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NOTICE OF SALE $975,000

(subject to change) GENERAL OBLIGATION BONDS

SERIES 2010-A OF

CITY OF LANSING, KANSAS (PAYABLE FROM UNLIMITED AD VALOREM TAXES)

Bids. Written bids will be received by the City Finance Director of City of Lansing, Kansas (the “City”), on behalf of the governing body at the address set forth below, until 11:00 a.m., Central Standard Daylight Savings Time on:

THURSDAY, JUNE 17, 2010

for the purchase of $975,000 principal amount General Obligation Bonds, Series 2010-A (the “Bonds”) of the City. All bids will be publicly opened and read at that time and place and will be presented to the City’s governing body during its regularly scheduled meeting that same day at 7:00 PM, or as soon thereafter as the agenda allows, whereupon the governing body will take action upon the bids received at that time. No oral or auction bids will be considered. THE BONDS

Terms of the Series 2010-A Bonds. The Bonds will be dated July 1, 2010, (the “Dated Date”) and will

mature serially on September 1 in the years and in the amounts set forth below.

Principal Principal Due Amount Due Amount

2011 $45,000 2019 $65,000 2012 55,000 2020 70,000 2013 55,000 2021 70,000 2014 55,000 2022 75,000 2015 60,000 2023 75,000 2016 60,000 2024 80,000 2017 65,000 2025 80,000 2018 65,000

The Bonds will bear interest from the date thereof at rates to be determined when the Bonds are sold as provided herein, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2011 (the “Interest Payment Dates”). The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. Place of Payment and Bond Registration. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the “Paying Agent” and “Bond Registrar”). The principal of each Bond will be payable at maturity or earlier redemption upon presentation and surrender at the principal office of the Paying Agent. Interest on each Bond will be payable to the owners thereof whose names are on the registration books of the Bond Registrar as of the fifteenth day (whether or not a business day) next preceding each Interest Payment Date or in the case of an interest payment to any owner of $500,000 or more in aggregate principal amount of Bonds, by wire transfer to such owner upon written notice given to the Bond Registrar by such owner, not less than 15 days prior to the Record Date for such interest, containing the wire transfer address (which shall be in the continental United States). The Bonds will be registered pursuant to a plan of registration approved by the City and the Attorney General of the State of Kansas. Book-Entry Only System. The Bonds will initially be registered in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York, to which payments of principal of and interest on the Bonds will be made. Individual purchases of Bonds will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Bonds purchased. It is anticipated that during the terms of the Bonds, Depository Trust Company will make book-entry transfers among its participants and receive payments on the Bonds from the City and

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transmit payment of principal of, and interest on, the Bonds to its Participants for subsequent distribution to beneficial owners of the Bonds. Please refer to the Preliminary Official Statement for the Bonds and the section titled “Book-Entry Only System for Bonds” for a description of DTC practices with respect to book-entry securities. Optional Redemption. At the option of the City, the Bonds maturing in the years 2019 and thereafter may be called for redemption and payment prior to maturity on September 1, 2018, or thereafter, in whole, or in part (selection of such bonds to be designated by the City in such equitable manner as it may determine) at any time, at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption. Mandatory Redemption. A bidder may elect to have all or a portion of the Bonds scheduled to mature in 2019 to 2030 issued as term bonds (the “Term Bonds’) scheduled to mature in the latest of said consecutive years and subject to mandatory redemption requirements consistent with the schedule of serial maturities set forth above, subject to the following conditions: (a) not less than all Bonds of the same maturity shall be converted to Term Bonds with mandatory redemption requirements; and (b) a bidder shall make an election by completing the applicable paragraph on the Bond Form. Redemption Procedures. Whenever the City is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than $5,000, if less than all of the Bonds then outstanding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond in the denomination of $5,000. As long as the book-entry system applies to the Bonds, notice of redemption is to be mailed solely to the Depository Trust Company not less than 30 days prior to the date set for redemption in accordance with the procedures set forth in the letter of representations among the City and Depository Trust Company. See “Book-Entry Only System for Bonds” in the Preliminary Official Statement for a description of Depository Trust Company’s practices with respect to redemption notices. If the book-entry only system is discontinued, the following notice of redemption procedures will apply: unless waived by any owner of the Bonds to be redeemed, if the City elects to call any of the Bonds for redemption and payment prior to the maturity thereof, the City shall cause the Bond Registrar to give written notice of its intention to call and pay said Bonds on a specified date, the same being described by maturity, said notice to be mailed by United States first class mail addressed to the owners of said Bonds, to be mailed not less than 30 days prior to the date fixed for redemption. The City shall also give such additional notice as may be required by Kansas law or regulation of the Securities and Exchange Commission in effect as of the date of such notice. If any Bond is called for redemption and payment, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are available for its payment at the specified redemption price. Authority, Purpose and Security. The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the state of Kansas, including particularly K.S.A. §10-101a, K.S.A. §10-620 et seq., K.S.A. §§12-685 & 12-6a01 et seq. inclusive, all as amended and supplemented, for the purpose of paying a portion of the cost of certain sanitary sewer improvements, all located within the City. The Bonds shall be general obligations of the City payable as to both principal and interest in part from special assessments levied upon property benefited by the sanitary sewer improvements and in part from lawfully available funds of the City, and if not so paid then from ad valorem taxes which may be levied without limitation as to rate or amount upon all the tangible taxable property, real and personal, with the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same become due. ADDITIONAL SALE PARTICULARS Conditions of Bids-Bonds. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: The same rate shall apply to all Bonds of the same maturity year. Each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%. No interest rate may exceed a rate equal to the index of the 10-year Treasury Bond published by THE BOND BUYER, in New York, New York, on the Monday preceding the day on which the Bonds are sold, plus 5%. The difference between the highest rate specified and the lowest rate specified cannot exceed 2.500%. No bid of less than the entire par value of the Bonds and accrued interest thereon to the date of delivery will be considered and no supplemental interest payments will be considered. Each bid shall specify the total interest cost (expressed in dollars) during the term of the Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost (expressed in dollars) on the basis of such bid and

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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 Bonds, it will provide the certification as to initial offering prices described under the caption “Certification as to Offering Price” in this Notice. Submission of Bids. Bids may be submitted in sealed envelopes addressed to the City Finance Director, and marked “Proposal for General Obligation Bonds, Series 2010-A” or by telefacsimile, as described below, or, via the Parity electronic bid system. Bids may be submitted by mail or delivered in person to the City Finance Director and all bids must be received no later than 11:00 a.m. C.S.D.S.T., on Thursday, June 17, 2010. Telefacsimile bids must be submitted to (913) 727-1538, Attn: Jaslyn Frett, City Finance Director. Bidders who wish to confirm receipt by the City of a telefacsimile bid may telephone the City Finance Director at (913) 727-3233. The City will not accept responsibility for inaccurate bids submitted by telefacsimile transmission, nor for the inability to access the facsimile number before the indicated sale time. The City’s telefacsimile facilities are limited and bidders using them should plan to allow time to compensate for this limitation. The deadline for telefacsimile bids is based on the time the transmission is printed through the City’s telefacsimile facilities as opposed to the time the transmission is sent by the bidder. Bidders are advised to allow time for the transmission to be received. Bids received after the deadlines shown above or which fail to comply with the other requirements of this paragraph may not be considered by the City. Electronic bids via PARITY must be submitted in accordance with its Rules of Participation, as well as the provisions of this Notice of Note Sale. If provisions of this Notice of Note Sale conflict with those of PARITY, this Notice of Note Sale shall control; this includes the deadline for submission of Bids. (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 (212-849-5000) and from the following website: www.newissuehome.i-deal.com). Good Faith Deposit for the Bonds. Each bid for the Bonds shall be accompanied by a cashier’s or certified check drawn on a bank located in the United States of America, or a financial surety bond (the “Surety Bond”) in the amount of 2% of the principal amount of the Bonds, payable to the order of the City to secure the City from any loss resulting from the failure of the bidder to comply with the terms of its bid. If a Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Kansas, and such bond must be submitted to the City before the bid opening or accompany the bid. The Surety Bond should identify each bidder whose good faith deposit is guaranteed by the Surety Bond. If the Bonds are awarded to a bidder using a Surety Bond then the successful bidder will be required to submit its good faith deposit to the City by wire transfer of such amount as instructed by the City or delivered in the form of a cashier’s check, in either case, not later than 1:00 p.m. C.S.D.S.T. on the business day following the sale. If the good faith deposit is not received by that time, the Surety Bond will be drawn on by the City to satisfy the good faith deposit requirement. Good faith checks submitted by unsuccessful bidders will be returned by regular mail, unless the bidder makes other arrangements. If a bid is accepted, the good faith deposit will be held by the City until the bidder has complied with all of the terms and conditions of this Notice at which time the good faith deposit will be returned to the successful bidder or deducted from the purchase price of the Bonds, at the option of the City. If a bid is accepted but the City fails to deliver the Bonds to the bidder in accordance with the terms and conditions of this Notice, the good faith deposit will be returned to the bidder in complete satisfaction of all obligations due to the bidder. If a bid is accepted but the bidder defaults in the performance of any of the terms and conditions of this Notice, the good faith deposit will be cashed by the City, and, the City reserves the right to pursue any and all actual or consequential damages as result of the bidder’s default. No interest will be paid upon the successful bidder’s good faith deposit. Basis of Award. The award of the Bonds will be made on the basis of the lowest true interest cost (“TIC”), which will be determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds, from the payment dates to the Dated Date, produces an amount equal to the price bid, including any adjustments for premium if any. Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months. Bidders are requested to provide a calculation of the TIC for the Bonds on the Official Bid Form, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the Issuer of the Issuer. The Issuer or its Financial Advisor will verify the TIC based on such bids. If there is any discrepancy between the TIC specified and the bid price and interest rates specified, the specified bid price and interest rates shall govern and the TIC specified in the bid shall be adjusted accordingly. If two or more proper bids providing for

