10 - PEDC 2015-2016 ANNUAL AUDIT REPORTItem No. 10
memorandum
TO: City Council
John Godwin, City Manager
FROM: Michael Paris, PEDC Executive Director
SUBJECT: PEDC 2015 -2016 ANNUAL AUDIT REPORT
DATE: April 11, 2017
BACKGROUND: The Paris EDC Board met on March 21, 2017, to discuss and possibly approve
the yearly Audit Report for the 2015 -2016 fiscal year as presented by Andy Reich and Victoria
Bethea of McClanahan and Holmes.
STATUS OF ISSUE: The PEDC Board was given a presentation with the major opinion from
Mr. Reich being that it was a "clean" audit. After a discussion of items in the audit, the PEDC
Board voted unanimously to accept the PEDC 2015 -2016 Audit Report.
BUDGET: N/A
RECOMMENDATION: Motion to accept the PEDC 2015 -2016 Annual Audit Report as
presented.
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Annual Financial Report
Year Ended September 30, 2016
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Table of Contents
September 30, 2016
Page
IndependentAuditors' Report ......................................................................................................................... ..............................1
Financial Statements:
Governmental Funds Balance Sheet/Statement of Net Position .................................................................... ..............................3
Statement of Revenues, Expenditures, and Changes in Fund Balances /Statement of Activities ................... ..............................4
Notesto the Financial Statements ................................................................................................................. ..............................5
Required Supplementary Information — Budgetary Comparison Schedule - General Fund ......................... ............................... l 1
Notes to the Required Supplementary Information ........................................................................................ .............................12
Continuing Disclosure Information ( Unaudited) ............................................................................................ .............................13
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA
RUSSELL P. WOOD, CPA
DEBRA J. WILDER, CPA
TEFFANYA. KAVANAUGH, CPA
Independent Auditors' Report
Board of Directors
Paris Economic Development Corporation
Paris, Texas
228 SIXTH STREET S.E.
PARIS, TEXAS 75460
903- 784 -4316
FAX 903. 784.4310
304 WEST CHESTNUT
DENISON, TEXAS 75020
903- 465 -6070
FAX 903 - 465.6093
140D WEST RUSSELL
BONHAM, TEXAS 75418
903- 583 -5574
FAX 903 -583 -9453
We have audited the accompanying financial statements of the governmental activities and each major fund of Paris
Economic Development Corporation (PEDC), a component unit of the City of Paris, Texas, as of and for the year
ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the PEDC's
basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions o11 these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Board of Directors
Paris Economic Development Corporation
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities of PEDC as of September 30, 2016, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison
Schedule be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Management has not presented Management's Discussion and Analysis that governmental accounting principles
generally accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the
basic financial statements is not affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collective comprise
the PEDC basic financial statements. The Continuing Disclosure Information is presented for purposes of additional
analysis and is not a required part of the basic financial statements. The Continuing Disclosure Information has not
been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we
do not provide an opinion or any assurance on them.
McClanahan andMofines, LL1'
Certified Public Accountants
February 7, 2017
Paris, Texas
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Governmental Funds Balance Sheet/Statement of Net Position
September 30, 2016
The notes to financial statements are an integral part of this statement.
