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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 />K. Long -Term Liabilities (Continued)
<br />General Obligation Certificates of Obligation and Other Long -Term Obligations (Continued):
<br />$8,780,000 General Obligation Bonds, Series 2016, due in annual installments varying from $340,000 to
<br />$550,000 with final payment due December 15, 2036. Interest is payable semi-annually at rates ranging from
<br />3.0% to 4.0%. On December 15, 2026, or any date thereafter, the outstanding bonds may be redeemed prior to
<br />their scheduled maturities at the City's option. These bonds were issued December 1, 2016, at a premium for
<br />the purpose of constructing and acquiring improvements and equipping the City's waterworks and sewer system
<br />and for replacing and extending water distribution lines and sewer collection lines and construction repairs to
<br />streets and drainage infrastructure necessitated by such water and sewer line construction. Voters approved the
<br />issuance of $45,000,000 in tax bonds. The bonds are reported as obligations of the Enterprise Fund.
<br />$1,390,000 General Obligation Bonds, Series 2018, due in annual installments varying from $100,000 to
<br />$220,000 with final payment due June 15, 2028. Interest is payable semi-annually at 2.59%. On December 15,
<br />2026, or any date thereafter, the outstanding bonds may be redeemed prior to their scheduled maturities at the
<br />City's option. These bonds were issued May 1, 2018, in the amount of $1,200,000 for the purpose of
<br />constructing and acquiring improvements and equipping the City's waterworks and sewer system and for
<br />replacing and extending water distribution lines and sewer collection lines and construction repairs to streets
<br />and drainage infrastructure necessitated by such water and sewer line construction and in the amount of
<br />$190,000 to pay the costs of construction, improving, extending, expanding, upgrading and developing streets
<br />and roads, bridges and intersections including, utility relocation, landscapting, sidewalks, traffic safety and
<br />operational improvements, the purchase of any necessary right-of-way, drainage and other related costs. The
<br />bonds are reported as Enterprise Fund debt and General Obligation debt.
<br />$1,500,000 Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020, due in annual
<br />installments varying from $135,000 to $165,000 with final payment due June 15, 2030. Interest is payable semi-
<br />annually at 1.95%. The certificates of this series are not subject to redemption prior to maturity. These bonds
<br />were issued February 1, 2020 for the purpose of paying all or a portion of the City's contractual obligations
<br />incurred in connection with the renovation, repair and other improvement of the City's Love Civic Center and
<br />paying legal, fiscal and engineering fees in connection with such projects. The bonds are reported as General
<br />Obligation debt.
<br />The ordinances require that property taxes be levied and collected at a rate sufficient to pay principal and
<br />interest as they come due. They also require that these funds be placed in special interest and sinking funds
<br />created solely for the benefit of the obligations. At September 30, 2020, the fund balances in the Interest and
<br />Sinking Funds are $1,766,863.
<br />The State of Texas is requiring additional monitoring of a landfill owned by the City that has been closed for
<br />several years. The City and its' consultants estimate that, based on known requirements, future costs may be
<br />$150,000. These costs are subject to change resulting from inflation, deflation, technology, or changes in
<br />applicable laws or regulations.
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