05 Audit for FY01-02 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements (Continued) September 30, 2002 IV. Other Information A. Water Storage Commitments A contract with the United States of America for water storage space in Pat Mayse Lake entitles the City to utilize one hundred percent of the storage space between elevations 451.0 and 415.0 feet above sea level. Forty percent (43,800 acre-feet) is for present storage and the remaining sixty percent (65,800 acre-feet) is for future water storage. The City is to repay the government the entire amount of construction costs allocated to the water storage right acquired by the City. The City is obligated to pay 9.46% of the ordinary operation and maintenance cost of the project annually and 4.22% of major capital replacements when incurred. Allocated cost for future water storage (60%) is $1,925,722 and the amount to be paid including accumulated interest mentioned below is to be on a pro rata basis as more storage is acquired by the City. Interest at 3.137% has been accumulating on this allocated cost since September 30, 1977, and amounts to $2,249,782 at September 30, 2002. The City may, at its option, pay the interest as it becomes due or allow the interest to continue to accumulate until the storage is used. B. Construction and Acquisition Commitments The City has active construction projects as of September 30, 2002. At year end the government's commitments with contractors are as follows: Spent Remaining Project To Date Commitment Elevated Water Storage $ 130,815 $ 92,130 Lost Water Study 100,280 20,758 Sewer Lines 366,831 137,272 Animal Shelter 23,178 7,727 $ 621,104 $ 257,887 The commitments for water storage, water study, and sewer lines are being financed by revenue bonds. The animal shelter is being financed by certificates of obligation. The City has entered a real estate purchase agreement for purchase of an existing building and land for $1,275,000 to be improved for a law enforcement center. The total expected project cost is $6,000,000 which is to be financed from the proceeds of the Combination Tax and Revenue Certificates of Obligation, Series 2002 in the amount of $6,060,000.