C.A.F.R., FY 2018-19 with continuing disclosure tablesCITY OF PARIS, TEXAS
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended September 30, 2019
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
Fiscal Year Ended September 30, 2019
Prepared By
Finance Department
W.E. Anderson, Director
INTRODUCTORY SECTION
INTRODUCTORY SECTION
CITY OF PARIS, TEXAS
Table of Contents
Year Ended September 30, 2019
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I
Management's Discussion and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ......................................................... . 13
Statement of Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 15
Fund Financial Statements
Balance Sheet -Governmental Funds ................................................ . 16
Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds .... . 17
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ........................... . 19
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual -General Fund .................................................. . 20
Statement of Net Position -Proprietary Funds ......................................... . 22
Statement of Revenues, Expenses, and Changes in Fund Net Position -Proprietary Funds ...... . 24
Statement of Cash Flows -Proprietary Funds .......................................... . 25
Notes to Financial Statements ....................................................... . 27
Required Supplementary Information
Texas Municipal Retirement System -Schedule of Changes in Net Pension Liability ............ . 66
Texas Municipal Retirement System -Schedule of City Contributions ........................ . 67
Paris Firefighters' Relief and Retirement Fund -Schedule of Changes in Net Pension Liability ..... . 68
Paris Firefighters' Relief and Retirement Fund -Schedule of City Contributions ................. . 69
Texas Municipal Retirement System -Schedule of Changes in Total OPEB Liability ............ . 70
Texas Municipal Retirement System -Schedule of City Contributions ........................ . 71
City of Paris Retiree Health Care Plan -Schedule of Changes in Total OPEB Liability ........... . 72
City of Paris Retiree Health Care Plan -Schedule of City Contributions ....................... . 73
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds ...................................................... . 74
Combining Balance Sheet -Nonmajor Governmental Funds ............................... . 75
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 76
Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual -
Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 77
Debt Service Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 78
Capital Projects Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 79
Capital Assets Used in the Operation of Governmental Funds -
Comparative Schedules by Source. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................. . 80
Statement
1
2
3
4
5
6
7
8
9
Schedule
I
2
3
4
5
6
7
8
9
10
11
12
13
14
CITY OF PARIS, TEXAS
Table of Contents (Continued)
Year Ended September 30, 2019
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)
Page
81
82
84
88
90
92
94
95
97
99
JOO
102
103
104
105
106
107
109
111
112
Continuing Disclosure Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
OVERALL COMPLIANCE, INTERNAL CONTROLS,
AND FEDERAL A WARDS SECTION .................................................. 121
Federal:
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Summary Schedule of Prior Audit Findings.............................................. 124
Schedule of Findings and Questioned Costs ............................................. 125
Corrective Action Plan .......................................... . . . . . . . . . . . . . . . . . . . 126
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance....................... 127
Notes on Accounting Policies for Federal Awards ........................................ 129
Schedule of Expenditures of Federal Awards......................... . . . . . . . . . . . . . . . . . . . 130
State:
Schedule of Expenditures of State of Texas Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Table
I
2
3
4
5
6
7
8
9
10
II
12
13
14
15
16
17
18
19
June 26, 2020
Mayor Steve Clifford, MD
and Members of the City Council
City of Paris, Texas
Dear Mayor and Council Members:
I am pleased to submit the Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended
September 30, 2019.
The City of Paris is a financial reporting entity as defined by the Government Accounting Standards Board codification
section 2100. As such, it has a separately elected governing body chosen by its citizens in a general, popular election, is a
legally separate primary government, and is fiscally independent of other state and local governments. The financial reporting
entity includes all the funds of the primary government and its component unit, the Paris Economic Development Corporation.
More information about PEDC can be found in footnote J.B. which deals with reporting entity topics. There are no other
potential component units.
The primary purpose of this report is to provide the City Council, citizens, financial community, and others with detailed
information concerning the financial condition and performance of the City of Paris. It is strongly recommended that any user
of this report read the Management's Discussion and Analysis included 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, 2019, which
follows, was prepared by the Finance Department. The financial statements have been audited by McClanahan and Holmes,
LLP, CPAs, whose report is included herein. This audit satisfies Article III, Section 35 of the City Charter which requires that
an annual audit of all accounts of the City be made by an independent certified public accountant.
The City Finance 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 forth 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 financial activity have been included.
The financial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (GASB).
1-1
This Comprehensive Annual Financial Report consists of four parts:
l. 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 information of other governmental units overlapping the City and other miscellaneous
statistics.
4. The Continuing Disclosure Information Section contains thirteen tables of financial information required by
the United States Securities and Exchange Commission Rule l 5c2-l 2. These tables provide investors with
updated information on all municipal bond issues sold after July 3, I 995.
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 2010 census is 25,171, a decrease of2.80% from the 2000 census of25,898.
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 191 l as St.
Joseph's Hospital, Paris Regional Medical Center is a 154 bed general acute-care hospital. Its parent company is RCCH
HealthCare Partners.
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 of300 pounds per square inch. Telephone service is provided by AT&T.
Educational facilities of the City are provided by 3 independent school districts. Each of the districts is accredited by the
1-2
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 12,307.
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, Veterans Memorial, 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 form 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 terms. 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 determines policies of the City of Paris. The City
Manager executes the laws and administers the government of the City.
Economic Condition and Outlook
Taxable values, as originally certified by the Lamar County Appraisal District, for fiscal year 2019-20 reflect a 3.57% increase
over the 2018-19 values. Building permits for new residential and commercial construction were valued at $68,191,125 for
fiscal year 2018-19. This activity should be reflected in next year's taxable values.
Sales taxes for 2018-19 increased from the prior year by 0.71%. Current rebates are 4.17% above the 2018-19 rebates through
June 2020.
Hotel occupancy taxes were up 1.95% compared to 2017-18 taxes. First quarter 2019-20 collections were 2.69% below the
same period in 2018-19.
Franchise fees for 2018-19 were flat decreasing 0.22% 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.
General Fund receipts equaled 106.55% of budget. This surplus of revenues was caused by intergovernmental revenue,
increased EMS fees, strong investment returns, and increased property and sales taxes. General Fund expenditures were only
104.13% of budget. This 4.13% variance is mainly due to a housing grant approved by the city council but not formally
added to the budget. However, over expenditure by public safety departments also contributed to the deficit. For the 2019-20
1-3
fiscal year, the City Council adopted a tax rate of .51608 cents per $100 of value. This rate is $0.03587 cents lower than the
previous year but does allow maintaining all services at their current levels and funds all required interest and sinking funds.
Long-term Financial Planning and Relevant Financial Policies
The City continues to update its long-range financial plan. The City formalized a key financial policy in 20 IO 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
20 I 3 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 were 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 was not 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 and most of those projects have been completed.
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.
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
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
1-4
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 l. 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 of 09-30-19:
Tax Revenue Fund Moody's Investors
Issue Supported Supported Maturity Rating Insured
2010 Tax and Rev. C.O. $ 2,040,000 $ 12-15-29 Aa3
2020 G.O. Refunding Bonds 450,000 710,000 06-15-20 Aa3
2012 G.O. Refunding Bonds 1,190,000 12-15-21 Aa3
2013 C.O. (TWDB) 2,005,000 06-15-32 NIA
2013 G.O. Bonds 29,315,000 12-15-32 Aa3
2016 G.O. Bonds 7,945,000 12-15-36 Aa3
2017 G.O. Bonds 8,970,000 06-15-37 Aa3
2018 G.O. Bonds 190,000 1,100,000
Capital Lease -Firetrucks 1,104,090 10-21-24 NIA
Total $ 13,944,090 $ 41,075,000
1-5
Independent Audit
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.
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 30, 2018. This was the 23rd 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
1-6
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, 2018
Executive Director/CEO
1-7
CITY OF PARIS ORGANIZATIONAL CHART
EMS
IT
WATER TREATMENT
CITIZENS OF PARIS
CITY ATTORNEY MUNICIPAL JUDGE
FIRE
UTILITIES
WASTEWATER
TREATMENT
WATER
DISTRIBUTION
HR
SANITATION
CITY MANAGER MUNICIPAL COURT
POLICE
LIFT STATIONS
WASTEWATER
COLLECTION
PUBLIC WORKS
cmYCLERl<
AIRPORT
ACCOUNTING/
AUDITING
PARKS/
RECREATION/R.O.W.
STREETS/HIGHWAYS
1-8
PLANNING,
ENGINEERING, &
DEVELOPMENT
COMMUNITY
DEVELOPMENT
FINANCE
UTILITY BILLING/
COU.ECTION
GARAGE
TRAFFIC/
PUBLIC LIGHTING
LIBRARY
ENGINEERING
WAREHOUSE/
PURCHASING
List of Elected and Appointed Officials
Elected Officials
Dr. Steve Clifford-Mayor
Paula Portugal -Mayor Pro-Tern
Clayton Pilgrim
Bill Trenado
Linda Knox
Renae Stone
Derrick Hughes
Appointed Officials
Gene Anderson, CPA-Finance Director & Interim City Manager
Janice Ellis -City Clerk
Stephanie Harris -City Attorney
Priscilla McAnally -Library Director
Carla Easton, PE -Engineering, Planning, and Development
Sandy Collard -Human Resources
Tom E. Hunt, III -Presiding Municipal Court Judge
Bob Hundley -Police Chief
Doug Harris -Utilities Director
Kent Klinkerman -Emergency Medical Services
Jerry McDaniel -Public Works
Thomas McMonigle-Assistant Fire Chief
I-9
FINANCIAL SECTION
McCianahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA
RUSSELLP.WOOD,CPA
DEBRA J. IMLDER, CPA
TEFFANY A. KAVANAUGH, CPA
APRIL J. HATFIELD, CPA
Honorable Mayor and City Council
City of Paris, Texas
INDEPENDENT AUDITORS' REPORT
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, 2019, 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 and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. 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,
2019, 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.
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, the schedules of changes in net OPEB 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 schedule of expenditures of federal awards is presented
for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a
required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal
awards are the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are
fairly stated in all material respects in relation to the basic financial statements as a whole.
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.
2
Honorable Mayor and City Council
City of Paris, Texas
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 19, 2020, on our
consideration of the City of Paris, Texas' internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City of Paris, Texas' internal
control over financial reporting or on compliance. That report is an integral part of an audit perfom1ed in accordance
with Government Auditing Standards in considering the City of Paris, Texas' internal control over financial
reporting and compliance.
Paris, Texas
June 26, 2020
3
?dcCfananan anaJfoCmes, ££<P
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,
2019. 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 maintained its tax rate of 0.55195 per $100 of valuation for fiscal year 2018-19.
• For the upcoming 2019-20 fiscal year, the City lowered its tax rate to 0.51608 per $100 of valuation. This
reduction saved citizens $568,338 in taxes.
• City-wide expenses this year exceeded City-wide revenues by $480,786 whereas in the previous year
revenues exceeded expenses by $740,563. The deficit was caused by general government expenditures for
street projects and affordable housing.
• At the end of the fiscal year, unassigned fund balance for the general fund was $12,390,089 or 47.55%, of
total general fund expenditures. The prior year unassigned fund balance was $11,753,392 or 47.72%, of
general fund expenditures.
• At the end of the fiscal year, the net position of the proprietary funds was $42,253,191 compared to
$41,268,531 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.
4
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.
5
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 $73,931,053 at the close of the most recent fiscal year. This
compares to $74,584,048 for the previous year. This was a 0.87% decrease in net position.
By far, the largest portion of the City of Paris' net position ($43,844,317 or 59.30%) 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'
invesbnent 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 was minor and is primarily due to an additional debt issue in the 2018-19
fiscal year.
City of Paris
Net Position
Governmental Activities Business-Ti~ Activities Total Total
2018 2019 2018 2019 2018 2019
Assets:
Current and Other Assets $ 26,896,349 $ 24,359,869 $25,936,919 $23,447,942 $52,833,268 $47,807,811
Capital Assets 37,741,733 38,455,486 62,055,816 65,069,071 99,797,549 103,524,557
Total Assets 64,638,082 62,815,355 87,992,735 88,517,013 152,630,817 I 51,332,368
Deferred Outflows
Related to Pension 1,170,682 3,886,306 239,151 698,480 1,409,833 4,584,786
Related to OPEB 148 713 237,246 13,468 11,307 162,181 248,553
Total Deferred Outflows 1,319,395 4,123,552 252,619 709 787 1,572,014 4,833,339
Long-Term Liabilities:
Outstanding 29,647,214 33,578,787 44,647,012 43,255,401 74,294,226 76,834,188
Other Liabilities 1,886,368 1,628,308 2,048,262 3,678,616 3,934,630 5,306,924
Total Liabilities 31,533,582 35,207,095 46,695,274 46,934,017 78,228,856 82,141,112
Deferred Inflows
Related to Pensions 1,108,378 281 ,549 29,000 1,389,927 29,000
Related to OPEB 53950 10292 64242
Total Deferred Inflows 1,108,378 53950 281,549 39,592 1,389,927 93242
Net Position:
Net Investment in
Capital Assets 20,713,428 18,064,569 18,322,809 25,779,748 39,036,237 43,844,317
Restricted 12,548,372 8,782,171 12,548,372 13,613,293
Unrestricted 53 717 4,831,122 22,945,722 16,473,443 22,999,439 16,473,443
Total Net Position $33,315,517 $31,677.862 $41,268,531 $42,253,191 $74,584,048 $73,931,053
An additional portion of the City of Paris' net assets ($13,613,293 or 18.41%) represents resources that are subject
to external restrictions on how they may be used. The balance of unrestricted net assets ($16,473,443 or 22.82%)
may be used to meet the government's ongoing obligations to citizens and creditors.
6
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.
Statement I reflects the relevant deferred outflows and inflows for the fiscal year. Outflows are intended to account
for the anticipated future liabilities for pension payments as well as contributions toward the cost of retiree health
care. Inflows anticipate future contributions to the pension plan and retiree health care.
Governmental Activities
Governmental activities decreased the City of Paris' net position by $1,637,655 or 4.92% (includes prior period
adjustment) during the current fiscal year. Total governmental revenue was up $1,326,187 (4.75%) with general
revenues being up $390,481(1.75%) and program revenues being up $935,706 (16.34%). General revenues were up
in most categories. Program revenues were up in all categories.
General Revenues & Program Revenues
Increase
2018 2019 (Decrease}
Property Taxes $ 9,170,951 $ 9,358,943 $ 187,992
Sales Taxes 7,317,162 7,369,079 Sl ,917
Franchise Taxes 4,315,694 4,305,851 (9,843)
Hotel Occupancy Tax 662,263 675,158 12,895
Unrestricted Investment Earnings 426,518 581,115 154,597
Miscellaneous 387,306 272,338 (114,968)
Gain (loss) on Sale of Capital Asset (57,940) 49,951 107,891
Program Revenues S,726J.07 6,661,913 93S 706
$ 27,948,161 $ 29J.74,348 $ IJ26,187
7
The following table provides a summary of the City's operations for the years ending 2018 and 2019 for both
governmental and business-type activities:
City of Paris
Changes in Net Position
Governmental Activities Business-T~ Activities Total
Revenues 2018 2019 2018 2019 2018 2019
Program Revenues:
Charges for Services s 5,049,136 s 5,336,247 s 14,168,934 s 14,452,703 s 19,218,070 s 19,788,950
Operating Grants
and Contributions 154,497 165,064 154,497 165,064
Capital Grants
and Contributions 522,574 1,160,602 522,574 1,160,602
General Revenues:
Property Taxes 9,170,951 9,358,943 9,170,951 9,358,943
Sales Taxes 7,317,162 7,369,079 7,317,162 7,369,079
Franchise Taxes 4,315,694 4,305,851 4,315,694 4,305,851
Hotel Occupancy Tax 662,263 675,158 662,263 67S,1S8
Unrestricted
Investment Earnings 426,518 581,115 380,393 577,621 806,911 1,158,736
Other 329,366 322,289 3291366 3221289
Total Revenues 27,948,161 29,274,348 14,549,327 15,030,324 42A97,488 44,304,672
Expenses
General Government 3,825,666 6,748,601 3,825,666 6,748,601
Public Safety 12,06 1,033 12,501,860 12,061,033 12,501,860
Public Works 6,882,186 6,706,520 6,882,186 6,706,520
Health 2,884,339 3,058,445 2,884,339 3,058,445
Culture and Recreation 866,435 794,776 866,435 794,776
Other
Cox Field 243,666 212,557 243,666 212,557
Interest on
Long-Term Debt 399,291 194,004 399,291 194,004
Water and Sewer 14,594,309 14,568,695 14,594,309 14,568,695
Total Expenses 27,162,616 30,216,763 14,594,309 14,568,695 41,756,925 44,785,458
Increase (Decrease) in Net
Position Before Transfers 785,545 (942,415) (44,982) 461,629 740,563 (480,786)
Transfers/Special Items 610,955 (523,031) (610,955) 523,031
Increase (Decrease)
in Net Position 1,396,500 (1,465,446) (655,937) 984,660 740,563 (480,786)
Net Position, Beginning 36,135,030 33,315,517 41,924,468 41 ,268,531 78,059,498 74,584,048
Prior Period Adjustment (4,216,013) (172,209) (4,216,013) (172,209)
Net Position, Ending s 33,315,517 s 31,677,862 s 41,268,531 s 42,253,191 s 74,584,048 s 73,931,053
Business-Type Activities
Business-type activities increased the City of Paris' net position by $984,660. This increase was caused by a rate
increase and reduced 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.
8
Governmental Funds
The focus of the City of Paris' governmental funds is to provide infonnation 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 of Resources
Fund Balances:
Nonspendable:
Inventory
Permanent 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
2018 2019
26,8961350 $ 24,360,133
1,7331070 $ 112781769
11108,832 111321958
418,995 483,575
93,689 96,007
1,836,162 1,727,065
8,957,151 6,182,754
199,194 202,297
496,852 574,048
85,554 74,469
213,459 218,102
11,753,392 1213901089
24,054,448 21,948,406
26,896,350 $ 24,360,133
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund
balances of $21,948,406. Approximately 56.45% of this total amount ($12,390,089) 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 1)
Permanent Fund Principal ($96,007), 2) pay debt service ($1 ,727,065), 3) inventories ($483,575), 4) law
enforcement ($202,297), 5) library ($74,469), 6), Public Education ($574,048), 7) capital projects ($6,182,754) and
8) Community Development ($218, I 02).
