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, April 13, 2026. The meeting will be held at the City Council
Chamber, 107 E. Kaufinan Street, in Paris, Texas. One or all Council Members may be
attending remotely, but the feed will be available for live viewing at
I%P�wffi a1iSiL aS,gqVj/b1ic. The matters to be discussed and acted upon areas 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, and remarks must be limited to matters of city business. Speakers will not be
allowed to cede speaking time to others. 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, including
but not limited to claims in pending litigation, 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 March 20, 2026, March 23, 2026, and March 27,
2026.
6. Receive reports and/or minutes from the following boards and commissions:
a. Building & Standards Commission (1-20-2026 & 2-16-2026)
b. Paris Economic Development Corporation (2-24-2026)
c. Paris -Lamar County Board of Health (12-13-2025)
7. Receive March ditch maintenance report.
Regular Agenda
8. Discuss and act on a Resolution approving a residential tax abatement and economic
development agreement with Confia Homes, LLC as a part of the 5 in 5 Housing Infill
Redevelopment Program for property located at 1165 N.W. 16th St., 646 E. Polk St., 1367
W. Houston St., 1736 E. Cherry St., and 1230 Johnson St.
9. Discuss and act on a Resolution authorizing the City Manager to execute a Recorded Texas
Historic Landmark: Property Owner Authorization in support of an Application for Lake
Crook Historic Landmark Designation.
10. Receive presentation of the 2025 Audit and discuss.
11. Receive presentation from Building Official Duke McGee about the building department.
12. Discuss an Ordinance for donation boxes and provide direction to Staff.
13. Discuss and act on cancelling or rescheduling of the May 25, 2026, City Council meeting.
14. Consider and approve future events for City Council and/or City Staff pursuant to
Resolution No. 2004-081.
15. 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 5:00 p.m. on April 7,
2026.
Janice Ellis, City Clerk
S aecial 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 CITY COUNCIL WORKSHOP
OF THE CITY OF PARIS, TEXAS
March 20, 2026
The City Council of the City of Paris met for a special meeting at 3:30 p.m. on Friday,
March 20, 2026, at the City Council Chamber, 107 Kaufrnan Street, Paris, Texas.
Present: Mayor Pro -Tem: Gary Savage
Council Members: Rebecca Norment, Alix Putnam & Tracy Attebury
City Staff: Rose Beverly, City Manager; Janice Ellis, City
Clerk; M.A. Smith, Chief Operating Officer; and
Osai Amo-Mensah, City Planner; & Duke McGee,
Building Official
Absent: Mayor: Mihir Pankaj
Council Members: Shatara Moore & Mickey Ellis
The matters to be discussed are:
Call meeting to order.
Mayor Pro -Tem Savage called the meeting to order at 3:35 p.m.
Council Member Norment said she had to leave shortly and asked if the item about
donation boxes could be discussed first. Mayor Pro -Tem Savage moved item 3 up.
3. Discuss an ordinance for donation boxes.
City Manager Rose Beverly said in absence of City Attorney Stephanie Harris, she would
try to answer their questions, but she was not an attorney. Ms. Beverly explained that the City
of Arlington adopted an ordinance dealing with these donation boxes, they were challenged, the
case went up to a higher Court, and the Court upheld the City's ordinance. She said if they
wanted to review the ordinance and permitting requirements, it could be placed on the first
meeting in April.
Council Member Norment said these boxes were showing up everywhere without
permission and were not from the Paris area. Building Official Duke McGee said they could
prohibit placement of boxes on public property and could regulate those placed on private
property. It was a consensus to place this item on the agenda at the first meeting in April.
2. Discuss code adoption of building regulations and fee structures.
Building Official Duke McGee depicted a slide show explaining why building codes
mattered and stated the primary reason was safety. He provided a draft of the proposed local
amendments to the building codes which included deletion of some fees, addition of other fees
Workshop Meeting
March 20, 2026
Page 2
and increases to some of the current fees. Mr. McGee touched on a property management code
and said he would like to see it adopted. He also said this would not affect single family
homeowners but would require rental property to be brought up to the minimum standards.
McGee answered questions from City Council.
4. Adjournment.
There being no further business, Mayor Pro -Tem Savage adjourned the meeting at 4:49
p.m.
GARY SAVAGE, MAYOR PRO -TEM
JANICE ELLIS, CITY CLERK
MINUTES OF THE REGULAR CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
March 23, 2026
The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday,
March 23, 2026, at the City Council Chamber, 107 E. Kaufman, Paris, Texas.
Present: Mayor: Mihir Pankaj
Mayor Pro -Tem: Gary Savage
Council Members: Rebecca Nonnent and Tracy Attebury
City Staff: Rose Beverly, City Manager; Stephanie Harris,
City Attorney; Skylar Unger, Deputy City Clerk;
Steve Marriott, Finance Director; Rich Salter,
Police Chief; M.A. Smith, Chief Operating
Officer; Danny Rowell, Director of Utilities, Celso
Arietta, IT Manager; and Steve Hodges,
Engineering Department Manager
Absent: Council Member: Shatara Moore, Mickey Ellis & Alix Putnam
Ocnin A ►coda
1. Call meeting to order.
Mayor Pankaj called the meeting to order at 5:30 p.m.
2. Invocation.
Mayor Pro -Tem Savage 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.
Carolyn Williams — she said there use to be auction of lots but now there were private
sales going on before or after auctions, and she wanted to get a lot.
Nathan Spaulding, Lone Star Development/Forestbrook — he expressed his appreciation
to Council for consideration of item 20. He explained they were not late on the fees and had
started a new way to deposit the fees so this should never happen again. Mr. Spaulding said they
really wanted to keep the project going.
Regular Council Meeting
March 23, 2026
Page 2
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
made by Council Member Norment and seconded by Mayor Pro -Tem Savage. Motion carried,
4 ayes — 0 nays.
Approve minutes from the meeting of March 9, 2026.
6. Receive reports and/or minutes from the following boards and commissions:
a. Planning & Zoning Commission (2-4-2026)
b. Main Street Advisory Board (2-10-2026)
c. Historic Preservation Commission (2-23-2026)
7. Receive the February 2026 monthly financial report.
Receive February drainage report.
9. Approve the Final Plat of the Kraft Addition, Lots 1 & 2, Block 1, LCAD 21148, located
in the 4200 Block of Clarksville Street,
10. Award the 2026 annual grounds maintenance bid and authorize a contract to Green's
Lawn Service in the amount of $99,970.00, for grounds maintenance for twenty-four City
of Paris properties.
11. Approve RESOLUTION NO. 2026-013: A Resolution authorizing the execution of an
Agreement with the Texas Department of Transportation (TxDOT) for the temporary
closure of State right-of-way in support of the 2026 Paris Art Festival.
Re Mlar Agenda
12. Convene into executive session pursuant to Section 551.071 of the Texas Government
Code, Consultation with Attorney, to receive legal advice 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: City of Paris v. CTRA Property Holdings,
L.L.C.
Mayor Pankaj convened City Council into executive session at 5:37 p.m.
13. Reconvene into open session and possibly take action on those matters discussed in
executive session.
Mayor Pankaj reconvened City Council into open session at 6:06 p.m.
Regular Council Meeting
March 23, 2026
Page 3
14. Presentation by SAMCO Capital Markets, the City's Financial Advisor, regarding
financing options to fund the roof replacement and a fire truck, authorizing City Staff
and Consultants to proceed with the plan, and other matters related hereto.
City Manager Rose Beverly asked Police Chief Rich Salter and Fire Chief Thomas
MeMonigle to speak about the need of these two items. Chief Salter said the police department
roof had been leaking for years, even upon his arrival five years ago. He expressed concern
about the leaks in six different locations at the police department. Chief MeMonigle said they
were behind on replacement of apparatus and the longer they wait the more it costs. He also said
to get a rescue truck delivered it was a four year turn around.
SAMCO representative Jack McLiney explained the issuance the process of tax notes for
paying for these two items and went on to say if Council wished to proceed an item would be
brought back to them at their first meeting in April.
A Motion to proceed was made by Council Member Attebury and seconded by Council
Member Norment. Motion carried, 4 ayes — 0 nays.
15. Discuss, conduct a public hearing and act on ORDINANCE NO, 2026-004: An
ordinance amending a zoning change from an agricultural district to a commercial district
with a specific use permit for trailer rental or sales on LCAD No. 58969, City of Paris
Block 307-B, Lot 5, located at 2705 N. Main Street.
Planning Director Osci Amo-Mensah said the applicant was seeking a zoning change on
a quarter of the lot to the northwest corner where there was an existing building occupied by
Rhino's Ammo. He also said the rest of the lot was vacant and proposed to be used as a trailer
rental or sales to the existing business. Mr. Amo-Mensah explained this would only be allowed
with a specific use pen -nit.
Mayor Pankaj opened the public hearing and asked foranyonewishing to speak about
this item, to please come forward. With no one speaking, Mayor Pankaj closed the public
hearing.
A Motion to approve this item was made by Mayor Pro -Tem Savage and seconded by
Council Member Attebury. Motion carried, 4 ayes — 0 nays.
16. Discuss, conduct a public hearing and act on ORDINANCE NO. 2026-005: An
ordinance approving and adopting amendments to the comprehensive plan and future
land use map for the City of Paris from low density residential to retail on part of LCAD
No. 18277, City of Paris, Block 259, Lot PT of 14, located at N. Collegiate Drive and
Pine Mill Road.
Mr. Arno-Mensah said this was heard by City Council on August 25, 2025, and because
of the opposition, a workshop was conducted to gain clarity and more information. Mr. Amo-
Mensah reported that applicant Paul Stoll met with the concerned residents and concerns were
addressed. I
Regular Council Meeting
March 23, 2026
Page 4
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak about
this item, to please come forward. Wanda Stephens, said the original map was incorrect which
caused much of the confusion and once the residents learned they were fighting against
something that never was supposed to be, they no longer opposed this change. With no one else
speaking, Mayor Pankaj closed the public hearing.
A Motion to approve this item was made by Mayor Pro -Tem Savage and seconded by
Council Member Attebury. Motion carried, 4 ayes — 0 nays.
17. Discuss, conduct a public hearing and act on ORDINANCE NO. 2026-006: An
Ordinance amending a zoning change from a one family dwelling district no. 2 to a
commercial district for the following property comprising of 5.97 acres, Paris Block 259,
lot PT of 14, LCAD No. 18277, located at N. Collegiate Drive and Pine Mill Road.
Mr. Amo-Mensah explained this item was part of the previous item.
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak about
this item, 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 Attebuiy and seconded by
Council Member Norment. Motion carried, 4 ayes — 0 nays.
18. Discuss, conduct a public hearing and act on ORDINANCE NO. 2026-007: An
ordinance amending the zoning from planned development to a commercial district on
the following property: Paris Towne Crossing Addition Block 1, Lot 6B, LCAD No.
121806 (8.12 acres), located on N. Collegiate Drive and Pine Mill Road.
Mr. Amo-Mensah explained this item was part of the two previous items.
Mayor Pankaj opened the public hearing and asked for anyone wishing to speak about
this item, 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 Attebury.and seconded by
Council Member Savage. Motion carried, 4 ayes — 0 nays.
19. Receive presentation from Chief Salter about the Paris Police Department.
Chief Rich Salter introduced Captains Thompson, Bender and Bull, as well as Assistant
Chief Tuttle. He reviewed the department's table of organization, administration, the patrol
division, criminal investigations division, services division, community outreach, and citizens
on patrol. Chief Salter said the department was down eight officers but a big improvement from
two years ago, when the department was down twenty-one officers.
March 23, 2026
Page 5
20. Discuss and possibly act on waiving late fees and penalties associated with payment of
the first assessment on property within Forestbrook Public Improvement District No. 1.
City Attorney Stephanie Harris took the Council through the creation of the PID through
today. She explained that the owner failed to make the PID assessment payment in a timely
manner and there had been some question as to delivery of the notice. She said the contractor
maintained that it was mailed out the notice to owner as required and owner asserts that never
received the notice, resulting in the missed deadline. Ms. Harris said when the owner learned of'
this, he paid the assessment payment in (lie amount of $35,000.00. She also said the penalties
andinterest in the amount of $13,585.17 accrued during the period ('(.)r which payment was late.
A Motion to waive the penalties and interest related to the first assessment for
Forestbrook Public Improvernent. District No. I was made by Mayor Pro -Tem Savage and
seconded by Council Member Norinent. Motion carried, 4 ayes — 0 nays.
21. Consider and approve future events for City Council and/or City Staff pursuant to
Resolution No. 2004-081.
None were referenced
22. Adjournment.
There being no further business, a Motion to adjourn was made by Mayor Pro -Tern
Savage and seconded by Council Member Norment. Motion carried, 4 ayes - 0 nays. Mayor
Pankaj adjourned the meeting at 6:55 p.m.
MIHIR PANKAJ, MAYOR
JANICE ELLIS, CITY CLERK
MINUTES OF THE CITY COUNCIL WORKSHOP
OF THE CITY OF PARIS, TEXAS
March 27, 2026
The City Council of the City of Paris met for a special meeting at 3:00 p.m. on Friday,
March 27, 2026, at the City Council Chamber, 107 Kaufman Street, Paris, Texas.
Present: Mayor: Mihir Pankaj
Mayor Pro -Tem: Gary Savage
Council Members: Alix Putnam & Tracy Attebury
City Staff: Rose Beverly, City Manager; Janice Ellis, City
Clerk; M.A. Smith, Chief Operating Officer; and
Stephanie Harris, City Attorney; and Steve
Marriott, Finance Director
Absent: Council Members: Rebecca Norment, Shatara Moore & Mickey Ellis
The matters to be discussed are:
Call meeting to order.
Mayor Pankaj called the meeting to order at 3:07 p.m.
2. Discuss budget and tax rate planning.
City Manager Rose Beverly depicted a market and taxable values chart that reflected
years 2016-2025. Consultant Shane Howard took the Council through the history and
background of how the City got to this point. He referenced the taxable value growth less tax
abatements, review of the M & O Growth and stated the City was well below the market value
growth. Mr. Howard said that industry inside the city limits must increase, and there had been a
decade of under investments. He emphasized to get growth inside the city limits; it would take
a city-wide effort. He brought up the fact that the debt service had nearly doubled since 2016
and a good part of that was driven by the new wastewater plant which was needed. He reported
that the tax rate in Paris needed to be corrected, and that only Mt. Pleasant and Greenville had
tax rates lower than Paris. He explained that the City was paying for past decisions. Mr. Howard
said that the County takes in $383,000.00 more than the City and the County has access to all
City services but does not pay for these services. Mr. Howard emphasized development inside
the City limits.
Next, Mr. Howard spoke about the different phases, Phase I being context setting, Phase
II being the Plan, and Phase III the Reinforcement. He reiterated that the tax rate needed to be
corrected through an election, and the last day a November election could be called was August
24`". Ms. Harris reminded everyone that using public funds for advertising to vote for or against
a measure was prohibited by State Law. She said City Council Members could campaign
because they did not receive payment from the City for their services.
