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

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City of Paris, Texas Notes to Financial Statements September 30, 2011 V. Other Information (Continued) D. Water Sales The City has contracts extending for several years to sell treated and untreated water to five entities. Total water sales under these contracts to these entities during the year ended September 30, 2011, were approximately $3,703,000. The City has an agreement with a commercial dairy to furnish a supply of potable water up to 1,500,000 gallons per day for a twenty year term. At September 30, 2011, the dairy was under construction. E. Civic Center Contract The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby three-sevenths of the hoteUmotel tax is to be dedicated to a fund to be used for improving, enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through September 30, 2011, and may be reviewed for four additional one year terms upon written agreement of the parties. Either party may terminate this contract at the end of the current term by giving thirty days notice. F. Contingent Liabilities, Commitments, and Subsequent Events Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. Management has evaluated subsequent events through the date of the report, the date on which the financial statements were available to be issued. PEDC has extended several incentive agreements to various companies: (1) Call center facility - The agreement expires December 31, 2012, and is payable periodically over the life of the contract. The amount of the incentive is based on the number of employees and a reimbursement for equipment purchased and tenant improvement. The contract also provides for refunds should a default by the company occur. Remaining commitment at September 30, 2011, is $100,000. (2) Warehouse company - Company is to create 35 new jobs providing an incentive amount of $105,000. 45