C.A.F.R., FY 2011-12 - Laserfiche WebLink

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The City's bond debt decreased by $4,570,000 (19.79%) during the fiscal year. The City recently received an underlying bond rating from Moody's of Aa3. The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $0.52 per $100 valuation for the 2011-12 fiscal year. This rate was broken down into $0.41 per $100 valuation for operations and $0.11 per $100 valuation for debt service. Using the traditional allowance of the state attorney generai as a guide, the City of Paris is utilizing only 7.33% of its debt capacity. Additional information on the City's long-term debt can be found in note IV. F. of the notes to the financial statements. Economic Factors and Next Year's Budgets and Rates • Sales tax revenues are projected to remain flat in the coming year. • New construction amounted to 10 residential units and 13 commercial units. • Local population growth is expected to be minimal. • The tax rate is expected to remain at or below $.52 per $100 of value. • Electrical utility franchise fees are expected to hold steady. All of these factors were considered in preparing the City's budget for 2012-13. Requests for Information This financial report is designed to provide a general overview of the finances of the City of Paris for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Office of the Finance Director, 135 S.E. First Street, City of Paris, Texas 75460. 11