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City of Paris, Texas
<br />Notes to Financial Statements
<br />September 30, 2011
<br />IV. Detailed Notes on All Funds and Component Unit (Continued)
<br />A. Deposits and Investments (Continued)
<br />Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank
<br />failure, the City's deposits may not be returned to it. As of September 30, 2011, the City's bank
<br />balance was not exposed to custodial credit risk. As of the same date PEDC had exposure to
<br />custodial credit risk because $275,904 of the PEDC bank balance of $908,248 was uninsured.
<br />Custodial Credit Risk - Investments. For an investment, this is the risk that in the event of the
<br />failure of the counter-party, the City may not be able to recover the value of its investments or
<br />collateral securities that are in the possession of an outside party. As of September 30, 2011, the
<br />City did not have custodial credit risk exposure.
<br />Foreign Currency Risk is the risk that an investment denominated in the currency of a foreign
<br />country could reduce its United States of America dollar value as a result of changes in foreign
<br />currency exchange rates. At September 30, 2011, the City was not exposed to foreign currency
<br />risk.
<br />B. Receivables
<br />Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as
<br />follows:
<br />Special
<br />General
<br />Revenue
<br />Receivables:
<br />Interest
<br />$ 12,275
<br />$ -
<br />Property Taxes
<br />738,995
<br />-
<br />Sales Tax
<br />1,046,000
<br />-
<br />Accounts
<br />230,308
<br />-
<br />Other Governments
<br />188,992
<br />326,841
<br />Street Assessments
<br />26,473
<br />-
<br />Fines
<br />103,211
<br />-
<br />EMS
<br />2,775,209
<br />-
<br />Notes Receivable
<br />4,557
<br />55,900
<br />Gross Receivables
<br />5,126,020
<br />382,741
<br />Less: Allowable for
<br />Uncollectibles
<br />(2,770,807)
<br />-
<br />Net Total Receivables
<br />$ 2,355,213
<br />$ 382,741
<br />Debt
<br />Service Enterprise
<br />$ - $ 1,744
<br />126,417 -
<br />1,918,719
<br />126,417 1,920,463
<br />31,604 50,000
<br />$ 94,813 $ 1,870,463
<br />Net receivable balances not expected to be collected within one year are Property Taxes -
<br />$405,210, Fines - $1,600, EMS - $100,000, and Street Assessments - $26,473.
<br />At year end, PEDC had a receivable for sales tax of $209,000.
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