Agenda PacketCITY 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, January 13, 2025. The meeting will be held at the City Council
Chamber, 107 E. Kaufman Street, in Paris, Texas. One or all Council Members may be
attending remotely, but the feed will be available for live viewing at
http:// ariste_ xas.goy/ ublic. The matters to be discussed and acted upon are as follows:
Opening Agenda
1. Call meeting to order.
2. Invocation.
3. United States Pledge of Allegiance & Texas Pledge of Allegiance.
4. 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 meetings of December 9, 2024 & December 30, 2024.
6. Receive reports and/or minutes from the following boards and commissions:
a. Paris Economic Development Corporation (10-15-2024)
b. Main Street Advisory Board (11-12-2024)
c. Historic Preservation Commission (11-13-2024 & 11-25-2024)
d. Paris Public Library Advisory Board (10-16-2024)
e. Traffic Commission (10-1-2024)
f. Board of Adjustment (11-5-2024)
g. Tax Increment Zone "TIRZ" (11-14-2024)
7. Approve a Resolution renaming the building (City Hall Annex) located at 150 1" Street
Southeast the Gene Anderson Annex Building.
8. Approve the City of Paris 2025 Investment Policy.
9. Receive the Annual Comprehensive Financial Report (ACFR) Fiscal Year ending 9-30-23.
10. Approve a Professional Services Agreement in the amount of $33,930.00 with Hayter
Engineering for services related to the Belford Building Park Lot Design; and authorize the
Interim City Manager to execute all necessary documents.
Regular Agenda
11. Discuss and act on an Ordinance amending the Traffic Control Map adopted in Section
11.02.005 of the Code of Ordinances of the City of Paris, Texas, adding stop signs on West
Washington Street at its intersection with 41h S. W. Street stopping East and West -Bound
traffic on West Washington.
12. Discuss, accept the bid, and approve an Agreement with Pridemore Construction, LLC to
perform structural demolition services in the amount of $54.00 per ton, with the contract
term of three years; and authorize the Interim City Manager to execute all necessary
documents.
13. Discuss and act on adopting a fine free policy (retroactive) at the Paris Public Library.
14. Discuss and act on a Resolution approving and authorizing an Economic Development
Agreement by and between the City of Paris and AUDAX Enterprises.
15. Discuss and act on a Resolution amending the Guidelines and Criteria of the 5 In 5 Housing
Infill Development Program.
16. Consider and approve future events for City Council and/or City Staff pursuant to
Resolution No. 2004-081.
17. 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 January 10,
2025.
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@paristexas.gov for assistance.
Item No. 5
MINUTES OF THE REGULAR CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
December 9, 2024
The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday,
December 9, 2024, at the City Council Chamber, 107 E. Kaufman, Paris, Texas.
Present: Mayor: Mihir Pankaj
Mayor Pro -Tem: Gary Savage
Council Members: Mickey Ellis, Rebecca Norment, Alix Putnam, and
Rudy Kessel
City Staff: Rob Vine, Interim City Manager; Stephanie Harris,
City Attorney; Janice Ellis, City Clerk; Gene
Anderson, Finance Director; Rich Salter, Police
Chief, M.A. Smith, Public Works Director; Osei
Amo-Mensah, City Planner; Thomas McMonagle,
Fire Chief, Todd Mittge, City Engineer; Danny
Rowell, Interim Utilities Director; and Clyde
Crews, Fire Marshal
Absent: Council Members: Shatara Moore
Opening Agenda
1. Call meeting to order.
Mayor Pankaj called the meeting to order at 5:00 p.m.
2. Invocation.
Finance Director Gene Anderson gave the invocation.
3. United States Pledge of Allegiance & Texas Pledge of Allegiance.
City Council led the United States Pledge of Allegiance and the Texas Pledge of
Allegiance.
4. Citizens' Forum.
No one spoke during citizens' forum.
Consent A Benda
Mayor Pankaj inquired of Council Members if they wished to pull any items from the
consent agenda for discussion. There being none, a Motion to approve the consent agenda was
Regular Council Meeting
December 9, 2024
Page 2
made by Council Member Putnam and seconded by Council Member Norment. Motion carried,
6 ayes — 0 nays.
5. Approve minutes from the meetings of November 12, 2024 and November 20, 2024.
6. Receive reports and/or minutes from the following boards and commissions:
a. Airport Advisory Board (8-15-2024)
b. Paris Visitors & Convention Council (10-21-2024)
c. Love Civic Center Board (9-12-2024)
d. Building & Standards Commission (9-16-2024)
e. Tax Increment Reinvestment Zone Board (10-10-2024)
f. Planning & Zoning Commission (10-7-2024)
g. Paris -Lamar County Board of Health (7-15-2024)
h. Main Street Advisory Board (10-8-2024)
7. Receive demolition and code enforcement monthly report.
8. Approve an assignment of the Airport Ground Lease Agreement for Private Hangar O,
from Dr. Louis Trenchard to Paris Air Conditioning and Zane Co. Aero, LLC.
9. Approve RESOLUTION NO. 2024-049: A RESOLUTION APPROVING THE SALE
OF THE PROPERTY LOCATED AT 1045 N. MAIN STREET.
10. Approve RESOLUTION NO. 2024-050: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS TO AMEND PERSONNEL MANUAL SECTION
15.15 ADDING STATE -MANDATED TIKTOK POLICY; MAKING OTHER
FINDINGS AND PROVISIONS AND DECLARING AN EFFECTIVE DATE.
11. Approve the Final Plat of the Dolfin Addition CB 229, Lots 1 and 2, Block A, LCAD
17674, located in the 1400 Block of W. Sherman Street.
12. Approve a Professional Services Agreement with GrantWorks for funding of eligible
activities under the Hazard Mitigation Grant Program, Building Resilient Infrastructure
and Communities Grant Program, Flood Mitigation Assistance Grant Program, and other
funding sources used in conjunction with the above programs; and authorize the Interim
City Manager to execute all necessary documents.
Re ular A enda
13. Discuss, continue the public hearing and act on ORDINANCE NO. 2024-044: 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, BLOCK 3, LOT 3, IN THE
FELTS, FORT & VARNER ADDITION, LCAD #11342, LOCATED AT 950 E.
Regular Council Meeting
December 9, 2024
Page 3
AUSTIN ST., FROM AN OFFICE DISTRICT (0) TO A GENERAL RETAIL
DISTRICT (GR); PROVIDING A REPEALER CLAUSE, A SEVERABILITY
CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
Planning Director Osei Amo-Mensah said the current use as an Aerofit Health Club was
classified as a private recreational facility which was allowed as a Specific Use Permit. He
explained the applicant was requesting a rezoning to General District for the fitness gym as a
permitted use and if approved, a Specific Use Permit would no longer be required.
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak in
support or opposition, to please come forward. With no one speaking, Mayor Pankaj closed the
public hearing.
A Motion to approve this item was made by Council Member Kessel and seconded by
Mayor Pro -Tem Savage. Motion carried, 6 ayes — 0 nays.
14. Discuss, conduct a public hearing and act on ORDINANCE NO. 2024-045: 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 PROPERTIES SOUTH OF
KAUFMAN STREET TO SHERMAN STREET BETWEEN IST STREET SE AND
33RD STREET SE FROM A ONE -FAMILY DWELLING DISTRICT NO. 1 (SF I) TO
A CENTRAL AREA DISTRICT (CA); PROVIDING A REPEALER CLAUSE, A
SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
Mr. Amo-Mensah said the rezoning proposal on the agenda had been divided into three
separate items based on each zoning category. He said this item pertaining to a portion to the
north of the Historic District be changed from the current One -Family Dwelling District No. 1
to a Central Area for properties South of Kaufman Street to Sherman Street between 1" Street
and 3rd Street.
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak in
support or opposition, to please come forward. With no one speaking, Mayor Pankaj closed the
public hearing.
A Motion to approve this item was made by Council Member Ellis and seconded by
Council Member Norment. Motion carried, 6 ayes — 0 nays.
15. Discuss, conduct a public hearing and act on ORDINANCE NO. 2024-046: 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 LCAD PARCEL NOS.16255,
16421, and 16571 FROM A ONE -FAMILY DWELLING DISTRICT NO. 1 (SF1) TO
A MULTIPLE -FAMILY DWELLING DISTRICT NO. 1 (MF1), IN HISTORIC
Regular Council Meeting
December 9, 2024
Page 4
DISTRICT NO.2 (HD -2); PROVIDING A REPEALER CLAUSE, A SEVERABILITY
CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
Mr. Amo-Mensah said this rezoning proposal was a part of the previous rezoning item.
He also said this request was for an intermittent location within the Historic District No. 2 (HD -
2), a zoning change from a One -Family Dwelling District No. 1 (SF -1) to a Multiple -Family
Dwelling District No. 1 (MF1) in the Historic District No. 2 (HD -2).
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak in
support or opposition, to please come forward. Michael King asked questions about this zoning
with regard to a washeteria being a commercial building. Ms. Harris said nothing would change
because he had a non -conforming use. With no one else speaking, Mayor Pankaj closed the
public hearing.
A Motion to approve this item was made by Council Member Norment and seconded by
Council Member Kessel. Motion carried, 6 ayes — 0 nays.
Mayor Pro -Tem Savage left the meeting at 5:44 p.m.
16. Discus, conduct a public hearing and act on ORDINANCE NO. 2024-047: 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 OF MULTIPLE
PROPERTIES WITHIN HISTORIC DISTRICT NO. 1 (HD -S) SOUTH OF SHERMAN
STREET TO HEARNE STREET AND BETWEEN SW 1sT STREET AND SE 3'm
STREET, SAVE AND EXCEPT LCAD PARCEL NOS. 16255, 16421, AND 16571, AS
WELL AS LCAD PARCEL NOS. 16272, 16276, 16279, 16585, 16583, 16586, 16591,
16592, 16595, 16597, 16599, 16601, 16603, AND 16604, FROM A ONE -FAMILY
DWELLING DISTRICT NO. 1 (SFI) TO A ONE -FAMILY DWELLING DISTRICT
NO. 2 (SF2) PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Mr. Amo-Mensah said this item was in relation to the two previous rezoning cases.
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak in
support or opposition, to please come forward. With no one speaking, Mayor Pankaj closed the
public hearing.
A Motion to approve this item was made by Council Member Putnam and seconded by
Council Member Ellis. Motion carried, 5 ayes — 0 nays.
17. Discuss renaming of the City Hall Annex Building and provide direction to staff.
Regular Council Meeting
December 9, 2024
Page 5
Mayor Pankaj said that Mayor Pro -Tem Savage had contacted him a couple of weeks ago
about this item, and that he and Council Member Norment had been working on this. He said
Mayor Pro -Tem Savage and Council Member Norment wanted to name the annex building after
Gene Anderson. Mayor Pankaj said Mr. Anderson had served the City for forty years and led
the City through a lot over the years. He said they wanted to do something for Mr. Anderson.
Mr. Anderson said he was honored that they were discussing this and very much appreciated the
thought. It was a consensus of the City Council that the annex building be named after Gene
Anderson.
18. Convene into executive session pursuant to:
A. Section 551.071 of the Texas Government Code, Consultation with Attorney, to
receive legal advice from 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: CARDS liquidated damages.
B. Section 551.074 of the Texas Government Code to deliberate the appointment,
employment, evaluation, reassignment, duties, discipline, or dismissal of a public
officer or employee, to -wit: the new city manager search.
A Motion to remove item 18A from the table was made by Council Member Kessel and
seconded by Council Member Ellis. Motion carried, 5 ayes — 0 nays.
Mayor Pankaj convened City Council into executive session at 5:53 p.m
19. Reconvene into open session and possibly take action on those matters discussed in
executive session.
Mayor Pankaj reconvened City Council into open session at 7:06 p.m. and said there was
no action to be taken.
Ms. Harris said they needed to call a special meeting on Tuesday, December 17 at 5:30
p.m. Council Member Putnam inquired about funding for the Lamar County Humane
Association. Mr. Vine said he and Mayor Pankaj were working on this.
20. Adjournment.
There being no further business, a Motion to adjourn was made by Council Member Ellis
and seconded by Council Member Kessel. Motion carried, 5 ayes - 0 nays. Mayor Pankaj
adjourned the meeting at 7:08 p.m.
MIHIR PANKAJ, MAYOR
JANICE ELLIS, CITY CLERK
MINUTES OF THE SPECIAL CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
December 30, 2024
The City Council of the City of Paris met for a special session at 5:30 p.m. on Monday,
December 20, 2024, at the City Council Chamber, 107 E. Kaufman, Paris, Texas.
Present: Mayor: Mihir Pankaj
Mayor Pro -Tem: Gary Savage
Council Members: Shatara Moore, Mickey Ellis, Rebecca Norment,
Alix Putnam, and Rudy Kessel
City Staff: Rob Vine, Interim City Manager; Stephanie Harris,
City Attorney; Janice Ellis, City Clerk; and Gene
Anderson, Finance Director
O . enin A enda
1. Call meeting to order.
Mayor Pankaj called the meeting to order at 8:55 a.m.
2. Invocation.
Finance Director Gene Anderson gave the invocation.
3. United States Pledge of Allegiance & Texas Pledge of Allegiance.
City Council led the United States Pledge of Allegiance and the Texas Pledge of
Allegiance.
4. Citizens' Forum.
No one spoke during citizens' forum.
Re ular A :enda
5. Convene into Executive Session pursuant to Section 551.074 to deliberate the
appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a
public officer or employee, to -wit: City Manager position.
Mayor Pankaj convened City Council into executive session at 5:32 p.m.
6. Reconvene into open session and possibly take action on those matters discussed in
executive session.
Special Council Meeting
December 30, 2024
Page 2
Mayor Pankaj reconvened City Council into open session at 5:40 p.m. A Motion to accept
the contract with Rose Beverly for the City Manager position; and to authorize Mayor Pankaj to
sign the contract was made by Mayor Pro -Tem Savage and seconded by Council Member Kessel.
Motion carried, 7 ayes — 0 nays.
7. Adjournment.
There being no further business, a Motion to adjourn was made by Mayor Pro -Tem
Savage and seconded by Council Member Norment. Motion carried, 7 ayes - 0 nays. Mayor
Pankaj adjourned the meeting at 5:40 p.m.
MIHIR PANKAJ, MAYOR
JANICE ELLIS, CITY CLERK
Item No. 6
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PARIS ECONOMIC DEVELOPMENT CORPORATION
MONTHLY MEETING
Paris City Council Chambers
107 East Kaufman St.
Paris, Texas 75460
Tuesday, October 15, 2024
5:30 P.M.
MINUTES
Board Members Present:
Josh Bray, Chairman
Chase Coleman, Secretory/Treasurer
Erik Roddy
Mark Homer
Ex -Officio Members Present:
Dr. Stephen Benson, PJC President
Staff Present:
Maureen Hammond, Executive Director
Adam Cawthon, Executive Assistant
Sarah Moore, Project Coordinator
Legal Council:
Casey Gain, PEDCAttorney
Rebecca Norment, City Council Liaison Guest(s) Present:
Rob Vine, Interim City Manager
Kyle Towery, Tower Guard Construction
Megan Towery, Tower Guard Construction
Steve Showalter
CalltoOrder
Chairman Josh Bray called the monthly board meeting of the Paris Economic Development Corporation
to order at 5:30 p.m. on Tuesday, October 15, 2024.
Invocation
Mr. Roddy gave the invocation.
Welcome and O enin Remarks
Chairman Bray opened by welcoming PEDC Project Coordinator Sarah Moore to the team.
Citizens' Input_
Chairman Bray invited those present to speak during the Citizens' Input.
No one came forward, and Chairman Bray closed citizens' input.
Page 1 of 4
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Discuss and Consider App
roval of the August 20 2024 Meeting Minutes
Chairman Bray presented the August 20, 2024, meeting minutes for review and discussion.
Mr. Roddy made a motion to approve the minutes as presented. Mr. Homer seconded the motion.
Vote: 4 -ayes to 0 -nays
Discuss and Consider Approval of the M@yjypgjuly and August 2024 Financial Statements
Secretary and Treasurer Chase Coleman reminded the Board that financial statements for the months of
May, June, and July had not been available from the City of Paris until recently. He began his report by
presenting the financial reports ending May 31, 2024. Total assets were reported to be $10,330,497.
Total liabilities were reported to be $2,163,204, leaving the PEDC with a total net position of $8,167,293.
Mr. Coleman continued with the income statement for the month, citing the reported total revenue as
$217,727. He concluded the financial report for the month of May by presenting total expenditures and
net income for the month.
Mr. Coleman opened the floor to questions regarding the May financial report. There were no
questions.
Mr. Coleman continued his report by presenting the financial reports ending June 30, 2024. Total assets
were reported to be $10,459,280. Total liabilities were reported to be $2,149,598, leaving the PEDC with
a total net position of $8,309,682. Mr. Coleman continued with the income statement for the month,
citing the reported total revenue as $196,100. He concluded the financial report for the month of June
by presenting total expenditures and net income for the month.
Mr. Coleman opened the floor to questions regarding the June financial report. There were no
questions.
Mr. Coleman continued his report by presenting the financial reports ending July 31, 2024. Total assets
were reported to be $10,311,080. Total liabilities were reported to be $2,146,868, leaving the PEDC with
a total net position of $8,164,212. Mr. Coleman continued with the income statement for the month,
citing the reported total revenue as $191,510. He concluded the financial report for the month of July by
presenting total expenditures and net income for the month.
Mr. Coleman opened the floor to questions regarding the July financial report. There were no questions.
Mr. Coleman continued his report by presenting the financial reports ending August 31, 2024. Total
assets were reported to be $10,263,111. Total liabilities were reported to be $2,121,970, leaving the
PEDC with a total net position of $8,141,041. Mr. Coleman continued with the income statement for the
month, citing the reported total revenue as $213,695. He concluded the financial report for the month
of August by presenting total expenditures and net income for the month.
Mr. Coleman concluded his report of the financial statements by noting that the PEDC's current year-to-
date revenue is well over budget and the current year-to-date expenditures are well below budget.
Page 2 of 4
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Mr. Coleman opened the floor to questions regarding the August financial report. Mr. Roddy asked
when the PEDC's loan with the City of Paris is due for adjustment. Mr. Coleman noted that the
adjustment would take place at the end of the 2024 year. There were no further questions.
Mr. Roddy made a motion to approve the financial statements as presented. Mr. Coleman seconded the
motion.
Vote: 4 -ayes to 0 -nays
Discuss and Consider Combined Nov. Dec. Board Meeting
Ms. Hammond noted that, due to the upcoming holidays, it would be in the best interest of the Board to
hold a combined meeting for the months of November and December. She proposed scheduling the
meeting on Tuesday, December 3, 2024. The consensus was to move forward with the proposed date
for a combined November/December board meeting.
Report and U dp ates by Executive Director Maureen Hammond
Highlights of Ongoing Projects: Ms. Hammond provided updates to multiple ongoing projects. She
opened her report by stating that LionsHead Wheel & Tire is currently on schedule to secure a certificate
of occupancy by the end of the year. She continued by noting that Huhtamaki's construction is on
schedule and expected to complete by March 2025. She further reported that TXDOT is scheduled to
complete construction during 2025. Ms. Hammond concluded this report by noting that the PEDC could
look forward to multiple grand openings within the next 6-8 months.
NW Industrial Park EDA Grant: Ms. Hammond began by thanking the Board for their attendance at the
NW Industrial Park Unveiling Ceremony. She noted that approximately 80 people were in attendance.
Ms. Hammond reported that the PEDC had received the first grant reimbursement payment from the
EDA. She reported that after the finalization of construction, a limited amount of contingency funds is
available for additional work within the business park. She noted that the PEDC was considering options
to utilize the remaining funds, providing examples of additional water lines, dirt work, and the possibility
of installing fiber internet on the property. Ms. Hammond closed her report by noting that the EDA grant
was expected to close within the next 60 days, pending completion of additional work determined for
the available contingency funds.
Ms. Hammond opened the floor to questions regarding her report. There were no questions.
Page 3 of 4
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rir�rJS TEXAS
Convene into Executive Session:
1) 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 to 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 another incentive to a business prospect described by Subdivision (1), to wit:
a) Project Blue Fire
b) Project Fancy Dirt
c) Project Gold Grill
Chairman Bray convened the Board into Executive Session at 5:39 p.m.
Reconvene into O en Session and Consider Action on Items Discussed in the Executive Session
Chairman Bray reconvened the Board into an Open Session at 6:07 p.m.
Mr. Bray expressed that no action was needed on items discussed in Executive Session.
Discuss Future A enda Items
Chairman Bray opened the floor to discuss future agenda items. No items were brought forward for
discussion.
Closing Remarks
None
Adjourn
Mr. Homer made a motion to adjourn the meeting. Mr. Coleman seconded the motion.
Vote: 4 -ayes to 0 -nays
Chairman Bray declared the meeting adjourned.
The meeting was adjourned at 6:07 p.m.
Respectfully submitted,
Adam Cawthon
Executive Assistant
Paris Economic Development Corporation
Page 4 of 4
MINUTES OF THE MAIN STREET ADVISORY BOARD
PARIS CITY COUNCIL CHAMBERS
107 E. KAUFMAN
PARIS TEXAS 75460
TUESDAY November 12 2024
Present: Board Members: Glee Emmite, Melissa Jones, Kim Kalina, Mary Hart, Kevin
Moore, Tyrone Hayden, Becky Semple (Chamber), Alix Putnam
(City Council District 6)
City Representatives: Cheri Bedford, Main Street Manager
Citizens: Megan Glasscock
Not present: Board Member: Will Walker
Chairman Emmite called the meeting to order at 4:30pm by reading the board's vision and mission
statements.
1. Citizen forum: none.
2. Review minutes from the October meeting:
A motion was made to approve the October meeting minutes by Hart. Motion was seconded by
Kalina. 7 ayes, 0 nays. Motion passes.
3. Committee Reports - Transforming Strategies
a. Design
i. Emmite stated the Historic Preservation Commission met to sign a certificate of
appropriateness for renovation for a house on 1 st SW and for Amy Hill, who just moved
her business to 1 st ST NE, approving her signage for the front and side of the building.
A facade grant was reviewed and acted upon for Linda Knox for $2000. Discussion was
had over a house that had been taken off 623 SE 6th. Still under review and waiting for
vote.
ii. Emmite introduced Megan Glasscock, who she is working with to create a survey to find
out what the residents of Paris would like to see changed or added downtown. Megan
has created a diverse target group to answer survey questions as a test.. Overall the
feedback was positive, with primary concerns of parking and the lack of activities of
children. Cheri asked Megan to begin creating a Downtown survey to be submitted to
the community. Once completed, the SBDC will present the survey and run the
analytics.
b. Organization
Hart reported that she is working on creating a Paris Art Movement. An Art Fair, with the
goal of bringing local artists, art teachers and lovers of art and culture together. Plans to
hold an Art Mixer at the Art Gallery in January are underway. An artist survey will be
submitted, followed by a community- wide art survey, in hopes of generating a Business -
Hosted Art Walk. Moore suggested that the first strategy (Photo Op Art Installation) be
included in the discussion, which Hart was already considering.
Putnam, needing to excuse herself to attend a city council meeting, stood and introduced herself. She
expressed that the board feel encouraged to bring ideas and concepts to the city council to be put on the
agenda. "Hearing the voices in this room is the most impactful way to get things done and goals met."
c. Promotion
i. Kalina spoke with Evan G. at The Paris news. The grant program article, which she has
written, should run in the paper Thursday, November 14. Emmite and Bedford thanked
Kalina very much for hard work on the article.
ii. Moore shared about the lack of a "one-stop" calendar for all local events. He has made
contact with an app developer, to explore the options of creating such a calendar that
organizations, businesses, schools, churches, etc. could feed into and could be user-
controlled/filtered to meet their interests. Glasscock suggested adding a feature for
personal networking and "meet ups".
d. Economic Vitality:
i. Moore and Bedford did a survey of vacant downtown buildings. The city defines
it as a vacant structure for at least 30 days, not a vacant lot. A map showing many vacant
structures / lots was shared. If the structure is not being worked on or is not for sale at
fair market value, it will be on listed on the vacant registry and pay a fine of $500,
accruing additional $500 each year. More discussion will be had on this topic next month.
4. PDA Report:
a. Emmite reported that applications are coming for the Downtown Christmas Parade on December 7
at 6pm. Three judges are needed. The Judges sight will be in front of Fine & Dandy. The Grand
Marshall this year is Becky Semple.
5. Chamber Report: Semple reported this year's BBQ Blowout (Sanctioned BBQ competition and Peoples
Choice Division) is scheduled for December 7 at Love Civic Center. This year the public can purchase a
$20 entry to eat all the Peoples Choice BBQ. Proceeds benefit local school education foundations. 903
Sunset Concerts are scheduled for Thursdays in June. It is estimated that the Square Dance group who
came to Paris over Labor Day and in Mid -October to attend Mannequin Night, spent over $50,000.00
locally, with 400 room nights.
6. Coordinators Report - Coordinator Bedford explained how the Placer app, used by City, Chamber, and
EDC, can geo-fence an area for a certain amount of time, using cell phone data to determine how long
people stayed in one area, where they came from, what peak hours are, etc. It is reported that 9,800
people attended Pumpkin Fest. The average stay was about 55 minutes and the peak attendance was from
l lam-lpm, during the costume contest. This year there were 85 vendors, 10 kids games and 150
volunteers throughout the day. This year we took in $21,000 from Festival of Pumpkins, towards the
Main Street fund. Next year will mark the 25th Anniversary. Suzy Harper with the non-profit, Light up
Paris, reached out to Bedford stating that the cost to prepare downtown for the Christmas Tree lighting is
$6000. Bedford recommended that the board donate $1500 towards this. Moore made a motion to give
$1500 to Light up Paris. Hart seconded. Motion passed. Christmas Tree Lighting will be November 23.
Shannon Jones with Lamar National Bank is coordinating the entertainment, choirs and dancers. There
will be wagon rides, live reindeer, popcorn and hot chocolate for a donation. Moore asked about
advertising the Christmas Tree Lighting at Christmas in Paris earlier that day, to encourage visitors to stay
in town all day. Bedford will put out a press release and advertising on social media. We will ask Paul to
look up on the Placer app how many out of town visitors attend Christmas in Paris. Bedford suggested a
vinyl banner (from Forrest Signs) at the civic center In the future we might consider posting signage
downtown (similar to festival of pumpkins), putting info at the local hotels, and at the PJC corner.
Bedford is in contact with Porter Lawn Maintenance about starting a maintenance contract for the grass on
the interior plaza, to alleviate the Parks Dept. Bedford is having a meeting with the Texas Main Street
design staff regarding 1 st Street. We should see action on 1 st Street soon. On November 19, at 2pm,
Moore and Emmite will join the city staff to discuss the Downtown Plan. Bedford will send invitation to
inform them of meeting location. Boards and Commissions were looked at. Bedford recommended that
our board include a member of PDA, 7 members and 2 alternates. The Farmers Market Shed is here and
work will begin on that soon. Next meeting will be December 10th at 4:30.
7. Moore made a motion to adjourn the meeting. Hart seconded. Motion passed. Board adjourned at 5:56
p.m.
Future agenda items.
*Revisit Survey
Chairman
MINUTES OF THE REGULAR MEETING
OF THE HISTORIC PRESERVATION COMMISSION
107 EAST KAUFMAN STREET
PARIS TEXAS 75460
WEDNESDAY November 13,202
4:00 P.M.
COMMISSION MEMBER PRESENT:
Glee Emmite
Matthew Coyle
Linda Knox
Kelsey Turk
Roxann Hadley, Alternate
Millicent Kee
Jessica Holtman
CITY REPRESENTATIVES:
�.... ...........................Duke McGee, HPO Staff Liaison
Cheri Bedford, Main Street Director
GUESTS:
Rebecca Norment
1. Call meeting to order
ABSENT:
........
Trac ....
Dougherty
ougherty
Ryan Matthews
The meeting was called to order by the Vice Chairman Matthew Coyle at 4:02 P.M.
2. Citizen's Forum
No one came forth to speak during the Citizen's Forum
3. Approval of October Minutes
A motion was made by Commissioner Turk, seconded by Commissioner Holtman, that the
minutes of the meeting held on October 09, 2024, be approved as corrected. Motion carried:
Ayes 7; Nays 0
Vice Chairman Coyle asked that Item 6 be moved up on the Agenda.
A motion was made by Commissioner Holtman, seconded by Commissioner Emmite, Item 6 was moved up on the
Agenda. Motion carried. Ayes 7; Nays 0
4. Discussion and possible action on the Certificate of Appropriateness application for property located in HD 1, 115 S
Main ST, Property ID 13662, Rebecca Norment
A. Certificate of Appropriateness for repainting and repair of exterior entry and replace/repair awning (24-
000044)
A motion was made by Commissioner Holtman, seconded by Commissioner Kee, that item 4.A. Certificate of
Appropriateness for repainting and repair of exterior entry and replace/repair awning be approved. Motion
carried: Ayes 7 Nays 0
B. Review and act upon $5,000.00 Grant application for Rebecca Norment, 115 S Main ST (24-000055)
A motion was made by Commissioner Emmite, seconded by Commissioner Holzman, that item 4.B. $5, 000.00
Grant application for Rebecca Norment be approved. Motion carried: Ayes 7; Nays 0
5. Discussion and possible action on the following Certificate of Appropriateness application for property located in
HD 1, 122 Bonham ST, Property ID 13669, Jason Boehiar
A. Certificate of Appropriateness for splitting building into two suites using the side interior wall by adding 2
exterior doors on an interior wall of 130 Bonham. (24-000052)
A motion was made by Commissioner Turk, seconded by Commissioner Emmite, that item 5.A the Certificate of
Appropriateness for splitting building into two suites using the side interior wall by adding 2 exterior doors on an
interior wall of 130 Bonham be denied. Motion carried: Ayes 7; Nays 0. The basis of the denial was due to the
plans to install new doors on a secondary fagade which would conflict with the primary fagade, and it reorients
the primary historic entrance.
Discussion and possible action on the following Certificate of Appropriateness application for property located in
HD 1, 101 Grand Ave., Property ID 13646, Jon Mallory
A. Certificate of Appropriateness for Sign (24-000049)
A motion was made by Commissioner Holtman, seconded by Commissioner Kee, to approve with condition that
the font be more traditional to the area and the sign's attachment to the structure be in such a way to not cause
damage to the brick. Motion carried: Ayes 7; Nays 0.
B. Application for Certificate of Appropriateness – Minor Exterior Alterations (sign on corner of building)
A motion was made by Commissioner Holtman, seconded by Commissioner Emmite, to deny the application
because the suggested location is not conducive to traditional locations of other signage. Motion carried: Ayes
7, Nays 0
Amend and act upon $2,000.00 Fagade grant for Linda Knox, 655 Church ST (24-000024)
On a motion by Commissioner Holtman, seconded by Commissioner Emmite, Commissioner Knox was recused
from participating in the item. Motion carried: Ayes, 6; Nays 0
A. Grant was posted for $1,000.00, and approved for $2,000.00
On a motion by Commissioner , seconded by Commissioner , to approve the Fagade grant of $2, 000.00.
Motion carried: Ayes 6, Nays 0
Update from sub -committee for the property located at 623 SE 6th Street that was removed from the Consent
Agenda at the August 14th meeting.
Commissioner Hadley reported that through conversations with the current owners, the confirmed ownersfell
through on the purchase but there is another entity interested in a purchase. There was no action taken; however,
this item will remain as a Future Agenda item for monthly follow up.
--CONSENT AGENDA—
(Items appearing on this consent agenda may be approved by a single vote of the Commission. with such
approval applicable to all items appearing on said agenda. If any Commission member desires to discuss and
consider separately any item appearing on the consent agenda, that Commission member may do so by requesting
that the item be removed from the consent agenda and considered as a separate item.)
Discussion and possible action regarding the following structures considered by code inspectors to be in violation
of Article III of Chapter 7 of the Code of Ordinances of the City of Paris, Paris, Texas, entitled "Substandard and
Dangerous Buildings and Structures," to determine whether such buildings or structures can be rehabilitated and
designated on the National Register of Historic Places, as a recorded Texas Historic Landmark, or as historic
property as designated by the City Council of the City of Paris.
A. None at this time.
9. Coordinators Report
A. Monthly CoA Report
HPO Staff Liaison presented the Monthly CoA Report. He also reported that the City's IT Department is still
working on Share Point and making it accessible to Commissioners.
B. Pictures with Grant Recipients after HPC (Randy Hider & Clay Spencer)
Neither recipient was present.
C. Q&A
There were no questions.
10. Future Agenda Items
Gibbons Bankhead Home
Adjourn:
A motion was made by Commissioner Emmite, seconded by Commissioner Hadley, to adjourn. Meeting was
adjourned at 4:54 P.M.
Ryan
MINUTES OF THE SPECIAL MEETING
OF THE HISTORIC PRESERVATION COMMISSION
107 EAST KAUFMAN STREET
PARIS TEXAS 75460
WEDNESDAY November 5 2024
4:00 P.M.
COMMISSION MEMBER PRESENT:
ABSENT:
Glee Emmite
Kelsey Turk
Matthew Coyle
Ryan Matthews
Linda Knox
Millicent Kee
Tracy Dougherty
Jessica Holtman
Roxann Hadley, Alternate
CITY REPRESENTATIVES,:
Duke McGee, HPO Staff Liaison
Osei Amo-Mensah, Director, Planning and Community Development
GUESTS:
Jon Mallory
April Mallory
1. Call meeting to order
The meeting was called to order by the Vice Chairman Matthew Coyle at 4:15 P.M.
2. Citizen's Forum
No one came forth to speak during the Citizen's Forum
3, Vice Chairman Coyle asked that Item 5 be moved up on the Agenda.
A motion was made by Commissioner Emmite, seconded by Commissioner Dougherty, Item S was moved up on
the Agenda. Motion carried. Ayes S; Nays 0
4. Discussion and possible action on the following Certificate of Appropriateness application for property
located in HD 1, 101 Grand Ave, Property ID 13646, Jon Mallory
A. Sign was approved location was denied - Permit had already been removed (24-000049)
After some discussion with the business owner, a motion was made by Commissioner Hadley, seconded
by Commissioner Dougherty, to conditionally approve the sign pending its move to a more traditional
location on the building. The owner is considering a `Blade sign. "
5. Discussion and possible action on the following Certificate of Appropriateness application for property
located in HD 1, 7 E Plaza, Property ID 13625, Thu Ha Nguyen
A. Certificate of Appropriateness for Cleaning Repairing Windows (24-000040)
B. The wood and debris currently covering the windows at the Lamar Ave entrance will be removed and
replaced with a new wood frame.
A motion was made by Commissioner Hadley, seconded by Commissioner Emmite, to deny item S.A.
pending better rendering of the proposed repairs. Motion carried. Ayes S; Nays 0
0 6. Future Agenda Items
Items for consideration for future applications:
A. All applicants need to submit all paperwork for COA, fagade grants, and Tax Abatements be submitted at the
same time.
B. Applicants must be present when applications are being considered.
Adjourn:
A motion was made by Commissioner Emmite, seconded by Commissioner Hadley, to adjourn. Meeting was
adjourned at 4:53 P.M.
Paris Public Library Advisory Board
10/16/2024
Meeting Minutes
I. Call to Order:
The regular meeting of the Paris Public Library Advisory Board was called to
order by Chairman Steve Hellmann at 5:01 p.m.
Board members present were Steve Hellmann, Eva Dickey, Myers Hurt, Fran Neely, and new
board member Abigail Frank. Also present were Library Director Connie Lawman, and Friends
of the Library representative Audrey Mathieu and Jeannie Walter.
II. Citizens Forum:
No citizens addressed the board.
III. Approval:
The minutes of the September 18, 2024, board meeting was approved with no corrections. Fran
Neely made the motion to approve, with Myers Hurt providing the second.
IV. New Business:
Strategic Planning was discussed and the following was outlined.
a. First year goals
i. 1 H serving underserved population such as teens, visually limited/blind patrons
and native Spanish speakers by providing content and services catering to their
needs
ii. 1 D making the library more accessible by easing access via public transportation
iii. 1J partnering with community agencies
iv. 3A Fran brought up concern about the online database and bridging the gap in
giving people that access. Niche Academy is a program recently purchased
Connie said that is going to train people on technology and start this process.
b. Second year goals
i. 1i finding new ways to connect community interests by programs. Examples:
seed library, 3D printer, sewing, baking, professional services
ii. 2C easing access to get books and media by providing delivery options with
particular focus
iii. 3C improving marketing and outreach of library services
iv. 3D creating a system to create new programming
V. Friends of the Library report
a. Reading Nook logistics -- theme is nature, but the library asked for more direction. A
space ship will be priced. Audrey just said Friends of the Library needs more direction
and they will get more quotes.
b. Art Fair --putting some Chisum High School worked up and reaching out to other high
schools to bring art to judge at the contest.
c. Annual Meeting is next Wednesday, PPL Gallery, at 5: 30 p.m.
d. Storyboard Walk --meeting with the children's director to start.
VI. Director's Remarks
a. The board will meet Wednesday, December 4, and that will count for November and
December due to holiday commitments.
b. The library will be closed November 15-23, 2024, due to renovations (Steve did suggest
that late fees be waived during this time). Books will need to be moved out on Friday,
November 15, if you want to help, at 8 a.m.
c. Ron Hervey is retiring. His last day is November 14. Judy Vickers is the new library
supervisor. Library technician position (what Judy is now) will be posted. They are
clearing out the office the week of renovation to give her an office. The job description
will change. As Connie said "times have changed and all staff are tech savvy."
With nothing further to address, Myers Hurt made the motion to adjourn, with Eva Dickey
providing the second. We adjourned at 5:31 p.m.
The next meeting of the Paris Public Library Advisory Board is December 4, 2024, beginning at
5:00 p.m.
Submitted by:
Eva Dickey
board member
Minutes
Traffic Commission
City of Paris
The Traffic Commission met on Tuesday October 01, 2024, at 5:15 P.M. in the
Municipal Courtroom with the following members present:
1.
Eric Guillot
2.
Linda Vandiver
3.
John Darst
4.
Jeremy Wilson
The city staff was represented by Asst. Chief Randy Tuttle.
John Darst called the meeting to order at 5:17pm. A quorum was established
with four members present.
Mr. Darst then moved to item #2 the discussion and possible action concerning
election of Traffic Commission Chairperson. Mr. Guillot made a motion to
nominate Mr. Darst and motion was second by Mr. Wilson. There were no other
nominations. Motion carried 4-0.
Mr. Darst then moved to item #3 regarding the discussion and possible action
concerning election of Traffic Commission Vice -Chairperson. Mr. Guillot made a
motion to nominate Mr. Wilson and motion was second by Ms. Vandiver. There
were no other nominations. Motion carried 4-0.
Mr. Darst then moved to item #4 regarding the approval of minutes from the July
08, 2024 meeting. A motion to approve minutes was made by Mr. Wilson and
was second by Mr. Guillot. Motion carried 4-0.
Mr. Darst then moved to item #5 regarding the discussion and possible action
concerning a change in school zone speed limit for Paris ISD campuses. Mr.
Tuttle informed members that after the previous recommended changes in the
times of school speed zones at various campuses the school officials realized
that they had not allowed enough time before start of school and after dismissal
and this needed to be corrected. Mr. Tuttle presented members with an Exhibit A
that outline new school speed zone times for each campus. After discussion Mr.
Guillot made a motion to recommend city council approve the new times of
school speed zones in Paris ISD district. A second was made by Ms. Vandiver
and motion carried 4-0.
Ms. Kear then moved to item #9 concerning future agenda items. There was
none.
At 5:28pm Mr. Wilson made a motion to adjourn the meeting. A second was
made by Mr. Guillot and motion carried 4-0.
/ Www
Chairperson: _.. Date:
w,
Board of Adjustment Meeting
November 5, 2024
Page 1
MINUTES OF THE BOARD OF ADJUSTMENT MEETING
OF THE CITY OF PARIS, TEXAS
NOVEMBER,5, 2024
The Board of Adjustment of the City of Paris met for a regular session at 12 p.m. on
November 5, 2024, at the City of Paris- City Hall, Council Chambers located at 107 E
Kaufman St.
Present: Board Members: David Hamilton, William Sanders, Harley Draven, Ben
Vaughan and Richard Thompson.
City Representative: Stephanie Harris, Alix Putnam and Osei Amo-
Mensah.
Absent: None
1. The Board of Adjustment meeting was called to order by Chairman David Hamilton, at
12: 00 p. m.
2. Approval of minutes from previous meeting. (October 1, 2024)
Motion was made by William Sanders, seconded by Ben Vaughan to approve minutes for
the October 1, 2024 meeting. Motion carried 5 ayes — 0 nays.
3. Public hearing to consider and take action on the petition of Lyle Edwards of RT Fitness
regarding a variance to the City of Paris Area Regulations, Section 9-701(2), on Lot 3,
Block 3, of the Felts, Fort & Varner Addition, being located at 950 E Austin Street.
David Hamilton opened the public hearing.
Director of Planning and Zoning, Osei Amo-Mensah presented case to board.
Harley Draven asked about the Planning and Zoning recommendation on the variance and
was informed by Osei that the P&Z had not considered the issue due to lack of quorum.
Lyle Edwards of 5430 Brittany Lane, and applicant, explained in more detail to the board
the need for the variance in order to move forward with their plan for expanding the
building since they have limited space on their lot. Mr. Edwards also informs the board
that they are willing to improve the sidewalk during the project so there is a proper fire
exit.
No one else spoke in favor or opposition of the request.
Public hearing was declared closed.
Board of Adjustment Meeting
November 5, 2024
Page 2
Motion was made by Harley Draven, seconded by Richard Thompson to approve the
variance to the City of Paris Area Regulations, Section 9-701(2) based on the following
findings. Motion carried 5 ayes - 0 nays.
Findings
1. The lot is platted.
2. The request for variance is in harmony with the general purposes and intent of the proposed
district and will not harm the health, safety and welfare that will protect the character of
the immediate vicinity of the area.
3. The applicant has indicated a hardship sought because the building was constructed 37
years ago by St. Joseph hospital and was placed on the site to avoid an existing City of
Paris 10" water line running diagonally across the property that required the building to be
setback to its present location. Thus, creating a hardship for future expansion resulting in
a special and unique condition of restricted area of the lot, that exist on the subject parcel
of land, which are not applicable to other parcels of land in the current Office (0) Zoning
District, and which cause unusual and practical difficulty or unnecessary hardship to the
use of the property with site improvements and expansions permitted by the ordinance with
the provision sought here to be varied.
4. The hardship sought to be avoided is not the result of (a) the applicant's own actions (self-
imposed or self-created), and (b) economic or financial "hardship."
5. The provision of the ordinance regulation that are sought to be varied, deprive the applicant
of reasonable rights to use the property that are commonly enjoyed by other older
commercial properties in the current Office (0) and proposed General Retail (GR) Zoning
Districts which are required to comply with these same ordinance provisions.
4. Public hearing to consider and take action on the petition of Dawn Downs regarding
variances to the City of Paris Accessory Building and Area Regulations, on Lot 9, Block
B, of the Summerwood Estates, being located at 4290 Sunrise Drive. Sections and
variances as follows:
1) Variance to allow a detached accessory structure in the front yard,
Section 13-101(a).
2) 3' variance to allow a detached accessory structure to be located 0' from
the side property line, Section 13-101(b).
3) 15' variance to allow a detached accessory structure to be located 0' from
main structure, Section 13-101(c).
4) 20' variance to allow a detached accessory structure in the front yard
creating a S' front setback, Section 9-501(1).
David Hamilton opened the public hearing.
Board of Adjustment Meeting
November 5, 2024
Page 3
Director of Planning and Zoning, Osei Amo-Mensah presented case to board.
There was discussion amongst the board and staff about when the concrete was poured.
Sandy Collard of 4280 Sunrise Drive, spoke in opposition of the request.
Stephanie Harris, City Attorney, clarified that even if the applicant had applied for the
permit before the structure was erected the same requests would be required, but it would
be in advance of the permit rather than after the fact.
David Hamilton made note of the 3 inputs received in opposition of the request and 1 in
favor that were included in the memo.
No one else spoke in favor or opposition of the request:
Public hearing was declared closed.
Motion was made by Harley Draven, seconded by Ben Vaughan to deny the variances to
the City of Paris Area Regulations and Accessory Building Regulations based on the
following findings. Motion carried 5 ayes - 0 nays.
Findin
1, The carport structure setbacks cannot be met.
2. The lot has to be replated.
3. The request for variances is not in harmony with the general purposes and intent of area
regulations for accessory buildings in residential and apartment districts contained in the
Zoning Ordinance 1710 Subsection 13-101. (a, b, & c), and will not protect the character
of the immediate vicinity of the area.
4. Apart from the variances sort in the required lot front yard, building separation and side
yard set back requirements, there are no special and unique conditions of restricted area of
lot width, that exist on the subject parcel of land, which are applicable to other parcels of
land in the SF -3 Zoning District, and which cause unusual and practical difficulty or
unnecessary hardship to the use of the property with site improvements permitted by the
ordinance with the provision sought here to be varied. The residential lot is consistent with
the adjoining residential lots.
5. The hardship sought to be avoided is the result of (a) the applicant's own actions (self-
imposed or self-created), and no (b) economic or financial "hardship."
6. The provision of the ordinance regulation that are sought to be varied, does not deprive the
applicant of reasonable rights to use the property that are commonly enjoyed by other
residential properties in the SF -3 Residential Zoning District which are required to comply
with these same ordinance provisions.
S. Adjournment.
APPROVED THE 3R° DAY OF DECEMBER, 2024
Board of Adjustment Meeting
November 5, 2024
Page 4
MINUTES OF THE REGULAR MEETING FOR
TAX INCREMENT REINVESTMENT ZONE `TIRZ BOARD
PARIS TEXAS
CITY COUNCIL CHAMBER 107 E. KAUFMAN ST PARIS TEXAS
THURSDAY NOVEMBER 14 2024
4:00 O'CLOCK P.M.
Members present: Cody Head, Chairman; Miles Mathieu, Vice -Chairman; Maureen
Hammond, Reeves Hayter, Pam Norwood, and Dillon Cecil
City Staff: Osei Amo-Mensah, Director of Planning and Community
Development; Stephanie Harris, City Attorney; Skylar Unger,
Deputy City Clerk; and Cheri Bedford, Main Street Coordinator
Members absent: Thomas McMonigle, Secretary
1. Call meeting to order.
Chairman Head called the meeting to order at 4:00 P.M.
2. Citizens' input.
No one came forward during citizens' input.
3. Approve minutes from the meeting on October 10, 2024.
A Motion to approve the minutes as presented was made by Mr. Mathieu and seconded by Ms. Norwood.
Motion carried 6 ayes — 0 nays.
4. Staff update on Forked Pine Consulting's Assistance to the Board in Developing Strategies for Reviewing
and Potentially Amending the Project and Financing Plans for TIRZ No. 1.
City Planner Osei Amo-Mensah provided an update on Forked Pine Consulting's assistance to the board,
noting that the project is progressing as anticipated in the timeline (referenced as Exhibit "A"), despite
some missing documentation. City Attorney Stephanie Harris has been instrumental in obtaining key
information. Forked Pine Consulting is currently reviewing the data collected and conducting additional
research to move the project forward. While the first invoice, totaling $10,000, has not yet been paid, it
will be processed once Mr. Amo-Mensah receives the invoice. The full project status report is referenced
as Exhibit "B". Ms. Harris and Mr. Amo-Mensah answered questions from the board.
5. Discuss the availability of Board Members for the December 12" meeting.
Following a brief discussion about the board members' availability, it was agreed to wait for a response
from Forked Pine before deciding whether a December meeting will be necessary. The board reached a
consensus that, if a meeting is required, all members would be able to attend.
