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<br />
<br />
<br /> City of Paris, Texas
<br /> Notes to Financial Statements
<br /> September 30, 2009
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<br /> IV. Detailed Notes on 11 Funds and Component Unit (Continued)
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<br /> F. Long-Term Debt (Continued)
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<br /> $5,810,000 T and Revenue Refunding Bonds, Series 1998, due in annual installments varying
<br /> from $645,00 to $715,000 with final payment due December 15, 2011. Interest is payable semi-
<br /> annually at rats ranging from 4.6% to 4.95%.
<br /> $9,500,000 Waterworks and Sewer System Revenue Bonds, Series 2000, due in annual
<br /> installments varying from $480,000 to $835,000 with final payment due June 15, 2020. Interest is
<br /> payable semi-annually at rates ranging from 5.375% to 6.875%.
<br />
<br /> $5,130,000 T and Revenue Refunding Bonds, Series 2001, due in annual installments varying
<br /> from $560,00 to $605,000 with final payment due December 15, 2011. Interest is payable semi-
<br /> annually at rats ranging from 4.0% to 4.125%.
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<br /> On June 15, 2007, for series 1997; on December 15, 2008, for both 1998 series; on June 15, 2010,
<br /> for Series 2000; and on December 15, 2009, for Series 2001, or any date thereafter, the unpaid
<br /> installments o principal may be prepaid or redeemed prior to their scheduled due dates at the
<br /> option of the City.
<br /> The revenues f the Waterworks and Sewer System, after deducting the expenses of operation and
<br /> maintenance, re pledged for payment of bonds and interest. The ordinances authorizing the
<br /> issuance oft bonds require that monthly deposits be made to Interest and Sinking Funds in
<br /> amounts sufficient to pay the next maturing bonds and interest.
<br /> A Reserve Find is required to be accumulated with a required reserve amount of at least
<br /> $1,677,519, the average annual principal and interest requirements of the 1997, 1998, and 2000
<br /> Series bonds. The ordinances also call for the creation of a Contingency Fund into which equal
<br /> monthly deposits are made until the balance is $500,000. At September 30, 2009, the asset
<br /> balances in the Interest and Sinking Funds, Reserve Fund, and Contingency Fund are $2,660,521,
<br /> $2,147,857, and $744,249, respectively. In addition, Series 1994 and Series 1998 Tax and
<br /> Revenue Refu ding Bonds ordinances require that ad valorem taxes be levied and collected
<br /> at a rate suffi ient to pay bonds and interest as they come due.
<br /> Water Rights Debt:
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<br /> The City has fights to water storage at Pay Mayse Lake. Payments for these rights are $49,826
<br /> due annually, including principal and interest at 3.137% through 2017 and $25,211 for ten years
<br /> after that.
<br /> General:
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<br /> Certificates o Obligation were originally issued for construction or improvements in various areas
<br /> including streets, buildings, parks, and airport. Water and Sewer Revenue Bonds were originally
<br /> issued fore ending and improving the waterworks and sewer systems. Federal arbitrage
<br /> regulations apply to bonds and certificates of obligation issued by the City.
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