Kansas City, Kansas

AMENDMENT DATED MARCH 12, 2009 TO ADDENDUM DATED MARCH 10, 2009 TO OFFICIAL STATEMENT DATED FEBRUARY 19, 2009 NEW ISSUE Standard & Poor's Rating: SP-...
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AMENDMENT DATED MARCH 12, 2009 TO ADDENDUM DATED MARCH 10, 2009 TO OFFICIAL STATEMENT DATED FEBRUARY 19, 2009 NEW ISSUE

Standard & Poor's Rating: SP-1+

$70,190,000*

Unified Government of Wyandotte County/ Kansas City, Kansas Municipal Temporary Notes, Series 2009-IV (General Obligations Payable From Unlimited Ad Valorem Taxes) (Book Entry Only)

The Notes of this Issue shall mature March 1, 2010 and bear interest at an annual rate of 1.00%. CUSIP 982671 SS 9. These Notes are being reoffered at 0.902%. *

Reflects final principal amount.

Banc of America Securities LLC has agreed to purchase the Notes from the Unified Government for an aggregate price of $70,220,181.70, plus accrued interest to the date of delivery. It is expected that the Notes will be available for delivery on or about March 31, 2009. THIS ADDENDUM IS INCORPORATED BY REFERENCE AS OF THE DATE HEREOF INTO THE OFFICIAL STATEMENT OF THE UNIFIED GOVERNMENT DATED FEBRUARY 19, 2009, WITH RESPECT TO THE NOTES. TAKEN IN CONJUNCTION WITH SAID OFFICIAL STATEMENT, THIS ADDENDUM SHALL CONSTITUTE A “FINAL OFFICIAL STATEMENT” OF THE UNIFIED GOVERNMENT WITH RESPECT TO THE NOTES AS THAT TERM IS DEFINED IN RULE 15C2-12 OF THE SECURITIES AND EXCHANGE COMMISSION.

OFFICIAL STATEMENT DATED FEBRUARY 19, 2009 Ratings: Requested from Standard & Poor’s Ratings Services

NEW ISSUES

In the opinion of Gilmore & Bell, P.C. Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Revenue Code of 1986, as amended (the “Code”), the interest on the Notes (including any original issue discount properly allocated to an owner thereof) is excludable from gross income for federal income tax purposes, except as described herein and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. The interest on the Notes is excluded from computation of Kansas adjusted gross income. The Notes have not been designated as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. See “TAX MATTERS” herein.

Unified Government of Wyandotte County/Kansas City, Kansas $7,080,000*

$73,280,000*

Municipal Temporary Notes, Series 2009-III

Municipal Temporary Notes, Series 2009-IV

(the “Series 2009-III Notes”)

(the “Series 2009-IV Notes”)

$300,000* Municipal Temporary Notes, Series 2009-V (the “Series 2009-V Notes”)

(General Obligations Payable from Unlimited Ad Valorem Taxes) (collectively referred to as the “Notes”, the “Obligations” or the “Issues”) (Book Entry Only) Dated Date: March 15, 2009 The Notes will mature on March 1, 2010. Interest on the Notes is payable at maturity or earlier redemption. The Unified Government may elect on October 1, 2009, and on any day thereafter, to prepay all or a portion of the Notes at a price of par plus accrued interest. The Notes and the interest thereon will constitute general obligations of the Unified Government. SERIES 2009-III NOTES,” “THE SERIES 2009-IV NOTES,” and “THE SERIES 2009-V NOTES” herein.

See “THE

Bids will be received on the Notes bearing such rate of interest as may be specified by the Bidders subject to the following conditions. The same interest rate shall apply to all Notes within a series. No interest rate may exceed a rate equal to the daily yield for 10-year treasury bonds published by The Bond Buyer in New York, New York on the Monday next preceding the day of which the Notes are sold, plus 3%. No bid of less than 99.5% of the principal amount of the Series 2009-III Notes and the Series 2009-IV Notes, and 99.4% of the principal amount of the Series 2009-V Notes plus accrued interest to the date of delivery will be considered. The Notes will be awarded on the basis of True Interest Cost (TIC). A good faith deposit is not required for bids on the Notes. The Unified Government has not designated the Notes as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Notes for each series shall consist of fully registered notes issued in book entry form only, in the denomination of $5,000 or any integral multiple thereof. Notes issued in book-entry form only shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Notes will be made, and individual purchases of Notes will be made in book-entry form only; purchasers will not receive physical certificates representing their interest in Notes purchased. The Treasurer of the Unified Government, Kansas City, Kansas will serve as paying agent for the Notes. The Notes will be available for delivery at DTC on or about March 31, 2009. _________________________ * Preliminary; subject to change.

PROPOSALS RECEIVED: March 5, 2009 (Thursday) until 11:00 A.M., Central Time AWARD: March 5, 2009 (Thursday) at 7:00 P.M., Central Time Further information may be obtained from SPRINGSTED Incorporated, Financial Advisor to the Unified Government, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101-2887 (651) 223-3000.

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 Unified Government from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Notes described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the Unified Government, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Notes, together with any other information required by law, shall constitute a “Final Official Statement” of the Unified Government with respect to the Notes, as that term is defined in Rule 15c2-12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Notes to any underwriter or underwriting syndicate submitting a Bid therefore, the Unified Government 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 Notes are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Notice of Sale. The Unified Government designates the underwriter or the senior managing underwriter of the underwriting syndicate to which the Notes are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering an executed bid form with respect to the Notes agrees thereby that if its bid is accepted by the Unified Government (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Notes for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesperson or other person has been authorized by the Unified Government to give any information or to make any representations with respect to the Notes, other than as contained in the 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 Unified Government. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Unified Government and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR 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 UNIFIED GOVERNMENT SINCE THE 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 Official Statement or the Final Official Statement, they will be furnished on request. Any CUSIP numbers for the Notes included in the Final Official Statement are provided for convenience of the owners and prospective investors. The CUSIP numbers for the Notes have been assigned by an organization unaffiliated with the Unified Government. The Unified Government is not responsible for the selection of the CUSIP numbers and makes no representation as to the accuracy thereof as printed on the Obligations or as set forth in the Final Official Statement. No assurance can be given that the CUSIP numbers for the Notes will remain the same after the date of issuance and delivery of the Notes.

UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS Municipal Office Building, Suite 330 One McDowell Plaza 701 North Seventh Street Kansas City, Kansas 66101-3064 UNIFIED GOVERNMENT OFFICIALS JOE REARDON Mayor/Chief Executive COMMISSION MEMBERS NATHANIEL BARNES First District

MIKE KANE Fifth District

WILLIAM J. (BILL) MILLER Second District

PATRICIA HUGGINS PETTEY Sixth District

ANN BRANDAU-MURGUIA Third District

THOMAS R. COOLEY Seventh District

MARK MITCHELL Fourth District

BENOYD M. (BUTCH) ELLISON Eighth District

MARK HOLLAND First District At-Large

DONALD L. DESEURE Second District At-Large Dennis M. Hays County Administrator Lew Levin Chief Financial Officer Tom G. Roberts Unified Government Clerk Harold T. Walker, Esq. Chief Counsel Charles A. Henry Director of Revenue/Treasury BOND COUNSEL GILMORE & BELL, P.C. Kansas City, Missouri FINANCIAL ADVISOR

SPRINGSTED INCORPORATED St. Paul, Minnesota and Kansas City, Missouri

TABLE OF CONTENTS Page(s) Notice of Sale......................................................................................................................

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Introductory Statement........................................................................................................ Concurrent Financing.......................................................................................................... Continuing Disclosure ......................................................................................................... The Notes ........................................................................................................................... The Series 2009-III Notes ................................................................................................... The Series 2009-IV Notes................................................................................................... The Series 2009-V Notes.................................................................................................... Sources and Uses of Funds................................................................................................ Future Financing ................................................................................................................. Litigation.............................................................................................................................. Tax Matters ......................................................................................................................... Ratings................................................................................................................................ Financial Advisor................................................................................................................. Certification ......................................................................................................................... Unified Government Property Values ................................................................................. Unified Government Indebtedness ..................................................................................... Unified Government Tax Rates, Levies and Collections..................................................... Funds on Hand ................................................................................................................... Investments......................................................................................................................... General Information Concerning the Unified Government .................................................. Governmental Organization and Services .......................................................................... Financial Information...........................................................................................................

1 2 2 2 5 5 6 6 7 7 7 9 9 9 11 12 22 23 23 24 37 39

Proposed Forms of Legal Opinions ........................................................................... Appendix I Kansas Property Valuation and Tax Levies .............................................................. Appendix II Excerpt of 2007 Annual Financial Report ................................................................. Appendix III

NOTICE OF SALE UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS $7,080,000* MUNICIPAL TEMPORARY NOTES SERIES 2009-III $73,280,000* MUNICIPAL TEMPORARY NOTES SERIES 2009-IV $300,000* MUNICIPAL TEMPORARY NOTES SERIES 2009-V (GENERAL OBLIGATIONS PAYABLE FROM UNLIMITED AD VALOREM TAXES) BIDS Written and electronic (as explained below) bids for the purchase of above-referenced notes (the “Notes”) of the Unified Government of Wyandotte County/Kansas City, Kansas (the “Issuer”) herein described will be received on behalf of the Issuer by the Issuer’s Financial Advisor, in the case of written bids, at the address hereinafter set forth, and in the case of electronic bids, via PARITY® until 11:00 a.m., Central Time, on MARCH 5, 2009 (the “Sale Date”). All bids will be publicly evaluated at said time and place and the award of the securities will be acted upon by the governing body at its meeting to be held at 7:00 p.m. on the Sale Date. No oral or auction bids will be considered.

Series 2009-III 2009-IV 2009-V

Principal Amount* $ 7,080,000 $73,280,000 $ 300,000

SUMMARY Taxable/Tax Maturity Exempt Date Tax Exempt 3/1/2010 Tax Exempt 3/1/2010 Tax Exempt 3/1/2010

Minimum Bid 99.50% 99.50% 99.40%

Payable From Taxes Within Kansas City, Kansas Kansas City, Kansas Wyandotte County

THE SERIES 2009-III NOTES Terms of the Series 2009-III Notes. The Series 2009-III Notes shall consist of fully registered notes issued in book entry form only, in the denomination of $5,000 or any integral multiple thereof (the “Authorized Denomination”). The Series 2009-III Notes will be dated March 15, 2009 (the “Dated Date”), and will become due on March 1, 2010. The Series 2009-III Notes will bear interest from the date thereof at rates to be determined when the Series 2009-III Notes are sold as hereinafter provided, which interest will be payable on March 1, 2010 or earlier redemption. Authority, Purpose and Security for the Series 2009-III Notes. The Series 2009-III Notes are being issued pursuant to K.S.A. 10-101 et seq. (specifically including K.S.A. 10-123), K.S.A. 12-631a, *

Preliminary; subject to change.

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K.S.A. 12-631r and 12-631s, K.S.A. 12-685 et seq., Charter Ordinance No. CO-01-08 of the Issuer, Charter Ordinance No. CO-02-08 of the Issuer, Charter Ordinance No. 99 of the Issuer, and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended, and a resolution adopted by the governing body of the Issuer (the “Series 2009-III Note Resolution”) for the purpose of paying a portion of the cost of certain sewer, street, public building, bridge, and other public improvements (the “Series 2009-III Improvements”). The Series 2009-III Notes shall be general obligations of the Issuer payable as to both principal and interest from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas 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 Series 2009-III Notes as the same become due. THE SERIES 2009-IV NOTES Terms of the Series 2009-IV Notes. The Series 2009-IV Notes shall consist of fully registered notes issued in book entry form only, in the Authorized Denomination. The Series 2009-IV Notes will be dated the Dated Date, and will become due on March 1, 2010. The Series 2009-IV Notes will bear interest from the date thereof at rates to be determined when the Series 2009-IV Notes are sold as hereinafter provided, which interest will be payable on March 1, 2010 or earlier redemption. Authority, Purpose and Security for the Series 2009-IV Notes. The Series 2009-IV Notes are being issued pursuant to K.S.A. 10-101 et seq. (specifically including K.S.A. 10-123), K.S.A. 12-614, K.S.A. 12-631a, K.S.A. 12-631r and 12-631s, K.S.A. 12-685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 121770 et seq., K.S.A. 13-10,123, Charter Ordinance No. 99 of the Issuer, and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended, and a resolution adopted by the governing body of the Issuer (the “Series 2009-IV Note Resolution”) for the purpose of paying a portion of the cost of certain sewer, street, water, public building, bridge, and other public improvements (the “Series 2009-IV Improvements”). The Series 2009-IV Notes shall be general obligations of the Issuer payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements, in part from certain tax increments allocated and paid into a separate fund of the Issuer under the provisions of K.S.A. 12-1770 et seq., and in part from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas 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 Series 2009-IV Notes as the same become due. THE SERIES 2009-V NOTES Terms of the Series 2009-V Notes. The Series 2009-V Notes shall consist of fully registered notes issued in book entry form only, in the Authorized Denomination. The Series 2009-V Notes will be dated the Dated Date, and will become due on March 1, 2010. The Series 2009-V Notes will bear interest from the date thereof at rates to be determined when the Series 2009-V Notes are sold as hereinafter provided, which interest will be payable on March 1, 2010 or earlier redemption.