3
Total
Total
Debt Service
Governmental
Governmental
General Fund
Fund
Funds
Adjustments*
Activities
Assets
Cash and Cash Equivalents
$ 2,523,029
$
$ 2,523,029
$
$ 2,523,029
Certificates of Deposit
-
-
-
Taxes Receivable
243,678
-
243,678
243,678
Restricted Assets:
Bond Debt Service Fund
Cash and Cash Equivalents
-
30,569
30,569
-
30,569
Bond Reserve Fund
Cash and Cash Equivalents
-
374,276
374,276
-
374,276
Land Development Costs
1,908,522
-
1,908,522
-
1,908,522
Total Assets
$ 4,675,229
$ 404,845
$ 5,080,074
-
5,080,074
Liabilities
Accounts Payable
$ -
$ -
$ -
-
Intergovernmental Payable
1,613
1,613
-
1,613
Liabilities Payable from Restricted Assets
Current Portion of Bonds Payable
-
-
(325,000)
325,000
Accrued Interest Payable
-
-
(2,354)
2,354
Bonds Payable (Net of Current Portion)
-
-
(340,000)
340,000
Total Liabilities
1,613
1,613
(667,354)
668,967
Fund Balance/Net Position
Fund Balance:
Nonspendable -Land Development Costs
1,908,522
-
1,908,522
1,908,522
-
Restricted for Debt Service
-
404,845
404,845
404,845
-
Committed to Industrial Incentives
1,007,355
-
1,007,355
1,007,355
-
Unassigned
1,757,739
-
1,757,739
1,757,739
-
Total Fund Balance
4,673,616
404,845
5,078,461
5,078,461
-
Total Liabilities and Fund Balance
$ 4,675,229
$ 404,845
$ 5,080,074
Net Position:
Restricted for Land Development Costs
(1,908,522)
1,908,522
Restricted for Debt Service
(77,491)
77,491
Restricted for Industrial Incentives
(1,007,355)
1,007,355
Unrestricted
(1,417,739)
1,417,739
Total Net Position
S (4,41 1,107)
$ 4,411,107
*Primarily long -term liabilities are not reported in the funds.
The notes to financial statements are an integral part of this statement.
3
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Statement of Revenues, Expenditures, and Changes in Fund Balances /Statement of Activities
Year Ended September 30, 2016
Total Total
Debt Service Governmental Governmental
General Fund Fund Funds Adiustments* Activities
Revenues
Sales Taxes 1,410,415 $ - $ 1,410,415 $ $ 1,410,415
Investment Earnings 6,804 173 6,977 - 6,977
Total Revenues 1,417,219 173 1,417,392 1,417,392
Expend itures/Expenses
Current:
Personnel
110,034
-
110,034
- 110,034
Administration
130,547
-
130,547
- 130,547
Job Training
2,529
-
2,529
2,529
Marketing and Promotion
26,187
-
26,187
- 26,187
Direct Business Incentives
100,000
-
100,000
100,000
Debt Service:
Principal
-
315,000
315,000
(315,000) -
Interest
-
40,221
40,221
(998) 39,223
Fees
-
750
750
- 750
Total Expenditures /Expenses
369,297
355,971
725,268
(315,998) 409.270
Excess (Deficiency) of Revenues Over
Expenditures/Expenses 1,047,922 (355,798) 692,124 (315,998) 1,008,122
Other Financing Sources (Uses)
Transfers - Internal Activities (352,511) 352,511 - -
Total Other Financing Sources (Uses) (352.511) 352.511 - Net Change in Fund Balances/Net Position 695,411 (3,287) 692,124 (315,998) 1,008,122
Fund Balances/Net Position - Beginning 3,978,205 408,132 4,386,337 983,352 3,402,985
Fund Balances/Net Position - Ending $ 4,673,616 $ 404.845 $ 5.078.461 $ 667,354 $ 4,411,107
*Primarily long -tern liabilities not reported in the funds.
The notes to financial statements are an integral part of this statement.
4
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements
September 30, 2016
1. Summary of SijZnificant Accounting Policies
A. Description of Government -Wide Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government. Governmental activities
are supported by taxes, intergovernmental revenues, and other nonexchange transactions. The statement of
activities reports both the gross and net cost of Paris Economic Development Corportation's (PEDC) function
(economic development). Economic development is supported by general government revenues (sales tax
and interest on investments).
B. Reporting Entity
The Paris Economic Development Corporation is a governmental non - profit corporation established July 19,
1993, funded by a quarter percent sales tax. PEDC was organized exclusively for the purpose of benefiting
and accomplishing public purposes of the City of Paris, Texas, by promoting, assisting, and enhancing
economic development activities as provided by the Development Corporation Act of 1979. PEDC is a
component unit of the City of Paris, Texas, and the business and affairs are managed by a five- member board
of directors appointed by the governing body of the City of Paris, Texas.
C. Basis of Presentation — Government -Wide and Fund Financial Statements
The fund financial statements provide information about PEDC's funds. However, the financial statements
include both government -wide (reporting the unit as a whole) and fund financial statements (reporting
PEDC's major funds).
