C.A.F.R., FY 2017-18CITY OF PARIS, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended September 3 0, 2018
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
Fiscal Year Ended September 30, 2018
Prepared By
Finance Department
W.E. Anderson, Director
INTRODUCTORY SECTION
INTRODUCTORY SECTION
CITY OF PARIS, TEXAS
Table of Contents
Year Ended September 30, 2018
Letter of Transmittal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
Certificate of Achievement for Excellence in Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-7
City of Paris Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-8
List of Elected and Appointed Officials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-9
FINANCIAL SECTION
Independent Auditors' Report ......................................................... .
Management's Discussion and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 13
Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 15
Fund Financial Statements
Balance Sheet -Governmental Funds ................................................ . 17
Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds .... . 18
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ........................... . 20
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual -General Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 21
Statement of Net Position -Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . ................. . 23
Statement of Revenues, Expenses, and Changes in Fund Net Position -Proprietary Funds ...... . 25
Statement of Cash Flows -Proprietary Funds .......................................... . 26
Notes to Financial Statements ....................................................... . 28
Required Supplementary Information
Texas Municipal Retirement System -Schedule of Changes in Net Pension Liability ............ . 67
Texas Municipal Retirement System -Schedule of City Contributions ........................ . 68
Paris Firefighters' Relief and Retirement Fund -Schedule of Changes in Net Pension Liability ..... . 69
Paris Firefighters' Relief and Retirement Fund -Schedule of City Contributions ................. . 70
Texas Municipal Retirement System -Schedule of Changes in Total OPEB Liability ............ . 71
Texas Municipal Retirement System -Schedule of City Contributions ........................ . 72
City of Paris Retiree Health Care Plan -Schedule of Changes in Total OPEB Liability ........... . 73
City of Paris Retiree Health Care Plan -Schedule of City Contributions ....................... . 74
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds ...................................................... . 75
Combining Balance Sheet -Nonmajor Governmental Funds ............................... . 76
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 77
Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual -
Special Revenue Fund ........................................................... . 78
Debt Service Fund .............................................................. . 79
Capital Projects Fund ............................................................ . 80
Capital Assets Used in the Operation of Governmental Funds -
Comparative Schedules by Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 81
Statement
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Schedule
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CITY OF PARIS, TEXAS
Table of Contents (Continued)
Year Ended September 30, 2018
STATISTICAL SECTION ........................................................... .
Financial Trends
Net Assets/Position by Component ................................................... .
Changes in Net Assets/Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Fund Balances of Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Changes in Fund Balances of Governmental Funds ................... .
Revenue Capacity
Property Tax Levies and Collections .................................................. .
Property Tax Rates -All Direct and Overlapping Governments . . . . . . . . . . . ................. .
Assessed and Estimated Actual Value of Property ....................................... .
Principal Property Taxpayers ....................................................... .
Debt Capacity
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita . . . . . . . . . . . . . . . . . . . . . . ................. .
Ratio of Outstanding Debt by Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Direct and Overlapping Governmental Activities Debt ................................... .
Legal Debt Margin Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Revenue Pledged Coverage -Water and Sewer Revenue Bonds ............................ .
Demographic and Economic Information
Demographic and Economic Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Principal Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Operating Information
Operating Indicators by Function ..................................................... .
Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. .
Building Permits at Market Value .................................................... .
Full-Time Equivalent City Government Employees by Function. . . . . . . . . . . ................. .
CONTINUING DISCLOSURE INFORMATION (Unaudited)
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Continuing Disclosure Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Table
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March 27, 20 19
Mayor Steve Clifford, MD
and Members of the City Council
City of Paris, Texas
Dear Mayor and Council Members:
I am pleased to subm it the Comprehensive Annual Financial Report of the City of Paris, Texas, for the fisca l year ended
September 30, 2018.
The City of Paris is a fin ancial reporting entity as defined by the Government Accounting Standards Board cod ification section
2100. As such, it has a separately elected governing body chosen by its ci tizens in a general, popular election, is a legally
separate primary government, and·is fisca lly independent of other state and local govern ments. The financial reporting entity
includes all the funds of the primary government and its component unit, the Paris Economic Development Corporation. More
informat ion about PEDC can be found in footnote l.B. which deals with reporti ng entity topics. There are no other potential
component units.
The primary purpose of this report is to provide the City Council, citizens, financ ial commun ity, and others with detailed
information concerning the financial cond ition and performance of the City of Paris. It is strongly recommended that any user
of this report read the Management's Discussion and Analys is incl uded in the financial section of the report. In addition, this
report provides assurance that the City presents fairly its financial position as verified by independent auditors.
THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
The Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended September 30, 2018, which
fo llows, was prepared by the Finance Department. The financ ial statements have been audited by McClanahan and Holmes,
LLP, CPAs, whose report is included herein. This audit sati sfies Article Ill, Section 35 of the City Chatter which requi res that
an annual audit of all accounts of the City be made by an independent certified pu blic accountant.
The City Fin ance Department is responsible for both the accuracy of the presented data and the completeness and fairness of
the presentations, including all disclosures. I believe the data presented is accurate in all material aspects and is presented in a
manner which fairly sets fo rth the financial position and results of operations of the City. Furthermore, I believe that all
disclosures necessary to enable the reader to gain maximum understanding of the City's financ ial activity have been included.
The fi nancial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (GASS).
P.O. BOX 9037 • PARIS, TEXAS 75461·903f-1• <903) 785-7511 • FAX (903> 785-8519
This Comprehensive Annual Financial Report consists of four parts:
1. The Introductory Section includes an organizational chart, list of elected and appointed officials, and this
transmittal letter, which highlights significant aspects of the financial operations during the year and particular
issues faced by the City.
2. The Financial Section includes the independent auditors' report, management's discussion and analysis,
financial statements and related notes, and supplemental financial data.
3. The Statistical Section includes several tables of unaudited data depicting the financial history of the City, as
well as demographic infonnation of other governmental units overlapping the City and other miscellaneous
statistics.
4. The Continuing Disclosure lnfonnation Section contains thirteen tables of financial infonnation required by
the United States Securities and Exchange Commission Rule 15c2-12. These tables provide investors with
updated information on all municipal bond issues sold after July 3, 1995.
The Notes to the Financial Statements are provided in the Financial Section and are considered essential to fair presentation
and adequate disclosure for this financial report. The notes include the Summary of Significant Accounting Policies for the
City and other necessary disclosures of important matters relating to the financial position of the City. The notes are treated as
an integral part of the financial statements and should be read in conjunction with them.
General Information Regarding the City and Surrounding County
The City of Paris is the county seat and principal commercial center of Lamar County and is located at the intersection of
United States Highways 271 and 82, approximately 100 miles northeast of Dallas near the Red River. The City is served by 5
banks. The City's 20 IO census is 25,171, a decrease of 2.80% from the 2000 census of 25,898.
Lamar County (the County) is located in northeast Texas and borders the State of Oklahoma. The County, which is situated
between the Red River and the Sulphur River, is traversed by United States Highways 271 and 82, State Highways 19 and 24,
and 32 farm-to-market roads. The County's 2010 census is 49,793, an increase of2.66% over the 2000 census of 48,499.
The City is a regional medical center serving patients in Northeast Texas and Southeast Oklahoma. Founded in 1911 as St.
Joseph's Hospital, Paris Regional Medical Center is a 154 bed medical center. Its parent company is LifePoint Health. It
complements the City's doctors and dentists that provide a wide range of general and special medical services. There also are
several independent emergency care centers located in the city.
The City provides utilities through its 36 MGD water plant and 7.25 MGD wastewater plant. Electric power is supplied to
Paris by TXU Electric's interconnected transmission system. It has a generating capacity of 22,808,000 KW. The supply of
electric power is adequate to meet the requirements of any commercial or industrial demand. Atmos Energy provides natural
gas for residential, commercial, and industrial users. Atmos Energy is the largest provider of pure natural gas in America. It
provides service to over three million customers in 12 states. There are 3 transmission lines serving the City with a line
pressure of 300 pounds per square inch. Telephone service is provided by AT &T.
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Educational facilities of the City are provided by 3 independent school districts. Each of the districts is accredited by the Texas
Education Agency. Higher education needs in the County are provided at Paris Junior College located in the City. Total
enrollment of these entities is 12,758.
Tourists are attracted to the area by activities on Lake Crook and Pat Mayse Reservoir. Pat Mayse Reservoir is located 15
minutes from the City and provides 6,000 acres for boating, fishing, and camping. The Gambill Goose Refuge and numerous
hunting and fishing areas are also located in the County. Other points of interest and activities include the Sam Bell Maxey
House, the A.M. Aikin Archives, Red River Valley Exposition, and the Lamar County Historical Society Museum.
Also, the City has one 18-hole golf course, one public swimming pool, 26 tennis courts, 3 walk/jog tracks, a sports complex,
and 24 public park areas.
Government Organization
The City was founded in 1839 with the current charter adopted in November of 1948 and last revised in 2011. The City
operates under the Council/Manager fonn of government with 7 council members elected from single member districts. The
Mayor is elected by the Council itself to serve as moderator of the group. The Council members can serve a maximum of three
consecutive 2 year staggered tenns. The Mayor and Council appoint the City Manager, the City Attorney, and the Municipal
Judge. The City is a Home Rule City with all powers granted to home rule cities by the constitution and laws of the State of
Texas. The Council enacts legislation, adopts budgets, and detennines policies of the City of Paris. The City Manager
executes the laws and administers the government of the City.
Economic Condition and Outlook
Tax ab le values, as originally certi fled by the Lamar County Appraisal District, for fiscal year 2018-19 reflect a 3 .00% increase
over the 2017-18 values. Building pennits for new residential and commercial construction were valued at $43,374,790 for
fiscal year 2017-18. This activity should be reflected in next year's taxable values.
Sales taxes for 2017-18 increased from the prior year by 1.15%. Current rebates are 2.75% above the 2017-18 rebates through
March 2019.
Hotel occupancy taxes were up 0.76% compared to 2016-17 taxes. First quarter 2018-19 collections were 3.36% above the
same period in 2017-18.
Franchise fees increased 2.47% compared to the previous year.
The City of Paris, Paris Economic Development Corporation, and the Lamar County Chamber of Commerce have been
actively recruiting new business to the area as well as supporting already existing businesses. PEDC has several active
incentive commitments in regard to its recruitment of new industry and support of existing industry. The big economic news
was the announcement that American SpiralWeld Pipe Company, a subsidiary of American Cast Iron Pipe Company, would be
building a plant in Paris. Initial capital investment will be between 70 and 90 million dollars with 60 full time jobs. The plant is
scheduled to open in the Spring of 2020.
General Fund receipts equaled I 04.2% of budget. This excess of revenues was caused by increased intergovernmental
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revenue, property taxes and sales taxes. General Fund expenditures were only 97.96% of budget. For the 2018-19 fiscal year,
the City Council adopted a tax rate of .55195 cents per $100 of value, the same rate as the previous year. This rate allows
maintaining all services at their current levels or above and funds all required interest and sinking funds.
Long-term Financial Planning and Relevant Financial Policies
The City continues to develop its long-range financial plan. The City formalized a key financial policy in 2010 that had been
informally followed previously: a utility rate maintenance policy. The utility rate maintenance policy will help assure the
financial integrity of the enterprise fund along with its related interest and sinking funds. Another policy was formalized in
2013 in the form of a reserve level guideline for both the general fund and utility fund. Adequate reserve levels provide the
City with the ability to deal with extraordinary events and maintain its credit worthiness. This credit worthiness, as reflected in
the current financial statements, allowed the City to obtain very favorable interest rates on the general obligation bonds issued
in 2016, 2017, and 2018.
Major Initiatives
The City continues to work on its long range plan to maintain its infrastructure. The City called for a general obligation bond
election in May 2013 in the amount of $45,000,000 which passed overwhelmingly. Proceeds from these bonds are being used
for water and sewer infrastructure improvements. These bonds will be paid for out of utility system revenues. With the payoff
of earlier debt issues, it will not be necessary to raise utility rates to fund the new debt. Likewise a $9,750,000 bond election
for street construction and repair was approved in 2017.
The City also continues to expand its effort in law enforcement related area. Programs in this effort include the Auto Theft
Task Force and Justice Assistance Grant for needed equipment.
From a development standpoint, the City has taken several steps. Reentry into the State of Texas Main Street Program has
channeled additional funds for revitalization of existing structures and businesses. The City continues to work closely with the
Paris Economic Development Corporation to attract new business to Paris and to support existing businesses as well. Working
with the Chamber of Commerce, the City is effectively using the civic center to attract people and business to Paris. City
officials are also closely working with Keep Paris Beautiful, Inc. to promote and improve the City. The Historic Preservation
Committee is working with local property owners to maintain the historical character of the City. In addition, the City Planner
has been formulating long range plans for city development. The City has also begun a 10 year plan to redevelop the down
town area of Paris.
Other Financial Information
The financial statements of the City of Paris, Texas, have been prepared in conformity with generally accepted accounting
principles as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles. Using the GASB 34 reporting model, the
City's Comprehensive Annual Financial Report provides for a management's discussion and analysis, government-wide
financial statements, major fund financial statements, notes to the financial statements, and other required supplementary
information.
The City has a written investment policy that conforms to state statutes, which outlines permissible investments. The City
pools its cash balances for investment purposes from the various funds maintained in its consolidated cash account. Interest
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earnings of the pool are allocated to the various funds of the City based upon a fund's equity position in the pool. The City of
Paris' primary risk exposures are in the areas of workers' compensation and tort liability. Provision for these risks is made
through participation in the Texas Municipal League's risk pool.
Between 30 days and 90 days prior to the beginning of each fiscal year, the City Manager submits to the City Council a
proposed budget for the fiscal year beginning on the following October 1. The operating budget, which represents the
financial plan for the ensuing fiscal year, includes proposed expenditures and the means of financing them. Public hearings are
conducted at which all interested persons' comments concerning the budget for the next fiscal year are heard. The budget is
legally enacted by the City Council through passage of an ordinance not later than the 27th day of the last month prior to the
beginning of the fiscal year. Generally, appropriations are legally adopted at the department level. Budgetary controls are
maintained at the major category of expenditure level within each operating division. All anticipated expenditures are
budgeted for control purposes. Capital project funds are appropriated on a project by project basis. Expenditures and/or
expenses are directly monitored by the City Council.
Internal Controls
Internal accounting controls are designed to provide reasonable, but not absolute, assurance of the safeguarding of assets
against loss from unauthorized use or disposition and reliable financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not
exceed the benefits likely to be derived.
All internal control evaluations occur within this framework. The Finance Department's staff believes the City's internal
control structure adequately ensures compliance with laws and regulations and reasonable assurance for safeguarding of assets.
Debt
The following schedule outlines the outstanding City debt as of09-30-18:
2010 Tax and Rev. C. 0.
2010 G. 0. Refunding Bonds
2012 G. 0. Refunding Bonds
2013 C. 0. (TWDB)
2013 G. 0. Bond
2016 G.O. Bonds
2017 G.O. Bonds
2018 G .0. Bonds
Capital Lease-Firetrucks
Total
Independent Audit
$ 2,180,000
870,000
1,570,000
9,340,000
190,000
1,253,181
$ 15,403,181
$
1,410,000
2,150,000
30,065,000
8,400,000
1,200,000
$ 43,225,000
12-15-29 Aa3
06-15-20 Aa3
12-15-21 Aa3
06-15-32 NIA
12-15-32 Aa3
12-15-36 Aa3
06-15-37 Aa3
09-30-28
10-21-24 NIA
The City Charter requires an annual audit to be made of the accounts, financial records, and transactions of all administrative
departments of the City by a certified public accountant selected by the City Council. The requirement has been complied
with, and the Independent Auditors' Report has been included in this report.
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Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Paris for its comprehensive annual financial report for the fiscal year
ended September 3 0, 2017. This was the 225' consecutive year that the government has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
Acknowledgments
The preparation of this report could not have been accomplished without the full support and efficient and dedicated efforts of
the entire staff of the Finance Department and the competent services of the independent auditors, McClanahan and Holmes,
LLP, CPAs. I express my appreciation to all members of the Finance Department who assisted and contributed to the
completion of this report and to all City departments involved in the preparation of information for this report. In addition, I
express my appreciation to the Mayor, City Council, and City Manager for their continuing interest and support in planning
and conducting the financial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
W. E. Anderson
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Paris
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2017
Executive Director/CEO
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CITY OF PARIS ORGANI ZATI ONAL CHART
EMS
IT
WATER TREATMENT
CllilZENS OF PARIS
CITY ATTORNEY CITY COUNCIL MUNICIPAL JUDGE
FIRE
UTILITIES
WASTEWATER
TREATMENT
WATER
DISTRIBUTION
HR
SANITATION
CITY MANAGER MUNICIPAL COURT
POLICE
LIFT STATIONS
WASTEWATER
COLLECTION
PUBLIC WORKS
CITY CLERK
AIRPORT
ACCOUNTING/
AUDITING
PARKS/
RECREATION/R.O.W.
STREETS/HIGHWAYS
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PLANNING,
ENGINEERING, &
DEVELOPMENT
COMMUNITY
DEVELOPMENT
FINANCE
UTILITY BILLING/
COLLECTION
GARAGE
TRAFFIC/
PUBLIC LIGHTING
LIBRARY
ENGINEERING
WAREHOUSE/
PURCHASING
List of Elected and Appointed Officials
Elected Officials
Dr. Steve Clifford -Mayor
Derrick Hughes -Mayor Pro-Tern
Clayton Pilgrim
Bill Trenado
Linda Knox
Ranae Stone
Paula Portugal
Appointed Officials
John Godwin -City Manager
Gene Anderson -Finance Director
Stephanie Harris -City Attorney
Janice Ellis -City Clerk
Pricilla McAnally -Library Director
Tom E. Hunt, III-Presiding Municipal Court Judge
Bob Hundley -Police Chief
Doug Harris -Utilities Director
Thomas McMonigle-Assistant Fire Chief
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.... -....
FINANCIAL SECTION
·: .. :,
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
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Basic Financial Statements Accompanied by
Required Supplementary Information and Other Information
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and City Council
City of 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
903-583-5574
FAX 903-583-9453
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund information including
the budgetary comparison 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 the City'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.
Honorable Mayor and City Council
City of Paris, Texas
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the discretely presented component
unit, each major fund, and the aggregate remaining fund information of the City of Paris, Texas, as of September 30,
2018, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective
budgetary comparison for the General Fund for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note I to the financial statements, in fiscal year 2018, the City adopted new accounting guidance
prescribed by GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions and GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a
Construction Period. Because GASB Statement Nos. 75 and 89 implement new measurement criteria and reporting
provisions, significant information has been added to the Government-Wide Statements. Statement 1 discloses the
City's share of the Net OPEB Liability and related deferred outflows and inflows. Statement 2 includes recognition
of the related OPEB expense. Our opinion is not modified with respect to the matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis, the schedules of changes in net pension liability, and the schedules of City contributions 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Paris, Texas' basic financial statements. The introductory section, combining and individual nonmajor
fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The introductory section, combining and individual nonmajor fund financial statements and schedules, and statistical
section are presented for the purposes of additional analysis and are not a required part of the basic financial
statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Paris, Texas
March 27, 2019
2
!M.cCfananan ant! 1Cofmes, ££(1'
Certified Public Accountants
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Paris (the City), we offer readers of the City of Paris, Texas' financial statements this
narrative overview and analysis of the financial activities of the City of Paris for the fiscal year ended September 30,
2018. We encourage readers to consider the information presented here in conjunction with additional information
that we have furnished in our letter of transmittal as well as the City's financial statements.
Financial Highlights of the Primary Government
• The City increased its tax rate to 0.55195 per $100 of valuation for fiscal year 2017-18. This increase was
in response to the citizens' vote to issue general obligation bonds to construct and repair city streets.
• For the upcoming 2018-19 fiscal year, the City maintained its tax rate at 0.55195 per $100 of valuation.
• City-wide revenues this year exceeded City-wide expenses by $740,563 compared to $353,943 the previous
year.
• At the end of the fiscal year, unassigned fund balance for the general fund was $11,753,392 or 47.72%, of
total general fund expenditures. The prior year unassigned fund balance was $10,849,390 or 43.55%, of
general fund expenditures.
• At the end of the fiscal year, the net position of the proprietary funds was $41,268,531 compared to
$41,924,468 the prior year.
Overview of the Financial Statements
This management's discussion and analysis is intended to serve as an introduction to the City of Paris' basic
financial statements. The City of Paris' basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of
Paris' finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City of Paris' assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the City of Paris is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods ( e.g., uncollected taxes and
earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Paris that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended
to recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the City of Paris include general government, public safety, public works, culture and
recreation, health, and airport. The business-type activities of the City of Paris include water production and
distribution as well as wastewater collection and treatment. The government-wide financial statements include not
only the City of Paris itself (known as the primary government), but also a legally separate economic development
corporation (known as the component unit) over which the City of Paris is able to exercise significant control.
Financial information for this component unit is reported separately from the financial information presented for the
primary government itself.
3
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City of Paris, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Paris can
be divided into two categories: governmental funds and proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
government activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City of Paris classifies its governmental funds as either Nonmajor or Major. Nonmajor governmental funds
include all special revenue funds and permanent funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for
the general fund, capital projects fund, and the debt service fund, all of which are considered to be Major funds.
Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data
for each of these Nonmajor governmental funds is provided in the form of combining statements elsewhere in this
report.
The basic governmental fund financial statements can be found immediately after the Independent Auditors' Report.
Proprietary Funds
The City of Paris maintains only one type of proprietary fund. An enterprise fund (the type used by the City of Paris)
is used to report the same functions presented as business-type activities in the government-wide financial
statements. The City of Paris uses an enterprise fund to account for its water and sewer related activities.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund used by the City of Paris is considered a major fund.
The basic proprietary fund financial statements can be found beginning with Statement 7 and continuing through
Statement 9 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found immediately
after the Statement of Cash Flows-Proprietary Funds in this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City of Paris' progress in funding its obligation to provide pension
benefits to its employees. Required supplementary information can be found immediately following the Notes to the
Financial Statements.
4
Combining and individual fund statements and schedules can be found immediately after the required
supplementary information in this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the City of Paris, assets exceeded liabilities by $74,584,048 at the close of the most recent fiscal year. This
compares to $73,145,737 for the previous year. This was a 1% increase in net position.
By far, the largest portion of the City of Paris' net position ($39,036,237 or 52.33%) reflects its net investment in
capital assets (e.g., land, buildings, machinery, and equipment). The City of Paris uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of Paris'
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. The decrease in net position is primarily due to two new debt issues in the 2016-17 fiscal year.
City of Paris
Net Position
Governmental Activities Business-T~e Activities Total Total
2017 2018 2017 2018 2017 2018
Assets:
Current and Other Assets $25,942,853 26,896,349 $38,118,693 $25,936,919 $64,061,546 $52,833,268
Capital Assets 36,938,112 37,741,733 52,523,830 62,055,816 89,461,942 99,797,549
Total Assets 62,880,965 64,638,082 90,642,523 87,992,735 153,523,488 152,630,817
Deferred Outflows
Related to Pension 3,913,733 1,170,682 714,697 239,151 4,628,430 1,409,833
Related to OPEB 52,281 148,713 3,332 13,468 55,613 162,181
Total Deferred Outflows $ 3,966,014 $ 1,319,395 $ 718,029 $ 252,619 $ 4,684,043 $ 1,572,014
Long-Term Liabilities:
Outstanding 32,107,151 29,647,214 46,055,437 44,647,012 78,162,588 74,294,226
Other Liabilities 3,640,240 1,886,368 3,326,138 2,048,262 6,966,378 3,934,630
Total Liabilities 35,747,391 31,533,582 49,381,575 46,695,274 85,128,966 78,228,856
Deferred Inflows
Related to Pensions (121,681) 1,108,378 54,509 281,549 (67,172) 1,389,927
Net Position:
Net Investment in
Capital Assets 19,392,611 20,713,428 24,198,822 18,322,809 43,591,433 39,036,237
Restricted 3,004,564 12,548,372 3,004,564 12,548,372
Unrestricted 8,824,094 53,717 17,725,646 22,945,722 26,549,740 22,999,439
Total Net Position $31,221,269 $33,315,517 $41,924,468 $41,268,531 $73,145,737 $74,584,048
An additional portion of the City of Paris' net assets ($12,548,372 or 16.82%) represents resources that are subject
to external restrictions on how they may be used. The balance of unrestricted net assets ($22,999,439 or 30.83%)
may be used to meet the government's ongoing obligations to citizens and creditors.
5
At the end of the current fiscal year, the City of Paris is able to report positive balances in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business-type activities
net investment in capital assets, restricted net position, and unrestricted net position. This was also true for the prior
fiscal year.