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identical amounts for the lowest TIC are received, the governing body of the Issuer will determine which bid, if any, will be accepted, and its determination is final. The City reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Bid Forms. All bids must be made on the forms which accompany this Notice. Additional bid forms may be obtained from George K. Baum & Company, the City’s Financial Advisor, or from the City Finance Director. No additions or alterations in such forms may be made, and any erasures thereon may cause rejection of any bid. Bond Rating. Moody’s Investors Service has assigned “A1” rating to the Bonds and reaffirmed a rating of “A1” to the City’s outstanding general obligation bonds. Any explanation as to the significance of such rating may be obtained only from the rating agency. Ratings are not recommendations to buy, sell, or hold the Bonds, and such rating may be subject to revision or withdrawal at any time by the rating agency. Any downward revision or withdrawal of the rating may have an adverse affect on the market price of the Bonds. CUSIP Numbers. It is anticipated that CUSIP identification numbers will be printed on or assigned to the Bonds, but neither the failure to print such number on or assign such number to any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the terms of the purchase contract. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds will be paid by the City. Delivery and Payment. The City will pay for printing the Bonds and will deliver the same properly prepared, executed and registered without cost to the successful bidder through the facilities of the Depository Trust Company in New York, New York, on or about July 8, 2010. Delivery elsewhere will be made at the expense of the successful bidder. The successful bidder will be furnished with one certified transcript of the proceedings evidencing the authorization and issuance of the Bonds and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds must be made in federal reserve funds or other immediately available funds subject to use by the City by 9:00 a.m., C.S.D.S.T on the day of delivery. Certification as to Offering Prices. To provide the City 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 Bond Counsel no later than noon June 21, 2010, a certificate regarding the “issue price” of the Bonds (as defined in Section 148 of the Code), reflecting the initial offering prices (excluding accrued interest and expressed as dollar prices) at which a substantial amount (i.e., 10% or more) of the Bonds of each maturity have been or are expected to be sold to the public. Continuing Disclosure. The City (the “Obligated Person”) will agree in the resolution authorizing the Bonds to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission, (i) on or prior to September 15 of each year, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, generally consistent with the information contained or cross-referenced in the Official Statement, (ii) timely notice of the occurrence of certain material events with respect to the securities and (iii) timely notice of a failure by an obligated person under the Rule (of which the Obligated Person has knowledge) to provide the required annual financial information on or before the date specified in (i) above. The Successful Bidder(s) Underwriter(s)’s obligation to purchase the Bonds shall be conditioned upon its receiving, at or prior to the delivery of the Bonds, in form and substance reasonably satisfactory to the Underwriter(s), evidence that the Obligated Person has made the continuing disclosures undertaking set forth above in a written agreement or contract for the benefit of the owners. Official Statement. The City has prepared a Preliminary Official Statement, “deemed final” by the City except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which accompany this Notice and which also may be obtained from the Clerk or from Bond Counsel. Upon the sale of the Bonds the City will furnish the successful bidder(s), within seven business days of the award of the bid, 30 copies without additional cost. Additional copies may be ordered by the successful bidder at its expense. Assessed Valuation and Indebtedness. The total equalized assessed valuation of the taxable tangible property within the City for computation of bonded debt limitations for the year 2009 is $84,698,337.00. The total general obligation bonded indebtedness of the City as of the date of the Bonds (including the Bonds being sold) is $12,910,000. The City

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has Temporary Notes outstanding in the amount of $1,210,000 all of which will be paid with Bond proceeds and other available funds. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of Robert J. Perry, Esq., Auburn, Kansas, Bond Counsel, which opinion will be furnished and paid for by the City and delivered to the successful bidder when the Bonds are delivered. The opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross income for federal income tax purposes and the exclusion of interest on the Bonds from computation of Kansas adjusted gross income for individuals. Please refer to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on the Bonds. Additional Information. Additional information regarding the Bonds may be obtained from the City Finance Director or from George K. Baum & Company, 4801 Main Street, Suite 500, Kansas City, Missouri, 64112, 816.474.1100. DATED June 1, 2010.

CITY OF LANSING, KANSAS

/s/ Jaslyn Frett Jaslyn Frett, City Finance Director 800 First Terrace Lansing, Kansas 66043 (913) 727-3233 (913) 727-1538 (fax)

OFFICIAL BID FORM PROPOSAL FOR THE PURCHASE OF

GENERAL OBLIGATION BONDS, SERIES 2010-A CITY OF LANSING, KANSAS

TO: Jaslyn Frett, Director of Finance Tax Identification No. 48-6100171 June 17, 2010 City of Lansing, Kansas For $975,000 principal amount of General Obligation Bonds, Series 2010-A, of City of Lansing, Kansas, to be dated July 1, 2010, as described in your Notice of Sale, the Bonds will bear interest as follows: Maturity Principal Interest Maturity Principal Interest September 1 Amount Rate September 1 Amount Rate

2011 $45,000 ______ % 2019 $65,000 ______ % 2012 55,000 ______ % 2020 70,000 ______ % 2013 55,000 ______ % 2021 70,000 ______ % 2014 55,000 ______ % 2022 75,000 ______ % 2015 60,000 ______ % 2023 75,000 ______ % 2016 60,000 ______ % 2024 80,000 ______ % 2017 65,000 ______ % 2025 80,000 ______ % 2018 65,000 ______ % we will pay par value of the Bonds plus accrued interest to the date of delivery, plus a total premium in the amount set forth below. Total interest cost to maturity at the rates specified ..................................................... $_____________________ Total premium (if any) .......................................................................................... $_____________________ Net interest cost .......................................................................................... $_____________________ True Interest Cost .......................................................................................... ___________________% The Bidder elects the following Term Bonds subject to mandatory redemption as set forth above: Maturity Date: Years: Principal Amount: September 1, ______ _______ to _________ $_____________ September 1, ______ _______ to _________ $_____________ September 1, ______ _______ to _________ $_____________ This proposal is subject to all terms and conditions contained in said Notice of Sale, and if we are the successful bidder, we will comply with all the provisions contained in the Notice of Sale. A cashier’s check or a qualifying financial surety bond in the amount equal to two percent (2%) of the principal amount of the Bonds payable to the order of City of Lansing, Kansas, accompanies this proposal as an evidence of good faith. The acceptance of this proposal by the City shall constitute a contract between the City and the successful bidder. If this information is received by telefacsimile, the telefacsimile and the originally executed bid form submitted to the City by the bidder shall together constitute the bid, and the bidder authorizes the City to transfer such information to the originally executed bid form or to attach the facsimile to such bid form and to seal such bid prior to the bid opening.

Submitted by: _____________________________

[LIST ACCOUNT MEMBERS ON REVERSE] By: _____________________________________

Telephone No. ____________________________

ACCEPTANCE

The above proposal is accepted by action of the City Council on June 17, 2010. Attest: _________________________________ _____________________________________ Sunshine Petrone, Clerk (Seal) Kenneth W. Bernard, Mayor NOTE: No additions or alterations in this proposal form shall be made, and any erasures may cause rejection of any bid. Sealed

bids may be filed with the City, in the manner described in the Notice of Sale, at or prior to the deadlines stated therein. Any bid received after such time will be returned to the bidder unopened.

Account Members:

____________________________________

____________________________________

_____________________________________

_____________________________________

_____________________________________

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PRELIMINARY OFFICIAL STATEMENT DATED MAY 20, 2010

In the opinion of Robert J. Perry, Esq., Bond Counsel, under existing law and assuming continued compliance with certain requirements of the Internal Code of 1986, as amended (the “Code”), the interest on the Bonds [(including any original issue discount properly allocable to the owners thereof]) is excludable from gross income for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is exempt from Kansas income taxation for individuals. The Bonds are designated “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code. See LEGAL MATTERS - “Opinion of Bond Counsel” herein. New Issue Moody’s Rating- “A1” Book-Entry Only Bank Qualified

$975,000 (subject to change)

CITY OF LANSING, KANSAS GENERAL OBLIGATION BONDS

SERIES 2010-A Dated: July 1, 2010 Due: As Shown Herein The General Obligation Bonds, Series 2010-A (the “Bonds”) will be issued by the City of Lansing, Kansas (the “City” or the “Issuer”) as fully registered bonds in the denominations of $5,000 or any integral multiple thereof. The Bonds will be registered in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New York, to which payment of principal and interest will be made. Individual purchases of the Bonds will be made in book-entry only form. Purchasers will not receive certificates representing their interests in Bonds purchased. Principal of the Bonds will be payable on each September 1 in the years shown herein. Interest on the Bonds will be payable on each March 1 and September 1, beginning on March 1, 2011. Principal and interest on the Bonds will be paid from moneys available therefore under the Bond Resolution (herein defined) by the State Treasurer of Kansas, as paying agent and registrar, referred to hereinafter as the “Paying Agent” and “Registrar”.

