracts.
SUPPLEMENTAL Supplementary information will be available to staff including detailed terms and conditions
INFORMATION AND of sale, comprehensive structuring schedules and information to assist in meeting post-
BOND RECORD: issuance compliance responsibilities.
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
RISKS/SPECIAL The outcome of these financings will rely on the market conditions at the time of the sale.
CONSIDERATIONS: Any projections included herein are estimates based on current market conditions.
Page 2
AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to K.S.A. 12-6a01 et seq.,
K.S.A. 12-1736 et seq., K.S.A. 13-1024a, as amended by Charter Ordinance Nos. 35 and
47 of the City, and K.S.A. 65-163d et seq, and a resolution adopted by the City.
SECURITY AND The Bonds will be general obligations of the City, secured by its full faith and credit and
SOURCE OF taxing power. The Bonds will be paid from ad valorem property taxes with the exception of
PAYMENT: the portion attributable to the water and sanitary sewer projects; which will be paid from
utility revenues. With respect to the Taxable Bonds, to the degree available, the City
intends to use land sale proceeds to pay for the Taxable Bonds.
The City will make its first levy for the Bonds in 2016 for collection beginning in 2017. Each
year’s collection of taxes will be sufficient to pay the interest due March 1 and the principal
and interest due the following September 1. The Bonds have been structured with interest-
only payments in 2016 to accommodate tax levy schedule. The City will make the interest
payment du September 1, 2016 from available funds.
SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the
MARKETING: issue size and/or maturity structure to customize the Bonds once the price and interest
rates are set on the day of sale.
Prepayment Provisions:
Tax Exempt Bonds: Tax Exempt Bonds maturing on or after September 1, 2024 may be
prepaid at a price of par plus accrued interest on or after September 1, 2023.
Taxable Bonds: Taxable Bonds maturing on or after September 1, 2025 may be prepaid at
a price of par plus accrued interest on or after September 1, 2024. It should be noted that,
should the City sell the land acquired for expansion of the Logistics Park, it will have the
choice of using these funds to pay bond debt service or holding the funds until the optional
prepayment date to redeem principal.
Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt
obligations that count against the $10 million limit for this calendar year; therefore, the Tax
Exempt Bonds are designated as bank qualified. Bank qualification does not apply to
taxable issues such as the Taxable Bonds.
Good Faith Deposit: The lowest bidder will be required to provide a good faith deposit
within a specified time after receipt of proposals. The good faith deposit will be deducted
from the purchase price otherwise due at the time of closing. In the event the lowest
bidder fails to comply with the accepted bid proposal, the Issuer will retain the good faith
deposit.
$5,125,000 General Obligation Bonds, Series 2015-A

Description of Issue
PURPOSE: Proceeds of the Tax Exempt Bonds will be used to finance infrastructure improvement
projects in various areas of the City, including: Logistics Park paving improvements, Airport
Storm Water and Runway Improvements, Ash Street Bridge Improvements, Hillside and
SE Main water and Sewer Improvements and the 2013 CIP Overlay Program. The County
is expected to fund 50% of the cost of the Airport Storm Water project.
Page 3
STRUCTURING In consultation with the City, the Tax Exempt Bonds were structured by individual project
SUMMARY: over a term of 21 years (20 years of principal amortization) to result in approximately level
annual debt service payments, with the exception of an interest only payment in 2016.
SCHEDULES Schedules attached for the Tax Exempt Bonds include a sources and uses of funds,
ATTACHED: aggregate debt service showing the annual principal and interest payments for the
individual projects, and estimated debt service requirements for the issue as a whole, given
the current interest environment. Individual full debt service schedules for each of the
projects will be provided to City staff after the sale of the Tax Exempt Bonds.

Description of Issue
PURPOSE: Proceeds of the Taxable Bonds will be used to acquire land adjoining the Airport for
expansion of the Logistics Park with the idea of selling all or a portion to private business
interests for development purposes.
STRUCTURING In consultation with the City, the Taxable Bonds were structured over a term of eleven
SUMMARY: years (10 years of principal amortization) to result in approximately level annual debt
service payments, with the exception of an interest only payment in 2016.
SCHEDULES Schedules attached for the Taxable Bonds include a sources and uses of funds and
ATTACHED: estimated debt service requirements, given the current interest environment.
FEDERAL TAX This issue is being sold as a taxable obligation under federal tax law as a result of the
CONSIDERATIONS: intent of the City to sell the land acquired with bond proceeds to private parties and use the
sale proceeds to pay for the Taxable Bonds.
Page 4
$5,125,000
Series 2015A - Issue Summary
Total Issue Sources And Uses

Dated 11/10/2015 | Delivered 11/10/2015
Logistics Hillside & SE Hillside 2013 CIP Runw ay 17-

Logistics Park Park Paving Airport Ash Street 9th Water Sew er Overlay 35 Design & Issue
Paving Phase I Phase II Storm Water Bridge Main Im prov. Program Reconstruct Sum m ary
Sources Of Funds
$2,525,000.00 $565,000.00 $190,000.00 $510,000.00 $295,000.00 $490,000.00 $345,000.00 $205,000.00 $5,125,000.00
County Contribution.....................................................................................................................................................................................
- - 185,435.50 - - - - - 185,435.50
Total Sources...........................................................................................................................................................................................
$2,525,000.00 $565,000.00 $375,435.50 $510,000.00 $295,000.00 $490,000.00 $345,000.00 $205,000.00 $5,310,435.50
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................................................................
2,463,081.52 552,267.80 370,871.00 500,103.70 289,113.95 477,321.59 337,717.00 196,517.21 5,186,993.77
Total Underw riter's Discount (1.300%)..................................................................................................................................................................
32,825.00 7,345.00 2,470.00 6,630.00 3,835.00 6,370.00 4,485.00 2,665.00 66,625.00
Costs of Issuance.......................................................................................................................................................................................
25,816.58 5,776.79 1,942.64 5,214.44 3,016.19 5,009.94 3,527.42 2,096.00 52,400.00
Rounding Amount.........................................................................................................................................................................................
3,276.90 (389.59) 151.86 (1,948.14) (965.14) 1,298.47 (729.42) 3,721.79 4,416.73
Total Uses..............................................................................................................................................................................................
$2,525,000.00 $565,000.00 $375,435.50 $510,000.00 $295,000.00 $490,000.00 $345,000.00 $205,000.00 $5,310,435.50
2 0 15-A General Ob lig atio n | Is s ue S ummary | 9 /14 /2 0 15 | 2 :3 5 PM
Page 5
$5,125,000
Aggregate Debt Service
2015-A General 2015-A 2015-A 2015-A 2015-A 2015-A 2015-A 2015-A

Obligation General General General General General General General
DATE Logistics Park Logistics Airport Ash Street Hillside & SE Hillside 2013 CIP Runway 17-35 TOTAL
Paving Phase I Park Paving Storm Water Bridge 9th Water Sewer Overlay Design &
Phase II Main Improv. Program Reconstruct
09/01/2016 55,168.75 12,236.15 4,104.31 11,183.29 6,496.98 10,690.21 7,475.06 4,342.77 111,697.52
09/01/2017 168,250.00 40,137.50 10,077.50 33,835.00 18,037.50 33,225.00 24,247.50 15,372.50 343,182.50
09/01/2018 172,250.00 39,887.50 10,027.50 33,635.00 17,937.50 33,025.00 24,097.50 15,272.50 346,132.50
09/01/2019 170,937.50 39,575.00 14,965.00 33,385.00 17,812.50 32,775.00 23,910.00 15,147.50 348,507.50
09/01/2020 169,362.50 39,200.00 14,815.00 33,085.00 17,662.50 32,475.00 23,685.00 14,997.50 345,282.50
09/01/2021 167,420.00 38,737.50 14,630.00 32,715.00 22,477.50 32,105.00 23,407.50 14,812.50 346,305.00
09/01/2022 170,267.50 38,225.00 14,425.00 32,305.00 22,170.00 31,695.00 23,100.00 14,607.50 346,795.00
09/01/2023 167,792.50 37,662.50 14,200.00 36,855.00 21,832.50 31,245.00 22,762.50 14,382.50 346,732.50
09/01/2024 170,207.50 37,075.00 13,965.00 36,267.50 21,480.00 35,775.00 22,410.00 14,147.50 351,327.50
09/01/2025 172,390.00 36,462.50 13,720.00 35,655.00 21,112.50 35,162.50 22,042.50 13,902.50 350,447.50
09/01/2026 169,330.00 35,825.00 13,465.00 35,017.50 20,730.00 34,525.00 21,660.00 13,647.50 344,200.00
09/01/2027 171,150.00 35,162.50 13,200.00 34,355.00 20,332.50 33,862.50 21,262.50 13,382.50 342,707.50
09/01/2028 167,712.50 39,475.00 12,925.00 33,667.50 19,920.00 33,175.00 25,850.00 13,107.50 345,832.50
09/01/2029 169,150.00 38,620.00 12,640.00 32,955.00 19,492.50 32,462.50 25,280.00 12,822.50 343,422.50
09/01/2030 170,315.00 37,735.00 12,345.00 37,217.50 19,050.00 31,725.00 24,690.00 12,527.50 345,605.00
09/01/2031 171,197.50 36,820.00 12,040.00 36,302.50 18,592.50 30,962.50 24,080.00 12,222.50 342,217.50
09/01/2032 171,787.50 35,875.00 11,725.00 35,357.50 18,120.00 35,175.00 23,450.00 11,907.50 343,397.50
09/01/2033 172,075.00 39,900.00 11,400.00 34,382.50 17,632.50 34,200.00 22,800.00 11,582.50 343,972.50
09/01/2034 172,050.00 38,727.50 11,065.00 33,377.50 22,130.00 33,195.00 22,130.00 11,247.50 343,922.50
09/01/2035 171,702.50 37,520.00 10,720.00 32,342.50 21,440.00 32,160.00 21,440.00 10,902.50 338,227.50
09/01/2036 171,022.50 36,277.50 10,365.00 36,277.50 20,730.00 31,095.00 20,730.00 15,547.50 342,045.00
Total $3,461,538.75 $771,136.15 $256,819.31 $700,173.29 $405,189.48 $670,710.21 $470,510.06 $275,882.77 $7,011,960.02
Par Amounts Of Selected Issues
-Logistics Park Paving Phase I.......................................................................................................................................................................... 2,525,000.00

-Logistics Park Paving Phase I.......................................................................................................................................................................... 565,000.00
2015-A Ge-Airport Storm Water........................................................................................................................................................................... 190,000.00
2015-A Gene-Ash Street Bridge........................................................................................................................................................................... 510,000.00
-Hillside & SE 9th Water Main........................................................................................................................................................................... 295,000.00
2015-A-Hillside Sew er Improv............................................................................................................................................................................ 490,000.00
2015-2013 CIP Overlay Program........................................................................................................................................................................... 345,000.00
-Runw ay 17-35 Design & Reconst.......................................................................................................................................................................... 205,000.00
TOTAL................................................................................................................................................................................................... 5,125,000.00
Aggregate | 9/14/2015 | 2:35 PM
Page 6
$5,125,000
DEBT SERVICE SCHEDULE

09/01/2016 - - 111,697.52 111,697.52
09/01/2017 205,000.00 1.000% 138,182.50 343,182.50
09/01/2018 210,000.00 1.250% 136,132.50 346,132.50
09/01/2019 215,000.00 1.500% 133,507.50 348,507.50
09/01/2020 215,000.00 1.850% 130,282.50 345,282.50
09/01/2021 220,000.00 2.050% 126,305.00 346,305.00
09/01/2022 225,000.00 2.250% 121,795.00 346,795.00
09/01/2023 230,000.00 2.350% 116,732.50 346,732.50
09/01/2024 240,000.00 2.450% 111,327.50 351,327.50
09/01/2025 245,000.00 2.550% 105,447.50 350,447.50
09/01/2026 245,000.00 2.650% 99,200.00 344,200.00
09/01/2027 250,000.00 2.750% 92,707.50 342,707.50
09/01/2028 260,000.00 2.850% 85,832.50 345,832.50
09/01/2029 265,000.00 2.950% 78,422.50 343,422.50
09/01/2030 275,000.00 3.050% 70,605.00 345,605.00
09/01/2031 280,000.00 3.150% 62,217.50 342,217.50
09/01/2032 290,000.00 3.250% 53,397.50 343,397.50
09/01/2033 300,000.00 3.350% 43,972.50 343,972.50
09/01/2034 310,000.00 3.450% 33,922.50 343,922.50
09/01/2035 315,000.00 3.550% 23,227.50 338,227.50
09/01/2036 330,000.00 3.650% 12,045.00 342,045.00
Total $5,125,000.00 - $1,886,960.02 $7,011,960.02
SIGNIFICANT DATES
Dated Date..............................................................................................................................................................................................
11/10/2015
Delivery Date...........................................................................................................................................................................................
11/10/2015
9/01/2016
Yield Statistics

$62,177.71
Average Life............................................................................................................................................................................................
12.132 Years
Average Coupon..........................................................................................................................................................................................
3.0347854%

3.1419380%
3.1301428%
2.9973414%
3.2363107%
IRS Form 8038

3.0347854%
12.132 Years
2 0 15-A General Ob lig atio n | Is s ue S ummary | 9 /14 /2 0 15 | 2 :3 5 PM
Page 7
$1,155,000
Taxable General Obligation Bonds, Series 2015B
Sources & Uses

Dated 11/10/2015 | Delivered 11/10/2015
Sources Of Funds
$1,155,000.00
Total Sources...........................................................................................................................................................................................
$1,155,000.00
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................................................................
1,112,613.00
Costs of Issuance.......................................................................................................................................................................................
24,200.00
Total Underw riter's Discount (1.300%)..................................................................................................................................................................
15,015.00
Rounding Amount.........................................................................................................................................................................................
3,172.00
Total Uses..............................................................................................................................................................................................
$1,155,000.00
2 0 15-B TX General Ob lig at | S INGLE PUR POS E | 9 /14 /2 0 15 | 2 :3 6 PM
Page 8
$1,155,000
Taxable General Obligation Bonds, Series 2015B
DEBT SERVICE SCHEDULE

09/01/2016 - - 23,424.69 23,424.69
09/01/2017 105,000.00 1.370% 28,979.00 133,979.00
09/01/2018 105,000.00 1.790% 27,540.50 132,540.50
09/01/2019 110,000.00 1.520% 25,661.00 135,661.00
09/01/2020 110,000.00 2.350% 23,989.00 133,989.00
09/01/2021 115,000.00 2.180% 21,404.00 136,404.00
09/01/2022 115,000.00 2.810% 18,897.00 133,897.00
09/01/2023 120,000.00 2.700% 15,665.50 135,665.50
09/01/2024 120,000.00 3.190% 12,425.50 132,425.50
09/01/2025 125,000.00 3.290% 8,597.50 133,597.50
09/01/2026 130,000.00 3.450% 4,485.00 134,485.00
Total $1,155,000.00 - $211,068.69 $1,366,068.69
SIGNIFICANT DATES
Dated Date..............................................................................................................................................................................................
11/10/2015
Delivery Date...........................................................................................................................................................................................
11/10/2015
9/01/2016
Yield Statistics

$7,508.63
Average Life............................................................................................................................................................................................
6.501 Years
Average Coupon..........................................................................................................................................................................................
2.8110165%

3.0109866%
3.0133148%
2.7894162%
3.3825702%
IRS Form 8038

2.8110165%
6.501 Years
2 0 15-B TX General Ob lig at | S INGLE PUR POS E | 9 /14 /2 0 15 | 2 :3 6 PM
Page 9
ADDENDUM TO FINAL OFFICIAL STATEMENT
$1,130,000
(the “Series 2015-B Bonds”)
(Book Entry Only)
IMPORTANT CHANGES TO THE OFFICIAL STATEMENT ARE AS FOLLOWS:
The City sold its tax-exempt General Obligation Bonds, Series 2015-A (the “Series 2015-A Bonds”)
contemporaneously with the Series 2015-B Bonds, on October 13, 2015, in order to finance the costs of
certain internal improvements (the “Improvements”), and planned to settle both bond issues on
November 10, 2015. However, due to certain requirements of the Internal Revenue Code of 1986, as
amended, related to tax-exempt financing of reimbursement expenditures, the Series 2015-A Bonds were
unable to settle on that date (the Series 2015-B Bonds did settle on November 10, 2015, as planned).
Therefore, the City is revising the original Official Statement, dated October 13, 2015, to remove the
references to the Series 2015-A Bonds which did not settle.
Subsequent to the closing of the Series 2015-B Bonds and under a separate official statement, the City
plans to issue its General Obligation Bonds, Series 2015-C (the interest on which is excludable from gross
income for federal income tax purposes) and the Taxable General Obligation Bonds, Series 2015-D (the
interest on which is included in gross income for federal income tax purposes) to permanently finance the
balance of the costs of the Improvements which were originally planned to be financed by the
Series 2015-A Bonds.
December 10, 2015
Phone: 651-223-3000
Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
REVISED FINAL OFFICIAL STATEMENT DATED DECEMBER 7, 2015
NEW ISSUE Standard & Poor’s Ratings: AA-

In the opinion of Gilmore & Bell, P.C., Bond Counsel to the City, under existing law, the interest on the Bonds is subject to federal income taxation. The
interest on the Bonds is exempt from income taxation by the State of KansasSee “TAX MATTERS – Opinion of Bond Counsel” in this Official Statement.
$1,130,000
(the “Bonds”)
(Book Entry Only)
Dated Date: Date of Delivery Interest Due: Each March 1 and September 1,
commencing September 1, 2016
The Bonds will mature as shown on the inside front cover of this Official Statement.
The Bonds shall be general obligations of the City payable as to both principal and interest from ad valorem taxes
which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and
personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably
pledged for the prompt payment of the principal and interest on the Bonds as the same become due. Proceeds of
the Bonds will be used to for the purpose of paying a portion of the cost of certain internal improvements.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities
depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of
$5,000 and integral multiples thereof (the “Authorized Denomination”). Investors will not receive physical
certificates representing their interest in the Bonds purchased. (See “Book Entry System” herein.) The Treasurer
of the State of Kansas, Topeka, Kansas will act as registrar and paying agent (the “Registrar and Paying Agent”) for
the Bonds. The Bonds will be available for delivery at DTC on or about November 10, 2015.
Please see the “UNDERWRITING” section herein for discussion regarding the Purchaser of the Bonds.
The Bonds will mature September 1 in the years and amounts as follows:
Maturity Interest CUSIP Maturity Interest CUSIP

(September 1) Amount Rate Yield 652861 (September 1) Amount Rate Yield 652861
2017 $100,000 2.00% 1.00% S2 2 2022 $115,000 2.50% 2.30% S7 1

2018 $105,000 2.00% 1.30% S3 0 2023 $115,000 2.75% 2.55% S8 9
2019 $105,000 2.25% 1.55% S4 8 2024 $120,000 2.85% 2.75% S9 7
2020 $110,000 2.25% 1.80% S5 5 2025 $125,000 3.00% 3.00% T2 1
2021 $110,000 2.50% 2.00% S6 3 2026 $125,000 3.10% 3.10% T3 9
At the option of the City, Bonds maturing on September 1 in the years 2025, and thereafter, will be
subject to redemption and payment prior to maturity on September 1, 2024, and thereafter, as a whole or
in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined
by the City in such equitable manner as it may determine) at any time, at the redemption price of 100%
(expressed as a percentage of the principal amount), plus accrued interest to the date of redemption.
CITY COMMISSION
Glen L. Davis Mayor
Barth Hague Vice Mayor
Leroy Koehn Commissioner
David A. Nygaard Commissioner
Kathy Valentine Commissioner
ASSISTANT CITY MANAGER OF BUDGET AND FINANCE
Lunda Asmani
ASSISTANT FINANCE DIRECTOR

Lisa Marshall
MUNICIPAL ADVISOR
St. Paul, Minnesota and Kansas City, Missouri
BOND COUNSEL
Gilmore & Bell, P.C.
Wichita, Kansas
This Official Statement is a Final Official Statement within the meaning of Rule 15c2-12 of the Securities
and Exchange Commission.
The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as
its agent for purposes of distributing copies of the Final Official Statement to each participating
underwriter. By delivering an offer with respect to the purchasers of the Bonds, the senior managing
underwriter has agreed that (i) it accepts such designation and (ii) it shall enter into a contractual
relationship with all participating underwriters of the Bonds for purposes of assuring the receipt by each
such participating underwriter of the Final Official Statement.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to
make any representations with respect to the Bonds, other than as contained in the Preliminary Official
Statement or the Final Official Statement, and if given or made, such other information or representations
must not be relied upon as having been authorized by the City.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not
guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION
IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE
SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL
STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety
by reference to the particular document, the full text of which may contain qualifications of and
exceptions to statements made herein. Where full texts have not been included as appendices to the
Preliminary Official Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in
the Final Official Statement. No assurance can be given by the City that the CUSIP numbers for the
Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bonds.
TABLE OF CONTENTS
Page(s)
Introductory Statement....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The Bonds .......................................................................................................................................... 2
Authority and Purpose ....................................................................................................................... 8
Sources and Uses of Funds ................................................................................................................ 8
Security and Financing ...................................................................................................................... 8
Future Financing ................................................................................................................................ 9
Absence of Litigation ......................................................................................................................... 9
Approval of Legality .......................................................................................................................... 9
Tax Matters ........................................................................................................................................ 9
Risk Factors and Investment Considerations ..................................................................................... 10
Rating ................................................................................................................................................. 11
Municipal Advisor ............................................................................................................................. 12
Certification ....................................................................................................................................... 12
Underwriting ...................................................................................................................................... 12
City Property Values .......................................................................................................................... 13
City Indebtedness ............................................................................................................................... 14
City Tax Rates, Levies and Collections ............................................................................................. 17
Funds on Hand ................................................................................................................................... 19
Investments ........................................................................................................................................ 20
General Information Concerning the City ......................................................................................... 21
Governmental Organization and Services.......................................................................................... 26
Financial Information Concerning the City ....................................................................................... 30
Proposed Form of Bond Counsel Opinion .............................................................................. Appendix I

Summary of Financing Documents.......................................................................................... Appendix II
Summary of Property Valuation, Tax Levies, Payment Provisions,
and the Cash-Basis Law ....................................................................................................... Appendix III
Excerpt of 2014 Comprehensive Annual Financial Report .................................................... Appendix IV
OFFICIAL STATEMENT
$1,130,000
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Newton, Kansas (the “City”)
and its issuance of $1,130,000 Taxable General Obligation Bonds, Series 2015-B (the “Bonds”).
All capitalized terms used in the following sections that are not expressly defined herein shall have the
meanings as defined in the Bond Resolution, unless the context clearly requires a different meaning. (See
“APPENDIX Il – SUMMARY OF FINANCING DOCUMENTS”.) The Appendices to this Official
Statement are integral parts of this document, to be read in their entirety.
CONTINUING DISCLOSURE
The Securities and Exchange Commission (the “SEC”) has promulgated amendments to Rule 15c2-12
(the “Rule”), requiring continuous secondary market disclosure. The City adopted in 2013 an Omnibus
Continuing Disclosure Undertaking, as may be amended and supplemented (the “Disclosure
Undertaking”) wherein the City has covenanted to provide annually certain Financial Information and
Operating Data and other information necessary to comply with the Rule, and to transmit the same to the
Municipal Securities Rulemaking Board. The Disclosure Undertaking modified previous undertakings
the City entered into pursuant to the Rule (the “Prior Undertakings”). In the Bond Resolutions, the City
has covenanted with the Underwriters and the Beneficial Owners to apply the provisions of the Disclosure
Undertaking to the Bonds. This covenant is for the benefit of and is enforceable by the Beneficial
Owners of the Bonds.
In certain prior years, the City has failed to file its Comprehensive Annual Financial Report (the “CAFR”)
within the time period prescribed by the Prior Undertakings. The CAFR contains the audited financial
statements of, and statistical information regarding, the City. The statistical information included in the
CAFRs contains most, but not all, of the information described as Operating Data in Prior Undertakings
but does contain the information described as Operating Data in the Disclosure Undertaking. In 2015 the
City hired a third-party firm to assist the Issuer in meeting its continuing disclosure obligations.
-1-
The City’s filings for such years are set forth on the table below.
Fiscal Year
Ending Filing Time CAFR
December 31 Period (Days) Filing Date
2014 210 07/30/2015
2013 210 07/30/2014
2012 210 08/16/2013
2011 210 08/01/2012(a)
2010 210 07/26/2011(b)
(a) The City filed its CAFR on August 1, 2012, but inadvertently did not associate this filing with its other general
obligation bonds and public building commission revenue bonds. On February 7, 2013, the City filed its CAFR
for the fiscal year ending in 2011 with said bonds.
(b) The City inadvertently did not associate this filing with its Water Utility System Revenue Bonds, Series 2000.
On February 7, 2013, the City associated its CAFR for the fiscal year ending in 2010 with said bonds.
While the City had the filing deficiencies referred to above, it issued general obligation bonds in 2010,
2012 and 2013 payable from the same source of revenue as the Bonds. The official statements for the
Series 2010, Series 2012 and Series 2013 Bonds were filed with the MSRB, but were not incorporated by
reference in the filings made by the City with respect to one or more series of then outstanding general
obligation bonds.
During the past five years, the City has made filings of event notices on EMMA with respect to bond calls
and defeasances, however, during said time period, the City may not have made timely filings of event
notices on EMMA relating to all bond calls, defeasances or rating changes. The City believes this
information was disseminated or available through other sources.
For more information regarding the Disclosure Undertaking, see “APPENDIX II – SUMMARY OF
FINANCING DOCUMENTS – The Disclosure Undertaking.”
THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on September 1 as set forth on the
inside front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the
Bonds is payable on March 1 and September 1 of each year, commencing September 1, 2016. Interest
will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar and Paying
Agent as of the fifteenth day of the calendar month next preceding such interest payment date. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. Principal of and interest on the
Bonds will be paid as described in the section herein entitled “Book Entry System.” The Treasurer of the
State of Kansas, Topeka, Kansas will act as Registrar and Paying Agent for the Bonds.
Method and Place of Payment of the Bonds