Governmental Activities
Governmental activities increased the City of Paris' net position by $2,094,248 (6.70%) during the current fiscal
year. Total governmental revenue was down $173,172 with general revenues being up $1,409,450 and program
revenues being down $1,582,622. General revenues were up in most categories. Program revenues were down
primarily due to a reduction in capital grants.
General Revenues
Increase
2017 2018 {Decrease}
Property Taxes $ 8,175,530 $ 9,170,951 $ 995,421
Sales Taxes 7,233,526 7,317,162 83,636
Franchise Taxes 4,211,397 4,315,694 104,297
Hotel Occupancy Tax 657,270 662,263 4,993
Unrestricted Investment Earnings 173,656 426,518 252,862
Miscellaneous 361,125 387,306 26,181
Gain (Loss) on Sale of Capital Asset (57,940) (57,940)
$ 20,812,504 $ 22,221,954 $ 1,409,450
6
The following table provides a summary of the City's operations for the years ending 2017 and 2018 for both
governmental and business-type activities.
City of Paris
Changes in Net Position
Governmental Activities Business-Type Activities Total
Revenues 2017 2018 2017 2018 2017 2018
Program Revenues:
Charges for Services $ 4,823,046 $ 5,049,136 $ 13,781,748 $ 14,168,934 $ 18,604,794 $ 19,218,070
Operating Grants
and Contributions 338,718 154,497 338,718 154,497
Capital Grants
and Contributions 2,147,065 522,574 2,147,065 522,574
General Revenues:
Property Twces 8,175,530 9,170,951 8,175,530 9,170,951
Sales Twces 7,233,526 7,317,162 7,233,526 7,317,162
Franchise Twces 4,211,397 4,315,694 4,211,397 4,315,694
Hotel Occupancy Twc 657,270 662,263 657,270 662,263
Unrestricted
Investment Earnings 173,656 426,518 315,872 380,393 489,528 806,911
Other 361,125 329,366 361,125 329,366
Total Revenues 28,121,333 27,948,161 14,097,620 14,549,327 42,218,953 42,497,488
Expenses
General Government 2,164,967 3,825,666 2,164,967 3,825,666
Public Safety 12,456,655 12,061,033 12,456,655 12,061,033
Public Works 7,126,349 6,882,186 7,126,349 6,882,186
Health 2,836,429 2,884,339 2,836,429 2,884,339
Culture and Recreation 781,092 866,435 781,092 866,435
Other 1,982,260
Cox Field 235,546 243,666 235,546 243,666
Interest on
Long-Term Debt 185,852 399,291 185,852 399,291
Water and Sewer 12,100,940 14,594,309 12,100,940 14,594,309
Total Expenses 27,769,150 27,162,616 12,100,940 14,594,309 37,887,830 41,756,925
Increase (Decrease) in Net
Position Before Transfers 352,183 785,545 1,996,680 (44,982) 4,331,123 740,563
Transfers/Special Items 382,794 610,955 (382,794) (610,955)
Increase (Decrease)
in Net Position 734,977 1,396,500 1,613,886 (655,937) 4,331,123 740,563
Net Position, Beginning 35,400,053 36,135,030 45,485,281 41,924,468 80,885,334 78,059,498
Prior Period Adjustment (4,216,013) (5,174,699) (5,174,699) (4,216,013)
Net Position, Ending $ 36,135,030 $ 33,315,517 $ 41,924,468 $ 41,268,531 $ 80,041,758 $ 74,584,048
7
Business-Type Activities
Business-type activities decreased the City of Paris' net position by $655,937. This decrease was caused by
substantially increased expenses.
Financial Analysis of the Government's Funds
As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the City of Paris' governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City of Paris' financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
Total Assets
Total Liabilities
Deferred Inflows ofResources
Fund Balances:
Nonspendable:
Inventory
Pennanent Fund Principal
Restricted for:
Debt Service
Capital Projects
Notes
Law Enforcement
Public Education
Assigned:
Library
Community Development
Unassigned:
General Fund
Total Fund Balances
Total Liabilities, Deferred Inflows,
and Fund Balances
$
$
$
Governmental Funds
2017 2018
25,942,853 $ 26,896,350
1,123,781 $ 1,733,070
954,578 1,108,832
326,985 418,995
92,347 93,689
1,652,355 1,836,162
10,087,553 8,957,151
42,483
228,578 199,194
445,056 496,852
82,042 85,554
213,459
10,907,095 11,753,392
23,864,494 24,054,448
25,942,853 $ 26,896,350
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund
balances of $24,054,448. Approximately 48.86% of this total amount ($11,753,392) constitutes unassigned fund
balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved
to indicate that it is not available for new spending because it is non-spendable, restricted, or assigned to I)
Permanent Fund Principal ($93,689), 2) pay debt service ($1,836,162), 3) inventories ($418,995}, 4) law
enforcement ($199,194), 5) library ($85,554), 6), Public Education ($496,852), 7) capital projects ($8,957,151) and
8) Community Development ($213,459).
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Revenues
Expenditures
Deficiency of Revenues
Under Expenditures
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Increase (Decrease) in Inventory
Fund Balances -Beginning
Prior Period Adjustment
Fund Balances -Ending
General Fund
$
$
Governmental Funds
Revenues, Expenditures, and
Changes in Fund Balances
2017 2018
26,994,291 $ 27,811,332
27,173,947 28,624,534
(179,656) (813,202)
10,296,193 800,961
10,116,537 (12,241)
103,074 40,517
13,644,883 23,864,494
161,678
23,864,494 $ 24,054,448
The General Fund is the chief operating fund of the City of Paris. At the end of the current fiscal year, unassigned
fund balance of the general fund was $11,753,392 ($10,849,390 the previous year), while total fund balance reached
$12,670,746 ($11,622,868 the previous year). The increase in the fund balance of the general fund was primarily
due to increased investments, receivables and reduced accounts payable. As a measure of the general fund's
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 4 7. 72% of total general fund expenditures, while total fund
balance represents 51.45% of that same amount.
During the year, the City also made budgeted transfers from the Water and Sewer Fund to the General Fund for
administrative support and payment of franchise fees. Transfers were made from the Water and Sewer Fund to the
Debt Service Fund to make debt service payments.
Other governmental funds (nonmajor) include the Permanent and Expendable Library Funds, Special Revenue Fund,
Grant Fund, and the Community Development Fund. Only the General Fund had unassigned fund balance at the end
of the year.
Budget Analysis
The City of Paris adopts an annual appropriated budget for its general fund. A budgetary comparison statement has
been provided as Required Supplementary Information in this report to demonstrate compliance with this budget.
The final appropriation of the general fund was underspent by $563,605 ($1,547,174 underspent the previous year).
This 2.23% variance was spread out among most departments and is mainly due to conservative forecasting.
General Fund revenues were over budget by $1,036,684 (4.19%). Higher than expected property tax collections,
sales taxes, and intergovernmental revenue were the primary reasons for this difference.
Capital Projects Fund
The Capital Projects Fund is funded by the General Fund and/or the Proprietary Fund on an as needed basis or by
debt issue authorized by the City Council. As Proprietary Fund projects are completed in the Capital Projects Fund,
they are transferred back to the Proprietary Fund. The fund balance in the Capital Projects Fund was $8,955,644
($10,086,115 last year). Variances from year to year are common in this fund as projects are approved on a year to
year basis by the City Council.
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Debt Service Fund
The Debt Service Fund has a total fund balance of $1,836,162 ($1,652,355 the previous year), all of which is
reserved for the payment of debt service. The net increase in fund balance during the current year in the debt service
fund was $183,807 ($564,691 increase the previous year). The government enacted a dedicated property tax for debt
service at the beginning of the current fiscal year. This tax produced revenues of $1,795,313 in the current fiscal
year ($1,243,883 the previous year).
Proprietary Fund
The City of Paris' Proprietary Fund provides the same type of information found in the government-wide financial
statements, but in more detail.
Unrestricted net position ofthe Water and Sewer Fund at the end of the year amounted to $22,945,722 ($17,725,646
the previous year). This change was primarily due to construction in progress. Other factors concerning the finances
of this fund have already been addressed in the discussion of the City of Paris' business-type activities.
Capital Asset and Debt Administration
Capital Assets
The City of Paris' investment in capital assets for its governmental and business-type activities as of September 30,
2018, amounts to $99,797,549 ($100,422,605 the previous year). Both of these amounts are net of accumulated
depreciation. This investment in capital assets includes land, buildings, improvements, machinery and equipment,
park facilities, roads, highways, and bridges.
Net Capital Assets
Governmental Activities Business-Type Activities Total
2017 2018 2017 2018 2017 2018
Land $ 5,929,099 $ 5,927,478 $ 339,620 $ 339,620 $ 6,268,719 $ 6,267,098
Buildings and System 10,488,899 10,561,301 37,304,516 29,532,653 47,793,415 40,093,954
Improvements Other
than Buildings 4,805,596 3,206,534 4,805,596 3,206,534
Machinery, Furniture,
and Equipment 3,446,937 3,948,088 798,930 1,395,284 4,245,867 5,343,372
Infrastructure 14,595,422 12,931,632 14,595,422 12,931,632
Construction in Progress 250,886 1,166,700 19,113,250 27,474,441 19,364,136 28,641,141
Water Rights-Net 3,349,450 3,313,818 3,349,450 3,313,818
Total $ 39,516,839 $ 37,741,733 $ 60,905,766 $ 62,055,816 $ I 00,422,605 $ 99,797,549
Additional information on the City of Paris' capital assets can be found in note IV. D. of the Notes to the Financial
Statements.
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Long-Term Debt
The City has two capital leases with $1,253,181 in principal outstanding at year end. The City of Paris also has total
bonded debt outstanding in the amount of $57,375,000. Of this amount, $14,150,000 comprises debt being paid for
by property tax revenues, and $43,225,000 represents bonds being paid for by water and sewer revenues.
Issue
2010 G.O. Refunding Bonds
2010 Tax and Rev C.O.s
2012 G.O. Refunding Bonds
2013 C.0.s (TWDB)
2013 G.O. Bonds
2016 G.O. Bonds
2017 G.O. Bonds
2018 G.0. Bonds
Capital Leases -Firetrucks
Tax
Supported
$ 870,000
2,180,000
1,570,000
9,340,000
190,000
1,253,181
$ 15,403,181
Revenue
Supported
$ 1,410,000
2,150,000
30,065,000
8,400,000
1,200,000
$43,225,000
Moody's
Final Investors
Maturi~ Rating
6/15/2020 Aa3
12/15/2029 Aa3
12/15/2021 Aa3
6/15/2032 NIA
12/15/2032 Aa3
12/15/2036 Aa3
6/15/2037 Aa3
9/30/2028
The City of Paris' bond debt decreased by $1,910,000 (3.32%) during the fiscal year despite the small 2018 issue of
bonds. The City's underlying bond rating from Moody's is 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 $0.55195 per $100 valuation for the 2017-18 fiscal year. This
rate was broken down into $0.44248 per $100 valuation for operations and $0.10947 per $100 valuation for debt
service. Using the traditional allowance of the state attorney general as a guide, the City of Paris is utilizing only
7 .29% of its debt capacity.
Additional information on the City of Paris' long-term debt can be found in note IV. K. of the Notes to the Financial
Statements.
Economic Factors and Next Year's Budgets and Rates
• Sales tax revenues are projected to grow 2% in the coming year.
• New construction amounted to 31 residential units and 33 commercial units.
• Local population growth is expected to be minimal.
• The tax rate is expected to remain at or below $0.55195 per $100 of value.
• Franchise fees are expected to remain stable.
All of these factors were considered in preparing the City of Paris' budget for 2018-19.
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Requests for Information
This financial report is designed to provide a general overview of the City of Paris' finances 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.
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CITY OF PARIS, TEXAS
Statement of Net Position
September 30, 2018
Primary Government
Governmental Business-Type
Activities Activities
Assets
Cash and Cash Equivalents $ 6,822,201 $ 3,740,047
Investments 6,578,433 476,598
Receivables (Net of Allowance
for Uncollectibles) 2,653,692 2,174,037
Note Receivable
Inventories 418,995 225,262
Net Pension Asset 13,720
Restricted Assets
Cash and Cash Equivalents 3,685 9,141,708
Investments 9,688,311 10,165,547
Due from Other Governments 731,032
Land Development Costs
Water Rights (Net of
Accumulated Amortization) 3,313,818
Capital Assets Not
Being Depreciated
Land 5,927,478 339,620
Construction in Progress 1,166,700 27,474,441
Capital Assets (Net of
Accumulated Depreciation)
Buildings and System 10,561,301 29,532,653
Improvements Other Than
Buildings 3,206,534
Machinery and Equipment 3,948,088 1,395,284
Infrastructure 12,931,632
Total Assets 64,638,082 87,992,735
Deferred Outflows of Resources
Deferred Outflows Related to Pensions 1,170,682 239,151
Deferred Outflows Related to OPEB 148,713 13,468
Total Deferred Outflows of Resources 1,319,395 252,619
The accompanying notes to the financial statements are an integral part of this statement.
13
Statement I
Component
Unit
Economic
Total Develoement
$ 10,562,248 $ 3,232,550
7,055,031 581,809
4,827,729 250,037
400,000
644,257
13,720
9,145,393
19,853,858
731,032
2,239,699
3,313,818
6,267,098
28,641,141
40,093,954
3,206,534
5,343,372 6,780
12,931,632
152,630,817 6,710,875
1,409,833
162,181
1,572,014
CITY OF PARIS, TEXAS Statement 1
Statement of Net Position (Continued)
September 30, 2018
Component
Prim!!!i'. Government Unit
Governmental Business-Type Economic
Activities Activities Total DeveloEment
Liabilities
Accounts Payable and
Other Current Liabilities 1,733,070 482,857 2,215,927 5,679
Accrued Interest Payable 153,298 510,426 663,724 6,323
Unearned Revenue 139,812 139,812
Customers' Deposits 915,167 915,167
Net Pension Liability 10,196,559 10,196,559
Net OPEB Liability 2,583,867 166,627 2,750,494
Noncurrent Liabilities
Due Within One Year 1,603,209 2,288,437 3,891,646
Due in More Than One Year 15,263,579 42,191,948 57,455,527
Total Liabilities 31,533,582 46,695,274 78,228,856 12,002
Deferred Inflows of Resources
Deferred Inflows Related to Pensions 1,108,378 281,549 1,389,927
Total Deferred Inflows of Resources 1,108,378 281,549 1,389,927
Net Position
Net Investment in Capital Assets 12,463,487 18,322,809 30,786,296
Restricted for
Construction 18,337,494 18,337,494
Debt Service 1,652,355 1,652,355
Notes Receivables 42,483 42,483
Law Enforcement 228,578 228,578
Education 445,056 445,056
Industrial Incentives 456,250
Land Development Costs 2,239,699
Permanent Library Funds
Nonexpendable 92,347 92,347
Unrestricted 53,717 22,945,722 22,999,439 4,002,924
Total Net Position $ 33,315,517 $ 41,268,531 $ 74,584,048 $ 6,698,873
14
Functions/Programs
Primary Government
Governmental Activities
General Government
Public Safety
Public Works
Health
Culture and Recreation
Cox Field Airport
Interest on Long-Term Debt
Total Governmental Activities
Business-Type Activities
Water and Sewer
Total Business-Type Activities
Total Primary Government
Component Unit
Economic Development
CITY OF PARIS, TEXAS
Statement of Activities
Year Ended September 30, 2018
Pro~am Revenues
Expenses
$ 3,825,666
12,061,033
6,882,186
2,884,339
866,435
243,666
399,291
27,162,616
14,594,309
14,594,309
$ 41,756,925
$ 853,801
General Revenues
Property Taxes
Sales Taxes
Franchise Taxes
Charges for
Services
$ 214,000
376,322
1,470,248
2,732,908
120,942
134,716
5,049,136
14,168,934
14,168,934
$ 19,218,070
$
Hotel Occupancy Taxes
Unrestricted Investment Earnings
Miscellaneous
Gain (Loss) on Return of Asset
Transfers
Operating
Grants and
Contributions
$
154,497
154,497
$ 154,497
$
Total General Revenues and Transfers
Changes in Net Position
Net Position -Beginning
Prior Period Adjustment
Net Position -Ending
The accompanying notes to the financial statements are an integral part of this statement.
15
Statement 2
Capital
Grants and
Contributions
$
33,170
452,728
36,676
522,574
$ 522,574
$
Net (ExEense) Revenue and Changes in Net Position
Prima!i'. Government Comeonent Unit
Governmental Business-Type Economic
Activities Activities Total DeveloEment
$ (3,611,666) $ $ (3,611,666) $
(11,497,044) (11,497,044)
(4,959,210) (4,959,210)
(151,431) (151,431)
(745,493) (745,493)
(72,274) (72,274)
(399,291) (399,291)
(21,436,409) (21,436,409)
(425,375) (425,375)
(425,375) (425,375)
(21,436,409) (425,375) (21,861,784)
(853,801)
9,170,951 9,170,951
7,317,162 7,317,162 1,466,934
4,315,694 4,315,694
662,263 662,263
426,518 380,393 806,911 19,841
387,306 387,306 154,540
(57,940) (57,940)
610,955 (610,955}
22,832,909 (230,562) 22,602,347 1,641,315
1,396,500 (655,937) 740,563 787,514
36,135,030 41,924,468 78,059,498 5,911,359
(4,216,013) (4,216,013)
$ 33,315,517 $ 41,268,531 $ 74,584,048 $ 6,698,873
16
Statement 2
(Continued)
CITY OF PARIS, TEXAS Statement 3
Balance Sheet -Governmental Funds
September 30, 2018
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Assets
Cash and Cash Equivalents $ 4,504,715 $ 1,827,278 $ $ 493,893 $ 6,825,886
Investments 6,441,408 9,727,213 98,124 16,266,745
Receivables (Net of Allowance
for Uncollectibles) 2,514,858 115,396 23,438 2,653,692
Inventories 418,995 418,995
Due from Other Governments 731,032 731,032
Total Assets $ 14,611,008 $ 1,942,674 $ 9,750,651 $ 592,017 $ 26,896,350
Liabilities, Deferred Inflows, and Fund Balances
Liabilities
Bank Overdraft $ $ $ 783,932 $ $ 783,932
Accounts Payable and Accrued Liabilities 937,942 11,075 121 949,138
Total Liabilities 937,942 795,007 121 1,733,070
Deferred Inflows of Resources
Unavailable Revenue -Property Taxes 530,861 106,512 637,373
Unavailable Revenue -Other 471,459 471,459
Total Deferred Inflows of Resources 1,002,320 106,512 1,108,832
Fund Balances
Nonspendable
Inventory 418,995 418,995
Permanent Library Funds 93,689 93,689
Restricted for
Debt Service 1,836,162 1,836,162
Capital Projects 1,507 8,955,644 8,957,151
Notes
Law Enforcement 199,194 199,194
Public Education 496,852 496,852
Assigned
Library 85,554 85,554
Community Development 213,459 213,459
Unassigned: General Fund 11,753,392 11,753,392
Total Fund Balances 12,670,746 1,836,162 8,955,644 591,896 24,054,448
Total Liabilities, Deferred
Inflows and Fund Balances $ 14,611,008 $ 1,942,674 $ 9,750,651 $ 592,017 $ 26,896,350
Fund Balances -Total Governmental Funds (above) $ 24,054,448
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. (Net of Accumulated Depreciation) 37,741,733
Other long-term assets are not available to pay for current period expenditures and, therefore,
are deferred or not reflected in the funds. 1,108,831
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported in the funds. (17,020,086)
Included in noncurrent liabilities is the recognition of the City's proportionate share of the net pension liability
required by GASB 68 in the amount of $10,196,559, a Deferred Outflow of Resources in the amount of
$1,170,682, and a Deferred Inflow of Resources in the amount of $1,108,378. This amounted to a decrease
in Net Position of$I0,134,255. ( I 0, 134,255)
Included in noncurrent liabilities is the recognition of the City's proportionate share of the net OPEB liability
required by GASB 75 in the amount of$2,583,867, and a Deferred Outflow of Resources in the amount of
$148,713. This amounted to a decrease in Net Position of$2,435,154. (2,435,154)
Net Position of Governmental Activities $ 33,315,517
The accompanying notes to the financial statements are an integral part of this statement.
17
CITY OF PARIS, TEXAS Statement 4
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2018
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Revenues
Taxes
Property $ 7,357,425 $ 1,795,313 $ $ $ 9,152,738
Sales 7,317,162 7,317,162
Franchise 4,315,694 4,315,694
Hotel Occupancy 662,263 662,263
Licenses and Permits 197,920 197,920
Fines and Fees 446,670 49,038 495,708
Use of Money and Property 329,365 33,580 187,720 10,569 561,234
Sanitation 1,470,248 1,470,248
Health 2,614,504 2,614,504
Intergovernmental 677,072 677,072
Other 341,330 5,459 346,789
Total Revenues 25,729,653 1,828,893 187,720 65,066 27,811,332
Expenditures
Current
General Government 1,541,274 43,449 1,584,723
Public Safety 10,884,241 (33,703) 10,850,538
Public Works 5,356,374 5,356,374
Health 2,668,477 1,654 2,670,131
Culture and Recreation 734,826 1,687 736,513
Cox Field 112,562 112,562
Other 1,716,365 1,716,365
Debt Service
Principal 186,690 1,393,992 1,580,682
Interest 447,294 447,294
Bond Issuance Costs
Capital Outlay
General Government 10,100 137,195 147,295
Public Safety 168,163 72,888 241,051
Public Works 612,947 1,830,561 2,443,508
Health 554,083 103,953 658,036
Cox Field 37,275 37,275
Other 42,187 42,187
Total Expenditures 24,625,564 1,841,286 2,071,709 85,975 28,624,534
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,104,089 {12,393} {1,883,989} (20,909) (813,202}
The accompanying notes to the financial statements are an integral part of this statement.
18
CITY OF PARIS, TEXAS Statement 4
Statement of Revenues, Expenditures, and Changes in Fund Balances -(Continued)
Governmental Funds
Year Ended September 30, 2018
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Other Financing Sources (Uses)
General Obligation Bonds Issued 190,000 190,000
Transfers In 124,968 6,200 753,517 109,650 994,335
Transfers Out (383,374) (383,374)
Total Other Financing
Sources (Uses) (258,406) 196,200 753,517 109,650 800,961
Net Changes
in Fund Balances 845,683 183,807 (1,130,472) 88,741 (12,241)
Fund Balances -Beginning 11,622,868 1,652,355 10,086,116 503,155 23,864,494
Increase in Inventory 40,517 40,517
Prior Period Adjustment 161,678 161,678
Fund Balances -Ending $ 12,670,746 $ 1,836,162 $ 8,955,644 $ 591,896 $ 24,054,448
19
CITY OF PARIS, TEXAS
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2018
Amounts reported for governmental activities in the statement of activities (Statement 2) are
different because:
Net change in fund balances -total governmental funds (Statement 4).
Governmental funds reported capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
The net effect of various miscellaneous transactions involving capital assets (i.e., sales and
donations) is to decrease net assets
Contributions of capital assets that do not provide current financial resources are not reported
as revenues in governmental funds.
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in governmental funds.
Accrued interest expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in governmental
funds.
Compensated absences reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
The net change in inventory is a direct adjustment to fund balance in the funds.
Pension expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred.
OPEB expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred.
The issuance of long-term debt ( e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any effect on net position. Also, governmental funds report the effect of premiums,
discounts, and similar items when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. This amount is the net effect of these
differences in the treatment of long-term debt and related items.
Change in net position of governmental activities (Statement 2).
The accompanying notes to the financial statements are an integral part of this statement.
