Laserfiche WebLink
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 />M. Restricted Net Position and Restricted Asset Accounts <br />In order to safeguard the financial integrity of the water and sewer system, the City Council approved a <br />resolution establishing and maintaining funds comparable to those required by the revenue bonds refunded in <br />2010. At September 30, 2020, these accounts, shown as cash and investments on the Statement of Net Position <br />— Proprietary Funds, are as follows: <br />Reserve Fund <br />Contingency Fund <br />$ 6,200,074 <br />1,928,479 <br />Collections of notes receivable are restricted by grant agreements to be used for building rehabilitation. <br />The balances of the City's restricted asset accounts are as follows: <br />Cash and Cash <br />Equivalents <br />Grants Receivable $ - <br />Lake Crook 3,802 <br />Contingency 969,661 <br />Loan 35,250 <br />Bond Reserves and Sinking Funds 2,728,089 <br />Construction 4,042,174 <br />Other 113,499 <br />Total Restricted Assets $ 7,892,475 <br />N. Related Party <br />Certificates of <br />Deposit and <br />Other <br />Other <br />Investments <br />Receivables <br />$ - <br />$ 1,820,326 <br />577,745 <br />- <br />2,234,130 <br />- <br />2,772,407 <br />- <br />$ 5,584,282 <br />$ 1,820,326 <br />The City Council appoints the governing board of an entity which is legally separate from the City. The City is <br />not able to impose its will on this entity, and a financial benefit/burden relationship is not present; therefore, it is <br />considered a related organization. <br />O. Contingent Liabilities <br />Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, <br />principally the federal government. Any disallowed claims, including amounts already collected, may constitute <br />a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor <br />cannot be determined at this time although the City expects such amounts, if any, to be immaterial. <br />The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently <br />determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material <br />adverse effect on the financial condition of the City. <br />64 <br />