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Agenda Packet
CITY COUNCIL AGENDA Notice is hereby given that the City Council of the City of Paris shall meet in regular session at 5:30 p.m. on Monday, May 9, 2022. The meeting will be held at the City Council Chamber, 107 E. Kaufinan Street, in Paris, Texas. Due to the CoVID outbreak, facemasks are encouraged for those in attendance of the meeting in the City Council Chamber. Due to the pandemic concerns, one or all Council Members may be attending remotely, but the feed will be available for live viewing at https://paristexas.gov/public. The matters to be discussed and acted upon are as follows: Opening Agenda 1. Call meeting to order. 2. Invocation. 3. Pledge of Allegiance. 4. A. Presentation of Mayor's Yard of the Month Awards B. Citizens' forum. (Persons desiring to address the Council must limit their presentation to no more than two minutes. Unless an item is posted on the Agenda, the Texas Open Meetings Act prohibits the Council from responding to any comments other than to refer the matter to a future agenda, to an existing policy, or to a staff person with specific factual information. Claims against the City, Council Members, or employees, as well as individual personal appeals are not appropriate for citizens' forum.) If necessary, the City Council may convene into Executive Session under Chapter 551 of the Texas Government Code regarding any item on this agenda. Consent Agenda Items on the Consent Agenda are approved by a single action of the Council, with such approval applicable to all items appearing on the Consent Agenda. A Council Member may request any item to be removed from the Consent Agenda and considered as a separate item. 5. Approve minutes from the meeting of April 25, 2022. 6. Receive reports and/or minutes from the following boards and commissions: a. Historic Preservation Commission (3-9-2022) b. Love Civic Center (2-10-2022) c. Paris Economic Development Corporation (3-21-2022) d. Paris Public Library Advisory Board (3-16-2022) e. Planning & Zoning Commission (4-4-2022) f. Paris Visitors & Convention Council Board of Directors (3-21-2022) g. Love Civic Center Quarterly Reports h. VC&C Quarterly Reports 7. Receipt of the 2021 Annual Comprehensive Financial Report. 8. Approve and award the lowest responsible bids for ground maintenance of various city parks, medians and city lots. 9. Approve a Resolution awarding a bid in the amount of $265,372.50 and authorizing an agreement with Richard Drake Construction, the lowest responsible bidder, for the annual curb/gutter driveway approaches and reinforced concrete sidewalks. Regular Agenda 10. Receive presentation from North Star regarding the branding and marketing project. 11. Discuss and act on a Resolution approving an Economic Development and Residential Tax Abatement Agreement with Ronny Enns d/b/a Enns Ventures, LLC, pursuant to the City's 5 in 5 Housing Infill Development Program. 12. Discuss and act on a Resolution approving a Residential Tax Abatement Agreement with We're Going to Paris, LLC. 13. Receive an update on the City's 5 in 5 Housing Infill Development Program. 14. Receive quarterly update as to the status of the Vacant Building Registration. 15. Discuss and act on an Ordinance amending the Code of Ordinances Chapter 4, Article 4.02, "Construction Codes and Standards," Article 4.03 Section 4.03.004, "Building and Standards Commission Established; proceedings; civil penalties, "Article 4.04, "Residential Rental Property Maintenance;" Article 4.05, "Vacant Buildings;" and Amending Appendix A, "Fee Schedule." 16. Discuss and act on a Resolution repealing prior Policies and Procedures for Boards and Commissions, and adopting new Policies and Procedures for Boards and Commissions. 17. Discuss and possibly act on procedures for conducting annual evaluations of the city manager, city attorney, and municipal judge. 18. Convene into executive session pursuant to Section 551.087 of the Texas Government Code, (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1), as follows: Project Athens. 19. Reconvene into open session and possible take action on those matters discussed in executive session. 20. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. 21. Adjournment. Certification I certify that the above notice of meeting was posted on the bulletin board in the City Hall Annex, 150 First St. SE, Paris, Texas and on the City's website at www.paristexas.gov, no later than 5:30 p.m. on May 6, 2022. Janice Ellis, City Clerk Special Accommodations This facility is wheelchair accessible and accessible parking spaces are available. Requests for special accommodations or interpretive services must be made forty-eight (48) hours prior to this meeting. Please contact Janice Ellis at (903) 784-9248 or jellis c@paristexas.gov for assistance. Item No. 5 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS Apri125, 2022 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, April 25, 2022, at the City Council Chamber, 107 E. Kaufrnan, Paris, Texas. Present: Mayor: Paula Portugal Mayor Pro -Tem: Reginald Hughes Council Members: Shatara Moore, Gary Savage, Mihir Pankaj, Linda Knox, and Clayton Pilgrim City Staff Grayson Path, City Manager; Robert Vine, Assistant City Manager; Stephanie Harris, City Attorney; Janice Ellis, City Clerk; Gene Anderson; Finance Director; Richard Salter, Police Chief; Andrew,,Mack, Director of Planning & Community Development; M.A. Smith, Public Works Director; and Clyde Crews, Fire Marshal Opening A ends Call meeting to order. Mayor Portugal called the meeting to order at 5:30,p.m. 2. Invocation. Finance Director Gene Anderson gave the invocation. Pledge of Allegiance. Mayor Pro -Tem Hughes led the pledge. 4. Citizen's forum. Kari Daniel, business owner and resident of downtown — she spoke in support of stop signs citing they were good for businesses and it was less noisy. Millie Key, 501 S. Main — she spoke in support of stop signs citing there were a fewer number of speeders and there was less noise. Mack Ross, 3475 Reno Drive — he said a road going through North Lamar did not serve anyone and the only feasible place to put a collector road was between Lake Crook and 195. Regular Council Meeting April 25, 2022 Page 2 Aaron Barnes, business owner and parent of a North Lamar student — he said from a parent standpoint, he hated to see the district use funds to over improve irrigation and sidewalks. Stephen "Red" Holmes, trustee for NLISD but speaking as a taxpayer, 146 CR 43600 - he said he was not against the street but that they were blind -sighted and that the requirements were going to cost a lot more money than they had planned to spend. Consent Agenda Mayor Portugal inquired of Council Members if they wished to pull any items from the consent agenda for discussion. Council Member Pankaj said he would like to be recused from item number 11, because he had a conflict. A Motion to recuse Council Member Pankaj from item number 11 was made by Council Member Pilgrim and seconded by Council Member Savage. Motion carried, 7 ayes — 0 nays. Council Member Pankaj left the meeting room. A Motion to approve item number 11 was made by Council MemberSavageand seconded by Council Member Hughes. Motion carried, 6 ayes 0 nays. A Motion to return Council Member Pankaj to themeeting was made by Council Member Pilgrim and seconded by Council Member Moore. Motion carried, 6 ayes — 0 nays. Council Member Pankaj"returned to the meeting room. Mayor Portugal asked if there were any other items to be pulled for discussion. There being none, a Motion to approve fhe consent agenda was made by Council Member Pankaj and seconded by Council Member Pilgrim. Motion carried, 7 ayes — 0 nays. 5. Approve minutes from the meeting of April 11, 2022. 6. Receive reports and/or minutes from the following boards and commissions: I a. Main Street Advisory Board (3-8-2022) b. Building & Standards Commission (3-21-2022) 7. Receive March monthly financial report. 8. Receive March drainage report. 9. Receive demolition and code enforcement activity reports. 10. Approve the Final Plat of the RW Cox Addition, Lot 1, Block A (LOAD Property ID 71620), located at 1690 S.W. 19'h Street. 11. Approve the Final Plat of the Tekmak Addition, Lot 1, Block A, (LOAD Property ID 104787), located at 3005 N. Main Street. 12. Approve the Final Plat of the Allsup's Addition, Lot 1, Block A (LOAD 14015, 14016, 14017, 14021 and 14022), located in the 300 Block of N. Main Street. Regular Council Meeting April 25, 2022 Page 3 13. Approve the Final Plat of the Taco Bueno Addition CB250, Lot 1, Block A (LCAD Property ID 53645 and 126658), located at 2330 N. Main Street. 14. Approve the Final Plat of the BSA Addition, Lots 1 and 2, Block A (LOAD Property ID 18190 and 18177), located at 2340 E. Cherry Street and 2331 Pine Bluff. 15. Approve the Final Plat of the Ellis Addition CB -45, Lot 1, Block A (LCAD Property ID 14070 and 14071), located at 710-720 W. Houston Street. 16. Approve the Final Plat of the North Lamar ISD New Elementary School Addition, Lots 1 and 2, Block A (LCAD Property ID 125581, 59292, 59287), in the 3200 Block on N. Main Street. Regular Agenda 17 Discuss, conduct a public hearing, and act on; an Ordinance considerirg the petition_ of Morad Elwir on behalf of Sara Faber and Jerry Jackson for a Specific Use Permit (SUP) for a Fuel Station in the City of Paris; Block 41-A, Lots 1-3 and 5-8, Commercial District, located in the 300 Block of N. Main Street (LCAD 14015, 14016, 14017; 14021 and 14022). Planning Director Andrew Mack explained the applicants had requested approval of a specific use permit to permit the redevelopment of the subject property with a gas and convenience station at the Northwest corner of North Main Street and Graham Street. He said that the Planning , & Zoning Commission ,recommended approval of the SUP with the Staff recommended conditions of :1) approval of the site civil construction improvements by the City Engineer prior to issuance of a building permit and 2) approval of new driveway access permits by the City and TxDOT prior to commencing any new site development construction. Council Member Savage expressed concern about the increase of traffic with having a convenience store that was open 24 hours a day. He inquired if the MHMR office was still in operation behind the proposed site. Mayor Pro -Tem Hughes said that the MHMR office was still there. Mayor Portugal inquired if a TIA study was conducted and Mr. Mack said that it was not required. Mayor Pro -Tem Hughes asked if alcohol was going to be sold at the store and Mr. Mack said he did not know their plans. Council Member Pankaj said it would probably be alcohol but not liquor. He said that was a TABC issue, but that he had heard concern from citizens about this item. Mayor Portugal opened the public hearing and asked for anyone wishing to speak about this item to please come forward. Yubaraj Bishwakerma, owner of the convenience store at 274 N. Main Street. Mr. Bishwakerma opposed the new station because of traffic concerns. Stacy Ladell, 1730 Majestic. Mr. Ladell said he was a member of the Graham Street Church of Christ and was not against development but expressed concern about the sale of alcohol within 300 feet of the church. He also expressed concern about the operation of a 24-hour service station. With no one else speaking, Mayor Portugal closed the public hearing. Regular Council Meeting April 25, 2022 Page 4 Mayor Portugal said the site was at an entrance to the historic downtown, which did fit into the setting. Council Member Pankaj asked if they could request a traffic study. Interim City Engineer Chris Donan said that was a TxDOT decision, and if they wished he could reach out to the regional engineer with regard to conducting a TIA. Mayor Portugal inquired if City Council wanted to table this item. Council Member Pankaj said he was in favor of tabling this pending a TIA. City Attorney Stephanie Harris said if they wanted to table this item that staff would have to re -advertise. She also said the City did not have a lot of discretion on the TABC license. Council Member Pilgrim wanted to know if any of the employees of MHMR spoke at the Planning & Zoning Commission hearing, and Mr. Mack said they did not. Stacy Ladell said he spoke to five MHMR employees and they opposed the service station going in there, but could not speak out publically because they worked for the government. Mayor Portugal asked if City Council wanted to table this item or vote. Council Member Pilgrim said it was a tough thing to put a 24/7 gas station in the downtown area. A Motion to act `on this item was made .by Mayor Pro -Tem Hughes and seconded by Mayor Portugal. Council Member Savage questioned if they were voting to approve or deny tlis and asked for clarification. City Attorney Stephanie Harris said they needed to vote to approve or vote deny the request. t, A Motion' to deny this item was made by made'by Council Member Pilgrim and seconded by Council Member Savage. Motion carried 7 ayes — O,nays. ' 18. Conduct a public hearing, discuss 'and act on ORDINANCE NO. 2022-:,020: AN ORDINANCE OF THE 'CITY COUNCIL OF :THE CITY OF PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS, AS HERETOFORE AMENDED TO CHANGE THE ZONING FROM, A ONE - FAMILY DWELLING DISTRICTNO. 2 (SE -2) TO A MULTIPLE' -FAMILY DWELLING DISTRICT No. 1 (MF -1) IN THE CITY OF PARIS, BLOCK 257-A, LOT N PT 3, LOT 15 & 3A, LOCATED AT 2340 E. CHERRY STREET AND 2331 PINE BLUFF; DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF THE CITY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Planning Director Andrew Mack explained the applicant planned to construct a new 9- plex on the East Cherry Street frontage and that the residence fronting on the Pine Bluff was not a part of the rezoning. He said that the Planning & Zoning Commission recommended approval of this item, as did City Staff. Mayor Portugal opened the public hearing and asked for anyone wishing to speak about this item to please come forward. With no one speaking, Mayor Portugal closed the public hearing. A Motion to approve this item was made by Council Member Council Member Pankaj and seconded by Mayor Pro -Tem Hughes. Motion carried 7 ayes — 0 nays. Regular Council Meeting April 25, 2022 Page 5 19. Conduct a public hearing, discuss and act on ORDINANCE NO. 2022-021: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND ADOPTING REVISIONS TO THE COMPREHENSIVE PLAN AND FUTURE LAND USE PLAN MAP FOR THE CITY OF PARIS AS IT PERTAINS TO CITY BLOCK 250, LOT 32, LOCATED AT 891 CLEMENT ROAD, PARIS, LAMAR COUNTY, TEXAS, FROM COMMERCIAL (C) TO HIGH DENSITY RESIDENTIAL (HDR); MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. Planning Director Andrew Mack said the applicant sought a minor amendment to the Future Land Use Map to provide for a medium to high density residential use of the property and for the zoning to be consistent with the City's Comprehensive Plan. He said the site was just outside of, but immediately adjacent of the newly established 5 In 5 Infill Housing Program eligibility boundary. He said that the Planning & Zoning Commission recommended approval of this item, as did City Staff. i Mayor Portugal opened the`,public hearing and asked for anyone wishing to speak about this item to please come forward. With no one speaking, Mayor Portugal closed the public hearing. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Pilgrim; Motion carried 7 ayes — 0 nays. 20. Conduct a public hearing;, discuss and act on ORDINANCE NO. 2022-022: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK 250, LOT 32, LOCATED AT 891 CLEMENT ROAD, IN THE _CITY FO PARIS, LAMAR COUNTY, TEXAS, FROM A COMMERCIAL DISTRICT (C) TO A MULTIPLE - FAMILY DISTRICT NO. 1 (MF -1); DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF THE CITY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Planning Director Andrew Mack said this zoning request was consistent with the previous action. He said that the Planning & Zoning Commission recommended approval of this item, as did City Staff. Mayor Portugal opened the public hearing and asked for anyone wishing to speak about this item to please come forward. With no one speaking, Mayor Portugal closed the public hearing. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Savage. Motion carried 7 ayes — 0 nays. Regular Council Meeting April 25, 2022 Page 6 21. Conduct a public hearing, discuss and act on ORDINANCE NO. 2022-023: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND ADOPTING REVISIONS TO THE COMPREHENSIVE PLAN AND FUTURE LAND USE PLAN MAP FOR THE CITY OF PARIS AS IT PERTAIN TO CITY BLOCK 170-C, LOT 22, LOCATED AT 2296 S.E. 3RD STREET, PARIS, LAMAR COUNTY, TEXAS, FROM A COMMERCIAL DISTRICT (C) TO A LOW DENSITY RESIDENTIAL DISTRICT (LDR); MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. Planning Director Andrew Mack explained Austin Sugg had requested a minor Comprehensive Plan amendment for a single vacant lot. He said changing of a single lot was not consistent with sound land use planning practice and should be denied, unless changes were made to the larger area. Mr. Mack also said if the Planning & Zoning Commission and City Council were amenable to making changes to the FLUM guiding future residential development, then staff would initiate, these changes and referenced the proposed FLUM changes in their agenda packet. Mr. Mac g p k said staff recommended approval of this request for a Comprehensive , Plan Amendment from Commercial to Low Density Residential on the basis that the City was initiating a larger area change to the FLUM, based upon the current and future uses of this two block area along''S.E. 3'd Street. Mayor Portugal opened the public hearing and',asked for anyone wishing to spear about this item to please come forward. With no one speaking, Mayor Portugal closed the public hearing. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Savage. Motion carried 7 ayes — 0 nays.' 22. Conduct a public hearing, discuss and act on ORDINANCE NO. 2022-024: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS, AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK 170- C, LOT 12, LOCATED AT 2296 S.E. 3RD STREET, IN THE CITY OF PARIS, LAMAR COUNTY, TEXAS, FROM A COMMERCIAL DISTRICT (C) TO A TWO-FAMILY DWELLING DISTRICT (2F); DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF THE CITY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Planning Director Andrew Mack said the applicant was requesting rezoning of the property in order to construct two duplexes on the lot, which would involve a subdivision approval, if the zoning change was approved. He said that the Planning & Zoning Commission recommended approval of this item, as did City Staff. Regular Council Meeting April 25, 2022 Page 7 Mayor Portugal opened the public hearing and asked for anyone wishing to speak about this item to please come forward. With no one speaking, Mayor Portugal closed the public hearing. A Motion to approve this item was made by Council Member Pankaj and seconded by Mayor Pro -Tem Hughes. Motion carried 7 ayes — 0 nays. 23. Conduct a public hearing, discuss and act on ORDINANCE NO. 2022-025: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A MINOR COMPREHENSIVE PLAN AMENDMENT TO THE MASTER THOROUGHFARE PLAN BY REMOVING THE PLANNED EXTENSION OF THE COLLECTOR STREET FOR PINE MILL ROAD WEST OF COLLEGIATE DRIVE DESIGNATED AS PROPOSED FUTURE COLLECTOR ROADWAY #C9. Planning Director Andrew Mack said that staff had been working with the developer on a proposed subdivision in the area and that the proposed collector street negatively affected a planned development of this site. He said'' that; the Planning & Zoning Commission recommended approval of this amendment by removing the planned extension of the collector street for Pine Mill Road West of Collegiate Drive; as, did City Staff. Mayor Portugal opened the public hearing and,, asked for anyone wishing to speak about this item to please come forward. With no'one speaking, Mayor Portugal closed the public hearing. A Motion to approve the amendment to the Master Thoroughfare Plan by removing the planned extension of the collector street was made by Mayor Pro -Tem Hughes and seconded by Council Member Pilgrim. Motion carried 1 ayes — 0 nays.' 24. Receive and discuss the 2022 Water & Wastewater Cost of Service Rate Study; and consider ORDINANCE NO. 2022-026: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING APPENDIX A, "FEE SCHEDULE," ARTICLE A10.000, "UTILITY RATES AND CHARGES," SECTION A10.003, "WATER RATES," OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS TO REFLECT CHANGES RECOMMENDED BY THE 2022 WATER AND SEWER RATE STUDY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Finance Director Gene Anderson said the City currently had treated water contracts with four local industries and one of the requirements of the contracts was for the City to have an independent rate consultant conduct a cost of service study each year. Mr. Anderson introduced Chris Ekrut with New Gen Strategies, who presented the rate study to City Council. Mayor Portugal confirmed with Mr. Ekrut that the current water rates were not sufficient for the City's program. Council Member Savage said people were using less water because they Regular Council Meeting April 25, 2022 Page 8 were being more conservative, and that he hated to have to raise the water rate. Mr. Erkut explained this was going on everywhere but that hopefully it would equalize at some point. Mayor Portugal said to deliver safe water it was costing the City more because of the price increase of chemicals. A Motion to approve this item was made by Council Member Pilgrim and seconded by Council Member Pankaj. Motion carried 7 ayes — 0 nays. 25. Discuss and act on ORDINANCE NO. 2022-027: AN ORDINANCE OF THE C! COUNCIL OF THE CITY OF PARIS, TEXAS, EXTENDING THE MAYOR' DECLARATION OF LOCAL DISASTER FOR PUBLIC HEALTH EMERGENC AND ORDER DATED MARCH 19, 2020, AS EXTENDED BY RESOLUTION N 2020-011 AND MOST RECENTLY BY ORDINANCE NO. 2022-003 FOR ADDITIONAL NINETY DAYS (90); MAKING OTHER FINDINGS AN PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTI__ DATE. I . I City Attorney Stephanie Harris said the!Governor had extended the State's Declarati and recommended that the City extend the Declaration of Disaster for Covid-19 related pub I . health emergency for 90 days or until July 25, 2022. A Motion to approve this it was made by Council Member Savage and seconded by Council Members Pankaj' and Pilgrim. Motion carried, 7 ayes — Oenays. 26. Convene into executive session pursuant to: A. Section 551.071 of the Texas Gove'mment Code, Consultation with Attorney, to receive legal advice froin' the City Attorney about (1) pending or contemplated litigation and/or (2) on matters in which the duty of an attorney to her client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with this chapter, to -wit: Interlocal Agreement with North Lamar ISD. & Section 551.087 of the Texas Government Code, (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1), as follows: Westgate Apartments. Mayor Portugal convened City Council into executive session at 6:35 p.m. 27. Reconvene into Open Session and possibly take action on those matters discussed in Executive Session. Regular Council Meeting April 25, 2022 Page 9 Mayor Portugal reconvened City Council into open session at 7:16 p.m. and said there was no action to be taken. 28. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. Council Member Knox said it was that time of year to do staff evaluations, and asked for a discussion item on their May 9t' City Council agenda. 29. Adjournment. There being no further business, A Motion to adjourn was made by Council Member Pankaj and seconded by Council Member Savage. Motion carried, 7 ayes — 0 nays. Mayor Portugal adjourned the meeting at 7:17 p.m. ....... ...... �......��..... .u.. PAULA PORTUGAL MAYOR JANICE ELLIS,' 4.CITY CLERK Item No. 6 HISTORIC PRESERVATION COMMISSION MINUTES 107 E KAUFMAN ST PARIS TEXAS 75460 WEDNESDAY March 9 2022 ............................ Present Absent Chris Dux, Chair Laura Caffey, Vice Chair Linda Vandiver, Secretary Jennifer Long Glee Emmite Ryan Matthews Matthew Coyle Jessica Holtman Staff Cheri Bedford- HPO Linda Knox, Council Liaison Robert Talley Code Enforcement James Hooten, Assistant Building Official Andrew Mack, Director of Planning and Development Robert Vine. Assistant Citv ManaLer Chairman Dux called the meeting to order at 4:00 p.m. There was no one who spoke at the Citizens Forum Guests Hunter Berry Cristi Ford Sims Norment Clifton Fendley Claudia Middleton Millie Key Sandra Solomon Suzanna Coyle The February 9, 2022 meeting minutes were approved by acclamation The Fagade grant was approved to Project PTX in the amount of $2500 for the improvements on the fagade of 27 Clarksville. Commissioner Coyle made the motion to approve the payment of funds to Project PTX, motion was seconded by Commissioner Emmite. Motion Carried 6-0 The commission reviewed the certificates of appropriateness for the installation of downspout on 4 N. Plaza. Hunter Berry and Cristi Ford gave an overview of the project. There was an issue with flooding at the roof of the property during heavy rains. Mr. Berry proposed the addition of a catch basin and downspout attached to the outer wall on the east side of the building. The problem would alleviate the drainage problems by routing the water to the exterior of the building. Mr Berry proposed removal of two to four bricks, that would be core drilled through. The Commission had some questions on the venting of the drain and the size of the existing pipe leading to the street inside, in regards to the need to add a downspout. Andrew Mack, Director of Planning and Development, on behalf of the building department reminded the commission of their purview to review the aesthetics of the downspout in regards to the historic district, and the building official would work with the property owner to assist with the functionality of the downspout. After no further discussion the Commissioner Matthews made the motion to approve the addition of a metal downspout as presented, and that the downspout would be painted in a historic color to match the building. Motion was seconded by Commissioner Coyle, motion carried 6 - 0 Commissioner Coyle was recused for the hearing of the next application. Matthew and Suzanna Coyle presented a certificate of appropriateness request to relocate the existing entry door on 7 S. Plaza. Their proposed entrance would remove the existing displays windows and door in the entry set back, and replace them with handicap accessible double doors with smaller display windows. Ms. Coyle explained the goal was to improve the handicap accessibility. They have consulted with the Texas Main Street Design team. Chairman Dux asked for clarification on the placement of the door, and if they were following the recommendations from the Design staff or doing their own design. Ms. Coyle explained the team presented three proposed designs and one of them included a recessed front. However, their project would remain recessed using the existing profile of the display windows and doors. The applicant is proposing the removal of the aluminum doors and windows, and using wood and fiberglass as a replacement entry consisting of wood framing, double fiberglass doors and Commissioner Matthews addressed the materials utilized noting that wood grain texture is not an appropriate finish for the historic district per the design standards. Commissioner Matthews also noted the amount of aluminum of the existing store front asked the applicant what their thoughts were with an aluminum storefront as opposed to a wood framed storefront as was the recommendation of the Texas Main Street Design team. Commissioner Dux noted the Design team offered either wood, or aluminum, but too many different building materials would be more of a mismatch. Commissioner Emmite clarified with the applicant the location of the door would be behind the flooring tile in the entrance with the family name Solomon. Hearing no other comments, Chairman Dux called for a motion from the commission. Commissioner Matthews made a motion to deny the Certificate of Appropriateness as presented and work on a further design that was more appropriate. Chairman Dux asked Commissioner Matthews if he could make an addendum to the motion that if the applicant selects any of the designs presented by the Design team from Texas Main Street, then the design would be approved in house. Motion was seconded by Commissioner Emmite, motion carried 5 - 0 The fagade grant request and the tax exemption requests for 7 S. Plaza were tabled until the property owner has a new Certificate of Appropriateness, at which time the two applications will be included. Commissioner Coyle returned to the commission. The Commission reviewed the properties listed below to determine if they could be designated as historic landmark for the City of Paris. Commissioner Vandiver made the motion to approve the consent agenda, concluding the properties have no historic value to the City of Paris, motion was seconded by Commissioner Matthews. Motion Carried. 6-0 A. 560 E Washington B. 1050 SE 17'b C. 951 E Hickory D. 651 SE 12a' E. 1830 W Washington Code Enforcement Officer Robert Talley gave an overview of the proposed Vacant Building Registry for all City of Paris Historic Districts. All the vacant properties are catalogued. There are several small pockets of standalone Historic Districts, but the main focus is HD -2 the Church Street Historic District. The ordinance would propose all properties that are vacant will need to register with the City of Paris and keep the property in a standard of care to protect the historic assets. Lots of feedback has been positive. There are houses that have nothing being done with the historic homes and completely disinvesting the neighborhood, and the property owners are wanting to revitalize. Criteria would include fees, and inspections on electrical service and bringing it up to code, order exterior code violations corrections if necessary, safety of the interior of the structure, and provide insurance and sitting as a fire risk to the neighborhood. Councilwoman Knox gave a background as to how the program came about, and asked for the partnership for support this initiative, being part of a multipronged approach to reclaim the neighborhoods in the city of Paris. Other aspects include increased code enforcement and abatement team and the new infill initiatives that could slow the deterioration of neighborhoods, and in fact help them to revitalize. A motion was made to support the vacant property ordinance as it is presented to city council by Chairman Dux, seconded by Commissioner Emmite, motion carried 6 - 0 James Hooten, Assistant Building Official presented the information on the rental inspection for properties in all the historic districts. The commissioners were shown a PowerPoint with the criteria for the standard of care, a copy of the ordinance and the letter that will be sent to property owners and the forms the property owners would use to begin the registry inspections. Mr Sims Norment stated that he was in full support of the rental housing licensing. . Clifton Fendley made some comments on making sure the new ordinance isn't too limiting, are some rental agreements that would most likely be affected, and not to preclude any development of rentals such as bed and breakfasts in the area. Ms. Bedford gave updates on Certificates of Appropriateness approved in house. She discussed the date on the Imagine the Possibilities tours, and changing the format to more of the downtown showoff. Property owners of 138 Grand Ave have requested a renewal for the selective demo of the windows on the 1' street side. Paris has received a CLG grant to send 4 commissioners to the National Alliance of Preservation Commission training in Cincinnati Ohio in July. Cheri will be presenting at the National Main Street conference in Richmond Virginia on the use of the historic resource survey in the GIS Database. Hearing no other business the commission adjourned at 5:45 p.m. AplirovedusZ', day of _ 2022 Chairman A Love Civic Center Governing Board Minutes Love Civic Center and Zoom Meeting February 10, 2022 Present: Davis Burkhardt, Sydney Young, Dr. Wally Kraft, Trey Peeples, Colton Perry, Brittany Johnson, Robert Staples, Russell Jackson. Staff: Gina Crawford, Randy Nation and Paul Allen Paul Allen called the meeting to order at 12:15 pm. Russell Jackson gave an overview of the December 2021 financials. A motion to approve was made by Dr. Wally Kraft, seconded by Davis Burkhardt, motion passed unanimously. December minutes were reviewed. A motion to approve was made by Colton Perry, seconded by Trey Peeples, motion passed unanimously. Paul Allen stated that City Council on February 14th will accept the Tegrity contract for renovations. The bid is for 1.3 million and the rest will come out of reserved for construction. He also stated that we will pay Ford AV and Crawford Electric around $60,000 to finish the panel install for AV, lights and HVAC. A motion to approve was made by Dr. Wally Kraft, seconded by Colton Perry, motion passed unanimously. Robert Staples gave a motion to adjourn at 12:30 pm. Respectfully submitted, Gina Crawford Page 1 of 4 PARIS ECONOMIC DEVELOPMENT CORPORATION MONTHLY MEETING Paris City Council Chambers 107 East Kaufman St. Paris, Texas 75460 Tuesday March 21, 2022 5:30 O'CLOCK P.M. MINUTES Board Members Present: Josh Bray, Chairman Curtis Fendley, Vice Chairman Chase Coleman, Secretary/Treasurer Dr. A.J. Hashmi Stephen Terrell Erik Roddy Mark Homer Ex -Officio Members Present: Paula Portugal, City Mayor Grayson Path, City Manager Pam Anglin, President PJC Reginald Hughes, Mayor Pro Tem /City Council Liaison Mihir Pankaj, City Council Staff Present: Maureen Hammond, Executive Director Chris Stout, Economic Development Associate Stephen Kelly, Executive Assistant Le al Counsel: Casey Gain, PEDC Attorney Guest Present: Andrew Mack, City of Paris Mary Madewell, The Paris News Video Teleconference North Star Place Branding + Marketinr Ed Barlow, Senior Vice President Sam Preston, Director of Project Management Call to Order Mr. Bray called the monthly meeting of the Paris Economic Development Corporation to order at 5:30 p.m. on March 21, 2022. Invocation Mr. Erik Roddy gave the invocation. Welcome and O enin Remarks Mr. Bray thanked everyone for their attendance. Citizens' Input Mr. Bray invited those present to speak during Citizens' Input. No one came forward and the Citizens' Input was closed. Discuss and Consider Approval of the Minutes of the Regular Meeting, held Februar 15 2022 Mr. Bray asked for discussion and approval of the minutes. Dr. Hashmi made a motion to approve the February 15, 2022, minutes. Mr. Homer seconded the motion. Vote was 7 -ayes to 0 -nays PEDC Board Meeting Minutes Tuesday, March 21, 2022 Page 2 of 4 Discuss and consider ;ipj2LqyaI of the December 2021„ january 2022, and February 2'022 financial statements Mr. Coleman opened with stating there were three months of financials due to a recent loan with the city, our recent land purchase, and paying down debt. These events led to a reorganization of our financials to reflect proper itemization and allocation of recent changes. Mr. Coleman first reported on financials for December 2021. He stated for the month of December our statement showed total assets of $9.3 million. Of the $9.3 million, $3.5 million was reported in cash, $2 million in investments, and $3.3 million was in real estate holdings. Total liabilities were $3.68 million, leaving a net cash position of $5.6 million. Mr. Coleman completed review for the month of December stating that the sales tax revenue was $144,288, with a total net -income of $91,405. For the month of January 2022, Mr. Coleman stated the statement reflected total assets of $8.3 million. He added that total liabilities decreased to $2.5 million, leaving a net cash position of $5.8 million. To conclude the discussion of January's financials, Mr. Coleman relayed sales tax revenue for the month was $150,200, with a total net -Income of $109,820. During the month of February, Mr. Coleman reported total assets were $8.4 million and total liabilities were $2.4 million, with a total net cash position of $5.9 million. He stated that the sales tax revenue for February was $182,999, with a total net -income of $155,573. Mr. Coleman concluded by reviewing the five-month financial overview ending February 28, 2022. Total revenues were $788,757 with total operating expenses equaling $248,398. Additionally, he added that with the recent large principal repayments, the financials are reflecting large cash outs, but not showing cash inputs with the additional financing activity. This makes it appear that we are carrying a deficit balance of $710,835 when it shouldn't be. Mr. Coleman noted suggestions to adjust and properly reflect new financing with the city and reflect positive balance. He closed by stating that it was a strong year for sales tax revenue and expenses are in line with expectations. Dr. Hashmi and Mr. Bray made suggestions for future financial statements to include a figure for the year-to- date percentage over or under budget along with condensing expenses into the major line items to assist in ease of review for members of the board. Dr. Hashmi inquired about recent debt reduction savings on interest from recent loan payoff. Mr. Coleman responded stating the bank loan's interest rate was 3.75%, while the city loan is 2.14%. He stated that it put the PEDC in a better financial position with the overall amount in interest savings. Dr. Hashmi made the motion to approve all three months of financials. Mr. Fendley seconded the motion Vote: 7 -ayes to 0 -nays. Receive and discuss s eculative building resentation iven b Executive Director Maureen Hammondand Mr. Carlos A. dgSaracho Princi al of Alliance Architects, Mr. Bray proposed tabling item until the next board meeting, as Mr. Saracho was unable to attend the meeting due to inclement weather. Dr. Hashmi made the motion to approve. Mr. Coleman seconded the motion. Vote: 7 -ayes to 0 -nays. Receive and discuss u date on ioint branding roiect by Senior Vice President Ed Barlow and Director of Prolect Mana ement Sam Preston with North Star Place Branding + Marketing PEDC Board Meeting Minutes Tuesday, March 21, 2022 Page 3 of 4 Mr. Bray made a recommendation for agenda item 7 to be moved to agenda item 5. Dr. Hashmi made the motion to approve. Mr. Fendley seconded the motion. Vote: 7 -ayes to 0 -nays. Ms. Hammond provided an update on the Steering Committee's activity as follows: The PEDC, City of Paris, and Lamar County Chamber of Commerce approved the North Star Place Branding and Marketing's Proposal and Scope of Work for branding and marketing services during their recent board meetings. This has initiated the rollout of the branding and marketing process with North Star as the selected firm. Ms. Hammond gave a brief introduction of the guests that were present from North Star through video conference, then turned the floor over to Mr. Barlow and Mr. Preston. Mr. Barlow thanked everyone for the opportunity and stated they were excited to be working with everyone on this effort. He started the presentation by providing a brief overview and history of the company along with some examples of previous branding experience work at several different locations. He continued the presentation by discussing topics ranging from the basics of branding and marketing to their process and approach with Place Branding & Marketing examples. This included sharing how their approach process works, starting with stakeholder and community education as part of their initial stages of research to develop brand development and action ideas. Mr. Barlow concluded his presentation and turned the floor back over to Ms. Hammond. Ms. Hammond provided a date for the familiarization tour, which will commence the week of May 9th and consist of several focus groups and multiple one-on-one interviews. These interviews will be done with individuals and groups identified by the steering committee as part of the branding research process. No action was taken on this item. Review and discuss re ort from Policy Review Committee onproposed bylaw amendments. Mr. Bray opened the discussion by thanking the members of the Policy Review Committee (Dr. Hashmi, Mr. Homer and Mr. Roddy) for their time and continued commitment and work they have done thus far. He turned the floor over to Ms. Hammond. Ms. Hammond stated the policy committee has meet three times and has completed review of the by-laws. As a result of their review, they have developed several suggested amendments which were highlighted in red within the agenda packet provided. She turned the floor over to Mr. Gain. Mr. Gain along with Ms. Hammond briefly went over each of the proposed amendments on pages 5, 7, 8, 13 and 15, and provided further detail along with explanation to suggested changes and answered any questions from board members through discussion. Dr. Hashmi, Mr. Homer and Mr. Roddy contributed to discussion by offering explanation to proposed amendments. Ms. Hammond closed with thanking the members of the committee for all the time they have put into examining and discussing the by-laws. Mr. Bray noted that today's review was for discussion only and that action would be requested in April. No action was taken on these items. PEDC Board Meeting Minutes Tuesday, March 21, 2022 Page 4 of 4 Convene into Executive Session: 1) Pursuant to Section 551.072 of the Texas Government Code to discuss and deliberate the purchase, exchange, lease, or value of real property. 2) Pursuant to Section 551.087 of the Texas Government Code to (1) discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1), to wit: • Project Red Maple • Project Rocket X 3) Section 551.071 of the Texas Government Code, Consultation with Attorney, to receive legal advice from the PEDC Attorney about (1) pending or contemplated litigation and/or (2) on matters in which the duty of an attorney to their client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with this chapter, regarding potential loan to Paris Economic Development Corporation. Chairman Bray convened the Board into Executive Session at 5:55 p.m. Reconvene into O en Session and Consider Action on Items Discussed in Executive Session Chairman Bray reconvened the Board into Open Session at 6:25 p.m. Dr. Hashmi made the motion to approve the closing of the land transaction discussed during the executive session under the terms of the purchase and sale agreement, and grant authorization to Chairman Bray and Treasurer Coleman to execute any and all documents along with funds from cash deposits in order to close said land transaction. Mr. Homer seconded the motion. Vote: 7 -ayes to 0 -nays. Discuss Future Agenda Items No future agenda items were brought forward to discuss. Adjourn Dr. Hashmi made a motion to adjourn the meeting. Mr. Fendley seconded the motion. Vote was 7 -ayes to 0 -nays Mr. Bray adjourned the meeting at 6:27 p.m. Respectfully submitted, Stephen Ke ly Executive Assistant Paris Economic Development Corporation Paris Public Library Advisory Board 03/16/2022 Meeting Minutes Opening: The regular meeting of the Paris Public Library Advisory Board was called to order by Chairman Steve Hellmann at 4:00 pm. Present: Board members present were: Steve Hellman, Eva Dickey, Jennifer Cullum, and Melanie Loughmiller. Library Director Tim DeGhelder, PJC Intern Justin, City Council Liaison Linda Knox, and the Assistant City Manager Rob Vine were also present. Board members Myers Hurt, Lauren Mathews, and DeEtte Cobb were absent. Tim introduced the Assistant City Manager to the board. Rob will be working with the library and other city departments to help with the flow of communications. Rob most recently came from the City of Mt. Pleasant, where he worked there for 16 years. The new Chain of Command for the library will be from Tim to Rob and then to Grayson Path, if necessary. Rob stated that he was excited about helping to establish new partnerships with the library and local community. Citizens Forum: No citizens addressed the library board. II. Approval of Minutes: The minutes of the February 16, 2022 meeting were approved by the board with Eva Dickey making the motion and Melanie Loughmiller providing the second. III. New Business: In response to a recent article written in The Paris News regarding artist Jose' Cisneros' sketches and artwork at the library, Tim clarified that the book, Red River Valley: Then and Now by AW Neville is available for library visitors to view whenever they would like. Tim took the sketches down from the walls, along with other pieces of art in the library, in order to have them appraised. Tim noted that the book is signed by the author. Once appraised, the majority of sketches will be placed back on the library walls, with the others being made available to view on request. IV. Old Business: Tim stated that the Strategic Plan building update would be discussed in the April meeting. This update discussion will include long term items such as shelving and furniture. V. Presentations a. Budget Report The total expenditures so far amount to $302,578.57, which is 41% of the FY 2022 budget. There were no comments from the Library Advisory Board members regarding February's expenditures. b. Statistical Report February's statistical report shows an increase in Juvenile books, patron visits, and a -book usage. The library's YouTube account has gone up considerably. Tim noted that the adult reading program was a success, with 306 people taking a reading log and about 150 returning the log completed. VI. Friends of the Library Report a. The Friends of the Library purchased a laptop for the library visitors to use and Tim made certain to purchase the laptop through the City of Paris so that it would be eligible to have the city's IT personnel conduct maintenance on it. Tim stated that this laptop would be made available to visitors of the library. Steve Hellmann suggested creating a 2nd email address for the visiting users. b. The Friends established a new president, Audrey Mathieu. c. The Friends will also be paying for % the cost of summer performers for the children's program at the library. VII. Director's Remarks a. Tim told the board that Justin, the library's intern, will be at the library 20 hours a week through May. b. Summer hours: Tim talked with Rob regarding changing the library's hours during the summer time so that more people could visit the library more often. Tim is concerned for children of working parents who can't get off in time to make it to the library will not have access to books like they do during school time. Tim would also like to update the library hours to allow more time available for families to come and visit. The new hours for summer will be Tuesday and Thursday, from 10-8. Melanie loved the idea, as did the other board members. Steve mentioned that this would also provide an opportunity for evening programming. Melanie asked how the staff felt about the change in hours and Tim said that the staff was receptive to the update, with some staff members preferring that schedule, so there was no need to change staff working hours. Tim also wanted to consider if the current hours were conducive to serving the entire population of Paris. Steve suggested that at the end of the summer, re-evaluate how impactful the change in open times was for the library. Tim said it's possible that if enough people enjoyed the later hours, the library may keep them. c. 1000 Books Before Kindergarten: The library had a soft rollout recently, with the big opening on April 1St. The initiative was pushed in the paper and local media outlets. So far, the library has given out 16 tags for reaching 100 books read. Tim said that when the child reaches the milestone tag, he takes a picture of them by the poster and that the children love it. d. Pete the Cat: Pete the Cat is coming to the library on March 18th. So far, the library has had more than 100 people signed up to participate but there is only so much allowable space inside so the event will be moved outdoors with a pizza party and photo opportunity. e. PLA: The Public Library Association will have online training and valuable material for the library staff. Tim said that the programming is cost effective because no one has to travel and he plans on having 2 sessions for each staff member to watch. Tim said that these presentations are a valuable contribution to the staff because they provide libraries across the United States with updated information and new material ideas to keep the library fresh, inviting, and updated for patrons to continue coming back. f. Girl Scouts: The Girl Scouts took a tour of the library. They will be the first community group that utilizes the library, with up to 60 people at a time, once a month. The Girl Scouts plan on hosting numerous programs at the library, including a craft with kids and STEM programs. g. City Square: City Square sent the library a Thank You card, for the non-perishable food items that were donated. Tim said that the library's drive reached almost 400 items sent to City Square. h. Book Club: Tim will begin the adult book club on April 19th, starting with the Chicken Soup for the Soul series. The book club will run on Tuesday night every three months. i. AED Machine: The city will retrain the entire staff on the proper use of the AED machine installed at the library, as well as update the CPR certification. Steve asked if someone was responsible for checking the batteries on the equipment. Rob said that yes, the city is responsible for maintenance on all city machines. Rob also noted that there's a phone app available to anyone who wants to know where the closest AED device is. j. Cub Scouts: The Cub Scouts want to establish a Little Free Library. Tim said that the library receives plenty of donated children's books and that the Little Free Library should be placed next to a laundry mat or some location that children will have access to it while having to wait on their parents. Tim said that this is established for the community and people should feel welcome to use it. k. Food Box: Tim stated that a library customer approached him about the possibility of placing a food donation box near the library. Tim thought this was a great idea and noted that he wants people to feel cared for and respected when they think of the library. The meeting was adjourned at 4:53 pm, with Melanie Loughmiller making the motion and Eva Dickey providing the second. The next meeting will be on April 20th, 2022. Submitted by: Jennifer Cullum, Secretary MINUTES PLANNING AND ZONINGCOMMISSION CITY COUNCIL CHAMBERS 107 EAST KAUFMAN - PARISF..,TEXA......w..,...:... S MONDAY, APRIL 04.2022.5:30 P.M. 1. The meeting of the Planning & Zoning Commission was called to order at 5:30p.m. by Chairman Chad Lindsey. Commissioners Present: Chad Lindsey, Clifton Fendley, Francine Neeley, Austin Anthony, Tylesha Ross-Mosely, Sims Norment Commissioner Absent: Michael Mosher 2. Citizens' forum. (Persons desiring to address the Planning and Zoning Commission must limit their presentation to no more than two minutes. Unless an item is posted on the Agenda, the Texas Open Meetings Act prohibits the Commission from responding to any comments other than to refer the matter to a future agenda, to an existing policy, or to a staff person with specific factual information. Claims against the City, Council Members, or employees, as well as individual personal appeals are not appropriate for citizens' forum.) The citizens' forum was declared open. With no one speaking, the forum was declared closed. Approve minutes from. the meeting of March 07, 2022. A motion to approve the minutes for the March 07, 2022 meeting was made by Clifton Fendley and seconded by Tylesha Ross-Mosely. Motion carried 6-0. 4. Public hearing to consider and take action regarding the petition of Bailey Asay on behalf of Thou Chan for a change in zoning from a One -Family Dwelling District No. 2 (SF2) to a Multiple -Family Dwelling District No. 1 (MF -1) in the City of Paris, Block 257-A, Lot N PT 3, Lot 15 & 3A, located at 2340 E Cherry Street and 2331 Pine Bluff- LCAD 18177 and 18190. Mack states this item is returning to the Commission from last month's agenda from the tabled action. We have now included the very north portion of the property, which will be correctly identified in the subsequent item on the agenda, which is the plat. The applicant plans to construct a new 9-plex on the East Cherry Street frontage. The project is planned to begin this year if approved. The residence fronting on Pine Bluff is not a part of the rezoning. The rear portion of this lot is being removed and added to the new plat for the parcel fronting on Cherry Street. Staff recommends approval of the change in zoning from a One -Family Dwelling District No. 2 to a Multiple -Family Dwelling District No. 1. The public hearing was declared open. With no one speaking, the public hearing was declared closed. A motion was made by Clifton Fendley and seconded by Austin Anthony to approve the zoning change. Motion carried 6-0. 57 Public hearing to consider and take action regarding the petition of Bailey Asay on behalf of Distinguished Property & Investments, LLC for a change in zoning from a Commercial District (C) to a Multiple -Family Dwelling District No. 1 (MF 1) in the City of Paris, Block 250, Lot 32, located at 891 Clement Rd- LCAD 53721. (Mack states items S and 6 on this agenda are dealing with the same property. !Clack requests action to be taken on item 6 first then move back to item S. _Motion approved 6-0 to rearrange order of agenda.) The applicant is requesting the zoning change to construct a 9 -unit apartment. The change in zoning will be consistent with the amended future land use map. This will fit with the mix of uses in this immediate area and proper screening can be provided to the existing single-family residences. The public hearing was declared open. With no one speaking, the public hearing was declared closed. A motion was made by Austin Anthony and seconded by Francine Neeley to approve the zoning change. Motion carried 6-0. 6. Public hearing to consider and take action regarding the petition of Bailey Asay on behalf of Distinguished Property & Investments, LLC for a Comprehensive Plan Amendment from a Commercial (C) to High Density Residential (HDR) in the City of Paris, Block 250, Lot 32, located at 891 Clement Rd- LCAD 53721. Mack states that the applicant has requested a minor comprehensive plan amendment from Commercial to High Density Residential for the construction of a new 9-plex at the Northwest corner of Fitzhugh and Clement Road. The ability to provide for high-density housing in this portion of the City is a reasonable accommodation to achieve the goal of affordable housing opportunities in the community. Staff recommends approval of the comprehensive plan amendment. The public hearing was declared open. With no one speaking, the public hearing was declared closed. A motion was made by Clifton Fendley and seconded by Tylesha Ross -Mosley to approve the comprehensive plan amendment. Motion carried 6-0. 7. Public hearing to consider and take action regarding the petition of Adam Bolton on behalf of Austin Sugg for a change in zoning from a Commercial District (C) to a Two -Family Dwelling District (2F) in the City of Paris, Block 170-C, Lot 12, located at 2296 SE 3rd Street- LCAD 71599. (Mack states items 7 and 8 are dealing with the same property and therefore requests action to be taken on item 8 first then move back to item 7. Motion approved 6-0 to rearrange order of agenda.) Mack states that Austin Sugg is requesting a zoning change of the subject property in order to construct two duplexes on the lot. Staff is recommending the zoning change and will initiate the changes for the May cycle of Planning & Zoning cases. The public hearing was declared open. With no one speaking, the public hearing was declared closed. Tylesha Ross -Mosley asked when would the remaining properties in this area be brought forth for amending the comprehensive plan. Mack states this will be on the May agenda after notification to the property owners. A motion was made by Clifton Fendley and seconded by Austin Anthony to approve the zoning change. Motion carried 6-0. Public hearing to consider and take action regarding the petition of Adam Bolton on behalf of Austin Sugg for a Comprehensive Plan Amendment from Commercial (C) to Low Density Residential (LDR) in the City of Paris, Block 170-C, Lot 12, located at 2296 SE 3rd Street- LCAD 71599. Mack states that Austin Sugg has requested a minor Comprehensive Plan amendment from Commercial to Low Density Residential for this single vacant lot. Staff has not initiated a future land use map amendment for additional surrounding properties at this time. It is the staff's opinion; this should be done to create a larger cohesive fixture land use area for guiding development or redevelopment of this side of 3rd Street SE. This would be far more consistent with the existing low-density residential character of the area, rather than for incremental conflicts for commercial development interspersed within the residential neighborhood. Staff is of the position that the Commission and City Council should be prepared to make these changes to the City's adopted fixture land use map, along all or a portion of this two -block area of 3rd SE between South Church and Loop 286. If the Commission and City Council are amenable to making changes to the future land use map guiding future residential development, then staff will initiate these changes. Staff recommends approval of this request for a Comprehensive Plan Amendment from Commercial to Low Density Residential, provided the city initiates a larger area change to the future land use map based upon the current and future uses of this two -block area along SE 3rd St. Adam Bolton, 1450 Boardwalk, is the applicant applying on behalf of Austin Sugg. Bolton states they are proposing a 2F usage for this property and acknowledge the future land use as it is today, however, there is a utility easement that services the sewer line running down to Chisum. This easement would make it difficult to achieve commercial usage. They are prepared to submit for a building permit and start residential construction as soon as possible. The public hearing was declared open. With no one speaking, the public hearing was declared closed. A motion was made by Chad Lindsey and seconded by Sims Norment to approve the comprehensive plan amendment. Motion carried 6-0. 9, Public hearing to consider and take action regarding the petition of Morad Elwir on behalf of Sarah Faber and Jerry Jackson for a Specific Use Permit (SUP) for a Fuel Station in the City of Paris, Block 41-A, Lots 1-3 and 5-8, Commercial District, located in the 300 Block of N Main St, LCAD 14017, 14016, 14015, 14022, and 1.4021. Mack states the applicants have requested approval of an SUP to permit the redevelopment of the subject property with a gas and convenience station at the Northeast corner of Main Street North. and Graham Street. The project includes the assembly of several parcels into a newly platted lot to facilitate this development. The City Council may, in the interest of the public welfare and to assure compliance with the zoning ordinance, establish conditions of operation, location, arrangement and construction of any use for which a permit is authorized. Staff has worked carefully with the project development team regarding the site layout and design of the improvements to assure conformity with the regulations. City Staff has also coordinated with TXDOT in providing direct input as to the design and layout of the proposed driveway approaches to Main Street to achieve the safest possible access design for the approaches. Direct access will also be provided to the site from Graham and 1 st Street NW consistent with the current site approaches prior to this redevelopment. Staff recommends approval of the SUP to permit a gas and convenience station, subject to the following conditions: 1. Approval of the site civil construction improvements by the City Engineer prior to issuance of a building permit. 2. Approval of new driveway access permits by the City and TX DOT prior to commencing any new site development construction. The public hearing was declared open. The following citizens spoke in opposition of the petition citing concerns of increased traffic, car wrecks, crime and alcohol sales: Charles Mackey, 2115 SE 40111 Street, member of Graham Street Church of Christ Stacy Ladell, 1730 Majestic Dr, member of Graham Street Church of Christ Van Wilson, 2865 Cypress Dr, member of Graham Street Church of Staff Mack shared the site plan to show where the driveway access will be located on the Main Street side as well as the NW 1st Street side. Mack advised any alcohol licensing comes under a separate provision of City and State code and this is not the purview of this body to determine whether or not alcohol licenses are issued. That is a separate permit and process. Chad Lindsey asked staff if there is any concern about traffic flow in which Mack advised that this is a safe design for traffic flow with concurrence from TXDOT. The public hearing was declared closed. A motion was made by Sims Norment and seconded by Austin Anthony to approve the Specific Use Permit for a Fuel Station with noted conditions: Motion carried 5-1 with Tylesha Ross-Mosely in opposition. 10. Public hearing to consider and take action regarding the petition of the City of Paris to amend the Master Thoroughfare Plan by removing the planned extension of a collector street for Pine Mill Road West of Collegiate Drive. Mack advised that staff has reviewed the proposed collector street segment of the Master Thoroughfare Plan in relation to a new proposed subdivision development planned along the east side of the intersection of Highland Road and 25th Street NE. The proposed collector street negatively impacts a planned development of this site. Furthermore, the larger area between 25th and Main Street does not afford a good and reasonably straight connection between the two major roadways without severe jogging at multiple intersections, or costly acquisition of private property and demolition of several houses. Mack states the best roadway planning decision is to amend the plan by removing this planned Collector Street. Staff recommends approval of the Minor Amendment to the Master Thoroughfare Plan by removing the planned extension of a collector street for Pine Mill Road West of Collegiate Drive designated as proposed future collector roadway #C- 9. The public hearing was declared open. With no one speaking, the public hearing was declared closed. A motion was made by Francine Neeley and seconded by Sims Norment to approve the amendment of the Master Thoroughfare Plan. Motion carried 6-0. 11. Consideration of and action on the Preliminary Plat of the RW Cox Addition, Lot 1, Block A, LCAD Property ID 71620, located at 1690 SW 19th Street. Mack states the applicant requests simultaneous approval of a Preliminary and Final Plat. The reason for the platting is for the minor expansion addition at the rear of the fabrication business. Staff recommends approval of the Preliminary Plat without conditions. A motion was made by Clifton Fendley and seconded by Austin Anthony to approve the preliminary plat. Motion carried 6-0. 12. Consideration of and action on the Final Plat of the RW Cox Addition, Lot 1, Block A, LCAD Property ID 71620, located at 1690 SW 19t' Street. Mack states this is the same property for final plat. A motion was made by Sims Norment and seconded by Clifton Fendley to approve the final plat. Motion carried 6-0. 13. Consideration of and action on the Preliminary Plat of the Tekmak Addition, Lot 1, Block A, LCAD Property ID 104787, located at 3005 N Main St. Mack states the reason for platting is for the construction of a new high-end combination extended stay and short-term overnight stay hotel complex and conference facility. Staff recommends approval of both plats subject to the following conditions: 1. An access easement for the billboard shall be shown on the Preliminary and Final Plats pursuant to the requirements of Chapter 9, Exhibit A, Section IV, (9) of the Subdivision Ordinance, or a statement shall be added to the final plat stating that said billboard shall be removed from the site prior to issuance of a building permit. 2. A grading and drainage plan shall be submitted with the civil construction plans prior to release of the final plat for recording pursuant to Chapter 9, Exhibit A, Section IV, (6) of the Subdivision Ordinance. 3. The contours shall be removed from the final plat prior to release for recording. 4. The 6" force main serving Love's shall be shown on the Preliminary Plat pursuant to Section Chapter 9, Exhibit A, Section IV, (7) of the Subdivision Ordinance. 5. The trees to be preserved shall be shown on the preliminary plat and site plan prior to final approval of the site civil construction plans pursuant to Chapter 9, Exhibit A, Section IV, (6) of the Subdivision Ordinance. A motion was made by Austin Anthony and seconded by Tylesha Ross -Mosley to approve the preliminary plat with noted conditions. Motion carried 6-0. 14. Consideration of and action on the Final Plat of the Tekmak Addition, Lot 1, Block A, LCAD Property ID 104787, located at 3005 N Main St. Mack advisedthis is the same plat and comments. A motion was made by Tyiesha Ross -Mosley and seconded by Clifton Fendley to approve the final plat with noted conditions. Motion carried 6-0. 15. Consideration of and action on the Preliminary Plat of the Ailsup's Addition, Lot 1, Block A, LCAD Property 14017, 14016,14015, 14022, and 14021, located in the 300 Block of N Main St. Mack states the applicant is requesting simultaneous approval of a Preliminary and Final Plat. The reason for platting is for the redevelopment of the site with construction of a new gas & convenience store. Staff recommends approval of the Preliminary and Final Plats subject to the following conditions: 1. The water and sewer utilities and sizes along N Main shall be shown on the Preliminary Plat pursuant to Chapter 9, Exhibit A, Section IV, (7) of the Subdivision Ordinance. 2. Cherry Street shall be shown on the Preliminary and Final Plats as being located within 200 feet of the parcels being platted pursuant to Chapter 9, Exhibit A, Section IV, (5). 3. The zoning designation on the Preliminary and Final Plats shall be changed to Commercial (C) pursuant to Chapter 9, Exhibit A, Section IV, (10) of the Subdivision Ordinance. 4. The owners name and contact information shall be added to the Preliminary and Final Plats pursuant to Chapter 9, Exhibit A, Section IV, (1) of the Subdivision Ordinance. 5. The Lot and Block description shall be added to the Preliminary and Final Plats pursuant to Chapter 9, Exhibit A, Section V, (5) of the Subdivision Ordinance. 6. The Preliminary Plat shall have a note added reading "Preliminary Plat for Inspection Purposes Only" pursuant to Chapter 9, Exhibit A, Section IV, (13) of the Subdivision Ordinance. 7. The Plat title shall be added to the Final Plat and a legend added pursuant to Chapter 9, Exhibit A, Section IV, (13) of the Subdivision Ordinance. 