C.A.F.R., FY 2008-09 - Laserfiche WebLink

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II City of Paris, Texas Notes to Financial Statements September 30, 2009 V. Other Information (Continued) C. Water Storage Commitments (Continued) Forty percent (43,800 acre-feet) is for present storage and the remaining sixty percent (65,800 acre-feet) is ffir future water storage. The City is to repay the government the entire amount of construction costs allocated to the water storage right acquired by the City. The City is obligated to pay 9.46% of the ordinary operation and maintenance cost of the project annually and 4.22% of major capital eplacements when incurred. Allocated cos for future water storage (60%) is $1,925,722 and the amount to be paid including accumulated terest mentioned below is to be on a pro rata basis as more storage is acquired by the City. The City has been advised than an offer to purchase the remaining storage has been approved as art of the Water Resources Development Act. For a payment of $3,461,432 including irate est, the City will acquire the remaining storage rights. The City expects to fund this acquisition frm unused bond proceeds and assets accumulated for this purpose. D. Water Sales The City has contracts extending for several years to sell treated and untreated water to five entities. Tota water sales under these contracts to these entities during the year ended September 30, 2009, were approximately $3,425,000. E. Civic Center Contract The City is a arty to a contract with the Chamber of Commerce of Lamar County, Inc. whereby three-seventh of the hotel/motel tax is to be dedicated to a fund to be used for improving, enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through September 30, 2009, and may be automatically extended for additional one-year terms ending September 30, 2010. Either party may terminate this contract at the end of the current term by giving thirty days notice in advance of the automatic renewal. F. Contingent Li bilities, Commitments, and Subsequent Events Amounts rece ved or receivable from grant agencies are subject to audit and adjustment by grantor agencies, grin ipally 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 b disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City is 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. Management as evaluated subsequent events through March 29, 2010, the date on which the financial statements were available to be issued. 47