9
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
2018 2019
27,811,332 $ 29,142,435
28,624,534 30,611,074
(813,202) (1,468,639)
800,961 (465,195)
(12,241) (1,933,834)
40,517
23,864,494 24,054,449
161,678 ~172,209}
24,054,448 $ 21,948,406
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 $12,390,089 ($11,753,392 the previous year), while total fund balance reached
$13,451,478 ($12,670,746 the previous year). The increase in the fund balance of the general fund was primarily
due to increased cash and investments, receivables and inventory. 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 47.54% of total general fund expenditures, while total fund balance represents
51 .61 % 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 overspent by $1,035,895 ($563,605 underspent the previous year).
This 4.13% variance is mainly due to a housing grant approved by the city council but not formally added to the
budget. However, over expenditure by public safety department also contributed to the deficit. General Fund
revenues were over budget by $1,663,881 (6.55%). Higher than expected property tax collections, sales taxes,
investment earnings, emergency medical service collections, 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 $6,178,988
($8,955,644 last year). This reduction was due to the significant expenditure of existing cash on hand for various
projects with the only offsetting revenue being interest income. Variances from year to year are common in this fund
as projects are approved on a year to year basis by the City Council.
10
Debt Service Fund
The Debt Service Fund has a total fund balance of $1,727,065 ($1,836,162 the previous year), all of which is
reserved for the payment of debt service. The net decrease in fund balance during the current year in the debt service
fund was -$109,097 ($183,807 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 $1,769,743 in the current
fiscal year ($1,795,313 the previous year).
Proprietary Fund
The City of Paris' Proprietary Fund provides the same type of infonnation found in the government-wide financial
statements, but in more detail.
Unrestricted net position of the Water and Sewer Fund at the end of the year amounted to $16,473,443 ($22,945,722
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,
2019 amounts to $103,524,557 ($99,797,549 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.
Governmental Activities
2018 2019
Land s 5,927,478 s 5,927,478 s
Buildings and System 10,561,301 10,848,848
Improvements Other
than Buildings 3,206,534 2,931,843
Machinery, Furniture,
and Equipment 3,948,088 3,630,227
Infrastructure 12,931,632 11,863,329
Construction in Progress 1,166,700 3,253,761
Water Rights-Net
Total s 37,741,733 s 38,455,486 s
Net Capital Assets
Business-TYJIC Activities
2018 2019
339,620 S 339,620
29,532,653 30,339,960
1,395,284 1,247,080
27,474,441 29,864,225
3,313,818 3,278,186
62,055,816 s 65,069,071
2018
S 6,267,098
40,093,954
3,206,534
5,343,372
12,931,632
28,641,141
3,313,818
s 99,797,549
Total
s
s
2019
6,267,098
41,188,808
2,931,843
4,877,307
11,863,329
33,117,986
3,278,186
103,524,557
Additional infonnation on the City of Paris' capital assets can be found in note IV. D. of the Notes to the Financial
Statements.
11
Long-Term Debt
The City has two capital leases with $1, I 04,090 in principal outstanding at year end. The City of Paris also has total
bonded debt outstanding in the amount of $53,915,000. Of this amount, $12,840,000 comprises debt being paid for
by property tax revenues, and $41,075,000 represents bonds being paid for by water and sewer revenues.
Moody's
Tax Revenue Final Investors
Issue Supported Supported Maturity Rating
2010 G.O. Refunding Bonds $ 450,000 $ 710,000 6/15/2020 Aa3
2010 Tax and Rev C.O.s 2,040,000 12/15/2029 Aa3
2012 G.O. Refunding Bonds 1,190,000 12/15/2021 Aa3
2013 C.O.s (TWDB) 2,005,000 6/15/2032 NIA
2013 G.O. Bonds 29,315,000 12/15/2032 Aa3
2016 G.O. Bonds 7,945,000 12/15/2036 Aa3
2017 G.O. Bonds 8,970,000 6/15/2037 Aa3
2018 G. 0 . Bonds 190,000 1,100,000 9/30/2028
Capital Leases-Firetrucks 1,104,090
$ 13,944,090 $41,075,000
The City of Paris' bond debt decreased by $3,460,000 (6.03%) during the fiscal year. The City's underlying bond
rating from Moody's is Aa3. The 2018 G.O. Bonds were not rated as it was a small issue that was privately placed
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 2018~19 fiscal year. This rate was broken down into $0.43831 per $100
valuation for operations and $0.11364 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 .57% 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 25 residential units and 15 commercial units.
• Local population growth is expected to be minimal.
• The tax rate is expected to remain at or below $0.51608 per $100 of value.
• Franchise fees are expected to remain stable.
All of these factors were considered in preparing the City of Paris' budget for2019-20.
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.
12
CITY OF PARIS, TEXAS
Statement ofNet Position
September 30, 2019
Prim!!!X Government
Governmental Business-Type
Activities Activities
Assets
Cash and Cash Equivalents $ 16,245,479 $ 871,457
Investments 127,966 365,392
Receivables (Net of Allowance
for Uncollectibles) 2,701,911 2,350,676
Inventories 483,575 262,304
Restricted Assets
Cash and Cash Equivalents 13,266 5,531,870
Investments 4,215,400 14,066,243
Due from Other Governments 572,272
Land Development Costs
Water Rights (Net of
Accumulated Amortization) 3,278,186
Capital Assets Not
Being Depreciated
Land 5,927,478 339,620
Construction in Progress 3,253,761 29,864,225
Capital Assets (Net of
Accumulated Depreciation)
Buildings and System 10,848,848 30,339,960
Improvements Other Than
Buildings 2,931,843
Machinery and Equipment 3,630,227 1,247,080
Infrastructure 11,8631329
Total Assets 62,815,355 88,517,013
Deferred Outflows of Resources
Deferred Outflows Related to Pensions 3,886,306 698,480
Deferred Outflows Related to OPEB 237,246 11,307
Total Deferred Outflows of Resources 4,123,552 709,787
The accompanying notes to the financial statements are an integral part of this statement.
13
Statement I
Component
Unit
Economic
Total Develoement
$ 17,116,936 $ 2,141,894
493,358 2,086,813
5,052,587 256,036
745,879
S,S4S,136
18,281,643
572,272
2,676,864
3,278,186
6,267,098
33,117,986
41,188,808
2,931,843
4,877,307 5,401
11,863,329
IS 1,332,368 7,167,008
4,584,786
248,553
4,833,339
CITY OF PARIS, TEXAS
Statement ofNet Position
September 30, 2019
Prim!}: Government
Governmental Business-Type
Activities Activities
Liabilities
Bank Overdraft 1,680,899
Accounts Payable and
Other Current Liabilities 1,428,505 521,327
Accrued Interest Payable 137,257 486,910
Unearned Revenue
Customers' Deposits 989,480
Noncurrent Liabilities
Due Within One Year 1,635,260 2,347,961
Due in More Than One Year 13,S6S,314 39,852,150
Net Pension Liability IS,801,S9S 892,876
Net OPEB Liability 2,639,164 162,414
Total Liabilities 35,207,095 46,934,017
Deferred Inflows of Resources
Deferred Inflows Related to Pensions 29,000
Deferred Inflows Related to OPEB S3,9S0 10,592
Total Deferred Inflows of Resources S3,9S0 39,592
Net Position
Net Investment in Capital Assets 18,064,569 25,779,748
Restricted for
Construction 6,182,754
Debt Service 1,727,065
Law Enforcement 202,297
Education 574,048
Industrial Incentives
Land Development Costs
Permanent Library Funds
Nonexpendable 96,007
Unrestricted 4,831,122 16,473,443
Total Net Position $ 31,677,862 $ 42,253,191
The accompanying notes to the financial statements are an integral part of this statement.
14
Statement I
(Continued)
Component
Unit
Economic
Total Develoement
1,680,899
1,949,832 51,833
624,167 6,837
989,480
3,983,221 87,799
53,417,464 1,557,394
16,694,471
2,801,578
82,141,l l2 1,703,863
29,000
64,542
93,542
43,844,317 5,401
6,182,754
1,727,065 1,645,193
202,297
574,048
3,133,922
2,676,864
96,007
21,304,565 p,998,23S)
$ 73,931,053 $ S,463,14S
CITY OF PARIS, TEXAS Statement 2
Statement of Activities
Year Ended September 30, 2019
Pro~ Revenues Net (Ex~nse) Revenue and Chan~ in Net Position
Operating Capital Prim!!l'. Government Coml!!!nent Unit
Charges for Grants and Grants and Governmental Business-Type Economic
Functions/Pro~• Ex~nses Services Contributions Contributions Activities Aaivities Total Develoement
Primary Government
Governmental Activities
General Government $ 4,054,831 $ 304,818 $ 2,098 $ $ (3,747,915) $ $ (3,747,915) s
Public Safety 13,228,ISI 3S3,S11 IS3,S92 100,034 (12,620,954) (12,620,954)
Public Works 8,274,343 1,437,157 l,010,S74 (S,826,6 I 2) (S,826,6 I 2)
Health 3,20S,S96 2,979,160 (226,436) (226,436)
Culture and Recreation 914,874 100,014 9,374 (805,486) (805,486)
Cox Field Airport 344,964 161,527 49,994 (133,443) (133,443)
Interest on Long-Term Debt 194 004 (194,004) (194,004)
Total Governmental Activities 30,216,763 S,3361247 16S 064 1,160,602 (23,SS4,8S0) (23,SS4,8S0)
Business-Type Activities
Water and Sewer 1415681695 14,452,703 (115,992) (I IS,992)
Total Business-Type Activities 14,S68,69S 14,452,703 (115,992) (1 IS,992)
Total Primary Government $ 44,785,458 $ 19,788,950 $ 165,064 $ 1,160,602 (23,SS4,8S0) (115,992) (23,670,842)
Component Unit
Economic Development $ 2,751,782 $ $ $ (2,751,782)
General Revenues
Property Taxes 9,358,943 9,358,943
Sales Taxes 7,369,079 7,369,079 1,474,475
Franchise Taxes 4,30S,8Sl 4,30S,8Sl
Hotel Occupancy Taxes 61S,IS8 67S,IS8
Unrestricted Investment Earnings S81,I IS 577,621 1,ISS,736 41,579
Miscellaneous 272,338 272,338
Gain on Disposal of Assets 49,951 49,951
Transfers (523,031) 523,031
Total General Revenues and Transfers 22,089,404 1,100,652 23,190,056 11Sl6,0S4
Changes in Net Position (1,465,446) 984,660 (480,786) (1,235,728)
Net Position -Beginning 33JIS1Sl7 41,268,531 74,584,048 6,698,873
Prior Period Adjustment (172,209) (172,209)
Net Position -Ending $ 31,677,862 $ 42,253,191 $ 731931,053 $ 514631145
The accompanying notes to the financial statements are an integral part of this statement. IS
CITY OF PARIS, TEXAS Statement 3
Balance Sheet -Governmental Funds
September 30, 2019
Other Total
Debt Capital Governmental Governmental
General Service Proiects Funds Funds
Assets
Cash and Cash Equivalents $ ll,318,169 $ 1,723,835 $ 2,721 ,563 $ 495,178 $ 16,258,745
Investments 479,209 3,768,724 95,433 4,343,366
Receivables (Net of Allowance
for Uncollectibles) 2,592,249 l09,662 264 2,702,175
Inventories 483,575 483,575
Due from Other Governments 572,272 5721272
Total Assets $ 151445,474 $ 1,833,497 $ 614901287 $ 5901875 $ 2413601133
Liabilities, Deferred Inflows, and Fund Balances
Liabilities
Accounts Payable and Accrued Liabilities $ 967,470 $ $ 311,299 $ $ 112781769
Total Liabilities 967,470 311,299 1.2181769
Deferred Inflows of Resources
Unavailable Revenue -Property Taxes 567,625 l06,432 674,057
Unavailable Revenue -Other 458,901 458,901
Total Deferred Inflows of Resources 1,026,526 106,432 1,132,958
Fund Balances
Nonspendable
Inventory 483,575 483,575
Permanent Library Funds 96,007 96,007
Restricted for
Debt Service 1,727,065 1,727,065
Capital Projects 3,766 6,178,988 6,182,754
Notes
Law Enforcement 202,297 202,297
Public Education 574,048 574,048
Assigned
Library 74,469 74,469
Community Development 218,I02 218,I02
Unassigned: General Fund 12,390,089 121390,089
Total Fund Balances 13,451,478 1,727,065 6,178,988 590,875 21,948,406
Total Liabilities, Deferred
Inflows and Fund Balances $ 1514451474 $ 118331497 $ 6,490,287 $ 590,875 $ 24,360,133
Fund Balances -Total Governmental Funds (above) $ 21,948,406
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) 38,455,486
Other long-term assets are not available to pay for current period expenditures and, therefore,
are deferred or not reflected in the funds. 1,132,958
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported in the funds. (15,487,831)
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$15,801,595, and a Deferred Outflow of Resources in the amount of
$3,886,306. This amounted to a decrease in Net Position of$1 l,915,289. (11 ,915,289)
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 $2,639,164, a Deferred Outflow of Resources in the amount of
$237,246, and a Deferred Inflow of Resources in the amount of$53,950. This amounted to a decrease
in Net Position of$2,455,868. {2,455,868}
Net Position of Governmental Activities $ 31,677,862
The accompanying notes to the financial statements are an integral part of this statement.
16
CITY OF PARIS, TEXAS Statement4
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2019
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Revenues
Taxes
Property $ 7,552,516 $ 1,769,743 $ $ $ 9,322,259
Sales 7,369,079 7,369,079
Franchise 4,305,851 4,305,851
Hotel Occupancy 675,158 675,158
Licenses and Permits 277,507 277,507
Fines and Fees 434,016 46,602 480,618
Use of Money and Property 483,876 46,601 198,913 13,254 742,644
Sanitation 1,437,157 1,437,157
Health 2,991,995 2,991,995
Intergovernmental 1,325,665 1,325,665
Other 210,946 3,556 214,502
Total Revenues 27,063,766 1,816,344 198,913 63,412 29,142,435
Expenditures
Current
General Government 1,616,363 16,946 1,633,309
Public Safety 11,218,944 35,009 11,253,953
Public Works 5,644,019 5,644,019
Health 2,845,874 2,845,874
Culture and Recreation 740,350 16,216 756,566
Cox Field 210,851 210,851
Other 1,845,609 1,845,609
Debt Service
Principal 186,690 1,391,113 1,577,803
Interest 443,205 443,205
Capital Outlay
General Government 16,995 114,349 131,344
Public Safety 413,250 413,250
Public Works 1,016,738 2,510,928 3,527,666
Health 303,946 23,679 327,625
Total Expenditures 26,059,629 1,834,318 2,648,956 68,171 30,611,074
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,004,137 {17,974} {2,450,043} {4,759} {1,468,639}
The accompanying notes to the financial statements are an integral part of this statement.
17
CITY OF PARIS, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2019
Debt Capital
General Service Projects
Other Financing Sources (Uses)
Insurance Recoveries 57,835
Transfers In 18,513 5,427
Transfers Out (127,545) (96,550) (326,613)
Total Other Financing
Sources (Uses) (51,197) (91,123) (326,613)
Net Changes
in Fund Balances 952,940 (109,097) (2,776,656)
Fund Balances -Beginning 12,670,747 1,836,162 8,955,644
Prior Period Adjustment (172,209)
Fund Balances -Ending $ 13,451,478 $ 1,727,065 $ 6,178,988
The accompanying notes to the financial statements are an integral part of this statement.
18
Other
Governmental
Funds
3,738
3,738
(1,021)
591,896
$ 590,875
Statement 4
(Continued)
Total
Governmental
Funds
57,835
27,678
(550,708).
(465,195)
(I ,933,834)
24,054,449
(172,209)
$ 21,9481406
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, 2019
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.
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 .
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 oflong-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal oflong-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.
19
Statement 5
$ (1,933,834)
713,753
24,127
16,041
38,762
(1,745,311)
(56,436)
1,477,452
$ (1,465,446)
CITY OF PARIS, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
Year Ended September 30, 2019
Budgeted Amounts
Original Final Actual
REVENUES
Property Taxes $ 7,383,000 $ 7,383,000 $ 7,552,516
Sales Taxes 7,187,500 7,187,500 7,369,079
Franchise Taxes 4,359,100 4,359,100 4,305,851
Hotel Occupancy Taxes 650,000 650,000 675,158
Licenses and Permits 158,300 158,300 277,507
Fines and Fees 468,080 468,080 434,016
Investment Earnings 220,658 220,658 483,876
Sanitation 1,528,201 1,528,201 1,437,157
Health 2,675,720 2,675,720 2,991,995
Intergovernmental Revenues 491,826 491,826 1,325,665
Other 277,500 277,500 210,946
Total Revenues 25,399,885 25,399,885 27,063,766
EXPENDITURES
General Government
Council 89,830 114,830 134,768
Manager 395,806 410,806 441,024
Attorney 349,688 299,688 306,838
Municipal Court 247,772 217,772 214,240
Clerk 144,357 124,357 120,247
Finance 446,128 406,128 416,241
Total General Government 1,673,581 1,573,581 1,633,358
Public Safety
Police 6,538,662 6,538,662 6,665,648
Fire 5,085,669 5,025,669 5,153,236
Total Public Safety 11,624,331 11,564,331 11,818,884
Public Works
Community Development 451,843 401,843 1,421,417
Engineering 420,501 445,501 453,390
Public Works 233,023 233,023 237,149
Parks and Recreation 1,252,133 1,177,133 1,145,628
Sanitation 1,336,885 1,336,885 1,087,749
Streets and Highways 1,703,269 1,567,519 1,516,840
Traffic and Public Lighting 570,516 480,516 464,139
Garage 368,238 318,238 334,445
Total Public Works 6,336,408 5,960,658 6,660,757
The accompanying notes to the financial statements are an integral part of this statement.