20
$
Statement 5
(12,241)
861,559
(57,940)
154,253
(25,770)
(74,216)
40,517
(671,289)
(120,209)
1,301,836
$ 1,396,500
CITY OF PARIS, TEXAS Statement 6
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
Year Ended September 30, 2018
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Property Taxes $ 7,025,059 $ 7,025,059 $ 7,357,425 $ 332,366
Sales Taxes 7,184,950 7,184,950 7,317,162 132,212
Franchise Taxes 4,216,300 4,216,300 4,315,694 99,394
Hotel Occupancy Taxes 625,000 625,000 662,263 37,263
Licenses and Permits 134,625 134,625 197,920 63,295
Fines and Fees 473,280 473,280 446,670 (26,610)
Investment Earnings 152,458 152,458 329,365 176,907
Sanitation 1,510,201 1,510,201 1,470,248 (39,953)
Health 2,562,000 2,562,000 2,614,504 52,504
Intergovernmental Revenues 495,596 495,596 677,072 181,476
Other 313,500 313,500 341,330 27,830
Total Revenues 24,692,969 24,692,969 25,729,653 1,036,684
EXPENDITURES
General Government
Council 81,530 106,530 105,464 1,066
Manager 392,302 392,302 398,881 (6,579)
Attorney 347,968 347,968 285,179 62,789
Municipal Court 244,555 244,555 231,464 13,091
Clerk 149,045 149,045 125,943 23,102
Finance 442,839 442,839 404,443 38,396
Total General Government 1,658,239 1,683,239 1,551,374 131,865
Public Safety
Police 6,552,255 6,484,255 6,500,379 (16,124)
Fire 4,916,871 4,916,871 4,738,715 178,156
Total Public Safety 11,469,126 11,401,126 11,239,094 162,032
Public Works
Community Development 658,388 693,388 517,647 175,741
Engineering 505,066 505,066 655,180 (150,114)
Public Works 231,598 231,598 231,270 328
Parks and Recreation 1,233,829 1,233,829 1,215,390 18,439
Sanitation 1,150,526 1,150,526 1,032,495 118,031
Streets and Highways 1,579,583 1,579,583 1,488,880 90,703
Traffic and Public Lighting 564,620 564,620 514,152 50,468
Garage 361,500 361,500 314,307 47,193
Total Public Works 6,285,110 6,320,110 5,969,321 350,789
The accompanying notes to the financial statements are an integral part of this statement.
21
CITY OF PARIS, TEXAS Statement 6
Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued)
Budget and Actual
General Fund
Year Ended September 30, 2018
Budgeted Amounts Variance with
Original Final Actual Final Budget
EXPENDITURES (Continued)
Health 2,685,200 3,120,200 3,222,560 (102,360)
Culture and Recreation
Paris Band 23,050 23,050 21,581 1,469
Library Services 733,179 733,179 713,245 19,934
Total Culture and Recreation 756,229 756,229 734,826 21,403
Other
Cox Field Airport 117,650 157,650 149,837 7,813
Other 1,720,615 1,750,615 1,758,552 (7,937)
Total Other 1,838,265 1,908,265 1,908,389 (124)
Total Expenditures 24,692,169 25,189,169 24,625,564 563,605
Excess (Deficiency) of Revenues
Over Expenditures 800 (496,200) 1,104,089 1,600,289
Other Financing Sources (Uses)
General Obligation Bonds Issued
Transfers In 124,968 124,968
Transfers Out (383,374) (383,374)
Total Other Financing
Sources (Uses) (258,406) (258,406)
Net Changes in Fund Balance 800 (496,200) 845,683 1,341,883
Fund Balance -Beginning 11,622,868 11,622,868 11,622,868
Increase in Inventory 40,517 40,517
Prior Period Adjustment 161,678 161,678
Fund Balance -Ending $ 11,623,668 $ 11,126,668 $ 12,670,746 $ 1,544,078
22
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Funds
September 30, 2018 and 2017
Water and Sewer
Enterprise Fund
Current Year
ASSETS
Current Assets
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Total Cash and Cash Equivalents
Accounts Receivable, Net
Accrued Interest Receivable
Inventories
Total Current Assets
Non current Assets
Investments
Construction
Reserve and Contingency
Unrestricted
Total Investments
Water Rights (Net of Accumulated Amortization)
Capital Assets
Land
Construction in Progress
Plant, Pumps, and Motors
Distribution System
Collection System
Maintenance Equipment and Vehicles
Furniture and Equipment
Less Accumulated Depreciation
Total Capital Assets (Net of Accumulated Depreciation)
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions
Deferred Outflows Related to OPEB
Total Deferred Outflows
$ 3,740,047
9,141,708
12,881,755
2,118,610
55,427
225,262
15,281,054
6,716,680
3,448,867
476,598
10,642,145
3,313,818
339,620
27,474,441
31,414,324
46,869,832
25,280,843
4,131,891
2,054,372
(78,823,325)
58,741,998
72,697,961
87,979,015
239,151
13,468
252,619
The accompanying notes to the financial statements are an integral part of this statement.
23
Statement 7
Water and Sewer
Enterprise Fund
Prior Year
$ 5,914,271
4,141,285
10,055,556
1,910,568
20,044
224,070
12,210,238
18,577,936
3,575,323
405,746
22,559,005
3,349,450
339,620
18,760,776
31,138,604
46,854,889
25,227,311
3,970,888
2,048,155
(75,816,413)
52,523,830
78,432,285
90,642,523
714,697
3,332
718,029
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Funds
September 30, 2018 and 2017
Water and Sewer
Enterprise Fund
Current Year
LIABILITIES
Current Liabilities
Accounts Payable and Accrued Liabilities
Accrued Interest Payable
Unearned Revenue
Customers' Deposits
Bonds Payable -Current Portion
Accrued Compensated Absences -Current Portion
Total Current Liabilities
Noncurrent Liabilities
Bonds Payable -Noncurrent Portion
Accrued Compensated Absences -Noncurrent Portion
Net Pension Liabilities
Net OPEB Liabilities
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions
NET POSITION
Net Investment in Capital Assets
Unrestricted
Total Net Position
482,857
510,426
139,812
915,167
2,266,857
21,580
4,336,699
41,997,732
194,216
(13,720)
166,627
42,344,855
46,681,554
281,549
18,322,809
22,945,722
$ 4122682531
24
Statement 7
(Continued)
Water and Sewer
Enterprise Fund
Prior Year
1,074,196
512,912
696,358
897,127
2,110,584
23,509
5,314,686
43,064,589
211,583
645,172
145,545
44,066,889
49,381,575
54,509
24,198,822
17,725,646
$ 4I2924A68
CITY OF PARIS, TEXAS Statement 8
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Years Ended September 30, 2018 and 2017
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Operating Revenues
Charges for Sales and Services
Water Sales and Taps $ 7,916,462 $ 7,680,906
Sewer Charges and Taps 5,788,319 5,649,035
Sanitation Billing Fees 70,361 75,698
Service Charges 154,313 154,367
Industrial Surcharges 33,927 26,520
Miscellaneous 205,552 195,222
Total Operating Revenues 14,168,934 13,781,748
Operating Expenses
Personnel 3,364,353 3,462,204
Supplies 1,180,374 975,174
Contractual 3,710,765 3,739,186
Maintenance 953,593 1,142,003
Sundry Charges 575,890 537,474
Other 137,113 46,764
Depreciation 3,006,912 3,212,642
Total Operating Expenses 12,929,000 13,115,447
Operating Income 1,239,934 666,301
Nonoperating Revenues (Expenses)
Investment Earnings 380,393 315,872
Interest Expense -Revenue and General Obligation Bonds (1,738,171) (992,323)
Bond Issue Costs (27,090) (90,955)
Amortization of Water Rights (35,632) (35,632)
Amortization of Bond Premium 135,584 138,497
Net Nonoperating Revenues (Expenses) ( 1,284,916) (664,541)
Income Before Contributions, Other Revenue, and Transfers (44,982) 1,760
Capital Contributions, Other Revenue, and Transfers
Intergovernmental Revenue
Transfers In 5,776,146
Transfers Out (6,387, IO I) (382,794)
Total Capital Contributions, Other Revenue, and Transfers (610,955) (382,794)
Changes in Net Position (655,937) (381,034)
Total Net Position -Beginning 41,924,468 47,480,201
Prior Period Adjustment (5,174,699)
Total Net Position -Ending $ 41,2682531 $ 41,924,468
The accompanying notes to the financial statements are an integral part of this statement.
25
CITY OF PARIS, TEXAS
Statement of Cash Flows
Proprietary Funds
Years Ended September 30, 2018 and 2017
Water and Sewer
Enterprise Fund
Current Year
Cash Flows from Operating Activities
Receipts from Customers and Users $ 13,630,428
Payments to Suppliers, Contractors, and Service Providers (7,146,831)
Payments to Employees for Salaries and Benefits (3,540,486)
Net Cash Provided by Operating Activities 2,943,111
Cash Flows from Noncapital Financing Activities
Transfers In 5,776,146
Transfers Out (6,387,101)
Net Cash Provided (Used) by Noncapital Financing Activities (610,955)
Cash Flows from Capital and Related Financing Activities
Proceeds from General Obligation Bonds 1,200,000
Purchases of Capital Assets {9,225,080)
Principal Paid on Bonds (1,975,000)
Contributions from Other Governments
Interest Paid on Long-Term Debt (1,740,657)
Premium Received on Bonds Issued
Bond Origination Fees (27,090)
Net Cash (Used) by Capital and Related Financing Activities (] 1,767,827)
Cash Flows from Investing Activities
Interest on Investments 345,010
Purchases of Investment Securities (7,371,637)
Maturities of Investments 19,288,497
Net Cash (Used) by Investing Activities 12,261,870
Net Increase in Cash and Cash Equivalents 2,826,199
Cash and Cash Equivalents -Beginning 10,055,556
Cash and Cash Equivalents -Ending $ 12,881,755
The accompanying notes to the financial statements are an integral part of this statement.
26
Statement 9
Water and Sewer
Enterprise Fund
Prior Year
$ 14,819,404
(6,671,827)
(3,262,876)
4,884,701
3,352,516
(3,735,310)
(382,794)
8,780,000
(11,127,111)
{1,575,000)
(928,817)
110,955
(90,955)
(4,830,928)
393,894
(46,533,008)
45,478,810
(660,304)
(989,325)
11,044,881
$ 10,055,556
CITY OF PARIS, TEXAS Statement 9
Statement of Cash Flows (Continued)
Proprietary Funds
Years Ended September 30, 2018 and 2017
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating Income $ 1,239,934 $ 666,301
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used in) Operating Activities
Depreciation 3,006,912 3,212,642
Decrease (Increase) in Accounts Receivable (208,042) 317,070
Decrease (Increase) in Inventory (1,192) 34,483
Decrease (Increase) in Deferred Outflows of Resources 465,410 193,287
Increase (Decrease) in Accounts Payable and Accrued Liabilities (591,339) (265,709)
Increase (Decrease) in Unearned Revenue (556,546) 696,358
Increase (Decrease) in Customers' Deposits 18,040 24,228
Increase (Decrease) in Accrued Compensated Absences (19,296) 14,935
Increase (Decrease) in Net Pension Liabilities (658,892) (21,391)
Increase (Decrease) in Net OPEB Liabilities 21,082
Increase (Decrease) in Deferred Inflows of Resources 227,040 12,497
Total Adjustments 1,703,177 4,218,400
Net Cash Provided by Operating Activities $ 2,943,111 $ 4,884,701
Noncash Investing, Capital, and Financing Activities
Increase (Decrease) in Fair Value of Investments $ 139,221 $ 78,021
27
CITY OF PARIS, TEXAS
Notes to Financial Statements
September 30, 2018
I. Summary of Significant Accounting Policies
A. Description of Government-Wide Financial Statements
The government-wide financial statements (e.g., the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and it's component unit. All
fiduciary activities are reported only in the fund financial statements. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support. Likewise, the primary government is reported separately
from the legally separate component unit for which the primary government is financially accountable.
B. Reporting Entity
The City of Paris, Texas (the City), operates under a council-manager form of government with the mayor and
six council members being elected. The accompanying financial statements present the government and its
component unit. The discretely presented component unit is reported in a separate column in the government-
wide financial statements (see note below for a description) to emphasize that it is legally separate from the
government.
Discretely Presented Component Unit: The Paris Economic Development Corporation (PEDC) is a
governmental nonprofit 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 by
promoting, assisting, and enhancing economic development activities for the City as provided by the
Development Corporation Act of 1979. The business and affairs are managed by a five-member board of
directors appointed by the governing body of the City. Complete financial statements for PEDC may be
obtained at its administrative office at 1125 Bonham Street, Paris, Texas 75460.
C. Basis of Presentation -Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental column incorporates data from governmental funds while business-type activities incorporate
data from the government's enterprice funds. Separate financial statements are provided for governmental funds
and proprietary funds. The statement of activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment.
As discussed earlier, the government has one discretely presented component unit, PEDC. PEDC is shown in a
separate column in the government-wide financial statements.
D. Basis of Presentation-Fund Financial Statements
The fund financial statements provide information about the government's funds, including its discretely
presented component unit. Separate statements for each fund category -governmental and proprietary -are
presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each
displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as
nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the
fund financial statements.
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City. It accounts for and reports all financial
resources not accounted for in another fund.
28
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
D. Basis of Presentation -Fund Financial Statements (Continued)
The Debt Service Fund accounts for and reports financial resources that are restricted, committed, or
assigned to expenditures for principal and interest.
The Capital Projects Fund accounts for and reports financial resources that are restricted, committed, or
assigned to expenditures for capital outlay.
The City reports nonmajor funds as Other Governmental Funds which include Special Revenue Funds and
a Permanent Fund as follows:
The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources
that are restricted or committed to expenditures for specific purposes other than for debt service or
capital projects.
The Permanent Fund is used to account for and reports resources that are restricted to the extent that
only earnings and not principal may be used.
The City reports the following enterprise funds as one major fund:
The Water Fund accounts for the water distribution system as well as the billings and collections for that
service.
The Sewer Fund accounts for the sewer system as well as the collection activities for that service.
During the course of operations, the City has activity between funds for various purposes. Any residual balances
outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these
balances are reported in fund financial statements, certain eliminations are made in the preparation of the
government-wide financial statements. Balances between the funds included in governmental activities ( e.g., the
governmental and internal service funds) are eliminated so that only the net amount is included as internal
balances in the governmental activities column. Similarly, balances between the funds included in business-type
activities ( e.g., the enterprise fund) are eliminated so that only the net amount is included as internal balances in
the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In the fund
financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund
financial statements, certain eliminations are made in the preparation of the government-wide financial
statements. Transfers between the funds included in governmental activities are eliminated so that only the net
amount is included as transfers in the governmental activities column. Similarly, balances between the funds
included in business-type activities are eliminated so that only the net amount is included as transfers in the
business-type activities column.
E. 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 transactions or events for
recognition in the financial statements.
29
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
E. Measurement Focus and Basis of Accounting (Continued)
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year
for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and accounting
entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended
purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.
The governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government
considers revenues to be available if they are collected within sixty days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due. General capital asset acquisitions are reported as expenditures in
governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other
financing sources.
Property taxes, franchise taxes, licenses, interest, and special assessments are susceptible to accrual. Sales taxes
are recognized as revenue in the period when the exchange transaction on which the tax is imposed occurs.
Other receipts and taxes become measurable and available when cash is received by the City and are recognized
as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the
susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The proprietary funds are accounted for using the economic resources measurement focus and use the accrual
basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. The proprietary fund is used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the governing body has decided that the
determination of revenues earned, costs incurred, and/or net income is necessary for management
accountability.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles for
all governmental funds except the capital projects fund, proprietary funds, and library trust fund. The
budget for the capital projects fund is legally adopted for specific projects and may exceed one year.
Formal budgetary integration is not employed for the proprietary funds. The City adopts an annual,
informal budget as a financial plan for all proprietary funds. The library trust fund includes nonbudgeted
financial activities, which are not subject to an appropriated budget and the appropriation process or to any
legally authorized nonappropriated budget review and approval process. The community development
block grant fund is not annually appropriated. The City has no special revenue funds which are reported as
major funds.
30
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
F. Budgetary Information (Continued)
I. Budgetary Basis of Accounting (Continued)
At the close of each fiscal year, any unencumbered appropriation balance (appropriations including prior
year encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated
fund balance.
At least thirty days prior to the beginning of each fiscal year, the City Manager submits to the City Council
a proposed budget for the fiscal year beginning on the following October 1. The operating budget,
which represents the financial plan for the ensuing fiscal year, includes proposed expenditures and the
means of financing them. Public hearings are conducted at which all interested persons' comments
concerning the budget are heard.
The budget for the next fiscal year is legally enacted by the City Council through passage of an ordinance
not later than the twenty-seventh day of the last month of the fiscal year. If the City Council does not enact
the budget within this time period, then the budget as submitted by the City Manager becomes the legally
authorized budget.
2. Excess of Expenditures Over Appropriations
For the year ended September 30, 2018, expenditures may not legally exceed appropriations at the
department level for each legally adopted annual operating budget. The City Manager may, without
Council approval, transfer appropriation balances from one expenditure account to another within a
department or agency of the City. The City Council, however, must approve any transfer or unencumbered
appropriation balances or portions thereof from one department or agency to another. During the year
ended September 30, 2018, the City Council approved a transfer of $565,000 from various departments to
other departmental line items. Expenditures exceeded appropriations in the following departments:
Manager $6,579, Police $16,124, Engineering $150,114, Health $102,360, and Other $7,937.
G. Assets, Liabilities, and Equity
I. 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 date of acquisition.
2. Investments
Investments are reported in the accompanying balance sheet at fair value with changes in fair value being
reported as part of investment income. The City holds investments in an external investment pool, Texas
Local Government Investment Cooperative (LOGIC), managed by Southwest Securities Group, Inc .. 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. Participation in
external investment pools was voluntary.
31
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
2. Investments (Continued)
Statutes authorize the City and 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. The
City did not engage in repurchase or reverse repurchase agreement transactions during the current year.
In accordance with generally accepted accounting principles, inputs to valuation techniques used to
measure fair value are prioritized according to a fair value hierarchy, as follows:
Level I -Fair values are based on unadjusted quoted prices in active markets for identical assets or
liabilities.
Level II -Fair values are based on generally indirect information such as quoted prices for similar
assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in
markets that are not active.
Level III -Fair values are based on inputs other than quoted prices included within Level I that are
unobservable and include the City's own assumptions about pricing.
This fair value hierarchy gives the highest priority to Level I inputs and the lowest priority to Level III
inputs. The City's investments are classified in Level II of the hierarchy.
3. Inventories
Inventories are valued at cost using the first-in, first-out method. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased. An equivalent amount is reported as
nonspendable fund balance in the governmental funds.
4. Restricted Assets
Prior to the issuance of General Obligation Refunding Bonds, Series 20 I 0, the City's Water and Sewer
Revenue Bonds and Certificates of Obligation covenants required certain restrictions of net assets. After the
refunding occurred, these legal restrictions no longer existed. In order to safeguard the financial integrity of
the water and sewer system, the City Council approved a resolution establishing and maintaining funds
comparable to those required by the refunded bonds.
5. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items) are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two
years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are reported at acquisition value at the date of donation. Infrastructure acquired
prior to the implementation of GASB 34 are included in the financial statements.
32
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
5. Capital Assets (Continued)
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as an expense
during the period incurred.
Property, plant, and equipment of the primary government, as well as the component unit, is depreciated
using the straight-line method over the following estimated useful lives:
Buildings and Improvements
Furniture, Fixtures and Equipment
Vehicles
Works of Art
Public Domain Infrastructure
System Infrastructure
6. Capital Leases
20-40 years
5-10 years
5 years
50 years
25-45 years
25-30 years
Assets held under capital leases are recorded at the lower of the net present value of the minimum lease
payments or the fair value of the leased asset at the inception of the lease. Amortiz.ation expense is computed
using the straight-line method over the useful lives of the assets and is included in depreciation expense.
7. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents
a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow
of resources (expense/expenditure) until then. The City reports a deferred outflow of resources related to
pensions. See footnote IV. F. for further information.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The government has a deferred inflow of resources related to pensions.
See IV.F. for further information. In addition, the government has one type of item, which arises only
under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the
item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental
funds report unavailable revenues from the following sources: property taxes, EMS, municipal court, and
street assessments. These amounts are deferred and recognized as an inflow of resources in the period that
the amount becomes available.
33
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
8. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted ( e.g., restricted
bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted
-net position and unrestricted -net position in the government-wide and proprietary funds financial
statements, a flow assumption must be made about the order in which the resources are considered to be
applied.
It is the government's policy to consider restricted -net position to have been depleted before unrestricted
-net position is applied.
9. Fund Balance Flow Assumption
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 government'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.
10. 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. The government 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 government's highest level of decision-making authority. The
governing council is the highest level of decision-making authority for the government that can, by
adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the
limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of
another ordinance) to remove or revise the limitation. The City does not have any restricted fund balances
by enabling legislation.
Amounts in the assigned fund balance classification are intended to be used by the government for specific
purposes but do not meet the criteria to be classified as committed. The council allows the finance director
to assign the fund balance, and may also assign fund balance as it does when appropriating fund balance to
cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget.
Unlike commitments, assignments generally only exist temporarily. In other words, an additional action
does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an
additional action is essential to either remove or revise a commitment.
34
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
I. Summary of Significant Accounting Policies (Continued)
H. Revenues and Expenditures/ Expenses
1. Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not properly included among program revenues are reported
instead as general revenues.
2. Property Taxes
The City's property taxes are levied on October 1 and are due no later than January 31 of the following
year. Taxes become delinquent February I, after which time penalties and interest and, if not paid by July,
attorney's collection fees are added. A tax lien attaches to property (real and personal) on January 1 of each
year to secure the payment of all taxes, penalties, and interest ultimately imposed on the property. The lien
is effective until all such amounts are paid.
3. Compensated Absences
Vacation and sick leave benefits are accumulated by City employees in accordance with guidelines
suggested in the City's personnel policies.
4. Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the water and sewer enterprise fund are charges to customers for sales and services. The water and sewer
fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of
connecting new customers to the system. Operating expenses for enterprise funds include the cost of
sales and service, administrative expenses, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
I. Recent Accounting Pronouncements Adopted
GASB Statement No. 75, Accounting for Financial Reporting for Post-Employment Benefits Other Than
Pensions, relates to the governmental employers that provide post-employment benefits other than pensions
and is effective for fiscal years beginning after June 15, 2017. This statement requires the recognition of the
City's proportionate share of fiduciary net position related to OPEB, including related deferred outflows or
resources and deferred inflows of resources related to OPEB, OPEB expense, and information about assets,
liabilities, and additions to/deductions from fiduciary net position as related to OPEB.
In June 2018, the Governmental Accounting Standards Board issued Statement No. 89, Accounting for
Interest Cost Incurred Before the End of a Construction Period. This update requires that interest cost
incurred before the end of a construction period be recognized as an expense in the period in which the cost
is incurred. The statement is effective for reporting periods beginning after December 15, 2019. The City
elected to early adopt the new requirement as of Setember 30, 2018, as permitted by the statement.
35
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
II. Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-
Wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds
and net position -governmental activities as reported in the government-wide statement of net position. One
element of that reconciliation explains that "capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds." The details of this $37,741,733 are as fo Bows:
Land
Construction in Progress
Buildings
Less: Accumulated Depreciation -Buildings
Improvements Other Than Buildings
Less: Accumulated Depreciation -Improvements Other Than Buildings
Machinery and Equipment
Less: Accumulated Depreciation -Machinery and Equipment
Infrastructure
Less: Accumulated Depreciation -Infrastructure
Net Adjustment to Increase Fund Balance -Total Governmental Funds
to Arrive at Net Position -Governmental Activities
$ 5,927,478
1,166,700
19,665,316
(9,104,015)
6,552,117
(3,345,583)
20,992,957
(17,044,869)
45,175,454
{32,243,822)
$ 37 741 733
Another element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due
and payable in the current period and, therefore, are not reported in the funds." The details of this $17,020,086
difference are as follows:
Bonds Payable
Plus: Premiums on Bonds Payable (to be Amortized
Over the Life of the Debt)
Capital Lease
Accrued Interest
Compensated Absences
Landfill Post-Closure Care Costs
Net Adjustment to Reduce Fund Balance -Total Governmental Funds
to Arrive at Net Position -Governmental Activities
$ 14,150,000
156,032
1,253,181
153,298
1,157,575
150,000
$ 17 020 086
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures,
and Changes in Fund Balances and the Government-Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances -total governmental funds and changes in net position of
governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense." The details of this $861,559 difference are as follows:
36
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
II. Reconciliation of Government-Wide and Fund Financial Statements (Continued)
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures,
and Changes in Fund Balances and the Government-Wide Statement of Activities (Continued)
Capital Outlay
Depreciation Expense
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Position
Of Governmental Activities
$ 3,551,918
{2,690,359)
$ 861 559
Another element of that reconciliation states that "the issuance of long-term debt ( e.g. bonds, leases) provides
current financial resources to governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither transaction, however, has any effect
on net position. Also, governmental funds report the premiums, discounts, and similar items when debt is first
issued, whereas these amounts are deferred and amortized in the statement of activities." The details of
this $1,301,836 difference are as follows:
Issuance of General Obligation Bonds
Amortization of Premium
Principal Repayments
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Position
of Governmental Activities
III. Stewardship, Compliance, and Accountability
Violations of Legal or Contractual Provisions
$ (190,000)
20,472
1,471,364
$ 1,301,836
Note I.F.2, on the Excess of Expenditures Over Appropriations, describes a budgetary violation that occurred
for the year ended September 3 0, 2018.