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Authority, Purpose and Security for the Series 2009-V Notes. The Series 2009-V Notes are being issued pursuant to K.S.A. 10-101 et seq. (specifically including K.S.A. 10-123), K.S.A. 19-15,114 et seq., and a resolution adopted by the governing body of the Issuer (the “Series 2009-V Note Resolution”) for the purpose of paying a portion of the cost of certain county building costs (the “Series 2009-V Improvements”). The Series 2009-V Notes shall be general obligations of the Issuer payable as to both principal and interest from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Series 2009-V Notes as the same become due. PROVISIONS APPLICABLE TO ALL THE NOTES Place of Payment. The principal of and interest on the Notes will be payable in lawful money of the United States of America by check or draft of the Treasurer of the Unified Government of Wyandotte County/Kansas City, Kansas (the “Paying Agent” and “Note Registrar”). The principal of and interest on each Note will be payable at maturity or earlier redemption to the owners thereof whose names are on the registration books (the “Note Register”) of the Note Registrar (the “Registered Owner”) upon presentation and surrender at the principal office of the Paying Agent. Such amounts will be payable to the Registered Owner of such Note as of the fifteenth day (whether or not a business day) of the calendar month next preceding each payment date for such Notes (the “Record Date”): (a) mailed by the Paying Agent to the address of such Registered Owner as shown on the Note 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 a payment to Cede & Co. or any Registered Owner of $500,000 or more in aggregate principal amount of such Notes, 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 payment, containing the wire transfer address to which such Registered Owner wishes to have such wire directed. Note Registration. The Notes will be registered pursuant to a plan of registration approved by the Issuer and the Attorney General of the State of Kansas. The Issuer will pay for the fees of the Note Registrar for registration and transfer of the Notes and will also pay for printing a reasonable supply of registered note blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Note Registrar, will be the responsibility of the Registered Owners. Redemption of Notes Prior to Maturity. General. Whenever the Issuer is to select Notes for the purpose of redemption, it will, in the case of Notes in denominations greater than the minimum Authorized Denomination, if less than all of the Notes then outstanding are to be called for redemption, treat each minimum Authorized Denomination of face value of each such fully registered Note as though it were a separate Note in the minimum Authorized Denomination. Optional Redemption. At the option of the Issuer, each series of Notes or portions thereof will be subject to redemption and payment prior to maturity as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time on or after October 1, 2009 at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Notice and Effect of Call for Redemption. Unless waived by any owner of Notes to be redeemed, if the Issuer shall call any Notes for redemption and payment prior to the maturity thereof, the Issuer shall give written notice of its intention to call and pay said Notes to the Note Registrar and the original

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purchaser of the Notes. In addition, the Issuer shall cause the Note Registrar to give written notice of redemption to the registered owners of said Notes. Each of said written notices shall be deposited in United States first class mail not less than 15 days prior to the date fixed for redemption. All notices of redemption shall state the date of redemption, the redemption price, the Notes to be redeemed, the place of surrender of Notes 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. If any Note be called for redemption and payment as aforesaid, all interest on such Note 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. Adjustment of Issue Size. The Issuer reserves the right to increase or decrease the total principal amount of the Notes, in order to properly size the Note issue based on the project costs to be funded from Note proceeds, and depending on the amount of the discount, premium and interest rates bid by the successful bidder. 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 Notes. If there is an increase or decrease in the final aggregate principal amount of the Notes, the Issuer will notify the successful bidder by means of telephone or facsimile transmission, subsequently confirmed in writing, no later than 5:00 p.m., Central Time, on the Sale Date. The actual purchase price for the Notes shall be calculated by applying the percentage of par value bid by the successful bidder against the final aggregate principal amount of the Notes, as adjusted, plus accrued interest from the date of the Notes to the date of delivery. Conditions of Bids. Bids may be submitted for one or more series of the Notes. A separate bid must be submitted for each series of Notes. Proposals will be received on the Notes bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: (a) the same rate shall apply to all Notes of the same series; (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 Notes are sold, plus 3% for the Series 2009-IV Notes and the Series 2009-V Notes; and (c) no supplemental interest payments will be considered. No bid of less than 99.50% of the principal amount of the Series 2009-III Notes and the Series 2009-IV Notes, and 99.40% of the principal amount of the Series 2009-V Notes and accrued interest thereon to the date of delivery will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Notes 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, the average annual net interest rate (expressed as a percentage) and an estimate of 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 the Notes, it will provide the certification as to initial offering prices described under the caption “Certification as to Offering Price” in this Notice. Good Faith Deposit. A good faith deposit is not required for bids on the Notes. Basis of Award. The award of a series of the Notes will be made on the basis of the lowest true interest cost (“TIC”), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Notes, 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 supply an estimate of the TIC for the Notes 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 bidder or the Issuer. If there is any discrepancy between the true interest cost specified and the interest rates specified, the specified interest rates shall govern and the true interest

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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.

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The Issuer reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any disputes arising hereunder shall be governed by the laws of Kansas, and any party submitting a bid agrees to be subject to jurisdiction and venue of the federal and state courts within Kansas with regard to such dispute. Any bid for the Notes received after 11:00 a.m. Central Time on the date of sale will not be considered. Pre-Bid Revisions. The Issuer reserves the right to issue a Supplemental Notice of Sale not later than 48 hours prior to the sale date via the MUNIFACTS News Service. If issued, the Supplemental Notice of Sale may (i) modify the principal amount of one or more series of the Notes, (ii) withdraw one or more series of the Notes from the sale, and/or (iii) modify such other terms of this Notice of Sale as the Issuer determines. Any such modifications will supersede the terms of this Notice of Sale as set forth herein. Submission of Bids. Written bids must be made on forms which may be procured from the Chief Financial Officer or the Financial Advisor and shall be addressed to the undersigned, and marked “Proposal for Municipal Temporary Notes, Series 2009-__” for the Notes. 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 Financial 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 Sale. If provisions of this Notice of Sale conflict with those of PARITY®, this Notice of Sale shall control. Bids for the Notes must be received before 11:00 a.m., Central Time on the Sale Date. The Issuer shall not be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. PARITY®. Information about the electronic bidding services of PARITY® may be obtained from i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Phone No. (800-850-7422) and from the following website: www.newissuehome.i-deal.com. CUSIP Numbers. CUSIP identification numbers neither the failure to print such number on any Note nor cause for failure or refusal by the purchaser thereof to accordance with the terms of this Notice. All expenses CUSIP numbers on the Notes will be paid by the Issuer.

will be assigned and printed on the Notes, but any error with respect thereto shall constitute accept delivery of and pay for the Notes in in relation to the assignment and printing of

Optional Municipal Bond Insurance. The Issuer has not applied for any policy of municipal bond insurance with respect to the Notes, and will not pay the premium in connection with any policy of municipal bond insurance desired by the successful bidder. In the event a bidder desires to purchase and pay all costs associated with the issuance of a policy of municipal bond insurance in connection with the Notes, a commitment from the selected insurer must be attached to such bidder’s Official Bid Form, and shall specify all terms and conditions to which the Issuer will be required to agree in connection with the issuance of such insurance policy. The Issuer specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest net interest cost to the Issuer. Ratings. The outstanding general obligation notes of the Issuer are rated either MIG 1 by Moody’s Investors Service or SP-1+ by Standard & Poor’s Ratings Services. The Issuer has applied for a rating on the Notes herein offered for sale from Standard & Poor’s Ratings Services. Such application and ratings are further described in the Preliminary Official Statement, hereinafter described. Book-Entry-Only System. The Notes 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 Notes. During the term of the Notes, 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 Notes to DTC or its nominee as the - vi -

Registered Owner of the Notes, 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 Notes to is participants who shall be responsible for transmitting payments to beneficial owners of the Notes in accordance with agreements between such participants and the beneficial owners. The Issuer will not be responsible for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In the event that (i) DTC determines not to continue to act as securities depository for the Notes, or (ii) the Issuer determines that continuation of the book-entry-only form of evidence and transfer of ownership of the Notes would adversely affect the interests of the beneficial owners of the Notes, 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 Notes 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 Notes and DTC. Delivery and Payment. The Issuer will pay for printing the Notes and will deliver the Notes properly prepared, executed and registered without cost on or about March 31, 2009, at DTC for the account of the successful bidder. The successful bidder will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Notes and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Notes affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Notes shall be made in federal reserve funds, immediately available for use by the Issuer. The Issuer will deliver one Note per series, registered in the nominee name of DTC. Certification as to Offering Prices. In order to properly size the Notes, the reoffering prices to the public must be furnished to the Issuer by the successful bidder immediately following the opening of the bids. Additionally, to provide the Issuer with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended (the “Code”), the successful bidder will be required to complete, execute and deliver to the Issuer prior to the delivery of the Notes, a certificate regarding the “issue price” of the Notes (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10% or more) of the Notes have been or are expected to be sold to the public. The term “public” excludes bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers. Such certificate shall state that 10% or more of the Notes have been or are expected to be sold to the public at prices no higher than such initial offering prices. However, such certificate may indicate that the successful bidder will not offer the Notes for sale to the public. Preliminary Official Statement and Official Statement. The Issuer has prepared a Preliminary Official Statement dated February 19, 2009, “deemed final” by the Issuer except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which may be obtained from the Clerk or from the Financial Advisor. Upon the sale of the Notes, the Issuer will adopt the final Official Statement and will furnish the successful bidder, without cost, within seven business days of the acceptance of the successful bidder’s proposal, with a sufficient number of copies thereof in order to comply with the requirements of Rule 15c2-12(3) and (4) of the Securities and Exchange Commission and Rule G-32 of the Municipal Securities Rulemaking Board (jointly the “Rules”). Additional copies may be ordered by the successful bidder at its expense. The Issuer’s acceptance of the successful bidder’s proposal for the purchase of the Notes shall constitute a contract between the Issuer and the successful bidder for purposes of the Rules.

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Continuing Disclosure. The Securities and Exchange Commission (the “SEC”) has promulgated amendments to its Rule 15c2-12 (the “Rule”) requiring continuous secondary market disclosure for certain issues. Pursuant to an exception granted in Rule c15c2-12(d)(2), because the Notes mature within 18 months, the Issuer is not required to file the Annual Report with each Repository with respect to the Notes. However, in the documents authorizing the Notes, the Issuer will covenant to provide annually certain financial information and operating data and other information necessary to comply with the Rule, and to transmit the same to any person upon request. For further information, reference is made to the caption “CONTINUING DISCLOSURE” in the Preliminary Official Statement. Assessed Valuation and Indebtedness. The total assessed valuation of the taxable tangible property within the Issuer for the year 2008 is $1,397,308,502.00. The total general obligation bonded indebtedness of the Issuer as of the date of the Notes, including the Notes being issued and the bonds being issued contemporaneously with the Notes (the “Bonds”), but excluding the temporary notes to be retired with the proceeds of the Notes, the Bonds, and other funds of the Issuer, is $291,797,299.29, of which $291,232,299.29 is indebtedness of the Issuer payable only from taxes on taxable tangible property in the City of Kansas City, Kansas, and $565,000.00 is indebtedness of the Issuer payable only from taxes on taxable tangible property within Wyandotte County, Kansas. Legal Opinion. The Notes will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the Issuer, will be printed on the Notes, and will be delivered to the successful bidder when the Notes are delivered. Said opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Notes from gross income for federal income tax purposes and from computation of Kansas adjusted gross income. Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Notes. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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Additional Information. Additional information regarding the Notes may be obtained from the undersigned, or from the Financial Advisor, at the addresses set forth below: DATED: February 5, 2009. UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS By: Lew Levin Chief Financial Officer 701 N. 7th Street Kansas City, Kansas 66101 Phone No. 913-573-5186 Fax No. 913-573-5003 Financial Advisor –Written and Facsimile Bid Delivery Address: Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, Minnesota 55101 Attn: Bond Services Phone No. 651-223-3000 Fax No. 651-223-3046 Email: [email protected]

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OFFICIAL STATEMENT UNIFIED GOVERNMENT OF WYANDOTTE COUNTY/KANSAS CITY, KANSAS $7,080,000* Municipal Temporary Notes, Series 2009-III (the “Series 2009-III Notes”)

$73,280,000* Municipal Temporary Notes, Series 2009-IV (the “Series 2009-IV Notes”)

$300,000* Municipal Temporary Notes, Series 2009-V (the “Series 2009-V Notes”) (General Obligations Payable from Unlimited Ad Valorem Taxes)

INTRODUCTORY STATEMENT This Official Statement provides certain information relating to the Unified Government of Wyandotte County/Kansas City, Kansas (the “Unified Government” or the “Issuer”) and its issuance of $7,080,000* Municipal Temporary Notes, Series 2009-III (the “Series 2009-III Notes”), $73,280,000* Municipal Temporary Notes, Series 2009-IV (the “Series 2009-IV Notes”), and $300,000* Municipal Temporary Notes, Series 2009-V (the “Series 2009-V Notes”), collectively referred to herein as the “Notes”, the “Obligations” or the “Issues.” The Notes are general obligations of the Unified Government for which the Unified Government pledges its full faith and credit and power to levy general ad valorem taxes. See “THE SERIES 2009-III NOTES,” “THE SERIES 2009-IV NOTES,” and “THE SERIES 2009-V NOTES” herein. All financial and other information presented herein has been compiled by the Unified Government’s financial advisor, Springsted Incorporated (the “Financial Advisor”). Such information has been provided by the Unified Government and other sources deemed to be reliable. The presentation of information herein is intended to show recent historic information and is not intended to indicate future or continuing trends in the financial position or other affairs of the Unified Government. Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, has not assisted in the preparation of this Official Statement, except for the sections titled “INTRODUCTORY STATEMENT,” “THE NOTES” (except “THE NOTES – Book Entry System”), “THE SERIES 2009-III NOTES,” “THE SERIES 2009-IV NOTES,” “THE SERIES 200-V NOTES,” and “TAX MATTERS” and, accordingly, expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Additional information regarding the Unified Government, the Notes and the resolutions authorizing the issuance of the Notes (the “Resolutions” or the “Note Resolutions”) may be obtained from Mr. Lew Levin, Chief Financial Officer, Municipal Office Building, Suite 330, One McDowell Plaza, 701 North Seventh Street, Kansas City, Kansas 66101-3064, or by telephoning (913) 573-5270. Information can also be obtained from Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101, or by telephoning (651) 223-3000. If information of a specific legal nature is desired, requests may be directed to Mr. Randy Irey or Ms. Gina Riekhof, Gilmore & Bell P.C., 2405 Grand Boulevard, Suite 1100, Kansas City, Missouri 64108, or by telephoning (816) 221-1000.

*

Preliminary; subject to change.

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CONCURRENT FINANCING By means of a separate Official Statement dated February 19, 2009, the Unified Government is calling for bids for its $22,340,000 General Obligation Improvement Bonds, Series 2009-A (the "Series 2009-A Bonds") and $1,180,000 Taxable General Obligation Improvement Bonds, Series 2009-B (the "Series 2009-B Bonds"). The Series 2009-A Bonds and the Series 2009-B Bonds are collectively referred to as the "Bonds."