20
Statement 6
Variance with
Final Budget
$ 169,516
181,579
(53,249)
25,158
119,207
(34,064)
263,218
(91,044)
316,275
833,839
(66,554)
1,663,881
(19,938)
(30,218)
(7,150)
3,532
4,110
(I0,113~
(59,777)
(126,986)
(127,567)
{254,553)
(1,019,574)
(7,889)
(4,126)
31,505
249,136
50,679
16,377
(16,207)
(700,099)
CITY OF PARIS, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
Year Ended September 30, 2019
Budgeted Amounts
Original Final Actual
EXPENDITURES (Continued)
Health 2,693,657 3,178,657 3,149,820
Culture and Recreation
Paris Band 23,050 23,800 23,780
Library Services 721,328 721,328 716,570
Total Culture and Recreation 744,378 745,128 740,350
Other
Cox Field Airport 138,850 188,850 210,851
Other 1,812,529 1,812,529 1,845,609
Total Other 1,951,379 2,001,379 2,056,460
Total Expenditures 25,023,734 25,023,734 26,059,629
Excess (Deficiency) of Revenues
Over Expenditures 376,151 376,151 1,004,137
Other Financing Sources (Uses)
Insurance Recoveries 57,835
Transfers In 2,000 2,000 18,513
Transfers Out (127,545)
Total Other Financing
Sources (Uses) 2,000 2,000 (51,197)
Net Changes in Fund Balance 378,151 378,151 952,940
Fund Balance -Beginning 12,670,747 12,670,747 12,670,747
Prior Period Adjustment (172,209)
Fund Balance -Ending $ 13,048,898 $ 13,048,898 $ 13,451,478
The accompanying notes to the financial statements are an integral part of this statement.
21
Statement 6
(Continued)
Variance with
Final Budget
28,837
20
4,758
4,778
(22,001)
(33,080)
(55,081)
(1,035,895)
627,986
57,835
16,513
(127,545)
(53,197)
574,789
(172,209)
$ 402,580
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Funds
September 30, 2019 and 2018
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
N oncurrent 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
$ 871,457
5,531,870
6,403,327
2,346,710
3,966
262,304
6,698,408
7,367,835
365,392
14,431,635
3,278,186
339,620
29,864,225
31,720,324
46,869,832
28,300,115
4,272,871
2,054,372
(81,630,474),
61,790,885
79,500,706
88,517,013
698,480
11,307
709,787
The accompanying notes to the financial statements are an integral part of this statement.
22
Statement?
Water and Sewer
Enterprise Fund
Prior Year
$ 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
LIABILITIES
Current Liabilities
Bank Overdraft
Accounts Payable and Accrued Liabilities
Accrued Interest Payable
Unearned Revenue
Customers' Deposits
Bonds Payable -Current Portion
CITY OF PARIS, TEXAS
Statement ofNet Position
Proprietary Funds
September 30, 2019 and 2018
Water and Sewer
Enterprise Fund
Current Year
1,680,899
521,327
486,910
989,480
2,326,857
Accrued Compensated Absences -Current Portion 21104
Total Current Liabilities 6,026,577
Noncurrent Liabilities
Bonds Payable -Noncurrent Portion 39,662,211
Accrued Compensated Absences -Noncurrent Portion 189,939
Net Pension Liabilities 892,876
Net OPEB Liabilities 162,414
Total Noncurrent Liabilities 40,907,440
Total Liabilities 4619341017
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 29,000
Deferred Inflows Related to OPEB 10 592
Total Deferred Inflows 39,592
NET POSITION
Net Investment in Capital Assets 25,779,748
Unrestricted 16z473z443
Total Net Position $ 42,253,191
The accompanying notes to the financial statements are an integral part of this statement.
23
$
Statement 7
(Continued)
Water and Sewer
Enterprise Fund
Prior Year
482,857
510,426
139,812
915,167
2,266,857
211580
413361699
41,997,732
194,216
(13,720)
1661627
4213441855
461681 1554
281,549
281,549
18,322,809
22,945,722
41~68,531
CITY OF PARIS, TEXAS Statement 8
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Years Ended September 30, 2019 and 2018
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 $ 7,877,619 $ 7,916,462
Sewer Charges and Taps 5,896,304 5,788,319
Sanitation Billing Fees 71,515 70,361
Service Charges 149,175 154,313
Industrial Surcharges 56,902 33,927
Miscellaneous 401,188 205,552
Total Operating Revenues 14,452,703 14,168,934
Operating Expenses
Personnel 3,457,720 3,364,353
Supplies 1,132,329 1,180,374
Contractual 3,492,693 3,710,765
Maintenance 1,027,538 953,593
Sundry Charges 760,456 575,890
Other 311,995 137,113
Depreciation 2,807,149 3,006,912
Total Operating Expenses 12,989,880 12,929,000
Operating Income 1,462,823 1,239,934
Nonoperating Revenues (Expenses)
Investment Earnings 577,621 380,393
Interest Expense -Revenue and General Obligation Bonds (1 ,670,040) (1,738,171)
Bond Issue Costs (27,090)
Amortization of Water Rights (35,632) (35,632)
Amortization of Bond Premium 126,857 135,584
Net Nonoperating Revenues (Expenses) (1,001,194) (1,284,916)
Income Before Contributions, Other Revenue, and Transfers 461,629 (44,982)
Capital Contributions, Other Revenue, and Transfers
Transfers In 547,003 5,776,146
Transfers Out (23,972) (6,387,101)
Total Capital Contributions, Other Revenue, and Transfers 523,031 (610,955)
Changes in Net Position 984,660 (655,937)
Total Net Position -Beginning 41,268,531 41,924,468
Total Net Position -Ending $ 421253!19) $ 41 12681531
The accompanying notes to the financial statements are an integral part of this statement.
24
CITY OF PARIS, TEXAS Statement 9
Statement of Cash Flows
Proprietary Funds
Years Ended September 30, 2019 and 2018
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Cash Flows from Operating Activities
Receipts from Customers and Users $ 14,159,104 $ 13,630,428
Payments to Suppliers, Contractors, and Service Providers (5,050,98 I) (7,146,831)
Payments to Employees for Salaries and Benefits (3,250,918) (3,540,486)
Net Cash Provided by Operating Activities 5,857,205 2,943,111
Cash Flows from Noncapital Financing Activities
Transfers In 547,003 5,776,146
Transfers Out (23,972) (6,387,101)
Net Cash Provided (Used) by Noncapital Financing Activities 523,031 (610,955)
Cash Flows from Capital and Related Financing Activities
Proceeds from General Obligation Bonds 1,200,000
Purchases of Capital Assets (5,856,036) (9,225,080)
Principal Paid on Bonds (2,148,664) (1,975,000)
Interest Paid on Long-Term Debt (1,693,556) (I, 740,657)
Bond Origination Fees (27,090)
Net Cash (Used) by Capital and Related Financing Activities (9,698,256) (11,767,827)
Cash Flows from Investing Activities
Interest on Investments 629,082 345,010
Purchases oflnvestment Securities (22,962,080) (7,371,637)
Maturities of Investments 19,172,590 19,288,497
Net Cash (Used) by Investing Activities (3, I 60,408) 12,261,870
Net Increase in Cash and Cash Equivalents (6,478,428) 2,826,199
Cash and Cash Equivalents -Beginning 12,881,755 10,055,556
Cash and Cash Equivalents -Ending $ 6,403,327 $ 12,881,755
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, 2019 and 2018
Water and Sewer
Enterprise Fund
Current Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating Income $ 1,462,823
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used in) Operating Activities
Depreciation 2,807,149
Decrease (Increase) in Accounts Receivable (228,100)
Decrease (Increase) in Inventory (37,042)
Decrease (Increase) in Deferred Outflows of Resources (457,168)
Increase (Decrease) in Accounts Payable and Accrued Liabilities 1,719,369
Increase (Decrease) in Unearned Revenue (139,812)
Increase (Decrease) in Customers' Deposits 74,313
Increase (Decrease) in Accrued Compensated Absences (4,753)
Increase (Decrease) in Net Pension Liabilities 906,596
Increase (Decrease) in Net OPEB Liabilities (4,213)
Increase (Decrease) in Deferred Inflows of Resources (241,957)
Total Adjustments 4,394,382
Net Cash Provided by Operating Activities $ 5,857,205
Noncash Investing, Capital, and Financing Activities
Increase (Decrease) in Fair Value oflnvestments $ (165,246)
The accompanying notes to the financial statements are an integral part of this statement.
26
Statement 9
(Continued)
Water and Sewer
Enterprise Fund
Prior Year
$ 1,239,934
3,006,912
(208,042)
(1,192)
465,410
(591,339)
(556,546)
18,040
(19,296)
(658,892)
21,082
227,040
1,703,177
$ 2,943,111
$ 139,221
CITY OF PARIS, TEXAS
Notes to Financial Statements
September 30, 2019
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. 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. PEDC is fiscally dependent upon the City as the City
Council approves their budgets and must approve any debt issuance. However, the component unit does not
qualify for blending because the component services directly benefit the community rather than the City itself.
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 enterprise 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.
27
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summary of Significant Accounting Policies (Continued)
D. Basis of Presentation -Fund Financial Statements (Continued)
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.
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 Pennanent 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 report 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.
28
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summary of Significant Accounting Policies (Continued)
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.
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
29
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summary of Significant Accounting Policies (Continued)
F. Budgetary Information (Continued)
l. Budgetary Basis of Accounting (Continued)
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.
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 l. 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, 2019, 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, 2019, the City Council approved a transfer of$650,750 from various departments to
other departmental line items. Expenditures exceeded appropriations in the following departments: Council
$19,938, Manager $30,218, Attorney $7,150, Finance $10,113, Police $126,986, Fire $127,567,
Community Development $1,019,574, Engineering $7,889, Public Works $4,126, Garage $16,207, Cox
Field $22,001, and Other $33,080.
G. Assets, Liabilities, and Equity
l. 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
30
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summary of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
2. Investments (Continued)
priced daily and compared to the canying value. If the ratio of the fair value of the portfolio of investments
to the canying 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.
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 tennination 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 infonnation 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 2010, 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 $10,000 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.
31
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summruy of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
5. Capital Assets (Continued)
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.
The cost of nonnal 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. Amortization 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 and OPEB. See footnote IV. F. for further infonnation.
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
and OPEB. See IV.F. for further infonnation. 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.
32
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 20 I 9
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.
33
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
I. Summary of Significant Accounting Policies (Continued)
H. Revenues and Expenditures/ Expenses
I. Program Revenues
Amounts reported as program revenues include I) 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 I 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 I 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
The City has adopted and implemented GASB Statement No. 83, Accounting for Certain Asset Retirement
Obligation. This Statement establishes criteria for determining the timing and pattern of recognition of a
liability and a corresponding deferred outflow of resources for asset retirement obligations. Adoption of
GASB Statement No. 83 had no effect on the City's financial statements.
J. Future Adoption of Accounting Pronouncements
The GASB has issued the following potentially significant statements which the City has not yet adopted,
and which require adoption subsequent to September 30, 2019.
Statement
No.
84
87
88
91
Fiduciary Activities
Leases
Debt Disclosures
Conduit Debt Obligations
34
Adoption Required
September 30, 2020
September 30, 2021
September 30, 2020
September 30, 2021
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 20 I 9
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 $38,455,486 are as follows:
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
3,253,761
20,400,413
(9,551,565)
6,571,317
(3,639,474)
21,410,630
(17,780,403)
45,209,042
(33,345.713)
$ 38.455.486
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 $15,487,831
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
$ 12,840,000
137,671
1,104,090
137,257
1,118,813
150.000
Li 5,487,831
B. Explanation of Certain Differences Between the Governmental Fund Statement of Reve.nues, 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 $675,802 difference are as follows:
35
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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
$ 3,525,534
(2,811,781)
$ 713.753
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 $1,516,765 difference are as follows:
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
$ 18,361
1,459,091
$ 1,477,452
Note I.F.2, on the Excess of Expenditures Over Appropriations, describes budgetary violations that occurred for
the year ended September 30, 2019.
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.
As of September 30, 2019, the City had deposits with a carrying amount of $20,979,393, and the bank's
balances were $22,664,331. At September ·30, 20 l 9, the City had deposits of $318,898 that were exposed to
custodial credit risk because they were uninsured and uncollateralized. The City's Certificate of Deposit totaling
$95,433 is considered deposits for this footnote but is classified as investments on the face of the financial
statements.
36
CI1Y OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
B. Investments
As of September 30, 2019, the City had the following investments:
Weighted Weighted
Average Average
Credit Maturity Maturity
Type of Security Fair Value Rating {Years) (Days)
Primary Government
Federal Home Loan Mortgage Corporation $ 124,054 AA+ 8.53
Federal National Mortgage Association 6,152,197 AA+ 6.77
Certificates of Deposit 95,433 Not Rated .58
U.S. Treasury Bills OID 9,959,801 25
LOGIC Investment Pool 2,443,516 AAAm
Paris Economic Development Corporation
Texas Class Investment Pool 210861813 AAAm
Totals $ 2018611814
The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
LOGIC is a public funds investment pool managed by Southwest Securities Group, Inc. LOGIC uses amortized
cost rather than market value to report net position to compute share prices. Accordingly, the fair value of the
position in LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can
be obtained upon request.
The City invested in Texas Cooperative Liquid Assets Security System (Texas CLASS) Trust. Texas CLASS
was created as an investment pool for its participants pursuant to Section 2256.016 of the Public Funds
Investment Act, Texas Government Code, or other laws of the State of Texas governing the investment of funds
of a participant or funds under its control. Texas CLASS is administered by Cutwater Investor Services Corp.
with Wells Fargo Bank Texas, NA as the Custodian. Texas CLASS is supervised by a Board of Trustees who
are elected by the participants. Texas CLASS uses amortized cost rather than market value to report net position
to compute share prices. Accordingly, the fair value of the position in Texas CLASS is the same as the net asset
value of Texas CLASS shares. Texas CLASS issues a publicly available annual report that can be obtained at
www .texasclass.com.
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.
37
55
80
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
B. Investments (Continued)
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 consists of only externally pooled accounts.
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, 2019, 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:
Capital
General Debt Service Projects Ente!J!rise
Receivables:
Interest $ 55 $ $ $ 3,966
Property Taxes 966,591 146,216
Sales Tax 1,279,875
Accounts 207,506 264 2,472,237
Street Assessments 26,473
Fines 198,385
EMS 1,2471333
Gross Receivables 3,926,218 146,216 264 2,476,203
Less: Allowance for Uncollectibles (113331969) (361554) (1251527)
Net Total Receivables $ 2,592,249 $ 109,662 $ 264 $ 213501676
Net receivable balances not expected to be collected within one year are Property Taxes • $616,064, Fines -
$49,192, EMS -$100,000, and Street Assessments -$26,473.
At year end, PEDC had a receivable for sales tax of $256,036. The balance is expected to be collected within one
year.
38
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets
Capital assets activity for the year ended September 30, 2019, follows:
Balance Balance
9/30/18 Additions Retirements 9/30/19
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 5,927,478 $ $ $ 5,927,478
Construction in Progress 111661700 2,651,497 5641436 312531761
Total Capital Assets,
Not Being Depreciated 7,094,178 21651,497 564,436 91181J39
Capital Assets, Being Depreciated
Buildings 19,665,316 735,097 20,400,413
Improvements Other Than Buildings 6,552,117 19,200 6,571,317
Machinery and Equipment 20,992,957 650,588 232,915 21,410,630
Infastructure 45,175,454 33,588 45,2091042
Total Capital Assets,
Being Depreciated 92,385,844 1A381473 232,915 931591z402
Less Accumulated Depreciation for
Buildings 9,104,015 447,550 9,551,565
Improvements Other Than Buildings 3,345,583 293,891 3,639,474
Machinery and Equipment 17,044,869 968,449 232,915 17,780,403
Infrastructure 32,243,822 111011891 33,3451713
Total Accumulated Depreciation 61,738,289 2,811,781 232,915 64,317,155
Total Capital Assets,
Being Depreciated, Net 30,647,555 (1,373,308) 29J74J47
Governmental Activities,
Capital Assets, Net $ 37,74lz733 $ 1,2781189 $ 5641436 $ 381455,486
39
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets (Continued)
Balance Balance
9/30/18 Additions Retirements 9/30/19
Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 339,620 $ $ $ 339,620
Construction in Progress 27,4741441 513981886 310091102 2918641225
Total Capital Assets,
Not Being Depreciated 27,8141061 5,3981886 310091102 3012031845
Capital Assets, Being Depreciated
Plant, Pumps, and Motors 31 ,414,324 306,000 31,720,324
Distribution System 46,869,832 46,869,832
Collection System 25,280,843 3,019,272 28,300,115
Maintenance Equipment and Vehicles 4,131,891 140,980 4,272,871
Furniture and Equipment 210541372 210541372
Total Capital Assets,
Being Depreciated 1091751,262 31466J52 l 13Jl71514
Less Accumulated Depreciation for
Plant, Pumps, and Motors 25,126,331 621,487 25,747,818
Distribution System 28,752,392 1,424,002 30,176,394
Collection System 20,153 ,623 472,476 20,626,099
Maintenance Equipment and Vehicles 3,293,200 227,383 3,520,583
Furniture and Equipment 1,4971779 611801 115591580
Total Accumulated Depreciation 781823 1325 218071149 8116301474
Total Capital Assets,
Being Depreciated, Net 3019271937 6591103 31 15871040
Business-Type Activities,
Capital Assets, Net 58,7411998 610571989 31009,102 6117901885
Intangible Asset -Water Rights 4,113,119 4,113,119
Less Accumulated Amortization 7991301 351632 8341933
Total Intangible Asset -
Water Rights, Net 313131818 (351632) 31278,186
Business-Type Activities,
Capital and Intangible Assets, Net $62,055,816 $ 6,0221357 $ 310091102 $65,0691071
40
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
N. 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
Public Safety
Public Works, Including Depreciation of General Infrastructure Assets
Health
Culture and Recreation
Cox Field Airport
Total Depreciation Expense -Governmental Activities
Business-Type Activities
Water and Sewer
Total Depreciation Expense -Business-Type Activities
E. Deferred Compensation Plan
$ I I 8,01 I
726,291
1,567,823
147,151
120,098
132,407
$ 2,811,781
i 2,807,149
$ 2,B011H2
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 887 plans in the nontraditional, joint contributory, hybrid defmed
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 defmed 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.
41
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. 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 detennined 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 calculation. 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)
42
Plan Year 2018
6%
2 to 1
5 Years
60/5, 0/20
0%
0%ofCPI
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
I. Texas Municipal Retirement System (Continued)
Employees Covered by Benefit Terms.
At the December 31 , 2018, 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
215
122
254
591
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 I 00%, 150°/c,, 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 6.78% and 6.95% in calendar years 2018 and 2019, respectively. The
City's contributions to TMRS for the year ended September 30, 2019, were $834,605 and were equal to the
required contributions.
Net Pension Liability
The City's Net Pension Liability was measured as of December 31, 2018, 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 , 2018, actuarial valuation was determined using the
following actuarial assumptions:
Inflation
Overall payroll growth
Investment Rate of Return
2.5% per year
3.0°/c, per year
6. 75%, net of pension plan investment expense, including inflation
43
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 adjusbnents are used with
male rates multiplied by 1090/o 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 impainnent 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 3 I, 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 20 I I and dated December 3 I, 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 invesbnents 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 ofTMRS.