The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency
which, on the respective dates of payment thereof, is legal tender for the payment of public and private
debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose
name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and
surrender of such Bond at the principal office of the Paying Agent.
-2-
The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond
as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check
or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such
other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an
interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of
Bonds, by electronic transfer to such Owner upon written notice given to the Registrar by such Owner,
not less than 15 days prior to the Record Date for such interest, containing the electronic transfer
instructions including the bank, ABA routing number and account number to which such Owner wishes
to have such transfer directed.
Notwithstanding the foregoing, any Defaulted Interest with respect to any Bond shall cease to be payable
to the Owner of such Bond on the relevant Record Date and shall be payable to the Owner in whose name
such Bond is registered at the close of business on the Special Record Date for the payment of such
Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified. The City shall
notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond
and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by
the Paying Agent) and shall deposit with the Paying Agent an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest. Following receipt of such funds the
Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be
not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall
notify the City of such Special Record Date and shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid,
to each Owner of a Bond entitled to such notice not less than 10 days prior to such Special Record Date.
SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE
PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY,
WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL
PROCEDURES. See “THE BONDS – Book-Entry Bonds; Securities Depository.”
Payments Due on Saturdays, Sundays and Holidays
In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption
Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding
Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall
accrue for the period after such Bond Payment Date.
Mutilated, Lost, Stolen or Destroyed Bonds
If (a) any mutilated Bond is surrendered to the Registrar or the Registrar receives evidence to its
satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the City and the
Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to
the City or the Registrar that such Bond has been acquired by a bona fide purchaser, the City shall execute
and, upon the City's request, the Registrar shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor
and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to
become due and payable, the City, in its discretion, may pay such Bond instead of issuing a new Bond.
Upon the issuance of any new Bond, the City may require the payment by the Owner of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Paying Agent) connected therewith.
-3-
Nonpresentment of Bonds
If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds
sufficient to pay such Bond have been made available to the Paying Agent all liability of the City to the
Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely
discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for
interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively
to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with
respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date
when such Bond becomes due at Maturity, the Paying Agent shall repay to the City the funds theretofore
held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute
of limitation, thereafter be an unsecured obligation of the City, and the Owner thereof shall be entitled to
look only to the City for payment, and then only to the extent of the amount so repaid to it by the Paying
Agent, and the City shall not be liable for any interest thereon and shall not be regarded as a trustee of
such money.
Redemption Provisions
Optional Redemption
At the option of the City, Bonds maturing on September 1 in the years 2025, and thereafter, will be
subject to redemption and payment prior to maturity on September 1, 2024, and thereafter, as a whole or
in part (selection of maturities and the amount of Bonds of each maturity to be redeemed to be determined
by the City in such equitable manner as it may determine) at any time, at the redemption price of 100%
(expressed as a percentage of the principal amount), plus accrued interest to the date of redemption.
Selection of Bonds for Redemption
The Bonds shall be redeemed only in denominations $5,000 or any integral multiple thereof (the
“Authorized Denomination”). When less than all of the Bonds are to be redeemed and paid prior to their
Stated Maturity, such Bonds shall be redeemed in such manner as the City shall determine, Bonds of less
than a full Stated Maturity shall be selected by the Registrar in minimum Authorized Denomination in
such equitable manner as the Registrar may determine. In the case of a partial redemption of Bonds by lot
when Bonds of denominations greater than a minimum Authorized Denomination are then Outstanding,
then for all purposes in connection with such redemption each minimum Authorized Denomination of
face value shall be treated as though it were a separate Bond of a minimum Authorized Denomination. If
it is determined that one or more, but not all, of the minimum Authorized Denomination value represented
by any Bond is selected for redemption, then upon notice of intention to redeem such minimum
Authorized Denomination, the Owner or the Owner's duly authorized agent shall forthwith present and
surrender such Bond to the Registrar: (1) for payment of the Redemption Price and interest to the
Redemption Date of such minimum Authorized Denomination value called for redemption, and (2) for
exchange, without charge to the Owner thereof, for a new Bond or Bonds of the aggregate principal
amount of the unredeemed portion of the principal amount of such Bond. If the Owner of any such Bond
fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall,
nevertheless, become due and payable on the redemption date to the extent of the minimum Authorized
Denomination value called for redemption (and to that extent only).
Notice of Redemption
As long as the book entry only system applies to the Bonds, notice of redemption is to be mailed to DTC
not less than 30 days prior to the date set for redemption in accordance with the procedures set forth in the
letter of representations between the City and DTC. See “THE BONDS - Book Entry System” herein for
a description of DTC’s practices with respect to redemption notices. If the book entry only system is
discontinued, the following notice of redemption procedures will apply.
-4-
Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for
redemption and payment prior to the maturity, the City shall instruct the Registrar to give written notice
of its intention to call and pay such Bonds on a specified date, the same being described by maturity and
series, such notice to be mailed by United States first class mail addressed to the owners of the Bonds,
each of the notices to be mailed not less than 30 days prior to the date fixed for redemption. The City
shall also give such additional notice as may be required by Kansas law or regulation of the Securities and
Exchange Commission in effect as of the date of such notice. If any Bonds are called for redemption and
payment as described above, all interest on such Bonds shall cease from and after the date for which such
call is made, provided funds are available for its payment at the price specified.
Registration and Transfer
Unless waived by any Owner of Bonds to be redeemed, if the City shall call any Bonds for redemption
and payment prior to the Stated Maturity thereof, the City shall give written notice of its intention to call
and pay said Bonds to the Registrar and the Underwriter. In addition, the City shall cause the Registrar to
give written notice of redemption to the Owners of said Bonds. Each of said written notices shall be
deposited in the United States first class mail not less than 30 days prior to the Redemption Date.
All official notices of redemption shall be dated and shall contain the following information: (a) the
Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed,
the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts)
of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will
become due and payable upon each such Bond or portion thereof called for redemption and that interest
thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are
to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying
Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect
therein shall not invalidate any redemption.
Prior to any Redemption Date, the City shall deposit with the Paying Agent an amount of money
sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on
such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or
portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the
Redemption Price therein specified, and from and after the Redemption Date (unless the City defaults in
the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest.
For so long as the Securities Depository is effecting book-entry transfers of the Bonds, the Registrar shall
provide the notices specified to the Securities Depository. It is expected that the Securities Depository
shall, in turn, notify its Participants and that the Participants, in turn, will notify or cause to be notified the
Beneficial Owners. Any failure on the part of the Securities Depository or a Participant, or failure on the
part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Registrar, the
Securities Depository, a Participant or otherwise) to notify the Beneficial Owner of the Bond so affected,
shall not affect the validity of the redemption of such Bond.
In addition to the foregoing notice, the City shall provide such notices of redemption as are required by
the Disclosure Undertaking. The Paying Agent is also directed to comply with any mandatory or
voluntary standards then in effect for processing redemptions of municipal securities established by the
State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect
or invalidate the redemption of any Bond.
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Book Entry System
The following information concerning the Depository Trust Company (“DTC”) and DTC’s book-
entry system has been obtained from DTC. The City takes no responsibility as to the accuracy or
completeness thereof and neither the Indirect Participants nor the Beneficial Owners should rely on
the following information with respect to such matters, but should instead confirm the same with
DTC or the Direct Participants, as the case may be. There can be no assurance that DTC will abide
by its procedures or that such procedures will not be changed from time to time.
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of the Bonds, each in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries)that
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AAA. The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished
by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
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Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City or its agent on the payable date in accordance with their respective holdings shown on
DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in “street name,” and will be the responsibility of such Participant and not of DTC or the City,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may
be requested by an authorized representative of DTC) is the responsibility of the City or its agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Bonds purchased or tendered, through its
Participant, to the Paying Agent, and shall effect delivery of such Bonds by causing the Direct Participant
to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Paying Agent. The
requirement for physical delivery of the Bonds in connection with an optional tender or a mandatory
purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct
Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Paying
Agent’s DTC account.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository
is not obtained, certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
-7-
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to the Constitution, particularly including Article 12, § 5 thereof,
and statutes of the state of Kansas, including K.SA. 12-1617h, and an ordinance and resolution adopted
by the governing body of the City (collectively the “Bond Resolution”). The proceeds of the Bonds will
be used for the purpose of paying a portion of the cost of certain land acquisitions for the benefit of the
Newton City-County Airport and surrounding envrions.
SOURCES AND USES OF FUNDS
The composition of the Bonds is as follows:
Sources of Funds:
Principal Amount $1,130,000.00
Reoffering Premium 15,765.45
Total Sources of Funds $1,145,765.45
Uses of Funds:
Deposit to Improvement Fund $1,112,613.00
Costs of Issuance 24,200.00
Underwriter’s Compensation 7,816.81
Deposit to Debt Service Account:
Rounding 1,135.64
Total Uses of Funds $1,145,765.45
SECURITY AND FINANCING
The Bonds shall be general obligations of the City payable as to both principal and interest from ad
valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
property, real and personal, within the territorial limits of the City. The full faith, credit and resources of
the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the
same become due.
Levy and Collection of Annual Tax, Transfer to Debt Service Account
The governing body of the City shall annually make provision for the payment of principal of, premium,
if any, and interest on the Bonds as the same become due by, to the extent necessary, levying and
collecting the necessary taxes upon all of the taxable tangible property within the City in the manner
provided by law. Such taxes shall be extended upon the tax rolls in each of the several years,
respectively, and shall be levied and collected at the same time and in the same manner as the other ad
valorem taxes of the City are levied and collected. The proceeds derived from said taxes shall be
deposited in the Bond and Interest Fund, shall be kept separate and apart from all other funds of the City,
shall thereafter be transferred to the Debt Service Account and shall be used solely for the payment of the
principal of and interest on the Bonds as and when the same become due, taking into account any
scheduled mandatory redemptions, and the fees and expenses of the Paying Agent.
-8-
FUTURE FINANCING
The City anticipates issuing additional long-term general obligation debt within the next 90 days. The
General Obligation Bonds, Series 2015-C in the approximate amount of $2,620,000 and the Taxable
General Obligation Bonds, Series 2015-D in the approximate amount of $2,525,000 are expected to settle
on December 30, 2015.
ABSENCE OF LITIGATION
The City, in the ordinary course of business, is a party to various legal proceedings. In the opinion of
management of the City, any judgment rendered against the City in such proceedings would not
materially adversely effect the financial position of the City.
There is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby
any question is raised or may be raised, questioning, disputing or affecting in any way the legal
organization of the City or its boundaries, or the right or title of any of its officers to their respective
offices, or the legality of any official act shown to have been done in the transcript evidencing the
issuance of the Bonds, or the constitutionality or validity of the indebtedness represented by the Bonds
shown to be authorized in said transcript, or the validity of the Bonds, or any of the proceedings had in
relation to the authorization, issuance or sale thereof, or the levy and collection of a tax to pay the
principal and interest thereof.
APPROVAL OF LEGALITY
All matters incident to the authorization and issuance of the Bonds are subject to the approval of Gilmore
& Bell, P.C., Wichita, Kansas, Bond Counsel to the City. The factual and financial information appearing
herein has been supplied or reviewed by certain officials of the City and its certified public accountants,
as referred to herein, and Bond Counsel expresses no opinion as to the accuracy or sufficiency thereof,
except for the matters appearing in the sections of this Official Statement captioned “THE BONDS,”
“TAX MATTERS,” “APPENDIX I – PROPOSED FORMS OF BOND COUNSEL OPINIONS,” and
“APPENDIX II – SUMMARY OF FINANCING DOCUMENTS.”
TAX MATTERS
disposing of the Bonds. This summary is based upon laws, regulations, rulings and judicial decisions
now in effect, all of which are subject to change (possibly on a retroactive basis). This summary does not
discuss all aspects of federal income taxation that may be relevant to investors in light of their personal
investment circumstances or describe the tax consequences to certain types of holders subject to special
treatment under the federal income tax laws (for example, dealers in securities or other persons who do
not hold the Bonds as a capital asset, tax-exempt organizations, individual retirement accounts and other
tax deferred accounts, and foreign taxpayers) and, except for the income tax laws of the State of Kansas,
does not discuss the consequences to an owner under state, local or foreign tax laws. The summary does
not deal with the tax treatment of persons who purchase the Bonds in the secondary market at a premium
or a discount. Prospective investors are advised to consult their own tax advisors regarding federal, state,
local and other tax considerations of holding and disposing of the Bonds.
-9-
In the opinion of Bond Counsel, under the law existing as of the issue date of the Bonds:
Interest Taxable. The interest on the Bonds is included in gross income for federal income tax purposes.
Kansas Tax Exemption. The interest on the Bonds is exempt from income taxation by the State of
Kansas.
Original Issue Premium. If a Bond is purchased at a price that exceeds the stated redemption price of the
Bond at maturity, the excess of the purchase price over the stated redemption price at maturity constitutes
premium on the Bond, and that Bond is referred to in this discussion as a “Taxable Premium Bond.” Under
Code § 171, the purchaser of a Taxable Premium Bond may elect to amortize the premium over the term of
the Taxable Premium Bond using constant yield principles, based on the purchaser’s yield to maturity. An
owner of a Taxable Premium Bond amortizes bond premium by offsetting the qualified stated interest
allocable to an accrual period with the bond premium allocable to that accrual period. This offset occurs
when the owner takes the qualified stated interest into income under the owner’s regular method of
accounting. If the premium allocable to an accrual period exceeds the qualified stated interest for that
period, the excess is treated by the owner as a deduction under Code § 171(a)(1). As premium is amortized,
the owner’s basis in the Taxable Premium Bond will be reduced by the amount of amortizable premium
properly allocable to the owner. Prospective investors should consult their own tax advisors concerning the
calculation and accrual of bond premium.
Sale, Exchange or Retirement of Bonds. Upon the sale, exchange or retirement (including redemption) of
a Bond, an owner of the Bond generally will recognize gain or loss in an amount equal to the difference
between the amount of cash and the fair market value of any property received on the sale, exchange or
retirement of the Bond (other than in respect of accrued and unpaid interest) and such owner’s adjusted
tax basis in the Bond. To the extent the Bonds are held as a capital asset, such gain or loss will be capital
gain or loss and will be long-term capital gain or loss if the Bond has been held for more than 12 months
at the time of sale, exchange or retirement.
RISK FACTORS AND INVESTMENT CONSIDERATIONS
A PROSPECTIVE PURCHASER OF THE BONDS DESCRIBED HEREIN SHOULD BE AWARE

THAT THERE ARE CERTAIN RISKS ASSOCIATED WITH THE BONDS WHICH MUST BE
RECOGNIZED. THE FOLLOWING STATEMENTS REGARDING CERTAIN RISKS
ASSOCIATED WITH THE OFFERING SHOULD NOT BE CONSIDERED AS A COMPLETE
DESCRIPTION OF ALL RISKS TO BE CONSIDERED IN THE DECISION TO PURCHASE
THE BONDS. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD ANALYZE
CAREFULLY THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT AND
ADDITIONAL INFORMATION IN THE FORM OF THE COMPLETE DOCUMENTS
SUMMARIZED HEREIN, COPIES OF WHICH ARE AVAILABLE AND MAY BE OBTAINED
FROM THE ISSUER OR THE UNDERWRITER.
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Market for the Bonds
There is no assurance that a secondary market will develop for the purchase and sale of the Bonds. Prices
of B traded in the secondary market, though, are subject to adjustment upward and downward in response
to changes in the credit markets. From time to time it may be necessary to suspend indefinitely secondary
market trading in the Bonds as a result of financial condition or market position of broker-dealers,
prevailing market conditions, lack of adequate current financial information about the City, or a material
adverse change in the financial condition of the City, whether or not the Bonds are in default as to
principal and interest payments, and other factors which may give rise to uncertainty concerning prudent
secondary market practices.
Legal Matters
Various state and federal laws, regulations and constitutional provisions apply to the Bonds created by the
Bonds. There is no assurance that there will not be any change in, interpretation of, or addition to such
applicable laws, provisions and regulations which would have a material effect, either directly or
indirectly, on the City or the taxing authority of the City. Changes in laws affecting the taxing authority
of the City could limit the ability of the City to collect revenue sufficient to pay principal and interest on
the Bonds.
Limitations on Remedies Available to Owners of Bonds
The enforceability of the rights and remedies of the owners of the Bonds, and the Bonds incurred by the
City in issuing the Bonds, are subject to the following: the federal Bankruptcy Code and applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the
enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may
limit the specific enforcement under state law of certain remedies; the exercise by the United States of
America of the powers delegated to it by the United States Constitution; and the reasonable and necessary
exercise, in certain unusual situations, of the police power inherent in the State of Kansas and its
governmental subdivisions in the interest of serving a legitimate and significant public purpose.
Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could
subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy and
otherwise, and consequently may involve risks of delay, limitation or modification of their rights.
RATING
Standard & Poor’s Ratings Services (“Standard & Poor’s”), 55 Water Street, New York, New York has
assigned a rating of “AA-” to the Bonds. The rating reflects only the opinion of Standard & Poor’s. Any
explanation of the significance of the rating may be obtained only from Standard & Poor’s.
There is no assurance that the rating will continue for any given period of time, or that such rating will not
be revised, suspended or withdrawn, if, in the judgment of Standard & Poor’s, circumstances so warrant.
A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the
Bonds.
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MUNICIPAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota and Kansas
City, Missouri (“Springsted”), as municipal advisor in connection with certain aspects of the issuance of
the Bonds. In preparing this Official Statement, Springsted has relied upon governmental officials, and
other sources, who have access to relevant data to provide accurate information for this Official
Statement, and Springsted has not been engaged, nor has it undertaken, to independently verify the
accuracy of such information. Springsted is not a public accounting firm and has not been engaged by the
City to compile, review, examine or audit any information in this Official Statement in accordance with
accounting standards. Springsted is an independent advisory firm, registered as a municipal advisor, and
is not engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
CERTIFICATION
The City has authorized the distribution of the Preliminary Official Statement for use in connection with
the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The
Underwriter will be furnished with a certificate signed by the appropriate officers of the City stating that:
: (a) to the best of their knowledge, the Official Statement, other than the sections entitled “The Bonds-
Book Entry System,” “Rating,” “Approval of Legality,” “Tax Matters” and Appendices I and II, about
which the Issuer expresses no opinion, is true in all material respects, and does not contain any untrue
statement of a material fact or does not omit to state a material fact, necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading; (b) as
of the Issue Date there has been no material adverse change in the financial condition or the financial
affairs of the Issuer since the date of the Official Statement; and (c) no other event has occurred which is
necessary to be disclosed in the Official Statement in order to make the statements therein not misleading
in any material respect as of the date of such certificate.
UNDERWRITING
An underwriting syndicate managed by UMB Bank, N.A., in Kansas City, Missouri with member First
Bank of Newton (collectively, the “Purchaser”) has agreed to purchase the Bonds for a purchase price of
$1,137,948.64 (representing the principal amount of $1,130,000.00, plus a reoffering premium of
$15,765.45 and less the underwriter’s compensation of $7,816.81). The public offering prices of all the
Bonds may be changed from time to time by the Purchaser.
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CITY PROPERTY VALUES
The determination of assessed valuation and the collection of property taxes for all political subdivisions
in the State of Kansas is conducted by Kansas counties. The Harvey County Appraiser’s office
determines annually the assessed valuation that is used as a basis for the mill levy on property located in
the City. The County Appraiser’s determination is based on criteria established by Kansas Statutes.
The market valuation of every property must be updated every year, with physical inspection required
once every six years. Valuations as of January 1 are made available in September of each year for taxes
payable during the next calendar year. The State Constitution provides that, for ad valorem taxation
purposes, real and personal property are divided into classes and assessed at percentages of market value.
Trend of Values
Harvey Taxable Assessed

County Appraised Assessed Motor Tangible
Year(a) Sales Ratio Valuation Valuation(b) Vehicles Valuation
2015/16(c) N/A N/A $118,091,383 N/A $135,235,572

2014/15 100.0%(d) $800,408,755 117,140,894 $17,144,189 134,285,083
2013/14 100.0(d) 795,829,943 116,974,268 16,974,048 133,659,354
2012/13 101.3 791,414,304 114,979,257 16,685,086 131,664,343
2011/12 101.2 781,274,217 114,957,329 16,765,853 131,723,182
2010/11 97.2 758,847,049 110,532,316 16,698,797 127,231,113
2009/10 96.1 755,759,652 109,591,288 17,604,906 127,196,194
(a) As valued in the first year for the purpose of computing the rates of taxes collectible in the following year.
(b) The value of motor and recreational vehicles is not included in total property valuation for determining the
property tax levy. It is, however, included in total property valuation for determining the County’s debt limit.
(c) Preliminary; subject to change.
(d) Preliminary 2014 preliminary sales ratio, 2014 final sales ratio, and 2015 preliminary sales ratios are not yet
available.
Sources: The Harvey County Clerk’s Office and the Kansas Department of Revenue, http://www.ksrevenue.org.
For an explanation of Kansas property taxes, see Appendix III.
2015/16 Preliminary Equalized Assessed Tangible Valuation: $135,235,572

Real Property $109,177,299 92.4%
Personal Property 2,798,333 2.4
State Assessed Utilities 6,115,751 5.2
Total Taxable Assessed

Valuation $118,091,383 100.0%
Motor Vehicles (2014) 17,144,189
Total Equalized Assessed
Tangible Valuation $135,235,572
Source: Harvey County Clerk’s Office September 2015.
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Ten of the Largest Taxpayers in the City
2014/15 Taxable
Taxpayer Type of Property Assessed Value
Walmart Retail Store $ 2,146,653
Kansas Gas and Electric Utility 2,011,027
Cargill Grain Elevator and Mill 1,596,670
Kansas Gas Service Utility 1,266,187
BNSF Railway Company Railroad 1,038,877
Dillons Companies Grocery Stores 998,606
Norcraft Companies Wood Cabinets/Manufacturing 866,358
Newton Medical Center Medical Services 850,000
Broadway Hospitality Holiday Inn Hotel 752,017
Dillons Real Estate Convenience Store 724,731
Total $12,251,126*
* Represents 9.1% of the City's 2014/15 equalized assessed tangible valuation of $134,285,083.
CITY INDEBTEDNESS
2015/16 Total Equalized Assessed Tangible Valuation $135,235,572

Debt Limit Ratio 30%
Debt Limit $ 40,570,672
Outstanding Debt Subject to Debt Limit (26,412,345)
Debt Authority Remaining as of November 10, 2015 $ 14,158,327
NOTE: General obligation bonds and temporary notes issued to finance utility improvements, revenue bonds,
and refunding bonds are not subject to the debt limit.

9-1-04 $ 515,000 Taxable Refunding 9-1-2024 $ 310,000 100.00 $ 310,000
11-1-06 9,515,000 Improvements 9-1-2019 1,830,000 50.61 926,163
11-1-06 1,100,000 Taxable Improvements 9-1-2016 135,000 100.00 135,000
11-1-07 2,300,000 Improvements 9-1-2027 1,605,000 -0- -0-
4-1-08 12,600,000 Improvements 9-1-2028 9,710,000 90.48 8,785,608
4-1-08 710,000 Taxable Improvements 9-1-2018 265,000 100.00 265,000
7-1-09 6,815,000 Refunding &
Improvements 9-1-2029 4,655,000 48.18 2,242,779
7-15-10 7,800,000 Refunding &
Improvements 9-1-2030 5,540,000 70.21 3,889,634
12-1-10 2,000,000 Taxable Improvements 12-1-2030 2,000,000 100.00 2,000,000
12-15-10 2,935,000 Tax Increment
Improvements 12-1-2030 2,690,000 -0- -0-
4-1-12 3,570,000 Refunding 9-1-2024 3,150,000 72.06 2,269,890
3-26-13 9,595,000 Refunding &
Improvements 9-1-2033 9,290,000 47.99 4,458,271
11-10-15 1,130,000 Taxable Improvements
(the Series 2015-B
Bonds) 9-1-2026 1,130,000 100.00 1,130,000
Total $42,310,000 $26,412,345
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State Revolving Loans
1999 $2,086,456 Water 8-1-2017 $ 493,171 -0- -0-

2002 1,207,034 Sewer 2-1-2019 464,031 -0- -0-
2004 1,231,500 Water 2-1-2020 416,830 -0- -0-
2006 1,070,150 KDOT 8-1-2029 177,783 -0- -0-
2008 651,533 Water 2-1-2029 457,823 -0- -0-
2010 1,749,683 Water 9-1-2022 1,325,511 -0- -0-
2010 7,181,779 Sewer 9-1-2029 5,329,360 -0- -0-
Total $8,664,509
Public Building Commission Revenue Bonds*

6-1-04 $2,685,000 Athletic Facilities 2-1-2024 $1,785,000 -0- -0-

3-1-05 6,685,000 Golf Course 3-1-2017 835,000 -0- -0-
5-1-12 5,915,000 Refunding 3-1-2025 5,315,000 -0- -0-
Total $7,935,000
* These issues are secured by rental payments made from the City to the City of Newton, Kansas Public Building
Commission. The City’s obligation under the lease agreements is not subject to annual appropriation.
County Public Building Commission Revenue Bonds*

3-6-14 $1,230,000 Airport (AMT) 8-1-2033 $1,230,000 -0- -0-

3-6-14 148,000 Taxable Airport 8-1-2020 148,000 -0- -0-
Total $1,378,000
* The Bonds are secured by lease payments made from the City and the County to the Harvey County Public
Building Commission. The City’s obligation under the lease agreements is not subject to annual appropriation.
- 15 -
Estimated Calendar Year Debt Service Payments Including the Bonds
General Obligation Bonds State Revolving Loans
Year Principal Principal & Interest(a) Principal Principal & Interest
2015 (at 11-10) $ 125,000 $ 233,147 (Paid) (Paid)
2016 2,790,000 4,332,409 $ 804,566 $ 1,047,308
2017 3,030,000 4,478,438 793,356 1,010,643
2018 3,140,000 4,486,878 746,502 938,826
2019 3,165,000 4,401,628 695,478 864,610
2020 3,280,000 4,407,636 583,036 732,680
2021 3,395,000 4,414,899 554,034 687,994
2022 3,070,000 3,977,066 570,830 689,512
2023 3,170,000 3,972,701 513,509 616,963
2024 3,300,000 3,993,879 529,068 618,387
2025 3,000,000 3,578,864 545,103 619,856
2026 3,110,000 3,580,254 561,627 621,369
2027 2,335,000 2,681,329 578,658 622,929
2028 2,275,000 2,517,196 596,209 624,537
2029 1,340,000 1,479,656 592,533 604,430
2030 945,000 1,022,288
2031 270,000 303,600
2032 280,000 302,800
2033 290,000 301,600
Total $42,310,000 (b) $54,466,268 $8,664,509(c) $10,300,044
Public Building Commission County Public Building

Revenue Bonds Commission Revenue Bonds
Year Principal Principal & Interest Principal Principal & Interest
2015 (at 11-10) (Paid) (Paid) -0- (Paid)
2016 $ 725,000 $ 942,335 -0- $ 51,366
2017 710,000 896,920 $ 36,000 87,366
2018 790,000 951,260 36,000 86,376
2019 815,000 956,080 37,000 86,386
2020 855,000 974,955 74,000 122,369
2021 855,000 953,076 75,000 121,421
2022 850,000 925,581 75,000 119,359
2023 855,000 907,062 80,000 122,034
2024 865,000 892,386 80,000 119,394
2025 615,000 622,380 85,000 121,594
2026 85,000 118,513
2027 90,000 120,283
2028 95,000 121,683
2029 100,000 122,788
2030 100,000 118,638
2031 105,000 119,388
2032 110,000 119,873
2033 115,000 120,060
Total $7,935,000 $9,022,035 $1,378,000(d) $1,998,891
(a) Includes debt service on the Bonds based on the interest rates shown on the inside front cover of this Official
Statement.
(b) 67.3% of this debt will be retired within ten years.
(c) 73.1% of this debt will be retired within ten years.
(d) 48.1% of this debt will be retired within ten years.
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Debt Payment Record
The City has never in its history monetarily defaulted on the payment of any of its debt or lease
obligations.
Overlapping Debt
Debt Applicable
Est. G.O. Debt to Value in City
Taxing Unit* As of 11-10-15 Percent Amount
Harvey County $ 3,780,000 18.65% $ 704,970
USD No. 373 (Newton) 38,195,000 59.58 22,756,581
Total $23,461,551
* Only those units with outstanding general obligation debt are shown here.
Debt Ratios*
G.O. G.O. Direct &
Direct Debt Overlapping Debt
2014/15 Appraised Valuation ($800,408,755) 5.27% 8.20%
2015/16 Equalized Assessed Tangible
Valuation ($135,235,572) 31.19% 48.54%
Per Capita - (19,120 - 2014 U.S. Census Estimate) $2,206 $3,433
* Excludes state revolving loans, Public Building Commission revenue bonds, and County Public Building
Commission revenue bonds.
CITY TAX RATES, LEVIES AND COLLECTIONS
Property taxes are certified by the City to the County Clerk by August 25 of each year for the following
fiscal year. Taxes are levied by the County Clerk and payable to the County Treasurer. Property taxes
may be paid in two installments, the first due December 20 in the year the taxes are levied and the second
due May 10 of the following year. Taxes become delinquent after May 10 and interest accrues at a rate
set by State statute until paid or until the property is sold for taxes. Special assessments are levied and
collected in the same manner as property taxes.
Tax Rates (Expressed in Mills)
Tax Rates of the City
Levy Budget Bond Special Total

Year Year General Airport and Interest Library Liability City
2014 2015 43.739 0.647 1.873 5.708 0.129 52.096
2013 2014 42.704 0.656 1.843 5.674 0.237 51.114
2012 2013 34.793 0.731 4.443 5.646 0.236 45.849
2011 2012 34.552 0.731 4.413 5.608 0.236 45.540
2010 2011 34.265 0.760 3.201 5.583 0.071 43.880
- 17 -
Tax Rates for Jurisdictions Overlapping with the City
Levy Budget City of Harvey USD No. 373

Year Year Newton County (Newton) State Other Total
2014 2015 52.096 36.238 60.478 1.500 0.257 150.569

2013 2014 51.114 35.586 65.005 1.500 0.254 153.459
2012 2013 45.849 31.449 65.407 1.500 0.255 144.460
2011 2012 45.540 31.316 65.098 1.500 0.257 143.711
2010 2011 43.880 28.771 64.722 1.500 0.266 139.139
Tax Levies and Collections
The City may levy taxes in accordance with the requirements of its adopted budget and within the
restrictions of Kansas statute. The County Clerk determines property tax levies based on the assessed
valuation provided by the appraiser and spreads the levies on the tax rolls.
Ratio
2014/15* $6,218,542 $2,954,524 47.5% $ 0 $2,954,524 47.5%

2013/14 6,010,719 5,513,304 91.7 146,337 5,659,641 94.2
2012/13 5,414,555 5,292,695 97.7 169,836 5,462,531 100.9
2011/12 5,173,889 4,998,579 96.6 82,269 5,080,848 98.2
2010/11 4,845,866 4,678,168 96.5 173,072 4,851,240 100.1
Source: Harvey County.
Special Assessment Collections
Ratio
2014/15* $1,232,753 $ 450,928 36.6% $ 0 $ 450,928 36.6%

2013/14 1,260,600 1,093,610 86.8 11,890 1,105,500 87.7
2012/13 1,215,878 1,153,144 94.8 85,035 1,238,179 101.8
2011/12 1,227,498 1,086,632 88.5 149,234 1,235,866 100.7
2010/11 1,285,592 1,009,545 85.5 178,384 1,277,929 99.4
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Sales Tax Collections
Harvey County levies a sales and use tax within the County limits, of which 1.00% is shared among
Harvey County and the various cities located therein, including the City. The sales tax is paid on
purchases made within Harvey County, and the use tax is paid on tangible personal property purchased
from other states which is used, stored or consumed in the State of Kansas where no sales tax was paid.
In 2006, Harvey County voters approved an additional 1.00% sales and use tax for the purpose of
providing property tax relief to citizens.
Each of the above sales and use taxes are distributed to each entity pursuant to a formula based on each
entity’s population. The following table sets forth the City’s sales and use tax collections in the years
indicated:
Amount
Year Received
2015* $2,822,538
2014 5,084,012
2013 4,846,037
2012 4,746,534
2011 4,608,436
2010 4,351,084
2009 4,437,602
2008 4,689,626
2007 4,298,112
2006 1,930,477
* 2015 information is as of July 31, 2015.
FUNDS ON HAND
As of July 31, 2015
Fund Cash and Investments
General Fund $ 4,987,200