6. Request future agenda items.
There were no future agenda items requested.
7. Adjournment.
Page 1 of 2
There being no further business, a Motion to adjourn was made by Ms. Hammond and seconded by Mr.
Cecil. Motion carried, 6 ayes — 0 nays. Chairman Head adjourned the meeting at 4:11 P.M.
Page 2 of 2
I
co0
N
OC
cn
EXHIBIT "B"
Project Status Report
Forked Pine Consulting
Paris TIRZ #1
As of 11 /13/2024
SU1111 EMY: All aspects of the project are movingforward as anticipated in the timeline, although the project
has one blocker, data acquisition. City staff, especially the City Attorney, have been very responsive and helpful
in working toward a resolution. Contracting was completed last Friday and all other administrative tasks are in
process.
Deliverables List/Status
Final Excel spreadsheet detailing findings of comparative review of the TIRZ from inception to 7/1/2024
Status: While detailed data gathering is underway, see Blocker #1 for details, we anticipate this
process will be concluded shortly after we get the data. As of now, no major issues have been
identified.
2. Root cause analysis of any differences between the projections and actual performance of the TIRZ.
Status: Data gathering underway, see Blocker #1 for details. The original printed model has been
recreated and verified, although the model is very simple and comparisons may be challenging, as
many of the normal assumptions for a model are unavailable. Based on the available information,
we don't anticipate any significant deviations.
3. Compliance review summary showing all the required documentation submitted compared to statutory
and regulatory reporting requirements and detailing any discrepancies.
Status: Ongoing, with initial documentation review completed with no noted deficiencies. The
City Attorney has been diligently working with the State of Texas Comptroller's Office to resolve
some access issues to the online filing system. Resolution is expected to occur soon, and we will
continue to assist as needed.
4. Checklists and timelines for submission of reporting along with sample documentation.
Status: Research mostly completed. Documents will be drafted ahead of final deadline.
5. An excel spreadsheet designed specifically for the Paris TIRZ #1 to allow staff to model anticipated TIRZ
cashflows.
Status: Data gathering underway, see Blocker #1 for details.
6. An excel spreadsheet designed for economic development professionals and staff to model the costs
and potential impacts to the TIRZ for any proposed further TIRZ transactions.
Status: Data gathering underway, see Blocker #1 for details.
Blockers: We've been working with City staff to get parcel level detailed information about the property taxes
for every parcel in the TIRZ. City staff, again led by the City Attorney are working to obtain this information. Four
of the 6 work items are partially or totally blocked until this data is available. It forms the basis for both the review
and the projections for the future. While we currently have adequate time to ingest, analyze and create the
required outputs, additional delays may impact the project timeline as currently agreed.
Item No. 7
TO: Mayor, Mayor Pro Tem, and City Council Members
Robert G. Vine, Interim City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Resolution Naming the Gene Anderson City Hall Annex
DATE: January 13, 2025
BACKGROUND: At its December 9, 2024 meeting, the City Council directed me to prepare a
resolution naming the City Hall Annex after Gene Anderson who has served the city with great
distinction for over 40 years as Finance Director and occasional interim city manager.
STATUS OF ISSUE: It is with great pleasure that I present to you the attached resolution for your
consideration and possible approval.
BUDGET: N/A
RECOMMENDATION: Approve the attached resolution naming the building located at 150 1St
St. SE the Gene Anderson City Hall Annex.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS RENAMING
THE BUILDING LOCATED AT 150 1ST STREET SOUTHEAST THE GENE ANDERSON
CITY HALL ANNEX; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Gene Anderson began serving as the City's Director of Finance on January 4, 1985
and has served in that capacity ever since; and
WHEREAS, in his 40 year tenure with the City, Mr. Anderson has served with distinction, as
evidenced by his department's having been awarded the Certificate of Achievement in Financial
Reporting by the Government Finance Officers Association, an association of governmental financial
officers in the United States and Canada, 24 times and by the City's strong and stable financial
position achieved under his management; and
WHEREAS, Mr. Anderson has also served with distinction as Interim City Manager three
times in addition to his regular duties; and
WHEREAS, Mr. Anderson has made the following major contributions to the City, among
others:
• Writing the City's Cash Reserve Policy;
• Writing the City's Investment Policy;
• Writing the City's Water & Sewer Rate Maintenance Policy;
• Overseeing a multi-year renovation of the City Hall historic building; and
WHEREAS, as other City staff and City Council Members have come and gone, Mr. Anderson
has provided decades of institutional memory for the organization and has assisted the City Council
and staff members in ways too numerous to count; and
WHEREAS, the City owns a building, currently known as the City Hall Annex, located at 150
1st St. SE in the City of Paris; and
WHEREAS, the City Council finds it to be just and fitting that said building be renamed as the
Gene Anderson City Hall Annex in recognition of and thanks for his many years of exemplary service;
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 to this resolution are hereby in all things
approved.
Section 2. That the City Council of the City of Paris, Texas hereby renames the building located
at 150 1st St. SE the Gene Anderson City Hall Annex.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED on this 13th day of January, 2025.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Item No. 8
FAJfflMi=,
TO: Mayor, Mayor Pro Tem, & City Council
Robert Vine, Interim City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: CITY INVESTMENT POLICY 2025
DATE: January 13, 2025
BACKGROUND: As required under the Local Government Code Section 2256.005, the City has
a written investment policy. The policy serves as a guide regarding investment objectives and
strategies. The policy addresses issues such as policy scope, prudence, training, conflicts of
interest, suitable investments, collateralization, diversification, and reporting.
STATUS OF ISSUE: The investment policy states that annually the City Council will review and
re -adopt the investment policy approving any changes. There are no proposed changes to the policy
for the year 2025 except for updating the funds covered by the policy and revising the
collateralization section to exactly match the current State law. The policy complies with Chapter
2256 of the Local Government Code also known as the Public Funds Investment Act.
BUDGET: Not affected by this policy.
RECOMMENDATION: Motion to adopt the City investment policy as submitted.
INVESTMENT POLICY
January 2025
1.0 POLICY AND INVESTMENT STRATEGY
It is the policy of the City of Paris to invest public funds in a manner which will provide first: safety of
principal, second: liquidity, and third: return on investment consistent with the need for safety and
liquidity, fourth: meet the daily cash flow demands of the entity, and fifth: conform to all state and local
statues governing the investment of public funds, including but not limited to, the Public Funds Investment
Act, Chapter 2256, Local Government Code.
Investment strategies for operating funds have as their primary objective to assure that anticipated flows
are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure
which will experience minimal volatility during economic cycles. This may be accomplished by purchasing
high quality, short to medium securities which will complement each other in a laddered maturity structure.
The dollar weighted average maturity target will be two years or less.
Investment strategies for debt service funds shall have as the primary objective the assurance of investment
liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased
shall not have a stated final maturity which exceeds the debt service payment date.
Investment strategies for debt service reserve funds shall have as the primary objective the ability to
generate a dependable revenue stream to the appropriate debt service fund from securities with a low
degree of volatility. Securities should be of high quality and consistent with bond ordinance requirements.
Short to medium maturities generally meet these requirements.
Investment strategies for special projects or special purpose funds will have as their primary objective to
assure that anticipated cash flows are matched with adequate investment liquidity. The stated final
maturity dates of securities held should not exceed the estimated project or purpose completion date.
2.0 SCOPE
This investment policy applies to the funds listed below. These funds are accounted for in the City's
Comprehensive Annual Financial Report.
2.1 Consolidated Cash Funds
2.1.01 General Fund
2.1.03 Cox Field Airport Fund
2.1.04 American Rescue Plan Act Fund
2.1.05 Coronavirus Relief Fund
2.1.06 Tax & Rev CO 2021 Construction Fund
2.1.07 COP Evidence Fund
2.1.08 COP Housing Foundation Fund
2.1.09 Paris Pickleball Project
2.1.10 Water and Sewer Fund
2.1.11 Capital Projects Fund
2.1.12 Main Street Events Fund
2.1.13 Equipment Replacement Fund
2.1.16 TWDB Loan Fund
2.1.17 Main Street Advisory Bd Fund
2.1.18 Main Street BIG Fund
2.1.19 Vacant Building Reg. Fund
2.1.20 Mun. Ct. Local Traffic Fee Fund
2.1.21 Child Safety Fund
2.1.22 Local Truancy & Prevention Fund
2.1.23 PEG Channel Fund
2.1.24 Lake Crook Park Restoration Fund
2.1.25 Grant Fund
2.1.26 Mun. Ct. Jury Fund
2.1.27 Water Contract Fund
2.1.28 Parks Donations
2.1.29 Passing School Bus Fund
2.1.30 Community Development Fund
2.1.31 State Consolidated Fee Fund
2.1.32 Auto Theft Program Fund
2.1.33 Municipal Court Technology Fund
2.1.34 Municipal Court Security Fund
2.1.35 Municipal Court Child Safety Fund
2.1.36 Municipal Court Time Payment Fund
2.1.37 Police Confiscated Funds -Gambling
2.1.38 Police Judicial Forfeitures Fund
2.1.39 Equitable Sharing Forfeitures
2.1.40 Special Purpose Grants -HOT Fund
2.1.41 Grand Theater Donations Fund
2.1.44 GO Bonds 2016 Construction Fund
2.1.46 GO Bonds 2017 Construction Fund
2.1.47 GO Bonds 2018 Construction Fund
2.1.49 Civic Center Construction Fund
2.1.50 W&S Revenue Bond Reserve Fund
2.1.51 TWDB I & S Fund
2.1.53 2010 Tax & Revenue I&S Fund
2.1.54 GO Pension Bonds 2022 I&S Fund
2.1.60 2012 GO Refunding Bonds I&S Fund
2.1.62 GO Bonds 2013 I&S Fund
2.1.63 GO Bonds 2016 I&S Fund
2.1.64 GO Bonds 2017 I&S Fund
2.1.65 GO Bonds 2018 I&S Fund
2.1.67 Hotel Tax I&S Fund
2.1.68 Tax Note Series 2020 I&S Fund
2.1.69 Tax & Rev CO 2021 I&S Fund
2.1.72 Library Memorial Fund
2.1.79 Library Expendable Fund
2.1.80 Library Permanent Fund
2.1.82 W&S Rev Bonds 2022 I& Fund
2.1.83 W&S Rev Bonds 2022 Construction Fund
2.1.85 Consolidated Payroll
2.1.86 TIRZ Fund
2.1.87 Tax & Rev CO 2024 Construction Fund
2.1.88 Tax & Rev CO 2024 I&S Fund
2.2 Non -Consolidated Cash Funds
2.2.00 All Other Funds
2.2.02 Economic Development Fund
2.2.03 TexPool
2.2.04 LOGIC Investment Pool
3. PRUDENCE
Investments shall be made with judgment and care --under circumstances then prevailing --which
persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as well as the probable
income to be derived.
3.1 The standard of prudence to be used by investment officials shall be the "prudent person"
standard and shall be applied in the context of managing an overall portfolio. Investment officers
acting in accordance with written procedures and the investment policy and exercising due diligence
shall be relieved of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely fashion and appropriate action
is taken to control adverse developments. The governing body of the investing entity retains the
ultimate responsibility as fiduciaries of the assets of the entity.
4.0 OBJECTIVE
The primary objectives, in priority order, of the City's investment activities shall be:
4.1 SAFETY: Safety of principal is the foremost objective of the investment program. Investments
of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the
overall portfolio. To attain this objective, diversification is required in order that potential losses on
individual securities do not exceed the income generated from the remainder of the portfolio.
4.2 LIQUIDITY: The City's investment portfolio will remain sufficiently liquid to enable the City
of meet all operating requirements which might be reasonably anticipated.
4.3 RETURN ON INVESTMENTS: The City's investment portfolio will be designed with the
objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with
the City's investment risk constraints and the cash flow characteristics of the portfolio.
Authority to manage the City's investment program is derived from the City's charter and reconfirmed
by adoption of this policy by the City Council. Management responsibility for the investment program
is hereby delegated to the Director of Finance who shall be responsible for all transactions undertaken.
The Finance Director may utilize appropriate staff personnel to assist in this area when necessary.
Procedures and controls to regulate the details of the investment program may be developed by the
Finance Director as needed. The investment officer shall attend at least one training session relating to
the officer's responsibility under the Act within 12 months of assuming duties and complete at least 10
hours of training every two years thereafter. Such training shall be provided by any independent
source outside the City such as the Texas Municipal League or the Government Finance Officers
Association.
6.0 CONFLICTS
Officers and employees involved in the investment process shall refrain from personal business activity
that could conflict with proper execution of the investment program, or which could impair their
ability to make impartial investment decisions. Employees and investment officials shall disclose to the
City Manager any material financial interests in financial institutions that conduct business within this
Jurisdiction, and they shall further disclose any large personal financial/investment positions that could
be related to the performance of the City, particularly with regard to the time of purchases and sales.
The investment officer must file a disclosure statement with the Texas Ethics Commission and the
governing body if the officer has a personal business relationship (as defined in 2256.005 (i) (1-3) with a
business organization offering to engage in an investment transaction with the City. A disclosure
statement must also be filed by the investment officer if the investment officer is related within the
second degree by affinity or consanguinity as determined under Chapter 573 of the Texas Government
Code, to an individual seeking to transact investment business with the entity.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Finance Director will maintain a list of financial institutions authorized to provide investment
services. No public deposit shall be made except in a qualified public depository as established by
state law. All financial institutions and broker/dealers who desire to become qualified bidders for
investment transactions must supply the Finance Director with the following: audited financial
statement, proof of National Association of Security Dealers certification, trading resolution, proof of
state registration, completed broker/dealer questionnaire if requested, and certification of having read
entity's investment policy.
An annual review of the financial condition and registrations of qualified bidders will be conducted by
the Finance Director.
A current audited financial statement is required to be on file for each financial institution and
broker/dealer in which the City of Paris invests.
8.0 AUTHORIZED/SUITABLE INVESTMENTS
The City of Paris is empowered by statue to invest in the Types of securities authorized by Chapter
2256 of the Government Code. Even if allowed by the Public Funds Investment Act, the City of Paris
will not invest in securities known as "collateralized debt obligations" which are pools of debt that
include sub -prime mortgages.
9.0 COLLATERALIZATION
All monies which are deposited into the depository under the provisions of this proposal
shall be continuously secured, in accordance with the laws of the State of Texas: The total
value of eligible security to secure a deposit of public funds must be in an amount not less
than the amount of the deposit of public funds increased by the amount of any accrued
interest and reduced to the extent that the United States or an instrumentality of the United
States insures the deposit.
In addition, the Depository Bank agrees to meet the same security pledge for all funds on
deposit by the Paris Economic Development Corporation.
Evidence of pledged securities to the City and PEDC must be supplied to the City and retained until
new evidence of pledged securities supersedes the previous evidence of pledged securities. The right of
collateral substitution is granted.
10.0 SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements, entered into by the City of
Paris shall be conducted on a delivery -versus -payment (DVP) basis. Securities will be held by a
custodian designated by the Finance Director and evidenced by appropriate documentation.
11.0 DIVERSIFICATION
The City of Paris will diversify its investments by security type and institution. With the exception of
obligations of the United States or its agencies and authorized pools, no more than 50% of the City of
Paris total investment portfolio will be invested in a single financial institution with the exception of its
local depository.
12.0 MAXIMUM MATURITIES
To the extent possible, the City of Paris will attempt to match its investments with anticipated cash flow
requirements. Unless matched to a specific cash flow, the City of Paris will not directly invest in
securities maturing more than 10 years from the date of purchase. However, the City of Paris may
collateralize its repurchase agreements using longer -dated investments not to exceed 15 years to
maturity.
Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments is
made to coincide as nearly as practicable with the expected use of the funds.
13.0 INTERNAL CONTROL
The Finance Director shall establish an annual process of independent review by an external auditor.
This review will provide internal control by assuring compliance with policies and procedures.
14.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout
budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow
needs.
14.1 MARKET YIELD (BENCHMARK): The City of Paris 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 six-month U.S. Treasury Bill and the Average Fed Funds rate.
15.0 REPORTING
The Finance Director is charged with the responsibility of including a market report on investment
activity and returns in the City of Paris' Financial Report. Reports must include all information
required by Section 2256.023 of the statute.
16.0 The market price of acquired investments shall be monitored by using information found in the
Wall Street Journal and/or through Bloomberg Information Services, and/or through a securities
dealer's trading desk.
17.0 INVESTMENT POLICY ADOPTION
The City of Paris investment policy shall be adopted by resolution of the City Council. The policy shall
be reviewed and re -adopted annually by the City Council and any modifications made thereto must be
approved by the City Council.
Item No. 9
TO: Mayor, Mayor Pro -Tem, and City Council
Robert Vine, Interim City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
FISCAL YEAR ENDING 9-30-23
DATE: January 13, 2025
BACKGROUND: Article III Paragraph 33 of the Paris City Charter requires the City of Paris to
have an annual audit prepared by an independent Certified Public Accountant. Our practice is to
provide the Council with a copy of the report when it is completed.
STATUS OF ISSUE: This report provides the City Council with the City's audited financial
condition and reports on the City's financial activities for the year ending 9-30-2023. The City
received the desired "unmodified" opinion on the financial statements which means the auditors
believe that the financial statements present fairly the financial position of the City without the
need to qualify their professional opinion in any way.
BUDGET: N/A
RECOMMENDATION: No action is required by the Council as the governing body is just
receiving this report.
CITY OF PARIS, TEXAS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ended September 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
Fiscal Year Ended September 30, 2023
Prepared By
Finance Department
W.E. Anderson, Director
CITY OF PARIS, TEXAS
Table of Contents
Year Ended September 30, 2023
INTRODUCTORY SECTION
Page Statement
Letter of Transmittal .................... .............................. ............................... I-1
Cityof Paris Organizational Chart ............................... . ... .. ........... . ................. I-7
List of Elected and Appointed Officials ....................... . . . .................. . .......... . ........ I-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 .................................. ............ ... „ ........ 15 2
Fund Financial Statements
Balance Sheet - Governmental Funds............................................................... 16 3
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds .................. 18 4
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ......................................... 20 5
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund................................................................ 21 6
Statement of Net Position - Proprietary Funds ....................................................... 23 7
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds .................... 25 8
Statement of Cash Flows - Proprietary Funds ................................................ . ....... 26 9
Statement of Net Position - Fiduciary Funds .................... . ... .................................. 28 10
Statement of Changes in Net Position - Fiduciary Funds .............. ................................. 29 11
Notes to Financial Statements....................................................................... 30
Required Supplementary Information Schedule
Texas Municipal Retirement System - Schedule of Changes in Net Pension Liability and Related Ratios. , ...... , 78 1
Texas Municipal Retirement System - Schedule of City Pension Contributions ............................. . . 79 2
Paris Firefighters' Relief and Retirement Fund - Schedule of Changes in Net Pension Liability and Related Ratios.... 80 3
Paris Firefighters' Relief and Retirement Fund - Schedule of City Contributions ............................... 81 4
Texas Municipal Retirement System - Schedule of Changes in Total OPEB Liability and Related Ratios........... 82 5
City of Paris Retiree Health Care Plan - Schedule of Changes in Total OPEB Liability and Related Ratios..... ... 83 6
Combining and Individual Nonmajor Fund Statements and Schedules
Nonmajor Governmental Funds....................................................................
84
Combining Balance Sheet - Nonmajor Governmental Funds .............................................
85 7
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds.............................................................. .....
86 8
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -
Special Revenue Fund..........................................................................
87 9
Debt Service Fund.............................................................................
88 10
Capital Projects Fund...........................................................................
89 11
Capital Assets Used in the Operation of Governmental Funds -
Comparative Schedules by Source...................................................................
90 12
CITY OF PARIS, TEXAS
Table of Contents (Continued)
Year Ended September 30, 2023
Page Table
STATISTICAL SECTION.... .... ......:................... ....... ............... ...... .... ...... 91
Financial Trends
Net Position by Component ................. .................. .................. , ................. 92
Changes in Assets/Position......................................................... .... .r......,... 94
Fund Balances of Governmental Funds ....................... . .. . .. . .............. ............... 98
Changes in Fund Balances of Governmental Funds .......................................... . , ...... 100
Revenue Capacity
Property Tax Levies and Collections................................................................. 102
Property Tax Rates - All Direct and Overlapping Governments .......... .... ........ . . , .. , ... , .... 104
Assessed and Estimated Actual Value of Property ......................... ........................ , ... , . 105
Principal Property Taxpayers .............................................. ....................... 107
Debt Capacity
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita .................. ......................... 109 9
Ratio of Outstanding Debt by Type ................................................ ....... ........ 110 10
Direct and Overlapping Governmental Activities Debt ................................ . . ................ 112 11
Legal Debt Margin Information..................................................................... 113 12
Revenue Pledged Coverage - Water and Sewer Revenue Bonds .......................... . .... ...... „ ... , 114 13
Demographic and Economic Information
Demographic and Economic Statistics .................................................. . ............ 115 14
Principal Employers.............................................................................. 116 15
Operating Information
Operating Indicators by Function................................................................... 117 16
Capital Asset Statistics by Function...................................................... . ..... . . ... 119 17
Building Permits at Market Value .................................................. ............. ... . 121 18
Full -Time Equivalent City Government Employees by Function. , .. .. ... ......... , ...... , , .. 122 19
CONTINUING DISCLOSURE INFORMATION
Continuing Disclosure Information..................................................................... 124
OVERALL COMPLIANCE, INTERNAL CONTROLS,
AND FEDERAL AWARDS SECTION ....................... . ... . ..... . ... ....... ,........... 131
Federal:
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards ........................................ , , .. , .......
132
Summary Schedule of Prior Audit Findings...........................................................
134
Schedule of Findings and Questioned Costs...........................................................
135
Corrective Action Plan ............................................................................
137
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance. .......... . ... . ..................
138
Schedule of Expenditures of Federal Awards ............................... . . ... . . . . . ... . .. . .... . ... ..
141
State:
Schedule of Expenditures of State of Texas Awards. . . . .. . ... . ... . ... .............. 142
INTRODUCTORY SECTION
Is
''E
XAS
9 ,,,,.,c�! w� ,P*,"g'w'
December 19, 2024
Mayor Reginald B. Hughes
and Members of the 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, 2023.
The City of Paris is a financial reporting entity as defined by the Government Accounting Standards Board codification
section 2100. As such, it has a separately elected governing body chosen by its citizens in a general, popular election, is a
legally separate primary government, and is fiscally independent of other state and local governments. The financial reporting
entity includes all the funds of the primary government and its component unit, the Paris Economic Development Corporation
(PEDC). More information about PEDC can be found in footnote I.B. which deals with reporting entity topics. There are no
other potential component units.
The primary purpose of this report is to provide the City Council, citizens, financial community, and others with detailed
information concerning the financial condition and performance of the City of Paris. It is strongly recommended that any user
of this report read the Management's Discussion and Analysis included in the financial section of the report. In addition, this
report provides assurance that the City presents fairly its financial position as verified by independent auditors.
THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
The Annual Comprehensive Financial Report of the City of Paris, Texas, for the fiscal year ended September 30, 2023, which
follows, was prepared by the Finance Department. The financial statements have been audited by McClanahan and Holmes,
LLP, CPAs, whose report is included herein. This audit satisfies Article III, Section 33 of the City Charter which requires that
an annual audit of all accounts of the City be made by an independent certified public accountant.
The City Finance Department is responsible for both the accuracy of the presented data and the completeness and fairness of
the presentations, including all disclosures. I believe the data presented is accurate in all material aspects and is presented in a
manner which fairly sets forth the financial position and results of operations of the City. Furthermore, I believe that all
disclosures necessary to enable the reader to gain maximum understanding of the City's financial activity have been included.
I-1
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. The current population
estimate is 24,930.
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 11,811.
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 (some of which are also striped for
pickle ball), 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 2022. The City
operates under the Council/Manager form of government with 7 council members elected from single member districts. The
I-2
Mayor is elected by the Council itself to serve as moderator of the group. The Council members can serve a maximum of
three consecutive 2 year staggered terms. The Mayor and Council appoint the City Manager, the City Attorney, and the
Municipal Judge. The City is a Home Rule City with all powers granted to home rule cities by the constitution and laws of the
State of Texas. The Council enacts legislation, adopts budgets, and determines policies of the City of Paris. The City
Manager executes the laws and administers the government of the City.
Economic Condition and Outlook
Taxable values, as originally certified by the Lamar County Appraisal District, for fiscal year 2023-24 reflect an 8.21%
increase over the 2022-23 values. Building permits for new residential and commercial construction were valued at
$15,332,245 for fiscal year 2022-23. This activity will be reflected in next year's taxable values.
Sales taxes for 2022-23 increased from the prior year by 8.76%. Sales taxes for 2023-24 on a cash basis were 3.77% above the
2022-23 level.
Hotel occupancy taxes were up 11.95% compared to 2021-22.
Franchise fees for 2022-23 were down 2.11% compared to the previous year. The biggest portion of the decrease came from
Solid Waste Street Use Fees.
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 $2,151,720 involving Metro Gate, Lions Head, Universal Fabricating, Rodgers Wade, and Ametsa.
General Fund receipts equaled 124.24% of the budget. General Fund expenditures were 111.03% of the budget. For the 2023-
24 fiscal year, the City Council adopted a tax rate of .47782 cents per $100 of value. This rate is $0.03504 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 8.21%.
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 from 2016 through
2024.
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. At the same time a small low interest $2,900,000 Certificates of Obligation
I-3
issue was made through the Texas Water Development Board. Both 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 this new debt. Likewise a $9,750,000-
bond
9,750,000bond 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 and tax revenue.
Additional bonds were issued in 2024 in the amount of $42,720,000 for Phase Two of the new wastewater treatment plant
project. Also, the City used 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 areas. Programs in this effort include the Auto Theft
Task Force and Justice Assistance Grants 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.
A major renovation of the civic center was recently competed. 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 recently worked together to develop a common
branding strategy to emphasize our unity in economic development and other areas. In a joint public-private partnership the
City and Paris Texas Pickleball joined forces to construct and maintain eight pickleball courts located at the City Sports
Complex.
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 Annual Comprehensive 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
beginning of the fiscal year. Generally, appropriations are legally adopted at the department level. Budgetary controls are
I-4
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 through financial reports provided to them.
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 09-30-23:
Independent Audit
The City Charter requires an annual audit to be made of the accounts, financial records, and transactions of all administrative
departments of the City by a certified public accountant selected by the City Council. The requirement has been complied
with, and the Independent Auditors' Report has been included in this report.
I-5
Moody's
Revenue
Investors
Issue
Tax Supported
Supported
Fund Maturity
Rating Insured
2013 C.O. (TWDB)
$ -
$ 1,410,000
12-15-32
N/A
2013 G.O. Bonds
-
23,520,000
12-15-32
Aa3
2016 G.O. Bonds
-
6,205,000
12-15-36
Aa3
2017 G.O. Bonds
7,380,000
-
06-15-37
Aa3
2018 G.O. Bonds
-
650,000
06-15-38
Aa3
2020 Tax and Rev. C.O. (Civic Center)
1,080,000
-
06-15-30
N/A
2020 G.O. Refunding Bonds
1,400,000
-
12-15-29
Aa3
2020 Tax Notes
580,000
-
06-15-26
N/A
2021 Tax and Rev. C.O.
-
42,645,000
12-15-50
Aa3
2022 GO Pension Bonds
-
11,780,000
06-15-42
Aa3
2022 Water & Sewer System Rev. Bds.
26,795,000
06-15-51
A3
Financed Purchases-Firetrucks
461,737
-
01-28-26
N/A
SuRRMA Loan
99,178
-
06-29-25
N/A
Total
$ ....._.11,000,915
$ 113,005,000
Independent Audit
The City Charter requires an annual audit to be made of the accounts, financial records, and transactions of all administrative
departments of the City by a certified public accountant selected by the City Council. The requirement has been complied
with, and the Independent Auditors' Report has been included in this report.
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
CITY OF PARIS ORGANIZATIONAL CHART
0
I-7
List of Elected and Appointed Officials
Elected Officials
Reginald Hughes - Mayor
Mihir Pankaj — Mayor Pro Tem
Shatara Moore
Gary Savage
Rebecca Norment
Clayton Pilgrim
Rudy Kessel
Almropointed Officials
Grayson Path — City Manager
Robert Vine — Assistant 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
Connie Lawman — Library Director
Sandy Collard — Human Resources
Jason Dyess — Emergency Medical Services
Andrew Mack — Planning and Development
Doug Harris — Utilities Director
Thomas McMonigle—Fire Chief
I-8
FINANCIAL SECTION
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
GEORGE H. STRUVE, CPA
DEBRA J. WILDER, CPA
TEFFANY A. KAVANAUGH, CPA
APRIL J. HATFIELD, CPA
BRITTANY L. MARTIN, CPA
STEVEN W. MOHUNDRO, CPA,
OF COUNSEL
INDEPENDENT AUDITORS' REPORT
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
Report on the Audit of the Financial Statements
Opinions
228 SIXTH STREET S.E.
PARIS, TEXAS 76460
903.784-4316
FAX 903-784.4310
304 WEST CHESTNUT
DENISON, TEXAS 76020
903466-6070
FAX 903-466-6093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-683-6674
FAX 903583-9463
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 of the City
of Paris, Texas (the City), as of and for the year ended September 30, 2023, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
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,
2023, and the respective changes in financial position and, where applicable, cash flows thereof and respective
budgetary comparison schedule for the General Fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note I to the financial statements, in 2023 the City adopted new accounting guidance, GASBS No.
96, Subscription -Based Information Technology Arrangements. Our opinions are not modified with respect to this
matter.
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of the financial statements that'are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards
will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control -related matters that we
identified during the audit.
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
OPEB liability and related ratios, and the schedules of City contributions be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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 inquires of management about the methods of preparing the information and comparing the information
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The combining and individual nonmajor fund financial statements and
schedules and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The 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 schedule of expenditures of federal awards and 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory section, statistical section, and the continuing disclosure information but does not include the basic
financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the
other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2024,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
WcCfanafian and9fohmes, GLOP
Certified Public Accountants
Paris, Texas
December 19, 2024
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,
2023. 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 0.45373 to 0.44278 per $100 of valuation for fiscal year 2022-23'.
• For the 2023-24 fiscal year, the City increased its tax rate to 0.47782 per $100 of valuation. The increase
will go toward debt service.
• City-wide revenues this year exceeded City-wide expenses by $10,339,649 whereas in the previous year
revenues exceeded expenses by $6,900,085. The underlying causes of the higher surplus were an increase
in almost all types of revenue. These increases more than offset the increase in expenses.
• At the end of the fiscal year, the unassigned fund balance for the general fund was $26,253,936 or 71.30%
of total general fund expenditures. The prior year unassigned fund balance was $24,072,369 or 55.31% of
general fund expenditures.
• At the end of the fiscal year, the net position of the proprietary funds was $42,501,397 compared to
$36,177,466 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.
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 three categories: governmental funds, proprietary funds, and fiduciary 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.
Fiduciary Funds
The City of Paris is the trustee, or fiduciary, for certain amounts held on behalf of other entities. All of the City's
fiduciary activities are reported in a separate Statement of Fiduciary Net Position. The activity of this fund is
excluded from the City's other financial statements because the City cannot use these assets to finance its
operations. The City is responsible for ensuring that the assets reported in this fund are used for their intended
purpose.
The basic fiduciary fund financial statements can be found on Statements 10 and 11 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 andfund financial statements. The notes .to the financial statements can be found immediately
after the Statement of Changes in Net Position — Fiduciary Funds in this report.
Other Information.
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City of Paris' progress in funding its obligation to provide pension 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 $103,407,459 at the close of the most recent fiscal year. This
compares to $93,067,810 for the previous year. This was an 11.10% increase in net position.
By far, the largest portion of the City of Paris' net position ($57,789,177 or 55.88%) 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
Governmental Activities
Business-Tm x� e Activities
Total
2022
2023
2022
2023
2022
2023
Assets
Current and Other Assets $
35,493,063
$ 39,469,331
$ 67,030,765
$ 87,538,931
$ 102,523,828
$127,008,262
Capital Assets
40.,589,238
40,044,939
70 544,343
77.979,255
-111,133 581
118,024,194
Total Assets
76.082.301
_ 79w514270_
137 ..575,108
165 518,186
� ,
213.657,409
�..... www
245,032,456
.-,
Deferred Outflows
Related to Asset
Retirement
-
-
2,707,600
5,140,506
2,707,600
5,140,506
Related to Pension
13,873,084
6,725,001
178,764
929,305
14,051,848
7,654,306
Related to OPEB ......
485.320
430,480
38,529
29.693„
.......... 523 849
460,173
Total Deferred Outflows
14,358,404
7,155,481
2,924,893
6,099,504
17,283,297
13,254,985
Long -Term Liabilities
Outstanding
24,336,260
19,678,153
96,587,781
121,895,899
120,924,041
141,574,052
Other Liabilities
1,849,162
2.168„602
6,851388
7092,505
8.700.550
9,261,107
Total Liabilities
26,185422
21.846.755
103,439,169
128„988,404
129,624,591
150,835,159
Deferred Inflows
Related to Pensions
5,168,101
944,110
871,469
58,033
6,039,570
1,002,143
Related to OPEB
361,020
861,431
11,897
69,856
372,917
931,287
Related to Leases
1-,835,818
_........2,1113933_ _
� .. - �
1,835.,818 �
.. 2,111,393
Total Deferred Inflows
7,364,939
3,916,934
883,366
127,889
8,248,305
4,044,823
6
Net Position
Net Investment in
Increase
Capital Assets
28,267,799
31,070,770 20,720,075 26,718,407
48,987,874.
57,789,177
Restricted
6,528,631 _
7,540 275 - -
6,528,631
7,540,275
Unrestricted
22m093 914
22 295,017m_ 15,457.391 15 782,99 0 _
� � � mm
551
37 .305
,�... ...
38„078,007
Total Net Position
$ 56.890.344
$ 60,906,062 $ 36,177,466 $ 42 501,397
$ 93,067,810
$103„407,459
An additional portion of the City of Paris' net position ($7,540,275 or 7.29%) represents resources that are subject to
external restrictions on how they may be used. The balance of unrestricted net position ($38,078,007 or 36.82%)
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 1 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 $4,015,718 or 7.05% during the current fiscal
year. The bulk of this increase was caused by Total general and program revenues were up $5,383,135 (16.38%).
The largest contributors to this increase were program revenues, sales tax, and unrestricted investment earnings.
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
22
�..............................
2023 m
�..-........-......
Decrease) _.-
$ 9,863,420
$ 9,207,529 $
(655,891)
9,650,605
10,496,451
845,846
4,827,601
4,725,373
(102,228)
1,151,124
1,284,639
133,515
279,262
1,369,937
1,090,675
1,548,315
1,012,657
(535,658)
111,727
170,071
58,344
10,808 24614
599 606
3,791,360
40 300
$ 42,866,263 $
4k25 963
The following table provides a summary of the City's operations for the years ending 2022 and 2023 for both
governmental and business -type activities..
City of Paris
Changes in Net Position
Business -Type Activities
Business -type activities increased the City of Paris' net position by $6,323,931. This increase was interest earnings on
investments and property taxes used to pay some business -type debt.
Financial Analysis of the Government's Funds
As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
8
Governmental Activities
°V�..erm
. ...,..
Business .WL Lrg e Activities
_ _........
Total
2022
2023
_�
2022
2023
2022
.......
2023.
Revenues
.. __..
Program Revenues
Charges for Services
$ 9,189,299
$ 11,972,295
$ 18,397,839
$ 19,633,034
$27,587,138
$ 31,605,329
Operating Grants and
Contributions
522,574
1,536,446
1,371,533
998,533
1,894,107
2,534,979
Capital Grants and
Contributions
1,096,373
1,090,865
-
62,500
1,096,373
1,153,365
General Revenues
Property Taxes
9,863,420
9,207,529
-
1,228,894
9,863,420
10,436,423
Sales Taxes
9,650,605
10,496,451
-
-
9,650,605
10,496,451
Franchise Taxes
4,827,601
4,725,373
-
4,827,601
4,725,373
Hotel Occupancy
Tax
1,151,124
1,284,639
-
-
1,151,124
1,284,639
Unrestricted
Investment Earnings
279,262
1,369,937
(1,376,170)
3,248,285
(1,096,908)
4,618,222
Other
1,660,042
1,182,728
66,138
38,800
1,726,18
1.221,528
Total Revenues
3....
8 240,300
42,866,263
..._. 18,459,340
25,,210,046
_56-09,6_4"067
68 076,309
Expenses
General Government
7,891,210
5,275,865
-
-
7,891,210
5,275,865
Public Safety
12,265,360
13,157,874
-
-
12,265,360
13,157,874
Public Works
8,186,910
9,148,859
-
-
8,186,910
9,148,859
Health
3,781,493
9,029,457
-
-
3,781,493
9,029,457
Culture and Recreation
774,910
932,113
-
-
774,910
932,113
Other
-
-
-
-
-
-
Cox Field
1,099,517
1,109,416
-
-
1,099,517
1,109,416
Interest on Long -Term
Debt
52,281
39,542
-
-
52,281
39,542
Water and Sewer
-
-
15,747,874
19,043.534
15,747,874
19,043,534
Total Expenses
34.051,681
38 693 126
15.747,874
.534
19 043m
- 49 799 555
57.736 660
..
Increase (Decrease) in
Net Position Before
Transfers
4,188,619
4,173,137
2,711,466
6,166,512
6,900,085
10,339,649
Transfers/Special
rans ers S ecial Items
11,746,203
915 9
7,41)
. _
(11.746,203)
� 157419
-
-
Increase(Decrease)in
Net Position
15,934,822
4.015.718
(9,034,737)
6,323,931
6,900,085
10,339,649
Net Position, Beginning
40,667,652
56,890,344
45,212,203
36,177,466
85,879,855
93,067,810
Prior Period Adjustment
287,870
-
-
-
287,870
-
Net Position, Ending
$56 890 3. MM.
..mm 44
-,�
$ 60 906 062
$ 36 177 466
.. ...,..... _w_. -.._
_
$ 4 2,501,397
$_93,087,810
..............
$ 103,407.„459
Business -Type Activities
Business -type activities increased the City of Paris' net position by $6,323,931. This increase was interest earnings on
investments and property taxes used to pay some business -type debt.
Financial Analysis of the Government's Funds
As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
8
Governmental Funds
The focus of the City of Paris' governmental funds is to provide 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
Prepaid Items
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
2022
2023
$ 35,565,019 $ 39,340,134
1,833,188
2,579,793
248,423
145,724
98,883
1,799,656
2,436,202
1,316,348
746,789
130,753
79,148
223,467
2,175,610
775,770
275,122
100,530
2,002,722
2,942,370
1,408,798
798,716
287,139
81,211
238,210
23,926,645 26,253,936
31,152,03834,388,754
$ 35,565,019 $ 39,340,134
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund
balances of $34,388,754. Approximately 76.34% of this total amount ($26,253,936) 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 ($100,530), 2) pay debt service ($2,002,722), 3) inventories ($275,122), 4) law
enforcement ($1,408,798), 5) library ($81,211), 6), Public Education ($798,716), 7) capital projects ($2,942,370);
and 8) Community Development ($525,349).
W
Revenues
Expenditures
Deficiency of Revenues Over (Under)
Expenses
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Increase (Decrease) in Inventory
Fund Balances — Beginning
Prior Period Adjustment
Fund Balances — Ending
General Fund
Governmental Funds
Revenues, Expenditures, and Changes in
. Fund Balances
2022
2023
$ 38,100,335 $ 42,785,984
47,638,067 _.... ._w 39,833 361
(9,537,732) 2,952,623
12,180,391 284,093
2,642,659
28,221,509
287,870
�$ 31,152,038
3,236,716
31,152,038
$ 34,388,754
The General Fund is the chief operating fund of the City of Paris. At the end of the current fiscal year, unassigned
fund balance of the general fund was $26,253,936 ($24,072,369 the previous year), while total fund balance reached
$27,329,955 ($25,071,442 the previous year). The increase in the fund balance of the general fund was primarily
due to an improved cash position. As a measure of the general fund's liquidity, it may be useful to compare both
unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents
71.30% of total general fund expenditures, while total fund balance represents 74.22% 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 and general fund types. Statement 6
combines these funds and provides a budget to actual comparison.
The final appropriation of the general fund types in total was overspent by $3,659,375 ($11,635,719 overspent the
previous year). This 11.03% variance was due to a large EMS bad debt expense General fund type revenues were
over budget by 24.24% or $7,663,988 ($6,065,087 last year). Higher than expected sales tax collections and
grossing up EMS billings from a cash basis to an accrual basis account for the variance.
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 $2,938,214
($2,432,341 last year). This increase was due mainly to a positive revenue vs. expense comparison and a one-time
transfer in of funds. Variances from year to year are common in this fund as projects are approved on a year-to-year
basis by the City Council.
10
Debt Service Fund
The Debt Service Fund has a total fund balance of $2,002,722 ($1,799,656 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 $203,066 ($192,987 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 $1,079,215 in the current fiscal
year ($1,644,776 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 $15,782,990 ($15,457,391
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,
2023 amounts to $117,454,141 ($110,906,788 the previous year). Both amounts are net of accumulated
depreciation. This investment in capital assets includes land, buildings, improvements, machinery and equipment,
park facilities, roads, highways, and bridges.
Land
Buildings and
System
Improvements
Other than
Buildings
Machinery,
Furniture,
and
Equipment
Infrastructure
Construction
in Progress
Water Rights
— Net
Total
Governmental Activities
. 2022wwww 2023
$ 6,101,909 $ 6,142,418
9,652,918 11,057,889
Net Capital Assets
Business -T lie Achvrties
2022 2023
$ 339,620 $ 339,620
23,609,694 56,826,303
.Total
2022 2023
$ 6,441,529 $ 6,482,038
33,262,612 67,884,192
2,130,906
1,902,078
-
-
2,130,906
1,902,078
4,819,859
4,978,358
1,771,306
2,608,174
6,591,165
7,586,532
16,172,728
15,273,977
-
-
16,172,728
15,273,977
1,484,125
311,377
41,652,434
14,878,290
43,136,559
15,189,667
-
-2
............_
.......3,135657
3,171.89
3,135„657
$40,362,445
$39666,097
$70,544,343
$77,788,044
$110,906,788
$117,454,141
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 of Paris has total debt outstanding in the amount of $124,005,915 (includes two financed purchases). Of
this amount, $11,000,915 comprises debt being paid for by property tax or hotel tax revenues, and $113,005,000
represents bonds being paid for by water and sewer revenues.
11
$ 11,000,915 $113,005,000
Paris' bond debt increased by $21,368,370 during the fiscal year. This was due to the $26,795,000 W&S Revenue
Bonds issued for the purpose of constructing a new wastewater treatment plant. This new debt was offset somewhat
by principal payments made on the previously issued debt. The City's underlying bond rating from Moody's is Aa3.
The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of
assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has
traditionally allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of
$0.44278 per $100 valuation for the 2022-23 fiscal year. This rate was broken down into $0.34377 per $100
valuation for operations and $0.09901 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 6.60% of its debt capacity. Additional information
on the City of Paris' long-term debt can be found in note IV. K. of the Notes to the Financial Statements.
Economic Factors and Next Year's Budgets and Rates
• Sales tax revenues are projected to grow 3.5% in the coming year.
• New construction amounted to 15 residential units and 4 commercial units.
• Local population growth is expected to be minimal.
• The debt tax rate is expected to increase $0.05 per $100 of value for debt services while the O&M rate is
expected to decrease $0.02 per $100 of value for operations.
• Franchise fees are expected to remain stable.
All of these factors were considered in preparing the City of Paris' budget for 2023-24.
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
Moody's
Revenue
Final
Investors
Issue _.
Tax Supprted
Supportedm
Maturity
Ratm�
2013 C.O.s (TWDB)
$ -
$ 1,410,000
.06-15-2032
N/A
2013 G.O. Bonds
-
23,520,000
12-15-2032
Aa3
2016 G.O. Bonds
-
6,205,000
12-15-2036
Aa3
2017 G.O. Bonds
7,380,000
-
06-15-2037
Aa3
2018 G.O. Bonds
-
650,000
09-30-2028
Aa3
2020 Tax and Rev C.O.s
1,080,000
-
06-15-2030
N/A
2020 G.O. Refunding Bonds
1,400,000
-
12-15-2029
Aa3
2020 Tax Notes
580,000
-
06-15-2026
N/A
2021 Tax & Rev. C.O.s
-
42,645,000
12-15-2050
Aa3
2022 GO Pension Bonds
-
11,780,000
06-15-2042
Aa3
2022 Water & Sewer Rev. Bds
-
26,795,000
06-15-2051
A3
SuRRMA Loan
99,178
-
06-29-2025
N/A
Financed Purchases — Firetrucks
461,737
-
01-28-2026
N/A
$ 11,000,915 $113,005,000
Paris' bond debt increased by $21,368,370 during the fiscal year. This was due to the $26,795,000 W&S Revenue
Bonds issued for the purpose of constructing a new wastewater treatment plant. This new debt was offset somewhat
by principal payments made on the previously issued debt. The City's underlying bond rating from Moody's is Aa3.
The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of
assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has
traditionally allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of
$0.44278 per $100 valuation for the 2022-23 fiscal year. This rate was broken down into $0.34377 per $100
valuation for operations and $0.09901 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 6.60% of its debt capacity. Additional information
on the City of Paris' long-term debt can be found in note IV. K. of the Notes to the Financial Statements.
Economic Factors and Next Year's Budgets and Rates
• Sales tax revenues are projected to grow 3.5% in the coming year.
• New construction amounted to 15 residential units and 4 commercial units.
• Local population growth is expected to be minimal.
• The debt tax rate is expected to increase $0.05 per $100 of value for debt services while the O&M rate is
expected to decrease $0.02 per $100 of value for operations.
• Franchise fees are expected to remain stable.
All of these factors were considered in preparing the City of Paris' budget for 2023-24.
Requests for Information
This financial report is designed to provide a general overview of the City of Paris' finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or
requests for additional information should be addressed to the Office of the Finance Director, 135 S.E. First Street,
City of Paris, Texas 75460.
12
CITY OF PARIS, TEXAS
Statement of Net Position
September 30, 2023
Statement 1
The accompanying notes to the financial statements are an integral part of this statement.
13
. Component
Primiirv, Government
Unit
Govemmental
Business -Type
Economic
Activities
Activities
Total
Development
Assets
Cash and Cash Equivalents $
12,386,680
$ 24,475,834
$ 36,862,514
$ 1,349,857
Investments
10,722,523
569,256
11,291,779
2,235,925
Receivables (Net of Allowance
for Uncollectibles)
6,617,068
3,193,640
9,810,708
367,186
Internal Balances
70,000
(70,000)
-
-
Note Receivable
2,247,922
-
2,247,922
-
Leases Receivable
2,174,181
-
2,174,181
-
Inventories
275,122
810,998
1,086,120
-
Prepaid Assets
440,407
64,828
505,235
8,737
Net Pension Asset
214,546
-
214,546
-
Restricted Assets
Cash and Cash Equivalents
830,352
5,959,024
6,789,376
-
Investments
2,711,540
52,535,351
55,246,891
-
Due from Other Governments
778,990
-
778,990
-
Land Development Costs
-
-
-
5,032,692
Water Rights (Net of
Accumulated Amortization)
-
3,135,657
3,135,657
-
Capital Assets Not
Being Depreciated
Land
6,142,418
339,620
6,482,038
-
Construction in Progress
311,377
14,878,290
15,189,667
92,410
Capital Assets (Net of
Accumulated Depreciation)
Buildings and System
11,057,889
56,826,303
67,884,192
-
Improvements Other Than
Buildings
1,902,078
-
1,902,078
-
Machinery and Equipment
4,978,358
2,608,174
7,586,532
-
Infrastructure
15,273,977
-
15,273,977
-
Right -to -Use Assets, Net of Amortization
378,842
191,211
570,053
-
Total Assets
79,514,270
165,518,186
245,032,456
9,086,807
Deferred Outflows of Resources
Deferred Outflows Related to Asset
Retirement Obligation
-
5,140,506
5,140,506
-
Deferred Outflows Related to Pensions
6,725,001
929,305
7,654,306
-
Deferred Outflows Related to OPEB
430,480
29,693
460,173
-
Total Deferred Outflows of Resources
7,155,481
6,099,504
13,254,985
-
The accompanying notes to the financial statements are an integral part of this statement.
