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

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City of Paris, Texas Notes to Financial Statements September 30, 2011 IV. Detailed Notes on All Funds and Component Unit (Continued) G. Restricted Net Assets and Restricted Asset Accounts (Continued) Collections of Notes Receivable are restricted by grant agreements to be used for building rehabilitation. The balances of the City's restricted asset accounts are as follows: Certificates of Accrued Deposit and Interest and Cash and Cash Other Other Equivalents Investments Receivables Customer Deposits $ 226,945 $ 525,567 $ - Notes Receivable - - 55,900 Total Restricted Assets $ 226,945 $ 525,567 $ 55,900 V. Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates calculated under the agreement. There has been no significant reduction in insurance coverage during the year ended September 30, 2011. There have been no settlements in excess of insurance coverage in any of the prior three fiscal years. B, Related Party The City Council appoints the governing board of an entity which is legally separate from the City. The City is not able to impose its will on this entity, and a financial benefit/burden relationship is not present; therefore, it is considered a related organization. C. Water Storage Commitments During the year, a supplemental agreement with the United States of America for water storage space in Pat Mayse Lake (the Project) was executed. As a result, the City has the right to utilize an undivided 100% of the usable conservation storage space in the project between elevations 451 feet and 415 feet above sea level which is estimated at 109,600 acre feet. For a payment of $3,461,432, the City paid off the liability for existing space and acquired the rights to the final 60% storage space. The Government reserves the right to control and use all storage in accordance with project purposes, to take such measures to preserve life and or property including the right not to make downstream releases and to inspect, maintain, or repair the project. The City will be required to pay 10.526% of the cost of joint-use repair, rehabilitation, and replacement and 26.659% of the annual experienced joint-use operation and maintenance of the project. 44