March 27, 2026
Page 2
Adjournment.
There being no further business, Mayor Pankaj adjourned the meeting at 4:39 p.m.
JANICE ELLIS, CITY CLERK
Item No. 6
MINUTES OF THE BUILDING AND STANDARDS COMMISSION MEETING
OF THE CITY OF PARIS, TEXAS
January 20th, 2026
The Building and Standards Commission of the City of Paris met for a regular session at 3:00 p.m.
on Tuesday, January 20th, 2026, at the City of Paris Council Chambers, 107 E. Kaufman St., Paris,
TX 75460.
Present: Board Members:
Jesse Wallace Jr
Kim Walker
Morgan Cline
Angie Briscoe
Absent: A.W. "Plug" Clem
Alexander Moore
City Representatives: Nicki Brown — Senior Code Enforcement Officer
Jacie Brown — Code Enforcement
Melissa Shaffer — Code Enforcement
Michael Smith — Chief Operating Officer/Public
Works Director
Stephanie Harris — City Attorney
Cade Oats — Interim Fire Marshal
Cheri Bedford — Main Street Coordinator
Rose Beverly — City Manager
Jon McFadden @ 3:10 p.m. — Public Information
Officer
Call meeting to order.
Kim Walker, called the meeting to order at 3:00 p.m.
2. Approve minutes from the meeting of September 15, 2025.
A Motion was made by Kim Walker to approve minutes, seconded by Angie
Briscoe. Motion carried unanimously. 4-0
3. Public Hearing to consider presentations by City of Paris Code Inspectors and owner(s)
and/or lien holder(s) of the below properties who have been given notice of a violation of
Chapter 4, Article 4.03 entitled "Substandard and Dangerous Buildings and Structures;"
Chapter 7, Article 7.04 entitled "Weeds, Junk, and Other Objectionable, Unsightly, or
Building and Standards Meeting
January 20, 2026
Page 2
Unsanitary Matter on Private Premises;" Chapter 8, Article 8.10 entitled "Outdoor
Storage;" Code of Ordinances of the City of Paris, Paris, TX.
A. 201 Bonham & 204 Grand; City Block 22, Lot 3
Owner: WILLIAMSON COUNTY INV CORP; 8004 Two Coved Dr., Austin,
TX 78730-3120
Nicki Brown stated the structure has multiple broken windows and plywood
missing on the north side that people are climbing through to get inside the
building.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, secure structure within 30 days, or the city has the right to do so.
Motion made by Jesse Wallace JR, seconded by Kim Walker, to follow staff
recommendation. Motion carried unanimously. 4-0
B. 948 SE 51h, City Block 160, Lot 12-A
Owner: Joe Lynn Crawford; 3379 CR 1033, Greenville, TX 75401
Nicki Brown stated that the camper on the property is dilapidated and unsecure. The
doors are broken off and the ceiling tiles are falling due to water damage from the
roof. The camper is full of junk and rubbish and is also covered in yegetation.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, remove camper within 30 days, or the city has the right to do so.
Motion made by Angie Briscoe, seconded by Morgan Cline, to follow staff
recommendation. Motion carried unanimously. 4-0
C. 1127 E Grove, City Block 175-A, Lot 10
Owner: Maxine Lewis ETAL; C/O Mary Gilmore; 1764 Maple Ave, Paris, TX
75460
Nicki Brown stated the owner of the property is deceased. There are 3 campers on
the property that are dilapidated due to missing tires, wood and siding. There is junk
and rubbish throughout the entire property.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, remove camper within 30 days, or the city has the right to do so.
Motion made by Kim Walker, seconded by Angie Briscoe, to follow staff
recommendation. Motion carried unanimously. 4-0
Building and Standards Meeting
January 2& 2026
Page 3
D, 1391 NE 12th, City Block 0, Lot 18-20
Owner: Randall L Puetz SR; 1391 NE 12th, Paris, TX 75460
Nicki Brown stated there has been no contact with the property owner. A camper
is on the vacant lot with junk and outside storage. She contacted an occupant and
informed them of the meeting and the need to remove the camper.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, remove camper within 30 days, or the city has the right to do so.
Motion made by Jesse Wallace JR, seconded by Morgan Cline, to follow staff
recommendation. Motion carried unanimously. 4-0
E. 1518 W Houston, City Block 191, Lot 10
Owner: R L Jenkins; 970 Grove St, Paris, TX 75460
Nicki Brown stated there has been no contact with the property owner. A junk and
rubbish case has been opened, and there is a dilapidated accessory structure with
roof holes and fire damage from indoor grill use.
Nicki Brown's recommendation: Declare a nuisance, demolition of structure,
and vacate within 30 days, or the city has the right to do so.
Motion made by Angie Briscoe, seconded by Kim Walker, to follow staff
recommendation. Motion carried unanimously. 4-0
F. 1145 NE 6TH, City Block 93-A, Lot 5
Owner: Jean & Edgar Lynch; 920 Fitzhugh ST, Paris, TX 75460
Nicki Brown stated the camper tenant has been notified, but there has been no
contact with the property owner. The tenant removed the junk and said the camper
on the vacant lot will be moved on January 26, 2026.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, remove camper within 30 days, or the city has the right to do so.
Motion made by Angie Briscoe, seconded by Jesse Wallace JR, to follow staff
recommendation. Motion carried unanimously. 4-0
4� Adjournment.
There being no further business, a motio o adjourn s made by m a
I 3:19
p.m.'"d ,
MINUTES OF THE BUILDING AND STANDARDS COMMISSION MEETING
OF THE CITY OF PARIS, TEXAS
February 16th, 2026
The Building and Standards Conunission of the City of Paris met for a regular session at 3:00 p.m.
on Monday, February 16, 2026, at the City of Paris Council Chambers, 107 E. Kaufman St., Paris,
TX 75460.
Present: Board Members:
Jesse Wallace Jr
Kim Walker
Morgan Cline
Alexander Moore
Absent: A.W. "Plug" Clem
Angie Briscoe
City Representatives: Nicki Brown — Senior Code Enforcement Officer
Jacie Brown — Code Enforcement
Melissa Shaffer — Code Enforcement
Elisabeth Payne — Code Enforcement
Michael Smith — Chief Operating Officer/Public
Works Director
Stephanie Harris — City Attorney
Cade Oats — Interim Fire Marshal
Rose Beverly — City Manager
Call meeting to order.
Kim Walker, called the meeting to order at 3:00 p.m.
2. Approve minutes from the meeting of January 20, 2026.
A Motion was made by Kim Walker to approve minutes, seconded by Jesse
Wallace J. Motion carried unanimously. 4-0
3. Public Hearing to consider presentations by City of Paris Code Inspectors and owner(s)
and/or lien holder(s) of the below properties who have been given notice of a violation of
Chapter 4, Article 4.03 entitled "Substandard and Dangerous Buildings and Structures;"
Chapter 7, Article 7.04 entitled "Weeds, Junk, and Other Objectionable, Unsightly, or
Unsanitary Matter on Private Premises;" Chapter 8, Article 8.10 entitled "Outdoor
Storage;" Code of Ordinances of the City of Paris, Paris, TX.
Building and Standards Meeting
February 16, 2026
Page 2
A. 524 Parr; Locust Hill Block 8, Lot 2
Owner: Craig B & Stormi P Ortega; Evans; 524 Parr Ave., Paris, TX 75460
Nicki Brown stated the structure has a hole in the roof and there is missing and
deteriorated wood. The structure is unsecure. There has been no contact with the
property owner. We had previously taken this property to BSC but the publishing
was not done in the allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Motion made by Jesse Wallace Jr, seconded by Alexander Moore, to follow staff
recommendation. Motion carried unanimously. 4-0
B. 548 NE I"', City Block 92, Lot 4
Owner: Georgia Washington; C/O Yolanda Washington; 824 7th NE, Paris, TX
75460
Nicki Brown stated the structure has foundation damage, there is missing and
deteriorated wood, and there are holes in the roof. There has been no contact with
the property owner. We had previously taken this property to BSC but the
publishing was not done in the allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, the city has the right to do so.
Motion made by Kim Walker, seconded by Morgan Cline, to follow staff
recommendation. Motion carried unanimously. 4-0
C. 856 E Houston; City Block 187, Lot 6
Owner: Freddie R & Vincel D Baker; 857 Lamar Ave, Paris, TX 75460
Nicki Brown stated the structures foundation is sinking, there is missing and
deteriorated wood, and there are holes in the roof. There has been no contact with
the property owner. We had previously taken this property to BSC but the
publishing was not done in the allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Motion made by Jesse Wallace Jr, seconded by Alexander Moore, to follow staff
recommendation. Motion carried unanimously. 4-0
Building and Standards Meeting
February 16, 2026
Page 3
D. 1051 NW 8th; E S Conner Addition Block 1, Lot 12
Owner: Ruth Teal; 6003 Seacomber PI, San Antonio, TX 78242
Nicki Brown stated the structure has severe fire damage and is not able to be
rehabilitated. There is junk and rubbish throughout the property. There has been
no contact with the property owner. We had previously taken this property to BSC
but the publishing was not done in the allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Motion made by Morgan Cline, seconded by Jesse Wallace JR, to follow staff
recommendation. Motion carried unanimously. 4-0
E. 1065 11th NE, City Block 175, Lot 12
Owner: 1507 California LLC; PO Box 573036, Houston, TX 77257
Nicki Brown stated the structure has missing and deteriorated wood surrounding
it and is also sinking. There has been no contact with the property owner other
than an email which has not been responded to regarding rehabilitation plans. We
had previously taken this property to B SC for repairs but the publishing was not
done in the allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Motion made by Kim Walker, seconded by Jesse Wallace Jr, to follow staff
recommendation. Motion carried unanimously. 4-0
F. 1741 Cedar; Gibbons -Braden Addition Block 17, Lot 8
Owner: Hunter Price Sr.; 908 Larue Drive, Cedar Hill, TX 75104
Nicki Brown stated the structure has holes in the ceiling, holes in the side of the
house, missing and deteriorated wood, and is unsecure. There is junk and rubbish
throughout the property. There has been no contact with the property owner. We
had previously taken this property to BSC but the publishing was not done in the
allotted timeframe.
Nicki Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Building and Standards Meeting
February 16, 2026
Page 4
Motion made by Morgan Cline, seconded by Kim Walker, to follow staff
recommendation. Motion carried unanimously. 4-0
G. 1177 E Grove St; City Block 175-A, Lot 6
Owner: George LaFlarnme; 1177 E Grove St, Paris, TX 75460
Nicki Brown stated the structure has severe fire damage and is unable to be
rehabilitated. The owner passed in the fire and there has been no contact with any
heirs. There is junk and rubbish throughout the entire property.
Nick! Brown's recommendation: Declare a nuisance, vacate property within
30 days, demolish structure within 30 days, removal of junk and rubbish
within 30 days, or the city has the right to do so.
Motion made by Kim Walker, seconded by Alexander Moore, to follow staff
recommendation. Motion carried unanimously. 4-0
4. Adjournment.
There being no further business, a motion
f adjourn is made by ill Pil, at 3:19
P.m.
1
COMMISSIONER
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PARIS ECONOMIC DEVELOPMENT CORPORATION
MONTHLY MEETING
Paris City Council Chambers
107 E. Kaufman St.
Paris, Texas 75460
Tuesday, February 24, 2026
5:30 P.M.
MINUTES
Board Members Present:
Josh Bray, Chairman
Curtis Fendley, Vice Chairman
Chase Coleman, Secretary/Treasurer
Dr. A.J. Hashmi
Erik Roddy
Mark Homer
Marshall Dougherty
Staff Present:
Maureen Hammond, Executive Director
Adam Cawthon, Executive Assistant
Legal Council:
Casey Gain, PEDCAttorney
Ex -Officio Members Present:
Rose Beverly, City Manager
Dr. Stephen Benson, PJC President
Call to Order
Chairman Josh Bray called the monthly board meeting of the Paris Economic Development Corporation
to order at 5:30 p.m. on Tuesday, February 24, 2026.
Invocation
Mr. Roddy gave the invocation.
Welcome and Opening Remarks
Chairman Bray opened by expressing appreciation to everyone in attendance.
Citizens' In ut
Chairman Bray invited those present to speak during the Citizens' Input. No one came forward, and Mr.
Bray closed citizens' input.
Page 1 of 7
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Discuss and Consider Aproval of the January 2-0 2026�Meetin�Minutes
Chairman Bray presented the January 20, 2026, meeting minutes for review and discussion. Dr. Hashmi
made a motion to approve the minutes as presented. Mr. Dougherty seconded the motion.
Vote: 7 -ayes to 0 -nays
Discuss and Consider A royal of Janua 2026 Financial Statements
Secretary and Treasurer Chase Coleman presented financial reports ending January 31, 2026. Total
assets were reported to be $11,594,563. Total liabilities were reported to be $1,935,110, leaving the
PEDC with a total net position of $9,659,453. He continued with the income statement for the month,
citing the reported total revenue as $219,174. He concluded the financial report for the month of
January by presenting total expenditures and net income for the month.
Mr. Coleman opened the floor to questions regarding the January financial statements. There were no
questions.
Dr. Hashmi made a motion to approve the financial statements as presented. Mr. Fendley seconded the
motion.
Vote: 7 -ayes to 0 -nays
Discuss and Consider Action on Re air or Re lacement of PEDC Tele hone System
Ms. Hammond reported that the lightning storm that occurred on Saturday, February 14, 2026, caused
irreparable damage to the PEDC's office printer and on-site phone communications server. She reported
that the PEDC's IT Specialist had inspected the damage and determined that reasonable preventative
measures were in place at the time and that the power surge was an abnormal occurrence. She noted
that temporary solutions have been implemented for both the office printer and phone system, and the
PEDC would be requesting action from the Board on the repair or replacement of the phone system
during tonight's Board Meeting. She added that she would present options for the replacement of the
office printer during next month's meeting.
Ms. Hammond referenced materials provided in the board packet. She gave an overview of the
following options:
1) Replace Server and Remain with Optimum
Total 36 -Month Projected Cost: $6,620
2) GoTo Connect — Lease Option
Total 36 -Month Projected Cost: $3,690.36
Net 36 -Month Savings vs Server Replacement: $2,929.64
3) GoTo Connect — Purchase Option
Total 36 -Month Projected Cost: $3,455.37
Net 36 -Month Savings vs Server Replacement: $3,164.63
Page 2 of 7
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' E X A S
She expressed that the replacement of the current phone system represented the highest -cost option
and maintained reliance on on-site hardware infrastructure, while the GoTo Connect Purchase Option
provided the lowest projected cost and did not require a long-term service contract. She noted that, due
to these factors, she recommended moving forward with the GoTo Connect Purchase Option as the
permanent replacement solution.
Dr. Hashmi made a motion to approve the GoTo Connect Purchase Option as presented. Mr. Coleman
seconded the motion.