PEDC reports the following major governmental funds
General Fund - The General Fund is the general operating fund and is used to account for all financial
resources except those required to be accounted for in another fund.
Debt Service Fund — The Debt Service Fund is used to account for the accumulation of resources for,
and the payment of, general long -term debt.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and
basis of accounting. Measurement focus indicates the type of resources being measured such as current
financial resources or economic resources. The basis of accounting indicates the timing of transaction or
events for recognition in the financial statements.
In the Statement of Net Position, the governmental activities column is reported using the accrual basis of
accounting and an economic resources measurement focus, which recognizes all long -tern assets and
receivables as well as long -term debt and obligations, if any. Net position is reported in various categories
based on current financial reporting pronouncements. The reporting policy regarding committed
classification is that when a contractual obligation is created by the governing board, the amount of the
incentive is considered committed. When payments are made, they are considered to have been paid from
the fund balance classification in which they were accumulated.
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2016
1. SummarSignificant Accounting Policies (Continued)
D. Measurement Focus and Basis of Accounting (Continued)
The financial transactions of PEDC are reported in two individual funds in the combined financial statements
using the current financial resources measurement focus and the modified accrual basis of accounting. These
funds are accounted for by providing a separate set of self - balancing accounts that comprise their assets,
liabilities, fund equity, revenues, and expenditures. The focus of the governmental funds' measurement (in
the fund statements column) is upon determination of financial position and changes in financial position
(sources, uses, and balances of financial resources) rather than upon net income. PEDC considers all
revenues available if they are collected within sixty days after year end and expenditures are recognized when
the related liability is incurred.
E. Budgetary Information
Basis of Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for
the general fund and the debt service fund.
2. Excess of Expenditures Over Appropriations
For the year ended September 30, 2016, expenditures did not exceed appropriations (budget) in any
function or line item.
F. Assets, Liabilities, and Fund Balance/Net Position
1. Cash and Cash Equivalents
Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition.
2. Investments
PEDC's investments in the public funds investment pools in Texas (Pools) are reported at an amount
determined by the fair value per share of the Pool's underlying portfolio, unless the Pool is 20-like,
in which case they are reported at share value. A 20-like Pool is one which is not registered with
the Securities and Exchange Commission (SEC) as an investment company, but nevertheless has a
policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the
Investment Company Act of 1940. Financial statements for the Texas CLASS investment pool can
be found at TexasClass.com. Information on the Lone Star investments can be found at
FirstPublic.com.
3. Net Position Flow Assumption
Sometimes PEDC will fund outlays for a particular purpose from both restricted (e.g., restricted
bond proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted
— net position and unrestricted — net position in the government -wide financial statements, a flow
assumption must be made about the order in which the resources are considered to be applied. It is
the PEDC's policy to consider restricted — net position to have been depleted before unrestricted -
net position is applied.
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2016
I. Summary of Sip-nificant Accounting Policies (Continued)
F. Assets, Liabilities, and Fund Balance/Net Position (Continued)
4. Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to
calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in
the governmental fund financial statements a flow assumption must be made about the order in
which the resources are considered to be applied. It is the PEDC's policy to consider restricted fund
balance to have been depleted before using any of the components of unrestricted fund balance.
Further, when the components of unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund
balance is applied last.
5. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. PEDC itself can establish limitations
on the use of resources through either a commitment (committed fund balance) or an assignment
(assigned fund balance). The committed fund balance classification includes amounts that can be
used only for the specific purposes determined by a formal action of the PEDC's highest level of
decision - making authority. The governing board is the highest level of decision - making authority
for the PEDC that can commit fund balance. Once adopted, the limitation imposed by the board
remains in place until a similar action is taken to remove or revise the limitation.
6. Restricted Assets and Fund Balance Reserves
Certain resources set aside for repayment of revenue bonds and related interest are classified as
restricted assets on the balance sheet because their use is limited by applicable bond covenants. The
Bond Debt Service Fund is used to accumulate resources for debt service payments over the next
twelve months. Governmental funds report reservations of fund balances for amounts that are not
considered a current financial resource.