CONTINUING DISCLOSURE The Notes are municipal securities with a maturity of less than eighteen (18) months, and the offering of the Notes is exempt from the requirements of paragraph (b)(5) of Rule 15-12 that the annual financial information and audited financial statements of the Unified Government be disclosed. However, information about the Unified Government, including audits and quarterly reports, will be available through the Unified Government on a continuing basis and through its website at www.wycokck.org. In addition, the Unified Government will covenant and agree in the Note Resolutions to provide notices of Material Events to nationally recognized municipal securities information repositories or the Municipal Securities Rulemaking Board and any state information depository. “Material Event” means any of the following events, if material, with respect to the Notes: principal and interest payment delinquencies; non-payment related defaults; unscheduled draws on debt service reserves reflecting financial difficulties; unscheduled draws on credit enhancements reflecting financial difficulties; substitution of credit or liquidity providers, or their failure to perform; adverse tax opinions or events affecting the tax-exempt status of the security; modifications to rights of security holders; bond calls; defeasances; release, substitution, or sale of property securing repayment of the securities; and rating changes. THE NOTES General Description The Notes will be dated March 15, 2009 (the "Dated Date"). The Notes of each series shall consist of fully registered notes issued in book entry form only, in the denomination of $5,000 or any integral multiple thereof. Notes issued in book-entry form only shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Notes will be made, and individual purchases of Notes will be made in book-entry form only; purchasers will not receive certificates representing their interest in Notes purchased. The Notes will mature in the amounts and on the dates shown on the cover of this Official Statement. The Treasurer of the Unified Government will serve as Paying Agent for the Notes. The Notes will bear interest from the Dated Date at rates to be determined when the Notes are sold as hereinafter provided, which interest will be payable at maturity (March 1, 2010) or upon prior redemption. Interest on the Notes will be calculated on the basis of a 360-day year of twelve 30-day months. Optional Redemption At the option of the Issuer, each series of Notes or portions thereof will be subject to redemption and payment prior to maturity as a whole or in part (selection of the amount of Notes to be redeemed to be determined by the Issuer in such equitable manner as it may determine) at any time on or after October 1, 2009 at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. -2-

Book Entry System The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Obligations. The Obligations will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of each series of the Obligations, 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 securities that its 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 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, in turn, is owned by a number of Direct Participants of DTC and members of the 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 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”). 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 and www.dtc.org. Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC’s records. The ownership interest of each actual purchaser of each Obligation (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Obligations are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book-entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations 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 Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Obligations 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. 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

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regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults, and proposed amendments to the Obligations documents. For example, Beneficial Owners of the Obligations may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them. Redemption notices are required to be sent to DTC. If less than all of the Obligations 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 such other DTC nominee) will consent or vote with respect to the Obligations unless authorized by a Direct Participant in accordance with DTC’s procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer or Bond Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payment of principal, interest, and redemption premium, if any, on the Obligations will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and corresponding detail information from the Issuer 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 (nor its nominee), the Bond Registrar, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, interest, and redemption premium, if any, to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Bond Registrar, Issuer, or the Issuer's 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 Obligations purchased or tendered, through its Participant, to Trustee, and shall effect delivery of such Obligations by causing the Direct Participant to transfer the Participant’s interest in the Obligations, on DTC’s records, to Trustee. The requirement for physical delivery of Obligations in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Obligations are transferred by Direct Participants on DTC’s records and followed by a bookentry credit of tendered Obligations to Trustee’s DTC account. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Issuer or its agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The Issuer 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 Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof.

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THE SERIES 2009-III NOTES Authority and Purpose The Series 2009-III Notes are being issued pursuant to the laws of the State of Kansas, including without limitation K.S.A. 10-101 et seq., inclusive, specifically including K.S.A. 10-123, K.S.A. 12-631a, K.S.A. 12-631r and 12-631s, K.S.A. 12-685 et seq., Charter Ordinance No. CO-01-08 of the Unified Government, Charter Ordinance No. CO-02-08 of the Unified Government, Charter Ordinance No. 99 of the Unified Government, and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended, and a resolution adopted by the governing body of the Unified Government for the purpose of paying a portion of the cost of certain sewer, street, public building, bridge, and other public improvements in the Unified Government. Security The Series 2009-III Notes and the interest thereon will constitute general obligations of the Unified Government payable as to both principal and interest from the proceeds of general obligation bonds of the Unified Government, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Unified Government, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas of the Unified Government. The full faith, credit and resources of the Unified Government are irrevocably pledged for the prompt payment of the principal and interest on the Series 2009-III Notes as the same become due.

THE SERIES 2009-IV NOTES Authority and Purpose The Series 2009-IV Notes are being issued pursuant to the laws of the State of Kansas, including without limitation K.S.A. 10-101 et seq., inclusive, specifically including K.S.A. 10-123, K.S.A. 12-614, K.S.A. 12-631a, K.S.A. 12-631r and 12-631s, K.S.A. 12-685 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-1770 et seq., K.S.A. 13-10,123, Charter Ordinance No. 99 of the Unified Government, and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended, and a resolution adopted by the governing body of the Unified Government, for the purpose of paying a portion of the cost of certain sewer, street, water, public building, bridge, and other public improvements in the Unified Government. Security The Series 2009-IV Notes and the interest thereon will constitute general obligations of the Unified Government payable as to both principal and interest, in part from special assessments levied upon the property benefited by the construction of certain improvements, in part from certain tax increments allocated and paid into a separate fund of the Unified Government under the provisions of K.S.A. 12-1770 et seq., and in part from the proceeds of general obligation bonds of the Unified Government, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Unified Government, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas of the Unified Government. The full faith, credit and resources of the Unified Government are irrevocably pledged for the prompt payment of the principal and interest on the Series 2009-IV Notes as the same become due.

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THE SERIES 2009-V NOTES Authority and Purpose The Series 2009-V Notes are being issued pursuant to the laws of the State of Kansas, including without limitation K.S.A. 10-101 eq seq., inclusive, specifically including K.S.A. 10-123, K.S.A. 19-15,114 et seq., all as amended, and a resolution adopted by the governing body of the Unified Government, for the purpose of paying a portion of the cost of certain county building costs in the Unified Government. Security The Series 2009-V Notes and the interest thereon will constitute general obligations of the Unified Government payable as to both principal and interest from the proceeds of general obligation bonds of the Unified Government, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Unified Government. The full faith, credit and resources of the Unified Government are irrevocably pledged for the prompt payment of the principal and interest on the Series 2009-V Notes as the same become due.

SOURCES AND USES OF FUNDS The following tables itemize the sources of funds for each series of the Notes, including the proceeds from the sale of the Notes, available for payment of the project costs, excluding accrued interest. The Series 2009-III Notes Sources of Funds: Principal Amount Allowance for Discount Bidding

$7,080,000.00 (35,400.00)

Total Sources of Funds Uses of Funds: Project Fund Costs of Issuance

$7,044,600.00 $7,020,000.00 24,600.00

Total Uses of Funds

$7,044,600.00

The Series 2009-IV Notes Sources of Funds: Principal Amount Issuer Contributions Allowance for Discount Bidding

$73,280,000.00 72,421.07 (366,400.00)

Total Sources of Funds Uses of Funds: Redemption Fund Deposit Costs of Issuance

$72,986,021.07 $72,875,772.20 110,248.87

Total Uses of Funds

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$72,986,021.07

The Series 2009-V Notes Sources of Funds: Principal Amount Issuer Contributions

$300,000.00 4,085.00

Total Sources of Funds Uses of Funds: Project Fund Costs of Issuance

$304,085.00 $300,000.00 4,085.00

Total Uses of Funds

$304,085.00

FUTURE FINANCING The Unified Government does not expect to issue any additional long-term general obligation debt within the next 90 days, other than the Bonds described in this Official Statement under the section captioned “CONCURRENT FINANCING.”

LITIGATION At the present time, the Unified Government and its related entities are parties in numerous claims or lawsuits arising in the ordinary course of activities. It is the opinion of the Legal Department of the Unified Government that, when finally determined, the outcome of those claims or lawsuits will not likely result, either in the aggregate or individually, in a final judgment against the Unified Government which would materially and adversely affect the financial position of the Unified Government. None of the claims or lawsuits now pending either challenges the Notes or the authority of the Unified Government to issue the Notes or the Unified Government’s pledge of the full faith, credit and resources of the Unified Government for the prompt payment of the principal and interest on the Notes as they become due.

TAX MATTERS Opinion of Bond Counsel Federal Tax Exemption. In the opinion of Bond Counsel, under existing law, the interest on the Notes (including any original issue discount properly allocable to an owner thereof) is excludable from gross income for federal income tax purposes. Interest on the Bonds is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporationsand is not 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 comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code") that must be satisfied subsequent to the issuance of the Notes in order that interest thereon be, or continue to be, excludable from gross income for federal income tax purposes. The Unified Government has covenanted to comply with all such requirements. Failure to

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comply with certain of such requirements may cause the inclusion of interest on the Notes in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. Bank Qualification. The Notes have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code. Original Issue Discount. In the opinion of Bond Counsel, under existing law, the original issue discount in the selling price of each Note purchased in the original offering at a price less than the principal amount thereof, to the extent properly allocable to each owner of such Note, is excludable from gross income for federal income tax purposes with respect to such owner. The original issue discount is the excess of the stated redemption price at maturity of such Note over its initial offering price to the public (excluding underwriters and intermediaries) at which price a substantial amount of such Notes were sold Under Section 1288 of the Code, original issue discount on tax-exempt notes accrues on a compound basis. The amount of original issue discount that accrues to an owner during any accrual period generally equals (i) the issue price of such Note plus the amount of original issue discount accrued in all prior accrual periods, multiplied by (ii) the yield to maturity on such Notes (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period), minus (iii) any interest payable on such Notes during such accrual period. The amount of original issue discount so 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 such Note. Owners of any Notes purchased at an original issue discount should consult with their tax advisors regarding the determination and treatment of original issue discount for federal income tax purposes and the state and local tax consequences of owning such Notes. Original Issue Premium. An amount equal to the excess of the purchase price of a Note over its stated principal amount at maturity constitutes premium on such Note. An owner of a Note must amortize any premium over such Note’s term using constant yield principles, based on the Note’s yield to maturity. As premium is amortized, the owner’s basis in such Note and the amount of tax-exempt interest received will be reduced by the amount of amortizable premium properly allocable to such 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 such Note prior to its maturity. Even though the owner’s basis is reduced, no federal income tax deduction is allowed. Owners of any Notes purchased at a premium, whether at the time of initial issuance or subsequent thereto, should consult their individual tax advisors with respect to the determination and treatment of premium for federal income tax purposes and with respect to state and local tax consequences of owning such Notes. Kansas Tax Exemption. The interest on the Notes is excluded from computation of Kansas adjusted gross income. No Other Opinions. Bond Counsel expresses no opinion regarding other federal, state or local tax consequences arising with respect to the Notes. Other Tax Consequences Prospective purchasers of the Notes should be aware that ownership of the Notes may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with “excess net passive income,” foreign corporations subject to the branch profits tax, life insurance companies, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Notes. Bond Counsel expresses no opinion regarding these tax consequences. Purchasers of Notes should consult their tax

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advisors as to the applicability of these tax consequences and other federal income tax consequences of the purchase, ownership and disposition of the Notes, including the possible application of state, local, foreign and other tax laws.

RATINGS Applications for ratings of the Notes have been made to Standard & Poor's Ratings Services (“S&P”), 55 Water Street, New York, New York. If ratings are assigned, they will reflect only the opinion of S&P. Any explanation of the significance of the ratings may be obtained only from S&P. 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 S&P, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Notes.

FINANCIAL ADVISOR The Unified Government has retained Springsted Incorporated, Public Sector Advisors, of Kansas City, Missouri and St. Paul, Minnesota, as financial advisor (the “Financial Advisor”) in connection with the issuance of the Notes. In assisting in the preparation of the Official Statement, the Financial Advisor has relied upon government officials, and other parties, who have access to relevant data to provide accurate information for the Official Statement. The Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the Unified Government to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. The Financial Advisor will not participate in the underwriting of the Notes.

CERTIFICATION The information provided by the Unified Government in the Official Statement, to the best of our knowledge, does not contain an untrue statement of a material fact or omit a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. As of this date there has been no material adverse change in the financial condition or the financial affairs of the Unified Government since the date of the Official Statement. This Official Statement has been approved by the Board of Commissioners of the Unified Government of Wyandotte County/Kansas City, Kansas. Dated: February 19, 2009 Unified Government of Wyandotte County/Kansas City, Kansas

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/s/ Lew Levin Chief Financial Officer Municipal Office Building, Suite 330 One McDowell Plaza 701 North Seventh Street Kansas City, Kansas 66101-3064 (913) 573-5288

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UNIFIED GOVERNMENT 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 Wyandotte County Appraiser’s office determines annually the assessed valuation that is used as a basis for the mill levy on property located in the Unified Government. The County Appraiser’s determination is based on criteria established by Kansas Statute. The market valuation of every property is 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. See Appendix II for a discussion of property classes and assessment ratios. 2008 Taxable Assessed Value by Class of Property: $1,269,963,704 Total

Percent of Total

Real Estate Personal Property Utilities

$1,069,442,741 140,907,701 59,613,262

84.2% 11.1 4.7

Total

$1,269,963,704

100.0%

Source: The Kansas Sales Ratio Study and the Annual Abstract of Taxes published by the County Clerk’s office of Wyandotte County, Kansas.

Total Assessed Valuations Wyandotte County Year

Real Property

2008 $1,069,442,741 2007 1,026,694,090 2006 908,899,542 2005 832,146,776 2004 764,230,086

Personal Property

State Assessed Utilities

Special Motor Vehicles

$140,997,701* 167,633,466* 200,572,898 200,109,081 197,539,455

$59,613,262 60,003,173 60,672,383 62,065,428 64,463,803

$124,956,114 125,722,568 124,397,845 121,913,517 119,231,515

Total $1,395,009,818 1,380,053,297 1,294,542,668 1,216,234,802 1,145,464,859

City of Kansas City, Kansas Year 2008 2007 2006 2005 2004 *

Real Property

Personal Property

State Assessed Utilities

Special Motor Vehicles

$957,720,772 921,052,950 810,615,698 745,805,852 687,754,351

$132,804,602* 158,719,094*

$52,440,398 52,262,532 52,825,802 53,790,474 56,373,064

$113,258,701 114,204,294 113,020,579 110,734,325 108,398,695

189,489,727 189,825,606 187,456,243

Total $1,256,224,473 1,246,238,870 1,165,951,806 1,100,156,257 1,039,982,353

The decrease in the 2007 and 2008 Personal Property is due to the State of Kansas exempting from taxation new purchases of machinery and equipment, effective July 1, 2006.

Source: Annual Abstract of Taxes, published by the County Clerk’s office of Wyandotte County, Kansas.

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Ten Largest Taxpayers in the Unified Government

Taxpayer

Type of Business

General Motors Legends Shopping Center Nebraska Furniture Mart CertainTeed Corp. Prime Investments LLC Great Wolf Lodge Associate Wholesale Grocery Proctor & Gamble Cabela’s Retail Inc. Owens Corning

Automobile Manufacturing Shopping Center Furniture/Electronics Insulation Manufacturing Industrial/Warehouse Space Hotel Food Distribution Soap Manufacturing Sporting/Outdoors Insulation Products

Total *

2008 Assessed Valuation $ 46,505,564 42,010,704 18,680,588 10,575,480 10,401,524 9,347,805 8,863,451 7,547,144 7,247,252 6,841,690 $168,021,202*

Represents 13.2% of the Unified Government’s 2008 total taxable assessed valuation.

Source: County Clerk’s office of Wyandotte County, Kansas.

UNIFIED GOVERNMENT INDEBTEDNESS Authority to Incur Debt and Statutory Debt Limits The Unified Government is authorized to issue indebtedness as a Kansas city of the first class and as a Kansas county. When issuing general obligation debt under its authority as a city, the property within the Unified Government subject to taxation is limited to the assessed valuation of the area of the Unified Government excluding the unincorporated area of the Unified Government and excluding the unincorporated areas of Bonner Springs, Edwardsville, and Lake Quivira. As a result, only the area within the incorporated boundaries of the City of Kansas City is subject to taxation for debt issued by the Unified Government when acting as a city. The Unified Government is issuing the Notes in its capacity as a city of the first class, and only taxable tangible property within the incorporated boundaries of the city of Kansas City, Kansas, is subject to taxation for the payment of the Notes. The Unified Government’s authority to incur bonded indebtedness is not to exceed 30 percent of the assessed valuation of taxable tangible property in the Unified Government on each August 25. The total assessed valuation of taxable tangible property situated in the Unified Government for the year 2008 for purposes of setting debt limits is $1,395,009,818. The current legal debt limit is $418,502,945. Debt subject to the legal debt limit as of March 15, 2009 totaled $186,454,337, leaving a legal debt margin of $232,048,608. The exceptions to the statutory limitations on bonded indebtedness include bonds that have been refunded by the issuance of refunding bonds (K.S.A. 10-427a), sanitary sewers or storm sewers or drains (K.S.A. 10-309), central business redevelopment districts (K.S.A. 12-1770), judgments (K.S.A. 75-6113), streets outside of cities (K.S.A. 68-729) and for several other specific purposes.