13
CITY OF PARIS, TEXAS
Statement of Net Position
September 30, 2023
Statement 1
(Continued)
The accompanying notes to the financial statements are an integral part of this statement.
14
Component
Prim°art, Government
Unit
Governmental
Business -Type
Economic
Activities
Activities
Total
Develol ment
Liabilities
Accounts Payable and
Accrued Liabilities
2,089,561
2,672,912
4,762,473
10,927
Accrued Interest Payable
78,341
1,297,036
1,375,377
10,917
Due to Custodial Fund
700
-
700
-
Uneamed Revenue
-
2,037,933
2,037,933
-
Customers' Deposits
-
1,084,624
1,084,624
-
Intergovernmental Payable
-
-
-
20,206
Noncurrent Liabilities
Due Within One Year
Compensated Absences
135,637
22,277
157,914
-
Bonds and Notes Payable
1,127,835
5,415,000
6,542,835
148,337
Right -to -Use Liability
78,167
36,772
114,939
-
Due in More Than One Year
Compensated Absences
1,162,078
200,496
1,362,574
-
Bonds and Notes Payable
10,010,464
109,841,698
119,852,162
2,099,585
Right -to -Use Liability
267,798
130,752
398,550
-
Asset Retirement Obligation
-
5,517,834
5,517,834
-
Net Pension Liability
2,884,195
566,443
3,450,638
-
Total OPEB Liability
4,011,979
164,627
4,176,606
-
Total Liabilities
21,846,755
128,988,404
150,835,159
2,289,972
Deferred Inflows of Resources
Deferred Inflows Related to Pensions
944,110
58,033
1,002,143
Deferred Inflows Related to OPEB
861,431
69,856
931,287
Deferred Inflows Related to Leases
2,111,393
-
2,111,393
Total Deferred Inflows of Resources
3,916,934
127,889
4,044,823
Net Position
Net Investment in Capital Assets
31,070,770
26,718,407
57,789,177
92,410
Restricted for
Capital Projects
2,942,370
-
2,942,370
-
Debt Service
2,002,722
-
2,002,722
2,247,922
Law Enforcement
1,408,798
-
1,408,798
-
Public Education
798,716
-
798,716
-
Community Development
287,139
-
287,139
-
Industrial Incentives
-
-
-
2,642,320
Land Development Costs
-
-
-
5,032,692
Permanent Library Funds
Nonexpendable
100,530
-
100,530
-
Unrestricted
22,295,017
15,782,990
38,078,007
(3,218,509)
Total Net Position
$ 60,906,062
$ 42,501,397
$ 103,407,459
$ 6,796,835
The accompanying notes to the financial statements are an integral part of this statement.
14
CITY OF PARIS, TEXAS
Statement of Activities
Year Ended September 30, 2023
Statement 2
The accompanying notes to the financial statements are an integral part of this statement.
15
Prourum Revenues
Net i Ex )ense 1 Revenue and Cham;es in Net Position
Operating
Capital
Prim in, Government
Com 1 i:nit
Charges for
Grants and
Grants and
Governmental
Business -Type
Economic
Functions/ProL,i ams
Expenses Services
Contributions
Contributions
Activities
Activities
TotalD,
eyelo anent..
Primary Government
Governmental Activities
General Government
$ 5,275,865 $ 513,883
$ 1,093,790
$ 234,770
$ (3,433,422)
$ -
$ (3,433,422)
$
Public Safety
13,157,874 317,331
165,308
83,199
(12,592,036)
-
(12,592,036)
-
Public Works
9,148,859 1,479,235-
723,974
(6,945,650)
-
(6,945,650)
-
Health
9,029,457 8,745,253
-
(284,204)
-
(284,204)
-
Culture and Recreation
932,113 75,814
2,348
(853,951)
(853,951)
Cox Field Airport
1,109,416 840,779
275,000
48,922
55,285
-
55,285
-
InterestonLong-TermDebt
39,542 -
-
-
p39,5428
&39.5421
-
TotalGovernmentalAchvnhes
38,693,126 11,972,295
1,536,446
1,090,865
G24,093,520p
-
r24093.520i
-
Business -Type Activities
Water and Sewer
19,043,534 19,633,034
998,533
62,500
1,650,533
1,650,533
-
Total Business -Type Activities
19,043,534 19,633,034
998,53362,500
1650,533
.. ......
1,650.533
_...
Total Primary Government
$ 57,736,660 $ 31,605,329
$ 2,534,979
$ 1,153,365
(24,093,520)
1,650,533
(22,442,987)
Component Unit
Economic Development
$ 2,295,797 $ -
$ -
$
(2,295,797)
General Revenues
Property Taxes
9,207,529
1,228,894
10,436,423
-
Sales Taxes
10,496,451
-
10,496,451
2,099,294
Franchise Taxes
4,725,373
-
4,725,373
-
Hotel Occupancy Taxes
1,284,639
-
1,284,639
-
Unrestricted Investment Earnings
1,369,937
3,248,285
4,618,222
181,473
Miscellaneous
1,012,657
1,012,657
25,000
Gain on Disposal of Assets
170,071
38,800
208,871
-
Transfers
157,419 p
157,419
-- -KZ_73
_ .-w36:
_- _..
Total General Revenues and Transfers
28.109 238
9_g.-
4�.
326.
2�-
Changes in Net Position
4,015,718
6,323,931
10,339,649
9,970
NetPosition- Beginning
56,890,344
36,177,466
93,067,810
6,786,865
Net Position - Ending
$ 60,906,062
$ 42,501,397
$ 103,407,459
$ 6,796,835
The accompanying notes to the financial statements are an integral part of this statement.
15
CITY OF PARIS, TEXAS
Balance Sheet - Governmental Funds
September 30, 2023
Statement 3
The accompanying notes to the financial statements are an integral part of this statement.
16
Total
Nonmajor
Total
Debt
Capital
Governmental
Governmental
General
Service
Pro,�ects
Funds
Funds
Assets
Cash and Cash Equivalents
$
8,645,219
$
1,913,962
$ 968,134
$ 1,689,717
$
13,217,032
Investments
11,167,078
-
1,970,080
296,905
13,434,063
Receivables (Net)
Accounts
3,797,046
-
-
9,977
3,807,023
Taxes
2,750,805
59,240
-
-
2,810,045
Leases
1,349,811
-
824,370
2,174,181
Notes
2,247,922
-
-
-
2,247,922
Inventories
273,147
-
-
1,975
275,122
Prepaid Items
439,024
-
-
1,383
440,407
Due from Other Funds
-
72,637
-
82,712
155,349
Due from Other Governments
730,068
-
-
48,922
778,990
Total Assets
$
31,400,120
$--2,045,83
9
$ 2,938,214
$ 2,955,961
$
39,340,134
Liabilities, Deferred Inflows, and Fund Balances
Liabilities
Accounts Payable and Accrued Liabilities
$
2,053,734
$
-
$ -
$ 35,827
$
2,089,561
Due to Other Funds
86,049
-
-
-
86,049
Total Liabilities
2,139,783,
-
-
35827
2,175,610
Deferred Inflows of Resources
Unavailable Revenue - Property Taxes
621,260
43,117
-
-
664,377
Unavailable Revenue - Leases
1,309,122
-
-
802,271
2,111,393
Total Deferred Inflows of Resources
1,930,382
43,117
-
802,271
2,775,770
Fund Balances
Nonspendable
Inventory
273,147
-
-
1,975
275,122
Permanent Library Funds
-
-
-
100,530
100,530
Restricted for
Debt Service
-
2,002,722
-
-
2,002,722
Capital Projects
4,156
-
2,938,214
-
2,942,370
Law Enforcement
-
-
-
1,408,798
1,408,798
Public Education
798,716
-
-
-
798,716
Community Development
-
-
-
287,139
287,139
Assigned
Library
-
-
-
81,211
81,211
Community Development
-
-
-
238,210
238,210
Unassigned: General Fund
26,253,936
-
-
-
26,253,936
Total Fund Balances
27,329,955
2,002,722
2,938,214
2,117,863
34,388,754
Total Liabilities, Deferred
Inflows and Fund Balances
$
31,400,120
$
2,045,839
$ 2,938,214
$ 2,955,961
$
39 340,134
The accompanying notes to the financial statements are an integral part of this statement.
16
CITY OF PARIS, TEXAS Statement 3
Balance Sheet - Governmental Funds (Continued)
September 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:
Fund Balances - Total Governmental Funds $ 34,388,754
Amounts reported for governmental activities in the statement of net position are different because:
Capital and right -to -use assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. (Net of Accumulated Depreciation/Amortization) 40,044,939
Other long-term assets are not available to pay for current period expenditures and, therefore,
are deferred or not reflected in the funds. 664,377
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported in the funds. (12,860,320)
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 $2,884,195, a net pension asset in the amount of $214,546,
a Deferred Outflow of Resources in the amount of $6,725,001, and a Deferred Inflow of Resources in the amount
of $944,110. This amounted to an increase in Net Position of $3,111,242. 3,111,242
Included in noncurrent liabilities is the recognition of the City's proportionate share of the net OPEB liability
required by GASB 75 in the amount of $4,011,979, a Deferred Outflow of Resources in the amount of
$430,480, and a Deferred Inflow of Resources in the amount of $861,431. This amounted to a decrease
in Net Position of $4,442,930. (4,442,930)
Net Position of Governmental Activities $ 60,906,062
The accompanying notes to the financial statements are an integral part of this statement.
17
CITY OF PARIS, TEXAS Statement 4
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2023
Total
Nonmajor Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Revenues
Taxes
Property
Sales
Franchise
Hotel Occupancy
Licenses and Permits
Fines and Fees
Leases
Charges for Services
Use of Money and Property
Sanitation
Health
Intergovernmental
Other
Total Revenues
Expenditures
Current
General Government
Public Safety
Public Works
Health
Culture and Recreation
Cox Field Airport
Other
Debt Service
Principal
Interest
Capital Outlay
General Government
Public Safety
Public Works
Health
Cox Field Airport
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
$ 8,207,911
$ 1,079,215
$ -
$ -
$ 9,287,126
10,496,451
-
-
-
10,496,451
4,725,373
-
-
-
4,725,373
949,983
284,814
-
49,842
1,284,639
484,807
-
-
-
484,807
426,856
-
-
28,373
455,229
81,361
-
-
99,258
180,619
-
-
-
848,777
848,777
950,902
144,595
161,912
112,528
1,369,937
1,461,058
-
-
-
1,461,058
8,733,472
-
-
-
8,733,472
2,051,423
-
-
341,118
2,392,541
710,472
-
234,770
120,713
1,065,955
39,280,069
1,508,624
396,682
1,600,609
42,785,984
2,412,943
-
-
40,798
2,453,741
12,479,429
-
-
2,968
12,482,397
6,817,178
-
-
-
6,817,178
8,717,240
-
-
-
8,717,240
804,955
-
-
8,193
813,148
-
-
-
975,641
975,641
11936,078
-
-
-
1,936,078
167,801
1,028,728
-
-
1,196,529
27,354
276,830
-
-
304,184
1,386,613
-
299,809
-
1,686,422
689,772
-
-
-
689,772
1,060,768
-
1,000
85,180
1,146,948
323,283
-
-
-
323,283
-
-
-
290,800
290,800
36,823,414
1,305,558
300,809
1,403,580
39,833,361
2,456,655
203,066
95,873
197,029
2,952,623
The accompanying notes to the financial statements are an integral part of this statement.
18
CITY OF PARIS, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2023
Other Financing Sources (Uses)
Inception of Lease
Inception of Subscription -Based IT
Arrangement
Proceeds from Sale of Capital Assets
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Changes
in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
Statement 4
(Continued)
The accompanying notes to the financial statements are an integral part of this statement.
19
Total
Nonmajor
Total
Debt
Capital
Governmental
Governmental
General
Service
Projects
Funds
Funds
13,421
-
-
-
13,421
218,091
-
-
-
218,091
210,000
-
-
-
210,000
1,183,111
-
410,000
105,915
1,699,026
(1,822,765)
-
-
(33,680)
(1,856,445)
(198,142)
-
410,000
72,235
284,093
2,258,513
203,066
505,873
269,264
3,236,716
25,071,442
1,799,656
2,432,341
1,848,599
31,152,038
27,329,955
$ 2,002,722
2,938,214
$ 2938214
$ 2117863
2,117,863
$
34,388,754-,
The accompanying notes to the financial statements are an integral part of this statement.
19
CITY OF PARIS, TEXAS Statement 5
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2023
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) $ 3,236,716
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. This is the amount by which capital outlays exceeded
depreciation in the current period. (694,333)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales and
donations) is to decrease net position. 150,034
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in governmental funds. (79,598)
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. 9,589
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. (46,857)
Pension expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred. 302,693
OPEB expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred. 150,298
The issuance of long-term debt 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. 987,176
Change in net position of governmental activities (Statement 2). $ 4,015,718
The accompanying notes to the financial statements are an integral part of this statement.
20
CITY OF PARIS, TEXAS
Statement of. Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
General Fund
Year Ended September 30, 2023
REVENUES
Property Taxes
Sales Taxes
Franchise Taxes
Hotel Occupancy Taxes
Licenses and Permits
Fines and Fees
Leases
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
$ 8,280,000
9,000,000
4,524,150
900,000
215,800
360,800
82,800
1,460,450
3,425,000
3,062,281
304,800
31,616,081
2,014,900
590,406
378,097
248,497
205,321
522,119
3,959,340
7,454,264
5,352,674
12,806,938
2,632,228
299,328
262,470
1,424,128
1,426,550
1,700,173
484,902
400,001
8,629,780
$ 8,280,000
9,000,000
4,524,150
900,000
215,800
360,800
82,800
1,460,450
3,425,000
3,062,281
304,800
31,616,081
2,079,900
618,106
402,097
251,997
205,321
772,719
4,330,140
7,464,264
5,594,674
13,058,938
2,656,628
396,933
232,470
1,486,128
1,426,550
1,276,173
474,902
370,001
8,319,785
Actual
$ 8,207,911
10,496,451
4,725,373
949,983
484,807
426,856
81,361
950,902
1,461,058
8,733,472
2,051,423
710,472
The accompanying notes to the financial statements are an integral part of this statement.
21
Statement 6
Variance with
Final Budget
$ (72,089)
1,496,451
201,223
49,983
269,007
66,056
81,361
868,102
608
5,308,472
(1,010,858)
405,672
39,280,069 7,663,988
1,260,462
618,372
384,958
276,164
207,965
1,051,634
3,799,555
7,766,463
5,597,893
13,364,356
2,399,829
394,368
234,685
1,487,027
1,351,982
1,181,075
460,511
368,469
7,877,946
819,438
(266)
17,139
(24,167)
(2,644)
(278,915)
530,585
(302,199)
(3,219)
(305,418)
256,799
2,565
(2,215)
(899)
74,568
95,098
14,391
1,532
441,839
Other Financing Sources (Uses)
Inception of Lease
CITY OF PARIS, TEXAS
-
Statement 6
Statement of Revenues, Expenditures, and Changes in Fund Balance
(Continued)
Budget and Actual
Arrangement
General Fund
-
218,091
218,091
Year Ended September 30, 2023
60,000
60,000
1,183,111
Budgeted Amounts
Transfers Out
Variance with
-
Original Final
Actual
Final Budget
EXPENDITURES (Continued)
-
210,000
210,000
Health
4,040,676 4,422,181
9,040,523
(4,618,342)
Culture and Recreation
Sources (Uses)
60,000
60,000
Paris Band
23,050 23,050
21,432
1,618
Library Services
767,205 948,710
783,523
165,187
Total Culture and Recreation
790,255 971,760
804,955
166,805
Other
1,861,234 2,061,234
1,936,078
125,156
Total Expenditures
32,088,223 33,164,038
36,823,413
(3,659,375)
Excess (Deficiency) of Revenues
Over Expenditures
(472,142) (1,547,957)
2,456,656
4,004,613
Other Financing Sources (Uses)
Inception of Lease
-
-
13,421
13,421
Inception of Subscription -Based IT
Arrangement
-
-
218,091
218,091
Transfers In
60,000
60,000
1,183,111
1,123,111
Transfers Out
-
-
(1,822,765)
(1,822,765)
Proceeds from Sale of Assets
-
-
210,000
210,000
Total Other Financing
Sources (Uses)
60,000
60,000
(198,142)
(258,142)
Net Changes in Fund Balance
(412,142)
(1,487,957)
2,258,514
3,746,471
Fund Balance - Beginning
25,071,442
25,071,442
25,071,442
-
Fund Balance - Ending $
24,659,300
$ 23,583,485
$ 27,329,956 $
3,746,471
The accompanying notes to the financial statements are an integral part of this statement.
22
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Funds
September 30, 2023
ASSETS
Current Assets
Cash and Cash Equivalents
Restricted Cash and Cash Equivalents
Total Cash and Cash Equivalents
Accounts Receivable, Net
Accrued Interest Receivable
Inventories
Prepaid Items
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
Subscription -Based IT Asset
Less Accumulated Depreciation/Amortization
Total Capital Assets (Net of Accumulated Depreciation/Amortization)
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.
23
Statement 7
Water and Sewer
Enterprise Fund
$ 24,475,834
5,959,024
30,434,858
2,930,093
263,547
810,998
64,828
34,504,324
45,061,020
7,474,331
569,256
53,104,607
3,135,657
339,620
14,878,290
32,991,325
82,033,482
28,300,115
6,218,660
2,092,872
207,587
(92,218,353
74,843,598
131,083,862
165,588,186
5,140,506
929,305
29,693
6,099,504
CITY OF PARIS, TEXAS Statement 7
Statement of Net Position (Continued)
Proprietary Funds
September 30, 2023
Noncurrent Liabilities
Bonds Payable - Noncurrent Portion
Water and Sewer
Notes Payable - Noncurrent Portion
Enterprise Fund
LIABILITIES
130,752
Current Liabilities
200,496
Accounts Payable and Accrued Liabilities
2,672,912
Accrued Interest Payable
1,297,036
Due to Other Funds
70,000
Customers' Deposits
1,084,624
Notes Payable - Current Portion
1,885,000
Bonds Payable - Current Portion
3,530,000
Right to Use Liability - Current Portion
36,772
Accrued Compensated Absences - Current Portion
22,277
Unearned Revenue
2,037,933
Total Current Liabilities
12,636,554
Noncurrent Liabilities
Bonds Payable - Noncurrent Portion
69,081,698
Notes Payable - Noncurrent Portion
40,760,000
Right -to -Use Liability - Noncurrent Portion
130,752
Accrued Compensated Absences - Noncurrent Portion
200,496
Asset Retirement Obligation
5,517,834
Net Pension Liabilities
566,443
Net OPEB Liabilities
164,627
Total Noncurrent Liabilities
116,421,850
Total Liabilities
129,058,404
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions
58,033
Deferred Inflows Related to OPEB
69,856
Total Deferred Inflows
127,889
NET POSITION
Net Investment in Capital Assets
26,718,407
Unrestricted
15,782,990
Total Net Position
$ 42.501,397
The accompanying notes to the financial statements are an integral part of this statement.
24
.CITY OF PARIS, TEXAS
Statement 8
Statement of Revenues, Expenses, and Changes in Fund Net Position
1,559,712
Proprietary Funds
4,047,125
Year Ended September 30, 2023
1,042,052
Sundry Charges
Water and Sewer
Bad Debt Expense
Ente rise Fund
Operating Revenues
434,233
Charges for Sales and Services
2,672,591
Water Sales and Taps
$ 9,123 961
Sewer Charges and Taps
91983,741
Sanitation Billing Fees
76,490
Service Charges
174,954
Industrial Surcharges
11,415
Miscellaneous
262,473
Total Operating Revenues
19,633,034
Operating Expenses
Personnel
3,673,039
Supplies
1,559,712
Contractual
4,047,125
Maintenance
1,042,052
Sundry Charges
923,444
Bad Debt Expense
56,644
Other
434,233
Depreciation/Amortization
2,672,591
Amortization of Water Rights
35,632
Amortization of Asset Retirement Obligation
183,928
Total Operating Expenses
14,628,400
Operating Income
5,004 634
Nonoperating Revenues (Expenses)
Investment Earnings
2,410,750
Property Taxes
1,228,894
Net Increase (Decrease) in the Fair Value of Investments
837,535
Intergovernmental
998,533
Gain/(Loss) on Sale of Capital Assets
38,800
Interest Expense
(4,112,263)
Bond Issue Costs
(302,871)
Net Nonoperating Revenues (Expenses)
1,099,378
Income Before Contributions, Other Revenue, and Transfers 6,104,012
Capital Contributions, Other Revenue, and Transfers
Capital Contributions 62,500
Transfers In 1,306,850
Transfers Out (1,149,431)
Total Capital Contributions, Other Revenue, and Transfers 219,919
Changes in Net Position 6,323,931
Total Net Position - Beginning 36,177,466
Total Net Position - Ending $ 42,501 „397
The accompanying notes to the financial statements are an integral part of this statement.
25
CITY OF PARIS, TEXAS Statement 9
Statement of Cash Flows
. Proprietary Funds
Year Ended September 30, 2023
Water and Sewer
Enterprise Fund
Cash Flows from Operating Activities
Receipts from Customers and Users $ 16,751,307
Other Receipts . 262,473
Payments to Suppliers, Contractors, and Service Providers (6,1.96;830)
Payments to Employees for Salaries and Benefits (3,645,937)
Net Cash Provided by Operating Activities 7,171,013
Cash Flows from Noncapital Financing Activities
10,345,827
Transfers In
1,306,850
Transfers Out
(1,079,431)
Net Cash Provided (Used) by Noncapital Financing Activities
227,419
Cash Flows from Capital and Related Financing Activities
37,738,669
Proceeds Received from Sale of Capital Assets
38,800
Acquisition and Construction of Capital Assets
(9,935,548)
Proceeds from Long -Term Debt
26,795,000
Principal Paid on Capital Debt
(4,270,063)
Capital Grants
1,061,033
Contributions from Other Governments
-
Bond Issue Costs
(302,871)
Interest Paid on Capital Debt
(4,269 418)
Property Taxes
1,228,894
Net Cash Provided (Used) by Capital and Related Financing Activities
10,345,827
Cash Flows from Investing Activities
Interest on Investments
2,179,912
Purchases of Investment Securities
(48,989,391)
Maturities of Investments
37,738,669
Net Cash Provided (Used) by Investing Activities (9,070,810)
Net Increase in Cash and Cash Equivalents 8,673,449
Cash and Cash Equivalents - Beginning 21,761,409
Cash and Cash Equivalents - Ending $ 30,434,858
The accompanying notes to the financial statements are an integral part of this statement.
26
CITY OF PARIS, TEXAS Statement 9
Statement of Cash Flows (Continued)
Proprietary Funds
Year Ended September 30, 2023
Noncash Investing, Capital, and Financing Activities
Right -of -Use Assets Acquired through SBITA Liabilities $ 207,587
SBITA Liabilities Incurred as a Result of Acquiring Right -of -Use Assets (207,587)
The accompanying notes to the financial statements are an integral part of this statement.
27
Water and Sewer
Enterprise Fund
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating Income
$ 5,004,634
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used in) Operating Activities
Depreciation and Amortization
2,672,591
Amortization of Water Rights
35,632
Amortization of Asset Retirement Obligation
183,928
Decrease (Increase) in Accounts Receivable
(230,533)
Decrease (Increase) in Prepaid Items
(64,828)
Decrease (Increase) in Inventory
(311,375)
Decrease (Increase) in Net Pension Asset
1,021,114
Decrease (Increase) in Deferred Outflows of Resources
(741,705)
Increase (Decrease) in Accounts Payable and Accrued Liabilities
2,198,127
Increase (Decrease) in Customers' Deposits
17,012
Increase (Decrease) in Unearned Revenue
(2,349,089)
Increase (Decrease) in Net Pension Liabilities
566,443
Increase (Decrease) in Net OPEB Liabilities
(75,461)
Increase (Decrease) in Deferred Inflows of Resources
(755,477)
Total Adjustments
2,166,379
Net Cash Provided by Operating Activities
$ 7,171,013
Noncash Investing, Capital, and Financing Activities
Right -of -Use Assets Acquired through SBITA Liabilities $ 207,587
SBITA Liabilities Incurred as a Result of Acquiring Right -of -Use Assets (207,587)
The accompanying notes to the financial statements are an integral part of this statement.
27
CITY OF PARIS, TEXAS
Statement of Net Position
Fiduciary Funds
September 30, 2023
ASSETS
Cash and Cash Equivalents
Due from Other Funds
Total Assets
LIABILITIES
Accounts Payable to State
Total Liabilities
NET POSITION
Total Net Position
The accompanying notes to the financial statements are an integral part of this statement.
28
Statement 10
Custodial Fund
Court Costs
and Fees
15,208
700
15,908
15,908
15,908
CITY OF PARIS, TEXAS Statement 11
Statement of Changes in Net Position
Fiduciary Funds
Year Ended September 30, 2023
Custodial Fund
Court Costs
and Fees
ADDITIONS
Contributions
State Court Fees Collected $ 97,118
Total Additions 97,118
DEDUCTIONS
Payments of Court Fees to State 97,118
Total Deductions 97,118
Change in Net Position -
.Net Position - Beginning
Net Position - Ending
The accompanying notes to the financial statements are an integral part of this statement.
29
CITY OF PARIS, TEXAS
Notes to Financial Statements
September 30, 2023
I. SUmmafN of Significant Accountine 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 seven -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, proprietary, and
fiduciary — 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.
30
CITY OF PARIS. TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summ:11y of Sk'nificant 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.
The City reports the following fiduciary fund:
The Court Cost and Fees Custodial Fund includes court costs collected by the City on behalf of the State of
Texas, which are remitted to the State quarterly. These assets are excluded from the government -wide
financial statements as they cannot be used to support the government's own programs.
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. Interfund 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.
31
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
1: Summary of Si nificant 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 financing through 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 and fiduciary funds are accounted for using the economic resources measurement focus and use
the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded at the time liabilities are incurred. The proprietary fund is used to account for operations that are
financed and operated in a manner similar to private business enterprises, where the governing body has
decided that the determination of revenues earned, costs incurred, and/or net income is necessary for
management accountability.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles for
all governmental funds except the capital projects fund, proprietary funds, and library trust fund. The
budget for the capital projects fund is legally adopted for specific projects and may exceed one year.
Formal budgetary integration is not employed for the proprietary funds. The City adopts an annual,
informal budget as a financial plan for all proprietary funds. The library trust fund includes nonbudgeted
32
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summer of Sipni,f cant,,,,wAccountin 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 permanent or 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. An annual budget is not legally adopted for the Library Memorial Fund, a nonmajor
special revenue fund.
2. Excess of Expenditures Over Appropriations
For the year ended September 30, 2023, 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, 2023, the City Council approved a transfer of $1,808,740 from various departments to
other departmental line items. Expenditures exceeded appropriations in the following departments:
Manager $266, Municipal Court $24,167, Clerk $2,644, Finance $278,915, Police $302,199, Fire $3,219,
Public Works $2,215, Parks and Recreation $899, Health $4,618,342, Transfers Out $1,822,765.
G. Assets, Liabilities, and Equity
1. 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. The City and PEDC hold investments in two external investment
pools, Texas Class and Lone Star Investments. Both investment pools carry investments at amortized
33
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summary gf Significant Accounting Policies, (Continued)
G. Assets, Liabilities, and Equity (Continued)
2. Investments (Continued)
cost, which approximates fair value. Investments are priced daily and compared to the carrying value. If the
ratio of the fair value of the portfolio of investments to the carrying value of investments is less than .995 or
greater than 1.005, the investment pools will sell investment securities, as required, to maintain the ratio at
a point between .995 and 1.005. Participation in external investment pools was voluntary.
Statutes authorize the City and PEDC to invest in obligations of the U. S. Treasury, direct obligations of the
State of Texas, other obligations guaranteed or insured by the State of Texas or the United States,
obligations of states and political subdivisions of any state meeting certain rating requirements, certificates
of deposit, and fully collateralized direct repurchase agreements having a defined termination date. The
City did not engage in repurchase or reverse repurchase agreement transactions during the current year.
In accordance with generally accepted accounting principles, inputs to valuation techniques used to
measure fair value are prioritized according to a fair value hierarchy, as follows:
Level I — Fair values are based on unadjusted quoted prices in active markets for identical assets or
liabilities.
Level II — Fair values are based on generally indirect information such as quoted prices for similar
assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in
markets that are not active.
Level III — Fair values are based on inputs other than quoted prices included within Level I that are
unobservable and include the City's own assumptions about pricing.
This fair value hierarchy gives the highest priority to Level I inputs and the lowest priority to Level III
inputs. The City's investments are classified in Level II of the hierarchy.
3. Inventories
Inventories are valued at cost using the first -in, first -out method. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased. An equivalent amount is reported as
nonspendable fund balance in the governmental funds.
4. Restricted Assets
Prior to the issuance of General Obligation Refunding Bonds, Series 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.
Other restricted assets include funds restricted from revenue bond proceeds, contractual obligation debt
service funds, unspent grant proceeds, and customer deposits. Assets restricted for a specific purpose are
utilized before the use of unrestricted assets to pay related obligations when authorized to do so.
34
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. SummpLR , of Si+g,?,nificant Aggountm�g:* Policies, (Continued)
G. Assets, Liabilities, and Equity (Continued)
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.
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. Right -to -use leased assets
are discussed in Leases footnote below.
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. Leases
The Government Accounting Standards Board defines a lease as a contract that conveys control of the right to
use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or
exchange -like transaction.
Cit I_as Lessor
The City is a lessor for noncancellable leases of equipment. The City recognizes a lease receivable and
deferred inflow of resources at the beginning of the lease term in the government -wide and governmental fund
financial statements. In general, the lease receivable and deferred inflows of resources are measured at the
present value of the lease payments expected to be received during the lease term. The City remeasures the
lease receivables at subsequent financial reporting dates if one or more of the following changes have
occurred at or before the financial reporting date: change in lease term; change in the interest rate the lessor
charges the lessee; and/or change in future contingency lease payments to fixed payments for the remainder of
the lease.
35
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summary of Significant -Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
6. Leases (Continued)
CiL as L essor (Continued)
The key estimates and judgments related to leases include how the City determines the discount rate it uses to
discount the expected lease payments to present value, lease term, and lease payments. The City uses its
estimated incremental borrowing rate as the discount rate for leases, unless the rate is stated in the lease
agreement. The lease term includes the noncancellable period of the lease. Lease payments included in the
measurement of the lease receivable are composed of fixed payments from the lessee. Leases with periodic
percentage rent increases or flat rate increases that are specified in the lease terms are included in the
measurement of the lease receivable.
The City calculates the amortization of the discount on the lease receivable on a straight-line basis over the
term of the lease and reports that amount as an inflow of resources for the period. Any payments received are
allocated first to the accrued interest receivable and then to the lease receivable. This recognition does not
apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain
regulated leases.
The City accounts for the partial or full lease termination by reducing the carrying values of the lease
receivable and related deferred inflow of resources, and recognizing a gain or loss for the difference.
However, if the lease is terminated as a result of the lessee purchasing an underlying asset from the City, the
carrying value of the underlying asset should be derecognized and included in the calculation of any resulting
gain or loss.
Leases that are considered a short-term lease (12 months or less) are not included in the measurement of the
lease receivable. The City recognizes short-term lease payments as revenues based on the payment provisions
of the lease contract. Liabilities are only recognized if payments are received in advance, and receivables are
only recognized if payments are received subsequent to the reporting period.
Q y as Lessee
The City is a lessee for noncancellable leases of property and equipment. The City recognizes a lease liability
and an intangible right -to -use lease asset at the beginning of a lease in the government -wide financial
statements. In general, the lease liability and the right -to -use assets are measured based on the present value of
the expected payments during the term of the lease. Remeasurement of a lease liability and right -to -use lease
asset occurs when there is a change in the lease tern and/or other changes that are likely to have a significant
impact on the lease liability.
The key estimates and judgments related to leases include how the City determines the discount rate it uses to
discount the expected lease payments to present value, lease term, and lease payments. The City uses the
interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not
provided, the City generally uses its estimated incremental borrowing rate as the discount rate. The lease term
includes the noncancellable period of the lease. Lease payments included in the measurement of the lease
liability are composed of fixed payments and any purchase option price that the City is reasonably certain to
exercise. In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise an extension option, or not exercise a termination option. Extension options or
periods after termination options are only included in the lease term if the lease is reasonably certain to be
extended. Leases with payments that depend on an index or rate, such as the Consumer Price Index or market
rate, are initially measured using the index or rate as of the commencement of the lease term. Leases with
36
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summar°l! of Sid=nificant Accountin„ Policies, (Continued)
G. Assets, Liabilities, and Equity (Continued)
6. Leases (Continued)
Citlwwas Lessee (Continued)
periodic percentage rent increases or flat rate increases that are specified in the lease terms are included in the
measurement of the lease liability.
The City calculates the amortization of the discount on the lease liability and reports that amount as outflows
of resources or interest expense for the period. Payments are allocated first to accrued interest liability and
then to the lease liability.
The City amortizes the right -to -use lease asset on a straight-line basis over the shorter of the lease term or the
useful life of the underlying asset. However, if a lease contains a purchase option that the City has determined
is reasonably certain of being exercised, the lease asset is amortized over the useful life of the underlying
asset. If the underlying asset is non -depreciable, such as land, the lease asset is not amortized. The City reports
the amortization of the lease asset as an outflow of resources, amortization expense, which is combined with
depreciation expense related to other capital assets for financial reporting purposes.
The City accounts for the partial or full lease termination by reducing the carrying values of the lease asset
and lease liability, and recognizing a gain or loss for the difference. However, if the lease is terminated as a
result of the City purchasing an underlying asset from the lessor, the lease asset will be reclassified to the
appropriate class of owned asset.
Leases that are considered a short-term lease (12 months or less), transfers ownership of the underlying asset,
assets held as investments, or contain variable payments based on future performance of the City or usage of
the underlying assets are not included in the measurement of the lease liability. The City recognizes payments
for short-term leases and variable payments as expense in the period in which the City incurs the obligation
for those payments.
7. Subscription -Based Information Technology Arrangements (SBITAs)
The City has noncancellable contracts with SBITA vendors for the right to use information technology (IT)
software, alone or in combination with tangible capital assets (the underlying IT assets). The City recognizes a
subscription liability, reported with long-term debt, and a right -to -use subscription asset (an intangible asset),
reported with other capital assets, in the government -wide financial statements.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of
payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced
by the principal portion of SBITA payments made. The subscription asset is initially measured as the initial
amount of the subscription liability, adjusted for SBITA payments made at or before the SBITA
commencement date, plus certain initial implementation costs. Subsequently, the subscription asset is
amortized on a straight-line basis over the shorter of the subscription term or the useful life of the underlying
IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses
to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription
payments.
37
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summary .of Significant Accounting Policies (Continued)
G. Assets, Liabilities, and Equity (Continued)
7. Subscription -Based Information Technology Arrangements (SBITAs) (Continued)
• The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest
rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental
borrowing rate as the discount rate for SBITAs.
• The subscription term includes the noncancellable period of the SBITA.
• Subscription payments included in the measurement of the subscription liability are composed of
fixed payments, variable payments fixed in substance or that depend on an index or a rate,
termination penalties if the City is reasonably certain to exercise such options, subscription contract
incentives receivable from the SBITA vendor, and any other payments that are reasonably certain of
being required based on an assessment of all relevant factors.
The City monitors changes in circumstances that would require a remeasurement of its SBITAs and will
remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect
the amount of the subscription liability.
8. 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 assets 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. and G. for further information. The City also reports a deferred
outflow of resources related to an asset retirement obligation. See footnote IV. Q. 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 assets that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The government has a deferred inflow of resources related to pensions
and OPEB. See IV.F. and G. 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 and street
assessments. These amounts are deferred and recognized as an inflow of resources in the period that the
amount becomes available. In addition, there are deferred amounts related to leases, that is initially an
offset to lease receivable recorded at lease commencement, and is subsequently recognized as revenue over
the life of the lease term. See footnote IV.L. for further information.
9. 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.
38
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
u
umm�u�°� o Significant Accomwntineolicies (Continued) P
G. Assets, Liabilities, and Equity (Continued)
10. 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.
11. 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.
H. Revenues and Expenditures/Expenses
1. Program Revenues
Amounts reported as program revenues include (1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other items not properly included among program revenues are reported instead as
general revenues.
2. Property Taxes
The City's property taxes are levied on October 1 and are due no later than January 31 of the following year.
Taxes become delinquent February 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.
39
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Summ�irA, of Sidjnifcant AccountinMW Policies (Continued)
H. Revenues and Expenditures/Expenses (Continued)
3. Compensated Absences
Vacation and sick leave benefits are accumulated by City employees in accordance with guidelines
suggested in the City's personnel policies.
4. Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water and sewer enterprise fund are charges to customers for sales and services. The water and sewer fund
also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new
customers to the system. Operating expenses for enterprise funds include the cost of sales and service,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
I. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from
those estimates.
J. Recent Accounting Pronouncements Adopted
During fiscal year 2023, the City adopted the following Governmental Accounting Standards Board (GASB)
Statements:
GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangements, improves financial reporting by addressing these relationships and availability payment
arrangements. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022.
The requirements of this Statement have no impact on the City's financial statements.
GASB Statement No. 96, Subscription -Based Information Technology Arrangements (GASB 96), provides
guidance on the accounting and financial reporting for subscription -based information technology arrangements
(SBITAs) for government end users. This statement (1) defines a SBITA; (2) establishes that a SBITA results in
a right -to -use subscription asset — an intangible asset — and a corresponding subscription liability; (3) provides
the capitalization criteria for outlays other than subscription payments; and (4) requires note disclosures
regarding a SBITA. The requirements of this statement are effective for reporting periods beginning after June
15, 2022, with earlier application encouraged. The City has implemented this Statement in fiscal year 2023.
Beginning balances of SBITAs is immaterial to the financial statements and therefore, required to restatement
of prior periods.
GASB Statement No. 99, Omnibus 2022, enhances comparability in accounting and financial reporting and
improves the consistency of authoritative literature by addressing (1) practice issues that have been identified
during implementation and application of certain GASB Statements and (2) accounting and financial reporting
for financial guarantees. The practice issues related to clarification provision in Statement No. 87, Leases and
clarification provisions in Statement No. 96, Subscription -Based Information Technology Arrangements, and all
other applicable requirements of this Statement were implemented in fiscal year ended September 30, 2023.
40
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
I. Sum m of Shmificant Accounting Policies (Continued)
K. 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, 2023.
Statement
No. Adoption Required
100 Accounting Changes and Error September 30, 2024
Corrections — an Amendment of GASB
Statement No. 62
101 Compensated Absences September 30, 2025
102 Certain Risk Disclosures September 30, 2025
II. Reconciliation of Government -Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -
Wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds
and net position — governmental activities as reported in the government -wide statement of net position. One
element of that reconciliation explains that "capital and right -to -use assets used in governmental activities are
not financial resources and, therefore, are not reported in the funds." The details of this $40,044,939 are as
follows:
Land
$ 6,142,418
Construction in Progress
311,377
Buildings
22,523,529
Less: Accumulated Depreciation — Buildings
(11,465,640)
Improvements Other Than Buildings
6,695,332
Less: Accumulated Depreciation — Improvements Other Than Buildings
(4,793,254)
Machinery and Equipment
24,646,150
Less: Accumulated Depreciation — Machinery and Equipment
(19,667,792)
Infrastructure
52,818,522
Less: Accumulated Depreciation — Infrastructure
(37,544,545)
Right -To -Use Assets - Leases
280,928
Less: Accumulated Amortization — Right -To -Use Assets - Leases
(101,545)
Right -To -Use Assets - SBITAs
218,090
Less: Accumulated Amortization — Right -To -Use Assets - SBITAs
m..........8,63,,,,1„�
Net Adjustment to Increase Fund Balance — Total Governmental Funds
to Arrive at Net Position — Governmental Activities
40.044.939
41
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
II: Reconciliation_of Government -Wide and Fund Financial Statements (Continued)
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -
Wide Statement of Net Position (Continued)
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 $12,860,320
difference are as follows:
Bonds Payable
Plus: Premiums on Bonds Payable (to be Amortized
Over the Life of the Debt)
Tax Notes Payable
Financed Purchases
Leases
SBITAs
Accrued Interest
Compensated Absences
Landfill Post -Closure Care Costs
Net Adjustment to Reduce Fund Balance — Total Governmental Funds
to Arrive at Net Position — Governmental Activities
$ 9,860,000
86,562
580,000
461,737
178,441
167,524
78,341
1,297,715
150,000,
_12 860.,32.0..
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures,
and Changes in Fund Balances and the Government -Wide Statement of Activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances — total governmental funds and changes in net position of
governmental activities as reported in the government -wide statement of activities. One element of that
reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense." The details of this $649,333 difference are as follows:
Capital Outlay $ 2,250,937
Depreciation Expense
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Position
Of Governmental Activities
42
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
II. Reconciliation of Government-WideandFund 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)
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 $150,034 difference are
as follows:
In the statement of activities, 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. $ (39,929)
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. 189,963
Total Governmental Funds to Arrive at Changes in Net Position
of Governmental Activities $ 150,034
III. Stewardshipv,Coip liance. and Accountabilif;
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, 2023.
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, 2023, the City maintained deposits at a bank with a carrying amount of $43,766,995, and the
bank's balances were $43,878,779. As of September 30, 2023, $599,897 was insured by FDIC and $43,307,239
was collateralized with securities held by the pledging financial institution's agent in the name of the City. The
City's certificate of deposit totaling $99,897 is considered a deposit for this footnote, but is classified as an
investment on the face of the financial statements.
43
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities.and Funds (Continued)
B. Investments
As of September 30, 2023, the City had the following investments:
Type of Security
Primary Government
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Banks Debenture
Federal Farm Credit Banks Debenture
Certificates of Deposit
U.S. Treasury Bills OID
U.S. Treasury Notes
Paris Economic Development Corporation
Texas Class Investment Pool
Totals
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, 2023. 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. The City had a zero balance at year end.
Interest rate risk is the policy of the City to invest public funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of the entity and
conforming to all state and local statutes governing the investment of public funds. The City's investment
portfolio is designed with the objective of attaining an acceptable rate of return throughout budgetary and
economic cycles and commensurate with the City's investment risk constraints and the cash flow characteristics
of the portfolio. The City's investment strategy is active. Given this strategy, the basis used by the Finance
Director to determine whether market yields are being achieved shall be the Average Fed Funds rate. No other
formal policy related to interest rate risk is included in the City's adopted investment policy.
Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a nationally
recognized statistical rating organization. The City and PEDC reduce the risk of issuer default by limiting
investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas
Government Code.
44
Weighted
Weighted
Average
Average
Cfedit
Maturity
Maturity
Fair Value
RatinL,
(Years)
(Days)
$ 3,689,098
AA+
7.93
2,425,405
AA+
6.70
584,431
AA+
2.61
248,648
AA+
0.82
99,897
Not Rated
0.58
12,595,625
0.19
46,895,566
0.60
2,2352925
AAAm
72
$ 68,774,595
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, 2023. 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. The City had a zero balance at year end.
Interest rate risk is the policy of the City to invest public funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of the entity and
conforming to all state and local statutes governing the investment of public funds. The City's investment
portfolio is designed with the objective of attaining an acceptable rate of return throughout budgetary and
economic cycles and commensurate with the City's investment risk constraints and the cash flow characteristics
of the portfolio. The City's investment strategy is active. Given this strategy, the basis used by the Finance
Director to determine whether market yields are being achieved shall be the Average Fed Funds rate. No other
formal policy related to interest rate risk is included in the City's adopted investment policy.
Credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the
investment. This type of risk is typically expressed in terms of the credit ratings issued by a nationally
recognized statistical rating organization. The City and PEDC reduce the risk of issuer default by limiting
investments to those instruments allowed by the Public Funds Investment Act, Chapter 2256, Texas
Government Code.
44
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes onm All Activitiesand Funds (Continued)
B. Investments (Continued)
Concentration credit risk is the risk of loss attributed to the magnitude of a government's investment in a single
issuer. With the exception of obligations of the United States or its agencies and authorized pools, no more than
50% of the City's total investment portfolio will be invested in a single financial institution with the exception
of its local depository. PEDC's investment balance consists of only externally pooled accounts.
The custodial credit risk for investments is the risk that, in the event of failure of the counterparty to a
transaction, a government will not be able to recover the value of investment or collateral securities that are in
the possession of an outside party. In accordance with the City's deposit and investment policy, all deposits
placed at a financial institution shall be insured or collateralized with applicable State law.
Foreign currency risk is the risk that an investment denominated in the currency of a foreign country could
reduce in value as a result of changes in currency exchange rates. At September 30, 2023, 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:
Net receivable balances not expected to be collected within one year are Property Taxes - $581,688, Fines -
$31,332, EMS - $743,210, Street Assessments - $26,473, and Leases - $2,020,375.
Governmental funds report deferred inflows of resources in connection with receivables for revenue that is
not considered to be available to liquidate liabilities of the current period. At September 30, 2023, the
deferred inflows of resources were $2,775,770.
At year end, PEDC had a receivable for sales tax of $367,186. The balance is expected to be collected within one
year.
45
Nonmajor
Governmental
General
Debt Service
Funds
Entea3rise
Receivables:
Accrued Interest
$ 22,901
$ -
$ -
$ 263,547
Property Taxes
1,035,601
78,987
-
28,116
Sales Tax
1,835,488
-
-
-
Hotel Occupancy Tax
293,956
-
-
-
Franchise
523,179
-
-
-
Accounts
285,013
-
9,977
2,969,700
Street Assessments
26,473
-
-
-
Fines
2,464,849
-
-
-
EMS
5,945,680
-
-
-
Leases
1,349,811
-
824,370
Notes
2,247,922
-
-
-
Gross Receivables
16,030,873
78,987
- 834,347
3,2ti1,m363 m
Less: Allowance for Uncollectibles
(5,885,289)
19,747
-
1;67,723)
Net Total Receivables
$10,145,584
$ 59,240
$ ,834,347
$ 3,193,640
Net receivable balances not expected to be collected within one year are Property Taxes - $581,688, Fines -
$31,332, EMS - $743,210, Street Assessments - $26,473, and Leases - $2,020,375.
Governmental funds report deferred inflows of resources in connection with receivables for revenue that is
not considered to be available to liquidate liabilities of the current period. At September 30, 2023, the
deferred inflows of resources were $2,775,770.
At year end, PEDC had a receivable for sales tax of $367,186. The balance is expected to be collected within one
year.
45
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
Detailed -Notes on All Activities and Funds (Continued)
C. Accounts Receivable and Payable (Continued)
Accounts payable, at September 30, 2023, were as follows:
Governmental Activities
General Fund
Special Revenues
Total — Governmental Activities
Business -Type Activities
Water and Sewer Fund
Total — Business Type Activities
Fiduciary Activities
Custodial Fund
Total — Fiduciary Activities
Accounts Wages Totals
$ 1,285,043 $ 768,691 $ 2,053,734
30,320 _ 5,507 35,827
$ 1,315,363 $ 774,198 $aµµ2,089,561
$ 2,531,509 $ 141,403 $ 2 672,912
_._ _....
