C.A.F.R., FY 2006-07 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements September 30, 2007 V. Other Information (Continued) F. Contingent Liabilities and Commitments Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. In connection with a housing infrastructure grant awarded in 1999, the grantor has stated that the City is not in compliance with the requirements of the grant and $393,500 of the cost if being questioned. The City feels that the non compliance is due to lack of oversight by the developer and is attempting to negotiate a fmal settlement. In the past, the City operated a landfill, which was closed several years ago however, the property is still owned. The City is responsible for post-closure care and maintenance, which is not expected to be significant for any future year. Post-closure care is an estimate and subject to changes resulting from inflation, deflation, technology, and changes in applicable laws and regulations. PEDC had no outstanding incentive agreements related to economic development. G. Postemployment Benefits Other Than Pensions The City has in effect a plan adopted by City Council resolution whereby persons who retire before age sixty-five will be provided health care coverage until they become sixty-five. The City's contributions are fmanced on spay-as-you-go basis and for the year ended September 30, 2007, the cost was approximately $129,000 for 40 retired employees. An additional 46 employees were eligible for this benefit. H. Deferred Compensation Plan The City offers its employees two deferred compensation plans created in accordance with Internal Revenue Code Section 457. I. Employee Retirement Systems and Plans The City maintains anon-traditional defined benefit retirement plan for all full-time employees except for firefighters and asingle-employer, defined benefit plan for firefighters. 48