The long-term expected rate of return on pension plan invesbnents 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 invesbnent 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%
44
Long-Term Expected Real
Rate of Return (Arithmetic)
4.30%
6.10
1.00
3.39
3.78
4.44
3.56
7.75
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 detennine 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-tenn expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to detennine 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)
(al Cbl {al-~l
Balance at 12/3112017 $ 61,585,149 $61,668,749 $ (83,600l
Changes for the year:
Service Cost 1,198,978 1,198,978
Interest 4,092,798 4,092,798
Change of Benefit Tenns
Difference Between Expected and Actual Experience (118,708) (118,708)
Changes of Assumptions
Contributions -Employer 825,989 (825,989)
Contributions -Employee 705,973 (705,973)
Net Investment Income (1,845,475) 1,845,475
Benefit Payments, Including Refunds of Employee
Contributions (3,101,195) (3,101,195)
Administrative Expense (35,702) 35,702
Other Changes (l,865l 1,865
Net Changes 2,071,873 (3~52J75l 5,524,148
Balance at 12/31/2018 _ $ 63,657,022 _ $58,216,474 $ 5,440,548
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. 75%, 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:
45
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
I. Texas Municipal Retirement System (Continued)
City's Net Pension Liability (Asset)
I% Decrease in
Discount Rate
5.15%
$13,338,566
Pension Plan Fiduciary Net Position
Discount Rate
6.75%
$5,440,548
1 % Increase in
Discount Rate
7.75%
$(1,150,515)
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, 2019, the City recognized pension expense of$2,025,54 l .
At September 30, 2019, the City reported deferred outflows of resources and deferred inflows ofresources
related to pensions from the following sources:
Difference Between Expected and Actual Economic Experience
Deferred Outflows
of Resources
(Net of Current Year Amortization) $ 9,282
27,783 Changes in Actuarial Assumptions
Differences Between Projected and Actual Investment Earnings
(Net of Current Year Amortization)
Contributions Subsequent to the Measurement Date
Total $
3,187,626
636,012
3,860,703
Deferred Inflows
of Resources
$ 141,794
$ 141,794
$636,012 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, 2020. 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,
2020
2021
2022
2023
Thereafter
46
$ 1,109,038
384,723
387,513
1,201,623
$ 3,082,897
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 detennine
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 fonner firefighters of the City of Paris, Texas, as well as certain beneficiaries.
The City of Paris contributes 14% 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 16% of pay.
Employee contributions are "picked up" by the City of Paris, Texas, as pennitted under Section 414(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 January 1, 2019.
Contributions
The City's annual required contribution to the plan for fiscal year 2019 was based on a payroll of
$2,712,961 and amounted to $379,814. Covered employees made contributions of$434,074.
Employees Covered by Benefit Tenns
At the December 31, 2018, valuation and measurement date, the following employees were covered by the
benefit tenns:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
47
41
6
49
96
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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,
2019, and the most current available information required for disclosure under GASB Statement No. 67 is
based on an actuarial valuation as of December 31, 2016, rolled forward to December 31, 2018. The
actuarial cost method used in the December 31, 2016, 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, 2016, includes a
rate of return on the actuarial value of assets of 7 .5% 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 3.5%
compounded annually. Projected post-retirement benefit increases are zero.
48
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 12/3112017
Changes for the year:
Service Cost
Interest
Experience
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 12/31/2018
Total Pension
Liability
(a)
$ 15,057,006
263,477
1,109,567
(650,764)
(1,052,502)
679,449
349,227
$ 15,406,233
Increase (Decrease)
Plan
Fiduciary
Net Position
(b)
$ 4,790,010
336,951
411,944
(302,649)
(1,052,502)
(31,444)
(637,700)
$ 4,152,310
Net Pension
Liability
(Asset)
(a)-(b)
$ I 0,266,996
263,477
1,109,567
(650,764)
(336,951)
(411,944)
302,649
31,444
679,449
986,927
$ 11,253,923
The following presents the net pension liability of the Paris Firefighters' Relief and Retirement Fund,
calculated using the discount rate of 7.25%, 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 (6.25%) or I-percentage-point
higher (8.25%) than the current rate:
Net Pension Liability
I% Decrease in
Discount Rate
6.25%
$12,717,846
Pension Plan Fiduciaty Net Position
Discount Rate
7.25%
$] 1,136,730
I% Increase in
Discount Rate
8.25%
$9,805,481
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 30,2019, the City recognized pension expense of$902,093.
49
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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, 2019, 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
$
724,083
$ 841,360
(954,154)
Difference Between Projected and Actual Investment Earnings
Contributions Subsequent to the Measurement Date
Total $ 7241083 $ {l 12!794)
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, 2020. 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 $ 540,397
2020 106,081
2021 61,853
2022 128,546
2023
Thereafter
Total $ 836,877
G. Other Post Employment Benefit (OPEB) Obligations
l. 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 l of any
year to be effective the following January l.
50
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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-tenn 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 from the SDBF and are not an obligation of, or a claim against, the Pension
Trust Fund.
Em12loyees Covered by Benefit Terms
At the December 31, 2018 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
171
34
246
451
Contributions are made monthly based on the covered payroll of employee members of the participating member
city. The contractually required contribution rate is detennined 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 tenn 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 0.25% of gross earnings in calendar year 2018 and 2019, respectively. The
City's TMRS SDBF for the year ended September 30, 2019 were $29,385 and were equal to the required
contributions.
51
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
I. Supplemental Death Benefits Fund (Continued)
Changes in the OPEB Liability
Balance at 12/31/2017
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 /18
Increase
(Decrease)
Total OPEB
Liability
$ l,015,135
$
30,592
33,951
(13 ,049)
(67,751)
(9,413)
157,513
131 ,843
1,146,978
The following presents the total SDBF OPEB liability of the City, calculated using the discount rate of 3.71 %,
(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 (2.71%) or I-percentage-point higher (4.71%)
than the current rate:
Net Pension Liability
l % Decrease in
Discount Rate
2.71%
$1 ,171,942
Supplemental Death Benefits Fund Net Position
Discount Rate
3.71%
$989,465
l % Increase in
Discount Rate
4.71%
$845,139
Detailed information about the plan's net position is available in a separately-issued TMRS fmancial report. That
report may be obtained on the Internet at www.tmrs.com.
52
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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, 2019, the City recognized OPEB expense in the amount of $63,775.
At September 30, 2019, 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) $ $ 10,423
Changes in Actuarial Assumptions 46,004 54,119
Differences Between Projected and Actual Investment Earnings
(Net of Current Year Amortization)
Contributions Subsequent to the Measurement Date 22!878
Total $ 68,882 $ 64,542
$22,878 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, 2020. 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
2020
2021
2022
2023
Thereafter
Total
$ (768)
(768)
(1,234)
(15,768)
... L.Jl8,538L
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.
53
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 retiree as set for by City
ordinance. Retirees are responsible for the full cost of their retiree health benefits. Retirees who meet 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 Tenns
At the December 31, 2018 valuation and measurement date, the following employees were covered by benefit
tenns:
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, 20 I 9, the
contributions were approximately $12,936 for 12 retired employees .
...
54
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 12/3 I /2017
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 12/31/18
Increase
(Decrease)
TotalOPEB
Liability
$ 1,691,999
$
36,808
55,250
(10,869)
(36,122)
(82,466)
(37,399)
12654,600
The following presents the total Plan OPEB liability of the City, calculated using the discount rate of3.71%, 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 (2.71 %) or I-percentage-point higher(4.71 %) than the current rate:
Net OPEB Liability
1 % Decrease in
Discount Rate
2.71%
$1,755,220
Discount Rate
3.71%
$1,654,600
l % Increase in
Discount Rate
4.71%
$1,558,282
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 if it were calculated using a trend rate that is one percent lower or one
percent higher:
1% Decrease
Net OPEB Liability $1,515,128
55
Current Healthcare
Cost Trend Rate
Assumption
$1,654,600
1% Increase
$1,810,196
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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, 2019, the City recognized OPEB expense in the amount ofS 12,936.
At September 30, 2019, 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 Amortiz.ation)
Changes in Actuarial Assumptions
Contributions Subsequent to the Measurement Date
Total
Deferred Outflows
of Resources
$
116,117
63 554
$ 179,671
Deferred Inflows
of Resources
$
$
$63,554 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, 2020. 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,
2020 $ 791
2021 791
2022 791
2023 791
2024 (5,545)
Thereafter 1181498
Total $ 1161117
56
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
H. Water Sales and Commitments
1. 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, 2019, were
approximately $2,650,686.
2. Construction Commitments
The City has active construction projects as of September 30, 2019. 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
Other Construction
Total
3. Water Storage Commitment
To Date
$23,243,182
2,424,758
9,000
$25,676,940
Commitment
$ 6,503,297
3,237,062
100,000
$918401359
The City has the right to utilize an undivided I 00% 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 hoteVmotel 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, 2019, 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.
57
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
H. Water Sales and Commitments (Continued)
6. Other Commibnents -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 $324,850.
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.
American Spiral Weld -On October I, 2018, the Board of Directors reached an incentive agreement with
American SpiralWeld Pipe Company, LLC. PEDC will invest up to $4,700,000 in cash, land, and
improvements in connection with a new manufacturing facility, job creation, and employment retention.
The remaining balance is estimated to be $2,709,072.
Huhtamaki -On September 17, 2019, the Board of Directors reached a perfonnance agreement with
Huhtamaki providing that upon the retention of jobs, PEDC will provide funds to help establish the rail
spur from the north/south rail to the Huhtamaki plant. The remaining balance is estimated to be $100,000.
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 30, 2019. There have been no settlements in excess of insurance coverage in any of the prior
three fiscal years.
J. Capital Leases
In September 2015, 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
$
$
617,114
225,235
391,879
58
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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, 2019, are as follows:
Year Ending September 30,
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
72,353
434,118
(42,239)
391,879
(60,594)
$ 3311285
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
262,974
$ 712,211
The future minimum lease payments required under the capital leases and the present value of the net minimum
lease payments as of September 30, 2019, are as follows:
Year Ending September 30,
2020
2021
2022
2023
2024
2025-2026
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
$ I 14,337
114,337
114,337
114,337
114,337
228,666
800,351
(88,140)
712,211
(92,967)
$ 619,244
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.
59
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Term 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 2010, due in annual installments
varying from $145,000 to $230,000 with final payment due December 15, 2029. Interest is payable semi-
annually at rates ranging from 3.0% 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 of $1,160,000, with
final payment due June 15, 2020. Interest is payable semi-annually at a rate of3.500%. 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
$390,000 to $405,000 with final payment due December 14, 2021. On December 18, 2012, the City issued this
series bearing interest of 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 $380,000 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.
60
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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 $750,000 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 2016, due in annual installments varying from $340,000 to
$550,000 with final payment due December 15, 2036. Interest is payable semi-annually at rates ranging from
3.0% 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 I, 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 I, 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 purchase 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, 2019, the fund balances in the Interest and
Sinking Funds are $1,727,065.
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.
61
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
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, 2019, follows:
Balance Balance
September 30, September 30, Due Within
2018 Additions Reductions 2019 One Year
Governmental Activities
Debt Payable
Bonds Payable $ 14,150,000 $ $ 1,310,000 $ 12,840,000 $ 1,365,000
Premium 156,032 18,361 137,671 14,815
Capital Leases 1,253,181 149 091 111041090 1431564
Total Debt Payable 15,559,213 1,477,452 14,081,761 1,523,379
Compensated Absences 1,157,575 673,521 712,283 1,118,813 111,881
Landfill Post-Closure
Care Costs 1501000 1501000
Governmental Activities
Long-Term Liabilities $ 16,866,788 $ 673,521 $ 211891735w $ 15,350,574 $ 1.635.260
Business-Type Activities
Debt Payable
Bonds Payable $ 43,225,000 $ $ 2,150,000 $ 41,075,000 $ 2,200,000
Premium 1,039,589 1251521 9141068 1261857
Total Debt Payable 44,264,589 2,275,521 41,989,068 2,326,857
Compensated Absences 2151796 1561409 1611162 211,043 21,104
Business-Type Activities
Long-Term Liabilities $ 44,480,385 $ 156,409 $ 2,436.683 $ 42,200,111 $ 2,347.961
Component Unit
Note Payables $ $ 116971000 $ 511807 $ 11645,193 $ 871799
Component Unit
Long-Term Liabilities $ $ 1,697,000 $ 51,807w $ 1,645,193 .1,.._87,799w
For the governmental activities, compensated absences are liquidated by the general fund.
62
CITY OF PARJS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long-Tenn Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long-Term Obligations: (Continued)
Long-tenn 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 301 Princieal Interest Princieal Interest
2020 $ 1,365,000 $ 364,291 $ 2,200,000 $ 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 605,000 258,040 2,555,000 1,233,861
2025-2029 3,350,000 986,640 14,225,000 4,512,551
2030-2034 2,985,000 508,569 13,445,000 1,458,242
2035-2037 1,8501000 1061448 115601000 73 471
Totals $ 12,840,000 $ 4a51451 $ 411075!000 $ 13,2361863
PEDC has an outstanding $697,000, Note Payable, issued November 27, 2018, due in monthly installments of
$5,086 through November 27, 2033, bearing an interest rate of 3.75%. At September 30, 2019, the balance of
the Note Payable was $667,790.
PEDC has an outstanding $1 ,000,000, Note Payable, issued March 5, 2019, due in monthly installments of
$7,316 through March 27, 2034, bearing an interest rate of3.75%. At September 30, 2019, the balance of the
Note Payable was $977,403 .
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, 2019, the City made transfers from the Water and Sewer Fund to the Debt
Service Fund of $5,427 to make debt service payments. The City also made a transfer of fixed assets from the
Capital Projects fund to the Water and Sewer Fund of $326,613. Other minor transfers were made between
funds making up transfers of:
Other Water and
General Debt Service Governmental Sewer Transfers Out
General $ $ $ 3,706 $ 123,840 $ 127,546
Debt Service 96,550 96,550
Capital Projects 326,613 326,613
Water and Sewer 18,513 5,427 32 231972
Transfers In $ 181513 $ 51427 $ 31738 $ 5471003 $ 5741681
63
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
M. Restricted Net Position and Restricted Asset Accounts
In the General Fund, the proceeds from downtown vacant building owners, that are required to register their
building annually, is restricted for improvements in the downtown area. At September 30, 2019, this account
consisted of$9,500.
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, 2019, these accounts, shown as cash and investments on the Statement ofNet Position
-Proprietary Funds, are as follows:
Reserve Fund
Contingency Fund
$ 5,481,391
5,855,282
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
Other
Total Restricted Assets
N. Related Party
Cash and Cash
Equivalents
$
$
3,766
495,199
34,919
1,824,042
3,177,710
9 500
5,545,136
Certificates of
Deposit and
Other
Investments
$
837,388
6,530,447
10,913,808
$ 18,281,643
Other
Receivables
$ 572;1.72
$ 572;1.72
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.
64
CITY OF PARIS, TEXAS
Notes to the Financial Statements (Continued)
September 30, 2019
IV. Detailed Notes on All Activities and Funds (Continued)
P. Tax Abatements
As of September 30, 2019, the City provides tax abatements through two progams-Industrial and Residential:
l. 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. Provisions for recapturing abated taxes, if any, are
included in this 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°/c,, Year 2-100%, Year 3-80%, Year 4-60%, and Year 5-40°/c,. The City has a
standard written residential tax abatement agreement. Provisions for recapturing abated taxes, if any, are
included in this policy.
Tax Abatement Program
Industrial Incentives
Residential Incentives
Q. Prior Period Adjustment
Amount of Taxes Abated 2018-19
$ 271,928,080
269,940
During the fiscal 2019, the City determined that an adjustment was necessary to the grant receivable account.
The prior period adjustment totaled $172,209 for governmental activities. The restated beginning net position
for governmental activities is $33,143,308, respectively.
R. Subsequent Event
In January 2020, the City issued $1 ,500,000 General Obligation Bonds, Series 2020, to fund renovations of the
Love Civic Center as a venue project. The interest rate is 1.95% paid semi-annually with the final maturity date
due on June 15, 2030.
In March 2020, the City approved a construction commitment not to exceed $451,692 related to the pump track
project. The project is to be funded with grant revenues and donations.
In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a
pandemic, which continues to spread through the United States. The spread of COVID-19 has caused
significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and
duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international
economies and, as such, the City is unable to determine ifit will have a material impact to its operations.
65
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF PARIS, TEXAS
Required Supplcmentmy Information
Texas Municipal Retirement System •
Schedule of Changes in Net Pension Liability
Year Ended September 30, 2019
Plan Year EnMd December 31,
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 -BegiMing
Total Pension Liability• Ending
Plan Fiducia,y Net Position
Contnl>utions • Employer
Contn'butions • Employee
Net Investment Income
Benefit Payments, Including Refunds of Employee Contnl>utions
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 Payroll
City's Net Pension Liability as a Percentage of Covered
Payroll
2018
s 1,198,978
4,092,798
(I 18,708)
{311011195)
2,071,873
61~851149
S 63,657.,022
s 825,989
705,973
(1,845,475)
(3,101,195)
(35,702)
{1,865)
(3,452,275)
61,668,749
S 58,216,474
s 5,440,548
91.45%
S 11,766,222
46.24%
2017
s 1,192,255
3,952,930
19,208
p,090,075)
2,074,318
5915101831
S 61,585,149
s 817,914
704,087
7,698,497
(3,090,075)
(39,921)
{2,023)
6,088,479
5515801270
$61,668,749
s (83,600)
100.14%
$ I 1,734,791
-0.71%
2016 2015
s 1,190,613 s 1,084,666
3,826,176 3,718,773
1,615,467
(211,467) (159,282)
{2,766,533} {2,741,148)
2,038,789 3,518,476
57,472,042 5319531566
S 59,510,831 S 57,472,042
s 669,501 s 700,159
701,189 676,545
3,607,913 80,774
(2,766,533) (2,741,148)
(40,766) (49,204)
{2,196) {2,430)
2,169,108 (1,335,304)
5314111162 54,746,466
S 55,580,270 $53,411,162
s 3,930,561 s 4,060,880
93.40% 92.93%
$ I 1,684,128 S 11,203,172
33.64% 36.25%
Schedule I
2014
s 1,084,779
3,592,818
(191,294)
{2,632,638)
1,853,665
52,099,901
S 53,953,566
s 721,733
667,048
3,031,103
(2,632,638)
(31,651)
_Q,602)
1,752,993
52,993,473
S 54,746,466
s (792,900)
101.47%
$ I 1,177,790
-7.09"/4
Note: The pension schedules in the required supplementary information arc intended to show infonnation for ten years. Additional years' infonnation will be displayed as it becomes
available.
