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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 />F . Long-Term Debt (Continued)
<br />PEDC has outstanding Paris Economic Development Corporation Sales Tax Revenue Refunding
<br />Bonds, Series 2010, originally issued at $2,685,000, bearing interest at 1.76% to 4.39%. Principal
<br />payments are due serially in varying annual amounts to September 1, 2018, from $280,000 to
<br />$340,000.
<br />Sales and Use Taxes (one-quarter of one percent) levied by the City of Paris, Texas, within its
<br />boundaries under the Development Corporation Act of 1979, are pledged for payment of bonds and
<br />interest of the Component Unit. The resolution authorizing the issuance of the bonds requires that
<br />monthly deposits be made to the Debt Service Fund in an amount sufficient to pay the next
<br />maturing bonds and interest.
<br />A Reserve Fund is required to be maintained with a balance of at least $346,192, the average
<br />annual principal and interest requirements of the bonds. At September 30, 2011, the balances in the
<br />Debt Service Fund and Reserve Fund are $108,709 and $470,228, respectively.
<br />Debt Service requirements related to these bonds and notes are as follows:
<br />Bond Debt Requirements
<br />Years
<br />Principal
<br />Interest
<br />Total
<br />2012
<br />$ 280,000
<br />$ 70,192
<br />$ 350,192
<br />2013
<br />290,000
<br />65,264
<br />355,264
<br />2014
<br />290,000
<br />58,536
<br />348,536
<br />2015
<br />300,000
<br />50,271
<br />350,271
<br />2016
<br />315,000
<br />40,221
<br />355,221
<br />2017
<br />325,000
<br />28,251
<br />353,251
<br />2018
<br />340,000
<br />14,926
<br />354,926
<br />$ 2,140,000
<br />$ 327,661
<br />$ 2,467,661
<br />G. Restricted Net Assets and Restricted Asset Accounts
<br />In order to safeguard the financial integrity of the water and sewer system, the City Council
<br />approved a resolution establishing and maintaining funds comparable to those required by the
<br />revenue bonds refunded in 2010. At September 30, 2011, these accounts, shown as cash and
<br />investments on the Statement of Net Assets - Proprietary Funds, are as follows:
<br />Reserve Fund $ 2,235,966
<br />Contingency Fund 776,568
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