Paris Economic Development Corp. FY 2017-18PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Annual Financial Report
Year Ended September 30, 2018
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Table of Contents
September 30, 2018
Page
Independent Auditors' Report ....................................................................................................................................................... I
Financial Statements:
Governmental Funds Balance Sheet/Statement of Net Position .................................................................................................. 3
Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities ................................................. 4
Notes to the Financial Statements ............................................................................................................................................... 5
Required Supplementary Information-Budgetary Comparison Schedule -General Fund ........................................................ 12
Notes to the Required Supplementary Information ..................................................................................................................... 13
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA
RUSSELL P. WOOD, CPA
DEBRA J. WILDER, CPA
TEFFANY A. KAVANAUGH, CPA
APRIL J. HATFIELD, CPA
Board of Directors
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report
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
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-583-557 4
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, 2018, and the related notes to the financial statements, which collectively comprise 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 on 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
from 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
opinions.
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 and each major fund of PEDC as of September 30, 2018, and the
respective changes in financial position 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 omitted 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.
January 31, 2019
Paris, Texas
2
9.1.cCfanafian antf 1fo{mes, ££(1'
Certified Public Accountants
PARIS ECONOMIC DEVELOPMENT CORPORATION
{A Component Unit of the City of Paris, Texas)
Governmental Funds Balance Sheet/Statement of Net Position
September 30, 2018
Total Total
Debt Service Governmental Governmental
General Fund Fund Funds Adjustments* Activities
Assets
Cash and Cash Equivalents $ 3,173,380 $ 59,170 $ 3,232,550 $ $ 3,232,550
Investments 581,375 434 581,809 581,809
Taxes Receivable 250,037 250,037 250,037
Note Receivable 400,000 400,000 400,000
Capital Assets (Net of Accumulated Depreciation)
Equipment 6,780 6,780
Land Development Costs 2,239,699 2,239,699 2,239,699
Total Assets $ 6,644,491 $ 59,604 $ 6,704,095 6,780 6,710,875
Liabilities
Accounts Payable $ 5,679 $ $ 5,679 5,679
Accrued Liabilities 6,323 6,323 6,323
Total Liabilities 12,002 12,002 12,002
Fund Balance/Net Position
Fund Balance:
Nonspendable-Land Development Costs 2,239,699 2,239,699 2,239,699
Committed to Industrial Incentives 456,250 456,250 456,250
Unassigned 3,936,540 59,604 3,996,144 3,996,144
Total Fund Balance 6,632,489 59,604 6,692,093 6,692,093
Total Liabilities and Fund Balance $ 6,644,491 $ 59,604 $ 6,704,095
Net Position:
Restricted for Land Development Costs {2,239,699) 2,239,699
Restricted for Industrial Incentives (456,250) 456,250
Unrestricted (4,002,924) 4,002,924
Total Net Position $ (6,698,873) $ 6,698,873
*Primarily capital assets 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, 2018
Total Total
Debt Service Governmental Governmental
General Fund Fund Funds Adjustments* Activities
Revenues
Sales Taxes $ 1,466,934 $ $ 1,466,934 $ $ 1,466,934
Investment Earnings 19,792 49 19,841 19,841
Total Revenues 1,486,726 49 1,486,775 1,486,775
Expenditures/Expenses
Current
Personnel 229,919 229,919 229,919
Administration 65,992 65,992 (6,780) 59,212
Job Training 75,000 75,000 75,000
Marketing and Promotion 67,238 67,238 67,238
Direct Business Incentives 408,000 408,000 408,000
Debt Service
Principal 340,000 340,000 (340,000)
Interest 14,926 14,926 (1,244) 13,682
Fees 750 750 750
Total Expenditures/Expenses 846,149 355,676 1,201,825 (348,024) 853,801
Excess (Deficiency) of Revenues Over
Expenditures/Expenses 640,577 (355,627) 284,950 (348,024) 632,974
Other Financing Sources (Uses)
Refund from SRMMA Project 154,540 154,540 154,540
Transfers In 376,315 379,000 755,315 755,315
Transfers Out (379,000) (376,315) (755,315) (755,315)
Total Other Financing Sources (Uses) 151,855 2,685 154,540 154,540
Net Change in Fund Balances/Net Position 792,432 (352,942) 439,490 (348,024) 787,514
Fund Balances/Net Position -Beginning 5,840,057 412,546 6,252,603 341,244 5,911,359
Fund Balances/Net Position -Ending $ 6,632,489 $ 59,604 $ 6,692,093 $ (6,780) $ 6,698,873
*Primarily capital assets and long-term 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, 2018
I. Summary of Significant 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 Corporation'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-term 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 ba~ance classification in which they were accumulated.
