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<br />Paris Economic Development Corporation
<br />(A Component Unit of the City of Paris, Texas)
<br />Notes to Financial Statements (Continued)
<br />September 30, 2005
<br />
<br />Note 6: Notes and Bonds Payable (Continued)
<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 made
<br />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 annual
<br />principal and interest requirements of the bonds. At September 30, 2005, the balances in the Debt
<br />Service Fund and Reserve Fund are $29,542 and $410,458, respectively.
<br />
<br />Debt Service requirements related to these bonds and the note are as follows:
<br />
<br />Year Ending Bonded 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
<br />
<br />Note 7: Commitments
<br />
<br />There are currently no outstanding incentive agreements by PEDC except the one discussed in Note
<br />5.
<br />
<br />Note 8: Risk Management
<br />
<br />PEDC is exposed to various risks of loss and has obtained insurance related to general liability, loan
<br />enforcement liability, errors and omissions liability, and automobile liability.
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<br />7
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