$ 2,531,509 $ 141,403 $ 2,672,912
$m—. 15,908 $-
_ �....................._.._....._wwm $ 15,908
$ 15,908 $ - $ 15,908
(Remainder of page intentionally left blank.)
46
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All, Activities and mFu,nds (Continued)
D. Capital Assets
Capital assets activity for the year ended September 30, 2023, follows:
Balance
9/30/22 Additions Retirements
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 6,101,909 $ 40,509 $ m -
5
Construction Progress 1,484,12 580,240 1 ,752,988
Total Capital Assets,
p 62 , _
Not Being Depreciated 7,586 034 620 749 1,752,988
Capital Assets, Being Depreciated/Amortized
Balance
9/30/23
$ 6,142,418
311.377m
6,453,795
Buildings
20,640,470
1,883,059
-
22,523,529
Improvements Other Than Buildings
6,664,963
30,369
-
6,695,332
Machinery and Equipment
23,985,850
1,343,020
682,720
24,646,150
Infrastructure
52,733,342
85,180
-
52,818,522
Right -to -Use Lease — Equipment
278,821
13,421
11,314
280,928
Subscription -Based IT Asset
...... ........
218,090
-
218,090
Total Capital Assets,
.......
Being Depreciated/Amortized
104,303,446
3,573,139v
694,034
107,182,551
Less Accumulated Depreciation/Amortization for
Buildings
10,987,552
478,088
-
11,465,640
Improvements Other Than Buildings
4,534,057
259,197
-
4,793,254
Machinery and Equipment
19,165,991
1,144,592
642,791
19,667,792
Infrastructure
36,560,614
983,931
-
37,544,545
Right -to -Use Lease — Equipment
52,028
60,831
11,314
101,545
Subscription -Based IT Asset
mmm-
18,,631
-
18,631
Total Accumulated
�
Depreciation/Amortization
71,300,242
2,945,270
654,105
73,591,407
Total Capital Assets,
Being Depreciated/Amortized, Net
33,003,204
627,869
mmm 392929
33,591,144
Governmental Activities,
Capital Assets, Net
$40,589 238
$ 1,248,618m
$ 1,792,917
$40,044,939
47
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV, Detailed Notes on All Activities and Funds (Continued)
D. Capital Assets (Continued)
Business -Type Activities
Capital Assets, Not Being Depreciated
Land
Construction in Progress
Total Capital Assets,
Not Being Depreciated
Balance Balance
9/30/22 Additions Retirements 9/30/23
$ 339,620 $ - $ - $ 339,620
41,652,434 8,618,755 35,392,899 14,878,290
mm41,992,054 8,618,755 mm...35,392,899 15,217,910
Capital Assets, Being Depreciated/Amortized
- 32,991,325
Plant, Pumps, and Motors
32,502,752
Distribution System
46,963,935
Collection System
28,300,115
Maintenance Equipment and Vehicles
5,111,936
Furniture and Equipment
2,092,872
Subscription -Based IT Asset
-
Total Capital Assets,
Collection System
Being Depreciated/Amortized
114,971,610
488,573
- 32,991,325
35,069,547
- 82,033,482
-
- 28,300,115
1,151,572
44,848 6,218,660
-
- 2,092,872
_............207,587
- ............207,5.87_
36F.917,279
44,848 151,844,041
Less Accumulated Depreciation/Amortization
for
Plant, Pumps, and Motors
27,692,635
660,011
-
28,352,646
Distribution System
34,182,183
1,198,014
-
35,380,197
Collection System
22,282,290
483,486
-
22,765,776
Maintenance Equipment and Vehicles
3,703,894
261,480
44,848
3,920,526
Furniture and Equipment
1,729,608
53,224
-
1,782,832
Subscription -Based IT Asset89,,
-
16,376
-
16,376
Total Accumulated Depreciation
_ 590610
2 672 591
44 ,848
92,218,353
Total Capital Assets,
Being Depreciated/Amortization, Net _
25,381,000_34a
244,688
-
59,625,688
Business -Type Activities,
Capital Assets, Net
67,373,054
42,863,443
_m35,392,899
74,843,598
Intangible Asset—Water Rights
4,113,119
-
-
4,113,119
Less Accumulated Amortization
941,830
__..... 35,632
-
977,4,62
Total Intangible Asset -
Water Rights, Net
3,171289.
"
__...........(35.,632.....�...1..
-
3.r135 ...............z657.......
Business -Type Activities,
Capital and Intangible Assets, Net $70,544,343
$42,827,.811
$ 35,392.899
$77,979,255
48
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds, (Continued)
D. Capital Assets (Continued)
Depreciation/Amortization expense was charged to functions/programs of the primary government as
follows:
Governmental Activities
General Government $ 203,595
Public Safety 769,908
Public Works, Including Depreciation of General Infrastructure Assets 1,445,355
Health 282,051
Culture and Recreation 116,839
Cox Field Airport 127,522
Total Depreciation/Amortization Expense — Governmental Activities 2.945.270
Business -Type Activities
Water and Sewer S 2.708,223
Total Depreciation/Amortization Expense — Business -Type Activities mm2k708223
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 and a single -
employer, defined benefit plan for firefighters.
1. Texas Municipal Retirement System
Plan Desor tion
The City of Paris participates as one of 919 plans in the defined benefit cash -balance pension plan
administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State
of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code
(the TMRS Act) as an agent multiple -employer retirement system for municipal employees in the State of
Texas. The TMRS Act places the general administration and management of the System with a six -member
Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board,
TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax -
qualified plan under Section 401 (a) of the Internal Revenue Code. The plan financial statements are
prepared using the accrual basis of accounting. TMRS issues a publicly available annual comprehensive
financial report (ACFR) that can be obtained at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
49
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
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 member's benefits are calculated based on the sum of the member's contributions with
interest, and the City -financed monetary credits with interest, their age at retirement and other actuarial
factors. When a member applies for retirement, they have three options to determine how their lifetime
monthly benefit will be paid. After a member selects one of the three benefit payment options, they can
choose to receive a partial lump -sum distribution to 12, 24, or 36 times the Retiree Life Only monthly
benefit, however this partial lump -sum cannot exceed 75% of the total member contributions and interest.
Prior service credit is a monetary credit that a city may grant to eligible employees when the City joins
TMRS. The credit is used in calculating the employee's retirement benefit and is based on compensation
they earned while working for the City before the City joined TMRS. Current service credit is a monetary
credit for service performed by a member after a city joins TMRS and is based on a city's matching ratio
(100%, 150%, or 200%) of the member's total contributions and interest. A change in a city's matching
ratio is applied prospectively. Update service credit (USC) is a monetary credit a city may grant to active
members. The USC calculation is performed annually on a member's account and may grant supplemental
financial credits. The USC calculation considers a member's salary history and the City's plan changes and
may increase the value of a member's benefit at retirement.
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 2022
Employee Deposit Rate
7%
Matching Ratio (City to Employee)
2 to 1
Years required for vesting
5 Years
Retirement Eligibility (Age/Service)
60/5,0/20
Updated Service Credit
0%
Annuity Increase (to retirees)
0% of CPI
EmI o eesmCovr_ed b =�Benefit Terms.
At the December 31, 2022, valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive Employees or Beneficiaries Currently Receiving Benefits 248
Inactive Employees Entitled to but not yet Receiving Benefits 178
Active employees 290
Total 71.........
6
50
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Contributions
Active member contribution rates are adopted by the City and may be either 5%, 6%, or 7% of an employee's
total compensation. The City's contribution rate is determined annually by TMRS using the Entry Age
Normal actuarial cost method based on the liabilities created from the City's benefit options and any changes
in benefits or actual experience over time. The City's contribution rate consists of the normal cost contribution
rate and the prior service contribution rate, which is calculated as a level percent of the City's reported payroll.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 6.45% and 4.59% in calendar years 2022 and 2023, respectively. The
City's contributions to TMRS for the year ended September 30, 2023, were $947,941 and were equal to the
required contributions.
Net Pension Liabiliv�,
The City's Net Pension Liability was measured as of December 31, 2022, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial Assumlitions
The Total Pension Liability in the December 31, 2022, 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%
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 multiplied 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 primarily 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.
51
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
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)
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 by weighting the
expected return for each major asset class by the respective target asset allocation percentage. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in
the following table:
Discount Rate
A single discount rate of 6.75% was used to measure the Total Pension Liability as of December 31, 2022.
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.
52
Long -Term Expected Real
Asset Class
Asset
.�....._
Target i Allocation
R
Rate ofof Return (Arithmetic) ....
�._
Global Equity
35.0%
7.70%
Core Fixed Income
6.0
4.90
Non -Core Fixed Income
20.0
8.70
Other Public and Private Markets
12.0
8.10
Real Estate
12.0
5.80
Hedge Funds
5.0
6.90
Private Equity
10.0
11.80
Total
100.0%
Discount Rate
A single discount rate of 6.75% was used to measure the Total Pension Liability as of December 31, 2022.
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.
52
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and.Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Net Pension Liability and Changs in the Pension Liatil,ity;
Balance at 12/31/2021
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 12/31/2022
Increase (Decrease)
Sensitivity of the Net Pension Liability to Chan ! sITinmtheDiscount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City's net pension liability (asset) would have been if it were calculated using a discount
rate that is 1 -percentage -point lower (5.75%) or 1 -percentage -point higher (7.75%) than the current rate:
1% Decrease in
1% Increase in
Net Pension
Total Pension
Plan Fiduciary
Liability
Liability
Net Position
(Asset)
a)
—(bi'
(a) — (b)
$ 68,928,543
$ 75,148,934
$ (6,220,391) .
1,660,689
-
1,660,689
4,595,080
-
4,595,080
(18,490)
-
(18,490)
-
1,049,532
(1,049,532)
-
999,555
(999,555)
-
(5,492,045)
5,492,045
(3,907,254)
(3,907,254)
-
-
(47,640)
47,640
_... -
56,848
(56,848),
2,330,025 ....,3
..
17,341,004
m wwwww_9,671,029
$ 71,258,568
$ 67,807,930
$ 3,450,638
Sensitivity of the Net Pension Liability to Chan ! sITinmtheDiscount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City's net pension liability (asset) would have been if it were calculated using a discount
rate that is 1 -percentage -point lower (5.75%) or 1 -percentage -point higher (7.75%) than the current rate:
1% Decrease in
1% Increase in
Discount Rate Discount Rate
Discount Rate
_ ..$ 5.75% 6.75%
7.75%
City's Net Pension Liability (Asset) 111,9. � 3,45. WWWWW
' 27,931 $ 3,450,638
._..
$ (3,653,3380}80)
Pension Plan Fiduciary Net Position.
Detailed information about the pension plan's Fiduciary Net Position is available in a separately -issued
TMRS financial report. That report may be obtained on the Internet at www tmrs,.c,om.
53
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and.Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Pension ExNense and Deferred Outflows of Resources and Deferred Inflows of Resources ,w Related to
Pensions ��.. .......a�.m_.,,,,,.
For the year ended September 30, 2023, the City recognized pension expense of $1,098,139.
At September 30, 2023, 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
$ - $ 319,205
4,667,155 -
598,874 -
$ 5,266,029 $ 319,205
$598,874 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, 2024. 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,
2024
2025
2026
2027
2028
Thereafter
54
$ (147,592)
1,118,961
1,260,018
2,116,563
4,347,950
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
M Detailed Notes onAllActivities and Funds, (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund
Plan Descrij)tion
The Paris Firefighters' Relief and Retirement Fund, a single -employer defined benefit pension plan, is
established under the authority of the Texas Local Firefighters' Retirement Act and is administered by a
Board of Trustees made up of three members elected from and by the fund's members, two representatives
of the City of Paris, Texas, and two citizen members. Specified plan provisions are governed by a plan
document and a trust agreement executed by the Board of Trustees. The plan is an independent entity for
financial reporting purposes and issues a stand-alone financial statement. A copy of the audited financial
statement may be obtained from the Board of Trustees, Paris Firefighters' Relief and Retirement Fund, P.O.
Box 9037, Paris, Texas 75461. Governing state law requires public retirement systems to hire an actuary to
make a valuation at least once every three years of the assets and liabilities of the system and to determine
if the assumptions and methods are reasonable. The plan financial statements are prepared using the
accrual basis of accounting. All plan investments are reported at fair value.
Eligibility
The plan covers current and former firefighters of the City of Paris, Texas, as well as certain beneficiaries.
The plan had a freeze date of September 30, 2022. Effective October 1, 2022, firefighters no longer make
contributions to the plan. The City is responsible for the existing unfunded actuarial liability. As of
September 30, 2022, the plan was closed to new entrants.
Contributions
The City's liability was fully funded as of September 30, 2023. The City's contributions for the year ended
September 30, 2023, were $12,521,952 and were equal to the required contributions.
Eyees,Covered b BeneftTerms
At the December 31, 2022, valuation date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 47
Inactive employees entitled to but not yet receiving benefits 8
Active employees 46
Total 101
55
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
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 „Disabilit and Death Ben„e,,, its
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 Assum ;"tions
The actuarial valuation date used to determine the total pension liability for the year ended September 30,
2023, and the most current available information required for disclosure under GASB Statement No. 67 is
based on an actuarial valuation as of December 31, 2022. The actuarial cost method used in the December
31, 2022, valuation is the Normal to Pure Unit Credit Actuarial Cost Method.
The long-term expected real rate of return was developed using the annual money -weighted internal rate of
return, net of pension plan investment expense. Inputs to the money -weighted internal rate of return
calculation are determined at least monthly.
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.
56
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
—mms, (Continued)
. Detailed Notes onAllActivities andFund
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Net Pension Liability and Chape s in the Pension Liabiffi
Balance at 12/31/2021
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 12/31/2022
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 -point lower (6.25%) or 1 -percentage -point
higher (8.25%) than the current rate:
1% Decrease in
Discount Rate
6.25%
Net Pension Liability $1,534,593
Pension Plan Fiduciaa ,,Net Position
1%Increase in
Discount Rate Discount Rate
7.25% 8.25%
$(214,546) $(1,655,153)
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 Deferredm Outflows of Resources and Deferred Inflows of Resources Relatedw to
Pensions
For the year ended September 30, 2023, the City recognized pension expense of $(192,146).
Wn
Increase (Decrease)
Net Pension
Total Pension
Plan
Liability
Liability
Fiduciary Net
(Asset)
(a)
Position (b)
(a) — (b)
$ 16,127,851
$ 5,032,140
$ 11,095,711
185,002
-
185,002
1,139,106
-
1,139,106
(1,165,161)
-
(1,165,161)
(344,787)
-
(344,787)
733,322
-
733,322
-
12,521,952
(12,521,952)
-
425,088
(425,088)
-
(1,048,039)
1,048,039
(1,202,081)
(1,202,081)
-
-
(41,262)
41,262
(654,599p
10,655,658
_ (11,310,257)
$ 15,473,252
$ 15,687,798
$ (214,546)
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 -point lower (6.25%) or 1 -percentage -point
higher (8.25%) than the current rate:
1% Decrease in
Discount Rate
6.25%
Net Pension Liability $1,534,593
Pension Plan Fiduciaa ,,Net Position
1%Increase in
Discount Rate Discount Rate
7.25% 8.25%
$(214,546) $(1,655,153)
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 Deferredm Outflows of Resources and Deferred Inflows of Resources Relatedw to
Pensions
For the year ended September 30, 2023, the City recognized pension expense of $(192,146).
Wn
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and_Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
The aggregate pension expense for Texas Municipal Retirement System and Firefighters' Relief and
Retirement Fund for the year ended September 30, 2023 was $905,993.
E _._ f Ws ctf,,.. _ sources Related to
Pension Ex sense and Deferred Outflows of Resources and Deferred Inflows of Resources _._............
Pensions (Continued)
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Outflows Deferred Inflows
o Resources omm ..fResources
...............Y]................�......
Difference Between Expected and Actual Economic Experience $ 74,361 $ 682,938
Changes in Actuarial Assumptions 1,231,086 -
Difference Between Projected and Actual Investment Earnings 1,082,830
Contributions Subsequent to the Measurement Date - -
Total $ 2,388,277 $ 682,938
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,
2024
$ 277,836
2025
340,880
2026
418,175
2027
550,827
2028
62,114
Thereafter
55,507
Total
$ 1,705,339
G. Other Post Employment Benefit (OPEB) Obligations
1. Supplemental Death Benefits Fund
Plan Descritp ion
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 Retirement 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 participation in the SDBF by adopting an
ordinance before November 1 of any year to be effective the following January 1.
58
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
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).
Em1loees...Covered„bA Benefit Terms
At the December 31, 2022 valuation and measurement date, the following employees were covered by benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 184
Inactive employees entitled to but not yet receiving benefits 47
Active employees 290_
..._..............
Total 521
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 0.37% and 0.51% of gross earnings in calendar year 2022 and 2023, respectively. The
City's contributions to TMRS SDBF for the year ended September 30, 2023 were $91,233 and were equal to the
required contributions.
59
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV Detailed Notes on All Activities and Funds (Continued)
G. .Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
Chan m Lablr
Balance at 12/31/21
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 12/31/22
Increase
(Decrease)
Total OPEB
Liability_____
$............1, 462,684
71,397
27,229
(44,459)
(476,731)
(37,126)
(459,6901
$ 1,002,994
The following presents the total SDBF OPEB liability of the City, calculated using the discount rate of 4.05%,
as well as what the City's total SDBF OPEB liability (asset) would be if it were calculated using a discount rate
that is 1 -percentage -point lower (3.05%) or 1 -percentage -point higher (5.05%) than the current rate:
1% Decrease in
Discount Rate
3.05%
Total OPEB Liability $1,186,354
Suer lfl emental Death.Benefits Fund Net Position
1% Increase in
Discount Rate Discount Rate
4.05% 5.05%
$1,002,994 $858,981
Detailed information about the plan's net position is available in a separately -issued TMRS financial report. That
report may be obtained on the Internet at www.tmrs.com.
60
CITY. OF PARIS, TEXAS
Notes. to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
OPER! pense and Deferred Outflows of Resources and DeferredwwInflows of Resources Related toOPEBs
For the year ended September 30, 2023, the City recognized OPEB expense in the amount of $15,944.
At September 30, 2023, 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
of Resources
114,375
66,542
Deferred Inflows
of Resources
67,431
358,141
$ 180,917 $ 425„572
$66,542 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to
OPEB, will be recognized in pension expense as follows:
Fiscal Year Ended September 30,
2024
$ (73,842)
2025
(106,059)
2026
(128,702)
2027
(2,594)
2028
-
Thereafter
-
Total
m$ (311,190
2. City of Paris Retiree Health Care Plan
Plan Descrilation
The City has in effect a single employer plan (the Plan) adopted by City Council resolution whereby persons
who retire before age sixty-five will be provided health care coverage until they become sixty-five. The
contribution requirements of the government are established and may be amended by the governing council. The
Plan covers retiree benefits with no segregation of assets, and therefore doesn't meet the definition of a trust
under GASB No. 75 (i.e., no assets are accumulated for OPEB). The Plan issues a stand-alone financial report.
61
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes _onwwAll Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City -of Paris Retiree Health Care Plan (Continued)
Benefits
Retiree health benefits are available to all retirees who meet the definition of a retiree as set for by City
ordinance. Retirees are responsible for the full cost of their retiree health benefits. Retirees who meet certain
conditions are eligible for a monthly subsidy from the City toward the purchase of health care coverage until the
retiree becomes age 65. Retirees are able to remain on the City group health insurance plan until the retiree
reaches age 65 or becomes eligible for Medicare coverage. Retiree premiums are 1.95 times the rates for active
employees. Retiree health benefits 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.
Emp,�loyees Covered b , Benefit Terms,
At the December 31, 2022 valuation and measurement date, the following employees were covered by benefit
terms:
Inactive Retirees or Beneficiaries Currently Receiving Benefits 6
Inactive, Nonretired Members -
Active employees 54
Total 60
Contributions
The City's contributions are financed on a pay-as-you-go basis. For the year ended September 30, 2023, the
contributions were approximately $60,725.
62
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes onAllActivities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
Gham,es in the„OPEB Liabili„ .,�
The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 4.05%, as
well as what the City's total Plan OPEB liability (asset) would be if it were calculated using a discount rate that
is 1 -percentage -point lower (3.05%) or 1 -percentage -point higher (5.05%) than the current rate:
1% Decrease in
Discount Rate
3.05%
Total OPEB Liability $3,344,052
1% Increase in
Discount Rate Discount Rate
4.05% 5.05%
$3,173,612 $3,030,759
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
I% Decrease Assumption 1% Increase
Total OPEB Liability $2,956,216 $3,173,612 $3,410,868
63
Increase
--(Decrease)
Total OPEB
— Liability! ..............._...
Balance at 12/31/2021
$ 3,494,904
Changes for the year:
Service Cost
107,089
Interest
64,353
Change of Benefit Terms
_
Difference Between Expected and Actual Experience
(5,342)
Changes of Assumptions
(385,395)
Contributions — Employer
_
Contributions — Employees
_
Net Investment Income
_
Benefit Payments, Including Refunds of Employee Contributions
(102,025)
Administrative Expense
_
Other Changes
28
Net Changes
g
......... (321.292.,
Balance at 12/31/2022
$ 3,173,612
The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 4.05%, as
well as what the City's total Plan OPEB liability (asset) would be if it were calculated using a discount rate that
is 1 -percentage -point lower (3.05%) or 1 -percentage -point higher (5.05%) than the current rate:
1% Decrease in
Discount Rate
3.05%
Total OPEB Liability $3,344,052
1% Increase in
Discount Rate Discount Rate
4.05% 5.05%
$3,173,612 $3,030,759
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
I% Decrease Assumption 1% Increase
Total OPEB Liability $2,956,216 $3,173,612 $3,410,868
63
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes „on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
OPEB PlanNet 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 Ex, ense andDeferredOutflows of Resources and Deferred Inflows mof Resources Related to OPEBs
For the year ended September 30, 2023, the City recognized OPEB expense in the amount of $(31,690).
The aggregate OPEB expense for the Supplemental Death Benefits Fund and the City of Paris Retiree Health
Care Plan for the year ended September 30, 2023 was $(15,746).
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEBs from the following sources:
Difference Between Expected and Actual Economic Experience
(Net of Current Year Amortization)
Changes in Actuarial Assumptions
Contributions Subsequent to the Measurement Date
Total
Deferred Outflows
of Resources
118,082
161,174
Deferred Inflows
of Resources
201,242
304,473
$ 279.256 $ 505,715
$161,174 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to OPEB,
will be recognized in pension expense as follows:
Fiscal Year Ended September 30,
2024
$ (129,030)
2025
(122,004)
2026
(103,122)
2027
(33,477)
2028
-
Thereafter
-
Total $ i387,633'b
64
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds, (Continued)
H. Water Sales and Commitments
1. Water Sales
The City has contracts extending for several years to sell treated and untreated water to six entities. Total
water sales under these contracts to these entities during the year ended September 30, 2023, were
approximately $3,060,704.
2. Construction Commitments
The City has active construction projects as of September 30, 2023. At year-end, the City's commitments
with contractors are as follows:
Propect ..._.... .. To Date Commitment
Sewer and Water System Replacement and
Related Street Reconstruction $ 22,040,820 $ 1,158,181
Waste Water Treatment Plant Improvements —
Phase 1...... 5,102,962 57,749,680
Total $ 27,143,782 $ 58,907,861
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, 2023, 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, 2023 is $99,178.
65
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
Detailed Notes on All Activities andlunds (Continued)
H. Water Sales and Commitments (Continued)
6. Other Commitments - PEDC
Metro Gate — On January 22, 2021, the Board of Directors 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 $69,000.
Lionshead Specialty Tire and Wheel — On June 21, 2022, the Board of Directors reached a performance
agreement with Lionshead Paris, LLC. PEDC will invest up to $807,526 in cash, land, and improvements
in connection with a new assembly and warehousing plant, job creation, and employment retention. The
remaining balance is estimated to be $583,320.
Universal Fabricating USA, Inc. — On February 21, 2023, the Board of Directors reached a performance
agreement with Universal Fabricating USA, Inc. PEDC will provide up to $600,000 for the creation of 100
full-time employees paid out in installments over 5 years and $75,000 as an employee relocation grant. The
remaining balance is estimated to be $600,000.
Ametsa Packaging, LLC — On July 12, 2023, the Board of Directors reached a performance agreement with
Ametsa Packaging, LLC. PEDC will provide up to $665,000 for the creation of 95 full-time employees
paid out in installments over 5 years and $100,000 as an equipment relocation grant. The remaining balance
is estimated to be $765,000.
Huhtamaki, LLC — On June 15, 2023, the Board of Directors reached an incentive agreement with
Huhtamaki, LLC. PEDC will provide land, with a fair value of approximately $376,000, and a rail road
infrastructure grant in the amount of $625,000. The remaining balance is estimated to be $625,000.
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, 2023. There have been no settlements in excess of insurance coverage in any of the prior
three fiscal years.
J. Financed Purchases
In September 2015, the City began leasing equipment under an agreement classified as a financing purchase due
to a bargain purchase option. Equipment purchased through the agreement are pledged as security for
repayment of the lease liability. The present value and accumulated amortization are as follows:
Financed Purchase — Equipment, at Cost $ 617,114
Less: Accumulated Amortization 478,739
Financed Purchase — Equipment, Net $ 1389375
66
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued)
J. Financed Purchases (Continued)
The future minimum payments required under the financing purchase and the present value of the net minimum
payments as of September 30, 2023, are as follows:
Year EndmE September 30,Amount
................
2024 $ 72,353
2025 72,353
Total Minimum Payments 144,706
Less: Amount Representing Interest 6,331
Present Value of Net Minimum Payments 138,374
Less: Current Maturities of Financing Purchase Obligation (68,200)___
Long -Term Portion of Financing Purchase Obligation $ 70,174
In January 2016, the City began leasing equipment under an agreement classified as a financing purchase due to
a bargain purchase option. Equipment purchased through the agreement are pledged as security for repayment
of the lease liability. The present value and accumulated amortization are as follows:
Financed Purchase —Equipment, at Cost $ 975,185
Less: Accumulated Amortization 651,823
Financed Purchase — Equipment, Net $ 323,362
The future minimum payments required under the financing purchase and the present value of the net minimum
payments as of September 30, 2023, are as follows:
Year Ending September 30, Amount
2024 _.... $ 114,337
2025 114,337
2026 114,337
Total Minimum Payments 343,011
Less: Amount Representing Interest (19,649)
Present Value of Net Minimum Payments 323,362
Less: Current Maturities of Financing Purchase Obligation 104,635)
Long -Term Portion of Financing Purchase Obligation $ 218,727
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
67
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed.Notes,on All Activities and Funds (Continued)
K. Long -Tenn 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
$9,750,000 General Obligation Bonds, Series 2017, due in annual installments varying from $430,000 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, landscaping, 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. The bonds are reported as General
Obligation debt.
$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 0.75% 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 $2,010,000 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 $375,000 to
$535,000 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.
$1,390,000 General Obligation Bonds, Series 2018, due in annual installments varying from $130,000 to
$130,000 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,
landscaping, sidewalks, traffic safety and operational improvements, the purchase of any necessary right -of -
68
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities mmand ,Funds (Continued)
K. Long -Term Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long -Term Obligations (Continued)
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 $145,000 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 $190,000 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 contractual 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
$195,000 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.
$12,355,000 General Obligation Pension Bonds, Taxable Series 2022, due in annual installments varying from
$270,000 to $855,000 with final payment due on June 15, 2042. Interest is payable semi-annually at rates
ranging from 4.0% to 5.0%. On June 15, 2031, or on any date thereafter, the bonds may be redeemed prior to
their scheduled maturities at the City's option. The bonds were issued August 31, 2022 at a discount for the
purpose of fund all or any part of an unfunded, accrued liability of the City to a public pension fund as
determined by actuarial analysis. The bonds are reported as obligations of the Enterprise Fund.
GS']
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued)
K. Long -Tenn Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long -Term Obligations (Continued)
$26,795,000 Waterworks and Sewer System Revenue Bonds, Series 2022, due in annual installments varying
from $375,000 to $1,725,000 with final payment due on June 15, 2051. Interest is payable semi-annually at
rates ranging from 4.0% to 5.25%. On June 15, 2031, or any date thereafter, the bonds may be redeemed prior
to their scheduled maturities at the City's option. The bonds were issued on November 9, 2022, at a discount for
the purpose of acquiring, constructing, installing and equipping additions, improvements and extensions to the
City's waterworks and sewer system. The bonds are reported as obligations of the Enterprise Fund.
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, 2023, the fund balances in the Interest and
Sinking Funds are $2,002,722.
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, 2023, follows:
Governmental Activities
Debt Payable
Bonds Payable
Tax Notes Payable
Premium
Financed Purchases
Total Debt Payable
Compensated Absences
Right -to -use Lease Liability
Right -to -use SBITA Liability
Landfill Post -Closure
Care Costs
Governmental Activities
Long -Term Liabilities
Balance
Balance
September 30,
September 30,
Due Within
2022
Additions
Reductions
2023
One Year
$ 10,605,000
$ -
$ 745,000
$ 9,860,000
$ 765,000
770,000
-
190,000
580,000
190,000
98,032
-
11,470
86,562
-
62%538
-
167,801
461,737172,835
12,102,570
-
1,114,271
10,988,299
1,127,835
1,250,858
918,816
871,959
1,297,715
135,637
218,870
13,421
53,850
178,441
41,395
-
218,091
50,567
167,524
36,772
150,000
-
-
150,000
-
$ 13,722,298
$ 1,150,328
$ 2,090,647
$ 12,781,979
$ 1,341,639
70
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed „Notes on„All „Activities wand Funds (Continued)
K. Long -Term Liabilities (Continued)
General Obligation Certificates of Obligation and Other Long -Term Obligations (Continued)
Business -Type Activities
Debt Payable
Bonds Payable
Tax Notes Payable
Premium
Discount
Total Debt Payable
Compensated Absences
Right -to -use SBITA Liability
Business -Type Activities
Long -Tenn Liabilities
Component Unit
Balance Balance
September 30, September 30, Due Within
2022 Additions Reductions 2023 One Year
$ 46,585,000 $ 26,795,000 $ 3,020,000 $ 70,360,000 $ 3,530,000
43,855,000 - 1,210,000 42,645,000 1,885,000
2,828,000 - 253,467 2,574,533 -
�44,080Ymm �w „w (292x129) 13.374 i322.835b -
93,223,920 26,502,871 4,470,093 115,256,698 5,415,000
222,773 180,262 180,262 222,773 22,277
- 207 40,063 167,524 36,772
$ 93,446,693 $ 26,890,720 $ 4,690,418 $ 115,646,995 $ 5,474,049
Notes Payable $ 2,393,121 $ - $ 145,199 $ 2,247,922 $ 148,337
Component Unit
Long -Term Liabilities $ 2,393,121 $ - $ 145,199 $ 2,247,922 $ 148,337
For governmental activities, pension -related debt and compensated absences are liquidated by the general fund.
Long-term debt service requirements for the next five years and after, in five year increments, are as follows:
Year Ending
General Obligation
_w_w_ m
Water and Sewer
PEDC
September
Principal
Interest
Principal
Interest
Principal
Interest
...-.._ 30, ....
....... _..
_
_
_.__-.
2024....
$....... 955,000.
$ 249,868
$ 5,415,000
$ 4,350,215
$ 148,337
$ 46,656
2025
980,000
229,759
5,840,000
4,091,213
151,542
43,451
2026
995,000
208,568
4,310,000
3,854,901
154,817
40,176
2027
825,000
188,097
4,495,000
3,528,276
158,163
36,830
2028
845,000
168,463
4,675,000
3,488,892
161,581
33,412
2029-2033
3,405,000
591,453
26,290,000
14,177,254
1,473,482
84,078
2034-2038
2,435,000
175,846
17,175,000
9,536,640
-
-
2039-2043
-
-
17,150,000
6,467,289
-
-
2044-2048
-
-
16,400,000
3,582,444
-
-
2049-2051
-
-
11,255,000
728,631
-
-
Totals
$10,440,000
.$1,812,05,4
$113,005,000
$53,805,755
$2,247,922
$284,603
71
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed NotesW on All Activities and Funds (Continued)
K. Long -Term Liabilities (Continued)
PEDC has an outstanding $2,500,000 Note Payable to the City issued December 27, 2021, due in monthly
installments of $16,249 through November 27, 2031 and a final payment of $940,083 on December 27, 2031,
bearing an interest rate of 3.14%. At September 30, 2023, the balance of the Note Payable was $2,247,922.
L. Leases
Lease Receivable
The City, as a lessor, leases City -owned properties such as land, tower space, and airport hangars. The related
receivables are presented in the Statement of Net Position for the amounts equal to the present value of lease
payments expected to be received during the lease term. Revenue recognized under GASB 87 lease contracts
during the year ended September 30, 2023 was $213,387, which includes both lease revenue and interest.
As of September 30, 2023, the City had fifty-five active leases. The leases have receipts that range from $335 to
$25,673 and interest rates that range from 0.2480% to 3.3600%. As of September 30, 2023, the total combined
value of the lease receivable is $2,174,181, the total combined value of the short-term lease receivable is
$153,808, and the combined value of the deferred inflow of resources is $2,111,393. The leases had no variable
receipts or other receipts not included in the lease receivable with in the fiscal year.
The City expects to receive the following lease receivable amounts for Governmental Activities in subsequent
years as follows:
Year Ending
General Activities
September 30,
Principal
Interest
2024
$ 153,808
$ 39,666
2025
160,572
37,254
2026
167,641
34,719
2027
174,922
32,058
2028
174,322
29,367
2029-2033
593,847
112,165
2034-2038
465,327
63,187
2039-2043
193,333
23,596
2044-2048
17,958
7,843
2049-2053
17,634
6,166
2054-2058
19,357
4,443
2059-2063
21,248
2,552
2064-2068
13,772
638
2069-2070
440
8
Totals $ 2,174,181 $ 393,662
72
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes onW All Activities and Funds (Continued)
L. Leases (Continued)
Lease Liability
The City, as a lessee, has entered into lease agreements involving equipment. The related obligations are
presented in the amounts equal to the present value of lease payments, payable during the remaining lease term.
As the lessee, a lease liability and the associated lease asset is recognized on the government -wide Statement of
Net Position. The City did not incur expenses related to its leasing activities related to residual value guarantees,
lease termination penalties or losses due to impairment. As a lessee, there are currently no agreements that
include sale-leaseback and lease -leaseback transactions.
As of September 30, 2023, the City had twelve active leases. The leases have payments that range from $647 to
$32,734 and interest rates that range from 0.2480% to 4.8860%. As of September 30, 2023, the total combined
value of the lease liability is $178,441, the total combined value of the short-term lease liability is $41,395. The
combined value of the right to use asset, as of September 30, 2023 of $280,928 with accumulated amortization
of $101,545 is included with the lease class activities table found below. The leases had no variable payments or
other payments not included in the lease liability with in the fiscal year.
As of Fiscal Year -End
Lease Asset Accumulated
Asset Class Value Amortization_
,m.�.n_.....
Equipment $ 280,928 $ 101,545
...........
Total Subscriptions $ 280,928 $ 101,545
As of September 30, 2023, the City had a minimum principal and interest payment requirements for its leasing
activities, with a remaining term more than one year, as follows:
Year Ending
Governmental Activities
September 30,
Pring aa1Interest
2024
$ 41,395.
$ 7,378
2025
37,371
5,975
2026
34,903
4,524
2027
32,285
3,056
2028
32,487
1,541
Totals $ 178,441 $ 22,474
M. Subscription -Based Information Technology Arrangements (SBITA)
For the year ended September 30, 2023, the financial statements include the adoption of GASB Statement No.
96, Subscription -Based Information Technology Arrangements. The primary objective of this statement is to
enhance the relevance and consistency of information about governments' subscription activities. This
statement establishes a single model for subscription accounting based on the principle that subscriptions are
financings of the right to use an underlying asset. Under this Statement, an organization is required to recognize
a subscription liability and an intangible right -to -use subscription asset.
73
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued) .
M. Subscription -Based Information Technology Arrangements (SBITA) (Continued)
As of September 30, 2023, the City has three active subscriptions. The subscriptions have payments that range
from $4,168 to $80,125 and interest rates that range from 3.1200% to 3.1600%. As of September 30, 2023, the
total combined value of the subscription liability is $335,048, and the total combined value of the short-term
subscription liability is $73,544. The combined value of the right to use asset,. as of September 30, 2023 of
$425,677 with accumulated amortization of $35,007 is included within the subscription class activities table
found below. The subscriptions had no variable payments or other payments not included in the subscription
liability within the fiscal year. Beginning balances of subscription liabilities is immaterial to the financial
statements and therefore, required to restatement of prior periods.
As of Fiscal Year -End
Subscription
Accumulated
Asset Class Asset Value Amortization
Software m$_.... 425,677 $ 35,007
Total Subscriptions $ 425,677 $ 35,007
As of September 30, 2023, the City had a minimum principal and interest payment requirements for its SBITA
activities, with a remaining term more than one year, as follows:
Year Ending
General Activities
Business- T gie Activities
1.Se Member 30,
Prmci gal
f
Interest
P incite-
Interest
2024
$ 36,772
$ 5,294
$ 36,772
_
$ 5,294
2025
40,037
4,132
40,037
4,132
2026
43,511
2,867
43,511
2,867
2027
47,204
1,492
47,204
1,492
Totals
$ 167,524
$ 13,785
$ 167,524
$ 13,785
N. Interfund Transactions and Balances
During the year ended September 30, 2023, the City made transfers from the Water and Sewer fund to the
General fund of $1,108,349 to reclassify grant revenue. Other minor transfers were made between funds making
up transfers of:
Capital Other Water and
ww
Genera Projects Governmental .� l Sewer Transfers Out
.. mmmm
General $ $ 410,000 $ 105,915 $ 1,306,850 $ 1,822,765
Other Governmental 33,680 - - - 33,680
Water and Sewer1,149,431 - - - 1,149,431
Transfers In $ 1,183,111 $ 410,000 $ 105,915 $ 1,306,850 $ 3,005,876
74
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed -Notes on All Activities and Funds (Continued)
N. Interf ind Transactions and Balances (Continued)
Due To/Due Froms for the year ended September 30, 2023 consisted of the following:
Due to Debt Service Fund From:
Water Sewer Fund $ 70,000
General Fund 2,637
Total Due to Debt Service Fund $ 72ab37
Due to Special Revenue Fund From:
General Fund $ 82,712
Total Due to Special Revenue Fund $ 82,712
Due to Fiduciary Fund From:
General Fund $ 700
Total Due to Fiduciary Fund $ 700
The amounts payable to the Funds above relate to operating activities. These balances are scheduled to be
collected in the subsequent year.
O. 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, 2023, these accounts, shown as cash and investments on the Statement of Net Position
— Proprietary Funds, are as follows:
Reserve Fund
Contingency Fund
$ 10,453,172
678,097
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:
75
Other
Receivables
..—...........—
$ 778,990
$ 778,990
Certificates of
Deposit and
Cash and Cash
Other
Equivalents
Investments
Grants Receivable
$ -
$
Lake Crook
4,156
-
Contingency
616,760
61,337
Loan
40,553
-
Bond Reserves and Sinking Funds
3,040,178
7,412,994
Construction
2,854,876
47,772,560
Other
232.853
-
Total Restricted Assets
$ 6,789,376$
$ 55 246 891
75
Other
Receivables
..—...........—
$ 778,990
$ 778,990
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All Activities and Funds (Continued)
P. 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.
Q. 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 waste water utility system was estimated as of September 30, 2023 to
be $5,517,834. 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 waste water utility system
laws and regulations. At September 30, 2023, there were no assets restricted to pay this liability.
R. Tax Abatements
As of September 30, 2023, the City provides tax abatements through two programs -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 Proram,
Industrial Incentives
Residential
76
Amount ,mof Taxes „Abated „ 2022-23,,,,,,
$ 1,235,526
13,314
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2023
IV. Detailed Notes on All mActivities _and Funds (Continued)
S. Subsequent Events
Subsequent events have been evaluated through December 19, 2024 the date the financial statements
were available to be issued.
In November 2023, the City approved a construction contract in the amount of $588,000 for demolition of
City property.
In December 2023, the City approved a contract in the amount of $237,769 for asbestos removal. In
addition, the City also approved a construction project in the amount of $507,937 related to water line
construction.
In April 2024, the City issued $42,790,000 Combination Tax and Surplus Revenue Certificates of
Obligation, Series 2024 for the purpose of acquiring, constructing, installing and equipping additions,
improvements and extensions to the City's waterworks and sewer system. The interest rate is payable
semi-annually at rates ranging from 4.0% to 5.0%, with the final payment due on June 15, 2054.
In April 2024, the City approved a construction contract in the amount of $39,988,500, for Phase 2
construction of the Wastewater Treatment Plant Project. In addition, the City approved a professional services
agreement for $461,250 in relation to the same project.
In May 2024, the City approved a construction contract in the amount of $547,840, for the construction of
eight pickleball courts.
77
REQUIRED SUPPLEMENTARY INFORMATION
Total Pension Liability
Service Cost
Interest
Changes in Benefil Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employce Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Employee
Net Investment Income
Benefit Payments, Including Refunds of Employce Contributions
Administrative Expense
Other
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending
City's Net Pension Liability (Asset) - Ending
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
Covered Payroll
City's Net Pension Liability as s Percentage of Covered
Payroll
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
78
CITY OF PARIS, TEXAS
Schedule 1
Required
Supplementary Information
Texas Municipal Retirement
System -
Schedule of Changes in Net Pension Liability
and Related Ratios
Year Ended September 30, 2023
Plan Year Ended December 31,
2022
2021
2020
2019
2018
2017
2016
2015
2014
$ 1,660,689
5 1,443,089
$ 1,184,350
$ 1,233,792
$ 1,198,978
$ 1,192,255
$ 1,190,613
$ 1,084,666
$ 1,084,779
4,595,080
4,487,312
4,344,087
4,233,112
4,092,798
3,952,930
3,826,176
3,718,773
3,592,818
-
390,679
-
-
-
-
1,615,467
-
(18,490)
(749,803)
(321,817)
(260,390)
(118,708)
19,208
(211,467)
(159,282)
(191,294)
-
-
-
(110,977)
-
-
-
-
-
(3,907,254)
(3,748,402)
(3,731,229)
(3,122,282)
(3,101,195)
(3,090,075)
(2,766,533)
(2,741,148)
(2,632,638)
2,330,025
1,822,875
1,475,391
1,973,255
2,071,873
2,074,318
2,038,789
3,518,476
1,853,665
68,928,543
67,105,668
65,630,277
63,657,022
61,585,149
59,510,831
57,472,042
53,953,566
52,099,901
S 71,258,568
$ 68,928,543
$ 67,105,668
$ 65,630,277
$ 63,657,022
$ 61,585,149
S 59,510,831
$ 57,472,042
$ 53,953,566
$ 1,049,532
$ 878,482
$ 852,067
$ 845,646
$ 825,989
$ 817,914
$ 669,501
$ 700,159
$ 721,733
999,555
783,806
712,034
730,054
705,973
704,087
701,189
676,545
667,048
(5,492,045)
8,898,242
4,972,797
8,988,070
(1,845,475)
7,698,497
3,607,913
80,774
3,031,103
(3,907,254)
(3,748,402)
(3,731,229)
(3,122,282)
(3,101,195)
(3,090,075)
(2,766,533)
(2,741,148)
(2,632,638)
(47,640)
(41,245)
(32,223)
(50,855)
(35,702)
(39,921)
(40,766)
(49,204)
(31,651)
56,848
282
(1,257)
(1,527)
(1,865)
(2,023)
(2,19 6)
(2 ,430)
(2,602)
(7,341,004)
6,771,165
2,772,189
7,389,106
(3,452,275)
6,088,479
2,169,108
(1,335,304)
1,752,993
75,148,934
68,377,769
65,605,580
58,216,474
61,668,749
55,580,270
53,411,162
54,746,466
52,993,473
$ 67,807,930
$ 75,148,934
$ 68,377,769
$ 65,605,580
3 58,216,474
$ 61,668,749
$ 55,580,270
$ 53,411,162
$ 54,746,466
$ 3,450,638
$ (6,220,391)
$ (1,272,101)
$ 24,697
$ 5,440,548
3 (83,600)
$ 3,930,561
$ 4,060,880
$ (792,900)
95.16%
109.02%
101.90%
99.96%
91.45%
100.14%
93.40%
92.93%
101.471/6
S 14,279,353
$ 12,461,905
$ 11,867,235
$ 12,167,574
$ 11,766,222
$ 11,734,791
$ 11,684,128
$ 11,203,172
$ 11,177,790
24.17%
49.92%
-10.72%
0.20%
46.24%
-0.71%
33.64%
36.25%
-7.09%
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
78
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
ig
CITY OF PARIS, TEXAS
Schedule 2
Required Supplementary Information
Texas Municipal Retirement System -
Schedule of City Pension Contributions
Year Ended September 30, 2023
Fiscal Year Ends) September 30,
2023 2022 2021 2020 2019 2018
2017 2016 2015
Contractually Required Fiscal Year Contribution
$ 947,941 $ 972,171 S 809,036 $ 852,884 $ 834,605 $ 825,691
$ 801,727 $ 733,564 $ 704,441
Contribution in Relation to the Contractually Required
Fiscal Year Contribution
(947,941) (972,171) 809,036) (852,884) (834,605) (825,691)
(801,727) (733,564) (704,441)
Contribution Deficiency (Excess)
$ $ $ $ $ $
$ $ -L--
Covered Payroll
$ 17,888,791 $ 13,050,044 $ 11,761,104 $ 11,975,225 S 11,980,216 $ 11,846,360
$ 11,615,574 $ 12,058,579 $ 11,203,172
Contributions as a Percentage of Covered Payroll
5.30% 7.45% 6.88% 7.12% 6.97°/ 6.97•/
6.90% 6.08% 6.29%
Notes to Schedule
Valuation Date
Actuarially determined contribution rates are calculated as of December 31 and become effective January, 13 months later.
Methods and Assumptions used to Determine Contribution Rates:
Actuarial Cos[ Method
Entry Age Normal
Amortization Method
Level Percentage of Payroll, Closed
Remaining Amortization Perir
20 Years (longest amortization ladder)
Asset Valuation Method
10 year smoothed market; 12% soft corridor
Inflation
2.50%
Salary Increases
3.50'/ to 11.509/6, including inflation
Investment Rale of Return
6.75%
Retirement Age
Experience -based table based on rates that are specific to the City's plan of be.cfls. Last updmed for the 2019
valuation pursuant to an experience studv of the period 2014-2018.
Mortality
Post Retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are pmjected on a fully generational basis with scale UMP.
Pre -retirement PUB(10) mortality tables, with the Public Safety table used for males and the General Employee
table used for females. The rates are oroiccled on a fully generational basis with scale UMP.
Other Information
Opened plan to current and future firelighters.
