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<br />City of Paris, Texas
<br />Notes to Financial Statements
<br />September 30, 2005
<br />
<br />IV. Detailed Notes on All Funds (Continued)
<br />
<br />G. Long-Term Liabilities (Continued)
<br />
<br />PEDe has two notes payable to a bank to fund an incentive agreement with a corporation planning
<br />to create and operate a computer services business in Paris, Texas and for funding for an industrial
<br />park. One note bears interest at a rate of 3.692% with principal and interest payments due on a
<br />monthly basis. The balance of the note at September 30, 2005, was $573,083. A second note
<br />bears interest at a rate of 4.942% with principal and interest due on a monthly basis. The balance as
<br />of September 30, 2005, was $865,384. Both notes are secured by a tax assignment and security
<br />agreement and contain, to the extend permitted by law, a right of set off in all accounts PEDC has
<br />with the lender.
<br />
<br />PEDC has outstanding Paris Economic Development Corporation Taxable Sales Tax Revenue
<br />Bonds, Series 1998, originally issued at $4,200,000, bearing interest at 6.625% to 7.75%. Principal
<br />payments are due serially in varying annual amounts to September 1, 2018, from $165,000 to
<br />$365,000.
<br />
<br />Sales and Use Taxes (one-quarter of one percent) levied by the City of Paris, Texas, within its
<br />boundaries under the Development Corporation Act of 1979, are pledged for payment of bonds and
<br />interest. The resolution authorizing the issuance of the bonds requires that monthly deposits be
<br />made to the Debt Service Fund in an amount sufficient to pay the next maturing bonds and interest.
<br />
<br />A Reserve Fund is required to be maintained with a balance of at least $388,708, the average
<br />annual principal and interest requirements of the bonds. At September 30,2005, the balances in the
<br />Debt Service Fund and Reserve Fund are $29,542 and $410,458, respectively.
<br />
<br />Debt Service requirements related to these bonds and notes are as follows:
<br />
<br />Year Ending Bond Debt Requirements . Note Payable Note Payable
<br />September 30, Principal Interest Principal Interest Principal Interest Total
<br />2006 $ 165,000 $ 220,224 $ 201,620 $ 18,018 $ 187,427 $ 39,074 $ 831,363
<br />2007 180,000 207,436 209,299 10,340 197,023 29,477 833,575
<br />2008 190,000 193,486 162,164 2,549 207,058 19,442 774,699
<br />2009 200,000 178,761 217,733 8,767 605,261
<br />2010 215,000 166,261 56,143 473 437,877
<br />2011-2015 1,320,000 605,471 1,925,471
<br />2016-2018 1,025,000 138,394 1,163,394
<br /> $ 3,295,000 $ 1,710,033 $ 573,083 $ 30,907 $ 865,384 $ 97,233 $ 6,571,640
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