25.1 - ACFR 9-30-2022 with Continuing Disclosure Tables

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CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2022 IV. Detailed Notes on All Activities and Funds (Continued) H. Water Sales and Commitments (Continued) 6. Other Commitments - PEDC 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 $1,000,000. Metro Gate — On January 22, 2021, the Board of Directors reached a performance agreement with Metro Gate and Manufacturing Company, Inc. PEDC will provide $120,000 for the creation of 40 full-time employees paid out in installments over 5 years and $40,000 for expected capital expenditures for a total of $160,000. The remaining balance is estimated to be $69,000. Blossom Aerospace — On March 1, 2022, the Board of Directors reached an incentive agreement with Blossom Aerospace Texas, LLC. PEDC will invest up to $350,000 for the creation of 70 new positions at its Lamar County facility paid out in installments over 5 years. The remaining balance is estimated to be $350,000. Lionshead Specialty Tire and Wheel — On June 21, 2022, the Board of Directors reached a performance agreement with Lionshead Paris, LLC. PEDC will invest up to $807,526 in cash, land, and improvements in connection with a new assembly and warehousing plant, job creation, and employment retention. The remaining balance is estimated to be $807,526. L 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, 2022. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. J. Financed Purchases In September 2015, the City began leasing equipment under an agreement classified as a financing purchase due to a bargain purchase option. Equipment purchased through the agreement are pledged as security for repayment of the lease liability. The present value and accumulated amortization are as follows: Financed Purchase — Equipment, at Cost Less: Accumulated Amortization Financed Purchase — Equipment, Net 65 $ 617,114 412,526 $ 204,588