MATURITY SCHEDULE

Base CUSIP(1) Maturity Amount Rate Yield 516360 09-01-11 $45,000 09-01-12 55,000 09-01-13 55,000 09-01-14 55,000 09-01-15 60,000 09-01-16 60,000 09-01-17 65,000 09-01-18* 65,000

Base CUSIP(1) Maturity Amount Rate Yield 516360 09-01-19* $65,000 09-01-20* 70,000 09-01-21* 70,000 09-01-22* 75,000 09-01-23* 75,000 09-01-24* 80,000 09-01-25* 80,000

*The Bonds maturing on or after September 1, 2019 are subject to optional redemption prior to maturity on September 1, 2018 or thereafter, in whole or in part, at any time at a price of 100% of the principal amount of Bonds being redeemed plus accrued interest to the date of redemption. [The Term Bonds are also subject to mandatory redemption.] See THE BONDS –”Redemption Provisions” herein.

The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS - “Security for the Bonds” herein. The Bonds are offered when, as, and if issued by the Issuer and received by the Underwriter, subject to the approval of legality by Robert J. Perry, Esq., Bond Counsel. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about July 8, 2010.

BIDS FOR THE PURCHASE OF THE BONDS WILL BE RECEIVED PURSUANT TO THE NOTICE OF BOND SALE:

On or before 11:00 a.m., Central Daylight Time On Thursday, June 17, 2010

(1)CUSIP numbers have been assigned to this issue by Standard & Poor’s CUSIP Service Bureau, a division of the McGraw-Hill Companies, Inc., and are

included solely for the convenience of the Owners of the Bonds. Neither the Issuer nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth above.

THIS COVER PAGE CONTAINS INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.

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CITY HALL

800 1st Terrace Lansing, Kansas 66043

Telephone (913) 727-3233

CITY COUNCIL

Kenneth W. Bernard, Mayor Andi Pawlowski, Council President Donald Studnicka, Council Member

Delmar “Dee” Hininger, Jr., Council Member Harland Russell, Council Member

Janette Labbee-Holdeman, Council Member David Trinkle, Jr., Council Member

Tom Smith, Council Member Billy Blackwell, Council Member

ADMINISTRATIVE OFFICIALS

Michael W. Smith, City Administrator Jaslyn Frett, Finance Director Sunshine Petrone, City Clerk

CITY ATTORNEY

Greg Robinson, Esq. Lansing, Kansas

BOND COUNSEL

Robert J. Perry, Esq. Auburn, Kansas

CERTIFIED PUBLIC ACCOUNTANT

Wendling Noe Nelson & Johnson LLC Topeka, Kansas

FINANCIAL ADVISOR

George K. Baum & Company Kansas City, Missouri

No person has been authorized by the Issuer or the Successful Bidder to give any information or to make

any representations with respect to the Bonds to be issued, other than those contained in this Official Statement, and if given or made, such other information or representations not so authorized must not be relied upon as having been given or authorized by the Issuer or the Successful Bidder. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.

The information contained herein has been furnished by the Issuer and other sources which are believed to be reliable; however, such information is not guaranteed as to accuracy or completeness. All quotations from and summaries and explanations of provisions of laws and documents herein do not purport to be complete and reference is made to such laws and documents for full and complete statements of their provisions. Information, estimates and expressions of opinion herein are subject to change without notice and neither the delivery or this Official Statement nor any sale of the Bonds, shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer since the respective dates as of which information is given herein.

TABLE OF CONTENTS Page Page INTRODUCTION .................................................. 1 General .................................................................. 1 Additional Information ......................................... 1

THE BONDS .......................................................... 2 Description ............................................................ 2 Redemption Provisions ......................................... 2 Designation of Paying Agent and Bond Registrar 3 Method and Place of Payment of the Bonds ......... 3 Payments Due on Saturdays, Sundays, and Holidays 4 Registration, Transfer, and Exchange of Bonds.... 4 Mutilated, Lost, Stolen or Destroyed Bonds ......... 4 Nonpresentment of Bonds .................................... 4 Authority for the Bonds ........................................ 5 Security for the Bonds ......................................... 5

THE DEPOSITORY TRUST COMPANY ............ 5 Book-Entry Bonds and Notes: Securities Depository ........................................................... 7 THE FINANCING PLAN ...................................... 8 The Projects .......................................................... 8 SOURCES AND USES OF FUNDS ...................... 8 FINANCIAL OVERVIEW .................................... 9 CITY OF LANSING, KANSAS ............................ 10 Location and Size ................................................. 10 Organization and Government .............................. 10 Leavenworth County Fire District #1 ................... 10 Kansas Public Employees Retirement System (KPERS) ................................................ 10 Kansas Police and Fire Retirement (KP&F) ......... 11 Population ............................................................. 11 Economy ............................................................... 11 Major Employers .................................................. 11 Unemployment ..................................................... 12 Educational Facilities ............................................ 12 Transportation and Communication Facilities ...... 12 Public Utilities ...................................................... 12 Medical and Health Facilities ............................... 12 Banking Institutions .............................................. 13 Recreational Facilities ........................................... 13

DEBT STRUCTURE ............................................. 13 Current Indebtedness ............................................ 13 Overlapping Indebtedness .................................... 14 Annual General Obligation Bond Payments ........ 14 Legal Debt Limits ................................................. 15 Future Borrowing Plans ........................................ 15 Debt Payment Record ........................................... 15

FINANCIAL INFORMATION.............................. 15 Property Valuation ................................................ 15 Estimated Actual Valuation .................................. 15 Largest Taxpayers ................................................ 16 Property Tax Collections ...................................... 16 Sales and Use Tax ................................................ 17 Property Tax Levies ............................................. 17 Building Permits ................................................... 17 Budgeting Procedures ........................................... 18 Appraisal and Assessment Procedures ................. 18 Property Assessment Rates ................................... 18 Equalization Ratios ............................................... 19

LEGAL MATTERS ............................................... 19 TAX MATTERS .................................................... 19 RATING ................................................................. 20 FINANCIAL ADVISOR ........................................ 20 UNDERWRITING ................................................. 20 ABSENCE OF MATERIAL LITIGATION .......... 20 CONTINUING DISCLOSURE COVENANT ...... 21 AUTHORIZATION OF OFFICIAL STATEMENT 22 APPENDIX A – Financial Statements

$975,000 (subject to change)

CITY OF LANSING, KANSAS GENERAL OBLIGATION BONDS

SERIES 2010-A

INTRODUCTION General This Official Statement is provided for the purpose of presenting certain information in connection with the issuance by the City of Lansing, Kansas (the “Issuer” and the “City”), of its $975,000 (subject to change) General Obligation Bonds, Series 2010-A (the “Bonds”) dated July 1, 2010. The Bonds are being issued to provide long-term financing for public street and sanitary sewer improvements, and will also pay the costs associated with the issuance of the Bonds. See THE FINANCING PLAN herein.

The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. See THE BONDS - “Security for the Bonds” herein. APPENDIX A, containing selected financial data relating to the Issuer, is an integral part of this Official Statement and should be read in its entirety.

All financial and other information presented herein has been compiled by the City’s Financial Advisor, George K. Baum & Company, Kansas City, Missouri (the “Financial Advisor”). Information has been provided by the Issuer unless otherwise indicated. 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 Issuer. Bond Counsel has not assisted in the preparation of nor reviewed this Official Statement, except to the extent described in the section titled LEGAL MATTERS, and accordingly expresses no opinion as to the accuracy or sufficiency of any other information contained herein. Additional Information

Additional information regarding the Issuer or the Bonds may be obtained from George K. Baum & Company, 4801 Main Street, Kansas City, Missouri 64112, 816-474-1100.

