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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2024
<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, 2024.
<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 parry. 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 approved
<br />prior to deposit of funds as provided by law.
<br />At September 30, 2024, the City maintained deposits at a bank with a carrying amount of $49,995,621, and the
<br />bank's balances were $49,829,213. As of September 30, 2024, $605,051 was insured by FDIC and $49,224,162
<br />was collateralized with securities held by the pledging financial institution's agent in the name of the City. The
<br />City's certificate of deposit totaling $105,051 is considered a deposit for this footnote, but is classified as an
<br />investment on the face of the financial statements.
<br />B. Investments
<br />As of September 30, 2024, the City had the following investments:
<br />Type of Security
<br />Primary Government
<br />Federal Home Loan Mortgage Corporation
<br />Federal National Mortgage Association
<br />Federal Home Loan Banks Debenture
<br />Federal Farm Credit Banks Debenture
<br />Certificates of Deposit
<br />U.S. Treasury Bills OID
<br />U.S. Treasury Notes
<br />Paris Economic Development Corporation
<br />Texas Class Investment Pool
<br />Totals
<br />The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
<br />LOGIC is a public funds investment pool managed by Southwest Securities Group, Inc. LOGIC uses amortized
<br />cost rather than market value to report net position to compute share prices. Accordingly, fair value of the position
<br />of LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can be obtained
<br />upon request. The accounts remain open at September 30, 2024. However, the City had a zero balance at year
<br />end.
<br />The City invested in Texas Cooperative Liquid Assets Security System (Texas CLASS) Trust. Texas CLASS was
<br />created as an investment pool for its participants pursuant to Section 2256.016 of the Public Funds Investment
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<br />Weighted
<br />Weighted
<br />Average
<br />Average
<br />Credit
<br />Maturity
<br />Maturity
<br />Fair Value
<br />Rating
<br />(Years)
<br />(Days)
<br />$ 3,260,470
<br />AA+
<br />6.90
<br />1,877,139
<br />AA+
<br />6.11
<br />798,598
<br />AA+
<br />2.24
<br />289,302
<br />AA+
<br />2.03
<br />105,051
<br />Not Rated
<br />0.58
<br />63,999,373
<br />0.28
<br />22,975,119
<br />0.88
<br />2.361.756
<br />AAAm
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<br />$ 95,666,808
<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 position
<br />of LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can be obtained
<br />upon request. The accounts remain open at September 30, 2024. However, the City had a zero balance at year
<br />end.
<br />The City invested in Texas Cooperative Liquid Assets Security System (Texas CLASS) Trust. Texas CLASS was
<br />created as an investment pool for its participants pursuant to Section 2256.016 of the Public Funds Investment
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