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City of Paris, Texas
<br />Notes to Financial Statements
<br />September 30, 2012
<br />IV. Detailed Notes on All Funds and Component Unit (Continued)
<br />F . Long-term Liabilities (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 232% to 4.39%. Principal
<br />payments are due serially in varying annual amounts to September 1, 2018, from $290,000 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, 2012, the balances in the
<br />Debt Service Fund and Reserve Fund are $73,964 and $470,977, respectively.
<br />Debt service requirements related to these bonds are as follows:
<br />Bond Debt Requirements
<br />Years Principal Interest
<br />2013 $ 290,000 $ 65,264
<br />2014 290,000 58,536
<br />2015 300,000 50,271
<br />2016 315,000 40,221
<br />2017 325,000 28,251
<br />2018 340,000 14,926
<br />Total
<br />$ 355,264
<br />348,536
<br />350,271
<br />3 5 5,221
<br />353,251
<br />354,926
<br />$ 1,860,000 $ 257,469 $ 2,117,469
<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, 2012, these accounts, shown as cash and
<br />investments on the Statement of Net Assets — Proprietary Funds, are as follows:
<br />Reserve Fund $ 2,266,519
<br />Contingency Fund 779,300
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