C.A.F.R., FY 2010-11 - Laserfiche WebLink

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General Fund receipts equaled 94.58% of budget. This shortfall of revenues was caused by anticipated grant revenues not materializing during the fiscal year. General Fund expenditures were only 91.01% of budget for the same reason, grant expenditures were less than anticipated. For the 2011-12 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 allows maintaining all services at their current levels or above and funds the interest and sinking fund for the certificates of obligation issued in 2002, 2003, and 2010. Long-term Financial Planning and Relevant Financial Policies The City is in the process of developing 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. The City does not plan on any substantial capital investment in its utility infrastructure until 2013 at which time a substantial amount of utility related debt issued will be paid off. The City formalized a key financial policy that had been informally followed previously: a utility rate maintenance policy. The utility rate maintenance policy will help assure the financial integrity of the enterprise fund along with its related interest and sinking funds. Another policy expected to be formalized is a reserve level guideline for both the general fund and utility fund. Adequate reserve levels provide the City with the ability 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 to work in environmentally related areas. Since 1984, over $50 million has been spent on water and wastewater improvements. The City is working on formulating a new long range plan to maintain its infrastructure. The City also continues to expand its effort in law enforcement related areas. Specifically, the City has targeted auto theft and the public schools. Programs in this effort include the Auto Theft Task Force and school resource officers at various schools. One other continuing law enforcement effort is to upgrade equipment through 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 revitalization of existing structures and businesses. The City continues to work closely with the Paris Economic Development Corporation to attract new businesses 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 Beautiful, 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 Information The financial statements of the City of Paris, Texas, have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Using the GASB 34 reporting model, the City's Comprehensive Annual Financial Report provides for a management's discussion and analysis, government-wide financial statements, major fund 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. The City of Paris' primary risk exposures are in the areas of workers' compensation and tort liability. Provision for these risks is made through participation in the Texas Municipal League's risk pool. I-4