8. An owner's certificate of dedication shall be added to the Final Plat pursuant to Chapter 9, Exhibit A, Section V, (11) of the Subdivision Ordinance. A motion was made by Clifton Fendley and seconded by Austin Anthony to approve the preliminary plat with noted conditions. Motion carried 6-0. 16. Consideration of and action on the Final Plat of the Allsup's Addition, Lot 1, Block A, LCAD Property 14017, 14016,14015, 14022, and 14021, located in the 300 Block of Main St. Mack states this is the final plat with same comments and conditions. A motion was made by Sims Norment and seconded by Clifton Fendley to approve the final plat with noted conditions. Motion carried 6-0. 17. Consideration of and action on the Preliminary Plat of the Taco Bueno Addition CB250, Lot 1, Block A, LCAD Property ID 53645 and 126658, located at 2330 N Main St. Mack states the applicant requests simultaneous approval of a Preliminary and Final Plat. The reason for platting is for the construction of a new drive-thru fast food restaurant. Staff recommends approval of the Preliminary and Final Plats without conditions. A motion was made by Clifton Fendley and seconded by Tylesha Ross -Mosley to approve the preliminary plat with noted conditions. Motion carried 6-0. 18. Consideration of and action on the Final Plat of the Taco Bueno Addition CB250, Lot 1, Block A, LCAD Property ID 53645 and 126658, located at 2330 N Main St. Mack advised same comments and conditions for the final plat. A motion was made by Sims Norment and seconded by Austin Anthony to approve the final plat without conditions. Motion carried 6-0. 19. Consideration of and action on the Preliminary Plat of the BSA Addition, Lots 1 and 2, Block A, LCAD Property ID 18190 and 18177, located at 2340 E Cherry Street and 2331 Pine Bluff. Mack states the applicant requests simultaneous approval of a Preliminary and Final Plat. The reason for the platting is for the construction of a new 9-plex apartment building. Staff recommends approval of the Preliminary and Final Plats, subject to the following conditions: 1. The zoning district designation shall be changed on the Preliminary Plat from 2F to SF -2 pursuant to Chapter 9, Exhibit A, Section IV, (10) of the Subdivision Ordinance. 2. The zoning district designation shall be changed on the Final Plat from 2F to MF -1, following council approval of the requested zoning change being considered at its 4/25/22 meeting pursuant to Chapter 9, Exhibit A, Section IV, (10) of the Subdivision Ordinance. 3. The sewer line on Pine Bluff shall. be shown on the Preliminary Plat pursuant to Chapter 9, Exhibit A, Section IV, (7) of the Subdivision Ordinance, A motion was made by Shns Notment and seconded by Austin Anthony to approve the preliminary plat with rioted conditions. Motion carried 6-0. 20. Consideration of and action on the Final Plat of the BSA Addition, Lots I and 2, Block A, LCAD Property ID 18190 and 18177, located at 2340 E Cherry Street and 2331 Pine Bluff. Mack states the same comments and conditions apply to the final plat. A motion. was made by Clifton Fendley and seconded by Tylesha Ross -Mosley to approve the final plat with noted conditions. Motion carried 64 21, Consideration of and action on the Preliminary Plat of the Ellis Addition CB45,.[..ot 1, Block A, LOAD Property ID 14070 and 14071, located at 710-720 W Houston St. Mack states the applicant requests simultaneous approval of a preliminary and final plat. The reason for the platting is for the construction of a new residence, All required setbacks can be met. Staff recommends approval of the Preliminary and Final Plats, subject to the following conditions: 1. Graham Street shall be shown on the Preliminary and Final Plats pursuant to Chapter 9, Exhibit A, Section IV, (5) of the Subdivision Ordinance. A motion was made by Sims Norment and seconded by Austin Anthony to approve the preliminary plat with noted conditions. Motion carried 6-0. 22. Consideration of and action on the Final Plat of the Ellis Addition CB45, Lot 1, Block A, LCAD Property ID 14.070 and 14071, located at 710-720 W Houston St. Mack states the same comments and conditions apply to the final plat. A motionwas made by Tylesha Ross -Mosley and seconded by Francine Neeley to approve the final plat with noted conditions. Motion carried 6-0. 21 Consideration of and action on the Final Plat of the North Lamar ISD New Elementary School Addition, Lots I and 2, Block A, LCAD Property ID 125581, 59292, 59287 in the 3200 Block of N Main St. .Mack states that the applicant requests approval of the Final Plat. The Preliminary Plat was approved by the Planning & Zoning Commission on January 3, 2022. All conditions of the Preliminary Plat approval are being met through approval of the Final Plat and the site civil improvement plans. The reason for the platting is for the construction of a new elementary school and a collector street. Review of the final site civil construction drawing for the project are now underway and will be completed prior to Final Plat approval by the City Council. Staff recommends approval of the Final Plat, subject to the following conditions: 1. The City Engineer shall complete final review and approval of the site civil improvements prior to release of the Final Plat for recording pursuant to the Subdivision Ordinance 1.315 Section VIII; General Requirements Thoroughfare Plan; and Section IX Design of Improvements. 2. North Lamar Independent School District Shall enter into an Interlocal Government Agreement with the City of Paris regarding the collector street construction cost sharing prior to release of the Final Plat for recording pursuant to the Subdivision Ordinance 1315 Section X Participating Aid and Pro Rata Reimbursement Policy. 3. The name of the new collector street shall be approved by the City Council and added to the final plat prior to release of the Final Plat for recording pursuant to the Subdivision Ordinance 1315 Section V. Final Plat. A motion was made by Clifton Fendley and. seconded by Austin Anthony to approve the final plat with noted conditions. Motion carried 6-0. 24. Request items for future agendas. No request at this time. 25. Adjournment. There being no further business, the meeting was adjourned at 6:23 p.m. APPROVED THIS 2nd DAY OF MAY 2022 Chairperson Paris Visitors & Convention Council Board ITofmDirectors Meeting 8 West Plaza and zoom March 21, 2022 4:00 pm MembersITPresent: Chadlee Johnston, Russell Jackson, Cheri Bedford, Ryan Whitaker, Dustin Broadway, Lea Emerson, Cary Lott, Trevor Huie, Brad Hilliard, Bryan Hargis, Bud Mistry, Mark Pankaj, John Bratcher, Trey Glascock, Kell! McDonald, Brittney Keys and Tim Walsworth. Staff Present: Paul Allen, Becky Semple and Gina Crawford. Chadlee Johnston called the meeting to order at 4:00 pm. Minutes: A motion to approve February minutes was made by Mark Pankaj, seconded by Bradley Hilliard. Motion passed unanimously. Financials: Russell Jackson presented the February financials. A motion to approve was made by Trey Glascock, seconded by Tim Walsworth. Motion passed unanimously. Old Business: Paul Allen stated we will be having a 903 Sunset Series Concerts on June 23, July 7 and 211. There will be some non -hot money used to help pay forthese. Future business: July will be Bike in Paris Month, Wine Fest is April 91h and Steak Wars. Adiourn: Tim Walsworth made a motion to adjourn. Meeting adjourned at 4:10 p.m. Respectfully Submitted, Gina Crawford Love Civic Centeruarter Rpp.o -wwl�t quarter 2022 Date Attendees Event 1/8/2022 250 Birthday Party 1/11/2022 100 Pipeline Safety Meeting 1/13/2022 140 republican Party Meeting 1/15/2022 250 RRVDSS Gala 1/19/2022 35 Speednetworking 2/3/2022 50 Lifeline Screening 2/1/2022 50 Women's Conference 2/16/2022 15 Hoteliers Meeting 2/22/2022 125 republican Party Meeting 3/4/2022 250 Mardi Gras 3/5/2022 50 Harmon reception 3/10/2022 150 Wild Turkey Banquet 3/14/2022 50 Speed Networking 3/14/2022 100 TX Asphalt Meeting 3/26 &27 1500 Gun Show Love Civic Center Statement of Assets, Liabilities and Net Assets Modified Cash Basis March 31, 2022 ASSETS Love Civic Center Reserved for Construction Red River Credit CD 332 Liberty CD 59673 FF Money Market 37109 FBT CD 6704863 Total Current Assets Due From VCC Total Other Assets Total Assets LIAMLITIES AND NET ASSETS Current Liabilities Due to COC Due to VCC Payroll Liabilities Total Current Liabilities NET ASSETS Retained Earnings Net Income Total Net Assets Total Liabilities and Net Assets $ 212,846.46 361,500.00 100,353.09 32,804.01 111,662.77 140,899.37 960,065.70 2,923.45 2,923.45 $ 962 989.16 $ 186.65 19.15 1,184.39 1390.19 853,370.96 00 _ITITIT 961,598.96 $ 962989.15 0 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Budget to Actual, Year -to -Date Modified Cash Basis For the 6 Months Ended March 31, 2022 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 6 Months Ended 6 Months Ended Mar 31, 2022 Mar 31, 2022 Variance % of Budget Annual Budget Actual Budget REVENUE Motel Tax $ 203,324.53 $ 177,500.00 $ 25,824.53 114.W% $ 355,000.00 R.V. Hook Up 1,719.08 1,765.00 (45.92) 97.40% 7,500.00 Mise Income 0.00 0.00 0.00 0.00% 1,000.00 Rent 51,582.71 50,500.00 1,082.71 102.14% 85,000.00 Refunded Deposits (7,600.00) (7,600.00) 0.00 100.00% (10,000.00) Tower Lighting 100,00 100,00 0.00 100.00% 400.00 Bicycle Rentals 805.70 M� 770.00 35.70 104.64% 2,500.00 Total Revenue 249,932.02 223,035.00 26,897.02 112.06% 441,400.00 Gross Profit 241,1932.R2 223,035.00 26,897.02 112.06% 441,400.00 OPERATING EXPENSES Branding 0.00 0.00 0.00 0.00% 10,000.00 Bank Service Charge 46.65 252.00 (205.35) 18.51 % 500.00 Communications 2,777.63 3,000.00 (222.37) 92.59% 6,000.00 Office Expense 813.37 605.00 208.37 134.44% 1,500.00 Payroll Expenses 44,830.48 51,502.00 (6,671.52) 87.05% 103,000.00 Payroll Tax Expense 3,402.72 4,152.00 (749.28) 81.95% 8,300,00 Marketing / Advertising 198.00 200.00 (2.00) 99,00% 5,000.00 Audit 0.00 0.00 0.00 0.00% 3,000.00 Bookkeeping 3,421.99 3,498.00 (76.01) 97.83% 7,000.00 Electricity 13,367.88 19,998.00 (6,630.12) 66.85% 40,000.00 Water 2,730.79 2,502.00 228.79 109.14% 5,000.00 Gas 4,246.31 4,250.00 (3.69) 99.91 % 5,000.00 Trash Disposal 2,092.28 2,502.00 (409.72) 83.62% 5,000.00 Intown Auto Exp Allowance 725.00 1,500.00 (775.00) 48.33% 3,000.00 Small Equipment 635.00 635.00 0.00 100.00% 1,000.00 Chamber Management 25,000.00 25,000.00 0.00 100.00% 25,000.00 Eiffel Tower Lighting/Maint 0.00 0.00 0.00 0.00% 2;000.00 Building Maint./Spls/Equip 20,076.74 20,200.00 (123.26) 99.39% 99,000.00 Security 1,165.50 1,374.00 (208.50) 84.83% 2,756.00 Staff Ins./Retirement 2,904.33 4,402.00 (1,497.67) 65.98% 8,800.00 Building Insurance 1,583.33 1,500.00 83.33 105.56% 5,000.00 General Liability 3,419.50 3,700.00 (260.50) 92.42% 3,700.00 Workers Comp. Insurance 646.81 832.00 (185.19) 77.74% 1,400.00 Directors 8 Officers 1,559.67 2,000.00 (440.33) 77.98% 2,000.00 Long Term Disability 581.26 0.00 581.26 0.00% 0.00 Misc Expenses 785.71 785.00 0.71 100.09% 1,500.00 Ground Maintenance 5,817.90 4,248.00 1,569.90 136.96% 8,500.00 Bicycles 5 Related Expenses 52.72 50.00 2.72 105.44% 1,500.00 Capital Improvements 0.00 0.00 0.00 0.00%76,950.00, Total Operating Expenses 142,88 67 158,687.00 X15,805.43 90.04% 441,400.00 Operating Income (Loss) .... 107,050.45 64,348.00 42,702.45 _ 166.36% 0.00 OTHER INCOME Interest Income 1,177,55 174.00 1,003.55 676.75 % -ITITp ,,,,350.00 Total Other Income 174.00 _ 676.75% 350.00 Net Income (Loss)__108 mm 64522u00 43 706.00 167.74% .350.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Budget to Actual, Current Month and Prior Year Period Modified Cash Basis . For the I Month Ended March 31, 2022. and 2021 and 6 Months Ended March 31, 20V Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided I on Ended I Month Ended I Month Ended 6 Months Ended Mar 31, 2022 Mar 31, 2022 Mar 31® 2021 Mar 31® 2021 Actual Budget Actual Acu Revenue Motel Tax $ 0.00 $ 0.00 $ 0.00 $ 204x528.71 R.V. Hook Up 101.02 100,00 237.34 959.32 Misc income 0.00 0.00 0,00 400.00 Rent 8,903.62 9.000.00 220.05 18,560.15 Refunded Deposits (1,200.00) (1,200.00) (1,200.00) (4®910.00) Tower Lighting 0= 0.00 96.35 96.35 Bicycle Rentals . ............... - I0... 10.00 444.39 6Ck.59 Total Revenue 7,815.50 .... . 7910.00 201,871 .. 220239.12 . . . . Operating Expenses Bank ServIce Charge 9.33 42.00 22.46 66.43 Communications 229.22 500.00 100.28 3,798.60 Offilce Expense 75.30 75.00 86.36 650.97 PayrollExpenses 8,169.88 8,58100 7,571.06 48.470.73 payroll Tax Expense 615,69 602.00 491.69 3,643,91 Marketing I Advertising 198.00 200.00 0.00 790.34 Bookkeeping 476.40 583.00 557.00 3,073.68 Membership Dues/Sub 0.00 0.00 0.60 168.00 Eleaftity 2,406.38 3,333.00 1'981.19 11,551.72 Water 62.87 417.00 124.97 3,063.52 Gas 11,17226 1,200.00 1,108.08 3,527.99 Trash Disposal 256.04 417,00 490.98 2,953.24 Into wn Auto Exp Allowance 125.00 250.00 250.00 1,660.78 Small Equipment 600.00 600.00 0.00 0.00 Chamber Management 0.00 0.00 0.00 18,000.00 Eiffel Tower Lighting/Maint 0.00 0.00 0.00 35120 Building Maint./SplslEquip 8813097 900.00 2,972.05 35,96538 Security 565.75 229.00 975.15 1,326.90 Staff InsJRetirement 21714 733.DO 1,096®03 5,087.45 Building Insurance 1,583.33 1,500.00 0.00 0.00 General Liability 0.00 0.00 1,070.65 Workers Comp. -Insurance M00 0.00 0.00 621.31 Directors & Officers 0.00 0.00 0.00 1.559A4 Misr; Expenses 46Z5 50.00 0.00 331.44 Ground Maintenance 618.33 708.00 618.33 3,530.83 Bicycles & Related Expenses 0000 0.00 0.00 0.34 Total Operating Expenses 18,336.94 10,451.63 151,265.05 .21,012.00 Operating Income (Loss) _21.® 2.00 18,8q3 0) 68,974.07 Other Income Interest Income 920.88 29.00 15.74 385.56 Total Other Income 920AS 29.00 15.74 386.66 Net Income (Loss) !-A49NRL5J6 !---M-21-300D -7-6) 1__ 69,369.63 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Statement of Assets, Liabilities and Net Assets Modified Cash Basis February 28, 2022 ASSETS Love Civic Center $ 123,249.35 Reserved for Construction 361,500.00 Red River Credit CD 332 100,353.09 Liberty CD 59873 32,804.01 FF Money Market 37109 111,662.77 Farmers Bank CD _ 140,000.00 Total Current Assets 869 669.22 Due from Others 74.00 Due From VCC 102,386.fi0 Total Other Assets 102,460.60 Total Assets $972,029.82 LIABILITIES AND NET ASSETS Current Liabilities Due to COC $ 80.61 Payroll Liabilities 749.69 Total Current Liabilities 830.30 NET ASSETS Retained Earnings 853,370.96 Net Income 117,828.56 Total Net Assets 971,199.52 Total Liabilities and Net Assets $ 97 2029.82 Financial statement preparation service provided by Malnory. McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Budget to Actual, Year -to -Date Modified Cash Basis For the 5 Months Ended February 28, 2022 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 5 Months Ended 5 Months Ended Feb. 28, 2022 Feb 28, 2022 Variance % of Budget Annual Budget Actual Budget REVENUE Motel Tax $ 203,324.53 $ 177,500.00 $ 25,824.53 114.55% $ 355,000.00 R.V. Hook Up 1,618.06 1,665.00 (46.94) 97.18% 7,500.00 Misc Income 0.00 0.00 0.00 0.00% 1,000.00 Rent 42,679.09 41,500.00 1,179.09 102.84% 85,000.00 Refunded Deposits (6,400.00) (6,400.00) 0.00 100.00% (2,800.00) Tower Lighting 100.00 100.00 0.00 100.00% 400.00 Bicycle Rentals Cy 4. 760.00 34.84 104.58% _ 2,500.00 Total Revenue 242,,116.52 216,125.00 26,991.52 112.65% 448,606.00 Gross Profit 242,116.52 __.?16.126.00 ___.16,991-62 112.55% 448,600.00 OPERATING EXPENSES Branding 0.00 0.00 0.00 0.00% 10,000.00 Bank Service Charge 37.32 210.00 (172.68) 17.77% 500.00 Communications 2,548.41 2,500.00 48.41 101.94% 6,000.00 Office Expense 738.07 530.00 208.07 139.26% 1,500.00 Payroll Expenses 36,660.60 42,919.00 (6,258.40) 85.42% 103,000.00 Payroll Tax Expense 2,787.03 3,460.00 (672.97) 80.55% 8,300.00 Marketing / Advertising 0.00 D.00 0.00 0.00% 5,000.00 Audit 0.00 0.00 0.00 0.00% 3,000.00 Bookkeeping 2,945.59 2,915.00 30.59 101.05% 7,000.00 Electricity 10,961.50 16,665.00 (5,703.50) 65.78% 40,000.00 Water 2,667.92 2,085.00 582.92 127.96% 5,000.00 Gas 3,074.05 3,050.00 24.05 100.79% 5,000:00 Trash Disposal 1,836.24 2,085.00 (248.76) 88.07% 5,000.00 Intown Auto Exp Allowance 600.00 1,250.00 (650.00) 48.00% 3,000.00 Small Equipment 35.00 35.00 0.00 100.00% 1,000.00 Chamber Management 25,00000 25,000.00 0.00 100.00% 25,000.00 Eiffel Tower Lighting/Maint 0.00 0.00 0.00 0.00% 2,000.00 Building Maint./Spls/Equip 19,187.77 19,300.00 (112.23) 99.42% 99,000.00 Security 579.75 1,145.00 (565.25) 50.63% 2,750.00 Staff Ins./Reurement 2,686.49 3,669.00 (982.51) 73.22% 8,800.00 Building Insurance . 0.00 0.00 0.00 0.00% 5,000.00 General Liability 3,419.50 3,700.00 (280.50) 92.42% 3,700.00 Workers Comp. Insurance 646.81 832.00 (185.19) 77.74% 1,400.00 Directors & Officers 1,559.67 2,000.00 (440.33) 77.98% 2,000.00 Long Term Disability 581.26 0.00 581.26 0.00% 0.00 Misc Expenses 739.36 735.00 4.36 100,59% 1,500.00 Ground Maintenance 5,199.57 3,540.00 1,659.57 146.88% 8,500.00 Bicycles & Related Expenses 52.72 50.00 2.72 105.44% 1,500.00 Capital Improvements 0.00„ 0.00 0.00 0.00% 76,950.00 Total Operating Expenses 1.24,644.63 _ 137,676.00 13 130.37 .46% 447x400.00 Operating Income (Loss) 117,5711-89 77450.00 40121.89 151.80% 7200.00 OTHER INCOME Interest Income 256.67 145.00 111.67 177.01 % 350.00 IT350.00 Total Other Income .. 256.67 145.00 111.67177.01 % Net Income (Loss) ,117,828.56 77, 595.00 �56 __. 40,233. 151185 % 7,550.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Budget to Actual, Current Month and Prior Year Period Modified Cash Basis For the 1 Month Ended February 28, 2022 and 2021 and 5 Months Ended. February 28, 2021 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 1 Month Ended 1 Month Ended 1 Month Ended 5 Months Ended Feb 28, 2022 Feb 28, 2022 Feb 28, 2021 Feb 28, 2021 Actual Budget Actual Acutal Revenue Motel Tax $ 96,972.63 $ 88,750.00 $ 95,788.30 $ 204,528.71 R.V. Hook Up 101.02 100.00 0.00 721.98 Misc Income 0.00 0.00 0.00 400.00 Rent 8,947.92 9,000.00 (1,300.00) 18,340.10 Refunded Deposits (1,400.00) (1,400.00) (2,200.00) (3,710.00) Bicycle Rentals._, 0.00 0.00 144.49 ._.. 160.20 Total Revenue 104,621.57 96,450.00 92,432.79 .220,440.99 Operating Expenses Bank Service Charge 3.74 42.00 7.46 43.97 Communications 442.58 500.00 1,397.60 3,698.32 Office Expense 9.99 10.00 0.00 564.61 Payroll Expenses 3,778.87 8,583.00 7,484.40 40,899.67 Payroll Tax Expense 263.77 692.00 583.57 3,146.22 Marketing I Advertising 0.00 0.00 66.00 790.34 Bookkeeping _ 867.50 583.00 575.00 2,516.68 Membership Dues/Sub 0.00 0.00 0.00 168.00 Electricity 2,316.10 3,333.00 1,794.71 9,570.53 Water 210.14 417.00 59.69 2,938.55 Gas 1,381.88 1,300.00 772.50 2,419.91 Trash Disposal 256.04 417.00 989.32 2,462.26 Intown Auto Exp Allowance 0.00 250.00 250.00 11410.78 Chamber Management 0.00 0.00 0.00 18,000.00 Eiffel Tower Lighting/Maint 0.00 0.00 351.20 351.20 Building Maint./Spis/Equip 5,220.45 5,200.00 7,119.46 32,993.33 Security 58.95 229.00 58.95 351.75 Staff Ins./Retirement 635.81 733.00 563.94 3,991.42 General Liability 0.00 0.00 0.00 1,070.65 Workers Comp. Insurance 0.00 0.00 0.00 621.31 Directors & Officers 0.00 0.00 0.00 1,559.64 Long Term Disability 113.84 0.00 0.00 0.00 Misc Expenses 141.52 150.00 54.99 331.44 Ground Maintenance 618.33 708.00 582.50 2,912.50 Bicycles & Related Expenses ..................... 0.00 ��................... 00.00 _...................-....� 0.34 ......... �.. 0.34 Total Operating Expenses ___161379.61 23,147.00 22,711.63 132„813.42 Operating Income (Loss) ____881302.06 7303.00 69,727.15 87627.57 Other Income Interest Income 19.04 29.00 14.21 369.82 Total Other Income 1.9.04 29.00 14.21 369.82 Net Income (Loss) .2. L_" BB 321, 10 00 L__,_73 33 . L $ 69.735.37 5 X87 997.39 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Statement of Assets, Liabilities and Net Assets Modified Cash Basis January 31, 2022 ASSETS Love Civic Center $ 134,066.07 Reserved for Construction 361,600.00 Red River Credit CD 332 100,353.09 Liberty CD 59873 32,804.01 FF Money Market 37109 111,662.77 Farmers Bank CD 140,000.00 Total Current Assets 880,385.94 Due From VCC Total Other Assets 4,144.29 Total Assets $ 884.530.23 LIA131LITIES AND NET ASSETS Current Liabilities Due to COC $ 112.65 Payroll Liabilities _ 1,502.16 Total Current Liabilities — 1,614.81 NET ASSETS Retained Earnings 853,370.96 Net Income ... 29,544.46 Total Net Assets 88291542 Total Liabilities and Net Assets $ 884,530.23 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided REVENUE Motel Tax R.V. Hook Up Misc Income Rent Refunded Deposits Tower Lighting Bicycle Rentals Total Revenue Gross Profit OPERATING EXPENSES Branding Bank Service Charge Communications Office Expense Payroll Expenses Payroll Tax Expense Marketing / Advertising Audit Bookkeeping Electricity Water Gas Trash Disposal Intown Auto Exp Allowance Small Equipment Chamber Management Eiffel Tower Lighting/Maint Building Maint./Spas/Equip Security Staff Ins./Retirement Building Insurance General Liability Workers Comp. Insurance Directors & Officers Long Term Disability Misc Expenses Ground Maintenance Bicycles & Related Expenses Capital Improvements Total Operating Expenses Operating Income (Loss) Love Civic Center Budget to Actual, Year -to -Date Modified Cash Basis For the 4 Months Ended January 31, 2022 4.Months Ended 4 Months Ended Jan 31, 2022 Jan 31, 2022 Variance Actual Budget % of Budget Annual Budget $ 106,351.90 $ 88,750.00 $ 17,601.90 0.00% $ 355,000.00 1,517.04 1,565.00 (47.96) 96.94% 7,500.00 0.00 0.00 0.00 0.00 % 1,000.00 33,731.17 32,500.00 1,231.17 103.79% 85,000.00 (5,000.00) (5,000.00) 0.00 100.00% (10,000.00) 100.00 100.00 0.00 100.00% 400.00 794.84 760.00 34.84 104.58% 2,500.00 137,494.95 118 fi75.00 18,819.95 115.86 % 441„,400.00 137 494.95 J 118,675.00 18,819.95 116.86% w 441,400.00 0.00 0.00 0.00 0.00% 10,000.00 33.58 168.00 (134.42) 19.99% 500.00 2,105.83 2,000.00 105.83 105.29% 6,000.00 728.08 520.00 208.08 140.02% 1,500.00 32,881.73 34,336.00 (1,454.27) 95.76% 103,000.00 2,523.26 2,768.00 (244.74) 91.16% 8,300.00 0.00 0.00 0.00 0.00% 5,000.00 0.00 0.00 0.00 0.00% 3,000.00 2,078.09 2,332.00 (253.91) 89.11 % 7,000.00 8,645.40 13,332.00 (4,686.60) 64.85% 40,000.00 2,457.78 1,668.00 789.78 147.35% 5,000.00 1,692.17 1,750.00 (57.83) 96.70% 5,000.00 1,580.20 1,668.00 (87.80) 94.74% 5,000.00 600.00 1,000.00 (400.00) 60 00 % 3,000.00 35.00 35.00 0.00 100.00% 1,000.00 25,000.00 25,000.00 0.00 100.00% 25,000.00 0.00 0.00 0.00 0.00% 2,000.00 13,967.32 14,100.00 (132.68) 99.06% 99,000.00 520.80 916.00 (395.20) 56.86% 2,750.00 2,013.68 2,936.00 (922.32) 68.59% 8,800.00 0.00 0.00 0.00 0.00% 5,000.00 3,419.50 3,700.00 (280.50) 92.42% 3,700.00 646.81 832.00 (185.19) 77.74% 1,400.00 1,559.67 21000.00 (440.33) 0.00% 2,000.00 467.42 0.00 467.42 0.00% 0.00 597.84 585.00 12.84 102.19% 1,500.00 4,581.24 2,832.00 1,749.24 161.77% 8,500.00 52.72 50.00 2.72 0.00% 1,500.00 0.00 0.00 0_ 0 0 0 0.00 % 76 950.00 108 188 12 114,528.00 '6 339.88 94.46% 447 00.00 29 306.83 2 4,147.00 _ 25,159.83 706.70% 0.00 OTHER INCOME Interest Income________ 237.63 _.. 116.00 121.63 204.85% M 350.00 Total Other Income �_, 204.85 % 350.00 287 83 116.00 1.21.63 Net Income (Loss) 29,544.46 4,263.00 25 287.46 693.04% 350.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Love Civic Center Budget to Actual, Current Month and Prior Year Period Modified Cash Basis For the 1 Month Ended January 31, 2022 and 2021 and 4 Months Ended January 31, 2021 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 1 Month Ended 1 Month Ended 1 Month Ended 4 Months Ended Jan 31, 2022 Jan 31, 2022 Jan 31, 2021 Jan 31, 2021 Actual Budget Actual Acutal Revenue Motel Tax, $ 0.00 $ 0.00 $ 0.00 $ 108,740.41 R.V. Hook Up 0.00 0.00 0.00 721.98 Misc Income 0.00 0.00 0.00 400.00 Rent 3,500.00 3,500.00 9,688.29 19,640.10 Refunded Deposits (200.00) (200.00) 0.00 (1,510.00) Bicycle Rentals 1„0.62 10.00 0.00 15.71 Total Revenue 3,310.62 331000 9,688.29 128,008.20 Operating Expenses Bank Service Charge 9.33 42.00 7.46 36.51 Communications. 500.00 500.00 664.57 2,300.72 Office Expense 109.23 100.00 0.00 564.61 Payroll Expenses 9,457.09 8,583.00 7,484.78 33,415.27 Payroll Tax Expense 730.20 692.00 587.513 2,562.65 Marketing /Advertising 0.00 0.00 0.00 724.34 Bookkeeping 372.09 583.00 4313.34 1,941.68 Membership Dues/Sub 0.00 0.00 0.00 168.00 Electricity 2,578.22 3,333.00 1,776.93 7,775.82 Water 248.18 417.00 517.66 2,878.86 Gas 991.16 1,000.00 906.84 1,647.41 Trash Disposal 556.04 417.00 0.00 1,472.94 1 ntown Auto Exp Allowance 100.00 250.00 250.00 1,160.78 Chamber Management 0.00 0.00 0.00 18,000.00 Building Maint./Spls/Egulp 6,066.82 6,100.00 554.62 25,873.87 Security 343.95 229.00 115.95 292.80 Staff Ins./Retirement 448.33 733.00 671.48 3,427.48 General Liability 0.00 0.00 0.00 1,070.65 Workers Comp. Insurance 0.00 0.00 0.00 621.31 Directors & Officers 1,559.67 2,000.00 1,559.64 1,559.64 Long Term Disability 113.84 0.00 0.00 0.00 Misc Expenses 57.43 60.00 30.53 276.45 Ground Maintenance 618.33 708.00 582.50 2,330.00 Bicycles & Related Expenses 51.94 50.00 0.00 0.00 Total Operating Expenses 24,911.85 25,797.00 16,148.88 110,101.79 Operating Income (Loss) __1211.601.23 .487.00 ____6 460.59 _77,906.41 Other Income Interest Income21.92 . -... 29.00 ,...,...._...__ .....� 16.34 355.61 Total Other Income............ 21.92 29.00 1.6.34 3_55.61 Net lncomev(Loss)$�21 579.31` , X22,458 0 $444.25 $ x 18�A2 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided VCC Quarterly Reports for January, February, and March, 2022 January ASA Indoor Archery Tournament January 28-30 45 room nights Tower City Comedy Festival January 26 — 30 60 room nights February No VCC Funded Events March No VCC Funded Events Budgeted Item Funded $2250.00 Paris Visitor & Convention Council Statement of Assets, Liabilities and Net Assets Modified Cash Basis March 31, 2022 ASSETS CURRENT ASSETS HOT Checking Not HOT Checking Liberty MM 5269 LNB CD 25490 Total Current Assets OTHER ASSETS Returned Checks Receivable Due From LCC Due From COC Total Other Assets Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES Due to COC Due to LCC Payroll Liabilities Sales Tax Payable Total Current Liabilities NET ASSETS Retained Earnings Net Income Total Net Assets Total Liabilities and Net Assets $ 108,335.96 235,071.16 210,923.43 51,228.63 605 559.18 65.00 19.15 150.00 234.15 $ 605 793.33 $ 2,353.65 2,923.45 818.73 77.36 6„173.19 540,144.34 59,475.80 �� 599,620.14 $ µNam 605 793.H Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided a Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 6 Months Ended March 31, 2022 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 6 Months Ended 6.Months Ended Mar 31, 2022 Mar 31, 2022 Variance % of Budget Annual Budget Actual Budget Revenue Hotel / Motel Occupancy Tax $ 406,649.05 ,$ 355,000.00 $ 51,649.05 114.55% $ 710,000.00 Hot Money Interest 1,858.65 .125.02 _1,733.63 __._j486.68 % 250.00 Total Revenue 408,507.70 355126.02 63,382.68 115.03,% 710,250.00 Operating Expenses Postage 175.35 179.00 (3.65) 97.96% 11000.00 Misc Expenses 375.95 375.00 0.95 100.25% 1,500.00 General Liability 0.00 0.00 0.00 0.00% 1,650.00 D & O Insurance 1,559.67 1,700.00 (140.33) 91.75% 1,700.00 Long Term Disability 333.17 0.00 333.17 0.00% 0.00 Worker's Comp 646.82 645.00 1.82 100.28% 1,000.00 Staff InsJRetirement 3,265.16 4,374.00 (1,108.84) 74.65% 8,750.00 Meetings & Hosting 0.00 0.00 0.00 0.00% 200.00 Chamber Management 25,000.00 25,000.00 0.00 100.00% 50,000.00 Out of Town Travel 164.52 200.00 (35.48) 82.26% 2,000.00 Intown Auto/Exp Allowance 1,100.00 1,500.00 (400.00) 73.33% 3,000.00 Membership Dues/Sub. 1,100.00 850.00 250:00 129.41 % 5,500.00 Audit 0.00 0.00 0.00 0.00% 3,000.00 Bookkeeping 3,421.98 3,498.00 (76.02) 97.83% 7,000.00 Payroll Expenses 41,337.99 42,264.00 (926.01) 97.81 % 84,525.00 Payroll Tax Expense 3,393.56 3,324.00 69.56 102.09% 6,650.00 Office Expense 1,392.19 1,500.00 (107.81) - 92.81 % 3,000.00 Communications 2,357.15 1,752.00 605.15 134.64% 3,500.00 Historical Museum 3,500.00 3,500.00 0.00 100.00% 3,500.00 Bank Service Charge 50.37 252.00 (201.63) 19.99% 500.00 Motel Tax Transferred to LCC 203,324.53 177,500.00 25,824.53 114.55% 355,000.00 Marketing /Advertising 32,323.59 32,500.00 (176.41) 99.46% 71,000.00 Chaparral Square Dancers 213.35 250.00 (36.65) 85.34% 2,100.00 Tour de Paris Exp 588.00 800.00 (12.00) 98.00% 32,000.00 ASA 339.00 340.00 (1.00) 99.71 % 26,500.00 ASA Indoor Archery Event Exp 1,825.45 1,850.00 (24.55) 98.67% 2,300.00 SDBA Boat Races 0.00 0.00 0.00 0.00% 7,000.00 TMBRA Bicycle Race Exp 1,408.63 1,400.00 8.63 100.62% 6,500.00 Pump Track Event 0.00 0.00 0.00 0.00% 5,000.00 Branding Discovery 1,583.34 1,600.00 (16.66) 98.96% 10,000.00 Events Promotion / Funding 12,107.33 11,500.00 607,33 105.28% 46,000.00 Arts Allocation 7,000.00 7,000.00 0.00 100.00% 7,000.00 Rent to COC 6,000.00 6,000.00 0.00 100-00% ............. .12,000.00 Total Operating Expenses 355,887.10 331,453.00 24,434.10 107.37% 770,375.00 Operating Income (Loss) 52,620.50 . 23,672.0228,948.58„ 222.29% NOT -HOT INCOME Misc Income 0.25 498.00 (497.75) 0.05% 1,000.00 Trolley/Historical 3,100.00 1,600.00 1,500.00 193.75% 5,000.00 Tour de Paris Income 1,000.00 1,000.00 0.00 100.00% 50,000.00 ASA Indoor Archery Event 3,390.00 2,000.00 1,390.00 169.50% 2,000.00 TMBRA Bicycle Race 2,000.00 2,000.00 0.00 100.00% 7,000.00 Red Bull Qualifier 3,500.00 0.00 3,500.00 0.00% 0.00 Pump Track Event Income 0.00 0.00 0.00 0.00% 5,000.00 Souvenir Sales 1,360.13 1•,295.00 65.13 105.03% 6,000.00 Interest Income .�...... 15.32 125.02 � (9.70) � 92.24 % 250.00, ...�� mmm Total Not -Not Income 14,465.70 8,518.02 5 947.68 69.82% Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided NOT -HOT EXPENSES Credit Card Fees Trolley Driver Trolley Expenses Trolley Insurance Souvenir Exp Total Not -Hot Expenses Net Income (Loss) Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 6 Months Ended March 31, 2022 1,327.42 1,002.00 325.42 923.00 595.00 328.00 2,355.21 2,425.00 (69.79) 1,481.14 1,050.00 431.14 1,523.73 1200.00 323.73 7,610.50 6,272.00 1,338.50 $ 59,475.80 $ 25,918.04 $ 33,557.76 132.48% 2,000.00 155.13% 1,800.00 97.12% 5,000.00 141.06% 2,100.00 126.98 % . 5,000.00 121.34 % 15,900.00 229.48% 225.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Budget to Actual, Current Month and Prior Year Period Modified Cash Basis For 1 Month Ended March 31, 2022 and 2021 and 6 Months Ended March 31, 2021 1 Month Ended 1 Month Ended 1 Month Ended 6 Months Ended Mar 31, 2022 Mar 31, 2022 Mar 31, 2021 Mar 31, 2021 Actual Budget Actual Actual REVENUE Hotel / Motel Occupancy Tax $ 0.00 $ 0.00 $ 0.00 $ 409,057.43 Hot Money Interest 29.16 20.83041.16 _1012.03 ... 1 ...� �_, _ Total Revenue 29.16 20.83 1,012.03 410,098.59 OPERATING EXPENSES Postage 22.19 25.00 14.85 78.71 Misc Expenses 36.76 40.00 0.00 1,210.42 General Liability 0.00 0.00 0.00 1,070.65 D & O Insurance 0.00 0.00 0.00 1,559.68 Worker's Camp 0.00 0.00 0.00 621.30 Staff Ins./Retirement 368.15 729.00 1,091.45 5,465.42 Meetings & Hosting 0.00 0.00 0.00 51.49 Chamber Management 0.00 0.00 0.00 20,000.00 Intown Auto/Exp Allowance 200.00 250.00 200.00 1,200.00 Membership Dues/Sub. 1,000.00 750.00 0.00 100.00 Bookkeeping 476.40 583.00 557.00 3,073.66 Payroll Expenses 6,994.34 7,044.00 6,790.76 41,657.62 ABBS Wage Reimburement 0.00 0.00 0.00 (1,752.35) Payroll Tax Expense 564.46 554.00 590.86 3,345.85 Office Expense 320.62 250.00 302.21 1,731.12 Communications 142.68 292.00 53.09 2,195.07 Historical Museum 0.00 0.00 3,500.00 3,500.00 Bank Service Charge 7.46 42.00 37.46 254.07 Motel Tax Transferred to LCC 0.00 0.00 0.00 204,528.71 Marketing /Advertising 5,545.59 5,600.00 2,085.85 19,795.04 Tour de Paris Exp 0.00 0.00 0.00 9,570.31 ASA 339.00 340.00 0.00 624.94 ASA Indoor Archery Event Exp 0.00 0.00 0.00 318.00 TMBRA Bicycle Race Exp 0.00 0.00 0.00 5,500.00 Red Bull Qualifier Exp 0.00 0.00 2,699.05 2,741.20 Branding Discovery 1,583.34 1,600.00 0.00 0.00 Events Promotion / Funding 2,950.00 3,000.00 2,337.50 6,347.50 Arts Allocation 0.00 0.00 0.00 7,000.00 Baseball Field Lighting 0.00 0.00 0.00 11,855.86 Rent to COC 1,000.00 1,000.00 1,000.00 6,000.00 Total Operating Expenses 21,550.99 22,099.00 21,260.08 , 359,644.27 Operating Income (Loss)21521 83 22 078 20,248.05 50,454.32 NOT -HOT INCOME Misc Income 0.00 83.00 0.00 10.69 Trolley / Historical 250.00 250.00 0.00 1,700.00 Tour de Paris Income 1,000.00 1,000.00 95.00 18,417.78 ASA Indoor Archery Event 250.00 0.00 0.00 0.00 Red Bull Qualifier 3,500.00 0.00 750.00 17,250.00 Souvenir Sales 572.37 600.00 75.83 867.74 Interest Income 20.01 .�- 20.83 14.01 75.75 Total Other Income IT 5,592.38 1,953.85 M 934.84 38,321.96 NOT -HOT EXPENSES Credit Card Fees 137.95 167.00 322.84 1,249.96 Trolley Driver 236.00 250.00 0.00 357.00 Trolley Expenses 275.36 300.00 0.00 2,346.89 Trolley Insurance 189.41 175.00 194.32 1,170.08 Souvenir Exp 909.50 900.00 0.00 132.00 Misc NH Expense 0.00 0.00 0.00 2 519.89, Total Not -Hot Expenses ____1j48.22 � 1792.00 517.16 7,775 82 Net Income (Loss) $17,677 67) $ (21,916.34) $ (19„830.37 $ 81,000.46 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Statement of Assets, Liabilities and Net Assets Modified Cash Basis February 28, 2022 ASSETS CURRENT ASSETS HOT Checking Not HOT Checking Liberty MM 5269 LNB CD 25490 Total Current Assets OTHER ASSETS Returned Checks Receivable Due From Hot Checking Total Other Assets Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES Due to COC Due to LCC Due to Not Hot Checking Due to ABBS Payroll Liabilities Sales Tax Payable Total Current Liabilities NET ASSETS Retained Earnings Net Income Total Net Assets Total Liabilities and Net Assets $ 229,742.35 231,146.26 210,923.43 51,209..06 723,021.10 65.00 633.12 698.12 $ 723,719.22 $ 950.00 102,386.60 633.12 1,750.00 673.29 28.40 106,421.41 540,144.34 77,153.47 617,297.81 $ 723,719.22 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 5 Months Ended February 28, 2022 Financial statement preparation service provided by Mainory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided 5 Months Ended 5 Months Ended Feb 28, 2022 Feb 28, 2022 Variance °% of Budget Annual Budget Actual Budget Revenue Hotel / Motel Occupancy Tax $ 406,649.05 $ 355,000.00 $ 51,649.05 114.55% $ 710,000.00 Hot Money Interest 1,829.49 _......_ 104.1$ 1,725.30 1,755.92% 250.00 Total Revenue ._. 408,478.54 355,104.19 53,374.35 115.03% 710,250.00 Operating Expenses Postage 153.16 154.00 (0.84) 99,45% 1,000.00 Misc Expenses 339.19 335.00 4.19 101.25% 1,500.00 General Liability 0.00 0.00 0.00 0.00% 1,650.00 D & O Insurance 1,559.67 1,700.00 (140.33) 91.75% 1,700.00 Long Term Disability 333.17 0.00 333.17 0.00% 0.00 Worker's Camp 645.62 645.00 1.82 100.28% 1,000.00 Staff Ins./Retirement 2,897.01 3,645.00 (747,99) 79.48% 8,750.00 Meetings & Hosting 0.00 0.00 0.00 0.00% 200.00 Chamber Management 25,000.00 25,000.00 0.00 100.00% 50,000.00 Out of Town Travel 164.52 20D.00 (35.48) 82.26% 2,000.OD Intown Auto/Exp Allowance 900.00 1,250.00 (350.00) 72.00% 3,000.00 Membership Dues/Sub. 100.00 100.00 0.00 100,00% 5,500.00 Audit 0.00 0.00 0.00 0.00% 3,000.00 Bookkeeping 2,945.58 2,915.00 30.58 101.05% 7,000.00 Payroll Expenses 34,343.65 35,220.00 (876.35) 97.51 % 84,525.00 Payroll Tax Expense 2,829.10 2,770.00 59.10 102.13% 6,650.00 Office Expense 1,071.57 1,250.00 (178.43) 85.73% 3,000.00 Communications 2,214.47 1,460.00 754.47 151.68% 3,500.00 Historical Museum 3,500.00 3,500.00 0.00 100.00% 3,500.00 Bank Service Charge 42.91 210.00 (157.09) 20,43% 500.00 Motel Tax Transferred to LCC 203,324.53 177,500.00 25,824.53 114.55% 355,000.00 Marketing / Advertising 26,778.00 26,900.00 (122.00) 99.55% 71,000.00 Chaparral Square Dancers 213.35 250.00 (36.65) 85.34% 2,100.00 Tour de Paris Exp 588.00 600.00 (12.00) 98.00% 32,000.00 ASA 0.00 0.00 0.00 0.00% 26,500.00 ASA Indoor Archery Event Exp 1,825,45 1,850.00 (24,55) 98.67% 2,300.00 SDBA Boat Races 0,00 0.00 0.00 0.00% 7,000.00 TMBRA Bicycle Race Exp 1,408.63 1,400.00 8.63 100.62% 61500.00 Pump Track Event 0,00 0.00 0.00 0.00% 5,000.00 Branding Discovery 0,00 0.00 0.00 0.00% 10,000.00 Events Promotion / Funding 9,157.33 8,500.00 657.33 107,73% 46,000.00 Arts Allocation 7,000.00 7,000.00 0.00 100.00% 7,000.00 Rent to COC 5,000.00 5,00D.00 0.00 100.00% --.__L2,000.00 Total Operating Expenses 334 336,11 309,354.00 24,982.19 108.0,8% 770,375.00 Operating Income(Loss) 74,142,43 45750. ,392._2_4_ 162.06% _25.00 NOT -HOT INCOME Misc Income 0.25 415.00 (414.75) 0.06% 1,000.00 Trolley Historical 2,850.00 1,350.00 1,500.00 211.11% 5,000.00 Tour de Paris Income 0.00 0.00 0.00 0.00% 50,000.00 ASA Indoor Archery Event 3,140.00 2,000.00 1,140.00 157.00% 2,000.00 TMBRA Bicycle Race 2,000.00 2,000.00 0.00 100.00% 7,000.00 Pump Track Event Income 0.00 0.00 0.00 0.00% 5,000.00 Souvenir Sales ..787.76 695.00 92.76 113.35% 61000.00 Interest Income 95.31 104.198) 91.48% _ 250.00 Total Not -Hot Income 8,873.32 6,564.19 2,309.13 135.18% 75,250.00 Financial statement preparation service provided by Mainory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 5 Months Ended February 28, 2022 NOT-HOT EXPENSES Credit Card Fees 1,189.47 835.00 354.47 142.45% 2,000.00 Trolley Driver 687.00 345.00 342.00 199.13% 1,800.00 Trolley Expenses 2,079.85 2,125.00 (45.15) 97.88% 5,000.00 Trolley Insurance 1,291.73 875.00 416.73 147.63% 2,100.00 Souvenir Exp 614.23 300.00 _ _ 314.23 204.74% 500000 Total Not-Hot Expenses 5,862.28 4,480.00 130.86% 16,900.00 Net Income (Loss) L,_, 77,153 47 $ w W„ M 47834.38S 29 3tl 19.09 161.29% 225.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Budget to Actual, Current Month and Prior Year Period Modified Cash Basis For 1 Month Ended February 28, 2022 and 2021 and 5 Months Ended February 28, 2021. REVENUE Hotel / Motel Occupancy Tax Hot Money' Interest Total Revenue OPERATING EXPENSES Postage Misc Expenses General Liability D 8, O Insurance Workers Comp Staff Ins./Retirement Meetings & Hosting Chamber Management Intown Auto/Exp Allowance Membership Dues/Sub. Bookkeeping Payroll Expenses ABBS Wage Reimburement Payroll Tax Expense Office Expense Communications Bank Service Charge Motel Tax Transferred to LCC Marketing / Advertising Tour de Paris Exp ASA ASA Indoor Archery Event Exp TMBRA Bicycle Race Exp Red Bull Qualifier Exp Events Promotion / Funding Arts Allocation Baseball Field Lighting Rent to COC Total Operating Expenses Operating Income (Loss) NOT -HOT INCOME Misc Income Trolley / Historical Tour de Paris Income ASA Indoor Archery Event Red Bull Qualifier Souvenir Sales Interest Income Total Other Income NOT -HOT EXPENSES Credit Card Fees Trolley Driver Trolley Expenses Trolley Insurance Souvenir Exp Misc NH Expense Total Not -Hot Expenses Net Income (Loss) 1 Month Ended 1 Month Ended 1 Month Ended 5 Months Ended Feb 28, 2022 Feb 28, 2022 Feb 28, 2021 Feb 28, 2021 Actual Budget Actual Actual $ 193,945.26 $ 177,500.00 $ 191,576.60 $ 409,057.43 4.08 20.83 9.05 _ 29.13 193 948.34 1,77,520.63 191 585.65 409,086.56 27.77 30.00 6.13 63.86 0.00 0.00 57.07 1,210.42 0.00 0.00 0.00 1,070.65 0.00 0.00 0.00 1,559.68 0.00 0.00 0.00 621.30 673.96 729.00 550.03 4,373.97 0.00 0.00 0.00 51.49 12,500.00 12,500.00 10,000.00 20,000.00 200.00 250.00 200.00 1,000.00 0.00 0.00 0.00 100.00 867.50 583.00 575.00 2,516.66 6,589.94 7,044.00 6,398.12 34,666.86 0.00 0.00 0.00 (1,752.35) 572.16 554.00 538.75 2,754.99 232.92 250.00 386.41 1,428.91 425.26 292.00 707.90 2,141.98 7.46 42.00 37.46 216.61 96,972.63 88,750.00 95,788.30 204,528.71 4,317..67 4,300.00 3,243.46 17,709.19 0.00 0.00 0.00 9,570.31 0.00 0.00 0.00 624.94 1,525.45 1.550.00 0.00 318.00 0.00 0.00 5,500.00 5,500.00 0.00 0.00 42.15 42.15 2,025.00 2,000.00 0.00 4,010.00 0.00 Or00 0.00 7,000.00 0.00 0.00 0.00 11,855.86 1000.00 1,000.00 1.000.00 5,000.00 7,937.72 874.00 125,030.78 338,384.19 66,011.62 67,646.83, 66554.87 70,7.02.37 0.00 83.00 0.00 10.69 250.00 250.00 0.00 1,700.00 0.00 0.00 360.00 18,322.78 250.00 250.00 0.00 0.00 0.00 0.00 16,500.00 16,500.00 179:08 200.00 149:34 791.91 �11.8.12 20.83 �.�. . _........ 11.62 ._... _ 61.74 697.20 803.83 17,040.96 37L387.12 297.10 167.00 112.32 927.12 0.00 0.00 0.00 357.00 1,952.00 2,000.00 0.00 2,346.89 209.41 175.00 194.32 975.76 262.42 300.00 0.00 132.00 0.00 0.00 0.000.. 2,619.89 2,720.93 2,642.00 306.64 7,258.66 $__j3,987.89 $ 55,808.66 $ 83,289.19 $ 100,830.83 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the -AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Statement of Assets, Liabilities and Net Assets Modified Cash Basis January 31, 2022 ASSETS CURRENT ASSETS HOT Checking Not HOT Checking Liberty MM 5269 LNB CD 25490 Total Current Assets OTHER ASSETS Returned Checks Receivable Total Other Assets Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES Due to COC Due to LCC Due to ABBS Payroll Liabilities Total Current Liabilities NET ASSETS Retained Earnings Net Income Total Net Assets Total Liabilities and Net Assets $ 63,899.82 235,878.91 210,923.43 51, 209.06 561„911.22 65.00 65.00 S 561,976.22 $ 2,944.65 4,144.29 1,750.00 577.36 9,416.30 540,144.34 12,415.58 552,559.92 $ 561,976.22 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Revenue Hotel / Motel Occupancy Tax Hot Money Interest Total Revenue Operating Expenses Postage Misc Expenses General Liability D & O Insurance Long Term Disability Worker's Comp Staff Ins./Retin:ment Meetings & Hosting Chamber Management Out of Town Travel Intbwn Auto/Exp Allowance Membership Dues/Sub. Audit Bookkeeping Payroll Expenses Payroll Tax Expense Office Expense Communlcatlons Historical Museum Bank Service Charge Motel Tax Transferred to LCC Marketing / Advertising Chaparral Square Dancers Tour de Paris Exp Uncle Jessie's Exp ASA ASA Indoor Archery Event Exp SDBA Boat Races TMBRA Bicycle Race Exp Pump Track Event Branding Discovery Events Promotion /Funding Arts Allocation Housekeeping Supplies Rent to COC Total Operating Expenses Operating Income (Loss) NOT -HOT INCOME Misc Income Trolley / Historical Tour de Paris Income ASA Indoor Archery Event TMBRA Bicycle Race Pump Track Event Income Souvenir Sales Interest Income Total Not -Hot income Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 4 Months Ended January 31, 2022 4 Months Ended 4 Months Ended Jan 31, 2022 Jan 31, 2022 Variance % of Budget Annual Budget Actual Budget $ 212,703.79 $ 177,500.00 $ 35,203.79 119.83% $ 710,000.00 y 1,825.41 .....83.36 1,742.05 2,189.79% 250.00 214,529.20 177,583.36 36,945.84 120.80% 710,250.00 121.57 124.00 (2.43) 98.04% 1,000.00 339.19 335.00 4.19 101.25% 1,500.00 0.01) 0.00 0.00 0.00% 1,650.00 1,559.67 0.00 1,559,67 0.00% 1,700.00 333.17 0.00 333.17 0.00% 0.00 545.82 645.00 1.82 100.28% 1,000.00 2,223.05 2,916.00 (692.95) 76.24% 8,750.00 0.00 0.00 0.00 0.00% 200.00 12,500.00 12,500.00 0.00 100.00% 50,000.00 164.52 0.00 164.52 0.00% 2,000.00 700.00 1,000.00 (300.00) 70.00% 3,000.00 850.00 850.00 0.00 100.00 % 5,500.00 0.00 0.00 0.00 0.00% 3,000.00 2,078.08 2,332.00 (253.92) 89.11 °% 7,000.00 27,753.71 28,176.00 (422.29) 98.50% 84,525.00 2,256.94 2,216.00 40.94 101.85% 6,650.00 838.65 1,000.00 (161.35) 83.87% 3,000.00 1,789.21 1,168.00 621.21 153.19'% 3,500.00 3,500.00 3,500.00 0:00 100.00'% 3,500.00 35.45 168.00 (132.55) 21.10% 500.00 106,351.90 88,750.00 17,601.90 119.83% 355,000.00 22,480.33 19,400.00 3,060.33 115.77% 71,000.00 213.35 250.00 (36.65) 85.34% 2,100.00 588.00 600.00 (12.00) 98.00% 32,000.00 625.00 0.00 625.00 0.00% 0.00 0.00 0.00 0.00 0.00% 26,500.00 0.00 0.00 0.00 0.00% 2,000.00 0.00 0.00 0.00 0.00% 7,000.00 1,408.63 1,400.00 8.83 100.62% 6,500.00 0.00 0.00 0.00 0.00% 5,000.00 0.00 0.00 0.00 0.00% 10,000.00 6,507.33 3,500.00 3,007.33 185.92% 46,000.00 7,000.00 7,000.00 0.00 100.00% 7,000.00 3.82 0.00 3.82 0.00% 0.00 4,000.00 4,000.00 0.00 100.00 % 12,000.00 206,848.39 181 830.00 26,018.39 113.76% 770,075.00 7680.81 4,246.64 11,927.45 _ITITITITITITIT 1 80087)% 59,925.00 0.25 332.00 (331.75) 0.08% 1,000.00 2,600.00 1,100.00 1,500.00 236.36% 5,000.00 0.00 0.00 0.00 0.00% 50,000.00 2,590.00 0.00 2,590.00 0.00% 2,000.00 2,000.00 2,000.00 0.00 100.00% 7,000.00 0.00 0.00 0.00 0.00% 5,000.00 608.68 495.00 113.68 122.97% 6,000.00 77.19 �............___ � 83.36 (6.17) 92.60% _ 250.00 7,876.12 mm 4.010.35 _... 3,865.76 196.39% 76,250.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided NOT -HOT EXPENSES Credit Card Fees Trolley Driver Trolley Expenses Trolley Insurance Souvenir Exp Total Not -Hot Expenses Net Income (Loss) Paris Visitor & Convention Council Budget to Actual, Year to Date Modified Cash Basis For the 4 Months Ended January 31, 2022 892.37 668.00 224.37 133.59% 687.00 345.00 342.00 199.13% 127.85 125.00 2.85 102.28% 1,082.32 700.00 382.32 154.62% 351.81 0.00 351.81 .-0.00% 3,141.35 1.838.00 1.303.35 170.91% �� 598 12,416.88.65% 4.28 14 2,000.00 1,800.00 5,000.00 2,100.00 _.... 0 1590000. 525.00 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Paris Visitor & Convention Council Budget to Actual, Current Month and Prior Year Period Modified Cash Basis For 1 Month Ended January 31, 2022 and 2021 and 4 Months Ended January 31, 2021 1 Month Ended 1 Month Ended 1 Month Ended 4 Months Ended Jan 31, 2022 Jan 31, 2022 Jan 31, 2021 Jan 31„ 2021 Actual Budget Actual Actual REVENUE Hotel / Motel Occupancy Tax $ 0.00 $ 0.00 $ 0.00 $ 217,480.83 Hot Money Interest 3.61M 20.84 4.25 20.08„ Total Revenue 3.61 20.84 4.25 217,500.91 OPERATING EXPENSES Postage 3.82 0.00 6.66 57.73 Misc Expenses 5.99 0.00 41.07 1,153.35 General Liability 0.00 0.00 0.00 1,070.65 D & 0 Insurance 1,559.67 0.00 1,559.68 1,559.68 Workers Comp 0.00 0.00 0.00 621.30 Staff Ins./Retirement 699.23 729.00 795.68 3,823.94 Meetings & Hosting 0.00 0.00 0.00 51.49 Chamber Management 0.00 0.00 0.00 10,000.00 Out of Town Travel 164.52 0.00 0.00 0.00 Intown Auto/Exp Allowance 100.00 250.00 200.00 800.00 Membership Dues/Sub. 0.00 0.00 0.00 10D.00 Bookkeeping 372.08 583.00 438.33 1,941.66 Payroll Expenses 5,010.59 7,044.00 6,529.16 28,468.74 ABBS Wage Reimburement 0.00 0.00 (1,752.35) (1,752.35) Payroll Tax Expense 438.38 554.00 553.33 2,216.24 Office Expense 243.18 250.00 55.25 1,042.50 Communications 482.68 292.00 145.95 1,434.08 Bank Service Charge 9.34 42.00 37.46 179.15 Motel Tax Transferred to LCC 0.00 0.00 0.00 108,740.41 Marketing/Advertising 3,111.36 0.00 1,211.68 14,465.73 Tour de Paris Exp 0.00 0.00 100.00 9,570.31 Uncle Jessie's Exp 625.00 0.00 0.00 0.00 ASA 0.00 0.00 280.00 624.94 ASA Indoor Archery Event Exp 0.00 0.00 318.00 318.00 Events Promotion / Funding 2,950.00 0.00 910.00 4,010.00 Arts Allocation 0.00 0.00 7,000.00 7,000.00 Baseball Field Lighting 0.00 0.00 0.00 11,855.86 Housekeeping Supplies 3.82 0.00 0.00 0.00 Rent to COC 1,000.00 1,000.00 --1 „000.00 4,000.00 Total Operating Expenses 16,779 66 10,744.00 79,429.90 _ 213,353.41 Operating Income (Loss) (1677605 ,.............. 10,723.16 (19,425.65) 4,147.50 NOT -HOT INCOME Misc Income 0.00 83.00 10.25 10.69 Trolley/Historical 1,500.00 0.00 300.00 1,700.00 Tour de Paris Income 0.00 0.00 0.00 17,942.78 ASA Indoor Archery Event 2,590.00 0.00 0.00 0.00 Souvenir Sales 139.25 0.00 72.99 642.57 Interest Income 19.80 20.84 12.35 50.12 Total Other Income 4,249.05 103.84. 395.60 20,346.16 NOT -HOT EXPENSES Credit Card Fees 155.71 167.00 112.89 814.80 Trolley Driver 340.00 0.00 0.00 357.00 Trolley Expenses 0.00 0.00 157.11 2,346.89 Trolley Insurance 359.41 175.00 194.32 781.44 Souvenir Exp 351.81 0.00 0.00 132.00 Misc NH Expense _ ...... _ 0.00 0.00 2,500.00 2,519.89 Total Not -Hot Expenses 1,206.93 w 342.00 2,964.32 6,952.02 Net Income (Loss) $ 13733.931 $ 10,961.32 $ (21;994.37 Financial statement preparation service provided by Malnory, McNeal & Company PC, CPAs in accordance with professional standards issued by the AICPA, substantially all disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting are omitted and no assurance is provided Item No. 7 TO: Mayor, Mayor Pro -Tem, and City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: 2020-21 ANNUAL CONSOLIDATED FINANCIAL REPORT DATE: May 9, 2022 BACKGROUND: Section 35 of the Paris City Charter requires the City to have an independent annual financial audit. STATUS OF ISSUE: The report provided to you from McClanahan & Holmes, LLC satisfies the Section 35 requirement. The report is being provided to you as the governing body of the City. The City received the desired unmodified opinion from the auditors which reads as follows: "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, 2021, 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." I have previously discussed the report with the City Manager. BUDGET: Not affected by this report. RECOMMENDATION: This is not an action item. Is] IW&Wa W.-I11.14F.� ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended September 30, 2021 Ill Oil III Illiq 111111, Prepared By Finance Department W.E. Anderson, Director CITY OF PARIS, TEXAS Table of Contents Year Ended September 30, 2021 INTRODUCTORY SECTION Page Statement Letter of Transmittal ..................................................................... 1-1 City of Paris Organizational Chart ......................................................... 1-7 List of Elected and Appointed Officials ...................................................... 1-8 FINANCIAL SECTION Independent Auditors' Report .............................................................. Management's Discussion and Analysis ...................................................... Basic Financial Statements Government -Wide Financial Statements Statement of Net Position .............................................................. 13 1 Statement of Activities ................................................................ is 2 Fund Financial Statements BalanceSheet - Governmental Funds ..................................................... 16 3 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds........ 17 4 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................... 19 5 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund ...................................................... 20 6 Statement of Net Position - Proprietary Funds .............................................. 22 7 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds ........... 24 8 Statement of Cash Flows - Proprietary Funds ............................................... 25 9 Notes to Financial Statements ............................................................ 27 Required Supplementary Information Schedule Texas Municipal Retirement System - Schedule of Changes in Net Pension Liability ................. 68 1 Texas Municipal Retirement System - Schedule of City Pension Contributions ...................... 69 2 Paris Firefighters' Relief and Retirement Fund - Schedule of Changes in Net Pension Liability.......... 70 3 Paris Firefighters' Relief and Retirement Fund - Schedule of City Contributions ..................... 71 4 Texas Municipal Retirement System - Schedule of Changes in Total OPEB Liability and Related Ratios.. 72 5 Texas Municipal Retirement System - Schedule of City OPEB Contributions ....................... 73 6 City of Paris Retiree Health Care Plan - Schedule of Changes in Total OPEB Liability and Related Ratios. 74 7 City of Paris Retiree Health Care Plan - Schedule of City Contributions ............................ 75 8 Combining and Individual Nonmajor Fund Statements and Schedules Nonmajor Governmental Funds ...................................... ................... 76 Combining Balance Sheet - Nonmajor Governmental Funds .................................... 77 9 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 78 10 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Special Revenue Fund ................................................................ 79 11 Debt Service Fund ................................................................... 80 12 Capital Projects Fund ................................................................. 81 13 Capital Assets Used in the Operation of Governmental Funds - Comparative Schedules by Source ....................................................... 82 14 CITY OF PARIS, TEXAS Table of Contents (Continued) Year Ended September 30, 2021 Page Table STATISTICAL SECTION................................................................ 83 Financial Trends Net Assets/Position by Component........................................................ 84 1 Changes in Net Assets/Position.......................................................... 86 2 Fund Balances of Governmental Funds .................................................... 90 3 Changes in Fund Balances of Governmental Funds ........................................... 92 4 Revenue Capacity Property Tax Levies and Collections....................................................... 94 5 Property Tax Rates - All Direct and Overlapping Governments ................................. 96 6 Assessed and Estimated Actual Value of Property ............................................ 97 7 Principal Property Taxpayers............................................................ 99 8 Debt Capacity Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita ........................................... 101 9 Ratio of Outstanding Debt by Type ....................................................... 102 10 Direct and Overlapping Governmental Activities Debt ........................................ 104 11 LegalDebt Margin Information.......................................................... 105 12 Revenue Pledged Coverage - Water and Sewer Revenue Bonds ................................. 106 13 Demographic and Economic Information Demographic and Economic Statistics..................................................... 107 14 Principal Employers................................................................... 108 15 Operating Information Operating Indicators by Function.......................................................... 109 16 Capital Asset Statistics by Function........................................................ 111 17 Building Permits at Market Value......................................................... 113 18 Full -Time Equivalent City Government Employees by Function .................................. 114 19 CONTINUING DISCLOSURE INFORMATION Continuing Disclosure Information......................................................... 116 7 7;� 77 R1�ac ,gip 40'ANDIN, SMPMbt 91r! �,,, March 22, 2022 Mayor Paula P0111.1gal and Members of tine City Council City of Paris, Texas Dear Mayor and Council Members: I am pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of Paris, Texas, for the fiscal year ended September 30, 2021, The City of Paris is a financial reporting entity as defined by the (Jovernmetit 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, 1he Paris F"conomic Development Corporation (PEDC). More information about FIEDC can be fbUnd in footnote I.B. which deals with reporting entity topics. Thcre are no other potential componern 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 ANNUAL COMPREIIENSIVE FINANCIAL REPORT The Annual Comprehensive Finatichd Report of the, City of Paris, Texas, for the fiscal year ended September 30, 2021„ which folims, was prepared by the Finance Department, The financial staterrients have been audited by McClanahan and Holmes, LLY, CPAs, whose report is included herein. This audit satisf-ics Article 111, Section 35 oftlic City Charter which requires that an annual audit ofall 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 gam maximum understanding of the City's 1-mancial activity have been included. P.O. BOX 90137 - PARIS, TEXAS 75461-9037 - (903) 785-7511 - FAX (903) 785-8519 The financial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). 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 6 banks. The City's 2020 census is 24,476, a decrease of 2.76% from the 2010 census of 25,171. 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 2020 census is 50,088, an increase of 0.59% over the 2010 census of 49,793. The City is a regional medical center serving patients in Northeast Texas and Southeast Oklahoma. Founded in 1911 as St. Joseph's Hospital, Paris Regional Medical Center is a 154 bed general acute-care hospital. The City provides utilities through its 36 MGD water plant and 7.25 MGD wastewater plant. Electric power is supplied to Paris by TXU Electric's interconnected transmission system. It has a generating capacity of 22,808,000 KW. The supply of electric power is adequate to meet the requirements of any commercial or industrial demand. Atmos Energy provides natural gas for residential, commercial, and industrial users. Atmos Energy is the largest provider of pure natural gas in America. It provides service to over three million customers in 12 states. There are 3 transmission lines serving the City with a line pressure of 300 pounds per square inch. Telephone service is provided by AT &T. Educational facilities of the City are provided by 3 independent school districts. Each of the districts is accredited by the Texas Education Agency. Higher education needs in the County are provided at Paris Junior College located in the City. Total enrollment of these entities is 11,561. 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 IW 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 2021-22 reflect a 15,80% increase over the 2020-21 values. Building permits for new residential and commercial construction were valued at $9,903,938 for fiscal year 2020-21. This activity should be reflected in next year's taxable values. Sales taxes for 2020-21 increased from the prior year by 11.52%. Current rebates are 0.14% below the 2020-21 rebates through February 2022. Hotel occupancy taxes were up 36.97% compared to 2019-20 taxes as COVID-19 seemed to be in the rearview mirror of most travelers. First quarter 2021-22 collections were 1.24% above the same period in 2020-21. Franchise fees for 2020-21 were down 9.78% 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. There are currently incentives totaling $1,222,000 involving American Spiral Weld, Huhtamaki, and Metro Gate. In addition, TxDOT announced that it would build a new district headquarters in the Gene Stallings Business Park, General Fund receipts equaled 115.01% of budget. This surplus of revenues was caused primarily by Emergency Medical Service revenue, Federal funding related to COVID-19 & economic stimulus, and sales taxes. General Fund expenditures were 106.47% of budget. This variance is mainly due to COVID-19 related expenditures for Public Safety and Public Health. For the 2021-22 fiscal year, the City Council adopted a tax rate of .45373 cents per $100 of value. This rate is $0.02705 cents lower than the previous year but does allow maintaining all services at their current levels and funds all required interest and sinking funds. Taxable property value increased 2.55°/x. Long-term Financial Planning and Relevant Financial Policies The City continues to exercise its long-range financial plan. The City formalized a key financial policy in 2010 that had been informally followed previously: a utility rate maintenance policy. The utility rate maintenance policy will help assure the financial integrity of the enterprise fund along with its related interest and sinking funds. Another policy was formalized in 2013 in the form of a reserve level guideline for both the general fund and utility fund. Adequate reserve levels provide the City with the ability to deal with extraordinary events and maintain its credit worthiness. This credit worthiness, as reflected in the current financial statements, allowed the City to obtain very favorable interest rates on debt issued in 2016, 2017, 2018, 2020, and 2021. 1-3 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 those projects have been completed. In May of 2021, the City issued $43,855,000 in Combination Tax and Surplus Revenue Certificates of Obligation to fund Phase One construction of a new wastewater treatment plant. These bonds will be paid for out of utility system revenue. Also, it is the City's intent to use the Federal American Rescue Plan funding to install water transmission lines around Loop 286 to aid in industrial recruitment as well as providing a second water line connection to certain areas of town. 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. The City also implemented a new incentive program to encourage residential housing construction. The City, PEDC, and the Chamber of Commerce are currently working to develop a common branding strategy to emphasize our unity in economic development and other areas. 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 through participation in the Texas Municipal League's risk pool. Between 30 days and 90 days prior to the beginning of each fiscal year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning on the following October 1. The operating budget, which represents the financial plan for the ensuing fiscal year, includes proposed expenditures and the means of financing them. Public hearings are conducted at which all interested persons' comments concerning the budget for the next fiscal year are heard. The budget is legally enacted by the City Council through passage of an ordinance not later than the 27` day of the last month prior to the I-4 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 09-30-21: Moody's Revenue Investors Issue Tax Supported Supported Fund Maturity Rating Insured 2012 G.O. Refunding Bonds 2013 C.O. (TWDB) 2013 G.O. Bonds 2016 G.O. Bonds 2017 G.O. Bonds 2018 G.O. Bonds 2020 Tax and Rev. C.O. 2020 G.O. Refunding Bonds 2020 Tax Notes 2021 Tax and Rev. C.O. Capital Lease-Firetrucks SuRRMA Loan Total Independent Audit $ 405,000 S - 12-15-21 Aa3 - 1,710,000 12-15-32 N/A - 27,065,000 12-15-32 Aa3 - 6,900,000 12-15-36 Aa3 8,200,000 - 06-15-37 Aa3 95,000 900,000 06-15-38 Aa3 1,365,000 - 06-15-30 N/A 1,765,000 - 12-15-29 Aa3 955,000 - 06-15-26 N/A - 43,855,000 12-15-50 Aa3 792,453 - 01-28-26 NIA 283,307 - 06-29-25 N/A S 13,860,760 S 80,430,000 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. I-5 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 I-6 O List of Elected and Appointed Officials Elected Officials Paula Portugal — Mayor Reginald Hughes — Mayor Pro -Tem Renae Stone Gary Savage Mihir Pankaj Linda Knox Clayton Pilgrim Appointed Officials Grayson Path — City Manager Gene Anderson, CPA — Finance Director Janice Ellis — City Clerk Stephanie Harris — City Attorney Tom E. Hunt, III — Presiding Municipal Court Judge Michael Smith — Public Works Director Richard Salter — Police Chief Tim Deghelder — Library Director Sandy Collard — Human Resources Russell Thrasher — Emergency Medical Services Andrew Mack — Planning and Development Doug Harris — Utilities Director Thomas McMonigle— Interim Fire Chief I-8 McClanahan and Holmes, LLP CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Council City of Paris, Texas 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, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 228 SIXTH STREET S.E. PARIS, TEXAS 75460 STEVEN W. MOHUNDRO. CPA 903-784-4316 GEORGE H. STRUVE, CPA FAX 903-784.4310 DEBRA J. WILDER, CPA ---. TEFFANY A. KAVANAUGH, CPA 304 WEST CHESTNUT APRIL J. HATFIELD, CPA DENISON, TEXAS 75020 BRITTANY L. MARTIN, CPA 903465-6070 FAX 903465-6093 1400 WEST RUSSELL BONHAM, TEXAS 75418 903-583-5574 FAX 903-583-9453 INDEPENDENT AUDITORS' REPORT Honorable Mayor and City Council City of Paris, Texas 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, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 Honorable Mayor and City Council City of Paris, Texas unit, each major fund, and the aggregate remaining fund information of the City of Paris, Texas, as of September 30, 2021, 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 and related ratios, the schedules of changes in total OPER liability and related ratios, 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, statistical section, and continuing disclosure information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements 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 are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, statistical section, and continuing disclosure information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Paris, Texas March 22, 2022 Fq 911cCianahan andMolmes, .GGT 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, 2021. 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 dropped its tax rate from 0.51608 to 0.48078 per $100 of valuation for fiscal year 2020-21. • For the upcoming 2021-22 fiscal year, the City lowered its tax rate to 0.45373 per $100 of valuation. • City-wide revenues this year exceeded City-wide expenses by $5,144,346 whereas in the previous year revenues exceeded expenses by $5,978,761. The underlying cause the lower surplus was a decrease in operating grant revenue. • At the end of the fiscal year, unassigned fund balance for the general fund was $20,596,761 or 75.41%, of total general fund expenditures. The prior year unassigned fund balance was $15,990,260 or 58.60%, of general fund expenditures. • At the end of the fiscal year, the net position of the proprietary funds was $45,212,203 compared to $43,803,809 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. The government -wide financial statements can be found at Statement 1 and 2. 3 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Paris, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Paris can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for government activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Paris classifies its governmental funds as either Nonmajor or Major. Nonmajor governmental funds include all special revenue funds and permanent funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, capital projects fund, and the debt service fund, all of which are considered to be Major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these Nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found beginning with Statement 3 and continuing through Statement 6 of this 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. 4 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 and other post -employment benefits to its employees. Required supplementary information can be found immediately following the Notes to the Financial Statements. 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 $85,879,855 at the close of the most recent fiscal year. This compares to $80,850,369 for the previous year. This was a 6.22% increase in net position, By far, the largest portion of the City of Paris' net position ($60,113,959 or 70.00%) reflects its net investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Paris uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Paris' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Paris Net Position k" Governmental Activities Business -Type Activities Total Total 2020 2021 2020 2021 2020 2021 Assets Current and Other Assets $ 27,049,806 $30,225,091 $ 18,991,923 $ 67,149,358 $ 46,041,729 $ 97,374,449 Capital Assets 41,127,102 40,391=518 66,921,032 67,853,908 108,048,134 108,245,426 Total Assets 68,176,908 70,616,609 85,912,955 135,003,266 154,089,863 205,619,875 Deferred Outflows Related to Asset Retirement Obligation - - - 2,804,300 - 2,804,300 Related to Pension 958,653 1,651,067 171,157 163,384 1,129,810 1,814,451 Related to OPEB 334,164 456,770 31,764 47,281 365,928 504,051 Total Deferred Outflows 1,292,817 2,107,837 202,921 3,014=965 1,495,738 5,122,802 Long -Term Liabilities Outstanding 28,688,849 27,898,649 40,079,561 86,894,194 68,768,410 114,792,843 Other Liabilities 1,505,509 1,291;784 1,828907 5,519,745 3,334,416 6,811,529 Total Liabilities 30,194,358 29,190,433 41,908,468 92,413,939 72,IO2,826 121,604,372 Deferred Inflows Related to Pensions 1,688,602 2,650,876 390,412 378,487 2,079,014 3,029,363 Related to OPEB 243,149215,485 13,187 13,602 256,336 229,087 Total Deferred Inflows 1,931,751 2,866,361 403,599 392,089 2,335,350 3,258,450 Net Position Net Investment in Capital Assets 21,907,532 26,703,929 28,880,579 33,410,030 50,788,111 60,113,959 Restricted 7,857,800 7,357,621 - - 7,857,800 7,357,621 Unrestricted 7,578,284 6;606,102 14,923,230 11,802,173 22,501,514 18,408,275 Total Net Position $ 37,343,616 $ 40,667,652 $ 43,803,809 $ 45,212,203 $ 81,147,425 $ 85,879,855 k" An additional portion of the City of Paris' net assets ($7,357,621 or 8.57%) represents resources that are subject to external restrictions on how they may be used. The balance of unrestricted net assets {$18,408,275 or 21.43%) may be used to meet the government's ongoing obligations to citizens and creditors. 