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
ig
CITY OF PARIS, TEXAS Schedule 3
Required Supplementary Infommtion
Paris Firefighters' Relief and Retirement Fund -
Schedule of Changes in Net Pension Liability and Related Ratios
Year Ended September 30, 2023
Note: The pension schedules in the required sapplesensry information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
80
Plan Yew Ended December 31,
2022
2021
2020
2019
2018
2017
2016
2015
2014
Total Pension Liability
Service Cost
S 185,002
$ 273,163
$ 263,769
$ 244,258
$ 263,477
$ 254,567
$ 258,484
$ 247,353
$ 236,701
Interest
1,139,106
1,128,647
1,098,206
1,081,834
1,109,567
1,094,074
1,109,262
1,092,874
1,087,700
Changes in Benefit Terms
(1,165,161)
-
-
-
-
-
-
-
Differences Between Expected and Actual Experience
(344,787)-
125,175
(650,764)
(65,973)
(238,406)
Changes in Assumptions
733,322
-
-
562,256
-
616,266
-
134,458
Benefit Payments, Including Refunds of Employee Contributions
(1,202,081)
(1,136,694)
(1,016,641)
(1,222,906)
(1,052.502)
(1,249,430)
(1,136,379)
(1,156,654)
(1.200,964)
Net Change is Total Pension Liability
(654,599)
265,116
470,509
103,186
232,034
99,211
781,660
183,573
19,489
Total Pension Liability - Beginning
16.127,851
15.862,735
15,392,226
15,289,040
15,057,006
14,957,795
14.175,471
13,991,898
13,972,409
Total Pension Liability -Ending
$ 15,473,252
$16,127,851
$ 15,862,735
$15,392,226
$ 15,289.040
$ 15,057,106
$ 14,957,131
$ 14,175,471
$ 13,991,898
Plan Fiduciary Net Position
Contributions -Employer
S 12,521,952
S 457,000
S 388,839
$ 393,136
$ 336,951
$ 326,396
S 317,902
S 310,483
$ 281,896
Contributions - Employee
425,088
522,286
444,388
449,298
411,944
407,996
397,475
388,212
352,370
Net Investment Income
(1,048,039)
471,438
482,463
758,981
(302,649)
578,324
377,387
(121,104)
245,555
Benefit Payments, Including Refunds of Employee Contributions
(1,202,081)
(1,136,694)
(1,016,641)
(1,222,906)
(1,052,502)
(1,249,430)
(1,136,379)
(1,156,654)
(1,200,964)
Administrative Expense
(41,262)
(52,994)
(25,739)
(33,025)
(31,444)
(37,553)
(70,404)
(6,500)
(84,445)
Other
5
2,121
5,315
Net Change in Plan Fiduciary Net Position
10,655,658
261,036
273,310
345,484
(637,700)
25,738
(111,898)
(585,563)
(400,273)
Plan Fiduciary Net Position - Beginning
5,032,140
4,771,104
0.497,794
4,152,310
4,790.010
4,764.272
4,876.170
5,461,733
5,862.006
Plan Fiduciary Net Position - Ending
S15,687,798
S 5,032,140
S 4,771,104
$ 4,497,794
S 4,152,310
S 4,790,010
S 4,764,272
S 4,876,170
S 5,461,733
City's Net Pension Liability (Asset) - Ending
S (214,546)
S 11,095,711
$ 11,091,631
$ 10,894,432
$ 11,136,730
$ 10,266,996
S 10,192,859
$ 9,299,301
$ 8,530,165
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability
101.39%
3120%
30.10%
29.20°/
27.16%
31.81%
31,85%
34.40%
39.03%
Covered Payroll
$ 3,542,400
S 3,264,288
$ 2,777,425
$ 2,808,113
$ 2,712,961
$ 2,717,229
$ 2,785,912
S 2,511,047
S 2,368,370
City's Net Pension Liability as a Percentage of Covered
Payroll
-6.069/6
339.91%
399.30%
388.00%
410.50%
377.85%
365.87°/
370.34%
360.17°/
Note: The pension schedules in the required sapplesensry information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
80
CITY OF PARIS, TEXAS
Required Supplementary Information
Pads Firefighters' Relief and Retirement Fund
Schedule of City Contributions
YearEnded September 30, 2023
Schedule 4
Notes to Schedule
Valuation Date Dccemba 31, 2022
Methods and Assumptions used to Determine Contribution Rates:
Actuarial Cost Method
Normal to Pure Unit Credit
Asset Valuation Method
Market Value of Assets
Fiscal Y=Ended September 30,
Active merrbers who are eligible for the DROP are assurred to retire immediately. Otherwise, actives are assumed to retire an
age 55, or current age if older. Previously, active members were assumed to retire 2 years after Otey bad either (a) both attained
2023
2022
2021
2020
2019
2018
2017
2016
2015
Contractually Required Fiscal Year Contribution
$ 12,521,952
S 457,000
$ 388,839
$ 393,157
$ 336,951
$ 326,067
$ 320,851
$ 332,665
$ 301,329
Contribution in Relation to the Commctuslly Required Fiscal Year Contribution
(12.521,952)
(457,000)
(388,839)
(393,157)
(336,951)
(326,067)
(320,851)
(332,665)
(301,329)
Contribution Deficiency(Excess)
$
$
S
S
S
$
S
$
S
Covered Payroll
S -
$ 3,582,668
S 2,777.425
S 2,817,872
$ 2,713,093
$ 2,717,229
$ 2,795,465
$ 2,772,967
$ 2,511,047
Contributions as a Percentage of Covered Payroll
0.001/6
12.76%
14.00%
13.95%
12.42%
12.00%
11.48%
12.00%
12.00%
Notes to Schedule
Valuation Date Dccemba 31, 2022
Methods and Assumptions used to Determine Contribution Rates:
Actuarial Cost Method
Normal to Pure Unit Credit
Asset Valuation Method
Market Value of Assets
Retirement Am
Active merrbers who are eligible for the DROP are assurred to retire immediately. Otherwise, actives are assumed to retire an
age 55, or current age if older. Previously, active members were assumed to retire 2 years after Otey bad either (a) both attained
age 55 and completed at least 20 years of service or (b) satisthed the ride of 80. Benefits for vested terminated numbers who
had less than 10 years of service at the planfr"u and thus are due a refund of contributions are assumed to be paid 6 months
fo0oiwng the valuation date, July L 2023. Otherwise, terminated vested participants are assumed to start on the same date a5
roost retirement benefits. See below for plan changes.
Mortality
Employ" and healthy annuitant rates from the Pub -2010 Public Safety Below Median Mortality Table, gerumtionally
projected using the ultimate rates of the MP -2021 improvement scales.
77e plan is Dozen to new erdrants and benefit uccnanls are furze. as of October 1, 2022. Norr d Retirement Date clanged
Other Information
from age 55 with 20 years of service to age 55 and Early Retirement Eligibility, the Rule of 80 was limited to those that already
have 20 years of service as of the plan freeze date. Members are new eligible for in-service distributions once they reach
retirement eligibility rather than having to terminate. Eligibility for the DROP was fmun to those eligible as of the plan freeze
date. The pre -retirement death benefit is based on the froun benefit without the rmmmumbenefit based on 20 years of service
and the diability benefit was reduced to the Texas Local Firefighters Retirement Act minimum if $1,200 per year until reaching
age 55 at which point ravening to the fmun benefit Finally, active members ceased making contributions to the fund.
Note: The pension Schedules in the requited Supplementary information are intended to show information for ten years. Additional years' information will be displayed m it becomes available.
-31
Total OPEB Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered Payroll
City's Total OPEB Liability as a Percentage of Covered
Payroll
Notes to Schedule
Valuation Date
Methods and Assumptions used to Determine Contribution Rates:
CITY OF PARIS, TEXAS
Required Supplementary Information
Texas Municipal Retirement System -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30, 2023
Schedule 5
Plan Year Ended December 31,
2022 2021 2020 2019 2018 2017
$ 71,397 $
64,802 $
42,722 $
26,769 $
30,592 $
26,990
27,229
25,046
32,883
37,003
33,951
33,850
(44,459)
(28,573)
(34,781)
(40,603)
(13,049)
m
(476,731)
44,084
175,630
178,024
(67,751)
76,984
w , i V
y a
f 1 M _.....�,._...
,.51.,
9413)
L93W
(459,690)
77,204
205,773
190,242
(25,670)
128,436
m.. 1.4...._
1_385480
1,179,707
989.465
1,015,135
586 .699
$ 1,002,994 $
1,462,654 $
1„385,480 $
,,,,,,...e,,._. ..,m....-�,,...--
1,179,707 $
... ___•
989..465 $
1,015,135
$ 14,279,353 $
12,461,905 $
11,867,235 $
12,167,574 $
11,766,222 $
11,734,791
7.02%
11.74%
11.67%
9.70%
8.41%
8.65%
Actuarially determined contribution rates are calculated as of December 31, and become effective in January 13 months later.
Inflation
2.501%
Salary Increases
3.50% to 11.50°/, including inflation.
Investment Rate of Return
2.00%
Mortality
Service retirees: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully
generational basis with scale UMP. Disabled retirees: 2019 Municipal Retirees of Texas Mortality Tables with
a 4 year set -forward for males and a 3 year set -forward for females. In addition, a 3.3% and 3% minimum
mortality rate will be 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.
Other Information
There were no benefit changes during the year.
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
82
Total OPEB Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Changes in Assumptions
Benefit Payments, Including Refunds of Employee Contributions
Other Changes
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending
Covered Payroll
City's Total OPEB Liability as a Percentage of Covered
Payroll
Notes to Schedule
Valuation Date
CITY OF PARIS, TEXAS
Required Supplementary Information
City of Paris Retiree Health Care Plan -
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ended September 30, 2023
Schedule 6
Plan Year Ended December 31,
2022 2021 2020 2019 2018 2017
$ 107,089 $
46,370 $
45,329 $
34,501 S
36,808 $
36,410
64,353
34,083
44,410
60,652
55,250
61,432
-
1,923,344
-
-
-
(5,342)
(250,340)
(10,649)
(174,952)
(10,869)
-
(385,395)
91,261
68,964
120,032
(36,122)
51,925
(102,025)
(61,564)
(57,093)
(74,044)
(82,466)
(103,929)
28
ITIT ITITITIT IT(321,292)--...
1,783,154
90,961
(33,811)
(37,399)
45,838
3,494,904
1,711 750
1 620 789 _____L654
600
1.691,999
1.,646,161
$ 3,173,612 $
3,494,904 $
1 711 750 $
1 620 789 $
1,654,600 $
1,691,999
$ 3,777,068 $
3,826,545 $
3,522,249 $
3,799,135 $
4,814,704 $
5,284,495
84.02%
91.33%
48.60%
42.66%
34.37%
32.020%
December 31, 2022
Methods and Assumptions used to Determine Contribution Rates:
Actuarial Cost Method
Individual Entry -Age Normal
Discount Rate
4.05% as of December 31, 2022
Inflation
2.501%
Salary Increases
3.50% to 11.50% for TAM and 4.10% to 6.00% for Firefighters, including inflation
Demographic Assumptions
TMRS: Based on the experience study covering the four-year period ending December 31, 2018 as conducted for the Texas
Municipal Retirement System (TMRS). Firefighters: Based on those disclosures in the Paris Firefighters' Relief and
Retirement Fund pension valuation report as of December 31, 2020.
Mortality
TMRS: For healthy retirees, the gender distinct 2019 Municipal Retirees of Texas mortality tables are used. The rates are
projected on a fully generational basis using the ultimate mortality improvement rates in the MP tables published through
2019 to account for future mortality improvements. Firefighters: For healthy retirees, the Pub -2010 Public Safety Below
Median Healthy Retirce mortality tables are used. The rates are projected on a fully generational basis using the ultimate
mortality improvement rates in the MP -2018 tables to account for future mortality improvements.
Health Care Trend Rates
Initial rate of 7.00°/a declining to an ultimate rate of 4.15% after 13 years; the City's subsidy is assumed to increase by 3.00%
per year.
Participation Rates
95% of eligible TMRS employees and Firefighters
Other Information
The discount rate changed from 1.840% as of December 31, 2021 to 4.05% as of December 31, 2022.
Note: The pension schedules in the required supplementary information are intended to show information for ten years. Additional years' information will be displayed as it becomes available.
83
COMBINING AND INDIVIDUAL NONMAJOR
FUND STATEMENTS AND SCHEDULES
CITY OF PARIS, TEXAS
Nonmajor Governmental Funds
September 30, 2023
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.
Cox Field Airport Fund — This fund accounts for activities of Cox Field Airport.
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.
84
ASSETS
Cash and Cash Equivalents
Investments
Receivables
Accounts (Net)
Leases
Inventories
Prepaid Items
Due from Other Funds
Due from Other Governments
Total Assets
LIABILITIES
Accounts Payable
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue Related to Leases
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Inventory
Permanent Library Funds
Restricted for:
Law Enforcement
Community Development
Assigned:
Library
Community Development
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
CITY OF PARIS, TEXAS Schedule 7
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2023
$ 238,210 $ 1,579,383 $ 956,627 $ 81,211 $ 2,855,431 $ 100,530 $ 2,955,961
85
Special Revenue
Permanent
Community
Total
Development
Special
Library
Library
Nonmajor
Block
Revenue
Cox Field
Memorial
Trust
Governmental
Grant
Fund
Airport
Funds
Total
Funds
Funds
$ 41,202
$ 1,566,671
$
$ 81,211
$ 1,689,084
$ 633
$ 1,689,717
197,008
-
-
197,008
99,897
296,905
-
9,977
9,977
-
9,977
-
824,370
824,370
-
824,370
-
1,975
1,975
-
1,975
-
1,383
1,383
-
1,383
12,712
70,000
82,712
-
82,712
-
-
48,922
48,922
-
48,922
$ 238,210
$ 1,579,383
$ 956,627
$ 81,211
$ 2,855,431
$ 100,530
$ 2,955,961
$
$ 7,437
$ 28,390
$
$ 35,827
$
$ 35,827
7,437
28,39035,827
35,827
802„271
802,271
802.271
802,271
802,271
802,271
-
1,975
1,975
1,975
-
-
-
100,530
100,530
1,408,798
-
1,408,798
-
1,408,798
-
163,148
123,991
287,139
287,139
-
-
-
81,211
81,211
81,211
238,210
„ -
-
238,210
-
238,210
238,210
1,571,946
125,966
81,2111
....,.
2,017,333
100,530
2,117,863
$ 238,210 $ 1,579,383 $ 956,627 $ 81,211 $ 2,855,431 $ 100,530 $ 2,955,961
85
REVENUES
Fees and Fines
Hotel Occupancy Taxes
Intergovernmental
Leases
Charges for Services
Use of Money and Property
Miscellaneous
Total Revenues
EXPENDITURES
Current
General Government
Public Safety
Cox Field
Culture and Recreation
Capital Outlay
Public Works
Cox Field
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 Balances
Fund Balances - Beginning
Fund Balances - Ending
CITY OF PARIS, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2023
40,798 - -
2,968 - -
- 975,641 -
- 8,193
85,180 - -
- 290,800 -
128,946 1,266,441 8,193
14,743 130,840 47,736 2,063
105,915 -
(10,130) (23,550)
95,785 (23,550)
40,798
2,968
975,641
8,193
85,180
290,800
1,403,580
Schedule 8
Total
Nonmajor
Governmental
Funds
$ 28,373
49,842
341,118
99,258
848,777
112,528
120,713
1,600,609
40,798
2,968
975,641
8,193
85,180
290,800
1,403,580
195,382 1,647 197,029
105,915
(33,680)
72,235
105,915
(33,680)
72,235
14,743
226,625
Special Revenue
2,063
267,617
Permanent
Community
223,467
1,345,321
101,780
79,148
1,749,716
Development
1,848,599
$ 238,210
Library
$ 125,966
Library
Block
Special
Cox Field
Memorial
Trust
Grant
Revenue
Airport
Funds
Total
Funds
$ -
$ 28,373
$ -
$ -
$ 28,373
$ -
-
49,842
-
-
49,842
-
-
17,196
323,922
-
341,118
-
-
-
99,258
-
99,258
-
-
-
848,777
-
848,777
-
14,743
69,952
20,186
6,000
110,881
1,647
-
94,423
22,034
4,256
120,713
-
14,743
259,786
1,314,177
10,256
1,598,962
1,647
40,798 - -
2,968 - -
- 975,641 -
- 8,193
85,180 - -
- 290,800 -
128,946 1,266,441 8,193
14,743 130,840 47,736 2,063
105,915 -
(10,130) (23,550)
95,785 (23,550)
40,798
2,968
975,641
8,193
85,180
290,800
1,403,580
Schedule 8
Total
Nonmajor
Governmental
Funds
$ 28,373
49,842
341,118
99,258
848,777
112,528
120,713
1,600,609
40,798
2,968
975,641
8,193
85,180
290,800
1,403,580
195,382 1,647 197,029
105,915
(33,680)
72,235
105,915
(33,680)
72,235
14,743
226,625
24,186
2,063
267,617
1,647
269,264
223,467
1,345,321
101,780
79,148
1,749,716
98,883
1,848,599
$ 238,210
$ 1,571,946
$ 125,966
$ 81,211
$ 2,017,333
$ 100,530
$ 2,117,863
86
Other Financing Sources (Uses)
Transfers In
CITY OF PARIS, TEXAS
205,000
Schedule 9
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Transfers Out
-
Budget and Actual
(33,680)
(33,680)
Total Other Financing
Special Revenue Funds
Year Ended September 30, 2023
205,000
205,000
72,235
Budgeted Amounts
Net Changes in Fund Balance
Variance with
(117,335)
Original Final
Actual
Final Budget
REVENUES
1,749,716
1,749,716
-
Fees and Fines
$ 43,800 $ 43,800
$ 28,373
$ (15,427)
Hotel Occupancy Taxes
45,000 45,000
49,842
4,842
Intergovernmental
255,000 255,000
341,118
86,118
Leases
- -
99,258
99,258
Charges for Services
750,000 750,000
848,777
98,777
Interest Earned
2,655 2,655
110,881
108,226
Miscellaneous
163,341 163,341
120,713
(42,628)
Total Revenues
1,259,796 1,259,796
1,598,962
339,166
EXPENDITURES
Municipal Court
39,050 39,050
40,798
(1,748)
Police
66,000 66,000
2,968
63,032
Public Works
- -
85,180
(85,180)
Culture and Recreation
- -
8,193
(8,193)
Health
3,000 3,000
-
3,000
Cox Field
1,474,081 1,474,081
1,266,441
207,640
Total Expenditures
1,582,131 1,582,131
1,403,580
178,551
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(322,335) (322,335)
195,382
517,717
Other Financing Sources (Uses)
Transfers In
205,000
205,000
105,915
(99,085)
Transfers Out
-
-
(33,680)
(33,680)
Total Other Financing
Sources (Uses)
205,000
205,000
72,235
(132,765)
Net Changes in Fund Balance
(117,335)
(117,335)
267,617
384,952
Fund Balance - Beginning
1,749,716
1,749,716
1,749,716
-
Fund Balance - Ending
$ 1,632,381
$ 1,632,381
$ 2,017,333 $
384,952
87
Other Financing Sources (Uses)
Refunding Bonds Issued
CITY OF PARIS, TEXAS
320,586
Schedule 10
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Sources (Uses)
320,586
320,586
Debt Service Fund
Net Changes in Fund Balance
35,971
35,971
Year Ended September 30, 2023
Fund Balance - Beginning1
799 656
1 799 656
Budgeted Amounts
Fund Balance - Ending
Variance with
$ 1,835,627 $
OriL inal Final
Actual
Final Budget
REVENUES
Property Taxes
$ 504,828 $ 504,828
$ 1,079,215
$ 574,387
Hotel Occupancy Taxes
200,000 200,000
284,814
84,814
Interest Earned
1,300 1,300
144,595
143,295
Miscellaneous
636,637 636,637
-
)636,637)
Total Revenues
1,342,765 1,342,765
1,508,624
165,859
EXPENDITURES
Bond Principal Retirement
1,028,728 1,028,728
1,028,728
-
Interest and Fiscal Charges
598,652 598,652
276,830
321,822
Total Expenditures
p
1 627 380 1,627,380
1, 305,558
321,822
Excess of Revenues
Over Expenditures
(284,615) (284,615)
203,066
487,681
Other Financing Sources (Uses)
Refunding Bonds Issued
320,586
320,586
- (320,586)
Total Other Financing
Sources (Uses)
320,586
320,586
- (320,586)
Net Changes in Fund Balance
35,971
35,971
203,066 167,095
Fund Balance - Beginning1
799 656
1 799 656
1,799,656 -
Fund Balance - Ending
$ 1,835,627
$ 1,835,627 $
2,002,722 $ 167,095
88
CITY OF PARIS, TEXAS Schedule 11
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Capital Projects Fund
From Inception and Year Ended September 30, 2023
REVENUES
Interest Earned
Other
Total Revenues
EXPENDITURES
General Government
Police
Fire
Community Development
Engineering
Parks and Recreation
Solid Waste
Public Works
Health
Library
Cox Field Airport
Total Expenditures
Deficiency of Revenues
Over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Certificates of Obligation Issued
SPECIAL ITEM
Proceeds from Sale of Assets
Net Changes in Fund Balance
Fund Balance - Beginning
Fund Balance - Ending
2,432,341
$ 2,938,214
89
Proj ect
Prior
Current
Total
Authorization
Years
Year
to Date
(Budget)
$ 568,280
$ 161,912
$ 730,192
$ -
267,806
234,770
502,576
-
836,086
396,682
1,232,768
-
1,940,820
299,809
2,240,629
314,109
285,630
-
285,630
285,630
915,942
-
915,942
915,942
725,207
-
725,207
1,393,624
35,555
-
35,555
35,555
563,384
-
563,384
923,781
568,811
-
568,811
1,181,019
13,339,696
1,000
13,340,696
8,095,265
144,232
-
144,232
228,000
7,100
-
7,100
35,000
110,667
-
110,667
159,100
18,637,044
300,809
18,937,853
13,567,025
(17,800,958)
95,873
(17,705,085)
(13,567,025)
9,604,042
410,000
10,014,042
-
(2,549,549)
-
(2,549,549)
-
12,918,399
-
12,918,399
-
90,100
-
90,100
-
$ 2,262,034
505,873
$ 2,767,907
$ (13,567,025)
2,432,341
$ 2,938,214
89
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERNMENTAL FUNDS
CITY OF PARIS, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2023 and 2022
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
90
2023
Schedule 12
2022
$ 6,142,418 $ 6,101,909
22,523,529
20,640,470
6,695,332
6,664,963
24,646,150
23,985,850
52,818,522
52,733,342
311,377
1,484,125
$ 113,137,328 $ 111,610,659
$ 71,833,545
33,512,449
7,791,334
$ 113,137,328
$ 70,607,685
33,211,640
7,791,334
$ 111,610,659
STATISTICAL SECTION
CITY OF PARIS, TEXAS
Statistical Section
September 30, 2023
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.
91
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 $ 33,041,432 $ 33,331,038 $ 33,466,855 $ 24,198,822
Restricted - - - -
Unrestricted 12,172,944 13,508,734 14,460,833 22,900,345
Total Business -Type Activities,
Fiscal Year
2014
2015
2016
2017
Governmental Activities:
Primary Government:
Net Investment in Capital Assets
$ 28,427,758
$ 28,043,910
$ 30,505,784
$ 21,971,338
Restricted
4,949,039
3,393,033
3,003,799
3,004,564
Unrestricted
10,023,934
5,694,771
1,890,470
11,159,128
Total Governmental Activities,
Total Primary Government,
Net Position
$ 43,400,731
$ 37,131,714
$ 35,400,053
$ 36,135,030
Business -Type Activities:
Net Investment in Capital Assets $ 33,041,432 $ 33,331,038 $ 33,466,855 $ 24,198,822
Restricted - - - -
Unrestricted 12,172,944 13,508,734 14,460,833 22,900,345
Total Business -Type Activities,
Net Position
$ 45,214,376
$ 46,839,772
$ 47,927,688
$ 47,099,167
Primary Government:
Net Investment in Capital Assets
$ 61,469,190
$ 61,374,948
$ 63,972,639
$ 46,170,160
Restricted
4,949,039
3,393,033
3,003,799
3,004,564
Unrestricted
22,196,878
19,203,505
16,351,303
34,059,473
Total Primary Government,
Net Assets/Position
$ 88,615,107
$ 83,971,486
$ 83,327,741
$ 83,234,197
92
Table 1
(Continued)
Fiscal Year
2018 2019 2020 2021 2022 2023
$ 20,713,428
$ 18,064,569
$ 21,907,532
$ 26,703,929
$ 28,267,799
$ 31,070,770
12,548,372
8,782,171
8,272,920
7,357,621
6,528,631
7,540,275
53,717
4,831,122
6,866,108
6,606,102
22,093,914
22,295,017
$ 33,315,517 $ 31,677,862 $ 37,046,560 $ 40,667,652 $ 56,890,344 $ 60,906,062
$ 18,322,809 $ 25,779,748 $ 28,880,579 $ 31,236,956 $ 20,720,075 $ 26,718,407
22,945,722 16,473,443 14,923,230 13,975,247 15,45 7,391 15,782,990
$ 41,268,531 $ 42,253,191 $ 43,803,809 $ 45,212,203 $ 36,177,466 $ 42,501,397
$ 39,036,237 $ 43,844,317 $ 50,788,111 $ 57,940,885 $ 48,987,874 $ 57,789,177
12,548,372 8,782,171 8,272,920 7,357,621 6,528,631 7,540,275
22,999,439 21,304,565 21,789,338 20,581,349 37,551,305 38,078,007
$ 74,584,048 $ 73,931,053 $ 80,850,369 $ 85,879,855 $ 93,067,810 $ 103,407,459
93
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 13,881,328 14,281,964 14,617,218 13,781,748
Operating Grants and Contributions - - - -
Capital Grants and Contributions - - - -
Total Business -Type Activities 13,881,328 14,281,964 14,617,218 13,781,748
Total Primary Government
Program Revenues 20,193,260 20,689,123 20,490,427 21,090,577
94
Fiscal Year
2014
2015
2016
2017
EXPENSES
Governmental Activities:
General Government
$ 2,997,393
$ 2,909,807
$ 3,463,908
$ 3,748,965
Finance
407,463
404,567
400,665
398,262
Public Safety
10,449,953
11,037,966
12,595,127
12,456,655
Public Works
7,909,651
7,508,978
7,020,333
7,126,349
Health
3,228,513
2,404,782
2,633,051
2,836,429
Library Services
816,376
790,339
799,187
781,092
Cox Field Airport
158,632
152,063
217,995
235,546
Interest on Long -Term Debt
287,256
276,197
237,313
185,852
Bond Issue Costs
-
-
-
-
Total Governmental
Activities Expenses
26,255,237
25,484,699
27,367,579
27,769,150
Business -Type Activities:
Water and Sewer Services
11,940,791
11,929,499
12,100,940
14,095,860
Total Primary Government
Expenses
38,196,028
37,414,198
39,468,519
41,865,010
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government
3,310
17,634
6,572
181,197
Public Safety
433,828
370,308
361,100
342,083
Public Works
1,799,918
1,862,606
1,780,836
1,463,576
Health
2,371,757
2,391,817
2,519,387
2,609,811
Library Services
19,400
19,433
16,874
127,997
Cox Field
67,037
76,689
91,810
98,382
Operating Grants
and Contributions
926,506
1,396,711
672,298
338,718
Capital Grants
and Contributions
690,176
271,961
424,332
2,147,065
Total Governmental Activities
Program Revenues
6,311,932
6,407,159
5,873,209
7,308,829
Business -Type Activities:
Charges for Services:
Water and Sewer Service 13,881,328 14,281,964 14,617,218 13,781,748
Operating Grants and Contributions - - - -
Capital Grants and Contributions - - - -
Total Business -Type Activities 13,881,328 14,281,964 14,617,218 13,781,748
Total Primary Government
Program Revenues 20,193,260 20,689,123 20,490,427 21,090,577
94
2018
$ 3,421,223
404,443
12,061,033
6,882,186
2,884,339
866,435
243,666
399,291
27,162,616
Table 2
(Continued)
Fiscal Year
2019 2020 2021 2022
$ 3,651,888 $ 3,927,783
402,943
481,645
13,228,151
12,727,703
8,274,343
6,699,707
3,205,596
4,267,819
914,874
846,669
344,964
311,796
194,004
115,000
30,216,763 29,378,122
$ 5,000,473 $ 7,371,230
480,880
519,980
11,874,360
12,265,360
6,452,355
8,186,910
3,962,596
3,781,493
762,080
774,910
374,649
1,099,517
99,169
52,281
29,006,562 34,051,681
2023
$ 4,224,231
1,051,634
13,157,874
9,148,859
9,029,457
932,113
1,109,416
39,542
38,693,126
14, 594,309 14,56 8,695 14,026,074 15,241,543 15,747, 874 19,043,534
41,756,925 44,785,458 43,404,196 44,248,105 49,799,555 57,736,660
214,000
304,818
277,689
237,376
567,805
513,883
376,322
353,571
562,859
530,151
346,023
317,331
1,470,248
1,437,157
1,473,803
1,493,826
1,488,587
1,479,235
2,732,908
2,979,160
4,790,535
4,818,960
5,946,071
8,745,253
120,942
100,014
60,928
80,657
65,827
75,814
134,716
161,527
161,619
170,579
774,986
840,779
154,497
165,064
2,151,740
369,289
522,574
1,536,446
522,574
1,160,602
324,889
239,450
1,096,373
1,090,865
5,726,207
6,661,913
9,804,062
7,940,288
10,808,246
14,599,606
14,168,934 14,452,703 15,043,788 16,567,528 18,397,839
19,633,034
- - - - 1,371,533
998,533
- - - - -
62,500
14,168,934 14,452,703 15,043,788 16,567,528 19,769,372
20,694,067
19,895,141 21,114,616 24,847,850 24,507,816 30,577,618
35,293,673
95
CITY OF PARIS, TEXAS Table 2
Changes in Net Assets/Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2014 2015 2016 2017
Net (Expense)/Revenue
Governmental Activities
(19,943,305)
(19,077,540)
- (21,494,370)
(20,460,321)
Business -Type Activities
yp
1 940 537
2 352 465
2 516 278
(314,1121
Total Primary Government,
Net Expense
(18,002,7681
(16,725,0751
(18,978,092)
(20,774,433)
General Revenues and Other Changes in
Net Assets/Position
Governmental Activities:
Taxes
Property
7,575,840
7,651,005
7,748,872
8,175,530
Sales
6,416,749
7,684,113
7,051,858
7,233,526
Franchise
2,662,604
2,641,537
2,502,614
4,211,397
Hotel Occupancy
547,354
594,493
630,545
657,270
Investment Earnings
45,799
51,741
80,129
173,656
Grants, Donations, and Miscellaneous
122,703
369,689
315,989
361,125
Capital Contributions
(10,682)
1,087,474
651,847
-
Gain/Loss on Sale of Capital Assets
-
-
(57,026)
-
Transfers
-
-
1,579,100
382,794
Total Governmental Activities
17,360,367
20,080,052
20,503,928
21,195,298
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
83,206 77,787 291,131 315,872
101,000 - - -
10,682 (1,087,474) (1,579,1001 (382,794)
194,888 (1,009,687) (1,287,969) .4;66,9221
17,555,255 19,070,365 19,215,959 21,128,376
(2,582,938) 1,002,512 (990,442) 734,977
2,135,425 1,342,778
1,228,309 (381,034)
$ (447,513) $ 2,345,290 $ 237,867 $ 353,943
96
Table 2
(Continued)
Fiscal Year
2018 2019 2020 2021 2022 2023
(21,436,409') (23,554,850) (19,574,060b (21,066,274)
(23,243,435) (24,093,520)1
(425,375) (,115,9928 1,017,714 1,325,985 4,021,498 1,650,533
(21,861,784)1 (23,670,8421 (18,556,346'b (19,740,289) (19,221,937 (22,442,987)
9,170,951
9,358,943
9,338,087
9,561,394
9,863,420
9,207,529
7,317,162
7,369,079
8,245,939
9,196,157
9,650,605
10,496,451
4,315,694
4,305,851
4,714,021
4,253,182
4,827,601
4,725,373
662,263
675,158
872,418
1,192,873
1,151,124
1,284,639
426,518
581,115
197,203
41,704
279,262
1,369,937
387,306
272,338
714,470
546,391
1,548,315
1,012,657
(57,940)
49,951
25,246
125,176
111,727
170,071
610,955
(523,031)
146,679)
(177,451;)
11,746,203
(157,419)
22,832,909
22,089,404
23,960,705
24,739,426
39,178,257
28,109,238
-
-
-
-
-
1,228,894
380,393
577,621
427,723
(51,563)
(1,376,170)
3,248,285
-
-
-
19,321
66,138
38,800
(610,955)
523,031
146,679
177,451
(11,746,203)1
157,419
(230,562p
1,100,652
574,402
145,209
(13,056,235)
4,673,398
22,602,347
23,190,056
24,535,107
24,884,635
26,122,022
32,782,636
1,396,500
(1,465,446)
4,386,645
3,673,152
15,934,822
4,015,718
(655,937)
984,660
1,592,116
1,471,194
(9,034,737)
6,323,931
$ 740,563
$ 8480,786)
$ 5,978,761
$ 5,144,346
$ 6,900,085
$ 10,339,649
97
CITY OF PARIS, TEXAS Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
All Other Governmental Funds
Nonspendable
$ 90,572
Fiscal Year
$ 91,565
$ 92,347
2014
2015
2016
2017
General Fund
Assigned
389,511
267,440
188,569
Nonspendable
$ 233,127
$ 294,776
$ 223,911
$ 326,985
Restricted
271,269
331,086
387,950
446,493
Unassigned
11,194,101
12,969,124
10,227,839
10,849,390
Total General Fund
$ 11,698,497
$ 13,594,986
$ 10,839,700
$ 11,622,868
All Other Governmental Funds
Nonspendable
$ 90,572
$ 90,800
$ 91,565
$ 92,347
Restricted
3,031,192
2,726,900
2,525,049
12,009,532
Assigned
389,511
267,440
188,569
82,042
Unassigned
-
-
-
57,705
Total All Other Governmental Funds
$ 3,511,275
$ 3,085,140
$ 2,805,183
$ 12,241,626
98
Table 3
(Continued)
Fiscal Year
2018 2019 2020 2021 2022 2023
$
418,995
$
483,575
$
500,495
$
181,620
$
394,147
$
273,147
498,359
577,814
659,322
710,901
750,650
802,872
11,753,392
12,390,089
15,990,260
20,596,761
23,926,645
26,253,936
12,670, 746
13,451,478
17,150 077
$
21,489,282
$
25,071,442
$
27,329,955
$
93,689
$
96,007
$
98,400
$
98,543
$
(46,841)
$
102,505
10,991,000
8,108,350
7,512,067
6,633,684
5,679,098
6,636,873
299,013
292,571
295,955
-
302,615
319,421
-
-
-
-
145,724
-
$
11,383,702
$
8,496,928
$
7,906,422
$
6,732,227
$
6,080,596
$
7,058,799
99
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
Leases
Charges for Services
Use of Money and Property
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
Inception of Lease
Inception of Subscription -Based IT Arrangement
Transfers In
Transfers Out
Long -Term Debt Issued
Payment to Escrow Agent and Premium
Proceeds From Sale of General Capital Assets
Total Other Financing Sources (Uses)
Increase (Decrease) in Reserve for Inventory
Net Changes in Fund Balances
Debt Service as a Percentage of Noncapital Expenditures
Table 4
Fiscal Year
2014 2015 2016
$ 17,194,419
$ 18,457,686
$ 17,976,072
386,775
220,696
152,016
586,429
573,953
515,147
138,629
137,030
173,004
1,472,278
1,462,810
1,474,874
2,111,439
2,383,355
2,519,387
1,603,165
1,662,824
1,096,630
169,261
224,463
386,853
23,662,395
25,122,817
24,293,983
1,153,686
1,076,798
1,301,401
407,443
404,567
400,665
9,712,876
10,206,584
11,125,560
6,507,603
5,861,079
5,556,359
916,260
8,672
-
2,127,225
2,240,853
2,366,673
707,716
692,290
717,395
97,778
102,539
110,330
1,548,753
1,641,714
1,771,889
311,919
280,733
254,304
1,226,543
1,077,610
991,899
1,332,959
1,920,359
4,474,952
26,050,761
25,513,798
29,071,427
i2,388,3W (390,981 w (4,777,444)
617,114 975,185
1,782,291 1,504,281 3,437,300
(1,792,973) (416,807) (1,858,200)
95,098 -
(10,682) 1,799,686 2,554,285
u,38,165,1 61,649 (70,865
$ (2,437,213) $ 1,470,354 $ (2,294,022
5.38% 5.76% 5.07%
100
Table 4
(Continued)
101
Fiscal Year
2017
2018
2019
2020
2021
2022
2023
$20,280,057
$21,447,857
$21,672,347
$23,106,141
$ 24,155,434
$ 25,561,800
$ 25,793,589
155,363
197,920
277,507
259,117
211,668
532,557
484,807
491,880
495,708
480,618
743,152
663,873
472,743
455,229
-
-
-
-
-
167,337
180,619
-
-
-
-
-
774,986
848,777
272,039
561,234
742,644
375,074
212,284
282,927
1,369,937
1,463,576
1,470,248
1,437,157
1,462,452
1,470,237
1,462,220
1,461,058
2,609,811
2,614,504
2,991,995
5,117,649
4,806,996
5,933,986
8,733,472
1,463,514
677,072
1,325,665
2,503,393
706,574
1,704,040
2,392,541
258,051
346,789
214,502
692,664
524,586
1,207,739
1,065,955
26,994,291
27,811,332
29,142,435
34,259,642
32,751,652
38,100,335
42,785,984
1,288,458
1,180,280
1,230,366
1,371,042
1,178,384
1,436,945
1,402,106
398,262
404,443
402,943
481,645
480,880
519,980
1,051,634
11,026,655
10,850,538
11,253,953
12,032,115
11,374,139
23,924,796
12,482,397
5,549,270
5,356,374
5,644,019
5,065,867
4,991,668
6,050,354
6,817,178
2,535,135
2,670,131
2,845,874
4,058,990
5,200,828
5,595,417
8,717,240
697,503
736,513
756,566
723,742
679,491
716,644
813,148
129,269
112,562
210,851
179,631
242,809
972,755
975,641
1,738,115
1,716,365
1,845,609
1,922,363
1,838,073
1,829,866
1,936,078
196,358
447,294
443,205
398,844
389,169
331,657
304,184
1,161,513
1,580,682
1,577,803
1,635,788
3,315,266
1,663,315
1,196,529
103,399
4,410
-
-
-
-
-
2,350,010
3,564,942
4,399,885
5,540,837
2,615,698
4,596,338
4,137,225
27,173,947
28,624,534
30,611,074
33,410,864
32,306,405
47,638,067
39,833,360
(179,656)
e; 813,202)
(1,468,639)
848,778
445,247
19,537,732)
2,952,624
9,913,399
190,000
-
-
1,765,000
-
-
-
_
_
1,500,000
-
-
-
-
-
-
-
1,115,000
-
-
-
-
-
(62,000)
(81,992)
-
-
-
-
57,835
-
-
-
-
-
-
-
-
-
278,821
13,421
-
-
-
-
-
-
218,091
466,536
994,335
27,678
2,570,626
3,358,332
12,424,649
1,699,025
(83,742)
(383,374)
(550,708)
(2,717,305)
(3,535,783)
(678,446)
(1,856,445)
-
-
-
28,000
151,266
155,367
210,000
10,296,193
800,961
(465,195)
1,319,321
2,771,823
12,180,391
284,092
103,074
40,517
-
-
-
-
-
$10,219,611
$ 28,276
$(1,933,834)
$ 2,168,099
$ 3,217,070
$ 2,642,659
$ 3,236,716
5.47%
8.09%
7.71%
7.30%
12.48%
4.45%
3.97%
101
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.
102
Percent
Collection
of Current
of Current
Levy
Year's
Collected
Delinquent
Fiscal
Total
Taxes During
During
Tax
Total
Roll
Year
Tax Leve
Fiscal Year
Fiscal Year
Collections
Collections
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
96.95
109,970
9,157,952
2020
2020-21
9,592,756
9,321,264
97.17
134,553
9,455,817
2021
2021-22
9,888,259
9,673,449
97.83
141,826
9,815,275
2022
2022-23
10,441,096
10,204,442
97.73
155,315
10,359,757
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.
102
Ratio
Ratio of
of Total
Delinquent
Collections
Outstanding
Taxes
To Total
Delinquent
To Total
Tax Lewy
TaxesTax
Levy
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
99.26
215,835
2.18
99.22
236,654
2.26
103
Table 5
(Continued)
CITY OF PARIS, TEXAS
Property Tax Rates -All Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited
Table 6
Source:
Lamar County Appraisal District
104
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
City of Paris
M & O
$ 0.39129
$ 0.40635
$ 0.42547
$ 0.42443
$ 0.44248
$ 0.43831
$ 0.40868
$ 0.39788
$ 0.37357
$ 0.34377
I & S
0.11066
0.09560
0.07648
0.07752
0.10947
0.11364
0.10740
0.08290
0.08016
0.09901
Total
5
-rT=
==
i
Lamar County
M & O
$ 0.40580
$ 0.42640
$ 0.40920
$ 0.40660
$ 0.37550
$ 0.36740
$ 0.37630
$ 0.38180
$ 0.34250
$ 0.32780
I & S
0.01930
0.01900
0.01830
0.01730
0.01880
0.01910
0.01770
0.00210
0.01830
0.01700
Total
15�
�
�r
�m,
�6-
6-
W
Paris ISD
M & O
$ 1.17000
$ 1.17000
$ 1.17000
$ 1.17000
$ 1.17000
$ 1.17000
$ 1.06840
$ 1.05190
$ 0.99200
$ 0.94290
I & S
0.28500
0.28500
0.28500
0.28500
0.28500
0.28500
0.28500
0.25970
0.25970
0.24900
Total
-r77T=
-rT.a=
-rT7=
-rT.T 6-
- T.T=
-rT.7=
- T.T=
-T=
Chisum ISD
M & O
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 0.96640
$ 0.96640
$ 0.96340
$ 0.93280
I & S
0.14500
0.14678
0.14678
0.20650
0.19500
0.19000
0.18000
0.18000
0.18000
0.18000
Total
7-r
_ 1 7
=5
.,5
-rrTTRF
=
North Lamar ISD
M & O
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 1.04000
$ 0.96640
$ 0.96640
$ 0.89600
$ 0.85460
I & S
0.07110
0.06750
0.06750
-
0.25000
0.25000
Total
-rT=
75
75
-$-fgMr
I1.6MM-
»
i
i r
Paris Junior College
M & O
$ 0.18660
$ 0.18660
$ 0.18750
$ 0.17730
$ 0.08500
$ 0.08500
$ 0.08400
$ 0.08900
$ 0.08150
$ 0.07490
I&S
Total
0.18
0.18
50
77
6O
. 850
.04
-rTZTW
7-07
Source:
Lamar County Appraisal District
104
CITY OF PARIS, TEXAS Table 7
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Unaudited
Sources:
Lamar County Appraisal District
105
Real Pro Deily
Personal Propeny
Estimated
Estimated
Assessed
Actual
Assessed
Actual
Roll
Year
Value
Value
Value
Value
2013
2013-14
$1,033,357,277
$1,438,785,698
$ 469,901,615
$ 654,358,864
2014
2014-15
1,007,593,690
1,472,220,698
522,773,397
763,567,027
2015
2015-16
1,006,810,741
1,490,882,796
526,923,827
780,316,817
2016
2016-17
1,148,246,077
1,725,298,577
479,151,390
720,199,051
2017
2017-18
1,206,992,530
1,773,796,952
474,754,769
697,701,527
2018
2018-19
1,236,252,824
1,807,476,750
495,983,817
725,129,690
2019
2019-20
1,295,418,472
1,870,747,790
498,742,817
720,268,510
2020
2020-21
1,391,511,659
1,933,860,434
532,519,786
740,100,180
2021
2021-22
1,667,126,345
2,305,669,290
560,875,228
775,657,080
2022
2022-23
1,784,537,195
2,476,266,752
638,929,410
886,666,860
Sources:
Lamar County Appraisal District
105
Table 7
(Continued)
106
Total
Assessed
Estimated
Value as a
Assessed
Actual
Percentage of
Total Direct
Exem,timm�ons
Value
Value
Actual Value
Tax Rate
$ 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
853,324,797
2,228,001,573
3,081,326,370
72.31
0.45373
939,467,007
2,423,466,605
3,362,933,612
72.06
0.44278
106
CITY OF PARIS, TEXAS
Principal Property Taxpayers
September 30, 2023 and 2014
Unaudited
Tai gayer Type of Business
Table 8
2023
Percentage
of Total
Taxable Freeze Adjusted
Assessed Taxable
Value Rank Assessed Value
La Frontera Holdings LLC (Lamar Power Partners)
Electric Utility
$ 346,840,660
1
40.48%
Campbell Soup Company - A
Food Manufacturer
186,373,274
2
21.75%
Kimberly-Clark Corporation - A
Disposable Diapers
127,038,247
3
14.83%
American Spiral Weld III Inc.
Pipe Manufacturer
48,483,607
4
5.66%
Essent PRMC, LP A
Hospital
47,431,390
5
5.54%
Oncor Electric Delivery
Electric Utility
32,658,755
6
3.81%
Huhtamaki Inc
Packaging Mfg.
19,330,648
7
2.26%
Atmos Energy
Gas Utility
17,686,320
8
2.06%
Potter Industries
Glass Manufacturer
16,390,054
9
1.91%
Paris Towne Center LLC
Shopping Center
14,505,590
10
1.69%
Campbell Soup Company - B
Food Manufacturer
-
0.00%
Kimberly-Clark Corporation - B
Disposable Diapers
-
0.00%
Paris Generation, LP
Electric Utility
-
0.00%
Silgan Can Company
Can Manufacturer
-
0.00%
Totals
Source:
Lamar County Appraisal District
107
$ 856,738,545 100.00%
2014
Percentage
Taxable of Total
Assessed Taxable
Value Rank Assessed Value
$ 211,904,940
1
41.81%
47,098,030
3
9.29%
109,106,414
2
21.53%
-
0.00%
26,808,398
5
5.29%
21,770,280
7
4.30%
-
0.00%
-
0.00%
-
0.00%
10,596,530
9
2.09%
30,879,360
4
6.09%
10,203,030
10
2.01%
21,979,800
6
4.34%
16,518,540
8
3.26%
$ 506,865,322
100.00%
108
Table 8
(Continued)
Sources:
Lamar County Appraisal District
City of Paris
109
CITY OF PARIS, TEXAS
Table 9
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Unaudited
Ratio
of Net
Net
General
General
Bonded
Bonded
Taxable
Gross Less Debt
Debt To
Debt
Fiscal
Estimated
Assessed
General Service
Net General
Assessed
Per
Year
ou anon �
Value
Bone Debt Funds
Bonded Debt
Value
Capita
2013-14
25,171
$ 1,503,258,892
$ 8,310,000 $ 1,432,199
$ 6,877,801
0.46
$ 273.24
2014-15
25,200
1,519,380,526
7,285,000 1,117,793
6,167,207
0.41
244.73
2015-16
25,400
1,627,397,467
6,442,624 1,087,664
5,354,960
0.33
210.83
2016-17
25,425
1,681,747,299
15,461,503 898,022
14,563,481
0.87
572.80
2017-18
25,450
1,732,236,641
14,306,032 1,073,917
13,232,115
0.76
519.93
2018-19
25,450
1,794,161,289
12,977,671 1,103,061
11,874,610
0.67
466.59
2019-20
25,450
1,876,141,460
11,818,173 1,196,122
10,622,051
0.56
417.37
2020-21
24,476
2,228,001,573
11,420,000 1,272,171
10,147,829
0.46
414.60
2021-22
24,476
2,423,466,605
9,380,000 544,537
8,835,463
0.36
360.98
2022-23
24,930
2,588,988,526
10,440,000 1,898,641
8,541,359
0.33
342.61
Sources:
Lamar County Appraisal District
City of Paris
109
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
110
Governmental Activities
Business -Type Activities
General
Fiscal
Obligation
Financed
Utility Rate Financed
Year
Bonds
Purchases Leases
Other
Supported Debt Purchases Leases
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 - -
2022
9,380,000
629,538 218,870
770,000
90,440,000 - -
2023
9,860,000
461,737 1,297,715
580,000
113,005,000 - -
Sources:
City Finance Office
Samco Capital Markets, Inc.
