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

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For the 2009-2010 fiscal year, the City Council adopted a tax rate of .52 cents per $100 of value. This is the same rate as the previous year. This rate allow maintaining all services at their current levels or above and funds the interest and sinking fund for the certificates of obligatio issued in 2000, 2002, and 2003. Long-Term Financial Planni g and Relevant Financial Policies The City is in the process of d veloping and a new long-range financial plan given the substantial refunding of its outstanding debt for savings that occurred in February 2010. The City gained $1,993,902 in total debt service savings (11.58%) from the refunding. Previously, the City had not planned on any substantial capital investment in its utility infrastructure until 2013 at which time three of the utili related debt issued would be paid off. This approach had resulted in the steadily decreasing outstanding debt shown in the financial statements. The City also plans to formalize key financial policies that are currently being informally followed. T of the policies expected to be formalized include a rate maintenance policy for the utility fund and a reserve level guideline for both the general fund and utility fund. The utility rate maintenance policy will help assure the financial integrity of the enterprise fund along with its related interest and sinking funds. Likewise, adequate reserve levels provide the City with the abili to deal with extraordinary events and maintain its credit worthiness. This credit worthiness, as reflected in the current financial statements, allowed the City to obtain very favorable interest rates on the refunding bonds referenced above. Major Initiatives The City of Paris continues t work in environmentally related areas. Since 1984 over $50 million has been spent on water and wastewater improvements The City has begun work on formulating a new long range plan to maintain its infrastructure. The City also continues toe and its effort in law enforcement related areas. Specifically, the City has targeted auto theft, felony crime, and schools. Programs in this effort include the Auto Theft Task Force, school resource officers, and the Felony Crimes Unit. One other continuing law enforcement effort was to upgrade equipment through several Justice Assistance grants. From a development standpoint the City has taken several steps. Reentry into the State of Texas Main Street Program should channel additional funds for vitalization of existing structures and businesses. The City continues to work closely with the Paris Economic Development Corporation to attract new business to Paris and to support existing businesses as well. Working with the Chamber of Commerce, the City is effectively using the civic center to attract people and business to Paris. City officials are also closely working with Keep Paris 13eautiful, Inc. to promote and improve the City. The Historic Preservation Committee is working with local property owners to maintain the historical character of the City. Other Financial Informatio The financial statements of e City of Paris, Texas, have been prepared in conformity with generally accepted accounting principles as applied to gove ental units. The Governmental Accounting Standards Board is the accepted standard-setting body for establishing gove ental accounting and financial reporting principles. Using the GASB 34 reporting model, the City's Comprehensive Annu 1 Financial Report provides for a management's discussion and analysis, government-wide financial statements, major d financial statements, notes to the financial statements, and other required supplementary information. The City has a written investment policy that conforms to state statutes, which outlines permissible investments. The City pools its cash balances for investment purposes from the various funds maintained in its consolidated cash account. Interest earnings of the pool are allocated to the various funds of the City based upon a fund's equity position in the pool. 1-4