66
Contrac:tuaUy Required Fiscal Year Contnl>ution
CITY OF PARIS, TEXAS
Required Supplemental)' lnfonnation
Texu Municipal Retirement System •
Schedule of City Contn"butions
Year Ended September 30, 2019
2iil~
s 834,605 s
Contn"bulion in Relation to the Contractually Required Fiscal Year Contribution !834,605)
Contn"bution Oclic:iency (Exeess) s s
Co\'a'ed Payroll s 11,980,216 s
Contributions as a Percentage of Covered Payroll 6.97%
Schedule 2
2iilR Fisc:al Year Ended §!!!ember 30,
21117 2lllli 21113
825,691 s 801,727 s 733,564 s 704,441
!825,691) !8011727) !733~1 p04,441)
s s s
11,846,360 s 11,615,574 s 12,058,579 s 11,203,172
6.97% 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.
67
CITY OF PARIS, TEXAS
Roquired Supplementary lnfonnalion
Paris Firelighters' Relief and Retirement Fund •
Schedule ofClllngcs in Net Pension Liability
Year Ended September 30, 2019
Plan Year Ended December 31,
2018 2ii11 2016 2015
Tocal Pension Liability
Service Cost $ 263,477 $ 254,567 $ 258,484 $ 247,353
Interest 1,109,567 1,094,074 1,109,262 1,092,874
Clan,es in Benefit Terms
Diff'erencea Between Expected and Actual Experience (650,764) (65,973)
Chan,es in Asswnplions 562,256 616,266
Benefit Payments, Including Refunds of Employee Contributions (1,052,502) (IJ491430) (11136)79) (1,156,654)
Net Change in Tocal Pension Liability 232,034 99,211 781,660 183,573
T Olal Pension Liability • Beginning 15,057,006 14,957,795 14,175,471 13,991,898
Total Pension Liability• Ending $ 15J89,040 $ 15,057,006 $ 14,957,131 $14,175,471
Plan Fiduciary Net Position
Contributions • Employer $ 336,951 $ 326,396 $ 317,902 $ 310,483
Contnl>utions • Employee 411,944 407,996 397,475 388,212
Net lnwstment Income (302,649) 578,324 377,387 (121,104)
Benefit Payments, Including Refunds of Employee Contnl>utions (1,052,502) (1,249,430) (1,136,379) (1,156,654)
Administralive ~ (31,444) (37,553) (70,404) (6,500)
Other 5 2,121
Net Oiange in Plan Fiduciary Net Position (637,700) 25,738 (111,898) (585,563)
Plan Fiduciary Net Position • Begirmin8 4,790,010 4,764~72 4,876,170 514611733
Plan Fiduciary Net Position • Ending $ 4,152)10 $ 4,790,010 $ 4,764,272 $ 4,~!.!Q,. =
City's Net Pension Liability (Asset)• Ending $11,136,730 $ 10,266,996 $10,192,859 S 9,299,301
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 27.16% 31.81% 31.85% 34.40%
Cowred Payroll $ 2,712,961 $ 2,717,229 $ 2,785,912 $ 2,511,047
City's Net Pension Liability as a Percentage of Covered
Payroll 410.50% 377.85% 365.87% 370.34%
Schedule 3
2iil4
$ 236,701
1,087,700
(238,406)
134,458
(1~001964)
19,489
13,972,409
$ 13,9911898
$ 281,896
352,370
245,555
(1,200,964)
(84,445)
5)15
(400.213f
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 a,e intended to show information for ten years. Additional years' infonnalion will be displayed as it becomes
available.
68
CITY OF PARIS, TEXAS
Required Supplemental)' Information
Paris Firefighters' Relief and Retirement Fund
Schedule or City Contnbutions
Year Ended September 30, 2019
Fiscal Year Ended September 30, 2111~ 2111R :m1r-2?11~
Conlm:IUally Required Fiscal Year Contnbution s 336,951 s 326,067 s 320,SSI s 332,665
Conlnbution in Relation to the Contrac:tually Required Fiscal Year Contribution !336,9SI) !326,067) (320,SSI) (332,6652
Contnbulion Deficiency (Excess) s s s s
Covered Payroll s 2,713,093 s 2,717,229 s 2,19S,46S s 2,772,967
Contnbutions as a Pen:cntage of Coll'Cl'ed Payroll 12.42% 12.00% 11.48% 12.00%
Scbedule4
21113
s 301,329
(301,3292
s
s 2,Sll,047
12.00%
Note: The pension schedules in the required supplementaiy information are intended IO show information for ten years. Additional years' infonnation will be displayed as it becomes
IWJ°Jable.
69
CITY OF PARIS, TEXAS
Required Supplementary Infonnation
Texas Municipal Retirement System -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30, 2019
Schedule 5
Plan Year Ended December 31 1 2018 2017
Total OPEB Liability
Service Cost $ 30,592 $ 26,990
Interest 33,951 33,850
Changes in Benefit Terms
Differences Between Expected and Actual Experience (13,049)
Changes in Assumptions (67,751) 76,984
Benefit Payments, Including Refunds of Employee Contributions {91413) {9J88)
Net Change in Total OPEB Liability (25,670) 128,436
Total OPEB Liability -Beginning 110151135 8861699
Total OPEB Liability -Ending $ 989,465 $ 1,015,135
Covered Payroll $ 11,766,222 $ 11,734,791
City's Total OPEB Liability as a Percentage of Covered
Payroll 8.41% 8.65%
Note: The pension schedules in the required supplementary infonnation are intended to show infonnation for ten years. Additional
years' information will be displayed as it becomes available.
70
Actuarially Detennined Contribution
CITY OF PARIS, TEXAS
Required Supplementary Infonnation
Texas Municipal Retirement System -
Schedule of City Contributions
Year Ended September 30, 20 I 9
Contributions in Relation to Actuarially Detennined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
$
$
$
Schedule 6
Fiscal Year Ended Seetember 30,
2019 2018
29,385 $ 27,247
(29,385) (27,247)
I
I 1,980,216 $ 11,846,360
0.25% 0.23%
Note: The pension schedules in the required supplementary infonnation are intended to show infonnation for ten years. Additional
years' information will be displayed as it becomes available.
71
CITY OF PARIS, TEXAS
Required Supplementary Infonnation
City of Paris Retiree Health Care Plan -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30, 2019
Schedule 7
Plan Year Ended December 31,
2018 2017
Total OPEB Liability
Service Cost $ 36,808 $ 36,410
Interest 55,250 61,432
Changes in Benefit Tenns
Differences Between Expected and Actual Experience (10,869)
Changes in Assumptions (36,122) 51,925
Benefit Payments, Including Refunds of Employee Contributions {82,466} {1031929}
Net Change in Total OPEB Liability (37,399) 45,838
Total OPEB Liability -Beginning 116911999 116461161
Total OPEB Liability -Ending $ 1,654,600 $ 1,6911999
Covered Payroll $ 4,814,704 $ 5,284,495
City's Total OPEB Liability as a Percentage of Covered
Payroll 34.37% 32.02%
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.
72
Actuarially Detennined Contribution
CITY OF PARIS, TEXAS
Required Supplementary lnfonnation
City of Paris Retiree Health Care Plan -
Schedule of City Contributions
Year Ended September 30, 2019
Contributions in Relation to Actuarially Detennined Contribution
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
$
$
$
Schedule 8
Fiscal Year Ended Seetember 30,
2019 2018
30,854 $ 33,407
(30,854) (33,407)
i
4,814,704 $ 5,284,495
0.64% 0.63%
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.
73
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.
74
CITY OF PARIS, TEXAS Schedule 9
Combining Balance Sheet -Nonmajor Governmental Funds
September 30, 2019
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 $ 218,102 $ 202,033 $ 74,469 $ 494,604 $ 574 $ 495,178
Investments 95,433 95,433
Receivables (Net) 264 264 264
Total Assets $ 218,102 $ 202,297 $ 74,469 $ 494,868 $ 96,007 $ 590,875
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable $ $ $ $ $ $
Total Liabilities
Fund Balances:
Nonspendable
Permanent Library Funds 96,007 96,007
Restricted for:
Notes
Law Enforcement 202,297 202,297 202,297
Assigned:
Library 74,469 74,469 74,469
Community Development 218,102 218,102 218,102
Total Fund Balances 218,102 202,297 74,469 494,868 96,007 590,875
Total Liabilities and
Fund Balances $ 218,102 $ 202,297 $ 74,469 $ 494,868 $ 96,007 $ 590,875
75
CITY OF PARIS, TEXAS Schedule 10
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2019
Special Revenue Pennanent
Community Total
Development Library Library Nonmajor
Block Special Memorial Trust Governmental
Grant Revenue Funds Total Funds Funds
REVENUES
Fees and Fines $ $ 46,602 $ $ 46,602 $ $ 46,602
Intergovernmental
Interest Earned 4,643 4,469 1,824 10,936 2,318 . 13,254
Miscellaneous 249 3,307 3,556 3,556
Total Revenues 4,643 51,320 5,131 61,094 2,318 63,412
EXPENDITURES
Current
General Government 16,946 16,946 16,946
Public Safety 35,009 35,009 35,009
Community Development
Health
Culture and Recreation 16,216 16,216 16,216
Debt Service
Principle
Interest & Other Charges
Capital Outlay
General Government
Public Safety
Total Expenditures 51,955 16,216 68,171 68,171
Excess (Deficiency) of Revenues
Over (Under) Expenditures 4,643 (635) (11 ,085) (7,077) 2,318 (4,759)
Other Financing Sources (Uses)
Transfers In 3,738 3,738 3,738
Transfers Out
Total Other Financing
Sources (Uses) 3,738 3,738 3,738
Net Changes in
Fund Balances 4,643 3,103 (11,085) (3,339) 2,318 (1,021)
Fund Balances -Beginning 213,459 199,194 85,554 498,207 93,689 591,896
Fund Balances -Ending $ 218,102 $ 202,297 $ 74,469 $ 494,868 $ 96,007 $ 590,875
76
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, 2019
Budgeted Amounts Variance with
Original Final Actual Final Bud&et
REVENUES
Fees and Fines $ 33,500 $ 33,500 $ 46,602 $ 13,102
Intergovernmental
Interest Earned 4,469 4,469
Miscellaneous 249 249
Total Revenues 33,500 33,500 51,320 17,820
EXPENDITURES
Municipal Court 102,250 102,250 16,946 85,304
Police 74,000 74,000 35,009 38,991
Health 3,500 3,500 31500
Total Expenditures 179,750 179,750 51,955 127,795
Excess (Deficiency) of Revenues
Over (Under) Expenditures (146,250) (146,250) (635) 145,615
Other Financing Sources (Uses)
Transfers Out 3,738 3,738
Total Other Financing
Sources (Uses) 3,738 3,738
Net Changes in Fund Balance (146,250) (146,250) 3,103 149,353
Fund Balance -Beginning 199,194 199,194 199,194
Fund Balance -Ending $ 52,944 $ 52,944 $ 202,297 $ 149,353
77
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, 2019
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Property Taxes $ 1,821,009 $ 1,821,009 $ 1,769,743 $ (51,266)
Interest Earned 461601 461601
Total Revenues 1,821,009 1,821,009 1,816,344 (4,665)
EXPENDITURES
Bond Principal Retirement 2,094,098 2,094,098 1,391,113 702,985
Interest and Fiscal Charges 4661760 466,760 443J05 231555
Total Expenditures 2,560,858 2,560,858 1,834,318 7261540
Excess of Revenues
Over Expenditures (739,849) (739,849) (17,974) 7211875
Other Financing Sources (Uses):
General Obligation Bonds Issued
Transfers In 739,849 739,849 5,427 (734,422)
Transfers Out (96,550) (96,550)
Total Other Financing
Sources (Uses) 739,849 7391849 (91,123) (830,972},
Net Changes in Fund Balance (109,097) (109,097)
Fund Balance -Beginning 1,836,162 1,836,162 1,836,162
Fund Balance -Ending $ 1,836,162 $ 1,836,162 $ 1,727,065 $ (109,097)
78
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, 2019
Project
Prior Current Total Authoriution
Years Year to Date (Budget)
REVENUES
Interest Earned $ 283,549 $ 1981913 $ 4821462 $
Total Revenues 283,549 198,913 482,462
EXPENDITURES
City Council 246,894 114,349 361,243 239,109
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 1,181,019
Streets and Highways 6,870,074 2,510,928 9,381,002 8,095,265
Health 120,553 23,679 144,232 228,000
Library 7,100 7,100 15,000
Cox Field Airport 110,667 110,667 90,100
Total Expenditures 10,449,817 2,648,956 13,098,773 12,879,751
Deficiency of Revenues
Over Expenditures ( I 0, 166,268) (2,450,043) (12,616,31 I) (12,879,751)
Other Financing Sources (Uses):
Transfers In 8,166,042 8,166,042
Transfers Out (2,222,936) (326,613) (2,549,549)
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 $ 8,785,337 (2,776,656) $ 6,008,681 $ (12,879,7512
Fund Balance -Beginning 8,955,644
Fund Balance -Ending $ 6,178,988
79
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERNMENTAL FUNDS
CITY OF PARIS, TEXAS Schedule 14
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2019 and 2018
2019 2018
Governmental Funds Capital Assets:
Land $ 5,927,478 $ 5,927,478
Buildings 20,400,413 19,665,316
Improvements Other Than Buildings 6,571,317 6,552,117
Machinery and Equipment 21,410,630 20,992,957
Infrastructure 45,209,042 45,175,454
Construction in Progress 3,253,761 1,166,700
Total Governmental Funds Capital Assets $ 102,772,641 $ 99,480,022
Investments in Governmental Funds Capital Assets by Source:
General Fund $ 67,252,092 $ 66,609,277
Capital Projects Funds 27,912,295 25,262,491
Donations 7,608,254 7,608,254
Total Invesbnents in Governmental Funds Capital Assets by Source $ 102,772,641 $ 99,480,022
80
STATISTICAL SECTION
ST A TISTICAL 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 revenue 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.
81
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
2010 2011 2012
$ 26,871,917 $ 25,311,134 $ 27,532,353
5,454,967 3,958,563 5,421,971
10,358,596 12,801,387 12,700,759
$ 42,685,480 $ 42,071,084 $ 45,655,083
$ 28,883,901 $ 31,855,910 $ 34,499,646
1,636,722
9,815,653 l l,416,134 8,496,996
$ 40,336,276 $ 43,272,044 $ 42,996,642
$ 55,755,818 $ 57,167,044 $ 62,031,999
7,091,689 3,958,563 5,421,971
20,174,249 24,217,521 21,197,755
$ 83,021,756 $ 85,343,128 $ 88,651,725
82
Table 1
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 2015
$ 28,427,758 $ 28,043,910 $
4,949,039 3,393,033
10,023,934 5,694,771
$ 43,400,731 $ 37,131,714 $
$ 33,041,432 $ 33,331,038 $
12,172,944 13,508,734
$ 45,214,376 $ 46,839,772 $
$ 61,469,190 $ 61,374,948 $
4,949,039 3,393,033
22,196,878 19,203,505
$ 88,615,107 $ 83,971,486 $
Fiscal Year
2016 2017
30,505,784 $ 21,971,338 $
3,003,799 3,004,564
1,890,470 11,159,128
35,400,053 $ 36,135,030 $
33,466,855 $ 24,198,822 $
14,460,833 22,900,345
47,927,688 $ 47,099,167 $
63,972,639 $ 46,170,160 $
3,003,799 3,004,564
16,351,303 34,059,473
83,327,741 $ 83,234,197 $
83
2018
20,713,428 $
12,548,372
53,717
33,315,517 $
18,322,809 $
22,945,722
41,268,53 1 $
39,036,237 $
12,548,372
22,999,439
74,584,048 $
2019
18,064,569
8,782,171
4,831,122
31,677,862
25,779,748
16,473,443
42,253,191
43,844,317
8,782,171
21,304,565
73,931,053
Table 1
(Continued)
CITY OF PARIS, TEXAS Table2
Changes in Net Assets/Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2010 2011 2012 2013
EXPENSES
Governmental Activities:
General Government $ 2,632,370 $ 2,890,290 $ 2,094,110 $ 2,905,871
Finance 481,106 437,320 480,144 393,526
Public Safety 10,021,261 9,880,712 10,771,351 9,982,926
Public Works 7,279,655 7,667,367 7,568,269 8,396,001
Health 3,184,085 3,202,551 3,416,360 3,348,281
Library Services 751,523 719,240 712,033 787,242
Cox Field Airport 225,565 220,027 261,463 259,938
Interest on Long-Term Debt 460,678 438,460 342,554 436,690
Bond Issue Costs 314,765
Total Governmental
Activities Expenses 25,036,243 25,455,967 25,646,284 26,825,240
Business-Type Activities:
Water and Sewer Services 10,423,943 10,694,363 11,008,967 11,504,538
Total Primary Government
Expenses 35,460,186 36,150,330 36,655,251 38,329,778
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government 2,447
Public Safety 757,291 606,792 729,267 412,150
Public Works 1,709,552 1,775,841 1,788,753 1,860,656
Health 2,595,679 2,608,306 2,721,421 2,463,907
Library Services 21,123 19,707 20,877 27,824
Cox Field 78,234
Operating Grants
and Contributions 1,431,301 1,953,631 1,305,387 1,959,427
Capital Grants
and Contributions 355,429 205,628 636,974 117,080
Total Governmental Activities
Program Revenues 6,870,375 7,169,905 7,202,679 6,921,725
Business-Type Activities:
Charges for Services:
Water and Sewer Service 13,650,486 13,798,137 13,852,441 14,005,748
Total Primary Government
Program Revenues 20,520,861 20,968,042 21,055,120 20,927,473
84
2014 2015
$ 2,997,393 $ 2,909,807
407,463 404,567
10,449,953 11,037,966
7,909,651 7,508,978
3,228,513 2,404,782
816,376 790,339
158,632 152,063
287,256 276,197
26,255,237 25,484,699
11,940,791 11,929,499
38,196,028 37,414,198
3,310 17,634
433,828 370,308
1,799,918 1,862,606
2,371,757 2,391,817
19,400 19,433
67,037 76,689
926,506 1,396,711
690,176 271,961
6,311,932 6,407,159
13,881,328 14,281,964
20,193,260 20,689,123
Fiscal Year
2016 2017
$ 3,463,908 $ 3,748,965
400,665 398,262
12,595,127 12,456,655
7,020,333 7,126,349
2,633,051 2,836,429
799,187 781,092
217,995 235,546
237,313 185,852
27,367,579 27,769,150
l2,l00,940 14,095,860
39,468,519 41,865,010
6,572 181,197
361,100 342,083
1,780,836 1,463,576
2,519,387 2,609,811
16,874 127,997
91,810 98,382
672,298 338,718
424,332 2,147,065
5,873,209 7,308,829
14,617,218 13,781,748
20,490,427 21,090,577
85
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
4117561925
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
2019
$ 3,651,888
402,943
13,228,151
8,274,343
3,205,596
914,874
344,964
194,004
30,216,763
14,568,695
4417851458
304,818
353,571
1,437,157
2,979,160
100,014
161,527
165,064
1,160,602
6,661,913
14,452,703
21,114,616
Table 2
(Continued)
CITY OF PARIS, TEXAS Table2
Changes in Net Assets/Position
Last Ten Fiscal Years
(Continued)
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2010 2011 2012 2013 Net(Expense)/Revenue
Governmental Activities (18, 1651868) (18J86,062) (181443.605) (191903,515)
Business-Type Activities 3,226,543 3,103,774 2,843,474 21501,210
Total Primary Government,
Net Expense (14,939,325) (15,182,288) (l 516001131) (17,402,305)
General Revenues and Other Changes in Net Assets/Position
Governmental Activities:
Taxes
Property 7,853,487 7,620,281 7,619,472 7,597,667
Sales 5,843,494 6,033,469 5,993,859 6,304,250
Franchise 2,743,214 2,719,496 2,731,097 2,550,447
Hotel Occupancy 500,755 449,213 498,667 572,150
Investment Earnings 113,006 84,327 55,875 64,386
Grants, Donations, and Miscellaneous 1,642,126 615,222
Capital Contributions 1,062,139 764,880 3,486,508 2,527,979
Gain/Loss on Sale of Capital Assets
Transfers
Total Governmental Activities 18,116,095 17,671,666 22,027,604 20,232,101
Business-Type Activities:
Taxes
Investment Earnings I03,220 162,374 63,722 (42,124)
Contribution 728,317 434,500 303,910 550,978
Transfers ( 1,0621139) (764,880) (3,486,508) (2,527,979)
Total Business-Type Activities (230,602) (168,006) (3,118,876) (2,019,125)
Total Primary Government 17,885,493 17,503,660 18,908,728 18,212,976
Changes in Net Assets/Position
Governmental Activities (49,773) (614,396) 3,583,999 328,586
Business-Type Activities 2,9951941 2,935,768 (275,402) 482,085
Total Primary Government $ 2,946,168 $ 2,321,372 $ 3,308,597 $ 810,671
86
Fiscal Year
~014 2015 2016 2017
(19,943,305) (19,077,540) (21,494,370) (20,460,321)
1,940,3~7 2,352,465 2,516,278 (314,112)
-(18,002,768} (16,725,075) (I 8,978,092) (20,7741433)
7,575,840 7,651,005 7,748,872 8,175,530
6,416,749 7,684,113 7,051,858 7,233,526
2,662,604 2,641,537 2,502,614 4,211,397
547,354 594,493 630,545 657,270
45,799 51,741 80,129 173,656
122,703 369,689 315,989 361,125
(10,682) 1,087,474 651,847
(57,026)
1,579,100 382,794
17,360,367 20,080,052 20,503,928 21,195,298
83,206 77,787 291,131 315,872
101,000
101682 (110871474) (1,579,100) (382,794)
1941888 (1,009,687) (1)87,969) (66,922)
175551255 1910701365 19,215,959 21,128,376
(2,582,938) 1,002,512 (990,442) 734,977
21135A25 1,342,778 112281309 (381,034)
$ {4471513} $ 21345J90 $ 2371867 $ 353,943
87
2018
(211436,409)
(425,375)
(21,861,784)
9,170,951
7,317,162
4,315,694
662,263
426,518
387,306
(57,940)
610,955
22,832,909
380,393
(610,955)
(230,562)
22,602,347
1,396,500
(655,937)
$ 740,563 $
2019
{2315541850)
(115,992)
(2316701842).