Vote: 7 -ayes to 0 -nays
Dr. Hashmi asked if the Board could approve the purchase of a new office printer during the current
Board Meeting. Mr. Bray noted that Ms. Hammond has the authority to approve the purchase of a new
printer within the current budget and policies and that approval during next month's Board Meeting
would not be necessary.
Receive 2025 Annual Presentation from Executive Director
Ms. Hammond reminded the Board that, pursuant to the PEDC bylaws, she delivered the 2025 Annual
Presentation during the February 23, 2026, City Council Meeting. Prior to beginning her report, she
expressed gratitude to the Board for its continued support and strong engagement.
Key highlights included the following:
• Conducted employer surveys across Paris and Lamar County as part of the PEDC's formal site
visitation program
• Celebrated the grand opening of the Texas Department of Transportation's new Paris District
Headquarters
• Supported the groundbreaking of Happy Trailers' new headquarters
• Celebrated the grand opening of LionsHead Specialty Tire & Wheel 120,000 SF facility
• Acquired 102 shovel -ready acres on Loop 286
• Organized, hosted, and participated in multiple workforce development events
• Maintained an active presence at both the regional and state levels
• Establishment of new committees within the PEDC Board
Ms. Hammond then transitioned to a review of several economic indicators from the past five years to
evaluate whether recent economic development activity has produced measurable results.
She reported that building permit valuations within the City of Paris have fluctuated over the past five
years, which is typical as a single large project can significantly influence annual commercial valuation
totals. Residential construction within city limits has remained steady but modest during this period. In
contrast, approximately 1,000 homes were constructed in Lamar County outside the city limits over the
same five-year period, averaging about 200 homes annually.
Page 3 of 7
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Ms. Hammond reported that from 2020 to 2025, Lamar County's population increased by 3.62 percent,
while the City of Paris experienced growth of 0.73 percent.
She stated that total employment in Paris increased by 1,773 jobs since 2020, representing a 10.4
percent increase. She noted that Paris is outperforming most similarly sized rural markets, with only
Sherman and Sulphur Springs showing stronger growth. She stated that Paris exceeded job growth in
Denison, Marshall, Lufkin, Kilgore, Mount Pleasant, and Bonham. Ms. Hammond explained that
employment growth is currently outpacing population growth within city limits and noted that aligning
housing capacity with job creation will be an important strategic focus moving forward.
Ms. Hammond also reported that manufacturing employment increased by 30.3 percent during the
same period, reinforcing the community's competitive position in the manufacturing sector.
She stated that the city has maintained an unemployment rate near 4 percent, indicating a tight labor
market and reinforcing the importance of workforce development and housing availability as strategic
priorities.
Ms. Hammond further reported that average wages increased by approximately 22 percent over the
past five years.
Finally, she noted that city sales tax revenue has increased by 37.5 percent since 2020.
Hammond concluded this portion of her report by explaining that these indicators provide important
context for the Board. She noted that job growth is exceeding residential growth within the city, creating
an opportunity to capture more of the workforce as residents.
She then transitioned to a review of projects supported by the EDC over the past five years.
Hammond reported that from 2020 through 2025, the Paris Economic Development Corporation
supported 16 companies representing a combined capital investment of approximately $571.5 million.
These projects accounted for 1,985 direct jobs created and retained and more than $102 million in
annual payroll.
She further reported that when modeled over a ten-year period, these projects are estimated to
generate approximately $5.4 billion in total economic output and support 2,775 jobs with approximately
$1.3 billion in total labor income. This estimate includes the jobs, payroll, output, and tax revenues
associated with the companies assisted by the PEDC, as well as secondary impacts at other local
businesses.
Hammond noted that these outcomes represent a measurable return on the quarter -cent sales tax
administered by the PEDC and Board on behalf of the community. She added that the community's
economic development foundation is stronger today than it was five years ago due to disciplined
Page 4 of 7
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governance, strategic land acquisition, and measured deployment of incentives, positioning the
organization to continue building on that progress.
Looking ahead, Hammond stated that the next phase of economic development will require continued
focus on industrial building inventory, housing availability, workforce pipeline development, incentive
competitiveness, and infrastructure capacity. She emphasized that while job creation and retention
remain the organization's core mission, sustaining that growth will depend on the community's ability to
attract and retain talent through adequate housing, workforce alignment, and overall community
capacity. She noted that economic development increasingly intersects with these broader community
factors and will require ongoing engagement by the PEDC in broader community discussions.
Ms. Hammond opened the floor for questions regarding the 2025 Annual Presentation.
Mr. Homer asked whether EDCs in surrounding communities operate as Type A, Type B, or a
combination of both. Ms. Hammond stated that most are Type A corporations, while others operate as
Type B. She also noted that some communities maintain both Type A and Type B corporations.
Mr. Homer also asked whether sales tax holidays have impacted PEDC sales tax revenue. Mr. Coleman
responded that he has not observed any significant impact on sales tax revenue as a result of the
holidays.
Dr. Hashmi noted that the PEDC receives one-quarter cent of the local sales tax, while the City receives
the other quarter cent in addition to the one percent sales tax it collects. He asked whether other
communities operate under a similar structure. Ms. Hammond stated that she would research the
matter and provide an answer at a later date.
Mr. Bray thanked Ms. Hammond for her presentation and expressed enthusiasm for the future of
economic development.
There being no further questions or comments, the discussion concluded.
Convene into Executive Session:
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:
Page S of 7
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a) Project Red Maple 2
b) Project Star Anchor
c) Project Workforce Bridge
II. Pursuant to Section 551.072 of the Texas Government Code to discuss and deliberate the
purchase, exchange, lease, or value of real property.
III. Pursuant to Section 551.071 of the Texas Government code, Consultation with Attorney, to
receive legal advice from Board's Attorney about (1) pending or contemplated litigation
and/or (2) on matters in which the duty of an attorney to his client under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with this
chapter.
Mr. Bray convened the Board into Executive Session at 6:02 p.m. Dr. Hashmi left the Board
Meeting at this time.
Reconvene into Offen Session andConsiderAction on Itemi Qiscussed in the Executive Session
Mr. Bray reconvened the Board into an Open Session at 6:28 p.m.
Mr. Homer made a motion to authorize Treasurer Coleman to execute the property closing discussed in
Executive Session, with Mr. Roddy attesting. Mr. Dougherty seconded the motion.
Mr. Bray and Mr. Fendley abstained due to a conflict of interest.
Vote: 4 -ayes to 0 -nays
Mr. Coleman made a motion to approve the Performance Agreement discussed in Executive Session and
to authorize Mr. Fendley to sign the resolution, with Mr. Coleman attesting. Mr. Dougherty seconded
the motion.
Mr. Bray abstained due to a conflict of interest.
Vote: 5 -ayes to 0 -nays
Discuss Future A enda Items
Mr. Bray opened the floor to discuss future agenda items. No items were brought forward for discussion.
Closin Remarks
None
Page 6 of 7
AdLourq
Mr. Bray declared the meeting adjourned.
The meeting was adjourned at 6.30 p.m.
Respectfully submitted,
Adam Cawthon
Executive Assistant
Paris Economic Development Corporation
Page 7ofr
Paris—Lamar County Health District
400 West Sherman Street, Paris, Texas 75460-5646
Health District: (903) 785.4561 and Fax: (903) 737-0978
Women, Infant and Children (WIC): (903) 784-1411 and Fax: (903) 7841442
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Paris -Lamar County Board of Health Regular Meetin
The Paris -Lamar County Board of Health held a regular session on
Monday, December 15th, 2025.
Board Member's .��...Name.�.._�....�.........._......_......�._�.�.�_........_..w....�..__w...ww... ......In Attendance
�_.._..�.�...�..�.w��...._��..........._��__.
anc Not ' Attendance
__..Ms. Kristi....Graham ............................_.....................,.,.......,...... ........ .......,.._...._ _..........__ _._..........
x
.Mrs. Kristen Prater .. ._...�.�.�.�.....� x ���._..w.....�. �.ww....._�...�.._�.�,�.�...�..�.___.__-_w__..w�_......
Dr. Bart HWays_.._..............�ww.............vvww....w_....x_u...... w._-_....._.._................. _._....._..._....� www a
....._. . ._............... ......._�.._ www � ._... � ...__........_.wwww._.........�............._ww.w._ .. _ ....�......................_.. w.
Dr. Amy Hug hesx
_..Dr. Myers Hurt
........���.............�....... ........ .........X._._ww_w_.�....�._� _..._....._..................__ ....._.....w.w.........._.�
,........ .__..._M......._........... ww .._...._ _.._w. ._. _......_ _ _..... ........w.......__ w_w. .. .w.._.._.......w _w ._ .__._._ww......_......._._..._............ .... .
Ms. Mitzie Pirtle x
Dr. Russell n..Putna m ...................�M........_.................................ww...w _._�_�...._........._ .... �..._.,........_.X�...._...m�_................_.
Others in Attendance were - In Attendance Not in Attendance
Mrs. Gina Prestridge, Executive Director x
Miss Cheryl King, Administrative Assistant �
x
Ms. Graham was sworn in under oath and signed the Statement of Elected /
Appointed Officer and Oath of Office before Miss King, Notary Public. Ms. Graham
has completed the required training and presented the certificates to Miss King.
Dr. Hays made a motion and was seconded by Mrs. Prater to convene into open
session at 5:28 p.m.
Motion carried. 5 yays, 0 nays.
Dr. Hays made a motion and was seconded by Mrs. Prater to approve prior
meeting minutes.
Motion carried. 5 yays, 0 nays.
Dr. Hays made a motion and was seconded by Mrs. Prater to approve the Policies
and Procedures uals / Contracts.
Motion carried. 5 s, 0 nays.
Paris— Layuar Cou= Board of fl alai -i Members
Chakmar@ •• Dr. Walker ui"C'kazo,W�.e"rhairman - Dr. Myers'iurt IIS tw l3mmAon-van..m i-secr "'�+r.S�;y_w Susan B flene {a�r�md t� ;rvm^az
uUlwa,A.1 �`�: �' iN"UCS " t:'xAa us arch:wwre���: m,.��� USall Davis fz. a zr em,.z ar ,UvyT x11,1, 1 Dr. A m y 110ig h es d min Ms, V,s. irU1,41 , Dig". Bar".' 114ky's fnii Z0,111etiVo 6 JUVir
Mrs. Pirtle and Dr. Hurt reviewed and approved the First Federal bank
statement(s) ending in:
• July 2025
• August 2025
• September 2025
• October 2025
• November 2025
Mrs. Prestridge advised the board members that she received $150,000. from the
Ram Foundation to help cover the amount of the CCHB Grant that was cut by the
state. Also, Mrs. Prestridge advised the board members that the shelter that is
connected to the Health District has closed. Mrs. Prestridge advised the board
members that the Paris -Lamar County Health District has the first option to
purchase the north portion of our current building. Board members will consider
if it becomes available.
Next UARTERLY meeting will be either
Tuesday, January 20tH, 2026
Tuesday, February 17th, 2026, or
Monday, March IWh, 2026,
@ 5:30 p.m.
New business to be discussed at the next meeting include
• electing new Chairman, Vice -Chairman, Secretary, and
• 2 members to review bank statements,
• approval of annual evaluations of Dr. Amanda Green and Mrs. Gina
Prestridge
Ms. Pirtle made the motion and was seconded by Dr. Hays for the meeting to be
adjourned at 5:37 p.m.
Motion carried. 5 yays, 0 nays.
Respectfully submitted by:
� K
C"A9
At the March 16, 2026 Board of Health Meeting, Dr. Hays made the motion and Mitzie Pirtle seconded the motion for the PLCHD board approved December
15th, 2025 minutes to be submitted to the City Clerk in the City Hall Annex, located at 150 S.E. 1" Street, Pans, Texas, for filing.
Motion carried 5 yays and 0 nays.
pans - Ijmarfi)untLBoard oftlealth Members
ro I vice-chairman ^^ n 1R�yeA"s ��rIY�A4"�' #11 flvmertw�auu�u�a.vvav vw�iov.� �-Q't�,"'A" .81Y�'�A� Susan eBen'e araire svaz.x�aa.
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Memorandum
TO: Mayor & City Council
Rose Beverly, City Manager
Agenda Item No. 8
FROM: Osei Amo-Mensah, Director, Planning & Community Development
SUBJECT: Economic Development and Residential Tax Abatement Agreement with Ricardo
Alonso — Confia Homes LLC.
DATE: April 13, 2026
BACKGROUND: The applicant Ricardo Alonso of Confia Homes LLC has applied for an
Economic Development and Residential Tax Abatement Agreement under the 5 in 5 Housing Infill
Development Program (the Program) to build a Five (5) Single -Family Dwelling Homes.
The Name and Location of the Reinvestment Zone: 2025-1 encompassing the entirety of the
corporate limits of the City of Paris, Texas. Properties to be included in the abatement is:
• LCAD# 11123, East Park Addition, Block L, Lot 7-9, 1165 NW 16th
• LCAD# 11788, Gibbons Park, Block 3, Lot 8, 646 E. Polk
• LCAD# 17072, City of Paris, Block 190, Lot 1, 1367 W. Houston
• LCAD# 17573, City of Paris, Block 227, Lots 10-A, 1736 E. Cherry
• LCAD# 18363, City of Paris, Block 268, Lot E 139.5' of 13, 1230 Johnson St.
STATUS OF ISSUE: Staff has reviewed the application and determined that the properties are
within the Program Area, and that the proposed improvements meet the criteria for the Program.
The proposed agreement, attached hereto, provides incentives under Chapter 380 of the Texas
Local Government Code relating to labor fees on water/sewer taps, building plan review, and
permitting as well as a residential tax abatement under the authority of Texas Tax Code Chapter
312. There are transfers of City of Paris trustee properties. All incentives are provided in the
Program guidelines and criteria. Notice of the Council's consideration of the tax abatement was
duly posted at least 30 days prior to this meeting as required by law.
BUDGET: The total estimated value of the Improvement to be constructed on the above -
referenced parcels is at least: Eight Hundred Thousand and No/100 Dollars ($800,000.00).
Discounts on the fees are mentioned in the program guidelines as described above. The tax
abatement will have negligible budgetary impact as the abatement will apply only to the
incremental value to taxable value attributable to the required improvements on otherwise
undeveloped property.
