C.A.F.R., FY 2019-20 with continuing disclosure tables

Home Browse Search

CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2020 IV. Detailed Notes on All Activities and Funds (Continued) H. Water Sales and Commitments (Continued) 6. Other Commitments - PEDC Daisy Dairy — In 2009, the Board of Directors reached an incentive agreement with Daisy Dairy providing that upon the creation and retention of jobs, PEDC will reimburse Daisy Dairy for the difference between Daisy Dairy's annual potable water bill from the City and Daisy Dairy's fixed annual water bill (calculated at a rate of $1.20/1,000 gallons) multiplied by the actual usage for the year. The remaining balance is estimated to be $171,550. American SpiralWeld - On October 1, 2018, the Board of Directors reached an incentive agreement with American SpiralWeld Pipe Company, LLC. PEDC will invest up to $4,700,000 in cash, land, and improvements in connection with a new manufacturing facility, job creation, and employment retention. The remaining balance is estimated to be $1,207,545. Huhtamaki — On September 17, 2019, the Board of Directors reached a performance agreement with Huhtamaki providing that upon the retention of jobs, PEDC will provide funds to help establish the rail spur from the north/south rail to the Huhtamaki plant. The remaining balance is estimated to be $102,000. J. Skinner — On May 7, 2020, the Board of Directors reached an incentive and performance agreement with J. Skinner providing that upon the retention of jobs, PEDC will provide funds in support of the rail project. The remaining balance is estimated to be $300,000. Turner Industries Group, LLC — On June 1, 2020, the Board of Directors reached a performance agreement with Turner Industries providing that upon retention of jobs, PEDC will provide $400,000 in two equivalent installments. The remaining balance is estimated to be $200,000. I. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates calculated under the agreement. There has been no significant reduction in insurance coverage during the year ended September 30, 2020. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. J. Capital Leases In September 2015, the City began leasing equipment under an agreement classified as a capital lease due to a bargain purchase option. The capital lease and accumulated amortization are as follows: Capital Lease Equipment, at Cost Less: Accumulated Amortization Capital Lease Equipment, Net $ 617,114 285,828 $ 331,286 58