Bureau of Economic Analysis
110
Table 10
(Continued)
Business -Type
Activities
Total
Percentage
Primary
of Personal
Per
Other Government
Income
Ca ita
$ - $ 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
- 101,438,408
3.99
4,135
- 125,204,452
4.72
5,022
111
CITY OF PARIS, TEXAS
Direct and Overlapping
Governmental Activities Debt
September 30, 2023
Unaudited
General
Percent
Obligation
Applicable
Bonded Debt
to
Taxing, Jurisdiction Outstanding
Government
Lamar County $ 6,153,349
Paris Independent School District 40,280,000
Chisum Independent School District 53,342,503
North Lamar Independent School District 43,405,000
Subtotal Overlapping Debt 143,180,852
City of Paris (Includes General Obligation Debt and Capital Leases) 11,000,915
Total Direct and Overlapping Debt $ 154,181,767
Per Capita Direct and Overlapping Funded Debt $ 6,185
62.75%
49.30
47.75
58.23
100.00
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
Table 11
Amount
Applicable
to
Government
$ 3,861,225
19,858,040
25,471,045
25,274,732
74,465,043
11,000,915
$ 85,465,958
$ 3,428
Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne
by the property taxpayers of the City of Paris. This process recognizes that, when considering the
government's ability to issue and repay long-term debt, the entire debt burden borne by the property
taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
112
CITY OF PARIS, TEXAS Table 12
Legal Debt Margin Information
September 30, 2023
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 $.44278 per $100
valuation for the fiscal year ended September 30, 2023.
113
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
114
Net Revenue
Average Remaining
Available
Debt Service Requirements
Fiscal
Gross
Operating
For Debt
Percent
Year
Revenues*
E?E�ses**�
ServicePri
ci)al Interest Total***
Coverage
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
2021-22
20,198,510
10,254,224
9,944,286
- - -
N/A
2022-23
24,310,011
11,955,809
12,354,202
956,964 844,960 1,801,924
6.86%
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
114
(1) Includes Paris Independent School District, North Lamar Independent School District,
Chisum Independent School District, and Paris Junior College
Sources:
Paris Independent School District - 3,755
North Lamar Independent School District - 2,450
Chisum Independent School District - 1,79
Paris Junior College - 4,427
Bureau of Economic Analysis
US Census Bureau
115
CITY OF PARIS, TEXAS
Table 14
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Paris, TX
Paris, TX
Micropolitan
Paris, TX
Paris, TX
Micropolitan
Service Area
Micropolitan
Micropolitan
Service Area
Per Capita
Service Area
Percent
Calendar
Service Area
Personal
Personal
Median
School
Unemployment
Year
Po Iation
Income
Income
Ade
Enrollments (1)
Rate
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
2021
50,484
2,539,934,000
50,311
39.4
11,800
4.3
2022
51,127
2,655,332,000
51,936
40.3
11,811
3.8
(1) Includes Paris Independent School District, North Lamar Independent School District,
Chisum Independent School District, and Paris Junior College
Sources:
Paris Independent School District - 3,755
North Lamar Independent School District - 2,450
Chisum Independent School District - 1,79
Paris Junior College - 4,427
Bureau of Economic Analysis
US Census Bureau
115
CITY OF PARIS, TEXAS
Principal Employers
Fiscal Years End 2023 and 2014
Unaudited
Table 15
Se Member 30, 2023
Source:
U.S. Department of Labor
PEDC
Bureau of Labor Statistics
Additional Information:
September tember 30, 2014
Paris ISD
606
Percentage
461
City of Paris
Percentage
Paris Junior College
311
Chisum ISD
of Total
Lamar County
196
of Total
2,069
City
City
Tax. aver
Employees
Rank
Employment
Em lovees
Rank
Em iloj�ment
Paris Regional Medical Center
900
1
22.80%
700
3
17.25%
Kimberly-Clark Corporation
700
2
17.73%
730
2
17.99%
Campbell Soup Company
680
3
17.23%
840
1
20.70%
The Results Company*
419
4
10.62%
150
8
3.70%
HWH/WePack Logistics
419
5
10.62%
223
6
5.50%
RK Hall Construction LTD
200
6
5.07%
430
5
10.60%
Delco Trailers
200
7
5.07%
-
0.00%
Huhtamaki**
189
8
4.79%
180
7
4.44%
American SpiralWeld
140
9
3.55%
-
0.00%
Paris Print Works
100
10
2.53%
-
0.00%
Turner Industries
-
0.00%
600
4
14.79%
J Skinner Baking Co.
-
0.00%
130
9
3.20%
We Build
-
0.00%
75
10
1.85%
Totals
1947
100.01%
4.058
100.00%
Source:
U.S. Department of Labor
PEDC
Bureau of Labor Statistics
Additional Information:
Public Employers:
Paris ISD
606
North Lamar ISD
461
City of Paris
317
Paris Junior College
311
Chisum ISD
178
Lamar County
196
Total
2,069
Notes:
(*) TCIM in 2014
(**) Paris Packaging in 2014
116
CITY OF PARIS, TEXAS Table 16
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 - GalIons
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
117
Fiscal Year
2014
2015
2016
2017
1
1
1
1
3
3
3
3
1,262
1,299
1,313
1,333
51
51
51
51
2.03
2.02
2.01
2.00
1
1
1
1
82,832
81,893
84,162
85,630
127,002
127,824
119,265
114,611
5.06
5.07
4.69
4.50
16,519
15,507
13,551
14,312
1
1
1
1
60
60
60
60
2.39
2.38
2.36
2.35
87
87
87
87
221
221
221
221
24
24
24
24
160
160
171
171
3
3
3
3
11,472,271
11,006, 721
10,701,294
13, 241, 942
17,201,000
20,662,000
17,983,000
18,493,000
4,187,379,000
4,017,453,000
3,977,369,000
4,833,309,000
183
185
185
185
9,819
10,024
9,995
9,766
189
209
209
209
39.18
39.18
38.02
38.02
326.5
327
328
330
117
Table 16
(Continued)
Fiscal Year
2018
2019
2020
2021
2022
2023
1
1
1
1
1
1
3
3
3
3
3
3
1,357
1,367
1,408
1,399
1,510
1,515
51
51
51
51
52
52
2.00
2.00
2.00
2.08
2.12
2.08
1
1
1
1
1
1
72,288
81,185
79,821
81,739
82,409
83,003
103,389
99,239
81,249
86,120
103,731
95,982
4.06
3.90
3.19
3.51
4.24
3.85
10,441
8,734
8,424
9,337
10,345
10,550
1
1
1
1
1
1
57
57
57
57
57
57
2.24
2.24
2.24
2.32
2.12
2.28
87
87
87
87
87
87
221
221
221
221
221
221
24
24
24
24
24
24
171
174
174
174
174
174
3
3
3
3
3
3
10,759,444
10,775,920
11,13 8,000
11,740,173
13,715,333
14,907,339
18,137,000
19,202,000
17,747,000
19,386,000
29,661,000
22,876,000
3,927,197,000
3,937,831,000
4,078,053,000
4,285,163,000
5,015,467,000
5,574,431,000
185
185
185
185
185
185
9,698
9,679
9,810
9,754
9,776
9,778
209
209
209
209
209
209
38.02
38.02
38.02
38.02
38.02
38.02
331.5
333
322
314
314
317
118
CITY OF PARIS, TEXAS
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Table 17
Fiscal Year
2014 2015 2016 2017
Function:
Public Safety
Police
Stations
1
1
1
1
Patrol Units
10
10
10
10
Fire Stations
3
3
3
3
Sanitation
Collection Trucks
6
6
6
6
Highways and Streets
Streets (miles)
163
174
174
174
Streetlights
2,225
2,228
2,228
2,230
Traffic Signals*
-
-
-
-
Culture and Recreation
Park Acreage
286
286
286
286
Swimming Pools - Municipal
1
1
1
1
Tennis Courts
14
14
14
14
Community Centers
1
1
1
1
Water
Water Mains (miles)
183
185
185
185
Fire Hydrants
1,262
1,299
1,313
1,333
Maximum Daily Capacity
36,000
36,000
36,000
36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles)
189
209
209
209
Maximum Daily Treatment Capacity
7,250
7,250
7,250
7,250
(thousands of gallons)
Source: Various City Departments
* City has none. All inside the City limits belong to the State of Texas.
119
Table 17
(Continued)
Fiscal Year
2018 2019 2020 2021 2022 2023
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
2,231
2,235
2,235
2,235
2,235
2,240
286
308
308
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
1,357
1,367
1,408
1,399
1,510
1,515
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
120
CITY OF PARIS, TEXAS Table 18
Building Permits at Market Value
Last Ten Fiscal Years
Unaudited
Sources: City of Paris Community Development Department
121
Commercial
Residential
Total
Property Value
Commercial
Construction
Residential
Construction
Construction
Fiscal Year
Units
Value
Units
Value
Value
2014
10
$ 5,336,150
16
$ 1,924,218
$ 7,260,368
2015
14
61,243,705
10
823,430
62,067,135
2016
59
7,838,210
44
3,252,018
11,090,228
2017
18
12,653,657
21
3,914,081
16,567,738
2018
33
39,273,020
31
4,101,770
43,374,790
2019
15
64,446,766
25
3,744,359
68,191,125
2020
21
15,636,180
36
5,366,500
21,002,680
2021
8
7,995,151
17
1,908,787
9,903,938
2022
17
43,395,000
35
7,237,430
50,632,430
2023
4
11,565,427
15
3,766,818
15,332,245
Sources: City of Paris Community Development Department
121
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
122
Fiscal Year
2014
2015
2016
2017
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
2.0
2.0
2.0
2.0
Finance
5.0
5.0
5.0
5.0
Police*
83.0
83.0
83.0
83.0
Fire
57.0
57.0
57.0
58.0
Community Development
5.5
4.5
4.5
4.5
Engineering
7.5
7.5
7.5
7.5
Public Works
3.0
2.0
2.0
2.0
Parks & ROW
10.0
11.0
11.0
12.0
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
16.5
16.5
Water Distribution
11.0
11.0
11.0
11.0
Waste Water Collection
7.5
8.5
8.5
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
2.5
2.5
2.5
Totals
326.5
327.0
328.0
330.0
* Includes related grant employees.
Seasonal employees not included.
Source: City of Paris Finance Department
122
Table 19
(Continued)
Fiscal Year
2018 2019 2020 2021 2022 2023
3.0
3.0
3.0
4.0
4.0
4.0
2.0
2.0
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
6.0
83.5
84.0
83.0
77.5
77.5
79.5
58.0
58.0
59.0
52.0
52.0
52.0
4.0
4.0
5.5
15.0
15.0
15.0
6.0
6.0
4.5
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
12.0
12.0
11.0
10.0
10.0
10.0
11.0
12.0
8.0
6.0
6.0
6.0
17.0
17.0
11.0
12.0
12.0
12.0
2.0
2.0
1.0
1.0
1.0
1.0
6.0
6.0
5.5
6.0
6.0
6.0
26.0
27.0
27.0
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
17.5
18.0
18.0
18.0
18.0
12.5
12.5
9.0
11.0
11.0
11.0
8.5
8.0
8.0
8.0
8.0
8.0
22.5
21.5
26.0
21.0
21.0
21.0
3.0
3.0
3.0
3.0
3.0
3.0
3.5
3.0
3.0
3.0
3.0
3.0
331.5
333.0
322.0
314.0
314.0
317.0
123
CONTINUING DISCLOSURE INFORMATION
CONTINUING DISC.LOSURE INFOWWATION FOR
CITY OF PAWS, TEXAS
UNAUDITED
ASSESSED VALUATION
1,410,000
TABLE I
2023-2024 Actual Market Value of Taxable Property (100%, of Actual)
23,520,000
$
3,703,088,144
Less Exemptions::
General Obligation Bonds, Series 2018 (86% WS)
650,000
Local., Optional Over -65 and/or Disabled Homestead Exemptions
39,064,776
1,080,000
Tax and Revenue Certificates of Obligation, Series 2021
Disabled and.Deceased Veterans'F',xemptions
19,872,481
GO Pension Bonds, Series 2022
Productivity Loss
28,516,425
87,290,000
Personal Use of Business Vehicte
306,980
9.360.000
General Obligation Interest and Sinking Fund Balance as of September 30, 2023
Freeport
119,291,230
Ratio of Gross General Obligation Debt Principal to 2022-23 Freeze Adjusted Met Taxable Assessed Valuation
Pollution Control / Solar
59,391,206
039%
AbatementLoss
204,517,377
2,370,770,656
Population: 1980 .- 25,4989 1990 .- 24,699; 2000 .- 25,898; 2010 - 25,171 Current (Estimate)
Cap Loss (1011/o)
171,024,527
Per Capita 2022-2023 Freeze Adjusted Net Taxable Assessed Valuation
Historical / Other
27,504,617
3,877
Totatly Exempt.Property.
444,609,999
375
124
Total Exemptions
1,114,099,618
2023-2024 NetTaxable Assessed Valuation
2,588,988,526
Frozen Taxable Value and Transfer Adjustment
(218,217,870)
F'reeze.Adjusted Net Taxable Assessed Valuation
$
2,370,770,656
Source: Lamar County Appraisal District and the Issuer.
GENERAL OBLIGATION BONDED DEBT:PARI NCIPA.I.,
TABLE 2
General Obligation Debt Principal Outstanding. (As of September 30, 2023)
Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB)
$
1,410,000
General Obligation Bonds, Series 2013
23,520,000
General Obligation Bonds, Series 2016
6,205,000
General Obligation Bonds, Series 2017
7,380,000
General Obligation Bonds, Series 2018
650,000
General Obligation Refunding.13onds, Series 2020
1,400,000
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020
1,080,000
Tax Notes, Series 2020
580,000
Tax and Revenue Certificates of Obligation, Series 2021
42,645,000
General Obligation Pension Bonds, Series 2022
11,780,000
Total Gross General Obligation Debt Principal Outstanding:
$
96,650,000
Less. Self -Supporting General Obligation Debt Principal
Combination Tax and Revenue Certificates of Obligation, Series 2013 (rfWI)B) (100% WS)
1,410,000
General Obligation Bonds, Series 2013 (100% WS)
23,520,000
General Obligation Bonds, Series 2016 (100% WS)
6,205,000
General Obligation Bonds, Series 2018 (86% WS)
650,000
CombinationTax and Surplus Revenue Certificates of Obligation, Series 2020
1,080,000
Tax and Revenue Certificates of Obligation, Series 2021
42,645,000
GO Pension Bonds, Series 2022
11,780,000
Total Self -Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds,
87,290,000
Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds:
9.360.000
General Obligation Interest and Sinking Fund Balance as of September 30, 2023
2,002,722
Ratio of Gross General Obligation Debt Principal to 2022-23 Freeze Adjusted Met Taxable Assessed Valuation
4.08%
Ratio of'Net General Obligation Debt Principal to 2022-23 Freeze Adjusted Net `taxable Assessed Valuation
039%
Ad Net able Assessed Valuation
2023-24 Ereeze (Ld Tax
jq�t J
2,370,770,656
Population: 1980 .- 25,4989 1990 .- 24,699; 2000 .- 25,898; 2010 - 25,171 Current (Estimate)
24,930
Per Capita 2022-2023 Freeze Adjusted Net Taxable Assessed Valuation
95,097
Per Capita Gross General Obligation Debt Principal
3,877
Per Capita Net General Obligation Debt Principal
375
124
CLASSIFICATION OF ASSESSED VALUATION"'
TABLE 3
UNAUDITED
% of
% of
% of
% of
% of
Catecory02
22-23
Total
2021-22
Total
2020-21
Total
2019-2020
Total
2018-2019
To al
Real, Residential, Single -Family
$ 1,031,677,640
27.86% $
943,179,877
26.69% $
758,658,443
23.85% $
713,569,554
25.47% $
555,725,094
20.28%
Real, Residential, Multi -Family
126,527,250
3.42%
121,204,107
3.43%
112,201,519
3.53%
78,929,430
2.82%
60,643,497
2.27
Real, Vacant Lots/Tracts
30,581,641
0.83%
31,534,732
0.89%
31,470,634
0.99%
30,827,095
1.10%
33,015,060
1.17
Real, Acreage (Land Only)
29,551,335
0.80%
20,958,160
0.59%
20,972,380
0.66%
20,517,420
0.73%
21,611,670
0.79
Farm& Ranch Improvements
31,072,118
0.84%
30,038,194
0.85%
25,293,068
0.80%
23,098,838
0.82%
20,902,638
0.74
Real, Commercial
429,520,635
11.60%
431,656,699
12.22%
409,844,864
12.89%
267,504,955
9.55%
290,129,663
11.24
Real Industrial
686,461,320
18.54%
667,764,200
18.90%
687,876,550
21.63%
594,799,020
21.23%
588,443,970
23.26
Real & Tangible, Personal Utilities
65,999,990
1.78%
60,626,630
1.72%
57,691,980
1.81%
55,391,760
1.98%
49,300,600
1.68
Tangible Personal, Commercial
183,405,280
4.95%
164,277,840
4.65%
151,679,870
4.77%
145,136,550
5.18%
137,319,910
5.43
Tangible Personal, Industrial
589,051,200
15.91%
611,674,330
17.31%
519,985,340
16.35%
494,875,900
17.67%
490,224,670
19.54
Tangible Personal, Mobile Homes
1,875,540
0.92%
1,823,340
0.04%
890,630
0.04%
769,900
0.04%
796,370
0.03
Residential / Special, Inventory
24,133,650
0.65%
25,135,220
0.71%
20,946,400
0.66%
19,937,470
0.71%
18,093,300
0.72
Totally Exempt Property
473 230 545
12.78%
423,675,741
11 99 %
382,866,616
12.04% _355,713,491
12.70%
352,_476.683
_
12.86
Total Market Value
3,703,086,144
100.00%
31533,549,070
100.00%
3,180,380,294
100.00%
2,801,071,383
100.00%
2,618,683,125
100.00%
Less Exemptions:
Productivity Loss
28,516,425
19,856,605
19,992,060
19,523,280
20,576,410
Cap Loss (101%)
171,024,527
150,758,853
79,061,864
107,587,489
7,090,415
Local, Optional Over-65/Disabled
39,064,776
40,935,341
45,303,916
40,632,898
39,196,208
Disabled and Deceased Veterans'
19,872,481
18,533,812
12,132,564
10,827,192
14,497,851
Exempt Property
444,609,999
396,184,061
361,607,606
338,281,483
340,140,213
Freeport
119,291,230
111,908,964
91,612,816
85,531,645
98,468,752
Pollution Control I Solar
59,391,206
62,479,174
62,080,048
65,128,932
67,790,322
Tax Abatement Loss
204,517,377
281,560,424
259,158,157
187,457,093
224,131,835
Personal Use of Business Vehicle
306,980
319,140
303,980
382,630
282,460
Other/Historical
27,504,617
-
27,546,091
21,125,710
17,220,053
- ..
12,347,370
Total Exemptions
1,114,099,618
....
.........�
1,110,082,465
952,378,721
872,572,695
824,521,836
Net Taxable Assessed Valuation
2,588,988,526
2,423,466,605
2,226,001,573
1,928,498,688
1,794,161,289
Frans Taxable& Transfer Adjustment
(218,217,870)
(190,151,876)
(178,970,749)
(155,792,063)
(139,607,850)
Freeze Adjusted Net Taxable
Assessed Valuation
$ 2.370,770,656
1
2233,314,729
$
2.049.030.824
$
1772 706,625
1
1'g614 553 439
t� Values shown in this table are Certified Values as of July. Values may change during the raxyear due to various supplements andprotests.
Valuations reported on a different date may not match those shown on this table.
Source: Lamar County Appraisal District and the Issuer.
M
PRINCIPAL TAXPAYERS 2022-23 UNAUDITED) TABLE 4
Name
La Frontera Holdings LLC
Campbell Soup
Kimberly Clark Corporation
American Spiral Weld III, Inc
Essent PRMC LP
Oncor Electric Delivery Company
Huhtamaki Inc.
Atmos Energy
Potter Industries LLC
Paris Towne Center LLC
Total
Based on a 2023 Freeze Adjusted Net Taxable Assessed Valuation of $ 2370 770 656
Source: Lamar County Appraisal District
PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLE 5
Tax
Net Taxable
% of
Tax
% Collections
Total 2023
Year
2023 Net Taxable
Assessed
Type of Property
Assessed Valuation
Valuation
Electric Utility
$ 346,840,660
14.63%
Food Manufacturing
186,373,274
7.86%
Disposable Diaper Mfg.
127,038,247
5.36%
Pipe Manufacturer
48,483,607
2.05%
Health Care Services/Hospital
47,431,390
2.00%
Utility
32,658,755
1.38%
Packaging Manufacturing
19,330,648
0.82%
Gas Utility
17,686,320
0.75%
Manufacturing
16,390,054
0.69%
Shopping Center
14,505,590
0.61% A
99.52
$ 856.738.545
36.14%
Based on a 2023 Freeze Adjusted Net Taxable Assessed Valuation of $ 2370 770 656
Source: Lamar County Appraisal District
PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLE 5
Tax
Net Taxable
Tax
Tax
% Collections
2018-19
Year
Year
Assessed Valuation ce)
Rate
Levv
Current
Total
Ended
0.08016
0.08290
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
2021
2,049,030,824
0.45373
9,888,259
97.83
99.49
9-30-22
2022
2,233,314,729
0.44278
10,441,096
97.73
99.35
9/30/23
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 the year 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 for tax years 2013-2022 represent Freeze Adjusted Net Taxable Valuations.
�bJ Current Fiscal Year collections are as of September 30, 2022 (Unaudited).
Source: The Lamar County Appraisal District, the City's 2021 Comprehensive Annual Financial Report and additional information from the City.
TAX RATE DISTRIBUTION 'UNAUDITED TABLE 6
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
General Fund $ 0.32176
$ 0.34377
$ 0.37357
$ 0.39788
$ 0.40868
$ 0.43831
I & S Fund 0.15606
0.09901
0.08016
0.08290
0.10740
0.11364
TOTAL $ 0.47782
$ 0.44278
$ 0.45373
$ 0.48078
$ 0.51608
$ 0.55195
Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District
126
MUNICIPAL SALES TAX TABLE 7
UNAUDITED
The Issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to a property tax relief
and/or an economic and industrial development tax. The voters of the City approved the imposition of a 1/4 cent additional sales tax to be used
for property tax reduction and a 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began on October 1,
1993, and the City received its first payment in December, 1993. Collections on a calendar year basis are as follows:
* 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.
127
City Collections as
($) Equivalent of
Calendar
Total
1.00%
0.25%
% of Ad Valorem
Ad Valorem
0.25%
Year
Collected
Cih
Proms Tax Red
Tax LcvL
Tax Rate
EDC
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
2022
11,715,522
7,810,348
1,952,587
97.83
0.48
1,952,587
2023
12,591,056
8,394,038
2,098,509
97.73
0.53
2,098,509
* 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.
127
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES_ AND EXPENDITURES
AND ANALYSIS OF CHANGES IN FUND BALANCES TABLES
UNAUDITED
Revenues:
Ad Valorem Taxes
Sales Taxes
Franchise Tax
Hotel Occupancy Taxes
Licenses and Permits
Fines and Fees
Leases
Investment Earnings
Sanitation
Health
Intergovernmental Revenue
Other Revenues
Total Revenues
Expenditures
Current
General Government
Public Safety
Public Works
Health
Culture and Recreation
Cox Field Airport
Other
Capital Outlay
General Government
Public Safety
Public Works
Health
Cox Field Airport
Debt Service
Total Expenditures
Excess (Deficit) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Inception of Lease
Inception of Subscription -Based IT Arg.
Operating Transfers In
Operating Transfers Out
Proceeds From Sale of Capital Assets
Insurance Recoveries
Total Other Financing Sources (Uses):
Excess of Revenues and Other Sources
Over Expenditures and Other Uses
Fund Balance - Beginning of Year
Prior Period Adjustment
Fund Balance - End of Year
Fiscal Year Ended September 30
2023 2022 2021 2020 2019
$ 8,267,911
$ 8,287,694
$ 7,971,838
$ 7,380,958
$ 7,552,516
10,496,451
9,650,605
9,196,157
8,245,939
7,369,079
4,725,373
4,827,601
4,253,182
4,714,021
4,305,851
949,983
848,508
881,259
643,417
675,158
484,807
532,557
211,668
259,117
277,507
426,856
432,115
615,721
724,259
434,016
81,361
-
-
-
-
950,902
201,997
198,965
304,755
483,876
1,461,058
1,462,220
1,470,237
1,462,452
1,437,157
8,733,472
5,933,986
4,806,996
5,117,649
2,991,995
2,051,423
1,574,428
706,574
713,570
1,325,665
710,472
695,364
442,020
381,355
210,946
39,280,069
34,447,075
30,754,617
29,947,492
27,063,766
2,412,942
1,917,259
1,613,946
1,779,229
1,616,363
12,479,429
23,917,194
11,367,228
12,005,945
11,218,944
6,817,178
6,050,354
4,991,668
5,065,867
5,644,019
8,717,240
5,595,417
5,199,358
4,022,732
2,845,874
804,955
715,243
677,612
723,046
740,350
-
1,224
242,809
179,631
210,851
1,936,078
1,829,866
1,838,073
1,922,363
1,845,609
1,386,613
561,165
252,387
109,280
16,995
689,772
1,060,330
870,874
403,654
413,250
1,060,768
1,199,200
941,371
626,741
1,016,738
323,283
486,604
216,631
287,256
303,946
-
-
65,000
-
-
195,155
187,670
186„690
186,690
186,690
36,823,413
43,521,526
28,463,647
27,312,434
26,059,629
2,456,656
19,074,451)
2,290,970
2,635,058
1,004,137
139421
278,821
-
-
-
218,091
-
-
-
-
1,183,110
12,682,538
2,751,240
539,986
18,513
(1,822,765)
(603,609)
(802,211)
(29,319)
(127,545)
210,000
155,367
151,266
28,000
-
-
-
-
-
57,835
1198,143)
12,513,117
2,100,295
538,667
(51,197')
2,258,513
3,438,666
4,391,265
3,173,725
952,940
25,071,442
21,420,072
17,150,077
13,451,478
12,670,747
-
212,704
152,060)
524,874
(172,209)
$ 27,329,955 $ 25,071,442 $ 21,489,282 $ 17,150,077 $ 13,451,478
Source: The Issuer's Comprehensive Annual Financial Reports.
128
CONDENSED WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT (UNAUDITED) TABLE 9
Fiscal Year Ended September 30
2023 2022 2021 2020 2019
Operating Revenues yet
Total Revenues $ 19,633,034 $ 18,397,839. $ 16,567,528 $ 15,043,788 $ 14,452,703
Expenses (b)
Net Revenue Available for Debt Service
Annual Revenue Bond Debt Service
Requirements
Coverage of Annual Revenue Bond
Requirements
Annual Requirements on all Bonds Paid from
System Revenues
Coverage of Annual Requirements on all
Bonds Paid from System Revenues
Customer Count:
Water
Sewer
11,736,249 10,151,891 10,308,035 9,602,622 10,147,099
$ 7,896,785 $ 8,245,948 $ 6,259,493 $ 5,441,166 $ 4,305,604
N/A
N/A
N/A
N/A
$ 6,624,452 $
5,289,797 $
3,842,897 $
3,845,397
1.19x
1.56x
1.63x
1.41x
9,778
9,786
9,762
9,810
9,362
9,198
9,175
9,221
N/A
$ 3,848,957
9,679
9,189
(°) Revenues include operating revenues, interest income and other revenues of the Waterworks and Sewer System.
rol 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, 2022)
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"
$13.69 for first 200 Cubic Feet
$5.04 / 100 Cubic Feet
1" and Larger
$66.81 for first 1,000 Cubic Feet
$5.04 / 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)
(1 -ler Cubic Foot)
100 Cubic Feet)
5/8" - 3/4"
$16.36 for first 200 Cubic Feet
$4.94 / 100 Cubic Feet
1" - 2"
$65.54 for first 1,000 Cubic Feet
$4.03 / 100 Cubic Feet
Larger than 2"
$235.24 for first 2,000 Cubic Feet
$4.03 / 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"
$4,034.82 for first 100,000 Cubic Feet
$4.03 / 100 Cubic Feet
6"
$6,052.22 for first 150,000 Cubic Feet
$4.03 / 100 Cubic Feet
8" and Larger
$8,069.63 for first 200,000 Cubic Feet
$4.03 / 100 Cubic Feet
Source: Information from the Issuer
129
PRINCIPAL WATER CUSTOMERS 2022-2023 (UNAUDITEDp TABLE 11
(October 1, 2022 to September 30, 2023)
Total Water Sales as of September 30, 2023 (unaudited) $�9104772
Principal Water Customers represent approximately 40.38% of'total annual water sales
Includes raw water sales.
SEWER RATES NAUDITED) TABLE 12
Current Rates
Residence
Commercial Industrial Class
(Residential Rates Effective April 1, 2023)
Average Monthly
Average
Name of Customer
Consumption
MonthLBl11
Lamar Power Partners*
17,060,285
$ 39,279
Campbell Soup Company
14,880,609
92,212
Lamar County Water Supply
12,591,786
79,502
Paris Generation
2,442,613
26,337
Daisy Farms*
2,428,162
16,329
Kimberly Clark
672,113
27,096
Paris Housing Authority
177,152
7,335
North Lamar ISD
126,431
5,584
Paris Junior College
118,136
5,309
Paris Regional Medical Center
115J92
7,443
Total 50,612,479
$ 306,426 ar
Total Water Sales as of September 30, 2023 (unaudited) $�9104772
Principal Water Customers represent approximately 40.38% of'total annual water sales
Includes raw water sales.
SEWER RATES NAUDITED) TABLE 12
Current Rates
Residence
Commercial Industrial Class
(Residential Rates Effective April 1, 2023)
(Commercial Rates Effective April 1, 2023)
Average Monthly
Service in Excess of Base
Meter Size
Base Cost
(For Each Additional
it
Per Cubic Foot
100 Cubic Feet l
3/4" or Less
$22.64 for fust 200 Cubic Feet
$11.18 / 100 Cubic Feet
1" and Larger
$111.79 for first 1,000 Cubic Feet
$11.18 / 100 Cubic Feet
(Commercial Rates Effective April 1, 2023)
PRINCIPAL SEWER CUSTOMERS - 2022-2023 (UNAUDITED) TABLE 13
(October 1, 2022 to September 30, 2023)
Average Monthly
Service in Excess of Base
Meter Size
Base Cost
(For Each Additional
Inches
Per Cubic Foot
100 Cubic Feet
3/4" or Less
$30.12 for fust 200 Cubic Feet
$11.60 / 100 Cubic Feet
1" - 2"
$116.00 for first 1,000 Cubic Feet
$11.60 / 100 Cubic Feet
Larger than 2"
$232.04 for first 2,000 Cubic Feet
$11.60 / 100 Cubic Feet
PRINCIPAL SEWER CUSTOMERS - 2022-2023 (UNAUDITED) TABLE 13
(October 1, 2022 to September 30, 2023)
Total Sewer Charges as of September 30, 2023 (unaudited)
130
$ 9,917,078
Average Monthly
Average
Name of Customer
_
Consumpation
Monthly Bill
Paris Housing Authority
218,861
$ 23,793
Paris Junior College
124,636
13,872
Lamar County Human Resources
118,589
12,711
North! Lamar ISD
100,768
10,806
Lamar County
77,404
8,335
Wash Masters
73,213
7,842
Paris ISD
72,343
8,027
Spanish Oaks
68,449
7,368
Regency Apartments
63,396
6,797
Paris Regional Medica! Center
60.999
6,741
Total $ 978,658
$ 106,292 t">
Total Sewer Charges as of September 30, 2023 (unaudited)
130
$ 9,917,078
OVERALL COMPLIANCE, INTERNAL CONTROLS
AND FEDERAL AWARDS SECTION
CITY OF PARIS, TEXAS
Overall Compliance, Internal Controls,
And Federal Awards Section
September 30, 2023
This section includes elements required by Government Auditing Standards, issued by the Comptroller General of the
United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements; Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
131
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
GEORGE H. STRUVE, CPA
DEBRA J. WILDER, CPA
TEFFANY A. KAVANAUGH, CPA
APRIL J. HATFIELD, CPA
BRITTANY L. MARTIN, CPA,
STEVEN W. MOHUNDRO, CPA,
OF COUNSEL
228 SIXTH STREET S.E.
PARIS, TEXAS 76460
903-784-4316
FAX 903-784-4310
304 WEST CHESTNUT
DENISON, TEXAS 76020
903-466-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM, TEXAS 76418
903-683-6674
FAX 903-683-9463
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor, Members of the City Council,
and City Manager
City of Paris, Texas
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of the governmental activities, the business -type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of Paris, Texas
(the City), as of and for the year ended September 30, 2023, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements, and have issued our report thereon dated
December 19, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings
and questioned costs as item 2023-01 that we consider to be significant deficiencies.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
132
Honorable Mayor, Members of the City Council.
and City Manager
City of Paris, Texas
City of Paris, Texas' Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the
findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City's
response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly,
we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Paris, Texas
December 19, 2024
133
McClanaftan andMohw, LLP
Certified Public Accountants
CITY OF PARIS. TEXAS
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2023
FINDING / RECOMMENDATION
Financial Statement Findings
Finding 2022-01— Internal Controls Related to Bank Reconciliations and Revenue
Condition: Internal controls were not properly implemented to reconcile items that should have been
investigated and corrected in a timely manner on monthly cash reconciliations. Management did not review
bank reconciliations prepared by finance department staff.
Recommendation: We recommend the City of Paris, Texas perform bank reconciliations addressing all
outstanding items and that management review and approve reconciliations monthly. Any reconciling items
should be investigated and convected in a timely manner.
Current Status: The City has implemented the recommended procedures. No similar findings were noted in
the 2023 audit.
Finding 2022-02 — Financial Accounting and Reporting
Condition: The City does not control the period -end financial reporting process including controls over
procedures used to analyze transactions compromising general ledger activity and controls over recording
recurring and non-recurring adjustment to the financial statements.
Recommendation: We recommend the management of the City of Paris, Texas maintain close oversight of
the accounting and period -end financial reporting process.
Current Status: The City is currently improving oversight of the accounting and period -end financial
reporting process (on-going).
134
CITY OF PARIS, TEXAS
Schedule of Findings and Questioned Costs
Year Ended September 30, 2023
Summary of Auditors' Results
1. The auditors' report expresses an unmodified opinion on the financial statements of the City of Paris,
Texas.
2. One significant deficiency disclosed during the audit of the financial statements is reported in the
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards. No material weaknesses are reported.
3. No instances of noncompliance material to the financial statements of the City of Paris, Texas, which
would be required to be reported in accordance with Government Auditing Standards, were disclosed
during the audit.
4. No significant deficiencies in internal control over major federal award programs disclosed during the
audit are reported in the Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance. No material weaknesses were
identified.
5. The auditors' report on compliance for the major federal awards programs for the City of Paris, Texas
expresses an unmodified opinion on all major federal programs.
6. There were no audit findings that are required to be reported in accordance with 2 CFR 200.516(a).
7. The programs tested as major programs were:
21.027 COVID-19: Coronavirus State and Local Fiscal Recovery Funds
8. The threshold used for distinguishing between Type A and B programs was $750,000.
9. City of Paris, Texas, was determined to be a high-risk auditee.
135
CITY OF PARIS, TEXAS
Schedule of Findings and Questioned Costs (Continued)
Year Ended September 30, 2023
Financial Statement Findings
Significant Deficiencies
Finding 2023-01— Financial Accounting and Reporting
Criteria: The City's management should be responsible for preparing period -end financials including
recording recurring and non-recurring adjustments to the financial statements.
Condition: The City does not control the period -end financial reporting process including controls over
procedures used to analyze transactions compromising general ledger activity and controls over recording
recurring and non-recurring adjustment to the financial statements.
Cause: Proper closing processes are not being performed timely and accurately
Effect: As a result of this condition, the City lacks internal controls over the period -end financial reporting
resulting in multiple post -close and adjusting entries.
Recommendation: We recommend that management of the City of Paris, Texas maintain close oversight of
the accounting and period -end financial reporting process, and have a routine closing process and develop a
comprehensive list of reconciliations and financial reporting duties to be performed on a routine basis.
Federal Award Findings and Questioned Costs
The audit disclosed no findings required to be reported.
136
Corrective Action Plan
Year Ended September 30, 2023
FINDING/RECOMMENDATION
2023-01 Financial Accounting and Reporting
Recommendation: We recommend that management of the City of Paris, Texas maintain close oversight of
the accounting and period -end financial reporting process, and have a routine closing process and develop a
comprehensive list of reconciliations and financial reporting duties to be performed on a routine basis.
Response: The City's management agrees to maintain close oversight of the accounting and period -end
financial reporting process.
Contact Person: Gene Anderson, Finance Director
Estimated Completion Date: Ongoing
137
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance
Honorable Mayor, Members of the City Council,
and City Manager
City of Paris, Texas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Paris, Texas' (the City) compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on the City's major
federal programs for the year ended September 30, 2023. The City's major federal programs are identified in the
summary of auditors' results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2023.
Basis for Opinion on Each Major Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not
provide a legal determination of the City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs.
138
228 SIXTH STREET S.E.
PARIS, TEXAS 75460
GEORGE H. STRUVE, CPA
903-784-4316
DEBRA J. WILDER, CPA
FAX 903-784-4310
TEFFANY A. KAVANAUGH, CPA
----- -
APRIL J. HATFIELD, CPA
304 WEST CHESTNUT
BRITTANY L. MARTIN, CPA
DENISON, TEXAS 75020
"--
903-465-6070
STEVEN W. MOHUNDRO, CPA,
FAX 903-465-6093
OF COUNSEL
r-_
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903.5835574
FAX 903-683-9453
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance
Honorable Mayor, Members of the City Council,
and City Manager
City of Paris, Texas
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Paris, Texas' (the City) compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on the City's major
federal programs for the year ended September 30, 2023. The City's major federal programs are identified in the
summary of auditors' results section of the accompanying schedule of findings and questioned costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2023.
Basis for Opinion on Each Major Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not
provide a legal determination of the City's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs.
138
Honorable Mayor,.Members of the City Council,
and City Manager
City of Paris, Texas
Auditors ' Responsibilifles.for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assuranc6 and
therefore is not a guarantee that an. audit conducted in accordance with generally accepted auditing standards,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it
exists. The risk of not detecting material noncompliance resulting from fraud is higher tin for that resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgement made by a reasonable
user of the report on compliance about the City's compliance with the requirements of each majorBederal program
as a whole.
fn performing an audit in accordance with generally accepted auditing standards, Government AuditingStandards,
and the Uniform) Guidance, we,
* Exercise professional judgement and maintain professional. skepticism throughout the audit.
* Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the City's compliance requirem ents referred to above and performing such other
procedures as we considered necessary in the circumstances.
* Obtain an understanding of the City's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal control
over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is
expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit,
Report on Internal Control Over Compliance
A dqficiemy in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in imemal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
signiticant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance with a type of compliance requirement of a federal program that is less severe than
a material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal. control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
Honorable Mayor, Members of the City Council,
and City Manager
City of Paris, Texas
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our.testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Paris, Texas
December 19, 2024
140
WcClanafian andyfoCmes, LLcp
Certified Public Accountants
CITY OF PARIS, TEXAS
Schedule of Expenditures ofFederal Awards
Year Ended September 30, 2023
Federal
Assistance Expenditures
Listing Project Federal I to
Federal Grantor/Pass-Throu Vr. Grantor/Program Title Number Number Fxr°endifi— snh—irdvwc
U.S. Department ofHousinl,�,and-Urb-Develo�sment
Passed through Texas Department of Housing & Community Affairs:
Home Investment Partnership Program
Total U.S. Department of Housing and Urban Development
Justice
Direct Programs:
Edward Byrne Justice Assistance Grant Program
Total U.S. Department of Justice
trtment,,,Qf-TR slemtion
Passed Through Texas Department of Transportation:
Airport Improvement Program
Total U.S. Department of Transportation
U 3_ Department of Tr_easua a
Passed Through Texas Division of Emergency Management:
COVID-19 - Coronavirus State and Local Recovery Funds
Total U.S. Department of Treasury
National „Endowment for the Humanities
Passed Through Texas State Library and Archives Commission
FY2022 ILL Lending Reimbursement Program
Total National Endowment for the Humanities
U,SDe1 artment of Homeland Securgt
Passed Through Texas Water Development Board:
Flood Mitigation Assistance
Total U.S. Department of Homeland Security
Total Expenditures of Federal Awards
14.239 1002887 $ 723 973 $
16.738 15PBJA-22-GG-02713-JAGX 8.441
8,441
20.106
M2301PARI
48,922
48,922
21.027
1505-0271
2 350,127
2,350,127
45.310
LS -252486 -OLS -22
2,348
2,348
97.029
2000012422
51,074
51,074
$ 3,184,885$
The accompanying notes are an integral part of this schedule. See Notes on Accounting Policies for Federal and State Awards.
141
CITY OF PARIS, TEXAS
Schedule of Expenditures of State of Texas Awards
Year Ended September 30, 2023
Project
StateGrantor/Prow¢am Title Number E tender itures
Automobile Burglary and Theft Prevention„AuthoriiW
Northeast Texas Auto Theft Task Force 608-22-1390200 $ 147,192
Total Automobile Burglary and Theft Prevention Authority 147,192
Office of the Texas Governor
Ballististic Shields for Response to Active Shooter 4605201 65,999
Total Office of the Texas Governor
Total Expenditures of State of Texas Awards $ 213.191
The accompanying notes are an integral part of this schedule. See Notes on Accounting Policies for Federal and State Awards.
142
CITY OF PARIS, TEXAS
Notes on Accounting Policies for Federal and State Awards
Year Ended September 30, 2023
Note 1: Basis of Presentation
The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state
award activity of the City of Paris, Texas (the City) under programs of the federal and state governments for the
fiscal year ended September 30, 2023. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Uniform
Grant Management Standards. Because the Schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
Note umm ily o i mficant AcLcountm
: Policies,
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are
presented where available.
Note 3: Indirect Cost Rate
The City has elected not to use the 10 -percent de minimis indirect cost rate allowed under the Uniform Guidance.
Note 4: Program Costs/ Matching ,Contributions
The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire
program costs, including the City's portion, may be more than shown.
143
No. 10
TO: Mayor, Mayor Pro Tem & City Council
Robert Vine, Interim City Manager
FROM: Todd Mittge, City Engineer
SUBJECT: DESIGN OF PARKING LOT AT THE OLD BELFORD BUILDING SITE
DATE: January 13, 2025
BACKGROUND:
The Belford Building, located at 260 South Main Street, was demolished in December of 2023. It
was in a state of dilapidation with portions having collapsed, and needs to be demolished, it has
therefore been deemed a public safety hazard. The City of Paris has ownership of the vacant lot,
and the City Council has decided to construct a parking lot at this location during the Fiscal Year
24/25 budgeting process.
City Staff would like to enter into a Professional Service Agreement with Hayter Engineering to
design the new parking lot at this location. Once this has been designed, it will be followed by
open bidding to select a contractor to perform the construction work in the Spring/Summer of
2025.
STATUS OF ISSUE:
The sidewalk has been replaced around the Belford site. The new parking lot will lie within the
existing dirt area on the corner of Main and Austin Streets. It will include a small detention pond
per our city drainage ordinance.
The Scope of Services is included within the Professional Services Agreement, which is included
with this memo. Hayter Engineering's fee will be a lump sum of $33,930.00.
The preliminary Opinion of Probable Construction Cost for this project in May of 2024 was
$218,000. This was used for budgeting purposes. During design, this OPCC will be refined
further.
BUDGET:
The $33,930 for design of this parking lot is included in the Engineering Capital Budget requests
for FY 24/25. $250,000 has been budgeted in the General Fund to cover the cost of engineering
design and construction of the project.
OPTIONS:
1. Authorize the Interim City Manager to sign the Professional Services Agreement with
Hayter Engineering.
2. Request additional information and/or deny authorization to sign the Professional Services
Agreement.
RECOMMENDATION:
3. Authorize the Interim City Manager to sign the Professional Services Agreement with
Hayter Engineering.
AGREEMENT FOR PROFESSIONAL SERVICES
This AGREEMENT is entered into by the CITY OF PARIS, a municipal corporation, acting herein
through its City Manager, duly authorized to act by the CITY COUNCIL, hereinafter called
"OWNER," and HAYTER ENGINEERING, INC., a Texas corporation, acting herein through a
duly authorized officer, herein called "ENGINEER," because OWNER desires ENGINEER'S
services in connection with the survey and design of a proposed downtown public parking lot in
Paris, Texas.
WITNE....SSET..H:
For the mutual promises and benefits herein described, the parties agree as follows:
1. Term o„f, AGREEMENT: This AGREEMENT shall become effective on the day it is
executed and shall continue in effect thereafter until the services provided for herein have
been performed, or until terminated as provided herein. This agreement may be executed
in multiple counter parts with the date of the last signature to be the effective date.
2. Services to be _Performed bv_ENG„INEER: Professional services are detailed in Exhibit B
— Professional Services and Exhibit C — Scope of Services hereto.
OWNER may request additional services of any type normally rendered by ENGINEER.
These will be called "additional services,” and compensation shall be determined as per
Section 3(b) hereof. Any "additional services" must be in writing and signed by both
parties.
Professional services during the construction period, if any such services are included in
this AGREEMENT, are understood to be for the time of completion initially specified in
the corresponding construction contract, and services beyond that time, including services
as expert witness or assisting in litigation, or services due to failure of the CONTRACTOR
to complete on time under any circumstance, will be deemed additional services.
Professional services provided are limited to those set forth in this agreement. The
ENGINEER shall have no other obligations or responsibilities beyond those listed herein.
3. Com,,, pensation of ENGINEER: Owner shall pay ENGINEER as follows:
(a) Professional Services:
Design Surveys $ 3,430.00
Design (Conceptual & Final) $30,500.00
(b) OWNER shall pay ENGINEER for additional services as outlined in Exhibit C and
as authorized in writing by OWNER at the per diem rates in Exhibit A hereto, plus
reimbursable expenses. At this time, there are no known additional services to be
required. Prior to performing any such additional services, ENGINEER will obtain
written approval from OWNER.
(c) ENGINEER may submit monthly statements for professional and additional
services. These will be based upon ENGINEER'S estimate of services completed
at the time, and OWNER shall make prompt payments. If OWNER fails to pay
ENGINEER within sixty (60) calendar days of the receipt of ENGINEER'S
statement, the amounts due ENGINEER shall increase at the rate of five percent
(5%) a month. ENGINEER may, after giving written notice to OWNER, suspend
services until paid or the ENGINEER decides to resume in its sole discretion.
(d) In the event of termination by OWNER, ENGINEER shall be entitled to payment
for services rendered through receipt of termination notice. ENGINEER will also
be entitled to payment for all reasonable termination expenses as determined by it.
(e) "Termination expenses" means reimbursable expenses, salaries, and overhead costs
due to termination, including, but not limited to, transferring job records to
OWNER, termination negotiations, materials purchased but not accepted by
OWNER and reassignment of personnel.
"Reimbursable expenses" include, but are not limited to, long distance telephone,
postage, equipment, expendables, mileage, subcontractors or special consultants,
freight, testing fees, copies, blueprints, Or any other expenses the ENGINEER
deems appropriate. Where special consultants or subcontractors are used as
additional services, the ENGINEER'S reimbursement shall include a service
charge equal to 5% of the subcontractor's invoice amount.