RECOMMENDATION: Adopt a resolution approving the attached 5 -in -5 agreement with
Confia Homes LLC.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS APPROVING AND AUTHORIZING AN ECONOMIC
DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT
WITH CONFIA HOMES, LLC PURSUANT TO THE 5 IN 5 HOUSING
INFILL DEVELOPMENT PROGRAM; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, on January 27, 2025, the City Council of the City of Paris, Texas
passed Ordinance No. 2025-003 creating Reinvestment Zone 2025-1 and designating
certain areas inside the city limits to be eligible for the Residential Tax Abatement
Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council of the
City of Paris, Texas passed Resolution No. 2022-003 stating its intent to establish a 5
In 5 Housing In -Fill Development Program (hereinafter "the Program") including low
cost land sales and residential tax abatements and adopting guidelines and criteria
for the Program, which guidelines and criteria from time to time have been amended,
and were readopted most recently on January 12, 2026 by Resolution No. 2026-001;
and
WHEREAS, City Council has also, concurrent with the readoption of the
guidelines and criteria referenced above, re -declared its intention to participate in a
residential tax abatement program as part of the Program; and
WHEREAS, the City Council has, in said guidelines and criteria, designated an
area within Reinvestment Zone 2025-1 as being eligible for the Program; and
WHEREAS, the Program's and guidelines for participation therein include
criteria and guidelines for eligibility for residential tax abatements; and
WHEREAS, Confia Homes, LLC ("Owner") has submitted an application for a 5
In 5 Housing Infill Development project to construct five (5) single family homes on
property described in Exhibit A hereto; and
WHEREAS, city staff has reviewed the application and the location of the
above described residential Improvements and has determined that the properties
are located within the boundaries of the defined geographic area and Reinvestment
Zone 2025-1 and meet the requirements for Improvements set forth in the guidelines
and criteria for the Program readopted on this same date.
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 and are incorporated herein for all purposes.
Section 2. That the terms of the Economic Development Agreement and Tax
Abatement Agreement between the city and Confia Homes, LLC and the property the
subject thereof meet the City's Guidelines and Criteria for Tax Abatement adopted by
the City of Paris by the resolution set forth in Exhibit 1 to Exhibit A hereto and will
lead to the economic development of the Program Area.
Section 3. That the terms and conditions of the proposed Agreement attached
hereto as ExhibiLA and incorporated herein by reference, 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 Mayor 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 ExhibItA
Section 5. That the planned use of the property the subject of the tax
abatement will not constitute a hazard to public safety, health, or morals.
Section 6. That this approval and execution of the agreement on behalf of the
City is not conditioned upon approval and execution of any other tax abatement
agreement by any other taxing entity.
PASSED AND APPROVED by the City Council of the City of Paris, Texas at its
regular meeting on the 13th day of April, 2026.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
Exhibit A
THE STATE OF TEXAS
COUNTY OF LAMAR
ECONOMIC DEVELOPMENT AND RESIDENTIAL TAX ABATEMENT
AGREEMENT
This Economic Development and Residential Tax Abatement Agreement (hereinafter the
Agreement) is entered into by and between the CITY OF PARIS, TEXAS, a home rule
municipality situated in Lamar County, Texas, acting by and through its authorized officer
whose signature appears below (hereinafter called City), and CONFIA HOMES, LLC
(hereinafter referred to as Owner).
WITNESSETH:
WHEREAS, on January 27, 2025, the City Council passed Ordinance No. 2025-003
creating Reinvestment Zone 2025-1, designating certain areas inside the city limits to be eligible
for the Residential Tax Abatement Program; and
WHEREAS, after a public hearing on January 10, 2022, the City Council of the City of
Paris, Texas passed Resolution No. 2022-003 stating its intent to establish a 5 In 5 Housing In -
Fill Development Program (hereinafter the Program) including low cost land sales and
residential tax abatements and adopting guidelines and criteria for the Program; and
WHEREAS, by Resolution 2022-003, City Council designated an area within
Reinvestment Zone 2025-1 (then known as Reinvestment Zone 2020-1) as being eligible for the
Program (the Program Area); and
WHEREAS, City Council has revised the guidelines and criteria for the Program and for
tax abatement agreements granted thereunder three times, the most recent revisions adopted by
Resolution 2025-025 on May 12, 2025 and readopted by Resolution No. 2026-001 on January
12, 2026; and
WHEREAS, Owner has submitted an application for a 5 In 5 Housing Infill
Development project to construct five (5) single family homes (hereinafter the Improvements) at
the properties described herein below in Paris, Texas (the Properties); and
WHEREAS, city staff has reviewed the application and the location of the above
described residential Improvements and has determined that the Properties are located within the
boundaries of Reinvestment Zone 2025-1 and are within the defined geographic area of the
Program Area, and the application meets the requirements for Improvements set
forth in the Guidelines and Criteria for the 5 In 5 Housing Infill Development Program as set
forth in City Resolution No. 2025-025.
NOW, THEREFORE, in consideration of the terms and conditions referenced herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City, and Owner, (collectively referred to as Parties) hereby mutually agree as
follows:
I.
Recitals
1.1 The Recitals set forth hereinabove are incorporated into this Agreement for all
purposes.
II.
Component Parts
2.1 This Agreement comprises two component parts, including an economic
development agreement pursuant to Texas Government Code Chapter 380 and a residential tax
abatement agreement pursuant to Texas Tax Code Section 312.
III.
Terms Applicable to both the Economic Development Agreement and the Residential Tax
Abatement Agreement:
A. The Properties—Areas to be Improved
3.1 The Improvements defined in section III B below and made the subject of this
Agreement shall be located on the Properties located in Paris, Lamar County, Texas more fully
described in Exhibit 1 attached hereto and incorporated herein by reference, which Properties
are within Reinvestment Zone No. 2025-1 and within the area set forth in the Program:
• LCAD# 11123, East Park Addition Block L, Lots 7-9, 1165 NW 16`' St.
• LCAD# 11788, Gibbons Park Addition Block 3, Lot 8, 646 E. Polk St.
• LCAD# 17072, City of Paris Block 190, Lot 1, 1367 W. Houston St.
• LCAD# 17573, City of Paris Block 227, Lot 10-A, 1736 E. Cherry St.
• LCAD# 18363, City of Paris Block 268, Lot 3 139.5' of 13, 1230 Johnson St.
3.2 The Properties listed are Tax Foreclosure City Trustee (City Trustee) status
properties.
B. Consideration --Improvements
3.3 The Improvements to be completed consist of five (5) single family home
structures (the Structure or Structures) on the above described Properties as more fully described
in the application for the Program attached hereto and incorporated herein as Exhibit 1.
2
3.4 The total estimated value of the Improvements to be constructed on the above -
referenced parcels is at least EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS
($800,000.00).
3.5 Owner shall obtain City approval for all necessary platting (if required) and plans,
building pen -nits, green tags and a Certificate of Completion from the City of Paris.
3.6 Owner shall allow city inspectors access to the Properties and h-nprovements
throughout construction and completion of Improvements.
3.7 Owner agrees and covenants that it will diligently and faithfully construct each
Improvement/Structure referenced herein in a good and workmanlike manner within 12 months
of obtaining building permits from City for each structure. Owner further covenants and agrees
that construction of the Improvements will be in accordance with all applicable state and local
laws, codes, regulations, and Program Guidelines or Owner will procure a valid waiver or
variance thereof. Owner shall complete all Improvements required herein on or before April 12,
2031.
3.8 Owner shall contact City Building Official for final inspection as Improvements
are completed and obtain a Certificate of Completion for the new residential dwellings as
completed.
3.9 Owner shall notify the Lamar County Appraisal District upon completion of
Improvements and request an updated appraisal of the Improvements.
3.10 Owner shall provide City with appraised value of Improvements upon receipt of
same from Lamar County Appraisal District.
3.11 Owner may not use the parcels described in Section 3.1 for any other purpose
other than to construct the Improvements set forth in this Article. Use of any parcel for any other
purpose shall constitute a separate act of default of the Agreement and will trigger the default
provisions and remedies set forth hereunder.
IV.
Texas Local Government Code Chapter 380
A. Term
4.1 The term of this Economic Development Agreement shall commence on April
13, 2026 and shall continue for a period of five (5) years ending on April 12, 2031.
B. Land Conveyance
4.2 In consideration for Owner's construction and completion of the above -referenced
Improvements, City agrees to convey the above -referenced parcels to Owner in exchange for
payment in the amount of City's proportionate share of $1.00 per parcel in accordance with the
3
Interlocal Agreement for establishing alternate manner of sale of land acquired by the City of
Paris, Texas pursuant to Section 34.051 of the Texas Tax Code by and between the City of Paris,
Texas, Lamar County, Texas, Paris Independent School District, and Paris Junior College
(approved by: the City of Paris, City Council agenda of January 24, 2022, item #22; Paris Junior
College, Regents' agenda of January 24, 2022, item #6; Lamar County, Commissioners Court
agenda of January 24, 2022, item #2; and the Paris Independent School District, Trustees'
agenda of January 24, 2022, item #4).
4.3 The conveyance of the property by the City to the Owner shall be tax sale deed
without warranty and with right of reversion.
4.4 City hereby transfers the property in an "as is" condition and does not warrant or
provide clear title with respect to the aforementioned City Trustee status of the Property. Owner
assumes full responsibility for title insurance for the property and all new residential
improvements thereto by Owner under- the terms of this Agreement.
C. Reduced Fees for Building Plan Review and Permitting
4.5 In consideration for Owner's construction and completion of the above -referenced
Improvements, City agrees to reduce rates for building plan review by one hundred percent
(100%) and permit fees by one hundred percent (100%) for each Structure constructed pursuant
to this Agreement.
D. Reduced Fees for Water and Sewer Tap Labor
4.6 In further consideration for Owner's construction and completion of the above -
referenced Improvements, City agrees to reduce rates for water- and sewer tap labor fees by
twenty-five percent (25%) where required by the City's Public Works Department.
E. Local Purchasing
4.7 As further consideration for the incentives granted herein, where possible, Owner
shall purchase building materials and fixtures from vendors located within the City of Paris.
F. Default
4.8 It shall be an act of default of the Economic Development Agreement should
Owner fail to construct and compete all of the Improvements specified herein within the five (5)
year period set forth herein (by April 12, 2031).
n
V.
Terms Specific to the Residential Tax Abatement Agreement
Texas Tax Code Chapter 312
A. Reinvestment Zone; NAICS Code.
5.1 The properties subject to this residential Tax Abatement Agreement are located
within City of Paris Reinvestment Zone No. 2025-1. For purposes of reporting this Tax
Abatement Agreement to the Office of the Comptroller of the State of Texas, the applicable
NAICS Code is 2361.
B. Term
5.2 The term of this Tax Abatement Agreement shall commence on April 13, 2026,
2025. It is the intention of this Tax Abatement Agreement that Owner receive an abatement of
taxes on each Structure constructed as it is completed and issued a Certificate of Completion by
City. Consequently, each Structure constructed and completed shall have its own five (5) year
abatement period. The abatement period for each constructed and completed dwelling unit shall
commence on January 1 of the year following City's issuance of a Certificate of Completion on
said dwelling unit and end on the fifth (5"') anniversary of the commencement of the abatement
period. This Tax Abatement Agreement shall tenninate upon the expiration of the final
abatement period granted herein unless otherwise tenninated by default or agreement of the
Parties.
C. Abatement
5.3 Subject to the terms and conditions of this Economic Development Agreement and
Tax Abatement Agreement, in further consideration for the construction and completion of the
Improvements required herein (new construction of five (5) single-family homes) and subject to
the rights and holders of any outstanding bonds of the City, a portion of the maintenance and
operations (M & O) ad valorem property taxes assessed upon each Improvement and otherwise
owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per
year of the taxes assessed upon the increased value of the Improvements made by Owner to the
Properties described in Section 3.1 of this Agreement, over the value in the year by which this
agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and
all applicable state and local regulations or valid waivers thereof; provided that the Owner shall
have the right to protest or contest any assessment of the Properties and said abatement shall be
applied to the amount of taxes finally determined to be due as a result of any such protest or
contest. For the purposes of this Agreement, the Base Value of the existing real property shall be
deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of
January 1, 2026 to wit: SIXTEEN THOUSAND FOUR HUNDRED THIRTY AND NO/100
DOLLARS ($16,430.00).
5.4 This abatement is granted in accordance with the City's Guidelines and Criteria
for the Program, a copy of which is attached hereto as Exhibit 2, provided, however, that in the
event of any conflict between this Agreement Exhibit 2, this Agreement shall control.
E
5.5 Upon receipt of the documentation set forth in Article III and in Section 6.6
herein as to each constructed and completed Structure, City will notify the Lamar County
Appraisal District to begin the tax abatement as to said Structure.
C. Default
5.6 If (a) the Improvements (all ten residential Structures) for which an abatement has
been granted are not completed in accordance with this Agreement (by April 12, 2031); or (b)
Owner allows its taxes owed the City to become delinquent and fails to timely and properly
follow the legal procedures for protest or contest of any such; or (c) Owner materially breaches
any of the other terms, provisions or conditions of this Economic Development Agreement and
Tax Abatement Agreement, including but not limited to the Mandatory Anti -Discrimination
Provisions set forth herein, then owner shall be considered in default of this Agreement. In the
event Owner defaults in its performance of either (a), (b), or (c) above, then City shall give
Owner written notice of such default and if Owner has not cured such default within sixty (60)
days of said written notice, this Tax Abatement Agreement may be terminated by the City.
Notice of default shall be given in accordance with Article Vl of this Agreement.
5.7 As damages in the event of default, and in accordance with the requirements and
discretionary provisions of Section 312.205 of the Tax Code of the State of Texas, all taxes
which otherwise would have been paid to the City without the benefit of abatement, including
taxes on those dwelling units constructed and completed according to the terms of this
Agreement, together with interest to be charged at the statutory rate for delinquent taxes as
determined by Section 33.01 of the Property Tax Code of the State of Texas, with all penalties
and attorney's fees permitted by the Property Redevelopment and Tax Abatement Act and the
Tax Code of the State of Texas, shall be recaptured and will become a debt to the City and shall
be due, owing, and paid to the City within sixty (60) days of the expiration of the above-
mentioned applicable cure period as the sole remedy of the City, subject to any and all lawful
offsets, settlements, deductions, or credits to which Owner may be entitled.
VI.
Additional Terms applicable to both the Economic Development Agreement and
the Tax Abatement Agreement
A. No Conflict of Interest.
6.1 The Owner represents and warrants that neither the Properties nor the Improvements
include any real or personal property that is owned or leased by a member of the Paris City
Council or the Planning and Zoning Commission or any member thereof having responsibility
for approval of this Agreement.
B. Conditions.
6.2 The terms and conditions of this Agreement are binding upon the parties hereto
and their successors and assigns.
6
6.3 It is understood and agreed between the parties that the Owner, in performing its
obligations hereunder, is acting independently, and the City assumes no responsibility or liability
in connection therewith to third parties; and Owner agrees to release, indemnify and hold the
City its elected officials, officers, employees and attorneys harmless from any claims,
lawsuits, damages, costs or attorney's fees related to this Agreement. It is further understood
and agreed among the parties that the City, in performing its obligations hereunder, is acting
independently, and the Owner assumes no responsibility or liability in connection therewith to
third parties.
C. Compliance Provisions
6.4 The Owner agrees that the City, its agents and employees, shall have reasonable
right of access to any and all records concerning Owner's investment in the Improvements for
the purpose of conducting an audit of the Improvements. Any such audit shall be made only
after giving the Owner notice at least fourteen (14) days in advance and will be conducted in
such a manner as to not unreasonably interfere with Owner's property. Upon request, the Owner
will provide the City with a detailed list of all Improvements, including a list of materials used
and cost thereof.
