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<br />
<br />
<br /> Paris Economic Development Corporation
<br /> (A Component Unit of the City of Paris, Texas)
<br /> Notes to Financial Statements (Continued)
<br /> September 30, 2009
<br />
<br /> Note 6: Notes and Bonds Payable (Continued)
<br /> Debt Service requirements related to these bonds and the notes are as follows for the years ended
<br /> September 30:
<br />
<br /> Bonded Debt Requirements Note Payable
<br /> Years Principal Interest Principal Interest Total
<br />
<br /> 2010 $ 215,000 $ 166,261 $ 55,644 $ 393 $ 437,298
<br /> 2011 230,000 152,716 - - 382,716
<br /> 2012 245,000 138,111 - - 383,111
<br /> 2013 265,000 122,431 - - 387,431
<br /> 2014 280,000 105,206 - - 385,206
<br /> 2015 300,000 87,006 - - 387,006
<br /> 2016 320,000 67,506 - - 387,506
<br /> 2017 340,000 46,706 - - 386,706
<br /> 2018 365,000 24,181 - - 389,181
<br /> $ 2,560,000 $ 910,124 $ 55,644 $ 393 $ 3,526,161
<br />
<br /> A summary of lo rig-term liability transactions for the year ended September 30, 2009, is as follows:
<br />
<br /> Balance Balance Due
<br /> September 30, September 30, Within
<br /> 2008 Additions Reductions 2009 One Year
<br /> Bonded Debt $ 2,760,000 $ - $ 200,000 $ 2,560,000 $ 215,000
<br /> Note Payable 273,561 - 217,917 55,644 55,644
<br />
<br /> Total $ 3,033,561 $ - $ 417,917 $ 2,615,644 $ 270,644
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<br /> Note 7: Commitments
<br /> In past years, EDC entered into two incentive agreements, one with a company that operates a call
<br /> center facility. The agreement expires December 31, 2012, and is payable periodically over the life
<br /> of the contra t. The amount of the incentive is based on the number of employees and a
<br /> reimbursement for equipment purchased and tenant improvement. The contract also provides for
<br /> refunds should a default by the company occur. Maximum amount of incentive payments under the
<br /> contract is $72 ,000 of which $325,000 has been paid. The other approved by the Board of Directors
<br /> is an expansion incentive agreement with a food manufacturer for training and the addition of new
<br /> employees not to exceed $477,500.
<br /> During the year, the Board approved another incentive package for a food manufacturer for up to
<br /> $100,000 for training and $100,000 for net gain of employees. The Board also approved $30,000 for
<br /> participation o an incubator project.
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