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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2025
<br />III. Stewardship, Compliance, andwAccountabiliti:
<br />Violations of Legal or Contractual Provisions
<br />Note I.F.2, on the Excess of Expenditures Over Appropriations, describes budgetary violations that occurred for
<br />the year ended September 30, 2025.
<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 party. 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
<br />approved prior to deposit of funds as provided by law.
<br />At September 30, 2025, the City maintained deposits at a bank with a carrying amount of $58,738,331, and the
<br />bank's balances were $61,487,478. As of September 30, 2025, $750,000 was insured by FDIC and $60,737,478
<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 $15,110,907 is considered a deposit for this footnote but is classified as an
<br />investment on the face of the financial statements.
<br />Discretely Presented Component Unit
<br />At September 30, 2025, $250,000 was insured by FDIC and $1,950,634 was collateralized with securities
<br />pledged. PEDC's carrying amount of demand deposits was $2,092,082 and the bank balance was $2,200,634.
<br />The carrying amount of cash includes amounts related to custodial funds that are not reported in the component
<br />unit column of the financial statements.
<br />B. Investments
<br />As of September 30, 2025, the City had the following investments:
<br />Tylae of Secuny
<br />Primary Government
<br />Federal Home Loan Mortgage Corporation
<br />Federal National Mortgage Association
<br />Federal Home Loan Banks Debenture
<br />Federal Farm Credit Banks Debenture
<br />Certificates of Deposit
<br />U.S. Treasury Bills OID
<br />U.S. Treasury Notes
<br />Paris Economic Development Corporation
<br />Texas Class Investment Pool
<br />Totals
<br />Fair Value
<br />2,351,314
<br />1,311,756
<br />1,251,400
<br />190,662
<br />15,110,907
<br />34,314,385
<br />13,909,197
<br />_.. 22471.7491..
<br />$
<br />70911 118
<br />Weighted
<br />Average
<br />Maturity
<br />(Days)
<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 J.P. Morgan Investment Management Inc. and Hilltop
<br />Securities Inc. LOGIC uses amortized cost rather than market value to report net position to compute share
<br />prices. Accordingly, fair value of the position of LOGIC is the same as the net asset value of LOGIC shares.
<br />LOGIC issues an annual report that can be obtained upon request. The accounts remain open at September 30,
<br />2025. However, the City had a zero balance at year end.
<br />44
<br />82
<br />Weighted
<br />Average
<br />Credit
<br />Maturity
<br />.............RatmB.._._._
<br />AA+
<br />6.42
<br />A-1+
<br />5.60
<br />AA+
<br />2.50
<br />AA+
<br />0.89
<br />Not Rated
<br />0.33
<br />0.17
<br />AAAm
<br />1.08
<br />Weighted
<br />Average
<br />Maturity
<br />(Days)
<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 J.P. Morgan Investment Management Inc. and Hilltop
<br />Securities Inc. LOGIC uses amortized cost rather than market value to report net position to compute share
<br />prices. Accordingly, fair value of the position of LOGIC is the same as the net asset value of LOGIC shares.
<br />LOGIC issues an annual report that can be obtained upon request. The accounts remain open at September 30,
<br />2025. However, the City had a zero balance at year end.
<br />44
<br />82
<br />
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