6.5 The Owner further agrees that the City, its agents and employees, shall have
reasonable right of access to the Property to inspect the Improvements in order to insure that the
construction of the Improvements are in accordance with this Agreement and all applicable state
and local laws and regulations or valid waiver thereof. After completion of the Improvements,
the City shall have the right to enter the Property and conduct an inspection of the completed
Improvements.
D. Initial and Annual Reporting.
6.6 The Owner further agrees that it will, within thirty (30) days of completion of each
dwelling unit as it issued a Certificate of Completion by the City, provide the CITY with a sworn
report, written on Owner's letterhead and signed by a designated representative of Owner, which
contains the following information:
(a) A copy of the printout from the Lamar County Appraisal District showing the
market value of the Property prior to the constriction of the Improvements;
(b) Detailed description of the Improvements;
(c) A copy of or identification of plans and specifications of constructed
improvements and the location of the same for inspection by City's Building
Official;
(d) The actual cost of the specific capital Improvements; and,
(e) The date of substantial completion of the specific Improvements as defined in
paragraph 2.1 hereof, and
7
(f) Receipts showing that the purchase of building materials and fixtures for the
construction were made from vendors within the City of Paris, when possible.
6.7 Owner further agrees that it will provide City with an annual, sworn report which
shall certify, in writing, that it is in compliance with each applicable term of this Agreement.
Such annual report shall be furnished on the forms provided by the City.
E. Authority to Contract.
6.8. This Agreement was authorized by resolution of the City Council at its regularly
scheduled meeting on the 13t' day of April, 2026 authorizing the Mayor to execute the
Agreement on behalf of the City.
6.9 This Agreement was entered into by Owner pursuant to the authority granted to the
authorized official whose signature appears below.
6.10. This Agreement shall constitute a valid and binding Agreement between the City
and Owner when executed in accordance herewith, regardless of whether any other taxing unit
executes a similar agreement for tax abatement.
F. Legal.
6.11 No officer, official or agent of the City has the power to amend, modify or alter
this Agreement or waive any of its conditions or to bind the City by making any promise or
representation not contained herein.
6.12 This Agreement, except by operation of law, shall not be assigned or transferred
by Owner, without the prior written consent of City, which consent shall be at the sole discretion
of the City.
6.13 Any written notice required or permitted under the terms of this Agreement shall
be given and be deemed to have been duly served if either (1) delivered in person, or (2)
deposited certified snail, return receipt requested, postage prepaid in the United States mail,
addressed to the designated representative of the respective parties which are designated as
follows:
OWNER:
Confia Homes, LLC
2435 N. Central Expressway, 12t'' Floor
Richardson, Texas 75080
(For the purposes of reporting this Agreement to the Office of the Comptroller of the
State of Texas, Owner's telephone number is 214-543-4516)
CITY:
CITY OF PARIS, TEXAS
Attn:.City Manager
P. O. Box 9037
Paris, TX 75461-9037
With a co ,w�� to:
City Clerk, City of Paris, Texas
(Address same as above)
6.14 If any term or provision of this Agreement shall be declared unconstitutional or
void by any court of competent jurisdiction, the constitutionality and validity of the remainder of
said Agreement shall not be affected thereby, and to this end the terms and provisions of this
Agreement are declared to be severable.
6.15 This Agreement sets forth the entire understanding between the parties, and any
other understandings or agreements shall be canceled and superseded by this Agreement upon
the date of execution hereof. None of the terms of this Agreement shall be waived, discharged,
altered or modified in any respect, except by an Agreement in writing signed by both parties and
specifically referring to this Agreement. The captions in this Agreement are included for
convenience only and shall not be taken into consideration in any construction or interpretation
of this Agreement or any of its provisions. This Agreement is performable in Lamar County,
Texas, and shall be governed by, construed and enforced in accordance with the laws of the State
of Texas. The provisions of this Agreement shall apply to, bind and inure to the benefit of the
City, Owner, and their respective successors, and pennitted assigns, if any.
6.16 Venue for any actions arising under this Agreement shall lie exclusively in the
courts of Lamar County, Texas, for any State Court action, and in the U.S. District Court for the
Eastern District of Texas for any federal court action.
6.17 MANDATORY ANTI -BOYCOTT AND OTHER PROVISIONS. Owner, by
executing this agreement, certifies the following:
i. Pursuant to Section 2271.002 of the Texas Government Code, Owner
certifies that either (i) it meets an exemption criterion under Section 2271.002;
or (ii) it does not boycott Israel and will not boycott Israel during the term of
the Agreement. Owner acknowledges this Agreement may be terminated and
payment withheld if this certification is inaccurate.
ii. Pursuant to SB 13, 87th Texas Legislature, Owner certifies that either (i) it
meets an exemption criterion under SB 13, 87th Texas Legislature; or (ii) it
does not boycott energy companies, as defined in Section 1 of SB 13, 87th
Texas Legislature, and will not boycott energy companies during the term of
the Agreement. Owner acknowledges this Agreement may be terminated and
payment withheld if this certification is inaccurate.
iii. Pursuant to SB 19, 87th Texas Legislature, Owner certifies that either (i) it
meets an exemption criterion under SB 19, 87th Texas Legislature; or (ii) it
does not discriminate against a firearm entity or firearm trade association, as
9
defined in Section 1 of SB 19, 87th Texas Legislature, and will not
discriminate against a firearm entity or firearm trade association during the
term of the Agreement. Owner acknowledges this Agreement may be
terminated and payment withheld if this certification is inaccurate.
iv. Pursuant to Subchapter F, Chapter 2252, Texas Government Code, Owner
certifies Owner (1) is not engaged in business with Iran, Sudan, or a foreign
terrorist organization. Owner acknowledges this Agreement may be
terminated and payment withheld if this certification is inaccurate.
WITNESS our hands this 13th day of April, 2026.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
THE CITY OF PARIS, TEXAS
M
Mihir Pankaj, Mayor
CONFIA HOMES, LLC
By: - - ......
Ricardo Alonso
Title:
10
STATE OF TEXAS
COUNTY OF LAMAR
BEFORE ME, the undersigned authority, on this day personally appeared Mihir Pankaj,
Mayor, known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed, and in the capacity therein stated.
Given under my hand and seal of office this 13th day of April, 2026.
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned authority, on this day personally appeared Ricardo
Alonso, known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein
expressed, and in the capacity therein stated.
Given under my hand and seal of office this . . . ......... .... . day of December, 2026.
Notary Public, State of Texas
11
Exhibit 1
12
��PL-1NFC1-0007 (rev 08/24)
OON `"
TEXAS
Where Texans Reach Higher
CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT (5 in 5)
Applicant:
Confia Homes LLC ...wes LLC
Name:Con__.._.—__..._.�.�� DBA: Confia }"�OT71.�v.u............., T.�.�..
iNa;,;ng Address:
2435 N Cenfral Ex , 12th Floor, Richardson, TX 75080 _
Telephone M. 214-543-4516 Email: ricardo.alonsoo nfiahomes.com
Owner:
Name: Confia Homes LLC
DBA: Confia Homes_ LLC
Mailing Address 2435 N Central Ex J?tjj Eloor, Richardson TXT 75080
Telephone #:.214-543-4516 _ _ Email: ricardo.alonso@confiahomes.com
Property Parcells) Proposed for Agreement:
No. LCAD #
Please see attached.
2.
3.
4.
5.
Ad rens
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Add additional sheets necessary.Full Legal Description: Include w._....�att _e_... ..�
g as an attachment a full legal description with metes and
bounds or a copy of the deed, if available.
Improvements:
Type improvements for new Construction (check one): L' SF U 2F U MF
Total Number of Dwelling Units: 10
Estimated Value of Improvements by type: $160,000-$195,000
Estimated Start Date of Construction: Sep 2025 -
Estimated Date of Completion of Project(s) A 2027
Description of Project (attach site pi:, 1,floor plan, etc.): p1 ase see attached
Date: 1213012025
Applicant's Signature:
Owner's signature: ^Y
-W __.� Date: _12/3012025
List of Requested Properties
Confia Homes LLC
646 E Polk
1736 E Cherry
Parcel ID 11123 (no address)
4. 1230 Johnson
5. 1367 W Houston
t 'I
armony Bank
Better Happens Together
Confia Homes —Guidance Line Terms
Guidance Line Amount - $3,000,000
Rate — Prime + 1.00% Floating (Floor: 7.00%)
Term —12 Months
Origination fees - Greater of 1.00% of the loan amount or $1,000
Guarantors —Kenneth Roberts, Ricardo Alonso-Cariilo
Comments:
Confia Homes will be limited to five (5) specs at any given time.
Craig Walters
Senior Vice President
Harmony Bank
www.Harmony.Bank
Uptown Deep Ellum Bishop Arts Cedars Garland Waxahachie Ennis Kemp Rice Seven Points Italy
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Exhibit 2
RESOLUTION NO. 2026-001
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS RE-
AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN
RESIDENTIAL TAX ABATEMENTS WITHIN THE 5 IN 5 HOUSING INFILL
REDEVELOPMENT PROGRAM AND APPROVING GUIDELINES AND
CRITERIA FOR SAME; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, Sec, 312,002 of the Texas Tax Code requires local taxing entities to state their
intent to participate in abatement agreements and to adopt guidelines and criteria for granting tax
abatements; 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 law 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 January 27, 2025, the City Council reauthorized existing Reinvestment Zone
2020-1 and renamed it Reinvestment Zone 2025-1; and
WHEREAS, City Council has revised and readopted the Guidelines for the Program several
times, the most recently on May 12, 2025 via Resolution No. 2025-025;
WHEREAS, pursuant to Texas Tax Code Sec. 31.2.002(c), guidelines and criteria for tax
abatements are effective for two years from the date adopted; and
WHEREAS, the City Council conducted a public hearing at its regular meeting on January 12,
2026 as required by law wherein the public was invited to comment on renewing the the City's
intent to reauthorize the residential tax abatement program within the Program and to readopt the
current Guidelines; and
WHEREAS, having considered testimony provided at said public hearing, the City Council
continues to desire to participate in the Program Area subject to the Guidelines;
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 and are incorporated herein for all purposes.
Section 2. The City hereby elects to be eligible to participate in a residential tax abatement
program in the Program Area subject to the the Guidelines and Criteria for the 5 in 5 Housing Infill
Redevelopment Program for Residential Tax Abatement Program attached hereto and incorporated
herein as Exhibit "A" and readopted hereby.
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 12th day of January, 2026.
���1ltttlllf!/��
Y pF/�r'�.
ATTEST:
jce Ellis City Clerk
APPROVED AS TO FORM:
Stephaliie H. Harris, City Attorney
..._
Mihir Minkal, Mayor
Exhibit A
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PL -INFO -0007 (rev 05/12/25)
5 IN 5 MOUSING INFILL DEVELOPMENT PROGRAM GUIDELINES,
CRITERIA & APPLICATION FORM CITY OF PARIS, TEXAS
Revised Mpy 1 2025
1. 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. The City further seeks to
ensure that new construction within the Program Area and undertaken in connection with the Program is
consistent with existing housing within the neighborhood in which it is being built so as to provide for a
pleasant aesthetic for both current and new residents in the area.
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 interested builders to identify parcels from a pool of tax sale lots in trustee
status to develop a list of properties that will be suitable for the construction of new dwelling units. This
may consist of single-family, two-family, medium density, or high-density residences. Prior to any
construction occurring from which the builder is seeking incentives, the 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
Page 1 of 7
/
6
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PL -INFO -0007 (rev 05/12/25)
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 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.
Neighborhood Uniformity — Consistency or similarity in the characteristics of homes, properties, and
overall design within a specific neighborhood, primarily concerned with maintaining consistency and
cohesion in architectural styles within a given street, block or larger area.
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.
Page 2 of 7
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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.
111. ELIGIBILITY AND_GUIDELINES
Real property is determined eligible under this policy as provided in the Definitions. If property is eligible,
an Applicant may apply for an Agreement to receive incentives provided for in this policy. For tax
foreclosed properties, all taxing jurisdictions shall be required to sign off on the low-cost land sale
according to the provisions of State Law prior to transfer of the property to the applicant.
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
805vo 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. Examples of acceptable architectural styles may be
found in Appendix A attached hereto_ Applicants are advised to consult the photographs when
completing their designs to determine whether a given style is consistent with the homes in the
immediate area of any parcel upon which Applicant wishes to build. [Appendix A to be added at a
later date.] The City may deny approval to any design, even if consistent with an example in Appendix
A, if it is not consistent with structures in the surrounding neighborhood of the particular parcel.
4. No zoning change unless there is a substantial change in neighborhood or compatible with the future
land use map.
5. Neighborhood Uniformity —Applicants will submit proposed designs for each dwelling unit sought to
be built as part of the Agreement. Such designs must bear Neighborhood Uniformity in mind and must
conform in basic architectural style to the existing homes in the area in which the structures are to be
built. A design for one neighborhood may not be appropriate for another neighborhood in which the
Applicant seeks to build, so a tailoring of designs to individual neighborhoods is required. No flat or
or shed -type roof lines will be permitted. Submitted designs are subject to the approval of the City,
and once approved, the Applicant/developer/builder/may not deviate from those designs without
prior written approval of the City.
Page 3 of 7
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IV- Incentives -The incentives set forth above are -available as follows:
incentive Table
[Incentives -Single-FamilyY^
-I[7uplex ;Multi -Family
.... ry _ ,.
Low -Cost �% I
Residential Lots
iax Abatement =V5 -year at 100% :3 -year at 100% 3 -Year Decreasing
ear 1: 100%
Fear 2: 75%
ear 3: 50%
)Reduced Building ' 100% X100% for sprinkled X
`Plan Review # "building
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teduced Permit 1009`0
=ees
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ater/Sewer tap
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50% non -sprinkled
building
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building i
an -sprinkled
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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 safe of the
foreclosed property, but the City can only guarantee a low cost of its share. As noted herein, the City will
only convey such properties for the construction of single-family 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.
Page 4 of 7
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The abatement will become effective on January 1st of the year following issuance of a Certificate of
Completion following final construction inspection. As provided in the Act, a tax abatement may only be
granted for the value of the Residential Improvements which exceed the base year value of the property
and which are listed in an Agreement between the City of Paris and the applicant, subject to such
limitations as the City of Paris may require. The base value will be set as of January 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 labor - The Applicant will be entitled to reduced rates for water
and sewer tap labor fees, 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.
Page 5 of 7
V, APPLICATION PROCEDURES
PL -INFO -0007 (rev 05112/25)
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.
S. 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.
Page & of 7
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PL -INFO -0007 (rev 05112/25)
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.