IV. Detailed Notes on All Activities and Funds
A. Cash and Cash Equivalents
Custodial Credit Risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be
returned or the City will not be able to recover collateral securities in the possession of an outside party. The
City'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 (FDIC) insurance. Collateral agreements must be
approved prior to deposit of funds as provided by law. The City was not exposed to custodial credit risk since
deposits are insured or collateralized with securities held by the pledging financial institution's agent in the
name of the City.
37
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
B. Investments
As of September 30, 2018, the City had the following investments:
TyPe of Security Fair Value
Primary Government
Federal Home Loan Mortgage Corporation $ 22,527
Federal National Mortgage Association 5,150,205
Government National Mortgage Association 4,996
Certificates of Deposit 93,128
U.S. Treasury Bills OID 12,960,740
U.S. Treasury Notes 6,293,385
LOGIC Investment Pool 2,383,908
Paris Economic Development Corporation
Texas Class Investment Pool 581,375
LoneStar Bond Investment Pool 434
Totals $ 27,490,698
Weighted
Average
Credit Maturity
Rating (Years)
AA+ 1.92
AA+ 7.06
1.00
Not Rated .58
.08
.17
AAAm
AAAm
AAAm
Interest rate risk is the policy of the City to invest public funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of the entity and
conforming to all state and local statutes governing the investment of public funds. The City's investment
portfolio is designed with the objective of attaining an acceptable rate of return throughout budgetary and
economic cycles and commensurate with the City's investment risk constraints and the cash flow characteristics
of the portfolio. The City's investment strategy is active. Given this strategy, the basis used by the Finance
Director to determine whether market yields are being achieved shall be the Average Fed Funds rate. No other
formal policy related to interest rate risk is included in the City's adopted investment policy.
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. The City and PEDC reduce the risk of issuer default by limiting
investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas
Government Code.
Concentration credit risk is the risk of loss attributed to the magnitude of a government's investment in a single
issuer. With the exception of obligations of the United States or its agencies and authorized pools, no more than
50% of the City's total investment portfolio will be invested in a single financial institution with the exception
of its local depository. PEDC's investment balance consist ofonly externally pooled accounts.
38
Weighted
Average
Maturity
(Days)
31
78
28
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
B. Investments (Continued)
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. In accordance with the City's deposit and investment policy, all deposits
placed at a financial institution shall be insured or collateralized with applicable State law.
Foreign currency risk is the risk that an investment denominated in the currency of a foreign country could
reduce in value as a result of changes in currency exchange rates. At September 30, 2018, the City was not
exposed to foreign currency risk.
C. Receivables
Amounts are aggregated into a single accounts receivable (net of allowance for uncollectibles) line for certain
funds and aggregated columns. Below is the detail of receivables in the aggregate, including the applicable
allowances for uncollectible accounts:
Receivables:
Interest
Property Taxes
Sales Taxes
Accounts
Notes
Street Assessments
Fines
EMS
Gross Receivables
Less: Allowance for
Uncollectibles
Net Total Receivables
General
$ 84
946,518
1,249,885
172,398
26,473
198,107
2,393,366
4,986,831
{2,471,973)
$ 2,514,858
Debt Capital
Service Projects
$ $ 23,438
153,862
153,862 23,438
(38,466)
$ 115,396 $ 23,438
$
Enterprise
55,427
2,222,330
2,277,757
(103,720)
$ 2,174,037
Net receivable balances not expected to be collected within one year are Property Taxes -$560,208, Fines -
$49,054, EMS -$100,000, and Street Assessments -$26,473.
At year end, PEDC had a receivable for sales tax of$250,037. The balance is expected to be collected within one
year.
39
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets
Capital assets activity for the year ended September 30, 2018, follows:
Balance
9/30/17 Additions
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 5,927,478 $
Construction in Progress 250,885 2,271,619
Total Capital Assets,
Not Being Depreciated 6,178,363 2,271,619
Capital Assets, Being Depreciated
Buildings 19,416,397 248,919
Improvements Other Than Buildings 5,738,565 813,552
Machinery and Equipment 20,874,718 645,259
Infastructure 44,220,961 954,493
Total Capital Assets,
Being Depreciated 90,250,641 2,662,223
Less Accumulated Depreciation for
Buildings 8,662,688 441,327
Improvements Other Than Buildings 3,130,507 215,076
Machinery and Equipment 16,511,360 976,472
Infrastructure 31,186,338 1,057,484
Total Accumulated Depreciation 59,490,893 2,690,359
Total Capital Assets,
Being Depreciated, Net 30,759,748 (28,136)
Governmental Activities,
Capital Assets, Net $ 36,938,111 $ 2,243,483
40
Balance
Retirements 9/30/18
$ $ 5,927,478
1,355,804 1,166,700
1,355,804 7,094,178
19,665,316
6,552,117
527,020 20,992,957
45,175,454
527,020 92,385,844
9,104,015
3,345,583
442,963 17,044,869
32,243,822
442,963 61,738,289
84,057 30,647,555
$ 1,439,861 $37,741,733
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets (Continued)
Balance Balance
9/30/17 Additions Retirements 9/30/18
Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 339,620 $ $ $ 339,620
Construction in Progress 18,760,774 8,713,667 27,474,441
Total Capital Assets,
Not Being Depreciated 19,100,394 8,713,667 27,814,061
Capital Assets, Being Depreciated
Plant, Pumps, and Motors 31,138,604 275,720 31,414,324
Distribution System 46,854,893 14,939 46,869,832
Collection System 25,227,311 53,532 25,280,843
Maintenance Equipment and Vehicles 3,970,888 161,003 4,131,891
Furniture and Equipment 2,048,155 6,217 2,054,372
Total Capital Assets,
Being Depreciated I 09,239,851 511,411 109,751,262
Less Accumulated Depreciation for
Plant, Pumps, and Motors 24,515,007 611,324 25,126,331
Distribution System 27,328,717 1,423,675 28,752,392
Collection System 19,450,736 702,887 20,153,623
Maintenance Equipment and Vehicles 3,086,696 206,504 3,293,200
Furniture and Equipment 1,435,257 62,522 1,497,779
Total Accumulated Depreciation 75,816,413 3,006,912 78,823,325
Total Capital Assets,
Being Depreciated, Net 33,423,438 (2,495,50 l) 30,927,937
Business-Type Activities,
Capital Assets, Net 52,523,832 6,218,166 58,741,998
Intangible Asset-Water Rights 4,113,119 4,113,119
Less Accumulated Amortization 763,669 35,632 799,301
Total Intangible Asset -
Water Rights, Net 3,349,450 (35,632) 3,313,818
Business-Type Activities,
Capital and Intangible Assets, Net $55,873,282 $ 6,182,534 $ $62,055,816
41
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General Government $ 113,056
Public Safety 693,311
Public Works, Including Depreciation of General Infrastructure Assets 1,470,377
Health 163,343
Culture and Recreation 119,168
Cox Field Airport 1312104
Total Depreciation Expense -Governmental Activities $ 2 690 359
Business-Type Activities
Water and Sewer $ 320062912
Total Depreciation Expense -Business-Type Activities $ 3 006 912
E. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with Internal Revenue
Code Section 457.
F. Employee Retirement Systems and Plans
The City maintains a nontraditional defined benefit retirement plan for all full-time employees except for
firefighters and a single-employer, defined benefit plan for firefighters.
1. Texas Municipal Retirement System
Plan Description
The City of Paris participates as one of 883 plans in the nontraditional, joint contributory, hybrid defined
benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8,
Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of the
System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the
Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit
pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. The plan financial
statements are prepared using the accrual basis of accounting. TMRS issues a publicly available
comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
42
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
I. Texas Municipal Retirement System (Continued)
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payments options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member's deposits and interest.
Upon retirement, benefits depend on the sum of the employee's contributions, with interest, and the City-
financed monetary credits, with interest. City-financed monetary credits are composed of three sources:
prior service credits, current service credits, and updated service credits. At the inception of the plan, the
City granted monetary credits for service rendered before the plan began (or prior service credits) of a
theoretical amount at least equal to two times what would have been contributed by the employee, with
interest, prior to establishment of the plan. Monetary credits for service since the plan began ( or current
service credits) are 150% of the employee's accumulated contributions. In addition, the city can grant,
either annually or on an annually repeating basis, another type of monetary credit referred to as Updated
Service Credit. This monetary credit is determined by hypothetically recomputing the member's account
balance by assuming that the current member deposit rate of the City has always been in effect. The
computation also assumes that the member's salary has always been the member's average salary-using a
salary calculation based on the 36-month period ending a year before the effective date of caJculation. This
hypothetical account balance is increased by 3% each year, not the actual interest credited to member
accounts in previous years, and increased by the City match currently in effect. The resulting sum is then
compared to the member's actual account balance increased by the actual City match and actual interest
credited. If the hypothetical calculation exceeds the actual calculation, the member is granted a monetary
credit ( or Updated Service Credit) equal to the difference between the hypothetical calculation and the
actual calculation times the percentage adopted. At retirement, the benefit is calculated as if the sum of
the employee's contributions, with interest, and the City-financed monetary credits, with interest, were used
to purchase an annuity.
The plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing TMRS. Plan provisions for the City were as follows:
Employee Deposits Rate
Matching Ratio (City to Employee)
A Member is Vested After
Service Retirement Eligibility (Expressed
As Age/Years of Service)
Updated Service Credit
Annuity Increase to (Retirees)
43
Plan Year2017
6%
2 to 1
5 Years
60/5, 0/20
0%
0% of CPI
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Employees Covered by Benefit Terms.
At the December 31, 2017, valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive Employees or Beneficiaries Currently Receiving Benefits
Inactive Employees Entitled to but not yet Receiving Benefits
Active employees
Total
Contributions
204
130
260
594
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of an employee's gross earnings, and
the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the
City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the
actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the
estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 6% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 6.97% and 6.78% in calendar years 2017 and 2018, respectively. The
City's contributions to TMRS for the year ended September 30, 2018, were $825,691 and were equal to the
required contributions.
Net Pension Liability
The City's Net Pension Liability was measured as of December 31, 2017, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2017, actuarial valuation was determined using the
following actuarial assumptions:
Inflation
Overall payroll growth
Investment Rate of Return
2.5% per year
3 .0% per year
6.75%, net of pension plan investment expense, including inflation
44
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
I. Texas Municipal Retirement System (Continued)
Actuarial Assumptions (Continued)
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male
rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the
gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar adjustments are used with
male rates multiplied by I 09% and female rates multiplied by 103% with a 3-year set-forward for both
males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for
younger members who become disabled. The rates are projected on a fully generational basis by scale BB
to account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted in
2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement mortality assumption
for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience
Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these
changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial
cost method and a one-time change to the amortization policy. Plan assets are managed on a total return
basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy
the short-term and long-term funding needs ofTMRS.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in
regard to the allocation of invested assets is established and may be amended by the TMRS Board of
Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as
well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return ( expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighing the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The target allocation and
best estimates of arithmetic real rates of return for each major asset class are summarized in the following
table:
Asset Class
Domestic Equity
International Equity
Core Fixed Income
Non-Core Fixed Income
Real Return
Real Estate
Absolute Return
Private Equity
Total
Target Allocation
17.5%
17.5
10.0
20.0
10.0
10.0
10.0
5.0
100.0%
45
Long-Term Expected Real
Rate of Return (Arithmetic)
4.55%
6.35
1.00
3.90
3.80
4.50
3.75
7.50
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the Total Pension Liability.
Net Pension Liability and Changes in the Pension Liability
Increase (Decrease)
Plan Net Pension
Total Pension Fiduciary Liability
Liability Net Position (Asset)
(a) (b) {a}-~2
Balance at 12/31/2016 $ 59,510,831 $55,580,270 $ 3,930,561
Changes for the year:
Service Cost 1,192,255 I, 192,255
Interest 3,952,930 3,952,930
Change of Benefit Terms
Difference Between Expected and Actual Experience 19,208 19,208
Changes of Assumptions
Contributions -Employer 817,914 (817,914)
Contributions -Employee 704,087 (704,087)
Net Investment Income 7,698,497 (7,698,497)
Benefit Payments, Including Refunds of Employee
Contributions (3,090,075) (3,090,075)
Administrative Expense (39,921) 39,921
Other Changes {2,023) 2,023
Net Changes 2,074,318 6,088,479 (4,014,161}
Balance at 12/3 1/2017 $61,585,149 $61,668,749 $ (83,600)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6. 7 5%, as
well as what the City's net pension liability (asset) would have been if it were calculated using a discount
rate that is I-percentage-point lower (5.75%) or I-percentage-point higher (7.75%) than the current rate:
46
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
City's Net Pension Liability (Asset)
1 % Decrease in
Discount Rate
5.75%
$7,642,990
Pension Plan Fiduciary Net Position
Discount Rate
6.75%
$(83,600)
1 % Increase in
Discount Rate
7.75%
$(6,524,627)
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2018, the City recognized pension expense of $1,091,883.
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference Between Expected and Actual Economic Experience
(Net of Current Year Amortization) $ 14,245 $ 157,867
Changes in Actuarial Assumptions 424,704
Differences Between Projected and Actual Investment Earnings
(Net of Current Year Amortization) 1,522,780
Contributions Subsequent to the Measurement Date 622,927
Total $ 1,061,876 $ 1,680,647
$622,927 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year
ending September 3 0, 2019. Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Fiscal Year Ended September 30,
2019
2020
2021
2022
2023
Thereafter
47
$ 394,510
(61,264)
(785,579)
(789,365)
$ (1,241,698)
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund
Plan Description
The Paris Firefighters' Relief and Retirement Fund, a single-employer defined benefit pension plan, is
established under the authority of the Texas Local Firefighters' Retirement Act and is administered by a
Board of Trustees made up of three members elected from and by the fund's members, two representatives
of the City of Paris, Texas, and two citizen members. Specified plan provisions are governed by a plan
document and a trust agreement executed by the Board of Trustees. The plan is an independent entity for
financial reporting purposes and issues a stand-alone financial statement. A copy of the audited financial
statement may be obtained from the Board of Trustees, Paris Firefighters' Relief and Retirement Fund, P.O.
Box 9037, Paris, Texas 75461. Governing state law requires public retirement systems to hire an actuary to
make a valuation at least once every three years of the assets and liabilities of the system and to determine
if the assumptions and methods are reasonable. The plan financial statements are prepared using the
accrual basis of accounting. All plan investments are reported at fair value.
Eligibility
The plan covers current and former firefighters of the City of Paris, Texas, as well as certain beneficiaries.
The City of Paris contributes 12% of each member's total pay (including regular, longevity, and overtime
pay but excluding lump sum distributions for unused sick leave or vacation). Fund members contribute to
the fund at a rate of 15% of pay.
Employee contributions are "picked up" by the City of Paris, Texas, as permitted under Section 4 l 4(h)(2)
of the Internal Revenue Code. Fund members receive credit for service for the period during which
they pay into and keep on deposit in the fund, the contributions required by the fund.
The fund was established August 28, 1941, and was most recently amended effective August 12, 2014.
Contributions
The City's annual required contribution to the plan for fiscal year 2018 was based on a payroll of
$2,717,229 and amounted to $326,067. Covered employees made contributions of$407,584.
Employees Covered by Benefit Terms
At the December 31, 2017, valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
48
42
5
49
96
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Service Retirement Disability and Death Benefits
A member is eligible for service retirement upon the earlier of (a) the date that the member has both
attained age 55 and completed 20 years of service or (b) the date as of which the sum of the member's age
and years of service first equals 80 provided the member has completed 20 years of service. A member
who retires under the service retirement provisions of the fund will normally receive a monthly benefit
equal to $94 multiplied by his/her years of service at retirement. The minimum service retirement
benefit is $500 per month. Service retirement benefits are payable for the member's lifetime. In the event
the member's death precedes that of his/her spouse, two-thirds of the member's pension will be
continued to the spouse for his/her lifetime. An active member who becomes disabled will receive a
monthly disability benefit. If a member dies while in active service, his/her widow(er) will receive an
immediate monthly benefit, payable for his/her lifetime.
Actuarial Methods and Assumptions
The actuarial valuation date used to determine the total pension liability for the year ended September 30,
2018, and the most current available information required for disclosure under GASB Statement No. 67 is
based on an actuarial valuation as of December 31, 2014, rolled forward to December 31, 2017. The
actuarial cost method used in the December 31, 2014, valuation is the entry age normal actuarial cost
method. This method is also referred to as the entry age actuarial cost method under the terminology
developed by the Joint Committee on Pension Terminology. There has been no change in the actuarial cost
method since the last actuarial valuation.
The actuarial assumptions used in the actuarial valuation performed as of December 31, 2014, includes a
rate of return on the actuarial value of assets of 8% per year compounded annually; RP-2000 Healthy
Annuitant Mortality Table; termination rates from the Actuary's Pension Handbook; disability rates from
1985 Society of Actuaries Disability Table Study; and assumed retirement age of 55 with 20 years of
service or satisfied the rule of 80. Compensation increases for individual members and total payroll is 4.5%
compounded annually. Projected post-retirement benefit increases are zero.
49
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Net Pension Liability and Changes in the Pension Liability
Balance at 12/3 1/2016
Changes for the year:
Service Cost
Interest
Change of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions
Contributions -Employer
Contributions -Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee
Contributions
Administrative Expense
Other Changes
Net Changes
Balance at 12/31/2017
Total Pension
Liability
(a)
$ 14,957,795
254,567
1,094,074
(1,249,430)
99,211
$ 15,057,006
Increase (Decrease)
Plan
Fiduciary
Net Position
(b)
$ 4,764,272
326,396
407,996
578,324
(1,249,430)
(37,553)
5
{25,738)
$ 4,790,010
Net Pension
Liability
(Asset)
(a)-(b)
$ 10,193,523
254,567
1,094,074
(326,396)
(407,996)
(578,324)
37,553
(5)
73,473
$10,266,996
The following presents the net pension liability of the Paris Firefighters' Relief and Retirement Fund,
calculated using the discount rate of7.5%, as well as what the City's net pension liability (asset) would be
if it were calculated using a discount rate that is I-percentage-point lower (6.5%) or I-percentage-point
higher (8.5%) than the current rate:
Net Pension Liability
I% Decrease in
Discount Rate
6.5%
$11,851,541
Pension Plan Fiduciary Net Position
Discount Rate
7.5%
$10,266,996
1 % Increase in
Discount Rate
8.5%
$8,927,331
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued
financial report. That report may be obtained at 1444 N. Main Street, Paris, Texas 75460.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2018, the City recognized pension expense of$774,793.
50
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference Between Expected and Actual Economic Experience
Changes in Actuarial Assumptions
$ $ 248,882
(539,602)
Difference Between Projected and Actual Investment Earnings
Contributions Subsequent to the Measurement Date
57,524
290,433
Total $ 347,957 $ (290,720)
$290,433 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year
ending September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended December 31,
2018
2019
2020
2021
2022
2023-2027
Thereafter
Total
137,759
98,242
(9,649)
(8,272)
40,068
176,119
$ 434,267
G. Other Post Employment Benefit (OPEB) Obligations
1. Supplemental Death Benefits Fund
Plan Description
The City also participates in the single-employer defined benefit group-term life insurance plan operated by the
Texas Municipal Retirment System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). SDBF
covers both active and retiree benefits with no segregation of assets, and therefore doesn't meet the definition of
a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB). The City elected, by ordinance, to
provide group-term life insurance coverage to both current and retired employees. The City may terminate
coverage under and discontinue particiapation in the SDBF by adopting an ordinance before November I of any
year to be effective the following January 1.
51
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
Benefits
Payments from this fund are similar to group-term life insurance benefits, and are paid to the designated
beneficiaries upon the receipt of an approved application for payment. The death benefit for active employees
provides a lump-sum payment approximately equal to the employee's annual salary (calculated based on the
employee's actual earnings, for the 12-month period preceding the month of death). The death benefit for
retirees is considered an "other post-employment benefit" (OPEB) and is a fixed amount of $7,500. The
obligations of this plan are payable on from the SDBF and are not an obligation of, or a claim against, the
Pension Trust Fund.
Employees Covered by Benefit Terms
At the December 31, 2017 valuation and measurement date, the following employees were covered by benefit
terms:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
Contributions
164
33
254
451
Contributions are made monthly based on the covered payroll of employee members of the participating member
city. The contractually required contribution rate is determined annually for each city. The rate is based on
mortality and service experience of all employees covered by the SDBF and the demographics specific to the
workforce of the City. There is a one-year delay between the actuarial valuation that serves as the basis for the
employer contribution rate and the calendar year when the rate goes into effect. The funding policy for the SDBF
program is to assure that adequate resources are available to meet all death benefit payments for the upcoming
year; the intent is not to pre-fund retiree term life insurance during employees' entire careers.
Employees of the City were not required to contribute to the OPEB plan during the fiscal year. The contribution
rates for the City were 0.23% and 0.23% of gross earnings in calendar year 2017 and 2018, respectively. The
City's TMRS SDBF for the year ended September 30, 2018 were $27,247 and were equal to the required
contributions.
52
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
Changes in the OPEB Liability
Balance at 12/31/2016
Changes for the year:
Service Cost
Interest
Change of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions
Contributions -Employer
Contributions -Employees
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expense
Other Changes
Net Changes
Balance at 12/31/17
Increase
(Decrease)
Total OPEB
Liability
$ 886,699
$
26,990
33,850
76,984
(9,388)
128,436
1,015,135
The foIIowing presents the total SDBF OPEB liability of the City, calculated using the discount rate of 3.31 %,
(the applicable discount rate of an unfunded OPEB is based on an index of tax exempt 20-year municipal bond
rates rated as AA or higher), as well as what the City's total SDBF OPEB liability (asset) would be if it were
calculated using a discount rate that is I -percentage-point lower (2.31 % ) or I-percentage-point higher ( 4.31 % )
than the current rate:
Net Pension Liability
I% Decrease in
Discount Rate
2.31%
$1,210,725
Supplemental Death Benefits Fund Net Position
Discount Rate
3.31%
$1,015,135
1 % Increase in
Discount Rate
4.31%
$861,176
Detailed information about the plan's net position is available in a separately-issued TMRS financial report. That
report may be obtained on the Internet at www.tmrs.com.
53
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs
For the year ended September 30, 2018, the City recognized OPEB expense in the amount of$76,330.
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEBs from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference Between Expected and Actual Economic Experience
(Net of Current Year Amortization) $ $
Changes in Actuarial Assumptions 61,494
Differences Between Projected and Actual Investment Earnings
(Net of Current Year Amortization)
Contributions Subsequent to the Measurement Date 20,556
Total $ 82,050 $
$20,556 reported as deferred outflows of resources related to SDBF OPEB resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year
ending September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended December 31,
2019 $ 15,490
2020 15,490
2021 15,490
2022 15,024
2023
Thereafter
Total $ 61,494
2. City of Paris Retiree Health Care Plan
Plan Description
The City has in effect a single employer plan (the Plan) adopted by City Council resolution whereby persons
who retire before age sixty-five will be provided health care coverage until they become sixty-five. The
contribution requirements of the government are established and may be amended by the governing council. The
Plan covers retiree benefits with no segregation of assets, and therefore doesn't meet the definition of a trust
under GASB No. 75 (i.e., no assets are accumulated for OPEB). The Plan issues a stand-alone financial report.
54
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
Benefits
Retiree health benefits are available to all retirees who meet the definition of a retirees as set for by City
ordinance. Retirees are responsible for the full cost of their retiree health benefits. Retirees who meeting certain
conditions are eligible for a monthly subsidy from the City toward the purchase of health care coverage until the
retiree becomes age 65. Retirees are able to remain on the City group health insurance plan until the retiree
reaches age 65 or becomes eligible for Medicare coverage. Retiree premiums are 1.95 times the rates for
active employees. Retiree health beneifts are available to spouses and eligible dependents of retirees. All costs
for dependents are paid by the retiree if they have them. The City will provide a monthly subsidy to eligible
retirees who purchase medical coverage either through the City group insurance plan or from an alternate
provider. The cost of coverage for the retiree will be reimbursed up to a maximum amount set by the City with
the balance paid by the retiree. Effective January 1, 2018, the maximum amount of the monthly subsidy is $525.
Employees Covered by Benefit Terms
At the December 31, 2017 valuation and measurement date, the following employees were covered by benefit
terms:
Inactive retirees or beneficiaries currently receiving benefits
Inactive, Nonretired Members
Active employees
Total
Contributions
16
90
106
The City's contributions are financed on a pay-as-you-go basis. For the year ended September 30, 2018, the
contributions were approximately $64,470 for 17 retired employees.
