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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2023
<br />I. Summer of Sipni,f cant,,,,wAccountin Policies (Continued)
<br />F. Budgetary Information (Continued)
<br />1. Budgetary Basis of Accounting (Continued)
<br />financial activities, which are not subject to an appropriated budget and the appropriation process or to any
<br />legally authorized nonappropriated budget review and approval process. The community development
<br />block grant fund is not annually appropriated. The City has no permanent or special revenue funds which
<br />are reported as major funds.
<br />At the close of each fiscal year, any unencumbered appropriation balance (appropriations including prior
<br />year encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated
<br />fund balance.
<br />At least thirty days prior to the beginning of each fiscal year, the City Manager submits to the City Council
<br />a proposed budget for the fiscal year beginning on the following October 1. The operating budget,
<br />which represents the financial plan for the ensuing fiscal year, includes proposed expenditures and the
<br />means of financing them. Public hearings are conducted at which all interested persons' comments
<br />concerning the budget are heard.
<br />The budget for the next fiscal year is legally enacted by the City Council through passage of an ordinance
<br />not later than the twenty-seventh day of the last month of the fiscal year. If the City Council does not enact
<br />the budget within this time period, then the budget as submitted by the City Manager becomes the legally
<br />authorized budget. An annual budget is not legally adopted for the Library Memorial Fund, a nonmajor
<br />special revenue fund.
<br />2. Excess of Expenditures Over Appropriations
<br />For the year ended September 30, 2023, expenditures may not legally exceed appropriations at the
<br />department level for each legally adopted annual operating budget. The City Manager may, without
<br />Council approval, transfer appropriation balances from one expenditure account to another within a
<br />department or agency of the City. The City Council, however, must approve any transfer or unencumbered
<br />appropriation balances or portions thereof from one department or agency to another. During the year
<br />ended September 30, 2023, the City Council approved a transfer of $1,808,740 from various departments to
<br />other departmental line items. Expenditures exceeded appropriations in the following departments:
<br />Manager $266, Municipal Court $24,167, Clerk $2,644, Finance $278,915, Police $302,199, Fire $3,219,
<br />Public Works $2,215, Parks and Recreation $899, Health $4,618,342, Transfers Out $1,822,765.
<br />G. Assets, Liabilities, and Equity
<br />1. Cash and Cash Equivalents
<br />For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand,
<br />demand deposits, and short-term investments. with original maturities of three months or less from date of
<br />acquisition.
<br />2. Investments
<br />Investments are reported in the accompanying balance sheet at fair value with changes in fair value being
<br />reported as part of investment income. The City and PEDC hold investments in two external investment
<br />pools, Texas Class and Lone Star Investments. Both investment pools carry investments at amortized
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