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 and other post -employment benefits. Inflows anticipate future contributions to the pension plan and retiree health care and other post -employment benefits as well as certain asset retirement obligations. Governmental Activities Governmental activities increased the City of Paris' net position by $3,673,152 or 9.91% during the current fiscal year. Total general and program revenues were down $1,054,281(3.11%). This decrease was due to a significant drop in program revenues specifically, operating grants. This drop is not surprising given the previous year was unusually high with such activities. Property Taxes Sales Taxes Franchise Taxes Hotel Occupancy Tax Unrestricted Investment Earnings Miscellaneous Gain (Loss) on Sale of Capital Asset Program Revenues General Revenues & Program Revenues Increase 2020 2021 (Decrease) 9,338,087 8,245,939 4,714,021 872,418 197,203 714,470 25,246 9,804,062 $ 9,561,394 9,196,157 4,253,182 1,192,873 41,704 546,391 125,176 7,940,288 223,307 950,218 (460,839) 320,455 (155,499) (168,079) 99,930 (1,863,774) $ 33,911,446 $ 32,857,165 $ (1,054,2E) 6 The following table provides a summary of the City's operations for the years ending 2020 and 2021 for both governmental and business -type activities. City of Paris Changes in Net Position Expenses General Government Governmental Activities Business -Type Activities Total 4,409,428 5,481,353 2020 2021 2020 2021 2020 2021 Revenues Public Works 6,699,707 6,452,355 - - 6,699,707 Program Revenues Health 4,267,819 3,962,596 - - 4,267,819 Charges for Services $ 7,327,433 $ 7,331,549 $15,043,788 $16,567,528 $22,371,221 $23,899,077 Operating Grants and Other - - - - - Contributions 2,151,740 369,289 - - 2,151,740 369,289 Capital Grants and Interest on Long -Term Contributions 324,889 239,450 - - 324,889 239,450 General Revenues Water and Sewer - - 14,026,074 15� 14,026,074 Property Taxes 9,338,087 9,561,394 - - 9,338,087 9,561,394 Sales Taxes 8,245,939 9,196,157 - - 8,245,939 9,196,157 Franchise Taxes 4,714,021 4,253,182 - - 4,714,021 4,253,182 Hotel Occupancy Transfers 4,533,324 3,850,603 1,445,437 1,293,743 5,978,761 Tax 872,418 1,192,873 - - 872,418 1,192,873 Unrestricted Increase (Decrease) in Investment Earnings 197,203 41,704 427,723 (51,563) 624,926 (9,859) Other 739,716 671,567 - 19,321 739,716 690,888 Total Revenues 33,911,446 32,857,165 15,471,511 16,535,286 49,382,957 49,392,451 Expenses General Government 4,409,428 5,481,353 - - 4,409,428 5,481,353 Public Safety 12,727,703 11,874,360 - - 12,727,703 11,874,360 Public Works 6,699,707 6,452,355 - - 6,699,707 6,452,355 Health 4,267,819 3,962,596 - - 4,267,819 3,962,596 Culture and Recreation 846,669 762,080 - - 846,669 762,080 Other - - - - - - Cox Field 311,796 374,649 - - 311,796 374,649 Interest on Long -Term Debt 115,000 99,169 - - 115,000 99,169 Water and Sewer - - 14,026,074 15� 14,026,074 1515 2 Total Expenses 29,378,122 29,006,562 14,026,074 15,241,543 43,404,196 44,248,105 Increase (Decrease) in Net Position Before Transfers 4,533,324 3,850,603 1,445,437 1,293,743 5,978,761 5,144,346 Transfers/SpecialItems (146,679) (177,451) 146,679 177,451 - - Increase (Decrease) in Net Position 4,386,645 3,673,152 1,592,116 1,471,194 5,978,761 5,144,346 Net Position, Beginning 31,677,862 37,046,560 42,253,191 43,803,809 73,931,053 80,850,369 Prior Period Adjustment 982,053 (52,060) (41,498) (62,800) 940,555 (114,860) Net Position, Ending $ 37,046,560 $402667,652 $43,8032809 $452212,203 $80,850,369 $85,8792855 7 Business -Type Activities Business -type activities increased the City of Paris' net position by $1,471,194. This increase was caused by a rate increase, transfers, and a prior period adjustment. Financial Analysis of the Government's Funds As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds The focus of the City of Paris' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Paris' financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Total Assets Total Liabilities Deferred Inflows of Resources Fund Balances Nonspendable: Inventory Permanent Fund Principal Restricted For: Debt Service Capital Projects Notes Law Enforcement Public Education Community Development Assigned: Library Community Development Unassigned: General Fund Total Fund Balances Total Liabilities, Deferred Inflows, and Fund Balances Governmental Funds 2020 2021 27,049,807 $ 30,225,090 1,228,455 1,190,557 764,853 813,024 500,495 181,620 98,400 98,543 1,766,863 1,928,672 3,839,984 3,631,092 1,493,902 672,627 655,520 707,090 415,120 107,574 75,801 76,935 220,154 220,595 15,990,260 20,596,761 25,056,499 28,221,509 27,049,807 30,225,090 As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund balances of $28,221,509. Approximately 72.98% of this total amount ($20,596,761) 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 ($98,543), 2) pay debt service ($1,928,672), 3) inventories ($181,620), 4) law enforcement ($672,627), 5) library ($76,935), 6), Public Education ($707,090), 7) capital projects ($3,631,092) and 8) Community Development ($107,574). 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 FITTIti7i1:;i M1, Governmental Funds Revenues, Expenditures, and Changes in Fund Balances 2020 2021 $ 34,259,642 $ 32,751,652 33,382,864 32,306,405 876,778 445,247 1,291,321 2,771,823 2,168,099 3,217,070 21,948,406 25,056,499 939,994 (52,060) $ 25,056,499 $ 28,221,509 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 fiord was $20,596,761 ($15,990,260 the previous year), while total fund balance reached $21,489,282 ($17,150,077 the previous year). The increase in the fund balance of the general fund was primarily due to increased cash position and receivables. As a measure of the general fund's liquidity, it may be useful to compare both unassigned find balance and total fund balance to total fund expenditures. Unassigned fund balance represents 63.75% of total general fund expenditures, while total fund balance represents 87.36% 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 Statement 6 in this report to demonstrate compliance with this budget. The final appropriation of the general fund was overspent by $1,729,835 ($4,055,949 overspent the previous year). This 6.47% variance is mainly due to bad debt charge offs in the EMS and Police (Municipal Court) Departments. General Fund revenues were over budget by 15.01% or $4,014,955 ($4,491,429 last year). Higher than expected sales tax collections and increased billings by EMS and Municipal Court account for most of the increase. 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 $3,627,291 ($3,836,182 last year). This reduction was due to relatively minor expenditures 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. Debt Service Fund The Debt Service Fund has a total fund balance of $1,928,372 ($1,766,863 the previous year), all of which is reserved for the payment of debt service. The net increase in fund balance during the current year in the debt service fund was $161,809 ($39,798 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 $1,541,384 in the current fiscal year ($1,892,804 the previous year). Proprietary Fund The City of Paris' Proprietary Fund provides the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the Water and Sewer Fund at the end of the year amounted to $11,802,173 ($14,923,230 the previous year). 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, 2021 amounts to $108,245,426 ($108,048,134 the previous year). Both of these amounts are net of accumulated depreciation. This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads, highways, and bridges. Net Capital Assets 10 Governmental Activities Business -Type Activities Total 2020 2021 2020 2021 2020 2021 Land $ 5,950,108 $ 5,950,108 $ 339,620 $ 339,620 $ 6,289,728 $ 6,289,728 Buildings and System 10,496,986 10,048,032 28,270,660 25,794,430 38,767,646 35,842,462 Improvements Other than Buildings 2,664,467 2,363,745 - 2,664,467 2,363,745 Machinery, Furniture, and Equipment 3,784,517 4,608,507 1,114,401 1,324,682 4,898,918 5,933,189 Infrastructure 11,566,617 17,157,762 - - 11,566,617 17,157,762 Construction in Progress 6,664,407 263,364 33,953,797 37,188,254 40,618,204 37,451,618 Water Rights -Net - - 3,242,554 3,206,922 3,242,554 3,206,922 Total $ 41,127,102 $ 40,391,518 $ 66,921,032 $ 67,853,908 $ 108,048,134 $ 108,245,426 10 Additional information on the City of Paris' capital assets can be found in note IV. D. of the Notes to the Financial Statements. Long -Term Debt The City has two capital leases with $792,453 in principal outstanding at year end. The City of Paris also has total debt outstanding in the amount of $94,290,860 (includes the two capital leases). Of this amount, $13,860,860 comprises debt being paid for by property tax or hotel tax revenues, and $80,430,000 represents bonds being paid for by water and sewer revenues. Paris' bond debt increased by $41,119,834 during the fiscal year. This was due to the $43,855,000 Tax & Revenue COs issued in 2021 for the purpose of building a new waste water plant. The City's underlying bond rating from Moody's is Aa3. The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $0A8078 per $100 valuation for the 2020-21 fiscal year. This rate was broken down into $0.39788 per $100 valuation for operations and $0.08290 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 5.53% of its debt capacity. Additional information on the City of Paris' tang -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 3% in the coming year. • New construction amounted to 17 residential units and 8 commercial units. • Local population growth is expected to be minimal. • The tax rate is expected to drop below $0.44 per $ 100 of value as property values continue to grow. • Franchise fees are expected to remain stable. All of these factors were considered in preparing the City of Paris' budget for 2021-22. 11 Moody's Revenue Final Investors Issue Tax Supported Supported Maturity Rating 2012 G.O. Refunding Bonds $ 405,000 $ - 12-15-2021 Aa3 2013 C.O.s (TWDV) - 1,710,000 06-15-2032 N/A 2013 G.O. Bonds 27,065,000 12-15-2032 Aa3 2016 G.O. Bonds -6,900,000 12-15-2036 Aa3 2017 G.O. Bonds 8,200,000 - 06-15-2037 Aa3 2018 G.O. Bonds 95,000 900,000 09-30-2028 Aa3 2020 Tax and Rev C.O.s 1,365,000 - 06-15-2030 N/A 2020 G.O. Refunding Bonds 1,765,000 12-15-2029 Aa3 2020 Tax Notes 955,000 06-15-2026 N/A 2021 Tax & Rev. C.O.s 43,855,000 12-15-2050 Aa3 SuRRMA Loan 283,307 - 06-29-2025 N/A Capital Leases — Firetrucks 792,453 - 01-28-2026 N/A $ 13,860,760 $ 80,430,000 Paris' bond debt increased by $41,119,834 during the fiscal year. This was due to the $43,855,000 Tax & Revenue COs issued in 2021 for the purpose of building a new waste water plant. The City's underlying bond rating from Moody's is Aa3. The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $0A8078 per $100 valuation for the 2020-21 fiscal year. This rate was broken down into $0.39788 per $100 valuation for operations and $0.08290 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 5.53% of its debt capacity. Additional information on the City of Paris' tang -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 3% in the coming year. • New construction amounted to 17 residential units and 8 commercial units. • Local population growth is expected to be minimal. • The tax rate is expected to drop below $0.44 per $ 100 of value as property values continue to grow. • Franchise fees are expected to remain stable. All of these factors were considered in preparing the City of Paris' budget for 2021-22. 11 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 Assets Cash and Cash Equivalents Investments Receivables (Net of Allowance for Uncollectibles) Inventories Prepaid Assets Net Pension Asset Restricted Assets Cash and Cash Equivalents Investments Due from tither Governments Land Development Costs Water Rights (Net of Accumulated Amortization) Capital Assets Not Being Depreciated Land Construction in Progress Capital Assets (Net of Accumulated Depreciation) Buildings and System Improvements Other Than Buildings Machinery and Equipment Infrastructure Total Assets CITY OF PARIS, TEXAS Statement of Net Position September 30, 2021 Primary Government Governmental Business -Type Activities Activities Total Statement 1 Component Unit Economic Development $ 15,509,252 $ 8,415,336 $ 23,924,588 $ 2,254,028 8,106,025 3,543,244 11,649,269 2,114,248 4,843,430 2,776,172 7,619,602 310,796 181,620 356,270 537,890 - 71,922 - 71,922 5,683 - 208,823 208,823 - 888,648 9,848,928 10,737,576 - 220,954 42,000,585 42,221,539 - 403,240 - 403,240 - - - - 1,986,740 - 3,206,922 3,206,922 - 5,950,108 339,620 6,289,728 - 263,364 37,188,254 37,451,618 - 10,048,032 25,794,430 35,842,462 - 2,363,745 - 2,363,745 - 4,608,507 1,324,682 5,933,189 2,643 17,157,762 - 17,157,762 - 70,616,609 135,003,266 205,619,875 6,674,138 Deferred Outflows of Resources Deferred Outflows Related to Asset Retirement Obligation - 2,804,300 2,804,300 - Deferred Outflows Related to Pensions 1,651,067 163,384 1,814,451 - Deferred Outflows Related to OPEB 456,770 47,281 504,051 - Total Deferred Outflows of Resources 2,107,837 3,014,965 5,122,802 - The accompanying notes to the financial statements are an integral part of this statement. 13 The accompanying notes to the financial statements are an integral part of this statement. 14 CITY OF PARIS, TEXAS Statement I Statement of Net Position (Continued) September 30, 2021 Component Primary Government Unit Governmental Business -Type Economic Activities Activities Total Development Liabilities Accounts Payable and Other Current Liabilities 1,190,558 472,274 1,662,832 7,110 Accrued Interest Payable 101,226 922,743 1,023,969 9,326 Unearned Revenue - 3,078,369 3,078,369 - Customers' Deposits 1,046,359 1,046,359 - Intergovernmental Payable 18,789 Noncurrent Liabilities Due Within One Year 1,689,200 2,367,277 4,056,477 104,446 Due in More Than One Year 13,311,254 84,299,502 97,610,756 1,117,308 Net Pension Liability 10,028,352 -10,028,352 - Net OPER Liability 2,869,843 227,415 3,097,258. - Total Liabilities 29,190,433 92,413,939 121,604,372 1,256,979 Deferred Inflows of Resources Deferred Inflows Related to Pensions 2,650,876 378,487 3,029,363 - Deferred Inflows Related to OPER 215,485 13,602 229,087 Total Deferred Inflows of Resources 2,866,361 392,089 3,258,450 - Net Position Net Investment in Capital Assets 26,703,929 33,410,030 60,113,959 2,643 Restricted for Construction 3,843,115 3,843,115 - Debt Service 1,928,672 1,928,672 1,221,754 Law Enforcement 672,627 672,627 Education 707,090 707,090 Community Development 107,574 107,574 - Industrial Incentives - - 1,222,000 Land Development Costs - - 1,986,740 Permanent Library Funds Nonexpendable 98,543 -98,543 - Unrestricted 6,606,102 11,802,173 18,408,275 984,022 Total Net Position $ 40,667,652 $ 45,212,203 $ 85,879,855 $ 5,417,159 The accompanying notes to the financial statements are an integral part of this statement. 14 N N h n ON to M tD ON Cl •C *D yc't Gh e1' •--� V1 N C*- ""' O N Om0- v 0�0- t0 C) � �..• ^ � W � O � b9 69 O a rte - 0 0 O M O (4 In Ike N 'o .� < d' VS to � _ v F N M 03r. F VS NO C` 4 to N M t+'1 �C N m tp P n C? -,� M -t try N 00 90 Cr C� op Pd r D` v'I 00 P to O+ O. M el' m •••� �• 00 00 M 'Ct 1 �4 m %D M NO 00 to 00 •+n W ui M O �O N Ci �p ; h �D O VS oo O C, �t3 VS to N N ® It %O C N Or �t3 V' d' %0 in Q+ `•�' ei' 00 CS to �' Ct n O �n 00 00 C3 M M P a, �' �' to N V'1 GD 00 .-• a0 eq 00 00 � H3 69 'O y¢. � O O G Q 00 6M0 0000 Com'+ N to y p rn •'•' N N N'tea' F G 1 CG 69 6041 wa Z C4 Vni cC14m* otv rnvnicwr- 0c rltnr�vavi �o %n V7 C7 Ci M er V! ,•• Nr t N r M «• ,-• aQ C m --• It C• -' Vi C? lC N m Q� %n h C< m "D N r- • h W Q to oo O OS �O 2 O •- DO 00 .- *-•' ® ;O CS +D O` 6'i et et N h M h V1 -•+ N -» Vl ... •-» f•^ �D et O I^ KS 'D o, a, tt �--� N M M C O¢ 69 60) N 0 N Q' Cd M C co VPS 1 r h t .fid. 1 1 r ON CJ w p rn kn v o o+ ON N12 � .a 1 U � � � •� N-• � M M .P� 64 6+4 69 a �, HC *O •+ %D C? P O+ ON 00 00 P oA vCi %D VS P e!' vD -n t In %0 N N to In t- C> r c0 to .v 00 M D K (N vmi ml 00 tt°n to 0000- ch 4�i ^•cF t` �O ti0 m to 6R 60,111 g m C! to %D C> o. O, N mI:r m VS c a° v 4.) m c M m M " C1 'o --+ VS to to CD r• H 5 0 y�j -4 CF rty 00 6},t va C m --C .OAC' 'in 'vf C' 0o C' Qr n M O M N N N N & rn v O : a VS �D V1 V1 v O i0 c0. O C 'O rA a 0. a 69 69 69ti tl �acnwxx�C� 0 H U v 2 a �, 2 m � r ts r c 00 w � � a � .� •$ � fs. � � y az 8 •'= p � H 8w CITY OF PARIS, TEXAS Statement 3 Balance Sheet - Governmental Funds September 30, 2021 Total Nonmajor Total Debt Capital Governmental Governmental General Service Projects Funds Funds Assets Cash and Cash Equivalents $ 9,781,751 $ 1,911,557 $ 3,627,281 $ 1,077,310 $ 16,397,899 Investments 8,228,931 - - 98,048 8,326,979 Receivables (Net of Allowance for Uncollectibles) 4,741,112 101,402 - 916 4,843,430 Inventories 181,620 - - - 181,620 Prepaid Items 71,922 - - - 71,922 Due from Other Governments 403,240 - - • 403,240 Total Assets $ 23,408,576 9 2,012,959 $ 3,627,281 $ 1,176,274 $ 30,225,090 Liabilities, Deferred Inflows, and Fund Balances Liabilities Accounts Payable and Accrued Liabilities $ 1,190,557 $ - $ - $ - $ 1,190,557 Total Liabilities 1,190,557 - - - 1,190,557 Deferred Inflows of Resources Unavailable Revenue - Property Taxes 702,264 84,287 - - 786,551 Unavailable Revenue - Other 26,473 - - - 26,473 Total Deferred Inflows of Resources 728,737 84,287 - 813,024 Fund Balances Nonspendable Inventory 181,620 - - - 181,620 Permanent Library Funds - - - 98,543 98,543 Restricted for Debt Service - 1,928,672 - - 1,928,672 Capital Projects 3,811 - 3,627,281 - 3,631,092 Notes - - - - - Law Enforcement - - - 672,627 672,627 Public Education 707,090 - - - 707,090 Community Development - • - 107,574 107,574 Assigned Library • - - 76,935 76,935 Community Development - - - 220,595 220,595 Unassigned: General Fund 20,596,761 - - - 20,596,761 Total Fund Balances 21,489,282 1,928,672 3,627,281 1,176,274 28,221,509 Total Liabilities, Deferred Inflows and Fund Balances $ 23,408,576 $ 2,012,959 $ 3,627,281 $ 1,176,274 $ 30,225,090 Fund Balances - Total Governmental Funds (above) $ 28,221,509 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) 40,391,518 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred or not reflected in the funds. 813,024 Long -tern liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. (15,101,680) Included in noncurrent liabilities is the recognition of the City's proportionate share of the net pension liability required by GASB 68 in the amount of $10,028,352, a Deferred Outflow of Resources in the amount of $1,651,067, and a Deferred Inflow of Resources in the amount of $2,650,876. This amounted to a decrease in Net Position of $11,028,161. (11,028,161) Included in noncurrent liabilities is the recognition of the City's proportionate share of the net OPER liability required by GASB 75 in the amount of $2,869,843, a Deferred Outflow of Resources in the amount of $456,770, and a Deferred Inflow of Resources in the amount of $215,485. This amounted to a decrease in Net Position of $2,628,558. (2,628,558) Net Position of Governmental Activities $ 40,667,652 The accompanying notes to the financial statements are an integral part of this statement. 16 CITY OF PARIS, TEXAS Statement 4 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended September 30, 2021 The accompanying notes to the financial statements are an integral part of this statement. 17 Total Nonmajor Total Debt Capital Governmental Governmental General Service Projects Funds Funds Revenues Taxes Property $ 7,971,838 $ 1,541,384 $ - $ - $ 9,513222 Sales 9,196,157 - - - 9,196,157 Franchise 4,253,182 - - - 4,253,182 Hotel Occupancy 881,259 265,041 - 46,573 1,192,873 Licenses and Permits 211,668 - - - 211,668 Fines and Fees 615,721 - - 48,152 663,873 Use of Money and Property 198,965 4,777 7,144 1,398 212,284 Sanitation 1,470,237 - - - 1,470,237 Health 4,806,996 - - - 4,806,996 Intergovernmental 706,574 - - - 706,574 Other 442,020 - 18,000 64,566 524,586 Total Revenues 30,754,617 1,811,202 25,144 160,689 32,751,652 Expenditures Current General Government 1,613,946 - - 45,318 1,659,264 Public Safety 11,367,228 - - 6,911 11,374,139 Public Works 4,991,668 - - - 4,991,668 Health 5,199,358 - - 1,470 5,200,828 Culture and Recreation 677,612 - - 1,879 679,491 Cox Field 242,809 - - - 242,809 Other 1,838,073 - - - 1,838,073 Debt Service Principal 158,073 3,157,193 - - 3,315,266 Interest 28,617 360,552 - - 389,169 Capital Outlay General Government 252,387 - 61,540 - 313,927 Public Safety 870,874 - - 35,390 906,264 Public Works 941,371 - 172,505 - 1,113,876 Health 216,631 - - - 216,631 Cox Field 65,000 - - - 65,000 Total Expenditures 28,463,647 3,517,745 234,045 90,968 32,306,405 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,290,970 (1,706,543) (208,901) 69,721 445,247 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, 2021 Other Financing Sources (Uses) GO Refunding Bonds Issued GO Refunding Bonds Issue Costs Tax Notes Issued Tax Notes Issue Costs Proceeds from Sale of Capital Assets Transfers In Transfers Out Total Other Financing Sources (Uses) Net Changes in Fund Balances Fund Balances - Beginning Prior Period Adjustment Fund Balances - Ending Debt Capital General Service Projects Statement 4 (Continued) Total Nonmajor Total Governmental Governmental Funds Funds - 1,765,000 - - 1,765,000 - (45,492) - - (45,492) - 1,115,000 - - 1,115,000 - (36,500) - - (36,500) 151,266 - - - 151,266 2,751,240 148,844 - 458,248 3,358,332 (802,211) (1,078,500) - (1,655,072) _ (3,535,783) 2,100,295 1,868,352 - (1,196,824) 2,771,823 4,391,265 161,809 (208,901) (1,127,103) 3,217,070 17,150,077 1,766,863 3,836,182 2,303,377 25,056,499 (52,060) - - - (52,060) $ 21,489,282 $ 1,928,672 $ 3,627,281 $ 1,176,274 $ 28,221,509 The accompanying notes to the financial statements are an integral part of this statement. 18 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, 2021 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net Change in Fund Balances - Total Governmental Funds (Statement 4) Governmental funds reported capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The net effect of various miscellaneous transactions involving capital assets (i.e., sales and donations) is to decrease net assets. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds. Accrued interest expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. The net change in inventory is a direct adjustment to fund balance in the funds. Pension expenses are not reported as expenditures in governmental funds and contributions after the measurement date are deferred. OPEB expenses are not reported as expenditures in governmental funds and contributions after the measurement date are deferred. The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Change in net position of governmental activities (Statement 2). The accompanying notes to the financial statements are an integral part of this statement. 119 Statement 5 3,217,070 (641,661) (93,924) 48,171 25,828 (44,360) 913,949 (112,713) 360,792 3,673,152 CITY OF PARIS, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual General Fund Year Ended September 30, 2021 REVENUES Property Taxes Sales Taxes Franchise Taxes Hotel Occupancy Taxes Licenses and Permits Fines and Fees Investment Earnings Sanitation Health Intergovernmental Revenues Other Total Revenues EXPENDITURES General Government Council Manager Attorney Municipal Court Clerk Finance Total General Government Public Safety Police Fire Total Public Safety Public Works Community Development Engineering Public Works Parks and Recreation Sanitation Streets and Highways Traffic and Public Lighting Garage Total Public Works Budgeted Amounts Original Final $ 7,689,000 7,363,000 4,238,100 675,000 193,950 434,500 350,510 1,474,250 2,874,000 1,252,802 194,550 26,739,662 180,250 388,961 350,106 236,171 152,255 450,421 1,758,164 6,981,635 5,317,088 12,298,723 1,470,920 413,554 223,673 1,205,650 1,165,350 1,519,574 497,353 360,021 6,856,095 Actual Statement 6 Variance with Final Budget $ 7,689,000 $ 7,971,838 $ 282,838 7,363,000 9,196,157 1,833,157 4,238,100 4,253,182 15,082 675,000 881,259 206,259 193,950 211,668 17,718 434,500 615,721 181,221 350,510 198,965 (151,545) 1,474,250 1,470,237 (4,013) 2,874,000 4,806,996 1,932,996 1,252,802 706,574 (546,228) 194,550 442,020 247,470 26,739,662 210,250 388,961 350,106 236,171 152,255 450,421 1,788,164 6,581,635 5,232,088 11,813,723 1,295,920 413,554 238,673 1,080,650 1,165,350 1,519,574 497,353 360,021 6,571,095 The accompanying notes to the financial statements are an integral part of this statement. 30,754,617 303,662 391,211 375,252 225,552 149,776 420,880 1,866,333 6,885,517 5,539,275 12,424,792 610,778 365,211 238,731 1,233,703 1,158,445 1,459,577 511,325 355,269 5,933,039 4,014,955 (93,412) (2,250) (25,146) 10,619 2,479 29,541 (78,169) (303,882) (307,187) (611,069) 685,142 48,343 (58) (153,053) 6,905 59,997 (13,972) 4,752 638,056 The accompanying notes to the financial statements are an integral part of this statement. 21 CITY OF PARIS, TEXAS Statement 6 Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Budget and Actual General Fund Year Ended September 30, 2021 Budgeted Amounts Variance with Original Final Actual Final Budget EXPENDITURES (Continued) Health 3,045,929 3,415,929 5,415,989 (2,000,060) Culture and Recreation Paris Band 23,050 23,050 17,456 5,594 Library Services 727,331 727,331 660,156 67,175 Total Culture and Recreation 750,381 750,381 677,612 72,769 Other Cox Field Airport 323,850 368,850 307,809 61,041 Other 1,700,670 2,025,670 1,838,073 187,597 Total Other 2,024,520 2,394,520 2,145,882 248,638 Total Expenditures 26,733,812 26,733,812 28,463,647 (1,729,835) Excess (Deficiency) of Revenues Over Expenditures 5,850 5,850 2,290,970 2,285,120 Other Financing Sources (Uses) Transfers In - - 2,751,240 2,751,240 Transfers Out - - (802,211) (802,211) Proceeds from Sale of Assets - - 151,266 151,266 Total Other Financing Sources (Uses) - - 2,100,295 2,100,295 Net Changes in Fund Balance 5,850 5,850 4,391,265 4,385,415 Fund Balance - Beginning 17,150,077 17,150,077 17,150,077 - Prior Period Adjustment - - (52,060) (52,060) Fund Balance - Ending $ 17,155,927 $ 17,155,927 $ 21,489,282 $ 4,333,355 The accompanying notes to the financial statements are an integral part of this statement. 21 CITY OF PARIS, TEXAS Statement of Net Position Proprietary Funds September 30, 2021 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 Noncurrent 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) Net Pension Asset Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources - Asset Retirement Obligation Deferred Outflows of Resources - Pensions Deferred Outflows of Resources - OPEB Total Deferred Outflows The accompanying notes to the financial statements are an integral part of this statement. 22 Statement 7 Water and Sewer Enterprise Fund $ 8,415,336 9,848,928 18,264,264 2,743,463 32,709 356,270 21,396,706 39,065,965 2,934,620 3,543,244 45,543,829 3,206,922 339,620 37,188,254 32,280,368 47,011,375 28,300,115 4,560,328 2,054,372 87,087,446 64,646,986 208,823 113,606,560 135,003,266 2,804,300 163,384 47,281 3,014,965 CITY OF PARIS, TEXAS Statement 7 Statement of Net Position (Continued) Proprietary Funds September 30, 2021 Water and Sewer Enterprise Fund LIABILITIES Current Liabilities Accounts Payable and Accrued Liabilities 472,274 Accrued Interest Payable 922,743 Customers' Deposits 1,046,359 Bonds Payable - Current Portion 2,345,000 Accrued Compensated Absences - Current Portion 22,277 Unearned Revenue 3,078,369 Total Current Liabilities 7,887,022 Noncurrent Liabilities Bonds Payable - Noncurrent Portion 37,343,006 Tax Notes Payable - Noncurrent Portion 43,855,000 Accrued Compensated Absences - Noncurrent Portion 200,496 Asset Retirement Obligation 2,901,000 Net OPEB Liabilities 227,415 Total Noncurrent Liabilities 84,526,917 Total Liabilities 92,413,939 DEFERRED INFLOWS OF RESOURCES Deferred Inflows Related to Pensions 378,487 Deferred Inflows Related to OPEB 13,602 Total Deferred Inflows 392,089 NET POSITION Net Investment in Capital Assets 33,410,030 Unrestricted 11,802,173 Total Net Position S 45,212,203 The accompanying notes to the financial statements are an integral part of this statement. 23 CITY OF PARIS, TEXAS Statement 8 Statement of Revenues, Expenses, and Changes in Fund Net Position 3,023,205 Proprietary Funds 1,270,174 Year Ended September 30, 2021 3,607,507 Maintenance Water and Sewer Sundry Charges Enterprise Fund Operating Revenues 20,478 Charges for Sales and Services 695,425 Water Sales and Taps $ 8,616,650 Sewer Charges and Taps 7,194,829 Sanitation Billing Fees 64,117 Service Charges 183,085 Industrial Surcharges 73,154 Miscellaneous 435,693 Total Operating Revenues 16,567,528 Operating Expenses 1,471,194 Personnel 3,023,205 Supplies 1,270,174 Contractual 3,607,507 Maintenance 969,731 Sundry Charges 721,515 Bad Debt Expense 20,478 Other 695,425 Depreciation 2,910,029 Amortization of Water Rights 35,632 Amortization of Asset Retirement Obligation 96,700 Total Operating Expenses 13,350,396 Operating Income 3,217,132 Nonoperating Revenues (Expenses) Investment Earnings 181,241 Net Increase (Decrease) in the Fair Value of Investments (232,804) Gain/(Loss) on Sale of Capital Assets 19,321 Interest Expense (1,891,147) Net Nonoperating Revenues (Expenses) (1,923,389) Income Before Contributions, Other Revenue, and Transfers 1,293,743 Capital Contributions, Other Revenue, and Transfers Transfers In 306,693 Transfers Out (129,242) Total Capital Contributions, Other Revenue, and Transfers 177,451 Changes in Net Position 1,471,194 Total Net Position - Beginning 43,803,809 Prior Period Adjustment (62,800) Total Net Position - Beginning, as Restated 43,741,009 Total Net Position - Ending $ 45,212,203 The accompanying notes to the financial statements are an integral part of this statement. CITY OF PARIS, TEXAS Statement 9 Statement of Cash Flows Proprietary Funds Year Ended September 30, 2021 Water and Sewer Enterprise Fund Cash Flows from Operating Activities Receipts from Customers and Users $ 16,278,467 Other Receipts 3,078,369 Payments to Suppliers, Contractors, and Service Providers (7,303,474) Payments to Employees for Salaries and Benefits (3,194,080) Net Cash Provided by Operating Activities 8,859,282 Cash Flows from Noncapital Financing Activities Transfers In 306,693 Transfers Out (129,242) Net Cash Provided (Used) by Noncapital Financing Activities 177,451 Cash Flows from Capital and Related Financing Activities Proceeds Received from Sale of Capital Assets 19,321 Acquisition and Construction of Capital Assets (3,878,537) Proceeds from Long -Term Debt 46,280,887 Principal Paid on Capital Debt (2,300,000) Interest Paid on Capital Debt (1,540,032) Net Cash (Used) by Capital and Related Financing Activities 38,581,639 Cash Flows from Investing Activities Interest on Investments 152,498 Purchases of Investment Securities (42,131,208) Maturities of Investments 1,888,279 Net Cash (Used) by Investing Activities (40,090,431) Net Increase in Cash and Cash Equivalents 7,527,941 Cash and Cash Equivalents - Beginning 10,736,323 Cash and Cash Equivalents - Ending $ 18,264,264 The accompanying notes to the financial statements are an integral part of this statement. W CITY OF PARIS, TEXAS Statement 9 Statement of Cash Flows (Continued) Proprietary Funds Year Ended September 30, 2021 Water and Sewer Enterprise Fund Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income S 3,217,132 Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation 2,910,029 Amortization of Water Rights 35,632 Amortization of Asset Retirement Obligation 96,700 Decrease (Increase) in Accounts Receivable (284,056) Decrease (Increase) in Inventory (99,083) Decrease (Increase) in Net Pension Asset (208,823) Decrease (Increase) in Deferred Outflows of Resources (2,908,744) Increase (Decrease) in Accounts Payable and Accrued Liabilities 75,708 Increase (Decrease) in Customers' Deposits 15,473 Increase (Decrease) in Unearned Revenue 3,078,369 Increase (Decrease) in Accrued Compensated Absences 11,730 Increase (Decrease) in Asset Retirement Obligation 2,901,000 Increase (Decrease) in Net Pension Liabilities (4,054) Increase (Decrease) in Net OPER Liabilities 33,779 Increase (Decrease) in Deferred Inflows of Resources (11,510) Total Adjustments 5,642,150 Net Cash Provided by Operating Activities $ 8,859,282 The accompanying notes to the financial statements are an integral part of this statement. 26 CITY OF PARIS, TEXAS Notes to Financial Statements September 30, 2021 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 Financial Statements (Continued) September 30, 2021 I. SummM 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 Permanent Fund as follows: The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than for debt service or capital projects. The Permanent Fund is used to account for and 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. Interf ind services provided and used are not eliminated in the process of consolidation 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 Financial Statements (Continued) September 30, 2021 I. Summary of Sianificant 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 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 nornbudgeted 29 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 I. Summary of Significant Accounting Policies (Continued) F. Budgetary Information (Continued) 1. 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 1. The operating budget, which represents the financial plan for the ensuing fiscal year, includes proposed expenditures and the means of financing them. Public hearings are conducted at which all interested persons' comments concerning the budget are heard. The budget for the next fiscal year is legally enacted by the City Council through passage of an ordinance not later than the twenty-seventh day of the last month of the fiscal year. If the City Council does not enact the budget within this time period, then the budget as submitted by the City Manager becomes the legally authorized budget. 2. Excess of Expenditures Over Appropriations For the year ended September 30, 2021, 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, 2021, the City Council approved a transfer of $785,000 from various departments to other departmental line items. Expenditures exceeded appropriations in the following departments: Council $93,412, Manager $2,250, Attorney $25,146, Police $303,882, Fire $307,187, Public Works $58, Parks and Recreation $153,053, Traffic and Public Lighting $13,972, Health $2,000,060. G. Assets, Liabilities, and Equity I. Cash and Cash Equivalents For purposes of the statement of cash flows, 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. PEDC holds investments in two external investment pools, Texas Class and Lone Star Investments. Both investment pools carry investments at amortized cost, which 30 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 I. Summary of Significant Accounting Policies (Continued) G. Assets, Liabilities, and Equity (Continued) 2. Investments (Continued) approximates fair value. Investments are priced daily and compared to the carrying value. If the ratio of the fair value of the portfolio of investments to the carrying value of investments is less than .995 or greater than 1.005, the investment pools will sell investment securities, as required, to maintain the ratio at a point between .995 and 1.005. Participation in external investment pools was voluntary. Statutes authorize the City and PEDC to invest in obligations of the U. S. Treasury, direct obligations of the State of Texas, other obligations guaranteed or insured by the State of Texas or the United States, obligations of states and political subdivisions of any state meeting certain rating requirements, certificates of deposit, and fully collateralized direct repurchase agreements having a defined termination date. The City did not engage in repurchase or reverse repurchase agreement transactions during the current year. In accordance with generally accepted accounting principles, inputs to valuation techniques used to measure fair value are prioritized according to a fair value hierarchy, as follows: Level I — Fair values are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 11 — Fair values are based on generally indirect information such as quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active. Level III — Fair values are based on inputs other than quoted prices included within Level I that are unobservable and include the City's own assumptions about pricing. This fair value hierarchy gives the highest priority to Level I inputs and the lowest priority to Level III inputs. The City's investments are classified in Level It 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 Financial Statements (Continued) September 30, 2021 I. Summary 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 normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as an expense during the period incurred. Property, plant, and equipment of the primary government, as well as the component unit is depreciated using the straight-line method over the following estimated useful lives: Buildings and Improvements 20-40 years Furniture, Fixtures, and Equipment 5-10 years Vehicles 5 years Works of Art 50 years Public Domain Infrastructure 25-45 years System Infrastructure 25-30 years 6. Capital Leases 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 information. The City also reports a deferred outflow of resources related to an asset retirement obligation. See footnote IV. O. for further information. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has a deferred inflow of resources related to pensions and OPEB. See IVY. for further information. In addition, the government has one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, EMS, municipal court, and street assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amount becomes available. 32 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 Financial Statements (Continued) September 30, 2021 1. Summa of Significant Accounting Policies (Continued) H. Revenues and Expenditures/ Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 2. Property Taxes The City's property taxes are levied on October I and are due no later than January 31 of the following year. Taxes become delinquent February 1, 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. 1. 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, 2021. Statement No. 87 Leases 91 Conduit Debt Obligations 96 Subscription -Based Information Technology Arrangements 34 Adoption Required September 30, 2022 September 30, 2023 September 30, 2023 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 11. 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 $40,391,518 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 $ 5,950,108 263,364 20,556,584 (10,508,552) 6,601,672 (4,237,927) 23,102,816 (18,494,309) 52,733,342 (35,575,580 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 $15,101,680 difference are as follows: Bonds Payable S 11,830,000 Plus: Premiums on Bonds Payable (to be Amortized Over the Life of the Debt) 110,136 Tax Notes Payable 955,000 Capital Lease 792,453 Accrued Interest 101,226 Compensated Absences 1,162,865 Landfill Post -Closure Care Costs 150M0 Net Adjustment to Reduce Fund Balance — Total Governmental Funds to Arrive at Net Position — Governmental Activities S 15.101.68Q B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation "plains 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 $(641,661) difference are as follows: 35 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 $ 2,206,683 Depreciation Expense (2,848,344) Net Adjustment to Increase Net Changes in Fund Balances - Total Governmental Funds to Arrive at Changes in Net Position Of Governmental Activities L=j§QAkU Another element of that reconciliation states that "the net effect of various miscellaneous transactions involving capital assets (i.e., sales and donations) is to increase net position." The details of this $93,924 difference are as follows: In the statement of activites, only the gain on the sale of assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. $ (118,924) Donations of capital assets increase net position in the statement of activities, but do not appear in the governmental fund because they are not financial resources. 25,000 Total Governmental Funds to Arrive at Changes in Net Position of Governmental Activities $ (93,924) 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 $360,792 difference are as follows: Issuance of Debt $ (2,880,000) Amortization of Premium 12,719 Principal Repayments 3,228,073 Net Adjustment to Increase Net Changes in Fund Balances - Total Governmental Funds to Arrive at Changes in Net Position 01) of Governmental Activities $ 360,M Ill. Stewardshi12, Compliance, and Accountability Violations of Legal or Contractual Provisions Note I.F.2, on the Excess of Expenditures Over Appropriations, describes budgetary violations that occurred for the year ended September 30, 2021. CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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. At September 30, 2021, the City had deposits with a carrying amount of $34,660,384, and the bank's balances were $36,299,426. The City was not exposed to custodial credit risk since deposits are insured or collateralized with securities held by the pledging financial institution's agent in the name of the City. B. Investments As of September 30, 2021, 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 $ 594,828 AA+ 6.92 Federal National Mortgage Association 3,112,419 AA+ 5.83 Certificates of Deposit 97,962 Not Rated .58 U.S. Treasury Bills OID 10,999,310 .23 U.S. Treasury Notes 39,066,289 1.81 Paris Economic Development Corporation Texas Class Investment Pool 2,114,248 AAAm 89 Totals $ 552985,056 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, fair value of the position of LOGIC is the same as the net asset value of LOGIC shares. LOGIC issues an annual report that can be obtained upon request. The accounts remain open at September 30, 2021. However, the City had a zero balance at year end. 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 37 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) B. Investments (Continued) of the portfolio. The City's investment strategy is active. Given this strategy, the basis used by the Finance Director to determine whether market yields are being achieved shall be the Average Fed Funds rate. No other formal policy related to interest rate risk is included in the City's adopted investment policy. Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This type of risk is typically expressed in terms of the credit ratings issued by a nationally recognized statistical rating organization. The City and PEDC reduce the risk of issuer default by limiting investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas Government Code. Concentration credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. With the exception of obligations of the United States or its agencies and authorized pools, no more than 50% of the City's total investment portfolio will be invested in a single financial institution with the exception of its local depository. PEDC's investment balance 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, 2021, the City was not exposed to foreign currency risk. C. Accounts Receivable and Payable 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: 38 Nonmajor Governmental Debt Service General Receivables: $ - $ 32,709 Interest $ 55 Property Taxes 1,170,441 Sales Tax 1,553,607 Franchise 551,425 Accounts 202,111 Street Assessments 26,473 Fines 2,373,924 EMS 3,506,355 Gross Receivables 9,384,391 Less: Allowance for Uncollectibles _4( ,643,279) Net Total Receivables $$ 4,741,112 38 Nonmajor Governmental Debt Service Funds Enterprise $ - $ - $ 32,709 135,203 - - - 916 2,902,585 135,203 916 2,935,294 (33,801) - (159,122) $$ 1fl1,402 $ 916 $ 2,776,172 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) C. Accounts Receivable and Payable (Continued) Net receivable balances not expected to be collected within one year are Property Taxes - $708,496, Fines - $48,133, EMS - $419,523, and Street Assessments - $26,473. At year end, PEDC had a receivable for sales tax of $310,796. The balance is expected to be collected within one year. Accounts payable at September 30, 2021, were as follows: Accounts Wages Totals Governmental Activities General Fund $ 636,079 $ 554,479 $ 1,190,558 Total — Governmental Activities $ 636,079 $ 554,479$ 1,190,558_ Business -Type Activities Water and Sewer Fund $ 365,229 $ 107,045 $ 472,274 Total — Business Type Activities $ 365,229 $ 107,045 $ 472,274 39 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) D. Capital Assets Capital assets activity for the year ended September 30, 2021, follows: 8,632,726 1,096,507 Balance Balance 10,028,641 9/30/20 Additions Retirements 9/30/21 Governmental Activities 3,937,205 300,722 Capital Assets, Not Being Depreciated 4,237,927 18,532,486 Land $ 5,950,108 $ - $ - $ 5,950,108 Construction in Progress 6,664,407 258,089 6,659,132 263,364 Total Capital Assets, 66,945,607 2,848,344 Not Being Depreciated 12,614,515 258,089 6,659,132 6,213,472 Capital Assets, Being Depreciated Buildings Improvements Other Than Buildings Machinery and Equipment Infastructure Total Capital Assets, Being Depreciated Less Accumulated Depreciation for Buildings Improvements Other Than Buildings Machinery and Equipment Infrastructure Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities, Capital Assets, Net 20,525,627 30,957 6,601,672 - 22,317,003 1,882,320 46,013,893 6,719,449 20,556,584 - 6,601,672 1,096,507 23,102,816 52,733,342 95,458,195 8,632,726 1,096,507 102,994,414 10,028,641 479,911 - 10,508,552 3,937,205 300,722 - 4,237,927 18,532,486 939,406 977,583 18,494,309 34,447,275 1,128,305 - 35,575,580 66,945,607 2,848,344 977,583 68,816,368 28,512,588 5,784,382 118,924 34,178,046 $ 41,127,103 $ 6,042,471 $ 6,778,056 40 $40,391,518 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) D. Capital Assets (Continued) 41 Balance Balance 9/30/20 Additions Retirements 9/30/21 Business -Type Activities Capital Assets, Not Being Depreciated Land $ 339,620 $ - $ - $ 339,620 Construction in Progress 33,953,797 3,234,457 - 37,188,254 Total Capital Assets, Not Being Depreciated 34,293,417 3,234,457 - 37,527,874 Capital Assets, Being Depreciated Plant, Pumps, and Motors 32,127,793 152,575 - 32,280,368 Distribution System 47,011,375 - - 47,011,375 Collection System 28,300,115 - - 28,300,115 Maintenance Equipment and Vehicles 4,421,499 491,505 352,676 4,560,328 Furniture and Equipment 2,054,372 - 2,054,372 Total Capital Assets, Being Depreciated 113,915,154 644,080 352,676 114,206,558 Less Accumulated Depreciation for Plant, Pumps, and Motors 26,385,521 650,877 - 27,036,398 Distribution System 31,596,141 1,417,771 33,013,912 Collection System 21,186,961 560,157 - 21,747,118 Maintenance Equipment and Vehicles 3,741,887 221,382 352,676 3,610,593 Furniture and Equipment 1,619,583 59,842 - 1,679,425 Total Accumulated Depreciation 84,530,093 2,910,029 352,676 87,087,446 Total Capital Assets, Being Depreciated, Net 29,385,061 (2,265,949) - 27,119,112 Business -Type Activities, Capital Assets, Net 63,678,478 968,508 - 64,646,986 Intangible Asset — Water Rights 4,113,119 - - 4,113,119 Less Accumulated Amortization 870,565 35,632 - 906,197 Total Intangible Asset - Water Rights, Net 3,242,554 (35,632) - 3,206,922 Business -Type Activities, Capital and Intangible Assets, Net $66,921,032 $ 932,876 $ $67,853,908 41 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) D. Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities General Government $ 115,512 Public Safety 671,392 Public Works, Including Depreciation of General Infrastructure Assets 1,596,215 Health 212,787 Culture and Recreation 120,598 Cox Field Airport 131,840 Total Depreciation Expense — Governmental Activities S 2,848,3444. Business -Type Activities Water and Sewer $ 2.910,029 Total Depreciation Expense — Business -Type Activities $ 2.910.029 E. Deferred Compensation Plan The City offers its employees two deferred compensation plans created in accordance with Internal Revenue Code Section 457. F. Employee Retirement Systems and Plans The City maintains a nontraditional defined benefit retirement plan for all full-time employees except for firefighters and a single -employer, defined benefit plan for firefighters. 1. Texas Municipal Retirement System Plan Description The City of Paris participates as one of 895 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six -member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension pian 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 annual comprehensive financial report (ACFR) that can be obtained at www.imrs.com. All eligible employees of the city are required to participate in TMRS. 42 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 employee's retirement benefits are calculated based the sum of the employee's contributions, with interest, and the city -financed monetary credits, with interest. Employees may choose to receive their retirement benefit in one of seven payments options. Employees may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24, or 36 monthly payments calculated using the retiree life only option, but this lump sum cannot exceed 75% of the member's contributions and interest. City -financed monetary credits are composed of three sources: prior service credits, current service credits, and updated service credits. Prior service credit is granted when joining TMRS. It includes a montearty credit equal to the accumulated value of the percentage of prior service credit selected by the City (from 10% to 1000/6), multipled by an employee's contributions that would have been made, based on the average salary prior to TMRS participation, for the number of months the employee was employed by that city before joining TMRS, accruing 3% annual interest and including the matching ratio adopted by the City. Current service credit is a monetary credit for service performed by an employee and is based on a percent (100%, 150%, or 200%) of the employee's total contributions and interest credits (commonly referred to as the City's Matching Ratio). The City designates the rate of their employee contributions (5%, 6%, or 7% of gross compensation) and interest is credited on contribution balances annually at a guaranteed minimum 5% rate. A change in the City's matching ratio is applied prospectively. Updated service credit is an optional monetary credit that the City may grant annually or on an ad hoc or repeating basis, and it may increase an employee's monthly retirement benefit. In calculating the updated service credit, TMRS looks at the changes in the employee's salary over their career and any changes the City has made to its TMRS plan, such as the employee contribution rate or the City's matching ratio. Although the updated service credit may increase the employee's retirement benefit, the updated service credit does not affect the amount of contributions in an employee's account or the amount an employee will receive if they refund. 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: Plan Year 2020 Employee Deposits Rate 6% Matching Ratio (City to Employee) 2 to 1 A Member is Vested After 5 Years Service Retirement Eligibility (Expressed As Age/Years of Service) 60/5,0/20 Updated Service Credit 0% Annuity Increase to (Retirees) 0% of CPI 43 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 1. Texas Municipal Retirement System (Continued) Employees Covered by Benefit Terms. At the December 31, 2020, valuation and measurement date, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 236 Inactive Employees Entitled to but not yet Receiving Benefits 157 Active employees 234 Total 627 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of an employee's gross earnings, and the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 6% of their annual gross earnings during the fiscal year. The contribution rates for the City were 7.18% and 6.78% in calendar years 2020 and 2021, respectively. The City's contributions to TMRS for the year ended September 30, 2021, were $809,036 and were equal to the required contributions. Net Pension Liability The City's Net Pension Liability was measured as of December 31, 2020, and the Total Pension Liability (TFL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial Assumpfions The Total Pension Liability in the December 31, 2020, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 3.5% to 11.5%, including inflation Investment Rate of Return 6.75% 44 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 1. Texas Municipal Retirement System (Continued) Actuarial Assumptions (Continued) Salary increases were based on a service -related table. For calculating the actuarial liability and the retirement contribution rates, the gender -distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are projected on a fully generational basis by scale UMP to account for future mortality improvements. Based on the size of the city, rates are multipled by an additional factor of 100%. For disabled annuitants, the mortality tables for healthy retirees are used with a 4 -year set -forward for males and a 3 -year set -forward for females. In addition, a 3.5% and 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed from the actuarial investigation of the experience of TMRS over the four year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2019 valuation. The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting 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 Global Equity Core Fixed Income Non -Core Fixed Income Real Return Real Estate Absolute Return Private Equity Total Taraet Allocation ER 30.0% 10.0 20.0 10.0 10.0 10.0 10.0 100.00/0 Long -Tenn Expected Real Rate of Return (Arithmetic) 5.30% 1.25 4.14 3.85 4.00 3.48 7.75 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 1. Texas Municipal Retirement System (Continued) Discount Rate A single discount rate of 6.75% was used to measure the Total Pension Liability as of December 31, 2020. This single discount rate was based on the expected rate of return on pension plan investments of 6.75%. Based on the stated assumptions and the projection of cash flows the city's fiduciary net position and future contributions were sufficient to finance the future benefit payments of current plan members for all projection years. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. The projection of cash flows used to determine the single discount rate for the city assumed that the funding policy adopted by the TMRS Board will remain in effect for all future years. Under this funding policy, the city will finance the unfunded actuarial accrued liability over the years remaining for the closed period existing for each base in addition to the employer portion of all future benefit accruals. Net Pension Liability and Changes in the Pension Liability Balance at 12/31/2019 Changes for the year: Service Cost Interest Change of Benefit Terms Difference Between Expected and Actual Experience Changes of Assumptions Contributions – Employer Contributions – Employee Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Administrative Expense Other Changes Net Changes Balance at 12/31/2020 Increase (Decrease) 852,067 712,034 4,972,797 (3,731,229) (3,731,229) (32,223) - (1,257) 1,475,391 2,772,189 $ 67,105,668 Sensitivity of the Net Pension Liability to Changes in the Discount Rate (852,067) (712,034) (4,972,797) 32,223 1,257 (1,296,798) S (1,272,101) 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: 46 Plan Net Pension Total Pension Fiduciary Liability Liability Net Position (Asset) - (a) (b) —(a) – (b) 65,630,277 $652605,580 $ 24,697 1,184,350 - 1,184,350 4,344,087 4,344,087 (321,817) (321,817) 852,067 712,034 4,972,797 (3,731,229) (3,731,229) (32,223) - (1,257) 1,475,391 2,772,189 $ 67,105,668 Sensitivity of the Net Pension Liability to Changes in the Discount Rate (852,067) (712,034) (4,972,797) 32,223 1,257 (1,296,798) S (1,272,101) 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: 46 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 1. Texas Municipal Retirement System (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate (Continued) I% Decrease in Discount Rate 5.75% City's Net Pension Liability (Asset) $6,842,820 Pension Plan Fiduciary Net Position Discount Rate 6.75% $(1,272,101) 1% Increase in Discount Rate 7.75% $(8,051,758) 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 wwwamrs. com.. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2021, the City recognized pension expense of $(513,056). At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Economic Experience (Net of Current Year Amortization) Changes in Actuarial Assumptions Differences Between Projected and Actual Investment Earnings (Net of Current Year Amortization) Contributions Subsequent to the Measurement Date Total Deferred Outflows Deferred Inflows of Resources of Resources $ $ 366,155 48,455 - 1,856,729 600,218 - $ 600,218 $ 2,271L339 $600,218 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, 2022. 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, 2022 $ (931,772) 2023 (70,589) 2024 (1,160,094) 2025 (108,884) Thereafter $ (2,271,339) 47 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 2. Firefighters' Relief and Retirement Fund Plan Description The Paris Firefighters' Relief and Retirement Fund, a single -employer defined benefit pension plan, is established under the authority of the Texas Local Firefighters' Retirement Act and is administered by a Board of Trustees made up of three members elected from and by the fund's members, two representatives of the City of Paris, Texas, and two citizen members. Specified plan provisions are governed by a plan document and a trust agreement executed by the Board of Trustees. The plan is an independent entity for financial reporting purposes and issues a stand-alone financial statement. A copy of the audited financial statement may be obtained from the Board of Trustees, Paris Firefighters' Relief and Retirement Fund, P.O. Box 9037, Paris, Texas 75461. Governing state law requires public retirement systems to hire an actuary to make a valuation at least once every three years of the assets and liabilities of the system and to determine if the assumptions and methods are reasonable. The plan financial statements are prepared using the accrual basis of accounting. All plan investments are reported at fair value. RUM The plan covers current and former 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 plan at a rate of 16% of pay. Employee contributions are "picked up" by the City of Paris, Texas, as permitted under Section 414(h)(2) of the Internal Revenue Code. Fund members receive credit for service for the period during which they make contributions to the plan. The fund was established August 28, 1941, and was most recently amended effective August 31, 2019. Contributions The City's annual required contribution to the plan for fiscal year 2021 was based on a payroll of $3,009,497 and amounted to $421,330. Covered employees made contributions of $481,520. Employees Covered by Benefit Terms At the December 31, 2020, valuation date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 40 Inactive employees entitled to but not yet receiving benefits 8 Active employees 48 Total 96 48 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 completion of 20 years of service and attainment of age 55 or (b) the date as of which the sum of the member's age and service equals 80 provided the member has completed 20 years of service. A member who retires under the service retirement provisions of the fund will 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. In lieu of the normal form of benefit, a member may elect at the time of his/her retirement to receive a modified monthly amount payable under one of several optional forms of payment. An active member will qualify for a disability benefit if he/she becomes disabled for either physical or mental reasons. 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, 2021, and the most current available information required for disclosure under GASB Statement No. 67 is based on an actuarial valuation as of December 31, 2020. The actuarial cost method used in the December 31, 2020, valuation is the entry age service 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 assumed rate of return was developed using both the plan's historical rates of return and expected future rates of return. Rate of return experience studies have been performed in connection with the plan's valuations. The demographic assumptions were chosen based on expected future rates of retirement, mortality, disability, and termination. Mortality was taken from published studies and was updated to reflect expected future improvement. Retirement and salary increase rates were developed based on the plan's own experience. Disability and termination rates were based on published rates, adjusted as necessary, to conform to the plan's own experience. Both economic and demographic assumptions were further tested through the calculation of the plan's aggregate experience with respect to both demographic decrements and economic assumptions. 49 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 12/31/2019 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 12/31/2020 Total Pension Liability (a) $ 15,392,226 263,769 1,098,206 125,175 Increase (Decrease) Plan Fiduciary Net Position (b) $ 4,497,794 388,839 444,388 482,463 (1,016,641) (1,016,641) (25,739) 470,509 273,310 $ 15,862,735 $ 4,771,104 Net Pension Liability (Asset) (a) — (b) $ 10,894,432 263,769 1,098,206 125,175 (388,839) (444,388) (482,463) 25,739 197,199 $ 11,091,631 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 1 -percentage -paint lower (6.25%) or 1 -percentage -point higher (8.25010) than the current rate: Net Pension Liability 1% Decrease in Discount Rate 6.25% $12,795,460 Pension Plan Fiduciary Net Position Discount Rate 7.25% $11,091,631 1% Increase in Discount Rate 8.25% $9,661,244 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, 2021, the City recognized pension expense of $612,942. 50 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) F. Employee Retirement Systems and Plans (Continued) 2. Firefighters' Relief and Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Difference Between Projected and Actual Investment Earnings Contributions Subsequent to the Measurement Date Total Deferred Outflows Deferred Inflows of Resources of Resources $ - $ 506,147 886,854 - - 251,877 327,379 1,214,233 $ 758,024 $327,379 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, 2022. 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, 2022 $ (48,586) 2023 48,105 2024 (81,760) 2025 (18,716) 2026 58,579 Thereafter 171,208 Total $ 128,830 G. Other Post Employment Benefit (OPEB) Obligations 1. Supplemental Death Benefits Fund Plan Description The City also participates in the single -employer defined benefit program, which operates like a 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 participants with no segregation of assets, and therefore doesn't meet the definition of a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB). The City elected, by ordinance, to provide group -term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue particiapation in the SDBF by adopting an ordinance before November I of any year to be effective the following January 1. 51 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) G. Other Post Employment Benefit (OPEB) Obligations (Continued) 1. Supplemental Death Benefits Fund (Continued) Benefits 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. As the SDBF covers both active and retiree participants with no segregation of assets, the SDBF is considered to be an unfunded OPEB plan (i.e., no assets are accumulated). Employees Covered by Benefit Terms At the December 31, 2020 valuation and measurement date, the following employees were covered by benefit terms: Inactive employees or beneficiaries currently receiving benefits 178 Inactive employees entitled to but not yet receiving benefits 46 Active employees 234 Total 458 Contributions Contributions are made monthly based on the covered payroll of employee members of the participating member city. The contractually required contribution rate is determined annually for each city. The rate is based on mortality and service experience of all employees covered by the SDBF and the demographics specific to the workforce of the City. There is a one-year delay between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when the rate goes into effect. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life insurance during employees' entire careers. Employees of the City were not required to contribute to the OPEB plan during the fiscal year. The contribution rates for the City were 0.25% and 0.36% of gross earnings in calendar year 2020 and 2021. The City's contributions to TMRS SDBF for the year ended September 30, 2021 were $39,141 and were equal to the required contributions. W CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) G. Other Post Employment Benefit (OPEB) Obligations (Continued) 1. Supplemental Death Benefits Fund (Continued) Changes in the OPEB Liability Balance at 12/31/2019 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 12/31/20 Increase (Decrease) Total OPEB Liability $ 1,179,707 42,722 32,883 (34,781) 175,630 (10,681) 205,773 1,385,480 The following presents the total SDBF OPEB liability of the City, calculated using the discount rate of 2.00%, 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 (1.00%) or I -percentage -point higher (3.00%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate 1.00% 2.00% 3.00% Net Pension Liability $1,677,266 $1,385,480 $1,157,846 Supplemental Death Benefits Fund Net Position Detailed information about the plan's net position is available in a separately -issued TMRS financial report. That report may be obtained on the Internet at www.Imrs.com. 53 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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, 2021, the City recognized OPEB expense in the amount of $133,932. At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEBs from the following sources: Difference Between Expected and Actual Economic Experience (Net of Current Year Amortization) Changes in Actuarial Assumptions Differences Between Projected and Actual Investment Earnings (Net of Current Year Amortization) Contributions Subsequent to the Measurement Date Total Deferred Outflows Deferred Inflows of Resources of Resources 256,189 31,870 $ 56,031 26,855 288,059 82,886 $31,870 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, 2022. 