55
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
Changes in the OPEB Liability
Balance at 12/31/2016
Changes for the year:
Service Cost
Interest
Change of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions
Contributions -Employer
Contributions -Employees
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expense
Other Changes
Net Changes
Balance at 12/31 / 17
Increase
(Decrease)
Total OPEB
Liability
$ 1,646,161
$
36,410
61,432
51,925
(103,929)
45,838
1,691,999
The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 3.31 %, as
well as what the City's total Plan OPEB liability (asset) would be if it were calculated using a discount rate that
is I-percentage-point lower (2.31 %) or I-percentage-point higher (4.31 %) than the current rate:
Net OPEB Liability
1 % Decrease in
Discount Rate
2.31%
$1,799,111
Discount Rate
3.31%
$1,691,999
1 % Increase in
Discount Rate
4.31%
$1,589,378
The following presents the Plan's total OPEB liability, calculated using the assumed trend rates as well as what
the Plan's total OPEB liability would be ifit were calculated using a trend rate that is one percent lower or one
percent higher:
1% Decrease
Net OPEB Liability $1,556,135
56
Current Healthcare
Cost Trend Rate
Assumption
$1,691,999
1% Increase
$1,843,729
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
OPEB Plan Net Position
Detailed information about the plan's net position is available in a separately-issued TMRS financial report. That
report may be obtained at 1444 N. Main Street, Paris, Texas 75460.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs
For the year ended September 30, 2018, the City recognized OPEB expense in the amount of$64,470.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs
(Continued)
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEBs from the following sources:
Difference Between Expected and Actual Economic Experience
(Net of Current Year Amortization)
Changes in Actuarial Assumptions
Contributions Subsequent to the Measurement Date
Total
Deferred Outflows
of Resources
$
43,602
36,529
$ 80,131
Deferred Inflows
of Resources
$
$
$36,529 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent
to the measurement date will be recognized as a reduction of the OPEB liability for the year ending
September 30, 2019. Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Year ended December 3 I,
2019 $ 8,323
2020 8,323
2021 8,323
2022 8,323
2023 8,323
Thereafter 1,987
Total $ 43,602
57
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
H. Water Sales and Commitments
I. Water Sales
The City has contracts extending for several years to sell treated and untreated water to six entities. Total
water sales under these contracts to these entities during the year ended September 30, 2018, were
approximately $2,907,099.
2. Construction Commitments
The City has active construction projects as of September 30, 2018. At year-end, the City's commitments
with contractors are as follows:
Project
Sewer and Water System Replacement and
Related Street Reconstruction
Street Construction and Improvement and Other
Costs Relating to Such Improvements
Total
3. Water Storage Commitment
To Date
$42,421,330
5,083,932
$47,505,262
Commitment
$ 9,004,665
3,539,931
$12,544,596
The City has the right to utilize an undivided 100% of the usable conservation storage space in Pat Mayse
Lake between elevations 451 feet and 415 feet above sea level which is estimated at 109,600 acre feet. The
Government reserves the right to control and use all storage in accordance with project purposes, to take
such measures to preserve life and or property including the right not to make downstream releases and to
inspect, maintain, or repair the project. The City will be required to pay 10.526% of the cost of joint-use
repair, rehabilitation, and replacement and 26.659% of the annual experienced joint-use operation and
maintenance of the project.
4. Civic Center Contract Commitment
The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby three-
sevenths of the hotel/motel tax is to be dedicated to a fund to be used for improving, enlarging, equipping,
repairing, operating, or maintaining a civic center. The contract provides that the Chamber of Commerce
of Lamar County, Inc. will operate the civic center through September 30, 2018, and may be reviewed for
four additional one year terms upon written agreement of the parties. Either party may terminate this
contract at the end of the current term by giving thirty days notice.
5. Interlocal Cooperative Agreement
During the year, the City participated in an interlocal cooperative agreement with the Sulphur River
Regional Mobility Authority. The City's payments are to assist in funding completion of approximately
10.4 miles of four-lane divided highway in Delta County, Texas. The City considers this a cost sharing
arrangement, accordingly, debt payments are not included in long-term liabilities. Annual payments of
$100,827 include principal and interest at 3.68% beginning March 29, 2013, through March 29, 2024. The
City is required to establish a sinking fund and to levy and collect property tax.
58
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
H. Water Sales and Commitments (Continued)
6. Other Commitments -PEDC
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 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.
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.
I. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City purchases insurance coverage from
commercial insurers and participates in risk pools to limit risk of loss in these areas. The risk pools maintain
adequate protection from catastrophic losses to protect their financial integrity. Aggregate protection is also
maintained to ensure that the City shall at no time be assessed. The City's contributions are limited to the rates
calculated under the agreement. There has been no significant reduction in insurance coverage during the year
ended September 3 0, 2018. There have been no settlements in excess of insurance coverage in any of the prior
three fiscal years.
J. Capital Leases
In September 20 l 5, the City began leasing equipment under an agreement classified as a capital lease due to a
bargain purchase option. The capital lease and accumulated amortization are as follows:
Capital Lease Equipment, at Cost
Less: Accumulated Amortization
Capital Lease Equipment, Net
$
$
59
617,114
166,406
450,708
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
J. Capital Leases (Continued)
The future minimum lease payments required under the capital leases and the present value of the net minimum
lease payments as of September 30, 2018, are as follows:
Year Ending September 30,
2019
2020
2021
2022
2023
2024-2025
Total Minimum Lease Payments
Less: Amount Representing Interest
Present Value of Net Minimum Lease Payments
Less: Current Maturities of Capital Lease Obligation
Long-Term Portion of Capital Lease Obligation
Amount
$ 72,353
72,353
72,353
72,353
72,353
144,704
506,469
(55,761)
450,708
(58,829)
$ 391,879
In January 2016, the City began leasing equipment under an agreement classified as a capital lease due to a
bargain purchase option. The capital lease and accumulated amortization are as follows:
Capital Lease Equipment, at Cost
Less: Accumulated Amortization
Capital Lease Equipment, Net
$ 975,185
172,707
$ 802,478
The future minimum lease payments required under the capital leases and the present value of the net minimum
lease payments as of September 30, 2018, are as follows:
Year Ending September 30,
2019
2020
2021
2022
2023
2024-2026
Total Minimum Lease Payments
Less: Amount Representing Interest
Present Value of Net Minimum Lease Payments
Less: Current Maturities of Capital Lease Obligation
Long-Term Portion of Capital Lease Obligation
K. Long-Term Liabilities
Amount
$ 114,337
114,337
114,337
114,337
114,337
343,008
914,693
(112,220)
802,473
(90,262)
$ 712,211
In the government-wide financial statements and proprietary funds in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary funds statement of net position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses in the
year of issuance.
60
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Tenn Liabilities (Continued)
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, even if withheld from the actual net proceeds received, are
reported as debt service expenditures.
General Obligation Certificates of Obligation and Other Long-Tenn Obligations:
$3,005,000 Combination Tax and Revenue Certificates of Obligation, Series 20 I 0, due in annual installments
varying from $130,000 to $230,000 with final payment due December 15, 2029. Interest is payable semi-
annually at rates ranging from 2.8% to 4.200%. On December 15, 2020, or any date thereafter, unpaid principal
installments may be prepaid or redeemed prior to their scheduled due dates at the City's option. The certificates
are additionally secured by and payable from a limited pledge (not to exceed $1,000) of the surplus revenues of
the waterworks and sewer systems. These bonds were issued to provide funds for improvements and expansion
to South Collegiate Drive.
$17,075,000 General Obligation Refunding Bonds, Series 2010, due in annual installments varying from
$1,050,000 to $1,160,000, with final payment due June 15, 2020. Interest is payable semi-annually at rates
ranging from 3.0% to 3.500%. On June 15, 2018, or any date thereafter, the outstanding bonds may be
redeemed prior to their scheduled maturities at the City's option. These bonds were issued February 15, 2010,
at a premium for the purpose of refunding $17,220,000 in outstanding bonds reported as Enterprise Fund debt
and General Obligation debt.
$4,505,000 General Obligation Refunding Bonds, Series 2012, due in annual installments varying from
$355,000 to $405,000 with final payment due December 14, 2021. On December 18, 2012, the City issued this
series bearing interest ranging from 2.0% to 2.5% to refund Outstanding Combination Tax and Revenue
Certificates of Obligation, Series 2002 ($3,440,000) bearing interest ranging from 4.0% to 4. 7% and General
Obligation Refunding Bonds, Series 2003 ($1,210,000) bearing interest ranging from 3.75% to 3.9%. The net
proceeds of $4,652,190 (after payment of various fees and including premium and accrued interest) were
deposited in an escrow fund to prepay the refunded bonds. The issuance of the bonds produced a gross debt
service savings of $612,058 and a net present value savings of $584,806.
$9,750,000 General Obligation Bonds, Series 2017, due in annual installments varying from $370,000 to
$635,000 with final payment due June 15, 2037. On July 17, 2017, the City issued this series bearing interest
ranging from 2.125% to 3.0%. On December 15, 2027, or any date thereafter, the outstanding bonds may be
redeemed prior to their scheduled maturities at the City's option. The bonds were issued at a premium to
provide funds to pay the costs of construction, improving, extending, expanding, upgrading and developing
streets and roads, bridges and intersections including, utility relocation, landscapting, sidewalks, traffic safety
and operational improvements, the purchse of any necessary right-of-way, drainage, and other related costs, and
improving and equipping parks, trails and recreational facilities.
$2,900,000 Combination Tax and Surplus Revenue Certificates of Obligation, Series 2013, due in annual
installments varying from $145,000 to $165,000 with final payment due June 15, 2032. Interest is payable semi-
annually at rates ranging from 0.12% to 1.45%. On June 15, 2023, or any date thereafter, the outstanding bonds
may be redeemed prior to their scheduled maturities at the City's option. These bonds were issued to provide
funds to pay the costs of improving the potable water distribution system and related costs. The certificates are
also secured by a pledge of net revenues of the water works and sewer system. In addition to the purchase of
these bonds by the Texas Water Development Board, the City received $500,778 in connection with a loan
forgiveness program. The bonds are reported as obligations of the Enterprise Fund.
61
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Term Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long-Term Obligations (Continued):
$33,925,000 General Obligation Bonds, Series 2013, due in annual installments varying from $775,000 to
$2,850,000 with final payment due December 15, 2032. Interest is payable semi-annually at rates ranging from
4.0% to 5.0%. On December 15, 2023, or any date thereafter, the outstanding bonds may be redeemed prior to
their scheduled maturities at the City's option. These bonds were issued August 15, 2014, at a premium for the
purpose of replacing and extending water distribution lines and sewer collection lines and making repairs
necessitated by the replacement. Voters of the issuer approved the issuance of $45,000,000 in tax bonds. The
bonds are reported as obligations of the Enterprise Fund.
$8,780,000 General Obligation Bonds, Series 20 I 6, due in annual installments varying from $340,000 to
$550,000 with final payment due December I 5, 2036. Interest is payable semi-annually at rates ranging from
2.0% to 4.0%. On December 15, 2026, or any date thereafter, the outstanding bonds may be redeemed prior to
their scheduled maturities at the City's option. These bonds were issued December 1, 2016, at a premium for
the purpose of constructing and acquiring improvements and equipping the City's waterworks and sewer system
and for replacing and extending water distribution lines and sewer collection lines and construction repairs to
streets and drainage infrastructure necessitated by such water and sewer line construction. Voters approved the
issuance of $45,000,000 in tax bonds. The bonds are reported as obligations of the Enterprise Fund.
$1,390,000 General Obligation Bonds, Series 2018, due in annual installments varying from $100,000 to
$220,000 with final payment due June 15, 2028. Interest is payable semi-annually at 2.59%. On December 15,
2026, or any date thereafter, the outstanding bonds may be redeemed prior to their scheduled maturities at the
City's option. These bonds were issued May 1, 2018, in the amount of $1,200,000 for the purpose of
constructing and acquiring improvements and equipping the City's waterworks and sewer system and for
replacing and extending water distribution lines and sewer collection lines and construction repairs to streets
and drainage infrastructure necessitated by such water and sewer line construction and in the amount of
$190,000 to pay the costs of construction, improving, extending, expanding, upgrading and developing streets
and roads, bridges and intersections including, utility relocation, landscapting, sidewalks, traffic safety and
operational improvements, the purchse of any necessary right-of-way, drainage and other related costs. The
bonds are reported reported as Enterprise Fund debt and General Obligation debt.
The ordinances require that property taxes be levied and collected at a rate sufficient to pay principal and
interest as they come due. They also require that these funds be placed in special interest and sinking funds
created solely for the benefit of the obligations. At September 30, 2018, the fund balances in the Interest and
Sinking Funds are $1,836,162.
The State of Texas is requiring additional monitoring of a landfill owned by the City that has been closed for
several years. The City and its' consultants estimate that, based on known requirements, future costs may be
$150,000. These costs are subject to change resulting from inflation, deflation, technology, or changes in
applicable laws or regulations.
62
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Term Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long-Term Obligations (Continued):
A summary of long-term liability transactions for the year ended September 30, 2018, follows:
Balance Balance
September 30, September 30, Due Within
2017 Additions Reductions 2018 One Year
Governmental Activities
Debt Payable
Bonds Payable $ 15,285,000 $ 190,000 $ 1,325,000 $ 14,150,000 $ 1,320,000
Premium 176,503 20,471 156,032 18,361
Capital Leases 1,397,929 144,748 1,253,181 149,091
Total Debt Payable 16,859,432 190,000 1,490,219 15,559,213 1,487,452
Compensated Absences 1,083,358 834,883 760,666 1,157,575 115,757
Landfill Post-Closure
Care Costs 150,000 150,000
Governmental Activities
Long-Term Liabilities $ 18,092,790 $ 1,024,883 $ 2,250,885 $ 16,866,788 $ 1,603,209
Business-Type Activities
Debt Payable
Bonds Payable $ 44,000,000 $ 1,200,000 $ 1,975,000 $ 43,225,000 $ 2,140,000
Premium 1,175,173 135,584 1,039,589 126,857
Total Debt Payable 45,175,173 1,200,000 2,110,584 44,264,589 2,266,857
Compensated Absences 235,092 168,205 187,501 215,796 21,580
Business-Type Activities
Long-Term Liabilities $ 45,410,265 $ 1,368,205 $ 2,298,085 $ 44,480,385 $ 2,288,437
Component Unit
Bonds Payable $ 340,000 $ $ 340,000 $ $
Component Unit
Long-Term Liabilities $ 340,000 $ $ 340,000 $ $
For the governmental activities, compensated absences are liquidated by the general fund.
63
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Term Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long-Term Obligations: (Continued)
Long-term debt service requirements for the next five years and after, in five year increments, are as follows:
Year Ending General Obligation Water and Sewer
Seetember 30, Princieal Interest Princieal Interest
2019 $ 1,320,000 $ 403,932 $ 2,140,000 $ 1,708,956
2020 1,355,000 364,291 2,210,000 1,632,897
2021 1,035,000 1,423,489 2,300,000 1,538,633
2022 1,065,000 301,523 2,345,000 1,445,168
2023 585,000 276,421 2,445,000 1,342,040
2024-2028 3,240,000 1,088,240 13,820,000 5,070,890
2029-2033 3,115,000 595,611 15,915,000 2,077,809
2034-2037 2,435,000 175,846 2,050,000 129,426
Totals $ 14,150,000 $ 4,629,353 $ 43,225,000 $ 14,945,819
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 of PEDC. 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.
L. Interfund Transfers
During the year ended September 30, 2018, the City made transfers from the General Fund and the Water and
Sewer Fund to the Debt Service Fund of $6,200 to make debt service payments. Other minor transfers were
made between funds making up transfers of:
General
Capital Projects
Water and Sewer
Transfers In
General
$
124,968
$ 124,968
Debt Service
$
6,200
$ 6,200
64
Other
Governmental
$ 109,650
$ 109,650
Capital
Projects Transfers Out
$ 129,000 $ 238,650
124,968
624,517 630,717
$ 753,517 $ 994,335
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
M. Restricted Net Position and Restricted Asset Accounts
In order to safeguard the financial integrity of the water and sewer system, the City Council approved a
resolution establishing and maintaining funds comparable to those required by the revenue bonds refunded in
2010. At September 30, 2018, these accounts, shown as cash and investments on the Statement ofNet Position
-Proprietary Funds, are as follows:
Reserve Fund
Contingency Fund
$ 6,894,263
1,801,927
Collections of notes receivable are restricted by grant agreements to be used for building rehabilitation.
The balances of the City's restricted asset accounts are as follows:
Grants Receivable
Lake Crook
Contingency
Loan
Bond Reserves and Sinking Funds
Construction
Total Restricted Assets
N. Related Party
Cash and Cash
Equivalents
$
$
3,685
676,917
34,168
1,865,693
6,564,930
9,145,393
Certificates of
Deposit and
Other
Investments
$
1,125,010
2,323,857
16,404,991
$ 19,853,858
Other
Receivables
$ 731,032
$ 731,032
The City Council appoints the governing board of an entity which is legally separate from the City. The City is
not able to impose its will on this entity, and a financial benefit/burden relationship is not present; therefore, it is
considered a related organization.
0. Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may constitute
a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor
cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material
adverse effect on the financial condition of the City.
65
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2018
IV. Detailed Notes on All Activities and Funds (Continued)
P. Tax Abatements
As of September 30, 2018, the City provides tax abatements through two progams-Industrial and Residential:
1. Industrial abatements are possible for manufacturing, research, regional distribution, regional services,
regional tourist entertainment, basic industry, and any primary jobs creating industry. The property involved
must be newly created or improvements to an existing facility. Abatements may be extended to the value of
buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and office
space and improvements necessary to the operation and administration of the facility. Inventory and supplies
are not eligible for abatement. The city council grants abatements on a case by case basis. The abatement is
stated as a percentage of the eligible property under consideration and for a specified period of time up to ten
years. The City has a written industrial tax abatement policy.
2. Residential abatements are granted for five year periods. The property involved must be new
residential structures or improvements to existing structures that will be at least a 20% increase in the previous
appraised value of the property. The abatements are stated as a percentage of the increased value using the
following schedule: Year 1-100%, Year 2-100%, Year 3-80%, Year 4-60%, and Year 5-40%. The City has a
standard written residential tax abatement agreements.
Tax Abatement Program
Industrial Incentives
Residential Incentives
Q. Prior Period Adjustment
Amount of Taxes Abated 2017-18
$ 270,819,080
269,940
During fiscal year 2018, the City adopted GASB Statement No. 75 for Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. With GASB 75, the City must assume their proportionate share
of the Net OPEB Liability of the Texas Municipal Retirment System and the City of Paris Retiree Health Care
Plan. Adoption of GASB 75 required a prior period adjustment to report the effect of GASB 75 retroactively.
The prior period adjustment totaled $(4,054,335) for governmental activities and $(142,213) for business type
activities. During the fiscal 2018, the City determined that adjustments were necessary to various capital asset
accounts. The prior period adjustment totaled $(161,678) for governmental activities and $(5,032,486) for
business type activities. The restated beginning net position for governmental activities and business type
activities is $31,919,017 and $42,305,502, respectively.
R. Subsequent Event
On November 12, 2018, the City voted to enter into a contract, in an amount not to exceed $2,200,000 for street
construction as part of the 2017 bond streets project.
On December I 0, 2018, the City voted to terminate the tax abatement agreement with Paris Regional Medical
Center and seek all taxes owed.
66
REQUIRED SUPPLE:t\IBNTARY JNFORM,ATION
CITY OF PARIS, TEXAS
Required Supplementary Infonnation
Texas Municipal Retirement System-
Schedule of Changes in Net Pension Liability
Year Ended September 30, 2018
Total Pension Liability
Service Cost
Interest
Changes in Benefit Tenns
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability -Beginning
Total Pension Liability -Ending
Plan Fiduciary Net Position
Contributions -Employer
Contributions -Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position -Beginning
Plan Fiduciary Net Position -Ending
City's Net Pension Liability (Asset) -Ending
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered-Employee Payroll
City's Net Pension Liability as a Percentage of Covered-
Employee Payroll
2017
$ 1,192,255
3,952,930
19,208
p,090z075}
2,074,318
59,510,831
$61,585,149
$ 817,914
704,087
7,698,497
(3,090,075)
(39,921)
{2,023}
6,088,479
55,580,270
$ 61,668,749
$ (83,600)
100.14%
$11,734,791
-0.71%
Schedule I
Plan Year Ended December 31,
2016 2015 2014
$ 1,190,613 $ 1,084,666 $ 1,084,779
3,826,176 3,718,773 3,592,818
1,615,467
(211,467) (159,282) (191,294)
(2,766,533) {2,741, l 48} {2,632,638}
2,038,789 3,518,476 1,853,665
57,472,042 53,953,566 52,099,901
$ 59,510,831 $ 57,472,042 $ 53,953,566
$ 669,501 $ 700,159 $ 721,733
701,189 676,545 667,048
3,607,913 80,774 3,031,103
(2,766,533) (2,741,148) (2,632,638)
(40,766) (49,204) (31,651)
{2,196} {2,430} {2,602}
2,169,108 (1,335,304) 1,752,993
53,411,162 54,746,466 52,993,473
$ 55,580,270 $53,411,162 $ 54,746,466
$ 3,930,561 $ 4,060,880 $ (792,900)
93.40% 92.93% 101.47%
$11,684,128 $11,203,172 $ 11,177,790
33.64% 36.25% -7.09%
Note: The pension schedules in the required supplementary infonnation are intended to show infonnation for ten years. Additional years' infonnation will be
displayed as it becomes available.
67
Contractually Required Fiscal Year Contribution
CITY OF PARIS, TEXAS
Required Supplementary lnfonnation
Texas Municipal Retirement System -
Schedule of City Contributions
Year Ended September 30, 2018
2018
$ 825,691
Contribution in Relation to the Contractually Required Fiscal Year Contribution
Contribution Deficiency (Excess) $
(825,691)
Covered-Employee Payroll $ 11,846,360
Contributions as a Percentage of Covered-Employee Payroll 6.97%
Schedule 2
Fiscal Year Ended September 30,
2017 2016 2015
$ 801,727 $ 733,564 $ 704,441
(801,727) (733,564) (704,441)
$ $ $
$ 11,615,574 $ 12,058,579 $ 11,203,172
6.90% 6.08% 6.29%
Note: The pension schedules in the required supplementary infonnation are intended to show infonnation for ten years. Additional years' infonnation will be
displayed as it becomes available.
68
CITY OF PARIS, TEXAS
Required Supplementary Information
Paris Firefighters' Relief and Retirement Fund -
Schedule of Changes in Net Pension Liability
Year Ended September 30, 2018
Total Pension Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability-Beginning
Total Pension Liability-Ending
Plan Fiduciary Net Position
Contributions -Employer
Contributions -Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position -Beginning
Plan Fiduciary Net Position -Ending
City's Net Pension Liability (Asset) -Ending
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered-Employee Payroll
City's Net Pension Liability as a Percentage ofCovered-
Employee Payroll
2017
$ 254,567
1,094,074
(1,249,430)
99,211
14,957,795
$15,057,006
$ 326,396
407,996
578,324
(1,249,430)
(37,553)
5
25,738
4,764,272
$ 4,790,010
$ 10,266,996
31.81%
$ 2,717,229
377.85%
Plan Year Ended December 31,
2016 2015
$ 258,484
1,109,262
(65,973)
616,266
(1,136,379)
781,660
14,175,471
$14,957,131
$ 317,902
397,475
377,387
(1,136,379)
(70,404)
2,121
(111,898)
4,876,170
$ 4,764,272
$ I 0, 192,859
31.85%
$ 2,785,912
365.87%
$ 247,353
1,092,874
(1,156,654)
183,573
13,991,898
$14,175,471
$ 310,483
388,212
(121,104)
(1,156,654)
(6,500)
(585,563)
5,461,733
$ 4,876,170
$ 9,299,301
34.40%
$ 2,511,047
370.34%
Schedule 3
2014
$ 236,701
1,087,700
(238,406)
134,458
(1,200,964)
19,489
13,972,409
$ 13,991,898
$ 281,896
352,370
245,555
(1,200,964)
(84,445)
5,315
(400,273)
5,862,006
$ 5,461,733
$ 8,530,165
39.03%
$ 2,368,370
360.17%
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
69
Contractually Required Fiscal Year Contribution
CITY OF PARIS, TEXAS
Required Supplementary Information
Paris Firefighters' Relief and Retirement Fund
Schedule of City Contributions
Year Ended September 30, 2018
2018
$ 326,067
Contribution in Relation to the Contractually Required Fiscal Year Contribution
Contribution Deficiency (Excess) $
(326,067)
Covered-Employee Payroll $ 2,717,229
Contributions as a Percentage of Covered-Employee Payroll 12.00%
Schedule 4
Fiscal Year Ended September 30,
2017 2016 2015
$ 320,851 $ 332,665 $ 301,329
(320,851) (332,665) (301,329)
$ $ $
$ 2,795,465 $ 2,772,967 $ 2,511,047
11.48% 12.00% 12.00%
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
70
CITY OF PARIS, TEXAS
Required Supplementary Information
Texas Municipal Retirement System -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30,2018
Total OPEB Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total OPEB Liability
Total OPEB Liability-Beginning
Total OPEB Liability -Ending
Covered-Employee Payroll
City's Total OPEB Liability as a Percentage of Covered-
Employee Payroll
Schedule 5
Plan Year Ended
December 31,
2017
$ 26,990
33,850
76,984
{9,388}
128,436
886,699
$ 1,015,135
$ 11,734,791
8.65%
Note: The pension schedules in the required supplementary information are intended to show information for ten
years. Additional years' information will be displayed as it becomes available.
