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Long-term Debt
<br />At the end of the current fiscal year, the City of Paris had total bonded debt outstanding of $36,030,000. Of this amount,
<br />$12,296,600 comprises debt backed by the full faith and credit of the government, and $23,733,400 represents bonds
<br />secured solely by specified revenue sources (i.e., revenue bonds).
<br />Governmental Activities
<br />2007
<br />2006
<br />City of Paris Outstanding Gong-Term Debt
<br />Business-Type Activities Total
<br />2007 2006 2007 2006
<br />General
<br />Obligation Bonds $ 12,296,600 $ 13,054,000 $ - $ - $ 12,296,600 $ 13,054,000
<br />Revenue Bonds - - 23,733,400 26,451,000 23,733,400 26,451,000
<br />.Total $ 12,296,600 $ 13,054,000 $ 23,733,400 $ 26,451,000 $ 36,030,000 $ 39,505,000
<br />The City of Paris' bond debt decreased by $3,475,000 (8.80%) during the fiscal year. The City of Paris maintains an
<br />underlying bond rating from Moody's of A2 with that rating being upgraded to A3 when the issues are insured.
<br />The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of assessed
<br />valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally allowed up to
<br />$1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $0.59225 per $100 valuation for the
<br />2006-07 fiscal year. This rate was broken down into $0.49294 per $100 valuation for operations and $0.09931 per $100
<br />valuation for debt service. Using the traditional allowance of the state attorney general as a guide, the City of Paris is
<br />utilizing only 6.22% of its debt capacity.
<br />Additional information on the City of Paris' long-term debt can be found in note IV. G. of the Notes to the Financial
<br />Statements.
<br />Economic Factors and Next Year's Budgets and Rates
<br />• Sales tax revenues are projected for 5.2% growth.
<br />• Inflation was 2.8% September 30, 2007.
<br />• New construction amounted to 31 residential units and 22 commercial units.
<br />• Local population growth is expected to be minimal.
<br />• The tax rate is expected to be at .56, a decrease of .03225 cents per $100 of value.
<br />All of these factors were considered in preparing the City of Paris' budget for 2007-08.
<br />Requests for Information
<br />This financial report is designed to provide a general overview of the City of Paris' finances for all those with an interest in
<br />the government's finances. Questions concerning any of the information provided in this report or requests for additional
<br />information. should be addressed to the Office of the Finance Director, 135 S.E. First Street, City of Paris, Texas 75460.
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