|
<br />.P ~
<br />
<br />
<br />~i}"
<br />"-:;''''''''''M''w " ,,,,,,,,,"w (C'" *I"lf' "~' @wF"
<br />" ~ ~ I" l~' l ~'~ ,4
<br />#' """t i,'".:,' ,',',"",',\. "',',',",','""""",, \ '\ ,~ , ~ ~ .'.,
<br />, :,' ,,::.... ' $;' ~, ~': ~\ ' ::;: . ",J i:,':'
<br />'\\~'''; ~'\"\%\\~ ~\"'~<<*' '*'~\,,'\ ",*'::':i~" \'\~\v\
<br />
<br />$' IjA\ B#I~~ 0
<br />R"\'~n ~~"
<br />\:\,,~ \,*,~A'\*~'~~\\'~~~,*,~~~\,,*~':
<br />
<br />February 27,2007
<br />
<br />The Honorable Kay Bailey Hutchison
<br />284 Russell Senate Office Building
<br />Washington, DC 20510
<br />
<br />Reference: Prepayment of water purchase contract on Pat Mayse Reservoir
<br />
<br />Dear Senator Hutchison:
<br />
<br />The City of Paris, Texas would respectfully request consideration of the following
<br />proposal to conclude the purchase of all water contracts between the U. S. Corps of
<br />Engineers and the City of Paris, Texas.
<br />
<br />City of Paris, Texas
<br />Summary of Proposed Financing to U.S. Corps of Engineers
<br />To Prepay the Pat Mayse Reservoir
<br />Purchase Contract for Water Rights
<br />
<br />Whereas the City of Paris owes the U.S. Corps of Engineers ("the Corps") as of March
<br />31, 2007 the following amounts:
<br />
<br />1. Principal payoff on space one
<br />2. Principal payoff on space two
<br />3. Principal payoff on spaces three, four, & five
<br />4. Accrued interest on above $1,925,722 principal
<br />(3.137% compounded annually since 6-15-78);
<br />
<br />$ 208,515.69 (paid current)
<br />$ 370,399.16 (paid current)
<br />$1,925,722.00
<br />$2,864,691.22
<br />
<br />Whereas the city contends that compounded interest vs. simple interest is not a
<br />reasonable charge to the citizens of Paris;
<br />
<br />Whereas the amount of accrued interest on the outstanding principal of $1 ,925,722.00
<br />calculated using simple interest vs. compounded interest would be only $1,739,301.70 vs.
<br />$2,864,691.22 (see attached schedule A);
<br />
<br />Whereas the city may not be financially able to pay the amount due in the future under
<br />the existing contract terms;
<br />
<br />The City of Paris thereby proposes a cash settlement on or about 6-1-07 of$3.635.819.24
<br />based on the following amounts;
<br />
<br />EXHIBIT A
<br />
<br />P,O, BOX 9037 . PARIS. TEXAS 75461-9037 . (903) 785-7511 . FAX (903) 785-8519
<br />
|