Special Revenue Funds 849,957
Debt Service Fund 3,276,867
Enterprise Funds 9,816,409
Internal Service Funds 2,868,179
Total $21,798,612
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INVESTMENTS
The City has a formal investment policy, adopted by the City Commission. The governing body of the
City has authority to invest all operating funds of the City pursuant to K.S.A. 12-1675, a State law which
governs the investment of public funds by governmental subdivisions, units, and entities. As of July 31,
2015, the City has cash and investments totaling $21,798,612.
The City may invest its funds pursuant to K.S.A. 12-1675, a state law which governs the investment of
public funds by governmental subdivisions, units, and entities. K.S.A. 12-1675 authorizes the City to
invest in the following:
1) its own temporary notes or no-fund warrants;
2) time deposit, open accounts, certificates of deposit or time certificates of deposit with maturities
of not more than two years in banks, savings and loan associations and savings banks;
3) repurchase agreements with banks, savings and loan associations and savings banks;
4) United States treasury bills or notes with maturities not exceeding two years;
5) in the municipal investment pool fund established in K.S.A. 1997 Supp. 12-1677a;
6) in the investments authorized and in accordance with the conditions prescribed in K.S.A. 1997
Supp. 12-1677b; or
7) in multiple municipal client investment pools managed by trust departments of commercial banks
which have offices located in the City or with trust companies incorporated under the laws of this
state which have contracted to provide trust services under the provisions of K.S.A. 9-2107.
The local banks have a right of first refusal under the statute for the investments described in (2) or (3)
above, and the City is authorized to make the other investments described above only if the local banks
have refused. The municipal investment pool described in paragraph (5) above and in part (b) of the
following paragraph is statutorily limited to those investments permitted for state monies under Kansas
law. Permissible investments include:
1) direct obligations of, or obligations that are insured as to principal and interest by the United
States of America or any agency thereof and obligations and securities of United States sponsored
enterprises which under federal law may be accepted as security for public funds, provided that,
after July 1, 1996 no investment may be made in mortgage-backed securities of such enterprises
and of the Government National Mortgage Association (any investments existing before July 1,
1996 will be permitted to mature);
2) state agency bonds and projects; or commercial paper that does not exceed 270 days to maturity
and which has received one of the two highest commercial paper credit ratings by a nationally
recognized rating firm; or
3) repurchase agreements with a Kansas bank or a primary government securities dealer which
reports to the market reports division of the Federal Reserve Bank of New York for direct
obligations of, or obligations that are insured as to principal and interest by the United States
government or any agency thereof and securities of United States government sponsored
enterprises which under federal law may be accepted as security for public funds. The municipal
investment pool and all of state monies for investment, on a competitive basis, to qualified banks.
Any such investments in qualified banks are required to be secured by a pledge of securities as
required by K.S.A. 1995 Supp. 75-4218.
The City (and the accounting staff of the City) has the responsibility for making and monitoring the
investments made under these statutes and City ordinances and resolutions. For additional information
regarding the City’s financial position, see Appendix IV of this Official Statement.
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GENERAL INFORMATION CONCERNING THE CITY
The City is the Harvey County seat, is located approximately 25 miles north of the City of Wichita,
Kansas, and encompasses approximately 12.6 square miles (8,064 acres).
Population
The City’s population trend is shown below.
Percent
Population Change
2014 U.S. Census Estimate 19,120 (0.1)%

2010 U.S. Census 19,132 11.3
2000 U.S. Census 17,190 2.9
1990 U.S. Census 16,700 2.3
1980 U.S. Census 16,332 --
Source: United States Census Bureau, http://www.census.gov/.
The City’s population by age group for the past two years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2014/15 5,082 3,978 6,901 3,171

2013/14 5,092 4,064 6,999 3,222
Transportation
The City is transversed by both US Highway 50 and Interstate 135. The Newton City/County Airport,
which is owned jointly by the County and the City, is located within the City and is managed by the City.
The airport has a 7,000-foot runway to accommodate commercial jets and a 3,500-foot crosswind runway
to handle private and corporate aircraft. The County and the City will be constructing a new community
hangar facility at the Newton City/County Airport, along with apron and taxi-way improvements, which
are being financed with proceeds of the Bonds. Wichita Mid-Continent Airport, located in the nearby
City of Wichita, offers commuter and cargo flights to County residents. Rail service is provided to the
County by the Burlington Northern Santa Fe Railroad and the Union Pacific Railroad.
- 21 -
Major Employers
Approximate
Number
Employer Product/Service of Employees
Unified School District No. 373
(Newton) Education 847
Newton Medical Center Medical Services 560
Norcraft Companies Wood Cabinets/Manufacturing 400
BNSF Railway Company Railroad 380
Walmart Retail Store 275
Prairie View Hospital Hospital 258
City of Newton Government 225
Dillon’s Stores Grocery Store 213
Harvey County Government 182
Asbury Park Retirement Home 180
Source: This does not purport to be a comprehensive list and is based on a September 2015 best efforts telephone
survey of individual employers. Some employers do not respond to inquiries.
Labor Force Data

Annual Average July
2011 2012 2013 2014 2015
Labor Force:
Harvey County 17,402 17,241 17,123 17,225 17,092
State of Kansas 1,491,258 1,484,016 1,486,764 1,500,353 1,493,222
Unemployment Rate:
Harvey County 6.2% 5.5% 4.9% 4.2% 4.8%
State of Kansas 6.5 5.8 5.3 4.5 5.1
Source: Kansas Labor Information Center, http://www.klic.dol.ks.gov. 2015 data are preliminary.
Retail Sales and Effective Buying Income (EBI)

City of Newton

2014/15 $216,892 $351,907 $39,507
2013/14 248,481 350,652 38,931
Harvey County

2014/15 $375,508 $683,437 $43,341
2013/14 $379,888 672,060 42,645
2012/13 352,166 596,933 36,361
2011/12 431,927 618,765 39,064
The 2014/15 Median Household EBI for the State of Kansas was $44,803. The 2014/15 Median
Household EBI for the United States was $45,448.
- 22 -
Permits Issued by the City
New Single New Total Value(a)

Family Residential Commercial/Industrial (All Permits)
Year Number Value Number Value
2015 (to 7-31) 11 $1,766,199 21 $ 4,056,481 $ 2,171,680
2014 21 3,844,565 57 27,295,717(b) 31,140,282
2013 16 2,666,944 49 6,767,636 9,434,580
2012 25 4,308,425 68 3,585,811 7,894,236
2011 16 2,374,085 49 2,737,834 5,111,919
2010 20 2,781,044 44 5,045,997 7,827,041
(a) In addition to building permits, the total value includes all other permits issued by the City (i.e. heating,
lighting, plumbing, roof replacement, etc.).
(b) The City issued permits for a $17.2 million wastewater treatment plant and a $5 million manufacturing buiding
at the airport.
Source: City of Newton.
Economic Development
Infrastructure investments, rail, water and sewer, access roads, power lines, highway and interchange
improvements are in place or in progress at the Kansas Logistics Park, which is an industrial park open to
a broad scope of businesses and manufacturers. In addition to the development of the Kansas Logistics
Park, the following projects are underway:
o Approximately $63 million in State and federal funding is being applied to new infrastructure,
public safety, and economic development projects throughout the City;
o Expansion of multiple facilities at the Newton City-County Airport;
o Reconstruction of a runway at the Newton City-County Airport in the amount of approximately
$7.8 million (90% in federal funding, 5% of State funding, and 5% to be split between the City
and Harvey County);
o Demolition and replacement of the Ash Street Bridge;
o Reconstruction of South Kansas Avenue to accommodate expansion at the Newton Medical
Center, the proposed YMCA facility, and additional residential and commercial growth;
o Expansion and construction of several local businesses, including Kansas Electric, Concrete
Vaults Inc., Future Foam, Asbury Park Senior Residential Center, and an additional private
medical office facility on the Newton Medical Center campus; and
o Private investment in the City’s historic Main Street retail and commercial district.
Wastewater Treatment Plant
The City’s largest public works project in recent decades was started in 2014. The upgrade project will
increase wastewater capacity from 3 million gallons a day to 4.4 million gallons per day. Upon
completion in 2015, the City plant will meet the Biological Nutrient Reduction (BNR) requirements for
the discharge of nutrients like nitrogen and phosphorus.
The cost for the project is expected to be approximately $26 million. The City saved approximately
$3 million from previous rate increases to apply to the project. The average City residential customer
uses approximately 600 cubic feet per month, and should expect to see a Plant Upgrade Fee of $21.99 in
2015.
- 23 -
Passenger Rail Support
Passenger rail is at the heart and core of the City. The City is on Amtrak’s transcontinental Southwest
Chief line, the City stop registers a high number of passengers for the State of Kansas. Due to
deterioration of track between the City and the City of Raton, New Mexico, and the reduction in
passenger rail speed from 90 mph to as low as 60 mph in some locales, Amtrak has required the track be
repaired at State/local government expense or risk losing passenger rail service. A coalition of western
Kansas cities was formed, and the City contributed $15,000 to support a successful application for a
$12.5 million Transportation Investment Generating Economic Recovery (TIGER) grant from the United
States Department of Transportation (USDOT). The cost for the needed track repairs is estimated at
$100 million in immediate construction, and $10 million per year for annual maintenance.
Recreation Enhancements
Recreation facilities and amenities were identified as high priority by participating citizens in the 2010
20-year comprehensive plan of the City. The existing facilities of the Newton Recreation Commission
were renovated in 2014, in part, with a five-year no-interest loan from the City.
Additionally, a 40,000 square foot Wichita Metro YMCA is planned for construction to be located on
ground donated near the footprint of the Newton Medical Center. The City Commission authorized the
issuance of $16 million in Industrial Revenue Bonds to finance the construction of the new facility, and
the community generated $5 million in private donations. The community gains the benefit of the project,
yet the City carries no liability or cost associated with the IRBs, even in the case of default. Construction
is in progress.
ABI Chemicals Builds at the City’s Municipal Airport
ABI Group of Companies (“ABI”) completed a 20,000 square-foot manufacturing plant and hangar at the
Newton City/County Airport in 2014. The project was a $6.2 million project, with ABI Chemicals
investing about $2.2 million in capital equipment and other upgrades.
The new facility houses ABI's chemical milling capability and work on a next-generation aerospace
coating process. The new facility initially has employed approximately eighteen people. Additionally,
the coating product has brought ABI into a new partnership with the National Institute for Aviation
Research at Wichita State University Innovation Campus.
Comprehensive Plan Progress
In 2010, the City introduced a comprehensive plan entitled ReNewton 2030. Pursuant to its vision
statement, between 2010 and 2030, the City will expand its tax base and enhance community amenities
while preserving its richness of character, heritage, and way of life. During the past year, several
community projects have been studied and initiated under the ReNewton plan, including:
o Hiking and biking trails throughout the City and Harvey County;
o Building loft apartments and creating social third spaces on Main Street;
o Renovation and program enhancements to the historic Newton Fox Theater;
o Continued efforts to build mutually beneficial relationships between Bethel College and the
Newton community;
o Community assessment of the need for an off-leash dog park;
o Movement toward additional community recreation facilities; and
o A potential referendum for a new public library facility.
- 24 -
Financial Institutions
The following full service banks are located in the City*:
Deposits
As of 6-30-15
First Bank of Newton $158,687,000
The Midland National Bank of Newton 120,208,000
Total $278,895,000
In addition, branch offices of Bank of the West, Central National Bank, Community National Bank &
Trust, and The Citizens State Bank are located throughout the City.
* This does not purport to be a comprehensive list.
Source: Federal Deposit Insurance Corporation, http://www2.fdic.gov/idasp/main.asp.
Health Care Facilities

The following is a summary of inpatient health care facilities located in the City:
Facility Location No. of Beds

Newton Medical Center City of Newton 103
Prairie View Hospital City of Newton 60
Source: Kansas Department of Health and Environment, www.kdheks.gov/bhfr/fac_list/.
Education
Public Education
The City is served primarily by Unified School District No. 373 (Newton), which had a 2014/15
enrollment of 3,700 students. (The 2015/16 enrollment figure is not yet available.)
Non-Public Education
City residents are also served by the following private schools:
2014/15*
School Location Grades Enrollment
St. Mary Catholic School City of Newton K-8 149
* 2015/16 enrollment figures are not yet available.
Post-Secondary Education
Post-secondary education is available to City residents at Bethel College, a private four-year school
located just north of the City. In addition, there are twelve colleges and universities in the area including
Wichita State University, University of Kansas School of Medicine, Friends University, and Newman
University.
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GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
The City is a municipal corporation, is a city of the first class under Kansas law, and has a Commissioner-
Manager form of government. Three of the five Commissioners are elected every two years, two of
which serve a four-year term and one of which serves a two-year term. The City Commission conducts
all legislative functions for the City, establishes general policies, and promotes the general welfare of the
City. The City Commission also appoints the City Manager and City Attorney. The City Manager is
responsible for the employment and supervision of all other staff, and carries out the provision of City
services according to the City Commission’s adopted policies and budget.
The following individuals comprise the current City Council:
Expiration of Term
Glen L. Davis Mayor December 2017

Barth Hague Vice Mayor December 2019
Leroy Koehn Commissioner December 2017
David A. Nygaard Commissioner December 2019
Kathy Valentine Commissioner December 2017
Key Appointed Officials
Employed Since
Randall K. Riggs City Manager March 1, 2008

Lunda Asmani Assistant City Manager for Budget and Finance May 17, 2010
Lisa Marshall Assistant Director of Finance December 17, 2007
Denise Duerksen City Clerk December 2, 2007
The daily administration of City operations is the responsibility of the appointed City Manager, who has
been with the City since March 2008. Previously, Mr. Riggs was the City Manager of the City of
Chanute, Kansas.
Mr. Lunda Asmani, Assistant City Manager for Budget and Finance, is responsible for the City’s
financial services. Previously, Mr. Asmani worked for Sedgwick County, Kansas.
The City has 205 regular full-time and 20 seasonal full- and part-time employees.
Municipal Utilities and Services
The City owns and operates its own water and sewer utility systems. Natural gas is supplied by Kansas
Gas Service, electricity is supplied by Westar Energy, telephone service is supplied by SBC, and cable
television is supplied by Cox Communication.
The City has 37 sworn police officers and 48 firefighters/emergency medical technicians. The City also
operates an emergency ambulance service for its residents and surrounding areas.
Labor Contracts
The City has no bargaining units.
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Recreational and Cultural Activities
Recreational and cultural opportunities available to residents throughout the City include sporting events,
movie theaters, parks, swimming pools, golf courses, tennis courts, a community theater, a symphony,
and museums. In addition, approximately 46 churches serve the community. Annual activities for the
community include the Bethel Fall Fest, the Harvey County Fair, and the Sand Creek Folk Art Festival.
Employee Pensions
The City participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police
and Firemen’s Retirement System (KP&F). Both are cost-sharing multiple-employer defined benefit
pension plans as provided by K.S.A. 74-4901, et seq. KPERS and KP&F provide retirement benefits, life
insurance, disability income benefits and death benefits. Kansas law establishes and amends benefit
provisions. KPERS and KP&F issue a publicly available financial report that includes financial
statements and required supplementary information. Those reports may be obtained by writing to KPERS
(611 S. Kansas, Topeka, KS 66603-3803) or by calling 1-888-275-5737.
As of December 31, 2014, KPERS serves over 295,000 members and approximately 1,500 participating
employers, including the State, school districts, counties, cities, public libraries, hospitals and other
governmental units. KPERS administers the following three statewide, defined benefit retirement plans
for public employees:
(a) Kansas Public Employees Retirement System;

(b) Kansas Police and Firemen’s Retirement System; and
(c) Kansas Retirement System for Judges.
These three plans are separate and distinct with different membership groups, actuarial assumptions,
experience, contribution rates and benefit options. The Kansas Public Employees Retirement System is
the largest of the three plans, accounting for more than 95% of the members. The Kansas Public
Employees Retirement System is further divided into two separate groups, as follows:
(a) State/School Group - includes members employed by the State, school districts,
community colleges, vocational-technical schools and educational cooperatives. The State of Kansas
makes all employer contributions for this group, 85% of which comes from the State General Fund. State
legislation enacted in 2003 made certain pre-1962 Board employees (which are part of a small group of
pre-1962 Board and University of Kansas Hospital Authority employees known as the “TIAA Group”),
special members of the State/School Group.
(b) Local Group - all participating cities, counties, library boards, water districts and political
subdivisions are included in this group. Local employers contribute at a different rate than the
State/School Group rate. State legislation enacted in 2003 made certain pre-1962 employees of the
University of Kansas Hospital Authority (which are a part of a small group of pre-1962 Board and
University of Kansas Hospital Authority employees known as the “TIAA Group”), special members of
the Local Group.
KPERS is currently a qualified, governmental, § 401(a) defined benefit pension plan, and has received
IRS determination letters attesting to the plan’s qualified status dated October 14, 1999 and March 5,
2001. KPERS is also a “contributory” defined benefit plan, meaning that employees make contributions
to the plan. This contrasts it from noncontributory pension plans, which are funded solely by employer
contributions. The City's employees currently annually contribute 6% of their gross salary to the plan if
such employees are KPERS Tier 1 members (covered employment prior to July 1, 2009) or KPERS Tier
2 members (covered employment on or after July 1, 2009).
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In 2012, the Legislature created a new KPERS Tier 3 category (covered employment on or after
January 1, 2015) based on a cash balance plan. Each Tier 3 member shall have a retirement annuity
account to which such participant shall contribute 6% of their gross salary to the plan. The employer or
State contribution varies based on longevity of participant service: (a) 3% for less than 5 years; (b) 4%
for at least 5 years but less than 12 years; (c) 5% for at least 12 years but less than 24 years; and (d) 6%
for 24 or more years. Such account shall receive an interest credit of 5.25% per annum, and under certain
circumstances, shall receive additional interest credits. Subject to certain exceptions, a Tier 3 member,
upon retirement, shall receive a single life annuity benefit.
Also in 2012, the Legislature adopted a number of other changes to KPERS including: (a) increasing the
statutory maximum employer contribution annual increase from 0.6% per year (status quo) to 0.9% per
year in 2014, 1.0% in 2015, 1.1% in 2016 and 1.2% per year in 2017 and thereafter, (b) eliminating
COLA adjustments for Tier 2 member with corresponding benefit adjustments (effective January 1,
2014), (c) providing additional flexibility for alternative investments for the plan, and (d) providing
additional contribution flexibility for Tier 1 members with corresponding benefit adjustments effective
January 1, 2014, subject to approval by the IRS (the IRS issued a private letter ruling stating the election
granted to Tier 1 members was impermissible; therefore, employee contributions for Tier 1 members
increased to 5% of compensation effective January 1, 2014, and to 6% of compensation effective January
1, 2015).
In 2015, the Legislature authorized, subject to certain conditions, the issuance of revenue bonds in an
amount not to exceed $1 billion (plus associated costs of issuance) (the “Revenue Bonds”), the proceeds
of which must be applied to the unfunded actuarial pension liability as directed by KPERS. The
repayment of the Revenue Bonds shall be subject to legislative annual appropriation, shall not be an
obligation of the KPERS system, and the full faith and credit or taxing power of the State shall not be
pledged to the repayment of the Revenue Bonds. Additionally, the statutory maximum annual increases
to employer contributions for State/School Group and certain employees of the State department of
corrections were modified as follows: (a) if the Revenue Bonds are issued and finance capitalized
interest, an increase of 1.1% in 2015 and 1.2% in 2016 and thereafter; or (b) if such Revenue Bonds are
not issued to finance capitalized interest, such rate of contribution shall be 10.91% in 2015 and 10.81% in
2016. The Revenue Bonds in the aggregate principal amount of $1,005,180,000 were issued on August
20, 2015, to finance a portion of the unfunded actuarial pension liability and costs of issuance, but did not
finance capitalized interest.
The City's contribution varies from year to year based upon the annual actuarial valuation and appraisal
made by KPERS, subject to legislative caps on percentage increases. The City's contribution is 9.48% of
the employee’s gross salary for calendar year 2015. The rate is scheduled to change to 9.18% beginning
January 1, 2016. In addition, the City contributes 1% of the employee’s gross salary for Death and
Disability Insurance for covered employees for the period beginning July 1, 2015, through June 30, 2016.
According to the Valuation Report as of December 31, 2014 (the “2014 Valuation Report”) the KPERS
Local Group, of which the City is a member, carried an unfunded accrued actuarial liability (“UAAL”) of
$1.487 billion at the end of 2014. The 2014 Valuation Report includes additional information relating to
the funded status of the KPERS Local Group, including recent trends in the funded status of the KPERS
Local Group, and is available on the KPERS website at kpers.org/about/reports.html. The City has no
means to independently verify any of the information set forth on the KPERS website or in the 2014
Valuation Report, which is the most recent financial and actuarial information available on the KPERS
website relating to the funded status of the KPERS Local Group. The 2014 Valuation Report sets the
employer contribution rate for the period beginning January 1, 2017, for the KPERS Local Group, and
KPERS’ actuaries identified that an employer contribution rate of 8.46% of covered payroll would be
necessary, in addition to statutory contributions by covered employees, to eliminate the UAAL by 2033,
the end of the actuarial period. The statutory contribution rate of employers currently equals the 2014
Valuation Report’s actuarial rate. As a result, members of the Local Group are adequately funding their
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projected actuarial liabilities and the UAAL can be expected to diminish over time. KPERS’ actuaries
project the required employer contribution rate to increase by the maximum statutorily allowed rate,
which is currently 0.9% in fiscal year 2014, then 1.0% in fiscal year 2015, 1.1% in fiscal year 2016 and
1.2% in fiscal year 2017 and thereafter.
The City has established membership in the Kansas Police and Fire Retirement System (“KP&F”) for its
police and fire personnel. KP&F is a division of and is administered by KPERS. Annual contributions
are adjusted annually based on actuarial studies, subject to legislative caps on percentage increases.
According to the 2014 Valuation Report, KP&F carried an UAAL of $726 million at the end of 2014.
The KP&F employer rate established for the City for 2014 was 19.92% for police and firefighters and
19.75% for emergency medical technicians. Employers participating in KP&F also make contributions to
amortize the liability for past service costs, if any, which is determined separately for each participating
employer. The City’s contributions are equal to the required contributions for each year.
The City’s contributions for the past five years are as follows:
KPERS KP&F
2014 $525,052 $996,198

2013 503,841 838,407
2012 445,030 772,158
2011 408,267 669,651
2010 360,827 563,465
In 2015, the City is required to implement GASB 68 – Accounting and Financial Reporting for Pensions.
According to KPERS’ Schedule of Employer and Nonemployer Allocations and Schedules of Pension
Amounts by Employer and Nonemployer for the fiscal years ended June 30, 2014 and 2013 (the “GASB
68 Report”), the net pension liability allocated to the City as of June 30, 2014, is $11,652,675. The
GASB 68 Report is available on the KPERS website at kpers.org/about/reports.html. The City has no
means to independently verify any of the information set forth on the KPERS website or in the GASB 68
Report. It is important to note that under existing State law, the City has no legal obligation for the
UAAL or the net pension liability calculated by KPERS, and such figures are for informational purposes
only.
For more information regarding the liability of the City with respect to its employees, please reference
“Note 5 – Defined Benefit Pension Plans” of the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2014, an excerpt of which is included as Appendix VI of this Official
Statement.
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Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which
addresses how state and local governments must account for and report their obligations related to post-
employment healthcare and other non-pension benefits (referred to as Other Post Employment Benefits or
“OPEB”).
Terminated employees may remain on the City’s health insurance plan for up to 18 months if they pay the
monthly premiums. This benefit is required under the Federal Consolidated Omnibus Budget
Reconciliation Act (the “C.O.B.R.A. Law”). Therefore, the City’s only liability under GASB 45 would
come from the implicit rate subsidy.
The benefits described above are the City’s only OPEB. The City must report an annual OPEB cost
based on actuarially determined amounts that, if paid on an ongoing basis, will provide sufficient
resources to pay these benefits as they come due. The City may establish its OPEB liability to zero as of
the beginning of the initial year of implementation; however, the unfunded actuarial liability is required to
be amortized over future periods.
FINANCIAL INFORMATION CONCERNING THE CITY
Financial Reports
The City has established a uniform system of accounting maintained in accordance with the laws of the
State of Kansas and generally accepted accounting principles. The accounts are maintained on the
modified accrual basis for all budgetary funds and on the accrual basis for all other funds.
Budgeting Procedures
Applicable Kansas Statutes require that budgets be legally adopted for all funds (including debt service
and enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the
modified accrual basis of accounting. This means that commitments such as purchase orders and
contracts in addition to disbursements and accounts payable are recorded as expenditures.
The statutes provide that the budget for the succeeding calendar year must be prepared on or before
August 1 and published on or before August 5 of each year. A public hearing is required to be held on or
before August 15, with the final budget being adopted on or before August 25 of each year. Original
appropriations may be modified by supplemental appropriations and transfers among budget categories.
The governing body must approve all significant budget changes. If there is cash in a fund in excess of
budget requirements, it cannot be spent during the year, but must be carried forward as income for the
ensuing year, unless the budget is amended. Budgets may be amended upon action of the governing body
after notice and public hearing, provided that no additional tax revenues may be raised after the original
budget is adopted.
The City may levy taxes in accordance with the requirements of its adopted budget. Property tax levies
are based on the adopted budget of the City and the assessed valuations provided by the County appraiser.
The 2015 Kansas Legislature passed legislation that, among other things, imposes an additional limit on
the aggregate amount of property taxes that may be imposed by cities and counties, without a majority
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vote of qualified electors of the city or county (the “Tax Lid”). The Tax Lid has an effective date of
January 1, 2018.
The Tax Lid provides that, subject to certain exceptions, no city or county may increase the amount of ad
valorem tax to be levied over the amount levied in the prior year by an amount greater than the consumer
price index without a majority vote of electors. Specific exceptions provided in the Tax Lid include
increases in the ad valorem tax due to:
“(i) costs for new infrastructure or improvements to existing infrastructure to support

new improvements to property exempt from property taxation pursuant to the provisions of
K.S.A. 79-201 et seq., and amendments thereto, such as hospitals, schools and churches, or
exempt additions to or improvements to property so exempt from property taxation;
(ii) bond and interest payments;
(iii) an increase in property subject to taxation as the result of the expiration of any
abatement of property from property tax;
(iv) increases in road construction costs when such construction has been once
approved by a resolution of the governing body of the city or county;
(v) special assessments;
(vi) judgments levied against the city or county or expenses for legal counsel and for
defense of legal actions against the city or county or officers of the city or county;
(vii) new expenditures that are specifically mandated by federal or state law; or
(viii) an increase in property subject to taxation as the result of new construction.”
Because of ambiguities in the Tax Lid, it is unclear how the various exceptions will be interpreted and
how the Tax Lid will be implemented. As a result, is unclear how the Tax Lid will impact the City.
However, as described above, there is a specific exception in the Tax Lid for ad valorem tax increases
necessary for “bond and interest payments.” This language has been interpreted in other contexts to
include general obligation bonds and general obligation temporary notes. Therefore, the City is permitted
under the Tax Lid to levy unlimited ad valorem taxes as necessary to pay principal of and interest on the
Bonds, as required by the Bond Resolution.
The City cannot predict the impact of the Tax Lid on the ratings on the Bonds, or the general rating of the
City. A change in the rating on the Bonds or a change in the general rating of the City may adversely
impact the market price of the Bonds in the secondary market.
Kansas statute prohibits municipalities from creating indebtedness unless there is money on hand in the
proper fund, unencumbered by previous commitments, with which to pay the indebtedness required. The
executor of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund
for the payments of the amount represented by the commitment. It makes no difference that the amount
may not have to be paid until more moneys are in the fund or until the following year. An exception to
this cash basis law is the issuance of debt in the form of bonds, notes, or warrants pursuant to statutory or
constitutional authority. In the event debt is issued, funds need not be on hand for future payments.
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General Fund Budget Summary
2014 Budget 2014 Actual 2015 Budget
Fund balance as of January 1 $ 3,310,587 $ 3,054,915 $ 3,885,993
Revenues:
Taxes $12,218,058 $13,011,913 $12,665,546
Licenses and permits 173,350 174,173 178,200
Charges for services 1,516,750 1,461,940 1,506,750
Fines, forfeitures and penalties 530,350 592,416 530,350
Use of money 7,800 16,731 10,300
Other revenue 444,075 45,121 451,575
Transfers in 2,142,142 2,147,555 2,406,247
Total revenues $17,064,525 $18,014,187 $17,780,968
Expenditures:
Personnel services $12,194,136 $11,168,868 $12,582,559
Contractual services 1,781,097 1,922,110 1,842,757
Commodities and supplies 688,369 906,163 821,689
Vehicle operating 527,563 489,866 535,312
Capital outlay 70,356 114,800 70,336
Transfers out 2,432,231 2,581,302 2,887,915
Total expenditures $17,693,752 $17,183,109 $18,740,568
Fund balance as of December 31 $ 2,681,360 $ 3,885,993 $ 2,926,393
Sources: City’s Comprehensive Annual Financial Reports and 2015 Budget.
Major General Fund Revenue Sources
Revenue 2010 2011 2012 2013 2014
Taxes $10,460,916 $10,802,007 $11,133,386 $11,300,398 $13,011,913

Transfers In 1,498,943 1,276,882 2,029,983 1,759,729 2,147,555
Charges for Services 1,664,001 1,491,887 1,469,470 1,489,779 1,461,940
Fines, Forfeitures,
and Penalties 491,690 545,865 536,584 534,836 592,416
Intergovernmental 425,875 424,604 32,620 411,911 564,338
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APPENDIX I
PROPOSED FORM OF BOND COUNSEL OPINION

Attorneys at Law
November 10, 2015
Governing Body UMB Bank, N.A.