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, 2022 $ 57,861 2023 43,327 2024 52,166 2025 19,949 2026 - Thereafter - Total $ 173,303 2. City of Paris Retiree Health Care Plan Plan Description The City has in effect a single employer plan (die Plan) adopted by City Council resolution whereby persons who retire before age sixty-five will be provided health care coverage until they become sixty-five. The contribution requirements of the government are established and may be amended by the governing council. The Plan covers retiree benefits with no segregation of assets, and therefore doesn't meet the definition of a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB), The Plan issues a stand-alone financial report. 54 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) G. Other Post Employment Benefit (OPER) 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, 2020, the maximum amount of the monthly subsidy is $565. Employees Covered by Benefit Terms At the December 31, 2020 valuation and measurement date, the following employees were covered by benefit terms: Inactive Retirees or Beneficiaries Currently Receiving Benefits I I Inactive, Nonretired Members - Active employees 79 Total 90 Contributions The City's contributions are financed on a pay-as-you-go basis. For the year ended September 30, 2021, the contributions were approximately $83,492. 55 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 2.00%, 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 (1.00%) or I -percentage -point higher (3,00%) than the current rate: 1% Decrease in Discount Rate 1.00% Net OPEB Liability $1,805,546 1% Increase in Discount Rate Discount Rate 2.00% 3,00% $1,711,750 $1,620,124 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: Current Healthcare Cost Trend Rate 1% Decrease Assumption 1% Increase Net OPEB Liability $1,573,968 $1,711,750 $1,864,530 56 Increase (Decrease) Total OPEB Liability Balance at 12/31/2019 $ 1,620,789 Changes for the year: Service Cost 45,329 Interest 44,410 Change of Benefit Terms - Difference Between Expected and Actual Experience (10,649) Changes of Assumptions 68,964 Contributions — Employer - Contributions — Employees Net Investment Income - Benefit Payments, Including Refunds of Employee Contributions (57,093) Administrative Expense - Other Changes - Net Changes 90,961 Balance at 12/31/20 $ 1,711,750 The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 2.00%, 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 (1.00%) or I -percentage -point higher (3,00%) than the current rate: 1% Decrease in Discount Rate 1.00% Net OPEB Liability $1,805,546 1% Increase in Discount Rate Discount Rate 2.00% 3,00% $1,711,750 $1,620,124 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: Current Healthcare Cost Trend Rate 1% Decrease Assumption 1% Increase Net OPEB Liability $1,573,968 $1,711,750 $1,864,530 56 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) G. Other Post Employment Benefit (OPER) 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, 2021, the City recognized OPER expense in the amount of $83,492. At September 30, 2021, 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) $ - $ 127,449 Changes in Actuarial Assumptions 152,311 18,752 Contributions Subsequent to the Measurement Date 63,679 - Total $ 215,990 $ 146,201 $63,679 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, 2022. 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, 2022 $ 2,014 2023 2,014 2024 (4,322) 2025 2,704 2026 3,700 Thereafter - Total $ 6,110 57 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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 tinder these contracts to these entities during the year ended September 30, 2021, were approximately $3,024,113. 2. Construction Commitments The City has active construction projects as of September 30, 2021. At year-end, the City's commitments with contractors are as follows: Project To Date Commitment Sewer and Water System Replacement and Related Street Reconstruction $ 26,952,773 1,216,540 Total $ 26,952,773 $ 1,216,540 3. Water Storage Commitment The City has the right to utilize an undivided 100% of the usable conservation storage space in Pat Mayse Lake between elevations 451 feet and 415 feet above sea level which is estimated at 109,600 acre feet. The Government reserves the right to control and use all storage in accordance with project purposes, to take such measures to preserve life and or property including the right not to make downstream releases and to inspect, maintain, or repair the project. The City will be required to pay 10.526% of the cost of joint -use repair, rehabilitation, and replacement and 26.659% of the annual experienced joint -use operation and maintenance of the project. 4. Civic Center Contract Commitment The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby three - sevenths of the hotel/motel tax is to be dedicated to a fund to be used for improving, enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through September 30, 2021, 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. The balance outstanding at September 30, 2021 is $283,307. 58 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) H. Water Sales and Commitments (Continued) 6. Other Commitments - PEDC American SpiralWeld - On October 1, 2018, the Board of Directors reached an incentive agreement with American SpiralWeld Pipe Company, LLC. PEDC will invest up to $4,700,000 in cash, land, and improvements in connection with a new manufacturing facility, job creation, and employment retention. The remaining balance is estimated to be $1,000,000. Huhtamaki — On September 17, 2019, the Board of Directors reached a performance 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 $102,000. Metro Gate — On January 22, 2021, the Board reached a performance agreement with Metro Gate and Manufacturing Company, Inc. PEDC will provide $120,000 for the creation of 40 full-time employees paid out in installments over 5 years and $40,000 for expected capital expenditures for a total of $160,000. The remaining balance is estimated to be $120,000. 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, 2021. 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 teasing 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 $ 617,114 348,241 $ 268,873 59 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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, 2021, are as follows: Year Ending September 30, Amount 2022 $ 72,353 2023 72,353 2024 72,353 2025 72,353 Total Minimum Lease Payments 289,412 Less: Amount Representing Interest (20,539) Present Value of Net Minimum Lease Payments 268,873 Less: Current Maturities of Capital Lease Obligation (64,285) Long -Term Portion of Capital Lease Obligation $ 204,588 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 $ 975,185 Less: Accumulated Amortization 451,689 Capital Lease Equipment, Net $ 523,496. The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2021, are as follows: Year Ending September 30, Amount 2022 $ 114,337 2023 114,337 2024 114,337 2025 114,337 2026 114,337 Total Minimum Lease Payments 571,685 Less: Amount Representing Interest (48,189) Present Value of Net Minimum Lease Payments 523,496 Less: Current Maturities of Capital Lease Obligation (98,628) Long -Term Portion of Capital Lease Obligation $ 424,868 K. Long -Term Liabilities 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. 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 W CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) K. Long -Term Liabilities (Continued) 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 -Term Obligations: $4,505,000 General Obligation Refunding Bonds, Series 2012, due in annual installments varying from $395,000 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 $405,000 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 purchase 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 $150,000 to $165,000 with final payment due June 15, 2032. Interest is payable semi- annually at rates ranging from 0.56% 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. $33,925,000 General Obligation Bonds, Series 2013, due in annual installments varying from $1,730,000 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 $355,000 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 1, 2016, at a premium for the purpose of constructing and acquiring improvements and equipping the City's waterworks and sewer system and for replacing and extending water distribution lines and sewer collection lines and construction repairs to streets and drainage infrastructure necessitated by such water and sewer line construction. Voters approved the issuance of $45,000,000 in tax bonds. The bonds are reported as obligations of the Enterprise Fund. 61 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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): $1,390,000 General Obligation Bonds, Series 2018, due in annual installments varying from $130,000 to $220,000 with final payment due June 15, 2028. Interest is payable semi-annually at 2.59%. The principal installments of this bond are not subject to redemption prior to maturity. These bonds were issued May 1, 2018, in the amount of $1,200,000 for the purpose of constructing and acquiring improvements and equipping the City's waterworks and sewer system and for replacing and extending water distribution lines and sewer collection lines and construction repairs to streets and drainage infrastructure necessitated by such water and sewer line construction and in the amount of $190,000 to pay the costs of construction, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections including, utility relocation, landscapting, sidewalks, traffic safety and operational improvements, the purchase of any necessary right-of- way, drainage and other related costs. The bonds are reported as Enterprise Fund debt and General Obligation debt. $1,500,000 Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020, due in annual installments varying from $140,000 to $165,000 with final payment due June 15, 2030. Interest is payable semi- annually at 1.95%. The certificates of this series are not subject to redemption prior to maturity. These bonds were issued February 1, 2020 for the purpose of paying all or a portion of the City's contractual obligations incurred in connection with the renovation, repair and other improvement of the City's Love Civic Center and paying legal, fiscal and engineering fees in connection with such projects. The bonds are reported as General Obligation debt. $1,115,000 Tax Notes, Series 2020, due in annual installments varying from $160,000 to $195,000 with final payment due June 15, 2026. Interest is payable semi-annually at 1.05%. The principal installments of this note are not subject to redemption prior to maturity. The note was issued November 1, 2020 for the purpose of paying contractural obligations incurred or to be incurred for the construction of any public work, for the purchase of materials, supplies, equipment, machinery, buildings, lands and right-of-way for the City's authorized needs and purposes, and to pay costs of professional services. The note is reported as General Obligation debt. $1,765,000 General Obligation Refunding Bonds, Series 2020, due in annual installments varying from $180,000 to $210,000 with final payment due December 15, 2029. Interest is payable semi-annually at 1.24%. On December 15, 2020, the City issued this series to refund Outstanding Combination Tax and Revenue Certificates of Obligation, Series 2010 ($3,005,000) bearing interest ranging from 3.0% to 4.2%. The net proceeds of $1,772,711 (after payment of various fees, outstanding principal balance, and accrued interest) were deposited in the Old Paying Agent account to refund the Refunding Bonds on the Redemption Date in accordance with the Deposit Agreement. The issuance of the bonds produced a present value debt service savings of $188,730 and an actual debt service savings of $201,195. The bonds are reported as General Obligation Debt. $43,855,000 Combination Tax and Surplus Revenue Certification of Obligation, Series 2021, due in annual installments varying from $620,000 to $2,160,000 with final payment due on December 15, 2050. Interest is payable semi-annually at rates ranging from 2.0% to 5.0%. On December 15, 2030, or any date thereafter, the certificate may be redeemed prior to their scheduled maturities at the City's option. The bonds were issued on May 12, 2021, at a premium for the purpose of refurbishment of portions of the existing waste water treatment plant as needed in connection with the construction of a new waste water treatment plant. Voters approved the issuance of $46,065,000 in tax bonds. The bonds are reported as obligations of the Enterprise Fund. 62 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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): 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, 2021, the fund balances in the Interest and Sinking Funds are $1,928,672. 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. A summary of long-term liability transactions for the year ended September 30, 2021, follows: 63 Balance Balance September 30, September 30, Due Within 2020 Additions Reductions 2021 One Year Governmental Activities Debt Payable Bonds Payable $ 12,975,000 $ 1,765,000 $ 2,910,000 $ 11,830,000 $ 1,225,000 Tax Notes Payable - 1,115,000 160,000 955,000 185,000 Premium 122,856 - 12,719 110,137 - Capital Leases 950,526 - 158,073 792,453 162,913 Total Debt Payable 14,048,382 2,880,000 3,240,792 13,687,590 1,572,913 Compensated Absences 1,118,504 742,958 698,598 1,162,864 116,287 Landfill Post -Closure Care Costs 150,000 - - 150,000 - Governmental Activities Long -Tenn Liabilities $ 15,316,886 $ 3,622,958 $ 3,939,390 $ 15,000,454 $ 1,689200 Business -Type Activities Debt Payable Bonds Payable $ 38,875,000 $ - $ 2,300,000 $ 36,575,000 $ 2,345,000 Tax Notes Payable - 43,855,000 - 43,855,000 - Premium 794,492 2,425,887 107,373 3,113,006 - Total Debt Payable 39,669,492 46,280,887 2,407,373 83,543,006 2,345,000 Compensated Absences 211,043 186,856 175,126 222,773 22,277 Business -Type Activities Long -Term Liabilities $ 392880,535 $ 46,467,743 $ 2,582,499 $ 83,765,779 $ 2,362,277 63 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 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) Advance Refunding The City issued $1,765,000 in general obligation bonds with an interest rate of 1.24%. The proceeds were used to advance refund $1,740,000 of outstanding 2010 Combination Tax and Revenue Certificates of Obligation which had interest rates ranging from 3.0% to 4.2%. Long-term debt service requirements for the next five years and after, in five year increments, are as follows: Year Ending Balance Balance PEDC September 30, September 30, Due Within Principal 2020 Additions Reductions 2021 One Year Component Unit $ 1,410,000 $ 296,074 $ 2,345,000 Note Payables $ 1,557,394 $ - $ 335,640 $ 1,221,754 $ 104,446 Component Unit 269,466 3,655,000 2,645,865 Long -Term Liabilities $ 1,557,394 $ - $ 335,640 $ 1,221,754 $ 104,446 For governmental activities, pension -related debt and compensated absences are liquidated by the general fund. Advance Refunding The City issued $1,765,000 in general obligation bonds with an interest rate of 1.24%. The proceeds were used to advance refund $1,740,000 of outstanding 2010 Combination Tax and Revenue Certificates of Obligation which had interest rates ranging from 3.0% to 4.2%. Long-term debt service requirements for the next five years and after, in five year increments, are as follows: Year Ending General Obligation Water and Sewer PEDC September 30, Principal Interest Principal Interest Principal Interest 2022 $ 1,410,000 $ 296,074 $ 2,345,000 $ 2,942,296 $ 104,446 $ 44,377 2023 935,000 269,466 3,655,000 2,645,865 108,461 40,363 2024 955,000 249,868 4,440,000 2,460,311 112,238 37,113 2025 980,000 229,759 4,650,000 2,249,651 116,284 33,593 2026 995,000 209,168 3,530,000 2,072,538 120,915 28,962 2027-2031 3,960,000 761,338 18,530,000 8,147,963 446,065 83,704 2032-2036 2,915,000 344,423 14,910,000 4,282,544 213,345 11,217 2037-2041 635,000 18,098 8,840,000 2,641,768 - - 2042-2046 - - 9,215,000 1,721,875 - - 2047-2051 - - 10,315,000 618,725 - - Totals $12,785,000 $22378,194 $80,430,000 $29,783,536 $1,221,754 $279,329 PEDC has an outstanding $697,000, Note Payable, issued November 27, 2018, due in monthly installments of $5,086 through May 27, 2027, bearing an interest rate of 3.75%. At September 30, 2021, the balance of the Note Payable was $349,386. 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 of 3.75%. At September 30, 2021, the balance of the Note Payable was $872,368. 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. 64 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) L. Interfund Transfers During the year ended September 30, 2021, the City made transfers from the Water and Sewer fund to the Debt Service fund of $99,921 to make debt service payments. The City also made a transfer from the Special Revenue fund to the General Fund related to reclassification of funds. The City also made a transfer of bond proceeds from the Debt Service fund to the General fund of $1,078,000. Other minor transfers were made between funds making up transfers of M. Restricted Net Position and Restricted Asset Accounts In order to safeguard the financial integrity of the water and sewer system, the City Council approved a resolution establishing and maintaining funds comparable to those required by the revenue bonds refunded in 2010. At September 30, 2021, these accounts, shown as cash and investments on the Statement of Net Position — Proprietary Funds, are as follows: Reserve Fund Contingency Fund $ 8,321,837 1,929,727 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: Cash and Cash Deposit and Equivalents Water $ - Lake Crook 3,811 Debt Other and Transfers Bond Reserves and Sinking Funds General Service Governmental Sewer Out General $ - $ 48,923 $ 446,595 $306,693 $ 802,211 Debt Service 1,078,500 - - - 1,078,500 Other Governmental 1,643,419 - 11,653 1,655,072 Water and Sewer 29,321 99,921 - - 129,242 Transfers In $ 2,751,240 $ 148,844 $ 458,248 $306,693 $3,6652025 M. Restricted Net Position and Restricted Asset Accounts In order to safeguard the financial integrity of the water and sewer system, the City Council approved a resolution establishing and maintaining funds comparable to those required by the revenue bonds refunded in 2010. At September 30, 2021, these accounts, shown as cash and investments on the Statement of Net Position — Proprietary Funds, are as follows: Reserve Fund Contingency Fund $ 8,321,837 1,929,727 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: 65 Certificates of Cash and Cash Deposit and Equivalents Grants Receivable $ - Lake Crook 3,811 Contingency 1,381,976 Loan 35,333 Bond Reserves and Sinking Funds 5,934,968 Construction 2,988,522 Other 392,966 Total Restricted Assets $ 10 737,576 65 Certificates of Deposit and Other Other Investments Receivables $ - $ 403,240 547,751 - 2,386,869 - 39,286,919 - $ 42,221,539 $ 403,240 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) N. Related Party 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. O. 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. The City has incurred certain asset retirement obligations related to the operation of its wastewater utility system. The U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality regulates wastewater utility system closure and post closure requirements. Environmental engineers calculated the asset retirement obligation based on the estimated current cost of remediation and removal of the contamination and contaminated sludge and dirt in the wastewater treatment facilities. The estimated liability of the legally required closure costs for the wasterwater utility system was estimated as of September 30, 2021 to be $2,901,000. The estimated remaining wastewater utility system life is 30 years. The actual cost of closure and post closure may be higher due to inflation, changes in technology, or changes in wasterwater utility system laws and regulations. At September 30, 2021, there were no assets restricted to pay this liability. P. Tax Abatements As of September 30, 2021, the City provides tax abatements through two progams-Industrial and Residential: 1. Industrial abatements are possible for manufacturing, research, regional distribution, regional services, regional tourist entertainment, basic industry, and any primary jobs creating industry. The property involved must be newly created or improvements to an existing facility. Abatements may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and office space and improvements necessary to the operation and administration of the facility. Inventory and supplies are not eligible for abatement. The City Council grants abatements on a case by case basis. The abatement is stated as a percentage of the eligible property under consideration and for a specified period of time up to ten years. The City has a written industrial tax abatement policy. 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%, Year 2-100%, Year 3-80%, Year 4-60%, and Year 5-40%. The City has a standard written residential tax abatement agreement. Provisions for recapturing abated taxes, if any, are included in this policy. Tax Abatement Pro ram Industrial Incentives 66 Amount of Taxes Abated 2020-21 $ 1,256,201 CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 IV. Detailed Notes on All Activities and Funds (Continued) Q. Prior Period Adjustment During fiscal year 2021, the City determined that an adjustment was necessary to the adjust revenue and expenses that should have been recorded in the prior fiscal year. The prior period adjustment totaled $52,060 for governmental funds and $62,800 for proprietary funds. The restated beginning fund balance for governmental funds and net position for proprietary funds is $17,098,017 and $43,741,009, respectively. The restated net position for governmental activities is $36,994,500. R. Subsequent Event In December 2021, the City approved a note with Paris Economic Development Corporation in the amount in the amount of $2,500,000. The initial interest rate is 2.14% paid monthly and will be adjusted every 36 months, never falling below 2.0%, with a maturity date of December 27, 2031. 67 REQUIRED SUPPLEMENTARY INFORMATION O G � a 40. Uj � +O• RS N ON � � M Lr. p CZ :3 .2 Z b cn�aGj TU 4 :2 O N CO+I (D N 6 4 h itT s6DDM r- Nr- I'D I'D N iD 1n-� N , � � C 000 . 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U) 10 0 fl o 4) C/I 0 u 2 40. 2 0— "a CA W '00 < < C to a > 0 0 A 6 Z z.0 ;t:: 0 .0 0 Z U .0 C* 0 0 0 0 .< u u d u E 0 70 01- X 0 4. 0 y E 0 0 F* q E E 0 t4 0 0 > •V C> 1• � E �: 40- E C4 -- 0 N Lf Of E o E 2 0 0 Cd .— CL S. cn 9 E ot S� 0 N 'o — v 0 Z> E 4. of 0 C,4 C 0 0 0= U. A - * -0 -0 rn 0— %n 42 04-. C� to co .2 "t3 0 4) S. 5.5 a =0 co . 0 P. t: 79 0-12 R 04 �a � 'a 0 40. 0 &4.1 u,, 0 0 0 C 4)- 0 N 0 "a LT'' a C6 of 0 5.9 'a tn W) 0 o 40. 0 CL. U) 10 0 fl o 4) C/I 0 u 2 40. 2 0— "a CA W '00 < < C to a > 0 0 A 6 Z z.0 ;t:: ! 1 iw joi ! CITY OF PARIS, TEXAS Nonmajor Governmental Funds September 30, 2021 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. 76 CITY OF PARIS, TEXAS Schedule 9 Combining Balance Sheet - Nonmajor Governmental Funds September 30, 202I M 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 $ 220,509 $ 779,285 $ 76,935 $1,076,729 $ 581 $ 1,077,310 Investments 86 - - 86 97,962 98,048 Receivables (Net) - 916 - 916 - 916 Total Assets $ 220,595 $ 780,201 $ 76,935 $1,077,731 $ 98,543 $ 1,176,274 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ - $ - $ - $ - $ - $ - Total Liabilities - - - - - - Fund Balances: Nonspendable Permanent Library Funds - - - - 98,543 98,543 Restricted for: Notes - - - - - - Law Enforcement - 672,627 - 672,627 - 672,627 Community Development - 107,574 - 107,574 - 107,574 Assigned: Library - - 76,935 76,935 - 76,935 Community Development 220,595 - - 220,595 - 220,595 Total Fund Balances 220,595 780,201 76,935 1,077,731 98,543 1,176,274 Total Liabilities and Fund Balances $ 220,595 $ 780,201 $ 76,935 $1,077,731 $ 98,543 $ 1,176,274 M CITY OF PARIS, TEXAS Schedule 10 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended September 30, 2021 EXPENDITURES Current General Government - 45,318 Special Revenue 45,318 Permanent - 6,911 - 6,911 - Community Community Development - - - - - - Total - 1,470 Development 1,470 Library - - Library Nonmajor Debt Service Block Special Memorial Principal Trust Governmental - Grant Revenue Funds Total Funds Funds REVENUES Sources (Uses) General Government - - - - - - Public Safety Fees and Fines $ - $ 48,152 $ - $ 48,152 $ - $ 48,152 Hotel Occupancy Taxes - 46,573 - 46,573 - 46,573 Intergovernmental - - - - - - Use of Money and Property 441 633 181 1,255 143 1,398 Miscellaneous - 61,734 2,832 64,566 - 64,566 Total Revenues 441 157,092 3,013 160,546 143 160,689 EXPENDITURES Current General Government - 45,318 - 45,318 - 45,318 Public Safety - 6,911 - 6,911 - 6,911 Community Development - - - - - - Health - 1,470 - 1,470 - 1,470 Culture and Recreation - - 1,879 1,879 - 1,879 Debt Service Transfers Out - (1,655,072) Principal - - - - - - Interest & Other Charges - - - - - - Capital Outlay Sources (Uses) General Government - - - - - - Public Safety - 35,390 - 35,390 - 35,390 Total Expenditures - 89,089 1,879 90,968 90,968 Excess (Deficiency) of Revenues Over (Under) Expenditures 441 68,003 1,134 69,578 143 69,721 Other Financing Sources (Uses) Transfers In - 458,248 - 458,248 - 458,248 Transfers Out - (1,655,072) - (1,655,072) - (1,655,072) Total Other Financing Sources (Uses) - (1,196,824) - (1,196,824) - (1,196,824) Net Changes in Fund Balances 441 (1,128,821) 1,134 (1,127,246) 143 (1,127,103) Fund Balances - Beginning 220,154 1,909,022 75,801 2,204,977 98,400 2,303,377 Fund Balances - Ending $ 220,595 $ 780,201 $ 76,935 $1,077,731 $ 98,543 $ 1,176,274 78 CITY OF PARIS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Special Revenue Fund Year Ended September 30, 2021 REVENUES Fees and Fines Hotel Occupancy Taxes Intergovernmental Interest Earned Miscellaneous Total Revenues EXPENDITURES Municipal Court Police Health Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Changes in Fund Balance Fund Balance - Beginning Budgeted Amounts Original Final $ 41,500 $ 41,500 3,375 3,375 $ Actual 48,152 46,573 633 L1 +T9e Schedule 11 Variance with Final Budget $ 6,652 46,573 (2,742) 61,734 44,875 44,875 157,092 112,217 43,250 43,250 45,318 (2,068) 40,000 40,000 42,301 (2,301) 3,500 3,500 1,470 2,030 86,750 86,750 89,089 (2,339) (41,875) (41,875) 68,003 109,878 458,248 458,248 (1,655,072) (1,655,072) (1,196,824) (1,196,824) (41,875) (41,875) (1,128,821) (1,086,946) 1,909,022 1,909,022 1,909,022 Prior Period Adjustment - - - - Fund Balance - Ending $ 1,867,147 $ 1,867,147 $ 780,201 $ (1,086,946) 79 CITY OF PARIS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Debt Service Fund Year Ended September 30, 2021 REVENUES Property Taxes Hotel Occupancy Taxes Interest Earned Total Revenues EXPENDITURES Bond Principal Retirement Interest and Fiscal Charges Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses): Refunding Bonds Issued Refunding Bonds Issue Costs Tax Notes Issued Tax Notes Issue Costs Transfers In Transfers Out Total Other Financing Sources (Uses) Net Changes in Fund Balance Fund Balance - Beginning Budgeted Amounts Original Final Actual Schedule 12 Variance with Final Budget $ 1,372,780 $ 1,372,780 $ 1,541,384 $ 168,604 - - 265,041 265,041 - - 4,777 4,777 1,372,780 1,372,780 1,811,202 438,422 1,162,193 1,162,193 3,157,193 (1,995,000) 369,688 369,688 360,552 9,136 1,531,881 1,531,881 3,517,745 (1,985,864) (159,101) (159,101) (1,706,543) (1,547,442) 166,425 166,425 1,765,000 1,598,575 (500) (500) (45,492) (44,992) - - 1,115,000 1,115,000 (36,500) (36,500) 148,844 148,844 (1,078,500) (1,078,500) 165,925 165,925 1,868,352 1,702,427 6,824 6,824 161,809 154,985 1,766,863 1,766,863 1,766,863 Fund Balance - Ending $ 1,773,687 $ 1,773,687 $ 1,928,672 $ 154,985 W CITY OF PARIS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Capital Projects Fund From Inception and Year Ended September 30, 2021 Prior REVENUES Interest Earned $ 527,958 Other 245,248 Total Revenues 773,206 EXPENDITURES City Council 646,604 Police 285,630 Fire 915,942 Community Development 725,207 Engineering 35,555 Parks and Recreation 563,384 Solid Waste 568,811 Streets and Highways 13,167,191 Health 144,232 Library 7,100 Cox Field Airport 110,667 Total Expenditures 17,170,323 Deficiency of Revenues Over Expenditures (16,397,117) Other Financing Sources (Uses): Transfers In 9,604,042 Transfers Out (2,549,549) Certificates of Obligation Issued 12,918,399 SPECIAL ITEM Proceeds from Sale of Assets 90,100 Net Changes in Fund Balance $ 3,665,875 Fund Balance - Beginning Fund Balance - Ending Current Year $ 7,144 18,000 25,144 61,540 172,505 234,045 Total $ 535,102 263,248 798,350 708,144 285,630 915,942 725,207 35,555 563,384 568,811 13,339,696 144,232 7,100 110,667 17,404,368 (208,901) (16,606,018) Schedule 13 Project Authorization (Budget) 314,109 285,630 915,942 870,350 35,555 923,781 1,181,019 8,095,265 228,000 35,000 159,100 13,043,751 (13,043,751) 9,604,042 - (2,549,549) - 12,918,399 - 90,100 (208,901) $ 3,456,974 3,836,182 $ 3,627,281 81 $ (13,043,751) C 111 1llW.V"Myjftw,4031z! TIE OPERATION OF GOVERNMENTAL FUNDS CITY OF PARIS, TEXAS Capital Assets Used in the Operation of Governmental Funds Comparative Schedules by Source September 30, 2021 and 2020 Governmental Funds Capital Assets: Land Buildings Improvements Other Than Buildings Machinery and Equipment Infrastructure Construction in Progress Total Governmental Funds Capital Assets Investments in Governmental Funds Capital Assets by Source: General Fund Capital Projects Funds Donations Total Investments in Governmental Funds Capital Assets by Source 82 2021 $ 5,950,108 20,556,584 6,601,672 23,102,816 52,733,342 263,364 Schedule 14 2020 $ 5,950,108 20,525,627 6,601,672 22,317,003 46,013,892 6,664,407 $ 109,207,886 $108,072,709 $ 69,562,588 31,978,964 7,666,334 $ 109,207,886 $ 68,693,870 31,747,955 7,630,884 $108,072,709 CITY OF PARIS, TEXAS Statistical Section September 30, 2021 This part of the City of Paris' annual comprehensive 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. 83 Tables 1-4 Tables 5 - 8 Tables 9-13 Tables 14-15 Tables 16-19 CITY OF PARIS, TEXAS Table 1 Net Assets/Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Unaudited Business -Type Activities: Net Investment in Capital Assets $ 34,499,646 $ 33,003,801 $ 33,041,432 $ 33,331,038 Restricted - - - - Unrestricted 8,496,996 10,075,150 12,172,944 13,508,734 Total Business -Type Activities, Net Position $ 42,996,642 Fiscal Year $ 45,214,376 $ 46,839,772 2012 2013 2014 2015 Governmental Activities. Net Investment in Capital Assets $ 62,031,999 $ 61,736,602 $ 61,469,190 Net Investment in Capital Assets $ 27,532,353 $ 28,732,801 $ 28,427,758 $ 28,043,910 Restricted 5,421,971 4,949,039 4,949,039 3,393,033 Unrestricted 12,700,759 12,301,829 10,023,934 5,694,771 Total Governmental Activities, Net Assets/Position $ 88,651,725 $ 89,062,620 $ 88,615,107 Net Position $ 45,655,083 $ 45,983,669 $ 43,400,731 $ 37,131,714 Business -Type Activities: Net Investment in Capital Assets $ 34,499,646 $ 33,003,801 $ 33,041,432 $ 33,331,038 Restricted - - - - Unrestricted 8,496,996 10,075,150 12,172,944 13,508,734 Total Business -Type Activities, Net Position $ 42,996,642 $ 43,078,951 $ 45,214,376 $ 46,839,772 Primary Government: Net Investment in Capital Assets $ 62,031,999 $ 61,736,602 $ 61,469,190 $ 61,374,948 Restricted 5,421,971 4,949,039 4,949,039 3,393,033 Unrestricted 21,197,755 22,376,979 22,196,878 19,203,505 Total Primary Government, Net Assets/Position $ 88,651,725 $ 89,062,620 $ 88,615,107 $ 83,971,486 1 Fiscal Year 2016 2017 2018 2019 2020 2021 $ 30,505,784 3,003,799 1,890,470 $ 21,971,338 3,004,564 11,159,128 Table 1 (Continued) $ 20,713,428 $ 18,064,569 $ 21,907,532 $ 26,703,929 12,548,372 8,782,171 8,272,920 7,357,621 53,717 4,831,122 6,866,108 6,606,102 $ 35,400,053 $ 36,135,030 $ 33,315,517 $ 31,677,862 $ 37,046,560 $ 40,667,652 $ 33,466,855 14,460,833 $ 24,198,822 22,900,345 $ 18,322,809 $ 25,779,748 $ 28,880,579 $ 33,410,030 22,945,722 16,473,443 14,923,230 11,802,173 $ 47,927,688 $ 47,099,167 $ 41,268,531 $ 42,253,191 $ 43,803,809 $ 45,212,203 $ 63,972,639 $ 46,170,160 $ 39,036,237 $ 43,844,317 $ 50,788,111 $ 60,113,959 3,003,799 3,004,564 12,548,372 8,782,171 8,272,920 7,357,621 16,351,303 34,059,473 22,999,439 21,304,565 21,789,338 18,408,275 $ 83,327,741 $ 83,234,197 $ 74,584,048 $ 73,931,053 $ 80,850,369 $ 85,879,855 ER CITY OF PARIS, TEXAS Table 2 Changes in Net Assets/Position Last Ten Fiscal Years (Accrual Basis of Accounting) Unaudited Business -Type Activities: Charges for Services: Water and Sewer Service 13,852,441 14,005,748 13,881,328 14,281,964 Total Primary Government Program Revenues 21,055,120 20,927,473 20,193,260 20,689,123 ER Fiscal Year 2012 2013 2014 2015 EXPENSES Governmental Activities: General Government $ 2,094,110 $ 2,905,871 $ 2,997,393 $ 2,909,807 Finance 480,144 393,526 407,463 404,567 Public Safety 10,771,351 9,982,926 10,449,953 11,037,966 Public Works 7,568,269 8,396,001 7,909,651 7,508,978 Health 3,416,360 3,348,281 3,228,513 2,404,782 Library Services 712,033 787,242 816,376 790,339 Cox Field Airport 261,463 259,938 158,632 152,063 Interest on Long -Terns Debt 342,554 436,690 287,256 276,197 Bond Issue Costs - 314,765 - - Total Governmental Activities Expenses 25,646,284 26,825,240 26,255,237 25,484,699 Business -Type Activities: Water and Sewer Services 11,008,967 11,504,538 11,940,791 11,929,499 Total Primary Government Expenses 36,655,251 38,329,778 38,196,028 37,414,198 PROGRAM REVENUES Governmental Activities: Charges for Services: General Government - 2,447 3,310 17,634 Public Safety 729,267 412,150 433,828 370,308 Public Works 1,788,753 1,860,656 1,799,918 1,862,606 Health 2,721,421 2,463,907 2,371,757 2,391,817 Library Services 20,877 27,824 19,400 19,433 Cox Field - 78,234 67,037 76,689 Operating Grants and Contributions 1,305,387 1,959,427 926,506 1,396,711 Capital Grants and Contributions 636,974 117,080 690,176 271,961 Total Governmental Activities Program Revenues 7,202,679 6,921,725 6,311,932 6,407,159 Business -Type Activities: Charges for Services: Water and Sewer Service 13,852,441 14,005,748 13,881,328 14,281,964 Total Primary Government Program Revenues 21,055,120 20,927,473 20,193,260 20,689,123 ER Table 2 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 $ 3,463,908 $ 3,748,965 $ 3,421,223 $ 3,651,888 $ 3,927,783 $ 5,000,473 400,665 398,262 404,443 402,943 481,645 480,880 12,595,127 12,456,655 12,061,033 13,228,151 12,727,703 11,874,360 7,020,333 7,126,349 6,882,186 8,274,343 6,699,707 6,452,355 2,633,051 2,836,429 2,884,339 3,205,596 4,267,819 3,962,596 799,187 781,092 866,435 914,874 846,669 762,080 217,995 235,546 243,666 344,964 311,796 374,649 237,313 185,852 399,291 194,004 115,000 99,169 27,367,579 27,769,150 27,162,616 30,216,763 29,378,122 29,006,562 12,100,940 14,095,860 14,594,309 14,568,695 14,026,074 15,241,543 39,468,519 41,865,010 41,756,925 44,785,458 43,404,196 44,248,105 6,572 181,197 214,000 304,818 277,689 237,376 361,100 342,083 376,322 353,571 562,859 530,151 1,780,836 1,463,576 1,470,248 1,437,157 1,473,803 1,493,826 2,519,387 2,609,811 2,732,908 2,979,160 4,790,535 4,818,960 16,874 127,997 120,942 100,014 60,928 80,657 91,810 98,382 134,716 161,527 161,619 170,579 672,298 338,718 154,497 165,064 2,151,740 369,289 424,332 2,147,065 522,574 1,160,602 324,889 239,450 5,873,209 7,308,829 5,726,207 6,661,913 9,804,062 7,940,288 14,617,218 13,781,748 14,168,934 14,452,703 15,043,788 16,567,528 20,490,427 21,090,577 19,895,141 21,114,616 24,847,850 24,507,816 87 CITY OF PARIS, TEXAS Table 2 Changes in Net Assets/Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) Unaudited Fiscal Year 2012 2013 2014 2015 Net (Expense)/Revenue Governmental Activities (18,443,605) (19,903,515) (19,943,305) (19,077,540) Business -Type Activities 2,843,474 2,501,210 1,940,537 2,352,465 Total Primary Government, Net Expense (15,600,131) (17,402,305) (18,002,768) (16,725,075) General Revenues and Other Changes in Net Assets/Position Governmental Activities: Taxes Property 7,619,472 7,597,667 7,575,840 7,651,005 Sales 5,993,859 6,304,250 6,416,749 7,684,113 Franchise 2,731,097 2,550,447 2,662,604 2,641,537 Hotel Occupancy 498,667 572,150 547,354 594,493 Investment Earnings 55,875 64,386 45,799 51,741 Grants, Donations, and Miscellaneous 1,642,126 615,222 122,703 369,689 Capital Contributions 3,486,508 2,527,979 (10,682) 1,087,474 Gain/Loss on Sale of Capital Assets - - - - Transfers - - - - Total Governmental Activities 22,027,604 20,232,101 17,360,367 20,080,052 Business -Type Activities: Taxes Investment Earnings Contribution Gain/Loss on Sale of Capital Assets Transfers Total Business -Type Activities Total Primary Government Changes in Net Assets/Position Governmental Activities Business -Type Activities Total Primary Government 63,722 (42,124) 83,206 77,787 303,910 550,978 101,000 - (3,486,508) (2,527,979) 10,682 (1,087,474) (3,118,876) (2,019,125) 194,888 (1,009,687) 18,908,728 18,212,976 17,555,255 19,070,365 3,583,999 328,586 (2,582,938) 1,002,512 (275,402) 482,085 2,135,425 1,342,778 $ 3,308,597 $ 810,671 $ (447,513) $ 2,345,290 88 Table 2 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 (21,494,370) (20,460,321) _ (21,436,409) (23,554,850) (19,574,060) (21,066,274) 2,516,278 (314,112) (425,375) (115,992) 1,017,714 1,325,985 (18,978,092) (20,774,433) (21,861,784) (23,670,842) (18,556,346) (19,740,289) 7,748,872 8,175,530 9,170,951 9,358,943 9,338,087 9,561,394 7,051,858 7,233,526 7,317,162 7,369,079 8,245,939 9,196,157 2,502,614 4,211,397 4,315,694 4,305,851 4,714,021 4,253,182 630,545 657,270 662,263 675,158 872,418 1,192,873 80,129 173,656 426,518 581,115 197,203 41,704 315,989 361,125 387,306 272,338 714,470 546,391 651,847 - - - - - (57,026) - (57,940) 49,951 25,246 125,176 1,579,100 382,794 610,955 (523,031) (146,679) (177,451) 20,503,928 21,195,298 22,832,909 22,089,404 23,960,705 24,739,426 291,131 315,872 380,393 577,621 427,723 (51,563) - - - - - 19,321 (1,579,100) (382,794) (610,955) 523,031 146,679 177,451 (1,287,969) (66,922) L230,562) 1,100,652 574,402 145,209 19,215,959 21,128,376 22,602,347 23,190,056 24,535,107 24,884,635 (990,442) 734,977 1,396,500 (1,465,446) 4,386,645 3,673,152 1,228,309 (381,034) (655,937) 984,660 1,592,116 1,471,194 $ 237,867 $ 353,943 $ 740,563 $ (480,786) $ 5,978,761 $ 5,144,346 89 CITY OF PARIS, TEXAS Table 3 Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Unaudited 90 Fiscal Year 2012 2013 2014 2015 General Fund Nonspendable $ 218,117 $ 271,292 $ 233,127 $ 294,776 Restricted - - 271,269 331,086 Unassigned 11,764,593 11,969,203 11,194,101 12,969,124 Total General Fund $ 11,982,710 $ 12,240,495 $ 11,698,497 $ 13,544,986 All Other Governmental Funds Reserved $ - $ - $ - $ - Unreserved, Reported in: Special Revenue Funds - - - - Permanent Funds - - - - Nonspendable 89,632 90,062 90,572 90,800 Restricted 5,332,339 4,858,977 3,031,192 2,726,900 Assigned 456,463 457,471 389,511 267,440 Unassigned - - - - Total All Other Governmental Funds $ 5,878,434 $ 5,406,510 $ 3,511,275 $ 3,085,140 90 Table 3 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 $ 223,911 $ 326,985 $ 418,995 $ 483,575 $ 500,495 $ 181,620 387,950 446,493 498,359 577,814 659,322 710,901 10,227,839 10,849,390 11,753,392 12,390,089 15,990,260 20,596,761 $ 10,839,700 $ 11,622,868 $ 12,670,746 $ 13,451,478 $ 17,150,077 $ 21,489,282 91,565 92,347 93,689 96,007 98,400 98,543 2,525,049 12,009,532 10,991,000 8,108,350 7,512,067 6,633,684 188,569 82,042 299,013 292,571 295,955 - - 57,705 - - - - $ 2,805,183 $ 12,241,626 $ 11,383,702 $ 8,496,928 $ 7,906,422 $ 6,732,227 91 CITY OF PARIS, TEXAS Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Unaudited REVENUES Taxes Licenses and Permits Fines and Fees Use of Money and Property Public Safety Sanitation Health Intergovernmental Other Total Revenues EXPENDITURES Current: General Government Finance Public Safety Public Works Health Department Emergency Medical Service Library Cox Field Airport Other Debt Service: Interest Principal Bond Issuance Costs Capital Outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Proceeds of Capital Leases General Obligation Bonds Issued Certificates of Obligation Issued Tax Notes Issued Issue Costs Insurance Recoveries Transfers In Transfers Out Long -Term Debt Issued Payment to Escrow Agent and Premium Sale of General Capital Assets Total Other Financing Sources (Uses) Increase (Decrease) in Reserve for Inventory Net Changes in Fund Balances Table 4 Fiscal Year 2012 2013 2014 $ 16,822,577 S 17,020,156 $ 17,194,419 145,792 154,923 386,775 550,496 624,609 586,429 210,476 142,620 138,629 1,468,917 1,463,210 1,472,278 2,818,196 2,453,270 2,111,439 1,858,092 2,069,494 1,603,165 271,709 317,981 169,261 24,146,255 24,246,263 23,662,395 1,029,702 1,197,486 1,153,686 473,719 393,526 407,443 9,659,131 9,462,148 9,712,876 5,757,456 6,646,804 6,507,603 955,930 1,043,502 916,260 2,302,247 2,132,692 2,127,225 632,515 632,040 707,716 150,848 153,182 97,778 1,434,177 1,560,051 1,548,753 1,080,200 379,241 311,919 424,730 1,185,622 1,226,543 2,649,513 2,407,415 1,332,959 26,550,168 27,193,709 26,050,761 (2,403,913) (2,947,446) (2,388,366) 5,100,935 3,938,899 1,782,291 (1,614,427) (1,410,920) (1,792,973) 4,505,000 - (4,424,955) - 72,108 - 3,486,508 2,680,132 (10,682) 18,599 53,175 (38,165) $ 1,101,194 $ (214,139) S (2,437,213) Debt Service as a Percentage of Noncapital Expenditures 6.44% 6.74% 5.38% 92 Table 4 (Continued) Fiscal Year 2015 2016 2017 2018 2019 2020 2021 $18,457,686 $17,976,072 $20,280,057 $21,447,857 $ 21,672,347 $ 23,106,141 $ 24,155,434 220,696 152,016 155,363 197,920 277,507 259,117 211,668 573,953 515,147 491,880 495,708 480,618 743,152 663,873 137,030 173,004 272,039 561,234 742,644 375,074 212,284 1,462,810 1,474,874 1,463,576 1,470,248 1,437,157 1,462,452 1,470,237 2,383,355 2,519,387 2,609,811 2,614,504 2,991,995 5,117,649 4,806,996 1,662,824 1,096,630 1,463,514 677,072 1,325,665 2,503,393 706,574 224,463 386,853 258,051 346,789 214,502 692,664 524,586 25,122,817 24,293,983 26,994,291 27,811,332 29,142,435 34,259,642 32,751,652 1,076,798 1,301,401 1,288,458 1,180,280 1,230,366 1,371,042 1,178,384 404,567 400,665 398,262 404,443 402,943 481,645 480,880 10,206,584 11,125,560 11,026,655 10,850,538 11,253,953 12,032,115 11,374,139 5,861,079 5,556,359 5,549,270 5,356,374 5,644,019 5,065,867 4,991,668 8,672 - - - - - - 2,240,853 2,366,673 2,535,135 2,670,131 2,845,874 4,058,990 5,200,828 692,290 717,395 697,503 736,513 756,566 723,742 679,491 102,539 110,330 129,269 112,562 210,851 179,631 242,809 1,641,714 1,771,889 1,738,115 1,716,365 1,845,609 1,922,363 1,838,073 280,733 254,304 196,358 447,294 443,205 398,844 389,169 1,077,610 991,899 1,161,513 1,580,682 1,577,803 1,635,788 3,315,266 - - 103,399 4,410 - - - 1,920,359 4,474,952 2,350,010 3,564,942 4,399,885 5,540,837 2,615,698 25,513,798 29,071,427 27,173,947 28,624,534 30,611,074 33,410,864 32,306,405 (390,981) (4,777,444) (179,656) (813,202) (1,468,639) 848,778 445,247 617,114 975,185 - - - - - - - 9,913,399 190,000 - - 1,765,000 - - - - - 1,500,000 - - - - - - - 1,115,000 - - - - - (62,000) (81,992) - - - - 57,835 - - 1,504,281 3,437,300 466,536 994,335 27,678 2,570,626 3,358,332 (416,807) (1,858,200) (83,742) (383,374) (550,708) (2,717,305) (3,535,783) 95,098 - - - 1,799,686 2,554,285 10,296,193 800,961 61,649 (70,865) 103,074 40,517 28,000 151,266 (465,195) 1,319,321 2,771,823 $ 1,470,354 $(2,294,024) $10,219,611 $ 28,276 $ (1,933,834a $ 2,168,099 $ 3,217,070 5.76% 5.07% 5.47% 8.09% 7.71% 7.30% 12.48% 93 CITY OF PARIS, TEXAS Table 5 Property Tax Levies and Collections (1) Last Ten Fiscal Years Unaudited Source: Lamar County Appraisal District Note: (1) Taxes stated are for General Fund and Debt Service Funds. (2) Penalty, interest, and attorney fees not included. 94 Percent Collection of Current of Current Levy Year's Collected Delinquent Fiscal Total Taxes During During Tax Total Roll Year Tax Levy Fiscal Year Fiscal Year Collections Collections 2011 2011-12 $ 7,543,165 $ 7,387,161 97.93% $ - $ 7,387,161 2012 2012-13 7,544,315 7,368,232 97.67 110,036 7,478,268 2013 2013-14 7,498,327 7,309,230 97.48 119,430 7,428,660 2014 2014-15 7,626,530 7,348,250 96.35 111,210 7,459,460 2015 2015-16 7,627,731 7,406,830 97.10 215,544 7,622,374 2016 2016-17 8,093,094 7,940,087 98.11 116,317 8,056,404 2017 2017-18 9,145,965 8,973,214 98.11 62,442 9,035,656 2018 2018-19 9,381,829 9,208,248 98.15 137,647 9,345,895 2019 2019-20 9,332,621 9,047,982 9695 109,970 9,157,952 2020 2020-21 9,592,756 9,321,264 97.17 134,553 9,455,817 Source: Lamar County Appraisal District Note: (1) Taxes stated are for General Fund and Debt Service Funds. (2) Penalty, interest, and attorney fees not included. 94 Ratio Ratio of of Total Delinquent Collections Outstanding Taxes To Total Delinquent To Total Tax Levy Taxes Tax Levy 97.93 $ 156,004 2.07 99.14 190,166 2.52 99.07 186,382 2.48 97.81 279,144 3.66 99.93 221,880 2.91 99.54 153,007 1.89 98.79 172,751 1.89 99.61 173,582 1.85 98.13 284,639 3.05 98.57 271,491 2.83 2 Table 5 (Continued) w NO a\ 00 O 00 O C> 0 <D CD m O = C) C> 0 4= 00 ON t- 00 — (ON CN r- �o It 1= C) (D od C) r- C4 (T 00 C� 00 — C'4 00 = m 00 — C', tn wl �o CD \0 00 IT 40 40 Ct 00 ON 00 C14 Ci R Rt Ci (R vi R Ci Ci 0T <R q C) C> OC) C) C) o O 4D (OS 6q Qq 64 60 6011) 69 609 60 69 oq 64 00000 OoO C> <D C> C> Co <D a 0Co %lo IT 4= m r- IT = IT IT CD IT cv 00 t- \0 I'D t- 00 to cn \0 o \0 Q Q — t- %D 00 In \0 00 't No �10 "tt Ili Vi Ci O 0 Ci ei OT "i CT (:T Ca O Cl 0 0 C> 0 C>0 a 0 0 C> 0 C) 0 64 (Is 44 604 GAI oq 60 C09 64 os oq os —;s " O O 0 C> 0 (D 0 C> C) 0 C) C) O Cn rn ON 1* wl (D 0 0 0 CD 0 0 0 C) 00 M 0 to wl 0 C. CD 0 CD " I in en = 00 t- 00 W) vt C\ MIt 00 00 lo: In M o ri cli ":t q "-: Cli O O q q 0O• 0 (Do C) 4= N 69 Os 69 Cos Gn Gn Qq Qq 04 es 64 00 t- W) 000 0 <D 1= 0 C> CD 4D(D C) 0 oo It IT 0% VS 00 en C) O0 0 C> 40 go Q 0 Q — C14 Osa W) tf) 0 tn W) <D C� kn tn 0 kn t-� -49 t- 00 %n m 00 00 W) en C> m C4 (D (D ci d 66 0— (D 0 69 604 64 (A 69 64 64 04 64 64 69 6q MN "n 000 0 C) 0 000 C) 0 kn ON %Q m CP\ O0 0 0 W') %n 40 C) M m 4 r- — %lor- en C) In tn 0 vo \0 \6 C,4 r- v: c) CD to (= — "T 0 eq 'IT t. 00 N in V a CRI A et 6% 64 604 (A 64 Go:j 69 os (A 641) 64 09 COO V w M > t- 00 to a 4= 0 <D C= C) 0 0000 0 CD 0 0 Q > -a It "T W) \0 os C14 M CA 00 0— W) r- N C) <D tn r 00 Cl wl W) 0 t- o �o t- �o w C) "n Q t• tT �o "n r- tn r- w I in r- w tei C) 0 C) 0 0 a Q C> CD <D C) 69 6q 64 Go 60 69 644 Gn 64 04 64 64 < 114 Q 4. 0 W*l (D kn Q C> C> CD (D 0 C> 00 00 000 (D 0 0 m �o o+v C> IT (2) Q C> CD r- r- 40 4n VII �o %0 64 4 Co "G Q -7s VQCT N G wl 'T atn r- 00 tn tn C> 110 It Nr 10 00 0 r- IT \0 r- \0 00 1 %0 00 114:C? "it et Cli Itt R 1-: "i q q C4 tii os so tn 000 C> C) 000 Cl 0 C14 d0 0\ 00 M — Q C> C> C> C) = (D — o— W) 0T " " 0 " wl <> — = �0 \0 Os — 0 00 wl IT It 00 Icr t- 00 00 (n Wi cl nt q 04 (04 604 64 6s &1 64 GS 09 6's 69 64 CD 00 0 W) W) C) 0 qT v7 oo 00 -0 tn tn 0 0 CD C> — — t- I r, (2-,— : C14 en r- 00 in \0 CD 00 N oo 00 q In ; R Nt cl d a -i Cli CI 00 . 0 eq 64 &S GIs GO) 09 609 64 64 614 6-9 os oq 000 ao C> C> Cl a 0 (Z = 000 Q cq rn Cq O C> Q 0 as Q kn tn 0 0 O0 OHO+ C\ a" wl 0 as 0CD\0 C14 C\ t- tn cli , 0 00 eq ON ON (i IR VNV: g :2 Cli IR "i os 09 V) oq 604 9% 609 Ge 6e 601) 4) CA m cn C/3a3 o 0— 0 3 21 0 Cf) 0 z w NO a\ Roll 2011 2012 2013 2014 2015 2016 2017 20I8 2019 2020 Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Sources: Lamar County Appraisal District CITY 4F PARIS, TEXAS Assessed and Estimated Actual Value of Property Last Ten Fiscal Years Unaudited Real Property Estimated Assessed Actual Value Value Personal Property Estimated Assessed Actual Value Value $ 918,495,080 $1,402,956,164 $ 543,332,657 $ 623,174,818 931,939,433 1,424,800,859 559,431,805 628,115,774 1,033,357,277 1,438,785,698 469,901,615 654,358,864 1,007,593,690 1,472,220,698 522,773,397 763,567,027 1,006,810,741 1,490,882,796 526,923,827 780,316,817 1,148,246,077 1,725,298,577 479,151,390 720,199,051 1,206,992,530 1,773,796,952 474,754,769 697,701,527 1,236,252,824 1,807,476,750 495,983,817 725,129,690 1,295,418,472 1,870,747,790 498,742,817 720,268,510 1,391,511,659 1,933,860,434 532,519,786 740,100,180 97 Table 7 Table 7 (Continued) 98 Total Assessed Estimated Value as a Assessed Actual Percentage of Total Direct Exemptions Value Value Actual Value Tax Rate $ 564,303,245 $1,461,827,737 $2,026,1301982 72.15% $ 0.52000 561,543,395 1,491,371,238 2,052,916,633 72.65 0.52000 589,885,670 1,503,258,892 2,093,144,562 71.82 0.50195 705,420,637 1,530,367,087 2,235,787,725 68.45 0.50195 737,465,045 1,533,734,568 2,271,199,613 67.53 0.50195 818,100,161 1,627,397,467 2,445,497,628 66.55 0.50195 789,751,180 1,681,747,299 2,471,498,479 68.04 0.55195 800,369,799 1,732,236,641 2,532,606,440 68.40 0.55195 796,855,011 1,794,161,289 2,591,016,300 69.25 0.51608 749,929,169 1,924,031,445 2,673,960,614 71.95 0.48078 98 CITY OF PARIS, TEXAS Principal Property Taxpayers September 30, 2021 and 2012 Unaudited Table 8 Source: Lamar County Appraisal District 99 2021 Percentage of Total Taxable Freeze Adjusted Assessed Taxable Taxpayer Type of Business Value Rank Assessed Value La Frontera Holdings LLC (Lamar Power Partners) Electric Utility $ 347,396,800 1 18.06% Campbell Soup Company - A Food Manufacturer 176,136,898 2 9.15% Kimberly-Clark Corporation - A Disposable Diapers 78,834,285 3 4.10% Essent PRMC, LP A Hospital 46,383,270 4 2A]% Oncor Electric Delivery Electric Utility 34,817,290 5 1.81% American Spiral Weld III Inc. Pipe Manufacturer 22,500,643 6 1.17% Potter Industries Glass Manufacturer 15,910,093 7 0.83% Huhtamaki Inc Packaging Mfg. 13,878,326 8 0.72% Alpha Lake Limited Shopping Center 12,714,750 9 0.66% Atmos Energy Gas Utility 12,439,370 10 0.65% Campbell Soup Company - B Warehouse - 0.0011/0 Paris Generation, LP Electric Utility 0.000/0 Silgan Can Company Can Manufacturer 0.00% Kimberly-Clark Corporation - B Warehouse 0.00% Paris Regional Medical Center - B Warehouse - 0.00% Totals $ 761,011,725 39.56% Source: Lamar County Appraisal District 99 2012 Percentage Taxable of Total Assessed Taxable Value Rank Assessed Value 205,185,800 1 13.76% 53,439,580 3 3.58% 116,106,927 2 7.79% 31,732,500 5 2.13% 20,053,960 7 1,34% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% 34,669,630 4 2.32% 22,581,100 6 1.51% 14,987,410 8 1.00% 11,314,260 9 0.76% 10,402,160 10 0.70% 520,473,327 34.89% 100 Table 8 (Continued) CITY OF PARIS, TEXAS Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years Unaudited Sources: Lamar County Appraisal District City of Paris Gross Less Debt General Service Bonded Debt Funds Ratio of Net General Bonded Debt To Net General Assessed Bonded Debt Value $ 10,750,600 $ 2,797,611 Taxable Fiscal Estimated Assessed Year Population Value 1,432,199 2011-12 25,337 $ 1,461,827,737 2012-13 25,082 1,491,371,238 2013-14 25,171 1,503,258,892 2014-15 25,200 1,519,380,526 2015-16 25,400 1,627,397,467 2016-17 25,425 1,681,747,299 2017-18 25,450 1,732,236,641 2018-19 25,450 1,794,161,289 2019-20 25,450 1,876,141,460 2020-21 24,476 2,228,001,573 Sources: Lamar County Appraisal District City of Paris Gross Less Debt General Service Bonded Debt Funds Ratio of Net General Bonded Debt To Net General Assessed Bonded Debt Value $ 10,750,600 $ 2,797,611 $ 7,952,989 0.54 9,485,800 2,318,294 7,167,506 0.48 8,310,000 1,432,199 6,877,801 0.46 7,285,000 1,117,793 6,167,207 0.41 6,442,624 1,087,664 5,354,960 0.33 15,461,503 898,022 14,563,481 0.87 14,306,032 1,073,917 13,232,115 0.76 12,977,671 1,103,061 11,874,610 0.67 11,818,173 1,196,122 10,622,051 0.56 11,420,000 1,272,171 10,147,829 0.46 101 Table 9 Net General Bonded Debt Per Capita $ 313.89 285.76 273.24 244.73 210.83 572.80 51993 466.59 417.37 414.60 CITY OF PARIS, TEXAS Ratio of Outstanding Debt by Type Last Ten Fiscal Years Unaudited Table 10 Sources: City Finance Office Samco Capital Markets, Inc. Bureau of Economic Analysis 102 Governmental Activities Business -Type Activities General Fiscal Obligation Capital Utility Rate Capital Year Bonds Leases Other Supported Debt Leases Other 2012 $ 10,750,600 $ - $ - $ 7,764,400 $ - $ - 2013 9,485,800 - - 43,239,200 - - 2014 8,310,000 - - 40,795,000 - - 2015 7,285,000 617,114 - 38,545,000 - - 2016 6,442,624 1,538,459 - 37,997,715 - - 2017 15,461,503 1,397,929 - 45,175,173 - - 2018 14,306,032 1,253,181 - 44,264,589 - - 2019 12,840,000 1,104,090 - 41,075,000 - - 2020 12,975,000 950,526 - 38,875,000 - - 2021 11,830,000 792,453 955,000 80,430,000 - - Sources: City Finance Office Samco Capital Markets, Inc. Bureau of Economic Analysis 102 Total Percentage Primary of Personal Per Government Income Capita 18,515,000 1.06 $ 733 52,725,000 2.92 2,081 49,105,000 2.64 1,951 46,447,114 2.49 1,843 45,978,798 2.47 1,810 62,034,605 3.23 2,440 59,823,802 2.91 2,304 55,019,090 2.73 2,180 52,800,526 2.47 2,085 94,007,453 4.03 3,841 103 Table 10 (Continued) Taxing Jurisdiction CITY OF PARIS, TEXAS Direct and Overlapping Governmental Activities Debt September 30, 2021 Unaudited Table I I General Percent Amount Obligation Applicable Applicable Bonded Debt to to Outstanding Government Government Lamar County $ 6,705,000 62.75% $ 4,207,387 Paris Independent School District 42,350,000 49.30 20,878,550 Chisum Independent School District 26,130,000 47.75 12,477,075 North Lamar Independent School District - 58.23 - Subtotal Overlapping Debt 75,185,000 37,563,012 City of Paris (includes General Obligation Debt and Capital Leases) 13,577,453 100.00 13,577,453 Total Direct and Overlapping Debt Per Capita Direct and Overlapping Funded Debt $ 88,762,453 3,627 Sources: Outstanding debt and applicable percentages provided by each governmental unit. $ 51,140,465_ 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 home by the property taxpayers of the City of Paris. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 104 2,089 CITY OF PARIS, TEXAS Table 12 Legal Debt Margin Information September 30, 2021 Unaudited 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 $.48078 per $100 valuation for the fiscal year ended September 30, 2021. 105 CITY OF PARIS, TEXAS Table 13 Revenue Pledged Coverage - Water and Sewer Revenue Bonds Last Ten Fiscal Years Unaudited Notes: (1)* 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 106 Net Revenue Average Remaining Available Debt Service Requirements Fiscal Gross Operating For Debt Percent Year Revenues* Ex2enses** Service Principal - Interest Total*** Coverage 2011-12 $ 13,916,163 $7,445,178 $6,470,985 S - $ - $ - N/A 2012-13 13,963,624 7,578,446 6,385,178 - - - N/A 2013-14 13,964,534 7,342,744 6,621,790 - - - N/A 2014-15 14,359,751 7,248,302 7,111,449 - - - N/A 2015-16 14,894,489 7,834,768 7,059,721 - - - N/A 2016-17 14,097,620 9,902,805 4,194,815 - - - N/A 2017-18 14,549,327 9,922,088 4,627,239 - - - N/A 2018-19 15,030,324 10,182,731 4,847,593 - - - N/A 2019-20 15,043,788 9,602,622 5,441,166 - - - N/A 2020-21 16,768,090 10,440,367 6,327,723 - - - N/A Notes: (1)* 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 106 CITY OF PARIS, TEXAS Table 14 Demographic and Economic Statistics Last Ten Calendar Years Unaudited Paris, TX (1) Includes Paris Independent School District, North Lamar Independent School District, Chisurn Independent School District, and Paris Junior College Sources: Paris Independent School District - 3,717 North Lamar Independent School District - 2,261 Chisurn Independent School District - 1,062 Paris Junior College - 4,421 Bureau of Economic Analysis US Census Bureau 107 Paris, TX Micropolitan Paris, TX Paris, TX Micropolitan Service Area Micropolitan Micropolitan Service Area Per Capita Service Area Percent Calendar Service Area Personal Personal Median School Unemployment Year Population Income Income Age Enrollments (1) Rate 2011 50,074 $ 1,657,062,000 $ 33,092 39.9 12,865 8.5 2012 49,811 1,750,363,000 35,140 39.0 12,671 7.9 2013 49,426 1,804,479,000 36,509 37.1 12,377 7.6 2014 49,523 1,859,083,000 37,540 40.4 12,414 6.1 2015 49,440 1,857,879,000 37,578 40.5 12,121 5.4 2016 49,791 1,917,848,000 38,518 40.6 12,180 4.9 2017 49,587 2,013,704,000 40,610 40.6 12,758 3.5 2018 49,728 2,027,062,464 40,763 41.0 12,307 3.3 2019 49,859 2,147,064,000 43,063 37.8 11,482 6.8 2020 50,088 2,330,995,344 46,538 40.7 11,461 6.5 (1) Includes Paris Independent School District, North Lamar Independent School District, Chisurn Independent School District, and Paris Junior College Sources: Paris Independent School District - 3,717 North Lamar Independent School District - 2,261 Chisurn Independent School District - 1,062 Paris Junior College - 4,421 Bureau of Economic Analysis US Census Bureau 107 CITY OF PARIS, TEXAS Principal Employers Fiscal Years End 2021 and 2012 Unaudited Table 15 Source: U.S. Department of Labor PEDC Bureau of Labor Statistics Additional Information: September 30, 2021 September 30, 2012 Paris ISD 618 Percentage 469 City of Paris Percentage Paris Junior College 205 Chistun ISD of Total Lamar County 196 of Total 1,978 City city Taxpayer Employees Rank Employment Employees Rank Employment Paris Regional Medical Center 900 1 4.07% 875 1 4.65% Campbell Soup Company 700 2 3.16% 758 2 4,03% Kimberly-Clark Corporation 692 3 3.13% 732 3 3.89% The Results Company* 419 4 1.89% - 0.00% We Pack Logistics, Inc. 382 5 1.73% 300 5 1.59% J. Skinner Baking Company** 267 6 1.21% - 0.00% Huhtamaki*** 208 7 0.94% 154 7 0.82% RK Hall Construction LTD 200 8 0.900/0 250 6 1.33% Delco Trailers 140 9 0.63% - 0.00% Silgan Can Company 90 to 0.41% 87 9 0.46% Turner Industries - 0.000/0 600 4 3.19% HWH - We Build 0.00% 115 8 0.61% T&J Machinery 0.000/0 79 10 0.42% Totals 3,998 18.07% -__3,,.950 20.99% Source: U.S. Department of Labor PEDC Bureau of Labor Statistics Additional Information: Public Employers: Paris ISD 618 North Lamar ISD 469 City of Paris 314 Paris Junior College 205 Chistun ISD 176 Lamar County 196 Total 1,978 Notes: TCIM in 2012 Sara Lee in 2012 (***) Paris Packaging in 2012 108 CITY OF PARIS, TEXAS Operating indicators by Function Last Ten Fiscal Years Unaudited GOVERNMENT: Date of Incorporation - 1836 Current Charter - Adopted November 2, 1948 FACILITIES: Airports: Number of Airports Fire Protection: Number of Stations Number of Fire Hydrants Number of Employees (certified) Employees Per 1,000 Population Libraries: Number of Libraries Number of Volumes Circularization of Materials Circulation Per Capita Library Cards in Force Police Protection: Number of Stations Number of Employees (certified) Employees Per 1,000 Population Parks and Recreation: Park Acres Developed Park Acres Undeveloped City Parks Streets: Paved Lanes - Miles Unpaved Streets - Miles WATER AND SEWER UTILITY: Average Daily Water Consumption - Gallons Maximum Day's Water Consumption - Gallons Annual Water Consumption - Gallons Water Mains - Miles Water Connections - Metered Sewer Mains - Miles Area Miles Number of Full -Time Employees Sources: Various City of Paris Departments Table 16 Fiscal Year 2012 2013 2014 2015 I I 1 1 3 3 3 3 1,217 1,240 1,262 1,299 51 51 51 51 2.01 2.01 2.03 2.02 1 1 1 1 85,357 82,878 82,832 81,893 136,286 127,053 127,002 127,824 5.37 5.01 5.06 5.07 14,563 14,896 16,519 15,507 1 1 1 1 62 62 60 60 2.44 2.44 2.39 2.38 87 87 87 87 221 221 221 221 24 24 24 24 160 160 160 160 3 3 3 3 11,560,000 21,010,000 4,234,583,000 183 9,966 188 ��61 325 109 11,400,000 20,764,000 4,177,171,000 183 9,816 188 �I%V 325 11,472,271 17,201,000 4,187,379,000 183 9,819 189 39.18 326.5 11,006,721 20,662,000 4,017,453,000 185 10,024 209 39.18 327 Table 16 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 1 1 I 1 1 1 3 3 3 3 3 3 1,313 1,333 1,357 1,367 1,408 1,399 51 51 51 51 51 51 2.01 2.00 2.00 2.00 2.00 2.08 1 1 1 1 1 1 84,162 85,630 72,288 81,185 79,821 81,739 119,265 114,611 103,389 99,239 81,249 86,120 4.69 4.50 4.06 390 3.19 3.51 I3,551 14,312 10,441 8,734 8,424 9,337 1 1 1 1 1 1 60 60 57 57 57 57 2.36 2.35 2.24 2.24 2.24 2.32 87 87 87 87 87 87 221 221 221 221 221 221 24 24 24 24 24 24 171 171 171 174 174 174 3 3 3 3 3 3 10,701,294 13,241,942 10,759,444 10,775,920 11,138,000 11,740,173 17,983,000 18,493,000 18,137,000 19,202,000 17,747,000 19,386,000 3,977,369,000 4,833,309,000 3,927,197,000 3,937,831,000 4,078,053,000 4,285,163,000 185 185 185 185 185 185 9,995 9,766 9,698 9,679 9,810 9,754 209 209 209 209 209 209 38.02 38.02 38.02 38.02 38.02 38.02 328 330 331.5 333 322 314 110 Function: Public Safety Police Stations Patrol Units Fire Stations Sanitation Collection Trucks Highways and Streets Streets (miles) Streetlights Traffic Signals* Culture and Recreation Park Acreage Swimming Pools - Municipal Tennis Courts Community Centers Water Water Mains (miles) Fire Hydrants Maximum Daily Capacity (thousands of gallons) Sewer Sanitary Sewers (miles) Maximum Daily Treatment Capacity (thousands of gallons) CITY OF PARIS, TEXAS Capital Asset Statistics by Function Last Ten Fiscal Years Unaudited Fiscal Year Table 17 2012 2013 2014 2015 I I I I 10 10 10 10 3 3 3 3 7 6 6 6 163 163 163 174 2,220 2,223 2,225 2,228 286 286 286 286 1 1 1 1 14 14 14 14 1 1 1 1 183 183 183 185 1,217 1,240 1,262 1,299 36,000 36,000 36,000 36,000 189 189 189 209 7,250 7,250 7,250 7,250 Source: Various City Departments * City has none. All inside the City limits belong to the State of Texas. III Table 17 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 10 10 10 10 10 10 3 3 3 3 3 3 6 6 6 6 6 6 174 174 174 174 174 174 2,228 2,230 2,231 2,235 2,235 2,235 286 286 286 308 308 308 1 1 1 1 1 1 14 14 14 14 14 14 1 1 1 1 1 1 185 185 185 185 185 185 1,313 1,333 1,357 1,367 1,408 1,399 36,000 36,000 36,000 36,000 36,000 36,000 209 209 209 209 209 209 7,250 7,250 7,250 7,250 7,250 7,250 112 CITY OF PARIS, TEXAS Building Permits at Market Value Last Ten Fiscal Years Unaudited Sources: City of Paris Community Development Department 113 Table 18 Residential Construction Value Total Construction Value Commercial $ 8,596,610 Property Value Commercial Construction Residential Fiscal Year Units Value Units 2012 13 $ 7,836,610 10 2013 15 9,653,725 24 2014 10 5,336,150 16 2015 14 61,243,705 10 2016 59 7,838,210 44 2017 18 12,653,657 21 2018 33 39,273,020 31 2019 15 64,446,766 25 2020 21 15,636,180 36 2021 8 7,995,151 17 Sources: City of Paris Community Development Department 113 Table 18 Residential Construction Value Total Construction Value $ 760,000 $ 8,596,610 2,171,613 11,825,338 1,924,218 7,260,368 823,430 62,067,135 3,252,018 11,090,228 3,914,081 16,567,738 4,101,770 43,374,790 3,744,359 68,191,125 5,366,500 21,002,680 1,908,787 9,903,938 CITY OF PARIS, TEXAS Table 19 Full -Time Equivalent City Government Employees by Function Last Ten Fiscal Years Unaudited Includes related grant employees. Seasonal employees not included. Source: City of Paris Finance Department 114 Fiscal Year 2012 2013 2014 2015 Function: Manager 3.0 3.0 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 2.0 2.0 Finance 5.0 5.0 5.0 5.0 Police* 85.5 85.5 83.0 83.0 Fire 52.0 52.0 57.0 57A Community Development 7.5 7.5 5.5 4.5 Engineering 6.5 6.5 7.5 7.5 Public Works 3.0 3.0 3.0 2.0 Parks & ROW 10.0 10.0 10.0 11.0 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 5.5 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 10.5 10.5 11.0 11.0 Waste Water Collection 7.5 7.5 7.5 8.5 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 2.5 Totals 325.5 325.5 326.5 327.0 Includes related grant employees. Seasonal employees not included. Source: City of Paris Finance Department 114 Table 19 (Continued) Fiscal Year 2016 2017 2018 2019 2020 2021 3.0 3.0 3.0 3.0 3.0 4.0 4.0 4.0 2.0 2.0 2.0 2.0 4.0 4.0 4.0 4.0 4.0 4.0 2.0 2.0 2.0 2.0 2.0 2.0 5.0 5.0 5.0 5.0 5.0 5.0 83.0 83.0 83.5 84.0 83.0 77.5 57.0 58.0 58.0 58.0 59.0 52.0 4.5 4.5 4.0 4.0 5.5 15.0 7.5 7.5 6.0 6.0 4.5 3.0 2.0 2.0 3.0 3.0 3.0 3.0 11.0 12.0 12.0 12.0 11.0 10.0 12.0 12.0 11.0 12.0 8.0 6.0 15.0 15.0 17.0 17.0 11.0 12.0 2.0 2.0 2.0 2.0 1.0 1.0 5.5 5.5 6.0 6.0 5.5 6.0 26.0 26.0 26.0 27.0 27.0 27.0 10.5 10.5 10.5 10.5 10.5 10.5 2.0 2.0 2.0 2.0 2.0 2.0 8.0 8.0 8.0 8.0 8.0 8.0 16.5 16.5 16.5 17.5 18.0 18.0 11.0 11.0 12.5 12.5 9.0 11.0 8.5 8.5 8.5 8.0 8.0 8.0 22.5 22.5 22.5 21.5 26.0 21.0 3.0 3.0 3.0 3.0 3.0 3.0 2.5 2.5 3.5 3.0 3.0 3.0 328.0 330.0 331.5 333.0 322.0 314.0 115 CONTINUING DISCLOSURE INFORMATION CONTINUING DISCLOSURE INFORMATION FOR CITY OF PARIS, TEXAS UNAUDITED ASSESSED VALUATION $ 405,000 TABLE 1 2021-2022 Actual Market Value of Taxable Property (100% of Actual) General Obligation Bonds, Series 2013 $ 3,180,380,294 Less Exemptions: 6,900,000 General Obligation Bonds, Series 2017 Local, Optional Over -65 and/or Disabled Homestead Exemptions $ 45,303,916 995,000 Disabled and Deceased Veterans' Exemptions 12,132,564 General Obligation Refunding Bonds, Series 2020 Productivity Loss 19,992,060 955,000 Personal Use of Business Vehicle 303,980 Total Gross General Obligation Debt Principal Outstanding: Freeport 91,612,816 1,272,171 Pollution Control / Solar 62,080,048 4.55% Abatement Loss 259,158,157 0.62% Cap Loss (10%) 79,061,864 2,049,030,824 Historical 1 Other 21,125,710 24,476 Totally Exempt Property 361,607,606 83,716 Total Exemptions $ 952,378,721 2021-2022 Net Taxable Assessed Valuation $ 2,228,001,573 Frozen Taxable Value and Transfer Adjustment (178,970,749) Freeze Adjusted Net Taxable Assessed Valuation $ 2,049,030,824 Source: Lamar County Appraisal District and the Issuer. GENERAL OBLIGATION BONDED DEBT PRINCIPAL TABLE 2 General Obligation Debt Principal Outstanding: (As of September 30, 2021) General Obligation Refunding Bonds, Series 2012 $ 405,000 Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB) 1,710,000 General Obligation Bonds, Series 2013 27,065,000 General Obligation Bonds, Series 2016 6,900,000 General Obligation Bonds, Series 2017 8,200,000 General Obligation Bonds, Series 2018 995,000 Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020 1,365,000 General Obligation Refunding Bonds, Series 2020 1,765,000 Tax Notes, Series 2020 955,000 Tax and Revenue Certificates of Obligation, Series 2021 43,855,000 Total Gross General Obligation Debt Principal Outstanding: 93,215,000 Less: Self -Supporting General Obligation Debt Principal Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB) (100% WS) 1,710,000 General Obligation Bonds, Series 2013 (100% WS) 27,065,000 General Obligation Bonds, Series 2016 (100% WS) 6,900,000 General Obligation Bonds, Series 2018 (86% WS) 900,000 Tax and Revenue Certificates of Obligation, Series 2021 43,855,000 Total Self -Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds: 80,430,000 Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds: $ 12,785.000 General Obligation Interest and Sinking Fund Balance as of September 30, 2021 $ 1,272,171 Ratio of Gross General Obligation Debt Principal to 2020-21 Freeze Adjusted Net Taxable Assessed Valuation 4.55% Ratio of Net General Obligation Debt Principal to 2020-21 Freeze Adjusted Net Taxable Assessed Valuation 0.62% 2020-21 Freeze Adjusted Net Taxable Assessed Valuation $ 2,049,030,824 Population: 1980 - 25,498; 1990 - 24,699; 2000 - 25,898; 2010 - 25,171 Current (Estimate) 24,476 Per Capita 2020-2021 Freeze Adjusted Net Taxable Assessed Valuation $ 83,716 Per Capita Gross General Obligation Debt Principal $ 3,808 Per Capita Net General Obligation Debt Principal $ 522 C4 -9 C4 81 Go ti co lZ ocr C4 m m m a� w w r, In R nNi 2 h dr � S; A V, e w et r% V% fn Ot R h w en leln, 00 !!f No al ;; 00 W Iq 'n In " Z w ONOL m %0 -It r, V 0 el C% OCL ri elL n fli 't m %G M wC�ppS 4A X± 0, 1r Of a 00 Vr %6 ae 0 M 00 0, 'D 00 rl fn C% ri CIL 't C Ott Cl+ I O tn M Iq In w %A L* 4n I-- r- r, W; O .n M vi en w N 14 00 fR 69 C710 Ir 0 *q 0 C4 wi 0i ci 6 eq 9 C4 c, 0 8 m w O w cc M N N w <g 0 'D *1 C GT O v !Do C4 It co eMt r, Cl W CD rl G 8 'R g m p r ci It Ot C, CL It lak %n e% Iq "R 05 0 00 0� r-. o r. cp� cr ce n en C4 Go M IT C, �o -A �n V M m 59 iH as 0 -n C4 0 a, C) In 0 C* In CD C, m W M Q M Go In 4Vt n m m q m tn lk t Z R 8� w ,It CL ol:t cl� C% 't 1% 'It. a, r- r- C* a Ch O+ m ;z "0 'enn 00 CM4[n Owl 00 G w In 00 tn M 00 CD cr m t- 06 Wrn C, h N m 'A m 00 C% to 64 ti 15 9 8 �R I �R 3 �2 -,22 w Wi C% m f% W. -� I oc� Iq al� —. V% rl�. Iq r% 'A co m 'd o rz 00 00 C; r``tl `wG fO+� dP'9i t�`�, Oo O0 �O �O Ot 00 Q� oo M T O M s %�O,- 8 00 W1 wl 00 P -e r- lw %0 In m m ci Cq ri 8- 6q eq 41 2.1 O> o b o Q 0 SO le, A .1 49 B PRINCIPAL TAXPAYERS 2020-21(UNAUDITED) TABLE Name La Frontera Holdings LLC Campbell Soup Kimberly Clark Corporation Essent PRMC LP Oncor Electric Delivery Company American Spiral Weld 111, Inc Potter Industries LLC Huhtamaki Inc. Alpha Lake LTD Atmost Energy Total Based on a 2021 Freeze Adjusted Net Taxable Assessed Valuation of $ 2,049,030,824 Source: Lamar County Appraisal District PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLES Tax Net Taxable % of Tax % Collections Tota12020 Year 2020 Net Taxable Assessed Type of Pronerty Assessed Valuation Valuation Electric Utility $ 347,396,800 16.95% Food Manufacturing 176,136,898 8.60% Disposable Diaper Mfg. 78,834,285 3.85% Health Care Services/Hospital 46,383,270 2.26% utility 34,817,290 1.70% Pipe Manufacturer 22,500,643 1.100/0 Manufacturing 15,910,093 0.78% Packaging Manufacturing 13,878,326 0.68% Shopping Center 12,714,750 0.62% Gas Utility 12,439,370 0,61% 2015 $ 761,011,725 _ _ 37.14% Based on a 2021 Freeze Adjusted Net Taxable Assessed Valuation of $ 2,049,030,824 Source: Lamar County Appraisal District PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLES Tax Net Taxable Tax Tax % Collections 2016-17 Year Year Assessed Valuation Rate Levy Current Total Ended 2011 $ 1,359,521,473 0.52000 $ 7,543,165 97.93 99.41 9-30-12 2012 1,385,188,151 0.51107 7,544,315 97.67 99.22 9-30-13 2013 1,493,839,431 0.50195 7,498,327 97.48 100.03 9-30-14 2014 1,519,380,525 0.50195 7,626,530 96.35 99.17 9-30-15 2015 1,607,003,070 0.50195 7,627,731 97.10 99.90 9-30-16 2016 1,510,271,195 0.50195 8,093,094 98.11 (b) 99.52 (b) 9-30-17 2017 1,556,621,932 0.55195 9,145,965 98.11 99.51 9-30-18 2018 1,607,003,070 0.55195 9,381,829 98.15 100.71 9-30-19 2019 1,654,553,439 0.51608 9,332,621 96.95 98.95 9-30-20 2020 1,924,031,445 0.48078 9,592,756 97.17 98.57 9-30-21 Note. Although "Total" tax collection percentages In this table Include delinquent tax collections, they are allocated to the year they were originally levied Instead of theyear In which they were collected. Certified Values may change during the tax year due to various supplements and protests, and valuations reported on a different date may not match those shown on this table. Financial Report. Valuations far tax years 2011-2020 represent Freeze Adjusted Net Taxable Valuations. Current Fiscal Year collections are as ofSeptember 30, 2021 (Unaudited). Source: The Lamar County Appraisal District, the City's 2020 Comprehensive Annual Financial Report and additional Information from the City, TAX RATE DISTRIBUTION (UNAUDITED) TABLE 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 General Fund $ 0.37357 $ 0.39788 $ 0.40868 $ 0.43831 $ 0.44248 $ 0.42440 1 & S Fund 0.08016 0.08290 0.10740 0.11364 0.10947 0.07752 TOTAL $ 0.45373 $ 0.48078 $ 0.51608 $ 0.55195 $ 0.55195 $ 0.50192 Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District. 