S. 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.
Page & of 7
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Item No. 9
Memorandum
TO: Mayor, Mayor Pro -Tem & City Council
Rose Beverly, City Manager
FROM: Jon McFadden, Public Information Officer
SUBJECT: Designation of Lake Crook as a Registered Texas Historic Landmark
DATE: April 7, 2026
BACKGROUND: Local historian Mr. Marvin Gorley recently offered to prepare and submit an
application to the Texas Historical Commission for Lake Crook and the surrounding watershed to
be listed as a Registered Texas Historic Landmark. Noting a lengthy partnership for the
improvement and use of Lake Crook between the City, the Lamar County Chamber of Commerce,
and the Visitors and Convention Council, the V and CC will supply the application fee.
Mr. Gorley plans to attend the meeting and is willing to address any questions that may arise.
STATUS OF ISSUE: The application is ready for submission if the council approves the
resolution.
BUDGET: Application fees to be provided by the V & CC.
RECOMMENDATION: Approve the resolution in support of the application.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A
PROPERTY OWNER AUTHORIZATION FORM RELATED TO OBTAINING
HISTORIC LANDMARK STATUS FOR LAKE CROOK; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, for over a century, Lake Crook has played a major part in the long
history of the City, serving as both as a water source and as a recreational area for
generations of residents and visitors; and
WHEREAS, Marvin Gorley, a citizen of the City, is leading an effort to have the Lake
declared a historic landmark by the Texas Historical Commission; and
WHEREAS, as part of the application, the City, as owner of the property, must
voluntarily authorize designation;
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 and are incorporated herein by reference for all purposes.
Section 2. That the City Council of the City of Paris, Texas hereby voluntarily
seeks historic landmark status for Lake Crook and hereby authorizes the City Manager,
Rose Beverly, to execute any and all documents in furtherance of same, including but not
limited to the "Recorded Texas Historical Landmark: Property Owner Authorization"
attached hereto as Attachment A.
Section 3. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 13th day of April, 2026.
Mihir Pankaj, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
TEXAS HISTORICAL COMMISSION
ATTACHMENT A
RECORDED TEXAS HISTORIC LANDMARK
PROPERTY OWNER AUTHORIZATION
This form does not constitute designation of the building, structure, or resource.
Official designation will occur following staff and commissioner review.
Please fill out attachment, print and sign. Return completed form along with proof of ownership
(in form of deed or tax appraisal records) to our offices via email -(markers a.thc.texas pv), fax,
or mail postmarked by 2 ap.m CDT, May 15, 2026
Property Name: Lake Crook
Physical Address: 3800 Old Lake Crook Road
City: Paris County: Lamar Zip: 75460-4564
Property reference number (Appraisal District/ Tax Officepropery number, etc.): LCAD N0.56689
Legal Description (Lot and block, metes and bounds, etc.):
A790 R RATTAN SURVEY, TRACT 1, ACRES 2717.0
Designation description (this is what the THC will have rei ew authority over, ex- `property
encompassing the bridge and abutments," "the 1936portron of the County Consolidated
High School building," `lie historic homestead, including the main house, bam, windmill,
smokehouse and water well, "etc.): Lake Crook and surrounding watershed.
The Recorded Texas Historic Landmark (RTHL) designation is awarded to historic structures deemed
worthy of preservation for their architectural integrity and historical associations. Designated
properties are afforded a measure of legal protection and become part of the recorded history of the
state's built environment.
Benefits of the RTHL designation:
■ Recognition that a property is of local, regional or state significance.
■ Protection for up to 90 days from exterior alterations, including demolition or relocation.
■ Ad valorem tax exemptions, where granted by local taxing authorities.
■ Inclusion in the Texas Historic Sites Adas.
■ Technical preservation assistance through the THC.
Responsibility of the property owner under the RTHL provision, as noted in Texas
Government Code section 442.006 (f):
,9 person may not damage the historical or architectural integzj of a sh7idure the commission has designated as a
Recorded Texas Historic Landmark nirbout noting the commission at least 60 (lays b fore the date on which the
action causing the damage is to begin. After receiving the notice, the commission pray waive the rrraitingperiod or; if the
commission determines that a longerfiviod (rill enhance the chance forpfeservation, it may regi+ire an additional waiting
period of not longer than 30 clays. On the expiration of the time limits imposed by this section, theperson may proceed,
but must proceed not later than the 180th day after the date on which notice wasgiven or - the notice is considered to have
axpbrd.
Page 7 of 10
TEXAS HISTORICAL COMMISSION
o Any proposed alterations beyond routine maintenance (replacing nails, screws, painting a
feature that was previously painted, etc.) needs to be formally submitted to the Texas Historical
Commission at least 60 days prior to the proposed start of construction.
o The submission must include a cover letter_ explaining what building it is, who the project
manager is, who the architect or contractor is, and who is doing the actual work on the
building. In addition, a full scope of work submitted along with any plan drawings that can be
provided are required. New materials that will be introduced to the building will also need to
be listed (i.e. what type of new windows, vinyl, wood, or aluminum).
o Photographs of the building in its current state and close ups of the project areas are
required to be sent in with all previously mentioned paperwork.
o Once the submission is received by the THC, the contents are reviewed within 30 days
and determined if the proposed work is appropriate. At this time, if Architect
Reviewers with the THC are concerned about the proposed work, then they may want
to schedule a site visit to talk with the building owners and architects.
o The'THC is allowed to extend the review period up to 90 if they feel there is improper
work being proposed.
o At the end of the THC review period the building owner may continue the work as they
choose. They are not required to follow the recommendations of the THC.
o If alterations to the building are detrimental to the historic integrity of the building the
THC may involve the Marker Department and remove the RTHL designation from the
building. However, the THC strives to work with owners as much as possible so this does
not happen.
Additionally:
■ The designation requires the public display of the RTHL marker. The marker is the property
of the State of "Texas and may not be removed or relocated without the prior permission of the
Texas Historical Commission.
■ RTIIL status is a permanent designation which is retained with the property even upon
transfer of ownership. Only the Texas Historical Commission may remove the designation.
■ Structures designated as RTHl.s do not have to be open to the public, but the marker must
be accessible to the public.
■ RTHL designation does not imply eligibility for federal tax incentives for rehabilitation.
certify that I am the legal owner or authorized representative of
the property owner noted herein, and further certify that I have read the information
regarding Recorded Texas Historic Landmarks and that I voluntarily seek the
designation for the property described herein. I further certify that I will comply with the
provisions of Texas Government Code S 442.006.
Name (print):
Mailing address:
City, state, zip:
Phone: Date:
Signature:
Page 8 of 10
TEXAS HISTORICAL COMMISSION
THE STATE OF TEXAS §
COUNTY OF §
BEFORE NIE, the undersigned authority, on this day personally appeared
known to me to be a credible person, whose name is above
subscribed, and said person swore to me the statements contained herein are true and correct.
SUBSCRIBED AND SWORN TO BEFORE AM on this day of
2026.
NOTARY PUBLIC in and for the STATE OF TEXAS
Texas Historical Commission
History Programs Division
P.O. Box 12276, Austin, TX 78711-2276
Phone 512/463-5853 TEXAS HIS70PICAL COMMISSION
war. J10 I , "', 0-1, " — /�. I. , '' �: - I .- , "
Page 9 of 10
Item No. 10
Memorandum
TO: Mayor, Mayor Pro -Tem, and City Council
Rose Beverly, City Manager
FROM: Steve Marriott, Finance Director
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
FISCAL YEAR ENDING SEPTEMBER 30, 2025
DATE: April 13, 2026
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 September 30, 2025.
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, 2025
ANNUAL COMPREHENSIVE FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
Fiscal Year Ended September 30, 2025
Prepared By
Finance Department
Steve Marriott, Director
CITY OF PARIS, TEXAS
Table of Contents
Year Ended September 30, 2025
INTRODUCTORY SECTION
Page Statement
Letterof Transmittal ............. . .... , . , ............... , ............. , ......... . ... , , ........ I-1
City of Paris Organizational Chart .................... ......... . .. . ............... .... . .. .. ......... 1-7
List of Elected and Appointed Officials. .— . ...... .. . . . ... . ... ........ ... . . . .......... . ....... I-8
FINANCIAL SECTION
Independent Auditors' Report...................................................... ..................
Management's Discussion and Analysis .. . . ................. ... ................ .... . ............... .
Basic Financial Statements
.. . .. ... ... . .. . . 85 7
Capital Projects Fund............................................................................
Government -Wide Financial Statements
Nonmajor GovenunentalFunds.....................................................................
87
Statement of Net Position ................. ... . .... ... .......................... ..........
13
1
Statement of Activities.......................................................... ... .. .......
15
2
Fund Financial Statements
Special Revenue Funds.........................................................................
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 Fund ........................................ ....... ..........
23
7
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Fund .................. . ...
25
8
Statement of Cash Flows - Proprietary Fund ............................................... . ...........
26
9
Statement of Fiduciary Net Position - Fiduciary Fund ..................................................
28
10
Statement of Changes in Fiduciary Net Position - Fiduciary Fund ....... .................................
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........ . , ..
79
1
Texas Municipal Retirement System - Schedule of City Pension Contributions ..................... ............
80
2
Paris Firefighters' Relief and Retirement Fund - Schedule of Changes in Net Pension Liability and Related Ratios.....
81
3
Paris Firefighters' Relief and Retirement Fund - Schedule of City Contributions ................................
82
4
Texas Municipal Retirement System - Schedule of Changes in Total OPEB Liability and Related Ratios............
83
5
City of Paris Retiree Health Care Plan - Schedule of Changes in Total OPEB Liability and Related Ratios.... , ... , . ,
84
6
Combining and Individual Nonmajor Fund Statements and Schedules
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -
DebtService Fund................................................................ ..
.. . .. ... ... . .. . . 85 7
Capital Projects Fund............................................................................
86 8
Nonmajor GovenunentalFunds.....................................................................
87
Combining Balance Sheet - Nonmajor Governmental Funds .....................................
... ... 88 9
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds ..................................................
.. ....... 89 10
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual -
Special Revenue Funds.........................................................................
90 11
Capital Assets Used in the Operation of Governmental Funds -
Comparative Schedules by Source ................................. ........... ................
91 12
CITY OF PARIS, TEXAS
Table of Contents (Continued)
Year Ended September 30, 2025
Page Table
STATISTICAL SECTION ...... . ... . .. 92
Financial Trends
Net Assets/Position by Component ............. ............ . ................ . .......... . ....... . 93 1
Changes in Net Position .................................................... ... ...... ... ........ 95 2
Fund Balances of Governmental Funds ........................ . ........................ .. ..... . .... 99 3
Changes in Fund Balances of Governmental Funds ......................... ......... ... .............. 101 4
Revenue Capacity
Property Tax Levies and Collections...................................................... ,....,...,, 103 5
Property Tax Rates - All Direct and Overlapping Governments ............... . ..... . ....... .. ........... 105 6
Assessed and Estimated Actual Value of Property ...... . ..... ............ ...... . ................. 106 7
Principal Property Taxpayers....................................................................... 108 8
Debt Capacity
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita ...................................... .. 110 9
Ratio of Outstanding Debt by Type................................................................... 111 10
Direct and Overlapping Governmental Activities Debt ............................................. . ... . . 113 11
Legal Debt Margin Information.............................................................. ..,.,.. 114 12
Revenue Pledged Coverage - Water and Sewer Revenue Bonds .................. . ...... .. ............... 115 13
Demographic and Economic Information
Demographic and Economic Statistics . ..................................... . .. . .. 116 14
Principal Employers............................................................................. 117 15
Operating Information
Operating Indicators by Function..... „ .............................. . ....... ..... .......... ......... 118 16
Capital Asset Statistics by Function ..................................................... ... .. ....... 120 17
Building Permits at Market Value ................................................. ..... .. . ,... , .. 122 18
Full -Time Equivalent City Government Employees by Function. . ...... .. .. .... ...... . .. . ............ . .. 123 19
CONTINUING DISCLOSURE INFORMATION
Continuing Disclosure Information .............. .................................. 125
INTRODUCTORY SECTION
11101W J��MMN
i�lJl
March 20, 2026
Mayor Mihir Pankaj
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, 2025.
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, 2025, 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- I
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
25,037.
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 11,867.
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 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 including an 8 -court state-of-the-art pickleball outdoor
facility and a 16,000 sq. ft. lit symmetrical asphalt pump track.
I-2
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 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 2025-26 reflect a 4.71% increase
over the 2024-25 values. Building permits for new residential and commercial constriction were valued at $70,034,252 for
fiscal year 2024-25. This activity will be reflected in next year's taxable values.
Sales taxes for 2024-25 increased from the prior year by 5.30%. Sales taxes for 2025-26 on a cash basis were 11.6% above the
2024-25 level as of January 31, 2026.
Hotel occupancy taxes were down 7.03% compared to 2023-24. This decrease was driven by the closure of one hotel due to a
remodel.
Franchise fees for 2024-25 were up 1.01% compared to the previous year. This is an immaterial amount.
The City of Paris, Paris Economic Development Corporation, and the Lamar County Chamber of Commerce have been actively
recruiting new business to the area as well as supporting already existing businesses. PEDC has several active incentive
commitments in regard to its recruitment of new industry and support of existing industry. There are currently incentives totaling
$1,060,654 involving Lions Head, Universal Fabricating, Rodgers -Wade, and Ametsa.
General Fund receipts equaled 110.91% of the budget. General Fund expenditures were 103.12% of the budget. For the 2025-
26 fiscal year, the City Council adopted a tax rate of .47239 cents per $100 of value. This rate is $0.01119 cents higher than the
previous year and allows maintenance of all services at their current levels and funds all required interest and sinking funds.
Taxable property value increased 4.74%.
Long-term Financial Planning -and Relevant Financial Policies
The City continues to exercise its long-range financial plan. The City forinalized 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 2025.
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
1-3
water and sewer infrastructure improvements. At the same time a small low interest $2,900,000 Certificates of Obligation 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 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.
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 completed. 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 partnership agreement 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 people's 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 2711 day of the last month prior to the beginning of the
fiscal year. Generally, appropriations are legally adopted at the department level. Budgetary controls are maintained at the
major category of expenditure level within each operating division. All anticipated expenditures are budgeted for control
purposes. Capital project funds are appropriated on a project -by -project basis. Expenditures and/or expenses are directly
monitored by the City Council through financial reports provided to them.
I4
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 09-30-25:
Issue
2013 C.O. (TWDB)
2016 G.O. Bonds
2017 G.O. Bonds
2018 G.O. Bonds
2020 Tax and Rev. C.O. (Civic Center)
2020 G.O. Refunding Bonds
2020 Tax Notes
2021 Tax and Rev. C.O.
2022 GO Pension Bonds
2022 Water & Sewer System Rev, Bds.
2023 GO Refunding Bonds
2024 Tax and Rev. C.O.
2025 Tax Notes
Financed Purchases-Firetrucks
Total
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
Tax Supported
Supported
Fund Maturity
Rating Insured
$ -
$ 1,110,000
06-15-32
N/A
-
5,465,000
12-15-36
Aa3
6,510,000
-
06-15-37
Aa3
-
390,000
06-15-28
Aa3
-
785,000
06-15-30
N/A
1,015,000
-
12-15-29
Aa3
195,000
-
06-15-26
N/A
12,005,000
26,770,000
12-15-50
Aa3
-
10,390,000
06-15-42
Aa3
-
26,020,000
06-15-51
Aa3
20,120,000
-
12-15-43
Aa3
-
42,790,000
06-15-54
Aa3
3,995,000
-
06-15-32
Aa3
110,931
-
01-28-26
N/A
$ 43,950,931
$................_..._....._....._.... .................