City of Newton, Kansas Kansas City, Missouri
Re: $1,130,000 Taxable General Obligation Bonds, Series 2015-B, of the City of
Newton, Kansas, Dated November 10, 2015
other sources.
We express no opinion regarding federal tax consequences arising with respect to the Bonds.

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I-2
APPENDIX II
SUMMARY OF FINANCING DOCUMENTS
The following is a summary of certain provisions contained in the Bond Resolution authorizing the
issuance of the Bonds and the Disclosure Undertaking. This summary does not purport to be complete and is
qualified by reference to the entirety of the foregoing documents.
THE BOND RESOLUTION
DEFINITIONS
In addition to words and terms defined elsewhere in this Official Statement, the following words and terms
as used herein shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words
importing the singular number shall include the plural and vice versa, and words importing persons shall include
firms, associations and corporations, including public bodies, as well as natural persons.
“Act” means the Constitution, particularly Article 12, § 5 thereof, and statutes of the State of Kansas
including K.S.A. 10-101 to 10-125, inclusive, and K.S.A. 12-1617h allas amended and supplemented.
“Authorized Denomination” means $5,000 or any integral multiples thereof.
“Beneficial Owner” of the Bonds includes any Owner of the Bonds and any other Person who, directly or
indirectly has the investment power with respect to such Bonds.
“Bond and Interest Fund” means the Bond and Interest Fund of the Issuer for its general obligation
bonds.
“Bond Counsel” means the firm of Gilmore & Bell, P.C., or any other attorney or firm of attorneys whose
expertise in matters relating to the issuance of obligations by states and their political subdivisions is nationally
recognized and acceptable to the Issuer.
“Bond Payment Date” means any date on which principal of or interest on any Bond is payable.
“Bond Register” means the books for the registration, transfer and exchange of Bonds kept at the office of
the Bond Registrar.
“Bond Registrar” means the State Treasurer, and its successors and assigns.
“Bond Resolution” means collectively the ordinance and resolution adopted by the governing body of the
Issuer authorizing the issuance of the Bonds, as amended from time to time.
“Bonds” means the Issuer's Taxable General Obligation Bonds, Series 2015-B, authorized and issued by
the Issuer pursuant to the Bond Resolution.
“Business Day” means a day other than a Saturday, Sunday or any day designated as a holiday by the
Congress of the United States or by the Legislature of the State and on which the Paying Agent is scheduled in the
normal course of its operations to be open to the public for conduct of its operations.
“Cede & Co.” means Cede & Co., as nominee of DTC and any successor nominee of DTC with respect to
the Bonds.
“City” means the City of Newton, Kansas.
“Clerk” means the duly appointed and acting Clerk of the Issuer or, in the Clerk's absence, the duly
appointed Deputy, Assistant or Acting Clerk of the Issuer.
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“Compliance Account” means the account by that name created by the Bond Resolution.
“Consulting Engineer” means an independent engineer or engineering firm, or architect or architectural

firm, having a favorable reputation for skill and experience in the construction, financing and operation of public
facilities, at the time employed by the Issuer for the purpose of carrying out the duties imposed on the Consulting
Engineer by the Bond Resolution.
“Costs of Issuance” means all costs of issuing the Bonds, including but not limited to all publication,
printing, signing and mailing expenses in connection therewith, registration fees, financial advisory fees, all legal
fees and expenses of Bond Counsel and other legal counsel, expenses incurred in connection with compliance with
the Code, all expenses incurred in connection with receiving ratings on the Bonds, and any premiums or expenses
incurred in obtaining municipal bond insurance on the Bonds.
“Costs of Issuance Account” means the Costs of Issuance Account created by the Bond Resolution.
“Dated Date” means November 10, 2015.
“Debt Service Account” means the account by that name created within the Bond and Interest Fund by the
Bond Resolution.
“Debt Service Requirements” means the aggregate principal payments (whether at maturity or pursuant to
scheduled mandatory sinking fund redemption requirements) and interest payments on the Bonds for the period of
time for which calculated; provided, however, that for purposes of calculating such amount, principal and interest
shall be excluded from the determination of Debt Service Requirements to the extent that such principal or interest is
payable from amounts deposited in trust, escrowed or otherwise set aside for the payment thereof with the Paying
Agent or other commercial bank or trust company located in the State and having full trust powers.
“Defaulted Interest” means interest on any Bond which is payable but not paid on any Interest Payment
Date.
“Defeasance Obligations” means any of the following obligations:
(a) United States Government Obligations that are not subject to redemption in advance of their
maturity dates; or
(b) obligations of any state or political subdivision of any state, the interest on which is excluded from
gross income for federal income tax purposes and which meet the following conditions:
(1) the obligations are (i) not subject to redemption prior to maturity or (ii) the trustee for
such obligations has been given irrevocable instructions concerning their calling and redemption and the
issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such
instructions;
(2) the obligations are secured by cash or United States Government Obligations that may be
applied only to principal of, premium, if any, and interest payments on such obligations;
(3) such cash and the principal of and interest on such United States Government Obligations
(plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations;
(4) such cash and United States Government Obligations serving as security for the
obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust;
(5) such cash and United States Government Obligations are not available to satisfy any
other claims, including those against the trustee or escrow agent; and
II-2
(6) such obligations are rated in a rating category by Moody's or Standard & Poor's that is no
lower than the rating category then assigned by that Rating Agency to United States Government
Obligations.
“Derivative” means any investment instrument whose market price is derived from the fluctuating value of
an underlying asset, index, currency, futures contract, including futures, options and collateralized mortgage
obligations.
“Director of Finance” means the duly appointed and acting Assistant City Manager for Budget and
Finance of the Issuer or, in the Assistant City Manager’s absence, the duly appointed Deputy or Acting Assistant
City Manager for Budget and Finance of the Issuer.
“Disclosure Undertaking” means the Issuer’s Omnibus Continuing Disclosure Undertaking, as may be
amended and supplemented, relating to certain obligations contained in the SEC Rule.
“DTC” means The Depository Trust Company, New York, New York.
“Event of Default” means each of the following occurrences or events:
(a) Payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be
made when the same shall become due and payable, either at Stated Maturity or by proceedings for redemption or
otherwise;
(b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall
become due; or
(c) The Issuer shall default in the due and punctual performance of any other of the covenants,
conditions, agreements and provisions contained in the Bonds or in the Bond Resolution (other than the covenants
relating to continuing disclosure contained in the Bond Resolution and the Disclosure Undertaking) on the part of
the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such
default and requiring same to be remedied shall have been given to the Issuer by the Owner of any of the Bonds then
Outstanding.
“Financeable Costs” means the amount of expenditure for an Improvement which has been duly
authorized by action of the governing body of the Issuer to be financed by general obligation bonds, less: (a) the
amount of any temporary notes or general obligation bonds of the Issuer which are currently Outstanding and
available to pay such Financeable Costs; and (b) any amount of Financeable Costs which has been previously paid
by the Issuer or by any eligible source of funds unless such amounts are entitled to be reimbursed to the Issuer under
State or federal law.
“Fiscal Year” means the twelve month period ending on December 31.
“Funds and Accounts” means funds and accounts created by or referred to in the Bond Resolution.
“Improvement Fund” means collectively the Improvement Fund created by the Bond Resolution.
“Improvements” means the improvements referred to in the Bond Resolution and any Substitute
Improvements.
“Independent Accountant” means an independent certified public accountant or firm of independent

certified public accountants at the time employed by the Issuer for the purpose of carrying out the duties imposed on
the Independent Accountant by the Bond Resolution.
“Interest Payment Date(s)” means the Stated Maturity of an installment of interest on any Bond which
shall be March 1 and September 1 of each year, commencing September 1, 2016.
“Issue Date” means the date when the Issuer delivers the Bonds to the Purchaser in exchange for the
Purchase Price.
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“Issuer” means the City and any successors or assigns.
“Maturity” when used with respect to any Bond means the date on which the principal of such Bond
becomes due and payable as therein and in the Bond Resolution provided, whether at the Stated Maturity thereof or
call for redemption or otherwise.
“Mayor” means the duly elected and acting Mayor of the Issuer, or in the Mayor's absence, the duly
appointed and/or elected Vice Mayor or Acting Mayor of the Issuer.
“Moody's” means Moody's Investors Service, a corporation organized and existing under the laws of the
State of Delaware, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no
longer perform the functions of a securities rating agency, “Moody's” shall be deemed to refer to any other
nationally recognized securities rating agency designated by the Issuer.
“Official Statement” means the Issuer’s Official Statement relating to the Bonds.
“Outstanding” means, when used with reference to the Bonds, as of a particular date of determination, all
Bonds theretofore, authenticated and delivered, except the following Bonds:
(a) Bonds theretofore canceled by the Paying Agent or delivered to the Paying Agent for cancellation;
(b) Bonds deemed to be paid in accordance with the provisions of the Bond Resolution; and
(c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered
hereunder.
“Owner” when used with respect to any Bond means the Person in whose name such Bond is registered on
the Bond Register. Whenever consent of the Owners is required pursuant to the terms of the Bond Resolution, and
the Owner of the Bonds, as set forth on the Bond Register, is Cede & Co., the term Owner shall be deemed to be the
Beneficial Owner of the Bonds.
“Participants” means those financial institutions for whom the Securities Depository effects book-entry
transfers and pledges of securities deposited with the Securities Depository, as such listing of Participants exists at
the time of such reference.
“Paying Agent” means the State Treasurer, and any successors and assigns.
“Permitted Investments” shall mean the investments hereinafter described, provided, however, no
moneys or funds shall be invested in a Derivative: (a) investments authorized by K.S.A. 12-1675 and amendments
thereto; (b) the municipal investment pool established pursuant to K.S.A. 12-1677a, and amendments thereto; (c)
direct obligations of the United States Government or any agency thereof; (d) the Issuer's temporary notes issued
pursuant to K.S.A. 10-123 and amendments thereto; (e) interest-bearing time deposits in commercial banks or trust
companies located in the county or counties in which the Issuer is located which are insured by the Federal Deposit
Insurance Corporation or collateralized by securities described in (c); (f) obligations of the federal national mortgage
association, federal home loan banks, federal home loan mortgage corporation or government national mortgage
association; (g) repurchase agreements for securities described in (c) or (f); (h) investment agreements or other
obligations of a financial institution the obligations of which at the time of investment are rated in either of the three
highest rating categories by Moody's or Standard & Poor's; (i) investments and shares or units of a money market
fund or trust, the portfolio of which is comprised entirely of securities described in (c) or (f); (j) receipts evidencing
ownership interests in securities or portions thereof described in (c) or (f); (k) municipal bonds or other obligations
issued by any municipality of the State as defined in K.S.A. 10-1101 which are general obligations of the
municipality issuing the same; or (l) bonds of any municipality of the State as defined in K.S.A. 10-1101 which have
been refunded in advance of their maturity and are fully secured as to payment of principal and interest thereon by
deposit in trust, under escrow agreement with a bank, of securities described in (c) or (f), all as may be further
restricted or modified by amendments to applicable State law.
“Person” means any natural person, corporation, partnership, joint venture, association, firm, joint-stock
company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other
public body.
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“Purchaser” means collectively the financial institution or investment banking firm that is the original
purchaser of each or either series of the Bonds.
“Rating Agency” means any company, agency or entity that provides, pursuant to request of the Issuer,
financial ratings for the Bonds.
“Record Dates” for the interest payable on any Interest Payment Date means the fifteenth day (whether or
not a Business Day) of the calendar month next preceding such Interest Payment Date.
“Redemption Date” means, when used with respect to any Bond to be redeemed, the date fixed for the
redemption of such Bond pursuant to the terms of the Bond Resolution.
“Redemption Price” means, when used with respect to any Bond to be redeemed, the price at which such
Bond is to be redeemed pursuant to the terms of the Bond Resolution, including the applicable redemption premium,
if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date.
“Replacement Bonds” means Bonds issued to the Beneficial Owners of the Bonds in accordance with the
Bond Resolution.
“SEC Rule” means Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934.
“Securities Depository” means, initially, DTC, and its successors and assigns.
“Special Record Date” means the date fixed by the Paying Agent for the payment of Defaulted Interest.
“Standard & Poor's” means Standard & Poor’s Ratings Services, a division of McGraw Hill Financial
Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns,
and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating
agency, Standard & Poor's shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Issuer.
“State” means the state of Kansas.
“State Treasurer” means the duly elected Treasurer of the State or, in the Treasurer's absence, the duly
appointed Deputy Treasurer or acting Treasurer of the State.
“Stated Maturity” when used with respect to any Bond or any installment of interest thereon means the
date specified in such Bond and the Bond Resolution as the fixed date on which the principal of such Bond or such
installment of interest is due and payable.
“Substitute Improvements” means the substitute or additional improvements of the Issuer described in
the Bond Resolution.
“Treasurer” means the duly appointed and/or elected Treasurer of the Issuer or, in the Treasurer's absence,
the duly appointed Deputy Treasurer or acting Treasurer of the Issuer.
“United States Government Obligations” means bonds, notes, certificates of indebtedness, treasury bills
or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully
and unconditionally guaranteed as to full and timely payment by, the United States of America, including evidences
of a direct ownership interest in future interest or principal payment on obligations issued by the United States of
America (including the interest component of obligations of the Resolution Funding Corporation), or securities
which represent an undivided interest in such obligations, which obligations are rated in the highest rating category
by a nationally recognized rating service and such obligations are held in a custodial account for the benefit of the
Issuer.
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ESTABLISHMENT OF FUNDS AND ACCOUNTS;
DEPOSIT AND APPLICATION OF BOND PROCEEDS
Creation of Funds and Accounts. Simultaneously with the issuance of the Bonds, there shall be created
within the Treasury of the Issuer the following Funds and Accounts:
(1) Improvement Fund.

(2) Debt Service Account(within the Bond and Interest Fund).
(3) Costs of Issuance Account.
(4) Compliance Account.
The above Funds and Accounts shall be administered in accordance with the provisions of the Bond
Resolution so long as the Bonds are Outstanding.
Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds and certain other funds
shall be deposited simultaneously with the delivery of the Bonds as follows:
(1) Excess proceeds, if any, received from the Sale of the Bonds shall be deposited in the
Debt Service Account.
(2) An amount necessary to pay the Costs of Issuance for the Bonds shall be deposited in the
Costs of Issuance Account.
(3) The remaining balance of the proceeds derived from the sale of the Bonds shall be
deposited into the Improvement Fund
Application of Moneys in the Improvement Fund. Moneys in the Improvement Fund shall be used for the
sole purpose of: (a) paying a portion of the costs of the Improvements; (b) paying interest on the Bonds during
construction of the Improvements; and (c) paying Costs of Issuance. Withdrawals from the Improvement Fund shall
be made only when authorized by the governing body of the Issuer. Each authorization for costs of the
Improvements shall be supported by a certificate executed by the Consulting Engineer stating that such payment is
being made for a purpose within the scope of the Bond Resolution and that the amount of such payment represents
only the contract price of the property, equipment, labor, materials or service being paid for or, if such payment is
not being made pursuant to an express contract, that such payment is not in excess of the reasonable value thereof.
Authorizations for withdrawals for other authorized purposes shall be supported by a certificate executed by the
Clerk (or designate) stating that such payment is being made for a purpose within the scope of the Bond Resolution.
Upon completion of the Improvements, any surplus remaining in the Improvement Fund shall be deposited in the
Debt Service Account.
Substitution of Improvements; Reallocation of Proceeds. The Issuer may elect for any reason to
substitute or add other public improvements to be financed with proceeds of the Series Bonds provided the
following conditions are met: (a) the Substitute Improvement and the issuance of general obligation bonds to pay
the cost of the Substitute Improvement has been duly authorized by the governing body of the Issuer in accordance
with the laws of the State; (b) a resolution authorizing the use of the proceeds of the Bonds to pay the Financeable
Costs of the Substitute Improvement has been duly adopted by the governing body of the Issuer pursuant to this
Section, and (c) the Attorney General of the State has approved the amendment made by such resolution to the
applicable transcript of proceedings for Bonds to include the Substitute Improvements.
The Issuer may reallocate expenditure of the proceeds of the Bonds among all Improvements financed by
such Bonds; provided the following conditions are met: (a) the reallocation is approved by the governing body of
the Issuer; (b) the reallocation shall not cause the proceeds of the Bonds allocated to any Improvement to exceed the
Financeable Costs of the Improvements; and (c) the reallocation will not adversely affect the tax status of of the
Bonds under state law.
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Application of Moneys in the Debt Service Account. All amounts paid and credited to the Debt Service
Account shall be expended and used by the Issuer for the sole purpose of paying the principal or Redemption Price
of and interest on the Bonds as and when the same become due and the usual and customary fees and expenses of
the Bond Registrar and Paying Agent. The Treasurer is authorized and directed to withdraw from the Debt Service
Account sums sufficient to pay both principal or Redemption Price of and interest on the Bonds and the fees and
expenses of the Bond Registrar and Paying Agent as and when the same become due, and to forward such sums to
the Paying Agent in a manner which ensures that the Paying Agent will receive immediately available funds in such
amounts on or before the Business Day immediately preceding the dates when such principal, interest and fees of the
Paying Agent will become due. If, through the lapse of time or otherwise, the Owners of Bonds are no longer
entitled to enforce payment of the Bonds or the interest thereon, the Paying Agent shall return said funds to the
Issuer. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject
to all of the provisions contained in the Bond Resolution and shall be held in trust by the Paying Agent for the
benefit of the Owners of the Bonds entitled to payment from such moneys. Any moneys or investments remaining
in the Debt Service Account after the retirement of the Bonds shall be transferred and paid into the Bond and
Interest Fund.
Payments Due on Saturdays, Sundays and Holidays. In any case where a Bond Payment Date is not a
Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment
Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond
Payment Date, and no interest shall accrue for the period after such Bond Payment Date.
Application of Moneys in the Costs of Issuance Account. Moneys in the Costs of Issuance Account shall
be used by the Issuer to pay the Costs of Issuance. Any funds remaining in the Costs of Issuance Account, after
payment of all Costs of Issuance, but not later than the later of 30 days prior to the first Stated Maturity of principal
or one year after the date of issuance of the Bonds, shall be transferred to the Improvement Fund until completion of
the Improvements and thereafter to the Issuer for deposit into the Debt Service Account.
Application of Moneys in the Compliance Account. Moneys in the Compliance Account shall be used by
the Issuer to pay the to pay fees and expenses relating to compliance state or federal securities laws. Any funds
remaining in the Compliance Account on the sixth anniversary of the Issue Date shall be transferred to the Issuer for
deposit in the Debt Service Account.
DEPOSIT AND INVESTMENT OF MONEYS
Deposits. Moneys in each of the Funds and Accounts shall be deposited in a bank, savings and loan
association or savings bank which are members of the Federal Deposit Insurance Corporation, or otherwise as
permitted by State law, and which meet certain guidelines of State law. All such deposits shall be held in cash or
invested in Permitted Investments or shall be adequately secured as provided by the laws of the State.
Investments. Moneys held in any Fund or Account may be invested in accordance with the Bond
Resolution and the Federal Tax Certificate, in Permitted Investments; provided, however, that no such investment
shall be made for a period extending longer than to the date when the moneys invested may be needed for the
purpose for which such fund was created. All earnings on any investments held in any Fund or Account shall accrue
to and become a part of such Fund or Account; provided that, during the period of construction of the
Improvements, earnings on the investment of such funds may, at the discretion of the Issuer, be credited to the Debt
Service Account.
DEFAULT AND REMEDIES
Remedies. The provisions of the Bond Resolution, including the covenants and agreements herein
contained, shall constitute a contract between the Issuer and the Owners of the Bonds. If an Event of Default occurs
and shall be continuing, the Owner or Owners of not less than 10% in principal amount of the Bonds at the time
Outstanding shall have the right for the equal benefit and protection of all Owners of Bonds similarly situated:
(a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such
Owner or Owners against the Issuer and its officers, agents and employees, and to require and compel duties and
obligations required by the provisions of the Bond Resolution or by the Constitution and laws of the State;
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(b) by suit, action or other proceedings in equity or at law to require the Issuer, its officers, agents and
employees to account as if they were the trustees of an express trust; and
(c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be
unlawful or in violation of the rights of the Owners of the Bonds.
Limitation on Rights of Owners. The covenants and agreements of the Issuer contained in the Bond
Resolution and in the Bonds shall be for the equal benefit, protection, and security of the Owners of any or all of the
Bonds, all of which Bonds of any series shall be of equal rank and without preference or priority of one Bond over
any other Bond in the application of the Funds and Accounts pledged to the payment of the principal of and the
interest on the Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as
provided in the Bond Resolution. No one or more Owners secured hereby shall have any right in any manner
whatever by his or their action to affect, disturb or prejudice the security granted and provided for in the Bond
Resolution, or to enforce any right, except in the manner provided in the Bond Resolution, and all proceedings at
law or in equity shall be instituted, had and maintained for the equal benefit of all Owners of such Outstanding
Bonds.
Remedies Cumulative. No remedy conferred upon the Owners is intended to be exclusive of any other
remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised
without exhausting and without regard to any other remedy conferred. No waiver of any default or breach of duty or
contract by the Owner of any Bond shall extend to or affect any subsequent default or breach of duty or contract or
shall impair any rights or remedies thereon.
DEFEASANCE
When any or all of the Bonds, redemption premium, if any, or scheduled interest payments thereon have
been paid and discharged, then the requirements contained in the Bond Resolution and all other rights granted
thereby shall terminate with respect to the Bonds or scheduled interest payments thereon so paid and discharged.
Bonds, redemption premium, if any, or scheduled interest payments thereon shall be deemed to have been paid and
discharged within the meaning of the Bond Resolution if there has been deposited with the Paying Agent, or other
commercial bank or trust company located in the State and having full trust powers, at or prior to the Stated Maturity
or Redemption Date of said Bonds or the interest payments thereon, in trust for and irrevocably appropriated thereto,
moneys and/or Defeasance Obligations which, together with the interest to be earned on any such Defeasance
Obligations, will be sufficient for the payment of the principal or Redemption Price of said Bonds and/or interest
accrued to the Stated Maturity or Redemption Date, or if default in such payment has occurred on such date, then to
the date of the tender of such payments. If the amount to be so deposited is based on the Redemption Price of any
Bonds, no such satisfaction shall occur until: (a) the Issuer has elected to redeem such Bonds, and (b) either notice
of such redemption has been given, or the Issuer has given irrevocable instructions, or shall have provided for an
escrow agent to give irrevocable instructions, to the Bond Registrar to give such notice of redemption.
II-8
CONTINUING DISCLOSURE REQUIREMENTS
Disclosure Requirements. The Issuer covenants in the Bond Resolution with the Purchaser and the
Beneficial Owners to provide and disseminate such information as is required by the SEC Rule and as further set
forth in the Disclosure Undertaking and to make the provisions of the Disclosure Undertaking applicable to the
Bonds. Such covenant shall be for the benefit of and enforceable by the Purchaser and the Beneficial Owners.
Failure to Comply with Continuing Disclosure Requirements. In the event the Issuer fails to comply in a
timely manner with its continuing disclosure covenants contained in the Bond Resolution, the Purchaser and/or any
Beneficial Owner may make demand for such compliance by written notice to the Issuer. In the event the Issuer
does not remedy such noncompliance within 10 days of receipt of such written notice, the Purchaser or any
Beneficial Owner may in its discretion, without notice or demand, proceed to enforce compliance by a suit or suits
in equity for the specific performance of such covenant or agreement or for the enforcement of any other appropriate
legal or equitable remedy, as the Purchaser and/or any Beneficial Owner shall deem effectual to protect and enforce
any of the duties of the Issuer under such preceding section. Notwithstanding any other provision of the Bond
Resolution, failure of the Issuer to comply with its continuing disclosure covenants contained in the Bond
Resolution shall not be considered an Event of Default under the Bond Resolution.
Annual Audit. Annually, promptly after the end of the Fiscal Year, the Issuer will cause an audit to be
made of the financial statements of the Issuer for the preceding Fiscal Year by an Independent Accountant. Within
30 days after the completion of each such annual audit, a copy thereof shall be filed in the office of the Clerk. Such
audits shall at all times during the usual business hours be open to the examination and inspection by any Owner of
any of the Bonds, or by anyone acting for or on behalf of such user or Owner.
Levy and Collection of Annual Tax. The governing body of the Issuer shall annually make provision for
the payment of Debt Service Requirements on the Bonds as the same become due by levying and collecting the
necessary taxes upon all of the taxable tangible property within the Issuer in the manner provided by law. The taxes
referred to above shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied
and collected at the same time and in the same manner as the other ad valorem taxes of the Issuer are levied and
collected. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund, shall be kept
separate and apart from all other funds of the Issuer shall thereafter be deposited in the Debt Service Account and
shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due,
taking into account any scheduled mandatory redemptions, and the fees and expenses of the Paying Agent. If at any
time said taxes are not collected in time to pay the principal of or interest on the Bonds when due, the Treasurer is
hereby authorized and directed to pay said principal or interest out of the general funds of the Issuer and to
reimburse said general funds for money so expended when said taxes are collected.
Amendments. The rights and duties of the Issuer and the Owners, and the terms and provisions of the
Bonds or of the Bond Resolution, may be amended or modified at any time in any respect by resolution of the Issuer
with the written consent of the Owners of not less than a majority in principal amount of the Bonds then
Outstanding, such consent to be evidenced by an instrument or instruments executed by such Owners and duly
acknowledged or proved in the manner of a deed to be recorded, and such instrument or instruments shall be filed
with the Clerk, but no such modification or alteration shall: (a) extend the maturity of any payment of principal or
interest due upon any Bond; (b) effect a reduction in the amount which the Issuer is required to pay as principal of or
interest on any Bond; (c) permit preference or priority of any Bond over any other Bond; or (d) reduce the
percentage in principal amount of Bonds required for the written consent to any modification or alteration of the
provisions of the Bond Resolution.
Any provision of the Bonds or of the Bond Resolution may, however, be amended or modified by
resolution duly adopted by the governing body of the Issuer at any time in any legal respect with the written consent
of the Owners of all of the Bonds at the time Outstanding.
Without notice to or the consent of any Owners, the Issuer may amend or supplement the Bond Resolution
for the purpose of curing any formal defect, omission, inconsistency or ambiguity, to grant to or confer upon the
Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the
Owners, to more precisely identify the Improvements, to reallocate proceeds of the Bonds among Improvements, to
II-9
provide for Substitute Improvements, or in connection with any other change therein which is not materially adverse
to the interests of the Owners.
Notices, Consents and Other Instruments by Owners. Any notice, request, complaint, demand or other
communication required or desired to be given or filed under the Bond Resolution shall be in writing, and shall be
deemed duly given or filed if the same shall be: (a) duly mailed by registered or certified mail, postage prepaid; or
(b) communicated via fax, with electronic or telephonic confirmation of receipt. Copies of such notices shall also be
given to the Paying Agent. The Issuer, the Paying Agent and the Purchaser may from time to time designate, by
notice given hereunder to the others of such parties, such other address to which subsequent notices, certificates or
other communications shall be sent. All notices given by: (a) certified or registered mail as aforesaid shall be
deemed duly given as of the date they are so mailed; (b) fax as aforesaid shall be deemed duly given as of the date of
confirmation of receipt. If, because of the temporary or permanent suspension of regular mail service or for any
other reason, it is impossible or impractical to mail any notice in the manner herein provided, then such other form
of notice as shall be made with the approval of the Paying Agent shall constitute a sufficient notice.
Electronic Transactions. The issuance of the Bonds and the transactions related thereto and described
herein may be conducted and documents may be stored by electronic means.
Severability. If any section or other part of the Bond Resolution, whether large or small, is for any reason
held invalid, the invalidity thereof shall not affect the validity of the other provisions of the Bond Resolution.
Governing Law. The Bonds and the Bond Resolution shall be governed exclusively by and construed in
accordance with the applicable laws of the State.
THE DISCLOSURE UNDERTAKING
The Issuer has adopted an Omnibus Continuing Disclosure Undertaking, as may be amended and
supplemented (the “Disclosure Undertaking”) in which the Issuer covenants to provide certain financial and other
information with respect to its outstanding obligations, including the Bonds, in order to assist the Participating
Underwriter in complying with the provisions of the SEC Rule. In the Bond Resolution, the Issuer covenants to
apply the provisions of the Disclosure Undertaking to the Bonds. Such covenants are for the benefit of and
enforceable by the Participating Underwriter and the Beneficial Owners. The Issuer is the only “obligated person”
with responsibility for continuing disclosure with respect to the Bonds.
DEFINITIONS
In addition to the definitions set forth in this “APPENDIX II – THE BOND RESOLUTION –
Definitions” unless otherwise defined herein, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report filed by the Issuer pursuant to, and as described in the
Disclosure Undertaking, which may include the Issuer's CAFR, so long as the CAFR contains the Financial
Information and Operating Data.
“Beneficial Owner” means, with respect to a series of Bonds, any registered owner of any Bonds of such
series and any person which: (a) has the power, directly or indirectly, to vote or consent with respect to, or to
dispose of ownership of, any Bonds of such series (including persons holding Bonds through nominees, depositories
or other intermediaries); or (b) is treated as the owner of any Bonds of such series for federal income tax purposes.
“Bond Insurer” means the provider of the bond insurance policy, if any, for any series of Bonds.
“Bonds” means all bonds, notes, installment sale agreements, leases or certificates intended to be a debt
obligation of the Issuer identified in the Disclosure Undertaking, including the Bonds.
“CAFR” means the Issuer's Comprehensive Annual Financial Report, if any.
II-10
“Designated Agent” means Gilmore & Bell, P.C. or one or more other entities designated in writing by the
Issuer to serve as a designated agent of the Issuer for purposes of the Disclosure Undertaking.
“Dissemination Agent” means any entity designated in writing by the Issuer to serve as dissemination
agent pursuant to the Disclosure Undertaking and which has filed with the Issuer a written acceptance of such
designation.
“EMMA” means the Electronic Municipal Market Access system for municipal securities disclosures
established and maintained by the MSRB, which can be accessed at www.emma.msrb.org.
“Financial Information” means the financial information of the Issuer described under the heading
“PROVISION OF ANNUAL REPORTS – Financial Information.”
“Material Events” means any of the events listed under the heading “REPORTING OF MATERIAL
EVENTS.”
“MSRB” means the Municipal Securities Rulemaking Board, or any successor repository designated as
such by the Securities and Exchange Commission in accordance with the SEC Rule.
“Official Statement” means collectively the Issuer's Official Statement(s) for each series of the Bonds,
including all appendices and exhibits thereto.
“Operating Data” means the operating data of the Issuer described under the heading “PROVISION OF
ANNUAL REPORTS – Operating Data.”
“Participating Underwriter” means each of the original underwriters of a series of Bonds required to
comply with the SEC Rule in connection with the offering of such Bonds.
“Repository” means the MSRB via EMMA.
“SEC” means the Securities and Exchange Commission of the United States.
PROVISION OF ANNUAL REPORTS
The Issuer shall, or shall cause the Dissemination Agent to, not later than 210 days after the end of the
Issuer’s Fiscal Year, commencing with the Fiscal Year ended in 2012, file with the Repository the Issuer’s Annual
Report, consisting of the Financial Information and Operating Data described as follows:
Financial Information. The audited financial statements of the Issuer for such prior Fiscal Year, prepared
in accordance with generally accepted auditing standards, in substantially the format contained in Appendix B to the
Official Statement. If audited financial statements are not available by the time the Annual Report is required to be
filed, the Annual Report shall contain summary unaudited financial information and the audited financial statements
shall be filed in the same manner as the Annual Report promptly after they become available. The accounting basis
and the method of preparation of the financial statements of the Issuer are contained in Appendix B to the Official
Statement. The method of preparation and basis of accounting of the Financial Information may not be changed to a
basis less comprehensive than contained in the Official Statement, unless the Issuer provides notice of such change
in the same manner as for a Material Event.
Operating Data. Updates as of the end of the Fiscal Year of certain financial information and operating
data described in the Official Statement (with such modifications to the formatting and general presentation thereof
as deemed appropriate by the Issuer) generally described as follows:
·Tax Revenues by Source ·Ratios of Outstanding Debt by Type