4. Services to be Perfonned bOWNER: OWNER shall: (i) designate a specific person as
OWNER's representative, which must be approved by ENGINEER; (ii) provide
ENGINEER with any previous studies, reports, data, final site layouts, budget constraints,
special OWNER requirements, or other pertinent information known to OWNER; no
charge will be made to ENGINEER for such information, and OWNER and its agencies
will cooperate with ENGINEER to provide said information, in every way possible to
facilitate the performance of the project;(iii) ensure access for the ENGINEER to properties
necessary for perfonnance of the ENGINEER'S work; (iv) provide legal, accounting, or
insurance consultants, financial advisors or other similar specialists as required for the
project; (v) make prompt payments in response to ENGINEER'S statements; and (vi)
respond in a timely fashion to requests from the ENGINEER. ENGINEER is entitled to
rely upon and use, without independent verification and without liability, all information
and services provided by OWNER or OWNER's appointees, agent's or with respect to
buried utilities, the utility providing service in the project area.
5. Termination: The obligation to provide further services under this AGREEMENT may be
tenninated by either party upon ten (10) calendar days written notice, with Owner paying
Engineer all money owned, in the event of substantial failure by the other party to perform
2
in accordance with the terms hereof.
6eus_e of Documents: All documents prepared by ENGINEER are instruments of service
or the specific project p p ct contemplated under this AGREEMENT. They are not intended for
reuse on extensions of that project, or on any other project. Any reuse without written
verification or adaptation by ENGINEER for the specific purpose intended will be at
OWNER's sole risk and without liability to ENGINEER.
O,wnersh_i;l)ofDocuments: All documents prepared by ENGINEER are instruments of
service for the specific project contemplated under this AGREEMENT. The ENGII\ E
shall retain ownership of all reports, drawings, plans, specifications, electronic files, field data,
notes and other documents and instruments prepared by the ENGINEER as instruments of
service. The ENGINEER shall retain all common law, statutory and other reserved rights,
including, without limitation, all copyrights thereto.
8. Notices: Any notices to be given hereunder by either party to the other may be affected
either by personal delivery, in writing, by email, or by registered or certified mail.
9. Sole Parties and Entire AGREEMENT: This AGREEMENT shall not create any rights or
benefits to anyone except the OWNER and ENGINEER and contains the entire agreement
between the parties. Oral modifications to this agreement shall have no force or effect.
10. Venue and, Applicable _Law; Successors,-, _Construction: This AGREEMENT shall be
construed under and in accordance with the laws of the State of Texas. It shall be binding
upon, and inure to the benefit of, the parties hereto and their representatives, successors,
and assigns. The Venue for any type of dispute under this agreement shall by in Lamar
County, Texas.
11, Insurance: ENGINEER and any CONSULTANT the ENGINEER might hire shall provide,
pay for, and maintain in force at all times during the performance of the Services insurance
in compliance with the insurance requirements of this Contract. In the event this Contract
does not contain any insurance requirements, or to the extent such insurance requirements
contained in this Contract are less than the following insurance requirements, ENGINEER
and CONSULTANT shall provide, pay for, and maintain the following minimum
insurance:
i. Workers' Compensation Insurance as may be required by all state and federal
workers' compensation acts, the Federal Longshoremen's and Harbor Workers'
Compensation Act and such other acts as may be applicable to the Services,
however, such coverage shall not be limited by any limitation on the amount or
type of damages, compensation, or benefits payable by or for CONSULTANT
under any Workers' Compensation Acts, Disability Benefit Acts, or other such
statutory employee benefit acts. As a minimum with amounts required by law
or $1,000,000 whichever is greater.
ii. Employers' Liability Insurance with amounts required by law or $1,000,000
whichever is greater.
iii. Commercial General Liability Insurance covering liabilities for death and
personal injury and liabilities for loss of or damage to property with combined
single limit of $1,000,000 per occurrence, $300,000 damages to rented
facilities, $5,000 medical expenses, $100,000 for personal injury, and
$2,000,000 in the aggregate.
iv. Commercial Automobile Liability Insurance with a minimum $1,000,000 per
occurrence coverage for both bodily injury and property damage.
V. ENGINEER'S Professional Liability Insurance with limits of liability not less
than $2,000,000 per claim and in the aggregate. ENGINEER'S
CONSULTANT Professional Liability Insurance with limits of liability not less
than $1,000,000 per claim and in the aggregate.
vi. If the ENGINEER'S CONSULTANTS Services are to be performed within 50
feet from any railroad, ENGINEER'S CONSULTANT shall obtain and present
to ENGINEER before the commencement of the Services a CG 2417
endorsement for its Commercial General Liability coverage. Such endorsement
shall list ENGINEER and the Client as additional insureds.
12. Other,,,Provis.io,ns: The parties hereto further agree as follows:
(a) Limitation of Liability. In recognition of the relative risks and benefits of the
project to both the OWNER and the ENGINEER, the risks have been
allocated such that the OWNER agrees, to the fullest extent permitted by law,
to limit the liability of the ENGINEER and his subcontractors on the project
for any and all claims, losses, costs, damages of any nature whatsoever or
claims expenses from any cause or causes, so that the total aggregate liability
of the ENGINEER and his or her sub -consultants to all those named shall not
exceed ENGINEER's policy limits on any applicable insurance policy. Such
claims and causes include, but are not limited to, negligence, professional
errors or omissions, strict liability, and breach of contract.
(b) The ENGINEER shall not be responsible for delays caused by factors beyond the
ENGINEER's reasonable control, including but not limited to delays because of
strikes, lockouts, work slowdowns or stoppages, or other labor disputes; supply
chain delays; government ordered industry shutdowns; power or server outages;
widespread infectious disease outbreaks (including, but not limited to epidemics
and pandemics) or other natural disasters, fires, riots, war or other emergencies;
failure of any governmental or other regulatory authority to act in a timely manner,
failure of the OWNER to furnish timely information or approve or disapprove of
the ENGINEER's services or work product, or delays caused by faulty performance
by the OWNER's or by contractors of any level or discovery of any hazardous
substances or differing site conditions. When such delays beyond the
ENGINEER's reasonable control occur, the OWNER agrees that the ENGINEER
shall not be responsible for damages (monetary or otherwise), nor shall the
ENGINEER be deemed in default of this Agreement.
4
(c) Causes of action between the parties to this Agreement pertaining to acts or failures
to act shall be deemed to have accrued and the applicable statute of limitations shall
commence to run not later than either the date of Substantial Completion for acts
or failures to act occurring prior to Substantial Completion or the date of issuance
of the final Certificate for Payment for acts or failures to act occurring after
Substantial Completion. In no event shall such statute of limitations commence to
run any later than the date when the ENGINEER'S services are substantially
completed, which is determined by the ENGINEER.
(d) Any opinion of the probable construction cost prepared by the ENGINEER
represents only his judgment as a design professional and is supplied for the general
guidance of the OWNER. Since the ENGINEER has no control over the cost of
labor and material, or many other factors, the ENGINEER does not imply nor
guarantee the accuracy of such opinions. If the OWNER elects to redesign or rebid
the project to reduce costs, ENGINEER'S services for such rebidding or redesign
shall be additional services.
(e) The ENGINEER has not been retained or compensated to provide design and
construction review services relating to any construction contractor's safety
precautions or to means, methods, techniques, sequences, or procedures required
for the contractor to perform his work, but not relating to the final or completed
structure. The ENGINEER does not in any manner guarantee the performance of
the construction contractors.
(f) ENGINEER will strive to perform services hereunder in a manner consistent with
that level of care and skill ordinarily exercised by members of the profession
currently practicing in the same locality under similar conditions. No other
representation, express or implied, and no warranty or guarantee is included or
intended in this AGREEMENT, or in any report, opinion, document, or otherwise.
(g) ENGINEER is not responsible for any damages, including those to third parties,
resulting from modifications made to the ENGINEER'S design or technical
specifications by a construction manager, value engineer, or other party to the
project selected or approved by the OWNER and will Indemnify and Hold
Harmless ENGINEER it from any and all claims, losses, costs, damages of any
nature whatsoever or claims expenses from any cause or causes under this section
(h) When the ENGINEER is providing an assessment or survey of property being
considered for purchase by the OWNER, the OWNER shall secure an agreement
from the property owner to protect the OWNER and ENGINEER in the event said
assessment or survey finds a condition that could potentially reduce the value of
the property.
(i) Consequential damages. Notwithstanding any other provision of this Agreement,
0
and to the fullest extent permitted by law, neither the OWNER nor the ENGINEER,
their respective officers, directors, partners, employees, contractors or
subconsultants shall be liable to the other or shall make any claim for any incidental,
indirect or consequential damages arising out of or connected in any way to the
Project or to this Agreement. This mutual waiver of consequential damages shall
include, but is not limited to, loss of use; loss of profit; loss of business; loss of
goodwill; loss of income; cost of substitute facilities, goods, or services; cost of
capital; loss or reputation or any other consequential damages that either party may
have incurred from any cause of action including negligence, strict liability, breach
of contract and breach of strict or implied warranty. Both the OWNER and
ENGINEER shall require similar waivers of consequential damages protecting all
the entities or persons named herein in all contracts and subcontracts with others
involved in this project.
(j) Delivery of Electronic Files — In accepting and utilizing any drawings, reports, and
data on any form of electronic media from the ENGINEER, Owner agrees that such
files are instruments of service of the ENGINEER, solely for this Project. The
Owner agrees not to reuse these electronic files for any purpose other than of the
Project.
Electronic files furnished by either party shall be subject to an acceptance period of
sixty (60) days. After the acceptance period, the electronic files shall be deemed to
be accepted and neither party shall have any obligation to correct errors or maintain
electronic files.
In the event of a conflict between the hard -copy construction documents and record
drawings prepared by the ENGINEER and the electronic files, the signed and sealed
hard -copy construction documents shall govern.
In addition, the OWNER agrees, to the fullest extent permitted by law, to indemnify
and hold harmless the ENGINEER, its officers, directors, employees and sub -
consultants against all damages, liabilities, or costs, including reasonable attorneys'
fees and defense costs, arising from any changes made by anyone other than the
ENGINEER or from any reuse of the electronic files.
(k) Mediation — In an effort to resolve any conflicts that arise during the design and
construction of the Project or following the completion of the Project, the OWNER
and the ENGINEER agree that all disputes between them arising out of or relating
to this Agreement or the Project shall be submitted to nonbinding mediation.
(1) Design without Construction Administration - It is understood and agreed the
ENGINEER's basic services under this agreement do not include project
observation or review of the Contractor's perfonnance or any other construction
phase services, and that such services will be provided by OWNER. OWNER
assumes all responsibility for interpretation of the Contract Documents and for
.,
construction observation, and OWNER waives any claims against ENGINEER that
may in any way be connected thereto.
In addition, OWNER agrees, to the fullest extent permitted by law, to indemnify
and hold harmless ENGINEER, its Officers, employees and subconsultants, against
all damages, liabilities or other costs, including reasonable attorneys' fees and
defense costs, arising out of or in any way connected with the perfonnance of such
services by other persons or entities and from any and all claims arising from
modifications, clarifications, interpretations, adjustments or changes made to the
Construction Documents to reflect changed field or other conditions, except for
claims arising from the sole negligence or willful misconduct of the ENGINEER.
If OWNER requests in writing that ENGINEER provide any specific construction
phase services, and if ENGINEER agrees in writing to provide such services,
ENGINEER shall be compensated for said service in accordance with Section 3 (b)
herein.
13. This AGREEMENT is subject to the provisions of Exhibits A, B, and C.
14. Amendments to this contract shall be in writing and be signed by the appropriate authorized
parties for both OWNER and ENGINEER.
15. Legal Construction: If any one or more of the provisions contained in this Agreement shall
for any reasons be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other provision thereof, and
this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.
16. The OWNER shall provide prompt written notice to the ENGINEER if the OWNER
becomes aware of any fault or defect in the Project, including any errors, omissions, or
inconsistencies in the ENGINEER'S Instruments of Service.
IN WITNESS WHEREOF, the parties, having read and understood this AGREEMENT, have
executed such in duplicate copies, each of which shall have full dignity and force as an original,
on the 9`h day of January 2025.
Engineer: HAYTER ENGINEERING, INC Owner: CITY OF Paris, TEXAS
._ __
. m_
..._ .............m _ ...
�f
�e
By: _ — ..._......e...�—
By:
Michael N. Tibbets, P.E./ President Robert Vine/Interim City Manager
Attest :..�` Attest:
. ,.. ..e.� ..
Item No. 11
TO: Mayor, Mayor Pro -Tem & City Council
Robert Vine, Interim City Manager
FROM: Randy Tuttle, Assistant Chief of Police
SUBJECT: STOP SIGNS
DATE: December 04, 2024
BACKGROUND: Complaints were received from citizens on W. Washington street concerning
speed of vehicles travelling east/west on Washington. A request was made to consider erecting
stops signs at 4th SW & Washington to stop east/west traffic. There are currently stops signs at this
intersection stopping north/south bound vehicles. A traffic/speed study was conducted on W.
Washington Street during the month of October 2024. The results were submitted to City Engineer
Todd Mittge for review. Along with review of the study, Mr. Mittge conducted a site survey of
this area. As a result, stops signs were recommended at 4th SW & Washington stopping east/west
vehicles, making this intersection a four way stop.
STATUS OF ISSUE: On December 03, 2024 the City of Paris Traffic Commission considered
this issue after a presentation by Mr. Mittge and voted 5-0 to recommend the City Council consider
approval of installing stops signs for east/west traffic at 4th SW & Washington, making it a four
way stop.
BUDGET: Anticipated $200.00 impact on current budget
RECOMMENDATION: Approve ordinance amending the Traffic Control Map installing stops
signs for east/west traffic at 4th SW & Washington.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING THE TRAFFIC CONTROL MAP ADOPTED IN SECTION
11.02.005 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS
ADDING STOP SIGNS ON WEST WASHINGTON STREET AT ITS
INTERSECTION WITH 4TH SW STREET STOPPING EAST AND WEST-
BOUND TRAFFIC ON WEST WASHINGTON STREET; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A
REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A
PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Paris Traffic Commission is charged with reviewing and
evaluating proposals to add or remove traffic control devices on city streets and roadways
throughout the City of Paris; and,
WHEREAS, among those traffic control devices evaluated by the Traffic Commission
is the placement of stop signs at various intersections throughout the city; and,
WHEREAS, the City received complaints from citizens on West Washington Street
concerning speed of vehicles traveling east/west on the street and said citizens requested
stop signs on east and west bound West Washington Street at 4th SW Street, creating a four
way stop; and
WHEREAS, the Traffic Commission, at its regular meeting on December 3, 2025,
considered and evaluated the request from citizens for the placement of stop signs on West
Washington Street at its intersection with 4th SW Street stopping east and west -bound
traffic on West Washington Street and, having done so, found and determined that the
placement of stop signs at this location in the City of Paris is necessary to protect the public
health and safety and is in the best interests of the citizens of the City of Paris;
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 and are incorporated herein for all purposes.
Section 2. That the Traffic Control Map of the City of Paris, Texas, as amended, and
as adopted in Section 11.02.005 of the Code of Ordinances of the City of Paris, Texas, be,
and the same is hereby, further amended to include the following stop signs:
"Stop signs on West Washington Street at its intersection with 4th SW Street
stopping east and west -bound traffic on West Washington Street."
Section 3. 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 4. 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 5. 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 6. That any person violating any provision of this ordinance shall be guilty
of a Misdemeanor, and upon conviction, shall be subject to a fine in accordance with
provisions of Sec. 1.01.009 of the City of Paris Code of Ordinances, and each and every day's
continuance of any violation of the above -enumerated sections shall constitute and be
deemed a separate offense.
Section 7. That this ordinance shall become effective from and after its passage and
publication as required by law.
PASSED AND ADOPTED this 13th day of January, 2025.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Proposed Stop Signs:
SW 4th St/W Washington St
East/West Bound Traffic
Item No. 12
FATY " r M127 I MI" I M
TO: City Council
Robert Vine, Interim City Manager
FROM: Robert Talley, Code Enforcement Supervisor
SUBJECT: DEMOLITION CONTRACT
DATE: January 13, 2025
BACKGROUND: The City of Paris contracted with Sanitation Solutions, Inc. to demolish and
remove debris of structures condemned by the Building and Standards Commission. That contract
expires January, 2025.
STATUS OF ISSUE: A new bid was advertised for demolition and debris removal of structures
condemned by the Building and Standards Commission. Three bids were received for this service
from Pridemore Construction, LLC, Sanitation Solutions, Inc., and RNDI Companies, Inc. The
bids were as follows:
• Pridemore Construction, LLC -$54.00 per ton
• Sanitation Solutions, Inc. - $95.00 per ton
• RNDI Companies, Inc. - $55.00 per ton
BUDGET: $150,000.00 demolition and removal.
RECOMMENDATION: It is recommended that the new contract be awarded to Pridemore
Construction, LLC, for a per ton demolition and removal of $54.00 per ton, with the contract length
of three years.
STATE OF TEXAS
COUNTY OF LAMAR
KNOW ALL MEN BY THESE PRESENTS:
AGREEMENT
THIS AGREEMENT is entered into this 13th day of January, 2025, by and between
the City of Paris, Paris, Texas, hereinafter called OWNER, and Pridemore
Construction, LLC, with its main offices located at located at 600
CR 22920, Paris, Texas 75460, hereinafter called CONTRACTOR.
1.01 OWNER employs CONTRACTOR to perform and CONTRACTOR agrees to
perform structural demolition services (the Work) in accordance with the Bid Form
attached hereto as Exhibit A; in accordance with the Master Specifications
attached hereto as Exhibit B; and in accordance with this Agreement.
1.02 The term of this agreement shall be three (years) beginning on January 13, 2025
and ending on January 12, 2028.
1.03 OWNER agrees to provide work orders to CONTRACTOR by no later than the fifth
day of each month. There is no guarantee of the number of work orders which will
be provided; however, CONTRACTOR agrees to complete, in their entirety, no
fewer than five (5) outstanding work orders by no later than the last day of each
month. Work orders should be completed in the order in which they were given to
CONTRACTOR, and CONTRACTOR shall bill OWNER for completed work orders
in accordance with Section 1.06 hereof.
1.04 Additional time to perform monthly work orders will be allowed by the OWNER only
in the instance of substantial weather delays which make performance impractical,
as determined exclusively by and approved by the OWNER. Weather delays will
be considered by the OWNER only if requested immediately by the
CONTRACTOR. Because CONTRACTOR will be completing work orders based
on a monthly schedule, CONTRACTOR shall ensure that OWNER is made aware
of any and all weather delays that occur throughout the month in the event those
weather delays result in CONTRACTOR's failure to complete the required number
of work orders by the monthly deadline.
1.05 OWNER and CONTRACTOR recognize that time is of the essence of this
Agreement and that OWNER may suffer financial loss if the Work is not completed
on schedule with the City's fiscal year and within the times specified above, plus
any extensions thereof allowed in accordance with this Agreement. They also
recognize that delays, expense, and difficulties involved in proving in a legal
proceeding will result an actual loss suffered by OWNER if the Work is not
completed on time and that such losses will be difficult if not possible to calculate.
Accordingly, instead of requiring any such proof, OWNER and CONTRACTOR
agree that as liquidated damages for unapproved delays (but not as a penalty)
CONTRACTOR shall pay OWNER $100.00 per work order for each calendar day
beyond the last day of each month that CONTRACTOR failed to complete a
minimum of five (5) outstanding work orders. This Section does not apply to
outstanding work orders beyond the minimum five (5) required in Section 1.03.
1.06 CONTRACTOR must submit bills to OWNER on a monthly basis for all work
completed during the month by no later than the fifth day of the following month.
Bills should include a cover page showing the full amount due for the month,
completed work orders showing the cost per structure, and landfill trip tickets for
debris related to the demolition of each structure. No additional charges will be
permitted unless approved in advance in writing by OWNER as a change order.
No extra charges will be permitted for weather delays. CONTRACTOR will be paid
within thirty (30) days of receipt of invoice by OWNER for work completed in
conformance with the specifications, bid forms, and this contract. Nothing herein
shall require OWNER to expend more funds than that amount currently budgeted
for this activity as approved by the City Council.
1.07 The CONTRACTOR shall, for all purposes hereunder, be considered an
independent contractor.
1.08 CONTRACTOR shall be responsible for the safety of operations and shall provide
appropriate safety warnings for the protection of the work area. Provision of safety
includes use of appropriate barricades, traffic control, control of the use of
equipment near traffic or pedestrians, and provision of other controls and warnings
as needed.
1.09 OWNER shall not be liable to CONTRACTOR, CONTRACTOR'S agents,
servants, employees, patrons, customers, visitors, guests, or invitees, nor any
pedestrian or bystander for any damage or injury caused by the acts or negligence
of CONTRACTOR, CONTRACTOR's officers, employees, agents, or servants, or
resulting from the operation of any device or equipment located upon the
contracted property, or any appurtenance thereof, nor for any damage or injury
from any defect or want of repair of any structure or device on the contracted
property.
1.10 CONTRACTOR agrees to indemnify, save, and keep harmless the OWNER,
its elected officials, employees, and agents from any and all demands, debts,
liabilities, suits, claims, and causes of action of every kind on account of
injury or damage to any person or property, arising from or connected with
the services and contractual duties provided by the CONTRACTOR
hereunder.
1.11 CONTRACTOR is required to provide, during the term of this Agreement, and to
keep and maintain in full force and effect, a policy or policies of insurance,
providing at least $500,000.00 per person and $1,000,000.00 aggregate
indemnifying the CONTRACTOR and the OWNER as a named insured for any and
all damages, personal injuries, or property damages sustained in carrying out the
duties of this contract, or any part thereof, as the result of the negligence of the
CONTRACTOR, agents, servants, or employees, and shall pay all premiums due
thereon when due. CONTRACTOR shall also be obligated to maintain worker's
compensation insurance in conformance with and if required by State law.
1.12 It is expressly provided that all insurance policies required hereunder shall and
must be written by a reputable insurance company or companies, and where
appropriate must show the OWNER as an additional insured, subject to approval
by the City Attorney of the City of Paris, and the CONTRACTOR's selected
insurance carrier or carriers shall deliver a copy of any such policies to the City
Clerk of the City of Paris, 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 shall remain in effect at all times during this contract period. All such
policies shall be written so that OWNER 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 made to the OWNER by
certified mail, return receipt requested, addressed to the City of Paris at the
following address: City Clerk, City of Paris, P.O. Box 9037, Paris, Texas 75461-
9037.
1.13 CONTRACTOR shall keep and perform every agreement and covenant herein. In
the event CONTRACTOR shall default in any covenant, condition, provision, or
stipulation herein contained, OWNER may notify CONTRACTOR verbally or, at its
discretion, in writing, that a discrepancy has occurred. Notice when given shall
include a description of the discrepancy and directives for correction. If
CONTRACTOR fails to correct such default within thirty (30) days of such notice,
CONTRACTOR shall be deemed to be in breach of this Agreement and a
termination by OWNER in accordance with Section 1.15 shall be considered a
termination for cause. CONTRACTOR remains solely responsible to complete the
work as contracted, whether notified of a discrepancy by OWNER or not, and
failure of OWNER to notify of such discrepancy shall not excuse CONTRACTOR's
obligations hereunder.
1.14 OWNER will not be responsible for faulty work, repeat work that was due to
CONTRACTOR error or omission, or mechanical breakdown of equipment. The
properties are vacant, subject to illegal dumping and other misuse, and it is
expressly the CONTRACTOR's obligation to use caution while performing the work
at all times. OWNER expressly denies any liability connected to the condition of
any such properties, and CONTRACTOR agrees that OWNER has no obligation
to ensure that the properties are prepared for demolition work in any way.
1.15 OWNER may terminate this agreement for cause or at its convenience at anytime
during the period of performance. If termination is for cause, CONTRACTOR shall
immediately cease further services and shall be compensated only for that work
completed to the date of termination and completed in full conformance with the
bid forms, Master Specifications, and this Agreement. If termination is for the
OWNER's convenience, CONTRACTOR shall be compensated for that work
completed or partially completed to the date of termination and performed in full
conformance with the bid forms, Master Specifications, and this Agreement, plus
CONTRACTOR shall be compensated for any additional charges reasonably
incurred, the amount of which shall be determined by the OWNER, in preparation
for performance of any further services outstanding. Other than as stated herein,
CONTRACTOR shall have no other claim or recourse against the OWNER for
termination of the contract.
1.16 This Agreement may not be subcontracted, in whole or in part, without the
OWNER's express written approval in advance of the services.
1.17 CONTRACTOR shall not discriminate against any employee because of race,
color, religion, sex, national origin, age, or disability.
1.18 The provisions of this Agreement are severable, and if any provision or part of this
Agreement or the application thereof to any person or circumstance shall ever be
held by any court of competent jurisdiction to be invalid or unconstitutional for any
reason, the remainder of this Agreement shall not be affected thereby.
1.19 This Agreement embodies the entire understanding between the parties and there
are no prior effective representations, warranties, or agreements, written or oral,
between the parties.
1.20 This Agreement shall be subject to all present and future valid laws of the United
States, State of Texas, and Ordinances of the City of Paris.
1.21 All services to be performed hereunder shall be and are to be rendered exclusively
in Lamar County, Texas. Venue for any State Court cause of action arising out of
or in any way related to this contract shall lie exclusively in the courts of Lamar
County, Texas.
1.22 By executing this Agreement, the CONTRACTOR hereby certifies that the only
person or persons interested in this Agreement as principals are named herein,
and the CONTRACTOR during the bid process or otherwise has not, either directly
or indirectly, entered into any agreement, participated in any collusion, or otherwise
taken any action in restraint of free competitive bidding in connection with the
services contracted herein. Collusion in the bid process will constitute a
substantial breach of the contract and justify termination of the Agreement by the
OWNER for cause.
Executed in duplicates, each of which is deemed to be original and as of the day
and date first written in this Agreement.
CONTRACTOR
By: Cole Pridemore,
ATTEST:
Address forgiving notices:
600 CR 22920
Paris, Texas 75460
CITY OF PARIS, PARIS, TEXAS
By: Robert G. Vine, Interim City
Manager
ATTEST:
Address for giving notices:
P. O. Box 9037
Paris, TX 75461
MASTER SPECIFICATIONS
DEMOLITION AND DISPOSAL OF DILAPIDATED STRUCTURES
CITY OF PARIS, PARIS, TEXAS
1.0 DEFINITIONS:
A. OWNER shall mean the City of Paris.
B. Contractor shall mean the person or firm who is awarded the demolition and contract for
the OWNER.
C. Cleaning and removal of trash and debris shall mean the use of any mechanical or hand
method by which filth, rubbish, refuse, or other matter that might be unhealthy and/or
unsightly is removed from any property or lot and disposed of by approved methods as
delineated in the Code of Ordinances.
D. CODE ENFORCEMENT SUPERVISOR means the CODE ENFORCEMENT
SUPERVISOR for the City of Paris.
E. Hand work/cutting shall mean the mowing of high weeds by means other than a tractor
mower and may include the use of weed eaters, brush hogs, clippers, chain saws, and other
similar tools. Other hand work may include the removal of fencing, refuse, trash, junk,
and other debris.
F, Work Order shall mean a notice in writing from the OWNER instructing the
CONTRACTOR to perform specific work at a particular location (a copy is attached
hereto).
G. Demolition shall mean the safe, timely, and complete removal of a specified structure with
the debris removed to a City and TCEQ approved landfill.
H. Utilities shall include services provided to the structure including gas, water, and
electricity. Other services may be involved in a particular contract.
I. Mature tree shall mean a tree having a trunk circumference of at least ten (10) inches but
less than sixty (60) inches measured four and one-half (4 1/2) feet above natural grade
level.
J. Protected tree shall mean any tree having a circumference of sixty (60) or more, measured
four and one-half (4 1/2) feet above natural grade level.
1.01 GENERAL
A. Each Work Order shall provide for one-time specific demolition required by OWNER for
property management and enforcement on a specified property. Exact demolition specifics
shall be provided in each Work Order.
B. CONTRACTOR shall be responsible for the safety of personnel and operations.
CONTRACTOR shall provide appropriate safety warnings for the protection of the work
area. Provision of safety includes use of appropriate barricades, traffic control, control of
the use of equipment near traffic or pedestrians, and provision of other controls and
warnings as needed or as specified by the Work Order.
C. Because time is of the essence in the filing of liens after demolition, Work Orders should
be returned to OWNER immediately upon completion of demolition. Work Orders will
not be considered CONTRACTOR's bills they are used solely for the purpose of advising
CONTRACTOR of the nature of work necessary at each location and for assisting
OWNER in filing liens.
1.02 DEMOLITION
A. Demolition shall include the removal of only those exact items specifically set out in the
Work Order.
B. Overall safety and adverse impact to the neighborhood shall be considered a priority.
CONTRACTOR shall provide demolition within hours which are reasonable to the
conditions of the neighborhood, be cognizant and make provisions to control excessive
dust, and secure the area for the overall safety of operations as is defined within these
Specifications. CONTRACTOR shall not leave the work site when portions of a structure
or other items are in a dangerous condition. Such conditions may require posting a guard
or continuing the demolition until the condition is relieved.
C. Demolition shall follow good construction practices. It is the intent of OWNER to remove
the standing hazard as quickly as possible, and CONTRACTOR should attempt to satisfy
this. This may involve the processes of pushing, breaking, or otherwise reducing standing
components into a pile or piles of debris.
Any form and method of demolition will be accepted as long as it conforms to good
practice, the method is safe, CONTRACTOR has a history of successful applications, and
the method is relative to a particular job provided by the Specifications. OWNER reserves
the right to forbid a specific method when CONTRACTOR is inexperienced, is wishing to
try experimental techniques or practices, or is proposing a technique which is dangerous to
the surrounding neighborhood.
D. Equipment and tools left on the property are the responsibility of CONTRACTOR.
OWNER shall not be responsible for theft, damage, or adverse use of the equipment.
E. Mature and protected trees found on a property shall be protected. Contractors shall work
around the tree carefully to prevent damage to the tree and its root system. Sapling trees
and sprouts may be removed only if they are found in a path needed for access to the
structure.
1.03 TRASH AND RUBBISH REMOVAL BY CONTRACTOR (WHEN SPECIFIED IN
BID FORM)
A. Additional waste material shall be removed from the property and disposed of by
CONTRACTOR only if specified in a Work Order. CONTRACTOR shall not deviate
from the Specifications, shall not utilize waste removal processes that are contrary to good
practices or State law, and shall not utilize removal of waste to an unapproved site location.
Proof of oroveir dis osal of all waste materials includin demolition debris must be
SU bmitted u ion com letion b rovidin the OWNER with a roved landfill tickets
at the time of monthl billin.
B. OWNER reserves the right to recycle prior to or during actual demolition. This may
include removing useable structural elements, removing or separating furnishings,
shingles, and other waste components. This will be done by OWNER at its expense prior
to issuance of a Work Order.
C. OWNER reserves the right to approve any method for controlling and removing the waste.
This may involve using on-site containers, grinding the material to reduce the waste, or
providing that CONTRACTOR transport the waste to a City and TCEQ approved landfill.
Bidders should specify intent and include the cost of such disposal method in its Bid.
D. Junk, trash, and rubbish type material shall be removed from property only when
specifically provided by the Work Order. All such material shall be disposed of properly
at a sanitary landfill or as otherwise specified.
E. Minor litter shall be cleaned and removed as a part of the total bid on any project.
This type of work shall include the removal of any debris by any means and shall be
removed as is necessary utilizing hand work or the use of machinery.
Special attention shall be made to remove small articles, stone, metal, wire, and other
similar objects which could become a hazard if thrown by a shredder or mower.
F. Properties which have rubbish or waste which requires special handling may have specific
instructions for the removal and/or disposal of the material provided in the Work Order.
G. CONTRACTOR shall use equipment that is suitable for the work to be performed and the
time constraints of the bid.
1.04 LEVELING, FILLING, AND GENERAL BLADE WORK
A. Work Orders will, at times, require that lots be leveled, abandoned wells filled, holes filled,
or humps brought to normal grade. Blade work may be necessary to improve drainage,
remove humps, fill holes, or other needs. This type of work may require the use of heavy
equipment, standard box blades, angled blades, or tiller type attachments. Fill dirt required
may provided by OWNER if necessary.
Blade work shall be carefully performed to a level approved by OWNER. This
includes leveling of the area designated and removing ruts, holes, low spots, roots,
debris, large clumps of soil, rocks, and any other material that interferes with the
maintenance of the property.
2. Wells shall be filled with clean sand or gravel type material. No exceptions.
CONTRACTOR must advise OWNER prior to filling a well if additional expenses
will be incurred.
1.05 FENCES
A. Removal of residential fences may only be provided when specified by the OWNER.
B. Removal of residential fences shall include the removal of all posts, concrete, sheet metal,
wire, brush, junk, etc. and may include work by hand or equipment when allowable. When
a fence is removed, the material removed is rubbish and shall be disposed of by
CONTRACTOR; however, brick or concrete may be buried on site.
1.06 DISPOSAL AND RECYCLING
A. Bricks and concrete may be buried on site at CONTRACTOR's option; however, all other
waste shall be deposited in a TCEQ approved landfill with receipts provided to the City of
Paris.
B. Contractors shall furnish written proof to the OWNER of the proper and legal disposal at
a City and TCEQ approved landfill of all materials generated from performance of the
Agreement. Final payment will not be released to CONTRACTOR until proof of proper
disposal of all items has been furnished to OWNER and OWNER has confirmed that all
items listed on the Work Order have been satisfactorily completed.
1.07 UTILITIES
Unless otherwise specified, utility disconnects shall be the responsibility of OWNER.
PROJECT IDENTIFICATION: Demolition and Disposal of Dilapidated Structures
The undersigned BIDDER proposes and agrees, if this Bid is accepted, to enter into an
agreement with OWNER in the form included in the Contact Documents to perform and
furnish all Work as specified or indicated in the Contract Documents and Master
Specifications for the Contract Price and within the Contact Time indicated in this Bid and
in accordance with other terms and conditions on the Contract Documents.
2. BIDDER accepts all terms and conditions of the Advertisement or Invitation to Bid and
Instructions to Bidder. This Bid will remain subject to acceptance for sixty (60) days after
the day of Bid opening. BIDDER will sign and submit the Agreement with the Bonds and
other documents required by the Bidding Requirements within fifteen (15) days after the
date of OWNER'S Notice of Award.
In submitting this Bid, BIDDER represents, as more fully set forth in the Agreement, that:
(a) BIDDER has examined copies of all the Bidding Documents and of the following
Addenda, receipt of which is hereby acknowledged:
Number Date
(b) BIDDER has familiarized itself with the nature and extent of the Contract
Documents, Work, and all local conditions and Laws and Regulations that in any
manner may affect cost, progress, performance, or furnishing of the Work.
(c) BIDDER has given OWNER written notice of all conflicts, errors, or discrepancies
that it has discovered in the Contract Documents and the written resolution thereof
by OWNER is acceptable to BIDDER.
(d) This Bid is genuine and is not made in the interest of or on behalf of any undisclosed
person, firm, or corporation and is not submitted in conformity with any agreement
or rules of any group, association, organization, or corporation; BIDDER has not
directly or indirectly induced or solicited any other BIDDER to submit a false or
sham Bid; BIDDER has not solicited or induced any person, firm, or corporation to
refrain from bidding; and BIDDER has not sought by collusion to obtain for itself
any advantage over any other Bidder or over OWNER.
0
Exhibit A
il
5
6.
BIDDER will complete the Work for the following price:
Description of work: Demolition and disposal of dilapidated structures located in
various areas around the city of Paris. Bidders should
carefully review the Master Specifications included in the
Contract Documents to ensure the Bid includes all potential
aspects of property removal and disposal at a City and TCEQ
approved landfill (City of Paris will be directly responsible
for tipping fee). Payment will be based upon landfill trip
tickets.
Total Price Per Ton
(36 month contract)
$ 54.00
THIS BID DOES NOT INCLUDE THE WASTE DISPOSAL/ TIPPINGS FEE
Quantities are not guaranteed. Payment will be based on actual quantities.
BIDDER accepts the provisions of the Agreement as to liquidated damages in the event of
failure to complete the Work on time.
The following documents are attached to and made a condition of this BID:
(a) Perfonnance and Payment Bonds are required (or cashier's check for 5% of Bid).
(b) Statement of Bidder's Qualifications.
CONTRACTOR must submit certificates of insurance and workmen compensation
insurance in accordance with State and local law.
SUBMITTED ON December 20th
10
. 2024.
If BIDDER is:
An Individual
By- ...__..___ ...__ _ _
..
doing business as
Business address:
(Individual's Name)
Business address: 600 CR 22920 Paris, Texas 75460
Phone Number: 903-495-2488
A Corporation
By_ ,.. (Corporation Name)
(State of Incorporation)
BY �.�m.., M _�....__ . ..... (Authorized Official)
(Title)
(Corporate Seal)
Attest _ --- _ - (Secretary)
Business addres
11
Phone Number:
A Joint Venture
(Name)
(Address)
BY_ — _ ..._..._—..n- ._a� (Name)
(Name)
BY_. , _..r _ _ w...._ . .............. (Name)
BY.. ... _.,.., ...... - _ _.......__.w .. a __ ....... (Name)
(Each joint venturer must sign. The manner of signing for each individual, partnership and
corporation that is a party to the joint venture should be in the manner indicated above)
12
STATEMENT OF BIDDER'S QUALIFICATIONS
(To be submitted by the BIDDER ONLY at the time of its Bid)
To allow the OWNER to determine the lowest responsible BIDDER, the following
information shall be provided. Attach separate sheets as needed,
Name of BIDDER.
2. Type of organization, i.e., corporation, sole proprietor, partnership, etc.
Permanent main office address.
4. When organized.
5. If a corporation, where incorporated.
6. State how many years you have been engaged in the contracting business under your
present firm or trade name, and give all other names under which your organization has
operated in the last 10 years.
7. State the name of all corporate officers, or partners, or the owners, as appropriate.
8. State the company tax identification number, or, if a sole proprietor, the proprietor= social
security number.
9. Contracts on hand: (Attach as schedule of these, showing amount of each contract and the
appropriate dates and current percent of completion). Provide name, address, and telephone
number of the project owner and the engineer.
10. General character of work performed by your company.
11. Have you ever failed to complete any work awarded to you? If so, provide information
about where and why.
12. Have you ever defaulted on a contract? If so, provide information about where and why.
13. List your important projects recently completed by your company and for whom, stating
the approximate cost for each and the month and year completed. Provide name, address,
and telephone number of the project owner and engineer.
14.. List your major equipment available for this contract, including the make, model, year, and
type of equipment along with its current condition.
13
PRIDEMORE CONSTRUCTION LLC
DEMOLITION AND DISPOSALS OF DILAPTED STRUCTURES 2024
PAGE 13 INFORMATION
1. NAME OF BIDDER: PRIDEMORE CONSTRUCTION,LLC
2. TYPE OF ORGANIZATION: LLC PARTNERSHIP
3. PERMANENT MAIN OFFICE: 600 CR 22920 PARIS, TEXAS 75460
4. WHEN ORGANIZED: LLC FORMED JANUARY 17, 2023. BEEN IN CONSTRUCTION
BUSINESS SINCE 20
5. WHERE INCOROPATED: TEXAS
6. WORKING CONSTRUCTION FOR 2 YEARS UNDER PRIDEMORE CONSTRUCTION,
YEARS AS INDEPENDENT CONTRACTOR COLE PRIDEMORE.
7. NAMES OF OWNERS- COLE PRIDEMORE- PRESIDENT, BRITTANY MORGAN
PRIDEMORE- VICE PRESIDENT, PAMELA PRIDEMORE- SECRETARY/TREASURER.
8. EIN:92-2466727
9. CONTRACTS ON HAND: SEE ADDITIONAL PAGE
10. GENERAL CHARACTER: TRUSTWORTHY, RESPONSIBLE, FAIRNESS AND SAFE.
11. WE HAVE NEVER FAILED TO COMPLETE WORK AWARDED TO US.
12. WE HAVE NEVER DEFAULTED ON A CONTRACT
13. RECENT COMPLETED PROJECTS- SEE ADDITIONAL PAGE
14. EQUIPMENT AVAILABLE: 1976 PETERBUILT 12 YARD LOAD DUMP TRUCK, 2022
RAM 3500, 2024 YANMAR MINI EXCAVATOR, 2019 VOLVO EXCAVATOR, 2021 JOHN
DEER SKIDSTEER, 2017 NORSTAR TRAILER, 1998 CATERPILLAR D5C
BULLDOZER- ALL IN WORKING CONDITION
15. WE HAVE DEMO EXPERIENCE IN ALMOSTALL OF THE JOBS WE PERFORM. WE
TYPICALLY HAVE TO REMOVE ANYTHING STRUCTUAL WHEN WE PLACE NEW
WORK IN SPOT. REMOVAL OF CONCRETE, SMALL BUILDING STRUCTURES,
TREE REMOVAL ARE A FEW TO NAME.
16. COLE PRIDEMORE HAS A LENGHTY HISTORY IN CONSTRUCTION AND
DEMOLITION.
CONTRACTS ON HAND
CITY OF PARIS: MIKE WADE- STREET SUPERINTENDENT
ADDRESS: 135 SE 1 ST STREET PARIS TEXAS 75460
PHONE NO.: 903-784-9289
UNSPECIFIED $$AMOUNTAPRIL 2024 -MARCH 2025
(2"° YEAR AWARDED TO PRIDEMORE CONSTRUCTION)
DRAKE INDUSTRIAL: CARY LANGSTON
ADDRESS: 3737 LAMAR AVENUE STE 700 PARIS TEXAS 75460
PHONE NO.: 903-715-4790
UNSPECIFIED $$ AMOUNT;
BOB WRIGHT: INDEPENDENT CONTRACTOR
WORK AS REQUESTED
GDC INDUSTRIAL
HENRY FRY
1320 HILLCREST DR N SULPHUR SPRINGS TX 75482
DENISON TEXAS- PROJECT TO START JANUARY 2025
RECENTLY COMPLETED PROJECTS
1. CLIENT: HARRISON, WALKER AND HARPER
ADDRESS: 2510 S. CHURCH STREET PARIS TEXAS 75460
PHONE NO.: 903-785-1653
PROJECT SUPERVISOR: ZACK COOPER- VICE PRESIDENT
PHONE NO.: 903-517-5843
DESCRIPTION: SCHOOL PROJECT CONSISTING OF DEMOLITION AND HAUL OFF OF EXISITING PARKING
LOT, INSTALLATION OF NEW PARKING LOT, INSTALLATION OF SIDEWALKS AND RETAINING WALL, STRIPING
OF PARKING LOT.
COMPLETION DATE: JULY 2024
CONTRACT AMOUNT: $121,585.35
2. CLIENT. CITY OF PARIS
ADDRESS: 135 SE 1ST STREET PARIS TEXAS 75460
PHONE NO.: 903-785-7511
DEPARTMENT DIRECTOR/MANAGER: BILL LORANGER - PARKS SUPERINDENT
PHONE NO.: 903-754-9252
DESCRIPTION: BOAT RAMP AT LAKE CROOK CONSISTING OF DEMOLITION AND NEW CONSTRUCTION OF
CONCRETE BOAT RAMP.
COMPLETION DATE: FEBRUARY 2023
CONTRACT AMOUNT: $88,490.00
3. CLIENT: CITY OF PARIS
ADDRESS: 135 SE 1ST STREET PARIS TEXAS 75460
PHONE NO.: 903-785-7511
DEPARTMENT DIRECTOR/MANAGER: MIKE WADE- STREET SUPERINDENT
PHONE NO.: 903-784-9289
DESCRIPTION: CURRENTLY HOLD THE CONTRACT WITH THE CITY OF PARIS FOR ALL NEED CONCRETE
SERVICES TO PROVIDE, BUT NOT LIMITED TO STREET, CURB, GUTTER AND SIDEWALK DEMOLITION,
REPAIRS, AND INSTALLATION.
CONTRACT AMOUNT: PRICING IS SET PER SERVICE
COMPLETION DATE: CONTRACT RENEWS YEARLY
CONTRACTAMOUNT: NO SET AMOUNT
4. CLIENT: DRAKE INDUSTRIAL
ADDRESS: 3737 LAMAR AVENUE STE 700 PARIS TEXAS 75460
PHONE NO.: 903-784-4321
PROJECT MANAGER: CARY LANGSTON
PHONE NO.: 903-715-4790
DESCRIPTION: DEMOLITION OF CONCRETE, DIRT WORK/ SITE PREP AND INSTALLATION OF NEW
CONCRETE FOR AN ARMY BASE
COMPLETION DATE: OCTOBER 2023
CONTRACT AMOUNT: $71,100.00
5. CLIENT: HARRISON, WALKER AND HARPER
ADDRESS: 2510 S. CHURCH STREET PARIS TEXAS 75460
PHONE NO.: 903-785-1653
PROJECT SUPERVISOR: ZACK COOPER- VICE PRESIDENT
PHONE NO.: 903-517-5843
DESCRIPTION: DEMOLITION OF CONCRETE TO INSTALL 24" PIPE AND NEW CONCRETE INSTALLATION
COMPLETION DATE: SEPTEMBER 2023
CONTRACT AMOUNT: $87,348.65
15. Experience in demolition work similar in importance to this project.
16. Background and experience of the principal members of your organization, including the
officers and the proposed Project Superintendent.
17. The undersigned hereby authorizes and request any person, firm, or corporation to furnish
any information requested by the OWNER in verifications of the recitals comprising the
Statement of Bidder=s Qualifications.
Dated at ...3.0 . �e.��.� ®.....� .. � �w_� this 20TH day of DECEMBER 2024. � ...�
PRIDEMORE CONSTRUCTION, LLC
—. w......_ _ ..
Name of Bidder
"MORE
PAMELA PRIDEMORE � � � ti ° ��'
By: ,.. ._ .._
Title: SECRETARY/TREASURER
STATE OF T.XaS
COUNTY OF LG�ynaY
being duly sworn, deposes and says that he
is SuY c V ofc1� emDY�.. CuC and that the
answers to the foregoing questions and all statements therein contained are true and correct.
Subscribed and sworn to before me this 20� day ofr-mbc, , 2024.
°Y °Oe MARIAH LEA MCLAUGHLIN Notary Public
_ Notary ID #133669555
r My Commission Expires ^-� Z rJ �`
�1f OF cE' March 25, 2026 My commission expires: W
14
MASTER SPECIFICATIONS
DEMOLITION AND DISPOSAL OF DILAPIDATED STRUCTURES
CITY OF PARIS, PARIS, TEXAS
1.0 DEFINITIONS:
A. OWNER shall mean the City of Paris.
B. Contractor shall mean the person or firm who is awarded the demolition and contract for
the OWNER.
C. Cleaning and removal of trash and debris shall mean the use of any mechanical or hand
method by which filth, rubbish, refuse, or other matter that might be unhealthy and/or
unsightly is removed from any property or lot and disposed of by approved methods as
delineated in the Code of Ordinances.
D. CODE ENFORCEMENT SUPERVISOR means the CODE ENFORCEMENT
SUPERVISOR for the City of Paris.
E. Hand work/cutting shall mean the mowing of high weeds by means other than a tractor
mower and may include the use of weed eaters, brush hogs, clippers, chain saws, and other
similar tools. Other hand work may include the removal of fencing, refuse, trash, junk,
and other debris.
F. Work Order shall mean a notice in writing from the OWNER instructing the
CONTRACTOR to perform specific work at a particular location (a copy is attached
hereto).
G. Demolition shall mean the safe, timely, and complete removal of a specified structure with
the debris removed to a City and TCEQ approved landfill.
