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<br />Financial Highlights of the Primary Government
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<br />. The assets of the City of Paris exceeded its liabilities at the close of the most recent fiscal year by $72,541,399 (net
<br />assets), an increase of $3,423,047 or 4.95% over the previous year. Of the amount known as net assets, $18,442,342
<br />(unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors.
<br />. As of the close of the current fiscal year, governmental funds reported combined ending fund balances of
<br />$10,976,111 compared to $11,440,304 the previous year. This amounts to a decrease of $464,193 or 4.06%. While
<br />the overall combined ending fund balances for governmental funds decreased, the unreserved portion of those fund
<br />balances was $9,859,994 or an increase of $3,404,487 (52.73%) over the previous year amount of $6,455,507.
<br />Approximately 89.83% of this total amount or $9,859,994 is available for spending at the government's discretion
<br />(unreserved fund balance).
<br />. At the end of the fiscal year, unreserved fund balance for the general fund was $8,874,883 or 48.78% of total
<br />general fund expenditures.
<br />. The City of Paris' non-current liabilities decreased by $3,349,783 or 7.54% during the current fiscal year.
<br />. Total charges for services for the City of Paris were $17,776,211 compared to $16,130,521 the previous year.
<br />Operating/capital grants & contribution were $1,890,962 compared to $3,018,070 the previous year. General
<br />revenues were $17,095,017 compared to $17,381,374 the previous year.
<br />. Contribution income amounted to $627,205 and there was a gain of$32,600 on the sale of capital assets.
<br />. $1,090,000 in transfers from business-type activities to governmental activities occurred during the year.
<br />. Liabilities decreased $3,622,027 from $46,341,592 to $42,719,565 which was 7.82%.
<br />. Expenses decreased $1,212,734 or 3.51 %.
<br />. The ratio of net assets to expenses was 200.04% for the year 2004-05 and 217.59% for the year 2005-06.
<br />Unrestricted net assets changed from $10,679,508 in 2004-05 to $15,901,209 in 2005-06 an increase of 49.17%.
<br />. The ratio of city-wide debt service to total expenditures was 8.43% for the year 2004-05 and 6.97% for the year
<br />2005-06.
<br />. Net debt to assets, a measure of solvency, was 38.43% in 2004-05 and 35.60% in 2005-06.
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<br />Overview of the Financial Statements
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<br />This discussion and analysis is intended to serve as an introduction to the City of Paris' financial statements. The City of
<br />Paris' financial statements are comprised of three components: 1) government-wide financial statements, 2) fund fmancial
<br />statements, and 3) notes to the financial statements. These reports also contain other supplementary infonnation in addition to
<br />the [mancial statements themselves.
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<br />Government-Wide Financial Statements
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<br />The government-wide financial statements are designed to provide readers with a broad overview of the City of Paris'
<br />finances, in a manner similar to a private-sector business.
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<br />The statement of net assets presents information on all of the City of Paris' assets and liabilities, with the difference between
<br />the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the
<br />financial position of the City of Paris is improving or deteriorating.
<br />
<br />The statement of activities presents infonnation showing how the government's net assets changed during the most recent
<br />fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless
<br />of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only
<br />result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
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<br />Both of the government-wide financial statements distinguish functions of the City of Paris that are principally supported by
<br />taxes and intergovernmental revenues (government activities) from other functions that are intended to recover all or a
<br />significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the
<br />City of Paris include general government, public safety, public works, library, and airport. The business-type activities of the
<br />City of Paris include water production and distribution as well as wastewater collection and treatment. The government-wide
<br />financial statements include not only the City of Paris itself (known as the primary government), but also a legally separate
<br />economic development corporation (known as the component unit) over which the City of Paris is able to exercise significant
<br />control. Financial infonnation for this component unit is reported separately from the financial infonnation presented for the
<br />primary government itself.
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