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THE BONDS Description

The Bonds will be issued in the principal amount shown on the front cover, will be dated July 1, 2010, and will consist of fully registered book-entry only bonds without coupons. When issued, the Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Purchases of the Bonds will be made in book-entry only form as described below (without certificates), in the denomination of $5,000 or any integral multiple thereof. The Bonds will mature, subject to redemption as described herein, in the years and in the principal amounts set forth on the cover page of this Official Statement. Interest on the Bonds will be payable semiannually on March 1 and September 1 in each year, beginning March 1, 2011. Interest will be paid on the basis of a 360-day year consisting of twelve 30-day months. Redemption Provisions

Optional Redemption. The Bonds maturing on or before September 1, 2018 shall become due without option of prior payment. At the option of the City, the Bonds maturing on or after September 1, 2019, may be called for redemption and payment prior to maturity on September 1, 2018, and thereafter, in whole or in part at any time, at a redemption price of 100% of the principal amount thereof plus accrued interest to the date fixed for redemption. [ Mandatory Redemption. The Bonds maturing ____________ (the “Term Bond”) shall be subject to mandatory redemption and payment prior to its stated maturity pursuant to the mandatory redemption requirements hereinafter set forth, at a redemption price equal to 100% of the principal amount thereof, plus accrued interest to the redemption date. The City shall redeem on September 1 in each year the following principal amounts of such Term Bond: Principal Amount Year * *Final maturity of Term Bond]

Selection of Bonds to be Redeemed. Specific annual maturities and the amounts thereof of Bonds called for redemption in advance of their stated maturities may be selected by the City as it determines. In the event of a partial redemption of Bonds of a maturity, the Bonds to be redeemed will be selected in such manner as the Paying Agent acting on behalf of the City may deem equitable. Bonds will be redeemed in integral multiples of $5,000. If less than all Bonds in a maturity are called for redemption, the City or the Paying Agent shall, in the case of Bonds in denominations greater than $5,000, treat each $5,000 of face value as though it were a separate Bond.

Notice and Effect of Redemption. If the City elects to call any Bonds for redemption and payment prior to

the maturity thereof, the City will give the Paying Agent and the Underwriter written notice of its intention to redeem said Bonds on a specified date, the same being described by maturity. The Paying Agent will notify holders of the Bonds of such call by mailing, or causing to be mailed, the notice of call to the bondholders by first class mail at least thirty days prior to the redemption date. Interest on any Bond so called for redemption and payment will cease from and after the date for which such call is made, provided funds are available for payment thereof.

All official notices of redemption shall be dated and shall contain the following information: (a) the Redemption Date; (b) the Redemption Price; (c) if less than all Outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (d) a statement that on the Redemption Date the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after the Redemption Date; and (e) the place where such Bonds are to be surrendered for payment of the Redemption Price, which shall be the principal office of the Paying Agent. The failure of any Owner to receive notice given as heretofore provided or an immaterial defect therein shall not invalidate any redemption.

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Prior to any Redemption Date, the Issuer shall deposit with the Paying Agent an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds that are to be redeemed on such Redemption Date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall become due and payable on the Redemption Date, at the Redemption Price therein specified, and from and after the Redemption Date (unless the Issuer defaults in the payment of the Redemption Price) such Bonds or portion of Bonds shall cease to bear interest.

So long as DTC is effecting book-entry transfers of the Bonds, the Paying Agent shall provide the notices

specified above to DTC. It is expected that DTC will, in turn, notify the DTC Participants and that the DTC Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a DTC Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Paying Agent, a DTC Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. In addition to the foregoing notice, the Issuer shall provide such notices of redemption as are required by the Disclosure Instructions. The Paying Agent is also directed to comply with any mandatory or voluntary standards then in effect for processing redemptions of municipal securities established by the State or the Securities and Exchange Commission. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond. Designation of Paying Agent and Registrar The Issuer will at all times maintain a paying agent and registrar meeting the qualifications set forth in the Bond Resolution. The Issuer reserves the right to appoint a successor paying agent or registrar. No resignation or removal of the paying agent or registrar shall become effective until a successor has been appointed and has accepted the duties of paying agent or registrar. Every paying agent or registrar appointed by the Issuer shall at all times meet the requirements of Kansas law and shall be approved by the Bond Insurer. The Treasurer of the State of Kansas, Topeka, Kansas (the “Registrar” and “Paying Agent”) has been designated by the Issuer as paying agent for the payment of principal of and interest on the Bonds and registrar with respect to the registration, transfer and exchange of Bonds. Method and Place of Payment of the Bonds The principal of, or Redemption Price, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. The principal or Redemption Price of each Bond shall be paid at Maturity to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal office of the Paying Agent. The interest payable on each Bond on any Interest Payment Date shall be paid to the Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest (a) by check or draft mailed by the Paying Agent to the address of such Owner shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Owner; or (b) in the case of an interest payment to Cede & Co. or any Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Owner upon written notice given to the Registrar by such Owner, not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank, ABA routing number and account number to which such Owner wishes to have such transfer directed. SO LONG AS CEDE & CO., REMAINS THE REGISTERED OWNER OF THE BONDS, THE PAYING AGENT SHALL TRANSMIT PAYMENTS TO THE SECURITIES DEPOSITORY, WHICH SHALL REMIT SUCH PAYMENTS IN ACCORDANCE WITH ITS NORMAL PROCEDURES. See “BOOK-ENTRY BONDS; SECURITIES DEPOSITORY.”

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Payments Due on Saturdays, Sundays and Holidays In any case where a Bond Payment Date is not a Business Day, then payment of principal, Redemption Price or interest need not be made on such Bond Payment Date but may be made on the next succeeding Business Day with the same force and effect as if made on such Bond Payment Date, and no interest shall accrue for the period after such Bond Payment Date. Registration, Transfer and Exchange of Bonds As long as any of the Bonds remain Outstanding, each Bond when issued shall be registered in the name of the Owner thereof on the Bond Register. Bonds may be transferred and exchanged only on the Bond Register as hereinafter provided. Upon surrender of any Bond at the principal office of the Registrar, the Registrar shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Registrar, duly executed by the Owner thereof or by the Owner’s duly authorized agent. In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Registrar shall authenticate and deliver Bonds in accordance with the provisions of the Bond Resolution. The Issuer shall pay the fees and expenses of the Registrar for the registration, transfer and exchange of Bonds. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Registrar, are the responsibility of the Owners of the Bonds. In the event any Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Owner sufficient to pay any governmental charge required to be paid as a result of such failure. The Issuer and the Registrar shall not be required (a) to register the transfer or exchange of any Bond that has been called for redemption after notice of such redemption has been mailed by the Paying Agent and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the Issuer of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest. Mutilated, Lost, Stolen or Destroyed Bonds If (a) any mutilated Bond is surrendered to the Registrar or the Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Bond, and (b) there is delivered to the Issuer and the Registrar such security or indemnity as may be required by each of them, then, in the absence of notice to the Issuer or the Registrar that such Bond has been acquired by a bona fide purchaser, the Issuer shall execute and, upon the Issuer’s request, the Registrar shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same Stated Maturity and of like tenor and principal amount. If any such mutilated, destroyed, lost or stolen Bond has become or is about to become due and payable, the Issuer, in its discretion, may pay such Bond instead of issuing a new Bond. Upon the issuance of any new Bond, the Issuer may require the payment by the Owner of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent) connected therewith. Nonpresentment of Bonds If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the Issuer to the Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Bond Resolution or on, or with respect to, said Bond. If any Bond is not presented for payment within four (4) years following the date when such Bond becomes due at Maturity, the Paying Agent shall

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repay to the Issuer the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the Issuer, and the Owner thereof shall be entitled to look only to the Issuer for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the Issuer shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Authority for the Bonds

The Bonds are being issued pursuant to and in full compliance with the Constitution and statutes of the State of Kansas, including K.S.A. §10-101 to 10-125, inclusive, K.S.A. §10-620 et seq., and K.S.A. §§12-685 & 12-6a01 et seq., all as amended and supplemented from time to time (the “Act”), and an ordinance passed by the governing body of the Issuer and a resolution adopted by the governing body of the Issuer on _______, 2010 (jointly the “Bond Resolution”). Security for the Bonds The Bonds shall be general obligations of the Issuer, payable as to both principal and interest from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the Issuer. The full faith, credit, and resources of the Issuer are irrevocably pledged for the prompt payment of the principal and interest on the Bonds as the same becomes due. K.S.A. §10-113 mandates the Clerk of Leavenworth County to levy a tax on all of the tangible taxable property in the City to pay the principal of and interest on any bonds coming due for each fiscal year of the Issuer.

THE DEPOSITORY TRUST COMPANY General. The Bonds are available in book-entry only form. Purchasers of the Bonds will not receive certificates representing their interests in the Bonds. Ownership interests in the Bonds will be available to purchasers only through a book-entry system (the “Book-Entry System”) maintained by The Depository Trust Company (“DTC”), New York, New York. The following information concerning DTC and DTC’s book-entry system has been obtained from DTC. The Issuer takes no responsibility as to the accuracy or completeness thereof and neither the Indirect Participants nor the Beneficial Owners should rely on the following information with respect to such matters, but should instead confirm the same with DTC or the Direct Participants, as the case may be. There can be no assurance that DTC will abide by its procedures or that such procedures will not be changed from time to time. DTC will act as securities depository for the Bonds. The Bonds will be issued as fully-registered bonds 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 series of the Bonds, in the aggregate principal amount of that series, and will be deposited with DTC. DTC and its Participants. DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC

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system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s highest rating: “AAA.” The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of Ownership Interests. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of the Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. Transfers. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Notices. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bonds documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices will be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Voting. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of Principal, Redemption Price and Interest. Principal, premium, if any, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Issuer or the Paying 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 Paying Agent, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Issuer or the Paying 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.