9,358,943
7,369,079
4,305,851
675,158
581,115
272,338
49,951
(523,03Q
22,089,404
577,621
523,031
1,100,652
23,190,056
(1,465,446)
984,660
(480,786)
Table2
(Continued)
CITY OF PARIS, TEXAS Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2010 2011 ()) 2012 ()) 2013 ())
General Fund
Nonspendable $ 214,932 $ 199,519 $ 218,117 $ 271,292
Restricted
Unassigned I 1,376,619 12,156,169 11,764,593 1119691203
Total General Fund $ 111591,551 $ 12,355,688 $ 11,982.710 $ 12.240.495
All Other Governmental Funds
Reserved $ 5,540,873 $ $ $
Unreserved, Reported in:
Special Revenue Funds 781,230
Pennanent Funds 86,564
Nonspendable 88,520 89,632 90,062
Restricted 3,870,043 5,332,339 4,858,977
Assigned 532,263 456,463 457,471
Unassigned
Total All Other Governmental Funds $ 6,408,667 $ 4,490,826 $ 5,878,434 $ 5,406,510
( 1) The fund balance of All Other Governmental Funds is classified consistent
with recent pronouncements (GASB 54). Previous years have not been restated.
88
Fiscal Year
2014 (I) 2015 (I) 2016 (I) 2017 (1)
$ 233,127 $ 294,776 $ 223,91 I $ 326,985
271,269 331,086 387,950 446,493
11,194,101 12,969,124 10,227,839 10,849,390
$ 11,698,497 $ 13,594,986 $ 10,839,700 $ 11,622,868
$ $ $ $
90,572 90,800 91,565 92,347
3,031,192 2,726,900 2,525,049 12,009,532
389,511 267,440 188,569 82,042
57,705
$ 3,511,275 $ 3,085,140 $ 2,805,183 $ 12,241,626
89
2018(1)
$ 418,995
498,359
11,753,392
$ 12,670,746
$
93,689
10,991,000
299,013
$ 11,383,702
2019 o>
$ 483,575
577,814
12,390,089
$ 13,451,478
$
96,007
8,108,350
292,571
$ 8,496,928
Table 3
(Continued)
CITY OF PARIS, TEXAS Table4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2010 2011 2012
REVENUES
Taxes $ 16,941,815 $ 16,824,545 $ 16,822,577
Licenses and Pennits 88,935 112,142 145,792
Fines and Fees 526,668 501,601 550,496
Use of Money and Property 274,986 313,948 210,476
Public Safety 57,369 40,297
Sanitation 1,347,707 1,461,736 1,468,917
Health 2,621,420 2,578,496 2,818,196
Intergovernmental 1,736,61 I 1,768,322 1,858,092
Other 301,069 2471354 2711709
Total Revenues 23,896,580 23,8481441 24,1461255
EXPENDITURES
Current:
General Government 1,109,767 1,219,607 1,029,702
Finance 462,282 425,455 473,719
Public Safety 9,489,393 9,154,646 9,659,131
Public Works 5,509,576 7,459,432 5,757,456
Health Department 942,596 908,339 955,930
Emergency Medical Service 2,095,897 2,146,210 2,302,247
Library 642,830 630,977 632,515
Cox Field Airport I 12,800 107,276 150,848
Other 1,468,366 1,545,147 1,434,177
Debt Service:
Interest 443,618 945,016 1,080,200
Principal 871,978 480,448 424,730
Bond Issuance Costs
Capital Outlay 2,666,238 815,623 2,649,513
Total Expenditures 25,815,341 25,838,176 26,5501168
Excess (Deficiency) of Revenues Over Expenditures ~I,918,76Q ~1,989,735} ~2,403,913}
Other Financing Sources (Uses):
Proceeds of Capital Leases
General Obligation Bonds Issued
Insurance Recoveries
Transfers In 5,338,879 1,176,462 5,100,935
Transfers Out (4,276,740) (411,581) (1,614,427)
Long-Tenn Debt Issued 3,005,000
Payment to Escrow Agent and Premium
Sale of General Capital Assets
Total Other Financing Sources (Uses) 4,067,139 764,881 3,486,508
Increase (Decrease) in Reserve for Inventory ~196} ~151414} 181599
Net Changes in Fund Balances $ 211481182 $ ! 1,240,268} $ 111011194
Debt Service as a Percentage ofNoncapital Expenditures 5.68% 6.11% 6.44%
90
Fiscal Year
2013 2014 2015 2016
$17,020,156 $17,194,419 $18,457,686 $17,976,072
154,923 386,775 220,696 152,016
624,609 586,429 573,953 515,147
142,620 138,629 137,030 173,004
1,463,210 1,472,278 1,462,810 1,474,874
2,453,270 2,111,439 2,383,355 2,519,387
2,069,494 1,603,165 1,662,824 1,096,630
3171981 169,261 224,463 386,853
24,246,263 23,662,395 25,122,817 24,293,983
1,197,486 1,153,686 1,076,798 1,301,401
393,526 407,443 404,567 400,665
9,462,148 9,712,876 10,206,584 11,125,560
6,646,804 6,507,603 5,861,079 5,556,359
1,043,502 916,260 8,672
2,132,692 2,127,225 2,240,853 2,366,673
632,040 707,716 692,290 717,395
153,182 97,778 102,539 110,330
1,560,051 1,548,753 1,641,714 1,771,889
379,241 311,919 280,733 254,304
1,185,622 1,226,543 1,077,610 991,899
2,407,415 113321959 l,920J59 4,474,952
2711931709 261050,761 25,513,798 29,071,427
(21947,446) (2,388,366) (390,981) (4,777,444)
617,114 975,185
3,938,899 1,782,291 1,504,281 3,437,300
(I ,410,920) (1,792,973) (416,807) (1,858,200)
4,505,000
(4,424,955)
721108 95,098
2,680,132 (10,682) 1,799,686 2,554,285
531175 (38,165) 61,649 po,865)
$ ~214,139) $(2,437,213) $ 1,4701354 $ (21294,024)
6.74% 5.38% 5.76% 5.07%
91
2017 2018
$ 20,280,057 $ 21,447,857
155,363 197,920
491,880 495,708
272,039 561,234
1,463,576 1,470,248
2,609,81 l 2,614,504
1,463,514 677,072
258,051 3461789
26,994,291 27,811,332
1,288,458 1,180,280
398,262 404,443
11,026,655 10,850,538
5,549,270 5,356,374
2,535,135 2,670,131
697,503 736,513
129,269 112,562
1,738,115 1,716,365
196,358 447,294
1,161,513 1,580,682
103,399 4,410
2,350,010 3,564,942
27,173,947 28,624,534
(179,656) (813,202)
9,913,399 190,000
466,536 994,335
(83,742) (383,374)
10,296,193 800,961
103,074 40,517
$ 101219,61 l $ 28,276
5.47% 8.09%
Table4
(Continued)
2019
$ 21,672,347
277,507
480,618
742,644
1,437,157
2,991,995
1,325,665
214,502
29,142,435
1,230,366
402,943
11,253,953
5,644,019
2,845,874
756,566
210,851
1,845,609
443,205
1,577,803
41399,885
30,611,074
(1,468,639)
57,835
27,678
(550,708)
(465,195)
$ (1,933,834)
7.71%
CITY OF PARIS, TEXAS
Property Tax Levies and Collections (I)
Last Ten Fiscal Years
Unaudited
Collection
of Current
Year's
Fiscal Total Taxes During
Roll Year Tax Levy Fiscal Year
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
2018 2018-19 9,381,829 9,208,248
Source:
Lamar County Appraisal District
Note:
(I) Taxes stated are for General Fund and Debt Service Funds.
(2) Penalty, interest, and attorney fees not included.
92
Percent
of Current
Levy
Collected
During
Fiscal Year
97.78%
96.95
97.93
97.67
97.48
96.35
97.10
98.l l
98.l l
98.15
Table 5
Delinquent
Tax Total
Collections Collections
$ 66,691 $ 7,690,919
57,409 7,475,953
7,387,161
l 10,036 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
137,647 9,345,895
Ratio
ofTotal
Collections Outstanding
To Total Delinquent
Tax Levy Taxes
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
99.61 173,582
Ratio of
Delinquent
Taxes
To Total
Tax Levy
I.II%
1.45
2.07
2.52
2.48
3.66
2.91
1.89
1.89
1.85
93
Tables
(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
2009-10 2010-1 I 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
City of Paris
M&O $ 0.42439 $ 0.41713 $ 0.41000 $ 0.41487 $ 0.39129 $ 0.40635 $ 0.42547 $ 0.42443 $ 0.44248 $ 0.43831
I&S 0.09561 0.10287 0.11000 0.09620 0.11066 0.09560 0.07648 0.07752 0.10947 0.11364 Total s 1m1:Rm s o.3:20011 s o.321:Rm s o.31 lli7 s o.311193 s 11.m9s s irnm $ 0.511195 $li.33m $ i'.1.33193
Lamar County
M&O $ 0.40360 $ 0.39420 $ 0.39990 $ 0.41850 $ 0.40580 $ 0.42640 $ 0.40920 $ 0.40660 $ 0.37550 $ 0.36740
l&S 0.01900 0.01890 0.01930 0.02020 0.01930 0.01900 0.01830 0.01730 0.01880 0.01910
Total $0.:mM s o.:m111 $ Ul9:2o s11.;um $ ll.42311! $ ll."4341! $ ll.4:2750 $ ll.42391! $ 0.39431! $ 0.38650
Paris ISD
M&O $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000 $ 1.17000
l&S 0.15500 0.25500 0.25500 0.28500 0.28500 0.28500 0.28500 0.28500 0.28500 0.28500 Total s 1.moo $ l.4:2300 $ 1.4:2300 $ 1.43300 $ l.4331!0 $ 1.45500 $ I.4S51l!l $ 1.45500 $ 1.45500 $ 1.45500
ChisumISD
M&O $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000
I&S 0.18000 0.16000 0.16000 0.16000 0.14500 0.14678 0.14678 0.20650 0.19500 0.19000
Total s 1.n00o $ l::2o00o $ 1.:20000 s 1::200011 $ 1.183!lll $ 1.18678 $ 1.186'78 $ 1.24650 $ 1.23500 $ 1.23000
North Lamar ISD
M&O $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000 $ 1.04000
I&S 0.10811 0.09650 0.08650 0.08150 0.07110 0.06750 0.06750
Total s 1.m11 $ 1.136311 s i.m;3ll $ 1.1mll $ 1.11111! $ t.lli'31! $ I. ill751l $ I.1!4000 $ l.1!4000 $ 1.04000
Paris Junior College
M&O $ 0.18500 $ 0.18974 $ 0.19000 $ 0.18700 $ 0.18660 $ 0.18660 $ 0.18750 $ 0.17730 $ 0.08500 $ 0.08500
l&S ---Total $ 0.18300 $ 0.18974 $ o.l900o s 0.18100 $ ll.i86M $ ll.18661! $ o.ls1s0 $ 0.17730 $ 0.08500 $ 0.08500
94
CITY OF PARIS, TEXAS Table 7
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Unaudited
Real Pro2e!:!X Personal Pro~!!l:
Estimated Estimated
Assessed Actual Assessed Actual
Roll Year Value Value Value Value
2009 2009-10 $ 976,009,565 $1,421,783,219 $ 529,489,256 $647,710,890
2010 2010-11 927,464,815 1,420,238,161 551,247,563 622,482,077
2011 2011-12 918,495,080 1,402,956,164 543,332,657 623,174,818
2012 2012-13 931,939,433 1,424,800,859 559,431,805 628,115,774
2013 2013-14 1,033,357,277 1,438,785,698 469,901,615 654,358,864
2014 2014-15 1,007,593,690 1,472,220,698 522,773,397 763,567,027
2015 2015-16 1,006,8 I 0, 741 1,490,882,796 526,923,827 780,316,817
2016 2016-17 1,148,246,077 1,725,298,577 479,151,390 720,199,051
2017 2017-18 1,206,992,530 1,773,796,952 474,754,769 697, 701,527
2018 2018-19 1,236,252,824 1,807,476,750 495,983,817 725,129,690
Sources:
Lamar County Appraisal District
95
Total
Estimated
Assessed Actual
Exemptions Value Value
$ 563,995,288 $] ,505,498,821 $2,069,494,109
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
800,369,799 1,732,236,641 2,532,606,440
96
Assessed
Value as a
Percentage of
Actual Value
72.75%
72.39
72.15
72.65
71.82
68.45
67.53
66.55
68.04
68.40
Total Direct
Tax Rate
$ 0.52000
0.52000
0.52000
0.52000
0.50195
0.50195
0.50195
0.50195
0.55195
0.55195
Table7
(Continued)
Taxpayer
CITY OF PARIS, TEXAS
Principal Property Taxpayers
September 30, 2019 and 2010
Unaudited
Type of Business
La Frontera Holdings LLC (Lamar Power Partners) Electric Utility
Kimberly-Clark Corporation - A Disposable Diapers
Campbell Soup Company - A Food Manufacturer
Essent PRMC, LP A Hospital
Oncor Electric Delivery Electric Utility
Huhtamaki Inc Packaging Mfg.