H. Utilities shall include services provided to the structure including gas, water, and
electricity. Other services may be involved in a particular contract.
I. Mature tree shall mean a tree having a trunk circumference of at least ten (10) inches but
less than sixty (60) inches measured four and one-half (4 1/2) feet above natural grade
level.
J. Protected tree shall mean any tree having a circumference of sixty (60) or more, measured
four and one-half (4 1/2) feet above natural grade level.
Exhibit B
1.01 GENERAL
A. Each Work Order shall provide for one-time specific demolition required by OWNER for
property management and enforcement on a specified property. Exact demolition specifics
shall be provided in each Work Order.
B. CONTRACTOR shall be responsible for the safety of personnel and operations.
CONTRACTOR shall provide appropriate safety warnings for the protection of the work
area. Provision of safety includes use of appropriate barricades, traffic control, control of
the use of equipment near traffic or pedestrians, and provision of other controls and
warnings as needed or as specified by the Work Order.
C. Because time is of the essence in the filing of liens after demolition, Work Orders should
be returned to OWNER immediately upon completion of demolition. Work Orders will
not be considered CONTRACTOR's bills they are used solely for the purpose of advising
CONTRACTOR of the nature of work necessary at each location and for assisting
OWNER in filing liens.
1.02 DEMOLITION
A. Demolition shall include the removal of only those exact items specifically set out in the
Work Order.
B. Overall safety and adverse impact to the neighborhood shall be considered a priority.
CONTRACTOR shall provide demolition within hours which are reasonable to the
conditions of the neighborhood, be cognizant and make provisions to control excessive
dust, and secure the area for the overall safety of operations as is defined within these
Specifications. CONTRACTOR shall not leave the work site when portions of a structure
or other items are in a dangerous condition. Such conditions may require posting a guard
or continuing the demolition until the condition is relieved.
C. Demolition shall follow good construction practices. It is the intent of OWNER to remove
the standing hazard as quickly as possible, and CONTRACTOR should attempt to satisfy
this. This may involve the processes of pushing, breaking, or otherwise reducing standing
components into a pile or piles of debris.
Any form and method of demolition will be accepted as long as it conforms to good
practice, the method is safe, CONTRACTOR has a history of successful applications, and
the method is relative to a particular job provided by the Specifications. OWNER reserves
the right to forbid a specific method when CONTRACTOR is inexperienced, is wishing to
try experimental techniques or practices, or is proposing a technique which is dangerous to
the surrounding neighborhood.
D. Equipment and tools left on the property are the responsibility of CONTRACTOR.
OWNER shall not be responsible for theft, damage, or adverse use of the equipment.
E. Mature and protected trees found on a property shall be protected. Contractors shall work
around the tree carefully to prevent damage to the tree and its root system. Sapling trees
and sprouts may be removed only if they are found in a path needed for access to the
structure.
1.03 TRASH AND RUBBISH REMOVAL BY CONTRACTOR (WHEN SPECIFIED IN
BID FORM)
A. Additional waste material shall be removed from the property and disposed of by
CONTRACTOR only if specified in a Work Order. CONTRACTOR shall not deviate
from the Specifications, shall not utilize waste removal processes that are contrary to good
practices or State law, and shall not utilize removal of waste to an unapproved site location.
Proof of Vroper dis )osal of all waste materials including demolition debris must be
submitted u . on completion b providin the OWNER with approved landfill tickets
at the time of moot 11 billin
B. OWNER reserves the right to recycle prior to or during actual demolition. This may
include removing useable structural elements, removing or separating furnishings,
shingles, and other waste components. This will be done by OWNER at its expense prior
to issuance of a Work Order.
C. OWNER reserves the right to approve any method for controlling and removing the waste.
This may involve using on-site containers, grinding the material to reduce the waste, or
providing that CONTRACTOR transport the waste to a City and TCEQ approved landfill.
Bidders should specify intent and include the cost of such disposal method in its Bid.
D. Junk, trash, and rubbish type material shall be removed from property only when
specifically provided by the Work Order. All such material shall be disposed of properly
at a sanitary landfill or as otherwise specified.
E. Minor litter shall be cleaned and removed as a part of the total bid on any project.
This type of work shall include the removal of any debris by any means and shall be
removed as is necessary utilizing hand work or the use of machinery.
Special attention shall be made to remove small articles, stone, metal, wire, and other
similar objects which could become a hazard if thrown by a shredder or mower.
F. Properties which have rubbish or waste which requires special handling may have specific
instructions for the removal and/or disposal of the material provided in the Work Order.
G. CONTRACTOR shall use equipment that is suitable for the work to be performed and the
time constraints of the bid.
1.04 LEVELING, FILLING, AND GENERAL BLADE WORK
A. Work Orders will, at times, require that lots be leveled, abandoned wells filled, holes filled,
or humps brought to normal grade. Blade work may be necessary to improve drainage,
remove humps, fill holes, or other needs. This type of work may require the use of heavy
equipment, standard box blades, angled blades, or tiller type attachments. Fill dirt required
may provided by OWNER if necessary.
Blade work shall be carefully performed to a level approved by OWNER. This
includes leveling of the area designated and removing ruts, holes, low spots, roots,
debris, large clumps of soil, rocks, and any other material that interferes with the
maintenance of the property.
2. Wells shall be filled with clean sand or gravel type material. No exceptions.
CONTRACTOR must advise OWNER prior to filling a well if additional expenses
will be incurred.
1.05 FENCES
A. Removal of residential fences may only be provided when specified by the OWNER.
B. Removal of residential fences shall include the removal of all posts, concrete, sheet metal,
wire, brush, junk, etc. and may include work by hand or equipment when allowable. When
a fence is removed, the material removed is rubbish and shall be disposed of by
CONTRACTOR; however, brick or concrete may be buried on site.
1.06 DISPOSAL AND RECYCLING
A. Bricks and concrete may be buried on site at CONTRACTOR's option; however, all other
waste shall be deposited in a TCEQ approved landfill with receipts provided to the City of
Paris.
B. Contractors shall furnish written proof to the OWNER of the proper and legal disposal at
a City and TCEQ approved landfill of all materials generated from performance of the
Agreement. Final payment will not be released to CONTRACTOR until proof of proper
disposal of all items has been furnished to OWNER and OWNER has confirmed that all
items listed on the Work Order have been satisfactorily completed.
1.07 UTILITIES
Unless otherwise specified, utility disconnects shall be the responsibility of OWNER.
Item No. 13
Memorandum
TO: Mayor, Mayor Pro -Tem, & City Council
ICM Robert Vine
FROM: Connie Lawman, Library Director
SUBJECT: Consider and Act on Adopting a Fine Free Policy at the Paris Public Library
DATE: January 13, 2025
BACKGROUND: The Paris Public Library (PPL) has a practice of charging daily circulation
fines to patrons who are late in returning their items by a provided due date. at a current rate of
.20 cents per day for all items in the building. This was industry standard with public libraries for
several years.
STATUS OF ISSUE: The purpose of the library is to enrich the community and to provide a
stress -free and open access collection to our patrons and the charging of fines can create an
economic barrier to our collection of books, music, and films. The goal of adopting a fine -free
policy regarding checkout materials is to attract more patrons and reduce said barriers to our
collection. Many public libraries across the state and the nation have opted to move to a Fine Free
Policy with positive results. The library will still charge patrons for lost or damaged materials.
BUDGET: Adopting a fine free library policy collection items returned late will have minimal
impact on the budget.
RECOMMENDATION:
Option: 1. Adopt a fine free policy
2. Maintain fines for collection material returned past the designated due date.
Staff recommends adopting a fine free policy, which is retroactive, where all patrons can enjoy
reading without limits (fines).
Item No. 14
TO: Mayor, Mayor Pro -Tem & City Council
Grayson Path, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Economic Development Agreement with Audax Enterprises, LLC
(Williamsburg Shopping Center)
DATE: January 13, 2025
BACKGROUND: Audax Enterprises, LLC (Audax) acquired the Williamsburg Shopping Center
(Center) located at 1313 to 1581 Clarksville St., Paris, Texas 75460 ("Property") in 2023, and
during the course of 2023 and into 2024, spent over $1 million in improvements to the property
including replacing the roof, doing work on the parking lot, and giving the exterior of the Center
a much needed facelift. After completing the renovations, Audax learned of the City's retail
economic development program and applied for incentives. After City staff completed its due
diligence and presented the project to Council, Council directed staff to prepare a Chapter 380
agreement with the developer to incentivize and aid in its attraction of new retailers to fill 9 empty
retail spaces within the Center. The property is located across Clarksville Street from Kroger, and
redevelopment of the Center is likely to be an economic catalyst for the area and will be a great
convenience for area residents.
STATUS OF ISSUE: The attached Economic Development Agreement represents the culmination
staff's negotiations with Audax and is consistent with the retail incentives policy. The Agreement
contains a property tax incentive in the form of five (5) yearly grants in an amount equal to 50%
of the portion of the maintenance and operations (M & O) ad valorem taxes assessed and payable
to the City and attributable to the vacant spaces for the calendar years 2024, 2025, 2026, 2027, and
2028. Each grant will be in the amount equal to 18% of the total M & O taxes assessed and paid
on the entire property. This percentage has been calculated by multiplying 50% by the percentage
of total square footage of the vacant vertical improvements to that of the total Property (36%).
The Agreement also includes a sales tax incentive in the form of three (3) annual sales tax grants,
each in an amount equal to fifty percent (50%) of the sales tax receipts attributable to the new
retailers' sales for the calendar years 2024, 2025, and 2026.
BUDGET: Based on the current taxable value of the property, staff has calculated that each of the
5 yearly property tax grants will be in the approximate amounts of $1,390.00. We do not have
information regarding estimates of the sales tax impact, but the 3 annual sales tax grants will be a
portion of retailer generated revenues, and the 50% portion of the new sales taxes that the City
retains will be a net revenue gain over the $0.00 in sales taxes the vacant spaces are generating
now.
RECOMMENDATION: Approve a resolution approving an Economic Development Agreement
with Audex Enterprises, LLC and authorize the Mayor to execute same on behalf of the city.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS
APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF PARIS, TEXAS AND AUDAX
ENTERPRISES, LLC; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, Audax Enterprises, ("Company") is the owner of the Williamsburg
Shopping Center (the "Shopping Center") located at 1313 to 1581 Clarksville St., Paris, Texas
75460 ("Property'); and,
WHEREAS, prior to the Company's purchase of the Shopping Center, it was in a state
of disrepair and required extensive renovations in order to retain existing tenants and fill
vacant retail spaces; and
WHEREAS, the Property currently has several vacant retail spaces totaling 29,200
square feet, which vacancies are detrimental to both the viability of the Property as a whole
and to the general retail economy of the City; and
WHEREAS, the Company has made a capital investment exceeding one million dollars
($1,000,000.00) to renovate said Shopping Center to attract new retail tenants and retain
existing tenants; and
WHEREAS, the City wishes to incentivize the Company to lease vacant retail spaces
on the Property to new retail tenants (sometimes individual and collectively referred to as
"Future Retailer" or "Future Retailers") and to support the Company to conduct recruitment
of Future Retailers; and
WHEREAS, the Company has advised the City that an agreement with the City to
provide economic incentives to the Company as set forth herein would be a contributing
factor that would assist the Company in inducing new Future Retailers to lease vacant spaces
on the Property; and
WHEREAS, the City has adopted programs for promoting economic development and
this Agreement and the economic development incentives set forth herein are given and
provided by the City pursuant and in accordance with those programs; and
WHEREAS, the City is authorized by Article 52-a of the Texas Constitution and
Chapter 380 of the Texas Local Government Code to provide economic development
incentives to promote local economic development and to stimulate business and
commercial activity in the City; and
WHEREAS, the City has determined that making economic development grants in
accordance with this Agreement is in accordance with the City's economic development
program and will: (i) further the objectives of the City; (ii) benefit the City and the City's
inhabitants; and (iii) promote local economic development and stimulate business and
commercial activity in the city; and
WHEREAS, the area surrounding the Shopping Center is somewhat distressed, and
the Shopping Center, when fully occupied, will be an economic catalyst to a part of the City
that has not seen much development in recent years;
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 the
property the subject thereof meet the City's Chapter 380 Retail Economic Development
Program adopted by the City of Paris by Resolution No. 2022-014 and will lead to the
economic development of the Program Area described in said Resolution No. 2022-014.
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 economic
development agreement 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 13th day of January, 2024.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
ECONOMIC DEVELOPMENT AGREEMENT
Williamsburg Shopping Center
This Economic Development Agreement ("Agreement") is made by and between
the City of Paris, Texas ("City"), a Texas home rule municipal corporation, and Audax
Enterprises, LLC., a Texas limited liability corporation ("Company"), acting by and through
their respective authorized officers.
WITNESSETH:
WHEREAS, the Company is the owner of certain developed real property
("Property") in the City, which property is known as the Williamsburg Shopping Center
(the "Shopping Center"); and
WHEREAS, prior to the Company's purchase of the Shopping Center, it was in a
state of disrepair and required extensive renovations in order to retain existing tenants
and fill vacant retail spaces; and
WHEREAS, the Property currently has several vacant retail spaces totaling 29,200
square feet, which vacancies are detrimental to both the viability of the Property as a
whole and to the general retail economy of the City; and
WHEREAS, the Company has made a capital investment of one million dollars
($1,000,000.00) to renovate said Shopping Center to attract new retail tenants and retain
existing tenants; and
WHEREAS, the City wishes to incentivize the Company to lease vacant retail
spaces on the Property to new retail tenants (sometimes individual and collectively
referred to as "Future Retailer' or "Future Retailers") and to support the Company to
conduct recruitment of Future Retailers; and
WHEREAS, the Company has advised the City that an agreement with the City to
provide economic incentives to the Company as set forth herein would be a contributing
factor that would assist the Company in inducing new Future Retailers to lease vacant
spaces on the Property; and
WHEREAS, the City has adopted programs for promoting economic development
and this Agreement and the economic development incentives set forth herein are given
and provided by the City pursuant and in accordance with those programs; and
WHEREAS, the City is authorized by Article 52-a of the Texas Constitution and
Chapter 380 of the Texas Local Government Code to provide economic development
incentives to promote local economic development and to stimulate business and
commercial activity in the City; and
WHEREAS, the City has determined that making economic development grants in
accordance with this Agreement is in accordance with the City's economic development
program and will: (i) further the objectives of the City; (ii) benefit the City and the City's
inhabitants; and (iii) promote local economic development and stimulate business and
commercial activity in the city; and
WHEREAS, the area surrounding the Shopping Center is somewhat distressed,
and the Shopping Center, when fully occupied, will be an economic catalyst to a part of
the City that has not seen much development in recent years;
NOW, THEREFORE, in consideration of the foregoing, and on the terms and
conditions hereinafter set forth, and other valuable consideration the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:
Article I—Term
This Agreement shall be effective on the last date of execution hereof ("Effective
Date") and shall continue until the Expiration Date, unless sooner terminated as provided
herein.
Article II—Definitions
"Annual Grants" or "Grants" may refer to Annual Property Tax Grants or Annual
Sales Tax Grants or to both collectively.
"Annual Property Tax Grants" shall mean five (5) annual grants each in an amount
equal to fifty percent (50%) of the Maintenance and Operations ("M & O") portion of the
City's ad valorem taxes attributable to any incremental increase in taxable value
attributable to new investment, after the effective date of this Agreement, on the Leased
Premises the subject of this Agreement that are assessed for calendar years 2024, 2025,
2026, 2027, and 2028.
"Annual Sales Tax Grants" shall mean three (3) annual grants each in the amount
equal to fifty percent (50%) of the Sales Tax Receipts for each applicable Grant Period,
to be paid to the Company as set forth herein. The amount of each Annual Sales Tax
Grant shall be computed by multiplying the Sales Tax Receipts received by the City by
50% for the given Grant Period, less an administrative fee charged to the City by the State
of Texas.
"Bankruptcy or Insolvency" shall mean the dissolution or termination of a party's
existence as a going business, insolvency, appointment of a receiver for any part of such
party's property and such appointment is not terminated within ninety (90) days after such
appointment is initially made, any general assignment for the benefit of creditors, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against
such party and such proceeding is not dismissed within ninety (90) days after the filing
thereof.
"City" shall mean the City of Paris, Texas.
"Company" shall mean Audax Enterprises, LLC, a Texas limited liability
corporation.
"Consummated" shall have the same meaning assigned by Texas Tax Code,
Section 321.203 or its successor.
"Expiration Date" shall mean June 1, 2029.
"Force Majeure" shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, government or de facto government action, fires, explosions
or floods, strikes, slowdowns, or work stoppages (unless caused by the intentionally
wrongful acts or omissions of the party).
"Future Retailer" or "Future Retailers" shall mean new retail tenant or tenants which
sign leases to occupy the Leased Premises after the effective date of this Agreement.
"Grant Period" shall mean a full calendar year. The first Grant Period shall
commence on January 1, 2024 through and including December 31, 2024. Additional
Grant Periods for the Annual Property Tax Grants will be the calendar years 2025, 2026,
2027, and 2028. Additional Grant Periods for the Annual Sales Tax Grants will be the
calendar years 2025 and 2026.
"Impositions" shall mean all taxes, assessments, use and occupancy taxes,
excises, license and permit fees, and other charges, by public or governmental authority,
general and special, ordinary and extraordinary, foreseen and unforeseen, which are or
may be assessed, charged, levied, or imposed by any public or government authority on
the Company or any property or any business owned by Company within the City.
"Leased Premises" shall mean the retail spaces vacant as of the effective date of
this Agreement to be occupied by Future Retailers, as follows:
Retailer:
Space A
Space B
Space C
Space D
Space E
Space F
Space G
Space H
Salluare Footage:
9213.00
2,800.00
2,540.00
1,152.00
720.00
5,775.00
5,250.00
1,750.00
"M & O" taxes shall mean the maintenance and operations ad valorem taxes,
exclusive of debt service taxes, assessed and owing to the City by the Company on the
Property, including the Leased Premises.
"Payment Request" as it relates to an Annual Sales Tax Grant shall mean a written
request from Company to the City for payment of the applicable Annual Sales Tax Grant
for the applicable Grant Period. "Payment Request" as it relates to an Annual Property
Tax Grant shall mean a written request from the Company for the City to remit the Annual
Property Tax Grant for the applicable Grant Period. The Payment Requests for the Annual
Grants may be made concurrently and in the same document.
"Property" shall mean the entire parcel on which the Williamsburg Shopping Center
is located, comprising 80,666 square feet and described as City of Paris Block 102-A, Lot
Pt. 3, LCAD Parcel ID #15595, including vertical improvements, paved parking area, and
any unimproved land. A map of the Property with the Leased Premises indicated thereon
is attached hereto and incorporated herein by reference as Exhibit A.
"Required Use" shall mean the Future Retailers' continuous lease and occupancy
of the Leased Premises, and their continuous operation of businesses engaged in retail
sales to the public.
"Retailers" shall include both Future Retailers and retailers leasing space in the
Shopping Center as of the Effective Date.
"Sales and Use Tax" shall mean the one and one quarter percent (1.25%) sales
and use tax imposed by the City pursuant to Chapter 321, Texas Tax Code, on the sale
of Taxable Items by the Retailers Consummated in the City at the Leased Premises. Sales
and Use Tax shall not include the quarter percent (.25%) economic development sales
tax collected by City pursuant to Chapter 504 of the Texas Local Government Code.
"Sales Tax Receipts" shall mean the City's receipts from the State of Texas from
the Retailers' collection of the Sales and Use Tax (it being expressly understood that the
City's one and one quarter percent (1.25%) sales and use tax receipts are being used
only as a measurement for its participation through the use of general funds), as a result
of sale of Taxable Items by Retailers for the applicable Grant Period consummated at the
Leased Premises. Sales Tax Receipts shall not include any receipts generated by the
quarter percent (.25%) economic development sales tax collected by City pursuant to
Chapter 504 of the Texas Local Government Code.
"State of Texas" shall mean the Office of the Texas Comptroller, or its successor.
"Taxable Items" shall mean both "taxable items" and "taxable services" as those
terms are defined by Chapter 151, Texas Tax Code, as amended.
Article III—Economic Development Grants
3.1 Annual Property Tax Grants. (a) Subject to the Required Capital
Investment, Required Use, and continued satisfaction of all the terms and conditions of
this Agreement, and the obligation of the Company to repay said Annual Property Tax
Grants pursuant to Article VI hereof, the City agrees to provide five (5) Annual Property
Tax Grants of fifty percent (50%) of the M & O portion of those ad valorem taxes assessed
and payable to the City and attributable to the Leased Premises for the calendar years
2024, 2025, 2026, 2027, and 2028. Each Annual Property Tax Grant will be in the amount
equal to 18% of the total M & O taxes assessed and paid on the Property. This percentage
has been calculated by multiplying 50% by the percentage of total square footage of the
vacant vertical improvements to that of the total Property (36%).
(b) Each Annual Property Tax Grant shall be due within thirty (30) days after
receiving a Payment Request from Company for the relevant Grant Period, but in no event
before the first day of April in the years 2025, 2026, 2027, 2028, and 2029.
(c) In consideration for this ad valorem tax -based incentive, the Company has
made or caused to be made a capital investment for improvements to the Shopping
Center in an amount exceeding one million dollars ($1,000,000.00) prior to the execution
of this Agreement. Said improvements included but are not limited to replacing the roof,
resealing and restriping the parking lot and renovations of exterior of the shopping center.
Any future improvements to the Property must conform to the City of Paris' building and
fire codes and the subdivision ordinance as applicable, and the Company must meet all
permitting and platting requirements, as applicable.
3.2 Annual Sales Tax Grants. (a) Subject to the Required Use and continued
satisfaction of all the terms and conditions of this Agreement and the obligation of the
Company to repay the Annual Sales Tax Grants pursuant to Article VI hereof, the City
agrees to provide the Company with three (3) Annual Sales Tax Grants, each in an
amount equal to fifty percent (50%) of the Sales Tax Receipts attributable to the Retailers'
sales for the calendar years 2024, 2025, and 2026. Sales Tax Receipts will be determined
by the City using sales tax revenue information derived through the State of Texas as
authorized by Texas Tax Code Sec. 321.3022.
(b) Each Annual Sales Tax Grant shall be due within thirty (30) days after
receiving a Payment Request from Company for the relevant Grant Period, but in no event
before the first day of April of 2025, 2026, and 2027.
(c) Adjustment Notification. The Company shall promptly notify the City in
writing of any adjustments found, determined, or made by the Retailers, the State of
Texas, or by an audit that results, or will result, in either a refund or reallocation of Sales
Tax Receipts or the payment of Sales and Use Tax or involving amounts reported by the
Company as subject to this Agreement. Such notification shall also include the amount of
any such adjustment in Sales and Use Tax or Sales Tax Receipts. The company shall
notify the City in writing within ninety (90) days after receipt of notice of intent of the State
of Texas to audit the Company, its Affiliates and/or its customers. Such notification shall
also include the period of such audit or investigation.
(d) Adjustments. In the event any of the Retailers files an amended sales and
use tax return or report with the State of Texas, or if additional Sales and Use Tax is due
and owing by the Company to the State of Texas, as determined or approved by the State
of Texas, affecting Sales Tax Receipts for a previous Grant Period, then the Annual Sales
Tax Grant payment for the Grant Period immediately following such State of Texas
approved amendment shall be adjusted accordingly (i.e., up or down, depending on the
facts) provided the City has received Sales Tax Receipts attributed to such adjustment.
(e) Refunds and Underpayments of Grants. In the event the State of Texas
determines that the City erroneously received Sales Tax Receipts, or that the amount of
Sales and Use Tax paid to the Company exceeds (or is less than) the correct amount of
Sales and Use Tax for a previous Grant Period, for which the Company has received an
Annual Sales Tax Grant, the Company shall, within sixty (60) days after receipt of
notification thereof from the City specifying that amount by which such Annual Sales Tax
Grant exceeded the amount to which the Company was entitled pursuant to such State
of Texas determination, adjust (up or down, depending on the facts) the amount claimed
due for the Annual Sales Tax Grant for the Grant Period immediately following such State
of Texas determination. If the Company does not adjust the amount claimed due for the
Annual Sales Tax Grant payment for the Grant Period immediately following such State
of Texas determination, the City may, at its option, adjust the Annual Sales Tax for the
Grant Period immediately following the State of Texas determination. As a condition
precedent to payment of such refund, the City shall provide the Company with a copy of
such determination by the State of Texas. The provisions of this Section shall survive the
termination of this Agreement.
(f) Grant Payment Termination Sus ension, This payment of Annual Sales
Tax Grants shall terminate on the effective date of determination by the State of Texas or
other appropriate agency or court of competent jurisdiction that the Leased Premises are
not a place of business resulting in Sales and Use Taxes being due the City from the sale
of Taxable Items by Retailers at the Leased Premises. In the event the State of Texas
seeks to invalidate the Leased Premises as a place of business where Sales and Use
Tax was properly remitted to the State of Texas (the "Comptroller Challenge"), the
payment of Annual Sales Tax Grants by the City hereunder shall be suspended until such
Comptroller Challenge is resolved in whole favorably to the City. In such event, the
Company shall not be required to return or refund Annual Sales Tax Grants previously
received from the City provided the Company is actively defending against and/or
contesting the Comptroller Challenge and the Company promptly informs the City in
writing of the Company's actions and with copies of all documents and information related
thereto. In the event the Comptroller Challenge is not resolved favorably to the City and/or
in the event the State of Texas determines that the Leased Premises are not a place of
business where the Sales and Use Tax was properly remitted to the State of Texas, and
Sales and Use Tax Receipts previously paid or remitted to the City relating to the Leased
Premises are reversed and required to be repaid to the State of Texas, then the obligation
to pay the Annual Sales Tax Grants shall terminate and the Company shall refund all
Annual Grants received by the Company from the City that relate to the Comptroller
Challenge, which refund shall be paid to the City within forty-five (45) days of the date
that the Comptroller Challenge require the City to repay Sales and Use Tax Receipts.
Article IV—Limitations on Annual Grants
4.1 Current Revenue. The Annual Property Tax Grants and Annual Sales Tax
Grants made hereunder shall be paid solely from lawfully available funds that have been
appropriated by the City. Under no circumstance shall City's obligations hereunder be
deemed to create any debt within the meaning of any constitutional or statutory provision.
The Grants shall be paid solely from annual appropriations from the general funds of the
City or from such other funds of the City as may be legally set aside for such purpose
consistent with Article III, Section 52(a) of the Texas Constitution. Further, City shall not
be obligated to pay any commercial bank, lender, or similar institution for any loan or
credit agreement made by Company. None of the City's obligations under this Agreement
shall be pledged or otherwise encumbered in favor of any commercial lender and/or
similar financial institution.
4.2 Grant Limitations. Under no circumstances shall the obligations of the
City hereunder be deemed to create any debt within the meaning of any constitutional or
statutory provision; provided, however, City agrees during the term of this Agreement to
make a good faith effort to appropriate funds each year to pay the Grants for the then
ensuing fiscal year. Further, the City shall not be obligated to any commercial bank,
lender, or similar institution for any loan or credit agreement made by the Company. None
of the City's obligations under this Agreement shall be pledged or otherwise encumbered
in favor of any commercial lender and/or similar financial institution.
4.3 Indemnification. The Company agrees to defend, indemnify and hold
the City, its respective officers, agents, and employees (collectively, the "City")
harmless from and against any and all reasonable liabilities, damages, claims,
lawsuits, judgments, attorney fees, costs, expenses, and any cause of action that
directly relates to any of the following: any claims or demands by the State of Texas
that the City has been erroneously or over -paid Sales and Use Tax for any period
during the term of this Agreement as the result of the failure of the Company to
maintain a place of business at the Property or in the City, or as a result of any act
or omission or breach or non-performance by the Company under this Agreement
except that the indemnity provided herein shall not apply to any liability resulting
from the actions or omissions of the City. The provisions of this section are solely
for the benefit of the parties hereto and not intended to create or grant any rights,
contractual or otherwise, to any other person or entity, it being the intention of the
parties that the Company shall be responsible for the repayment of any Grants paid
to the Company herein that include sales and use tax receipts that the State of
Texas has determined were erroneously paid, distributed, or allocated to the City.
Article V—Conditions to Annual Grants
The City's obligation to pay the Annual Grants shall be conditioned upon the
compliance and satisfaction by the Company of the terms and conditions of this
Agreement and each of the conditions set forth in this Article V.
5.1 Payment Request. The Company shall, as a condition precedent to the
payment of each Annual Grant, provide the City with the applicable payment request.
5.2 Good Standing. The Company shall not have an uncured breach or default
of this Agreement.
5.3 Required Use. During the period beginning on the Effective Date and
continuing until the Expiration Date, the Leased Premises shall not be used for any
purpose other than the Required Use, and the operation of the Leased Premises in
conformance with the Required Use shall not cease for more than thirty (30) continuous
days except in connection with and to the extent of any event of Force Majeure.
5.4 Continuous Lease and Occupancy. The Company shall, beginning no later
than eighteen (18) months after the Effective Date and continuing thereafter until the
Expiration Date, continuously lease and cause to be occupied each of the retail spaces
comprising the Leased Premises from the time the initial lease is signed. From the
Effective Date and continuing thereafter until the Expiration Date, the Company shall
continuously lease and cause to be occupied all retail spaces occupied as of the Effective
Date. Each of the Future Retailers shall be open for business to the public for the
purposes of selling Taxable Items not later than six months after the lease is signed. The
Company shall provide written notice to the City of the execution of each new lease, and
shall further provide written notice to the City when the New Retailer is open for business.
Company shall also notify the City if any current or Future Retailer's lease is terminated
within that same time period. All notices required by this Section 5.4 shall be received by
the City within 14 days of the event giving rise to the notice.
Article VI—Termination; Repayment
6.1 Termination. This Agreement shall terminate upon any one of the following:
(a) by written agreement of the parties;
(b) Expiration Date;
(c) by either party in the event the other party breaches any terms or conditions of
this Agreement and such breach is not cured within thirty (30) days after written
notice thereof;
(d) by City, if Company suffers an Event of Bankruptcy or Insolvency;
(e) by City, if any Impositions owed to the City or the State of Texas by Company
or any of the Retailers shall become delinquent (provided, however, that the
Company retains the right to timely and properly protest and contest any such
Impositions); or
(f) by either party, if any subsequent Federal or State legislation or any decision
of a court of competent jurisdiction declares or renders this Agreement invalid,
illegal, or unenforceable.
6.2 Repayment. In the event the Agreement is terminated by the City at any time
during the Grant Periods pursuant to Section 6.1(c) (following an uncured breach by the
Company), (d), (e), or (f) (provided such legislation or decision requires repayment of the
Annual Grants), the Company shall immediately repay to the City an amount equal to the
Annual Grants previously paid by the City to the Company as of the date of such
termination, plus interest at the rate periodically announced by the Wall Street Journal as
the prime or base commercial lending rate, or if the Wall Street Journal shall ever cease
to exist or cease to announce a prime or base lending rate, then at the annual rate of
interest from time to time announced by Citibank, N.A. (or by any other New York money
center bank selected by the City) as its prime or base commercial lending rate, which
shall accrue from the date of the first payment of the Annual Grants during such period
until paid.
6.3 Right of Offset. The City may, at its option, offset any amounts due and
payable under this Agreement against any debt (including taxes) lawfully due to the City
from the Company, regardless of whether the amount due arises pursuant to the terms
of this Agreement or otherwise and regardless of whether or not the debt due the City has
been reduced to judgment by a court.
Article VII—Miscellaneous
7.1 Binding Agreement. The terms and conditions of this Agreement are binding
upon the successors and assigns of the parties hereto. This Agreement may not be
assigned without the express written permission of the City.
7.2 Limitation on Liability. It is understood and agreed between the parties that
the Company, in satisfying the conditions of this Agreement, has acted independently,
and the City assumes on responsibilities or liabilities to third parties, including but not
limited to the Retailers, in connection with these actions. The Company agrees to
indemnify and hold harmless the City from all such claims, suits, and causes of
action, liabilities, and expenses of any nature whatsoever by a third party arising
out of the Company's failure to perform its obligations under this Agreement.
7.3 No Joint Venture. It is acknowledged and agreed by the parties that the terms
hereof are not intended to and shall not be deemed to create a partnership or joint venture
among the parties.
7.4 Authorization. Each party represents that it has full capacity and authority to
grant all rights and assume all obligations that are granted and assumed under this
Agreement.
7.5 Notice. All notices and communications under this Agreement to be mailed to
City shall be sent to the address of City's agent as follows, unless and until the Company
is otherwise notified:
City Manager
City of Paris
Post Office Box 9037
Paris, Texas 75461
With a copy to:
City Attorney
City of Paris
Post Office Box 9037
Paris, Texas 75461
Notices and communications to be mailed or delivered to CONSULTANT shall be
sent to the address of CONSULTANT as follows, unless and until CITY is otherwise
notified:
Saleem Rajani, manager
Audax Enterprises, LLC
515 W. Main St. Ste. 104
Allen, Texas 75013
Any notices and communications required to be given in writing by one party to the
other shall be considered as having been given to the addressee on the date the notice
or communication is posted, faxed or personally delivered by the sending party.
7.6 Entire Agreement. This Agreement is the entire Agreement between the
parties with respect to the subject matter covered herein. There is no other collateral oral
or written Agreement between the parties that in any manner relates to the subject matter
of this Agreement, except as provided in any Exhibits attached hereto.
7.7 Governing Law. The Agreement shall be governed by the laws of the State
of Texas without regard to any conflict of law rules. Exclusive venue for any action
concerning this Agreement shall be in a court of competent jurisdiction in Lamar County,
Texas. The parties agree to submit to the personal and subject matter jurisdiction of said
court.
7.8 Amendment. The Agreement may only be amended by the mutual written
agreement of the parties.
7.9 Legal Construction. In the event that any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect
other provisions, and it is the intention of the parties to this Agreement that in lieu of each
provision that is found to be illegal, invalid, or unenforceable, a provision shall be added
to this Agreement which is legal, valid, and enforceable and is as similar in terms as
possible to the provision found to be illegal, invalid, or unenforceable.
7.10 Recitals. The recitals to this Agreement are incorporated herein.
7.11 Counterparts. This Agreement may be executed in counterparts. Each of
the counterparts shall be deemed an original instrument, but all of the counterparts shall
constitute one and the same instrument.
7.12 Survival of Covenants. Any of the representations, warranties, covenants,
and obligations of the parties, as well as any rights and benefits of the parties, pertaining
to a period of time following the termination of this Agreement shall survive termination.
7.13 Employment of Undocumented Workers. During the term of this
Agreement the Company agrees not to knowingly employ any undocumented workers,
and if convicted of a violation under 8 U.S.C. Section 1324a(f), the Company shall repay
the amount of the Annual Grants and any other funds received by the Company from the
City as of the date of such violation within 120 business days after the date the Company
is notified by the City of such violation, plus interest at the rate of 6% compounded
annually from the date of violation until paid. The Company is not liable for a violation of
this section in relation to any workers employed by a subsidiary, affiliate, or franchisee of
the Company or by a person with whom the Company contracts, including but not limited
to the Retailers.
--Signature Page to Follow--
ATTEST:
Janice Ellis
City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris
City Attorney
CITY OF PARIS
By -
Mihir Pankaj
Mayor
Date Signed:
AUDAX ENTERPRISES, LLC
By: Saleem Rajani
Saleem Rajani, manager
Date Signed:
THE STATE OF TEXAS §
COUNTY OF LAMAR §
BEFORE ME, the undersigned authority, in and for said County, Texas, on this day
personally appeared Mihir Pankaj, Mayor of the CITY OF PARIS, a Texas municipal
corporation, known to me to be the person who's name is subscribed to the foregoing
instrument, and acknowledged to me that he has executed the same on the City's behalf.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE
DAY OF 2024..
Notary Public Lamar County, Texas
My commission expires
THE STATE OF TEXAS §
COUNTY OF §
This instrument was acknowledged before me on the day of
2024, by Saleem Rajani, Manager of Audax Enterprises, LLC, a Texas limited liability
corporation, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged that he executed the same on behalf of and as the act of
Alpha Lake, Ltd.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE
DAY OF , 2024.
Notary Public County, Texas
My commission expires
Exhibit A
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Exhibit A
Item No. 15
TO: Mayor, Mayor Pro Tem, and City Council Members
Robert G. Vine, Interim City Manager
FROM: Osei Amo-Mensah, Director of Planning and Community Development
SUBJECT: Resolution Revising Guidelines and Criteria for the 5 in 5 Housing Infill Development
Program.
DATE: January 13, 2025
BACKGROUND: City Council adopted the 5 in 5 Housing Infill Development Program
(Program) in January of 2022 with the aim of incentivizing the redevelopment of neighborhoods
in the City's core, and that area is designated as the Program Area. Among the incentives available
is the conveyance of properties which the City holds as Trustee for the other taxing entities when
the properties have been acquired for back taxes. Said conveyances are for $1.00 per Trustee
parcel. The Program has guidelines and criteria (Guidelines) that determine eligibility for
participation. Later in 2022, Council amended the Guidelines to allow the City to enter into
agreements relating to properties that are directly contiguous to the Program Area.
Council authorized a third -party housing assessment in 2024 to determine the actual housing needs
in the City and to inform future planning. Council declared a moratorium of the Program so that
the consultants could complete the assessment and staff could review the results and revise the
Guidelines if necessary to achieve the goals set out in the consultants' final report. On August 26,
2024, Council adopted revised Guidelines that in some respects made the Program more flexible,
but also made any developer with an existing and active agreement ineligible for a new agreement
unless at least 80% of the construction under the original agreement is complete. The aim of this
limitation is to keep the City's inventory of Trustee properties available and to keep any single
developer from tying up Trustee properties that it may not ever develop.
STATUS OF ISSUE: The 80% requirement as written applies to any developer whether the active
agreement provides for the conveyance of Trustee properties or not. In practice, most of the
Agreements approved under the program have involved properties which have previously been
acquired by the applicant. In those instances, the City is only providing incentives—tax
abatements, reduced fees, etc.—when construction is either completed or imminent. Making such
an applicant ineligible for a new agreement does not advance either the goal of promoting
redevelopment or the goal of maintaining the City's inventory of Trustee properties. Consequently,
staff has proposed a revision to the Guidelines which will apply the 80% construction requirement
only to developers with existing agreements pursuant to which the City conveyed Trustee
properties. Likewise, for the same reasons the proposed revisions dispense with the requirement
of proof of financial ability when the applicant is building on their previously owned property and
is not seeking a conveyance of land from the City. This will allow applicants with multiple
developments involving their own previously -owned properties to enter into additional agreements
regardless of the completion rate of the improvements required under their existing active
agreements.
The proposed revisions also clarify language in the 2024 amendments which have cause confusion
among applicants.
I've attached hereto a redline version of the proposed amendments. The copy attached as Exhibit
A to the proposed resolution is a clean copy.
BUDGET: N/A
RECOMMENDATION: Approve a resolution adopting proposed revisions to the Guidelines and
Criteria for the 5 in 5 Housing Infill Redevelopment Program.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS AMENDING THE GUIDELINES AND CRITERIA OF THE 5 IN
5 HOUSING INFILL DEVELOPMENT PROGRAM; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, on February 10, 2020, the City Council of the City of Paris, Texas 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 passed
Resolution No. 2022-003 stating its intent to establish the 5 in 5 Housing Infill Development
Program (hereinafter "the Program"), including such incentives as low cost land sales and
residential tax abatements, and adopting guidelines and criteria ("Guidelines") for the
Program; and
WHEREAS, in Resolution No. 2022-003, City Council designated an area within
Reinvestment Zone 2020-1 (the "Program Area") as being eligible for the Program; and
WHEREAS, on July 25, 2022, the City Council approved Resolution No. 2022-055
expanding the Program to allow properties immediately adjacent to the Program Area to
be eligible to participate; and
WHEREAS, on August 28, 2023, Council approved an agreement with Catalyst
Commercial, Inc. for a Housing Assessment to determine particular housing needs in the
city; and
WHEREAS, following a 150 day moratorium of the Program designed to allow the
City to receive the results of the Housing Assessment and to revise the Program Guidelines
accordingly, the City Council adopted revised Guidelines on August 26, 2024 via Resolution
No. 2024-038; and
WHEREAS, the revised Guidelines, while providing more flexibility in the Program,
also contain limitations designed to prohibit the City from conveying City Trustee
properties to any particular developer seeking a second Program agreement if said
developer has an existing and active Program agreement under which the City has
conveyed Trustee properties if the majority of the properties in the existing agreement
remain undeveloped; and
WHEREAS, as written, said limitation also applies to a developer whose existing
active agreements relate to properties that were already privately owned and do not
involve the conveyance of Trustee properties; and
WHEREAS, the limitation as applied to agreements under which no Trustee
properties were conveyed does not further the goal of limiting the number of Trustee
properties in the hands of single developers at any given time; and
WHEREAS, the overriding goal of the Program is to redevelop housing in the
Program Area regardless of whether properties therein are Trustee Properties or are
already privately owned; and
WHEREAS, City Staff has proposed revisions to the Guidelines to address this issue
and to clarify existing language therein; and
WHEREAS, City Council has reviewed the proposed revised Guidelines for the
Program and finds said revisions to be in the best interest of the city and its residents;
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 amends the guidelines and criteria of the 5 in 5
Residential Infill Development Program in conformance with Exhibit A, attached hereto
and incorporated herein by reference.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 13th day of January, 2025.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, Deputy City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Exhibit A
PL -INFO -0007 (rev 01/25)
5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM GUIDELINES,
CRITERIA & APPLICATION FORM CITY OF PARIS, TEXAS
Revised January 13 2025
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 infrastructure 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 depending on the type of housing to be
constructed (see Section IV herein):
1. The City will provide low cost residential lots in the Program Area in tax foreclosure city receivership
to Applicants for the construction of single-family homes. This incentive is available only for the
construction of single-family homes. If an Applicant obtains properties through other traditional
means within the Program Area, other incentives within this policy may apply.
2. The City will offer three (3) to five (5) year residential tax abatements of City property taxes
attributable to constructed improvements depending on housing type and as reflected in Section IV
herein.
3. The City will offer reduced rates on building plan review and permit fees as reflected in Section IV
herein.
4. The City will offer reduced rates on labor charges on water and sewer tap fees as reflected in Section
IV herein.
The city staff will work with Applicants interested in building single-family homes to identify parcels from
a pool of tax sale lots in trustee status to develop a list of properties that will be suitable for such
construction. Prior to any construction occurring from which the Applicant is seeking incentives, the
Applicant will enter into an Agreement to be approved by the City Council for the new construction of
residential 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 or unless the
City and Applicant agree to a shorter period of time, which deviation shall be reflected in the Agreement.
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, and the City will not maintain a wait list.
There will be no income guidelines under this program for occupants of the dwelling units, whether owner
Page 1 of 7
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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.
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 Infill 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. An Active Agreement is an Agreement under which the Applicant has not yet completed all the
improvements required therein.
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 and Immediately Adjacent thereto,
whether foreclosed on due to taxes or not. Also, property located outside the Program Area if foreclosed
on due to taxes.
Immediately Adjacent Property — Property which lies immediately next to the boundary of the Program
Area, including property across a street or intersection or located diagonally therefrom.
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 Infill
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.
III. 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
Page 2 of 7
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PL -INFO -0007 (rev 01/25)
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.
Minimum Investment To be eligible for residential tax abatement, an Applicant must construct a new
structure or structures on the property parcel(s) identified in an Agreement between the applicant and
the City.
Limitations:
1. Maximum of 10 dwelling units per agreement.
2. An Applicant with whom the city has entered into an Active Agreement pursuant to which the City
has conveyed a low-cost residential lot or lots shall not be eligible to apply for an additional
Agreement involving such a conveyance until at least 80% of all structures required under the Active
Agreement have been constructed and the City has issued certificates of completion for same. This
80% completion requirement does not apply to Applicants with Active Agreements that do not
provide for the City to convey land. If an Active Agreement applies to a mix of privately owned
property and the conveyance of trustee parcels, the Applicant must have completed construction on
at least 80% of the conveyed parcels to be eligible for a new agreement.
3. Pre -Approved building plans may be accepted.
4. No zoning change unless there is a substantial change in neighborhood or compatible with the future
land use map.
Page 3 of 7
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Incentive Table
IncentivesSingle-Family
Duplex
Multi -Family
Low -Cost
%/
X
X
Residential Lots
ax Abatement
V5 -year at 100%
3 -year at 100%
3 -Year Decreasing
Year 1: 100%
ear 2: 75%
50%Reduced
Building
..............
x/100%100%
_-
for sprinkled
rear:
Plan Review
building
-OR-
° sprinkled
50% non - sprinkled
building
Reduced Permit
V100%
100% for sprinkled
V25%
Fees
building
OR -
50% non -sprinkled
building
Reduced rates on
__"
**/25%25%
V25%
Water/Sewer tap
fees (labor only)
Low -Cost Sale of Foreclosed Properties _As part of their agreement, an Applicant may choose to purchase
eligible properties that are in a state of tax foreclosure. These properties are available on a strictly first
come, first serve basis and the City makes no warranty on having available properties for this incentive,
nor will it maintain any type of waiting list for available properties. 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. As noted herein, the City will
onl convesuch ro erties for the construction of sin le-famil homes.
Tax Abatement --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 tax abatement on each parcel
on which a dwelling unit or units are constructed and completed in accordance with the foregoing table.
The abatement will become effective on January 1st of the year following issuance of a Certificate of
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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 1st 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 Permitting -The Applicant will be entitled to reduced rates for
building plan review and permit fees as referenced in the Incentive Table.
Reduced Fees for Water & Sewer Tap LaIROF— The Applicant will be entitled to reduced rates for water
and sewer tap laborfees, where required by the Public Works Department, s as referenced in the Incentive
Table for all new dwelling units under agreement with the City.
Claw Back Provision - The Applicant who enters into an Agreement with the City of Paris shall construct
new housing dwelling units on one (1) or more parcels within five (5) years from the effective date of the
Agreement, or a within a shorter time if agreed to by the parties and reflected in 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 underthis 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 constructing the agreed upon new
dwelling -units within the required period will result in a reversion of all parcels upon which Residential
Improvements have not been constructed and completed to the City and will result in the Applicant 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.
Compliance with all other City Requirements - 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.
V. APPLICATION PROCEDURES
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Applications for an Agreement with the City shall be reviewed for completeness. Incomplete Applications
shall not be processed. 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 City Trustee or other parcels within the
defined geographic area. City Staff will provide a list and corresponding map from which City
Trustee parcels may be reviewed.
B. For applications seeking the conveyance of one or more low-cost Trustee parcels, the
Applicant shall attach a notarized verified pre -approval letter or other notarized verification
from Applicant's financial institution stating that the Applicant will have financial capital
available to complete all new dwelling unit construction under the Agreement with the City.
Such verification of financial capability shall be on the letterhead of the financial institution
and will be reviewed over the course of the Agreement. Applications subject to this subsection
B submitted while the Applicant already has an Active Agreement in place, regardless of
whether the Active Agreement involves the conveyance of low-cost Trustee properties, shall
include verification that Applicant has the financial ability to complete the construction
required under both the Active Agreement and the proposed new Agreement.
C. 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 deed without warranty by the City of Paris.
D. 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 dwelling(s) to be constructed are to be retained for
ownership or sold to another owner upon completion of construction. The applicant shall also provide
an estimate of the value of improvements..
4. If an application for the 5 In 5 Housing Infill Development Agreement is to be recommended for
approval by staff, then an Agreement as defined herein with the City of Paris will be prepared by the
City Attorney for approval by the City Council.
5. If the Applicant's property is not found to be eligible, the application will be rejected.
6. The City Council reserves the right to amend these policies and guidelines as needed.
VI. 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.
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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 the new
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.
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