- 12 -

Outstanding Indebtedness The total outstanding general obligation indebtedness of the Unified Government as of December 31, 2008 is shown in the following table: Outstanding General Obligation Debt as of December 31, 2008 Series 2002-A GO Series 2002-B Taxable Series 2004-A GO Series 2004-A Golf Series 2004-B Ref Series 2004-C Tax Series 2005 Refunding Series 2006A GO Series 2006B Tax GO Series 2007-A Refunding Series 2008-A GO Series 2008-B Tax GO Series 2008-C GO Series 2008-D Tax GO

$

Subtotal-Bonds Temp Notes

$

TOTAL - Bonds/Notes

$

Non-Exempt 10,535,000 14,705,000 1,735,000 12,110,426 1,295,000 15,685,000 25,240,084 3,130,000 13,700,095 22,627,745 2,270,000 4,105,161 202,333

10-427a -

127,340,844 59,113,493

$

186,454,337

$

$

10-309 3,920,000 810,000 2,702,162 5,865,536 914,502 1,247,255 2,309,839 1,897,667

$

12-1770 2,445,000 544,380 1,490,596 -

75-6113 435,000 1,092,412 194,807 -

Total $ 16,900,000 435,000 15,515,000 1,735,000 15,905,000 1,295,000 15,685,000 31,650,000 3,130,000 16,300,000 23,875,000 2,270,000 6,415,000 2,100,000

-

$ 19,666,961 38,359,318

$

4,479,976 22,864,488

$

1,722,219 -

$ 153,210,000 120,337,299

-

$ 58,026,279

$

27,344,464

$

1,722,219

$ 273,547,299

-

The following schedule shows the yearly principal and interest requirements for all outstanding general obligation bonds of the Unified Government as of December 31, 2008: Outstanding Principal & Interest Annual Payments as of December 31, 2008 Year

*

Principal

Interest

Total

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

$ 15,660,000 16,020,000 10,435,000 11,340,000 11,320,000 12,850,000 7,530,000 7,780,000 8,045,000 7,505,000 5,315,000 5,610,000 5,825,000 6,060,000 4,990,000 5,215,000 5,455,000 2,760,000 2,880,000 615,000

$ 7,815,360 7,264,844 6,538,219 6,103,219 5,619,336 5,108,391 4,530,009 4,148,039 3,719,664 3,291,689 2,910,676 2,603,051 2,278,289 1,932,989 1,573,326 1,257,770 915,562 551,687 299,025 35,175

$ 23,475,360 23,284,844 16,973,219 17,443,219 16,939,336 17,958,391 12,060,009 11,928,039 11,764,664 10,796,689 8,225,676 8,213,051 8,103,289 7,992,989 6,563,326 6,472,770 6,370,562 3,311,687 3,179,025 650,175

Total

$153,210,000*

$68,496,320

$221,706,320

70.8% of this debt will be retired within ten years.

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Revenue Bonds The Unified Government currently has no outstanding revenue-bonded indebtedness. Revenue-Backed State Loans as of December 31, 2008 The Unified Government has entered into four agreements with the State of Kansas, Department of Health and Environment which resulted in the State loaning money to the Unified Government’s Water Pollution Control Division for the purpose of capital expenditures to improve the Sewer System. The four loans were authorized in the aggregate principal amount of $28,987,802. As of December 31, 2008, loan advances in the amount of $24,186,690 have been received with additional requests pending. The loan agreements include an interest rate of less than 3.2 percent. The following schedule shows the amortization of the Revenue-Backed State Loans as of December 31, 2008 if they are ultimately borrowed in full. Year

Principal

Interest

Total

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

$ 1,353,001 1,396,266 1,440,924 1,487,022 1,534,608 1,583,727 1,634,431 1,686,771 1,722,362 1,643,161 718,578 739,057 760,120 781,787 804,065 826,981

$ 611,670 568,406 523,748 477,649 430,064 380,945 330,241 277,901 223,871 169,047 125,997 105,518 84,454 62,791 40,510 17,594

$ 1,964,671 1,964,672 1,964,672 1,964,671 1,964,672 1,964,672 1,964,672 1,964,672 1,946,233 1,812,208 844,575 844,575 844,574 844,578 844,575 844,575

Total

$20,112,861

$4,430,406

$24,543,267

- 14 -

Capital Leases As of December 31, 2008, the Unified Government had outstanding $21,119,998 principal and interest payments in connection with various lease or lease-purchase agreements. The purposes include radio equipment, police and fire equipment and vehicles, and computer equipment. The terms of the leases vary from 36 to 168 months. As of December 31, 2008, the largest dollar amounts outstanding were $3,851,147 for the ERP and Document Management System, $636,874 for new ambulances maturing in 2010, $774,592 for an emergency warning system maturing in 2014, and $568,496 for a disaster recovery office consolidation. Annual Lease Payments as of December 31, 2008 Equipment Leases Principal & Interest

Year 2009 Thereafter

$ 4,816,417 16,303,581

Total

$21,119,998

Special Obligation Revenue Bonds The Unified Government issued four series of special obligation revenue bonds: three projects in connection with the Kansas International Speedway Corporation Project and one in connection with the Redevelopment Project Area B, adjacent to the Speedway. The first Speedway Project obligation is the Taxable Special Obligation Revenue Bonds, Series 1999, payable from certain payments in amounts equal to the debt service on the bonds to be made by Kansas International Speedway Corporation (“Corporation”) under a Financing Agreement with the Unified Government. The obligation of the Corporation to make the debt service payments is secured by a mortgage on the project site. In addition, the Unified Government has provided an annual appropriation commitment from local sales taxes to pay the bonds. The second Speedway Project obligation is the Sales Tax Special Obligation Revenue Bonds, Series 1999, payable from the state and local sales tax to be generated within the redevelopment district generated by the speedway project. In addition, the Unified Government has provided an annual appropriation from local sales taxes to pay the bonds. The Redevelopment Project obligation is the Special Obligation Revenue Bonds, Series 2001, the proceeds of which funded the acquisition of the infrastructure improvements to an approximately 400-acre tract of land constituting the Prairie-Delaware Redevelopment Project Area B, adjacent to the Speedway Project. The Bonds are payable from: first, appropriated sales tax revenues of the Unified Government; and second, available funds permitted under the terms of the Bond Indenture for senior lien bonds issued in association with this Redevelopment Project. The sales tax revenues are subject to annual appropriation of the Unified Government. The third Speedway Project obligation is the Taxable Subordinate Sales Tax Special Obligation Revenue Bonds (Kansas Speedway Corporation Project), Series 2002. The 2002 Bonds are payable from payments to be made by the Corporation under a Financing Agreement with the Unified Government. The payments from the Corporation are first paid to the 1999 Bonds and then paid to the 2002 Bonds.

- 15 -

Taxable Special Obligation Revenue Bonds (Kansas International Speedway Corporation Project) Series 1999 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Total Debt Service

Interest

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$ 1,075,000 1,245,000 1,430,000 1,625,000 1,835,000 2,060,000 2,300,000 2,560,000 2,835,000 3,130,000 3,465,000 3,820,000 4,205,000 4,620,000 5,065,000 5,545,000 6,055,000 6,605,000 7,195,000

$ 4,398,435 4,332,323 4,255,755 4,167,810 4,067,872 3,955,020 3,828,330 3,686,880 3,529,440 3,355,088 3,143,813 2,909,925 2,652,075 2,368,238 2,056,388 1,714,500 1,340,213 931,500 485,663

$

5,473,435 5,577,323 5,685,755 5,792,810 5,902,872 6,015,020 6,128,330 6,246,880 6,364,440 6,485,088 6,608,813 6,729,925 6,857,075 6,988,238 7,121,388 7,259,500 7,395,213 7,536,500 7,680,663

Total

$66,670,000

$57,179,268

$123,849,268

(The Balance of This Page Has Been Intentionally Left Blank)

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Sales Tax Special Obligation Revenue Bonds (Kansas International Speedway Project) Series 1999 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Interest

Total Debt Service

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$ 512,811 555,957 608,672 664,103 729,103 796,818 861,597 949,976 1,041,734 1,113,629 1,195,524 1,284,040 1,377,142 1,478,176 1,587,573 1,704,729 1,833,003 1,971,281 3,097,367

$ 1,048,988 1,079,560 1,112,741 1,142,728 1,175,945 1,205,440 1,251,448 1,280,381 1,304,721 1,316,948 1,325,195 1,332,960 1,344,464 1,339,254 1,337,636 1,325,417 1,310,921 1,290,681 4,666,383

$ 1,561,799 1,635,517 1,721,413 1,806,831 1,905,048 2,002,258 2,113,045 2,230,357 2,346,455 2,430,577 2,520,719 2,617,000 2,721,606 2,817,430 2,925,209 3,030,146 3,143,924 3,261,962 7,763,750

Total

$23,363,235

$27,191,811

$50,555,046

(The Balance of This Page Has Been Intentionally Left Blank)

- 17 -

Special Obligation Revenue Bonds (Redevelopment Project Area B) Series 2001 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Interest

Total Debt Service

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$ 1,255,000 1,575,000 1,610,000 1,640,000 1,675,000 1,775,000 1,885,000 1,995,000 2,040,000 2,160,000 2,270,000 2,415,000

$1,095,785.00 1,035,472.50 960,525.00 892,050.00 818,702.50 734,952.50 646,202.50 551,952.50 452,202.50 350,202.50 239,502.50 123,165.00

$ 2,350,785.00 2,610,472.50 2,570,525.00 2,532,050.00 2,493,702.50 2,509,952.50 2,531,202.50 2,546,952.50 2,492,202.50 2,510,202.50 2,509,502.50 2,538,165.00

Total

$22,295,000

$7,900,715.00

$30,195,715.00

Taxable Subordinate Sales Tax Special Obligation Revenue Bonds (Kansas Speedway Cooperation Project) Series 2002 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Interest

Total Debt Service

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

$

260,000 335,000 310,000 285,000 250,000 210,000 260,000 205,000 150,000 125,000 90,000 165,000 120,000 85,000

$ 205,702.50 189,582.50 168,477.50 148,637.50 130,112.50 110,737.50 94,462.50 74,312.50 58,425.00 46,800.00 36,800.00 29,600.00 16,400.00 6,800.00

$ 465,702.50 524,582.50 478,477.50 433,637.50 380,112.50 320,737.50 354,462.50 279,312.50 208,425.00 171,800.00 126,800.00 194,600.00 136,400.00 91,800.00

Total

$2,850,000

$1,316,850.00

$4,166,850.00

- 18 -

Sales Tax Special Obligation Revenue Bonds Series 2004 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Total Debt Service

Interest

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

$

205,000 260,000 310,000 365,000 420,000 425,000 425,000 435,000 515,000 520,000 555,000 640,000

$ 268,610.00 259,733.50 247,773.50 232,924.50 214,747.50 193,243.50 171,186.00 147,641.00 123,542.00 95,011.00 66,203.00 35,456.00

$ 473,610.00 519,733.50 557,773.50 597,924.50 634,747.50 618,243.50 596,186.00 582,641.00 638,542.00 615,011.00 621,203.00 675,456.00

Total

$5,075,000

$2,056,071.50

$7,131,071.50

Special Obligation Revenue Refunding Bonds Series 2005 Outstanding Principal and Interest Annual Payments As of December 31, 2008 Period Ending December 1

Principal

Total Debt Service

Interest

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

-0-0-0-0$ 2,085,000 19,775,000 21,330,000 22,935,000 24,625,000 26,470,000 28,415,000 30,475,000

$ 8,621,422.50 8,621,422.50 8,621,422.50 8,621,422.50 8,621,422.50 8,541,150.00 7,601,837.50 6,588,662.50 5,499,250.00 4,268,000.00 2,944,500.00 1,523,750.00

$

Total

$176,110,000

$80,074,262.50

$256,184,262.50

- 19 -

8,621,422.50 8,621,422.50 8,621,422.50 8,621,422.50 10,706,422.50 28,316,150.00 28,931,837.50 29,523,662.50 30,124,250.00 30,738,000.00 31,359,500.00 31,998,750.00

Board of Public Utilities Indebtedness The Unified Government, as authorized by state statutes, reserves the right to incur debt on behalf of the Board of Public Utilities (BPU). Debt issued for capital improvements to the Unified Government’s utility system is payable only from revenues received from the sale of water and electricity by the utility and does not constitute a general obligation of the Unified Government, and no taxes may be levied by the Unified Government to pay principal of or interest on such debt. The total outstanding utility revenue bond indebtedness of the BPU as of December 31, 2008 is shown in the following schedule: Principal Outstanding

Series

$16,339,849* 39,995,000 16,950,000 12,675,000 124,395,000 112,105,000 57,310,000

1992 1998 1999 2001 2004 2004-B 2009-A Total *

$379,769,849

This amount includes the accreted value of the BPU’s Utility System Refunding and Improvement Revenue Bonds, Series 1992 (Capital Appreciation Bonds).

Indirect Debt Four school districts are located completely within the territorial limits of the Unified Government, as is the Kansas City, Kansas Community College. A schedule of outstanding indirect debt as of June 30, 2008 is as follows: County

Jurisdiction

City

Kansas City, Kansas Community College U.S.D. No. 500 U.S.D. No. 202 U.S.D. No. 203 U.S.D. No. 204 City of Bonner Springs City of Edwardsville

$ 3,755,000 107,365,000 36,170,000 3,325,000 40,805,000 21,225,000 5,390,000

$ 3,496,460 108,115,653 35,313,420 4,330,000 11,529,203 ---

Total

$218,035,000

$162,784,736

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Debt Ratios Wyandotte County Estimated Actual Valuation (As of November 1, 2008)(a) $7,880,436,774 (b) Assessed Valuation 1,270,053,704 Population 153,989 Outstanding General Obligation Indebtedness (as of December 31, 2008) General Obligation Bonds -General Obligation Notes 300,000 Less: Debt Service Funds on Hand as of December 31, 2008 (114,747) Net Outstanding General Obligation Indebtedness 185,253 Ratio of Net General Obligation Debt to Estimated Actual Valuations 0.002% Ratio of Net General Obligation Debt to Assessed Valuation 0.01% Net General Obligation Debt per Capita 1 Overlapping Indebtedness(c) 218,035,000 Direct and Overlapping Indebtedness 218,035,000 Ratio of Direct and Overlapping Indebtedness to Estimated/Actual Valuation 2.77% Ratio of Direct and Overlapping Indebtedness to Assessed Valuation 17.17% Direct and Overlapping Indebtedness per Capita 1,416 Overlapping Indebtedness per Capita 1,416

Kansas City $7,067,476,116 1,142,965,722 142,320 153,210,000 120,037,299 (16,190,885) 257,056,414 3.64% 22.49% 1,806 162,784,736 419,841,150 5.94% 36.73% 2,950 1,144

(a)

For a further description of how estimated actual valuation is calculated, see “APPENDIX III – KANSAS PROPERTY VALUATION AND TAX LEVIES” herein.