Paris Generation, LP Electric Utility
Wal-Mart Discount Store
Alpha Lake Limited Shopping Center
Abnost Energy Gas Utility
Silgan Can Company Can Manufacturer
Totals
Source:
Lamar County Appraisal District
97
$
$
Table 8
2019
Percentage
ofTotal
Taxable Freeze Adjusted
Assessed Taxable
Value Rank Assessed Value
347,505,400 1 20.06%
97,282,834 2 5.62%
90,590,891 3 5.23%
51,729,310 4 2.990/4
28,922,890 5 1.67%
12,510,538 6 0.72%
10,738,020 7 0.62%
10,635,070 8 0.61%
10,596,530 9 0.61%
10,445,360 10 0.60%
670,956,843 38.73%
Taxable
Assessed
Value
$ 207,027,200
127,064,591
63,144,980
44,851,670
20,143,230
8,553,590
25,798,540
19,324,000
5,624,384
6,181,860
24,468,030
$ 552,182,075
2010
Rank
I
9
6
10
7
5
8
Percentage
ofTotal
Taxable
Assessed Value
13.75%
8.44%
4.19%
2.98%
1.34%
0.57%
1.71%
1.28%
0.37%
0.41%
1.63%
36.67%
98
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
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 1,732,236,641 14,306,032 1,073,917 13,232,115 0.76 519.93
2018-19 25,450 1,794,161,289 12,977,671 1,103,061 11,874,610 0.67 466.59
99
Fiscal
Year
2010 $
201 l
2012
2013
2014
2015
2016
2017
2018
2019
Note:
CITY OF PARIS, TEXAS
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited
Governmental Activities Business-Tl'.I!e Activities
General
Obligation Capital Water and Capital
Bonds Leases Other Sewer Bonds Leases
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
12,840,000 1,104,090 41,075,000
(I) See Table 14 for personal income and population data
100
Table JO
Other
480,909
Total Percentage
Primary of Personal
Government Income (2)
$ 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
55,019,090 2.73
Per
Capita
$ 1,030
911
733
2,081
1,951
1,843
1,810
2,440
2,304
2,180
IOI
Table 10
(Continued)
Ta,cing Jurisdiction
Lamar County
Paris Independent School District
Chisum Independent School District
North Lamar Independent School District
Subtotal Overlapping Debt
CITY OF PARIS, TEXAS
Direct and Overlapping
Governmental Activities Debt
September 30, 2019
Unaudited
General
Obligation
Bonded Debt
Outstanding
$ 3,906,719
45,405,000
28,666,753
459,164
78,437,636
City of Paris (Includes General Obligation Debt and Capital Leases)
Total Direct and Overlapping Debt $
12,977,671
911415,307
Per Capita Direct and Overlapping Funded Debt $ 3,592
Percent
Applicable
to
Government
62.75%
49.30
47.75
58.23
100.00
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
Table 11
Amount
Applicable
to
Government
$ 2,451,466
22,384,665
13,688,375
267,371
38,791,877
14,388,807
$ 5311801684
$ 21092
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 ta,cpayers of the City of Paris. This process reco~izes that, when considering the
government's ability to issue and repay long-term debt, the entire debt burden borne by the property
ta,cpayers should be taken into account. However, this does not imply that every ta,cpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
102
CITY OF PARIS, TEXAS
Legal Debt Margin lnfonnation
September 30, 2019
Unaudited
Table 12
The maximum tax rate pennitted 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 ofS.55195 per $100
valuation for the fiscal year ended September 30, 2019.
103
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 Tota!•••
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
2018-19 15,030,324 10,182,731 4,847,593
Notes:
(l)* Gross Revenues= Operating and Nonoperating Revenue of the 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.
104
Table 13
Percent
Coverage
4.29%
NIA
NIA
NIA
NIA
NIA
N/A
NIA
N/A
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 (I)
2009 $ 49,027 $ 1,522,000,000 $ 31,044 37.9
20IO 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
2018 49,728 2,027,062,464 40,763 41.0
(I) Includes Paris Independent School District, North Lamar Independent School District,
Chisum Independent School District, and Paris Junior College
Sources:
Paris Independent School District -3,951
North Lamar Independent School District -2,426
Chisum Independent School District -1072
Paris Junior College -4,858
Chamber of Commerce
Bureau of Economic Analysis
105
13,761
13,428
12,865
12,671
12,377
12,414
12,121
12,180
12,758
12,307
Table 14
Percent
Unemployment
Rate
8.4
9.7
8.5
7.9
7.6
6.1
5.4
4.9
3.5
3.3
Taxpayer
Paris Regional Medical Center
Campbell Soup Company
Kimberly-Clark Corporation
Turner Industries
The Results Company•
We Pack Logistics, Inc.
J. Skinner Baking Company••
Huhtamaki•••
RK Hall Construction LTD
Sanitation Solutions
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:
(•) TCIM in 2010
(••) Sara Lee in 20 I 0
(•••) Paris Packaging in 2010
630
453
333
205
158
189
1,968
CITY OF PARIS, TEXAS
Principal Employers
Fiscal Years End 2019 and 2010
Unaudited
Se(!tember 30, 2019
Percentage
ofTotal
City
Employees Rank Em(!loyment
900 1 8.10%
700 2 6.30%
678 3 6.10%
500 4 4.50%
450 5 4.05%
382 6 3.44%
236 7 2.12%
225 8 2.03%
190 9 1.71%
138 10 1.24%
0.00%
4,399 39.59%
106
Table 15
Se(!tember 30, 2010
Percentage
of Total
City
EmEloyees Rank Employment
1,000 1 9.26%
900 2 8.33%
800 3 7.41%
700 4 6.48%
480 5 4.44%
300 6 2.78%
150 9 (1) 1.39%
176 8 (2) 1.63%
250 7 (3) 2.31%
0.00%
90 10 0.83%
4.846 44.86%
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
2010 2011 2012
FACILITIES:
Airports:
Number of Airports
Fire Protection:
Number of Stations 3 3 3
Number of Fire Hydrants 1,189 1,222 1,217
Number of Employees (certified) 51 51 51
Employees Per 1,000 Population 1.88 2.01 2.01
Libraries:
Number of Libraries 1 1 1
Number of Volumes 98,895 90,524 85,357
Circularization of Materials 159,966 144,830 136,286
Circulation Per Capita 5.90 5.71 5.37
Library Cards in Force 15,941 13,461 14,563
Police Protection:
Number of Stations 1 1 1
Number ofEmployees (certified) 62 62 62
Employees Per 1,000 Population 2.28 2.44 2.44
Parks and Recreation:
Parle Acres Developed 87 87 87
Park Acres Undeveloped 221 221 221
City Parks 25 24 24
Streets:
Paved Lanes -Miles 171 160 160
Unpaved Streets -Miles 3 3 3
WATER AND SEWER UTILITY:
Average Daily Water Consumption -Gallons 10,069,000 11,687,000 11,560,000
Maximum Day's Water Consumption -Gallons 21,311,000 21,900,000 21,010,000
Annual Water Consumption -Gallons 3,675,218,000 4,611,321,000 4,234,583,000
Water Mains -Miles 183 183 183
Water Connections -Metered 10,076 9,834 9,966
Sewer Mains -Miles 197 188 188
Area Miles 39.18 39.18 39.18
Number of Full-Time Employees 322 324 325
107
Table 16
2013
3
1,240
51
2.01
1
82,878
127,053
5.01
14,896
1
62
2.44
87
221
24
160
3
11,400,000
20,764,000
4,177,171,000
183
9,816
188
39.18
325
Fiscal Year
2014 2015 2016 2017
3 3 3 3
1,262 1,299 1,313 1333
51 51 51 51
2.03 2.02 2.01 2.00
l I I I
82,832 81,893 84,162 85,630
127,002 127,824 119,265 ll4,6ll
5.06 5.07 4.69 4.5
16,519 15,507 13,551 14,312
I I I l
60 60 60 60
2.39 2.38 2.36 2.35
87 87 87 87
221 221 221 221
24 24 24 24
160 160 171 171
3 3 3 3
I 1,472,271 I 1,006,721 10,701,294 13,241,942
17,201,000 20,662,000 17,983,000 18,493,000
4,187,379,000 4,017,453,000 3,977,369,000 4,833,309,000
183 185 185 185
9,819 10,024 9,995 9,766
189 209 209 209
39.18 39.18 38.02 38.02
326.5 327 328.0 330
108
2018
3
1357
51
2.00
l
72,288
103,389
4.06
10,441
I
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
Table 16
(Continued)
2019
3
1367
51
2.00
l
81,185
99,239
3.90
8,734
57
2.24
87
221
24
174
3
10,775,920
19,202,000
3,937,831,000
185
9,679
209
38.02
333
CITY OF PARIS, TEXAS Table 17
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2010 201 I 2012 2013
Function:
Public Safety
Police
Stations l I 1
Patrol Units JO 10 JO 10
Fire Stations 3 3 3 3
Sanitation
Collection Trucks 8 8 7 6
Highways and Streets
Streets (miles) 174 174 163 163
Streetlights 2,216 2,220 2,220 2,223
Traffic Signals•
Culture and Recreation
Parle Acreage 308 286 286 286
Swimming Pools -Municipal l l l I
Tennis Courts 14 14 14 14
Community Centers I
Water
Water Mains (miles) 184 183 183 183
Fire Hydrants 1,189 1,222 1,217 1,240
Maximum Daily Capacity 36,000 36,000 36,000 36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles) 190 189 189 189
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.
109
Fiscal Year
2014 2015 2016 2017
I I
10 10 10 10
3 3 3 3
6 6 6 6
163 174 174 174
2,225 2,228 2,228 2,230
286 286 286 286
I I I
14 14 14 14
I I I
183 185 185 185
1,262 1,299 1,313 1,333
36,000 36,000 36,000 36,000
189 209 209 209
7,250 7,250 7,250 7,250
110
2018
I
10
3
6
174
2,231
286
I
14
I
185
1,357
36,000
209
7,250
2019
I
10
3
6
174
2,235
308
I
14
I
185
1,367
36,000
209
7,250
Table 17
(Continued)
CITY OF PARIS, TEXAS Table 18
Building Pennits 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
2010 II $ 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 10 760,000 8,596,610
2013 15 9,653,725 24 2,171,613 ll,825,338
2014 10 5,336,150 16 1,924,218 7,260,368
2015 14 61,243,705 10 823,430 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
2019 15 64,446,766 25 3,744,359 68,191,125
111
CITY OF PARIS, TEXAS Table 19
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2010 2011 2012 2013
Function:
Manager 2.0 2.0 3.0 3.0
Attorney 4.0 4.0 4.0 4.0
Court Clerk 4.0 4.0 4.0 4.0
City Clerk 3.0 3.0 3.0 3.0
Finance 5.5 6.0 5.0 5.0
Police• 84.0 84.5 85.5 85.5
Fire 52.0 52.0 52.0 52.0
Community Development 5.5 7.0 7.5 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 9.0 10.0 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 5.5 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 10.5 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 322.5 324.0 325.5 325.5
• Includes related grant employees.
Seasonal employees not included.
112
2014 2015
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 57.0
5.5 4.5
7.5 7.5
3.0 2.0
10.0 11.0
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
15.5 15.5
11.0 11.0
7.5 8.5
22.5 22.5
3.0 3.0
2.0 2.5
326.5 327.0
Fiscal Year
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
113
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
2019
3.0
2.0
4.0
2.0
5.0
84.0
58.0
4.0
6.0
3.0
12.0
12.0
17.0
2.0
6.0
27.0
10.5
2.0
8.0
17.5
12.5
8.0
21.5
3.0
3.0
333.0
Table 19
(Continued)
CONTINUING DISCLOSURE INFORMATION
(UNAUDITED)
CONTINUING DISCWSURE INFORMATION FOR
CITY OF PARIS TEXAS
ASSESSED VALUATION
2019-2020 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, 2019)
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)
$ 39,196,208
14,497,851
20,576,410
282,460
98,468,752
67,790,322
224,131,835
7,090,415
12,347,370
34011401213
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, 2019
Ratio of Gross General Obligation Debt Principal to 2019-2020 Freeze Adjusted Net Taxable Assessed Valuation
Ratio of Net General Obligation Debt Principal to 2019-2020 Freeze Adjusted Net Taxable Assessed Valuation
2018-2019 Freeze Adjusted Net Taxable Assessed Valuation
Population: 1980 -25,498; 1990-24,699; 2000 -25,898; 2010 -25,171 Current (Estimate)
Per Capita 2019-2020 Freeze Adjusted Net Taxable Assessed Valuation
Per Capita Gross General Obligation Debt Principal
Per Capita Net General Obligation Debt Principal
114
TABLE 1
$ 2,618,683,125
82415211836
1,794,161,289
p3916071850}
$ 1,654,553,439
TABLE2
$ 1,160,000
2,040,000
1,190,000
2,005,000
29,315,000
7,945,000
8,970,000
1J901000
53,915,000
720,000
2,005,000
29,315,000
7,945,000
111001000
41,085,000
$ 12.830.000
$ 1,099,885
3.26%
0.78%
$ 1,654,553,439
25,450
$ 65,012
$ 2,118
$ 504
CLASSIFlCA TION OF ASSESSED VALUA TIO~•I TABLE3
%or %or %or %or %or
~ lli!:lli2 Total ~ ~ 2016-2012 Imai ~ I21II ~ Total
Real, Residential, Singlo-Family s sss. 725,094 20.28% s 513,0S3,546 20.S1% s 492,321,832 19.93% s 480,226,542 20.93% s 470,196,966 20.83%
Real, Residential, Multi-Family 60,643,497 2.27 SS,673,247 2.22 S3,990,547 2.18 S3,843,387 2.34 S2,669,73S 2.33
Real, Vacant Lots/Tracts 33,01S,060 1.17 29,663,52S 1.19 30,536,814 1.24 28,523,324 1.24 17,374,401 o.n
Real, Acreqo (Land Only) 21,611,670 0.79 20,28S,840 0.81 38,531,048 1.56 39,7S6,S98 1.73 38,S81,1S8 1.71
Fann & Ranch lmprovemenls 20,902,638 0.74 18,316,868 0.73 337,S70 0.01 423,nO 0.02 413,SOO 0.02
Real, Commercial 290,129,663 11.24 288,609,812 11.S3 281 ,898,938 11.40 279,980, 11 S 12.19 280,408,794 12.42
Real Industrial S88,443,970 23.26 S94,247,570 23.74 566,417,810 22.91 466,39S,690 20.31 47S,970,232 21.08
Real & Tllll8lble. Personal Utilities 49,300,600 1.68 42,243,760 1.69 39,254,700 I.S9 40,297,180 1.7S 36,804,620 1.63
Tangible Pcnonel, Ccxnmercial 137,319,910 S.43 138,468,717 S.S3 I 39,S33,387 S.64 lll,n8,067 S.74 132,126,257 S.8S
Tangible Personal, lndustlial 490,224,670 19.S4 47S,6S9,420 19.01 498,480.SOO 20.17 4S0,783,530 19.63 434,917,430 19.26
Tangible.,.,_,.., Mobile Homes 796,370 0.03 768,990 0.03 786,8SO 0.03 7S1,440 0.03 70S,SIO 0.03
Residential / Special, Inventory 18,093,300 0.72 18,382,080 0.73 18,576,040 0.75 16,976,540 0.74 IS,346,780 0.68
Totally Exempt Property 3S2,476,683 12.86 307,256, I 20 12.28 31 1,327,306 12.S9 306,67S,207 13.3S 302,286,562 13.39
Total Market Value 2,618,683,12S 100.00% 2,502,629,49S 100.00% 2,471,993,342 100.00% 2,296,411,390 100.00% 2,257,801,94S 100.00%
Las Eamptioas:
Productivity Loss 20,576,410 19,378,0SO 19,896,755 21,114,46S 20,638,320
C1p l.oss(IO%) 7,090,415 6,410,256 6,S98,9S9 4,097,312 1,37S,900
Loc:aJ, Optional Over-6S/Disabled 39,196,208 4S,466,649 46,662,768 4S,146,544 44,943,98S
Disabled and Deoeu,d Veterans' 14,497,8S1 7,810,386 7,39S,996 6,S70,47S 6,036,649
Exempt Property 340, 140,2 I 3 29S,991,820 310,950,S36 306,021,687 302,039,162
Freeport 98,468,7S2 89,590,207 109,717,826 112,530,666 IIS,052,946
Polkltion Control/ Solar 67,790,322 67,16S,339 61 ,792,647 46,002,S3S 46,097,383
Tax Abatement Loss 224,131,835 271,984,849 280,503,879 219,967,287 190,473,730
Penonal Use ofBusines.s Vehicle 282,460 378,570 376,770 6S3,520 247,400
Other/ Historicll 12,347,370 11,363,360 699,739 S72,331 S29,382
Total Exemptions 824,521,836 81S,539,486 844,59S,87S 762,676,822 727,434,8S7
Net Ta11ble Assessed Valu•lon 1,794,161,289 1,687,090,009 1,627,397,467 1,533,734,S68 1,530,367,088
Fre,u Tnable & Transrer Adja-ent (139,607,850) (12S,12S,367) (117,126,272) (114,701,909) (108,ISl,971)
Fre,u Adjastod Net Tauble
Assessed Valuation s • 1,6S4,SS3,439 s 1,561,964,642 s l,SJ0,271119S $ 11419,032,6S9 $ 1,422,215,117
,., Yoluu shown In this /Obit or, ~rtlfkd Yaluu as of Jwly. Yoluu may chang, dwinR /ht ltrC ymr dw to WJrlotu n,ppltmtnls and pro/UU.
VallMlliom .-.,,o,kd on a diffemtt datt may not ,natc/r "'-shown on this tablt.
Source: Lamar Cor,nty Approlsal District and tht lmw.
115
PRINCIPAL TAXPAYERS 2018-2019
Name
La Frontera Holdings LLC
Kimberly Clark Corporation
Campbell Soup
Essent PRMC LP
Oncor Electric Delivery Company
Huhtamaki Inc.
Paris Generation, LP
Walmart
Alpha Lake LID
Aanost Energy
Total
Type or Property
Electric Utility
Disposable Diaper Mfg.
Food Manufacturing
Health Care Services/Hospital
Utility
Packaging Manufacturing
Utility
Discount Store
Shopping Center
Gas Utility
Based on a 2019 Freeze Adjusted Net Taxable Assessed Valuation of
Source: Lamar County Appraisal District
PROPERTY TAX RA TES AND COLLECTIONS
2019 Net Taxable
Assessed Valuation
S 347,505,400
97,282,834
90,590,891
51,729,310
28,922,890
12,510,538
10,738,020
10,635,070
10,596,530
10,445,360
S 670,956,843
S 1,654,553,439
TABLE4
%or
Total2019
Assessed
Valuation
20.06%
S.62
S.23
2.99
1.67
0.72
0.62
0.61
0.61
0.60
38.73%
TABLES
Tax NetTR1able TRI TRI % Collections Year
Year Assessed Valuation 1•1 Rate Levy Current Total Ended
2009 S 1,405,294,035 0.S2000 S 7,797,457 97.78 98.43 9-30-10
2010 1,380,460,473 0.S2000 7,651,941 96.9S 98.38 9-30-11
2011 1,359,521,473 0.S2000 7,543,165 97.93 99.41 9-30-12
2012 1,385,188,151 0.S1107 1,S44,31S 97.67 99.22 9-30-13
2013 1,493,839,431 0.S019S 7,498,327 97.48 100.03 9-30-14
2014 1,519,380,525 0.S019S 7,626,530 96.3S 99.17 9-30-1S
201S 1,607,003,070 0.S019S 7,627,731 97.10 99.90 9-30-16
2016 l,SI0,271,19S 0.S019S 8,093,094 98.11 <bl 99.S2 <bl 9-30-17
2017 1,SS6,621,932 0.S519S 9,14S,96S 98.11 99.SI 9-30-18
2018 1,607,003,070 0.S519S 9,381,829 98.1S 100.71 9-30-19
Note: AlthDllgh "Total" tax collection percentages In dtls table lnchlde delinquent tax co//ection1, they are allocated to the year they were
orlgbtally levkd Instead of the year In which they were collected.