113,720,000
The City Charter requires an annual audit to be made of the accounts, financial records, and transactions of all administrative
departments of the City by a certified public accountant selected by the City Council. The requirement has been complied with,
and the Independent Auditors' Report has been included in this report.
I-5
Acknowledgment
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,
Steve Marriott
Director of Finance
I-6
z
0
Z
NO
0
LL
0
U
I
List of Elected and Appointed Officials
Elected Officials
Mihir Pankaj — Mayor
Gary Savage — Mayor Pro Tem
Shatara Moore
Mickey Ellis
Rebecca Nonnent
Alix Putnam
Tracy Attebury
AJp,gj ted_Officials
Rose Beverly — City Manager
Steve Marriott, CPFO — 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
Osei Amo-Mensah — Planning and Development
Danny Rowell — Director of Public Utilities
Thomas McMonagle — Fire Chief
I-8
FINANCIAL SECTION
Is MCCLANAHAN
H
INDEPENDENT AUDITORS' REPORT
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
Opinions
1400 W. Russell
Bonham, TX 75418
903-583-5574
Fax 903-583-9453
We have audited the accompanying financial statements of the governmental activities, the business -type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City
of Paris, Texas (the City), as of and for the year ended September 30, 2025, 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, as of September 30, 2025, and the
respective changes in financial position and, where applicable, cash flows thereof and the 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.
Our responsibilities under those standards are further described in the Auditors' 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.
Change in Accounting Principle
As discussed in Note I. J., the City adopted new accounting guidance, GAS13 Statement No. 101, Compensated
Absences. Our opinions are not modified with respect to this matter.
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 financial statements that are free
from material misstatement, whether due to fraud or error.
OLMES , LI.P
xth St. SE
George H. Struve, CPA
Certified Public Accountants
Pads,� TX 75460
Debra J. Wilder, CPA
903-784-4316
Teffany A. Kavanaugh, CPA
Fax 903-784-4310
April J. Hatfield, CPA
Brittany L. Martin, CPA
304 W. Chestnut
Denison, TX 75020
Steven W. Mohundro, CPA,
903-465-6070
of Counsel
Fax 903-+465-6093
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
Opinions
1400 W. Russell
Bonham, TX 75418
903-583-5574
Fax 903-583-9453
We have audited the accompanying financial statements of the governmental activities, the business -type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City
of Paris, Texas (the City), as of and for the year ended September 30, 2025, 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, as of September 30, 2025, and the
respective changes in financial position and, where applicable, cash flows thereof and the 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.
Our responsibilities under those standards are further described in the Auditors' 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.
Change in Accounting Principle
As discussed in Note I. J., the City adopted new accounting guidance, GAS13 Statement No. 101, Compensated
Absences. Our opinions are not modified with respect to this matter.
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 financial statements that are free
from material misstatement, whether due to fraud or error.
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
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 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, 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 position 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
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.
Honorable Mayor,
Members of the City Council,
and City Manager
City of Paris, Texas
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 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 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 material misstatement of the other information exists, we are required to describe it in our report.
WcClanahan andMolmes, LLQ'
Certified Public Accountants
Paris, Texas
March 20, 2026
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, 2025. 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
• For the 2024-25 fiscal year, the City decreased its tax rate to 0.46120 per $100 of valuation. Both the O&M rate and
the debt rate decreased.
• City-wide revenues this year fell short of City-wide expenses by $1,119,176 whereas in the previous year revenues
exceeded expenses by $14,414,535. Expenses in the current year were $14,380,171 higher than the prior year. This
increase was driven by increased pension expense due to a plan change and increased salaries.
• At the end of the fiscal year, the unassigned fund balance for the general fund was $28,248,523 or 74.61% of total
general fund expenditures. The prior year unassigned fund balance was $25,624,971 or 71.07% of general fund
expenditures.
• At the end of the fiscal year, the net position of the proprietary funds was $75,513,716 compared to $72,753,918 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 finds 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. Nomnajor 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 fiand 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 in 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
and fund 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 $112,329,940 at the close of the most recent fiscal year. This compares to
$118,036,312 for the previous year. This was a 4.83% decrease in net position.
By far, the largest portion of the City of Paris' net position falls in net investment in capital assets ($80,122,922 or 71.33%) and
is used by the City of Paris to provide services to citizens and is not available for future spending. The next largest portion of
net position is in the unrestricted category ($24,735,983 or 22.02°/x) and may be used to meet the government's ongoing
obligations to citizens and creditors. The remaining net position ($7,471,035 or 6.65%) is restricted in its use.
City of Paris
Net Position
Cel
Governmental Activities
._._.._._ ....... ..... �.1 ..._,....
Busmess T�I!e Activities ...
........
Total
a
...._
2025.. _
_..__ ..w 2024 ...............
_.....2025.. .....,
2024
....... .2025.
2024
Assets
Current and Other Assets
$ 45,442,936
$ 44,544,629
$ 84,094,065
$116,732,992
$ 129,537,001
$164,527,338
Capital Assets
P
48918571 -----!-_.1..... .
41 341 902
�
31 863,161
1....w.,,..
95 883,140
.. I--
180,781 732
_,....__...... _
133 975x325
_1
Total Assets
94 361 507
85,886,531
_.,........__
215,957,226
16,132
2]2,6 �-__
3102318 733
.
298 502 663
w„ w
Deferred Outflows
Related to Asset
Retirement
-
-
5,125,634
5,118,012
5,125,634
5,118,012
Related to Pension
2,210,697
3,193,734
363,789
500,265
2,574,486
3,693,999
Related to OPEB355
767
477,043
.............15251r .._.
23 310 _
371 018
_ ... ..,,.z
500 35.3..,.
Total Deferred Outflows
2 566 464
3,670,777
52504,674
5,641,587
8,071,138
9312,364
Long -Term Liabilities
Outstanding
52,243,266
37,807,969
136,538,191
138,512,970
188,781,457
176,320,939
Other Liabilities
....... 3,907 872
2,436,63l_
9198,893
6 839 417 w
13x106 765
9276048 .w.
Total Liabilities
56 151 138
402244„600
145 737 084
145x352,387
201 888 222
185,596 987
Deferred Inflows
Related to Pensions
1,297,172
1,051,786
179,495
106,231
1,476,667
1,158,017
Related to OPEB
645,323
1,066,319
31,605
45,183
676,928
1,111,502
Related to Leases
2,018,114
1,912,209
......,,.
_ ...r ........ ..
2,018 114
._........,
1 912 209
.......... ........
Total Deferred Inflows
3,960,609
4,030,314
211,100
151,414
4,171,709
4,181,728
Cel
Net Position
General Revenues & Proawam Revenues
Net Investment in
Increase
2025 _
....... 2024w mm _. _ _!Decrease)...,
Capital Assets
16,803,202
11,085,414
63,319,720 10,791,448 80,122,922
21,876,862
Restricted
7,471,035
8,304,997
- - 7,471,035
8,304,997
Unrestricted
12 541,987.
25,891,983
12,193,996 61 962,470 24 735,983
87,854,453
Total Net Position
$ 36,816,224
..ww....._e�.-
$ 45,282,394
�m ...
$ 75,513,716 $ 72,753,918 $ 112,329,940
ww.-.....::�� mow_.._
$118,036,312
.,.�.....�,..
An additional portion of the City of Paris' net position ($7,471,035 or 6.65%) represents resources that are subject to external
restrictions on how they might be used. The balance of unrestricted net position ($24,735,983 or 22.02%) 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 decreased the City of Paris' net position by $4,376,164 or 10.62% during the current fiscal year. This
decrease was caused by the reclassification of bond proceeds. Total general and program revenues were up $631,837 (1.37°/x).
The largest contributors to this increase were sales taxes and contributed capital.
General Revenues & Proawam Revenues
Increase
2025 _
....... 2024w mm _. _ _!Decrease)...,
.....
Property Taxes
$ 11,216,999
$ 11,121,845 $
95,154
Sales Taxes
11,402,451
10,828,578
573,873
Franchise Taxes
4,748,333
4,697,982
50.351
Hotel Occupancy Taxes
1,349,654
1,451,801
(102,147)
Unrestricted Investment Earnings
1,616,529
1,968,083
(351,554)
Contributed Capital
3,506,894
1,541,522
1,965,372
Miscellaneous
1,291,966
1,519,547
(227,581)
Gain on Sale of Capital Assets
116,666
-
116,666
Program Revenues
11 272141
12f760s438_
�1488r297Y „
_ 46,521,633
$....
631,837__.,
The following table provides a summary of the City's operations for the years ending 2025 and 2024 for both governmental
and business -type activities.
City of Paris
Changes
in Net Position
Governmental Activities
Business- p Ac�yities
.... Total
. . ...........
.. .......
--- — ---- �E4
2-0-25
2024
2025
2024
-------- - --
Revenues
Program Revenues
Charges for Services
$ 10,662,449
$ 10,055,565
$ 20,741,292
$ 20,935,627
$ 31,403,741
$ 30,991,192
Operating Grants and
Contributions
551,903
1,467,445
117,103
468,281
669,006
1,935,726
Capital Grants and
Contributions
57,789
1,237,428
-
188,074
57,789
1,425,502
General Revenues
Property Taxes
11,216,999
11,121,845
1,345,979
1,145,302
12,562,978
12,267,147
Sales Taxes
11,402,451
10,828,578
-
-
11,402,451
10,828,578
Franchise Taxes
4,748,333
4,697,982
4,748,333
4,697,982
Hotel Occupancy
Taxes
1,349,654
1,451,801
-
-
1,349,654
1,451,801
Unrestricted
Investment Earnings
1,616,529
1,968,083
3,855,749
5,133,463
5,472,278
7,101,548
Capital Contributions
3,506,894
1,541,522
-
-
3,506,894
1,541,522
Gain on Sale of Capital
Asset
116.666
-
-
116.666
-
Miscellaneous
547_
25,247
1,291,966
. . ..... ... . .
1,519,547 .
. . . ..... . . . .................. . . ....
Total Revenues
4 §15. 21.1,633 -
45,889,796
26,095,370
27870747
72,607,003
. . . ..................... . . .... ...........
73,760,545
Expenses
General Government
7,150,991
6,222,625
7,150,991
6,222,627
Public Safety
21,777,271
13,761,148
21,777,271
13,761,148
Public Works
10,836,898
9,819,300
10,836,898
9,819,300
Health
8,355,465
6,606,156
8,355,465
6,606,156
Culture and Recreation
1,266,589
988,985
1,266,589
988,985
Other
-
-
-
-
Cox Field Airport
999,324
1,061,018
999,324
1,061,018
Interest on Long -Tenn
Debt
228,305
262,654
228,305
262,654
Water and Sewer
7
-
23,111,336
. -111_- ...... .. .... .
20,624,122
23,111,336
20,624,122
.. . .... 1-1
Total Expenses
..........................
50,61�,843
. --11"...........".1-1-
38,721,886
. . ............ .
23,111,336
- — - —
20,1624,122
73,726� 179
59,346 010
..............
Increase (Decrease) in
Net Position Before
Transfers
(4,093,210)
7,167,910
2,974,034
7,246,625
(1,119,176)
14,414,535
Transfers/Special Items
. ..
.. . ....... 28 54
23,005,896
...........
- - ----------__,,,w._.__
-
........ ............ ...... .
Increase(Decrease) in
Net Position
(4,376,164)
(15,837,986)
3,256,988
30,252,521
(1,119,176)
14,414,535
Net Position, Beginning
45,282,394
60,906,062
72,753,918
42,501,397
118,036,312
103,407,459
Restatement
AM90,006�
1AKjj?_qj_
.. _.J96)
1j,587,
214318
Net Position, Ending
$ 367816 -224
_�14jl
45,282 ,394
$ 75,513,716
. .
...... . ...... . ......... . ....
.... $ 72,753,918
$ 112,329,940
$118,036,312
Business -Type Activities
Business -type activities increased the City of Paris' net position by $3,256,988 during the current fiscal year. Key elements of this
increase are as follows:
• Charges for services for business -type activities decreased by $194,335, or 0.93%. This decrease was driven by a 2.79%
decrease in water sales and taps, a 1.42% decrease in sewer charges and taps, and a 19.69% decrease in service charges.
8
These decreases were partially offset by increases in sanitation billing fees, industrial surcharges- and miscellaneous
revenues.
• Operating expenses increased by $1,916,239, or 11.79%. The largest factor in this change was an increase personnel
expenses of $2,013,413, or 54.62%, which was cause by an increase in pension expenses related to a plan change of
$1,695,901.
• Nonoperating revenues decreased by $1,973,943, or 83.08%. The largest factor in this change was a decrease in the fair
value of investments of $1,817,055, or 132.35%,.
Financial Analysis of the Government's Funds
As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements.
Governmental Funds
The focus of the City of Paris' governmental funds is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City of Paris' financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Total Assets
Total Liabilities
Deferred Inflows of Resources
Fund Balances
Nonspendable
Inventories
Prepaid Items
Long -Term Receivables and
Interfund Loans
Permanent Fund Principal
Restricted For
Debt Service
Capital Projects
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
2025
2024
$ 44041,052 $
.....w.�_ �. - m�.�.
43,064,955
�......����,
3,590,039.
_..................... 2,641 X563
222
....2,63 l..e.. � .....,
373,871
354,666
234,383
382,969
1,087,241
3,263,522
113,656
108,145
3,320,322
2,994,786
1,318,278
2,963,117
1,548,610
1,134,300
916,251
841,645
253,918
263,004
80,362
90,213
264,035
252,128
_... 28,248,523 w
25,624,971
37,759,450..._
38,273,466
$ 44,041,052 $
43,064,955
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund balances of
$37,759,450. Approximately 74.81% of this total amount ($28,248,523) constitutes unassigned fund balance, which is
available for spending at the government's discretion.
9
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 ($113,656), 2) pay debt service ($3,320,322), 3) inventories ($373,871),
4) law enforcement ($1,548,610), 5) library ($80,362), 6), Public Education ($916,251), 7) capital projects ($1,318,278); 8)
Community Development ($517,953), 9) Prepaid Items ($234,383), and 10) Long -Term Receivables and Interfund Loans
($1,087,241).