71
Actuarially Determined Contribution
CITY OF PARIS, TEXAS
Required Supplementary Information
Texas Municipal Retirement System -
Schedule of City Contributions
Year Ended September 30, 2018
Contributions in Relation to Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Schedule 6
Fiscal Year Ended
September 30,
2018
$ 27,247
(27,247)
$
$ 11,846,360
0.23%
Note: The pension schedules in the required supplementary information are intended to show information for ten
years. Additional years' information will be displayed as it becomes available.
72
CITY OF PARIS, TEXAS
Required Supplementary Information
City of Paris Retiree Health Care Plan -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30, 2018
Total OPEB Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total OPEB Liability
Total OPEB Liability -Beginning
Total OPEB Liability -Ending
Covered-Employee Payroll
City's Total OPEB Liability as a Percentage of Covered-
Employee Payroll
Schedule 7
Plan Year Ended
December 31,
2017
$ 36,410
61,432
51,925
{103,929}
45,838
1,646,161
$ 1,691,999
$ 5,284,495
32.02%
Note: The pension schedules in the required supplementary information are intended to show information for ten
years. Additional years' information will be displayed as it becomes available.
73
Actuarially Determined Contribution
CITY OF PARIS, TEXAS
Required Supplementary Information
City of Paris Retiree Health Care Plan -
Schedule of City Contributions
Year Ended September 30, 2018
Contributions in Relation to Actuarially Determined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
Schedule 8
Fiscal Year Ended
September 30,
$
$
$
2018
33,407
(33,407)
5,284,495
0.63%
Note: The pension schedules in the required supplementary information are intended to show information for ten
years. Additional years' information will be displayed as it becomes available.
74
Nonmajor Governmental Funds
Special Revenue
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular
purposes.
Community Development Block Grant -This fund accounts for funds received from various federal grant programs and
expended for community development purposes.
Special Revenue Fund -This fund accounts for funds received from various sources and can be expended for improving
efficiency of the administration of justice; enhancing child safety, health, and nutrition; security devices and
technological enhancements for municipal court; and other improvement activity.
Library Memorial Funds -These funds account for resources given for book and library related purposes in memory of
individuals.
Permanent Funds
Library Trust Funds -These funds account for resources of a permanent nature whereby only earnings and not principal
may be used for books and library-related purposes.
Other Major Governmental Funds
Debt Service Fund -This fund accounts for the accumulation of resources and the payment of general obligation
principal and interest.
Capital Projects Fund -This fund accounts for proceeds from bond issues and transfers.
75
CITY OF PARIS, TEXAS Schedule 9
Combining Balance Sheet -Nonmajor Governmental Funds
September 30, 2018
Special Revenue Permanent
Community Total
Development Special Library Library Nonmajor
Block Revenue Memorial Trust Governmental
Grant Fund Funds Total Funds Funds
ASSETS
Cash and Cash Equivalents $ 208,463 $ 199,315 $ 85,554 $ 493,332 $ 561 $ 493,893
Investments 4,996 4,996 93,128 98,124
Notes Receivables
Total Assets $ 213,459 $ 199,315 $ 85,554 $ 498,328 $ 93,689 $ 592,017
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable $ $ 121 $ $ 121 $ $ 121
Total Liabilities 121 121 121
Fund Balances:
Nonspendable
Permanent Library Funds 93,689 93,689
Restricted for:
Notes
Law Enforcement 199,194 199,194 199,194
Assigned:
Library 85,554 85,554 85,554
Community Development 213,459 213,459 213,459
Total Fund Balances 213,459 199,194 85,554 498,207 93,689 591,896
Total Liabilities and
Fund Balances $ 213,459 $ 199,315 $ 85,554 $ 498,328 $ 93,689 $ 592,017
76
CITY OF PARIS, TEXAS Schedule IO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2018
Special Revenue Permanent
Community Total
Development Library Library Nonmajor
Block Special Memorial Trust Governmental
Grant Revenue Funds Total Funds Funds
REVENUES
Fees and Fines $ $ 49,038 $ $ 49,038 $ $ 49,038
Intergovernmental
Interest Earned 3,621 3,996 1,610 9,227 1,342 10,569
Miscellaneous 1,870 3,589 5,459 5,459
Total Revenues 3,621 54,904 5,199 63,724 1,342 65,066
EXPENDITURES
Current
General Government 43,449 43,449 43,449
Public Safety 39,185 39,185 39,185
Community Development
Health 1,654 1,654 1,654
Culture and Recreation 1,687 1,687 1,687
Capital Outlay
General Government
Public Safety
Total Expenditures 84,288 1,687 85,975 85,975
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,621 (29,384) 3,512 (22,251) 1,342 (20,909)
Other Financing Sources (Uses)
Transfers In 109,650 109,650 109,650
Transfers Out
Total Other Financing
Sources (Uses) 109,650 109,650 109,650
Net Changes in
Fund Balances 113,271 (29,384) 3,512 87,399 1,342 88,741
Fund Balances -Beginning I 00, 188 228,578 82,042 410,808 92,347 503,155
Fund Balances -Ending $ 213,459 $ 199,194 $ 85,554 $ 498,207 $ 93,689 $ 591,896
77
CITY OF PARIS, TEXAS Schedule 11
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Special Revenue Fund
Year Ended September 30, 2018
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Fees and Fines $ 19,500 $ 19,500 $ 49,038 $ 29,538
Intergovernmental
Interest Earned 3,996 3,996
Miscellaneous 1,870 1,870
Total Revenues 19,500 19,500 54,904 35,404
EXPENDITURES
Municipal Court 127,250 127,250 43,449 83,801
Police 104,000 104,000 39,185 64,815
Health 3,500 3,500 1,654 1,846
Total Expenditures 234,750 234,750 84,288 150,462
Excess (Deficiency) of Revenues
Over (Under) Expenditures (215,250) (215,250) (29,384) 185,866
Other Financing Sources (Uses)
Transfers Out
Total Other Financing
Sources (Uses)
Net Changes in Fund Balance (215,250) (215,250) (29,384) 185,866
Fund Balance -Beginning 228,578 228,578 228,578
Fund Balance -Ending $ 13,328 $ 13,328 $ 199,194 $ 185,866
78
CITY OF PARIS, TEXAS Schedule 12
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Debt Service Fund
Year Ended September 30, 2018
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Property Taxes $ 1,926,388 $ 1,926,388 $ 1,795,313 $ (131,075)
Interest Earned 33,580 33,580
Total Revenues 1,926,388 1,926,388 1,828,893 (97,495)
EXPENDITURES
Bond Principal Retirement 1,643,634 1,643,634 1,393,992 249,642
Interest and Fiscal Charges 276,203 276,203 447,294 (171,091)
Total Expenditures 1,919,837 1,919,837 1,841,286 78,551
Excess of Revenues
Over Expenditures 6,551 6,551 (12,393) (18,944)
Other Financing Sources (Uses):
General Obligation Bonds Issued 190,000 190,000
Transfers In 743,550 743,550 6,200 (737,350)
Transfers Out
Total Other Financing
Sources (Uses) 743,550 743,550 196,200 (547,350)
Net Changes in Fund Balance 750,101 750,101 183,807 (566,294)
Fund Balance -Beginning 1,652,355 1,652,355 1,652,355
Fund Balance -Ending $ 2,402,456 $ 2,402,456 $ 1,836,162 $ (566,294)
79
CITY OF PARIS, TEXAS Schedule 13
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Capital Projects Fund
From Inception and Year Ended September 30, 2018
Project
Prior Current Total Authorization
Years Year to Date (Budget)
REVENUES
Interest Earned $ 95,829 $ 187,720 $ 283,549 $
Total Revenues 95,829 187,720 283,549
EXPENDITURES
City Council 114,109 132,785 246,894 144,109
Police 285,630 285,630 285,630
Fire 915,942 915,942 915,942
Community Development 725,207 725,207 870,350
Engineering 35,555 35,555 35,555
Parks and Recreation 563,384 563,384 923,781
Solid Waste 568,811 568,811 I, 181,019
Streets and Highways 5,035,103 1,834,971 6,870,074 8,088,932
Health 16,600 103,953 120,553 129,000
Library 7,100 7,100 15,000
Cox Field Airport 110,667 110,667 90,100
Total Expenditures 8,378,108 2,071,709 10,449,817 12,679,418
Deficiency of Revenues
Over Expenditures (8,282,279) (1,883,989) ( 10, 166,268) (12,679,418)
Other Financing Sources (Uses):
Transfers In 8,166,042 8,166,042
Transfers Out (2,976,453) 753,517 (2,222,936)
Certificates of Obligation Issued 12,918,399 12,918,399
SPECIAL ITEM
Proceeds from Sale of Assets 90,100 90,100
Net Changes in Fund Balance $ 9,915,809 (1,130,472) $ 8,785,337 $ (12,679,418)
Fund Balance -Beginning 10,086,116
Fund Balance -Ending $ 8,955,644
80
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERN1\1ENTAL FUNDS
CITY OF PARIS, TEXAS Schedule 14
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2018 and 2017
2018 2017
Governmental Funds Capital Assets:
Land $ 5,927,478 $ 5,927,478
Buildings 19,665,316 19,416,397
Improvements Other Than Buildings 6,552,117 5,738,565
Machinery and Equipment 20,992,957 20,874,718
Infrastructure 45,175,454 44,220,961
Construction in Progress I, 166,700 250,885
Total Governmental Funds Capital Assets $ 99,480,022 $ 96,429,004
Investments in Governmental Funds Capital Assets by Source:
General Fund $ 66,609,277 $ 64,607,433
Capital Projects Funds 25,262,491 24,107,251
Donations 7,608,254 7,714,320
Total Investments in Governmental Funds Capital Assets by Source $ 99,480,022 $ 96,429,004
81
. ·. >
,-... -...
STATISTICAL SECTION
This part of the City of Paris' comprehensive annual financial report contains detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the government's overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenu~ source, the ad valorem tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability
to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information
These schedules contain service and infrastructure data to help the reader under-
stand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
82
Tables 1-4
Tables 5 -8
Tables 9-13
Tables 14-15
Tables 16-19
Governmental Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental Activities,
Net Position
Business-Type Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Business-Type Activities,
Net Position
Primary Government:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government,
Net Assets/Position
CITY OF PARIS, TEXAS
Net Assets/Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2009
$ 26,663,557
952,225
15,119,471
$ 42,735,253
$ 26,288,945
3,813,439
7,237,951
$ 37,340,335
$ 52,952,502
4,765,664
22,357,422
$ 80,075,588
83
2010 2011
$ 26,871,917
5,454,967
10,358,596
$ 42,685,480
$ 28,883,901
1,636,722
9,815,653
$ 40,336,276
$ 55,755,818
7,091,689
20,174,249
$ 83,021,756
$ 25,311,134
3,958,563
12,801,387
$ 42,071,084
$ 31,855,910
I 1,416,134
$ 43,272,044
$ 57,167,044
3,958,563
24,217,521
$ 85,343,128
Table 1
2012
$ 27,532,353
5,421,971
12,700,759
$ 45,655,083
$ 34,499,646
8,496,996
$ 42,996,642
$ 62,031,999
5,421,971
21,197,755
$ 88,651,725
2013
$ 28,732,801
4,949,039
12,301,829
$ 45,983,669
$ 33,003,801
10,075,150
$ 43,078,951
$ 61,736,602
4,949,039
22,376,979
$ 89,062,620
2014
$ 28,427,758
4,949,039
10,023,934
$ 43,400,731
$ 33,041,432
12,172,944
$ 45,214,376
$ 61,469,190
4,949,039
22,196,878
$ 88,615,107
Fiscal Year
2015
$ 28,043,910
3,393,033
5,694,771
$ 37,131,714
$ 33,331,038
13,508,734
$ 46,839,772
$ 61,374,948
3,393,033
19,203,505
$ 83,971,486
2016
$ 30,505,784
3,003,799
1,890,470
$ 35,400,053
$ 33,466,855
14,460,833
$ 47,927,688
$ 63,972,639
3,003,799
16,351,303
$ 83,327,741
84
2017
$ 21,971,338
3,004,564
11,159,128
$ 36,135,030
$ 24, 198,822
22,900,345
$ 47,099,167
$ 46,170,160
3,004,564
34,059,473
$ 83,234,197
2018
$ 20,713,428
12,548,372
53,717
$ 33,315,517
$ 18,322,809
22,945,722
$ 41,268,531
$ 39,036,237
12,548,372
22,999,439
$ 74,584,048
Table 1
( Continued)
CITY OF PARIS, TEXAS Table 2
Changes in Net Assets/Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2009 2010 2011 2012
EXPENSES
Governmental Activities:
General Government $ 3,590,461 $ 2,632,370 $ 2,890,290 $ 2,094,110
Finance 449,227 481,106 437,320 480,144
Public Safety 9,498,749 10,021,261 9,880,712 10,771,351
Public Works 6,905,252 7,279,655 7,667,367 7,568,269
Health 3,133,324 3,184,085 3,202,551 3,416,360
Library Services 730,925 751,523 719,240 712,033
Cox Field Airport 294,089 225,565 220,027 261,463
Interest on Long-Term Debt 507,788 460,678 438,460 342,554
Bond Issue Costs
Total Governmental
Activities Expenses 25,109,815 25,036,243 25,455,967 25,646,284
Business-Type Activities:
Water and Sewer Services 11,197,470 10,423,943 10,694,363 11,008,967
Total Primary Government
Expenses 36,307,285 35,460,186 36,150,330 36,655,251
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government
Public Safety 676,229 757,291 606,792 729,267
Public Works 1,693,133 1,709,552 1,775,841 1,788,753
Health 2,638,943 2,595,679 2,608,306 2,721,421
Library Services 21,335 21,123 19,707 20,877
Cox Field
Operating Grants
and Contributions 1,317,832 1,431,30 I 1,953,631 1,305,387
Capital Grants
and Contributions 224,458 355,429 205,628 636,974
Total Governmental Activities
Program Revenues 6,571,930 6,870,375 7,169,905 7,202,679
Business-Type Activities:
Charges for Services:
Water and Sewer Service 13,616,713 13,650,486 13,798,137 13,852,441
Total Primary Government
Program Revenues 20,188,643 20,520,861 20,968,042 21,055,120
85
2013 2014
$ 2,905,871 $ 2,997,393 $
393,526 407,463
9,982,926 10,449,953
8,396,001 7,909,651
3,348,281 3,228,513
787,242 816,376
259,938 158,632
436,690 287,256
314,765
26,825,240 26,255,237
11,504,538 11,940,791
38,329,778 38,196,028
2,447 3,310
412,150 433,828
1,860,656 1,799,918
2,463,907 2,371,757
27,824 19,400
78,234 67,037
1,959,427 926,506
117,080 690,176
6,921,725 6,311,932
14,005,748 13,881,328
20,927,473 20,193,260
Fiscal Year
2015 2016
2,909,807 $ 3,463,908
404,567 400,665
11,037,966 12,595,127
7,508,978 7,020,333
2,404,782 2,633,051
790,339 799,187
152,063 217,995
276,197 237,313
25,484,699 27,367,579
11,929,499 12,100,940
37,414,198 39,468,519
17,634 6,572
370,308 361,100
1,862,606 1,780,836
2,391,817 2,519,387
19,433 16,874
76,689 91,810
1,396,711 672,298
271,961 424,332
6,407,159 5,873,209
14,281,964 14,617,218
20,689,123 20,490,427
86
2017
$ 3,748,965
398,262
12,456,655
7,126,349
2,836,429
781,092
235,546
185,852
27,769,150
14,095,860
41,865,010
181,197
342,083
1,463,576
2,609,811
127,997
98,382
338,718
2,147,065
7,308,829
13,781,748
21,090,577
2018
$ 3,421,223
404,443
12,061,033
6,882,186
2,884,339
866,435
243,666
399,291
27,162,616
14,594,309
41,756,925
214,000
376,322
1,470,248
2,732,908
120,942
134,716
154,497
522,574
5,726,207
14,168,934
19,895,141
Table 2
(Continued)
CITY OF PARIS, TEXAS Table 2
Changes in Net Assets/Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2009 2010 2011 2012
Net (Expense)/Revenue
Governmental Activities (18,537,885) (18,165,868) (18,286,062) (18,443,605)
Business-Type Activities 2,419,243 3,226,543 3,103,774 2,843,474
Total Primary Government,
Net Expense (16,118,642) (14,939,325) (15,182,288) (15,600,131)
General Revenues and Other Changes in Net Assets/Position
Governmental Activities:
Taxes
Property 7,794,381 7,853,487 7,620,281 7,619,472
Sales 6,441,260 5,843,494 6,033,469 5,993,859
Franchise 2,859,338 2,743,214 2,719,496 2,731,097
Hotel Occupancy 526,998 500,755 449,213 498,667
Investment Earnings 174,636 113,006 84,327 55,875
Grants, Donations and Miscellaneous 1,642,126
Capital Contributions 902,699 1,062,139 764,880 3,486,508
Loss on Sale of Capital Assets
Transfers
Total Governmental Activities 18,699,312 18,116,095 17,671,666 22,027,604
Business-Type Activities:
Investment Earnings 212,479 103,220 162,374 63,722
Contribution 628,090 728,317 434,500 303,910
Transfers (902,699) (1,062,139} (764,880) (3,486,508)
Total Business-Type Activities (62,130) (230,602) (168,006} (3,118,876)
Total Primary Government 18,637,182 17,885,493 17,503,660 18,908,728
Changes in Net Assets/Position
Governmental Activities 161,427 (49,773) (614,396) 3,583,999
Business-Type Activities 2,357,113 2,995,941 2,935,768 (275,402)
Total Primary Government $ 2,518,540 $ 2,946,168 $ 2,321,372 $ 3,308,597
87
$
Fiscal Year
2013 2014 2015 2016 2017 2018
(19,903,515) (19,943,305) {19,077,540) (21,494,370) (20,460,321) (21,436,409)
2,501,210 1,940,537 2,352,465 2,516,278 (314,112) (425,375)
{17,402,305) (18,002,768) (16,725,075) (18,978,092) (20,774,433) (21,861,784)
7,597,667 7,575,840 7,651,005 7,748,872 8,175,530 9,170,951
6,304,250 6,416,749 7,684,113 7,051,858 7,233,526 7,317,162
2,550,447 2,662,604 2,641,537 2,502,614 4,211,397 4,315,694
572,150 547,354 594,493 630,545 657,270 662,263
64,386 45,799 51,741 80,129 173,656 426,518
615,222 122,703 369,689 315,989 361,125 387,306
2,527,979 (10,682) 1,087,474 651,847
(57,026) (57,940)
1,579,100 382,794 610,955
20,232,101 17,360,367 20,080,052 20,503,928 21,195,298 22,832,909
(42,124) 83,206 77,787 291,131 315,872 380,393
550,978 101,000
(2,527,979) 10,682 {1,087,474) (1,579, 100) (382,794) (610,955)
(2,019,125) 194,888 (1,009,687) (1,287,969) (66,922) (230,562)
18,212,976 17,555,255 19,070,365 19,215,959 21,128,376 22,602,347
328,586 (2,582,938) 1,002,512 (990,442) 734,977 1,396,500
482,085 2,135,425 1,342,778 1,228,309 (381,034) (655,937)
810,671 $ (447,513) $ 2,345,290 $ 237,867 $ 353,943 $ 740,563
88
Table 2
(Continued)
CITY OF PARIS, TEXAS Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2009 2010 2011 (I) 2012 (I)
General Fund
Nonspendable $ 215,128 $ 214,932 $ 199,519 $ 218,117
Restricted
Unassigned 13,751,446 11,376,619 12,156,169 11,764,593
Total General Fund $ 13,966,574 $ 11,591,551 $ 12,355,688 $11,982,710
All Other Governmental Funds
Reserved $ 1,008,826 $ 5,540,873 $ $
Unreserved, Reported in:
Special Revenue Funds 792,271 781,230
Permanent Funds 84,365 86,564
Nonspendable 88,520 89,632
Restricted 3,870,043 5,332,339
Assigned 532,263 456,463
Unassigned
Total All Other Governmental Funds $ 1,885,462 $ 6,408,667 $ 4,490,826 $ 5,878,434
(1) The fund balance of All Other Governmental Funds is classified consistent
with recent pronouncements (GASB 54). Previous years have not been restated.
89
2013 (1) 2014 (1)
$ 271,292 $ 233,127
271,269.000
11,969,203 11,194,101
$ 12,240,495 $ 11,698,497
$ $
90,062 90,572
4,858,977 3,031,192
457,471 389,511
$ 5,406,510 $ 3,511,275
Fiscal Year
2015 (1) 2016 (1)
$ 294,776 $ 223,911
331,086 387,950
12,969,124 10,227,839
$ 13,594,986 $ 10,839,700
$ $
90,800 91,565
2,726,900 2,525,049
267,440 188,569
$ 3,085,140 $ 2,805,183
90
2017 (I)
$ 326,985
446,493
10,849,390
$ 11,622,868
$
92,347
12,009,532
82,042
57,705
$ 12,241,626
2018 (1)
$ 418,995
498,359
11,753,392
$ 12,670,746
$
93,689
10,991,000
299,013
$ 11,383,702
Table 3
(Continued)
CITY OF PARIS, TEXAS Table 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2009 2010 2011
REVENUES
Taxes $ 17,606,479 $ 16,941,815 $ 16,824,545
Licenses and Permits 171,906 88,935 112,142
Fines and Fees 554,424 526,668 501,601
Use of Money and Property 317,028 274,986 313,948
Public Safety 65,283 57,369 40,297
Sanitation 1,306,867 1,347,707 1,461,736
Health 2,583,958 2,621,420 2,578,496
Intergovernmental 1,575,080 1,736,611 1,768,322
Other 221,114 301,069 247,354
Total Revenues 24,402,139 23,896,580 23,848,441
EXPENDITURES
Current:
General Government 1,075,990 1,109,767 1,219,607
Finance 430,364 462,282 425,455
Public Safety 9,303,726 9,489,393 9,154,646
Public Works 5,591,689 5,509,576 7,459,432
Health Department 900,945 942,596 908,339
Emergency Medical Service 2,111,069 2,095,897 2,146,210
Library 616,148 642,830 630,977
Cox Field Airport 180,364 112,800 107,276
Other 2,360,244 1,468,366 1,545,147
Debt Service:
Interest 518,682 443,618 945,016
Principal 847,851 871,978 480,448
Bond Issuance Costs
Capital Outlay 808,089 2,666,238 815,623
Total Expenditures 24,745,161 25,815,341 25,838,176
Excess (Deficiency) of Revenues Over Expenditures (343,022) {1,918,761) (1,989,735)
Other Financing Sources (Uses):
Proceeds of Capital Leases
General Obligation Bonds Issued
Transfers In 3,359,644 5,338,879 1,176,462
Transfers Out (2,456,945) (4,276,740) (411,581)
Long-Term Debt Issued 3,005,000
Payment to Escrow Agent and Premium
Sale of General Capital Assets
Total Other Financing Sources (Uses) 902,699 4,067,139 764,881
Increase (Decrease) in Reserve for Inventory (36,283} (196) (15,414)
Net Changes in Fund Balances $ 523,394 $ 2,148,182 $ ( 1,240,268)
Debt Service as a Percentage ofNoncapital Expenditures 5.46% 5.68% 6.11%
91
2012 2013 2014
$16,822,577 $17,020,156 $17,194,419
145,792 154,923 386,775
550,496 624,609 586,429
210,476 142,620 138,629
1,468,917 1,463,210 1,472,278
2,818,196 2,453,270 2,111,439
1,858,092 2,069,494 1,603,165
271,709 317,981 169,261
24,146,255 24,246,263 23,662,395
1,029,702 1,197,486 1,153,686
473,719 393,526 407,443
9,659,131 9,462,148 9,712,876
5,757,456 6,646,804 6,507,603
955,930 1,043,502 916,260
2,302,247 2,132,692 2,127,225
632,515 632,040 707,716
150,848 153,182 97,778
1,434,177 1,560,051 1,548,753
1,080,200 379,241 311,919
424,730 1,185,622 1,226,543
2,649,513 2,407,415 1,332,959
26,550,168 27,193,709 26,050,761
(2,403,913) (2,947,446) (2,388,366)
5,100,935 3,938,899 1,782,291
(1,614,427) (1,410,920) (1,792,973)
4,505,000
(4,424,955)
72,108
3,486,508 2,680,132 (10,682)
18,599 53,175 (38,165)
$ 1,101,194 $ (214,139) $(2,437,213)
6.44% 6.74% 5.38%
Fiscal Year
2015 2016
$18,457,686 $ 17,976,072
220,696 152,016
573,953 515,147
137,030 173,004
1,462,810 1,474,874
2,383,355 2,519,387
1,662,824 1,096,630
224,463 386,853
25,122,817 24,293,983
1,076,798 1,301,401
404,567 400,665
10,206,584 11,125,560
5,861,079 5,556,359
8,672
2,240,853 2,366,673
692,290 717,395
102,539 110,330
1,641,714 1,771,889
280,733 254,304
1,077,610 991,899
1,920,359 4,474,952
25,513,798 29,071,427
(390,981) (4,777,444)
617,114 975,185
1,504,281 3,437,300
(416,807) (1,858,200)
95,098
1,799,686 2,554,285
61,649 (70,865)
$ 1,470,354 $ (2,294,024)
5.76% 5.07%
92
2017
$ 20,280,057
155,363
491,880
272,039
1,463,576
2,609,811
1,463,514
258,051
26,994,291
1,288,458
398,262
11,026,655
5,549,270
2,535,135
697,503
129,269
1,738,115
196,358
1,161,513
103,399
2,350,010
27,173,947
(179,656)
9,913,399
466,536
(83,742)
10,296,193
103,074
$ 10,219,611
5.47%
Table 4
(Continued)
2018
$ 21,447,857
197,920
495,708
561,234
1,470,248
2,614,504
677,072
346,789
27,811,332
1,180,280
404,443
10,850,538
5,356,374
2,670,131
736,513
112,562
1,716,365
447,294
1,580,682
4,410
3,564,942
28,624,534
(813,202)
190,000
994,335
(383,374)
800,961
40,517
$ 28,276
8.09%
CITY OF PARIS, TEXAS
Property Tax Levies and Collections ( 1)
Last Ten Fiscal Years
Unaudited
Collection
of Current
Year's
Fiscal Total Taxes During
Roll Year Tax Levy Fiscal Year
2008 2008-09 $ 7,837,300 $ 7,579,213
2009 2009-10 7,797,457 7,624,228
2010 2010-11 7,651,941 7,418,544
2011 2011-12 7,543,165 7,387,161
2012 2012-13 7,544,315 7,368,232
2013 2013-14 7,498,327 7,309,230
2014 2014-15 7,626,530 7,348,250
2015 2015-16 7,627,731 7,406,830
2016 2016-17 8,093,094 7,940,087
2017 2017-18 9,145,965 8,973,214
Source:
Lamar County Appraisal District
Note:
( 1) Taxes stated are for General Fund and Debt Service Funds.