(b)

Includes real property, personal property, and state assessed utility valuations and excludes valuations for motor vehicles.

(c)

For a more detailed explanation of the overlapping indebtedness of other jurisdictions, see “UNIFIED GOVERNMENT INDEBTEDNESS – Indirect Debt” herein.

(The Balance of This Page Has Been Intentionally Left Blank)

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UNIFIED GOVERNMENT TAX RATES, LEVIES AND COLLECTIONS Property Tax Levies and Collections In accordance with governing state statutes, property taxes levied during the current year are revenues to be used to finance the budget of the ensuing year. Taxes are assessed on a calendar year basis and are levied and become a lien on the property on November 1 of each year. The County Treasurer is the tax collection agent for all taxing entities within the County. Property owners have the option of paying one-half of the full amount of the taxes levied on or before December 20 during the year levied with the balance to be paid on or before June 20 of the ensuing year. State statutes prohibit the County Treasurer from distributing taxes collected in the year levied prior to January 1 of the ensuing year. Consequently, for revenue recognition purposes, the taxes levied during the current year are not due and receivable until the ensuing year. At December 31, such taxes are a lien on the property and are recorded as taxes receivable, net of anticipated delinquencies, with a corresponding amount recorded as deferred revenue. It is not practicable to apportion delinquent taxes held by the County Treasurer at the end of the year and the amounts thereof are not material in relationship to the financial statements taken as a whole.

Budget Year

County General Fund

County Bond & Interest

County Other

Mill Rates City County General Total Fund

2009 2008 2007 2006 2005

23.102 22.208 19.750 20.335 21.428

1.027 1.776

6.348 8.331 10.649 10.944 9.460

30.477 30.539 30.399 31.279 32.664

25.903 26.356 27.293 28.394 29.533

City Bond & Interest

City Total

Unified Gov’t Total

14.355 14.329 14.295 14.348 14.419

40.258 40.685 41.588 42.742 43.952

70.735 71.224 71.987 74.021 76.616

Tax Levies and Collections Unified Government of Wyandotte County/Kansas City, Kansas Statement of Ad Valorem Taxes Levied And Collected for the Last Five Budget Years Budget Year 2008 2007 2006 2005 2004

Amount Levied $86,210,883 80,690,826 77,667,951 75,569,970 73,601,121

Amount Collected

Delinquent Taxes Collected

Total Collections

$78,609,433 74,975,134 72,433,408 71,510,400 69,524,910

$2,997,522 2,591,172 3,449,002 3,064,412 4,022,148

$81,606,955 77,566,306 75,882,410 74,574,812 73,547,058

- 22 -

Percent of Total to Current Levy 94.66% 96.13 97.70 98.68 99.93

Retail Sales and Tax Collections County retail sales, which have been subject to sales tax in the County since 2004, are as follows: County Retail Sales*

*

Year

Sales

2008 2007 2006 2005 2004

$1,918,831,934 1,883,227,017 1,773,632,549 1,605,112,814 1,536,269,249

Based on Kansas State Sales Tax Collections.

General Fund Sales and Use Tax Revenues Year

Sales

2008 2007 2006 2005 2004

$33,400,173 33,691,205 33,443,126 32,297,617 30,813,108

Source: Unified Government of Wyandotte County/Kansas City, Kansas.

FUNDS ON HAND As of December 31, 2008 General Fund Special Revenue Funds Debt Service Fund Capital Projects Fund Enterprise Funds Internal Service Funds Trust and Agency Funds

$ 22,662,922 25,682,063 16,305,632 61,839,631 11,040,657 14,255,952 114,113,116

Total

$265,899,973

INVESTMENTS The Unified Government is authorized by Kansas laws to invest in bank savings investments, repurchase agreements, U.S. Treasury and U.S. Agency obligations, and the Kansas Municipal Investment Pool. The Unified Government’s investments as of July 31, 2008 totaled $22,991,000 and are held in various repurchase agreements with interest of 1.91% and maturing no later than August 1, 2008, certificates of deposit totaling $159,750,000 with interest ranging from 4.75% to 5.90% and maturing no later than September 2009, and $843,416 of United States Treasury Bills with interest of 3.85% and maturing no later than April 2009. - 23 -

GENERAL INFORMATION CONCERNING THE UNIFIED GOVERNMENT The following table shows the City and County populations: Year

Kansas City

2007 2000 1990 1980

142,320 146,866 151,521 161,148

Wyandotte County 153,989 157,882 162,026 172,335

Source: U.S. Census Bureau; actual decennial figures and July 1, 2007 estimate.

Population by Age – Wyandotte County

*

Year

Median Age

2007* 2000 1990

33.5 32.5 31.6

0-17

18-24

25-44

28.7% 28.5 28.4

9.1% 10.4 9.8

27.9% 29.5 31.0

45-64 24.1% 19.9 17.7

65+ 10.5% 11.7 13.0

2007 data is a 2007 Census estimate except for median age, which is a 2006 American Community Survey (U.S. Census Bureau) estimate.

Source: U.S. Census Bureau; actual decennial figures and July 1, 2007 estimate.

Value of New Construction in Kansas City, Kansas

Year

Commercial/ Industrial Number of Permits

Commercial/ Industrial Construction Value

Residential Permits

Residential Number of Units

2008 2007 2006 2005 2004 2003 2002 2001 2000

139 157 210 170 160 147 134 139 154

$104,606,834 70,302,000 65,564,865 118,017,975 61,908,683 43,587,871 98,025,632 77,769,916 118,104,041

140 334 472 521 504 458 315 206 164

144 376 534 680 636 483 436 266 272

New Residential Construction Value $20,840,120 46,589,171 65,782,944 73,797,879 67,277,251 57,351,022 44,133,527 30,453,000 28,699,000

Source: Unified Government Building Inspection Division.

Capital Maintenance and Improvements Program The City adopted the first multi-year and comprehensive capital budget in August 1984. The current Capital Maintenance and Improvement Program for the period from 2009 to 2013 totals $361.1 million which includes both cash and debt projects. The plan includes both major infrastructure projects totaling $305.1 million and $56.0 million in capital equipment purchases. The capital projects budget includes planned improvements for streets, bridges, sewers (both sanitary and storm), traffic regulation, public buildings, parks and recreation facilities and capital equipment items.

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Development The Unified Government’s economic development program focuses on retaining and strengthening the traditional manufacturing and distribution base while diversifying the economy in the office, service, and tourism and entertainment sectors, and promoting housing development and redevelopment. Even though the national economy began to slow in 2008, many Unified Government economic indicators continued to move in a positive direction. This is supported by national data that employment grew in Wyandotte County by 2.2% for the period June 2007 through June 2008. This ranked 17th highest nationally out of the 335 largest counties being tracked. Tourism District. In recent years, efforts have directed toward the development of a 1,600-acre tract of land, located directly northwest of the intersection Interstate Highways, I-70 and I-435. The Unified Government successfully lobbied for special state legislation establishing the boundaries of the Tourism District, now named Village West. State authorized Sales Tax Revenue Bonds (STAR Bonds) were used to fund eligible costs within the district for land acquisition, site improvements, streets, utilities, and landscaping. The Unified Government attracted the Kansas Speedway as the economic catalyst for development of this tract using the STAR Bond financing incentive. The speedway project, totaling more than $224 million, is a 1.5-mile tri-oval on approximately 1,200 acres of land, with 68 luxury hospitality suites and grandstand seating for 82,000. The speedway has six major race events per year, and is in use approximately 200 days per year for various events, including driving schools, charity events, and track tours. In its first eight seasons, Kansas Speedway has operated at or near capacity for all major race events. An economic impact study commissioned by the Greater Kansas City Sports Commission on behalf of Kansas Speedway reported an annual $149.7 million of economic activity in the metropolitan Kansas City area associated with the Speedway’s 2001 inaugural season events. Joining Kansas Speedway at Village West are major destination retailers and entertainment business that have attracted approximately 10 million visitors and shoppers in 2008. The initial anchor businesses and attractions include: Cabela’s, World’s Foremost Outfitter, a 188,000 square-foot retail store featuring hunting, fishing, and other outdoor items with a 11,000 square-foot museum and 60,000-gallon aquarium (opened August 2002); Nebraska Furniture Mart a 450,000 square-foot retail store, with an adjacent 262,000 square-foot warehouse that sells furniture, electronics, appliances, and floor coverings (opened August 2003 & in 2006 completed the construction of a warehouse addition which nearly doubled its existing warehouse capacity); the Great Wolf Lodge and Resort, a 281 room lodging with a 40,000 square-foot indoor water park (opened June 2003); and CommunityAmerica Ballpark, home of the Northern League’s Kansas City T-Bones, an independent, minor league baseball team. Since the T-Bones moved to Kansas City, Kansas and built their ballpark in 2003, they have proven to be one of the most successful teams in the country, averaging 6,000 per game, and having attracted a total of over 1.5 million fans. The T-Bones also allow area high schools and the local community college to play baseball games in the ballpark, and it is the current temporary home of the Kansas City Wizards of Major League Soccer. In addition to the Great Wolf Lodge, four other hotels have opened the past three years in Village West, including Hampton Inn (2003 with 76 rooms), the Chateau Avalon (2004 with 62 rooms), a Holiday Inn Express (2005 with 96 rooms) and Country Inn (2008 with 117 rooms). In 2009, several new hotels are planned to be constructed in the Village West area. An 86-room Best Western would be close to the Kansas Speedway with construction scheduled to begin in the summer of 2009. Residence Inn is planning a 118-room four-story hotel adjacent to the Legends shopping area with construction scheduled for spring 2009. Finally, a Courtyard by Marriott is planned to start construction in spring 2009 and will have 92 rooms. The Legends at Village West is a $123 million shopping center housing nearly 855,000 square-foot of retail, dining, and entertainment. Two of the larger entertainment

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attractions opened in November of 2005. The Legends 14 Theatre complex (87,000 square feet) with state-of-the-art seating and sound systems is the largest of the tenants. Dave and Buster’s, with nearly 50,000 square feet, is a large restaurant/arcade. Fifteen additional businesses opened at the Legends during the last two months of 2005. In 2006, the grand opening of the Legends Center occurred, with the completion of on-going construction. Currently, over 100 businesses are open with nearly half of the stores and restaurants new to the Kansas City area, creating a unique destination. Also in 2006, two large retailers, JC Penney and Target, became part of the Legends with the opening of new department stores. In 2008, new businesses at the Legends included a Payless Shoesource, Panda Express restaurant, a National Tire and Battery and a 117-room Country Inn and Suite. As of December 2008, 115 businesses, including 31 restaurants, were open in Village West, employing nearly 5,700 persons. These businesses generated over $610 million in retail sales with local and state sales tax, use and transient guest tax collections of nearly $47 million. The 2008 real and personal property taxes levied for this development area was just over $15 million. Once the STAR bonds are retired, these developments will become a major source of the new sales and guest tax revenues for local and state governments. In 2005, plans for Schlitterbahn Vacation Village were approved by the Kansas Secretary of Commerce to allow for up to $225 million in STAR bond financing. The total cost of this development will be nearly $750 million. Plans for the development include a riverwalk, water-park resort, marine park, lodging, and retail amenities. With site preparation beginning in 2007, the Schlitterbahn Vacation Village will be located on 370 acres east of I-435 between State Avenue and Parallel Parkway and will complement the Village West development. The first phase of the water park and resort is scheduled to open in 2009 with the full resort open in 2011. A retail anchor for the Schlitterbahn development was approved by County elected officials in early 2009. A Scheels sporting good “superstore” is planned to be 221,000 square feet and, in addition to retail, will include amusement activities. Scheels is expected to employ 180 full-time and 150 part-time people, with construction expected to begin in 2009. In 2007, Wyandotte County voters approved a measure to legalize gambling. In 2008, the State of Kansas was not able to finalize a development agreement with a selected operator. In 2009, the State of Kansas will re-initiate the process for applicants to submit proposals for a destination resort casino which may include retail stores, a hotel and other forms of entertainment. The State is expected to select one proposal for Wyandotte County in 2009 with the initial phase expected to open within a 12 to 24 month period after a development agreement is approved. Downtown. Several major investments have occurred in the downtown area during the past seven years. The Unified Government, through a public/private partnership with KCK Investors, LLC owns a 49.5% interest in KCK Hotel Group, LLC. This group constructed a Hilton Garden Inn and refurbished Jack Reardon Convention Center in the urban core. The Hilton Garden Inn Hotel has 147 rooms, a full service restaurant and lounge and adjoins the refurbished Jack Reardon Convention Center providing a first-class hotel and convention center to downtown Kansas City, Kansas. In 2008, the hotel and convention center, managed by the Raphael Hotel Group completed its sixth year of operation. Built with and adjoining the hotel is a new 100,000 square-foot headquarters facility for the Board of Public Utilities. A 485-space parking garage funded in part by a $1,500,000 grant from the Economic Development Administration completes this development. In 2003, the Environmental Protection Agency completed the construction of a new lab facility at a cost exceeding $16 million in the downtown area. This lab is adjacent to the EPA Regional Office, a $55 million complex for 600 employees, completed in 2001. In 2005, a new apartment housing

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complex was added to the downtown area with the completion of City Hall Lofts, a 43-unit loft conversion of the former City Hall. This development was fully rented by the end of the year. The Gateway Office complex located between 4th & 5th Streets south of State Ave., is being transformed into the Children’s Campus of Kansas City. The Children’s Campus will serve as a national model in early childhood services focusing on pre-kindergarten children. In 2008, the first building of this campus opened; a $12 million office building housing Kansas Social and Rehabilitation Services employees. This 72,000 square-foot building houses over 330 workers. Just around the corner from the previously mentioned Hilton Garden Inn and the new BPU building, the YWCA completed their $5 million renovation with the completion of a new live theater in late 2006. This, along with other renovations at the site, are designed to help the YWCA play an expanding role in the community through enhanced services and programs. Midtown. Two redevelopment projects merit special note. First, the Prescott Plaza is a $20-million development located at the site of an old abandoned truck stop at I-70 and 18th Street. This redevelopment is anchored by a 42,000 square-foot grocery store which opened in November 2008. Additional stores and shops are expected to open in the near future. This public/private development is bringing new retail services to the urban core. Second, the Unified Government is currently negotiating a development agreement for the redevelopment of the Indian Springs Marketplace located at the southwest corner of I-635 and State Ave. This project is expected to be a mixed use development. Industrial Park Developments. The Unified Government currently has four major industrial parks: Fairfax Industrial Business District, Central Industrial Business District, Armourdale Industrial Business District, and the Santa Fe Industrial Business Park. These four industrial areas represent 80% of the industrial development in the Unified Government. The Unified Government has several other industrial park developments in the Hart Business Park located at 55th and K-32, Woodend Industrial Park along the I-435 Corridor, the Muncie Industrial Park located at 62nd and K-32 and the I-635 Industrial Park at I-635 and Metropolitan. Edwardsville has also developed an industrial/warehouse area near I-435 and the Kansas River. In the Fairfax Industrial District, the General Motors Fairfax Plant has recently completed a $116 million expansion in order to produce a Saturn line of automobiles, which began in 2006. In 2007, General Motors began building a redesigned Chevrolet Malibu. This change to the Fairfax plant was a $190 million investment. Also in 2008, General Motors built a $2.5 million addition to one of its buildings. Kellogg’s Snack Division, also located in the Fairfax Industrial District, underwent a $33 million expansion in 2007 to manufacture three new product lines. Also in 2007, Owens Corning has placed in service an $8.8 million J-3 Insulation production line. The Armourdale Industrial area has several major on-going developments. In 2006, Proctor & Gamble began a $70 million expansion for both a new product line and packaging line. Prime Investments built a $5 million industrial/warehouse building in 2007. The PQ Corporation constructed a $1.8 million conversion of a warehouse facility also in 2007. In the Santa Fe Industrial District, Display Studios in 2007 opened a $4.4 million manufacturing facility. In 2008, Burlington Northern and Santa Fe built a $1.5 million commercial building. Also in 2008, just outside the Santa Fe Industrial District, Swartz Road Warehouse built a $1.4 million addition. The Ranpark Corporation expanded into the Central Industrial District. Ranpark manufactures paper packaging materials and will spend approximately $1 million on the plant in 2007.