The Bond Reserve Fund is accumulated for the purpose of retiring the last of any bonds as they
become due or for debt service when the Bond Debt Service Funds are insufficient.
7. Land Development Costs
PEDC has acquired land and added improvements to develop an industrial park which is to be
divided and sold to businesses wanting to locate their facilities in such an area. Land and added
improvements are not depreciated because they are expected to be sold or used as incentives and are
not used in PEDC's ongoing activities.
11. Detailed Notes on All Activities and Funds
A. Cash Deposits with Financial Institutions
Custodial credit risk for deposits is the risk that in the event of a bank failure, the entity's deposits may not
be returned or PEDC will not be able to recover collateral securities in the possession of an outside party.
PEDC's policy requires deposits to be secured by collateral valued at market or par, whichever is lower, less
the amount of the Federal Deposit Insurance Corporation insurance (FDIC). Deposited funds may be invested
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2016
11. Detailed Notes on All Activities and Funds (Continued)
A. Cash Deposits with Financial Institutions (Continued)
in certificates of deposits in institutions that are domiciled in the State of Texas. Collateral agreements must
be approved prior to deposit of fiords as provided by law.
As of September 30, 2016, PEDC was not exposed to custodial credit risk since deposits are insured or
collateralized with securities pledged held in the name of the entity. The entity's carrying amount of demand
deposits was $1,984,101 and the bank balance was $1,994,359.
B. Investments
The public funds investment pools in Texas are established under authority of the Interlocal Cooperation Act,
Chapter 79 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment
Act (the Act), Chapter 2256 of the Texas Government Code. In addition to other provisions of the Act
designed to promote liquidity and safety of principal, the Act requires Pools to: 1) have an advisory board
composed of participants in the Pool and other persons who do not have a business relationship with the Pool
and are qualified to advise the Pool; 2) maintain a continuous rating of no lower than AAA or AAAm or an
equivalent rating by at least one nationally recognized rating service; 3) maintain the market value of its
underlying investment portfolio within one -half of one percent of the values of its shares.
Investments at September 30, 2016, are invested in Lone Star Investments, $372,560, (Texas Political
Subdivisions Investment Pool) and Texas CLASS, $570,912. These investments are reported with the bank
accounts as Cash and Cash Equivalents. Investments in the Lone Star investment pool and Texas CLASS
investment pool are not insured or guaranteed by the FDIC or any other government agency_
Statutes authorize PEDC to invest in obligations of the U.S. Treasury, direct obligations of the State of Texas,
other obligations guaranteed or insured by the State of Texas or the United States, obligations of states and
political subdivisions of any state meeting certain rating requirements, certificates of deposit, and fully
collateralized direct repurchase agreements having a defined termination date.
C. Receivables
PEDC reports Taxes Receivable for sales tax collected by the State Comptroller.
D. Pension Plan
PEDC contributes to a simplified employee pension plan for the Director, administered by Edward Jones.
The contribution rate is 10% and amounted to $8,079 during the year ended September 30, 2016.
E. Commitments
PEDC has extended several incentive agreements to various companies and other commitments:
1. Commercial Dairy - The incentive is to provide cash payments for creating 150 new jobs in Paris
and Lamar County for five years. This amount is estimated to be $664,300 and expected to begin
in 2017.
2. Producer — In September 2015, the Board of Directors reached an incentive agreement with a
producer of engineered glass materials for training reimbursement and cash for capital investment
in manufacturing space and new equipment and new jobs for $45,000, of which $24,000 remains
outstanding at September 30, 2016.
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2016
IL Detailed Notes on All Activities and Funds (Continued)
E. Commitments (Continued)
In connection with a first lien loan by a bank to a commercial operation in the amount of $5,800,000,
PEDC has entered into a Guaranty of Collection agreement. The loan payment is guaranteed by an
individual (and a related company), and in addition, PEDC has guaranteed the full and prompt
collection of the principal and interest due under the note together with limited cost of collection.
If the lender makes demand under the Guaranty of Collection agreement, the lender will allow
PEDC to satisfy its liability in monthly installments as specified in the original note. The agreement
is dated September 23, 2010, and will terminate when the note is paid or the expiration of ten years.
