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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2021 <br />IV. Detailed Notes on All Activities and Funds (Continued) <br />H. Water Sales and Commitments (Continued) <br />6. Other Commitments - PEDC <br />American SpiralWeld - On October 1, 2018, the Board of Directors reached an incentive agreement with <br />American SpiralWeld Pipe Company, LLC. PEDC will invest up to $4,700,000 in cash, land, and <br />improvements in connection with a new manufacturing facility, job creation, and employment retention. <br />The remaining balance is estimated to be $1,000,000. <br />Huhtamaki — On September 17, 2019, the Board of Directors reached a performance agreement with <br />Huhtamaki providing that upon the retention of jobs, PEDC will provide funds to help establish the rail <br />spur from the north/south rail to the Huhtamaki plant. The remaining balance is estimated to be $102,000. <br />Metro Gate — On January 22, 2021, the Board reached a performance agreement with Metro Gate and <br />Manufacturing Company, Inc. PEDC will provide $120,000 for the creation of 40 full-time employees paid <br />out in installments over 5 years and $40,000 for expected capital expenditures for a total of $160,000. The <br />remaining balance is estimated to be $120,000. <br />I. Risk Management <br />The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors <br />and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from <br />commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain <br />adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also <br />maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates <br />calculated under the agreement. There has been no significant reduction in insurance coverage during the year <br />ended September 30, 2021. There have been no settlements in excess of insurance coverage in any of the prior <br />three fiscal years. <br />J. Capital Leases <br />In September 2015, the City began teasing equipment under an agreement classified as a capital lease due to a <br />bargain purchase option. The capital lease and accumulated amortization are as follows: <br />Capital Lease Equipment, at Cost <br />Less: Accumulated Amortization <br />Capital Lease Equipment, Net <br />$ 617,114 <br />348,241 <br />$ 268,873 <br />59 <br />