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Along the K-32 corridor, two developments have occurred in the past three years. Weyerhaeuser has constructed a new $6.2 million lumber product distribution center near I-435 and K-32, completed in 2003. In 2005, Griffin Wheel finished a $13 million expansion of its rail car wheel manufacturing facility in the K-32 Muncie area. Further, in 2007 Griffin Wheel constructed a $1.25 million building addition. Plastic Packaging, located just off Holliday Dr. and 65th St., undertook a $1.2 million building expansion in 2006. Recent developments in other areas include: a $2 million distribution center for Frito Lay in the Melrose Business Park, near I-635 and Metropolitan. Midland Pharmaceuticals recently expanded its facility through a $4.6 million investment in the Rosedale/Shawnee Heights area of the County. Fastenal and Quill have opened new distribution facilities in the Edwardsville I-435 industrial area, at an aggregate investment of $14.4 million. Rite Maid Paper built a $5 million office/warehouse facility in 2007 located in Cambridge Terraces located just west of Kansas City, Missouri and north of I-35. Office and Service. The downtown area, with approximately 6,000 employees has the largest concentration of office workers. Besides the downtown, there are active office parks in Cambridge Terrace, Meadowlark Lane, Woodlands West and assorted office and medical facilities in different locations in the community. The Unified Government also owns and operates the 111 acre Public Levee facility in the Fairfax Industrial District. At the close of 2008, the Public Levee had 92% of its 569,000 square feet of warehouse and office space leased, with warehouse space accounting for over 91% of total Levee space. In addition, a large grain elevator facility, with 253,000 square feet and a five story cold storage facility containing 164,000 square feet, remains leased. In 2005, Wyandotte Center for Behavioral Health upgraded its office facilities with a $3.3 million investment near 47th and State Avenue in the midtown area. The Salvation Army completed construction in 2007 of Harbor Light Village near 67th & State Ave., which includes three separate buildings: a family shelter, community center and treatment center. The overall cost of this project was $12.5 million. In 2004 and 2005, several offices and service buildings have been constructed directly north of Village West, near 110th and Parallel Parkway. The cost of development associated with these office facilities is in excess of $5 million. The firms locating in this area include: Heartland Primary Care, a medical group, Security National Bank, Mid America Bank and Trust, and a general office building. In 2008, construction began on a new $2.5 million Discover Vision Center office building in this general area. Woodlands West, directly east of I-435 and Leavenworth Rd, has also experienced recent development. Two office buildings have opened since 2004. In 2008, Byrd’s Dance and Gymnastics studio opened and construction has begun on a Masonic lodge. The combined value of these projects is over $2 million. In 2007, two new hotels opened in the I-435 corridor: Comfort Suites (84 rooms) located at I-435 & Leavenworth Rd. and Candlewood Inn (98 rooms) at 110th & Parallel. Retail. The Village West development, mentioned in the tourism discussion, has had explosive growth during the past eight years. However, several other developments are of note. The State Avenue midtown area has had several recent developments. In 2003, Walgreens, built a new pharmacy/discount store at 78th and State Avenue. In 2004, Lowes constructed a 125,000 square-foot home improvement store at 72nd and State Avenue, a $8.1 million development. In 2005, Penners, a men clothing store completed a $750,000 construction

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project, with a new store at 48th and State Avenue. In 2007, a Walgreens located at 28th and State Avenue opened. Also in the midtown area at 54th and Leavenworth Rd., a grocery store was remodeled at a cost of nearly $1 million. This redevelopment brings a much needed quality grocery store to this part of town. In 2005, Piper Plaza completed its second phase with the development of a neighborhood strip center. Piper Plaza is located near Village West at 110th and Parallel Parkway, but has more of a neighborhood focus, with tenants such as a dry cleaner, UPS delivery store, bar and grill and dentist office. Its development costs are in excess of $3 million. Not far from Piper Plaza, several new banks have opened with a combined value of $4.3 million. These include Security Bank (2005), Country Club Bank (2005), and First State Bank and Trust (2007). In late 2006, the Unified Government Commission approved a $190 million project called Plaza at the Speedway. It is a tax increment project located on the north side of Parallel Parkway. across from the Legends shopping area. This development will provide 775,000 square feet of retail shopping and is expected to create over 2,100 jobs. The shopping area will be anchored by a Wal-mart Supercenter. Wal-mart and a Best Buy store are scheduled to open in 2009. Other first phase retailers will include Kohl’s, Office Max, Michaels, Shoe Carnival, and Dress Barn. Recreation. A new YMCA facility, completed in 2006 at a cost greater than $4 million, was built adjacent to the Providence Medical Center. Mt. Carmel Development built a community center, with a cost similar to the YMCA, in the eastern area of the County near 12th and Parallel Parkway and opened in 2006. In November 2006, Heart of America Volleyball Association completed a conversion of an existing building to offices and a volleyball recreation facility which has five tournament courts. This building will serve as a practice facility and will also host local and regional volleyball tournaments. Housing. New single-family permits issued in 2008 totaled 136. This is the second year in the past five that total single-family permits have fallen below 400 per year. However, the decade still has seen more new single-family building permits (2,997) than any other prior decade going back to the 1960’s. In 2005, the 494 permits issued was the highest single-year total for the past 40 years. The Home Builders Association of Greater Kansas City tracks new housing starts for 69 communities in an eight-county Kansas City area and in 2008, Kansas City, KS ranked fifth among all cities in the number of single-family permits issued. The strategic plan developed by the Wyandotte County Economic Council calls for the aggressive marketing of the I-435/K-7 highway corridor as a prime development area. Since 2000, permits have been issued for the construction of 3,827 new residential units in Kansas City, KS. This area of the City has accounted for 2,333 new residential units or 61% of the newly built units since 2000. In 2008, permits were issued for five or more units in 7 different subdivisions located in this corridor. Examples of current active subdivisions are Northridge at Piper Estates, Connor Creek, Delaware Highlands, Highlands at Piper and Swanson’s Farm with homes ranging in price from $80,000 to $500,000. Hazelwood Villas at 113th & Parallel Pkwy. and Crystal Ridge at I-435 & Leavenworth Rd., are mixed use developments that had significant construction between 2004 and 2007. Another mixed use development, Delaware Highlands located east of K-7 on State Ave., also saw a high level of construction between 2004 and 2007 but also added 25 housing units in 2008. The prices of these units range from $80,000 to $140,000. These developments have attached town homes, duplexes, and detached single-family homes. Permits were issued for nearly 625 new units in these mixed-use subdivisions in 2004 through 2008.

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The City of Kansas City, Kansas currently has 2,100 buildable lots in 62 subdivisions. The city is poised to continue its positive housing construction trend once the local and national economies begin to improve. In addition to an increase in new housing starts in the western corridor of the city, several new developments have occurred in older areas of the community. In 2004, Stonehedge Townhomes, a 138 unit development in the mid-town area was completed. In 2005, two other apartment developments were completed and have been fully-rented. City Hall Lofts is a 43 unit loft conversion of the former City Hall in the downtown and Westgate apartments is a 48 unit apartment complex, centrally located near I-70 and 75th Street. With construction beginning in 2006, Rivers Edge East will have over 170 single-family homes with prices starting at $150,000. City Vision Ministries in 2008 constructed the first five of nearly 100 planned townhomes and condominiums. The finished townhomes are just south of the EPA office building in downtown Kansas City, Kansas. These are closely located to the Strawberry Hill Townhomes of which phase I is complete (six townhomes). Phase II of the Strawberry Hill project had five permits issued in 2007 and will have a total of 65 townhomes when complete. The St. Peters / Waterway development will consist of 140 new and rehabbed homes. This project is financed with over $3 mill in Tax Increment Financing and $2 million in Federal funds. To date, 65 home have been constructed or rehabbed in the St. Peters/Waterway Neighborhood; our largest redevelopment project to-date. Several other developments are of interest which are located generally north of State Ave. and east of I-635. Peregrine Falcon Estates had its first five homes for sale in 2008. The 30-home first phase will have homes ranging in value from $200,000 to $240,000. Located on 50 acres in the northeast portion of the city, Peregrine Falcon Estates is part of a TIF district that will eventually include 150 new single-family homes, 21 townhomes and 40 renovated homes. Also located in far northeast Kansas City, Kansas, Fairfax Bluff Apartments began renting refurbished units in 2008. A total of 254 units in 47 buildings make up the Fairfax Bluffs Apartment complex. These buildings were initially constructed during the 1940’s to house workers building bombers in the Fairfax Industrial area. Finally, the former Northeast Junior High School near 4th and Troup is being converted to a 40-unit senior apartment complex. The conversion represents a $6 million investment and is heading into its second phase. One mid-town development of mention is Escalade Heights located at 59th south of Parallel which began construction in 2007. A total of 68 single-family units are planned to be built. Another project near 75th and State Ave., Villas of Stonebridge, began building maintenancefree townhomes in 2007. Phase 1 will have a total of 86 units. When finished, Stonebridge will have a total of 217 units. Community Housing Wyandotte County (CHWC) is a private non-profit corporation whose mission is to stabilize, revitalize, and reinvest in communities through improved housing and other related developments. CHWC focuses its programs in the urban core neighborhoods of Kansas City, Kansas/Wyandotte County, and over the past three years, CHWC has built and sold over 51 new single family homes, and rehabbed over 35 existing homes in the neighborhoods of Prescott, St. Peters/Waterway, St. Joseph/St. Benedict, Bethany, Chelsea, Riverview, and Strawberry Hill. Future projects that CHWC intends to pursue include a 59-unit assisted living building and 20 independent villas on the former Bethany Hospital site. Additionally, CHWC intends to build 20 single-family, lease-to-own homes in the Bethany neighborhood. Lastly, through a partnership with City Vision Ministries, CHWC will also build an additional 6 townhomes in the Strawberry Hill neighborhood. CHWC is also partnering with the Douglass-Sumner Neighborhood Association, Unified Government and Local Initiative Support Cooperation to help revitalize and redevelop the Douglass-Sumner Neighborhood. Two (2) new houses will begin construction in late Spring, 2009.

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Among other inner-city developments are Mission Cliffs in Rosedale, near KU Medical Center. For the period 2006 thru 2008, permits were issued for 56 new housing units in this development. Mt. Carmel at 12th and Parallel Parkway is building a 48 unit subdivision and has currently completed 12 units. Mt. Carmel recently completed a senior complex (61 units) and a community-recreation center at this location. Major Employers in the Unified Government The principal employers within the Unified Government are listed below. Employer Kansas City, Kansas School District #500 University of Kansas Hospital Burlington Northern/Santa Fe Railroad General Motors Corporation University of Kansas Medical Center Unified Govt. of Wyandotte County/Kansas City, KS Associated Wholesale Grocers Nebraska Furniture Mart Providence Medical Center United Parcel Service Board of Public Utilities Cabela’s Retail Environmental Protection Agency Kansas City, Kansas Community College Turner School District #202 Bulk Mail Center – U.S. Post Office CertainTeed Corporation Federal Express General Mail Facility – U.S. Post Office Kellogg Corp. Swift Transportation Wyandotte Center for Community Behavorial Healthcare, Inc. Bonner Springs School District #204 Great Wolfe Lodge Kansas Speedway* Owens Corning Walmart *

Product/Service

Approximate Number of Employees

Public education (K-12) Hospital Railroad Auto manufacturer Medical teaching/research center Municipal government

3,500-4,000 3,500-4,000 2,500-3,499 2,500-3,499 2,500-3,499 2,500-3,499

Food distributor Furniture, electronics, appliances & flooring Hospital Parcel post Public utility (electric, water) Outdoor/recreation retailer Federal government Post-secondary education Public education (K-12) Federal agency/delivery Insulation manufacturer Transportation Trucking Mail Processing Food manufacturing Transportation – trucking

1,000-2,499

Health Care Education Accommodation/Food Services Auto raceway Insulation manufacturer Retailer

The majority of Speedway employees are temporary staff hired for the race events.

Source: Unified Government Research Division, February 2009.

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1,000-2,499 1,000-2,499 750-999 500-749 500-749 500-749 500-749 500-749 400-499 400-499 400-499 400-499 400-499 400-499 400-499 300-399 300-399 300-399 300-399 300-399

Retail Sales and Effective Buying Income Wyandotte County

2007 2006 2005 2004 2003

Total EBI ($000)

Median Household EBI

Total Retail Sales ($000)

Retail Sales Per Household

$2,282,248 2,285,180 2,325,995 2,263,933 2,177,730

$32,563 32,603 33,292 32,722 31,190

$1,663,437 1,560,031 1,360,763 1,453,163 1,377,017

$28,435 26,667 23,142 24,382 23,379

Total Retail Sales ($000)

Retail Sales Per Household

$1,278,835 1,185,908 1,134,481 1,206,879 1,066,719

$23,167 21,680 20,740 21,629 19,976

Kansas City, Kansas(a) Total EBI ($000) 2004 2003 2002 2001 2000

Median Household EBI(b)

$2,061,883 1,983,798 1,986,593 1,939,488 1,951,042

$32,161 30,642 31,115 31,486 29,904

The 2007 State median household effective buying income was $40,726. (a) Most recent information available. (b) Median Household Effective Buying Income figures for 2001 and future years are based on Current

Population Survey data and are not directly comparable to prior years’ figures, which were based on the 1990 Census. Source: 2005 through 2008 data taken from Demographics USA, 2006 through 2008 editions. 2000 through 2004 data taken from Sales and Marketing Management, "Survey of Buying Power," 2000 through 2005 editions.

