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<br />City of Paris, Texas
<br />Notes to Financial Statements
<br />September 30, 2006
<br />
<br />IV. Detailed Notes on All Funds and Component Unit (Continued)
<br />
<br />G. Long-Term Debt (Continued)
<br />
<br />Water and Sewer Revenue Bonds and Certificates of Obligation:
<br />
<br />$5,000,000 Waterworks and Sewer System Revenue Bonds, Series 1997, due in annual
<br />installments varying from $245,000 to $420,000 with final payment due June 15,2016. Interest is
<br />payable semi-annually at rates ranging from 4.5% to 6.5%.
<br />
<br />$6,905,000 Waterworks and Sewer System Revenue Refunding Bonds, Series 1998, due in annual
<br />installments varying from $670,000 to $850,000 with final payment due December 15, 2011.
<br />Interest is payable semi- annually at rates ranging from 4.4% to 4.95%.
<br />
<br />$5,810,000 Tax and Revenue Refunding Bonds, Series 1998, due in annual installments varying
<br />from $560,000 to $715,000 with final payment due December 15, 2011. Interest is payable semi-
<br />annually at rates ranging from 4.4% to 4.95%.
<br />
<br />$9,500,000 Waterworks and Sewer System Revenue Bonds, Series 2000, due in annual
<br />installments varying from $400,000 to $835,000 with final payment due June 15,2020. Interest is
<br />payable semi-annually at rates ranging from 5.375% to 6.875%.
<br />
<br />$5,130,000 Tax and Revenue Refunding Bonds, Series 2001, due in annual installments varying
<br />from $500,000 to $605,000 with final payment due December 15,2011. Interest is payable semi-
<br />annually at rates ranging from 3.50% to 4.125%.
<br />
<br />On June 15,2007, for series 1997; on December 15,2008, for both 1998 series; on June 15,2010,
<br />for Series 2000; and on December 15, 2009, for Series 2001, or any date thereafter, the unpaid
<br />installments of principal may be prepaid or redeemed prior to their scheduled due dates at the
<br />option of the City.
<br />
<br />The revenues 9f the Waterworks and Sewer System, after deducting the expenses of operation and
<br />maintenance, are pledged for payment of bonds and interest. The ordinances authorizing the
<br />issuance of the bonds require that monthly deposits be made to Interest and Sinking Funds in
<br />amounts sufficient to pay the next maturing bonds and interest.
<br />
<br />A Reserve Fund is required to be accumulated with a required reserve amount of at least
<br />$1,677,519, the average annual principal and interest requirements of the 1997, 1998, and 2000
<br />Series bonds. The ordinances also call for the creation of a Contingency Fund into which equal
<br />monthly deposits are made until the balance is $500,000. At September 30, 2006, the asset
<br />balances in the Interest and Sinking Funds, Reserve Fund, and Contingency Fund are $1,993,586,
<br />$1,849,819, and $645,234, respectively. In addition, Series 1994 and Series 1998 Tax and
<br />Revenue Refunding Bonds ordinances require that ad valorem taxes be levied and collected
<br />at a rate sufficient to pay bonds and interest as they come due.
<br />
<br />Water Rights Debt:
<br />
<br />The City has rights to water storage at Pay Mayse Lake. Payments for these rights are $49,826
<br />due annually, including principal and interest at 3.137% through 2017 and $25,211 for ten years
<br />after that.
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