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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2023
<br />Detailed Notes on All Activities andlunds (Continued)
<br />H. Water Sales and Commitments (Continued)
<br />6. Other Commitments - PEDC
<br />Metro Gate — On January 22, 2021, the Board of Directors reached a performance agreement with Metro
<br />Gate and Manufacturing Company, Inc. PEDC will provide $120,000 for the creation of 40 full-time
<br />employees paid out in installments over 5 years and $40,000 for expected capital expenditures for a total of
<br />$160,000. The remaining balance is estimated to be $69,000.
<br />Lionshead Specialty Tire and Wheel — On June 21, 2022, the Board of Directors reached a performance
<br />agreement with Lionshead Paris, LLC. PEDC will invest up to $807,526 in cash, land, and improvements
<br />in connection with a new assembly and warehousing plant, job creation, and employment retention. The
<br />remaining balance is estimated to be $583,320.
<br />Universal Fabricating USA, Inc. — On February 21, 2023, the Board of Directors reached a performance
<br />agreement with Universal Fabricating USA, Inc. PEDC will provide up to $600,000 for the creation of 100
<br />full-time employees paid out in installments over 5 years and $75,000 as an employee relocation grant. The
<br />remaining balance is estimated to be $600,000.
<br />Ametsa Packaging, LLC — On July 12, 2023, the Board of Directors reached a performance agreement with
<br />Ametsa Packaging, LLC. PEDC will provide up to $665,000 for the creation of 95 full-time employees
<br />paid out in installments over 5 years and $100,000 as an equipment relocation grant. The remaining balance
<br />is estimated to be $765,000.
<br />Huhtamaki, LLC — On June 15, 2023, the Board of Directors reached an incentive agreement with
<br />Huhtamaki, LLC. PEDC will provide land, with a fair value of approximately $376,000, and a rail road
<br />infrastructure grant in the amount of $625,000. The remaining balance is estimated to be $625,000.
<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, 2023. There have been no settlements in excess of insurance coverage in any of the prior
<br />three fiscal years.
<br />J. Financed Purchases
<br />In September 2015, the City began leasing equipment under an agreement classified as a financing purchase due
<br />to a bargain purchase option. Equipment purchased through the agreement are pledged as security for
<br />repayment of the lease liability. The present value and accumulated amortization are as follows:
<br />Financed Purchase — Equipment, at Cost $ 617,114
<br />Less: Accumulated Amortization 478,739
<br />Financed Purchase — Equipment, Net $ 1389375
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