Labor Force Data 2008*

2007

2006

2005

2004

2003

7.6% 8.5%

7.1% 7.2%

7.5% 6.8%

8.8% 7.8%

9.4% 11.0% 8.5% 9.3%

4.5% 4.9%

4.1% 4.0%

4.3% 3.9%

5.1% 4.4%

5.5% 5.0%

5.6% 5.2%

5.5% 7.2%

4.6% 5.0%

4.6% 4.5%

5.1% 4.9%

5.5% 5.4%

6.0% 5.7%

Wyandotte County Average Annual Unemployment Rate December Unemployment Rate Kansas Average Annual Unemployment Rate December Unemployment Rate United States Average Annual Unemployment Rate December Unemployment Rate *

2008 Average Annual Unemployment Rates are estimated.

Source: Kansas Department of Labor, U.S. Department of Labor, and the Bureau of Labor Statistics.

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A breakdown of employment by type is described in the following table supplied by the Research and Analysis Section, Division of Staff Services, Kansas Department of Human Resources. Employment in Wyandotte County

Total Employment(b) Manufacturing Agriculture & Mining Construction Transportation/Communication/ Public Utilities Wholesale Trade Retail Trade, including Restaurants Finance, Insurance and Real Estate Services Government

2008(a)

2007

2006

2005

2004

80,996 11,649 75 4,394

80,689 11,956 67 4,463

79,313 12,486 75 4,611

76,660 12,414 74 4,343

75,874 12,405 47 4,077

8,462 5,180 11,520 2,102 22,201 15,413

8,478 5,013 11,883 2,073 21,543 15,217

7,809 4,977 11,670 2,064 20,664 14,959

7,644 4,886 10,604 2,026 19,947 14,722

8,665 5,205 10,326 2,099 18,722 14,602

(a) 2008 figures are an average for the period of the 3rd quarter 2007 thru the 2nd quarter 2008. (b) Railroad employees and self-employed individuals are not covered by unemployment insurance and

are not included in the above totals. Source: Kansas Department of Human Resources.

Transportation The Kansas City region has an extensive transportation system consisting of air, rail, highway, and river port facilities located in the center of the continental United States both geographically and in terms of population distribution. Highway Transportation System. The region has the presence of a large number of major federal and state highways. A total of 12 major highways crisscross the area encompassing the Unified Government. Of this total, five highways, I-35, I-70, I-435, I-635, and I-670, are National Interstate Highways; five, U.S. 24, U.S. 40, U.S. 69, U.S. 73, and U.S. 169, are major U.S. Highways; and two, 5, and 32, are major State Highways. The Kansas Turnpike and its interface with I-70 and I-35 channels a great deal of east-west and north-south transcontinental traffic. Airport Facilities. Kansas City International Airport (“KCI”) is located less than 20 miles from the Unified Government’s central business district via interstate highways. In 2008, KCI served 10.5 million passengers with 16 carriers. In 2007, flights into KCI handled 239 million pounds of cargo. Kansas City’s central location brings even the farthest cities in the continental U.S. to within four hours flight time. Area travelers can fly to most major U.S. cities, conduct their business, and return home the same day. Because KCI is located on 10,690 acres in a suburban setting, there is ample room for expansion and there are no noise restrictions or limited hours of operation. KCI has three runways, including two north/south runways which allow simultaneous operations, reducing potential delays. KCI ranks as the highest volume cargo airport in the six-state area. Currently, KCI has 175,000 square feet in air cargo handling facilities, with 1,200,000 square feet of air cargo ramp. The seven major air freight carriers and the U.S. Postal Service enjoy the easy access and central U.S. location of the airport. Kansas City Downtown Airport is located just across the Missouri River from downtown Kansas City, Kansas. The airport offers full-service, fixed base operators that serve based and itinerant

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business aircraft; charters, rentals, and flight training; and commuter airlines. There are several other general aviation facilities in the metropolitan area. Railroad Facilities. The region is one of the nation’s largest rail centers and is an important hub of the transcontinental rail system, providing both freight and passenger service. All major cities of the United States can be reached in less than 120 hours and many within 72 hours. The Unified Government is served by seven railroads, providing approximately 92 freight movements a day. A direct carrier rail service to the Unified Government’s Foreign Trade Zone provides efficient loading and unloading of goods destined for import or export markets. The Burlington-Northern Santa Fe Railroad completed a $90 million reconstruction of its yards located within the corporate limits of the Unified Government in 1998. Barge Facilities. The Unified Government is located on the Missouri River, which has a nine-foot channel allowing 1,200-ton barges to move directly to New Orleans and all interim ports. Shipment of Midwestern wheat, corn, and soybeans via the inland waterway and the Port of Kansas City provide an economical and efficient means of transportation. Containerized shipping is a major part of the area’s expanding water commerce, and present barge activity through the Port of Kansas City is substantial. The Port of Kansas City has direct connections to rail facilities and three interstate highways. Local warehouse facilities and outside storage space are available for dry bulk storage and merchandise storage, and the Port has modern loading and unloading equipment to handle most types of cargo quickly and efficiently. Truck Facilities. A modern network of interstate highways and trucking centers serves the Unified Government. The region’s central proximity to national markets and urban centers makes it possible for shipments by truck to reach most of these areas by the third morning after pickup, and most Midwestern markets by the first or second morning. Public Utilities Kansas City Board of Public Utilities. The Unified Government’s utility system is managed, operated, maintained and controlled on a day-to-day basis by the Kansas City Board of Public Utilities (“BPU”), which is an administrative agency of the Unified Government. BPU operates the water and electric utilities owned by the Unified Government. In the early 1900s, citizens of Kansas City authorized the purchase of a privately owned water system and the construction of an electric light plant and electric distribution system, designed mainly to operate a street lighting system and to furnish power to the municipal waterworks. In 1929, the State Legislature transferred management of the water and electric light plants from the Board of City Commissioners to BPU, which is independent of all other branches of the Unified Government, but a dependent agency of the Unified Government. BPU currently serves approximately 65,000 electric customers and 51,000 water customers. The number of service customers does not include electric and water services to the facilities of the Unified Government. The BPU has two electric power generating stations to provide the electricity needed by its customers: Nearman Creek Power Station and Quindaro Power Station, which are located within the corporate limits of the Unified Government. A third electric power generating station, Kaw Station, is currently inactive. A network of 161kV and 69kV transmission lines interconnects the BPU generating stations and the distribution substations. The maximum net capability (i.e., demonstrated capacities at the time of summer peak) of the Nearman and Quindaro generating stations is 631 MW. In the early 1980’s the BPU entered into long-term agreements with two utilities for wholesale power from the Nearman plant. The BPU water customers are served by the Nearman Water Treatment plant, which opened in 2000. The plant processes water pumped from two horizontal collector wells which draw water from an underground aquifer beneath the Missouri River. The horizontal collector wells are

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some of the largest alluvial wells in the world. The older Quindaro water treatment plant is on stand-by service. In addition to providing electric and water utility services, BPU provides billing service to residents of the Unified Government for solid waste removal (for which the Unified Government contracts), wastewater treatment, and Payment In Lieu of Taxes. The Unified Government serves over 45,000 residential and commercial customers through its five sewage treatment plants. Kansas Gas Service and Atmos Energy provide natural gas utility service. Medical and Health Facilities There are two medical facilities within the boundaries of the Unified Government: Providence Medical Center with 400 licensed beds (234 staffed), and the University of Kansas Medical Center (“KU Medical Center”), with 433 licensed beds. KU Medical Center (Hospital and Research Center) is a multi-dimensional institution with a near 100-year tradition of health care delivery, teaching and research. KU Medical Center’s complex includes more than 40 buildings on a 50-acre campus and, with nearly 6,000 employees, is one of the City’s largest employers. Two hundred and twenty-five medical specialties including cardiology, oncology, high-risk obstetrics, neonatal care, psychiatry, rehabilitation services, two hyperbaric oxygen chambers, plus bone marrow and organ transplantation are housed within KU Medical Center, along with primary and family medical care. Specialized centers and clinics include cardiology, oncology, aging, epilepsy, diabetes, pain management, hearing and balance, impotence, osteoporosis, and reproduction-infertility. In 2007, the KU Medical Center completed construction on the $57 million, 205,000 square-foot Kansas Life Sciences Innovation Center, which will increase the medical centers’ research capabilities. Also in 2007, KU Medical Center received a $11 million grant for the National Institutes of Health to finance a new multidisciplinary biomedical research center. Providence Medical Center offers a full range of hospital services including: inpatient care; 24-hour emergency services; labor, delivery, maternity, nursery, pediatric and gynecological care; inpatient and outpatient surgery; neurosurgery; a Joint Center; a Spine Center, an accredited Diabetes Center; and accredited Sleep Disorders Center; rehabilitation services; radiation therapy; breast cancer screening; oncology care; cardiac care and rehabilitation; inpatient spiritual care; and the Partners in Pain Management Center. In 2007, Providence opened two new physician offices, Providence Care Midtown and Providence Care Bonner Springs, to meet community needs for family practice, obstetrics/gynecology and ear/nose/throat services. In 2008, Providence Medical Center’s main hospital at 82nd and Parallel Pkwy. completed phase I of its $10 million Emergency Services department expansion. Phase I consisted of a new entrance, expanded waiting room and Rapid Medical Evaluation rooms. In early 2009, the second phase of the project was completed. This included a emergency services lounge for first-responders, a decontamination room used for a city-wide disaster and resuscitation rooms. In all, this building project nearly tripled the size of the Providence Emergency Services department, enlarging it from 8,000 square feet to approximately 23,000 square feet. Children’s Mercy Hospitals and Clinics expanded to Kansas City, Kansas with a new clinic known as Children’s Mercy West. This facility opened in 2007 and is located at I-635 and State Ave. This 17,500 square-foot facility is a new construction and the cost to build and equip the facility was $3.3 million.

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Recreational and Cultural Facilities The Unified Government maintains 50 parks with 2,700 acres of recreational land. Park activities include tennis, biking, golf, fishing, track, team sports, picnicking, playgrounds and archery. The Unified Government also provides seven recreation centers with gymnasium, craft and meeting facilities and two additional facilities for community events. The Parks and Recreation Department coordinates organized athletic activities and provides athletic and craft instruction. The Kansas City, Kansas Public Library system offers access to a large collection of books, magazines, newspapers, books-on-tape, CDs, computer software, DVDs, videos, online databases and Internet resources. The Main Library at 625 Minnesota has extensive business and local history collections. The Argentine Library at 2800 Metropolitan has a large Spanish language collection. The West Wyandotte Library at 1737 North 82nd Street has an extensive fine arts collection. The Mr. and Mrs. F. L. Schlagle Library at 4051 West Drive in Wyandotte County Lake Park is an environmental learning center sponsored jointly by the public library, the Kansas City, Kansas School District, the Unified Government of Wyandotte County/Kansas City, Kansas, the Unified Government Parks and Recreation Department and the Wyandotte County Parks Foundation. This facility opened in June 2001 with a small collection of nature guides and access to a wide range of online science and environmental resources. The library also operates a bookmobile that stops throughout the County. All four libraries offer educational and recreational programs for all ages and gallery space for exhibits by area artists. The library system has a staff of more than 100, supplemented by the Friends of the Library organization and volunteers. Residents have access to many cultural and entertainment opportunities in Wyandotte County, including the Kansas Speedway, the nation’s only combined dog and horse racing track, numerous festivals, an outdoor theater, newly renovated convention facilities, Northern League baseball, a 40,000 square-foot indoor water park, a municipal and several private golf courses, and several museums. Cultural, sporting events and recreational opportunities are also plentiful in the Kansas City metropolitan area. Education Area students from kindergarten through high school are provided public education by four unified school districts: Kansas City No. 500, Turner No. 202, Piper No. 203, and Bonner Springs No. 204. Catholic schools account for the majority of private school enrollment. Shown below for the County is total enrollment of the four public school districts and the Catholic Schools. Seven other church-affiliated schools are located in the County and are not included in these enrollment figures. School Enrollment*

*

2009

2008

2007

2006

2005

2004

26,422

26,326

26,328

26,402

26,767

26,909

Enrollment only includes the four public school districts.

Postsecondary educational facilities include the Kansas City, Kansas Community College, Donnelly College, and KU Medical Center.

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GOVERNMENTAL ORGANIZATION AND SERVICES The Unified Government of Wyandotte County/Kansas City, Kansas was created upon the consolidation of the governments of the City of Kansas City, Kansas and Wyandotte County, Kansas effective October 1, 1997. The consolidation was approved by voters of the City and the County on April 1, 1997 and, on March 6, 1998, was upheld by the Kansas Supreme Court in State ex. rel. Tomasic v. The Unified Government of Wyandotte County/Kansas City, Kansas, 264 Kan. 293 (1998). Where appropriate, references to the Unified Government include references to its predecessors, the City and the County. Pursuant to consolidation, the existing governments of the City and the County were replaced by a governing body composed of a Mayor/Chief Executive and a ten-member Board of Commissioners. Each of eight districts nominates and elects one commissioner. Two at-large commissioners are nominated from two countywide districts comprised of the four northernmost and four southern-most districts. The Mayor/Chief Executive has veto power, which can be overridden by a two-thirds majority of the Board of Commissioners. A County Administrator is appointed by the Mayor/Chief Executive, with the consent of the Board of Commissioners, and is directly responsible for the daily functions of the Unified Government. In accordance with the provisions of State law which permitted consolidation, any bonded indebtedness and interest thereof incurred by the City or the County prior to the consolidation remains an obligation of the property subject to taxation for the payment thereof prior to such consolidations (see Authority to Incur Debt and Statutory Debt Limits section). The Unified Government, with a current County population of 153,989, covers 155.7 square miles. It is located on the eastern border of the State and, along with three other Kansas counties and eight Missouri counties, comprises the Kansas City Metropolitan Statistical Area with a population of approximately 1.8 million. Elected Officials Position Joe Reardon

Expiration of Term

Mayor/Chief Executive

April 2009

First District Second District Third District Fourth District Fifth District Sixth District Seventh District Eighth District

April 2009 April 2009 April 2011 April 2011 April 2009 April 2011 April 2009 April 2009

First District Second District

April 2011 April 2009

Commissioners Nathaniel Barnes William J. (Bill) Miller Ann Brandau-Murguia Mark Mitchell Mike Kane Patricia Huggins Pettey Thomas R. Cooley Benoyd M. Ellison Commissioners-At-Large Mark Holland Donald L. DeSeure

Dennis M. Hays was appointed as City Administrator on February 20, 1996. Upon the consolidation of City and County governments, the Board of County Commissioners appointed Mr. Hays County Administrator. The City has employed Mr. Hays since 1976 in various positions.

