C.A.F.R., FY 2004-05 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2005 V. Other Information (Continued) E. Civic Center Contract The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby three-sevenths of the hotel/motel tax is to be dedicated to a fund to be used for improving, enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through September 30,2005. F. Contingent Liabilities and Commitments Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. In the past, the City operated a landfill, which was closed several years ago however, the property is still owned. The City is responsible for post-closure care and maintenance, which is not expected to be significant for any future year. Post-closure care is an estimate and subject to changes resulting from inflation, deflation, technology, and changes in applicable laws and regulations. PEDC had no outstanding incentive agreements related to economic development except the one related to a note receivable (Note IV.B.). G. Postemployment Benefits Other Than Pensions The City has in effect a plan adopted by City Council resolution whereby persons who retire before age sixty-five will be provided health care coverage until they become sixty-five. The City's contributions are fmanced on a pay-as-you-go basis and for the year ended September 30, 2005, the cost was approximately $176,000 for 35 retired employees. An additional 13 employees were eligible for this benefit. H. Deferred Compensation Plan The City offers its employees two deferred compensation plans created in accordance with Internal Revenue Code Section 457. I. Employee Retirement Systems and Plans The City maintains a non-traditional defined benefit retirement plan for all full-time employees except for firefighters and a single-employer, defined benefit plan for firefighters. 51