4. Retail and Office Structure - Incentive is to participate in reimbursement of sewer line construction
to the extent of $250,000.
5. Powder Coated Engineered Wood Manufacturer — In December 2014, the Board of Directors
reached an incentive agreement with a manufacturer of powder coated engineered wood to convey
eight acres of the industrial park for construction of a building. The incentive agreement was valued
at $33,999, the cost of the land to PEDC. An additional 16 acres has been provided as an incentive
to complete the construction and for further expansion within five years. The 16 acre incentive is
valued at PEDC's cost of $69,055 and remains outstanding at September 30, 2016. Subsequent to
year end, Powder Industries did not fulfill their inventive agreement and therefore PEDC received
the deed to the property back.
F. Risk Management
PEDC is exposed to various risks of loss and has obtained insurance related to general liability, loan
enforcement liability, errors and omissions liability, and automobile liability.
G. Long -Term Liabilities
Bonds Pavable
PEDC has outstanding Paris Economic Development Corporation Sales Tax Revenue Refunding Bonds,
Series 2010, originally issued at $2,685,000, bearing interest at 4.1 % to 4.39 %. Principal payments are due
serially in varying annual amounts to September 1, 2018, from $325,000 to $340,000.
Sales and Use Taxes (one - quarter of one percent) levied by the City of Paris, Texas, within its boundaries
under the Development Corporation Act of 1979, are pledged for payment of bonds and interest. The
resolution authorizing the issuance of the bonds requires that monthly deposits be made to the Debt Service
Fund in an amount sufficient to pay the next maturing bonds and interest.
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2016
11. Detailed Notes on All Activities and Funds (Continued)
G. Long -Term Liabilities (Continued)
Bonds Payable (Continued)
A Reserve Fund is required to be maintained with a balance of at least $354,466, the average annual principal
and interest requirements of the bonds. At September 30, 2016, the balances in the Debt Service Fund and
Reserve Fund are $30,569 and $374,276, respectively.
Debt Service requirements related to the bonds are as follows for the years ended September 30:
Bonded Debt Requirements
Years Principal Interest Total
2017 $ 325,000 $ 28,251 $ 353,251
2018 340,000 14,926 354,926
$ 665,000 $ 43,177 $ 708,177
A summary of long -term liability transactions for the year ended September 30, 2016, is as follows:
Due
Balance Balance Within
9/30/15 Additions Reductions 9 /30116 One Year
$ 980,000 $ - $ 315,000 $ 665.000 $ 325,000
H. Interfund Transfers
During the year, transfers are used to move revenues from the fund with collection authorization to the Debt
Service Fund as debt service principal and interest payments become due. The interfund transfers are
reported as Other Financing Sources (Uses).
10
Revenues
Sales Taxes
Investment Earnings
Total Revenues
Expenditures
Current:
Personnel
Administration
Job Training
Marketing and Promotion
Direct Business Incentives
Total Expenditures
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
Year Ended September 30, 2016
Budgctcd Amounts Actual Variance with
Original Final Amounts Final Budget
$ 1,320,000 $ 1,320,000 $ 1,410,415 $ 90,415
1,500 1,500 6,804 5,304
1,321,500 1,321,500 1,417,219 95,719
Excess of Revenues Over Expenditures
Other Financing Sources (Uses)
Transfers to Debt Service Fund
Interest Income
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
200,000
114,923
110,034
4,889
101,900
177,930
130,547
47,383
109,371
109,371
2,529
106,842
75,000
75,000
26,187
48,813
529,000
465,000
100,000
365,000
11015,271
942,224
369,297
572,927
306,229
379,276
1,047,922
668,646
(355,971)
(355,971)
(352,511)
3,460
13,500
13,500
(13,500)
(342,471)
(342,471)
(352,511)
(10,040)
(36,242)
36,805
695,411
658,606
3.978,205
3,978,205
3,978,205
-
$ 3,941,963
$ 4,015,010
$ 4,673,616 $
658,606
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Required Supplementary Information
September 30, 2016
Note 1: Budgetary Data
PEDC's fiscal year commences October Ist and ends September 30th. A budget for the forthcoming fiscal year shall
be submitted to, and approved by, the Board of Directors in June and delivered to the City of Paris on or before June
30th. After Board approval, the budget on appropriate forms is submitted to the City Manager for inclusion in the
annual budget of the City of Paris. The budget is to include projected operating expenses and such other budgetary
information as shall be useful to or appropriate for the Board and the City of Paris.
