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Paris Economic Development Corporation
<br />(A Component Unit of the City of Paris, Texas)
<br />Notes to Financial Statements (Continued)
<br />September 30, 2007
<br />Note 6: Notes and Bonds Payable (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 made
<br />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 annual
<br />principal and interest requirements of the bonds. At September 30, 2007, the balances in the Debt
<br />Service Fund and Reserve Fund are $32,450 and $449,957, respectively.
<br />Debt Service requirements related to these bonds and the notes are as follows for the years ended
<br />September 30:
<br /> Bonded Debt Requirements Note Payable Note Payable
<br />Years Principal Interest Principal Interest Principal Interest Total
<br />
<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 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 />A summary of long-term liability transactions for the year ended September 30, 2007, is as follows:
<br /> Balance Balance
<br /> September 30, September 30,
<br /> 2006 Additions Reductions 2007
<br />Bonded Debt $ 3,130,000 $ - $ 180,000 $ 2,950,000
<br />Note Payable 371,360 - 209,370 161,990
<br />Note Payable 677,852 - 197,102 480,750
<br />Total $ 4,179,212 $ - $ 586,472 $ 3,592,740
<br />Note 7: Commitments
<br />There are currently no outstanding incentive agreements by PEDC however, $10,000 has been
<br />approved as a matching contribution for a skills development grant.
<br />Note 8: Risk Management
<br />PEDC is exposed to various risks of loss and has obtained insurance related to general liability, loan
<br />enforcement liability, errors and omissions liability, and automobile liability.
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