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Discontinuation of Book-Entry System. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Issuer or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond 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, Bond certificates will be printed and delivered to DTC, 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), and delivered to DTC (or a successor securities depository), to be held by it as securities depository for Direct Participants. If, however, the system of book-entry-only transfers has been discontinued and a Direct Participant has elected to withdraw its Bonds from DTC (or such successor securities depository), Bond certificates may be delivered to Beneficial Owners in the manner described in the Bond Resolution. Book-Entry Bonds: Securities Depository The Bonds shall initially be registered to Cede & Co., the nominee for the Securities Depository, and no Beneficial Owner will receive certificates representing their respective interests in the Bonds, except in the event the Bond Registrar issues Replacement Bonds. It is anticipated that during the term of the Bonds, the Securities Depository will make book-entry transfers among its Participants and receive and transmit payment of principal of, premium, if any, and interest on, the Bonds to the Participants until and unless the Bond Registrar authenticates and delivers Replacement Bonds to the Beneficial Owners as described in the following paragraph. (a) If the Issuer determines (1) that the Securities Depository is unable to properly discharge

its responsibilities, or (2) that the Securities Depository is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, or (3) that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds; or

(b) If the Bond Registrar receives written notice from Participants having interest in not less

than 50% of the Bonds Outstanding, as shown on the records of the Securities Depository (and certified to such effect by the Securities Depository), that the continuation of a book-entry system to the exclusion of any Bonds being issued to any Owner other than Cede & Co. is no longer in the best interests of the Beneficial Owners of the Bonds, then the Bond Registrar shall notify the Owners of such determination or such notice and of the availability of certificates to owners requesting the same, and the Bond Registrar shall register in the name of and authenticate and deliver Replacement Bonds to the Beneficial Owners or their nominees in principal amounts representing the interest of each, making such adjustments as it may find necessary or appropriate as to accrued interest and previous calls for redemption; provided, that in the case of a determination under (a)(1) or (a)(2) of this paragraph, the Issuer, with the consent of the Bond Registrar, may select a successor securities depository in accordance with the following paragraph to effect book-entry transfers.

In such event, all references to the Securities Depository herein shall relate to the period of time when the Securities Depository has possession of at least one Bond. Upon the issuance of Replacement Bonds, all references herein to obligations imposed upon or to be performed by the Securities Depository shall be deemed to be imposed upon and performed by the Bond Registrar, to the extent applicable with respect to such Replacement Bonds. If the Securities Depository resigns and the Issuer, the Bond Registrar or Owners are unable to locate a qualified successor of the Securities Depository, then the Bond Registrar shall authenticate and cause delivery of Replacement Bonds to Owners, as provided herein. The Bond Registrar may rely on information from the Securities Depository and its Participants as to the names of the Beneficial Owners of the Bonds. The cost of printing, registration, authentication, and delivery of Replacement Bonds shall be paid for by the Issuer. In the event the Securities Depository resigns, is unable to properly discharge its responsibilities, or is no longer qualified to act as a securities depository and registered clearing agency under the Securities and Exchange Act of 1934, as amended, the Issuer may appoint a successor Securities Depository provided the Bond Registrar receives written evidence satisfactory to the Bond Registrar with respect to the ability of the successor Securities Depository to discharge its responsibilities. Any such successor Securities Depository shall be a securities depository which is a registered clearing agency under the Securities and Exchange Act of 1934, as amended, or

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other applicable statute or regulation that operates a securities depository upon reasonable and customary terms. The Bond Registrar upon its receipt of a Bond or Bonds for cancellation shall cause the delivery of the Bonds to the successor Securities Depository in Authorized Denominations and form as provided in the Bond Resolution.

THE FINANCING PLAN The Projects Proceeds from the sale of the Bonds along with available funds of the City will be used to retire the City’s outstanding Series 2009-1 Temporary Notes (the “Series 2009-1 Notes”) and to pay the costs associated with the issuance of the Bonds. The Series 2009-1 Notes provided initial financing for public street and sanitary sewer improvements.

SOURCES AND USES OF FUNDS The following table itemizes the sources and uses of funds available for the Financing Plan, including the proceeds from the sale of the Bonds, exclusive of accrued interest.

Sources of Funds: Principal Amount of the Bonds Available Funds Total Uses of Funds: Redemption of the Notes Project Costs Issuance Costs Total

REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY

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FINANCIAL OVERVIEW CITY OF LANSING, KANSAS

Net of Gross Self-Supporting Debt Debt (1) 2009 Estimated Actual Valuation (2) $ 620,585,691.00 2009 Assessed Valuation $ 84,698,337.00 Outstanding General Obligation Bonds (3) $ 26,461,314.00 $ 12,910,000.00 Population (2008 U.S. Census Bureau Estimate) 10,691 General Obligation Debt Per Capita $ 2,475.10 $ 1,207.56 Ratio of General Obligation Debt to Estimated Actual Valuation 4.26% 2.08% Ratio of General Obligation Debt to Assessed Valuation 31.24% 15.24% Outstanding Revenue Bonds $ 0.00 Outstanding Lease Obligations $ 182,448.00 Outstanding Temporary Notes (4) $ 0.00 Overlapping General Obligation Debt (5) $ 19,573,345.00 Direct and Overlapping General Obligation Debt (6) $ 46,034,659.00 $ 32,483,345.00 Direct and Overlapping Debt Per Capita $ 4,305.93 $ 3,038.38 Ratio of Direct and Overlapping Debt to Estimated Actual Valuation 7.42% 5.23% Ratio of Direct and Overlapping Debt to Assessed Valuation 54.35% 38.35% (1) The City intends to provide for payment of its Kansas Revolving Loans ($13,551,314) with net revenues

derived from the operation of its sanitary sewage system. The column titled “Net of Self-Supporting Debt” therefore excludes this portion. The Kansas Revolving Loans are ultimately secured, however, by the City’s ability to levy unlimited ad valorem taxes. See DEBT STRUCTURE herein.

(2) For a further description of how estimated actual valuation is calculated and additional historical figures, see the

section titled FINANCIAL INFORMATION - “Estimated Actual Valuation”. (3) Includes the Bonds. For further information on other currently outstanding debt of the City see DEBT

STRUCTURE. (4) Does not include notes to be redeemed with proceeds from the sale of the Bonds. (5) For a more detailed explanation of the overlapping debt of other jurisdictions see DEBT STRUCTURE -

“Overlapping Indebtedness”. (6) Includes general obligation bonds and temporary notes of the City and of overlapping jurisdictions.

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THE CITY OF LANSING Location and Size The City of Lansing is located in northeast Kansas and is part of the Kansas City Metropolitan Statistical Area. The City is located adjacent to the City of Leavenworth in Leavenworth County, Kansas. In 2007, the U.S. Census Bureau estimated Lansing’s population at 10,691. Leavenworth County had an estimated population of 75,227 in 2009. The City is located approximately 35 miles northwest of downtown Kansas City. Organization and Government

The City of Lansing was incorporated in 1959 and became a City of the Second Class in 1982. The City has a Mayor-Council form of government. An election for four council members is held in odd-numbered years. The Mayor is elected at-large and serves a four-year term. The City Administrator is appointed by the Mayor and the Council as the chief administrative officer of the City and is charged with the effective and efficient administration of the City. The present elected and appointed officials of the City along with the expirations of their current terms of office are as follows: Expiration of Name Position Term of Office Kenneth W. Bernard Mayor January 2013 Delmar “Dee” Hininger, Jr. Council Member April 2011 David Trinkle, Jr. Council Member April 2013 Andi Pawlowski Council President April 2011 Donald Studnicka Council Member April 2013 Janette Labbee-Holdeman Council Member April 2011 Kerry Brungardt Council Member April 2013 Harland Russell Council Member April 2011 Tony McNeill Council Member April 2013 Michael W. Smith serves as City Administrator, Sunshine Petrone serves as City Clerk, and Jaslyn Frett serves as Finance Director. Excluding police officers, there are currently 44 full-time and 5 part-time city employees. The police department consists of 17 full-time officers and 4 reserve officers. Leavenworth County Fire District #1 Leavenworth County Fire District #1 serves the City of Lansing and surrounding areas and is a combination paid/volunteer fire department staffed by five full-time personnel and about 27 volunteers. The department has two stations and eight fire fighting apparatus. Kansas Public Employees Retirement System (KPERS)

The City participates in the Kansas Public Employees Retirement System (KPERS) which was established by the 1961 Kansas Legislature. There are approximately 250,000 current and former public employees in Kansas who are members of the Kansas Public Employees Retirement System. These members represent over 1,500 state and local agencies and include the state; all counties; unified school districts; community junior colleges and area vocational technical schools; various cities; and other instrumentalities. The KPERS program covers all of the City’s full-time employees, with the exception of firemen and policemen, who are covered under the Kansas Police and Firemen’s Retirement Act.