The proposed budget shall contain such classifications and shall be in such form as may be prescribed from time to
time by the City Council of the City of Paris. The budget shall not be effective until it has been approved by the City
Council.
The Budgetary Comparison Schedule presented as Required Supplementary Information for the General Fund is
presented to provide a meaningful comparison of actual results with the budget. For the year ended September 30,
2016, expenditures did not exceed appropriations (budget) in any function or line item.
12
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Continuing Disclosure Information
September 30, 2016
(Unaudited)
Sales Tax Collections
The following table shows Sales Tax Collections for the Paris Economic Development Corporation's 1/4% sales tax for the five years
ended September 30:
Pro Forma Bonded Debt Service Coverage
Maximum Annual Debt Service Requirement (2018)
Fiscal Year Ended September 30,
354,926
Projected Annual Sales Tax Receipts 2016 -17
2016
2015
2014
2013
2012
October
$ 109,886.41
$ 102,247.58
$ 97,701.57 $
97,310.53
$ 95,420.37
November
130,424.24
126,651.61
114,348.83
112,362.90
107,894.61
December
104,932.82
271,091.93
100,022.29
87,692.97
85,472.54
January
102,686.14
109,169.19
99,144.63
93,398.77
95,604.34
February
149,309.76
146,289.70
139,328.22
135,537.65
128,112.10
March
96,097.44
107,721.75
83,304.86
87,514.04
86,791.28
April
104,000.13
90,699.77
94,682.24
92,841.95
89,313.73
May
135,580.28
123,770.44
127,251.18
123,708.09
116,340.62
June
107,853.86
106,900.07
99,797.86
98,039.23
90,696.91
July
104,464.42
106,493.68
100,455.16
106,267.35
97,350.69
August
137,823.65
129,212.16
116,746.73
114,731.18
111,539.71
September
119,744.32
97,054.93
103,766.17
106,635.71
98,234.76
Totals
$ 1,402,803.47
$ 1,517,302.81
$ 1;276,549.74 S
1,256,040.37
$ 1,202,771.66
Pro Forma Bonded Debt Service Coverage
Maximum Annual Debt Service Requirement (2018)
$
354,926
Projected Annual Sales Tax Receipts 2016 -17
$
1,383,000
(Pledged Revenues are Gross 1/4 Cent Sales Tax)
Estimated Pro Forma Coverage
3.90 x
Average Annual Remaining Debt Service at September 30, 2016
$
354,089
Projected Annual Sales Tax Receipts 2016 -17
$
1,383,000
(Pledged Revenues are Gross 1/4 Cent Sales Tax)
Estimated Pro Forma Coverage
3.91 x
Condensed Corporation Operating Statement
Fiscal
Year Ended September 30,
2016 2015
2014
2013
2012
Operating Revenues:
Sales Taxes $ 1,410,415 $ 1,536,827
$ 1,282,550
$
1,261,040 $
1,198,772
Other Income (Loss) (1) (32,246) (17,915)
41,225
6,497
(51,210)
Total Revenues 1,378,169 1,518,912
1,323,775
1,267,537
1,147,562
Operating Expenses:
Projects
Administration, Personnel,
and Promotion
Total Expenses
Net Available for Additional
Economic incentives or
Debt Service
102,528 79,071 2,450,244 194,883 1,757,106 (2)
267,519 197,799 348,893 602,356 730,349
370,047 276,870 2,799,137 797,239 2,487,455
$ 1,008,122 $ 1,242,042 $ (IA75,362) $ 470.298 $ (1,339,893)
Source: Information received from the Issuer.
(1) The net of interest income, interest expense, and gain or loss on the sale of assets.
(2) Includes a one -time contribution to a regional highway project for $1,488,588.
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