·Assessed Value and Estimated Actual ·Direct and Overlapping Governmental Activities
Value of Taxable Property Debt
·Property Tax Levies and Collections ·Legal Debt Margin Information
·Direct and Overlapping Property Tax Rates ·Schedule of Bonded Indebtedness by Category
·Principal Property Taxpayers
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Operating Data for Water Revenue Bonds
·Changes in Net Assets ·Pledged Revenue Coverage

·Ratios of Outstanding Debt by Type ·Debt Service Payments to Final Maturity – Revenue Bonds
Additionally, the Issuer shall provide updates as of the end of the Fiscal Year for any material adverse
changes in that section of the most recent final Official Statement entitled “Employee Pensions” and “Property
Valuations.”
Any or all of the items listed above may be included by specific reference to other documents, including
official statements of debt issues with respect to which the Issuer is an “obligated person” (as defined by the SEC
Rule), which have been filed with the Repository, the MSRB or the SEC. If the document included by reference is a
final official statement, it must be available from the Repository. The Issuer shall clearly identify each such other
document so included by reference. In each case, the Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as provided in this Section;
provided that the audit report and accompanying financial statements may be submitted separately from the balance
of the Annual Report and later than the date required above for the filing of the Annual Report if they are not
available by that date. If the Issuer's Fiscal Year changes, it shall give notice of such change in the same manner as
for a Material Event.
From and after such time that Section (b)(5) of the SEC Rule applies to any series of Bonds, if the Annual
Report is not filed within the time period specified in subsection (a) hereof, the Issuer shall send a notice to the
Repository in a timely manner. Pursuant to Section (d)(3) of the SEC Rule, filing of an Annual Report shall not apply
to any Bonds with a stated maturity of 18 months or less.
REPORTING OF MATERIAL EVENTS
No later than 10 Business Days after the occurrence of any of the following Material Events, the Issuer
shall give, or cause to be given, to the Repository notice of the occurrence of any of the following Material Events
with respect to the Bonds, with copies to the Bond Insurer:
(1) principal and interest payment delinquencies;

(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions; the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the
Bonds;
(7) modifications to rights of bondholders, if material;
(8) bond calls, if material, and tender offers;
(9) defeasances;
(10) release, substitution or sale of property securing repayment of the Bonds, if material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the Issuer (which shall be deemed to
occur as provided in the SEC Rule);
(13) the consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all
or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other
than pursuant to its terms, if material; and
(14) appointment of a successor or additional paying agent or trustee or the change of name of the
paying agent or trustee, if material.
Notwithstanding the foregoing, notice of Material Events described in (8) and (9) need not be given any
earlier than the notice (if any) of the underlying event is given to the Owners of affected Bonds pursuant to the Bond
Resolution.
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DISSEMINATION AGENT
General. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in
carrying out its obligations under the Disclosure Undertaking, and may discharge any such Dissemination Agent,
with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign as
Dissemination Agent at any time upon 30 days prior written notice to the Issuer. The Dissemination Agent shall not
be responsible in any manner for the content of any notice or report (including without limitation the Annual Report)
prepared by the Issuer pursuant to the Disclosure Undertaking.
Annual Reports. If a Dissemination Agent shall be appointed, not later than 15 Business Days prior to the
date specified for providing the Annual Report to the Repository, the Issuer shall provide the Annual Report to the
Dissemination Agent or the Repository; provided that an Annual Report shall not be required for any series of
Bonds that has a stated maturity of 18 months or less. The Dissemination Agent shall file a report with the Issuer
certifying that the Annual Report has been filed pursuant to the Disclosure Undertaking, stating the date it was filed,
or that the Issuer has certified to the Dissemination Agent that the Issuer has filed the Annual Report with the
Repository. If the Dissemination Agent has not received an Annual Report or has not received a written notice from
the Issuer that it has filed an Annual Report to the Repository, by the date required in the Disclosure Undertaking,
the Dissemination Agent shall send a notice to the Repository.
Material Event Notices.
(1) The Dissemination Agent shall, promptly after obtaining actual knowledge of the occurrence of
any event that it believes may constitute a Material Event, contact the chief financial officer of the Issuer or his or
her designee, or such other person as the Issuer shall designate in writing to the Dissemination Agent from time to
time, inform such person of the event, and request that the Issuer promptly notify the Dissemination Agent in
writing whether or not to report the event.
(2) The Issuer will promptly respond in writing to any such request. Whenever the Issuer obtains
knowledge of the occurrence of a Material Event, because of a notice from the Dissemination Agent or otherwise,
the Issuer shall promptly determine if such event constitutes a Material Event and shall promptly notify the
Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to report the occurrence. If the
Issuer has determined that knowledge of an event is listed in (2), (7), (10) or (13) of the definition of a Material
Event, is not material, the Issuer shall notify the Dissemination Agent in writing not to report the occurrence.
(3) If the Dissemination Agent has been given written instructions by the Issuer to report the
occurrence of a Material Event, the Dissemination Agent shall file a notice of such occurrence with the Repository
within 10 Business Days after the occurrence, with copies to the Issuer and the Bond Insurer. Notwithstanding the
foregoing, notice of Material Events described in paragraphs (8) and (9) need not be given any earlier than the notice
(if any) of the underlying event is given to the Owners of affected Bonds pursuant to the Bond Resolution.
Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only
such duties as are specifically set forth in the Disclosure Undertaking. The Dissemination Agent shall not be
responsible in any manner for the content of any notice or report prepared by the Issuer.
Other Designated Agents. The Issuer may, from time to time, appoint or designate a Designated Agent to
submit Annual Reports, Material Event notices, and other notices or reports pursuant to the Disclosure Undertaking.
The Issuer hereby appoints the Dissemination Agent and the Designated Agent(s) solely for the purpose of
submitting Issuer-approved Annual Reports, Material Event notices, and other notices or reports pursuant to the
Disclosure Undertaking. The Issuer may revoke this designation at any time upon written notice to the Designated
Agent.
Termination of Reporting Obligation. The Issuer's obligations under the Disclosure Undertaking for a
particular series of Bonds shall terminate upon the legal defeasance, prior redemption or payment in full of that
series of Bonds. If the Issuer's obligations hereunder are assumed in full by some other entity as permitted in the
Bond Resolution, such person shall be responsible for compliance with under the Disclosure Undertaking in the
same manner as if it were the Issuer, and the Issuer shall have no further responsibility hereunder. If such
II-13
termination or assumption occurs prior to the final maturity of such Bonds, the Issuer shall give notice of such
termination or assumption in the same manner as for a Material Event.
Amendment; Waiver. In conjunction with the public offering of any series of Bonds, the Issuer and the
Dissemination Agent, if any, may amend the categories of Operating Data to be updated to conform to the operating
data included in the final Official Statement for such series of Bonds, in conformance with the requirements and
interpretations of the SEC Rule as of the date of such final Official Statement, without further amendment to the
Disclosure Undertaking. Thereafter, the Operating Data to be filed by the Issuer with the Repository with respect to
the Bonds (and all other series of Bonds then subject to the Disclosure Undertaking) shall be deemed to be amended
to reflect the requirements of the revised Operating Data for the new series of Bonds.
The Issuer may amend and any other provision of the Disclosure Undertaking may be waived, provided
that Bond Counsel or other counsel experienced in federal securities law matters provides the Issuer with its written
opinion that the undertaking of the Issuer contained therein, as so amended or after giving effect to such waiver, is in
compliance with the SEC Rule and all current amendments thereto and interpretations thereof that are applicable to
the Disclosure Undertaking; provided, however, that the Disclosure Undertaking, may be amended for the purpose
of (a) extending the coverage of the Disclosure Undertaking to any additional series of Bonds or (b) removing
reference to any series of Bonds for which the Issuer’s reporting obligations have terminated, each without the
provision of a written opinion as otherwise required by this paragraph. If a provision of the Disclosure Undertaking
is amended or waived with respect to a series of Bonds pursuant to this paragraph, the Issuer shall describe such
amendment or waiver in the next Annual Report, and shall include, as applicable, a narrative explanation of the
reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles,
on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements: (a) notice of such
change shall be given in the same manner as for a Material Event; and (b) the Annual Report for the year in which
the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form)
between the financial statements as prepared on the basis of the new accounting principles and those prepared on the
basis of the former accounting principles.
Additional Information. Nothing shall be deemed to prevent the Issuer from disseminating any other
information, using the means of dissemination set forth in the Disclosure Undertaking or any other means of
communication, or including any other information in any Annual Report or notice of occurrence of a Material
Event, in addition to that which is required by the Disclosure Undertaking. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is
specifically required by the Disclosure Undertaking, the Issuer shall have no obligation under the Disclosure
Undertaking to update such information or include it in any future Annual Report or notice of occurrence of a
Material Event.
Noncompliance. In the event of a failure of the Issuer or the Dissemination Agent, if any, to comply with
any provision of the Disclosure Undertaking with respect to a series of Bonds, any Participating Underwriter or any
Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking
mandamus or specific performance by court order, to cause the Issuer or the Dissemination Agent, if any, as the case
may be, to comply with its obligations under the Disclosure Undertaking. Noncompliance with the provisions of the
Disclosure Undertaking shall not be deemed an Event of Default under the Bond Resolution or the Bonds, and the
sole remedy under the Disclosure Undertaking in the event of any failure of the Issuer or the Dissemination Agent, if
any, to comply with the Disclosure Undertaking shall be an action to compel performance.
Electronic Transactions. Actions taken under the Disclosure Undertaking and the arrangements described
therein may be conducted and related documents may be stored by electronic means.
Beneficiaries. The Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Dissemination
Agent, if any, each Participating Underwriter and Beneficial Owners from time to time with respect to a series of
Bonds, and shall create no rights in any other person or entity.
Governing Law. The Disclosure Undertaking shall be governed by and construed in accordance with the
laws of the State.
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APPENDIX III
SUMMARY OF PROPERTY VALUATION, TAX LEVIES,
PAYMENT PROVISIONS AND THE CASH-BASIS LAW
Following is a summary of certain statutory and constitutional provisions relative to the mechanisms of
real property valuation, tax levy procedures, tax payment and distribution procedures, and the cash-basis
laws of the state. The summary does not purport to be inclusive of all such provisions or of the specific
provisions discussed, and is qualified by reference to the complete text of applicable statutes and articles
of the State Constitution. This summary reflects changes to Kansas property tax laws following
amendment of the State Constitution in 1986 and 1992 relating to reappraisal and classification of real
property for the purpose of property taxation.
Property Valuations (Chapter 79, Article 14, Kansas Statutes Annotated, and
Article 11, Kansas Constitution)
Assessor’s Estimated Fair Market Value
The valuation of each parcel of real property subject to taxation must, by law, be updated each year, as of
each January 1, and must be physically inspected by the appraiser at least once every six years. With the
exception of agricultural land, all property is valued at its market value in money which is the value the
appraiser determines to be the price the appraiser believes the property to be fairly worth, and which is
referred to as the “Fair Market Value.” Land devoted to agricultural use is appraised on the basis of the
income-generating capabilities of such land for agricultural purposes at median levels of production.
Assessed Value and Property Classification
For taxable years commencing January 1, 1993, and thereafter, property is classified and assessed at the
percentages of value as follows:
Class 1
This class consists of real property. Real property is further classified into seven subclasses. Such
property is defined by law for the purpose of subclassification and assessed uniformly as to subclass at the
following percentages of market value:
(1) Real property used for residential purposes including multi-family residential real
property and real property necessary to accommodate a residential community of mobile
or manufactured homes including the real property upon which such homes are located ..... 11½%
(2) Land devoted to agricultural use which shall be valued upon the basis of its agricultural
income or agricultural productivity pursuant to Section 12 of Article 11 of the
Constitution ............................................................................................................................. 30%
(3) Vacant lots .............................................................................................................................. 12%
(4) Real property which is owned and operated by a not-for-profit organization not subject to
federal income taxation pursuant to Section 501 of the federal Internal Revenue Code,
and which is included in this subclass by law ......................................................................... 12%
(5) Public utility real property, except railroad real property which shall be assessed at the
average rate that all other commercial and industrial property is assessed.............................. 33%
(6) Real property used for commercial and industrial purposes and buildings and other
improvements located upon land devoted to agricultural use ................................................. 25%
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(7) All other urban and rural real property not otherwise specifically subclassified .................... 30%
Class 2
This class consists of tangible personal property. Such tangible personal property is further classified into
six subclasses. Such property is defined by law for the purpose of subclassification and assessed
uniformly as to subclass at the following percentages of market value:
(1) Mobile homes used for residential purposes .......................................................................... 11½%
(2) Mineral leasehold interests, except oil leasehold interests, the average daily production
from which is five barrels or less, and natural gas leasehold interests, the average daily
production from which is 100 mcf or less, which shall be assessed at 25% ........................... 30%
(3) Public utility tangible personal property including inventories thereof, except railroad
personal property including inventories thereof, which shall be assessed at the average
rate all other commercial and industrial property is assessed ................................................. 33%
(4) All categories of motor vehicles not defined and specifically valued and taxed pursuant to
law enacted prior to January 1, 1985 ...................................................................................... 30%
(5) Commercial and industrial machinery and equipment which, if its economic life is seven
years or more, shall be valued at its retail cost less seven-year straight-line depreciation,
or which, if its economic life is less than seven years, shall be valued at its retail cost
when new less straight-line depreciation over its economic life, except that, the value so
obtained for such property, notwithstanding its economic life and as long as such
property is being used, shall not be less than 20% of the retail cost when new of such
property ................................................................................................................................... 25%
(6) All other tangible personal property not otherwise specifically classified ............................. 30%
All property used exclusively for state, county, municipal, literary, educational, scientific, religious,
benevolent and charitable purposes, farm machinery and equipment, merchants’ and manufacturers’
inventories (other than public utility inventories included in Subclass (3) of Class 2), livestock, and all
household goods and personal effects not used for the production of income is exempted from property
taxation.
The 2006 Kansas Legislature exempted from all property or ad valorem property taxes levied under the
laws of the State all commercial, industrial, telecommunications and railroad machinery and equipment
acquired by qualified purchase or lease after June 30, 2006 or transported into the State after June 30,
2006 for the purpose of expanding an existing business or creation of a new business.
Property Tax Payments and Delinquencies (Chapter 79, Articles 18, 20, 23, 24, 28 and 29, Kansas
Statutes Annotated)
The amount of ad valorem taxes to be levied against property within a taxing jurisdiction is determined by
the governing body of the jurisdiction as part of the annual budget approval process and certified, along
with special assessments, to the county clerk not later than August 25 of each year. The county clerk
assembles the tax levies and assessments from the various jurisdictions located within the county,
together with any State property tax levies, into a tax roll specifying the tax on each taxable parcel of land
in the county. The county treasurer receives the certified tax roll not later than September 1 each year and
mails tax statements to taxpayers not later than December 15. Taxpayers have the option of paying the
entire amount of taxes owed not later than December 20, or paying half at that time and the other half by
the following May 10.
III-2
Property taxes not paid when and in the amounts due are considered delinquent and are subject to an
interest penalty at a rate set by law. If delinquent taxes, plus accrued interest, have not been paid by
July 10, the county treasurer will convey ownership of the property to the county, pursuant to statute.
Delinquent taxpayers then have three years (or two years if both property taxes and special assessments
are owed) to redeem their property by paying all unpaid taxes, fees, accrued interest and costs thereon. If
not redeemed, the real estate will be disposed of by sheriff’s sale at public auction to the highest bidder
following judicial foreclosure proceedings. The net proceeds of the sheriff’s sale are apportioned on a pro
rata basis to the various taxing units having jurisdiction over the property.
Property Tax Distributions (Section 12-1678a, Kansas Statutes Annotated)
Property taxes and special assessments collected by the county treasurer on December 20 and May 10 are
distributed to the various taxing units on January 20 and June 5, respectively, in the actual amount
collected as of not more than 20 days prior to the distribution date. In addition, distributions of interim
collections are made on March 20 and September 20, in an amount equal to 95% of the estimated amount
collected but not less than the actual amount collected as of not more than 20 days prior to such
distribution dates. A final distribution is made on October 31, just prior to the receipt by the treasurer of
the following year’s tax roll.
The Kansas Cash-Basis Law (Chapter 10, Article 11, Kansas Statutes Annotated)
All municipalities and taxing subdivisions of the State are required by law to administer their financial
operations on a cash basis, except in specific instances. Simply stated, a municipality may not incur a
financial obligation in an amount which exceeds the amount of funds actually on hand at the time the
obligation is incurred. The most notable exceptions to the cash-basis law are bonds, notes and warrants
issued in accordance with State law, contracts approved by referenda and teacher contracts.
In order to operate efficiently on a cash basis, municipalities must adhere to certain statutory budgeting
and accounting requirements which segregate financial resources into various operating funds, such as the
general fund and the debt service fund, and limit the expenditure of such resources to the amounts
identified in the duly adopted budget for each fund. Budgeted expenditures must be balanced with
budgeted revenue for each fund, and moneys cannot be transferred between funds to cover excessive
spending. Likewise, surplus revenue must be carried forward and used to reduce tax levies in the
following year, with allowance for reasonable reserves.
According to the Kansas Supreme Court, the purpose of the cash-basis and budget laws is to provide for
“the systematical, intelligent and economical administration of the financial affairs of municipalities and
other taxing subdivisions of the state, so as to avoid waste and extravagance and yet permit such units of
government to function so as to supply the governmental wants and needs of the people.” (State, ex rel.,
v. Republic County Commissioners, 148 Kan. 376, 383.) It has the collateral effect of ensuring that
financial obligations legally entered into will be paid.
III-3
APPENDIX IV
EXCERPT OF 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2014, audited by Knudsen Monroe & Company LLC, Newton Kansas.
The reader should be aware that the complete financial statements may contain additional information
which may interpret, explain or modify the data presented here.
The City’s comprehensive annual financial reports for the years ending 1989 through 2013 were awarded
the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. The City has
submitted its CAFR for the 2014 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.
IV-1
Financial Section
Basic Financial Statements
IV-2
INDEPENDENT AUDITOR'S REPORT
City Commission
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Newton, Kansas as of and for the year ended December 31, 2014, and the
related notes to the financial statements, which collectively comprises the City's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Newton,
Kansas, as of December 31, 2014, the respective changes in financial position and, where applicable, cash
flows thereof, and the budgetary comparison for the general fund, for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages A3-A 11 be presented to supplement the basic financial statements. Such
information, ahhough not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Newton, Kansas's basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements, individual fund budgetary comparison schedules and statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements and the individual fund budgetary
comparison schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining and individual nonmajor fund financial statements
and the individual fund budgetary comparison schedules are fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on
them.
-k_._, ~"- j c...p- ~L LC:...

0
Certified Public Accountants
July 27,2015
IV-3
MANAGEMENT DISCUSSION AND ANALYSIS The Statement of Net Position and the Statement of Activities
One of the most important questions asked about the City's finances is, "Is the City as a whole better off or worse
off as a result of the past year's activities?" The Statement of Net Position and the Statement of Activities each
As management of the City of Newton, Kansas, we offer readers of the City of Newton's financial statements report information about the City as a whole and about its activities in a way that helps answer this question.
this narrative overview and analysis of the financial activities of the City of Newton for the year ended December These statements include all assets and liabilities using the accrual basis of accounting, which is similar to
31, 2014. We encourage readers to consider the information presented here in conjunction with additional the accounting methods used by most private-sector companies. All of the current year's revenues and
information that we have furnished in our letter of transmittal, which can be found on pages i-xvii of this report, expenses are taken into account as they are earned or incurred, regardless of when cash is received or paid.
and the City of Newton's financial statements, which follow this section beginning on page A-12.
These two statements report the City's net position and changes in them. You can think of the City's net
FINANCIAL HIGHLIGHTS position as the difference between assets and liabilities as one way to measure the City's financial health, or
financial position. Over time, increases or decreases in the City's net position are one indicator of whether
The assets of the City of Newton exceeded its liabilities at the close of the most recent fiscal year by its financial health is improving or deteriorating. You will need to consider other non-financial factors, however.
$89,529,037. Of this amount $30,227,047 (unrestricted net assets) may be used to meet the such as changes in the City's property tax base and the condition of the City's roads and other infrastructure, to
government's ongoing obligations to the citizens and creditors. assess the overall health of Newton.
The City's total net position increased 5.7% to $89.5 million and unrestricted net position decreased The Statement of Net Position and the Statement of Activities distinguish functions of the City of Newton that
3. 7% to $30.2 million as a result of this year's operations. are principally supported by taxes and intergovernmental revenues (government activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges (business-
At the end of 2014, the unrestricted fund balance for the General Fund was $6,855,567 or 41.2% of type activities). The City's governmental activities include general government, public safety, highways and
General Fund expenditures net of transfers. This is compared to $6,389,945 or 41.2% of General Fund street, community and economic development, and parks and recreation. Property taxes, transient guest taxes,
expenditures in 2013. The increase in the unrestricted fund balance is due to an increase in the sales taxes, and franchise fees finance most of these activities. The City's business-type activities include water,
unassigned fund balance. This fund balances remains within the Fund Balance Policy limits. sewer, sanitation, and golf course. The City of Newton has two component units, the Newton Public Library and
the Newton Public Building Commission, which are both separate legal entities. Although legally separate, these
The City of Newton's General Obligation (GO) Debt decreased $2,635,000 during 2014 to $43,655,000. "component units" are important because the City is financially accountable for them.
This is the net impact of paying of GO Debt and not issuing new GO debt is 2014.
Reporting the Citv's Most Significant Funds
OVERVIEW OF THE FINANCIAL STATEMENTS
IV-4
A fund is a grouping of related accounts that is used to maintain control over resources that have been
This discussion and analysis is intended to serve as an introduction to the City of Newton's comprehensive segregated for specific activities or objectives. The fund financial statements provide detailed information about
annual financial report which includes the basic financial statements. The City's basic financial statements the most significant funds-not the City of Newton as a whole. Some funds are required to be established by
comprise three components. 1) Government-wide financial statements - consisting of The Statement of Net State Law and by bond covenants. In addition, the City Commission establishes other funds to help control and
Position and the Statement of Activities which provide information about the activities of the City as a whole and manage money for particular purposes, or to demonstrate that Newton is complying with legal requirements for
present a more long-term view of the City's finances. 2) Fund financial statements that report the City's using certain taxes, grants, and other money. The City's three kind of funds; governmental, proprietary and
operations in more detail than the government-wide statements, by providing information about the City's most fiduciary use different accounting approaches.
significant funds. 3) Notes to the financial statement. Other included statements provide financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the Fund Financial Statements
government. This report also contains other supplementary statistical and financial information in addition to
the basic financial statements themselves. Governmental funds--Most of the City's basic services are reported in its governmental funds, which
focus on how money flows into and out of those funds and the balances left at year-end that are available
Reporting the Cltv as a Whole
for future spending. These funds are reported using an accounting method called the modified accrual
The government-wide financial statements (pages A-12 to A-14 of this CAFR) are designed to provide readers basis of accounting, which measures cash and other financial assets that can readily be converted to
with a broad overview of the City of Newton's finances, in a format similar to a private-sector business. cash. With this method, the governmental fund statements provide a detailed short-term view of the
city's general government operations and the basic services it provides. Governmental fund information
helps the reader determine whether there are more or fewer financial resources that can be spent in the
near future to finance the City's programs. We describe the relationship (or differences) between
governmental activities (reported in the Statement of Net Position and the Statement of Activities) and
governmental funds (reported in the fund financial statements) in a reconciliation document following
the fund financial statements. on pages A-17 and A-20.
• Proprietary funds--When the City charges for certain services it provides, these services are generally
reported in proprietary funds. Proprietary funds are reported using the full accrual basis of accounting,
in the same way that all activities are reported in the Statement of Net Position and the Statement of
Activities. The City of Newton maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. We use internal service funds to report activities provided through one fund for other City
programs and activities-such as the City's Stores and Maintenance and Self Insurance Funds.
Table2
Fiduciary funds-- The City is a trustee, or fiduciary, for certain amounts held on behalf of others. The City of Newton
City's fiduciary activities are reports in the Statement of Fiduciary Net Position. We exclude these Statement of ActJvl... and Changes in Net Poalion
activities from the City's other financial statements, because the city cannot use these assets to finance Year Ended December 31, 2014
its operations. The City is responsible for ensuring that the assets reported in these funds are used only
for their intended purposes. Govemmenllll Business-Type
Activities Activities Total
THE CITY AS A WHOLE 201 .. 2013 2014 2013 2014 2013
Revenues
Prpgram Reyanues
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In 4,312,182 $ 4,085,008 s 16,219,100 $ 13,365,180 $ 20,531.282 $ 17,450,188
Charges for services $
the case of the City of Newton, assets exceeded liabilities by $89,529,037 at the close of 2014, the most recent Operating grants and contributions 632.319 642,795 632,319 642,795
fiscal year. This represents an increase of 5.7% as compared to the close of 2013. Capita! grants and contributions 2,586,491 5.828.963 669,107 889.233 3,255,598 6,718,196
General Revenues
Property taxes and special assessrmnts 7,010,541 7,896,230 7,010,541 7,896,230
By far the largest portion of the City of Newton's net position reflects its investment in capital assets (e.g., land, Sales taxes 5,084,012 4,822.064 5,084,012 4,822,064
buildings, infrastructure. machinery and equipment), less any related outstanding debt used to construct or Franchise taxes 1,641,767 1,533.637 1,641,767 1,533,637
acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these Other taxes 1,050.347 907,779 1,050,347 907,779
lntergovemmBnta!, not restricted
assets are not available for future spending. Although the City's investment in its capital assets is reported net to specific programs 643.094 630,322 643,094 630,322
of related debt, it should be noted that the resources needed to repay this debt must be provided from other Interest Income 7,665 8,873 17 39 7,682 8,912
sources, since the capital assets themselves cannot be used to liquidate these liabilities. Other 194,311 436,256 194.311 436,256
Total R•venues ~729 26,791,927 16,888.224 14,254,452 40,050,953 41,046,379
Table 1 Expenses
City of Newton General government 2,748,317 2.288,726 2,748,317 2.288,726
Public safety 9,091,977 8,646,918 9,091,977 8,646,918
Condensed Statement of Net Position
Highway and streets 3,123,553 3,032,939 3,123,553 3.032,939
December 31, 2014 Culture and recreation 3,301,952 3,419,439 3,301,952 3,419,439
.Nrp:>rt 2.037,345 1,552,477 2.037,345 1,552.477
Public works 1,768,709 1,864,153 1,768,709 1,864,153
Interest and fiscal charges 1,455.286 1,538.070 1,455.266 1,538,070
Gowrnmental Business-Type Sewe• 4,497,867 4,281,556 4,497,867 4,281,556
Activities Activities Total Sanitation 1,719,060 1,712,657 1,719,060 1,712.657
201<4 2013 201<4 2013 201<4 2013 Waterwor1<s 3,626,523 3,337,612 3,626.523 3,337,612
IV-5
Golf Course 1,810,959 1,567,606 1,810,959 1,567,606