(2) Penalty, interest, and attorney fees not included.
93
Percent
of Current
Levy
Collected
During
Fiscal Year
96.71%
97.78
96.95
97.93
97.67
97.48
96.35
97.10
98.11
98.11
Table 5
Delinquent
Tax Total
Collections Collections
$ 68,332 $ 7,647,545
66,691 7,690,919
57,409 7,475,953
7,387,161
110,036 7,478,268
119,430 7,428,660
111,210 7,459,460
215,544 7,622,374
116,317 8,056,404
62,442 9,035,656
Ratio
ofTotal
Collections Outstanding
To Total Delinquent
Tax Levy Taxes
97.58% $ 67,925
98.63 86,464
97.70 110,655
97.93 156,004
99.14 190,166
99.07 186,382
97.81 279,144
99.93 221,880
99.54 153,007
98.79 172,751
Ratio of
Delinquent
Taxes
To Total
Tax Levy
0.87%
1.11
1.45
2.07
2.52
2.48
3.66
2.91
1.89
1.89
94
Table 5
(Continued)
CITY OF PARIS, TEXAS Table 6
Property Tax Rates-All Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
City of Paris
M&O $ 0.43113 $ 0.42439 $ 0.41713 $ 0.41000 $ 0.41487 $ 0.39129 $ 0.40635 $ 0.42547 $ 0.42443 $ 0.44248
I & S 0.08887 0.09561 0.10287 0.11000 0.09620 0.11066 0.09560 0.07648 0.07752 0.10947
Total $ 0.52000 $ 0.52000 $ 0.52000 $ 0.52000 $ 0.51107 $ 0.50195 $ 0.50195 $ 0.50195 $ 0.50195 $ 0.55195
Lamar County
M&O $ 0.41430 $ 0.40360 $ 0.39420 $ 0.39990 $ 0.41850 $ 0.40580 $ 0.42640 $ 0.40920 $ 0.40660 $ 0.37550
I & S 0.01860 0.01900 0.01890 0.01930 0.02020 0.01930 0.01900 0.01830 0.01730 0.01880
Total $ 0.43290 $ 0.42260 $ 0.41310 $ 0.41920 $ 0.43870 $ 0.42510 $ 0.44540 $ 0.42750 $ 0.42390 $ 0.39430
Paris ISO
M&O $ 1.04000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ l.17000 $ 1.17000
I& S 0.40500 0.15500 0.25500 0.25500 0.28500 0.28500 0.28500 0.28500 0.28500 0.28500
Total $ 1.44500 $ 1.32500 $ 1.42500 $ 1.42500 $ 1.45500 $ 1.45500 $ 1.45500 $ 1.45500 $ 1.45500 $ 1.45500
Chisum ISO
M&O $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000
I& S 0.20000 0.18000 0.16000 0.16000 0.16000 0.14500 0.14678 0.14678 0.20650 0.19500
Total $ 1.24000 $ 1.22000 $ 1.20000 $ 1.20000 $ 1.20000 $ 1.18500 $ 1.18678 $ 1.18678 $ 1.24650 $ 1.23500
North Lamar ISO
M&O $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000
I&S 0.118110 0.10811 0.09650 0.08650 0.08150 0.07110 0.06750 0.06750
Total $ 1.15811 $ 1.14811 $ 1.13650 $ 1.12650 $ 1.12150 $ 1.11110 $ 1.10750 $ 1.10750 $ 1.04000 $ 1.04000
Paris Junior College
M&O $ 0.18740 $ 0.18500 $ 0.18974 $ 0.19000 $ 0.18700 $ 0.18660 $ 0.18660 $ 0.18750 $ 0.17730 $ 0.08500
l&S
Total $ 0.18740 $ 0.18500 $ 0.18974 $ 0.19000 $ 0.18700 $ 0.18660 $ 0.18660 $ 0.18750 $ 0.17730 $ 0.08500
95
Roll Year
2008 2008-09
2009 2009-10
2010 2010-11
2011 2011-12
2012 2012-13
2013 2013-14
2014 2014-15
2015 2015-16
2016 2016-17
2017 2017-18
Sources:
Lamar County Appraisal District
CITY OF PARIS, TEXAS
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Unaudited
Real Proeerty Personal Pro:eerty
Estimated Estimated
Assessed Actual Assessed Actual
Value Value Value Value
$ 999,644,811 $1,428,948,675 $486,833,180 $602,795,000
976,009,565 1,421,783,219 529,489,256 647,710,890
927,464,815 1,420,238, 161 551,247,563 622,482,077
918,495,080 1,402,956, 164 543,332,657 623,174,818
931,939,433 1,424,800,859 559,431,805 628,115,774
1,033,357,277 1,438,785,698 469,901,615 654,358,864
1,007,593,690 1,472,220,698 522,773,397 763,567,027
1,006,810,741 1,490,882,796 526,923,827 780,316,817
1,148,246,077 I, 725,298,577 479,151,390 720,199,051
1,206,992,530 1,773,796,952 474,754,769 697,701,527
96
Table 7
Total
Estimated
Assessed Actual
Exemptions Value Value
$ 545,265,684 $1,486,477,991 $2,031,743,675
563,995,288 1,505,498,821 2,069,494, I 09
564,007,862 1,478,712,378 2,042,720,238
564,303,245 1,461,827,737 2,026, 130,982
561,543,395 1,491,371,238 2,052,916,633
589,885,670 1,503,258,892 2,093,144,562
705,420,637 1,530,367,087 2,235,787,725
737,465,045 1,533,734,568 2,271,199,613
818, 100, 161 1,627,397,467 2,445,497,628
789,751,180 1,681,747,299 2,471,498,479
97
Assessed
Value as a
Percentage of
Actual Value
73.16%
72.75
72.39
72.15
72.65
71.82
68.45
67.53
66.55
68.04
Total Direct
Tax Rate
0.52000
0.52000
0.52000
0.52000
0.52000
0.50195
0.50195
0.50195
0.50195
0.55195
Table 7
(Continued)
Taxpayer
CITY OF PARIS, TEXAS
Principal Property Taxpayers
September 30, 2018 and 2009
Unaudited
TyPe of Business
La Frontera Holdings LLC {Lamar Power Partners) Electric Utility
Campbell Soup Company -A Food Manufacturer
Kimberly-Clark Corporation -A Disposable Diapers
Oncor Electric Delivery Electric Utility
Essent PRMC, LP A Hospital
Huhtamaki Inc Packaging Mfg.
Silgan Can Company Can Manufacturer
Potter Industries, LLP Glass Manufacturer
Alpha Lake Limited Shopping Center
Paris Generation, LP Electric Utility
Campbell Soup Company -B Warehouse
Kimberly-Clark Corporation -B Warehouse
Essent PRMC, LP -B Clinics
Totals
Source:
Lamar County Appraisal District
98
Table 8
2018
Percentage
of Total
Taxable Freeze Adjusted
Assessed Taxable
Value Rank Assessed Value
$ 334,077,700 I 20.79%
97,815,034 2 6.09%
96,931,715 3 6.03%
24,023,400 4 1.49%
23,067,180 5 1.44%
13,221,309 6 0.82%
12,109,330 7 0.75%
11,325,644 8 0.70%
10,596,530 9 0.66%
21,701,150 IO 1.35%
$ 644,868,992 40.12%
2009
Taxable
Assessed
Value Rank
$ 225,707,100 1
46,979,380 3
114,657,809 2
20,880,950 8
36,065,360 4
23,127,200 7
24,952,240 5
24,778,414 6
15,268,470 9
14,905,790 10
$ 547,322,713
Percentage
ofTotal
Taxable
Assessed Value
16.06%
3.34%
8.16%
1.49%
2.57%
1.65%
1.78%
1.76%
1.09%
1.06%
38.96%
99
Table 8
(Continued)
CITY OF PARIS, TEXAS Table 9
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Unaudited
Ratio
ofNet Net
General General
Bonded Bonded
Taxable Gross Less Debt Debt To Debt
Fiscal Estimated Assessed General Service Net General Assessed Per
Year Population Value Bonded Debt Funds Bonded Debt Value Capita
2008-09 26,972 $ 1,486,477,991 $ 10,680,400 $ 712,570 $ 9,967,830 0.67 $ 369.56
2009-10 27,092 1,505,498,821 12,766,600 2,628,654 10,137,946 0.67 374.20
2010-11 25,337 1,478,712,378 11,830,800 2,706,272 9,124,528 0.62 360.13
2011-12 25,337 1,461,827,737 10,750,600 2,797,611 7,952,989 0.54 313.89
2012-13 25,082 1,491,371,238 9,485,800 2,318,294 7,167,506 0.48 285.76
2013-14 25,171 1,503,258,892 8,310,000 1,432,199 6,877,801 0.46 273.24
2014-15 25,200 1,519,380,526 7,285,000 1,117,793 6,167,207 0.41 244.73
2015-16 25,400 1,627,397,467 6,442,624 1,087,664 5,354,960 0.33 210.83
2016-17 25,425 1,681,747,299 15,461,503 898,022 14,563,481 0.87 572.80
2017-18 25,450 I, 732,236,641 14,306,032 1,073,917 13,232,115 0.76 519.93
100
Fiscal
Year
2009 $
2010
2011
2012
2013
2014
2015
2016
2017
2018
Note:
CITY OF PARIS, TEXAS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited
Governmental Activities Business-Type Activities
General
Obligation Capital Water and Capital
Bonds Leases Other Sewer Bonds Leases
10,680,400 $ $ 17,994 $ 17,914,600 $ $
12,766,600 9,216 14,638,400
11,830,800 11,254,200
10,750,600 7,764,400
9,485,800 43,239,200
8,310,000 40,795,000
7,285,000 617,114 38,545,000
6,442,624 1,538,459 37,997,715
15,461,503 1,397,929 45,175,173
14,306,032 1,253,181 44,264,589
(I) See Table 14 for personal income and population data
101
Table 10
Other
514,590
480,909
Total Percentage
Primary of Personal
Government Income (2)
$ 29,127,584 1.91%
27,895,125 1.76
23,085,000 1.39
18,515,000 1.06
52,725,000 2.92
49,105,000 2.64
46,447,114 2.49
45,978,798 2.47
62,034,605 3.23
59,823,802 2.91
Per
Capita
$ 1,080
1,030
911
733
2,081
1,951
1,843
1,810
2,440
2,304
102
Table 10
(Continued)
Taxing Jurisdiction
Lamar County
Paris Independent School District
Chisum Independent School District
North Lamar Independent School District
Subtotal Overlapping Debt
City of Paris
Total Direct and Overlapping Debt
CITY OF PARIS, TEXAS
Direct and Overlapping
Governmental Activities Debt
September 30, 2018
Unaudited
General
Obligation
Bonded Debt
Outstanding
$ 5,504,060
46,175,000
29,321,027
81,000,087
15,344,470
$ 96,344,557
Per Capita Direct and Overlapping Funded Debt $ 3,786
Percent
Applicable
to
Government
62.75%
49.30
47.75
47.12
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
Table 11
Amount
Applicable
to
Government
$ 3,453,798
22,764,275
14,000,790
40,218,863
7,285,000
$ 47,503,863
$ 1,868
Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne
by the property taxpayers of the City of Paris. This process recognizes that, when considering the
government's ability to issue and repay long-term debt, the entire debt burden borne by the property
taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
103
CITY OF PARIS, TEXAS
Legal Debt Margin Information
September 30, 2018
Unaudited
Table 12
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 $.5 519 5 per $100
valuation for the fiscal year ended September 3 0, 2018.
104
CITY OF PARIS, TEXAS
Revenue Pledged Coverage -Water and Sewer Revenue Bonds
Last Ten Fiscal Years
Unaudited
Net Revenue Average Remaining
Available Debt Service Reguirements
Fiscal Gross Operating For Debt
Year Revenues* Expenses** Service Principal Interest Total***
2008-09 $ 13,829,192 $7,244,274 $6,584,918 $1,628,600 $341,402 $1,970,002
2009-10 13,753,706 6,732,799 7,020,907 1,463,840 173,848 1,637,688
2010-11 13,960,511 7,201,866 6,758,645
2011-12 13,916,163 7,445,178 6,470,985
2012-13 13,963,624 7,578,446 6,385,178
2013-14 13,964,534 7,342,744 6,621,790
2014-15 14,359,751 7,248,302 7,111,449
2015-16 14,894,489 7,834,768 7,059,721
2016-17 14,097,620 9,902,805 4,194,815
2017-18 14,549,327 9,922,088 4,627,239
Notes:
(l)* Gross Revenues= Operating and Nonoperating Revenue ofthe Water and Sewer Fund
Excluding Contribution Revenue and Premium Amortization
(2)** Operating Expenses Excluding Depreciation
(3)*** Agent Fees Not Included
(4) As of 2010-11, the City no longer had revenue bonds outstanding; however, water and sewer
general obligation debt are expected to be paid out of system revenues and not ad valorem taxes.
105
Table 13
Percent
Coverage
3.34%
4.29
NIA
NIA
NIA
NIA
NIA
NIA
NIA
NIA
CITY OF PARIS, TEXAS
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Paris, TX
Paris, TX Micropolitan Paris, TX
Paris, TX Micropolitan Service Area Micropolitan
Micropolitan Service Area Per Capita Service Area
Calendar Service Area Personal Personal Median School
Year Population Income Income Age Enrollments (1)
2008 $ 49,286 $ 1,451,000,000 $ 29,440 37.2
2009 49,027 1,522,000,000 31,044 37.9
2010 49,793 1,585,028,000 31,780 39.7
2011 50,074 1,657,062,000 33,092 39.9
2012 49,811 1,750,363,000 35,140 39.0
2013 49,426 1,804,479,000 36,509 37.1
2014 49,523 1,859,083,000 37,540 40.4
2015 49,440 1,857,879,000 37,578 40.5
2016 49,791 1,917,848,000 38,518 40.6
2017 49,587 2,013, 704,000 40,610 40.6
( 1) Includes Paris Independent School District, North Lamar Independent School District,
Chisum Independent School District, and Paris Junior College
Sources:
Paris Independent School District -3,804
North Lamar Independent School District -2,422
Chisum Independent School District -952
Paris Junior College -5,580
Chamber of Commerce
Bureau of Economic Analysis
106
13,156
13,761
13,428
12,865
12,671
12,377
12,414
12,121
12,180
12,758
Table 14
Percent
Unemployment
Rate
5.5
8.4
9.7
8.5
7.9
7.6
6.1
5.4
4.9
3.5
Taxpayer
Paris Regional Medical Center
Kimberly-Clark Corporation
Campbell Soup Company
Turner Industries
J. Skinner Baking Company
TCIM
We Pack Logistics, Inc.
RK Hall Construction LTD
Huhtamaki
Silgan Can Company
Totals
Source:
Chamber of Commerce
U.S. Department of Labor
PEDC
Additional Information:
Public Employers:
Paris ISO
North Lamar ISO
City of Paris
Paris Junior College
Chisum ISO
Lamar County
Total
Notes:
(1) 600 as Sara Lee
(2) 176 as Paris Packaging
(3) 250 as Buster Paving Co.
620
475
331
205
138
194
1,963
CITY OF PARIS, TEXAS
Principal Employers
Fiscal Years End 2018 and 2009
Unaudited
September 30, 2018
Percentage
ofTotal
City
Employees Rank Employment
1000 4.83%
850 2 4.10%
800 3 3.86%
700 4 3.38%
600 5 2.90%
550 6 2.65%
300 7 1.45%
250 8 1.21%
176 9 0.85%
90 10 0.43%
52316 25.66%
107
Table 15
September 30, 2009
Percentage
of Total
City
Employees Rank Employment
1,000 1 6.19%
850 2 5.26%
800 3 4.95%
700 4 4.33%
600 5 (1) 3.71%
550 6 3.40%
300 7 1.86%
250 8 (3) 1.55%
176 9 (2) 1.09%
0.00%
5z226 32.34%
GOVERNMENT:
Date of Incorporation -1836
CITY OF PARIS, TEXAS
Operating Indicators by Function
Last Ten Fiscal Years
Unaudited
Current Charter -Adopted November 2, 1948
Fiscal Year
2009 2010 2011
FACILITIES:
Airports:
Number of Airports
Fire Protection:
Number of Stations 3 3 3
Number of Fire Hydrants l, 173 1,189 1,222
Number of Employees ( certified) 48 51 51
Employees Per 1,000 Population l.77 1.88 2.01
Libraries:
Number of Libraries I
Number of Volumes 97,243 98,895 90,524
Circularization of Materials 162,957 159,966 144,830
Circulation Per Capita 6.04 5.90 5.71
Library Cards in Force 12,011 15,941 13,461
Police Protection:
Number of Stations
Number of Employees ( certified) 61 62 62
Employees Per 1,000 Population 2.26 2.28 2.44
Parks and Recreation:
Park Acres Developed 87 87 87
Park Acres Undeveloped 221 221 221
City Parks 24 25 24
Streets:
Paved Lanes -Miles 160 171 160
Unpaved Streets -Miles 3 3 3
WATER AND SEWER UTILITY:
Average Daily Water Consumption -Gallons 10,185,500 10,069,000 11,687,000
Maximum Day's Water Consumption -Gallons 20,394,000 21,311,000 21,900,000
Annual Water Consumption -Gallons 3,624,429,000 3,675,218,000 4,611,321,000
Water Mains -Miles 184 183 183
Water Connections -Metered 9,905 10,076 9,834
Sewer Mains -Miles 190 197 188
Area Miles 39.18 39.18 39.18
Number of Full-Time Employees 322 322 324
108
Table 16
2012
3
1,217
51
2.01
I
85,357
136,286
5.37
14,563
1
62
2.44
87
221
24
160
3
11,560,000
21,010,000
4,234,583,000
183
9,966
188
39.18
325
Fiscal Year
2013 2014 2015 2016
3 3 3 3
1,240 1,262 1,299 1,313
51 51 51 51
2.01 2.03 2.02 2.01
1 1 1
82,878 82,832 81,893 84,162
127,053 127,002 127,824 119,265
5.01 5.06 5.07 4.69
14,896 16,519 15,507 13,551
1 1 1
62 60 60 60
2.44 2.39 2.38 2.36
87 87 87 87
221 221 221 221
24 24 24 24
160 160 160 171
3 3 3 3
11,400,000 11,472,271 11,006,721 10,701,294
20,764,000 17,201,000 20,662,000 17,983,000
4,177,171,000 4,187,379,000 4,017,453,000 3,977,369,000
183 183 185 185
9,816 9,819 10,024 9,995
188 189 209 209
39.18 39.18 39.18 38.02
325 326.5 327 328.0
109
2017
3
1333
51
2.00
I
85,630
114,611
4.5
14,312
60
2.35
87
221
24
171
3
13,241,942
18,493,000
4,833,309,000
185
9,766
209
38.02
330
Table 16
(Continued)
2018
3
1357
51
2.00
1
72,288
103,389
4.06
10,441
1
57
2.24
87
221
24
171
3
10,759,444
18,137,000
3,927,197,000
185
9,698
209
38.02
331.5
CITY OF PARIS, TEXAS Table 17
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2009 2010 2011 2012
Function:
Public Safety
Police
Stations
Patrol Units 10 IO 10 10
Fire Stations 3 3 3 3
Sanitation
Collection Trucks 8 8 8 7
Highways and Streets
Streets (miles) 160 174 174 163
Streetlights 2,217 2,216 2,220 2,220
Traffic Signals*
Culture and Recreation
Park Acreage 308 308 286 286
Swimming Pools -Municipal 1 1
Tennis Courts 14 14 14 14
Community Centers 1
Water
Water Mains (miles) 184 184 183 183
Fire Hydrants 1,173 1,189 1,222 1,217
Maximum Daily Capacity 36,000 36,000 36,000 36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles) 190 190 189 189
Maximum Daily Treatment Capacity 7,250 7,250 7,250 7,250
(thousands of gallons)
Source: Various City Departments
* City has none. All inside the City limits belong to the State of Texas.
110
2013 2014
10 10
3 3
6 6
163 163
2,223 2,225
286 286
1
14 14
1
183 183
1,240 1,262
36,000 36,000
189 189
7,250 7,250
Fiscal Year
2015 2016
1
10 10
3 3
6 6
174 174
2,228 2,228
286 286
14 14
185 185
1,299 1,313
36,000 36,000
209 209
7,250 7,250
111
2017
1
10
3
6
174
2,230
286
14
1
185
1,333
36,000
209
7,250
2018
1
10
3
6
174
2,231
286
14
185
1,357
36,000
209
7,250
Table 17
(Continued)
CITY OF PARIS, TEXAS Table 18
Building Permits at Market Value
Last Ten Fiscal Years
Unaudited
Commercial Residential Total
Property Value Commercial Construction Residential Construction Construction
Fiscal Year Units Value Units Value Value
2009 17 $ 51,951,894 IO $ 1,447,675 $ 53,399,569
2010 11 12,228,169 10 1,276,918 13,505,087
2011 9 10,025,486 7 569,500 10,594,986
2012 13 7,836,610 IO 760,000 8,596,610
2013 15 9,653,725 24 2,171,613 11,825,338
2014 IO 5,336,150 16 1,924,218 7,260,368
2015 14 61,243,705 IO 823,430 62,067,135
2016 59 7,838,210 44 3,252,018 11,090,228
2017 18 12,653,657 21 3,914,081 16,567,738
2018 33 39,273,020 31 4,101,770 43,374,790
112
CITY OF PARIS, TEXAS Table 19
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2009 2010 2011 2012
Function:
Manager 2.0 2.0 2.0 3.0
Attorney 4.0 4.0 4.0 4.0
Court Clerk 3.0 4.0 4.0 4.0
City Clerk 3.0 3.0 3.0 3.0
Finance 5.5 5.5 6.0 5.0
Police* 84.0 84.0 84.5 85.5
Fire 52.0 52.0 52.0 52.0
Community Development 5.5 5.5 7.0 7.5
Engineering 6.5 6.5 6.5 6.5
Public Works 3.0 3.0 3.0 3.0
Parks&ROW 9.5 9.5 9.0 10.0
Sanitation 12.0 12.0 12.0 12.0
Streets 15.0 15.0 15.0 15.0
Traffic & Lighting 2.0 2.0 2.0 2.0
Garage 6.0 6.0 5.5 5.5
EMS 26.0 26.0 26.0 26.0
Library 10.5 10.5 10.5 10.5
Warehouse 2.0 2.0 2.0 2.0
Water Billing 8.0 8.0 8.0 8.0
Water Treatment Plant 15.5 15.5 15.5 15.5
Water Distribution 11.5 11.5 11.5 10.5
Waste Water Collection 7.5 7.5 7.5 7.5
Waste Water Treatment Plant 22.5 22.5 22.5 22.5
Lift Stations 3.0 3.0 3.0 3.0
Information Technology 2.0 2.0 2.0 2.0
Totals 322.5 322.5 324.0 325.5
* Includes related grant employees.
