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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2024
<br />Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles for
<br />all governmental funds except the capital projects fund, proprietary funds, and library trust fund. The budget
<br />for the capital projects fund is legally adopted for specific projects and may exceed one year. Formal
<br />budgetary integration is not employed for the proprietary funds. The City adopts an annual, informal budget
<br />as a financial plan for all proprietary funds. The library trust fund includes nonbudgeted
<br />L Summarof Significant Accounting 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 legally
<br />authorized nonappropriated budget review and approval process. The community development block grant
<br />fund is not annually appropriated. The City has no permanent or special revenue funds which are reported as
<br />major funds.
<br />At the close of each fiscal year, any unencumbered appropriation balance (appropriations including prior year
<br />encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated fund
<br />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 means
<br />of financing them. Public hearings are conducted at which all interested persons' comments concerning the
<br />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, 2024, expenditures may not legally exceed appropriations at the department
<br />level for each legally adopted annual operating budget. The City Manager may, without Council approval,
<br />transfer appropriation balances from one expenditure account to another within a department or agency of
<br />the City. The City Council, however, must approve any transfer or unencumbered appropriation balances or
<br />portions thereof from one department or agency to another. During the year ended September 30, 2024, the
<br />City Council approved a transfer of $611,035 from various departments to other departmental line items.
<br />Expenditures exceeded appropriations in the following departments: Council $285,806, Manager $31,311,
<br />Municipal Court $15,213, Finance $182,189, Police $1,138,797, Fire $7,988, Community Development
<br />$212,016, Parks and Recreation $11,156, Sanitation $277,519, Traffic and Public Lighting $34,007, Health
<br />$1,947,179, Paris Band $363, Library Services $9,015, Transfers Out $1,471,905.
<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.
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