Current and other assets $28,877,745 $27,393,014 $14,944,216 $15,234,324 $43,821,961 $42,627,338 Total ExpenMs 23,527,119 22,342,722 11,654,409 10,899,431 35,181,528 33,242,153
capital assets, nan ....preclable 25,309,573 22,539,613 11,569,963 2,117,125 36,879.536 24,656,738
C&pltal assets, net of depreciation 41,155.245 43,009,136 45,481,984 46,902.111 86,637,229 89,911,247 Excess (Deficiency) before transfers (364,390) 4,449,205 5,233,815 3,355,021 4,869,425 7.804,226
Transfers 2,362,303 1,887,870 (2,362,303) (1 ,887 ,870}
Total Assets 95,342,563 92,941,763 71,996,163 64,253,560 167,338,726 157,195,323 Change in Net Assets 1,997,913 6,337,075 2,871,512 1,467,151 4,869,425 7,804,226
Deferred OUtflows of Resources 538,580 581,663 581,600 636,366 1,120,180 1,218.029 Net Position, Beginning of the Year
Long-term liabilities outstanding 37,602,428 39.748,821 30,012,698 25.205,394 67,615,126 64,954,215 /Ia prevlousty reported 45,468,244 39,730,736 39,191,368 37,724,217 84,659,612 77,454,953
Prior Period adjustment 0 (599,567) 0 0 0 ~599,567)
Other llabllftles 4,709,756 2,370,906 502,185 493,164 5,211,941 2,864,070 As restated 45,468,244 39,131,169 39,191,368 37,724.217 84,659,612 76,855,386
Total Uabllftles 42,312.184 42,119,727 30,514,883 25,698.558 72.827,067 67,818.285 Net Position, End of the Year $ 47,466,157 $ 45,468,244 $ 42,062,880 $ 39,191,368 $ 89,529,037 $ 84,659,612
Deferred Inflows of Resources 6,102.802 5.935,455 0 0 ~802 5.935.455
Not Posftlon: Governmental Activities
Not lrwestment in C&pltal Assets 29.883,633 26.838.054 27,620,849 24,448,242 57,504,482 51,286,296
Resll'icted 1,362,548 1,536,715 434,960 434,960 • 1,797,508 1,971,675 Table 3 presents the cost of the City's four largest governmental activities-general government; public safety;
Urwestricted 16,219.976 17,093,475 14,007,071 14,308,166 30,227,047 31.401,641 highway and streets, public works; and culture and recreation-as well as each activity's net cost (total cost,
Total Not Poaftlon $47,466,157 $45.468.244 $42,062,880 $39,191,368 $89,529,037 $84,659.612 less revenues generated by the activity). The net cost shows the financial burden that was placed on the City's
taxpayers by each of these governmental functions.
An additional portion of the city's net assets represents resources that are subject to external restrictions on how
Table 3
they may be used. The remaining balance of unrestricted net assets of $30,227,047 may be used to meet the
government's ongoing obligations to citizens and creditors. The decrease in the unrestricted net assets is a Net Cost of Governmental Activities
result of now reporting certain business type activity assets as net investment in capital assets as opposed to
unrestricted net assets.
Total Cost Net Cost
At the end of the current fiscal year, the city is able to report positive balances in all categories of net position of Services of Services
for governmental activities. The City's combined net position from governmental and business-type increased General government $ 2,748,317 $ 2,438.997
as described previously. This increase is reflected in the Statement of Net Position through Statement of
Public safety 9,091,977 6,737,651
Activities, on pages A-12 and A-13 to A-14, respectively.
Highway & streets and public works 4,892,262 4,738,551
Culture and recreation 3,301,952 1,401,168
Totals $ 20,034,508 $ 15,316,367
Property taxes increased $167,347 (2.9%) for the year 2014 as compared to 2013. This is due to a Functional Expenses
combination of increase in assessed valuation and a slight mill increase to fund replacement of 800MHz
radios for emergency services.
For the most part, increases in expenses closely paralleled general economic inflation and growth in the
General
demand for services.
Capital outlay
19%
11%
Source of Revenue
and other
Public
32%
Licenses
permits Taxes Business-type Activities
1% 67%
Business-type activities increased the City's net position by $2,871,512 to $42,062,880 during 2014. Table 4
presents the cost of the City's four business-type activities-Sewer. Sanitation, Water and Golf Course--as well
as each activity's net revenue (revenue generated by the activity less its total cost).
IV-6
Table 4
Net Revenue from Business-Type Activities
Total Cost Net Revenue

of Activity from Activity
Sewer $ 4.497,867 $ 3,755,651
Sanitation 1,719,060 167,379
Waterworks 3,626,523 1,240,336
Golf Course 1,810,959 70,432
Totals $ 11,654.409 $ 5,233,798
In 2008 the City Commission approved a rate increase in the water and sewer with new water rates
taking effect with the April15, 2008 billing and new sewer rates taking effect with the October 15,
2008 billing. Additionally in 2010, the City Commission approved incremental increases in water and
sewer rates for subsequent years.
The water rate increase is due to infrastructure requirements and the sewer rate increase is being
driven by both growth demands and a series of federal and state mandates.
In 2014 the City began a mandated upgrade of the Wastewater Treatment Plant for estimated cost
of $24 million. The City Commission adopted a plant upgrade fee in 2014 to pay for the debt service
for the upgrade.
The 2015-2020 Capital Improvement Plan is approximately $37 million. The CIP is funded through
a combination of City, State and Federal funds.
Table 5
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
City of Newton's Capital Assets
(net of depreciation)
At December 31, 2014, the City's governmental funds reported combined fund balance of $1,590,845.The
negative fund balance in the Street Capital Project and Other Governmental Funds will be discussed below.
Governmental Activities Buaineii·M!!: Activities Total
The General Fund is the major operating and taxing fund for the City of Newton. The beginning total ~ 2013 2014 2013 ~ _______1Qg
fund balance was $6,864,190. In 2013, the ending balance was $7,325,094, a $460,904 or 6.7% Land 4.111.721 $ 4,111,721 $ 1,082.579 $ 1,082.579 5,194,300 $ 5,194,300
increase over 2013. The increase in fund balance is due increase in the unassigned fund balance. The Bt.Jidings and if'Tl)roverrents 13.587.912 14.211.200 14,627,245 15.116,222 28.215.157 $ 29,327,422
City's Fund Balance Policy requires the General Fund unassigned fund balance to be 15% of Machinery and equipment 2.126.279 2,382.968 3,045,780 2,778.496 5.172,059 $ 5,161.464
General infrastructure 25.441,054 26.414,968 25,441,054 $ 26.414,968
expenditures. The current balance is 16.7%, well within the policy limits. 29,007,393 27.808.959 $ 29,007,393
Utility service lines 27.808,959
• The Debt Service Fund reflected a decrease of $234,926. The Debt Service Fund balance at year end Construction in progress 21,197.852 18.427.892 10.487,364 1,034.546 31.685,236 $ 19.462,438
2014 was $528,849. The decrease was part of a planned draw down of reserves that had buiH up over Total capital assets 66.464,818 's 65.548,749 $ 57,051,947 $ 49,019.236 123,516,765 $ 114.567.985
time. The City's Fund Balance Policy requires the Debt Service Fund unassigned fund balance to be
5% of expenditures. The current balance is 13.8%, well within the policy limits.
The Street Capital Projects Fund accounts for major street projects in Newton. In 2014, the City The City's five-year Capital Improvement Plan reflects appropriations for construction, improvements to, or
continued with projects funded from State and Federal. The fund reflects an ending balance of acquisition of an additional $37 million worth of capital assets for fiscal 2015 through 2020. Funding is budgeted
($5,863,953). The negative ending balance is the result of interfund loans from reserve funds for capital to come from general obligation bonds, utility revenue bonds, state revolving fund loans and special benefit
projects. In 2014 the City plans to issue approximately $6.4 million in bonds for these completed projects districts and other sources. The most significant projects include construction or enhancements of various
that would bring the Street Capital projects fund to a positive ending balance. streets, bridges, and traffic-ways, construction and enhancements to parks and athletic fields, airport facilities,
water treatment and distribution system improvements, wastewater collection and treatment facilities and storm
In Other Governmental Funds, the ending fund balance is ($399,145). The negative balance is due to water drainage improvements.
timing of interfund transfers and federal grant reimbursement. As discussed above, the City will issue
bonds in 2014 for completed projects that will bring the fund balance to a positive ending balance. Debt
General Fund Budgetary Highlights At December 31, 2014, the City had total general obligation debt outstanding of $43,655,000 backed by the full
faith and credit of the government. The remainder of the City bonded debt represents revenue bonds. The City
The General Fund actual revenues exceeded budgeted revenues by $948,003 for 2014. The actual 2014
IV-7
is obligated for a Kansas Department of Transportation Revolving Loan of $280,223 which is also backed by the
expenditures were $308,6751ess than budgeted. In 2014 revenues exceeded expenditure by $629,109 growing full faith and credit ofthe government. The City is obligated for $15,606,145 ofstate revolving fund loans secured
the fund balance in the General Fund. solely by specified revenue sources. This reflects $6.4 million debt for the rehabilitation of the water treatment
plant. In addition the City has a Golf Course Capital Lease obligation for $6,660,000 payable from specific
General Fund tax revenues, actual vs. budget, reflected a positive variance of $792,196. The increase revenue sources.
was largely due to higher than budgeted revenues for sales tax, franchise taxes and in lieu of tax revenue
from the wastewater fund. Charges for services were $54,810 below budget. Additional information of the City of Newton's long-term debt can be found in Note 5, of the Notes to Financial
Statements, on pages A-40 to A-45.
General Fund expenditures in 2014 were $17, 385,286 compared to $17,107,965 in 2013. This reflects
a 1.6% expenditure increase. The City has made deliberate attempts to hold the line on spending. The
increases are largely due to the cost of doing business and inflation. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
CAPITAL ASSET AND DEBT ADMINISTRATION Newton is the seat of Harvey County, within the Wichita Metropolitan Statistical Area (MSA). Wichita is one of
366 Metropolitan Statistical Areas (MSAs) in the nation. The Wichita MSA 2010 population of 624,099, ranked
Capital Assets 84"' in the nation. In 2010 Harvey County with a population of 34,684 had a per capita personal income (PCPI)
of $36,300. This PCPI ranked 49th in the state and was 93 percent of the state average, $38,977, and 91 percent
At the end of 2014, the City had $123,516,765 (net of depreciation) invested in a broad range of capital assets, of the national average, $39,937. The 2010 PCPI reflected an increase of 0.8 percent from 2009. The 2009-
including police and fire equipment. buildings, improvements, land, park facilities, golf course, and water and 2010 state change was 1.8 percent and the national change was 2.8 percent. In 2000 the PC PI of Harvey County
wastewater treatment facilities (see Table 5 below). This amount represents a net increase (including additions was $25,969 and ranked 23rd in the state. The 2000-2010 compound annual growth rate of PCPI was 3.4
and deletions) of $8,948,780. Construction in progress increased $12,222,789 as a result for the ongoing percent. The compound annual growth rate for the state was 3.2 percent and for the nation was 2.8 percent.
construction and upgrade of the wastewater treatment plant. Building and Improvements decreased $1, 112,265. The Harvey County Civilian Labor Force was 17,837 with an unemployment rate of 5.7%
Machinery and Equipment decreased $10,595 largely due depreciation. Additional information of the City of
Newton's capital assets can be found in Note 4, of the Notes to Financial Statements, on pages A-38 to A-39. The Kansas Logistics Park, located in Newton, Kansas, is ideally situated to provide manufacturers an ideal
location from which to serve the wind energy industry. The goal of the park is to facilitate growth in the wind
industry by providing a valuable resource in overcoming the high costs of logistics and manufacturing. The
Kansas Logistics Park is located between interstates 35 and 135 and provides access to two Class 1 carriers
as well as the WATCO short line railroads. The central location enables original equipment manufacturers and
suppliers to minimize the burden of supplying the large components into the heart of the nation's wind resources.
Tindall Corporation will construct a new precast, pre-stressed manufacturing facility at the Kansas Logistics
Park, which will be dedicated to the manufacture of the company's new concrete wind tower base system. The
150,000- 200,000-sq.-ft., state-of-the-art facility will be the company's sixth and largest and at full capacity will
have more than 400 employees. The 132-foot concrete and steel cable tower designed to increase the height
of wind turbines. The prototype has been completed and unveiled during the American Wind Energy Association
conference and exhibition. The Atlas CTB is more than 140 feet in height, made from staves of concrete which
weigh in at 100,000 pounds. The tower contains more than 13 miles of steel cable and six miles of conduit.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the City's finances and to show the City's accountability for the money it receives. If you
have questions about this report or need additional financial information, contact the Office of Assistant City
Manager for Budget and Finance, at the City of Newton, 201 E 61h Street, Newton, Kansas 67114.
IV-8
STATEMENT OF NET POSITION
December 31, 2014
Business
Governmental Type Component
Activities Activities Total Units
ASSETS
Cash and investments $ 6,124,665 10,483,812 16,608,477 1,444,787
Receivables:
Property taxes 6,102,802 6,102,802
Special assessment taxes 11,890,120 11,890,120
Sales tax 417,629 417,629
Franchise taxes 181,220 181,220
Accounts 378,118 1,702,138 2,080,256
Capital lease 6,078,400
Other 3,198,701 3,198,701
Internal balances (263,010) 263,010
Prepaid items 470,430 470,430
Inventory 135,181 144,951 280,132
Restricted assets:
Cash and investments 241,889 434,960 676,849 1,051,238
Other assets and deferred charges:
Capital assets:
Capital assets not being depreciated 25,309,573 11,569,963 36,879,536
Other capital assets, net of depreciation 41,155,245 45,481,984 86,637,229 2,066,371
Total Assets 95,342,563 71,996,163 167,338,726 10,640,796
Debt refunding costs, net of amortization 538,580 581,600 1,120,180 581,600
LIABILITIES
Accounts payable and accrued expenses 2,057,666 267,442 2,325,108
Due to other funds 1,875,345 1,875,345
Accrued interest expense 422,600 156,300 578,900 88,208
Claims payable 23,900 23,900
Unearned revenues 330,245 78,443 408,688
Due within one year 2,841,202 1,559,074 4,400,276 640,000
Due in more than one year 34,761,226 28,453,624 63,214,850 8,093,350
Total Liabilities 42,312,184 30,514,883 72,827,067 8,821,558
DEFERRED INFLOWS OF RESOURCES
Property taxes 6,102,802 6,102,802
NET POSITION
Net investment in capital assets 29,883,633 27,620,849 57,504,482 (6,979)
Restricted for:
Cemetery perpetual care 339,652 339,652
Debt service 528,849 434,960 963,809 963,030
Other purposes 115,837 115,837
Unrestricted 16,219,976 14,007,071 30,227,047 1,444,787
TOTAL NET POSITION $ 47,466,157 42,062,880 89,529,037 2,400,838
IV-9
STATEMENT OF ACTIVITIES
Net (Expenses) Revenues and
Program Revenues Changes in Net Assets
Operating Capital Business

Charges for Grants and Grants and Governmental Type Component
Functions/Programs Expenses Services Contributions Contributions Activities Activities Totals Units
Primary Government:
Governmental Activities:
General government $ 2,748,317 309,320 - (2,438,997) (2,438,997)
Public safety 9,091,977 1,839,673 514,653 (6,737,651) (6,737,651)
Highway and streets 3,123,553 17,054 117,666 18,991 (2,969,842) (2,969,842)
Culture and recreation 3,301,952 363,347 1,537,437 (I ,40 I, 168) (1,401,168)
Airport 2,037,345 1,782,788 1,030,063 775,506 775,506
Public works 1,768,709 (I' 768, 709) (1,768,709)
Interest and fiscal charges 1,455,266 - - (I ,455,266) (I ,455,266)
Total Governmental Activities 23,527,119 4,312,182 632,319 2,586,491 p5,996,127) (15,996,127)
Business Type Activities:
Sewer 4,497,867 8,253,518 - - - 3,755,651 3,755,651
Sanitation 1,719,060 1,886,439 167,379 167,379
Waterworks 3,626,523 4,866,859 - - 1,240,336 1,240,336
Golf Course I 810 959 1,212,284 669107 - 70,432 70,432
IV-10
Total Business Type Activities 11,654,409 16,219,100 669,107 5,233,798 5,233,798

Total Primary Government $ 35,181,528 20,531,282 632,319 3,255,598 ( 15,996,127) 5,233,798 (I 0, 762,329)
Component Units:
Public Library System $ 777,919 21,608 - - (756,311)
Public Building Commission 460,624 - 333,189 97,800 - - ~29,635)
Total Component Units $ 1,238,543 21,608 333,189 97,800 - (785,946)
General Revenues
Taxes:
Property taxes and special assessments 7,010,541 7,010,541
Sales tax 5,084,012 5,084,012
Franchise taxes 1,641,767 - 1,641,767
Other 1,050,347 - 1,050,347
Property tax payments from the City of Newton - 716,789
Intergovernmental, not restricted to specific programs 643,094 - 643,094 156,482
Investment earnings 7,665 17 7,682 6,620
Other 194,311 194,311 48,995
Transfers 2,362,303 ~2.362,303)
17,994,040 (2,362,286) 15,631,754 928,886
Change in net position 1,997,913 2,871,512 4,869,425 142,940
Net Position, Beginning of the Year 45,468,244 39,191,368 84,659,612 2,257,898
Net Position, End of the Year $ 47,466,157 42,062,880 89,529,037 2,400,838

BALANCESHEET-GOVERNMENTALFUNDS
December 31, 2014
Street Other Total
ASSETS
Cash and investments $ 2,315,298 528,849 704,106 3,548,253
Due from other funds 4,367,508 465,783 4,833,291
Receivables:
Property tax 5,123,809 219,357 759,636 6,102,802
Special assessments 11,890,120 11,890,120
Sales tax 417,629 417,629
Franchise tax 181,220 181,220
Accounts receivable 378,118 378,118
Other 765,111 2,000,000 433,590 3,198,701
Inventory 70,083 70,083
Prepaid expenditures 469,527 903 470,430
Restricted Assets:
Cash 241,889 241,889
Total assets $ 14,018,220 14,638,326 2,675,990 31,332,536
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE (DEFICITS)

Liabilities
Accounts payable $ 809,441 1,162,894 73,602 2,045,937
Due to other funds 4,701,059 2,007,547 6,708,606
Unearned revenue 759 876 2,000,000 234,350 2,994,226
Total liabilities 1,569,317 2,000,000 5,863,953 2,315,499 11,748,769

Deferred inflows
Property and special assessment taxes 5,123,809 12,109,477 759,636 17,992,922
Total liabilities and deferred inflows 6,693,126 14,109,477 5,863,953 3,075,135 29,741,691
Fund Balance (deficit)

Nonspendable:
Prepaid items 469,527 903 470,430
Inventory 70,083 70,083
Restricted for:
Debt service 528,849 528,849
Perpetual care 339,652 339,652
Law enforcement 115,837 115,837
Assigned to:
Capital asset acquisition 4,051,023 465,783 4,516,806
Other purposes 135,056 271,123 406,179
Unassigned 2,669,488 (5,863,953) {2,040,736) {5,235,201)
Total fund balance 7,325,094 528,849 (5,863,953) {399,145) 1,590,845
Total liabilities, deferred inflows and fund balance $ 14,018,220 14,638,326 2,675,990 31,332,536
IV-11
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
December 31, 2014
Total Fund Balance- Governmental Funds $ 1,590,845
Amounts reported for governmental activities in the statement of net position are
different because:
Special assessments are not considered available to liquidate liabilities of

the current period, and are deferred in the funds. However, they are properly
recognized as revenue in the entity-wide statements as soon as the related
improvement has been completed. 11,890,120
Developer loans receivable are not considered available to liquidate liabilities

of the current period, and are deferred in the funds. However, they have been
recognized as a reduction in expenses in the entity-wide statements. 2,663,981
Capital assets used in governmental activities are not financial resources and
therefore, are not reported in the funds.
Cost $ 94,067,274
Accumulated depreciation (27 ,602,456) 66,464,818
Long-term liabilities are not due and payable in the current period and therefore,
not reported as liabilities in the funds.
General obligation bonds payable (35,908,447)
Bond issue premiums, net (734,018)
KDOT revolving loan payable (280,223)
Capital leases payable (197,077)
Compensated absences (482,663)
Deferred GO debt refunding costs, net 538,580
Accrued interest payable on bonds (422,600) (37,486,448)
individual funds. The assets and liabilities of internal service funds are
included in governmental activities in the statement of net position.
Net position of internal service funds 3,181,192
Less property assets and long-term liabilities reported above (575,341)
Less amount to business type activities (263,010) 2,342,841
Total Net Position -Governmental Funds $ 47,466,157
IV-12

GOVERNMENTAL FUNDS
Street Other Total

Revenues:
Taxes and special assessments $ 13,036,223 1,389,804 - 1,114,640 15,540,667
Intergovernmental 568,543 33,900 18,991 2,576,489 3,197,923
Licenses and permits 174,173 - - - 174,173
Charges for services 1,454,223 - - - 1,454,223
Fines, forfeitures and penalties 592,416 - - - 592,416
Use of money and property 7,480 - - 917,032 924,512
Other 66,005 113,317 - 1,213,502 1,392,824
Total revenues ~899,063 1,537,021 18,991 5,821,663 23,276,738
Expenditures:
Current:
General government 2,451,207 - - 131,565 2,582,772
IV-13
Public safety 8,666,840 - 43,512 8,710,352

Highway and streets 2,161,912 - - - 2,161,912
Culture and recreation 1,664,488 - - 1,233,761 2,898,249
Airport - - - 1,542,993 1,542,993
Capital outlay 1,677,596 - 717,165 2,671,598 5,066,359
Debt service:
Principal - 2,319,928 - - 2,319,928
Interest - 1,496,978 - - 1,496,978
Fees & commissions - 947 - - 947
Total expenditures 16,622,043 3,817,853 717,16~ 5,623,429 26,780,490
Excess (deficiency) of revenues
Over (under) expenditures (722,980) (2,280,832) (698,174) 198,234 (3,503,752)
Other financing sources (uses):
Transfers in 2,351,069 2,045,906 - 140,255 4,537,230
Transfers out (1,167,185) - ~1.007,742) {2.174,927)
1,183,884 2,045,906 - ~867,487) 2,362,303
Net change in fund balances 460,904 (234,926) (698,174) (669,253) (1,141,449)

Fund balance, beginning of the year 6,864,190 763,775 ~5.165,779) 270,108 2,732,294
Fund balance, end of the year $ 7,325,094 528,849 ~863,953) (399,145) 1,590,845

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Net Change in Fund Balance- Total Governmental Funds $ (1,141,449)
Amounts reported for governmental activities in the statement of activities are

different because:
Governmental funds report long-term receivables as deferred inflows of revenue. In the statement
of activities, revenue from these receivables are recognized in the year recorded 663,981
Governmental funds report capital outlays as expenditures. However, in the statement

of activities, the cost of these assets is allocated over their estimated useful lives and
reported as depreciation expense.
Capital outlay expenditures 3,297,650
Depreciation expense (2,31 0,676)
In the statement of activities, gains and losses from the sale of property assets are reported net
of accumulated depreciation. In the funds statements, only the proceeds from sale are
reported as a revenue source. Changes in net position differ by the remaining basis
of assets sold or disposed. (23,990)
Long-term debt principal transactions are reflected in the governmental fund statements as
expenditures and other financing sources. In the government wide statement, these
transactions are reported as changes in debt on the statement of net position and have
no effect on the statement of activities.
Principal payments 2,336,959
Debt proceeds - contributed to golf enterprise fund asset purchases (214,107)
In the statement of activities, interest is accreted on outstanding bonds, in the

governmental funds an interest expenditure is reported when due.
Change in accrued interest payable 36,000
Bond issue premiums and refunding costs amortized to interest expense in the current year 6,659
In the statement of activities, compensated absences are measured by the

amounts earned during the year. In the governmental funds, expenditures are
measured by the amount of financial resources used. The net change in compensated
absences is reported on the statement of activities. (26,200)
Special assessments are not considered available to liquidate liabilities

of the current period, and accordingly, are deferred in the governmental funds. They
are properly recognized as revenue in the statement of activities as soon as the
related improvement has been completed. (754,000)
individual funds. The revenues and expenses of internal service funds, net of the portion
allocated to business activities, are included in governmental activities in the statement of net position. 127,086
Changes in net position - Governmental Activities $ 1,997,913
IV-14
BUDGET AND ACTUAL- GENERAL FUND
Year Ended December 31, 2014
Variance
Budgeted Amounts With Final
Original Final Actual Budget
Revenues and other sources:
Taxes $ 12,219,717 12,219,717 13,011,913 792,196
Intergovernmental 432,000 432,000 564,338 132,338
Licenses and permits 173,350 173,350 174,173 823
Charges for services 1,516,750 1,516,750 1,461,940 (54,810)
Fines, forfeitures and penalties 530,350 530,350 592,416 62,066
Use of money and property 27,800 27,800 16,731 (11,069)
Other 24,075 24,075 45,121 21,046
Transfers in 2,142,142 2,142,142 2,147,555 5,413
Total revenues and other sources 17,066,184 17,066,184 18,014,187 948,003
Expenditures and other uses:
Current:
General government 3,057,268 3,057,268 2,453,141 604,127
Public safety 9,123,548 9,123,548 8,672,437 451,111
Highway and streets 2,055,080 2,055,080 2,173,483 (118,403)
Parks and cemeteries 1,248,938 1,248,938 1,683,194 (434,256)
Capital outlay 70,000 70,000 114,833 (44,833)
Transfers out 2,138,919 2,138,919 2,287,990 {149,071)
Total expenditures and other uses 17,693,753 17,693,753 17,385,078 308,675
Excess (deficiency) of revenues over (under)
expenditures and other uses (627,569) (627,569) 629,109 1,256,678
Budgetary fund balance, beginning 627,569 627,569 1,058,177 430,608
Budgetary fund balance, ending $ 1,687,286 1,687,286
Budget-to-GAAP Reconcilation
Sources/inflows of resources
Actual budgetary basis revenues and other sources $ 18,014,187
Revenue included in special revenue funds for budgetary reporting 224,068
Transfers from other funds are inflows of budgetary resources
but are not revenues for financial reporting purposes (2,147,555)
Accrued revenue is included in revenues for financial
reporting purposes but are not inflows of budgetary resources (233,241)
Total revenues as reported on the statement of revenues,

Uses/outflows of resources
Actual budgetary basis expenditures and other uses $ 17,385,078
Expenditures included in special revenue funds for budgetary reporting 1,613,687
Transfers to other funds are outflows of budget resources but
are not expenditures for financial reporting purposes (2,287,990)
Encumbrances are included in budget expenditures, but not for GAAP (135,055)
Prepaid expenditures are included as expenditures for budget
purposes but not for financial reporting purposes 4,719
Total expenditures as reported on the statement of revenues,
The accompanying notes are an integral part ofthis statement
IV-15
STATEMENT OF NET POSITION- PROPRIETARY FUNDS
December 31,2014
Governmental
Ent~riseFunds Internal
ASSETS
Current assets
Cash, including investments $ 3,353,525 6,807,283 323,004 10,483,812 2,576,382
Accounts receivable 917,198 224,006 556,108 4,826 1,702,138
Inventories 73,588 71,363 144,951 65,098
Total current assets 6,278,725 224,006 7,436,979 399,193 14,338,903 2,641,480
Noncurrent assets
Restricted cash 260,960 174,000 434,960
Capital assets
Property, plant and equipment,
net of accumulated depreciation 36,843,831 633,463 11,450,935 8,123,718 57,051,947 582,336
Total noncurrent assets 37,104,791 633,463 11,664,935 8,123,718 57,526,907 582,336
Total assets 43,383,516 857,469 19,101,914 8,522,911 71,865,810 3,223,816
LIABILITIES
Current liabilities
Due to other funds 132.657 132,657
Accounts payable 79,192 45,381 77,050 12,150 213,773 11,730
Compensated absences 9,782 18,462 25,425 53,669 6,994
Unreported claims payable 23,900
Unearned Revenue 78,443 78,443
Current portion of long-term debt 638,041 411,033 510,000 1,559,074
Accrued interest expense 109,700 46,600 156,300
Total current liabilities 836,715 196,500 560,108 600,593 2,193,916 42,624