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Harold T. “Hal” Walker has served as Chief Counsel for the Unified Government of Wyandotte County/Kansas City, Kansas, since October 1, 1997. From 1986, he served as City Attorney for the City of Kansas City, Kansas. Prior to that appointment, he had been an Assistant City Attorney since 1979. Mr. Lew Levin is the current Chief Financial Officer. Employment/Labor Relations As of December 31, 2007, the Unified Government authorized 2,370 full-time equivalent positions by the following program functions: Authorized Positions

Program Public Safety Police Sheriff Fire Emergency Management Business Office

529.90 217.00 439.00 7.00 9.00

Total

1,201.90

Public Works - Total

367.75

Executive and Administrative Support Administration Finance Clerk Human Resources Technology Legal Community Corrections Court System Constituent and Organization Development Procurement and Contract Compliance

38.25 59.60 61.40 17.40 41.20 30.00 49.00 113.50 2.00 8.00

Total

420.35

Parks and Recreation Other County Departments Health Department Community and Neighborhood Programs Transportation

104.85 47.75 102.00 80.50 45.00

Total

380.10

Grand Total

2,370.10

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Authorized position counts since 2001 are as follows: Year

Authorized Positions

2007 2006 2005 2004 2003 2002 2001

2,370 2,364 2,351 2,256 2,221 2,310 2,314

Thirteen unions represent approximately 1,435 Unified Government employees. Eighty-eight percent of the unionized employees are affiliated with five of the major union organizations. The 13 unions representing Unified Government employees are: Bargaining Units Plumbers Local No. 8 (Plumbers) Service Employees International No. 96 (Building Engineers) International Brotherhood of Electrical Workers Local No. 53 (Water Pollution Control Workers) United Food & Commercial Workers International Union Local No. 576 (Police Dispatchers and 911 Operators) Fraternal Order of Police Lodge No. 4 (Patrol Officers, Sergeants, Detectives) Painters District Council No. 3 (Painters) Construction and General Laborers No. 1290 (Laborers and Foremen) Public Service Employee Local No. 1132 (Traffic, Street and Park Maintenance Personnel) Carpenters District Council No. 61 (Carpenters) American Federation of State, County, and Municipal Employees No. 1294 (Clerical, Service, Maintenance and Technical) International Association of Fire Fighters No. 64 (Sworn Fire Fighters and Dispatchers) Fraternal Order of Police Lodge No. 40 (Sheriff and Jail/Deputies) Teamsters Local No. 955 (Sheriff, Jail and Pretrial)

FINANCIAL INFORMATION Employee Retirement Plans The Unified Government has five contributory defined benefit retirement plans covering substantially all of its employees. The Unified Government was required to make contributions to four of the plans for the year ended December 31, 2007.

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KPERS and KPFRS – Plan Description. The Unified Government participates in the Kansas Public Employees Retirement System (KPERS) and the Kansas Police and Fire Retirement System (KPFRS). Both are part of a cost-sharing multiple-employer defined benefit pension plan as provided by Kansas law. KPERS and KPFRS provide retirement benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and amends benefit provisions. KPERS and KPFRS issue a publicly available financial report that includes financial statements and required supplementary information. Funding Policy. State law establishes the KPERS member-employee contribution rate at 4% of covered salary and establishes KPFRS member-employee contribution rate at 7% of covered salary. The employer collects and remits member-employee contributions according to the provisions of section 414(h) of the Internal Revenue Code. State law provides that the employer contribution rates be determined annually based on the results of an annual actuarial valuation. KPERS and KPFRS are funded on an actuarial reserve basis. State law sets a limitation on annual increases in the employer contribution rates. The KPERS employer rate established by statute for calendar year 2007 was 5.5%. The Unified Government’s contributions to KPERS for the years ending December 31, 2007, 2006, and 2005 were $3,046,049, $2,511,699, and $2,022,782, respectively, equal to the statutory required contributions for each year. The KPFRS uniform participating employer rate established for fiscal years beginning in 2007 is 13.32% for Sheriff’s department personnel and 16.82% for police and fire department personnel Employers participating in KPFRS also make contributions to amortize the liability for past service costs, if any, which are determined separately for each participating employer. The Unified Government’s contributions to KPFRS for the years ending December 31, 2007, 2006, and 2005 were $8,699,229, $8,897,874, and $8,068,746, respectively, equal to the statutory required contributions for each year. In 1962, certain individuals elected not to participate in KPERS. Currently, there are three remaining retirees or their spouses receiving benefits under the prior plan maintained by the Unified Government. There are no employees contributing to the plan. The most recent actuarial study was prepared in 1998 and estimated total payments for 1999 through 2030 to be approximately $325,566. The Unified Government has made no provision to fund these payments but includes an estimate of the annual expense in the general fund budget. Payments made to plan retirees for the year ended December 31, 2007 were $46,811. This future payable is included with long-term debt. Other Postemployment 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”). GASB 45 requires that local governments account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. The Unified Government sponsors a single-employer defined benefit healthcare plan that offers lifetime benefits to retirees and their dependents including medical, dental, and vision. Retiree health care coverage to age 65 is mandated under Kansas Statute 12-5040. The Unified Government also offers coverage past age 65 that is secondary to Medicare. Retired employees who do not meet the following employer paid retiree coverage criteria may elect to continue coverage at the retired employee’s own expense. Employees that retired on or before December 1, 2004, who retired with full retirement benefits under KPERS or KPFRS and who are at least 55 years old and have not reached age 65 are

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eligible for the continued payment of coverage. For any employees that retire after January 1, 2005, eligibility for continued coverage under this plan shall only apply to those who are at least 56 years old and have not reached age 65. Insurance The Unified Government has a comprehensive risk management program. This program includes coverage as provided for in the following policies: Property/boiler “all risk,” Prime (employee dishonesty), Excess Worker’s Compensation, Vehicle liability policy for all vehicles owned by the Unified Government and Helipad liability for helipad located on top of Municipal Office Building. In addition to these insurance policies, the Unified Government maintains a self-insurance fund for Worker’s Compensation. The level of that insurance reserve is currently slightly in excess of $1,400,000 and is retained at or near that level through appropriations from the General Fund; Sewer System, Public Levee and Golf Course Enterprise Funds; Special City Street and Highway Fund; and Community Development Block Grant Fund. Budgeting, Accounting and Auditing Procedures State law prescribes the policies and procedures by which the Unified Government prepares its annual budget. By August 25 of each year prior to the new fiscal year beginning on January 1, the governing body must adopt and file the annual budget with the County Clerk and the State Director of Accounts and Reports. The annual budget contains an estimate of the anticipated revenues and the proposed expenditures necessary to meet the Unified Government’s financial needs, detailed by program and object of expenditures. The annual budget must be balanced, where total resources (revenues and prior year savings) must equal obligations. In order to ensure that Kansas public agencies will conduct their financial affairs in a fiscally responsible manner, the State Legislature enacted a cash-basis law in 1933 (K.S.A. 10-1101 to 10-1122), which makes it unlawful for the governing body of any municipality to create any indebtedness in excess of the amount of funds actually on hand in the treasury of such municipality at the time for such purpose, or to authorize the issuance of any order, warrant, or check or other evidence of indebtedness of such municipality in excess of the funds actually on hand in the treasury of such municipality at the time for such purpose. The essence of the cash-basis law is to prohibit municipalities from spending more than they receive annually in operating revenues, and to prevent the issuance of short-term debt to cover operating expenditures. The Kansas Statutes and the Director of Accounts and Reports provide for municipal record keeping in conformance with the cash-basis and budget laws of the State of Kansas. Separate funds are maintained for specific purposes and projects in accordance with state law, the State Division of Accounts and Reports, Department of Administration, bond covenants, tax levies, commitments for grants and ordinances and resolutions. Revenues and expenditures are accounted for and an annual report is produced, showing revenues received, encumbrances and expenditures against budgeted revenues and expenditures. Annual audits of the financial records are performed by a firm of certified public accountants, in accordance with generally accepted auditing standards, and filed on an annual basis with the State Division of Accounts and Reports. Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the Unified Government for its Comprehensive Annual Financial Reports for the fiscal years ending

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December 31, 1999 through 2007. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized report, which conforms to applicable program standards, generally accepted accounting principles, and applicable legal requirements. Annual Operating and Capital Budget The Unified Government finances its annual operating and capital budget needs through local property tax levies, state and federal grant programs, local retailers’ sales tax, franchise fees and utility payment-in-lieu taxes, user fees and regulatory permits, municipal court fines and forfeitures, and other miscellaneous sources. The Unified Government has 42 appropriated funds including General, Public Levee Enterprise, Sewer System Enterprise, Community Development Block Grant, Street and Highways, Parks and Recreation, Alcohol Grants Program, Travel and Tourism, Golf Course Enterprise, 911 Tax, Law Enforcement Trust, Bond and Interest, Appraiser, Elections, Health Department and Aging. The General Fund represents the largest appropriated funding source for both operating and capital expenditures. The amount of 2007 and 2008 revenues for the Unified Government from various sources are shown in the following table (includes General, Special Revenue, and Debt Service Funds): Revenues

Actual 2007

% of Total

Actual 2008

% of Total

Increase/ (Decrease)

Taxes Intergovernmental Charges for Services Fines and Forfeits Interest Income Licenses and Permits Miscellaneous*

$159,195,358 7,793,173 32,908,467 5,816,424 6,096,031 2,483,862 12,059,820

70.3% 3.4 14.5 2.6 2.7 1.1 5.3

$160,521,145 10,566,411 34,349,159 6,272,732 6,267,506 2,357,699 13,886,693

68.5% 4.5 14.7 2.7 2.7 1.0 5.9

$ 1,325,787 2,773,238 1,440,692 456,308 171,475 -126,163 1,826,873

Total

$226,353,135

100.0%

$234,221,345

100.0%

$7,868,210

*

Miscellaneous revenues include “reimbursements” and “other financing sources”.

Funds for payment of the principal and interest on the City’s general obligation bonds are obtained under Kansas statutes solely from ad valorem property taxes upon the taxable tangible property, real and personal, within the corporate boundaries of the City, except for certain projects which are paid from special assessments against the property owners of property benefited by the improvements and tax increment payments collected from property owners located within redevelopment projects. Notwithstanding the fact that only ad valorem property taxes, special assessments and tax increments may be pledged as security for general obligation bonds, it should be noted that the City has, by ordinance, committed 25 percent of the revenues derived from local City and County retailers’ sales taxes to fund economic development capital improvements and has committed a portion of the 911 Use Tax to the debt service of new emergency communication equipment.

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APPENDIX I PROPOSED FORMS OF LEGAL OPINIONS

March 31, 2009

Governing Body Unified Government of Wyandotte County/Kansas City, Kansas Kansas City, Kansas _______________________ _________, _________ Re:

$7,080,000 Municipal Temporary Notes, Series 2009-III, of the Unified Government of Wyandotte County/Kansas City, Kansas, dated March 15, 2009

We have acted as Bond Counsel to the Unified Government of Wyandotte County/Kansas City, Kansas (the “Issuer”), in connection with the issuance of the above-captioned notes (the “Notes”). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. 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 and subject to the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes are valid and legally binding general obligations of the Issuer, payable as to both principal and interest from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas of the Issuer. 2. The interest on the Notes (including any original issue discount properly allocable to an owner of the Notes) is excludable from gross income for federal income tax purposes, is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations and is not taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Notes in order to preserve the exclusion of the interest on the Notes 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 the interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code.

I-1

3.

The interest on the Notes is excluded from computation of Kansas adjusted gross income.

We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Notes (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Notes other than as expressly set forth in this opinion. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. Very truly yours,

I-2

March 31, 2009

Governing Body Unified Government of Wyandotte County/Kansas City, Kansas Kansas City, Kansas _______________________ _________, _________ Re:

$73,280,000 Municipal Temporary Notes, Series 2009-IV, of the Unified Government of Wyandotte County/Kansas City, Kansas, dated March 15, 2009

We have acted as Bond Counsel to the Unified Government of Wyandotte County/Kansas City, Kansas (the “Issuer”), in connection with the issuance of the above-captioned notes (the “Notes”). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. 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 and subject to the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes are valid and legally binding general obligations of the Issuer, payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain improvements, in part from certain tax increments allocated and paid into a separate fund of the Issuer under the provisions of K.S.A. 12-1770 et seq., and in part from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer, excluding the incorporated areas of Bonner Springs, Edwardsville and Lake Quivira, and excluding the unincorporated areas of the Issuer. 2. The interest on the Notes (including any original issue discount properly allocable to an owner of the Notes) is excludable from gross income for federal income tax purposes, is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations and is not taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Notes in order to preserve the exclusion of the interest on the Notes 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 the interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code.

I-3

3.

The interest on the Notes is excluded from computation of Kansas adjusted gross income.

We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Notes (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Notes other than as expressly set forth in this opinion. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. Very truly yours,

I-4

March 31, 2009

Governing Body Unified Government of Wyandotte County/Kansas City, Kansas Kansas City, Kansas ________________ __________, __________ Re:

$300,000 Municipal Temporary Notes, Series 2009-V, of the Unified Government of Wyandotte County/Kansas City, Kansas, dated March 15, 2009

We have acted as Bond Counsel to the Unified Government of Wyandotte County/Kansas City, Kansas (the “Issuer”), in connection with the issuance of the above-captioned notes (the “Notes”). In this capacity, we have examined the law and the certified proceedings, certifications and other documents that we deem necessary to render this opinion. 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 and subject to the foregoing, we are of the opinion, under existing law, as follows: 1. The Notes are valid and legally binding general obligations of the Issuer, payable as to both principal and interest from the proceeds of general obligation bonds of the Issuer, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. 2. The interest on the Notes (including any original issue discount properly allocable to an owner of the Notes) is excludable from gross income for federal income tax purposes, is not an item of tax preference for purposes of computing the federal alternative minimum tax imposed on individuals and corporations and is not taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on certain corporations. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Notes in order to preserve the exclusion of the interest on the Notes 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 the interest on the Notes to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Notes. The Notes have not been designated as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code. 3.

The interest on the Notes is excluded from computation of Kansas adjusted gross income.

I-5

We express no opinion regarding the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Notes (except to the extent, if any, stated in the Official Statement). Further, we express no opinion regarding tax consequences arising with respect to the Notes other than as expressly set forth in this opinion. The rights of the owners of the Notes and the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by equitable principles, whether considered at law or in equity. This opinion is given as of its date, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may come to our attention or any changes in law that may occur after the date of this opinion. Very truly yours,

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APPENDIX II 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%

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(6)

Real property used for commercial and industrial purposes and buildings and other improvements located upon land devoted to agricultural use ......................... 25%

(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 taxes pursuant to law enacted prior to January 1, 1985 .................................................... 20%

(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 straightline 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

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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. 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 III EXCERPT OF 2007 ANNUAL FINANCIAL REPORT The following includes an excerpt of the audited 2007 financial report of the Unified Government. It does not purport to be a complete statement of the financial position, and is qualified in its entirety by reference to and should be read in conjunction with the complete Annual Financial Report which is available on the web at www.wycokck.org.

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