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<br /> Long-Term Debt
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<br /> At the end of the current fiscal year, the City of Paris had total bonded debt outstanding of $28,595,000. Of this amount,
<br /> $10,680,400 comprises debt bac d by the full faith and credit of the government, and $17,914,600 represents bonds secured
<br /> solely by specified revenue sources (i.e., revenue bonds). The City also has a $17,994 note outstanding.
<br /> City of Paris - Outstanding Long-Term Debt
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<br /> Governmental Activities Business-Type Activities Total
<br /> 2009 2008 2009 2008 2009 2008
<br /> General
<br /> Obligation Bonds $ 10,680 400 $ 11,504,600 $ - $ - $ 10,680,400 $ 11,504,600
<br /> Revenue Bonds - 17,914,600 20,890,400 17,914,600 20,890,400
<br /> Note 17 994 26,354 - - 17,994 26,354
<br /> Total $ 10,698 394 $ 11,530,954 $ 17,914,600 $ 20,890,400 $ 28,612,994 $ 32,421,354
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<br /> The City of Paris' bond debt d creased by $3,800,000 (11.73%) during the fiscal year. The City of Paris maintains an
<br /> underlying bond rating from Mo dy's of A2 (affirmed January 2010) with that rating being upgraded to Aa3 when the issues
<br /> are insured. In February of 2010, S&P granted the City an underlying rating of A+, upgraded to AAA when insured.
<br /> In February of 2010, the City re nded most of its general obligation and revenue debt into a single general obligation issue
<br /> in the amount of $17,075,000. This action was taken due to the drop in interest rates which allowed for total debt service
<br /> savings of $1,993,902 ($1,769,1 4 present value of savings). This was accomplished with no extension of the original debt
<br /> period. The total debt service savings amounted to 11.58% and present value savings amount to 10.27% of the refunded
<br /> bonds.
<br /> In March of 2010, the City issued $3,005,000 in combination tax and revenue certificates of obligation for a road
<br /> improvement and expansion project. These 20 year certificates have a true interest cost of only 3.69%.
<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 leg 1 debt margin can be calculated. The state Attorney General has traditionally allowed up to
<br /> $1.50 per $100 valuation to be a )plied to debt service. The City levied a tax rate of $0.52 per $100 valuation for the 2008-09
<br /> fiscal years. This rate was broke down into $0.42439 per $100 valuation for operations and $0.09561 per $100 valuation for
<br /> debt service. Using the traditional allowance of the state Attorney General as a guide, the City of Paris is utilizing only 6.37%
<br /> of its debt capacity.
<br /> Additional information on the City of Paris' long-term debt can be found in note IV. F. of the Notes to the Financial
<br /> Statements.
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<br /> Economic Factors and Next Year's Budgets and Rates
<br /> • Sales tax revenues are rejected to decrease 8% next year.
<br /> • New construction amo nted to 10 residential units and 17 commercial units.
<br /> • Local population growl is expected to be minimal.
<br /> • The tax rate is expecte to remain at $.52 per $100 of value.
<br /> • Electrical utility franch se fees are expected to decrease due to a Public Utility Commission ruling.
<br /> • Decrease in fuel and chemicals cost.
<br /> All of these factors were considered in preparing the City of Paris' budget for 2009-10.
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<br /> Requests for Information
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<br /> This financial report is designe to provide a general overview of the City of Paris' finances for all those with an interest in
<br /> the government's finances. Qu stions concerning any of the information provided in this report or requests for additional
<br /> information should be addresse to the Office of the Finance Director, 135 S.E. First Street, City of Paris, Texas 75460.
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