State revolving fund loans payable 12,237,540 2,693,335 14,930,875
Lease payable to Public Building Commission 6,150,000 6,150,000
General obligation bonds 5,172,324 2,200,425 7,372,749
Total noncurrent liabilities 17,409,864 4,893,760 6,150,000 28,453,624
Total liabilities 18,246,579 196,500 5,453,868 6,750,593 30,647,540 42,624
NET POSITION
Net invesment in capital assets 18,795,926 633,463 6,146,142 2,045,318 27,620,849 582,336
Restricted for debt service 260,960 174,000 434,960
Unrestricted 6,080,051 27,506 7,327,904 308,600 13,744,061 2,598,856
Total net position $25,136,937 660,969 13,648,046 2,353,918 41,799,870 3,181,192
Net position per fund statements $ 41,799,870

Amounts reported for business-type
activities in the statement of net position
are different because certain internal
service assets/liabilities are included
with business-type activities 263,010
Net position of business-type activities $ 42,062,880
IV-16
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
-PROPRIETARY FUNDS
Governmental
Ente!l!rise Funds Internal
Operating revenues:
Charges for goods and services $ 8,220,495 1,861,420 4,789,547 1,144,956 16,016,418 3,579,900
Other 33,023 25,019 77,312 67,328 202,682
Total operating revenues 8,253,518 1,886,439 4,866,859 1,212,284 16,219,100 3,579,900
Operating expenses:
Personal services 1,532,369 925,979 1,556,184 645,332 4,659,864 2,086,589
Contractual services 1,026,005 384,941 1,181,128 468,664 3,060,738 769,916
Commodities 59,988 34,833 155,886 177,749 428,456 594,516
Vehicle operating 41,904 192,879 56,171 290,954 40,155
Total operating expenses 3,964,988 1,719,422 3,378,537 1,638,459 10,701,406 3,538,091
Operating income 4,288,530 167,017 1,488,322 (426,175) 5,517,694 41,809
Non-operating revenues (expenses):
Gain (loss) on disposal of property 3,650 13,079 10,442 (119,700) (92,529)
Interest income 10 7 17
Interest expense !497,772) (224,625) !52,800) !775,197)
Income before capital contributions
and transfers 3,794,408 180,096 1,274,149 (598,668) 4,649,985 41,809
Capital contributions 669,107 669,107
Transfers in 7,000 7,000 116,620
Transfers out ! I ,468,589) (175,752) (841,582) (2,485,923)
Change in net position 2,332,819 4,344 432,567 70,439 2,840,169 158,429
Net position, beginning of the year 22,804,118 656,625 13,215,479 2,283,479 38,959,701 3,022,763
Net position, end of the year $ 25,136,937 660,969 13,648,046 2,353,918 41,799,870 3,181,192
Increase in fund equity per funds $ 2,840,169

Some amounts reported for business-
type activities in the statement of net
position are different because certain
internal service expenses are included with
business-type activities 31,343
Change in net position of business-
type activities $ 2,871,512
IV-17
STATEMENT OF CASH FLOWS
-PROPRIETARY FUNDS
Governmental
Ente!}!rise Funds Internal
Cash flows from operating activities:
Cash received from customers $ 8,24I,l69 1,883,352 4,776,123 1,163,640 16,064,284 3,579,900
Cash payments to suppliers for goods
and services (I ,098,828) (612,927) (I ,4 72,663) (648,995) (3,833,413) (1,404,284)
Cash payments to employees for services (I ,528,993) (927,218) (I ,559,086) (648,149) (4,663,446) (207,955)
Cash payments for health benefits (I ,862,569)
Other operating revenues 33,023 77,312 67,328 177,663
Net cash provided by operating
activities 5,646,371 343,207 I,821,686 ~66,176) 7,745,088 105,092
Cash flows from non-capital
financing activities:
Transfers in 7,000 7,000 II6,620
Transfers out (I ,468,589) (175,752) (841,582) (2,485,923)
Due to (from) other funds ~I ,I83,000) 132,657 (I ,050,343)
Net cash used for non-capital
financing activities {2!644,589) ~43,095) (841,582) (3,529,266) II6,620
Cash flows from capital and
related financing activities:
Proceeds from selling capital assets 3,650 31,860 12,167 47,677
Payments for capital assets (9,693,394) (504,988) (21,822) (I 0,220,204)
Long-term debt proceeds 6,444,148 6,444,148
Long-term debt payments:
Principal paid (693,598) (488,247) (1,181 ,845)
Interest and fees paid ~444.872) (225,059) ~669,931)
Net cash used for capital and

related financing activites ~4,384,066) ~473,128) ~722,961) ~5.580,155)
Cash flows from investing

activities:
Interest income received 10 7 17
Net cash from investing activites 10 7 17
Net increase (decrease) in cash (1,382,284) (173,016) 257,153 (66,169) (I ,364,3I6) 221,712
Cash, beginning of the year 4,996,769 173,016 6,724,130 389,173 12,283,088 2,354,670
Cash, end of the year $ 3,614,485 6,981,283 323,004 10,918,772 2,576,382
IV-18
STATEMENT OF CASH FLOWS (CONTINUED)
- PROPRIETARY FUNDS
Governmental
Enterprise Funds Internal
Sanitation Waterworks GolfCourse Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 4,288,530 167,017 1,488,322 (426,175) 5,517,694 41,809
Adjustments to reconcile operating

income to net cash:
Changes in operating assets and liabilities:
Accounts receivable 20,674 (3,087) (13,424) 28,351 32,514
Inventories (38,900) 10,864 (28,036) 34,628
Prepaid expenses 3,000 3,000
Accounts payable and accrued expenses 32,445 (1,513) (46,480) (25,930) (41,478) (33,460)
Claims payable 15,200
Total adjustments 1.357.841 176.190 333,364 359.999 2.227.394 63.283
Net cash provided by (used in) operating

activities $ 5.646.371 343.207 1.821.686 (66.176) 7,745,088 105.092
NONCASH FINANCING ACTIVITIES

Capital assets acquired with contributed capital $ 214,107 214,107
Long-term debt retirements though capital
contributions 455,000 455,000
$ 669,107 669,107
IV-19
STATEMENT OF FIDUCIARY NET POSITION

December 31,2014
ASSETS
Cash and investments $ 85,705
LIABILITIES
NET POSITION
Held in trust for employee
pension benefits $ 85,705
IV-20
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
Additions:
Employer contributions:
Police $
Fire
Investment income:
Interest earned 8
Total additions 8
Deductions:
Benefits paid 4,774
Total deductions 4,774
Net increase (decrease) (4,766)
Net position held in trust for pension benefits

Beginning of the year 90,471
End of the year $ 85,705
IV-21
COMBINING STATEMENT OF NET POSITION
COMPONENT UNITS
December 31, 2014
Public Public
Library Building
ASSETS
Cash and investments $ 1,444,787 1,444,787
Restricted assets:
Cash and investments 1,051,238 1,051,238
Other Receivables:
Capital lease receivable 6,078,400 6,078,400
Capital assets:
Other capital assets, net of depreciation 64,582 2,001,789 2,066,371
Total Assets 1,509,369 9,131,427 10,640,796
LIABILITIES
Accounts payable
Accrued interest expense 88,208 88,208
Noncurrent liabilities:
Due within one year 640,000 640,000
Due in more than one year 8,093,350 8,093,350
Total Liabilities 8,821,558 8,821,558
NET POSITION
Net investment in capital assets 64,582 (71,561) (6,979)
Restricted for:
Debt service 963,030 963,030
Unrestricted 1,444,787 1,444,787
Total Net Position $ 1,509,369 891,469 2,400,838
IV-22
COMBINING STATEMENT OF ACTIVITIES
COMPONENT UNITS
FOR THE YEAR ENDED DECEMBER 31, 2014
Public Public
Library Building
Program expenses
Personal services $ 460,802 460,802
Contractual services 93,706 93,706
Commodities 199,110 1,856 200,966
Interest and fiscal charges 295,506 295,506
Depreciation 24,301 163,262 187,563
Total program expenses 777,919 460,624 1,238,543
Program revenues
Capital grants and contributions 97,800 97,800
Operating lease payments from other governments 333,189 333,189
Charges for services 21,608 21,608
Total program revenues 21,608 430,989 452,597
Net program (expense) revenue (756,311) (29,635) (785,946)
General Revenues
Property taxes 716,789 716,789
Interest 5,469 1,151 6,620
Other 48,995 48,995
Total general revenues 841,843 87,043 928,886
Increase (decrease) in net position 85,532 57,408 142,940

Net position, beginning of the year 1,423,837 834,061 2,257,898
Net position, end of the year $ 1,509,369 891,469 2,400,838
IV-23
!. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Reporting Entity - The City of Newton was originally incorporated in 1871 under the laws of the State of Measurement Focus. Basis of Accounting. and Financial Statement Presentation- The government-wide
Kansas. The City operates under a commission-manager form of government and provides services to its financial statements are reported using the economic resources measurement focus and the accrual basis of
citizens in the areas of public safety, public works, community planning and development, water, accounting, as are the proprietary funds and fiduciary fund financial statements. Revenues are recorded
wastewater and sanitation utilities, recreation, cultural and social assistance and municipal facilities. when earned and expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and
Accounting principles generally accepted in the United States of America require that these financial similar items are recognized as a revenue as soon as all eligible requirements imposed by the provider
statements present the City of Newton (the primary government) and its component units. The component have been met.
units described below are included in the City's reporting entity because of their operational significance
or financial relationships with the City. Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
Discretely Presented Component Units measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
The Newton Public Library, although a separate legal entity, is reported as a discrete component unit. considers revenues to be available if they are collected within 60 days of year end. Expenditures are
The Library is governed by a Board, the appointees of which are approved by the City. The Library is generally recorded when a liability is incurred, as under accrual accounting. However, debt service
not a separate taxing entity under State statutes and the City levies taxes for the Library operation, expenditures, as well as expenditures related to changes in compensated absences, are recorded only when
which represents a significant portion of its total revenues. the payment is due.
The Newton Public Building Commission INPBC) was formed under Kansas statutes during 2005 to Property and sales taxes, franchise taxes, licenses and fees and investment income associated with the
IV-24
provide debt financing for City facilities. The NPBC is a separate legal entity, governed by a Board current fiscal period are all considered to be susceptible to accrual and have been recognized as revenue of
which is appointed by the City Commission. The NPBC is included as a component unit because of the current year. Property taxes and special assessments receivable not due in the current year are not
the City's ability to impose its will on Commission operations. susceptible to accrual and are recorded as deferred revenue. All other revenue items are considered to be
measurable and available when cash is received.
Separate financial statements of the component units are not issued.
Fund Equity- Beginning with fiscal year 2011, the City implemented Governmental Accounting
Related Organization - Newton Housing Authority is a related organization that is not included in the Standards Board (GASB) Statement No. 54, "Fund Balance Reporting and Governmental Fund Type
financial reporting entity. The Authority was created to administer public housing programs authorized by Definitions." This Statement provides more clearly defined fund balance categories to make the nature
the United States Housing Act of 1937, as amended. Revenues consist of housing assistance payments and extent of the constraints placed on a government's fund balances more transparent. The following
from the U.S. Department of Housing and Urban Development and rent received from eligible low income classifications describe the relative strength of the spending constraints:
tenants.
Nonspendable fund balance--amounts that are not in spendable form (such as inventory) or are
Government-wide and Fund Financial Statements- The government-wide financial statements (the required to be maintained intact.
statement of net position and the statement of activities) report information on all of the non-fiduciary Restricted fund balance--amounts constrained to specific purposes by their providers (such as
activities of the primary government and its component units. The effects of nearly all interfund activity grantors, bondholders, and higher levels of government), through constitutional provisions, or by
have been removed from these statements. Governmental activities, which normally are supported by enabling legislation.
taxes and intergovernmental revenues, are reported separately from the business-type activities, which rely
to a significant extent on fees and charges for support. Likewise, the primary government is reported Committed fund balance--amounts that can be used only for specific purposes determined by a formal
discretely from the legally separate component unit for which the government is financially accountable. action of the City Commission. The City Commission is the highest level of decision-making
authority for the City. Commitments may be established, modified, or rescinded only through
The statement of activities demonstrates the degree to which the direct expenses of a given function or ordinances approved through a majority vote by a quorum of the Commission.
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a Assigned fund balance--amounts the City intends to use for a specific purpose as directed by the City
specific function or segment. Program revenues include (I) charges to customers who purchase, use, or Commission. Fund balances segregated for capital asset acquisition and other special revenue fund
directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants purposes are included in assigned fund balance.
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported Unassigned fund balance--amounts that are available for any purpose. Positive amounts are reported
as general revenues. only in the general fund.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally
available, the City considers restricted funds to have been spent first. When an expenditure is incurred for are followed in both the government-wide and enterprise fund financial statements to the extent that those
which committed, assigned, or unassigned fund balances are available, the City considers amounts to have standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board
been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, (GASB). Governments have the option offollowing subsequent private-sector guidance for their
unless the City Commission has provided otherwise in its commitment or assignment actions. business-type activities, subject to the same limitation. The City has elected not to follow subsequent
private-sector guidance.
The City has established a minimum fund balance policy for maintaining fund balances in governmental
funds. The City strives to maintain a minimum unassigned fund balance of at least 15% of budgeted As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
annual expenditures in the General fund. statements. Exceptions to the rule are payments in lieu of taxes and other charges between the City's
enterprise funds and various other functions of the city. Elimination of these charges would distort the
The following major governmental funds are reported: direct costs and program revenues reported in these other functions.
The General Fund is used to account for all financial resources except those required to be accounted for
in another fund. Amounts reported as program revenues include (I) charges to customers or applicants for goods, services
or fees, (2) operating grants and contributions, and (3) capital grants and contributions, including
The Debt Service Fund is used to account for the accumulation of resources for, and the payment of,
contribution through special assessment financing. Internally dedicated resources and all taxes are
interest and principal on general long-term debt, including special assessments which are general
reported as general revenues.
obligations of the City.
Street Capital Project Fund is used to account for financial resources to be used for the acquisition or Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
IV-25
construction of major capital improvements relating to the construction of city streets through capital grant revenues and expenses generally result from providing services and producing and delivering goods in
funding and issuance of general obligation debt. connection with the proprietary funds' ongoing operations. Operating revenues of the proprietary funds
are charges to customers for sales and services. Operating expenses for enterprise and internal service
The following major enterprise funds are reported: funds include the cost of sales and services, administrative expenses, and depreciation of capital assets.
All revenues and expenses not meeting these criteria are reported as non-operating revenues and expenses.
The Sewer Fund accounts for the operation and maintenance of the City's sewer system, including the
wastewater treatment facility and sewer infrastructure.
Cash and Investments - State statutes authorize the City to invest in temporary notes and no-fund warrants
The Sanitation Fund accounts for the operations of the City's trash collection and recycling utility. of the City, time deposits, United States Treasury bills or notes, bonds of municipalities of the State of
Kansas, repurchase agreements, and the Kansas Municipal Investment Pool.
The Waterworks Fund accounts for operation of the water utility, providing an adequate, quality supply of
water to the City.
Cash resources of the individual funds are combined to form a pool of cash and temporary investments,
The Golf Course Fund accounts for the activities of the Sand Creek Station Golf Course. The course was which is managed by the Director of Finance. The pool has the general characteristics of demand deposit
completed and began operations as a public course during the summer of 2006. accounts, in that, each fund may deposit additional cash at any time and also may withdraw cash at any
time without prior notice or penalty. Investments of the pool consist entirely of certificates of deposit and
funds held in the Kansas Municipal Investment Pool. All investments are reported at their fair values
The City also reports the following additional fund types:
which is identical to original cost.
Internal Service Funds are used to account for the financing of goods and services provided by one fund to
other funds of the City on a cost reimbursement basis and to account for the City's self-insurance activities Each fund type's portion of the pool is displayed on the combined balance sheet as cash and investments.
relating to employee health coverage. Earnings of the pool are allocated to the investing fund, unless specifically designated. Investments are
The Pension Trust Fund is used to account for the activities of the City's Police and Fire Pension fund stated at cost, which is the equivalent of fair value for all investments held during 2014.
which was established in 1947 to provide benefits for police and fire personnel who retired prior to the
City's participation in the State of Kansas Public Employees Retirement System. This plan will end with
the deaths of the few remaining beneficiaries of the plan.
Property Taxes Receivable -In accordance with governing State statutes, property taxes levied during the Capital Assets - Capital assets are reported in the applicable governmental or business-type activities
current year are a revenue source to be used to finance the budget of the ensuing year. Taxes are assessed columns in the government-wide financial statements. Capital assets are recorded at cost or estimates of
on a calendar year basis and become a lien on the property on November I of each year. The County original cost and gifts at fair value at the date of the gift. The City capitalizes purchases of assets with a
Treasurer is the tax collection agent for all taxing entities within the County. Property owners have the cost of $1,000 or more and an estimated useful life in excess of one year. The cost of normal maintenance
option of paying one-half or the full amount of the taxes levied on or before December 20 during the year and repairs that do not add to the value of the asset or materially extend the life of an asset are not
levied with the balance to be paid on or before May 10 of the ensuing year. State statutes prohibit the capitalized.
County Treasurer from distributing taxes collected in the year levied prior to January I of the ensuing
year. Consequently, for revenue recognition purposes, the taxes levied during the current year are not due Depreciation of property, plant and equipment is calculated using the straight-line method over the
and receivable until the ensuing year. At December 31, such taxes are a lien on the property and are following estimated useful lives:
recorded as taxes receivable with a corresponding amount recorded as deferred revenue on the balance
sheet of the appropriate funds. It is not practicable to apportion delinquent taxes held by the County Buildings 30 to 50 years
Treasurer at the end of the year and further, the amounts thereof are not material in relationship to the Improvements other than buildings 15 to 30 years
financial statements taken as a whole. General infrastructure 30 to 50 years
Machinery 5 to 15 years
Intergovernmental and Other Revenues - Recognized State-shared taxes represent payments received Office equipment and furniture 5 to 12 years
during the current fiscal period. State statutes specify distribution dates for such shared taxes and, Water treatment plant 30 years
consequently, for revenue recognition purposes, amounts collected and held by the State on behalf of the Water and sewer mains 30 to 50 years
City at year-end are not due and receivable until the ensuing year.
IV-26
Compensated Absences- The City's policies regarding vacation and sick leave permit employees to
Federal and State grant aid is reported as revenue when the related reimbursable expenditures are incurred. accumulate a maximum of I 0 to 18 days of vacation leave (depending on the number of years of
Unrestricted aid is reported as revenue in the fiscal year the entitlement is received. continuous service) and a maximum accumulation of90 days sick leave. Policies require the cancellation
of accumulated sick leave on date of employment termination. The liability for accrued vacation leave of
Licenses, fees, fines, forfeitures, charges for services and other revenues are generally not susceptible to the governmental fund types is only recorded in the government-wide statements, representing the City's
accrual and are recorded when received in cash. commitment to fund such costs from future operations. Proprietary fund types accrue vacation leave
benefits in both the government-wide and fund financial statements. The liability is based on current
Proprietary Fund Revenues - Revenue is recorded in proprietary funds as billed to customers on a cycle salary costs and the vested portion of accumulated benefits.
basis. Residential and commercial customers are billed monthly. Within the City's utility funds, an
estimated amount has been recorded for services rendered but not yet billed at the close of the year. Cash Flows - For purposes of the statement of cash flows, the City considers all investments by funds in
the City's cash and investment pool (including restricted assets) to be a cash equivalent.
Special Assessments - In accordance with State statutes, projects financed in part by special assessments
are financed through issuance of general obligation bonds of the City and are retired from the bond and Estimates - The preparation of financial statements in conformity with accounting principles generally
interest fund. Special assessments paid prior to the issuance of bonds are recorded as revenue in the accepted in the United States of America requires management to make estimates and assumptions that
appropriate project. Special assessments received after the issuance of bonds are recorded as revenue in affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.
the bond and interest fund. The special assessments receivable are not recorded as revenue in the fund
financial statements when levied against the respective property owners as such amounts are not available Budgetary Principles -The City is required by State statute to adopt annual budgets for the general fund,
as a resource to finance current year operations. special revenue funds, debt service fund, enterprise funds, and internal service funds (unless specifically
exempted by statute) on or before August 25 for the ensuing year. Specific funds exempted from legally
Inventories - Inventories that benefit future periods are recorded as expenditures or expenses as consumed. adopted budgetary requirements include:
Inventories are stated at cost, as determined by the first-in, first-out method.
Special Revenue Funds Internal Service Funds
Community Development Health Benefits Risk
Restricted Assets - Certain proceeds of enterprise fund revenue bonds, as well as certain resources set
Management
aside for their repayment, are classified as restricted assets on the balance sheet because their use is
limited by applicable bond covenants. Controls over spending in funds which are not subject to legal budgets are maintained by the use of
internal spending limits established by management. Total expenditures by a fund constitute the legal
Certain assets of special revenue funds are classified as restricted assets on the balance sheet because their level of control. Expenditures may not exceed appropriations at this level. Management may transfer
use is limited by applicable grant agreements. appropriations between budget lines within the same fund without approval of the governing body.
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 2. DEPOSITS AND INVESTMENTS (Continued)

State statutes permit original budgets to be increased for " ... previously unbudgeted increases in revenue Custodial credit risk- deposits
other than ad valorem property taxes." The City must first publish a Notice of Hearing to amend the
budget. Ten days after publication, a Public Hearing is held and the governing body may amend the Custodial credit risk is the risk that in the event of a bank failure, the Government's deposits may not be
budget at that time. Budgetary data in the financial statements represent the original budgeted amounts for returned to it. State statutes require the Government's deposits in financial institutions to be entirely
all funds. covered by federal depository insurance or by collateral held under a joint custody receipt issued by a bank
within the State of Kansas, the Federal Reserve Bank of Kansas City, or the Federal Home Loan Bank of
Budgetarv Basis of Accounting - Applicable Kansas statutes require the use of an encumbrance system as Topeka, except during designated "peak periods" when required coverage is 50%. The City of Newton has
a management control technique to assist in controlling expenditures. For budgetary purposes, not designed peak periods as defined above. All deposits were legally secured at December 31, 2014.
encumbrances of the budgeted governmental fund types, representing purchase orders, contracts and other
commitments, are reported as a charge to the current year budget. All unencumbered appropriations lapse At December 31, 2014, the City's carrying amount of deposits was $3,464,718 and the bank balances
at the end of the year, except for capital project funds which are carried forward until such time as the totaled $3,506,745. Of the bank balance, $600,550 was covered by federal depository insurance and
project is completed or terminated. Encumbered appropriations at year end are carried forward. For $2,906,195 was collateralized with securities held by the pledging financial institutions' agents in the
budgetary purposes, revenues are recognized on a cash basis in budgeted governmental fund types and not City's name.
on the modified accrual basis as required by generally accepted accounting principles. Accordingly, the
actual data presented in the budgetary comparison statements differs from the data presented in the Custodial credit risk - investments
financial statements prepared in accordance with accounting principles generally accepted in the United
States of America (GAAP). For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the
Government will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. State statutes require investments to be adequately secured. At December
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2. DEPOSITS AND INVESTMENTS 31,2014, the Government had invested $13,896,560 in the State's municipal investment pool. The fair
value ofthe City's position in the pool is the same as the value of the pool shares.
As of December 31,2014, the City had the following investments and maturities: The municipal investment pool is under the oversight of the Pooled Money Investment Board. The board
is comprised of the State Treasurer and four additional members appointed by the State Governor. The
Maturity- board reports annually to the Kansas legislature. State pooled monies may be invested in direct obligations
Fair Less than of, or obligations that are insured as to principal and interest, by the U.S. government or any agency
Investment Type Value I Year Rating thereof, with maturities up to four years. No more than ten percent of those funds may be invested in
mortgage-backed securities. In addition, the State pool may invest in repurchase agreements with Kansas
Kansas Municipal Investment Pool $13,896,560 13,896,560 S&PAAAf/SI+ banks or with primary government securities dealers.
K.S.A. 9-140 I establishes the depositories which may be used by the Government. The statute Investments of Discreetly Presented Component Units
requires banks eligible to hold the Government's funds have a main or branch bank in the county in I. Newton Public Building Commission held no investments at December 31,2014.
which the Government is located, or in an adjoining county if such institution has been designated as 2. Newton Public Library investments consist of$571,000 in collateralized bank deposits at
an official depository, and the banks provide an acceptable rate of return on funds. In addition, K.S.A. December 31,2014.
9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The City has no
other policies that would further limit interest rate risk. Financial Statement Presentation
Cash and investments, including cash on hand, is shown in the accompanying financial statements as
K.S.A. 12-1675limits the Government's investment of idle funds to time deposits, open accounts, and follows:
certificates of deposit with allowable financial institutions; U.S. government securities; temporary
notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The Primary Component
City has no investment policy that would further limit its investment choices. The rating of the City's Government Units Total
investments is noted above. Statement of net position
Concentration of credit risk Cash and investments $ 16,608,477 1,444,787 18,053,264
Restricted cash 676,849 1,051,238 1,728,087
State statutes place no limit on the amount the Government may invest in any one issuer as long as the Statement of fiduciary net position
investments are adequately secured under K.S.A. 9-1402 and 9-1405. As noted in the schedule above, the
Cash and investments 85,705 85,705
City's investments as of December 31,2014, consisted entirely of amounts held by the State's municipal
investment pool. $ 17,371,031 2,496,025 19,867,056
3. CAPITAL ASSETS 3. CAPITAL ASSETS (Continued}
Capital asset activity of the primary government for the year ended December 31, 2014, was as follows: Capital asset activity of component units for the year ended December 31, 2014, was as follows:
Balance Balance Balance Balance

January I Additions Retirements December 31 January I Additions Retirements December 31
Governmental activities: Newton Public Library:
Capital assets, not being depreciated: Capital assets, being depreciated
Land $ 4,111,721 4,111,721 Equipment $ 525,082 39,047 564,129
Construction in progress 18,427,892 2,769,960 21,197,852 Less accumulated depreciation (475,246} (24,301) (499,547)
Total capital assets, not being depreciated 22,539,613 2,769,960 25,309,573 Total capital assets, net of depreciated $ 49,836 14,746 64,582
Capital assets, being depreciated:
Buildings and structures 21,343,635 21,343,635 Newton Public Building Commission:
General infrastructure 36,794,81 I 36,794,811 Capital assets, being depreciated:
Equipment 10,493,533 527,690 (40!,968) 10,619,255 Building and structures $ 2,620,51! 346,760 2,967,271
General infrastructure 512,809 512,809
68,631,979 527,690 (401,%8) 68,757,701
Less accumulated depreciation: 3,133,320 346,760 3,480,080
Less accumulated depreciation (I ,315,029) (163,262} (1,478,291)
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Buildings and structures (7,132,435} (623,288} (7,755,723)

