|
CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2020
<br />IV. Detailed Notes on All Activities and Funds (Continued)
<br />B. Investments (Continued)
<br />formal policy related to interest rate risk is included in the City's adopted investment policy.
<br />Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the
<br />investment. This type of risk is typically expressed in terms of the credit ratings issued by a nationally
<br />recognized statistical rating organization. The City and PEDC reduce the risk of issuer default by limiting
<br />investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas
<br />Government Code.
<br />Concentration credit risk is the risk of loss attributed to the magnitude of a government's investment in a single
<br />issuer. With the exception of obligations of the United States or its agencies and authorized pools, no more than
<br />50% of the City's total investment portfolio will be invested in a single financial institution with the exception
<br />of its local depository. PEDC's investment balance consists of only externally pooled accounts.
<br />The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
<br />transaction, a government will not be able to recover the value of investment or collateral securities that are in
<br />the possession of an outside party. In accordance with the City's deposit and investment policy, all deposits
<br />placed at a financial institution shall be insured or collateralized with applicable State law.
<br />Foreign currency risk is the risk that an investment denominated in the currency of a foreign country could
<br />reduce in value as a result of changes in currency exchange rates. At September 30, 2020, the City was not
<br />exposed to foreign currency risk.
<br />C. Accounts Receivable and Payable
<br />Amounts are aggregated into a single accounts receivable (net of allowance for uncollectibles) line for certain
<br />funds and aggregated columns. Below is the detail of receivables in the aggregate, including the applicable
<br />allowances for uncollectible accounts:
<br />Net receivable balances not expected to be collected within one year are Property Taxes - $686,595, Fines -
<br />$20,903, EMS - $349,737, and Street Assessments - $26,473.
<br />At year end, PEDC had a receivable for sales tax of $330,223. The balance is expected to be collected within one
<br />year.
<br />38
<br />General
<br />Debt Service
<br />Enterprise
<br />Receivables:
<br />Interest
<br />$ 55
<br />S -
<br />$ 3,966
<br />Property Taxes
<br />1,133,569
<br />110,619
<br />-
<br />Sales Tax
<br />1,650,717
<br />-
<br />-
<br />Franchise
<br />509,974
<br />-
<br />-
<br />Accounts
<br />172,765
<br />-
<br />2,554,206
<br />Street Assessments
<br />26,473
<br />-
<br />-
<br />Fines
<br />137,555
<br />-
<br />-
<br />EMS
<br />2,246,282
<br />-
<br />-
<br />Gross Receivables
<br />5,877,390
<br />110,619
<br />2,558,172
<br />Less: Allowance for Uncollectibles
<br />(1,469,941)
<br />(27,655)
<br />(94,799)
<br />Net Total Receivables
<br />$ 42407,449
<br />S 82,964
<br />$ 2,463,373
<br />Net receivable balances not expected to be collected within one year are Property Taxes - $686,595, Fines -
<br />$20,903, EMS - $349,737, and Street Assessments - $26,473.
<br />At year end, PEDC had a receivable for sales tax of $330,223. The balance is expected to be collected within one
<br />year.
<br />38
<br />
|