118 MUNICIPAL SALES TAX TABLE 7 UNAUDITED The Issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Cale. 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 114 cent additional sales tax to be used for property tax reduction and a 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began on October 1, 1993, and the City received its first payment in December, 1993. Collections on a calendar year basis are as follows: * Sales taxes increased from the prior year due to a one time collection of an amount due from a prior period. This collection alone would have provided the City a 13.50% increase in sales taxes. The remaining increase is consistent with the expected sales tax revenues due to the recovering local economy. Source: State Comptroller of Public Accounts Website. 119 City Collections as ($) Equivalent of Calendar Total 1.00% 0.25% % of Ad Valorem Ad Valorem 0.25% Year Collected City Prop Tax Red Tax Levy Tax Rate EDC 2008 $ 7,051,372 $ 4,700,915 $ 1,175,229 73.89 0.41 $ 1,175,2F9- 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 89.30 0.45 1,362,283 2016 8,472,647 5,648,431 1,412,108 92.56 0.46 1,412,108 2017 8,689,014 5,792,676 1,448,169 89.47 0.45 1,448,169 2018 8,827,668 5,885,112 1,471,278 90.74 0.50 1,471,278 2019 8,921,837 5,947,891 1,486,973 79.25 0.43 1,486,973 2020 9,950,289 6,633,526 1,658,381 87.90 0.45 1,658,381 2021 11,048,083 7,365,389 1,841,347 95.81 0.47 1,841,347 * Sales taxes increased from the prior year due to a one time collection of an amount due from a prior period. This collection alone would have provided the City a 13.50% increase in sales taxes. The remaining increase is consistent with the expected sales tax revenues due to the recovering local economy. Source: State Comptroller of Public Accounts Website. 119 GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES AND ANALYSIS OF CHANGES IN FUND BALANCES UNAUDITED 1,613,946 1,779,229 1,616,363 TABLES 1,666,051 Public Safety Fiscal Year Ended September 30 12,005,945 11,218,944 2021 2020 2019 2018 2017 Revenues: 5,356,374 6,415,221 Health 5,199,358 4,022,732 Ad Valorem Taxes $ 7,971,838 $ 7,380,958 $ 7,552,516 $ 7,357,425 $ 6,933,981 Sales Taxes 9,196,157 8,245,939 7,369,079 7,317,162 7,233,526 Franchise Tax 4,253,182 4,714,021 4,305,851 4,315,694 4,211,397 Hotel Occupancy Taxes 881,259 643,417 675,158 662,263 657,270 Licenses and Permits 211,668 259,117 277,507 197,920 155,363 Fines and Fees 615,721 724,259 434,016 446,670 449,008 Investment Earnings 198,965 304,755 483,876 329,365 206,551 Sanitation 1,470,237 1,462,452 1,437,157 1,470,248 1,463,576 Health 4,806,996 5,117,649 2,991,995 2,614,504 2,609,811 Intergovernmental Revenue 706,574 713,570 1,325,665 677,072 1,463,514 Other Revenues 442,020 381,355 210,946 341,330 253,679 Total Revenues 30,754,617 29,947,492 27,063,766 252729,653 25,637,676 Expenditures: Current General Government 1,613,946 1,779,229 1,616,363 1,541,274 1,666,051 Public Safety 11,367,228 12,005,945 11,218,944 10,884,241 10,963,989 Public Works 4,991,668 5,065,867 5,644,019 5,356,374 6,415,221 Health 5,199,358 4,022,732 2,845,874 2,668,477 2,532,665 Culture and Recreation 677,612 723,046 740,350 734,826 693,078 Cox Field Airport 242,809 179,631 210,851 112,562 134,705 Other 1,838,073 1,922,363 1,845,609 1,716,365 1,743,614 Capital Outlay General Government 252,387 109,280 16,995 10,100 - Public Safety 870,874 403,654 413,250 168,163 178,453 Public Works 941,371 626,741 1,016,738 612,947 248,452 Health 216,631 287,256 303,946 554,083 149,850 Cox Field Airport 65,000 - - 37,275 - Debt Service 186,690 186,690 186,690 186,690 186,690 Other - - 42,187 Total Expenditures 28,463,647 27,312,434 26,059,62924� 24,912,768 Excess (Deficit) of Revenues Over Expenditures 2,290,970 2,635,058 1,004,137 1,104,089 724,908 Other Financing Sources (Uses): Capital Lease - - - • - Operating Transfers In 2,751,240 539,986 18,513 124,968 - Operating Transfers Out (802,211) (29,319) (127,545) (383,374) (44,814) Sale of Capital Assets 151,266 28,000 - - - Insurance Recoveries - 57,835 - - Total Other Financing Sources (Uses): 2,100,295 538,667 (51,197) (258,406) (44,814) Excess of Revenues and Other Sources Over Expenditures and Other Uses 4,391,265 3,173,725 952,940 845,683 680,094 Fund Balance - Beginning of Year 17,150,077 13,451,478 12,670,747 11,622,868 10,839,700 Increase (Decrease) in Reserve for Inventory - - - 40,518 103,074 Prior Period Adjustment (52,060) 524,874 (172,209) 161,678 - Fund Balance - End of Year $ 21,489,282 $ 17,150,077 S 13,451,478 12,670,747 $ 11,622,868 , Source: The Issuer's Comprehensive Annual Financial Reports. 120 CONDENSED WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT (UNAUDITED) TABLE 9 Fiscal Year Ended September 30 2021 2020 2019 2018 2017 Operating Revenues (a) Total Revenues $ 16,567,528 $ 15,043,788 $ 14,452,703 $ 14,168,934 $ 14,236,117 Expenses (°) 10,308,035 9,602,622 10,147,099 9,886,456 9,867,173 Net Revenue Available for Debt Service $ 6,259,493 $ 5,441,166 $ 4,305,604 $ 4,282,478 $ 4,368,944 Annual Revenue Bond Debt Service $64.09 for first 1,000 Cubic Feet $4.83 / 100 Cubic Feet Larger than 2" $225.65 for first 2,000 Cubic Feet $3.87 / 100 Cubic Feet Requirements $ - $ - $ - $ - $ - Coverage of Annual Revenue Bond Requirements N/A N/A N/A N/A N/A Annual Requirements on all Bonds Paid from $ 3,842,897 $ 3,845,397 $ 3,848,957 $ 3,714,257 $ 3,244,870 System Revenues Coverage of Annual Requirements on all 1.63 x 1.41 x 1.11 x 1.15 x 2.17 x Bonds Paid from System Revenues Customer Count: Water 9,762 9,810 9,679 9,698 9,766 Sewer 9,175 9,221 9,189 9,208 9,180 (a) Revenues include operating revenues, interest income and other revenues of the Waterworks and .Sewer System. (b) 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 (UNAUDITED) TABLE 10 Current Rates (Rates Effective July 1, 2021) Residential Class Commercial Industrial Class Service in Excess of Base Meter Size Base Cost {For Each Additional Inches) (Per Cubic Foot) 100 Cubic Feet) 5/8" - 3/4" $13.13 for first 200 Cubic Feet $4.83/ 100 Cubic Feet 1" and Larger $64.09 for first 1,000 Cubic Feet $4.83 / 100 Cubic Feet Commercial Industrial Class Commercial Industrial Class (Meters Greater Than Three Inches Service in Excess of Base Meter Size Base Cost (For Each Additional (Inches) (Per Cubic Foot) 100 Cubic Feet) 5/8" - 3/4" $15.69 for first 200 Cubic Feet $4.74 / 100 Cubic Feet 1" - 2" $62.87 for first 1,000 Cubic Feet $3.87 / 100 Cubic Feet Larger than 2" $225.65 for first 2,000 Cubic Feet $3.87 / 100 Cubic Feet Commercial Industrial Class (Meters Greater Than Three Inches Service in Excess of Base Meter Size Base Cost (For Each Additional Inches (Per Cubic Foot) 100 Cubic Feet) 4" $3,870.33 for first 100,000 Cubic Feet $3.87 / 100 Cubic Feet 6" $5,805.49 for first 150,000 Cubic Feet $3.87 / 100 Cubic Feet 8" and Larger $7,740.65 for first 200,000 Cubic Feet $3.87 / 100 Cubic Feet Source: Information from the Issuer 121 PRINCIPAL WATER CUSTOMERS 2020-2021 (UNAUDITED) TABLE 11 (October 1, 2020 to September 30, 2021) Name of Customer Lamar Power Partners* Campbell Soup Company Lamar County Water Supply Daisy Farms* Paris Generation Kimberly Clark The James Skinner Baking Co. Paris Regional Medical Center Lamar Co. Human Resources Paris Housing Authority Total Total Water Sales as of September 30, 2021 (unaudited) Average Monthly Average Consumption (Gals.) Monthly Bill 18,213,121 $ 28,147 15,133,416 110,584 4,629,829 73,548 2,468,709 15,764 1,823,998 22,855 763,512 28,546 290,375 11,030 194,842 8,168 95,823 3,602 188,596 7,204 43,802,221 $ 309,448 0 $ 8,545,677 t Principal Water Customers represent approximately 43.45% ©ftotal annual water sales. Includes rmv water sates. SEWER RATES (UNAUDITED) TABLE 12 Current Rates Residential Class Meter Size (Inches) 314" or Less 1" and Larger Commercial Industrial Class Meter Size (Inches) 314" or Less 1" - 2" Larger than 2" (Residential Rates Effective October 1, 2021) Base Cost (Per Cubic Foot) $16.47 for first 200 Cubic Feet $81.34 for first 1,000 Cubic Feet (Commercial Rates Effective October 1, 2021) Base Cost (Per Cubic Foot) $21.92 for first 200 Cubic Feet $84.40 for first 1,000 Cubic Feet $168.82 for first 2,000 Cubic Feet Service in Excess of Base (For Each Additional 100 Cubic Feet) $8.141100 Cubic Feet $8.14 t 100 Cubic Feet Service in Excess of Base (For Each Additional 100 Cubic Feet) $8.441100 Cubic Feet $8.441100 Cubic Feet $8.44 t 100 Cubic Feet PRINCIPAL SEWER CUSTOMERS - 2020-2021 (UNAUDITED) TABLE 13 (October 1, 2020 to September 30, 2021) Name of Customer City of Toco Kimberly Clark The James Skinner Baking Co Paris Housing Authority Paris Regional Medical Center Lamar County Human Resources Paris Junior College Spanish Oaks Regency Apartments Wash Masters Total Total Sewer Charges as of September 30, 2021 (unaudited) Average Monthly Average Consumption (Gals.) Monthly Bill 487,917 $ 4,609 403,728 30,099 290,375 12,205 188,596 14,071 151,399 11,347 95,823 7,158 87,036 6,773 82,331 6,103 72,687 5,383 66,969 4,973 1,926,861 $ 102,721 {n} $ 7,134,313 t°t Principal Seiver Customers represent approximately 20.10% of total annual sewer charges. M Item No. 8 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: M.A. Smith, Public Works Director Bill Loranger, Parks/ROWs Department Superintendent SUBJECT: 2022 ANNUAL GROUNDS MAINTENANCE BID DATE: May 9, 2022 BACKGROUND: The City of Paris Public Works Department has sent out a request for bids for grounds maintenance. This is contracted mowing of City Parks. The bid tabulation sheet is attached for details of the bids. STATUS OF ISSUE: The City received one sealed bid for grounds maintenance and would like to award the bid accordingly. While not all parks received a bid, we added 13 acres and fine tuning requirements, edging and weedeating specifically, to the contract, which will provide some time savings for staff. The contract period is May 9, 2022 through December 31, 2022. BUDGET: Funding is budgeted in the various Public Works Departments, primarily the Parks Department. RECOMMENDATION: Award bid to Green's Lawn Service as indicated on the attached bid tabs, in the approximate amount of $94,565.00. 2022 Ground Maintenance Bid Tabulation # Al A2 A3 A4 Parks Bywaters - 300 BK S Main Courthouse - North Courthouse - West Culbertson Park - 800 13th SE Parks Dept Acres 2.49 0.25 0.75 Contracted Acres 6.49 # of Per Year 26 26 26 26 Green's Lawn 3610 Clement Paris TX 75460 903.332.1820 Cost per Mow Annual Cost $0.00 $0.00 $0.001 $0.00 $0.00 $0.00 $375.00 $9,750.00 A5 Farmers Market/Skate Park - 310 1st SW 0.67 26 $0.00 $0.00 A6 Gateway - 2100 BK S Church 1.44 26 $0.00 $0.00 A7 ------------------------ Heritage Park -1200 BK Bonham 8.8 26 $460.00 $11,960.00 A8 Lake Crook Park - CR 31700 8.5 26 $0.00 $0.00 A9 Leon Williams Park - 700 W. Henderson 9.52 26 $0.00 $0.00 A10 Oak Park - 2515 Bonham St. 6.34 26 $460.001$11,960.00 City Pool (Paris Aquatic Center) - A11 1625 Clement 4.02 26 $220.00 $5,720.00 Al2 (Culbertson Fountain and Plaza 0.76 26 $0.00 $0.00 A13 Isports Complex - 2005 S Collegiate 39.88 26 $0.00 $0.00 A14 Wade Park - 2400 E Price 7.62 26 $390.00 $10,140.00 A15 Wise Field - 638 4th S.W. 6.46 26 $310.00 $8,060.00 B1 10th NE Park 0.44 17 $0.00 $0.00 B2 24th SE & Clarksville median 0.23 17 $35.00 $595.00 B3 82 W Roadside Park 2 17 $120.00 $2,040.00 B4 271 N Roadside Park 2 17 $120.00 $2,040.00 B5 2200 College St median 0.18 17 $40.00 $680.00 B6 Cherry St Cemetery - 6th NW & Cherry 2.96 17 $360.00 $6,120.00 B7 Chisum Memorial -1100 BK W Washington 0.98 17 1 $0.00 $0.00 B8 Dragon Park - 24th SE, Collegiate, Jefferson 42.25 17 $0.00 $0.00 B9 Eastgate Park - 48th SE & Eastgate 0.25 17 $45.00 $765.00 B10 Ellis Park - 1310 E Washington 0.91 17 $50.00 $850.00 B11 Joan Mathis Park - 1300 BK Johnson 5.24 17 $350.00 $5,950.00 612 Pauper Cemetery - 17th NE & Price 0.75 17 $95.00 $1,615.00 B13 Travis Tennis Courts - 3270 Graham 0.18 17 $75.001 $1,275.00 B14 Walker Park - 18th NW & Shiloh 18 17 $725.00 $12,325.00 Cl 18th SE & Neathery median 0.04 17 $25.00 $425.00 C2 19th SE & Neathery median 0.03 17 $25.00 $425.00 C3 2400 BK Lamar lot 0.5 17 $75.00 $1,275.00 C4 Plum St Water Basin 3.8 17 $0.00 $0.00 C5 Ridgeview median & 32nd NE 0.15 17 $35.00 $595.00 YEARLY TOTAL 1 115.731 69.15 1 $94,565.00 Item No. 9 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: M.A. Smith, Public Works Director Rufus Hill, Streets Department Superintendent SUBJECT: ANNUAL CURB/GUTTER, DRIVEWAY APPROACHES AND REINFORCED CONCRETE SIDEWALK BIDS DATE: May 9, 2022 BACKGROUND: This is the annual bid for curb/gutter, standard driveway approaches, and reinforced concrete sidewalks to be used by the Street Division, Water Distribution, Sewer Maintenance, and Parks Divisions. The bid tabulation sheet is attached for details of the bids. STATUS OF ISSUE: The City of Paris Public Works Department has received sealed bids for concrete work and would like to award bid according to lowest responsible bidder. Two bids were submitted. BUDGET: Monies are budgeted in the Street, Water Distribution, Sewer Maintenance, and Parks Divisions. RECOMMENDATION: Award bid to Richard Drake Construction as indicated on the attached bid tabs, in the approximate amount of $265,372.50. These are estimated amounts with no guarantees. CITY OF PARIS Beshirs Construction Richard Drake Constr 2022-2023 CONCRETE BIDS Rodney Beshirs 4709 FM 79 Reggie Horton 6290 Hwy 271 N Paris TX 75460 Powderly TX 75473 Item 903.517.4357 903.732.4781 6-inch typical curb and gutter Linear Ft. $26.00 $33.36 Quantity 4500 LF Removal 4500 $7.50 $6.50 Total $33.50 $39.86 Subtotal $150,750.00 $179,370.00 WPA style curb and gutter Linear Ft. $45.00 $62.41 Quantity 50 LF Removal 50 $8.00 $8.50 Total $53.00 $70.91 Subtotal $2,650.00 $3,545.50 Residential driveway replacement Sq. Ft. $8.50 $10.29 Quantity 4000 SF Removal 4000 $3.00 $2.50 Total $11.50 $12.79 Subtotal $46,000.00 $51,160.00 Sidewalk replacement Sq. Ft. $7.50 $8.67 Quantity 2500 SF Removal 2500 $3.00 $2.22 Tota 1 $10.50 $10.89 Subtotal $26,250.00 $27,225.00 Concrete Valley Gutter Sq. Ft. $15.00 $14.76 Quantity 200 S.F. Removal 200 $4.50 $5.60 Total $19.50 $20.36 Subtotal $3,900.00 $4,072.00 Total Cost $229,550.00 $265,372.50 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING THE BID AND AWARDING THE CONTRACT FOR CONCRETE DEMOLITION AND CONSTRUCTION IN THE CITY OF PARIS TO RICHARD DRAKE CONSTRUCTION, LP, THE LOWEST RESPONSIBLE BIDDER; APPROVING SAID CONTRACT AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAME; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris did heretofore advertise for bids for furnishing plant, labor, materials, and equipment, and for performing all work required for concrete demolition and construction in the city, which bids were received until 3:00 o'clock P.M., Tuesday, April 19, 2022; and, WHEREAS, the lowest responsible bidder for said concrete demolition and construction was Richard Drake Construction, LP., 6290 Highway 271 North, Powderly, Texas 75473, whose bid in the amount of TWO HUNDRED SIXTY-FIVE THOUSAND THREE HUNDRED SEVENTY-TWO DOLLARS AND 50/100 ($265,372.50) represents the lowest responsible bid; and WHEREAS, in accordance with the foregoing, said bid should be accepted, and the contract therefor should be awarded to Richard Drake Construction, LP in accordance with the unit prices bid and the other terms and conditions set out in the bid documents attached as Exhibit 2 to the Agreement for Concrete Demolition Construction attached and hereto as Exhibit A and incorporated herein by reference; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble of this resolution are hereby in all things approved. Section 2. That Richard Drake Construction, LP., 6290 Highway 271 North, Powderly, Texas 75473 is the lowest responsible bidder for concrete demolition and construction in the city, and that its bid in the amount of TWO HUNDRED SIXTY-FIVE THOUSAND THREE HUNDRED SEVENTY-TWO DOLLARS AND 50/100 ($265,372.50) provides the best value to the city. Section 3. That the City Manager be and he is hereby authorized and directed to execute on behalf of the City of Paris an Agreement for Concrete Demolition and Construction with Richard Drake Construction, LP in the form attached hereto and incorporated herein as Exhibit A. Section 4. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 9th day of May, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney AGREEMENT FOR CONCRETE DEMOLITION AND CONSTRUCTION STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LAMAR § This Agreement for Concrete Demolition and Construction (the "Contract") for is made and entered by and between Richard Drake Construction, LP, 6290 Highway 271 North, Powderly, Texas 75473, a limited partnership (hereinafter referred to as "Contractor") and the City of Paris, Texas, a home -rule municipal corporation (hereinafter referred to as "City") to be effective from and after the date herein provided. For and in consideration of the covenants and agreements contained herein, and for the mutual benefits to be obtained hereby, the parties hereto agree as follows: I. EFFECTIVE DATE The effective date of this Agreement shall be May 9, 2022. II. CONTRACT DOCUMENTS That the contract documents which are hereby made a part of this Agreement by actual attachment and are incorporated herein by reference hereto are as follows: Exhibit 1 Notice to Bidders and Request for Bids (containing bid specifications) Exhibit 2 Bid Form and Proposal submitted by Contractor III. THE WORK Contractor shall provide all labor, supervision, materials and equipment necessary for concrete demolition and construction in the City of Paris in accordance with the Notice to Bidders and Request for Bids attached hereto as Exhibit 1, together with the Contractor's Bid Form and Proposal attached hereto as Exhibit 2; provided, however, that in the event of a perceived conflict or ambiguity between the Agreement and the contract documents, the provisions of this Agreement, the Notice to Bidders and Bid Specifications, and Contractor's Bid Form and Proposal shall control, in that order. The approximate value of the services to be provided hereunder is TWO HUNDRED THOUSAND THREE HUNDRED SEVENTY-TWO DOLLARS AND 501100 ($265,372.50). IV. TERM/TIME OF COMPLETION Contractor shall commence work under this Contract within three (3) business days following receipt of a Notice to Proceed or work order from the City. Contractor agrees to complete all work called for under this agreement in a professional and timely fashion and in accordance with the work orders received. V. PAYMENT The City shall pay Contractor in current funds for work completed and accepted by the City in accordance with the terms of this Contract. This is a unit price contract and Contractor shall be entitled to payment for quantities completed and accepted by the City at unit prices submitted by Contractor in Contractor's proposal attached hereto as Exhibit 2. Contractor recognizes that this Agreement shall commence upon the effective date herein and continue in full force and effect until termination in accordance with its provisions. Contractor and the City recognize that the continuation of any contract after the close of any given fiscal year of the City of Paris, which fiscal year ends on September 30th of each year, shall be subject to Paris City Council approval. In the event that the Paris City Council does not approve the appropriation of funds for this Contract, the Contract shall terminate at the end of the fiscal year for which funds were appropriated and the parties shall have no further obligations hereunder. VI. INSURANCE AND INDEMNIFICATION That Contractor must, at all times during the term of this Agreement, keep and maintain in full force and effect a policy or policies of insurance, providing at least $500,000.00 per occurrence and $1,000,000.00 aggregate for bodily injury (including death), and damage or destruction of property, indemnifying all persons for any and all damages, personal injuries, or property damages sustained as the result of the negligence of Contractor, its agents, servants, or employees, and Contractor shall pay all premiums due thereon when due. It is expressly provided that such insurance policy or policies shall and must be written and issued by a reputable insurance company or companies licensed to write insurance policies by the State of Texas. The policy or policies shall be written or endorsed to cover the City, its elected officials, officers and employees as additional insured. Contractor or its insurance carrier or carriers shall deliver a copy of any such policies to the City Clerk of the City of Paris, 150 1st Street S.E., Paris, Texas 75460, or furnish to said City Clerk a current letter or certificate from such company or companies, evidencing the fact that such insurance is in full force and effect at all times during this Agreement, and any extensions hereof, and specifically noting thereon that the City, its elected officials, officers and employees are covered as an additional insured. All such policies shall be written so that the City will be notified of cancellation or of any restrictive amendment of the policies at least thirty (30) days prior to the effective date of such cancellation or amendment. Notice shall be by certified mail, return receipt requested, addressed to the City at the following address: City Clerk, City of Paris, P. O. Box 9037, Paris, Texas 75461-9037. The Contractor and its sureties shall defend, indemnify, and hold the City, its elected officials, officers and employees harmless from all suits, actions or claims of any 2 character, name and description brought for or on account of any injuries or damages received or sustained by any person, persons or property on account of the operations of the Contractor, his agents, employees or subcontractors; or on account of any negligent act or intentional wrongful act or omission of the Contractor, his agents, employees or subcontractors in the performance of said contract; or on account of the failure of the Contractor to provide the necessary barricades, warning lights or signs; and Contractor and its sureties shall be required to pay any judgment, with cost including attorneys' fees, which may be obtained against the City growing out of such injury or damage. The Contractor likewise covenants and agrees to, and does hereby, indemnify and hold harmless the City from and against any and all injuries, loss or damages to property of the City during the performance of any of the terms and conditions of this Contract, whether arising out of or in connection with or resulting from, in whole or in part, any and all alleged acts or omissions of officers, agents, servants, employees, contractors, subcontractors, licenses or invitees of the City. VII. PERFORMANCE AND PAYMENT BONDS With the execution and delivery of the contract, Contractor shall furnish and file with the City in the amounts herein required, performance and payment bonds in accordance with Section 2253 of the Texas Government Code and Article 7.19-1 of the Insurance Code, as amended. The sureties shall be listed in the most current Federal Register Treasury List. The City reserves the right to reject any and all sureties. VIII. INDEPENDENT CONTRACTOR Contractor covenants and agrees that Contractor is an independent contractor and not an officer, agent, servant or employee of City; that Contractor shall have exclusive control of and exclusive right to control the details of the work performed hereunder and all persons performing same, and shall be responsible for the acts and omissions of its officers, agents, employees, contractors, subcontractors and consultants; that the doctrine of respondeat superior shall not apply as between City and Contractor, its officers, agents, employees, contractors, subcontractors and consultants, and nothing herein shall be construed as creating a partnership or joint enterprise between City and Contractor. IX. TERMINATION City shall have the right to unilaterally terminate this agreement at any time and for any reason upon thirty (30) days written notice to the Contractor. X. CHOICE OF LAW; VENUE; CONTRACT INTERPRETATION The parties agree that the laws of the State of Texas shall apply to this Agreement, and that it is performable in Lamar County, Texas. The parties further agree that exclusive venue shall lie in Lamar County Texas. 3 XI. ENTIRE AGREEMENT; AMENDMENTS; SUCCESSORS AND ASSIGNS This Construction Agreement, including the contract documents listed in Article II herein, represent the entire and integrated agreement between City and Contractor, and supersedes all prior negotiations, representations, or agreements, either written or oral. This Construction Agreement may be amended only by written instrument signed by both City and Contractor. This Construction Agreement is binding upon and shall inure to the benefit of the parties hereto and their respective successors. IN WITNESS WHEREOF, the parties have executed this Construction Agreement upon the year and date indicated below their signatures hereto. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney CITY OF PARIS, TEXAS Grayson Path, City Manager Richard Drake Construction, L.P., Contractor Title: ACKNOWLEDGMENTS BEFORE ME, the undersigned authority, on this day personally appeared Grayson Path, City Manager of the City of Paris, Texas, known to me to be the person whose same is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 9th day of May, 2022. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned authority, on this day personally appeared , of Richard Drake Construction, LP, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of May, 2022. Notary Public, State of Texas 5 Publish Dates: April 10, 2022 April 17, 2022 NOTICE TO BIDDERS The City of Paris will receive sealed bids at the Office of the City Manager, City of Paris, 135 1 S.E., P.O. Box 9037, Paris, Texas 75461-9037, to furnish and deliver: Concrete Demolition and Construction Instructions to bidder Place completed bid form in a sealed envelope addressed as shown on bid form. Clearly mark on the outside of the envelope "Sealed Bid: Concrete Demolition and Construction" and return to the Office of the City Manager, City of Paris, 135 1` SE, P. 0. Box 9037, Paris, Texas 75461 no later than 3:00 P.M. on Tuesday, April 19, 2022 at which time all bids will be publicly opened at the City of Paris City Council Chamber, 107 E. Kaufinan St., Paris, Texas, read aloud, tabulated and referred to the City Council for consideration. Multiple bids shall be placed in the same envelope. Bids received after the deadline will be returned to vendor unopened. i REQUEST FOR BIDS CITY OF PARIS, TEXAS CONCRETE DEMOLITION AND CONSTRUCTION May 1, 2022 — April 30, 2023 Introduction The City of Paris is requesting bids from responsible and qualified contractors to provide concrete demolition and construction services for the City of Paris to include, but not limited to, curb and gutter, driveway approaches, valley gutters, and sidewalks. More information is provided later in this document. Pursuant to Texas Local Government Code Section 252.021, this Request for Bids is being advertised because the total expense for this project is expected to exceed $50,000.00. The enclosed REQUEST FOR BIDS (RFB) and accompanying specifications are for your convenience. Respondents are cautioned that the Paris Public Works Director is the sole point of contact for the City of Paris (the City) during this bidding process. Any oral statement by any representative of the City, modifying or changing any conditions of this RFB, is an expression of opinion only and confers no right upon the respondent. If additional information is needed to interpret the specifications, written questions will be accepted by: Michael Smith Public Works Director 50 W. Hickory Street Paris, TX 75460 (903) 784-9289 msmith@paristexa,s.gov Submittal Instructions 1, Method of Submittal: Sealed Hardcopy in Envelope No electronic and/or facsimile copies will be accepted. 2. RFB Deadline: Bids ARE DUE NO LATER THAN 3:OOpm on April 19, 2022 Bids opening will be at 3:OOpm on April 19, 2022 at City Council Chambers 107 E Kaufman 3. If Hand Delivery: Destination: City Manager's Office 135 SE V Street Paris, TX 75460 Mark Envelope: RFB: Concrete Demolition and Construction City of Paris Public Works Director's Office 4. If Mailing: City of Paris PO Box 9037 Paris, TX 75461 ATTENTION: City Manager and Public Works Director RFB: Concrete Demolition and Construction 5. Number of Copies: One (1) Original General Information 1. The City of Paris appreciates your time and effort in preparing a submittal. 2. Entities interested in this project are advised to carefully review the information outlined in this RFB and Page 1 of 25 respond accordingly and succinctly, attaching only relevant information. 3. All submissions must be received in accordance with the Submittal Instructions listed above. Any submittal received after this deadline will be rejected. The City of Paris is not responsible for lateness or non-delivery of mail, carrier, etc., and the date/time stamp in the City Manager's Office will be the official time of receipt. 4. Opening is scheduled in the City Hall City Council Chambers at 3:00 pm, April 19, 2021. All are invited to attend. 5. Submittals are to be signed by an official authorized to bind the firm in a contract. 6. The City of Paris reserves the right to reject any and all submittals or waive any irregularities or technicalities in the submittals which at the City's discretion are determined to be in the best interests of the City. The City further reserves the right to make awards to the responsible entity whose submittal is determined to be the most advantageous to the City of Paris. The City further reserves the right to reject any and all submittals responding to this invitation without indicating any reasons for such rejection(s). The City further reserves the right to postpone due dates for its own convenience and to withdraw this solicitation at any time without prior notice. This invitation does not commit the City to pay any costs incurred in preparation of this submittal, or to procure or contract for any services. Careful consideration should be given before confidential information is submitted to the City of Paris as part of your submittal. Review should include whether it is critical for evaluating your submittal, and whether general, non -confidential information may be adequate for review purposes. Information submitted to the City of Paris that the respondent wishes to have treated as proprietary and confidential trade secret information should be identified and labeled "Confidential" or "Proprietary" on each page at the time of disclosure. This information should include a written request to except it from disclosure, including a written statement of the reasons why the information should be excluded from record requests. However, the City of Paris is bound to open records laws and therefore cannot guarantee the confidentiality of any information submitted. 8. A response may not be withdrawn or canceled by the respondent without the permission of the city for a period of ninety (90) days following the date designated for the receipt of responses. 9. Any interpretations, corrections or changes to this specification will be made by addenda. Sole issuing authority of addenda shall be vested in City of Paris Public Works Director. Addenda can be found on the City of Paris website bttps:l/www.paristexas.gov/lll/Public-Works-Recreation. Addenda can also be obtained by calling City of Paris Public Works Director's office at 903-784-9289. It is the responsibility of the respondent to obtain a copy of all addenda pertaining to this RFB. 10. Minimum Standards for Responsible Entity: A prospective respondent must, if requested, affirmatively demonstrate responsibility and ability to meet the following requirements: a. Be licensed in the State of Texas; b. Have adequate financial resources, or the ability to obtain resources required; c. Be able to comply with the required or proposed delivery schedule; d. Have a satisfactory record of performance; e. Have a satisfactory record of integrity and ethics; f. Be otherwise qualified and eligible to receive an award. City of Paris may request clarification or other information sufficient to determine entity's ability to meet these minimum standards listed above. Failure to respond to such requests shall be cause for removal from consideration. 11. Certificate of Interested Parties (Forth 1295): In 2015, the Texas Legislature adopted House Bill 1295, which added Section 2252908 of the Government Code. The law states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity. The disclosure of interested parties will be submitted online via Form 1295 and must be submitted to the governmental entity prior to any signed contract and/or vote by the governing authority. Page 2 of 25 a. The Filing Process: i. Prior to award by City Council, your firm will be required to log in to the Texas Ethics 1_ �� 1� i�m�(�rowforttiil',1 �5�,lliTu andfillout Commission, fir ( �sI�re��°��° �u:d�p�m' � �,P�m�� t�.ma� ������fl��ui� u� __ the Electronic Filing Application. ii. Once submitted, the system will generate an electronic Form 1295 displaying a "Certificate Number." Your firm must print, sign and notarize Form 1295. iii, Within seven (7) business days from notification of pending award by the City of Paris Purchasing Department, the completed Form 1295 must be submitted to City of Paris. iv. Your firm will need to repeat this process and obtain a separate Form 1295 each time you enter into a new contract, renew a contract or make modification and/or amendments to a City of Paris contract. b. Instructions and information are available at https://www/ethics.state.tx.us/tec/1295-Info.htm or you may call the Texas Ethics Commission at (512) 463-5800. BY SUBMITTING A RESPONSE YOUR FIRM AGREES TO ADHERE TO HB 1295 REFERENCED ABOVE Please Note: No action required until notification of potential award by the City of Paris. 12. Price is to be exclusive of any applicable taxes. The bidder is hereby notified that the City of Paris is exempt from state and local sales taxes. The City of Paris tax exemption number is 1-756000635. A tax exempt certificate will be furnished upon request. Proiect Scone Overview It is estimated that 4,500 linear feet of Curb and Gutter, 50 linear feet of WPA Curb and Gutter, 4,000 square feet of Driveway Approaches, 2,500 square feet of Reinforced Concrete Sidewalk, and 200 square feet of Valley Gutters will be repaired and/or installed during the period of May 1, 2021 through April 30, 2022. Exact quantities cannot be guaranteed or determined, but best estimates are as indicated above. Quantities may be increased or decreased to meet the requirements of the Public Works Department during the period shown above. Minimum quantities are not guaranteed. &ecifications and Requirements Demolition and construction of Curb and Gutter, Standard Driveway Approaches and Concrete Sidewalk must conform to the following guidelines and attached drawings. 1. Concrete Curb ,and Gutter: All concrete used for curb and gutter in the City of Paris will have a cement content of not less than 5 sacks of cement per cubic yard of concrete and a minimum compressive strength at 28 days of 3,000 pounds per square inch. The unit price bid for curb and gutter shall include 3 #3 bars of reinforcing steel. All loose material between the form will be removed and the grade wetted prior to the placing of the concrete. An approved curing compound shall be applied to the surface in accordance with Item #6 — "Curing". 2. Concrete Vallee Gutters: All concrete valley gutters shall have a thickness of six (6") inches. Concrete valley gutters shall be reinforced with 44 bars on eighteen (18") inch spacing on both directions. All concrete shall have a minimum cement content of 5 sacks per cubic yard and a minimum compressive strength at 28 days of 3,000 pounds per square inch. An approved curing compound shall be applied to the surface in accordance with Item #6 — "Curing". 3. Aeinforcin„ Steel: All reinforcing steel used on this project shall comply in all respects to Item 440, "Reinforcing Steel" of the Standard Specifications for Construction of Highways, Streets, and Bridges as adopted by the State Department of Texas on June 1, 2004. Payment for reinforcing steel shall be considered subsidiary to the various bid items. 4 Concrete Drivewa,,s: Driveways shall be composed of concrete having a minimum cement content of 5 sacks per cubic yard and a minimum compressive strength at 28 days of 3,000 pounds per square inch. The unit Page 3 of 25 bid price shall also include #3 bars of 12 inch, or #4 bars on 18 inch centers both ways. An approved curing compound shall be applied to the surface in accordance with Item #6 — "Curing". 5. Concrete Sidewalks: a. Materials: Sidewalks shall be constructed of concrete with a minimum cement contents of 5 sacks of cement per cubic yard of concrete, 3% entrained air, and a compressive strength of not less than 3,000 pounds per square inch at 28 days. Reinforcing steel shall be #3 bars on 18" centers both ways located two inches (2") below the top surface of the sidewalk. As soon as the concrete has obtained its initial set, a white pigmented approved curing compound shall be applied. b. Construction Procedure: In general, the grade of the sidewalks shall be established with respect to the curb. Forms shall be set for all sidewalk and shall be true to line and grade. Forms shall be set to provide a minimum cross slope of '/ inch per foot across the sidewalk toward the street. All forms shall remain in place at least twenty-four (24) hours. The plane of all joints shall make a right angle with the surface of the pavement. No joints shall have an error in alignment of more than one-half (112") inch at any point. The edges of the slab at all joints, except where joints are sawed, shall be rounded with an edger having a radius of one- quarter (114") inch, except as otherwise shown on the plans. The edging shall also be done symmetrically on each section with plane of the joint. Longitudinal expansion joints, joints used to separate new from old concrete, and joints around all fire hydrants shall be made of conventional one-half (112") inch asphalt expansion joint material extending completely through the concrete unless otherwise specified on the plans. Contraction joints shall be made in the sidewalk at regular intervals, such intervals generally being equal to the width of the sidewalk. The contractor shall grade or fill, as necessary, along the sidewalk to match the existing ground. Care will be used to insure that adjacent property outside the right-of-way line is protected. 6. Demolition: Contractor is responsible for the demolition, disposal and cleanup of existing curb/gutter, driveway approaches, sidewalk, etc. 7. Construction: Contractor is responsible for the construction of new curb/gutter, driveway approaches, sidewalk, etc. 8. ADA: All construction must comply with American Disabilities Act (ADA) and standard TXDOT specifications, except as amended by the project specifications or drawings to be provided by the City. 9. Site: Contractor is responsible for keeping the project area clean during construction and is responsible for final cleanup of project site. 10. Locations: The City of Paris Public Works Department will assign project areas as needed in various locations. 11. Down Time: The City of Paris will direct the work in coordination with the contractor to expedite completion of work and to minimize any down time and moving time. 12, Inspection: The City of Paris Public Works Department will inspect the project site on a daily basis. 13. Quantities: Quantities shown in this RFB are estimated quantities only. 14. Point of Contact: The contractor selected for this assignment will work closely with City staff. The Street Superintendent, or his designee, will serve as the primary point of contact and will be responsible for coordinating and implementing the subsequent work. Other officials who will be involved in this project include, but are not limited to, the Public Works Director and the City Engineer. Page 4 of 25 Submittal Format All submittals must follow the same format. No exceptions to this format will be accepted. To be accepted for evaluation, the submittal format must address all required components in order. The aim of the required format is to simplify the submittal preparation and evaluation process and to ensure that all submittals receive the same orderly review. All submittals must include the following components: A. Cover Letter and Firm Profile B. Signature Affidavit C. Attachment I — Conflict of Interest Questionnaire D. Attachment lI — Bid Form E. Attachment III — Resolution 2020-052 a. Appendix A — Safety Record Application b. Appendix B — Safety Record Survey, Projects #1-5 Submittal Components A. Cover Letter and Firm Profile: Provide the following information about your firm: • The firm's name, e-mail address, business address, phone number and fax number • Types of services and products offered • Number of years in business • Number of employees • Names of supervisors to be assigned to this project • The location of the offices that would provide the project services • A brief statement of the firin's background, demonstrating longevity and financial stability • Current workload • Demonstrate the ability of your firm to complete deadlines. B. Signature Affidavit C. Attachment I — Conflict of Interest Questionnaire D. Attachment II — Bid Form E. Attachment III — Resolution 2020-052 Selection Criteria If a bid is submitted in which there is a material failure to comply with the Submittal Format and Selection Criteria, such bid shall be rejected and the contract shall be awarded to the next lowest responsible bid conforming to said Submittal Format and Selection Criteria. The City of Paris may use the following selection criteria to evaluate bids prior to awarding a contract: 1. The price; 2. The offeror's experience and reputation; 3. The quality of the offeror's goods or services; 4. The impact on the ability of the governmental entity to comply with rules relating to historically underutilized businesses; 5. The offeror's safety record; 6. The offeror's proposed personnel; 7. Whether the offeror's financial capability is appropriate to the size and scope of the project; and/or Page 5 of 25 8. Any other relevant factor specifically listed in the request for bids, proposals, or qualifications. Following a review of submittals, it is the intent of the City that a contractor will be selected. The City and selected contractor will work collectively to negotiate a contract for the services. If a contract cannot be successfully negotiated with the selected contractor, discussions will be terminated and a contract will be negotiated with another contractor. Subject to a successful negotiation of a contract, City Staff will make a recommendation to the City Council at the next available City Council meeting. All participating contractors will be notified by the City of its final decision. The City is not obligated to provide status updates to contractors of its progress or process. Contract The selected contractor will be expected to use the attached Professional Services Contract for completion of this project. If there are any perceived issues with the attached contract, please note those in writing and submit them with your submittal. The City reserves the right to edit and/or amend the attached Contract prior to and/or during negotiations with a selected firm. Minimum Insurance Please see the attached Professional Services Contract for details on minimum insurance requirements. We thank you for your time and interest in preparing a submittal for the City of Paris Concrete Demolition and Construction RFB. THE REST OF THIS PAGE LEFT BLANK INTENTIONALLY Page 6 of 25 SIGNATURE AFFIDAVIT Please include, this signature affidayit with ,our submittal. The undersigned, submitting this response, hereby agrees with all the terms, conditions, and specifications required by the City in this Request for Bids, and thereby declares that the attached submittal is in conformity therewith. Submittal shall provide the complete information requested above. Include the legal name of the firth and signature of the person legally authorized to bind the firm to a contract. Firm Signature Title Date Telephone Email Page 7 of 25 ATTACHMENT I NOTICE TO ALL CITY VENDORS AND ALL POTENTIAL CITY VENDORS: On May 23, 2005, the Texas Senate passed House Bill 914, adding Chapter 176 to the Local Government Code, and imposing new disclosure and reporting obligations on vendors and potential vendors to local governmental entities beginning on January 1, 2006. Failure to abide by these new statutory requirements can result in possible criminal penalties. The City of Paris is requiring you to complete the attached Conflict of Interest Questionnaire (CIQ) Form, prepared by the Texas Ethics Commission, at the direction of the legislature and strongly recommends you become familiar with House Bill 914, The City of Paris will not provide any further interpretation or information regarding these new requirements; however, you may contact the Texas Ethics Commission at W-11 a/wWW,ethjcs.state.tx.us/-or at 1-512-463-5800. Please remit the CIQ form below with your response. Thank you. Page 8 of 25 CONFLICT OF INTEREST QUESTIONNAIRE FORM CIO For vendor doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Sessiom OFFICELISEONLY This questionnaire is being filed Inaccordance with Chapter 176, Local Government Code, by a vendor who Date Roc&4ed has a business relationship as defined by Section 176.001(1-a) with a loosl governmental entity and the vendor maels requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local governmental entity not later than the 71h business day after the date the vendor becomes aware of facts that require the statement to be ffed. See Section 176.006(a-1), Local Govemment Code, A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code, An offense under this section is a misdemeanor. e of vendor who has a business relationship with local governmental entity. 2T Check this box it you am- filing on, update to a previously filed questionnaire, (The law requires that you file an updated E] completed questionnaire with the appropriate filing authority not later than the 7th business day of the date on which you became aware that the originally filed questionnaire was Incomplete or inaccurate.) Name of lloc,,W government officer about who the information is being disclosed. Name of Officer :41 Describe each employment or other business relationship with the local government officer, or at family member of the officer, as described by Section 176.003(a)(2)(A). Also describe any family relationship with the local government officer. Complete subparts A and B for each employment or business relationship described. Attach additional pages to this Form CIO as necessary. A. Is the l government officer arra family member of the officer receiving or likely to receive taxable income, other than investment income, from the vendor? 1:1 Yes El No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer or a family member of the officer AND the taxable income is riot received from the local governmental entity? El Ye s ED No . . . . ...... !be each employment or business relationship that the ve ndor named in Section I rnamlains with as corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership interest of one percent or move Chock this box If the vendor has given fiv:s local government offIcPr or at family member- of the officer one or more gifils, as descrilmd In Section 176-003(a)(2)(13), excluding gifts d=libod In SW.'HOfl 176.01313(a-l). 70—rla.—II-1711-11r,-",�—I'T'Ir-7�,,u-,—iu-%n,-,,, with fl,,e �w.,rnamn Date . . ....................... Forim poylidedby Texas I::.:t1hicsGornrrk�,�sioin ReVised 11,MV2015 Page 9 of 25 A complete copy of Chapter 176 of the Local Government Code may be found at httpl/www.stalutesJegis.state.tx.usI Docs/LG/htm/LG176,htm. For easy reference, below are some of the sections cited on this form. Loggil GovernMgpLQode QPA1 a : "Business relationship' means a connection between two or more parties based an commercial activity of one of the parties. The term does not include a connection based on,, (A) a transaction that is subject to rate or fee regulation by a federal, state, or local governmental entity or an agency of a federal, state, or local governmental entity; (B) a transaction conducted at a price and subject to terms available to the public; or (C) a purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by, and reporting to, that agency. Local Government Geode l 11176.00(aJ21 UAand B L (a) A local government officer shall file a conflicts disclosure statement with respect to Ea vendor if: **P (2) the vendor: (A) has an employment or other business relationship with the local government officer or a farnfly member of the officer that results in the officer or family member receiving taxable income; other than investment income, that exceeds $2,500 during the 12 -month period preceding the date that the officer becomes aware that (i) a contract between the local governmental entity and vendor has been executed; or (ii) the iocal governmental entity ir, considering entering into a contract with the vendor (B) has given to the local government officer or a family member of the officer one or more gifts that have an aggregate value of more than $100 in the 12 -month period preceding the date the officer becomes aware that (i) a contract between the local governmental entity and vendor has been executed., or (ii) Vie local governmental entity is considering entering into a contract with the vendor. Local Government Code h 176.006fal, and (a-1) (a) Avendor shall file a completed conflict of interest questionnaire if the vendor has a business relationship with a local governmental entity and: (1) has an employment or other business relationship with a local government officer of that local governmental entity, ora family memberof the officer, described by Section 17&003(a)(2)(A): (2) has given a local government officer of that local governmental entity, or a family member of the officer, one or more giftswith the aggregate value specified by Section 176.003(a)(2)(8), excluding any gift described by Section 176-003(a-1); or (3) has a family relationship with a local government officer of that local governmental entity. (a-1) The completed conflict of interest questionnaire must be filed with the appropriate records administrator riot later than the seventh business day after the later of: (1) the date that the vendor: (A) begins discussions or negotiations to enter into a contract with the local governmental entity, or (8) submits to the local governmental entity an application, response to a request for proposals or bids, correspondence, or another writing related to a potential contract with the local governmental entity; or (2) the date the vendor becomes aware: (A) of an employment or other business relationship with a local government officer, or a family member of the officer, described by Subsection (a); (B) that the vendor has given one or more gifts described by Subsection (a)-, or (C) of a family relationship with a local government officer. Form provided by Texas Ethics Commission www,eIhics.staIc.rx.us Revised W3DI2015 21�� ATTACHMENT II BID FORM CONCRETE DEMOLITION AND CONSTRUCTION MAY 1, 2022 — APRIL 30, 2023 Name of Contractor: Address: Phone Number: _ ....... �... . The following bid form contains estimated quantities for bidding purposes. The City of Paris does not guarantee these quantities as exact amounts for purposes of actual work to be performed from May 1, 2022 to April 30, 2023. If the bidder does not wish to bid on an item below, please write "No Bid" on the line provided. The Bidder hereby states that the following is in compliance with the RFB Specifications and Requirements and is bid as unit prices and not lump sum. A. Curb and Gutter Installation — City Standard, 6" — Estimated Quantity: 4,500 L.F. $ ..... per L.F $ „ per L.F. Removal and Disposal $....................... .. ......... ... Total price B. WPA Style Curb And Gutter To Match Existing Installation — Estimated Quantity: 50 L.F $......_.. .. _.............:........ _.. per L.F. $ per L.F. Removal and Disposal $ Total price C. Driveway Approach Installation — City Residential Standard — Estimated Quantity: 4,000 S.F. $ .. ...... per S.F. $ per S.F. Removal and Disposal $ .... Total price D. Sidewalk — City Standard — Estimated Quantity: 2,500 S.F. $...---- ........................ Per S.F. $ per S.F. Removal and Disposal $ ,,...,, ...... ...... ......... ...... Total price Page 11 of 25 E. Valley Gutters — Estimated Quantity: 200 S.F. per S.F. per S.F. Removal and Disposal Total price Signature: Name: Title: Date: Page 12 of 25 ATTACHMENT III RESOLUTION NO. 2020-052 rob 619010011110901:6 9; 1 plot N 11WO) a V.11 414 pmifw, mi 5111 Wil 101 1 U.&AW 0 1 MAN AM,- P I'll 914*111 NQ1 110 # . I M. - FOR DETERMINING IF A PROSPECTIVE BIDDER IS A RESPONSIBLE BIDDER. Nnmu��! 1 I . WHEREAS, Chapter 252.021, Texas Local Government Code, states that q1' than $50,000.00 from one or more municipal funds, the municipality must' ffcomplywitha method described by Chapter 2269, Texas Government Code"; and WHEREAS, Chapter 2269, Texas Government Code, governs the procedures for the contracting and delivery of construction projects for municipalities; and WHEREAS, Chapter 2269 provides several methods by which a city may [procure and contract for such services, and WHEREAS, Chapter 2269, Subchapter C, sets forth the competitive bidding li-IRA -#--ttm-VJ+r t4e ca 01. re a11111ation,iorrepalrula IdLUILJ' ure) 111ou 99MTTfflFM4-WffRfflPL awarding the contract to the lowest responsible bidder; and WHEREAS, Section 2269.05 5 sets forth criteria that a governmental entity may but not limited to the safety record of the offeror, the offeror's experience and reputation, and any other relevant factor specifically listed In requests forbids, proposals, or qualifications; and WHEREAS, the City Council of the City of Paris, Texas, desires to implement Texas Government Code Chapter 2269 and to adopt a Safety Record Policy and Bid Specification Criterii to review the performance of all prospective bidders in TawTr "ingTFILFALU; PUI Chapter; and WHEREAS, the City of Paris will include in the specificatioris on various bid projects a safety application and safety survey related to the safety record of prospective bidders and will set out the criteria by which the bids, proposals, or quacations will be judged; and WHEREAS, the results of the information received will be used by Staff to y f such contracts for public works projects as set forth in Chapter 2269; Page 13 of 25 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: SECTION 1. The above recitals are found to be true and correct and incorporated herein for all purposes. SECTION 2. The City Council of the City of Paris, Texas hereby adopts the policy attached hereto as Exhibit A and Incorporated herein by reference regarding Contracting and Delivery Procedures for Construction Projects, including Bid, Proposal, and Qualifications Specification Criteria which includes factors that may be used in determining whether a prospective bidder is a responsible bidder on the basis of safety and other relevant information. SECTION 3. The City Council of the City of Paris, Texas, hereby authorizes the establishment of a Safety Record Policy, which includes an Appendix "A" Safety Record. Application and an Appendix "B" Safety Record Survey, a copy of which is attached to this Resolution as Exhibit B and incorporated herein by reference. SECTION 4. The Safety Record Policy and Bid Specification Criteria will be provided to all prospective bidders as part of the contractors bid specifications packet. SECTION 5. This Resolution shall be in full force and effect from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ON THE 14T]" DAY OF DECEMBER, 2020. Ellis, City Clerk ffROVED AS TO FORM: 41 �f , AV Stepanie H Harris, City Attorney Steve ` Cliffor ,, I.D., Mayor Page 14 of 25 [:nl 1111# LZ I ff_fff� CONSTRUCTION PROJECTS Purpose of Policy.- The purpose of this policy is to Implement Chapter 2269 of the Texan" Government Code, 'Contracting and Delivery Procedures for Construction Projects" for all construction projects involving expenditures over the amount of $50,000-00. "A', 5"irm k r; cwLrs tor consTrEcatin projecki, ui P4_X11LW'U1-im; *ixk Lrk:-, 04MI-n7l, the Texas Government Code, and the City may from time to time avail Itself of each of the methods set forth in said Chapter 2269 as it may from time to time be amended. Such methods include: Subchapter Q Competitive Bidding Method Subehapter D: Competitive Sealed Proposal Method Subch2pter E.- Construction Manager -Agent Method Subchapter F: Construction Manager -At -Risk Metho4 Sub,chapter G: Building Using Design -Build Method Sulachapter 1: job order Contracts Method 9 i N7191 0 1 1, N' 1 1, gr"Wion 2Z6,5, Texas Government Loae, me L.7y or 7107-� TYPTIMe 1011uwing untend to evaluate bids, proposals, and qualifications prior to awarding any cfn contract under this policy, 'including but not limited to using the criteria to determine whether a bidder under Chapter 2269 Subchapter C, "Competitive Bidding Methodn is a responsible [cidder 1. The price; 2. The offerov's experience and reputation, 3. The quality of the offeroes goods or services; 4. The Impact on the ability of the governmental entity to comply with rules relating to historically underutilized businesses; 5. The offeror's safety record; ® The offeror's proposed personnel; 7. Whetherthe offeror financial capability is appropriate to the size and scope of the project, and/or 8. Any other relevant factor specifically listed In the request for bids, proposals, or qualifications. Page 15 of 25 1w INNIANOr'" to ! R E; I f i• 1 1 1 R: "OWN i ■+ i set forth in Texas Government Code Chapter 2269, Copy of Policy 1Selection #tbeprovided kall offerors:Include copyof thisPolicy 4 theSafetyRecord 1 1 ',.all _ is i. for bids, R i E R 1. qualifications 1"underPolicy. Page 16 of 25 X41411%1 -y" CITY OF PARIS The City of Paris, Texas shall determine the safety record of prospective bidders through the administration of a Safety Record Policy. Ot the criteria shall be included in bid specifications depending upon the size of the contract of the services to be rendered. This document will be required when submitting a formal bid (See Appendix The performance measures for the safety record are in accordance with Section of a prospective bidder. The criteria include the follomdng; IrIUMM "IfTWOMM "N The Survey in Appendix "B" shall be sent to the contractors references to provide information on the safety record of the prospective bidder. The results will be tabulated and included in the Information provided to the City Council when determining the most responsible bidder. Page 17 of 25 APPENDIX "A" SAFETY RECORD APPLICATION Bidder's Name: A. List the last five (5) projects on which you were the successful bidder. Provide a name and address for each proj ect. Project #1 Project #2 Project #3 Project #4 Project #5 B. List any lawsuits; administrative or arbitration proceedings to which you have been a party in the last three (3) years. Give the style of case, number and names and addresses of the other parties. Page 18 of 25 C. Provide three (3) credit references, one of which must be a financial institution. Reference #1 Reference #2 Reference #3 D. Provide the name and address of each Workers' Compensation insurance carrier(s) for the last five (5) years. WC Carrier #1 WC Carrier 92 WC Carrier #3 WC Carrier #4 WC Carrier #5 Add an additional sheet if more. E. List claims made against you by your employees or third parties for personal injury, death or property damage on projects listed in Item A. Project #1 Project #2 Page 19 of 25 Project #3 Project #4 Project #5 Page 20 of 25 APPENDIX "B" SAFE'T'Y RECORD SURVEY PROJECT ##1 Page 21 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #2 3. Did the bidder show character, responsibility, integrity, good reputation and experience? 1 2 3 4 Company Name: Authorized Signature: Date: Page 22 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #3„ 3. Did the bidder show character, responsibility, integrity, good reputation and experience? 1 2 3 4 Company Name: Authorized Signature: Date: Page 23 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #4 Page 24 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJEC„T #5 1 2 3 4 3. Did the bidder show character, responsibility, integrity, good reputation and experience? 1 2 3 4 Company Name: Authorized Signature: Date: Page 25 of 25 N ATTACHMENT II BID FORM . CONCRETE DEMOLITION AND CONSTRUCTION MAY 1, 2022 — APRIL 30, 2023 Richard Drake Construction Company L.P. Name of Contractor: _____ Address: 6290 Hwy. 271 North Powderly, TX 75473 Phone Number: 903.732-4781 The following bid form contains estimated quantities for bidding purposes. The City of Paris does not guarantee these quantities as exact amounts for purposes of actual work to be performed from May 1, 2022 to April 30, 2023, If the bidder does not wish to bid on an item below, please write "No Bid" on the line provided. The Bidder hereby states that the following is in compliance with the RFB Specifications and Requirements and is bid as unit prices and not lump sum. A. Curb and Gutter Installation —City Standard, 6" —Estimated Quantity: 4,500 L, F. $ 1111 ____3_3..36_, per L.F $ 6 5� per L.F. Removal and Disposal $ 39.86 Total price B. WPA Style Curb And Gutter To Match Existing Installation -- Estimated Quantity: 50 L.F. $1,11,1111,62.41,11,11111, —,,, per L.F. $ .........� oo _, per L.F. Removal and Disposal $ _ 70.91 ... Total price C. Driveway Approach Installation — City Residential Standard -- Estimated Quantity: 4,000 S.F. $ Q.29 ............. per &F. _2..50 per S,F, Removal and Disposal $ _1111:. 12.7119'... ...—Total price D. Sidowalk — City Standard ---1 Estimated Quantity: 2,500 S.F. $ $.,67 per SY. $ 2.22 per SY, Removal and Disposal $._ ........10.89 Total price Page 1 I of 25 E. Valley Gutters — Estimated Quantity, 200 SY S14.76 . ...... , per S.F. . ........ 5,60 per S.F. Removal and Disposal Total price Signature: Name; Tex R. Horton Vice President Title; . .. ... ... ... .... . ...... Date: 04/19/2022 Page 12 of 25 ® SIGNATURE AFFIDAVIT plesse in Igoe this,siQnstare affidavit with } of r submit . The undersigned, submitting this response, hereby agrees with all the terms, conditions, and specifications required by the City in this Request for Bids, and thereby declares that the attached submittal is in conformity therewith. Submittal shall provide the complete information requested above, Include the legal name of the firm and signature of the person legally authorized to bind the firm to a contract. Richard Drake Construction Company L.P, . __ .... _ ..._ ..... �w,.�_ Firm A��� Signature �3� �'l�rt,,� Vice President ZZQ� Title April 19, 2022 .... . ........_ . Qate 903-732-4781 Telephone (drake@rdcclp.com rhorton@rdccip.com ........ ._........... Email Page 7 of 25 ATTACHMENT NOTICE TO ALL CITY VENDORS AND ALL POTENTIAL CITY VENDORS - On May 23, 2005, the Texas Senate passed House Bill 914, adding Chapter 176 to the Local Government Code, and imposing new disclosure and reporting obligations on vendors and potential vendors to local governmental entities beginning on January I, 2006. Failure to abide by these new statutory requirements can result In possible criminal penalties. The City of Paris is requiring you to complete the attached Conflict of Interest Questionnaire (CIQ) Form, prepared by the Texas Ethics Commission, at the direction of the legislature and strongly recommends you become familiar with House Bili 914. The City of Paris will not provide any further interpretation or information regarding these new requirements; however, you may contact the Texas Ethics Commission at http:i/www,pt4lg st4We x,qgor at 1-512463-5800. Please remit the CIQ form below with your response. Thank you. Page 8 of 25 ...... .................. . . . . . . ....... CONFLICT OF INTEREST QUESTIONNAIRE FORM CIO For vendor doing business with iocal governmental entity ..................... . . . ........ This questionnaire reflects changes made to the low by H.S. 21, 641h tog., Regular Sossion. j OFACEUSEONLY This questionnaire Is being god in accordance with Chapter 176. Local Government Code, by a vendor who '"&'Ite �RewWW has a business relationship as dafted by Section 175,00141-0) with a local governmental entity and Ike vendor meets rGquW=nts under Section t 76-008(a). By low this quostionnalre mud be Cited with the records adrWnIstralor of the local governmental enlify not later than the 71h business day after the date the vendor becomes aware of facts that require the statement to be Bled. See Section 176.006(&1). Local Gaimmment Code. A vendor commlis an offense 9 the vendor knowingly violates Section 176.006, Local Government Code. An dense under ibis section Is a mledernoarm. J .' --. T . 1- ........ . . . ...................................................................... l Nameo�e ;'w'ho has a business relationship with local governmental entity, Richard Drake Construction Company L.P. . ......... Check this box 11you are filing an update 10 a previously Flied questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing aulhoft not later than the 711h business day after the date on which you became aware that the originally flied questionnaire was Incomplete or Inaccurate.) mririr.. ......................................... ............... . . . . . ................ ..................... . . ..................... . ..... . . . ...... . . . . . ............ ...... .................................... . . . . . .. . . . ................................................. . . ... . . . . ..... Name of local government off about whom the Information Is being disclosed. NONE . ....... . ........................... Name of Officer . . . . . ............................................ . . . . ....... . ................. . . Qascribe each employment or other business relationship with the loco] government officer, or a family member oftho . . . . ............................. . . . . . . .. .. .. . ............. officer, as described by Section 11743,01113(s)(2XA). Also describe any family relationship with the local government officer. Complete subparts A and S for each employment or business relationship described. Altachaddillonall pages to this Form CIO as necessary. N/A A. Is the local government officer or a famfiy member of the officer receiving or likely to receive taxable Income, other than Investment Income, from the vendor? n yes ID No S. Is the vendor receiving or likely to receive taxable Income, other than Investment Income, from or Ed the direction of the local government officer or a family member of the officer AND the taxable Income Is not received from the local governmental entity? r-1 Yes F-1 No employment ... ... . . . --- . . . . . .......................................... ..-- ............... Describe each ment or business relationshipwwwww government vendor Irl Section I maintains with a corporation at other business entity with respect tow the local government officer serves as an officer or director, or holds an ownership Interest of one percent or more. NONE . ...... ........... ............. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .......................................... . . . . . ........................ ...... . ..... . . . . . . . ....................... - -- - -------- - . . . . . . .. . .. . .. . . . . . ........................................... . .. . .. ❑Check this box if the vendor has given the local government officer or a family member oilthe officer one or more oft as described In Section 1176.0D3(a)(2)(8), excluding gifts described In Section 176.003(a-1). ?T . . . . . ....................... . ....... . ........... . . . . . . . . . . . . . ................ . ......... - -------- ...................................... . . ............... . . . .... . 04/19/2022 Signature of vendor do] ng business Witk the government R enro7y F6-lm provided #1y Texas Ethics --C" 'o" m -ml a s I on . . . . . . . . .............................. . ....... W`w`w, al-hic, s, -8, -ta" -t e.-I X-" -u-s- . . ........Revised -.......... .................. t1130/2015 Page 9 of 25 CONFLICT OF INTEREST OUESTIONNAIRE For vendor doing business with local governmental entity A complete copy of Chapter 176 of the Local Government Code may be found at httpl/www.statutes.legis.state.tx.usl Docs/LGlhtnVLG.176.htm. For easy reference, below are some of the sections cited on ibis form. Local Gpyeromsni Code § 176.00111•a): "Business relationship" means a connection between two or more parties based on commercial activity of one of the parties, The term does not include a connection based on: (A) a transaction that is subject to rate or fee regulation by a federal, state, or local governmental entity or an agency of a federal, state, or local governmental entity; (B) a transaction conducted at a price and subject to terms available to the public; or (C) a purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by, and reporting to, that agency. Local Government Code 4 176.00 a 2 A and—0: : (a) A local government officer shall file a conflicts disclosure statement with respect to a vendor if: (2) the vendor: (A) has an employment or other business relationship with the local government officer or a family member of the officer that results in the officer or family member receiving taxable income, ether than investment income, that exceeds $2,500 during the 112 -month period preceding the date that the officer becomes aware that (1) a contract between the local governmental entity and vendor has been executed; or (fi) the local governmental entity is considering entering into a contract with the vendor, (B) has given to the local government officer or a family member of the officer one or more gifts that have an aggregate value of more than $100 in the 12 -month period preceding the date the oflicer becomes aware that: (f) a contract between the local governmental entity and vendor has been executed; or (ii) the local governmental entity is considering entering into a contract with the vendor. Local _} Government sh& °'176A- %0q' nd (a 1„) all file a completed conflict of interest questionnaire if the vendor has a business relationship with a local governmental entity and: (t) has an employment or other business relationship with a local government officer of that local governmental entity, or a family member of the officer, described by Section 176.003(a)(2)(A); (2) has given a local government officer of that local governmental entity, or a family member of the officer, one or more gifts with the aggregate value specified by Section 176.003(a)(2)(B), excluding any gift described by Section 176.003(a-1); or (3) has a family relationship with a local government officer of that local governmental entity. (a-1) The completed conflict of interest questionnaire must be filed with the appropriate records administrator not later than the seventh business day after the later of: (1) the date that the vendor: (A) begins discussions or negotiations to enter into a contract with the local governmental entity; or (B) submits to the local governmental entity an application, response to a request for proposals or bids, correspondence, or another writing related to a potential contract with the local governmental entity; or (2) the date the vendor becomes aware: (A) of an employment or other business relationship with a local government officer, or a family member of the officer, described by Subsection (a); (8) that the vendor has given one or more gifts described by Subsection (a); or (C) of a family relationship with a local government off !car. Form provided by Texas Ethics Commission www.eihics.state.ix.us Revised 11=201b Page It) of 25 EXHIBIT B CITY OF PARIS SAFETY RECORD POLICY The City of Paris, Texas shall determine the safety record of prospective bidders through the administration of a Safety Record Policy. The Safety Record Policy is an evaluation unit which provides previous performance information on prospective bidders. An application and information sheet providing the criteria shall be included in bid specifications depending upon the size of the contract of the services to be rendered. This document will be required when submitting a formal bid (See Appendix "A"). CRITERIA The performance measures for the safety record are In accordance with Section §252.0435 of the Texas Local Government Code which authorizes the governing body to adopt written definition and criteria for accurately determining the safety record of a prospective bidder. The criteria include the following: A. The las five (5) projects on which the bidder was the "successful bidder". B. Any lawsuits, proceedings or arbitration filed against the bidder. C, Credit references including a financial Institution. D. Workers' Compensation insurance carriers. E. Claims of personal injury, death or property damages on any project(s). EVALUATION LUATION The Survey in Appendix "B" shall be sent to the contractors references to provide Information on the safety record of the prospective bidder. The results will be tabulated and included in the information provided to the City Council when determining the most responsible bidder. Page 17 of 25 APPENDIX "A" SAFETY RECORD APPLICATION Bidder's Name: Richard Drake Construction Company, L.P. . . . . . ........ ...... .. ........ . . ....... . . ....... A. List the last five (5) projects on which you were the successful bidder. Provide a narne and address for each project. Project #1 Campbell Soup Company - Waste Field Improvements 11 . ........ ........ ...... . ...... 500 NW Loop 286 I'll . ................. -- - ............ . ...... Paris. TX 75460 408 N. Webb St. 11.ugp.QK 7474.3 Project #4 Libertv Bank - Branch Addition . . ................ . ..... 140 N. Colle( iate Dr. Paris, TX 75460 . . ........ . . . . ......... Project 45 q#y of Paris - Church Street Paving . .......... 150 1 st"I'S1. SE111- ............. .......... — --- Paris,. ITX 7.546Q - .. -, B. List any lawsuits; administrative or arbitration proceedings to which you have been a party in the last three (3) years, Give the style of case, number and names and addresses of the other parties. Lawsuit setteled in March 2022 for Truck Accident that did notpertain to .. . ... ..... - ..... I'll, the Con&uction part of the Company. . . . . . ......... Pending - Truck Wreck for damages with TxDept of Criminal Justice Page 18 of 25 C. Provide three (3) credit references, one of which must be a financial institution. Reference #I First Federal Community Bank See the attached Reference Letter for Brad Myers - President FF ...... ...... Reference #2 David - Matt Rooker - Rooker Asphalt Company . . .... ................ . P.O. Box 551044 Dallas Texas 75355-1044 Coston & Son Concrete - Kyle Coston Reference #3 155 East Oak Avenue Paris, TX 75460 WC Carrier Texas #3 2020 - TeMutual Ins. Co. . . . ........ 11111-11111 . ...... ................ . . . ........ .... .... 11 . . . .............. - 2200 Aldrick Street, Austin TX 78723 Add an additional sheet if more. E. List claims made against you by your employees or third parties for personal injury, death or property damage on projects listed in Item A. Project #I None Project #2 Page 19 of 25 Project #3 Project #4 Project #5 Page 20 of 25 Name of Bidder: Sent To: Name: Address: Phone: Project: Please circle the number that best represents your rating of performance with regard to the above "Bidder". 1=Poor Z=Average 3=Goad J9=Exee{leat 1. Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? 1 2 3 2. Did the bidder perform the contract or provide services promptly, or within the time required, without delay or interference? l 23..„ 4 3, Did the bidder show character, responsibility, ince and reputation and experience? l 2 3 4 Company Name: i . i s�� L � t 4 , , Authorized Signature. _ - ------- Date. late APPENDIX "B" SAFETY RECORD SURVEY PROJEC F, #1 Page 21 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #2 Name of Bidder.. Richard Drake Construction C p�, 1� n L.P Richard . - - I "I'll I �� -. 11 11-1111, Sent To: Bobbi, Smallwood Construction Name: Sheri Arnold Address: 555 Lamar Avenue_ Pari g, EK 7 firj Phone. 903-249-1641 111-1-11-1 .. . .. . .. . .. . .. ... ... ........... . . . Project: QrocKqtlJEli%me allow Please circle the number that best represents your rating of performance with regard to the above "Bidder". I =Poor 2= Average 3=Good 4=Excelient I. Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? 1 2 3 2. Did the bidder perform the contract or provide services promptly, or within the time required, without delay or interference? 1 2 3 3. Did the bidder show character, responsibility, integrity, good reputation and experience? 1 2 3 (D Company Name: Bobbv Smallwood Construction, Inc . . . . ... ....... . .. ...... Authorized Signature-. 46a-Z&� ........ . . . . . . . ....... . ........ Date: 03/28/2022 . . ............ Page 21 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT 43 Name of Bidder: Richard Drake Construction Company, L.P Sent To: Paris ISO Name: Terry Anderson Address; 1920 Clarksville. St, .Paris. 'TX 75460.. .... Phone; 943-573-0244 .... _. Project: Paris 190 - Paris JH - New wilding Foundation & Can to Please circle the nucober that best represents your rating of performance with regard to the above "Bidder". 1=Poor 2=Average 3=Goad 4=Excellent 1, Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? r� 1 2 3 4 2. Did the bidder perform the contract or provide services promptly, or within the time required, without delay or interference? I 2 3 3, Did the bidder show character, responsibility, integrity, good reputation and experience? I 2 3 4, Company Name: Authorized Signature: Date: Fage 21 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #4 Name of Bidder: Richard Drake Construction Company, L.P. Sant To: Klewitt/TIG - The Industrial Company . ...................... ..... Narne: Dale Komarek Address: TX 75435 Phone: 972-670-7674 Project: Sam�,Son 2 Solar - Countj,, RO!Mi„,rovements Please circle the number that best represents your rating of performance with regard to the above "Bidder”. I =Poor 2=Average 3=Good 4=13xcelleiit I Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? 1 2 3 2. Did the bidder perform [lie contract or provide services promptly, or within the tinie required, without delay or interference? 2 3 C, 3. Did the bidder, show character, responsibility, integrity, good reputation and experience? 1 2 3 Company Name: Authorized Signature. Date, Page 21 of 25 APPENDIX "B" SAFETY RECORD SURVEY PROJECT #5 Name of Bidder: Richard Drake Construction Comi =ani, L.P Sent To: Lonestar Truck Group Please circle the number that best represents your rating of performance with regard to the above "Bidder". I =Poor 2=Average 3=Good 4=Excellent 1, Did the bidder provide quality, availability and adaptability of the supplies, materials, equipment or contractual services as required? 1 2 3 Q 2. Did the bidder perform the contract or provide services promptly, or within the time required, without delay or interference? Page 21 of 25 RICHARD DRAKE CONSTRUCTION COMPANY RICHARD DRAKE CONSTRUCTION COMPANY, L.P. COMPANY PROFILE COMPANY NAME: Richard Drake Construction Company L.P. MAILING ADDRESS: 6290 Hwy. 271 N. Powderly, Texas 75473 E-MAIL ADDRESS: ldrake rc.rdcclp.com PHONE: (903) 732-4781 FAX: (903) 732-4340 TYPES OF WORK PERFORMED: Asphalt and Concrete Paving and demo, Concrete Slabs, Site Work, Pipe Work, Trucking, Aggregates, and Hot -Asphaltic Material YEAR STARTED IN BUSINESS: 1981 NUMBER OF EMPLOYEES - 90 SUPERVISOR THAT WILL BE ASSIGNED TO THIS PROJECT: Florentino Salazar LOCATION OF OFFICES: 6290 Hwy. 271 North, Powderly, TX 75473 4735 Lamar Avenue, Paris Texas 75462 221 CR 12530, Paris Texas 75462 Our company has 41 years' experience and had established relationship with various Material Vendors and Financial Institutes in this area and has the financial ability to complete this project. Richard Drake Construction has the bonding capacity more than $50 million with $100 million in aggregate backlogs. Richard brake Construction has a history of completing projects on time or ahead of schedule if the weather or changes within the scope of work remain the same as the project was bid. All our projects with deadlines are Asphalt Projects with TxDOT, Asphalt Project for the City of Hugo, Asphalt Project for the City of Blue Ridge, Curb and Gutter Project for the City of Sulphur Springs and Curb and Gutter Project 2021 which is expiring for the City of Paris, 6290 Hwy 271 N 4 POWDERLY, TEXAS 0 75473 0 903.732.4781 0 FAX -903,732.4340 "The only bank you'll ever need"„ FIRST FED RAL ��IV COMMUNITY JRAN� SSB March 22, 2022 To Whom It May Concern RE, Richard Drake Constructioh Co LP our bank serves as the credit nd deposit facility for Richard Drake Construction Co LP. We value our relationship with this very im.ortant customer and offer our strongest recommendation of them to you and request all courtesy. Wetave had a 35-40 year relationship with the principal, Richard Drake. The deposit relationship has been handled very professionally with adequate balances. The credit relationship inciud+j s a Line of Credit for $2,000,000, with a current balance of $2,000,000, The guarantor on the Line of Credit is Richard Drake. if you should need any additignal information, please do not hesitate to contact me, Respectfully, .0 Brad Meyers ._.� President, CEO PARIS DOWNTOWN PARIS LOOT' CLARKSVILLE 630 Clarksville Streel 3010 NE Loop 2136 1902 West Main 5treel Parls,'I-X 75460 Parle. TX 7560 ClarF,svlIle, TX 73426 903.784-0881 903-669-0600 903.427-3858 MT- PLEASANT 805 NOW) Madison Mt. Pleasant, TX 75455 903.577-1118 FFCBANK.COM Member FDIC 1 (MPORTANT N' ST ATB Op 7°> RB C{3Ri�AIT 1pki .011iriES .. ....:.. aiftlPt►#31StQTiC£t1lt3Q 11pRTANT` To o�sf2lu irtfta car tae at , ..:p mog 6btener o para Boake r na qua. . ] ode Wmu r e tins 3I Ole f►LiMIMF) .# S E'�d . l7Si � i fti - `(it�i I i dG h(i $ W@rffig :N ional insurance. ConWanyi :�4f� , �1$� Ei35l�arit� WeS�feltf �1IAt1i33i3al y, F ar ars it e . #rt 4i�s .toiler- .- sura a Gtsr ]►; -Ah. l r. 0 Farn�era lept t ober tot. iri€t r an or %eke a ~ ins uFance and �s Para i tr�:om�n `q pare t.CoMwe fll- . You.mw alold wTft m" 3 odoWd wsur e,: Llsted tarr,kon puede .VV id Ih irartce. :c�mpar '1N fiia#i� nsu��€rare OFF.WY , y, West i d, i a : ins�rr ce: arititar E?h o pffm I ' u n 'Vit:. I P tt , dlt�r a nc+e :., . Cosa au Attit' d Fai l: Bored fleerkia : OneFf Cite :: `F+ 0. Bit 1 J fi. 8v)t.fidC AfVe 00 { kn Fax #W 5.r r # Tis irttratf .' Fi +wen rrnia: de 1ne #o : 'fin Mian: Pem ara: citriei .:cerca de dies, Sa Y r may �e 'to t# T6AIS i a tt cif de aE Hepar i d eo�tros de mvmoe, tau Pro#��► a (11 7 - �►) '� st `:F t� +c .Secy SMC 111 A : P Baas ''EP.O.Bic 1so I. . ham, 't 49Mi A iu�. TX w 1 . . 512 1a13.df:s4av ; :. i4[iiAA t3R Ct i�tS'tfST TZ DlSPi SiitBlA d ] f a ! pr iwft or :: f *he,..Una di i rriie P it a o o Kiri 260W .a dam,YOU ZhoWd �Ct amt, We etd : roOa , deter cong%*ype cad .et ageht,*West d I +mpany, iNea a sl [ ti # i `. frrsi n e: ix.ManyW�tEield i rtai 1n i iae YS Qhatr F m�era 1 amply- , ii . gip , . Quo :irate inst race i✓orr y r>~i is t red, ay.izs�rc the T :: ::prem;: ae; #►e puedeF i iP� G[3: :, @llfiDfiC OOrril�li r ! e� Sipaftmento - �kTTJGH Nl7E fio Pt:[C�F• ►� �41dfl A .9 P e ave es Tipstic €.#roriy argil des ire :: sir[o para tP� de forst Y r s caa�rierte, a pa .cr �Wo o .atta� 4*e� rjt part ::o icon. del €l tc a ri%..' . . Bid Bond SURETY DEPARTMENT Conforms with the American Institute of Architects, A.LA Documents No. A-310 KNOW ALL MEN BY THESE PRESENTS, That we, Richard Drake Construction n Com paw L uP. as Principal hereinafter called the Principal, and Westfield Insuranc„e C n err OH as Surety, hereinafteCompany, a corporation created r called the Surety, are held and firmly bvundhlunto � whose Ypnncipalgee, ismWestfieldcall Cit► of Paris as Obligee, hereinafter ed the Obligee, . „ Percent of the Greatest Amount Bid Dollars (5% GAB) for the payment of which sum, well and truly to be made,thesaid Principal and the said Sure bin W Five Pe o 'p Surety, d ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents Whereas, the Principal has submitted a bid for RTB: Concrete Demolition and Construction NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may be specified in the bidding or contract documents with good and sufficient surety for the faithful performance of such contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect Signed and sealed this 12tkday of_Apri[. 2022 Richard Drake Construction Co�mmieaan L.P., (Principal) BY ... (SEAL) � estfield Insurance Com. oanv (Surety) r BY _. � ...... "'_ �; ��' (SEAL) Johnny Moss, Attomey-in-fact r General POWER NO. 422001214 Power Westfield Insurance Co. of Attorney Westfield National Insurance Co. CERTIFIED COPY Ohio Farmers Insurance Co. Westfield Center, Ohio Know AN Men by These Presents, That WESTFIELD INSURANCE COMPANY, WESTFIELD NATIONAL INSURANCE COMPANY and OHIO FARMERS INSURANCE COMPANY, corporations, hereinafter referred to individuallyy as a "Comppany" and collectively as "Companies," duly organized and existing under the laws of the State of Ohio, and having Its principal 111ce In Westfield Center, Medina County, Ohio, do by these presents make, constitute and appoint TONY FIERRO, JOHNNY MOSS, JAY JORDAN, MISTIE BECK, JEREMY BARNETT, JADE PORTER, ROBERT G. KANUTH, JARRETT WILLSON, JACK NOTTINGHAM, JOINTLY OR SEVERALLY of ROCKWALL and State of TX Its true and lawful Attorney(s)-In-Fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognisances, undertakings, or other instruments or contracts of suretyship• - - - - .. " -- - - - • - - - - - - - - " " " . - - - - - - - - • - - - - - - - - - - • • - - - - - - - - - -- - - - -- LIMITATION: ,LIMITATION: THIS POWER OF ATTORNEY CANNOT BE USED TO EXECUTE NOTE GUARANTEE. MORTGAGE DEFICIENCY, MORTGAGE IGQA , OR BANK DEPOSITORY BONDS. and to bind any of the Companies thereby as fully and to the same extent asll' such bonds were signed by the President, sealed with the corporate seathe (premisef the s applicable appointment Is mdo in aand d ldeattested under nd by authoits trityy,of the hereby IloMnngggand resolution adopted all that Boadrd of Directors of each of the WESTFIELD INSURANCCOMPANY, WESTFIELD NATIONAL INSURANCE COMPAW and OHIO FARMERS INSURANCE COMPANY: "13e It Resolved, that the President, any Senior Executive, any Secretary or- any Fidel & Surety Operations Executive or other Executive shali m be and is hereby vested with full power and authority to appoint any one or ore suitable persons as Attorneys) -in -Fact to represent and act for and on behalf of the Company subJect to the following provisions: The Attorney -in -Fact. may be given full power and authority for and in the nameof and on behalf of the Company, to execute, acknowledge and deliver, any and all bonds, recognisances, contracts, agreements of Indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attorney -in -Fact shall be as binding upon the Company as if signed by the President and sealed and attested by the Corporate Secretary." "Be it Further Resolved, that the signature of any such designated person and the seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signatures or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which It Is attached." (Each adopted at a meeting held on February 8, 2000). In Witness Whereof, WESTFIELD INSURANCE COMPANY, WESTFIELD NAMONAL INSURANCE COMPANY and OHIO FARMERS INSURANCE COMPANY have caused these presents to be signed by their National Surety Leader and Senior Executive and their corporate seals to be hereto affixed this 02nd day of JANUARY A.D., 2020 . W"14 Corporate seal+�sYA,t,gc �•¢i%ONA! iysy, �"" '^ . WESTFIELD INSURANCE COMPANY O.•• s'.•'' •,�� WESTFIELD NATIONAL INSURANCE COMPANY Affixed "°' c'.Q_• ''S OHIO FARMERS INSURANCE COMPANY om" wf�,+/��(-) iy. �: aMimi SEAL : e = M. j On this 02nd day of JANUARY A.D,, 2020 , before me personally came Gary W. Stumper to me known, who, being by rite duly sworn, did depose and say, that he resides in Hartford, CT; that he is National Surety Leader and Senior Executive of WESTFIELD INSURANCE COMPANY, WESTFIELD NATIONAL INSURANCE COMPANY and OHIO FARMERS IFNSURANCE COMPANY, the companies described in and which executed the above instrument; that he knows the seals of said Companies; that the seals affixed to said instrument are such corporate seals; that they were so affixed by order of the Boards of Directors of said Companies; and that he signed his name thereto by like order. Notarial„ Seal Affixedt� State of Ohio County'of Medina 0,, ss,;�u"� tim.VIM�M61�vd1'N State of Ohio '+•�1II, 4!111,,.1•+` h��q/NIM,IN•f 8]r Courtly of Medina ss.: Gary IN, tuihtper, Natio. a SUtle#y. Leader and Senior' xecum,,6 On this 02nd day of JANUARY A.D,, 2020 , before me personally came Gary W. Stumper to me known, who, being by rite duly sworn, did depose and say, that he resides in Hartford, CT; that he is National Surety Leader and Senior Executive of WESTFIELD INSURANCE COMPANY, WESTFIELD NATIONAL INSURANCE COMPANY and OHIO FARMERS IFNSURANCE COMPANY, the companies described in and which executed the above instrument; that he knows the seals of said Companies; that the seals affixed to said instrument are such corporate seals; that they were so affixed by order of the Boards of Directors of said Companies; and that he signed his name thereto by like order. Notarial„ Seal Affixedt� State of Ohio County'of Medina 0,, ss,;�u"� David A. Kotnik, Attorney at, Law, Notary Public My Commission Does Not Expire (Sec. 147.03 Ohio Revised Code) I, Frank A. Carrino, Secretary of WESTFIELD INSURANCE COMPANY, WESTFIELD NATIONAL INSURANCE COMPANY and OHIO FARMERS INSURANCE COMPANY, do hereby certify that the above and foregoing Is a true and correct copy of a Power of Attorney, executed by sold Companies, which Is still In full force and effect; and furthermore, the resolutions of the Boards of Directors, set out in the Power of Attq fney are in full force and effect. fn dress Whereof, I•�have hereunto set my hand and affixed lei the seals of said Companies at Westfield Center, Ohio, this lei day of ��O A,D., �asYfut +•��tO�v; tt /,IV e•� SEAL: sEAL -,P," ." •'••..8�' per=r Frank A. Carrino, Secretary �'9IY4!'F uimWrtu➢��m� „44ru q,n+++•`�`+�• �•a�n,nla•�`• BPOAC2 (combined) (06-02) ERTI IC LIABILITY INSURANCE DATH`MMMDAWY) ��� 03/26/2822 THIS CERTIFICATE IS ISSUED ASA MATTER OF INFORMATION 0������ ....AN mmmmmm "" i i' m� ������ , �.��� ��M ��w.uw ,�_ ,,,,,,, NLYANp CONFERS NO RIGHTS UPON THE C!~RTIFiCATI: Mf3LDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELYOR NEGATIVELYAMEND, EXTEND ORALTER THE COVERAGE AFFORDED BYTHE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE 0096 NOT CONSTITUTE CONTRACT BETWEEN THE ISSUING INSURER(Sh AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CeRTIFICATE HOLDER. IMPORTANT II the certificate holder Is an ADbFTlONAL INSURED, the oli les must have ... �..T����ONA �� ..... RE p oyI ) ADDITIONAL INSURED provisions or he endorsed. If SUBROGATION 19 WAIVED, sfr6jectto the temrs and conditions of the policy, certain policies may require an endorsemant. A slatemont on this certificate does not confer rights to the certificate holder In Ileu of such endorserrrwAs). PRocpr�� m _ lRaRs. Donna Walker ___ _ ,K&S IneuranceAgency777-4071 (972) 771 4685 2255 Ridge Road. Ste. 838RESS: dwaker@kandsins.aom I? O. Box 277 INsuRErMsAFFr)RD1Na COVEiRAQt; Rockwall TX 75087 Arch Insurance Company11RERA HanoverInsurance Group 22282 Rlchand Drake Canstruclion Company, L.R INsurtER c: 6298 Hrghway271 N. .,N �.o.,. atNderlY ®�, �dd TX 75478 ..������BURERF. _ . ... COVERAGES CERTIFICA7fa HUIVIBER. 22!23 Nfaster►vILE REVISION NUMBER: m . . ,m,,,,,,,,CERTIFYTHATf{E POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUEDTOTHE INSUREDNAEDABOVE FOR POLICYPERIOO INDICATED. NOT V4n'HST'ANDING ANY REQL41REMENT,1115RMf OR CONDMON OFANY CONTRACT OR OTHER DOCUMENT WrrH RESPECTTO WiiICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDE=D BY THE POLICIES DESCRIBED HEREIN 13 SUBJECT TO ALL THE TERMS. EXCLUSIONSAND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ..._ ..... .. ._. IITw*�n�� �T�"N.... .:.. ... L'[yi TYPE OFINSURANO ,�,�J"!r P�JCYNUMBER 1f1N4xCs �" '1 U�MM1aOlYYYY LIMITS __... _... _ C 013aM rE X{X]E6f3ERCUlLGF1�IF3rALlL48,L1TY P�4CHOCCiIftF{E1rCE S 1,000000 �P� O��YlB°t 300,000 .. �' CLAfldti-MADE ' ooCOR .� ,. s ... _ Ded $5,000 PD S 000 IA>wD fXPmm w E A 41PKG8N6M 03/3012022 03/3012023 6 1,080000 PERSONAL _ GENLAAGREGWE.LIMITAP ©ER; � R1fLgpOfZ�ATE 2.�0 001) POLICY J LOG PAODLICT6 pRMPADPA[3G 2,000 0110 S CMPR 91 9 llu AUPOMOSILEUABILRY 5 1 000;000 ANYAUTO BODILYWf 4;rpaM0h) L OMED !n't:}{EDULED G , A � 41PKG896600D 03130!2022 09/3012028 BODILYINJURY{PeraodderlQ S AUTOS ONLY AUi OS HIRED NDN.ONMED AUTO$ ONLY .._ . AUTOS ONLY i 1!]y1BR6Lk.AL1ABIA OC4UR FJSCHOCCURHENCE F%a00... A EISCESSLIAB GAIMSNIADE 41UFP8DBB300 03/30/2022 03180 023 Ac3 REC{A 1 6,000400 OED, IiET ION L 0„ .m „ .,,,,,, _. IIlOR1SERSCOMPENSATON NN jUT„11 APIDF�YfPa4 YIN �ANYPRR;MEMSEREMLOPRIETORA A1iTNt3ifEXECU1rVE Ei FACHACCl MT 1,000 ORD A OFFICE E]DEm E fA 41mae66000 03/30/2022 ” 09/9012023 �,�, .. .. __ OFFICEtoryIn NH} EL i316EA3E GAEMPIAYEE 7,ROO,R00 If a, dascllbe wdar �ReiitedlLsdiny onelmax 1,000,Op0 fied: $2,50D except S 0k o 600 In E L is LUVItT 578000011.000.000�B [.CE ilo, MTC.Ded. $11$C M-iSLI Ded$10k IHDA872550-D5 03l3W2022 0313012023 !ATG con ncel 500,000 Warehouae Legal Llab 1.0D0,000 DESCRIPTION OF OPERATONS 1LOCA71ON5 I VEHICLES (ACORD i01, Addnfanal Remarks Schaduie, may he attached K mows apses Ix rwquf ed) SHOULDANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City Of Paris ACCORDANOF WITH THE POLICY PROVISIONS. 1351 St &t.��p,����._...,, ,.... ..... . rn _„ . , �„....,.. ..... uTHaR>�eD I�pR�NTArN� PO Box 8037 Paris TX 75401-9037�-+— ...,, ®, � .��,.,,���,.,.� .,,,n ,,, . �,.����.���� ���M ,,.�..a. �a..,..... 491988 2015ACORD CORPORATION. All rights reserved. ACORD 25 {2016!03} The ACORD name and logo are registered marks of ACORD AGENCY CUSTOMER ID: 00004778 LOC ADDIT#ONAL REMARKS SCHEDULE Page of ADDITIONAL R1510AMU THIS ADDITIONAL REMARKS FORM 15 A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE. rams: Notes z� . Certificate of Liatl[fity mau _.....� The Genera! LlabElity and Auto Liability policies include a blanket automata additional Insured endorsement Ihat provides additional Insured status to the certificate holder only when there is a written contract beWvoen the named Insured and The certificate holler that requires such statua. The General Wab"Ity and Auto policies include Additional Insured - Lessor of Leased Equipment -Automatic Status when Required In Lease Agreement with You endorsements. The General Liability endorsemenfa warding Includes both the Insureds Ongoing and Completed Operations, The General Llablllty and Auto Uabllity pollcles contain an endorsement with Primary and Noncontributory wording. The General Liability, Auto Liability and Workers' Compensetkm policies include blanket arkornafio waiver of subrogation endorsements that provide this lieature, only when there Is a written contract between the named insured and the owiftate holder that requires IL ACTORS EQUIPMENT: Loss Payee Endorsement Form IM441-4046 OW8. REFER To THEA'TTACHED POLICY FORMS FOR SPECIFIC WORDING OF SUCH COVERAGF, L9WiiS, CONDITIONS AND EXCLUSIONS. f "'66—._. 0 2008 ACORD CORPORATION. All rights reserved, ACORD 707 (2608!41} Tha Gr:nnn name and Irmo arp ranistarad marks of ACORN CERTIFICATE OF INTERESTED PARTIES FORM 1295 101`1 m. .. ,m. Complete Nos. 1- 4 and 6 if there are interested parties. , ._ ��,.. OFFICE USE ONLY Complete Nos. 1, 2, 3, S. and 6 it there are no Interested parties. CERTIFICATION OF FILING _....A,r, ... .. 1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number: of business. 2022-872388 Richard Drake Construction Company LP POWDERLY, TX United States date Filed: 2__ dame o"gaverrimentai entity ir'state agency that is par4y''to tine contract'fur vuiitct"tirenrm is """ 0411212022 being filed. City of Paris Date Acknowledged: _.. ............ ._.... .... ........... ...... --------____ ........ _.----- _____.wwm 3 Provide the identification number used by the governmental entity or state agency to tract[ or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. Sealed Bid: City Of Paris Sealed Bid: Concrete Demolition and Construction .......... . ............... -- _.___.... .............. ��„m Nature oflnt erest Namc of fnietested Party City, State, Country (place of business) (check applicable) ................ _ ___ ..__ ........ ..... .......... ......... .._. ... Controlii ng .. intermediary . M r„ _... . ..... ....................................... _,_,_. . .000. .,.,..... 5 Check only if there is NO Interested Party. n I _... .__ ... .__ _ 6 UNSWORN DECLARATION .......................... , M name is � ..y ��, . 4 A.A .. _ . r ' ” r + � and my date of birth Is t� � �t )� t� �.,.. � lbs, i � � �..__ My address is ti m 1� f.-"I, � „ ...... _ �-ahAdr (street) (CRY) (state) (zip code) (country) I declare under penalty of perjury that the foregoing is true and correct. Executed in --County, State of on the a of t" r t r1� ��� ��� � � �� y �iy�i 20ys�,. (month) (year) i Signatnr. J autharized agent of contracting business entity (Dedarant) Forms provided by Texas Ethics Commission www.ethics.state,tx.us �,r,.. Version V1.1.191b5cdc Richard Drake Construction Company, L.P. Employee Handbook Standard Employment Practices & Procedures 6290 Hwy. 271 North Powderly, TX 75473 (903) 732-4781 Fax (903) 732-4340 Contents Standard Em;Lfmoyment Practices ■ At -Will Employment ■ Equal Opportunity Employment ■ Sexual & Other Unlawful Harassment ■ immigration Law Compliance ■ Criminal Convictions ■ Evaluation Period Standards of Conduct = Personnel File General Policies and Procedures Orientation Reporting Changes Job Classifications Pay Periods Hours of Work Breaks Time Keeping Overtime Salary Increases Payroll Performance Reviews Bonus Struciure Expense Reimbursement Attendance & Punctuality Availability for Work Mandatory Meetings Holidays Drugs & Alcohol Violence & Weapons Jobsite safety rules Visitors Workplace Attire Telephone Use Voice Mall & Electronic Mail Postage, Shipping & Office Supplies Personal Safety office Security Monitoring & Searches Confidential Information Conflicts of Interest Non -Solicitation Competing Employment h l Leave Rpliicies General Policies R Sick Leave = Short Term Disability Leave ■ Family & Medical Leave ■ Personal Leave of Absence ■ Jury Duty ■ Military Duty ■ Funeral Leave ■ Emergency Closings & Severe Weather Ewenploee ,Benefits = Benefits Eligibility ■ Breaks in Service Vacation ■ Medical Insurance • 401 K • Worker's Compensation • COBRA Drscriinary-Policies ■ Problem Resolutions ■ Discipline = Corrective Action Separation Policies Job Abandonment p Termination Termination Process Employment References Appendices ■ Exhibit A: Overview of the Family and Medical Leave Act = Exhibit B: Overview of Federal Equal Opportunity Laws Exhibit C: Overview of the Immigration Reform & Control Act ■ Exhibit D: Acknowledgement of Receipt & Understanding 4 Standard IsmJIament Practices At Will Employment Richard Drake Construction Company, LP does not offer tenured or guaranteed employment, Unless Richard Drake Construction Company, LP has otherwise expressly agreed in writing, your employment is at will and may be terminated by you or by Richard Drake Construction Company, LP at any time, including after the evaluation period. Eaual Emolovment Oouortuni Richard Drake Construction Company, LP is committed to providing equal employment opportunities to all individuals without regard to race, color, religion, sex, national origin, age, disability, marital status, sexual orientation, or any other characteristic protected by law. For further information about the applicability of Federal Equal Opportunity Laws, including the Americans with Disabilities Act, the Equal Pay Act, or the Age Discrimination in Employment Act, see Exhibit C in the Appendices. Richard Drake Construction Company, LP does not discriminate on the basis of gender in compensation or benefits for women and men who work in the same establishment and perform jobs that require equal skill, effort, and responsibility and which are performed under similar conditions. Richard Drake Construction Company, LP will make reasonable accommodations for qualified individuals with known disabilities unless doing so would result in an undue hardship. An employee with a disability for which reasonable accommodation is needed should contact his/her supervisor to discuss possible solutions. Employees with questions or concerns about any type of discrimination in the workplace are encouraged to bring these issues to the attention of Paul Drake; he can be reached at (903) 732-4781. Employees can raise legitimate concerns and make good faith reports without fear of reprisal. Anyone found to be engaging in any type of unlawful discrimination will be subject to disciplinary action, up to and including termination. Sexual and Other Unlawful Harassment Richard Drake Construction Company, LP will endeavor to maintain a work environment that nourishes respect for the dignity of each individual. This policy is adopted in furtherance of that tradition. It is against the policies of Richard Drake Construction Company, LP for an employee to harass another person because of the person's sex, race, color, religion, national origin, age, disability, sexual orientation, marital status, or other characteristic protected by law. Actions, words, jokes, or comments based on such characteristics will not be tolerated. Consequently, it is against the policies of Richard Drake Construction Company, LP for.an employee to sexually harass another person. Unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature constitute sexual harassment when; (t ) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment; (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; or (3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or environment. Any employee who believes that he or she is being unlawfully harassed should immediately contact his/her supervisor or a member of management. All complaints of harassment will be promptly, thoroughly and confidentially investigated and, where necessary, appropriate corrective action will be taken. Any person found to have unlawfully harassed another employee will be subject to appropriate disciplinary action, up to and including termination. Immi�xation Law Cam��liance Richard Drake Construction Company, LP doers not hire anyone who is not a citizen of the United States, or is not a non -citizen who is authorized to work in the U.S under the Immigration Reform and Control Act of 1986. As a condition of employment, all new and past employees must show valid proof that they are eligible to work in the United States. An overview of the Immigration Reform and Control Act can be found at Exhibit D in the Appendices. C r i al Convictions r t�, ,�.................. Richard Drake Construction Company, LP reserves the right not to hire or retain anyone who has been convicted of a criminal offense. Conviction of a crime that involves dishonesty may result in an automatic termination of employment. Before any decision is made, the nature of the crime and circumstances surrounding the conviction will be considered. Evaigation Perlpd During the first three months of your employment with Richard Drake Construction Company, LP, you will be in an "evaluation period.- During this time, your supervisor will continually evaluate your performance and compatibility with Richard Drake Construction Company, LP. Should your performance not meet the standards set forth by Richard Drake Construction Company, LP or your superWisor, your employment will be terminated. Upon completion of the evaluation period, you will be eligible for additional benefits, as set forth in the benefits information you received upon employment. of Conduct Standards „,...,......... Richard Drake Construction Company, LP expects that all employees conduct themselves In a professional and ethical manner. An employee should not conduct business that is unethical in any way, nor should an employee influence other employees to act unethically. Furthermore, an employee should report any dishonest activities or damaging conduct to an appropriate supervisor. In the event that you become aware of another employee's behavior or actions, which you believe are inappropriate, illegal, problematic, or in any way inhibit or affect your job performance or the 6 Richard Drake Construction Company, LP work environment, you should discuss such behavior or aeons with your supervisor or other appropriate management personnel. All reasonable concerns will be promptly, thoroughly and confidentially investigated by Richard Drake Construction Company, LP and, where necessary, appropriate corrective action will be taken. You should not discuss such actions or behavior with other Richard Drake Construction Company, LP employees. Your discussing such matters with other employees may -- in and of itself — create an unacceptable work environment for which you will be held responsible and for which you may be disciplined In accordance with Richard Drake Construction Company, LP's disciplinary policy. Personnel File Richard Drake Construction Company, LP keeps personnel files on each of its employees. These files are confidential in nature and are managed by the payroll department. They will not be copied or be removed from the premises unless there Is a legitimate business reason to do so. Any employee may view his or her personnel file by contacting the payroll department during normal business hours. No employee may alter or remove any document in his or her personnel file. Genera[ Pa[lales and Procedures Orientation In accordance with federal law, both new employees and re -hires will be required to provide documentation of identity and eligibility to work in the United States. The 1-9 form will be used for this purpose. New employees will also receive a copy of the Employee Handbook and will be given the time to read it and ask any clarifying questions. The signed copy of the "Acknowledgement & Receipt of Understanding" will be placed in the employee's personnel file. Reporting Changes You are responsible for promptly notifying the payroll department of any change in your name, address, telephone number, marital status, citizenship, tax withholding allowances, emergency contact information, insurance beneficiary, or dependent insurance coverage. Accurate and correct information is vital for benefits and insurance records and other Company files. Each employee is required to receive approval from his/her supervisor, in advance, for vacation or leave time to be taken. Additionally, employees are to inform their supervisors of sick days taken and excessive lateness in arriving at work. Job Classifications Employees are classified by two major categories: "Exempt" and "Non-exempt." This handbook applies to both Exempt and Non -Exempt employees. VA (1) Exempt employees are salaried and generally fall into one or more of the following four classifications: executive, professional, administrative, or sales. These employees are exempt from the applicable provisions of state and federal wage and hour laws (FLSA). (2) Non-exempt employees are eligible to receive overtime pay in accordance with state and federal wage and hour laws (FLSA). These employees are required to submit a time card each week before noon on Monday for the purpose of tracking hours worked and calculating compensation. Employees are also classified within one of the following three statuses: (1) Full-time; any employee who is regularly scheduled to work 35 hours a week or more. Full-time employees are eligible for standard company benefits. (2) Part-time: any employee who is regularly scheduled to work less than 35 hours per week. Part- time arttime employees are not eligible for standard company benefits. (3) Temporary: any employed hired for temporary work that is intended to be of limited time period. Temporary employees are not eligible for standard company benefits. PaPerkodms All employees are paid on the Friday of each week. If Friday falls on a holiday, employees may be paid the day before the holiday at the Company's discretion. Hours „.of Work Richard Drake Construction Company, LP's standard work weel< for full-time employees is six days. Schedules may vary based an the company's needs. Employees may not deviate from the company's hours of work, unless a manager or supervisor specifically approves a request. BM9*_S - Richard Drake Construction Company, LP managers determine appropriate lunch and dinner breaks per their needs. Typically, employees working for more than four consecutive hours are provided with a meal break of 30 minutes. Breaks are scheduled throughout the workday, so as not to disrupt the business processes of Richard Drake Construction Company, LP. Time Keeoin.c Nonexempt employees are required to record on their time cards time4n, time-out, any non -- compensated breaks and the jobsites where they work. Time cards must be tamed in weekly by Monday noon. Overtime Nonexempt employees are to be paid time and one-half (1.5) for time worked that exceeds 40 hours during a scheduled workweek which runs Monday to Sunday. Employees asked to work Overtime are expected to do so. Exempt employees are not eligible for overtime pay. The calculation of overtime hours wilf not Include holiday, sick leave or vacation days during a given scheduled workweek. Salm°Increases Salary increases are based on performance or promotion. All salary increases are at the discretion of the Company's management. Payroll Both exempt and nonexempt employees will have federal, and state taxes If applicable, withheld from their wages. Payroll checks will not be released prior to the set pay schedule for any reason, nor will they be released to anyone other than the employee, unless the employee has signed a release for that particular person to receive his/her paycheck. Performance Reviews Every Richard Drake Construction Company, LP employee will be subject to a performance appraisal at least once a year. The employee's supervisor will give these reviews. The reviews will focus on job-related strengths and weaknesses, as well as overall fit with the company. Goals and improvement plans will be mapped out each review period and progress will be measured at the next review. Performance reviews will determine salary increases and promotions. Employees will have the opportunity to thoroughly review all performance appraisals and provide a written opinion. All performance reviews and responses will become part of an employee's personnel file. 3nps Structure Richard Drake Construction Company, LP may institute a bonus structure or incentive pian at any time. Richard Drake Construction Company, LP guarantees no bonus plans. Any bonus structure will be determined by management and will likely include some level of performance achievement. Exo�ense Reimbursement Richard Drake Construction Company, LP will reimburse employees for reasonable pre -approved business expenses. Reasonable expenses while traveling on company business include travel fares, accommodations, meals, tips, telephone and fax charges, entertainment of clients and purchases on behalf of the company. Local expenses include company purchases, taxi or public transportation fares when on company business and entertainment of clients. Ali expenses must be submitted via the required expense form and approved by the employee's supervisor prior to submission for reimbursement. The employee must secure approval in advance 9 of incurring the expense. Unreasonable or excessive expenses will not be reimbursed. Any questions should be directed to the employee's supervisor. Attendance &_Punctualit Punctuality and regular attendance are important to the smooth operation of Richard Drake Construction Company, LP. If you are consistently late or excessively absent, Richard Drake Construction Company, LP's ability to perform work is affected and an unfair burden is placed on your co-workers. Therefore, unless your absence is permitted or excused under Richard Drake Construction Company, LP's holiday, vacation, sick or other policies, you are responsible for being at work and arriving on time. If you are going to be absent or late, it is your responsibility to call your supervisor as soon as possible, preferably in advance of lateness and no later then one hour after the start of the workday. If you are absent for several days, you must notify your supervisor each day. An employee who is absent for reasons other than those permitted or excused by Richard Drake Construction Company, LP's holiday, vacation, or leave policies, or who fails to provide notice as required, will be subject -to appropriate disciplinary action, up to and including termination. Ayailgb ityufor Work Employees must be available for work during normal business hours. If, for any reason, there is a change in your work availability status, you must notify your supervisor at least one week prior to the change. lVlandatofl y._Meet�rt;,s Employees may be required to attend mandatory meetings. Holidays Holidays for eligible employees are at the Company's discretion, but will generally include the following: • New Year's Day • Memorial Day • Independence Day • Labor Day • Thanksgiving Day • Friday following Thankspiving (unpaid) • Christmas Eve (unpaid) • Christmas Day Note: Richard Drake Construction Company, LP will make reasonable efforts to accommodate holidays pertaining to an employee's established beliefs that are not included in the above list. Employees should speak with their supervisors to obtain approval for tacking time off to Observe such holidays. 10 Drs and Alcohol Richard Drape Construction Company, LP will not tolerate the use or possession of alcohol or illegal drugs on the job or on company property. Employees using or possessing alcohol or Illegal drugs on company properly or while at work or who report to work under the influence of alcohol or illegal drugs will be subject to disciplinary action, up to and including termination. The Company has instituted a drug testing policy for all of Its employees. All employees must pass a substance screening, paid for by the company, prior to beginning employment. During employment with the Company, all employees will be subject to random substance screening. Also, from time to time a client of the Company may require that employees assigned to work for the client be subject to testing prior to or during the employee's attendance at the client's place of business. An employee whose substance screening test result is returned to the Company showing evidence of illegal drug use, or who refuses to submit to substance screening when asked or who tampers With the collection a of test sample, will be subject to disciplinary action, up to and including terrninatton. If an employee's substance screening is returned showing a positive result, the employee may request that the same sample be retested at the employee's expense. Testing on a new sample will not be available. Violence & Wea:,:ons Richard Drake Construction Company, LP takes threats of violence extremely seriously. Any act or threat of violence by or against any employee, customer, supplier, partner or visitor is strictly prohibited. This policy applies to all company employees, whether on or off company property. Any use or possession of weapons, whether illegal or not, is prohibited on company property, or while on company business. This includes knives, guns, martial arts weapons, or any other object that is used as a weapon. Any employee caught possessing a weapon will be disciplined, up to and including termination. Mgsjte 5afeL L Rules SAFETY DIREC'T'OR — PAUL DRAKE — CONTACT # (903) 732--4781 The following safety rules must be observed at all times: • Compressed air is on the job -site for air -powered tools and other specialized tasks. It is not to be used for cleaning personnel. Improper use can cause damage to skin and eyes. The maximum speed limit while on jobsite is 15 mph. • If you are required to create a potentially unsafe area such as an excavation, always post barricade waming signals. • Do not attempt to operate, work on or manipulate any type of equipment without being properly trained. • Passengers will not be carried on vehicles unless specific seating areas are a part of the equipment. • No employee should participate in horseplay on the job. 1l • Do not attempt to repair any piece of electrical equipment until the power source has been disconnected and lockout and tag out procedures have been implemented. • Do not disable any safety device on equipment or tools. e Be especially alert when walking near of moving equipment Always use seat belts in vehicles and on equipment' • Rings, watches and other jewelry are not to be worn on jobsites. • The Company will not tolerate sexual harassment of any person on Company property or jobsite. Visitors Only customers and authorized visitors are permitted at Richard Drake Construction Company, LP's offices. This includes unauthorized sales persons, or those collecting for charitable causes. This is to prevent injury to visitors and to protect the company from theft or frivolous lawsuits. Visits from friends and family should be kept to a minimum. Employees are responsible for the conduct of their guests. Any employee who notices an unauthorized visitor should notify his/her supervisor immediately. W9*plp;e Attire Richard Drake Construction Company, LP has a casual dress environment. However, employees are expected to use good judgment and taste and to show courtesy to their co-workers and associates by dressing in a fashion that is presentable and appropriate. Uniforms will be provided at the employee's expense after the employee's probation period. Uniforms kept but not used will be charged to the employee. Employees, whether choosing to wear uniforms or not, will be required to wear the following at all times while on jobsites: • Hardhats Safety eye protection • Leather, steel -toe safety boots • Long trousers • Shirts with minimum 4" sleeves Plastic or rubber coated gloves when handling chemicals, solvents or masonry products • Leather gloves when handling rough or sharp -edged materials C Hearing protection if the possibility of excessive noise is present Telephone Use111111111111111111111- Telephones are provided to enable employees to carry out work assignments in an efficient manner. Personal telephone calls should be kept to a minimum and personal toil calls should not be made at Richard Drake Construction Company, LP's expense. ��,�� ...w,�o . . j Varcp.Mwail and Electronic al All electronic and telephone communication systems and all communications and information transmitted by, received from, or stored in these systems are the properly of Richard Drake Construction Company, LP and as such are intended for job-related purposes. Personal use should be kept to a minimum. Electronic or telephone communication systems may not be used to transmit messages that may be considered inappropriate under Richard Drake Construction Company, LP's 12 policies, including those prohibiting harassment. Employees are not permitted to use a code, access a file, or retrieve any stored communication unless authorized to do so or unless they have received prior clearance from an authorized company representative. All pass codes are the property of Richard Drake Construction Company, LP and may be used by Richard Drake Construction Company, LP to access electronic and telephone communications at any time. Richard Drake Construction Company, LP reserves the right to monitor any electronic, telephone, or other communications made using Richard Drake Construction Company, LP systems or property. Postage. Shipping and Office Supplies Postage, shipping and office supplies paid for by the company are for business purposes and are not to be used for an employee's personal purposes. Personal Properfw Richard Drake Construction Company, LP does not assume responsibility for any personal property located on its premises. Employees are to use their oven discretion when choosing to bring personal property into the office and do so at their own risk. Additionally, employees may not bring or display in the office any property that may be viewed as inappropriate or offensive to others. ,Personal Satei.', The safety of each employee's health and security Is very important to Richard Drake Construction Company, LP. Richard Drake Construction Company, LP is willing to make reasonable efforts to address an employee's safety concerns. Employees should remember to use caution and good judgment in all activities and should notify their supervisors if they believe there is a safety issue that should be addressed. Off ce.._Se,cut Shortly after an employee's start date, he/she may be given a key to gain access to the offices. The last employee to leave the office at night is responsible for making certain that all doors and windows are locked. Monitoring &„Searches All company property is subject to monitoring and review at all times. This includes, but is not limited to, desks, lockers, company vehicles, computers and email files. Reasons for searches and reviews include, but are not limited -to, personal abuse of company property, theft investigation and improper disclosure of confidential information. Richard Drake Construction Company, LP retains the right to conduct searches at any time. This includes the right to search individual computers or files, even if protected by a password. Any employee who attempts to obtain or alter a password for the purpose of accessing restricted files will be subject to disciplinary action, up to and including termination_ 13 Confidential Information Richard Drake Construction Company, LP requires that employees do not disclose information held to be confidential by Richard Drake Construction Company, LP and also requires new employees to sign a non -disclosure agreement. Any questions about this policy should be addressed to a member of management. Corwili pf Interest Richard Drake Construction Company, LP requires that employees not compromise the company, its customers, partners or suppliers for personal gain, Examples of conflict of interest include, but are not limited to, accepting gifts worth more than $25, requesting or granting favors, or conducting business for personal gain. Employees are required to disclose all conflicts of interest to a supervisor, f=ailure to do may result in disciplinary action; up to and including termination. Non -Solicitation During the period of your employment and for a period of twelve (12) months after the termination of your employment with Richard Drape Construction Company, LP, you shall not, directly or indirectly, (i) solicit for employment or employ any person who was employed by Richard Drake Construction Company, LP during your employment with Richard Drake Construction Company, LP; or (ii) call on, solicit, or take away for yourself or for any other person or entity any person or entity v4ho or which was a customer of Richard Drake Construction Company, LP during your employment with Richard Drake Construction Company, LP... Competing Employment Due to the highly competitive nature of the industry in which Richard Drake Construction Company, LP is involved, employees are restricted from certain associations or working arrangements with competing or conflicting organizations. Subject to Richard Drake Construction Company, LP's prior approval, you may work for other businesses during the course of your employment with Richard Drake Construction Company, LP; provided, however, you may not accept of perform work of a nature that conflicts or competes in any way with the business or services of Richard Drake Construction Company, LR,, Leave Pollees General Polfcres Richard Drake Construction Company, LP provides Eligible Employees with leaves for a variety of reasons. The following discussion summarizes Richard Drake Construction Company, LP's leave policies in a way that Richard Drake Construction Company, LP hopes will be generally helpful. 14 Richard Drake Construction Company, LP abides by the provisions of the Family and Medical Leave Act, as appropriate. An overview of the Act is set out in Exhibit C in the Appendices. As with all policies, Richard Drake Construction Company, LP reserves the right to revise or rescind these policies at its discretion, subject to legal requirements. This statement of leave policies is not intended to create a contract between Richard Drake Construction Company, LP and its employees. To apply for leave, or to inquire Into what leave may be available, an employee should contact a member of management. An- employee applying for leave will be asked to state why he/she wants the leave, when he/she wants the leave to begin and when he/she wants the leave to end. A member of management will inform the employee what type and duration of leave, if any, has been approved and will also tell the employee which requirements, such as certification of a health condition, the employee must fulfill to return to work. All leaves are granted for a specific period of time. An employee who foresees being unable or unwilling to return to work at the end of the leave period should apply for any other leave for which the employee is eligible, including an extension of the current leave. Richard Drake Construction Company, LP reserves the right to terminate the employment of an employee who doss not return to work at the end of the approved leave period. Sick Leave The following guidelines are to be followed when you must be absent from work due to illness: a) If you do not report to work, you must phone your supervisor or have someone call for you as early as possible, preferably before your scheduled work star{: time. b) if you must leave your worksite before closing time because of illness, inform your supervisor. c) if you foresee the need to take sick leave (e.g., for tion -emergency surgery or for a doctors appointment), tell your supervisor as soon as possible. d) Disabilities related to pregnancy or birth of a child will be treated as all other disabilities for purposes of Richard Drake Construction Company, LP's leave policies. e) If you are absent because of sickness or disability, Richard Drake Construction Company, LP may require that a doctor of Richard Drake Construction Company, LP's choice examine you. You may use the leave to care for your sick or injured children on the same terms that apply to use for your own illnesses or injuries. Short Term.©isab€lit I�eavep�fnc�udanT� MaterpiV Leave'b Unpaid short-term disability leave is available for an absence due to an employee's illness or disability, including pregnancy -related disability, which extends for six or more consecutive scheduled working days. 15 If requested to do so my the company's management, an employee seeking a short-term disability leave must submit a statement from a doctor demonstrating that he or she is unable due to illness or injury to perform the job and stating the expected duration of the inability to work. If the medical information submitted is not, in the discretion of Richard Drake Construction Company, LP, sufficient to establish inability to work, the employee may be required to submit to an examination by a doctor selected and paid by Richard Drake Construction Company, LP, Famllwand ,Medical Leave Employees may take unpaid leave per the terms of the Family and Medical leave Act of 1993. Employees should also be aware that pregnancy is considered a disability and may be eligible for disability benefits under mandatory disability benefits laws of certain states. Personal Leeve of Absence -- 1..._ ........................._._ Requests for personal leave without pay, submitted prior to the absence, are considered individually .and granted at the discretion of management. The reason for the request, the employee's length of service, the employee's worts record and the demands of the individual's job are examples of the type of factors typically considered in evaluating a request for personal leave of absence. A request for personal leave of absence will be granted only if the employee is not eligible for any other type of leave. An employee may not be on personal leave of absence for more than 2 months in a calendar year. July Duty Employees summoned for jury duty will be allowed the necessary time off from work without pay to perform this civic responsibility. Employees must give Richard Drake Construction 'Company, LP advance notice to attend jury duty. All employees will be expected to report to worts during all regular hours if their presence is not required in a jury room or court. Richard Drake Construction Company, LP may require the employee to supply documentation from the court affirming the employee's jury duty service. Military Duty Employees will be permitted necessary time off from work in order to attend an annual encampment in a recognized reserve branch of the armed forces of the United States. Leaves for military service and reinstatement after performing military service will be provided in accordance with the requirements of law. Funeral Leave When a death occurs in an employee's immediate family, an employee may take necessary time in order to attend the funeral or make funeral arrangements if prior notice is given to the employee's supervisor. Forced Closings and Severe. Weather 16 Unless notified by your supervisor, you are to report to work on all regularly scheduled days, regardless of weather conditions. If you are unable to report to work clue to weather conditions, you must notify your supervisor as soon as possible. In the event that the company closes due to severe weather conditions or another reason, you will not be required to report to work. 9M_9_102 ...Benefits The following is a list of benefits that Richard Drake Construction Company, LP makes available to eligible employees. The descriptions in this handbook are a summary only. The separate plan documents explain each benefit in more detail and the language of the plans' documents controls the various plans. Benefits may be modified, added or terminated at any time by the insurance company or benefit provider, per the terms of the plan, or by Richard Drake Construction Company, LP, at its discretion. Benefits Eligibility Full-time employees who have successfully completed the evaluation period are eligible for the benelits outlined below. Part-time employees (regularly scheduled for less than 35 hours per week) are not eligible for these benefits. Breaks in Service Unless prohibited by FMIA or other applicable employment regulation, any absence from the job, other than a pre -approved snort -term leave of absence, for a period of 30 days or more will be considered a break in service. Following a break in service, an employee will be considered a new applicant for purposes of job placement, benefits accrual, drug testing, etc. To clarify, if an employee is absent from the job for 30 days or longer, he or she will "start over" as a new employee, will be required to go through the hiring process, including pre-employment substance screening, and will be subject to the various benefits' elimination periods. Vacations Vacation time is offered to full-time, eligible, hourly employees at the rate of 40 Hours per year beginning in the second year of employment. Vacation hours will accrue at the rate of 0.77 hours per week worked. Vacations are earned from hire date anniversary to anniversary. Vacation time must be scheduled and approved in advance by your supervisor, Richard Drake Construction Company, LP will not carryover any unused vacation time from one year to the next, unless required to do so by law. If approved by the employee's supervisor, the Company will pay accrued vacation wages in lieu of vacation time off. 17 All requests for vacation firne off or vacation pay must be submitted in writing and approved by -the employee's supe nAsor. Contact the payroll departmentfor a vacation request fomi, An authodzed company holiday that 'falls on a normal business day during your vacation !is not counted as a vacation day. When given advance notice, Mchard Drake Construction Company, ILP will consider requests for addiffonal time Mthout pay. If you have a special type of vacaflon in mind,j talk to your Supervisor 'to see if a solution can be reached. Mp&W 1pggr,allince Medical Insurance is avallable for eligible employees and their qualified dependents starting thefirst of the month after the end of the eimployee's 90 day evaluation period. IRefer to the plan summary for details regarding coverage, 911gibillity, waliting periods and cost. M Eligible employees vrifl be glvain the option to enroll in -the Richard Drake Construction Company,, ILP 4LD1 1progir-airin at the end of sN months -time In service, The Company may, at Its 6scirebon, in w1hole or in, part match employees' contributions into the plan. The Compwiy"s decision regarding any match will be announced at the beginning of eadh calendar year. WorkWs CorripoMfign _ . . . . ....... 