5
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant 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
1. 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, 2018, there were no instances where expenditures exceeded
appropriations (budget).
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 holds investments in two external investment pools, Texas Class and Lone Star Investments.
Both investment pools carry investments at amortized cost, which approximates fair value.
Investments are priced daily and compared to the carrying value. If the ratio of the fair value of the
portfolio of investments to the carrying value of investments is less than .995 or greater than 1.005,
the investment pools will sell investment securities, as required, to maintain the ratio at a point
between .995 and 1.005.
State 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.
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
6
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities, and Fund Balance/Net Position (Continued)
3. Net Position Flow Assumption (Continued)
the PEDC's policy to consider restricted-net position to have been depleted before unrestricted-
net position is applied.
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. 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.
PEDC has acquired additional land and added improvements to be used in conjunction with certain
incentive agreements. Land and added improvements are not depreciated because they are expected
to be used as incentives and are not used in PEDC's ongoing activities.
7
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities, and Fund Balance/Net Position (Continued)
7. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not
available.
Assets capitalized have an original cost of more than $5,000 and useful life in excess of one year.
Depreciation has been provided over the estimated useful lives using the straight-line method of
depreciation. The estimated useful lives are as follows:
Equipment
Buildings
Improvements Other Than Buildings
II. Detailed Notes on All Activities and Funds
A. Cash Deposits with Financial Institutions
5-7 Years
40 Years
50 Years
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
in certificates of deposits in institutions that are domiciled in the State of Texas. Collateral agreements must
be approved prior to deposit of funds as provided by law.
As of September 30, 2018, 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 $3,232,250 and the bank balance was $3,264,662.
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: I) 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.
The Texas Class Investment Pool and Lone Star Investment Pool (Pools) have a credit rating of AAAm from
Standard & Poor's Financial Services. Local government investment pools in this rating category meet the
highest standard for extremely strong capacity to maintain principal stability and to limit exposure to principal
losses due to credit risk. The pools invest in a high quality portfolio of debt securities investments legally
permissible for municipalities and school districts in the state.
8
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
II. Detailed Notes on All Activities and Funds (Continued)
B. Investments (Continued)
As of September 30, 2018, PEDC had the following investments:
Investment TyPe
Texas Class Investment Pool
Lone Star Investment Pool
Total Fair Value
$
$
Fair Value
581,375
434
581,809
Weighted Average
Maturity (Days)
78
28
Investments in the Lone Star investment pool and Texas Class investment pool are not insured or guaranteed
by the FDIC or any other governmental agency. The Pools are measured at amortized cost, and are not
required to be reported by levels.
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an
investment. Investments with interest rates that are fixed for longer periods of time are more likely to be
subject to increased variability in their fair values due to changes in the market interest rates. PEDC manages
its exposure to market price changes by avoiding over-concentration of assets in a specific maturity sector,
limitation of average maturity of operating funds investments to less than eighteen months, and avoidance of
over-concentration of assets in specific instruments other than U.S. Treasury Securities and authorized
investment pools.
PEDC's investment policy, in conjunction with state law, specifies the type of credit rating of all authorized
investments.
Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a nationally
recognized statistical rating organization. PEDC reduces the risk of issuer default by limiting investments to
those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas Government Code.
PEDC's investments in pools carried a credit rating of AAAm by Standard & Poor's as of September 30,
2018.
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a
single issuer. PEDC's investment balance consists of only pooled accounts as described above.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral securities that are
in the possession of an outside party. PEDC's investment policy minimizes custodial credit risk by requiring
pledged securities to the in the name of PEDC.
C. Receivables
PEDC reports Taxes Receivable for sales tax collected by the State Comptroller.
On November 14, 2017, PEDC approved an economic incentive offer of $400,000 related to capital
investment and job retention and training. The incentive was given in the form of a forgivable promissory
note due in four installments.