Seasonal employees not included.
113
Fiscal Year
2013 2014 2015
3.0 3.0 3.0
4.0 4.0 4.0
4.0 4.0 4.0
3.0 2.0 2.0
5.0 5.0 5.0
85.5 83.0 83.0
52.0 57.0 57.0
7.5 5.5 4.5
6.5 7.5 7.5
3.0 3.0 2.0
10.0 10.0 11.0
12.0 12.0 12.0
15.0 15.0 15.0
2.0 2.0 2.0
5.5 5.5 5.5
26.0 26.0 26.0
10.5 10.5 10.5
2.0 2.0 2.0
8.0 8.0 8.0
15.5 15.5 15.5
10.5 11.0 11.0
7.5 7.5 8.5
22.5 22.5 22.5
3.0 3.0 3.0
2.0 2.0 2.5
325.5 326.5 327.0
114
2016 2017
3.0 3.0
4.0 4.0
4.0 4.0
2.0 2.0
5.0 5.0
83.0 83.0
57.0 58.0
4.5 4.5
7.5 7.5
2.0 2.0
11.0 12.0
12.0 12.0
15.0 15.0
2.0 2.0
5.5 5.5
26.0 26.0
10.5 10.5
2.0 2.0
8.0 8.0
16.5 16.5
11.0 11.0
8.5 8.5
22.5 22.5
3.0 3.0
2.5 2.5
328.0 330.0
2018
3.0
2.0
4.0
2.0
5.0
83.5
58.0
4.0
6.0
3.0
12.0
11.0
17.0
2.0
6.0
26.0
10.5
2.0
8.0
16.5
12.5
8.5
22.5
3.0
3.5
331.5
Table 19
(Continued)
CONTINUING DISCLOSURE INFORMATION
(UNAUDITED)
CONTINUING DISCLOSURE INFORMATION FOR
CITY OF PARIS, TEXAS
ASSESSED VALUATION
2018-2019 Actual Market Value of Taxable Property (100% of Actual)
Less Exemptions:
Local, Optional Over-65 and/or Disabled Homestead Exemptions
Disabled and Deceased Veterans' Exemptions
Productivity Loss
Personal Use of Business Vehicle
Freeport
Pollution Control / Solar
Abatement Loss
Cap Loss ( 10%)
Historical / Other
Totally Exempt Property
Total Exemptions
2018-2019 Net Taxable Assessed Valuation
Frozen Taxable Value and Transfer Adjustment
Freeze Adjusted Net Taxable Assessed Valuation
Source: Lamar County Appraisal District and the Issuer.
GENERAL OBLIGATION BONDED DEBT PRINCIPAL
General Obligation Debt Principal Outstanding: (As of September 30, 2018)
General Obligation Refunding Bonds, Series 2010
Combination Tax and Revenue Certificates of Obligation, Series 2010
General Obligation Refunding Bonds, Series 2012
Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB)
General Obligation Bonds, Series 2013
General Obligation Bonds, Series 2016
General Obligation Bonds, Series 2017
General Obligation Bonds, Series 2018
Total Gross General Obligation Debt Principal Outstanding:
Less: Self-Supporting General Obligation Debt Principal
General Obligation Refunding Bonds, Series 2010 (62% WS)
$ 44,697,442
7,842,734
19,317,000
351,810
80,148,183
65,489,258
273,133,765
3,848,691
11,518,110
317,188,497
Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB) (100% WS)
General Obligation Bonds, Series 2013 (100% WS)
General Obligation Bonds, Series 2016 (100% WS)
General Obligation Bonds, Series 2018 (86% WS)
Total Self-Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds:
Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds:
General Obligation Interest and Sinking Fund Balance as of September 30, 201
Ratio of Gross General Obligation Debt Principal to 2018-2019 Freeze Adjusted Net Taxable Assessed Valuation
Ratio ofNet General Obligation Debt Principal to 2018-2019 Freeze Adjusted Net Taxable Assessed Valuation
2016-2017 Freeze Adjusted Net Taxable Assessed Valuation
Population: 1980-25,498; 1990 -24,699; 2000-25,898; 2010 -25,171 Current (Estimate)
Per Capita 2018-2019 Freeze Adjusted Net Taxable Assessed Valuation
Per Capita Gross General Obligation Debt Principal
Per Capita Net General Obligation Debt Principal
115
TABLE 1
$ 2,555,772,131
823,535,490
1,732,236,641
(125,233,571)
$ 1,607,003,070
TABLE2
$ 2,280,000
2,180,000
1,570,000
2,150,000
30,065,000
8,400,000
9,340,000
1,390,000
57,375,000
1,410,000
2,150,000
30,065,000
8,400,000
1,200,000
43,225,000
$ 14,150,000
$ 1,073,917
3.57%
0.88%
$ 1,607,003,070
25,450
$ 63,144
$ 2,254
$ 556
CLASSIFICATION OF ASSESSED V ALUATI0N<11> TABLE3
%or %of %of %or %of
Category 2018-2019 Total 2017-2018 Total 2016-2017 Total 2015-2016 Total 2014-2015 Total
Real, Residential, Single-Family $ 518,229,379 20.28% $ 513,053,546 20.51% $ 492,321,832 19.93% $ 480,226,542 20.93% $ 470,196,966 20.83%
Real, Residential, Multi-Family 58,124,577 2.27 55,673,247 2.22 53,990,547 2.18 53,843,387 2.34 52,669,735 2.33
Real, Vacant Lots/Tracts 29,816,535 1.17 29,663,525 1.19 30,536,814 1.24 28,523,324 1.24 17,374,401 0.77
Real, Acreage (Land Only) 20,248,490 0.79 20,285,840 0.81 38,531,048 1.56 39,756,598 1.73 38,581,158 1.71
Fann & Ranch Improvements 18,823,998 0.74 18,316,868 0.73 337,570 0.01 423,770 0.02 413,500 0.02
Real, Commercial 287,273,575 11.24 288,609,812 11.53 281,898,938 11.40 279,980,115 12.19 280,408,794 12.42
Real Industrial 594,509,050 23.26 594,247,570 23.74 566,417,810 22.91 466,395,690 20.31 475,970,232 21.08
Real & Tangible, Personal Utilities 42,946,270 1.68 42,243,760 1.69 39,254,700 1.59 40,297,180 1.75 36,804,620 1.63
Tangible Personal, Commercial 138,781,040 5.43 138,468,717 5.53 139,533,387 5.64 131,778,067 5.74 132,126,257 5.85
Tangible Personal, Industrial 499,291,590 19.54 475,659,420 19.01 498,480,500 20.17 450,783,530 19.63 434,917,430 19.26
Tangible Personal, Mobile Homes 719,810 O.o3 768,990 0.03 786,850 0.03 751,440 0.03 705,510 0.03
Residential / Special, Inventory 18,409,010 0.72 18,382,080 0.73 18,576,040 0.75 16,976,540 0.74 15,346,780 0.68
Totally Exempt Property 328,598,807 12.86 307,256,120 12.28 3 11,327,306 12.59 306,675,207 13.35 302,286,562 13.39
Total Market Value 2,555,772,131 100.00% 2,502,629,495 100.00% 2,471,993,342 100.00% 2,296,411,390 100.00% 2,257,801,945 100.00%
Less Exemptions:
Productivity Loss 19,317,000 19,378,050 19,896,755 21,114,465 20,638,320
Cap Loss ( I 0%) 3,848,691 6,410,256 6,598,959 4,097,312 1,375,900
Local, Optional Over-65/Disabled 44,697,442 45,466,649 46,662,768 45,146,544 44,943,985
Disabled and Deceased Veterans' 7,842,734 7,810,386 7,395,996 6,570,475 6,036.649
Exempt Property 317,188,497 295,991,820 310,950,536 306,021,687 302,039,162
Freeport 80,148,183 89,590,207 109,717,826 112,530,666 115,052,946
Pollution Control / Solar 65,489,258 67,165,339 61,792,647 46,002,535 46,097,383
Tax Abatement Loss 273,133,765 271,984,849 280,503,879 219,967,287 190,473,730
Personal Use of Business Vehicle 351,810 378,570 376,770 653,520 247,400
Other/ Historical 11,518,110 11,363,360 699,739 572,331 529,382
Total Exemptions 823,535,490 815,539,486 844,595,875 762,676,822 727,434,857
Net Taxable Assessed Valuation l, 732,236,641 1,687,090,009 1,627,397,467 1,533,734,568 1,530,367,088
Freeze Taxable & Transfer Adjustment (125,233,571) (125,125,367) (117,126,272) (114,701,909) (108,151,971)
Freeze Adjusted Net Taxable
Assessed Valuation $ 1,607,003,070 $ 1,561,964,642 $ 1,510,271.195 $ 1,419,032,659 $ 1.422,215,117
(a} Values shown in this table are Certffied Values as of July. Values may chanl{e durinK the tax year due to various supplements and protests.
Valuations reported on a different date may not match those shown on this table.
Source: Lamar County Appraisal District and the Issuer.
116
PRINCIPAL TAXPAYERS 2018-2019
Name
La Frontera Holdings LLC
Campbell Soup
Kimberly Clark Corporation
Oncor Electric Delivery Company
Essent PRMC LP
Huhtamaki Inc.
Silgan Containers
Potter Industries, LLC
Alpha Lake LTD
Paris Generation, LP
Total
Type of Property
Electric Utility
Food Manufacturing
Disposable Diaper Mfg.
Utility
Health Care Services/Hospital
Packaging Manufacturing
Manufacturing
Glass Manufacturer
Shopping Center
Utility
Based on a 2018 Freeze Adjusted Net Taxable Assessed Valuation of
Source: Lamar County Appraisal District
PROPERTY TAX RA TES AND COLLECTIONS
Tax Net Taxable Tax Tax
Year Assessed Valuation (a) Rate Le!l'.
2008 1,507,138,018 0.52000 7,837,300
2009 1,405,294,035 0.52000 7,797,457
2010 1,380,460,473 0.52000 7,651,941
2011 1,359,521,473 0.52000 7,543,165
2012 1,385,188,151 0.51107 7,544,315
2013 1,493,839,431 0.50195 7,498,327
2014 1,519,380,525 0.50195 7,626,530
2015 1,607,003,070 0.50195 7,627,731
2016 1,510,271,195 0.50195 8,093,094
2017 1,556,621,932 0.55195 9,145,965
2018 Net Taxable
Assessed Valuation
$ 334,077,700
97,815,034
96,931,715
24,023,400
23,067,180
13,221,309
12,109,330
11,325,644
10,596,530
21,701,150
$ 644,868,992
$ I,607 ,003,070
% Collections
Current
96.71
97.78
96.95
97.93
97.67
97.48
96.35
97.10
98.11 (b)
98.11
Total
97.44
98.43
98.38
99.41
99.22
100.03
99.17
99.90
99.52
99.51
(b)
TABLE4
%of
Total 2018
Assessed
Valuation
20.82%
5.65
5.66
1.54
l.65
0.61
0.64
0.68
1.15
38.99%
TABLES
Year
Ended
9-30-09
9-30-10
9-30-11
9-30-12
9-30-13
9-30-14
9-30-15
9-30-16
9-30-17
9-30-18
Note: A/tl,ougl, "Total" tax collection percentages in tl,is table include delinquent tax collections, tl,ey are allocated to tJ,e year tltey were
originally levied instead oftl,eyear in wJ,iclt tJ,ey were collected.
fa/ Certified Values may change during the tax year due to various supplements and protests, and valuations reported on a different date may not
match those shown on this table.
Financial Report. Valuations for tax years 2009-2018 represent Free:e Adjusted Net Taxable Valuations.
fbJ Current Fiscal Year collections are as of September 30, 2018 (Unaudited).
Source: The Lamar County Appraisal District, the City's 2018 Comprehensive Annual Financial Report and additional information from the City.
TAX RATE DISTRIBUTION TABLE6
2018-19 2017-18 2016-17 2015-16 2014-15 2013-14
General Fund $ 0.43831 $0.44248 $ 0.42440 $ 0.40635 $ 0.40635 $ 0.39129
I & S Fund 0.11364 0.10947 0.07752 0.09560 0.09560 0.11066
TOTAL $ 0.55195 $0.55195 $ 0.50192 $ 0.50195 $ 0.50195 $ 0.50195
Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District.
117
MUNICIPAL SALES TAX TABLE7
The Issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to a property tax relief
and/or an economic and industrial development tax. The voters of the City approved the imposition of a 1/4 cent additional sales tax to be used
for property tax reduction and a 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began on October 1,
1993, and the City received its first payment in December, 1993. Collections on a calendar year basis are as follows:
City Collections as ($) Equivalent of
Calendar Total 1.00% 0.25% % of Ad Valorem Ad Valorem 0.25%
Year Collected Ci!I Pro~ Tax Red Tax Levr Tax Rate EDC
2006 $ 6,601,772 $ 4,401,182 $ 1,100,295 71.73% $0.50 $ 1,100,295
2007 6,628,611 4,419,074 l, 104,769 69.61 0.41 1,104,769
2008 7,051,372 4,700,915 1,175,229 73.89 0.41 1,175,229
2009 7,591,224 5,060,816 1,265,204 80.72 0.42 1,265,204
2010 7,029,392 4,686,262 1,171,565 75.12 0.39 1,171,565
2011 7,202,519 4,801,679 1,200,420 78.44 0.41 1,200,420
2012 7,268,103 4,845,402 1,211,351 80.29 0.42 1,211,351
2013 7,624,480 5,082,987 1,270,747 84.22 0.43 1,270,747
2014 8,786,209 * 5,857,473 1,464,368 97.65 0.49 1,464,368
2015 8,173,696 5,449,131 1,362,283 89.3 0.45 1,362,283
2016 8,472,647 5,648,431 1,412,108 92.56 0.46 1,412,108
2017 8,689,014 5,792,676 1,448,169 89.47 0.45 1,448,169
2018 8,827,668 5,885,112 1,471,278 90.74 0.50 1,471,278
2019 2,205,737 (a) 1,470,491 367,623 19.50 0.11 367,623
(a) Current year collections are/or January 2019 through February 2019.
* Sales taxes increased from the prior year due to a one time collection of an amount due from a prior period. This collection alone would
have provided the City a 13.50% increase in sales taxes. The remaining increase is consistent with the expected sales tax revenues due to
the recovering local economy.
Source: State Comptroller of Public Accounts Website.
118
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
AND ANALYSIS OF CHANGES IN FUND BALANCES TABLES
Fiscal Year Ended Se(!tember 30
2018 2017 2016 2015 2014
Revenues:
Ad Valorem Taxes $ 7,357,425 $ 6,933,981 $ 6,622,742 $ 6,122,949 $ 5,922,165
Sales Taxes 7,317,162 7,233,526 7,051,858 7,684,113 6,416,749
Franchise Tax 4,315,694 4,211,397 2,502,614 2,641,537 2,662,604
Hotel Occupancy Taxes 662,263 657,270 630,545 594,493 555,141
Licenses and Permits 197,920 155,363 152,016 220,696 108,943
Fines and Fees 446,670 449,008 498,164 528,433 586,429
Investment Earnings 329,365 206,551 141,134 122,264 119,847
Sanitation 1,470,248 1,463,576 1,474,874 1,462,810 1,472,278
Health 2,614,504 2,609,81 I 2,519,387 2,383,355 2,111,439
Intergovernmental Revenue 677,072 1,463,514 705,786 1,033,512 I, 128,989
Other Revenues 341,330 253,679 377,469 218,616 1662021
Total Revenues 25,729,653 25,637,676 22,676,589 23,012,778 21 2250,605
Expenditures:
Current
General Government 1,541,274 1,666,051 1,687,660 1,463,624 1,528,924
Finance
Public Safety 10,884,241 10,963,989 I 1,037,399 10,190,716 9,703,311
Public Works 5,356,374 6,415,221 5,199,269 5,3 I 1,538 6,218,485
Health 2,668,477 2,532,665 2,351,220 2,240,853 2,127,225
Culture and Recreation 734,826 693,078 688,258 687,923 685,970
Library Service
Cox Field Airport 112,562 134,705 I 10,330
Other 1,716,365 1,743,614 1,771,889 1,744,253 1,646,531
Capital Outlay
General Government 10,100 268,397 40,375
Public Safety 168,163 178,453 1,096,587 856,859 398,186
Public Works 612,947 248,452 952,651 580,152 655,750
Health 554,083 149,850 176,386 161,756 165,765
Cox Field Airport 37,275
Debt Service 186,690 186,690 72,353
Other 42,187 9,680 6,109
Total Expenditures 24,625,564 24,912,768 25,422,079 23,284,158 232130,147
Excess (Deficit) of Revenues
Over Expenditures 1,104,089 724,908 {2,745,490} {271 2380} {1,879,542}
Other Financing Sources (Uses):
Capital Lease 975,185 617,114
Operating Transfers In 124,968 1,633,000 1,497,286 1,579,000
Operating Transfers Out (383,374) (44,814) (1,806,200) (13,178) (203,291)
Sale of Capital Assets 4,998
Total Other Financing Sources (Uses): (258,406} (44,814} 801,985 2,106,220 1,3751709
Excess of Revenues and Other Sources
Over Expenditures and Other Uses 845,683 680,094 (1,943,505) 1,834,840 (503,833)
Fund Balance -Beginning of Year 11,622,868 10,839,700 13,594,986 I 1,698,497 12,240,495
Increase (Decrease) in Reserve for Inventory 40,517 103,074 (70,865) 61,649 (38,165)
Prior Period A4justment 161,678 !740,916}
Fund Balance -End of Year $ 12.670.746 $ 11.622.868 ~ 10.839.700 $ 13:594:986 ~ 11:698=497
(Q) Restated.
Source: The Issuer's Comprehensive Annual Financial Reports.
I 19
CONDENSED WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT
Fiscal Year Ended Se(!tember 30
2018 (Unaudited) 2017 2016 2015
Operating Revenues (a)
Total Revenues $ 14,684,911 $ 14,236,117 $ 15,053,698 $ 14,284,506
Expenses (b) 9,886,456 9,867,173 7,799,136 7,400,588
Net Revenue Available for Debt Service $ 427982455 $ 42368:944 $ 722542562 $ 6:883:918
Annual Revenue Bond Debt Service
Requirements $ $ $ $
Coverage of Annual Revenue Bond
Requirements NIA NIA NIA NIA
Annual Requirements on all Bonds Paid from $ 3,848,956 $ 3,244,870 $ 3,338,021 $ 3,867,154
System Revenues
Coverage of Annual Requirements on all 1.25 X 2.17 X 2.17 X J.78 X
Bonds Paid from System Revenues
Customer Count:
Water 9,698 9,766 9,995 10,024
Sewer 9,208 9,180 9,276 9,320
(a) Revenues include operating revenues, interest income and other revenues of the Waterworks and Sewer System.
(b) E.xpenses include total expenses less depreciation and amortization of the Waterworks and Sewer System.
Sources: Information from the Issuer and the Issuer's Annual Audited Financial Reports.
WATER RATES
Residential Class
Meter Size
(Inches)
518" -314"
1 " and Larger
Commercial Industrial Class
Meter Size
(Inches)
518" -314"
l" -2"
Larger than 2"
Current Rates
(Rates Effective July 1, 2018)
Base Cost
(Per Cubic Foot)
$11.10 for first 200 Cubic Feet
$54.15 for first 1,000 Cubic Feet
Base Cost
(Per Cubic Foot)
$13.28 for first 200 Cubic Feet
$53.11 for first 1,000 Cubic Feet
$190.65 for first 2,000 Cubic Feet
Commercial Industrial Class (Meters Greater Than Three Inches)
Meter Size
(Inches)
4"
6"
8" and Larger
Source: Information.from the Issuer
Base Cost
(Per Cubic Foot)
$3,132.73 for first 100,000 Cubic Feet
$4,697.34 for first 150,000 Cubic Feet
$6,264.30 for first 200,000 Cubic Feet
120
Service in Excess of Base
(For Each Additional
100 Cubic Feet)
$4.08 I 100 Cubic Feet
$4.08 I 100 Cubic Feet
Service in Excess of Base
(For Each Additional
100 Cubic Feet)
$4.00 I 100 Cubic Feet
$3.27 I 100 Cubic Feet
$3.27 I l 00 Cubic Feet
Service in Excess of Base
(For Each Additional
100 Cubic Feet)
$3.27 I 100 Cubic Feet
$3.27 I 100 Cubic Feet
$3.27 I 100 Cubic Feet
TABLE9
2014
$ 13,888,079
7,342,744
$ 62545:335
$
NIA
$ 4,049,311
1.62 X
9,794
9,274
TABLE 10
PRINCIPAL WATER CUSTOMERS 2017-2018
(October J, 20 J 7 to September 30, 20 J 8)
Name of Customer
Lamar Power Partners*
Campbell Soup Company
Lamar County Water Supply
Daisy Farms*
Paris Generation
Kimberly Clark
Paris Regional Medical Center
The James Skinner Baking Co.
Paris Housing Authority
Texas Highway Department
Total
Average Monthly
Consumption (Gals.}
18,034,434
12,028,695
11,524,741
3,792,299
1,226,452
959,308
351,040
326,667
174,174
152,493
Total Water Sales as of September 30, 2018 (unadudited)
48,570,303
$ 7,270,489
(aJ Princif)al Water Customers ref)resent af)f)roximatelv 53.24% of total annual water sales.
• Includes raw water sales.
SEWER RATES
Residential Class
Meter Size
(Inches)
3/4" or Less
I" and Larger
Commercial Industrial Class
Meter Size
(Inches)
3/4" or Less
111 -211
Larger than 2"
Current Rates
(Rates Effective July J, 2018)
Base Cost
(Per Cubic Foot)
$12.66 for first 200 Cubic Feet
$59.05 for first 1,000 Cubic Feet
Base Cost
(Per Cubic Foot)
$16.86 for first 200 Cubic Feet
$59.05 for first 1,000 Cubic Feet
$119.47 for first 2,000 Cubic Feet
PRINCIPAL SEWER CUSTOMERS -2017-2018
(October J, 20 J 7 to September 30, 20 J 8)
Name of Customer
Kimberly Clark
The James Skinner Baking Co
Paris RegionaJ Medical Center
Paris Housing Authority
Texas State Highway Department
Paris Junior College
Lamar County
Lamar County Human Resources
Paris Independent School District
Potters Industries
Total
Average Monthly
Consumption (Gals.}
447,463
326,667
290,615
193,142
152,493
115,277
91,550
81,099
78,257
71,210
1,847,773
Total Sewer Charges as of September 30, 2018 (unaudited) $ 5,686,632
(a) Principal Sewer Customers represent approximately 20.64% of total annual sewer charges.
121
Average
Monthly Bill
$ 25,849
97,983
96,381
20,610
19,677
28,997
12,440
10,022
5,992
4,605
$ 322,556
TABLE 11
(a)
TABLE12
Service in Excess of Base
(For Each Additional
100 Cubic Feet)
$5.34 / 100 Cubic Feet
$5.34 / l 00 Cubic Feet
Service in Excess of Base
(For Each Additional
100 Cubic Feet)
$5.54 / I 00 Cubic Feet
$5.54 / 100 Cubic Feet
$5.54 / l 00 Cubic Feet
Average
Monthly Bill
$ 23,484
17,229
15,545
10,184
$
7,996
6,287
4,837
4,257
4,284
3,703
97,806 (a)
TABLE 13