11 Richard Fla"Irake Construction Company, LP requires that all ernplqyees repoi,,tjob-related accidents or injuries to a supervisor lirnmediaWy, whether the accident occurred on or off company IPrerruises. Failure 'to report an injury, regardless of how minar, could result lin disciplinar.y action up to terminaflon. All workers' compensation claims rill be paid directly -to employdes or medical providers, and employees are expected to return to work immediately upon release lby their doctor. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their quaHfied benpfficiaries the opportunity to continue health coverage under the company's health plain, should the eirnployee lose his or her eHg1bility (e.g., upon -termination or reduction !in hours). Under COBRA, the employee pays tile full cost Df coveiragis at the cornpany's group rate, plugr. an administrative fee. Detalb of COBRA coverage and how to apply for it will be provided by the 1payroll department or -the Compainy's agents at -the -rime eHg1bility is 10SL ghP![j1narV Policies Problem Resolution M Richard Drake Construction Company, LI' seeks to deal openly and directly with its employees and believes that communication between employees and management is critical to solving problems. Co-workers who may have a problem with one another should attempt to resolve the problem themselves. If a resolution cannot be agreed upon, both employees should approach their supervisor(s), who will work with the employees to determine a resolution. In these instances, the decision of the supervisor is final. Employees who have a problem with a supervisor should first go to the supervisor and state. the problem. If a resolution cannot be agreed upon, the employee should present his or her problem, in writing, to Company management. The decision of the management will be final. Discipline Richard Drake Construction Company, LP's policy is to attempt to deal constructively with employee performance problems and employee errors. The disciplinary process will be determined by Richard Drake Construction Company, ILP in light of the facts and circumstances of each case. Depending upon the facts and circumstances, the discipline applied may include, among other things, oral or written warnings, probation, suspension without pay, or immediate termination. Each situation will be considered in light of a variety of factors including, but not limited to, the seriousness of the situation, the employee's past conduct and length of service, and the nature of the employee's previous performance or incidents involving the employee. Details of this process are outlined further in the Corrective Action section below. Corrective Action Corrective Action is taken against an employee in response to a rule infraction or a violation of company policies. Corrective action will continue until the violation or infraction is corrected. Corrective Action usually begins with a verbal warning, followed by a written warning that is placed in the employee's personnel folder. If more serious corrective action is required, the employee may be put on probation, or have his or her employment terminated. Richard Drake Construction Company, LP considers some violations as grounds for immediate dismissal, including, but not limited to: a. Use of drugs or alcohol on jobsite, Company property, or in company vehicles. b. Fighting or provoking a fight c. Unauthorized removal of Company property from any jobsite, vehicle or office d. Reckless or careless use or operation of tools, vehicles, machinery or equipment e. The willful destruction of property f. Disregard of safety rules g. Carrying firearms or other weapons on Company property or jobsite h. Insubordinate behavior 1. Breach of confidentiality j. Untruthfulness about personal background k. Threats of violence 19 Employees charged with some infraction and subject to corrective action may appeal that corrective action. An appeal must be submitted in writing to the Company President or Vice President. If, after reviewing the corrective action, the President or Vice President determines that the supervisor followed procedures accordingly, the corrective action will stand. If the supervisor has failed to follow company'policy, the action may be reversed. The decision of the President or Vice President is final. 5efaPolicies Job Abandonment The policy of Richard Drake Construction Company, LP concerning attendance on the job is: No Cali, No Show, No Job. Employees who are absent for one day or more without notifying a direct supervisor are considered to have voluntarily abandoned their employment with the company. The effective date of termination will be the last day the employee reported for work. If an employee abandons a job, he or she will not be entitled to accrued vacation pay, unless required by law. Termination Richard Drake Construction Company, LP does not have tenure or guaranteed employment. You or Richard Drake Construction Company, LP may terminate your employment at any time for any reason. Termination may result from any of, but is not limited to, the following: (1) Corrective action measures, which include infractions for violation of company policies, (ii) layoffs, which include the elimination of an employee's job function or headcount reduction due to redundancy or cost reduction and (iii) involuntary dismisses, which may include poor performance reviews or failure to demonstrate an acceptable attitude in the workplace. Termination Process Richard Drake Construction Company, LP requires that employees return all documents, files, computer equipment, uniforms, company tools, business credit cards, keys and other company owned property on or before the last day of work. When all company owned property has been collected, the employee will receive his or herfinal paycheck. Employees leaving the company will have the option of having an exit interview with the Company management. EmpfomentwReferences Due to confidentiality considerations, Richard Drake Construction Company, LP does not provide employment references for former employees, unless required by law. The Payroll Department will provide dates of employment, positions held and eligibility for rehire only. 20 Angendix EXHIBIT A Overview of the Family and Medical Leave Act The U.S. Department of Labor's Employment Standards Administration, Wage and Hour Division, administers and enforces the Family and Medical Leave Act (FMLA) for all private, state and local government employees and some federal employees. Most Federal and certain congressional employees are also covered by the law and are subject to the jurisdiction of the U.S. Office of Personnel Management or the Congress. FMLA became effective on August 5, 1993, for most employers. If a collective bargaining agreement (CBA) was in effect on that date, FMLA became effective on the expiration date of the CBA or February 5, 1994, whichever was earlier. FMLA entities eligible employees to take up to 12 weeks of unpaid, job -protected leave in a 12 -month period for specified family and medical reasons, The employer may elect to use the calendar year, a fixed 12 -month leave or fiscal year, or a 12 -month period prior to or after the commencement of leave as the 12 -month period. The law contains provisions on employer coverage; employee eligibility for the law's benefits; entitlement to leave, maintenance of health benefits during leave, and job restoration after leave; notice and certification of the need for FMLA leave; and protection for employees who request or take FMLA leave. The law also requires employers to keep certain records. EMPLOYER COVERAGE FMLA applies to all: • Public agencies, including state, local and federal employers, local education agencies (schools) and • Private -sector employers who employed 50 or more employees in 20 or more workweeks in the current or preceding calendar year and who are engaged in commerce or in any industry or activity affecting commerce including joint employers and successors of covered employers. EMPLOYEE „ELIGIBILITY To be eligible for FMLA benefits, an employee must: • Work for a covered employer; • Have worked for the employer for a total of 12 months; • Have worked at least 1,250 hours over the previous 12 months; and • Work at a location in the United States or in any territory or possession of the United States where at least 50 employees are employed by the employer within 75 miles. LEAVE ENTITLEMENT ff A covered employer must grant an eligible employee up to a total of 12 workweeks of unpaid leave during any 12 -month period for one or more of the following reasons: • For the birth and care of the newborn child of the employee; • For placement with the employee of a son or daughter for adoption or foster care; • To care far an immediate family member (spouse, child, or parent) with a serious health condition; or • To take medical leave when the employee is unable to work because of a serious health condition. Spouses employed by the same employer are jointly entitled to a combined total of 12 work -weeks of family leave for the birth and care of the newborn child, for placement of a child for adoption or foster care and to care for a parent who has a serious health condition. Leave for birth and care, or placement for adoption or foster care must conclude within 12 months of the birth or placement. Under some circumstances, employees may take FMLA leave intermittently -- which means taking leave in blocks of time, or by reducing their normal weekly or daily work schedule. If FMLA leave is for birth and care or placement for adoption or foster care, use of intermittent leave is subject to the employer's approval. MLA leave may be taken intermittently whenever medically necessary to care for a seriously ill family member, or because the employee is seriously ill and unable to work. Also, subject to certain conditions, employees or employers may choose to use accrued paid leave (such as sick or vacation leave) to cover some or all of the FMLA leave. The employer is responsible for designating if an employee's use of paid leave counts as FMLA leave, based on information from the employee_ "Serious health condition" means an illness, injury, impairment, or physical or mental condition that involves either: 1. Any period of incapacity or treatment connected with inpatient care (i.e., an ovemight stay) in a hospital, hospice, or residential medical -care facility and any period of incapacity or subsequent treatment in connection with such inpatient care; or 2. Continuing treatment by a healthcare provider which includes any period of incapacity (i.e., inability to work, attend school or perform other regular dally activities) due to: 2.01 A health condition (including treatment therefore, or recovery therefrom) lasting more than three consecutive days and any subsequent treatment or period of incapacity relating to the same condition, that also includes: • Treatment two or more times by or under the supervision of a health care provider; or • One treatment by a health care provider with a continuing regimen of treatment; or * Pregnancy or prenatal care. A visit to the health care provider is not necessary for each absence; or e A chronic serious health condition, which continues over an extended period of time, requires periodic visits to a health care provider and may involve occasional episodes of incapacity (e.g., asthma, diabetes). A visit to a health care provider is not necessary for ead-i absence; or 7a A permanent or long-term condition for which treatment may not be effective (e.g., Alzhelmer's, a seven= stroke, terminal cancer). 'Only supervision by a health care provider is required, rather than active .treatment; or Any absences to receive multiple treatments for restorative surgery or for a condition which would likely result in a period of incapacity of more than three days if not treated (e.g., chemotherapy or radiation treatments for cancer). "Health care provider*' means: 1. Doctors of medicine or osteopathy authorized to practice medicine or surgery by the state in which the doctors practice; or 2. Podiatrists, dentists, clinical psychologists, optometrists and chiropractors (limited to manual manipulation of the spine to correct a subluxation as demonstrated by X-ray to exist) authorized to practice and performing within the scope of their practice, under state taw; or 3. Nurse practitioners, nurse -midwives and clinical social workers authorized to practice and performing within the scope of their practice, as defined under state law; or 4_ Christian Science practitioners listed with the First Church of Christ, Scientist In Boston, Massachusetts; or 5. Any health care provider recognized by the employer or the employer's group health plan benefits manager. MAINTENANCE OF HEALTH BENEFITS A covered employer is required to maintain group health insurance coverage for an employee on FMLA leave whenever such insurance was provided before the leave was taken and on the same terms as if the employee had continued to work. If applicable, arrangements will need to be made for employees to pay their share of health insurance premiums while an leave. In some instances, the employer may recover premiums it has paid to maintain health coverage for an employee who fails to return to work from FMLA leave. JOB RESTORATION Upon return from FMLA leave, an employee must be restored to the employee's original job, or to an equivalent job with equivalent pay, benefits and other terms and conditions of employment. In addition, ars employee's use of FMLA leave cannot result in the loss of any employment benefit that the employee earned or was entitled to before using FMLA leave, nor be daunted against the employee under a "no fault" attendance policy. Under specified and limited circumstances where restoration to employment will cause substantial and grievous economic injury to its operations, an employer may refuse to reinstate certain highly_ paid "key" employees after using FML4 leave during which health coverage was maintained. In 23 order to do so„ the employer must: "kef employee is a sala(led "eligible" rmnpN y e who is amongtime highest paid 'tern (Percent of employees within 75 miles of the 'w rk since. NP! ANQ_9ER0F1lCATION Employees ploy kin t use IFMLA leave are required t provide 30 -day advance notice, f time need to talke FMLA leave when 'tie need is foreseeable arid such notice is practicable, Employers may also require mpl as to provide: Medical t rtu'i atiomn supporting 'the need for leave dine to a serious health condition affecting the employee oran imrmmrnadta'ta -family iil member', b r„ Second or third medical opinions fat the rmnployer" expanse) and periodic r rtufu tion; and periodic reports during FMLA lava regarding time employee's statin, and !intent to return 't work. When intermittent leaWe is needed to care -for an irrnrrn dt to family member or the emplaye&s own illness and i 'f r planned medical treatment, 'time employee must try to schedule -treatment as not to unduly disrupt the employers operation. Covered employers must in -form employees,of -heir rights and responsibilities under IFMLA, including giving speck written Informatilon on what is, required of the employee and what rrnic Il�napparw in certain dircurnstances, such as If the mpl a tails to return to work after EMIL ll ave. It is unlawful for any employer to interfere with, restrain, or deny the exercise of any mint provided by FML,, it is also unlawful for an employer to 'terminate r digs idmraiirnata against army individual for opposing any pr �ctu „ �r � aur � lrav�llvarmn+ rmt in any proceeding, related to LA ' The Wage and Hour Division investigates cornmplaint „ It violations cannot be atisf ctorily resoNed, the U.S. Department of ILabor may bring action in court to compel c rrnpll rn e, Individuals may also bring a private lvll action against t arm ai riployar fair violations. E OTFER PROVISIONS Special rules apply to employees of local education agencies. Generally, these rules provide for FMI-A leave to be taken in blocks of time when intermittent leave is needed or the leave is required nearthe end of a school term. Salaried executive, administrative and professional employees of covered employers who meet the Fair labor Standards Act (FLSA) criteria for exemption from minimum wage and overtime under Regulations, 29 CFR Part 541, do not lose their FLSA-exempt status by using any unpaid FMLA leave. This special exception to the "salary basis" requirements for FLSXs exemption extends only to "eligible" employees` use of leave required by FMLA. The FMLA does not affect any other federal or state law, which prohibits discrimination, nor supersede any state or local law which provides greater family or medical leave protection. Nor does it affect an employer's obligation to provide greater leave rights under a collective bargaining agreement or employment benefit plan. The FMLA also encourages employers to provide more generous leave rights, 25 overview of Federal Equal Opp tLaws, including the ru ms with Disabilities Act, the Equal Pay the Age Discriminiation to Employment The EIEOC einforces the following laws: These lamas prohibit employrwnt discrimination based on race, color, sex® religious, national origin, age, disability and Prohibit retaliation 'tour opposing job discrimination, filing a charge" or participating in proceedings under these laws„ business is covered by the EEOC laws if: All employees, including part-tiirrua and temporary workers" ars counted 'for purposes of determining whether an airrnpl y it has a sUi rut nurnber of employees. An employee is sorrnasn -with whom the employer has an employment relationship. Th existence of an employment relationship is most easilyshown by a person's appear rnce on themployer's Ipay'r ll" but this alone does not necessarily answer ibe question. Determining whether am ennployer has enough aruipi y as to the covered by nesse lams is,, ultimately, a fugal question. Independent co n'tra t rs are not counted as employees, IDatarnilnirng whether ars individual is, under the law„ an independent rntra t r,, also is a legal question tlsat "rrnay not be as easy to answer as our inight'think, For more informatioin an how tD determine wh th r a person is an "'employee" or an "irndspendsnt contractor" visit 990 ba rn pin !n ; . t cnu l yap"'Threshold.....Issues If you are unsure whether r a business or irndinridual is covered, you l may wish to consult Mttn an attorney. "rhe, t lloveirng may file a charge of diSCrimlination 'wide the EEOC:: IN Anyone h believes -that his or her employment rights have been vloiated because Kusa o't race" color, sex, religion, national origin, age, disability or because of retaliation im y file a charge of discrimination With EEOC,. By law,, EEOC rn°nnust accept -the filiiung of a charge., In most geographic areas" a dharge,must be 'riled YOM IEEOC within 300 days 'tr m the date of the alleged discrlrrnirnation. In a very small number of arsons where a state or local employment discrimination law dues not amply" a charge must be filed within 180 days. 26 EXHII BIT C Overview of The Immigration Reform and Control Act The Immigration Reform and Control Act of 1986 (IRCA) makes it unlawful for an employer to hire any person who is not legally authorized to work in the United States and it requires employers to verify the employment eligibility of all new employees. IRCA also prohibits discrimination in hiring and termination based on national origin (as does Title VII) and on citizenship status. IRCA's anti -discrimination provisions are intended to prevent employers from attempting to comply with the Act's work authorization requirements by discriminating against foreign400king or foreign -sounding job applicants. IRCA's anti -discrimination provisions apply to smaller employers than those covered by EEOC -enforced laws. • IRCA's national origin discrimination provisions apply to employers with between 4 and 14 employees (who would not be covered by Title VII). ■ IRCA's citizenship discrimination provisions apply to all employers with at least 4 employees. • IRCA is enforced by the U.S. Department of Justice. For information on IRCA's anti- discrimination provisions, contact: United States Department of Justice Office of Special Counsel for Immigration -Related Unfair Employment Practices (800) 255-8155 (employer hotlineivoice) (890) 237-2515 (TDD) NN .e Y ECHIBITa Acknowledgement of Receipt & Understanding hereby certify that I have read and fully understand the contents of this Employee Handbook. I also acknowledge that I have been given the opportunity to discuss any policies contained in this handbook with a company official. I agree to abide by the policies set forth in this handbook and understand that compliance with Richard Drake Construction Company, LP's rules and regulations is necessary for continued employment. My signature below certifies my knowledge, acceptance and adherence to the company's policies, rules and regulations. I acknowledge that the company reserves the right to modify or amend its policies at any time, without prior notice. These policies do not create any promises or contractual obligations between this company and its employees. Signature Date 28 r 11. s 0 `I1 Zs 0 Item No. 11 TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Ronny Enns — Enns Ventures, LLC - 5 In 5 Infill Development Agreement City of Paris, Block 98, Lot 1-A (71h St. NW & West Henderson), LCAD #15470 -and- 661/663 NE 10th St., Four C's Addition, Block A, Lot 1, LCAD #128619 641/643 NE 10th St., Four C's Addition, Block A, Lot 2, LCAD #128620 DATE: May 9, 2022 BACKGROUND & DISCUSSION Attached please find the draft agreement between the City and Mr. Ronny Enns for the construction of seven new duplexes in two locations in the 5 In 5 Area. The first four units will get underway this year on the 10th Street site. The West Henderson and 7th St. NW will follow in 2023 after completion of the subdivision platting approvals later this year. Attached are examples of the new homes Mr. Enns proposes to construct on these properties. Bobby Smallwood Construction is the General Contractor for the project. The agreement spells out all the requirements under the 5 In 5 Infill Development Program Guidelines. Mr. Enns and Mr. Bart Chadwick plan to attend the meeting on Monday night and present their building plans under the agreement to the City Council. Recommendation Approval of the 5 In 5 Infill Development Agreement with Ronny Enns with Enns Ventures, LLC. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AND TAX ABATEMENT AGREEMENT WITH ENNS VENTURES, LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Paris, Texas has been presented a proposed agreement by and between the City and Enns Ventures, LLC providing for a an Economic Development Agreement and Tax Abatement Agreement (the "Agreement") under the 5 in 5 Housing In -fill Development Program (the "Program") adopted by the City Council on January 10, 2022 by Resolution No. 2022-003; and, WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits eligible for the Residential Tax Abatement Program; and WHEREAS, the property defined in the Agreement and improvements to be made under the Agreement is situated within Reinvestment Zone 2020-1 and within the Program Area described in the Program; and WHEREAS, the contemplated use of the property, and the improvements to be installed thereon in the amounts set forth in the Agreement and the other terms therein are consistent with encouraging development of said reinvestment zone in accordance with the purposes for which it was created and are in compliance with the City's policy of tax abatement incentives as set forth in the Program and all applicable laws; WHEREAS, the City Council also wishes to offer the additional development incentives set forth in the Agreement pursuant to Chapter 380 of the Texas Local Government Code, and WHEREAS, the City Council finds that the incentives offered in the Agreement will encourage development in the Program Area described in Resolution 2022-003 through the provision of much needed housing stock for the growing labor force in the City; and WHEREAS, upon review and consideration of the Agreement, and all matters attendant and related thereto, the City Council is of the opinion that the terms and conditions therein meet the Guidelines and Criteria for Tax Abatement set forth in the Program and should be approved, and that the City Manager should be authorized to execute it on behalf of the City of Paris, Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms of the Economic Development Agreement and Tax Abatement Agreement and the property the subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by the City of Paris by Resolution No. 2022-003 and will lead to the economic development of the Program Area described in said Resolution No. 2022-003. Section 3. That the terms and conditions of the proposed Agreement attached hereto as Exhibit A, having been reviewed by the City Council of the City of Paris and found to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same are hereby, in all things approved. Section 4. That the City Manager is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the City of Paris substantially according to the terms and conditions set forth in the Agreement attached hereto as Exhibit A. Section 5. That the planned use of the property the subject of the tax abatement will not constitute a hazard to public safety, health, or morals. Section 6. That this approval and execution of the agreement on behalf of the City is not conditioned upon approval and execution of any other tax abatement agreement by any other taxing entity. PASSED AND APPROVED this 9th day of May, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE STATE OF TEXAS COUNTY OF LAMAR ECONOMIC DEVELOPMENT AND RESIDENTIAL TAX ABATEMENT AGREEMENT This Economic Development and Residential Tax Abatement Agreement (hereinafter the "Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipality situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "City"), and ENNS VENTURES, LLC (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on January 10, 2022, the City Council of the City of Paris, Texas passed Resolution No. 2022-003 stating its intent to establish 5 In 5 Housing In -Fill Development Program (hereinafter "the Program") including a low cost land sale and residential tax abatements and adopting guidelines and criteria for the Program; and WHEREAS, Resolution 2022-003, City Council designated an area within Reinvestment Zone 2020-1 as being eligible for the Program; and WHEREAS, on April 12, 2021, the City Council approved resolution 2021-012 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criteria for the residential tax abatement program; and WHEREAS, the Program has additional criteria and guidelines for participation in said Program, including criteria and guidelines for eligibility for residential tax abatements; and WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill Development project to construct seven (7) new duplex structures for a total of fourteen (14) dwelling units at the above described properties in Paris, Texas (hereinafter "Improvements"); and WHEREAS, city staff has reviewed the application and the location of the above described residential duplex improvements (hereinafter "Improvements") and has determined that the property is located within the boundaries of the defined geographic area and meets the requirements for Improvements set forth in the Guidelines and Criteria for the 5 In 5 Housing Infill Development Program as set forth in City Resolution No. 2022-003. NOW, THEREFORE, in consideration of the terms and conditions referenced herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City, and Owner, (collectively referred to as "Parties") hereby mutually agree as follows: Component Parts This Agreement comprises two component parts, including an economic development agreement pursuant to Texas Government Code Chapter 380 and a residential tax abatement agreement pursuant to Texas Tax Code Section 312. Terms Applicable to both the Economic Development Agreement and the Residential Tax Abatement Agreement: I. The Properties—Areas to be Improved 1.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Properties located in Paris, Lamar County, Texas more fully described in Exhibit 1 attached hereto and incorporated herein by reference, which Property is within Reinvestment Zone No. 2020-1 and within the area set forth in the Program: • City of Paris, Block 98, Lot 1-A (to be addressed property on 7t' St. NW), LCAD #15470 • 661/663 NE 10h St., Four C's Addition, Block A, Lott, LCAD #128619 • 641/643 NE 10th St., Four C's Addition, Block A, Lot 2, LCAD #128620 II. Consideration --Improvements 2.1 The Improvements to be completed consist of constructing seven (7) new residential duplex structures upon the above described parcels and as more fully described in the application for the Program attached hereto and incorporated herein as Exhibit 1 and incorporated herein by reference. Said Improvements must be completed within the term of the Economic Development Agreement, set herein to expire on May 8, 2027. 2.2 The total estimated value of the Improvements to be constructed on the above - referenced parcels is TWO MILLION THREE HUNDRED TEN THOUSAND AND NO/100 ($2,300,000.00). 2.3 Owner shall obtain City approval for all necessary platting (if required) and plans, building permits, green tags and a Certificate of Completion from the City of Paris. 2.4 Owner shall allow city inspectors' access to the Property and Improvements throughout construction and completion of Improvements. 2 2.5 Owner agrees and covenants that it will diligently and faithfully construct the Improvements referenced herein in a good and workmanlike manner within 12 months of obtaining building permits from City for each structure. Owner further covenants and agrees that construction of the Improvements will be in accordance with all applicable state and local laws, codes and regulations or Owner will procure a valid waiver or variance thereof. In no event shall Owner fail to complete all Improvements required herein by May 8, 2027. 2.6 Owner shall contact City Building Official for final inspection once Improvements are completed and obtain a Certificate of Completion for the new residential dwellings as completed. 2.7 Owner shall notify the Lamar County Appraisal District upon completion of Improvements and request an updated appraisal of the Improvements. 2.8 Owner shall provide City with appraised value of Improvements upon receipt of same from Lamar County Appraisal District. 2.9 Owner may not use the parcels described in Section 1.1 and conveyed to Owner pursuant to the terms of this Agreement for any other purpose other than to construct the Improvements set forth in this Article. Use of any parcel for any other purpose shall constitute a separate act of default of the Agreement and will trigger the default provisions and remedies set forth hereunder. III. Terms Specific to the Economic Development Agreement— Texas greementTexas Local Government Code Chapter 380 A. Term 3.1 The term of this Economic Development Agreement shall commence on May 9, 2022 and shall continue for a period of five (5) years ending on May 8, 2027. B. Reduced Fees for Building Plan Review and Permitting 3.2 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for building plan review by one hundred percent (100%) and permit fees by fifty percent (50%) for each dwelling unit constructed pursuant to this Agreement. C. Reduced Fees for Water and Sewer Tap Labor 3.3 In further consideration for Owner's construction and completion of the above - referenced Improvements, City agrees to reduce rates for water and sewer tap labor fees by fifty percent (50%) where required by the City's Public Works Department. 3 D. Local Purchasing 3.4 As further consideration for the incentives granted herein, where possible, Owner shall purchase building materials and fixtures from vendors located within the City of Paris. E. Default 3.5 It shall be an act of default of the Economic Development Agreement should Owner fail to construct and compete all of the Improvements specified herein within the five (5) year term set forth herein. In such case, City will exercise its right of reversion to each parcel on which a residential development has not been constructed and completed, and Owner agrees to divest itself of any ownership interest in any and all such parcels conveyed to Owner under this Agreement. IV. Terms Specific to the Residential Tax Abatement Agreement— Texas Tax Code Chapter 312 A. Term 4.1 The term of this Tax Abatement Agreement shall commence on May 9, 2022. It is the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on each dwelling unit constructed as it is completed and issued a Certificate of Completion by City. Consequently, each dwelling unit constructed and completed shall have its own five (5) year abatement period. The abatement period for each constructed and completed dwelling unit shall commence on January 1 of the year following City's issuance of a Certificate of Completion on said dwelling unit and end on the fifth (51') anniversary of the commencement of the abatement period. This Tax Abatement Agreement shall terminate upon the expiration of the final abatement period granted herein unless otherwise terminated by default or agreement of the Parties. B. Abatement 4.2 Subject to the terms and conditions of this Economic Development Agreement and Tax Abatement Agreement, in further consideration for the construction and completion of the Improvements required herein and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon each Improvement and otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per year of the taxes assessed upon the increased value of the Improvements made by Owner to the Properties described in Section 1.1 of this Agreement, over the value in the year by which this agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers thereof; provided that the Owner shall have the right to protest or contest any assessment of the Properties and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any L, such protest or contest. For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2022. 4.3 This abatement is granted in accordance with the City's Guidelines and Criteria for the Program, a copy of which is attached hereto as Exhibit 2 provided, however, in the event of any conflict between this Agreement and the Guidelines and Criteria for the Program attached hereto as Exhibit 2, this Agreement shall control. 4.4 Upon receipt of the documentation set forth in Article II and in Section 5.6 herein as to each constructed and completed duplex, City will notify the Lamar County Appraisal District to begin the tax abatement as to said unit. C. Default 4.5 If (a) the Improvements (all seven units) for which an abatement has been granted are not completed in accordance with this Agreement (within five (5) years of the effective date hereof); or (b) Owner allows its taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such; or (c) Owner materially breaches any of the other terms, provisions or conditions of this Economic Development Agreement and Tax Abatement Agreement, then owner shall be considered in default of this Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give Owner written notice of such default and if Owner has not cured such default within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated by the City. Notice of default shall be given in accordance with Article V of this Agreement. 4.6 As damages in the event of default, and in accordance with the requirements of Section 312.205(a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would have been paid to the City without the benefit of abatement, including taxes on those dwelling units constructed and completed according to the terms of this Agreement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owing, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. V. Additional Terms applicable to both the Economic Development Agreement and the Tax Abatement Agreement A. No Conflict of Interest. 5.1 The Owner represents and warrants that neither the Properties nor the Improvements include any real or personal property that is owned or leased by a member of the 5 Paris City Council or the Planning and Zoning Commission or any member thereof having responsibility for approval of this Agreement. S. Conditions. 5.2 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 5.3 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to release, indemnify and hold the City its elected officials, officers, employees and attorneys harmless from any claims, lawsuits, damages, costs or attorney's fees related to this Agreement. It is further understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently, and the Owner assumes no responsibility or liability in connection therewith to third parties and, to the extent permissible by law, the City agrees to indemnify and hold harmless the Owner therefrom. C. Compliance Provisions 5.4 The Owner agrees that the City, its agents and employees, shall have reasonable right of access to any and all records concerning Owner's investment in the Improvements for the purpose of conducting an audit of the Residential Improvements. Any such audit shall be made only after giving the Owner notice at least fourteen (14) days in advance and will be conducted in such a manner as to not unreasonably interfere with Owner's property. Upon request, the Owner will provide the City with a detailed list of all Improvements, including a list of materials used and cost thereof. 5.5 The Owner further agrees that the City, its agents and employees, shall have reasonable right of access to the Property to inspect the Improvements in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the right to enter the Property and conduct an inspection of the completed Improvements. D. Initial and Annual Reporting. 5.6 The Owner further agrees that it will, within thirty (30) days of completion of each dwelling unit as it issued a Certificate of Completion by the City, provide the CITY with a sworn report, written on Owner's letterhead and signed by a designated representative of Owner, which contains the following information: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property prior to the construction of the Improvements; (b) Detailed description of the Improvements; 0 (c) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's Building Official; (d) The actual cost of the specific capital Improvements; and, (e) The date of substantial completion of the specific Improvements as defined in paragraph 2.1 hereof; and (f) Receipts showing that the purchase of building materials and fixtures from for the construction were made from vendors within the City of Paris, when possible. 5.7 Owner further agrees that it will provide City with an annual, sworn report which shall certify, in writing, that it is in compliance with each applicable term of this Agreement. Such annual report shall be furnished on the forms provided by the City. 5.8 Owner understands that the reporting requirement set forth herein is a material term of this Agreement, and failure to timely submit such reports shall constitute a breach hereof. E. Authority to Contract. 5.9. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 10th day of January 2022, authorizing the City Manager to execute the Agreement on behalf of the City. 5.10 This Agreement was entered into by Owner pursuant to the authority granted to the authorized official whose signature appears below. 5.11. This Agreement shall constitute a valid and binding Agreement between the City and Owner when executed in accordance herewith, regardless of whether any other taxing unit executes a similar agreement for tax abatement. F. Legal. 5.12 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 5.13 This Agreement, except by operation of law, shall not be assigned or transferred by Builder, without the prior written consent of City, which consent shall be at the sole discretion of the City. 5.14 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, 7 addressed to the designated representative of the respective parties which are designated as follows: BUILDER: Enns Ventures, LLC Attn: Ronnie P. Enns P.O. Box 130 Paris, Texas 75461 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461-9037 Withaco, rto• City Clerk, City of Paris, Texas (Address same as above) 5.15 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 5.16 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. This Agreement is performable in Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the City, Owner, and their respective successors, and permitted assigns, if any. 5.17 Venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for the Eastern District of Texas for any federal court action. WITNESS our hands this day of , 2022. [Signature page to follow.] ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE CITY OF PARIS, TEXAS LIN Grayson Path, City Manager ENNS VENTURES, LLC. Ronnie P. Enns Title: Owner BEFORE ME, the undersigned authority, on this day personally appeared Grayson Path, City Manager of the City of Paris, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _ day of May, 2022. Notary Public, State of Texas Z BEFORE ME, the undersigned authority, on this day personally appeared Ronnie P. Enns, owner of Enns Ventures, LLC known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of May, 2022. Notary Public, State of Texas 10 I i ffigi X16 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIE E ANY OR ALL OF TBE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN TBE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER Special Warranty Deed Date: March 22, 2022 GF# 2122042-2050C Grantor: SOCA Funding, LLC, a Texas Limited Liability Company Grantor's Mailing Address: 2200 North Loop West, Suite 200, Houston, Texas 77018 Grantee: Enns Ventures, a Texas Limited Liability Company Grantee's Mailing Address: P.O. Box 130, Paris, Texas 75461 Consideration: Cash and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. Prop" C�ncluding any improvements): Situated within the Corporate Limits of the City of Paris, County of Lamar and State of Texas, a part of the Larkin Rattan Survey and being a part of a 16.755 acre tract of land conveyed the Olive Branch Apartments Charitable Trust by deed recorded in Volume 513, Page 451 of the Deed Records of said County and State. Beginning at a stake for corner, said point being East a distance of 20 feet and South a distance of 10 feet from the Northwest corner of said 16.755 acre tract of land, said point being the Northwest comer of a 0.604 acre tract of land conveyed the City of Paris by deed o€reoord in Volume 523, Page 350 of said Deed Records; Thence East along the South Boundary line of Henderson Street, a distance of 313 feet to a stake for corner in the South Boundary Line of said 0.604 acre tract of land, said point being 10 feet South of the North Boundary Line of said 16.755 acre tract of land; Thence South a distance of 339 feet to a stake for corner, SPECIAL WARRANTY DEED PAGE 1 154h/ j Thence West a distance of 313 feet to a stake for corner in the East Boundary Line of said 0.604 acre tract of laud, said point being 20 feet East of the West Boundary Line of said 16.755 acre tract of land; Thence North along the East Boundary Line of 7th Street Northwest a distance of 339 feet to the place of Beginning, Reservations from Conveyance: None Exceptions to Conveyance and Warranty: Validly existing easements, rights -0f --way, and prescriptive rights, whether of record or not; all presently recorded and validly existing instruments, 'other than conveyances of the surface fee estate, that affect the Property, and taxes for 2022, which Grantee assumes and agrees to pay, and subsequent assessments for that and prior years due to change in land usage, ownership, or both, the payment of which Grantee assumes. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Cmntee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's heirs, successors, 'and assigns forever. Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by, through, or under Grantor but not otherwise, except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. GRANTEE IS TAKING THE PROPERTY IN AN ARM'S-LENGTH AGREEMENT BETWEEN THE PARTIES. THE CONSIDERATION WAS BARGAINED ON THE BASIS OF AN "AS IS, WHERE IS" TRANSACTION AND REFLECTS THE AGREEMENT OF THE PARTIES THAT THERE ARE NO REPRESENTATIONS OR EXPRESS OR IMPLIED WARRANTIES, EXCEPT FOR THOSE CONTAINED IN THE PURCHASE CONTRACT, THIS DEED, AND THE OTHER CLOSING DOCUMENTS. GRANTEE HAS NOT RELIED ON ANY INFORMATION OTHER THAN GRANTEE'S INSPECTION AND THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THE PURCHASE CONTRACT, THIS DEED, AND THE OTHER CLOSING DOCUMENTS. SPECIAL WARRANTY DEEDGE 2 When 1' k3 1"' L 1 1� .: If' SOCA, LLC, a Texas Limited Liability Company, STATE OF TEXAS COUNTY OF HARRIS Before me, the undersigned Notary, on this day personally appeared 0YQnYAf�Y , proved to me through Texas Driver's License to be the person whose name is subscri d to the foregoing instrument and acknowledged to me that orated the same as the act of SOCA Funding, LLC, a Texas Limited (Liability Company, as its authorized officer, for the purposes and consideration therein expressed. Given under my'hand and seal of office this day of 2022. xMNNwwwrv��I�W WWp wm. �&Ym.. MELISSA MARIE COLMENER O ,;Notary Public, State of Texas 'P= Comm. Expires 09-05-2022 ............Notary ID 131710031 _........ �uwwro,wanrvgmm roRhtt�,l^w^i�MVW Nowi.W%miwW9NNl"/'a% m�F� ou�,udoWwmmNtl�OP�i ! t t •Ventures P.O. Box 130 SPECIAL WARRANTY .D q � otmry Public, State of Texas My commission expires: _ C Enns Ventures LLC P.O.Box 130, A3Tn—er-aTI4Wr-ranty NTW Date: , 2022 Grantors: Barton I Chadwick, a married person, not joined herein as this Property constitutes no part of my homestead Grantor's Mailing Address: 1040 Cannon Place Paris, Texas 75462 Grantee: Enns Ventures LLC, a Texas limited liability company Grantee's Mailing Address: P.O. Box 130 Paris, Texas, 75461 Consideration: Cash and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged. Property (including any improvements): Lot 1 and Lot 2 in Block "A" of the Four C's Addition to the City of Paris, Lamar County, Texas, as recorded in the plat of said addition in Envelope 484-13, Lamar County Plat Records. Reservations from Conveyance: None Exceptions to Conveyance and Warranty: Validly existing easements, rights-of-way, and prescriptive rights, whether of record or not; all presently recorded and validly existing instruments, other than conveyances of the surface fee estate, that affect the Property; and taxes for 2022, which Grantee assumes and agrees to pay, and subsequent assessments for that and prior years due to change in land usage, ownership, or both, the payment of which Grantee assumes. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty, grants, sells, and conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Grantor binds Grantor and Grantor's heirs and successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof. When the context requires, singular nouns and pronouns include the plural. Thrs instrument was geared used on information furnishedb thewvarties, and mno inde ,pendent title search has been made. STATE OF TEXAS COUNTY OF LAMAR § f" r""4 4/ This instrument was acknowledged before me on this ei day of Janmry, 2022 by BARTON J. CHADWICK. �� ... Not.... __._m.. ... �..� Notary Public, State of Texas ate` ;rP�os -SHERI ARNOLD otary Public. State of Texas y' Comm. Expires 05-12-2023 r Notary ID 126089178 .u���� µ �.�v•�w RESOLUTION NO. 2022-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS ESTABLISHING THE 5 IN 5 HOUSING IN -FILL DEVELOPMENT PROGRAM; AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN RESIDENTIAL HOUSING TAX ABATEMENTS AND APPROVING GUIDELINES, CRITERIA AND AN APPLICATION FORM FOR THE PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their intentto participate in tax abatement agreements and to adopt guidelines and criteria for granting such tax abatements; and WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated Reinvestment Zone No. 2013-1 for residential tax abatements; and WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also approved Resolution No. 2013-036 electing to be eligible to participate in a residential tax abatement program and approving Guidelines and Criteria for Residential Tax Abatement Program as required by statute; and WHEREAS, on February 9, 2015, the City Council passed Ordinance No. 2015-002 amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to include all Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No. 2015-1; and WHEREAS, on January 9, 2017, the City Council approved Resolution 2017-001 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, on April 22, 2019, the City Council approved Resolution 2019-013 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, in 2020, City Council re -authorized Reinvestment zone 2015-01 and renamed it Reinvestment Zone No. 2020-1; and WHEREAS, on April 12, 2021, the City Council approved Resolution 2021-012 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax abatements are effective for two years from the date adopted; and WHEREAS, the City Council desire to continue to participate in a residential tax abatement program in the City of Paris and has now been presented with a new program to be known as the "5 In 5 Housing In -Fill Development Program" (the "Program") with specific guidelines and criteria for residential tax abatements entered into pursuant to Program; and " 1. WHEREAS, the City Council has identified a specific geographic area within the City of Paris and within Reinvestment Zone 2020-1 in which lie properties eligibile for the Program; and WHEREAS, the City Council wishes to offer other incentives in the Program through Chapter 380 of the Texas Government Code; and WHEREAS, said the City Council finds that Program and the incentives offered therein will contribute to economic development within the Program area and the Reinvestment Zone through the provision of much needed housing for workforce for industries and other employers within the City; and WHEREAS, on January 10, 2022, the City Council conducted a public hearing regarding the Program guidelines and criteria for residential tax abatements, and having taken into account any testimony from said public hearing, wishes to adopt the Program and the guidelines and criteria for residential tax abatements set forth therein; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City hereby adopts the "5 In 5 Housing In -Fill Development Program," a copy of which is and attached hereto and incorporated herein as Exhibit "A," elects to be eligible to participate in a residential tax abatement program under said Program, and adopts the Guidelines and Criteria for residential tax abatements contained in said Exhibit "A." Section 3. The City Council hereby designates the defined geographic area for properties to be eligible to participate and enter into an agreement for the "5 In 5 Affordable Housing In -Fill Program", a map of which is attached hereto and incorporated herein as Exhibit "B". Section 4. In order to qualify for the Program, an applicant shall agree to construct at least five (5) new residential dwelling units on one (1) or more parcels within the boundaries set out in Exhibit "B", which area lies within Reinvestment Zone 2020-1, within five (5) years of entering into an Economic Development Agreement and Tax Abatement Agreement with the City. Section 5. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 10th day of January, 2022. W � C! , •.O°�,, Paula Portugal, Mayo ATTEST: Ellis, City Clerk APPROVED AS TO FORM: + Step 1w ie H. Harris, City Attorney 5 IN 5 HOUSING IN -FILL DEVELOPMENT PROGRAM GUIDELINES, CRITERIA AND APPLICATION FORM CITY OF PARIS, TEXAS January 10, 2022 I. GENERAL PURPOSE AND OBJECTIVES The City of Paris, working with our local government partners, is seeking to provide a series of builder incentives designed to encourage new home construction for the purpose of neighborhood revitalization and the provision of work force housing. New home construction within the existing interior of the community can have a positive effect towards reinvestment in our neighborhoods by providing stability and enhanced character, as well as a means to expand our community's local labor force. Focusing on the existing interior of the City allows the builder to utilize existing infiastructure rather than the extension of costly streets and utilities in undeveloped lands at or beyond the urban fringe. To achieve this purpose, the City will offer a series of incentives: 1. Where applicable, the City will provide low cost residential lots in the Program Area in tax foreclosure city receivership. If a builder obtains properties through other traditional means within the Program Area, other incentives within this policy may apply. 2. The City will offer a five (5) year 100% residential tax abatement of City property taxes. 3. The City will offer reduced rates on building plan review and permit fees. 4. The City will offer reduced rates on labor charges on water and sewer tap fees. The city staff will work with interested builders to identify parcels from a pool of tax sale lots in trustee status to develop a list of properties that will be suitable for the construction of new dwelling units. This may consist of single-family, two-family, medium density, or high density residences. Prior to any construction occurring from which the builder is seeking incentives, the builder will enter into an Agreement to be approved by the City Council for the construction of a minimum of five (5) or more dwelling units on one (1) or more parcels. Each of the dwelling units subject to the Agreement must be constructed under the terms of the agreement within five (5) years from the date of the Agreement, unless such deadline is extended by subsequent approval of the City Council. All parcels under the Agreement must be built upon within five (5) years to satisfy the terms of the Agreement. Failure to achieve this goal will result in certain claw backs as provided in the Agreement. All applications shall be considered on a first come, first serve basis. There will be no income guidelines under this program for occupants of the dwelling units, whether owner or renter occupied. In the event the applicant constructs a new dwelling unit and sells said unit, the tax abatement shall lapse and be terminated as to that parcel unless the City Council approves an assignment of the tax abatement agreement to the new owner. Page 1 of 7 In order to further encourage local development, employment and enhancement of our economy, to be eligible for incentives in this policy, building materials and fixtures used in the construction of new dwelling units, where possible, must be purchased locally within the City of Paris. II. DEFINITION OF TERMS Act - The Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq., as amended from time to time, Agreement - A contractual agreement between an applicant and the City of Paris for the purposes of a 5 In 5 Housing In -Fill Development Program to include an economic development agreement pursuant to Chapter 380 of the Texas Local Government Code and a residential tax abatement agreement pursuant to the Act. Applicant - An owner, proposed owner, builder or authorized agent of the owner of eligible property seeking an agreement under this policy. Base Year Value — The assessed value of eligible property on January 1, preceding the date of execution. Eligible Property - Property located in the defined Program Area, whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed on due to taxes. New Structure - Residential improvements made to a property previously undeveloped or a vacant parcel which is placed into use by means other than by expansion or modernization without full demolition of an existing substandard or condemned structure. Program Area - An area depicted in "Exhibit B" of the approved resolution for the 5 In 5 Housing In -Fill Development Program, which area is wholly within the boundaries of Reinvestment Zone 2020-1 for the purpose of residential tax abatements. Residential Improvements - The construction of new residential structures and all the appurtenances thereto. This term includes single family, duplexes and multi -family structures. Value of improvements — The appraised value of the Residential Improvements as determined by the Lamar County Appraisal District and as described in the Agreement. M. ELIGIBILITY AND GUIDELINES Real property is determined eligible under this policy as provided in the Definitions. If property is eligible, an Applicant may apply for an Agreement to receive incentives provided for in this policy. For tax foreclosed properties, all taxing jurisdictions shall be required to sign off on the low cost land sale according to the provisions of State Law prior to transfer of the property to the applicant. Page 2 of 7 UII.... NtlIII��V6'�V «r W o...... h�N11�VIV 1VVV�VIIiViV�VV6illV�191�IM�IW MinimumInvestment— To be eligible for residential tax abatement, an Applicant must constrict a new structure or structures on the property parcel(s) identified in an Agreement between the applicant and the City. Incentives Lowmm Cost, Sale of Foreclosed app errt es — As part of their agreement, an applicant may choose to purchase eligible properties that are in a state of tax foreclosure. These properties are strictly first come, first serve and the City makes no warranty on having available properties for this incentive. The City will work with the Lamar County, Paris Independent School District, and Paris Junior College to seek a low cost sale of the foreclosed property, but the City can only guarantee a low cost of its share. TaxAbatement- An Applicant who has satisfied all the criteria and guidelines for the low cost property sale and residential tax abatement as set out herein, will be eligible for a 100% five (5) year tax abatement on each parcel on which a dwelling unit or units are constructed and completed. The abatement will become effective on January 11 of the year following issuance of a Certificate of Completion following final construction inspection. As provided in the Act, a tax abatement may only be granted for the value of the Residential Improvements which exceed the base year value of the property and which are listed in an Agreement between the City of Paris and the applicant, subject to such limitations as the City of Paris may require. The base value will be set as of January 11 of the year in which the Agreement is executed. Upon completion of construction, the Applicant shall provide a copy of all material and fixture purchase invoices to prove that those materials and fixtures were purchased locally within the City of Paris when possible. The tax abatement is available only for improvements made after the execution of the Agreement. The Agreement may not be approved by the City Council until at least thirty (30) days after notice of the consideration and possible action on the Agreement has been posted. Reduced Fees for Building Plan Review and ,P ermitttnp — The Applicant will be entitled to reduced rates for building plan review and permit fees on a cumulative basis for all new dwelling units under agreement with the City according to the following schedule: Total Dwelling Units Plan Review Fee Discount Building Permit Fee Discount 5-9 100% 50% 10-19 100% 75% 20+ 100% 100% Reduced Fees for Waterand, Sewer Tan wLabor — The Applicant will be entitled to reduced rates fees, where required b the Public Works D for water and sewer tap labor f s, eq y apartment, on a cumulative basis for all new dwelling units under agreement with the City according to the following schedule: Page 3 of 7 "d'ipllIpni I�i�Tl�i�dhltld�if��101��111��1�110��101��9d��i'okUIIUIII�UhI�IhIU��9 Total Dwelling Units Water Tap Labor Fees Discount Sewer Tap Labor Fees Discount 5-9 50% 50% 10-19 75% 75% 20+ 1000/0 100% Claw Back Provision — The Applicant who enters into an Agreement with the City of Paris shall construct at least five (5) or more new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the Agreement, or the City shall have the right to automatically take back any undeveloped parcel under the terms of the agreement and transfer of the property by all taxing entities. This shall be recorded with or as a part of the deed as a right of reversion for all uncompleted construction lots deeded under this agreement against the property. The Applicant may request approval of an extension for such failure to construct a new residential dwelling unit(s), based upon reasonable circumstances, as may be approved by the City Council under a subsequent revised agreement. Parcels under the agreement cannot be sold or assigned to another individual except by prior approval and re -assignment of the parcel(s) and approval of a new agreement by the City Council. Failure to meet the requirements of construction the minimum of five (5) dwellings within the five (5) year period will result in a reversion of the all parcels upon which Residential Improvements have not been constructed and completed to the City and will result in the Applicant's being ineligible to participate in this program in the future. As a further claw back provision, and in accordance with Texas Tax Code Sec. 312.205, the Agreement shall provide for recapturing property tax revenue lost as a result of the agreement if the owner of the property fails to make all the Residential Improvements as provided in the Agreement regardless of how many dwelling units applicant builds. Com fiance with all other Citi lte uirements —The Applicant shall be fully responsible for compliance with all zoning, subdivision platting, and building code requirements as may specifically pertain to the subject parcel(s) under the approved Agreement. The applicant shall be fully responsible for all such costs which may include, but not be limited to: Zoning Changes, Special Use Permits, Variances, Platting and Surveying Costs, Plan Preparation, and Building Permit Fees. IV. APPLICATION PROCEDURES Applications for an Agreement with the City shall be reviewed for completeness. City Staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional information or documents from Applicant. City Staff will make final recommendations on each application to the City Council. Any Applicant desiring approval of an Agreement shall comply with the following procedural guidelines. All applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria_ 1. Preliminary Application Steps A. Applicant shall work with City Staff to identify eligible tax foreclosure City Trustee Page 4 of 7 or other parcels within the defined geographic area. City Staff will provide a list and corresponding map from which tax foreclosure City receivership parcels may be reviewed. The Applicant may submit an application for this program concurrently with an application for a building permit(s). If the Applicant for the building permit is not the owner of the real estate and does not make application for an agreement on behalf of the owner of the real estate and does not make application for an Agreement on behalf of the owner, the City Staff shall notify the owner (according to the most current records of the Lamar County Appraisal District) by certified mail, return receipt requested, that the application must be signed and filed with the City within ten (14) business days of receipt of the affidavit of ownership notice. B. A pre -approval letter must be attached to the application from Applicant's financial institution stating that the Applicant will have financial capital available to compete all new dwelling unit construction under the five (5) year Agreement with the City. Verification of such financial capability may be reviewed over the course of the Agreement. C. If the building permit applicant does not apply for an Agreement prior the time the building permit is issued, or if the owner fails to respond to the written notice availability of the Agreement, this policy shall be considered waived by the applicant and/or owner. City Staff shall make a record to reflect owner's election not to participate in the Program or to document that owner did not respond to City's notice of opportunity to participate in the program. The refusal or waiver to participate in the program by the building permit applicant or owner shall be binding on subsequent owners of the real property, D. A complete legal description shall be provided with a copy of the current deed of the land, unless the parcel(s) are being transferred by tax resale deed by the City of Paris. E. Applicant shall complete all forms and information detailed above and submit all forms to the City of Paris Director of Planning and Community Development, 2. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. If necessary, Applicant will meet with City Staff to discuss details of the application and to prepare presentation of the application to the City Council. 