Total capital assets, being depreciated $ 1,818,291 183,498 2,001,789
General infrastructure (10,379,843} (973,914} (II ,353, 757)
Equipment (8,1 10,565} (760,389) 377,978 (8,492,976)
Depreciation expense was charged to functions of the primary government, as follows:
(25,622,843) (2,357 ,591) 377,978 (27,602,456)
Total capital assets, being depreciated 43,009,136 (I ,829,90 I) (23,990) 41,155,245 Governmental activities:
Total capital assets, net of depreciation $ 65,548,749 940,059 (23,990) 66,464,818 General government $ 162,529
Public safety 455,942
Business-type activities: Highway and streets 977,283
Capital assets, not being depreciated: Cultural and recreation 214,514
Land $ 1,082,579 !,082,579 Airport 500,408
Construction in progress !,034,546 9,452,838 10,487,384 Depreciation on capital assets held by internal service funds,
Total capital assets, not being depreciated 2,117,125 9,452,838 11,569,963 charged to functions based on usage 46,915
Capital assets, being depreciated: Total depreciation expense- government activities $ 2,357,591
Buildings and improvements 19,515,603 19,515,603
Equipment 8,971,045 981,474 (730,323) 9,222,196 Business-type activities:
Utility service lines and infrastructure 50,976,387 50,976,387 Water $ 429,168
79,463,035 981,474 (730,323) 79,714,186 Sewer !,304,722
Sanitation !80,790
Less accumulated depreciation:
Golf Course 346,714
Buildings and improvements (4,399,381) (488,977) - (4,888,358)
Total depreciation expense- business-type activities $ 2,261,394
Equipment (6,192,549) (573,983) 590,116 (6,176,416)
Utility service lines and infrastructure (21,968,994) (1,198,434) (23,167,428)
590,116 (34,232,202) Component Units:
(32,560,924) (2,261 ,394)
Newton Public Library $ 24,301
Total capital assets, being depreciated 46,902,11! (I ,279,920) (140,207) 45,481,984
Newton Public Building Commission 163,262
Total capital assets, net of depreciation $ 49,019,236 8,172,918 (140,207) 57,051,947 $
Total depreciation expense - component units 187,563
4. LONG-TERM DEBT 4. LONG-TERM DEBT (Continued)
The following is a summary of changes in long-term debt of the City for the year ended December 31, 2014: General Obligation Bonds -General obligation bonds are serial bonds to be retired through calendar year
Payable from Governmental Actvities 2033. At December 31, 2014, the outstanding general obligation bonds consisted of the following:
General KDOT
Interest Outstanding Original
Obligation Revolving Capital Compensated
Bonds Loan Rates 12/31/14 Amount
Leases Absences Total
Primary Government: Airport refunding 5.250. 6.000 $ 335,000 515,000
Outstanding January I, 2014 $ 38.129,714 378,885 456.463 38,965.062 Internal improvements, 2006-A 3.800. 5.000 2,185,000 9,515,000
Additions 214,107 482,663 696.770 Airport improvements, 2006-B 5.375. 7.000 265,000 1,100,000
Retirements (2.221.267) (98,662) (17,030) (456,463) (2. 793.422) Internal improvements, 2007-A 3.500. 5.500 1,705,000 2,300,000
Principal outstanding 35.908,447 280,223 197,077 482,663 36,868.410 Internal improvements, 2008-A 3.500. 4.500 10,225,000 12,600,000
Add bond premium, net 734,018 734,018 Internal improvements, 2008-B 4.550 . 6.000 345,000 710,000
Outstanding December 31, 2014 36,642.465 280,223 197,077 482,663 37,602,428 Internal improvements, 2009 3.000. 5.000 4,900,000 6,815,000
Due within one year 2,226,197 102,440 29,902 482,663 2,841,202 Internal improvements/Refunding, 20 10-A 2.000. 4.000 6,075,000 7,800,000
Taxable GO Bonds, 2010-B 4.500 . 6.250 2,000,000 2,000,000
Due in more than one year $ 34,416,268 177,783 167,175 34,761,226
- Internal Improvement, 20 I 0-C 2.000. 4.375 2,690,000 2,935,000
GO Refunding, 2012-A 2.000 • 2.100 3,460,000 3,570,000
Pa~able from Business-T:r:ee Activities
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Internal improvements/Refunding, 20 13-A 2.000 • 4.000 9,470,000 9,595,000

General KDHE Golf Course
$ 43,655,000
Revenue Obligation Revolving Capital
Bonds Bonds Fund Loans Lease Total
Remaining debt service requirements for general obligation bonds will be paid from the bond and interest
Primary Government:
fund with future property tax revenues, special assessment taxes, and enterprise funds. A portion of the
Outstanding January I, 2014 $ 115,000 8,160,286 9,815.108 7,115,000 25.205.394
general obligation bond principal represents special assessment debt with government commitment to pay the
Additions 6,444,149 6,444,149
principal and interest if the special assessments are not paid by the applicable property owners. Annual debt
Retirements (115,000) (413,733) !653,112) !455,000) ! I ,636,845) service requirements to maturity for general obligation bonds are as follows:
Outstanding December 31, 2014 7,746,553 15,606,145 6,660,000 30,012.698
Due within one year 373,804 675,270 510,000 1,559,074 Pa~able from Government Act. Pa:z:able from Business Act.
Due in more than one year $ 7,372,749 14,930,875 6.150,000 28.453,624 Princieal Interest Princieal Interest
2015 $ 2,226,197 1,378,183 373,803 312,384
2016 2,398,386 1,303,799 391,614 299,636
2017 2,523,272 1,133,703 406,728 285,965
2018 2,613,230 1,048,662 421,770 271,445
2019 2,618,656 956,163 441,344 255,795
2020-2024 13,167,419 3,463,542 2,477,581 1,003,164
2025-2029 9,082,699 1,328,374 2,727,301 437,425
2030-2033 1,278,588 93,725 506,412 51,562
$ 35,908,447 10,706,151 7,746,553 2,917,376
December 3 I, 20 I 4 December 31,2014
Advance Refunding- the City's refunding issues that have underlying refunded debt outstanding at December
31, 2014, consisted of the following: Future principal payments on the Waterworks revolving loans are scheduled as follows:
Defeased Debt 2015 $ 310,720

Refunding Final Balance 2016 323,082
~ Description of Issues Refunded Maturing 12/31/14 2017 335,938
2018 349,31 I
2012 Internal improvements, 2004 2024 $ 3,230,000
2013 Internal improvements, 2006-A 2026 4,930,000 2019 286,769
2020-2024 673,656
KDOT Revolving Loan- During 2006, the City received a $1,070,150 revolving loan from the Kansas 2025-2029 724,579
Department of Transportation (KDOT) to provide funding for certain street improvements. Terms of the loan $ 3,004,055
agreement require the loan to be repaid as a general obligation of the City over a I 0-year term. The loan is
payable in semi-annual installments with an annual interest rate of3.83%. Sewer Fund Revolving Loans- Consists of three loans with KDHE to provide funding for City
wastewater treatment improvements. Terms of the individual loans are as follows:
Future principal payments on these loans are scheduled as follows:
2015 102,440 Inception Rate Term Balance
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2016 106,364
2017 2002 3.03% 20 years $ 522,701
71,419
2008 2.85% 20 years 5,635,240
$ 280,223
2014 2.83% 20 years 6,444,148
$ 12,602,089
Revenue Bonds- All outstanding revenue bonds in the Waterworks fund, which are secured by revenues
derived from operations, were retired during the year ended December 3 I, 2014. Future principal payments on these loans are scheduled as follows:
Water Fund Revolving Loans- Consists of four loans with the Kansas Department of Health and 2015 $ 364,550
Environment (KDHE) to provide funding for City waterworks improvements. 2016 376,037
2017 385,998
Terms of the individual loans are as follows: 2018 397,191
2019 408,709
2020-2024 2,075,905
Inception Rate Term Balance
2025-2029 2,149,551
1999 4.17% 20 years $ 621,479
Total for amortizing loans from prior years 6,157,941
2002 4.17% 20 years 500,581
Add 2014 borrowings for construction in
2009 3.37% 20 years 1,398,535
progress (maximum $24,420,000) 6,444,148
2009 3.75% 20 years 483,460
$ 12,602,089
$ 3,004,055
2014 Sewer Revolving Loan - The City signed a loan agreement with the Kansas Department of Health &
Environment on November I, 2013, to provide a revolving loan for wastewater treatment plant
improvements. The maximum borrowing authority under the terms of the agreement loan is $24,420,000. If
the entire amount of the loan is borrowed during construction, the loan agreement calls for semi-annual
payments of$803,680 beginning September I, 2015, and ending March I, 2035. At December 31,2014,
$6,444,148 had been drawn from the available loan proceeds
December 3 l, 20 l 4 December 3 l, 2014
Debt service requirements to maturity for NPBC bonds are as follows:

Golf Course Capital Lease- During 2005, the City entered into an agreement with the Newton Public
Building Commission (NPBC) to provide funding for the Sand Creek Station Golf Course which was Princil!al Interest Total
completed during 2006. Under the agreement, the City will make lease payments equal to the NPBC debt
2015 $ 640,000 244,680 884,680
incurred to acquire, improve and equip the course. An equal amount was recorded on the NPBC's financial
statements when the course assets were transferred to the city, and recorded in the golf course fund. The 2016 725,000 217,335 942,335
required minimum lease payments, based on the NPBC's debt requirements, are as follows: 2017 710,000 186,920 896,920
2018 790,000 161,260 951,260
2015 674,020 2019 815,000 141,080 956,080
2016 722,670 2020-2024 4,280,000 373,059 4,653,059
2017 673,795 2025 615,000 7,380 622,380
2018 720,220 1,331,714
$ 8,575,000 9,906,714
2019 722,670
2020-2024 3,387,150
Advance Refunding- During 2012, the NPBC issued refunding revenue bonds, series 2012 (new debt), in the
2025 622,380
principal amount of $5,9 l 5,000. Proceeds from the issue were deposited to an irrevocable escrow account
Total 7,522,905 with a third party trustee to effect in substance defeasance of $5, 175,000 in existing series 2005 and 2005-B
(862,905) revenue bonds (old debt). At December 31, 2014, the NPBC's refunded debt consisted of$4,745000 for the
IV-31
Less amount representing interest

Remaining principal $6,660,000 2005 issue, which is scheduled to be called with proceeds from escrow on March I, 2015.
Compensated Absences - Consist of unused vacation time that has accrued to employees at year-end. Sick
5. DEFINED BENEFIT PENSION PLANS
leave benefits are not paid to employees upon termination and have not been recorded as a liability in these
financial statements.
Plan Description- The City participates in the Kansas Public Employees Retirement System (KPERS) and
the Kansas Police and Firemen's Retirement System (KP&F). Both are cost-sharing multiple-employer
The liability for accrued vacation for governmental activities is liquidated though governmental funds that
defined benefit pension plans as provided by K.S.A. 74-4901, et seq. KPERS and KP&F provide
have expenditures for personnel- the general and airport funds.
retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes
and amends benefit provisions. KPERS and KP&F issue a publicly available financial report that includes
Component Unit - Newton Public Building Commission (NPBC)
financial statements and required supplementary information. Those reports may be obtained by writing
During 2004 and 2005, the NPBC issued a total of $10,345,000 in Revenue Bonds to finance athletic field
to KPERS (611 S. Kansas, Topeka, KS 66603-3803) or by calling 1-888-275-5737.
improvements and to construct the Sand Creek Station Golf Course. At December 3 I, 20 I 4, the
outstanding NPBC revenue bonds consisted of the following:
Funding Policy- K.S.A. 74- I 9 l 9 establishes the KPERS member-employee contribution rate at 5%-6% of
covered salary. K.S.A. 74-4975 establishes the KP&F member-employee contribution rate at 7.15% of
Interest Outstanding Original covered salary. The employer collects and remits member-employee contributions according to the
Rates 12/31/14 Amount provisions of Section 414(h) of the Internal Revenue Code. State law provides that the employer
Series2004 4.36% $ 1,915,000 2,685,000 contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS
Series2005 3.00-5.00% 1,145,000 6,685,000 and KP&F are funded on an actuarial reserve basis. State law sets a limitation on annual increase in the
2012 Refunding 2.00-2.40% 5,515,000 5,915,000 employer contribution rates. The KPERS employer rate at December 31,2014 was 8.84%. The City's
employer contributions to KPERS for the years ending December 31,2014,2013 and 2012 were $525,052
Principal balance 8,575,000
$503,841, and $445,030 respectively, equal to the required contributions for each year. The KP&F
Add balance of bond issue premium 158,350
uniform employer rate established for fiscal year 2014 was 19.92%. Employers participating in KP&F
$ 8,733,350 also make contributions to amortize the liability for past service costs, if any, which is determined
separately for each participating employer. The City's contributions to KP&F for the years ending
December 31,2014,2013, and 2012 were $996,198,$838,407, and $772,158 respectively, equal to the
required contributions for each year.
December 31,2014 December 31,2014
5. DEFINED BENEFIT PENSION PLANS (Continued) 8. INTERFUND RECEIVABLE/PAY ABLE
Other Pension Plans - In addition to participating in Kansas Public Employees Retirement System, the lnterfund receivables and payables are recorded to eliminate negative cash balances in capital project and
City maintains an additional pension plan- Policemen's and Firemen's Pension. The plan, which is of the other funds prior to the issuance of permanent long-term financing. At December 31, 2014, the interfund
single-employer defined benefit variety, was established in 1947 to provide benefits for policemen and balances consisted ofthe following:
firemen (and surviving spouses) who retired prior to the City's participation in KP&F. Pension benefits
paid during the year ended December 31,2014, were $4,774. The plan will be phased out upon the deaths General Fund $ 4,367,508
of the few remaining participants. During 1996, an actuarial computation was performed to determine the Nonmajor Governmental:
amount necessary to fund the pension benefit obligation of the plan. This amount, $140,000, was Capital Improvement Fund 141,160
transferred to a pension trust fund from the general fund to pay future benefits.
Municipal Equipment Fund 324,623
Sewer Enterprise Fund 2,008,002
6. DEFERRED COMPENSATION PLAN Street Capital Projects 4,701,059
Sanitation Fund 132,687
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. The plan, available to all City employees, permits them to defer a portion of their Nonmajor Governmental:
salary until future years. The deferred compensation is not available to employees until termination, Water Dept. Improvements 326,770
retirement, death, or unforeseeable emergency. Assets of the plan, valued at current market prices, are Sewer Dept. Improvements 477,322
held in trust for the benefit of the participants. Airport Improvements 244,729
Newton Rec Center Improvements 663,981
IV-32
All amounts of compensation deferred under the plan as well as earnings attributable to those amounts, are Other Building Projects 294,745
solely the property of the participant employees. Accordingly, the assets and related liabilities for the plan are
$ 6,841,293 ~293
not recorded in the accompanying financial statements.
7. INTERFUND TRANSFERS 9. DEFICIT FUND BALANCES
Interfund transfers reflect the flow of resources from one fund to another fund, generally from the fund in The following governmental and enterprise funds had a deficit fund balance at December 31, 2014:
which resources are received to the fund where resources will be expended. The City uses transfers from Deficit
business activities to provide support for general government, and to provide funding from government Balance
Fund
activities for specific capital needs. During the year ended December 31, 20 I4, interfund transfers totaled
$4,660,850. Transfers for the year were as follows: Street Capital Projects $ 5,863,953
Water Dept. Improvements 326,770
Transfer From Sewer Dept. Improvements 477,322
Nonmajor Airport Capital Projects 244,729
General Government Waterworks Sewer Sanitation Total Newton Rec Center Improvements 663,981
Transfer To Other Building Projects 294,745
General $ 672,239 659,857 866,545 152,428 2,351,069
Debt Service 1,117,185 293,186 98,339 537,196 2,045,906 The deficit balance in capital project funds will be eliminated upon the issuance of bonds in succeeding years.
Nonmajor Government 50,000 35,317 36,738 18,200 140,255
Internal service-stores 46,648 46,648 23,324 116,620
Sewer Enterprise 7,000 7,000
$1,167,185 1,007,742 841,582 1,468,589 175,752 4,660,850
December 31,2014 December 31, 20 14
I 0. COMMUNITY DEVELOPMENT FUND 12. RISK MANAGEMENT AND CLAIMS (Continued)
Restricted Assets - Restricted assets consist of cash and investments of $241 ,889 restricted for the Employee Health Care Benefits
Community Development Rehabilitation Loan program.
During the year ended December 31, 2014, employees of the City were covered by the City of Newton
Rehabilitation Loan Program - In 1984, the City of Newton received a Community Development Block Medical Benefits Plan (the Plan). Under the Plan, the City retains a significant portion of the risk of loss
Grant from the Department of Housing and Urban Development (HUD) for the purpose of establishing a for employee health benefits. Claims are paid by a third-party administrator acting on behalf of the City.
low-income housing rehabilitation loan program. The administrative contract between the City and the third-party administrator is renewable annually.
Administrative fees and stop-loss premiums are included in the contractual provisions.
Idle program funds remain in an interest-bearing account. When loans are repaid, the proceeds may be
used for additional loans; other community development projects, or remain in the fund. The City is protected against catastrophic loss by stop-loss coverage carried through a commercial
insurance carrier. Stop-loss coverage is in effect for individual claims exceeding $50,000 and for
Rehabilitation and development loans outstanding at December 31, 2014, were $331 ,221. No interest is aggregate loss, which is based on a factor determined monthly by the insurer.
being charged on the outstanding loans.
The risk management activities under the Plan are recorded in the Health Benefit Risk Management Fund.
Using the actuarial method, the City charges the cost of estimated benefits to funds in relation to personal
II. COMMITMENTS AND CONTINGENCIES services expenditures. An estimated liability is recorded for claims against the Plan that have been
incurred but not yet reported at year end. The following represents the changes in the liability for
Litigation - The City is a defendant in various lawsuits. Although the outcomes of these lawsuits are not unreported claims under the plan for 2014 and 2013:
presently determinable, in the opinion ofthe City Attorney, the resolution of these matters will not have a
IV-33
material adverse effect on the City's financial statements.

2014 2013
Federal Grants - In the normal course of operations, the City receives grant funds from various Federal
and State agencies. The grant programs are subject to audit by agents of the granting authority, the Liability balance, beginning $ 8,700 55,000
purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability Health benefit claims incurred 1,877,769 1,735,893
for reimbursement that may arise as the result of these audits is not believed to be material. Add premiums and fees 734,777 690,755
Total costs incurred 2,621,246 2,481,648
Less claims paid (1,862,569) (I' 795, 712)
12. RISK MANAGEMENT AND CLAIMS
Less Premiums and fees paid (734,777) (677,236)
Property. Liability and Employee Life Insurance Liability balance, ending $ 23,900 8,700
Losses under these programs are covered by commercial insurance policies, subject to deductibles in some
cases. There have been no significant reductions in insurance coverage for these programs and settlement 13. COMPLIANCE WITH KANSAS STATUTES AND OTHER FINANCE-RELATED LEGAL AND
amounts have not exceeded insurance coverage for the current year or the three prior years. CONTRACTUAL PROVISIONS
Workers' Compensation Coverage Cash Basis Violations- The City was not in compliance with K.S.A. 10-1113 which requires all funds to
maintain unencumbered cash balances of zero or above, in the following funds:
The City is a member of the Kansas Municipal Insurance Trust Workers' Compensation Pool (the Pool)
for purposes of workers' compensation coverage. This program is similar to commercial insurance Fund Amount
coverage because the Pool is liable for all claims. The City contributes to the Pool at the beginning of Meridian Convention Center $ (13,119)
each coverage period based on experience and payroll factors. The City records a liability for estimated Sanitation (158,755)
additional contributions that may be incurred because of adjustments made by the Pool. The cost of this
workers' compensation coverage is charged to City funds based on payroll expenditures.
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
14. CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-
sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in
the public interest. The bonds are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor
any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the
bonds are not reported as liabilities in the accompanying financial statements. At December 31, 2014,
eight City-issued Industrial Revenue bond issues were outstanding with a total balance of $10,953,373.
15. JOINT VENTURE -PUBLIC WHOLESALE WATER SUPPLY DISTRICT NO. 17
Description of the Entity
During 1997, the City ofNewton entered into an agreement with the cities of Halstead, North Newton and
Sedgwick to form the Public Wholesale Water Supply District No. 17 (the District). The purpose of the
District is to secure an additional water supply for sale to member cities and other potential customers.
The City of Newton has contributed $40,000 in capital to the District in exchange for a 40% share in
equity. Because of the nature of the operations of the District, this investment has been recorded within
the City's Waterworks enterprise fund.
Separate financial statements for the District can be obtained from the District's office located at the City
ofNewton administration building (201 East Sixth, Newton, Kansas 67114-0426).
Commitments and Contingencies
During 200 I , the District completed construction of the water distribution system and began selling water
to member cities. In order to purchase water rights and construct the water distribution system, the
District obtained a low interest loan through the Kansas Rural Water Finance authority. The balance of
this loan was $1,391,490 at December 31, 2014. In the event that the District terminates or otherwise fails
to meet debt service requirements on this loan, the member cities are required to tender their share of the
deficiency based on percentages specified in the organization agreement.
16. SUBSEQUENT EVENTS
Date of Management Review
Management has performed an analysis of the activities and transactions subsequent to December 31,
2014, to determine the need for any adjustments to and/or disclosures within the audited financial
statements. Management has performed their analysis through July 27, 2015, which is the date at which
the financial statements were available to be issued.
IV-34
Post Sale
$1,130,000
Sources & Uses

Dated 11/10/2015 | Delivered 11/10/2015
Sources Of Funds
$1,130,000.00
Reoffering Premium......................................................................................................................................................................................
15,765.45
Total Sources...........................................................................................................................................................................................
$1,145,765.45
Uses Of Funds
Deposit to Improvement Fund 2015-B ....................................................................................................................................................................
$1,112,613.00
Deposit to Costs of Issuance 2015-B Account .........................................................................................................................................................................
24,200.00
Total Underwriter's Discount (0.692%)..................................................................................................................................................................
7,816.81
Deposit to Debt Service Account 2015-B (rounding amount) ...................................................................................................................................................
1,135.64
Total Uses..............................................................................................................................................................................................
$1,145,765.45

TABLE OF CONTENTS
PAYMENT SCHEDULE
Debt Service Schedule
Debt Service Schedule - Accrual Basis
Bond Balance Report
FISCAL
Winning Bid
Pricing Summary
Tabulation of Bond Bids
Sources and Uses
Credit Rating Letter
Standard & Poor's Letter and Rating Report
Preliminary Official Statement
Final Official Statement
Recommendations
Certificate as to Taxes and Taxable Property
Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax: 651-223-3002
Email: advisors@springsted.com
www.springsted.com
$1,155,000(a)
(BOOK ENTRY ONLY)
AWARD: UMB BANK, N.A.

And Associate
SALE: October 13, 2015

Standard & Poor's Rating: AA-
Interest Net Interest True Interest

Bidder Rates Price Cost Rate
UMB BANK, N.A. 2.00% 2017-2018 $1,163,200.50(b) $195,324.50(b) 2.5775%(b)

First Bank of Newton 2.25% 2019-2020
2.50% 2021-2022
2.75% 2023
2.85% 2024
3.00% 2025
3.10% 2026
FIRST BANKERS’ BANC SECURITIES INC. 2.00% 2017-2020 $1,153,542.70 $197,891.88 2.6236%
2.20% 2021
2.40% 2022
2.60% 2023
2.80% 2024
3.00% 2025
3.10% 2026
(a) Subsequent to bid opening, the issue size decreased from $1,155,000 to $1,130,000.
(b) Subsequent to bid opening, the price, net interest cost, and true interest rate have changed to $1,137,948.64, $191,492.11, and
2.5786%, respectively.
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
ROBERT W. BAIRD & COMPANY, 3.00% 2017-2025 $1,180,403.65 $201,962.72 2.6490%

INCORPORATED 3.15% 2026
C.L. KING & ASSOCIATES
ROSS, SINCLAIRE & ASSOCIATES, LLC
VINING-SPARKS IBG,
LIMITED PARTNERSHIP
EDWARD D. JONES & COMPANY
WNJ CAPITAL
DUNCAN-WILLIAMS, INC.
LOOP CAPITAL MARKETS, LLC
SAMCO CAPITAL MARKETS, INC.
CREWS & ASSOCIATES
DAVENPORT & COMPANY LLC
NORTHLAND SECURITIES, INC.
SUMRIDGE PARTNERS
R. SEELAUS & COMPANY, INC.
OPPENHEIMER & CO. INC.
SIERRA PACIFIC SECURITIES
ALAMO CAPITAL
CENTRAL STATES CAPITAL MARKETS
FIRST SOUTHWEST CO.
COUNTRY CLUB BANK
COMMERCE BANK, N.A.
RAYMOND JAMES & ASSOCIATES, INC. 0.90% 2017 $1,146,395.00 $206,693.48 2.7437%
1.20% 2018
1.70% 2019
1.90% 2020
2.20% 2021
2.45% 2022
2.80% 2023
2.95% 2024
3.10% 2025
3.30% 2026
SUNTRUST ROBINSON HUMPHREY, INC. 3.00% 2017-2024 $1,165,946.50 $222,997.69 2.9453%

STIFEL, NICOLAUS & COMPANY, 3.25% 2025
INCORPORATED 3.40% 2026
BANK OF OKLAHOMA
------------------------------------------------------------------------------------------------------------------------------------------------------------------
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
2.00% 2017 1.00%

2.00% 2018 1.30%
2.25% 2019 1.55%
2.25% 2020 1.80%
2.50% 2021 2.00%
2.50% 2022 2.30%
2.75% 2023 2.55%
2.85% 2024 2.75%
3.00% 2025 Par
3.10% 2026 Par
BBI: 3.68%
Average Maturity: 6.501 Years
,
UMB Bank N.A. - Kansas City , MO's Bid

$1,155,000 $1,130,000
For the aggregate principal amount of $1,155,000.00 $1,130,000.00, we will pay you $1,163,200.50
$1,137,948.64, plus accrued interest from the date of issue to the date of delivery. The Bonds are to bear
interest at the following rate(s):
Maturity Date Amount $ Amount $ Coupon % Yield % Dollar Price Bond Insurance
09/01/2017 105M 100M 2.0000 1.0000 101.787
09/01/2018 105M 105M 2.0000 1.3000 101.923
09/01/2019 110M 105M 2.2500 1.5500 102.577
09/01/2020 110M 110M 2.2500 1.8000 102.062
09/01/2021 115M 110M 2.5000 2.0000 102.727
09/01/2022 115M 115M 2.5000 2.3000 101.252
09/01/2023 120M 115M 2.7500 2.5500 101.405
09/01/2024 120M 120M 2.8500 2.7500 100.775
09/01/2025 125M 125M 3.0000 3.0000 100.000
09/01/2026 130M 125M 3.1000 3.1000 100.000
Total Interest Cost: $203,525.00 $199,440.75

Premium: $8,200.50 $7,948.64
Net Interest Cost: $195,324.50 $191,492.11
TIC: 2.577524 2.5786988
Total Insurance Premium: $0.00

Time Last Bid Received On: 10/13/2015 9:58:31 CDST
This proposal is made subject to all of the terms and conditions of the Official Bid Form, the Official Notice
of Sale, and the Preliminary Official Statement, all of which are made a part hereof.
Bidder: UMB Bank N.A., Kansas City , MO

Contact: Kristin Koziol
Title: VP
Telephone:816-860-7223
Fax: 816-843-4325
Issuer Name: City of Newton Company Name: UMB Bank N.A.
Accepted By: ___________________________ Accepted By: ___________________________
Date: October 13, 2015 Date: October 13, 2015

2015B

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Post Sale

Bond Balance Report

Date Principal Coupon Interest Total P+I Bond Balance

2015-B Tax GO Bonds - PS | SINGLE PURPOSE | 10/13/2015 | 11:03 AM

December 11, 2015

RE: $1,130,000 Taxable General Obligation Bonds, Series 2015-B

Dear Mr. Asmani:

Jan Morin, CIPMA

1. Walmart Retail Store 2,146,653

Valuation Year/Collection Year

Harvey County 28.771 31.316 31.449 35.586 36.238

Levy/Collect Levy/Collect Levy/Collect Levy/Collect Levy/Collect

Total Collected Levy

* Collections are as of 1-20-15.

Debt Service Schedule -- Accrual Basis

Calendar Principal Coupon Interest Total P+I

Bond Year Dollars.......................................................................................................................................................................................

Net Interest Cost (NIC).................................................................................................................................................................................

IRS Form 8038

2015-B Tax GO Bonds - PS | SINGLE PURPOSE | 10/13/2015 | 11:03 AM

Debt Service Schedule

Date Principal Coupon Interest Total P+I

Bond Year Dollars.......................................................................................................................................................................................

Net Interest Cost (NIC).................................................................................................................................................................................

IRS Form 8038

2015-B Tax GO Bonds - PS | SINGLE PURPOSE | 10/13/2015 | 11:03 AM

City of Newton, Kansas

(Book Entry Only)

Further information may be obtained from SPRINGSTED Incorporated,

* Preliminary; subject to change.

$5,125,000* General Obligation Bonds, Series 2015-A

2017 $205,000 2022 $225,000 2027 $250,000 2032 $290,000

$1,155,000* Taxable General Obligation Bonds, Series 2015-B

2017 $105,000 2020 $110,000 2023 $120,000 2025 $125,000

* Preliminary; subject to change.

ASSISTANT CITY MANAGER OF BUDGET AND FINANCE

ASSISTANT FINANCE DIRECTOR

Notice of Bond Sale ........................................................................................................................... i-vii

Proposed Forms of Bond Counsel Opinions ........................................................................... Appendix I

CITY OF NEWTON, KANSAS

(GENERAL OBLIGATION BONDS PAYABLE

OCTOBER 13, 2015

Terms of the Bonds.

* Preliminary; subject to change.

Redemption of Bonds Prior to Maturity.

Equalized Assessed Valuation of

DATED: September 23, 2015.

CITY OF NEWTON, KANSAS

Written Bid and Good Faith Deposit Delivery Address:

Municipal Advisor - Facsimile Bid Delivery Address:

CITY OF NEWTON, KANSAS

(GENERAL OBLIGATION BONDS PAYABLE FROM UNLIMITED AD VALOREM TAXES)

(BOOK ENTRY ONLY)

* Preliminary; subject to change.

2014 210 07/30/2015

Method and Place of Payment of the Bonds

Payments Due on Saturdays, Sundays and Holidays

Mutilated, Lost, Stolen or Destroyed Bonds

Selection of Bonds for Redemption

Registration and Transfer

AUTHORITY AND PURPOSE

The Series 2015-A Bonds

The composition of the Series 2015-A Bonds is estimated to be as follows:

Total Sources of Funds $5,310,436