The purpose of the KPERS program is to provide an orderly means of financing the pension benefits of retiring public employees and to extend life insurance coverage, long-term disability and service-connected death and disability benefits to members and their beneficiaries. City employees will contribute 4.0% of their gross salary to the System. The City’s contribution varies from year to year based upon the annual actuarial valuation and appraisal made by the actuary of the KPERS program. For 2010 the City will contribute 7.14% of each employee’s gross salary.

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Kansas Police and Fire Retirement (KP&F)

The City has established membership in the Kansas Police and Fire Retirement System for its police personnel. Benefits are determined by total years of service and final average salary. The State of Kansas administers the plan. An actuarial study is made annually and the City’s annual contribution is adjusted to meet current fund requirements. Payment of employee retirement benefits is the sole responsibility of KP&F. Currently the City contributes 12.86% of employees’ gross compensation, and the majority of employees contribute 7.0% of their gross salary. Population

The following is a list of estimated population figures for the City for selected years, according to the U.S. Census Bureau. Year City 2008 10,691 2007 10,670 2006 10,568 2005 10,417 2004 10,361 Economy Over the last twenty years the City of Lansing has experienced a significant growth in population as the Kansas City metropolitan area has expanded northwest into Leavenworth County. The City has grown from a rural community linked closely with the economy of neighboring Leavenworth, Kansas, to a center of economic and residential activity in the northwestern part of the Kansas City metropolitan area. Residents of the City are employed inside the City and throughout the Kansas City metropolitan area. Major Employers Several significant state and federal institutions are located in the nearby city of Leavenworth, providing for a stable economic base. Listed below are the major employers located in the Lansing/Leavenworth area and the approximate number employed by each:

Product or Number of Employer Service Full-Time Employees

Lansing Correctional Facility Jail Facility 700 U.S.D. No. 469 School District 229 Leavencom Concrete/Construction 98 Larkin Excavating Excavating/Heavy Equipment 95 Citizen’s National Bank Bank 70 Aramark Uniform Uniform/Laundry Services 65 Fort Leavenworth Military Personnel 3,144 Fort Leavenworth Civilian Personnel 2,279 U.S.D. No. 453 School District 829 Hallmark Cards, Inc. Greeting Card Manufacturer 647 Eisenhower Veterans Hospital Medical Center 600 Northrop Grumman Research Consultants 589 Federal Penitentiary Jail Facility 550 Cubic Defense Applications Group Computer Simulation 380 Leavenworth County County Government 370 Cushing Memorial Hospital Medical Center 350 Capital Electric Construction Contractor 326 City of Leavenworth City Government 319

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Unemployment

The following table provides the unemployment rates for Leavenworth County and the State of Kansas for the years indicated according to the Kansas Department of Labor:

Leavenworth State of Year County Kansas

2010 (April) 7.1% 6.3% 2009 7.7 6.7 2008 5.6 4.4 2007 3.6 4.1 2006 5.7 4.5 Educational Facilities

Unified School District No. 469 (Lansing) of Leavenworth County provides the preponderance of all primary and secondary education needs of the community. One high school, one middle school, and two elementary schools serve the City, with a September 20, 2009 enrollment of approximately 2,597 students.

There are many four-year private colleges and public universities located within an hour’s drive of the City, including Baker University, Avila College, Rockhurst University, Mid-American Nazarene College, University of Missouri-Kansas City, Ottawa University, University of Kansas, Benedictine College, and Saint Mary College.

Junior colleges and vocational schools serving the area include Johnson County Community College,

Kansas City Kansas Community College, Kansas City Kansas Community College (Leavenworth Campus), and Donnelly College. Several two-year and four-year colleges conduct courses in the City and surrounding areas on a demand basis. Transportation and Communication Facilities

The City’s location within the Kansas City metropolitan area provides it with a full range of transportation capabilities and the amenities of a large urban area within a 35-minute drive. The City is directly served by two highways – U.S.-73/K-7 and K-5. I-29, I-70, I-635, I-435, and I-35 are all located within 25 miles from the City.

Commercial air service is provided at Kansas City International Airport. The nearest public airport, located

eight miles from the City, has a 5,905-foot asphalt runway and provides private aircraft storage. The City is served by Union Pacific Railroad.

The Leavenworth Times, a daily newspaper, has an approximate circulation of 6,591. Several television

stations and one cable company provides service to the City. Public Utilities

Sewage disposal and treatment is maintained and operated by the City of Lansing. Westar Energy supplies electricity. Kansas Gas Service supplies retail natural gas and Lan-Del Water District supplies water to the City. AT&T provides local phone service and several suppliers provide internet, phone and satellite service. Medical and Health Facilities

Residents of Lansing have access to a full range of medical facilities within the City and in adjacent Leavenworth, Kansas City, Kansas, and Kansas City, Missouri. Cushing Memorial Hospital and Saint John Hospital provide full-service medical treatment to the general public and are located in the City of Leavenworth. The Dwight D. Eisenhower V.A. Medical Center and the Munson Army Health Center, also located in Leavenworth, provide medical services to active and retired military personnel and their dependents.

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Banking Institutions

Four banks are located in the City. Residents of the City have additional banking options in the City of Leavenworth, which has two main banks, six branch banks, and two savings and loans. Recreational Facilities

Public recreation facilities available to City residents include five recognized parks, an 18-hole golf course,

a swimming pool, a community theatre, tennis courts, and ballfields for baseball, softball, and soccer. Leavenworth County State Lake is a 15-minute drive from Lansing, and Lake Perry is located approximately 40 miles west of the City. Lake Perry offers year-round recreational activities including hunting, fishing, and water sports.

DEBT STRUCTURE Current Indebtedness

The following is an overview of the City’s outstanding indebtedness by classification as of the dated date of the Official Statement. General Obligation Debt: Original Original Principal Amount Maturity Purpose Series Dated Date Amount Outstanding Date Refunding and Improvements 2001-A 07-01-01 $4,040,000 $ 455,000 09-01-21 Refunding and Improvements 2006-A 03-15-06 5,365,000 5,075,000 09-01-26 Improvements 2008-A 10-15-08 6,670,000 6,405,000 09-01-28 Improvements 2010-A 07-01-10 975,000 975,000 09-01-25 $12,910,000 State Loans:* Original Original Principal Amount Maturity Purpose Series Dated Date Amount Outstanding Date KDHE Wastewater Loan 2003 12-01-02 $15,674,127 $11,654,227 03-01-24 KDOT Revolving Loan 2005 02-01-06 1,400,000 1,167,341 08-01-24 KDOT SRF Loan 2008 10-02-08 740,000 729,746 08-01-28 $13,551,314 *The City intends to provide for payment of the principal portion of the 2003 KDHE Loan with net revenues derived from the operation of its sanitary sewage system. The interest portion is to be paid from ad valorem property taxes. The entire loan as well as all other outstanding state loans are ultimately secured by the City’s ability to levy unlimited ad valorem taxes.

Temporary Notes: Original Original Principal Amount Maturity Purpose Series Dated Date Amount Outstanding Date Improvements 2009-1 10-15-09 $1,210,000 $1,210,000* 07-15-10 *To be redeemed with proceeds from the sale of the Bonds. Revenue Bonds: The City has no outstanding revenue bonds.

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Lease Purchase Obligations:

Year Original Final Amount Item Issued Amount Year Outstanding Street Sweeper 2007 $127,432 2011 $ 66,433 Digital Radios 2009 61,504 2013 61,504 Cold Planer/Skid Steer 2009 54,511 2013 54,511 $182,448 Overlapping Indebtedness According to the Leavenworth County Clerk’s Office, the following statement shows the estimated general obligation indebtedness for municipal jurisdictions whose boundaries overlap those of the City and that percentage of such debt that is applicable to taxpayers of the City. The percentage of debt applicable to taxpayers of the City is calculated by dividing the assessed valuation of that part of the City which underlies another jurisdiction by the total assessed valuation of such jurisdiction. All debt is as of December 31, 2009. Outstanding General Obligation Percentage Estimated Debt Applicable Share U.S.D. No. 469 $28,905,000 66.82% $19,282,525 Leavenworth County 2,220,000 13.12 290,820 Total $19,573,345 Annual General Obligation Bond Payments

The following is a list of annual debt service requirements for the City’s currently outstanding general obligation bonded indebtedness as of the dated date of the Bonds. All amounts are rounded to the nearest whole dollar. Existing Bonds Series 2010-A Bonds Year Principal Interest Principal Interest Total

2010 $ 545,000 $ 259,420 $ 0 2011 565,000 496,900 45,000 2012 585,000 474,475 55,000 2013 610,000 452,325 55,000 2014 635,000 428,880 55,000 2015 665,000 399,990 60,000 2016 695,000 368,245 60,000 2017 730,000 334,280 65,000 2018 755,000 301,780 65,000 2019 785,000 268,130 65,000 2020 820,000 236,105 70,000 2021 855,000 202,305 70,000 2022 570,000 166,210 75,000 2023 595,000 141,282 75,000 2024 540,000 115,062 80,000 2025 565,000 91,158 80,000 2026 590,000 65,948 0 2027 405,000 39,435 0 2028 425,000 20,400 0 $11,935,000 $4,862,330 $975,000

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Legal Debt Limits

Cities within Kansas are permitted to issue general obligation bonds in an aggregate amount not to exceed 30% of the total assessed valuation of the city. According to §K.S.A. 10-309, general obligation bonds issued for the purpose of improving, acquiring, enlarging, or extending municipal utilities (including storm sewers), general obligation bonds issued to pay the cost of improvements to intersections and streets in front of city or school district property and for bridges as authorized by a vote of the electors of a city, bonds issued to refund outstanding bonds payable from revenue sources other than the general taxing authority of the city are not included in total aggregate debt for purposes of computing a city’s debt limitation. Additional exclusions are provided for under various specific statutes. Future Borrowing Plans The City has no current plans for issuance of additional general obligation debt. Debt Payment Record The City has promptly and fully paid all of the payments of interest on or principal of its general obligation indebtedness when the same became due.

