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City of Paris, Texas
<br />Notes to Financial Statements
<br />September 30, 2007
<br />IV. Detailed Notes on All Funds and Component Unit (Continued)
<br />G. Long-Term Debt (Continued)
<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
<br />made to the Debt Service Fund in an amount sufficient to pay the next maturing bonds and interest.
<br />A Reserve Fund is required to be maintained with a balance of at least $388,708, the average
<br />annual principal and interest requirements of the bonds. At September 30, 2007, the balances in the
<br />Debt Service Fund and Reserve Fund are $32,450 and $449,957, respectively.
<br />Debt Service requirements related to these bonds and notes are as follows:
<br />Year Ending Bond Debt Requirements Note Payable Note Payable
<br />September 30, Principal Interest Principal Interest Principal Interest Total
<br />2008 $ 190,000 $ 193,486 $ 161,990 $ 2,549 $ 207,058 $ 19,442 $ 774,525
<br />2009 200,000 178,761 - - 217,733 8,767 605,261
<br />2010 215,000 166,261 - - 55,959 473 437,693
<br />2011 230,000 152,716 - - - - 382,716
<br />2012 245,000 138,111 - - - - 383,111
<br />2013-2017 1,505,000 428,856 - - - - 1,933,856
<br />2018-2019 365,000 24,181 - - - - 389,181
<br />$ 2,950,000 $ 1,282,372 $ 161,990 $ 2,549 $ 480,750 $ 28,682 $ '4,906,343
<br />H. Restricted Net Assets and Restricted Asset Accounts
<br />The City's Water and Sewer Revenue bonds and Certificates of Obligation covenants require
<br />certain restrictions of net assets. The restricted portions are as follows:
<br />Restricted for Revenue Bond Operations and Maintenance $ 1,199,091
<br />Restricted for Contingency 503,692
<br />Total Restricted Net Assets $ 1,702,783
<br />Collections of Notes Receivable are restricted by grant agreements to be used for building
<br />rehabilitation.
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