3. The application shall designate whether the dwellings(s) to be constructed are to be retained for ownership, or sold to another owner upon completion of construction. Applicant shall also provide an estimate of the value of improvements as required for building permit application. 4. If an application for the 5 In 5 Housing In -Fill Development Agreement is to be recommended for approval by staff, then an Agreement as defined herein with the City of Paris as prepared by the City Attorney for approval by the City Council. Page 5 of 7 5. If the Applicant's property is not found to be eligible, the application will be rejected and returned to Applicant. 6. The City Council reserves the right to amend these policies and guidelines as needed. V LEGAL DOCUMENTATION PREPARATION The Director of Planning and Community Development and the City Attorney will be responsible for drafting the required Agreement in accordance with state law and this Policy. The legal document will include the following: 1. Estimated value of new structure or residential improvements to be constructed. 2. Total amount of value to be abated over five (5) years. 3. Effective date and the termination date of abatement. 4. Description of the Residential Improvements, schedule of completion, property description, all required City approval requirements and a platted lot site plan or sketch of the parcel(s) to be platted and developed. 5. Applicant agrees to make the new structure or residential improvements available for inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal District (LCAD) during construction and upon completion of the project. 6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture and administration. 7. A signed and notarized statement as an attachment to the application agreeing to construct five (5) dwelling units on one (1) or more parcels within five (5) years from the date of City Council approval of an Agreement, unless extended by the City Council, or consenting to allow the City to automatically take back the parcel(s) under the initial terms of an approved agreement. Page 6 of 7 CITY OF PARTS, Property Owner: Name Current: Name Planned: Mailing Address: Telephone Number .. . a ........ email: --- Builder or Contact (if different than current/planned owner): Name: Mailing Address: State GC License No: Telephone Number:... ..... _ _ ..... ...._emailw..._ _., _ .. _m. Property Parcel(s) For Low Cost Land Sale and Tax Abatement: (Please submit an attached list of addresses and/or LCAD #'s on Excel Spreadsheet, if possible) Street Addresses: Summary Legal Description Lot: ...,._ Block: . .. Addition: o.. c tion: Full Legal Description: Include as an attachment a full legal description with metes and bounds and a copy of the deed, if available. Improvements: Type improvements for new Construction: SF_ 2F MF No. of Dwelling Units: Estimated Value of Improvements by type:,, Please attach a lending institution pre -loan approval letter. Attached: Yes No Estimated Start Date of Construction: Estimated Date of Completion of Projects) Description of Project (attach site plan, floor plan, etc.: Applicant(s) Signature: _ ....._ ............ Date: Date: Page 7 of 7 Item No. 12 TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Residential Tax Abatement — We're Going to Paris, LLC Former Westgate Apartments DATE: May 9, 2022 BACKGROUND & DISCUSSION Attached please find a draft Residential Tax Abatement Agreement for consideration of approval between the City of Paris and Seth Bame representing We're Going to Paris, LLC. The project involves the renovation construction of the entire former Westgate Apartment Complex. There are approximately 110 apartment units that will consist of 1, 2 and 3 bedrooms at market rate rents. This project was identified by the City as a very high priority redevelopment/renovation project need. The former Westgate CDBG housing project has remained abandoned for nearly the past 20 years in West Paris. The City has undergone a series of actions involving the tax forfeiture and public sale of the property to a private redeveloper. The property has since changed hands to an experienced redeveloper from the Dallas/Fort Worth Area. This company has extensive experience undertaking historic low/moderate income residential property renovations as part of their company portfolio. Mr. Bame plans to attend the Council meeting and present the Council with information about their company background and plans for the renovation of the Westgate property over the next year. Complete plans have been submitted to our Building Department and have been reviewed and are pending approval and issuance of permits. Permit issuance is pending final approval of the requested five-year 100% property tax abatement agreement by the City, as required by State Law. The developer is also meeting on the morning of May 91h with the Lamar County Board to discuss a similar agreement. Building permit issuance also needs to be held off on prior to County approval of a property abatement agreement, should they agree to approve the redeveloper's request. Recommendation Approval of the Residential Property Tax Abatement with We're Going to Paris, LLC is recommended. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING A RESIDENTIAL TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF PARIS, TEXAS, ("CITY") AND WE'RE GOING TO PARIS, LLC, ("OWNER"); MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT AND DECLARING AN EFFECTIVE DATE. WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on April 12, 2021, the City Council of the City of Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become eligible to participate in residential tax abatements and approving guidelines and criteria for the program; and WHEREAS, Owner has submitted an application for a residential tax abatement agreement related to its purchase and rehabilitation (the "Improvements") of the property located at 635 N.W. 7th St., commonly referred to as the Westgate Apartments (the "Property"); and WHEREAS, city staff has reviewed the application and the location of the above described improvements (hereinafter "Improvements") and has determined that the property is located within the boundaries of Reinvestment Zone 2020-1 and meets the requirements for Improvements set forth in guidelines and criteria as set forth in Resolution No. 2021-012; and WHEREAS, the Property has long been an a dilapidated condition and the Improvements proposed thereto will have a significant impact on the surrounding neighborhood and on West Paris in general thus justifying an upward deviation from the guidelines and criteria; and WHEREAS, furthermore, the restoration of the Property will help to alleviate a housing shortage within the city, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the terms of the Residential Tax Abatement Agreement and the property the subject thereof meet the City's Guidelines and Criteria for Residential Tax Abatement adopted by the City of Paris by Resolution No. 2021-12 save and except the following: the City Council finds that the project justifies an increase in the percentage of abatement granted to one hundred percent (100%) for five years because: • The Property has long been an a dilapidated condition and the Improvements proposed thereto will have a significant impact on the surrounding neighborhood and on West Paris in general; and • The restoration of the Property will help to alleviate a housing shortage within the city. Section 3. That the terms and conditions of the proposed Agreement attached hereto as Exhibit A„ having been reviewed by the City Council of the City of Paris and found to be acceptable and in the best interests of the City of Paris and its citizens, be, and the same are hereby, in all things approved. Section 4. That the City Manager is hereby authorized to execute the Agreement and all other documents in connection therewith on behalf of the City of Paris substantially according to the terms and conditions set forth in the Agreement attached hereto as Exhibit A. Section 5. That the planned use of the property the subject of the tax abatement will not constitute a hazard to public safety, health, or morals. Section 6. That this approval and execution of the agreement on behalf of the City is not conditioned upon approval and execution of any other tax abatement agreement by any other taxing entity. PASSED AND APPROVED this 9th day of May, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE STATE OF TEXAS ) COUNTY OF LAMAR ) RESIDENTIAL TAX ABATEMENT AGREEMENT This Residential Tax Abatement Agreement (hereinafter the "Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule municipality, situated in Lamar County, Texas, acting by and through its authorized officer whose signature appears below (hereinafter called "CITY"), and WE'RE GOING TO PARIS, LLC (hereinafter referred to as "Owner"). WITNESSETH: WHEREAS, on February 10, 2020, the City Council passed Ordinance No. 2020-005 creating Reinvestment Zone 2020-1, designating certain areas inside the city limits to be eligible for the Residential Tax Abatement Program; and WHEREAS, after a public hearing on April 12, 2021, the City Council of the City of Paris, Texas passed Resolution No. 2021-012 reauthorizing the city to become eligible to participate in residential tax abatements and approving guidelines and criteria for the program; and WHEREAS, Owner has submitted an application for a residential tax abatement related to its purchase and rehabilitation (the "Improvements") of the property located at 635 N.W. V1 St., commonly referred to as the Westgate Apartments (the "Property"); and WHEREAS, city staff has reviewed the application and the location of the above described improvements (hereinafter "Improvements") and has determined that the property is located within the boundaries of Reinvestment Zone 2020-1 and meets the requirements for Improvements set forth in guidelines and criteria as set forth in Resolution No. 2021-012; and WHEREAS, the Property has long been an a dilapidated condition and the Improvements proposed thereto will have a significant impact on the surrounding neighborhood and on West Paris in general thus justifying an upward deviation from the guidelines and criteria; and WHEREAS, furthermore, the restoration of the Property will help to alleviate a housing shortage within the city; NOW, THEREFORE, in consideration of the terms and conditions referenced herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City, and Owner (collectively referred to as "Parties") hereby mutually agree as follows: 1 I. Term A. Term 4.1 The Effective Date of this Agreement is May 9, 2022. The five (5) year abatement period set forth herein shall commence on January 1, 2024, the year following City's issuance of a Certificate of Completion. This Agreement shall terminate upon the expiration of the abatement period on May 8, 2029 unless otherwise terminated by default or agreement of the Parties. II. The Property—Area to be Improved 2.1 The Improvements defined in paragraph III below and made the subject of this Agreement shall be located on the Properties located in Paris, Lamar County, Texas more fully described in Exhibit 1 attached hereto and incorporated herein by reference, which Property is within Reinvestment Zone No. 2020-1 and within the area set forth in the Program: • Martin St. Addition Block A, Lots 1-20, located at 635 NW 7t' St., Paris, Texas, LCAD #12932, as more fully set forth in Exhibit 1 hereto, which is incorporated by reference as if fully set forth herein. III. Consideration --Improvements 3.1 The Improvements to be completed consist of the rehabilitation of the dilapidated apartment complex located on the Property comprising twenty (20) separate structures, said Improvements to include: • Remodel of existing apartment project with new kitchens, flooring, drywall, mechanical, plumbing, electrical, and roof. 3.2 The total minimum investment in the Improvements shall be ONE MILLION EIGHT HUNDRED THOUSAND NO/100 DOLLARS ($1,800,000.00). 3.3 Owner shall obtain City approval for all necessary platting (if required) and plans, building permits, green tags, and a Certificate of Completion from the City of Paris. 3.4 Owner shall allow city inspectors access to the Property and Improvements throughout construction and completion of Improvements. 3.5 Owner agrees and covenants that it will diligently and faithfully construct the Improvements referenced herein in a good and workmanlike manner within twelve (12) months of the Effective Date of this Agreement. Owner further covenants and agrees that construction of the Improvements will be in accordance with all applicable state and local laws, codes, and 2 regulations or Owner will procure a valid waiver or variance thereof. 3.6 Owner shall contact City Building Official for final inspection once Improvements are completed and obtain a Certificate of Completion for the Property. 3.7 Owner may not use the parcels described in Section 2.1 and conveyed to Owner pursuant to the terms of this Agreement for any other purpose other than to construct the Improvements set forth in this Article. Use of any parcel for any other purpose than residential dwelling units shall constitute a separate act of default of the Agreement and will trigger the default provisions and remedies set forth hereunder. IV. Tax Abatement A. The Abatement 4.1 Subject to the terms and conditions of this Agreement, and in further consideration for the construction and completion of the Improvements required herein and subject to the rights and holders of any outstanding bonds of the City, a portion of the ad valorem property taxes assessed upon the Improvements and otherwise owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per year of the taxes assessed upon the increased value of the Improvements made by Owner to the Properties described in Section 2.1 of this Agreement, over the value in the year by which this agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and all applicable state and local regulations or valid waivers thereof; provided that the Owner shall have the right to protest or contest any assessment of the Properties and said abatement shall be applied to the amount of taxes finally determined to be due as a result of any such protest or contest. For the purposes of this Agreement, the Base Value of the existing real property shall be deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of January 1, 2022. 4.3 This abatement is granted in accordance with the City's Guidelines and Criteria for the Program, a copy of which is attached hereto as Exhibit 2 provided, however, in the event of any conflict between this Agreement and the Guidelines and Criteria for the Program attached hereto as Exhibit 2, this Agreement shall control. B. Default 4.5 If (a) the Improvements for which an abatement has been granted are not completed in accordance with this Agreement (within twelve (12) months of the effective date hereof); or (b) Owner allows its taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for protest or contest of any such; or (c) Owner materially breaches any of the other terms, provisions or conditions of this Agreement, then Owner shall be considered in default of this Agreement. In the event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give Owner written notice of such default and if Owner has not cured such default within sixty (60) days of said written notice, this Tax Abatement Agreement may be terminated by the City. Notice of default shall be given in accordance with 3 Article V of this Agreement. 4.6 As damages in the event of default, and in accordance with the requirements of Section 312.205(a)(4) of the Tax Code of the State of Texas, all taxes which otherwise would have been paid to the City without the benefit of abatement, including taxes on those dwelling units constructed and completed according to the terms of this Agreement, together with interest to be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties permitted by the Property Redevelopment and Tax Abatement Act and the Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall be due, owing, and paid to the City within sixty (60) days of the expiration of the above-mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful offsets, settlements, deductions, or credits to which Owner may be entitled. V. Additional Terms A. No Conflict of Interest. 5.1 The Owner represents and warrants that neither the Properties nor the Improvements include any real or personal property that is owned or leased by a member of the Paris City Council or the Planning and Zoning Commission or any member thereof having responsibility for approval of this Agreement. S. Conditions. 5.2 The terms and conditions of this Agreement are binding upon the parties hereto and their successors and assigns. 5.3 It is understood and agreed between the parties that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibility or liability in connection therewith to third parties; and Owner agrees to release, indemnify and hold the City its elected officials, officers, employees and attorneys harmless from any claims, lawsuits, damages, costs or attorney's fees related to this Agreement. It is farther understood and agreed among the parties that the City, in performing its obligations hereunder, is acting independently, and the Owner assumes no responsibility or liability in connection therewith to third parties and, to the extent permissible by law, the City agrees to indemnify and hold harmless the Owner therefrom. C. Compliance Provisions 5.4 The Owner agrees that the City, its agents and employees, shall have reasonable right of access to any and all records concerning Owner's investment in the Improvements for the purpose of conducting an audit of the residential Improvements. Any such audit shall be made only after giving the Owner notice at least fourteen (14) days in advance and will be conducted in such a manner as to not unreasonably interfere with Owner's property. Upon request, the Owner will provide the City with a detailed list of all Improvements, including a 4 list of materials used and cost thereof. 5.5 The Owner further agrees that the City, its agents and employees, shall have reasonable right of access to the Property to inspect the Improvements in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations or valid waiver thereof. After completion of the Improvements, the City shall have the right to enter the Property and conduct an inspection of the completed Improvements. D. Initial and Annual Reporting. 5.6 The Owner further agrees that it will, within thirty (30) days of completion of the Improvements and issuance of a Certificate of Completion by the City, provide the CITY with a sworn report, written on Owner's letterhead and signed by a designated representative of Owner, which contains the following information: (a) A copy of the printout from the Lamar County Appraisal District showing the market value of the Property prior to the construction of the Improvements; (b) Detailed description of the Improvements; (c) A copy of or identification of plans and specifications of constructed improvements and the location of the same for inspection by City's Building Official; (d) The actual cost of the specific capital Improvements; and, (e) The date of substantial completion of the specific Improvements as defined in paragraph 2.1 hereof; and (f) Receipts showing that the purchase of building materials and fixtures from for the construction were made from vendors within the City of Paris, when possible. 5.7 Owner further agrees that it will provide City with an annual, sworn report which shall certify, in writing, that it is in compliance with each applicable term of this Agreement. Such annual report shall be furnished on the forms provided by the City and shall be due on each yearly anniversary of the Initial Report required by Section 5.6. 5.8 Owner recognizes that these reporting requirements are material conditions of this Agreement, and a failure to submit such reports when due will constitute a breach hereof. E. Authority to Contract. 5.9. This Agreement was authorized by resolution of the City Council at its regularly scheduled meeting on the 9a` day of May 2022, which further authorized the City Manager to execute the Agreement on behalf of the City. 5. 10 This Agreement was entered into by Owner pursuant to the authority granted to the authorized official whose signature appears below. 5.11. This Agreement shall constitute a valid and binding Agreement between the City and Owner when executed in accordance herewith, regardless of whether any other taxing unit executes a similar agreement for tax abatement. F. Legal. 5.12 No officer, official or agent of the City has the power to amend, modify or alter this Agreement or waive any of its conditions or to bind the City by making any promise or representation not contained herein. 5.13 This Agreement, except by operation of law, shall not be assigned or transferred by Builder, without the prior written consent of City, which consent shall be at the sole discretion of the City. 5.14 Any written notice required or permitted under the terms of this Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the United States mail, addressed to the designated representative of the respective parties which are designated as follows: BUILDER: We're Going to Paris, LLC Attn: Seth Bame 6060 N. Central Expressway Ste. 770 Dallas, Texas 75206 CITY: CITY OF PARIS, TEXAS Attn: City Manager P. O. Box 9037 Paris, TX 75461-9037 With a com to: City Clerk, City of Paris, Texas (Address same as above) 5.15 If any term or provision of this Agreement shall be declared unconstitutional or void by any court of competent jurisdiction, the constitutionality and validity of the remainder of said Agreement shall not be affected thereby, and to this end the terms and provisions of this Agreement are declared to be severable. 5.16 This Agreement sets forth the entire understanding between the parties, and any other understandings or agreements shall be canceled and superseded by this Agreement upon 6 the date of execution hereof. None of the terms of this Agreement shall be waived, discharged, altered or modified in any respect, except by an Agreement in writing signed by both parties and specifically referring to this Agreement. The captions in this Agreement are included for convenience only and shall not be taken into consideration in any construction or interpretation of this Agreement or any of its provisions. This Agreement is performable in Lamar County, Texas, and shall be governed by, construed and enforced in accordance with the laws of the State of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the City, Owner, and their respective successors, and permitted assigns, if any. 5.17 Venue for any actions arising under this Agreement shall lie exclusively in the courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for the Eastern District of Texas for any federal court action. WITNESS our hands this day of , 2022. ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney THE CITY OF PARIS, TEXAS LI -A Grayson Path, City Manager We're Going to Paris, LLC By: _ ................. Seth Bame ...�r......� ....................�........__ (Title) 7 BEFORE ME, the undersigned authority, on this day personally appeared Grayson Path, City Manager of the City of Paris, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of May, 2022. Notary Public, State of Texas BEFORE ME, the undersigned authority, on this day personally appeared Seth Bame, of We're Going to Paris, LLC, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _ day of May, 2022. Notary Public, State of Texas LAMAR TEXAS LEGAL DESCRIPTION: BEING AN 7.936 ACRE TRACT OF LAND SITUATED IN THE ASA JARMAN SURVEY, ABSTRACT NO. 479, LAMAR COUNTY, TEXAS, AND BEING ALL OF MARTIN BLOCK ADDITION, BLOCK A, LOTS 1-20, AS RECORDED IN ENVELOPE 439-B, OFFICIAL PUBLIC RECORDS, LAMAR COUNTY, TEXAS. SAID 7.936 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING AT A 1/2" IRON ROD (N: 7302105.79, E: 2861328.28) FOUND FOR THE WEST -MOST NORTHWEST CORNER OF SAID 7.936 ACRE TRACT. THENCE N 34039'02" E, A DISTANCE OF 88.79 FEET TO A 1/2" IRON ROD FOUND FOR THE NORTH -MOST NORTHWEST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND PK NAIL BEARS N 34055'32" E, A DISTANCE OF 12.48 FEET (TIE); THENCE N 88048'18" E, A DISTANCE OF 559.18 FEET TO A 1" IRON ROD FOUND FOR THE NORTHEAST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND "X" IN CONCRETE BEARS N 27045'57" E, A DISTANCE OF 5.72 FEET (TIE); THENCE S 02041'10" E, A DISTANCE OF 564.56 FEET TO A 1/2" CAPPED IRON ROD "POGUE ENG&DEV" FOUND FOR THE SOUTHEAST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND 3/8" IRON ROD BEARS N 40036'32" W, A DISTANCE OF 4.96 FEET (TIE); THENCE S 88045'12" W, A DISTANCE OF 619.08 FEET TO A 1/2" CAPPED IRON ROD STAMPED "TRANSGLOBAL SERVICE" SET FOR THE SOUTHWEST CORNER OF SAID 7.936 ACRE TRACT FROM WHICH A FOUND 1" IRON ROD BEARS N 02012'01" E, A DISTANCE OF 7.99 FEET (TIE); THENCE N 01 059'00" W, A DISTANCE OF 493.00 FEET TO THE POINT OF BEGINNING, CONTAINING 7.936 ACRES OR 345.707 SQUARE FEET OF LAND, MORE OR LESS. 1 A45( j A o I IN F/ 011, oold VMEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their intent to participate in abatement agreements and to adopt guidelines and criteria for granting tax abatements; and WHEREAS, on October 14 ,2013 in Ordinance No. 2013-036, the City Council designated P' rt; Zone No. 2013-1 for residential tax abatements; and WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also approved Resolution No. 2013-036 electing to be eligible to participate in a residential tax abatement program and approving Guidelines and Criteria for Residential Tax Abatement Program as required by statute, and WHEREAS, on February 9, 2015, the City Council. -passed Ordinance No. 2015-002 amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to include all Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No. 2015-1; and WHEREAS, on January 9, 2017, the City Council approved Resoulution 2017-001 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criterial for the residential tax abatement program; and WHEREAS, on April 22, 2019, the City Council approved Resoulution 2019-013 re- authorizing the City to become eligible to participate in residential tax abatements and approving guidelines and criteria] for the residential tax abatement program; and VMEREAS, in 2021, City Council re -authorized Reinvestment zone 2015-01 and renamed it Reinvestment Zone No. 2020-1; and WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax abatements are effective for two years from the date adopted; and WHEREAS, the City Council continues to desire to participate in a residential tax abatement program in the City of Paris and has been presented Guidelines and Criteria for a Residential Tax Abatement Program; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. The City hereby elects to be eligible to participate in a residential tax abatement program and adopts the Guidelines and Criteria for Residential Tax Abatement Program attached hereto and incorporated herein as Exhibit "A". Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 12th day of April, 2021. APPROVED AS TO FORM. Steph ° nie H. Harris, City Attorney Steven Clifford, G.D., Mayor RESIDENTIAL TAX ABATEMENT PROGRAM GUIDELINES AND CRITERIA CITY OF PARIS, TEXAS APRIL 12, 2021 I. GENERAL PURPOSE ANDM OBJECTIVES The City of Paris will offer residential tax abatement as a stimulus for economic development in designated reinvestment zones located within the corporate city limits of the City of Paris, Texas. The policy of the City is to grant residential tax abatement for new residential structures and modernization, rehabilitation or expansion of existing residential structures that meet minimum investment threshold and comply with these Guidelines and Criteria. All applicants shall be considered on a case-by-case basis. II. DEFINITIONm OF TERMS, Act -means the Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq., as amended from time to time. Agreement -means a contractual agreement between an applicant and the City of Paris for the purposes of tax abatement. Applicant -means an owner of real property or his authorized agent located in a reinvestment zone or proposed reinvestment zone who requests tax abatement in accordance with these guidelines. Base Year Value — means the assessed value of eligible property on January 1, preceding the date of execution. Eligible Property - means new structure or residential improvements located in a designated Reinvestment Zone. Modernization -- means the replacement, expansion and/or upgrading of single-family residential improvements for the purpose of reconditioning, refurbishing or expanding a single-family residence. New Structure - means residential improvements made to a property previously undeveloped which is placed into use by means other than or in conjunction with expansion or modernization. Reinvestment Zone - means an area designated in accordance with the Act by the City of Paris. Only property in a Reinvestment Zone may be eligible for tax abatement. Residential Improvements - means the construction of new single-family residential structures and all the appurtenances thereto, and includes modernization of existing structures. This term does not include duplexes or multi -family structures. Total Facility - means all improvements constructed. Page i of 5 ... - , ip, fjt�q - 11(M-9$--fj-4-qVniTA4-�j4 110, WA U i law's pra 11radmil Pig ty" 110)VI w-1 9 PJ61 I 1 04 JUMMAM OM Ki"i '441 1 iQ,a ., 99 WNW.. NNIMIN INIMM61114, '04 #10 1 'ill I Olp "111M.MHOW Bill] M IWOM, ON, TAX.XEA.R ABATEMENT* 1 100% 2 100% 3 80% 4 60% 5 40% 6 Zero% *Abatement is applied only to the increased value of the residential improvements that exceeds the base year value as determined by the Lamar County Appraisal District. Applications for residential tax abatement shall be reviewed for completeness. City staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional information or focuments from Applicant. City Staff will make final recommendations on each application to City Council. Any person, partnership, organization, corporation or other entity desiring a residential tax abatement to encourage development within a designated Reinvestment Zone shall comply with the following procedural guidelines. All tax abatement applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria. Preliminary Application Steps A. Applicant or applicant's agent shall submit an "Application for Residential Tax Abatement" contemporaneously with the application for a building permit. If the building permit is for new single family residential construction or expansion or U�� remodeling of a single-family residential structure in an amount that would make the owner eligible for residential tax abatement, then staff will provide applicant with a form application for residential tax abatement. If the applicant for the building permit is not the owner of the real estate and does not make application for residential tax abatement on behalf of the owner, the city staff shall notify the owner (according to Lamar County Appraisal District records) by certified mail, return receipt requested, that residential tax abatement must be filed with the City within ten (10) business days of receipt of the notice. B. If applicant chooses not to apply for residential tax abatement at the time that the building permit is issued, or if the owner fails to respond to the written notice of availability for residential tax abatement, the opportunity for residential tax abatement is waived. City staff shall make a record to reflect owner's election not to participate in the program or to document that owner did not respond to City's notice of opportunity to participate in the residential tax abatement program. The refusal or waiver to participate in residential tax abatement by the owner or applicant shall be binding on subsequent owners of the real property. C. A complete legal description shall be provided. D. Applicant shall complete all forms and information detailed above and submit all forms to the City of Paris Building Official. 2. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. If necessary, applicant will meet with City staff to discuss details of the application and to prepare presentation of the application to the City Council. The application shall designate whether the structure is new or an existing structure and provide an estimate of the value of improvements. 4. If Application for residential tax abatement is approved by staff, Applicant must enter into a tax abatement agreement with the City of Paris and as prepared by the City Attorney. 5. If the Applicant's property is not located within a designated reinvestment zone the application will be rejected and returned to Applicant. 6. The City Council reserves the right to amend the boundaries of a reinvestment zone or to designate new reinvestment zones. 7. The City Council reserves the right to amend these policies and guidelines as needed. VI. LEGAL DOCUMENTATION PREPARATION The City Attorney will be responsible for drafting the Residential Tax Abatement Agreement in accordance with state law and these Guidelines and Criteria. The legal document will include the following: 1. Estimated value of new structure or residential improvements to be constructed. 2. Percent of value to be abated each year. Effective date and the termination date of abatement. 4. Description of the Improvements, schedule of completion, property description and/or site plan. 5. Applicant agrees to make the new structure or residential improvements available for inspection by City of Paris, or its authorized representatives, and Lamar County Appraisal District during construction and upon completion of the project. 6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture and administration. Page 4 of 5 Item No. 13 M'emo�r�andum TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Program Update Presentation on 5 In 5 Housing Infill Development Program DATE: May 9, 2022 BACKGROUND & DISCUSSION In January of this year the City Council adopted the 5 In 5 Housing Infill Development Program Guidelines. At the same time the first agreement was approved for Mr. Marc McKinney to construct 7 single family residences. Immediately following that adoption 2 weeks later, the City Council, Lamar County Board, Paris ISD School Board, and the Paris Junior College Board all approved an Interlocal Agreement authorizing the City of Paris to serve in the capacity of Trustee Administrator for the assignment of all tax foreclosure sales and assignment of tax deeds under the 5 In 5 Program. As of that date in time, staff worked with numerous builders interested in learning more about the new home building incentive program and received pre -applications reserving a first-come first -serve position on the lots eligible for tax foreclosure. In February the first tax sale was held, but involved approximately two dozen parcels that were not on the pre - application list, with the exception of 1 lot for Habitat for Humanity. Roughly 2/3rds of the lots sold on the open bid list meaning that all 4 tax entities received back tax payments and liens as required in the minimum opening bid requirement. This was a complete reversal of the past tax sales which resulted in no tax foreclosures being purchased as experienced over the past 2 years. The next tax foreclosure sale by the City's Tax Attorney was initially planned April, but due to software issue with the Lamar County Appraisal District (LCAD) and other factors involving the Lamar County Tax Attorney, the next foreclosure sale is not planned until July 5, 2022. As a result the 70 parcels cannot proceed on 1 sale, but rather will take 2-3 months before the pre -application list can be brought to tax foreclosure sale. In the meantime, the City has the ability to continue working with builders/investors in lots they own and have control over so as to enter the 5 In 5 Program. The 2" d approval by the City Council was for Shane Brown and 3 duplexes. Tonight the council approves 7 duplexes for Ronny Enns. Approved and pending 5 In 5 Agreements in the works at this time are as follows: Page 1 of 2 Recommendation Presentation only. No Action Required. Page 2 of 2 mmt Name Street Dwellings Type Residence ACroval Start Date No 1 McKinney Fitzhugh/lOth 7 Single Family 1/5/22 May 2022 NE e... Brown SE 6 2 22 3 nn lOt St.... 4 .— ....... Duplex 5/9/22 Ju22 June 20 ... NE/W. May 2023 Henderson & 4 Habitat 4 . --- Polk St. ........ ......._. 1+4 Single Family 5/23/22 ........ .. June 2022 Humanity NE/8th St. tentative NE 5 -- Skylar ------- -- -. 4th St. SW _ -- 9 Apartment 6/13/22 July 2022 Burchinal tentative 6 .............. ........... Austin ..................................................... 1 stNW/ ............................. 5 Single .............. TBD .................................. ----------------- TBD Sugg Brame SW/ Family/Duplex 4th St. SW _Tot---- _.... , - - -- ....... .-- 1 46 -__- --- ..... --- .... ............. -- Recommendation Presentation only. No Action Required. Page 2 of 2 Item No. 14 Memorandum TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development Robert Talley, Code Enforcement Supervisor Cheri Bedford, Historic Preservation Officer/Main Street Coordinator SUBJECT: Quarterly Update on Status of Downtown Paris Vacant Building Registration DATE: May 9, 2022 BACKGROUND & DISCUSSION The following information is a brief summary overview of the City's Downtown Vacant Building Registration Program. A more detailed PowerPoint presentation will be at the Council Meeting. 1. The HP -1 Historic District Vacant Building Registry Ordinance was adopted on April 23, 2018. 2. There are a total of 197 parcels in Downtown Paris. 3. In 2021 there were approximately 38 properties on the list of vacant structures, or approximately 22% of the total buildings in Downtown Paris. 4. In 2022 there were 44 properties on the list of vacant structures, or approximately 22% of the total buildings in Downtown Paris. 5. The reason for changes in the number of vacant buildings between 2020 and 2021 is due to a number of factors including: a. More detailed input of data (including the addition of placement of for -sale properties and properties receiving fee waivers on the list). b. Enhanced organization in the program as a result of administrative changes by providing a staff team approach. c. Multiple ownership changes. 6. February 1, 2022 letters were sent out to all property owners of vacant structures requiring annual registration under the ordinance. 7. Follow up to the mailings has included direct verbal contact with approximately 43% of vacant building owners to date. The CD Director added this step in 2022 as a positive outreach effort. The reason for these conversations was due to there being a very small percentage of vacant building owners voluntarily willing to contact staff to discuss their requirements to register and explore options for building improvements. A meeting with the owner of 7 other properties were scheduled the week of this report writing. 8. Property owner responses to staff contact have been mixed. They include the following: a. Voluntary compliance. Page 1 of 2 b. Understanding the reasons for the regulations. c. Asking questions about planned renovations. d. Fee waivers. e. Questions or uncertainty of code requirements. f. Putting their properties up for sale. g. Expressed concern of the ordinance need as a result of being required to comply, and suggesting it be repealed. 9. As of the date of this report, a total of 3 properties have paid their registrations. There are 15 pending properties pending receipt for registration. 10. The 2" d round of registration enforcement letters are tentatively scheduled to go out in the next month or so. 11. Full compliance with registrations may be anticipated by summer of this year following the mailing of code compliance enforcement letters. 12. Staff recommends that further consideration and guidance should be given by City Council to further incentivizing renovations of buildings as recommend to the Council by the Main Street Advisory Board and HPC. Summa No action by Council is required. A quarterly report will be produced moving forward for the Council. Further refinements to the administrative procedures are anticipated for the next round of the vacant building registration program for 2023. This will include the following measures: • Expansion into all historic districts and vacant residential structures. • Enhanced communication measures with vacant building owners. • Closer examination of the funding incentives for encouraging vacant building renovations. • A more accurate inventory and accounting of vacant building properties in relation to the new quarterly reporting program for the City Council. Page 2 of 2 Item No. 15 TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development James Hooten, Assistant Building Official Cheri Bedford, Historic Preservation Officer Robert Talley, Code Enforcement Supervisor SUBJECT: Rental Registration and Vacant House Registration for Residential Rentals in All Historic Overlay Districts DATE: May 5, 2022 BACKGROUND & DISCUSSION Over the past year staff has been undertaking a parallel project to the vacant residential registration requirements; and a new rental licensing program for every residential rental property in all Historic Districts. This initially developed in response to concerns that were brought to, staff's attention regarding neglect and other nuisances inside and around the yards of occupied rental properties and in the South Church Historic District 2. Accordingly, a project team was assembled including staff from the Community Development, Engineering, Fire and City Administration Departments. On March 9, 2022 the staff team made a presentation to the Historic Preservation Commission (HPC). The HPC sent a unanimous recommendation to the City Council for adoption of the ordinance changes and implementation of the new rental housing inspection program and vacant residential structure ordinance amendments. There were also several residents in attendance who spoke in support of the proposed changes to the Historic District Overlay regulations. Their primary reasons for support was to further protect and enhance the overall quality of residential properties located within all HPC Overlay Districts 1-16, including those added in the future. The attached draft ordinance provides for a licensed registration requirement, including inspection of the property every 2 years for all residential dwelling units in HPC 1-16. It also imposes limitations on how many people can occupy a dwelling based upon the square footage of sleeping quarters in a residential dwelling according to the 2022 International Property Maintenance Code (IPMC) which is also adopted for these regulations within the Historic Overlay District. It will not, however, apply to the entire City Limits at this time. Most importantly, it provides for the bare minimum life safeft requirements to be met as a part of the new bi-annual inspection program. Page 1 of 2 This will serve both our rental property owners and tenants in assuring the safety of the dwellings occupied in these historic district properties. An example has been attached with a standardized inspection checklist which shows all the items that an inspector will review and inspect for during each visit. Advanced appointments would be scheduled for rental properties with the landlord owners, or their representatives. The land owner would in turn notify all tenants in their rental properties in advance of each inspection date according to standard property tenant notification provisions under law. Staff has also worked to develop a list of potential rental properties within all the historic districts as a means for initiating the first rental licensing application procedures for rental properties. At total of 55- properties were identified in an initial study of potential rental properties within the district. An introductory letter would be mailed out upon approval of the new requirement once approved by the City Council. Again, this would apply only to the Historic Districts in the City and not for the entire City incorporated jurisdiction. This original draft code amendment was brought to the HPC for initial review and recommendation due to the role of the Commission in the historic districts of the City. Recommendation Approval of an Ordinance Amending the Rental Property Maintenance & Vacant Building Registrations for all Residential properties in the Historic Overlay Districts 1-16. Page 2 of 2 Date: Name: Address: Re: City of Paris Rental Property Licensing Registration Property Address & LCAD No: Dear Prospective Rental Licensing Landlord, On _, the Paris City Council, following recommendation from the Paris Historic Preservation Commission, adopted new rental and vacant property registration program registration requirements for all residential properties located in designated Historical Districts. The purpose of this new regulation is to ensure that rental housing units meet minimum safety and health standards by providing a system for ensuring that both absentee and local landlords correct deficiencies and properly maintain rental property within the city. This purpose will be achieved by providing a system of organized inspection of residential rental units in the City's Historic Districts by developing a system to monitor and inspect the orderly and safe occupancy of residential rental units in these areas. • Interior inspections will be conducted to ensure the property adheres to regulations designed to protect the safety and welfare of the tenants. Additional information is provided in the brochure. • Exterior inspections of the premises including the yard, building, storage buildings, and fences will be conducted on a biannual basis. Additional information is provided in the brochure. A non-refundable rental registration fee of $55.00 is assessed for each property and is due in April of every year. A statement for the rental registration fee will be mailed to you on the first of March or within 30 days of receiving an initial registration form if you register a property during the year. In an effort to keep rental property owners and tenants informed about changes to policy or procedure, or to provide specific inspection information about your property, we are asking owners to supply an email address on your application. Thank you for your review of these materials. For more information or questions on this rental registration, licensing and inspection program, please contact the Building Inspection Department at 903-784-9246. DCN -0000 (rev M/Y) 150 Se In ST PARIS, TX 75461 TELEPHONE (903) 785-7511 Page 1 of 1 U X c o v c •c a� +� c -a o L co onQ n g L Q B L- — O'. O .L Q 2 i ai r". fC IM . w dA O y O Q > O O (D AM ++ �p Y Il.o L H a) N o Q L 00 c •— 1,0 C 'n Q p...... „„w„ c N i c �a cc .— H a, � i T� .— -0 _ � �' C`) Y Y O GJ O 0 M O s41 41U t OD 0 Q rip M aJ .. -° w 0 3 C) U O M-19 c > +' ? N4 N U -aj t L M.. a) IM a! c�I p — OE 3 � O c. L 0 C to c co - c Y a'' c . o o O a+J' ++ cu CM X co tw 7 1 U a tCL 0 Ln D Q 0 c�° IM -° a) ° L o c W L0 41 c0 - Q - •� in o o Lo a� (1)+' o o ° CL • N -0 enoc — wW z z } > O. N LL U s ° i *' _ c �': Q V5 }� J c LO QJ v _ urip a) 4 f0 U 3 V) 0 3 w _ H z a, ++ Www _ n c v L'', a IM i CUD .— -111,111, •� X a% '' W .— N a) N O ..,. VM Q i aJ °: Im LO a) •� Yom v L ' ������ Q 0 .'"1���"", Q� .yt��u pQ c O I= L c v'C vi 4- N N w c (IJI q O Ln WM.. '(AO a — r � CL 4;w m aJ c I— a � O 3 a a a a ° 4° � 0 X +J 3 ++-a a, au o m c o 41,1111, L c 4� y i %n IA N O f0 H O G. CL E °.' -6 3 aj a..... X U Wto C) Q c f0 Q 'a +� H O mw O w y i e c m L41H _ ro 41 > 0 ar fD O o„ Q (D Y ° +, w H � H �� L 'CS a 8 c aJ _ V' m IV f0 O c 41 a) M L u .Q w v ° X x.11 O _ c c a = U L Q a E O L, M a o C7 H U > cc of z U X L n g L Q B L- .L 2 ai r". IM . w O O AM ++ L a) Q L c a, 4”' '' 3 H s41 t 0 Q M -° 4- c > +' ? N4 N -aj t M.. a) c�I P — O 3 Y c . o o a+J' cu CM .. a 0 Ln D Q 0 c�° IM -° a) ° L c L0 LU - in CL CL -0 — O *' _ �': Q V5 }� J c LO QJ v _ urip a) f0 U 3 0 3 w _ H z a, ++ Www _ n c v L'', a i a .— -111,111, •� X a% '' W .— N a) r Q' ..,. VM Q i aJ °: Im LO a) y= L Yom v L ' ������ Q 0 .'"1���"", Q� .yt��u - O I= vi �..m N w Q (IJI q O O WM.. a — r � CL 4;w _ � I— a � a 3 a a a a a° 0 X Rental Application Please complete the application form for each individual properties that is being used as rental property. There will be a $50.00 registration fee for each property address, fees are due by January 15 biannually. Inspections will be conducted for each property address biannually. PROPERTY ADDRESS: OWNERSHIP INFORMATION: INDIVIDUAL Y/N PROPERTY MANAGEMENT Y/N For Individual Ownership, please complete the following: Owner: Owner Phone: Owner Street Address Owner Email: Total # of single family rental properties you own in Paris: PROPERTY MANAGEMENT (if applicable): Management Company: Business Address: Business Phone: Agent Email: Total # of single family rental properties managed in Paris: Agent Name: City/State/Zip: _ Cell Phone: Business Email: I certify that I am representing the owner and I am listed above as the property owner's representative I certify that I am property owner I understand that rental properties are required to register biannually and to be inspected prior to a tenant change (before the tenant moves in). The $50.00 registration fee is due every two years by January 15. I understand that failing to comply with the Rental Registration and Inspection Program could result in fines and possibly issuance of citations. I certify that I am representing the owner and I am listed above as the property owner's representative. SIGNATURE: DATE: DCN -0000 (rev M/Y) 150 Se V ST PARIS, TX 75461 TELEPHONE (903) 785-7511 Page 1 of 1 Rental Inspection Checklist DATE TIME PROPERTY ADDRESS APARTMENT # TOTAL UNITS ON PROPERTY PROPERTY OWNER CITY/STATE/ZIP CODE_ EXTERIOR: ADDRESS VISIBLE ROOF IN GOOD REPAIR CHIMNEY GUTTERS & SOFFITS WINDOWS & DOORS TRASH & RUBBISH STEPS PAINT & SIDING FOUNDATION GAS METER PROTECTION/SHUT OFF LAWN & WEEDS FENCE DETACHED STRUCTURE CONSTRUCTION FEATURES FIRE SEPARATION GARAGE & STRUCTURE STRUCTURE ISSUES WALLS & CEILING CONDITIONS FIRE PROTECTION SMOKE DETECTORS EXIT FEATURES HANDRAILS WHERE REQUIRED GUARDRAILS ON DECKS ADEQUATE WINDOWS/EXITS EGRSS UNOBSTRUCTED HALLWAY LIGHTING OWNER ADDRESS PHONE NUMBER BEDROOM #1 EGRESS WINDOW5.7 sgft/DOOR SMOKE DETECTOR ROOM 70' SQ FT CEILING 7' # OF OUTLETS/LIGHTS GENERAL CONDITION SIZE MAX OCC BEDROOM #2 EGRESS WINDOW5.7 sgft/DOOR SMOKE DETECTOR ROOM 70' SQ FT CEILING 7' # OF OUTLETS/LIGHTS GENERAL CONDITION SIZEMAX OCC BEDROOM #3, EGRESS WINDOW5.7sgft/DOOR SMOKE DETECTOR ROOM 70' SQ FT CEILING 7' # OF OUTLETS/LIGHTS GENERAL CONDITION SIZE MAX OCC BATHROOM #1 VENTALATION WINDOW/FAN TOTAL OCCUPANTS KITCHEN GAS SHUT OFF IF GAS SINK PLUMBING FIXTURES GENERAL CONDITION GFCI WHERE REQUIRED OTHER ROOMS ROOM SQ FT # OUTLETS/LIGHTS FIREPLACE /WOOD STOVE SHUT OFF FOR GAS FIREPLACE GENERAL CONDITION BASEMENT/UTILITIES SMOKE DETECTORS STAIRS/HANDRAILS (34"-3811) FURNACE/WATER HEATER WASHER/DRYER ELECTRCIAL PANEL 30" GAS SHUT OFF APPLIANCES VENTS & FLUES ATTACHED ELECTRICAL WIRING/FIXTURES OUTLETS/JUNCTION BOXES GFCI WORKING PROPERLY PLUMBING WATER PRESSURE/LEAKS DCN -0000 (rev M/Y) 150 Se 111 ST PARIS, TX 75461 TELEPHONE (903) 785-7511 Page 1 of 2 EXIT HARDWARE/LOCKS FIRE RATED DOORS -ATTACHED GARAGE EXIT SIGNS/LIGHTS WHERE REQUIRED STEPVSTAIRS TREADS & RISERS MIN -MAX HALLWAYS 36" ENTRY/EXIT DOORS 36" LANDINGS 36" GUARDRAILS ON DECKS 30" TUB OR SHOWER PLUMBING FIXTURES TOILET SECURE & FLUSHES GFCI NEAR SINK GENRAL CONDITION BATHROOM #2 VENTALATION WINDOW/FAN TUB OR SHOWER PLUMBING FIXTURES TOILET SECURE & FLUSHES GFCI NEAR SINK GENRAL CONDITION PASS FAIL NEEDS REINSPECTION NO SHOW INSPECTOR SIGNATURE SANITATION/HEALTH HOUSEKEEPING/RODENTS MISCELLANEOUS STORAGE/GRILLS/OCCUPANCY EXTENSION CORDS OVER LOAD SUMP PUMP/DRAINAGE A/C HEAT WORKING PROPERLY CARBON MONOXIDE DETECTOR POINTS WILL BE ASSIGNED FOR EACH DEFICIENCY ENCOUNTERED AND SIX (6) POINTS OR MORE WILL REQUIRE REINSPECTION WITH A $40.00 FEE MISSING OR NON WORKING SMOKE DETECTOR= 2PTS MISSING OR NON WORKING CARBON MONOXIDE DETECTOR = 2PTS OVER OCCUPIED = 6PTS ANY OTHER VIOLATION -1PT NOTE: IF 2 OR MORE MISSING OR NON WORKING SMOKE ALARMS OR CARBON MONOXIDE DETECTORS A $40.00 RE -INSPECTION FEE WILL BE REQUIRED RENTAL INSPECTORS RESERVE THE RIGHT TO REQUIRE REINSPECTIONS FOR ANY UNIT THAT HAS SERIOUS VIOLATIONS COMMENTS USN -0000 (rev M/Y) 150 Se 1" ST PARIS, TX 75461 TELEPHONE (903) 785-7511 Page 2 of 2 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING CHAPTER 4, "BUILDING REGULATIONS," ARTICLE 4.02, "CONSTRUCTION CODES AND STANDARDS," ARTICLE 4.03, SECTION 4.03.004, "BUILDING AND STANDARDS COMMISSION ESTABLISHED; PROCEEDINGS; CIVIL PENALTIES," ARTICLE 4.04, "RESIDENTIAL RENTAL PROPERTY MAINTENANCE," ARTICLE 4.05, "VACANT BUILDINGS;" AND AMENDING APPENDIX A, "FEE SCHEDULE," OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council has previously adopted Chapter 4, "Building Regulations," Article 4.02, "Construction Codes and Standards," to the Code of Ordinances, by which the City the has adopted the 2015 International Building Code, the 2015 International Residential Code, the 2015 International Existing Building Code, the 2015 International Plumbing Code, the 2015 International Mechanical Code, and the 2014 National Electrical Code to provide for safe and orderly development of structures in the city; and WHEREAS, the City Council has previously adopted Chapter 4, Article 4.03.004, "Building and Standards Commision Established; Proceedings; Civil Penalties" to embue the Building and Standards Commission with certain powers, jurisdiction, and authority; and WHEREAS, the City Council has also previously adopted Chapter 4, Article 4.04, "Residential Rental Property Maintenance" to provide for a basic level of safety in residential rental properties throughout the city; and WHEREAS, the City Council has previously adopted Chapter 4, Article 4.05, "Vacant Buildings" to encourage development of precious building stock in the Downtown Historic Overlay District and to provide a basic level of safety for those buildings; and WHEREAS, the City Council has previously adopted Appendix A, "Fee Schedule," Section A3.004, "Registration of Vacant Building" to provide for a fee for maintaining a vacant building covered by Article 4.05; and WHEREAS, the City Council has identified a need for additional regulation of vacant buildings and residential rental properties in the city's historic overlay districts so as to better preserve the historic value of those structures as well as to maintain the historic character of those districts; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That Chapter 4, Article 4.02 of the Code of Ordinances of the City of Paris shall be amended by adding a new Division 9, "Property Maintenance Code," to read as set forth in full in Exhibit A which is attached hereto and incorporated by reference as if fully set forth. Section 3. That Chapter 4, Article 4.02, Section 4.03.004, "Building and Standards Commission Established; Proceedings; Civil Penalty," Subsection (e), "Authority of Commission; Civil Penaltly," shall be amended to add Subsection (3) (9) to read as follows: "Provide notice, conduct public hearings, and issue orders related to residential rental property maintenance as set forth in Article 4.04, Section 4.04.004." Section 4. That Chapter 4, Article 4.04, "Residential Rental Property Maintenance," of the Code of Ordinances of the City of Paris, Texas shall be renamed "Article 4.04 Residential Rentals and Property Maintenance," and shall be amended as set forth in in full in Exhibit B which is attached hereto and incorporated by reference as if fully set forth herein. Section 5. That Chapter 4, Article 4.OS, "Vacant Buildings," of the Code of Ordinances of the City of Paris, Texas shall be amended as set forth in full in Exhibit C which is attached hereto and incorporated by reference as if fully set forth herein. Section 6. That Appendix A, "Fee Schedule," Sec. A3.004, "Registration of Vacant Building," of the Code of Ordinances of the City of Paris, Texas shall be amended as set forth in full in Exhibit D which is attached hereto and incorporated by reference as if fully set forth herein. Section 7. That all provisions of the ordinances of the City of Paris, Texas in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Paris not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 8. That the repeal of any ordinance or part of ordinances affected by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any penalty accruing or to accrue, or as affecting any rights of the municipality under any section or provisions of any ordinance at the time of passage of this ordinance. Section 9. That it is the intention of the City Council of the City of Paris that this ordinance and every provision hereof, shall be considered severable, and the invalidity or partial invalidity of any section, clause, or provisions of this ordinance shall not affect the validity of any other portion of this ordinance. Section 10. That this ordinance shall become effective upon publication as required by law. PASSED AND ADOPTED this 9th day of May, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Item No. 16 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Janice Ellis, City Clerk SUBJECT: POLICIES AND PROCEDURES FOR BOARDS AND COMMISSIONS DATE: May 9, 2022 BACKGROUND: In 2008, Policies and Procedures for City Boards, Commissions, and Committees were established and subsequently revised in 2010 and 2017. STATUS OF ISSUE: As City Staff began reviewing the Policies & Procedures for the purpose of updating the document, it became clear that the City would be best served with a brand new Policies & Procedures due to the outdated language and new provisions adopted since 2017 by Resolutions and/or Ordinances. Specifically, the Paris Economic Development Corporation amended their Bylaws to add two additional members to their board and included Lamar County residents (Resolution No. 2020- 040). By Ordinance No. 2020-009, the City Council amended the membership and terms of the Band Commission to do away with term limits and to allow for residents of Lamar County to serve on the Commission. Significant changes were made to the Airport Advisory Board by Resolution No. 2022-016, which reduced the number of board members to three, outlined the duties of the board to purely advisory, and called for quarterly meetings. Other noted differences between the 2017 and new Policies & Procedures include the following: • The word "Committees" has been deleted from the title of the document because the City has boards and commissions set up under Local or State Law. Committees are appointed only for special purposes and for a specific time. The Boards/Commissions are outlined in the paragraph "Membership" under items 1 (generic policy) or item 2 (boards/commissions that have separate governing documents, with the citation included). • Attendance of 75 percent is defined as beginning July 1 of each year and ending June 30 of the subsequent year. • The staff liaison shall have authority to call a meeting of the board or commission. • Training shall be completed within 90 days of taking the oath of office. Failure to complete such training within the designated time period may result in removal. BUDGET: N/A RECOMMENDATION: Oition 1: Approve a Resolution repealing prior approved Policies and Procedures for City Boards and Commissions and approving the attached new Policies and Procedures for Boards and Commissions. Option 2: Review and make additional changes to the new Policies and Procedures for Boards and Commissions. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS REPEALING THE POLICIES AND PROCEDURES FOR BOARDS AND COMMISSIONS; APPROVING NEW POLICIES AND PROCEDURES FOR BOARDS AND COMMISSIONS; MAKING OTHER FINDINGS RELATED TO THE SUBJECT AND DECLARING AN EFFECTIVE DATE. WHEREAS, in 2008, the City Council adopted Policies and Procedures for City Boards, Commissions, and Committees ("Policies") which it subsequently revised in 2010 and 2017; and WHEREAS, the city would be best served by repealing the existing Policies and replacing same with new policies that better reflect current circumstances; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. The findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City Council hereby repeals the Policies and Procedures for Boards and Commissions last revised in 2017 and hereby adopts the Policies and Procedures (revised 05/2022) attached hereto as and incorporated herein by reference. Section 3. This resolution shall become effective from and after the date of passage. PASSED AND APPROVED this 9th day of May, 2022. Paula Portugal, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney POLICIES AND PROCEDURES FOR BOARDS AND COMMISSIONS MEMBERSHIP 1. The following Boards and Commissions shall have seven (7) members: a. Planning and Zoning Commission b. Library Advisory Board c. Main Street Advisory Board d. Traffic Commission 2. The following Boards and Commissions have separate governing documents that set membership, qualifications, selection process, criteria, etc. For details, please reference the following documents: a. Paris Economic Development Corporation b. Civil Service Commission c. Zoning Board of Adjustment d. Band Commission e. Airport Advisory Board f. Paris Housing Authority g. Historic Preservation Commission h. Buildings and Standards Commission Resolution 2020-040 Texas LGC Chapter 143 City of Paris Ch. 9, Exhibit B, Section 16 City of Paris Ch. 2, Art. 2.11 Resolution 2022-016 Texas LGC Chapter 392 City of Paris Ch. 9, Art, 9.05 City of Paris Ch. 4, Sec. 4.03.004 3. Except as otherwise stated in a separate applicable governing document, all members appointed shall serve "at -will" by the City Council. 4. Boards and Commissions may include at least one (1) City Council Member liaison appointed by a majority vote of the City Council, except for the Paris Housing Authority (Reference: Texas Attorney General Opinion KP -006). 5. Boards and Commissions may include at least one (1) City Staff liaison appointed by the City Manager. QUALIFICATIONS 1. Except as otherwise stated in a separate applicable governing document, qualifications for appointment and service on a City Board and Commission shall include: a. No delinquent indebtedness to the city. b. No family relationship within the second degree by affinity (marriage) or within the third degree by consanguinity (blood) to any member of the city council or to the city manager. c. No conflict between the appointee's private interests and duties and their interests and duties as a committee member. d. Attendance at a minimum of 75 percent of all regular meetings beginning July 1 of each year and ending June 30 of the subsequent year. City of Paris Board and Commission Policies Revised 05/09/2022 P ' mA 0u, m� u 2. Appointees shall take an oath of office prescribed by the City Council prior to taking office. 3. Except as otherwise stated in a separate applicable governing document, all applicants and appointees must be qualified voters of the City of Paris, or of Lamar County if the Board or Commission membership allows for residents in the county. Any other qualifications mandated by State law shall apply. APPOINTMENT 1. Appointments shall be made at the second regular city council meeting in June or as soon thereafter as practical, unless necessary to fill a vacancy. 2. Applications shall be made available to persons interested in serving on a Board or Commission. City staff shall post notice and advertise Board and Commission vacancies. The City Clerk or his or her designee shall collect and review each application for completeness and eligibility. 3. The City Council shall select from the entire slate of eligible nominees. TERMS Except as otherwise stated in a separate applicable governing document, the following shall govern appointment terms. 1. Each appointment shall be for three -years with appointees limited to a maximum of two (2) consecutive full three (3) year terms on the same Board or Commission. 2. If an appointee has prior consecutive service as the result of filling a vacancy, or service on another Board or Commission, prior service shall not be included in the count. 3. Appointees shall be limited to service on no more than one standing Board or Commission. Appointees are not prohibited from serving on additional ad hoc committees or standing boards, commissions, or committees that are purely advisory. 4. Appointees to vacant positions will serve the remainder of their predecessors' unexpired term. REMOVAL Except as otherwise stated in a separate applicable governing document, members may be removed by an affirmative majority vote of a quorum of the City Council. OFFICERS Except as otherwise stated in a separate applicable governing document, the following shall apply for the selection of officers. 1. Officers of each Board and Commission shall include a Chair and Vice -chair. City of Paris Board and Commission Policies Revised 05/09/2022 2. The duties of the chair include calling and presiding over meetings of the Board or Commission 3. The duties of the Vice -Chair shall be to serve as Chair in the absence or disability of the Chair. 4. Officers shall be elected by the membership of the body at their first meeting after the City Council appointment of Board and Commission members. 5. The term of office for officers shall be from July I" of each year and ending June 30"' of the subsequent year. 6. No officer shall serve more than two full consecutive terms in a single position. 7. Officers may be removed from their office, but not from the Board or Commission, by a simple affirmative majority vote of a quorum of the Board or Commission. MEETINGS Except as otherwise stated in a separate applicable governing document, the following shall govern meetings of the Boards and Commissions. 1, Each Board and Commission shall meet at least quarterly, and more frequently as the Board or Commission shall deem necessary, and at a time and location determined by the Board or Commission. 2. The staff liaison shall have authority to calla meeting of the Board or Commission. 3. Meetings shall be posted at the City Hall Annex Building, and on the City's website, and the newspaper of record shall be sent notice of the meeting at the time of posting, I . Appointments to all. Boards and Commission are contingent upon attending a workshop covering Ethics, the Public Information Act, and the Open Meetings Act, which must all be completed within 90 days of taking the oath of office. Failure to complete such training within the designated time period may result in removal, 2. The City Manager or his or her designee shall conduct a training workshop on Board and Commission duties and responsibilities, after appointments are made or as soon thereafter as practical. 3. Appointees shall be required, at the City's expense, to complete any additional training(s) required by any governing statutes, regulations, ordinances, or resolutions. City of Paris Board and Commission Policies Revised 05/09/2022