FINANCIAL INFORMATION Property Valuation According to the Leavenworth County Clerk’s Office, the following table shows the assessed valuation of the City during the following years: Tax Real Oil & Personal State Motor Total Year Property Property (1) Assessed Vehicles Assessed 2009 $70,673,283 $2,414,713 $1,720,097 $9,890,244 $84,698,337 2008 70,656,919 2,500,695 1,944,354 9,860,986 84,962,954 2007 66,963,707 3,542,221 2,077,254 9,894,063 82,477,245 2006 61,059,629 3,840,172 2,017,077 9,858,245 76,775,123 2005 54,466,577 3,635,231 2,169,830 9,377,081 69,648,719 (1) Beginning in 2007, certain types of personal property were removed from the tax rolls. See FINANCIAL

INFORMATION – “Property Assessment Rates”. Estimated Actual Valuation

Based on appraised values provided by the Leavenworth County Clerk’s Office and assessment ratios provided by Kansas Statutes, the following table provides estimated actual valuation for the City in the years indicated.

Estimated

Year Actual Valuation 2009 $620,585,691 2008 622,452,332 2007 604,420,670 2006 568,717,618 2005 512,237,331

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Largest Taxpayers

According to the Leavenworth County Clerk’s Office, the following table sets forth the ten largest taxpayers within the City according to the 2009 tax rolls.

Assessed Taxpayer Type of Business Valuation Charford Inc Bank $1,400,475 Greenamyre Rental Rental Business 1,084,017 Westar Energy Electric Utility 798,089 Rock Creek Medical Medical 759,425 Midwest Hotels Hotel 681,925 Lansing Towne Center Retail Shops 593,127 Kansas Gas Service Gas Utility 539,029 First National Bank Financial Institution 469,501 AAA Partnership Commercial 448,969 Carriage Hills, LLC Retail Shops 397,147 $7,171,704 Percent of City’s Total November 2009 Assessed Valuation 8.47% Property Tax Collections

Tax statements are mailed November 1 each year and may be paid in full or one-half on or before December 20 with the remaining one-half due on or before May 20 of the following year. Taxes that are unpaid on the due dates are penalized at a statutorily prescribed rate until paid or until the property is sold for taxes. Real estate bearing unpaid taxes is advertised for sale in July of each year and is sold by the County for taxes and all legal charges on the first Tuesday in September. Properties that are sold and not redeemed within two years after the tax sale are subject to foreclosure sale, except homestead properties which are subject to foreclosure sale after three years. Personal property taxes are due and may be paid in the same manner as real estate taxes, with the same interest applying to delinquencies. If personal taxes are not paid when due, warrants are issued and placed in the hands of the Sheriff for collection. If not paid on or before October 1, legal judgment is entered and the delinquent tax becomes a lien on the property. Unless renewed, a non-enforced lien expires five years after it is entered. Motor vehicle taxes are collected periodically throughout the year concurrently with the renewal of motor vehicle tags based upon the value of such vehicles. Such tax receipts are distributed to all taxing subdivisions, including the State of Kansas, in proportion to the number of mills levied within each taxpayers’ tax levy unit. According to the Leavenworth County Clerk’s Office, the following table sets forth property tax collection information for the City during the years indicated. Delinquencies Percent Total Current Collected During of Total Year Tax Levied Collections Percent Tax Year Collections 2009/10* $2,821,466 $1,561,563 55.35% $ 9,139 55.67% 2008/09 2,771,120 2,714,808 97.97 67,166 100.39 2007/08 2,471,100 2,429,125 98.30 21,947 99.19 2006/07 2,338,696 2,304,990 98.56 24,450 99.60 2005/06 2,115,964 2,092,430 98.89 91,264 103.20 *Collections as of February 28, 2010

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Sales and Use Tax

The City of Lansing currently levies a one-cent local option sales tax on all applicable goods and services purchased or provided within city limits. This tax is in addition to a one-cent countywide local option sales tax in Leavenworth County and a 5.3-cent state sales tax. Total sales tax in the City is currently 7.3 cents, or 7.3% of cost. Five out of the six incorporated cities located in Leavenworth County levy a one-cent local option retailers’ sales tax (including the City).

The State of Kansas is responsible for collection and distribution of all sales tax. Citywide local option

sales taxes are distributed directly to the cities each month. Countywide local option taxes are distributed monthly by the State to the levying county which, in turn, distributes the taxes to all incorporated municipalities within the county based on population and relative property tax levies. Statewide sales taxes are kept by the State and not distributed to local municipalities. The following table shows the citywide and the City’s portion of the countywide local option sales tax collections in recent years.

Citywide City’s Portion of Sales and Use Countywide Year Tax Collection Sales and Use Tax Collection 2010* $216,077 $231,901 2009 714,920 720,234 2008 723,523 715,337 2007 779,673 692,014 2006 761,117 671,230

*Thru April 2010 Source: Kansas Department of Revenue Property Tax Levies

The following table gives the City’s mill levy and the levies of overlapping jurisdictions expressed as dollars of tax per $1,000 assessed valuation for the last five years. 2009 2008 2007 2006 2005 State of Kansas 1.500 1.500 1.500 1.500 1.500 City of Lansing 37.776 36.898 34.210 34.575 34.513 Leavenworth County 32.052 31.560 28.121 28.181 35.951 U.S.D. No. 469 51.820 53.046 49.820 50.250 48.456 Fire District No. 1 4.895 4.495 4.290 3.767 3.659 Total 128.043 127.499 117.941 118.273 124.079 Source: Leavenworth County Clerk’s Office Building Permits

The following table shows the number and estimated construction costs of building permits issued by the City in the last three years.

2009 2008 2007 Total Number of Permits 30 31 294 Total Estimated Construction Costs $4,700,742 $4,657,106 $8,721,177

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Budgeting Procedures Applicable Kansas statutes require that budgets be legally adopted for all funds (including debt service and enterprise funds) unless exempted by a specific statute. All budgets are prepared utilizing the modified accrual basis further modified by the encumbrance method of accounting. For example, commitments such as purchase orders and contracts, in addition to disbursements and accounts payable, are recorded as expenditures. The statutes provide that the budget for the succeeding calendar year must be prepared on or before August 1 and published on or before August 5 of each year. A public hearing is required to be held on or before August 15, with the final budget being adopted on or before August 25 of each year. Original appropriations may be modified by supplemental appropriations and transfers among budget categories. The city council must approve all significant changes. Kansas law prohibits cities and other governmental units from creating indebtedness unless there is money on hand in the proper fund unencumbered by previous commitments with which to pay the indebtedness. The execution of a contract, or the issuing of a purchase order, automatically encumbers the money in the fund for the payment of the amount represented by the commitment. It makes no difference that the amount may not have to be paid until more moneys are in the fund or until the following year. An exception to this cash basis law is the issuance of debt, in the form of bonds, notes, or warrants, pursuant to statutory authority, referendum or the State Board of Tax Appeals. In the event debt is issued, funds need not be on hand for future payments. Appraisal and Assessment Procedures The determination of appraised and assessed valuation and the collection of property taxes for all political subdivisions in the State of Kansas are the responsibility of the various counties. The Leavenworth County appraiser annually determines the appraised valuation of property located in the City. The appraiser’s determination is based on a number of criteria established by Kansas statute. All property, with the exception of agricultural land, is appraised based on estimated fair market value. Agricultural property is appraised based on productivity value. Kansas statutes require that each parcel of real property be reviewed and inspected by the county appraiser once every four years for taxation purposes. Once appraised valuations have been determined, they are multiplied by the applicable statutory assessment rates to arrive at the assessed valuations. The total assessed valuation is then used to establish property tax rates. Property Assessment Rates In order to determine the assessed valuation of a parcel of property for taxation purposes, the county appraiser multiplies the appraised value of the parcel by the applicable assessment rate. Current property assessment rates were established in 1986, effective in 1989, and slightly modified in 1992. The most significant 1992 modifications involved lowering the assessment rate on commercial and industrial real property from 30% to 25% and on residential property from 12% to 11.5%. The following table shows the current assessment rates for the different classes of taxable tangible property within the State of Kansas. Real Property: Residential 11.5% Commercial and Industrial- Real Property 25.0 Agricultural Land (1) 30.0 Agricultural Improvements 25.0 Vacant Lots 12.0 Not-for-Profit (2) 12.0 All Other 30.0 Personal Property: (3) Mobile Homes 11.5% Mineral Leaseholds (large) 30.0 Mineral Leaseholds (small) 25.0

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Commercial & Industrial Machinery & Equipment 25.0 All Other 30.0 Utilities: Railroads federally mandated rate All Other Public Utilities 33.0% Motor Vehicles: 20.0% Property Exempt:

Property used for the following purposes, or portions thereof, are exempt from taxation provided certain statutory requirements are met: religious, educational, literary, scientific, benevolent, alumni associations, veterans’ organizations, or charitable purposes, including parsonages and community service organizations providing humanitarian services.