'"' Certified Value, may change during the tax year due to varioUI 1upplements and prote1ts, and va/uatio111 reported on a different date may not
match tha1e 1hown on this table.
Financial Report. Va/uatio111/or tax years 2009-20/8 represent Freeze Adju,ted Net Taxable Valualio111.
/DJ Current Fiscal Yearco//ectio111 are as a/September 30, 20/9(Unaudited).
Source: The Lamar County Appraisal District, the City's 2019 Comprehe111ive Annual Financial Report and additional information from the City.
TAX RATE DISTRIBUTION
General FWld
l&SFund
TOTAL
2019-20
S 0.40868
S 0.10740
S 0.S1608
2018-19
$0.43831
0.11364
SO.SS19S
2017-18
S 0.44248
0.10947
S 0.5S19S
2016-17
S 0.42440
0.077S2
S 0.S0192
2015-16
S 0.4063S
0.09S60
S 0.S019S
Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District.
116
TABLE6
MUNICIPAL SALES TAX TABLE7
The Issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to a property tax relief
and/or an economic and industrial development tax. The voters of the City approved the imposition of a 1/4 cent additional sales tax to be used
for property tax reduction and a 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began on October I,
1993, and the City received its first payment in December, 1993. Collections on a calendar year basis are as follows:
City Collections as ($) Equivalent of
Calendar Total 1.00% 0.25% % of Ad Valorem AdValorem 0.25%
Year Collected Ci!2'. ProeTaxRed Tax Le!,2'. Tax Rate EDC
2006 $ 6,601,772 $ 4,401,182 $ 1,100,295 71.73% so.so $ 1,100,295
2007 6,628,611 4,419,074 1,104,769 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 l,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 8,921,837 5,947,891 1,486,973 79.25 0.43 1,486,973
2020 3,787,076 (1) 2,524,718 631,179 33.45 0.17 631,179
(a) Curren/ year co/lee/ions are for January 2020 through May 2020.
• 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: Slate Comptroller of Public Accounts Website.
117
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
AND ANALYSIS OF CHANGES IN FUND BALANCES TABLES
Fiscal Year Ended Se2tember JO
2019 2018 2017 2016 2015
Revenues:
Ad Valorem Taxes $ 7,552,516 $ 7,357,425 $ 6,933,981 $ 6,622,742 $ 6,122,949
Sales Taxes 7,369,079 7,317,162 7,233,526 7,051,858 7,684,113
Franchise Tax 4,305,851 4,315,694 4,211,397 2,502,614 2,641,537
Hotel Occupancy Taxes 675,158 662,263 657,270 630,545 594,493
Licenses and Pennits 277,507 197,920 155,363 152,016 220,696
Fines and Fees 434,016 446,670 449,008 498,164 528,433
Investment Earnings 483,876 329,365 206,551 141,134 122,264
Sanitation 1,437,157 1,470,248 1,463,576 1,474,874 1,462,810
Health 2,991,995 2,614,504 2,609,811 2,519,387 2,383,355
Intergovernmental Revenue 1,325,665 677,072 1,463,514 705,786 1,033,512
Other Revenues 2101946 341J30 2531679 3771469 2181616
Total Revenues 2710631766 2517291653 2516371676 2216761589 2310121778
Expenditures:
Current
General Government 1,616,363 1,541,274 1,666,051 1,687,660 1,463,624
Public Safety 11,218,944 10,884,241 10,963,989 11,037,399 10,190,716
Public Works 5,644,019 5,356,374 6,415,221 5,199,269 5,311,538
Health 2,845,874 2,668,477 2,532,665 2,351,220 2,240,853
Culture and Recreation 740,350 734,826 693,078 688,258 687,923
Cox Field Airport 210,851 112,562 134,705 110,330
Other 1,845,609 1,716,365 1,743,614 1,771,889 1,744,253
Capital Outlay
General Government 16,995 10,100 268,397 40,375
Public Safety 413,250 168,163 178,453 1,096,587 856,859
Public Works 1,016,738 612,947 248,452 952,651 580,152
Health 303,946 554,083 149,850 176,386 161,756
Culture and Recreation
Cox Field Airport 37,275
Debt Service 186,690 186,690 186,690 72,353
Other -421187 91680 61109
Total Expenditures 26,05~,629 2416251564 2419121768 2514221079 23J841158
Excess (Deficit) of Revenues
Over Expenditures 11004,137 111041089 7241908 !217451490} {2711380}
Other Financing Sources (Uses):
Capital Lease 975,185 617,114
Operating Transfers In 18,513 124,968 1,633,000 1,497,286
Operating Transfers Out (127,545) (383,374) (44,814) (1,806,200) (13,178)
Sale of Capital Assets 4,998
Insurance Recoveries 57,835
Total Other Financing Sources (Uses): !51,1971 (2581406} (441814} 8011985 21106J20
Excess of Revenues and Other Sources
Over Expenditures and Other Uses 952,940 845,683 680,094 (1 ,943,505) 1,834,840
Fund Balance -Beginning of Year 12,670,747 11,622,868 10,839,700 13,594,986 11,698,497
Increase (Decrease) in Reserve for Inventory 40,517 103,074 (70,865) 61,649
Prior Period Adjustment (172,209} 1611678 {7401916}
Fund Balance -End of Year $ 1314511478 s 1i,61Q,Z46 S 11,622,868 s 10,839,700 s 13,S24.28~
IOI Restated
Source: The Issuer's Comprehensive Annual Financial Reports.
118
CONDENSED WATERWORKS AND SEWER SYSTEM OPERA TING STATEMENT
Fiscal Year Ended Se2tember 30
2019 2018 2017 2016
Operating Revenues 1•>
Total Revenues $ 14,452,703 $ 14,168,934 $ 14,236,117 $ 15,053,698
Expenses (bl 10,147,099 9,886,456 9,867,173 7,799,136
Net Revenue Available for Debt Service I 4,305,604 l 4,282,478 l 4,368,944 l 7,254,562
Annual Revenue Bond Debt Service
Requirements $ $ $ $
Coverage of Annual Revenue Bond
Requirements NIA NIA NIA NIA
AMual Requirements on all Bonds Paid from $ 3,848,957 $ 3,714,257 $ 3,244,870 $ 3,338,021
System Revenues
Coverage of Annual Requirements on all I.II X I.IS X 2.17 X 2.17 X
Bonds Paid from System Revenues
Customer Count:
Water 9,679 9,698 9,766 9,99S
Sewer 9,189 9,208 9,180 9,276
(a) Revenues include operating revenues, interest income and other revenues of the Waterworks and Sewer System.
/bJ Expenses 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)
S18" -314"
I " and Larger
Commercial Industrial Class
Meter Size
(Inches)
S18" -3/4"
)" -2"
Larger than 2•
Current Rates
(Rates Effective July I, 2018)
Base Cost
(Per Cubic Foot)
$11.10 for first 200 Cubic Feet
$5 I .45 for first 1,000 Cubic Feet
Base Cost
(Per Cubic Foot)
$13.28 for first 200 Cubic Feet
$S3.11 for first 1,000 Cubic Feet
$ I 90.6S for first 2,000 Cubic Feet
Commercial Industrial Class (Meters Greater Than Three Inches)
Service In Eitcess of Base
(For Each Additional
100 Cubic Feet)
$4.08 I I 00 Cubic Feet
$4.08 I I 00 Cubic Feet
Service In Eitcess of Base
(For Each Additional
100 Cubic Feet)
$4.00 I I 00 Cubic Feet
$3.271100 Cubic Feet
$3.271100 Cubic Feet
(Lorge Meter Commercial Rates Effective July 1, 2019)
Meter Size
(Inches)
4"
6"
8" and Larger
Source: lriformationfrom the Issuer
Base Cost
(Per Cubic Foot)
$3,270 for first I 00,000 Cubic Feet
$4,905 for first 150,000 Cubic Feet
$6,540 for first 200,000 Cubic Feet
119
Service In Eitcess of Base
(For Each Additional
100 Cubic Feet)
$3.271100 Cubic Feet
$3.271100 Cubic Feet
$3.27 I I 00 Cubic Feet
TABLE9
2015
$ 14,284,506
7,400,588
I 6,883,918
$
NIA
$ 3,867,154
J.78 X
10,024
9,320
TABLE IO
PRINCIPAL WATER CUSTOMERS 2018-2019
(October I, 2018 to September 30, 20/9)
Name orcu,tomcr
Lamar Power Partners•
Campbell Soup Company
Lamar County Water Supply
Daisy Farms•
Paris Generation
Kimberly Clark
Paris Regional Medical Center
The James SkiMer Baking Co.
Texas Highway Department
Paris Housing Authority
Total
Average Monthly
consumption (Gals.)
19,106,881
12,471,639
11,175,779
2,425,827
1,248,507
837,666
244,793
237,917
153,955
174 174
Total Water Sales as of September 30, 2019 (unadudited)
48,077,138
$ 7,877.619
foJ Prtnctpa/ Water Customers represent approximately 44.J9"A, Qftota/ anmlQ/ water sales.
• Jncludu raw water sales.
SEWER RATES
Bcsi<Jcntjal Cl•g
Meter Siu
(Inches)
3/4" or Less
I " and Larger
Commen:lal Industrial Class
Meter Size
(Inches)
3/4" or Less
1· -2"
Larger than 2•
Current Rates
(Residential Rates E;ffect/ve July I, 2019)
Base Cost reer Cubic Foot)
$12.82 for first 200 Cubic Feet
$63.30 for first 1,000 Cubic Feet
(Commercial Rates E;ffectlve July I, 2019)
Base Cost
(Per Cubic Foot)
$17.07 for first 200 Cubic Feet
$65.70 for first 1,000 Cubic Feet
S 131.40 for first 2,000 Cubic Feet
PRINCIPAL SEWER CUSTOMERS-2018-2019
(October I, 20/8 to September 30, 20/9)
Name of Customer
Kimberly Clark
The James Skinner Baking Co
Paris Regional Medical Center
Paris Housing Authority
Texas State Highway Department
Paris Junior College
Lamar County Human Resources
Spanish Oaks
Paris Independent School District
Lamar County
Total
Average Monthly
Consumption {G•ls,l
512,059
237,916
194,052
157,051
153,955
101,779
92,634
86,370
83,912
91,550
1,711,278
Total Sewer Charges as of September 30, 2019 (unaudited) S 5,896,304
foJ Principal Sewer Customers represent approximately 14. I 6'¼ of total annual sewer charges.
120
Average
Monthly Bill
S 25,535
101,812
74,163
14,783
20,345
27,184
10,332
7,867
5,075
5992
293,088
TABLE II
(I)
TABLEJ2
Service in Excess or Base
(For Each Addltional
100 Cubic Feet)
$6.33 / I00 Cubic Feet
$6.33 / 100 Cubic Feet
Service In Excess of Base
(For Each Additional
JOO Cubic Feet)
$6.57/ I00 Cubic Feet
$6.57 / IOO Cubic Feet
$6.57 / 100 Cubic Feet
Average
Monthly Bill
S 29,813
13,795
11,594
9,053
s
8,975
6,218
5,364
S,046
4,993
4 837
99,688 <•>
TABLE J3
OVERALL COMPLIANCE, INTERNAL CONTROLS
AND FEDERAL A WARDS SECTION
Overall Compliance, Internal Controls,
And Federal Awards Section
This section includes elements required by Government Auditing Standards, issued by the Comptroller General of the
United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
121
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH. CPA
RUSSELL P. WOOD, CPA
DEBRAJ.WILDER,CPA
TEFFANY A. KAVANAUGH, CPA
APRILJ. HATFIELD, CPA
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
228 SIXTH STREET S.E.
PARIS, TEXAS 75480
903-784-4316
FAX 903-784-4310
304 WEST CHESTNUT
DENISON, TEXAS 75020
903-465-6070
FAX ~093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-583-5574
FAX 903-583-9453
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and City Council
City of Paris, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements 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
(the City), as of and for the year ended September 30, 2019, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements, and have issued our report thereon dated June 26, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
122
Honorable Mayor and City Council
City of Paris, Texas
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Paris, Texas
June 26, 2020
123
9dcCCanalian antf JloCmes, ££<P
Certified Public Accountants
Finding:
None
CITY OF PARIS, TEXAS
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2019
124
Summary of Auditors' Results
CITY OF PARIS, TEXAS
Schedule of Findings and Questioned Costs
Year Ended September 30, 2019
1. The auditors' report expresses an unmodified opinion on the financial statements of the City of Paris.
2. No significant deficiencies disclosed during the audit of the financial statements are reported in the
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards. No material weaknesses are reported.
3. No instances of noncompliance material to the financial statements of the City of Paris, which would
be required to be reported in accordance with Government Auditing Standards, were disclosed during
the audit.
4. No significant deficiencies in internal control over major federal award programs disclosed during the
audit are reported in the Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance. No material weaknesses were
identified.
5. The auditors' report on compliance for the major federal awards programs for the City of Paris
expresses an unmodified opinion on all major federal programs.
6. There were no audit findings that are required to be reported in accordance with 2 CFR 200.516(a).
7. The program tested as a major program was:
14.239 Home Investment Partnerships Program (HOME)
8. The threshold used for distinguishing between Type A and B programs was $750,000.
9. City of Paris, was determined to be a high-risk auditee.
Financial Statement Findings
None
Federal Award Findings and Questioned Costs
The audit disclosed no findings required to be reported.
125
None::
Con-ective Acti on !'Ian
Year Ended September 30, 2019
126
P.O. BOX 9037 • PARIS, TEXAS 75461-9•37 • (903) 785-7511 • FAX (903) 785-8519
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRWE, CPA
ANDREW B. REICH, CPA
RUSSELL P. WOOD. CPA
DEBRA J. WILDER. CPA
TEFFANY A. KAVANAUGH, CPA
APRIL J. HAmELD, CPA
McCianahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance
Honorable Mayor and City Council
City of Paris, Texas
Report on Compliance for Each Major Federal Program
228 SIXTH STREET S.E.
PARIS. TEXAS 75460
903-784-4316
FAX 903-784-4310
304 WEST CHESTNUT
DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-583-557 4
FAX 903-583-9453
We have audited the City of Paris, Texas' (the City) compliance with the types of compliance requirements
described in the 0MB Compliance Supplement that could have a direct and material effect on the City's major
federal programs for the year ended September 30, 2019. The City's major federal programs are identified in the
summary of auditors' results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its
federal awards applicable to its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our
audit of the types of compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements/or Federal Awards (Uniform Guidance). Those standards
and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's
compliance with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of the City's compliance.
Opinion on Eac/1 Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2019.
127
Honorable Mayor and City Council
City of Paris, Texas
Report on Internal Control Over Compliance
Management of the City of Paris, Texas, is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing our audit
of compliance, we considered the City's internal control over compliance with the types of requirements that could
have a direct and material effect on each major federal program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe than
a material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Paris, Texas
June 26, 2020
128
9tt.cCfanafian antf1fo{mes, L£<P
Certified Public Accountants
CITY OF PARIS, TEXAS
Notes on Accounting Policies for Federal and State Awards
Year Ended September 30, 2019
Note 1: Basis of Presentation
The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state
award activity of the City of Paris, Texas (the City) under programs of the federal and state governments for the
fiscal year ended September 30, 2019. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Uniform
Grant Management Standards. Because the Schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
Note 2: Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are
presented where available.
Note 3: Indirect Cost Rate
The City has elected not to use the I 0-percent de minim is indirect cost rate allowed under the Uniform Guidance.
Note 4: Promm Costs/ Matching Contributions
The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire
program costs, including the City's portion, may be more than shown.
Note 5: Subrecipients
Of the federal expenditures presented in the schedule, the City of Paris, Texas, provided federal awards to
subrecipients as follows:
Program Iitle
Edward Byrne Memorial
Justice Assistance Grant
Federal
CFDA
Number
16.738
129
Amount Provided
to Subrecipients
s 5A03
CITY OF PARIS, TEXAS
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2019
Federal Expenditures
CFDA Project Federal to
Federal Grantor/Pass-Throu&!! Grantor/Prosram Titlc Number Number Ex!!!:nditurcs Subrecil!ients
U.S, Dc1111!1!!!mt ofH2usjng !!!!d Urban 12slvs.l011ment
Passed Through Texas Department of Housing and Community Affairs:
Home Investment Partnerships Program (HOME) 14.239 1002499 & 1002500 s 935,574 s
Total U.S. Department of Housing and Urban Development 935,574
U.S. Department 2f Justice
Direct Program:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2018-DJ-BX-0305 10,806 5,403
Equitable Sharing Agreement 16.922 1123-0011 19,930
Project Safe Neighborhoods 16.609 OT-01-0107-31-00 3,626
Total U.S. Department of Justice 34,362 5,403
!.!, S, Ogill!!!!Jen! 2f l::!omcland Sc11uciJl'.
Passed Through Federal Emergency Management Agency:
Assistance to Firefighters Grant (AFG) 97.044 EMW-2017-FO-05538 80,910
Total U.S. Department ofHomcland Security 80,910
Na!iQnl!I ~dowmcnt f2r !!ls. l:!Yml!!!!is.s
Passed Through Texas State Library and Archives Commission
FY2019 ILL Lending Reimbursement Program 45.310 901179 9 374
Total National Endowment for the Humanities 9J74
Total Expenditures of Federal Awards S 1,060,220 s 5,403
The accompanying notes arc an integral part of this schedule. Sec Notes on Accounting Policies for Federal and State Awards.
130
CITY OF PARIS, TEXAS
Schedule of Expenditures of State of Texas Awards
Year Ended September 30, 2019
State Grantor/Prognun Title
Automobile Burglary and Theft Prevention Authority
Northeast Texas Auto Theft Task Force
Total Automobile Burglary and Theft Prevention Authority
Texas Department of Transportation
Routine Airport Maintenance Program
Total Texas Department of Transportation
Total Expenditures of State of Texas Awards
Project
Number
608-19-1390200
M1901PARI
Expenditures
$ 111,925
111 ,925
49994
49,994
$ 161,919
The accompanying notes are an integral part of this schedule. See Notes on Accounting Policies for Federal and State Awards.
131