9
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
II. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets
Capital asset activity for the year ended September 30, 2018, is as follows:
Balance
9/30/17 Additions
Governmental Activities
Capital Assets, Not Being Depreciated
Construction in Progress $ $
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated
Machinery and Equipment 6,895
Total Capital Assets,
Being Depreciated 6,895
Less Accumulated Depreciation for
Machinery and Equipment 115
Total Accumulated Depreciation 115
Total Capital Assets,
Being Depreciated, Net 6,780
Governmental Activities,
Capital Assets, Net $ $ 6,780
Retirements
$
$
Balance
9/30/18
$
6,895
6,895
115
115
6,780
$ 6,780
Depreciation expense of $115 was charged to the administration function of the governmental activities of
PEDC.
E. 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 $11,070 during the year ended September 30, 2018.
F. Commitments
PEDC has extended several incentive agreements to various companies and other commitments:
1. Daisy Dairy -In 2009, the Board of Directors reached an incentive agreement with Daisy Dairy
providing that upon the creation and retention of jobs, PEDC will reimburse Daisy Dairy for the
difference between Daisy Dairy's annual potable water bill from the City of Paris and Daisy Dairy's
fixed annual water bill (calculated at a rate of $1.20/1,000 gallons) multiplied by the actual usage
for the year. The remaining balance is estimated to be $456,250.
2. In connection with a first lien loan by a bank to Paris Warehouse Southwest LLC 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.
IO
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Financial Statements (Continued)
September 30, 2018
II. Detailed Notes on All Activities and Funds (Continued)
G. 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.
H. Long-Term Liabilities
Bonds Payable
PEDC had 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%. The final principal payment
was due and paid September 1, 2018, in the amount of$340,000.
Sales and Use Taxes ( one-quarter of one cent) 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 by made to the Debt Service Fund in an
amount sufficient to pay the next maturing bonds and interest.
A summary of long-term liability transactions for the year ended September 30, 2018, is as follows:
$
Balance
9/30/17
340,000
I. Interfund Transfers
$
Additions Reductions
$ 340,000 $
Balance
9/30/18
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. Transfers were also made to
transfer funds no longer restricted by debt restrictions to the general fund. The interfund transfers are reported
as Other Financing Sources (Uses).
J. Subsequent Events
On October 1, 2018, the Board of Directors reached an incentive agreement with American SpiralWeld Pipe
Company, LLC. PEDC will invest up to $4,700,000 in cash and land and improvements in connection with
a new manufacturing facility, job creation, and employment retention.
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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, 2018
Budseted Amounts Actual Variance with
Orisinal Final Amounts Final Budset
Revenues
Sales Taxes $ 1,416,000 $ 1,416,000 $ 1,466,934 $ 50,934
Investment Earnings 19,792 19,792
Total Revenues 1,416,000 1,416,000 1,486,726 70,726
Expenditures
Current
Personnel 224,800 231,800 229,919 1,881
Administration 92,300 85,300 65,992 19,308
Job Training 51,000 76,000 75,000 1,000
Marketing and Promotion 100,000 100,000 67,238 32,762
Direct Business Incentives 377,900 808,000 408,000 400,000
Total Expenditures 846,000 1,301,100 846,149 454,951
Excess of Revenues Over Expenditures 570,000 114,900 640,577 525,677
Other Financing Sources (Uses)
Reimbursement of SRMMA Project 154,540 154,540
Transfers In 376,315 376,315
Transfers Out pss,676) pss,676) p79,000) (23,324)
Total Other Financing Sources (Uses) (355,676) (355,676) 151,855 507,531
Net Change in Fund Balances 214,324 (240,776) 792,432 1,033,208
Fund Balances -Beginning 5,840,057 5,840,057 5,840,057
Fund Balances -Ending $ 6,054,381 $ 5,599,281 $ 6,632,489 $ 1,033,208
12
Note I: Budgetary Data
PARIS ECONOMIC DEVELOPMENT CORPORATION
(A Component Unit of the City of Paris, Texas)
Notes to the Required Supplementary Information
September 30, 2018
PEDC's fiscal year commences October 1st 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,
2018, there were no instance of expenditures exceeding appropriations (budget).
13