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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2022
<br />III. Stewardship, Compliance. and Accountability
<br />Violations of Legal or Contractual Provisions
<br />Note LF.2, on the Excess of Expenditures Over Appropriations, describes budgetary violations that occurred for
<br />the year ended September 30, 2022.
<br />IV. Detailed Notes on All Activities and Funds
<br />A. Cash and Cash Equivalents
<br />Custodial Credit Risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be
<br />returned or the City will not be able to recover collateral securities in the possession of an outside party. The
<br />City's policy requires deposits to be secured by collateral valued at market or par, whichever is lower, less the
<br />amount of the Federal Deposit Insurance Corporation (FDIC) insurance. Collateral agreements must be
<br />approved prior to deposit of funds as provided by law.
<br />At September 30, 2022, the City maintained deposits at a bank with a carrying amount of $36,652,797, and the
<br />bank's balances were $36,135,571. As of September 30, 2022, $348,295 was insured by FDIC and $36,304,502
<br />was collateralized with securities held by the pledging financial institution's agent in the name of the City.
<br />B. Investments
<br />As of September 30, 2022, the City had the following investments:
<br />Type of Security
<br />Primary Government
<br />Federal Home Loan Mortgage Corporation
<br />Federal National Mortgage Association
<br />Certificates of Deposit
<br />U.S. Treasury Bills OID
<br />U.S. Treasury Notes
<br />Paris Economic Development Corporation
<br />Texas Class Investment Pool
<br />Totals
<br />The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
<br />LOGIC is a public funds investment pool managed by Southwest Securities Group, Inc. LOGIC uses amortized
<br />cost rather than market value to report net position to compute share prices. Accordingly, fair value of the
<br />position of LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can
<br />be obtained upon request. The accounts remain open at September 30, 2022. However, the City had a zero
<br />balance at year end.
<br />The City invested in Texas Cooperative Liquid Assets Security System (Texas CLASS) Trust. Texas CLASS
<br />was created as an investment pool for its participants pursuant to Section 2256.016 of the Public Funds
<br />Investment Act, Texas Government Code, or other laws of the State of Texas governing the investment of funds
<br />of a participant or funds under its control. Texas CLASS is administered by Cutwater Investor Services Corp.
<br />with Wells Fargo Bank Texas, NA as the Custodian. Texas CLASS is supervised by a Board of Trustees who
<br />are elected by the participants. Texas CLASS uses amortized cost rather than market value to report net position
<br />to compute share prices. Accordingly, the fair value of the position in Texas CLASS is the same as the net asset
<br />value of Texas CLASS shares. Texas CLASS issues a publicly available annual report that can be obtained at
<br />www.texasclass.com. The City had a zero balance at year end.
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<br />Weighted
<br />Weighted
<br />Average
<br />Average
<br />Credit
<br />Maturity
<br />Maturity
<br />Fair Value
<br />Rating
<br />(Years)
<br />(Days)
<br />$ 3,569,624
<br />AA+
<br />9.30
<br />3,288,098
<br />AA+
<br />7.25
<br />98,295
<br />Not Rated
<br />0.58
<br />8,946,785
<br />0.25
<br />34,297,042
<br />0.92
<br />2,131,500
<br />AAAm
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<br />$ 52,331,344
<br />The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
<br />LOGIC is a public funds investment pool managed by Southwest Securities Group, Inc. LOGIC uses amortized
<br />cost rather than market value to report net position to compute share prices. Accordingly, fair value of the
<br />position of LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can
<br />be obtained upon request. The accounts remain open at September 30, 2022. However, the City had a zero
<br />balance at year end.
<br />The City invested in Texas Cooperative Liquid Assets Security System (Texas CLASS) Trust. Texas CLASS
<br />was created as an investment pool for its participants pursuant to Section 2256.016 of the Public Funds
<br />Investment Act, Texas Government Code, or other laws of the State of Texas governing the investment of funds
<br />of a participant or funds under its control. Texas CLASS is administered by Cutwater Investor Services Corp.
<br />with Wells Fargo Bank Texas, NA as the Custodian. Texas CLASS is supervised by a Board of Trustees who
<br />are elected by the participants. Texas CLASS uses amortized cost rather than market value to report net position
<br />to compute share prices. Accordingly, the fair value of the position in Texas CLASS is the same as the net asset
<br />value of Texas CLASS shares. Texas CLASS issues a publicly available annual report that can be obtained at
<br />www.texasclass.com. The City had a zero balance at year end.
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