(1) Agricultural land is valued based on the productivity value of the property and not estimated market valuation. (2) A bill passed by the Kansas Legislature in 1994 clarified this class of property to include all property owned

and operated by not-for-profit organizations not subject to federal income taxation pursuant to paragraphs (2), (3), (4), (7), (8), or (10) of Subsection C of Section 501 of the federal internal revenue code. This bill specifically established that private, not-for-profit country clubs would be assessed at 12% for all land that does not accommodate buildings or improvements.

(3) 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.

Equalization Ratios Annually, the Property Valuation Division of the Kansas Department of Revenue conducts a study to compare the assessed valuation of real property to estimated market value based on property sale prices. The study derives an “equalization ratio” (expressed as a percentage) which, when divided into assessed valuation, provides a means to approximating actual market value. According to the 2009 Preliminary Kansas Appraisal/Sales Ratio Study, the equalization ratio for residential real property in Leavenworth County was 11.50%, and the equalization ratio for commercial and industrial real property was 24.93%.

LEGAL MATTERS All matters incident to the authorization and issuance of the Bonds are subject to the approval of Robert J. Perry, Esquire, Bond Counsel. Bond Counsel will address and deliver to the Underwriters his approving legal opinion concurrently upon delivery and payment for the Bonds. Bond Counsel has not reviewed this Official Statement except for the matters appearing in the sections of this Official Statement titled INTRODUCTION, THE BONDS, TAX MATTERS, LEGAL MATTERS, and CONTINUING DISCLOSURE COVENANT, and except for such sections has not participated in its preparation. Accordingly, Bond Counsel expresses no opinion as to the accuracy or sufficiency of other sections of this Official Statement including the cover page and any appendix hereto. The factual and financial information appearing herein has been supplied or reviewed by the City’s officials and staff and other sources referred to herein. The financial statements appearing in APPENDIX A have been audited by the City’s Certified Public Accountants.

TAX MATTERS

Federal Tax Exemption. In the opinion of Robert J. Perry, Esquire, Bond Counsel, under existing law, the interest on the Bonds [(including any original issue discount properly allocable to the owners thereof)] is excludable from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations (as defined for federal income tax purposes), such

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interest is taken into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that the City 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 Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The City has covenanted to comply with each such requirement and Bond Counsel, the City’s Financial Advisor, or the Underwriters do not have any obligation and shall not assume any such obligation to ensure such compliance. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds will be designated as “qualified tax-exempt obligations” within the meaning of Section 265 (b)(3) of the Code. Bond Counsel expresses no opinion regarding other federal tax consequences arising with respect to the Bonds. Kansas Tax Exemption. The interest on the Bonds is exempt from computation of Kansas adjusted gross income taxation for individuals and is exempt from the tax that may be imposed by Kansas Counties, cities of townships, or instruments of debt such as the Bonds.

RATING The Bonds and the City’s other outstanding general obligation bonds have been rated “A1” by Moody’s Investors Service. Any explanation of the significance of such rating may be obtained only from said rating agency. There is no assurance that the rating will remain for any given period of time or that it may not be lowered or withdrawn entirely by the rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of the ratings may have an adverse effect on the market price of the Bonds.

FINANCIAL ADVISOR George K. Baum & Company, Kansas City, Missouri, has acted as Financial Advisor to the City in connection with the sale of the Bonds. The Financial Advisor has assisted the City in the preparation of this Official Statement and in other matters relating to the issuance of the Bonds. The Financial Advisor retains the right to bid on the Bonds and has received written consent to do so from the City. The fees of the Financial Advisor are contingent upon the issuance of the Bonds.

UNDERWRITING

The Bonds were purchased at public sale on June 17, 2010 by ______________ (the “Successful Bidder”) at a price equal to _______, plus accrued interest to the date of closing.

ABSENCE OF MATERIAL LITIGATION

The Transcript of Proceedings will contain a certificate of non-litigation dated as of the date of closing on the Bonds and executed by the City to the effect that there is no controversy, suit or proceeding of any kind pending or, to the knowledge of the City, threatened wherein or whereby any question is raised, or may be raised, questioning, disputing or affecting in any way the legal organization of the City of Lansing, Kansas, or its boundaries, or the legality of any official act shown to have been done regarding the issuance of the Bonds or the constitutionality or validity of the obligation represented by the Bonds, or to the means provided for the payment of the Bonds.

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CONTINUING DISCLOSURE COVENANT

For purposes of this Section, the following terms have the following meanings: “MSRB” means the Municipal Securities Rulemaking Board. “NRMSIR” shall mean any information repository recognized by the Securities and Exchange Commission as a nationally recognized municipal securities information repository under Rule 15c2-12. “Rule 15c2-12” shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “SID” means any public or private information depository, if any, designated by the State of Kansas as such for purposes of Rule 15c2-12. The City has agreed that on September 15 of each fiscal year beginning September 15, 2009, the City shall, to the extent required by Rule 15c2-12, furnish to each NRMSIR and to the SID, if any, (i) a copy of the financial statements of the City prepared in accordance with generally accepted accounting principles as modified for municipalities by Kansas law and audited by its independent auditors (or if not available as of such date the unaudited financial statements of the City and as soon thereafter as available such audited financial statements of the City), and (ii) the operating data of the City updated for the fiscal year then ended, in substantially the scope and form contained in this Official Statement in the tables labeled or set forth in the sections titled: Demographic Data reflecting the following:

(ii) Major Employers; (iii) Direct Debt; (iv) Direct Debt Ratios; (v) Overlapping General Obligation Debt; (vi) Direct and Overlapping Debt Ratios; (vii) Property Valuations; (viii) Property Tax Levies and Collections; and (ix) Major Taxpayers. The City has further agreed that it will disseminate to the SID, if any, and to each NRMSIR or to the MSRB, promptly upon the occurrence thereof actual notice of any of the following events with respect to the Bonds (the “Securities”), if material: (i) Any principal or interest payment delinquency; (ii) Any non-payment related default; (iii) Any unscheduled draw on the debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) Any modifications to rights of Bondholders; (viii) Any call for redemption in whole or in part; (ix) Any defeasance; (x) Any released, substitution or sale of property securing repayment of the Securities; and (xi) Any rating change. The City will also provide to the SID, if any, and to each NRMSIR or the MSRB, as promptly as practicable, notice of any failure of the City to provide the NRMSIRs and the SID, if any, the annual financial information or operating data required by the second paragraph of this section on or before the date specified. The City’s obligations described in this Section shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds.

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The provisions referred to in this Section may be amended by a written instrument executed by the Mayor if the City receives an opinion from Bond Counsel to the effect that the amendment is in compliance with Rule 15c2-12 and all current amendments thereto and interpretations thereof that are applicable to the undertaking described in this Section by the City. The provisions described in this Section shall be subject to specific enforcement or action in mandamus in a court of equity by any beneficial owner of the Bonds. A “beneficial owner” of the Bonds includes any registered owner of the Bonds and any other person who, directly or indirectly, has the investment power with respect to any of the Bonds.

AUTHORIZATION OF OFFICIAL STATEMENT

The preparation and distribution of this Official Statement has been authorized by the City. This Official Statement is hereby duly approved by the governing body of the City as of the date on the cover page hereof. Dated May 20, 2010 for THE CITY OF LANSING, KANSAS By /s/

Mayor ATTEST: /s/ City Clerk

APPENDIX A

Financial Statements

The following is a portion of the general purpose financial statement for the City of Lansing, Kansas for the fiscal year ended December 31, 2008 prepared by the firm of Wendling Noe Nelson & Johnson LLC, Certified Public Accountants and Management Consultants, Topeka, Kansas. As of the dated of this Official Statement, the City’s audited financial statements for the fiscal year ended December 31, 2009 were not yet completed. However, preliminary unaudited figures indicate that the City experienced a decrease of approximately $457,000 in its unencumbered General Fund balance. According to city staff, this decrease was due primarily to the one-time use of cash reserves to pay for the construction of improvements to certain city-owned buildings.

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