Revenues
Expenditures
Deficiency of Revenues Over
(Under) Expenditures
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances -Beginning
Restatement
Fund Balances -Ending
General Fund
Governmental Funds
Revenues, Expenditures, and Changes in
Fund Balances
2025 2024
$ 42,906,533 $ 44,293,637
7 40,517,883
.�_...•___...m_47 709.�26w._... .........�_.......a_......w....
(4,802,734) 3,775,754
... ........._.. 4,28 8>7 18 m .. ..............
(105,360)
(514,016) 3,670,394
38,273,466 34,388,754
---------- ..... 214,318
$ 37,759450 $ 38 273,466
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 $28,248,523 ($25,624,971 the previous year), while total fund balance reached $30,763,578
($30,372,365 the previous year). 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 74.60% of total general
fund expenditures, while total fund balance represents 81.25% of that same amount.
The fund balance of the City of Paris' general fund increased by $391,213 during the current fiscal year. Key factors of this
increase are as follows:
• Total revenues decreased by $465,637, or 1.20%. The largest factor in this decrease was a reduction in
intergovernmental revenues due to COVED funding received in the prior year.
• Total expenditures increased by $1,806,608, or 5.01%. The largest factor in this increase was an increase in public
safety expenditures.
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 $1,146,151 ($3,449,712 overspent the previous
year). This 3.12% variance was driven primarily by a large increase in EMS bad debt expense. General fund revenues were
over budget by 10.91% or $3,777,377 ($7,570,855 last year). Higher than expected EMS billings, sales tax collections and
other revenues account for most of 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 $1,313,644 ($2,958,692 last year). This
decrease was due to total expenditures exceeding interfund transfers and other revenues. 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 $3,419,675 ($3,089,892 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 $329,783
($1,087,170 increase the previous year). The government enacts a dedicated property tax for debt service at the beginning of
each fiscal year. This tax produced revenues of $2,683,145 in the current fiscal year ($2,828,770 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 $12,193,996 ($61,962,470 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, 2025
amounts to $179,679,514 ($135,918,276 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
Additional information on the City of Paris' capital assets can be found in note IV. D. of the Notes to the Financial Statements_
11
Net Capital Assets
Governmental Activities
Business Te Activities
.....
....._.. _. Total
_ .... ... ........
_. ....
2025
2024
2025
2024
_2025
2024
$ 6,142,418
$ 6,142,418
$ 339,620
$ 339,620
$ 6,482,038
$ 6,482,038
10,497,435
10,946,218
53,560,096
55,056,368
64,057,531
66,002,586
3,821,440
3,994,562
-
-
3,821,440
3,994,562
8,051,653
4,396,008
3,450,600
2,781,716
11,502,253
7,177,724
17,242,431
14,312,220
-
-
17,242,431
14,312,220
2,169,152
393,403
71,340,277
34,455,719
73,509,429
34,849,122
_..,,,,__..
_...__.
_.w._.. 37064 392
3,100 024.
_...3,064,392
3100,024 I
$47,924,529
$40,184,829
$131,754,985
$95733,447
$179679514
mm$1355 918,276mm
Additional information on the City of Paris' capital assets can be found in note IV. D. of the Notes to the Financial Statements_
11
Long -Term Debt
The City of Paris has total debt outstanding in the amount of $157,670,931 (includes financed purchases). Of this amount,
$43,950,931 comprises debt being paid for by property tax, and $113,720,000 represents bonds being paid for by water and
sewer revenues.
Paris' bond debt decreased by $1,265,000 during the fiscal year. There was an issuance of $3,995,000 2025 Tax Notes;
however, the issuance was offset by principal payments made on 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 $0.46120 per $100 valuation
for the 2024-25 fiscal year. This rate was broken down into $0.31292 per $100 valuation for operations and $0.14828 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 9.89% 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 5.50% in the coming year.
• New construction amounted to 31 residential units and 9 commercial units.
• Local population growth is expected to be minimal.
• The debt tax rate is expected to decrease $0.00778 per $100 of value for debt services while the O&M rate is expected
to decrease $0.00884 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 2025-26.
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
Investors
Issue
Tax Supported
Supported
Fund Maturity
Rating Insured
2013 C.O. (TWDB)
$ -
$ 1,110,000
06-15-32
N/A
2016 G.O. Bonds
-
5,465,000
12-15-36
Aa3
2017 G.O. Bonds
6,510,000
-
06-15-37
Aa3
2018 G.O. Bonds
-
390,000
06-15-28
Aa3
2020 Tax and Rev. C.O. (Civic Center)
-
785,000
06-15-30
N/A
2020 G.O. Refunding Bonds
1,015,000
-
12-15-29
Aa3
2020 Tax Notes
195,000
-
06-15-26
N/A
2021 Tax and Rev. C.O.
12,005,000
26,770,000
12-15-50
Aa3
2022 GO Pension Bonds
-
10,390,000
06-15-42
Aa3
2022 Water & Sewer System Rev. Bds.
-
26,020,000
06-15-51
Aa3
2023 GO Refunding Bonds
20,120,000
-
12-15-43
Aa3
2024 Tax and Rev. C.O.
-
42,790,000
06-15-54
Aa3
2025 Tax Notes
3,995,000
-
Financed Purchases-Firetrucks
110,931
-
..._.
01-28-26
N/A
Total
_...$.. 43,950 w..._..
931
....1 .
$ 13'. ,
720,000
Paris' bond debt decreased by $1,265,000 during the fiscal year. There was an issuance of $3,995,000 2025 Tax Notes;
however, the issuance was offset by principal payments made on 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 $0.46120 per $100 valuation
for the 2024-25 fiscal year. This rate was broken down into $0.31292 per $100 valuation for operations and $0.14828 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 9.89% 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 5.50% in the coming year.
• New construction amounted to 31 residential units and 9 commercial units.
• Local population growth is expected to be minimal.
• The debt tax rate is expected to decrease $0.00778 per $100 of value for debt services while the O&M rate is expected
to decrease $0.00884 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 2025-26.
Requests for Information
This financial report is designed to provide a general overview of the City of Paris' finances for all those with an interest in the
government's finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Office of the Finance Director, 135 S.E. First Street, City of Paris, Texas 75460.
12
Assets
Cash and Cash Equivalents
Investments
Receivables (Net of Allowance
for Uncollectibles)
Note Receivable
Lease Receivable
Intergovernmental Receivable
Inventories
Prepaid Items
Net Pension Asset
Restricted Assets
Cash and Cash Equivalents
Investments
Due from Component Unit
Water Rights (Net of
Accumulated Amortization)
Capital Assets Not
Being Depreciated
Land
Construction in Progress
Capital Assets (Net of
Accumulated Depreciation)
Buildings and System
Improvements Other Than
Buildings
Machinery and Equipment
Infrastructure
Right -to -Use Assets, (Net of
Accumulated Amortization)
Total Assets
Deferred Outflows of Resources
Deferred Outflows Related to Asset
Retirement Obligation
Deferred Outflows Related to Pensions
Deferred Outflows Related to OPEB
Total Deferred Outflows of Resources
CITY OF PARIS, TEXAS
Statement of Net Position
September 30, 2025
Statement 1
The accompanying notes to the financial statements are an integral part of this statement.
13
Component
Prim�overnment
Unit
Governmental
Business -Type
Economic
Activities
Activities
Total
Development
$ 12,671,982
$ 11,702,895
$ 24,374,877
$ 1,994,382
15,110,907
928,783
16,039,690
2,471,497
5,807,727
3,585,900
9,393,627
661,732
1,967,986
-
1,967,986
-
2,137,305
-
2,137,305
-
786,043
-
786,043
373,871
973,594
1,347,465
-
234,383
96,524
330,907
6,588
1,494,133
-
1,494,133
-
4,308,024
14,932,652
19,240,676
526,214
51,873,717
52,399,931
24,361
-
24,361
-
3,064,392
3,064,392
-
6,142,418
339,620
6,482,038
6,567,296
2,169,152
71,340,277
73,509,429
-
10,497,435
53,560,096
64,057,531
3,821,440
-
3,821,440
-
8,051,653
3,450,600
11,502,253
6,105
17,242,431
-
17,242,431
-
994,042
108,176
- 1,102 218
-
94,361,507
215,957,226
310,318,733
11,707,600
-
5,125,634
5,125,634
-
2,210,697
363,789
2,574,486
355,767
15,251
371,018
2,566,464
5,504,674
8,071,138
The accompanying notes to the financial statements are an integral part of this statement.
13
The accompanying notes to the financial statements are an integral part of this statement.
14
CITY OF PARIS. TEXAS
Statement 1
Statement of Net Position
(Continued)
September 30, 2025
Component
Primaa
Government
- Unit ......,.
ov
Gernmental Business-Type
Economic
Activities
Activities-
Total
Develo anent
Liabilities
Accounts Payable and Other
Accrued Liabilities
3,477,163
6,598,768
10,075,931
348,619
Accrued Interest Payable
410,082
1,456,132
1,866,214
872
Due to Custodial Fund
20,627
-
20,627
-
Unearned Revenue
-
26,406
26,406
306,092
Customers' Deposits
-
1,117,587
1,117,587
-
Due to Primary Government
-
-
-
24,361
Noncurrent Liabilities
Due Within One Year
Compensated Absences
1,372,636
179,991
1,552,627
24,642
Bonds and Notes Payable
2,570,.931
2,725,000
5,295,931
131,322
Right-to-Use Liability
320,727
43,511
364,238
-
Due in More Than One Year
Compensated Absences
5,441,020
719,963
6,160,983
44,964
Bonds and Notes Payable
31,717,158
125,447,833
157,164,991
1,836,664
Right-to-Use Liability
579,947
47,204
627,151
-
Asset Retirement Obligation
-
5,888,748
5,888,748
-
Net Pension Liability
6,675,635
1,311,046
7,986,681
-
Total OPEB Liability
3,565,212
174,895
3,740,107
-
Total Liabilities
56,151,138
145,737,084
- 201,888,222
2,717,536
Deferred Inflows of Resources
Deferred Inflows Related to Pensions
1,297,172
179,495
1,476,667
-
Deferred Inflows Related to OPEB
645,323
31,605
676,928
-
Deferred Inflows Related to Leases
2,018,114
-
2,018,114
Total Deferred Inflows of Resources
3,960,609
211.100
4,171 709
-
Net Position
Net Investment in Capital Assets
16,803,202
63,319,720
80,122,922
6,573,401
Restricted for
Capital Projects
1,318,278
-
1,318,278
-
Debt Service
3,320,322
-
3,320,322
1,967,986
Law Enforcement
1,548,610
-
1,548,610
-
Public Education
916,251
-
916,251
Community Development
253,918
-
253,918
Permanent Library Funds
Nonexpendable
113,656
-
113,656
-
Unrestricted (Deficit)
12,541,987
12,193,996
24,735,983
448,677
Total Net Position
$ 36,816,224 $
75,513,716
$ 112,329,940
$ 8,990,064
The accompanying notes to the financial statements are an integral part of this statement.
14
7
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2
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
September 30, 2025
Total
Norunajor
Total
Debt
Capital
Governmental
Governmental
General
Service
Funds µ
Funds _NN Wmm
Assets
Cash and Cash Equivalents
$ 9,507,450
$ 3,326,399
$ 2,091,565
$ 2,054,592
$
16,980,006
Investments
15,526,214
-
110,907
15,637,121
Receivables (Net of Allowance
for Uncollectibles)
Accounts
2,437,680
-
-
80,082
2,517,762
Taxes
3,190,612
99,353
-
-
3,289,965
Leases
1,193,382
-
-
943,923
2,137,305
Notes
1,967,986
-
1,967,986
Intergovernmental Receivable
786,043
-
786,043
Inventories
371,899
1,972
373,871
Prepaid Items
234,383
-
-
234,383
Due from Other Funds
-
78,510
13,739
92,249
Due from Component Unit
24,361
-$-15,240,010
-
-
24,361
Total Assets
..........
$ 31504262
2,091,565
3,205,215
$
44,041,052
Liabilities, Deferred Inflows, and Fund Balances
Liabilities
Accounts Payable and Other
Accrued Liabilities
$ 2,674,920
$
$ 777,921
24,322
$
3,477,163
Due to Other Funds
112,876
-
112,876
Total Liabilities
2,787,796
777,921
24,322
1,590,039
Deferred Inflows of Resources
Unavailable Revenue - Property Taxes
588,862
84,587
-
-
673,449
Lease Related
1,099,774
-
-84-,587
918,340
2,018,114
Total Deferred Inflows of Resources
1,688,636
918,340
2,691,563
Fund Balances
Nonspendable
Inventories
371,899
1,972
373,871
Prepaid Items
234,383
-
-
234,383
Long -Term Receivables and
Interfund Loans
987,888
99,353
-
1,087,241
Permanent Library Funds
-
-
-
113,656
113,656
Restricted for
Capital Projects
4,634
-
1,313,644
-
1,318,278
Debt Service
-
3,320,322
-
-
3,320,322
Law Enforcement
-
-
1,548,610
1,548,610
Public Education
916,251
-
916,251
Community Development
-
253,918
253,918
Assigned
Library
80,362
80,362
Community Development
-
264,035
264,035
Unassigned
28,248,523-
28,248,523
Total Fund Balances
30,763,578
3,419,675
1,313,644
1,262,553
...
27,759,450
Total Liabilities, Deferred
Inflows and Fund Balances
$ 35240010
$ 3,504,262
2,091,565
$ 3,205,215
44,041,052
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, 2025
Amounts reported for governmental activities in the statement of net position are different because:
Fund Balances - Total Governmental Funds $ 37,759,450
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) 48,918,571
Other long-term assets are not available to pay for current period expenditures and, therefore,
are deferred or not reflected in the funds. 673,449
Long-term liabilities, including bonds payable and accrued interest, are not due and payable in the
current period and, therefore, are not reported in the funds. (42,412,501)
Included in noncurrent liabilities is the recognition of the City's proportionate share of the net pension asset
and liability required by GASB 68 in the amount of $1,494,133 and $6,675,635, respectfully, a Deferred Outflow
of Resources in the amount of $2,210,697, and a Deferred Inflow of Resources in the amount of $1,297,172. This
amounted to a decrease in Net Position of $4,267,977. (4,267,977)
Included in noncurrent liabilities is the recognition of the City's proportionate share of the total OPEB liability
required by GASB 75 in the amount of $3,565,212, a Deferred Outflow of Resources in the amount of
$355,767, and a Deferred Inflow of Resources in the amount of $645,323. This amounted to a decrease
in Net Position of $3,854,768. 13,854,768L
Net Position of Governmental Activities $ 36,816,224
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, 2025
The accompanying notes to the financial statements are an integral part of this statement.
18
Total
Nonmajor
Total
Debt
Capital
Governmental
Governmental
General
Service
Projects
Funds
Funds
Revenues
Taxes
Property
$ 8,579,420
$ 2,683,145
$ -
$ -
$ 11,262,565
Sales
11,402,451
-
-
-
11,402,451
Franchise
4,748,333
-
-
-
4,748,333
Hotel Occupancy
999,043
298,392
-
52,219
1,349,654
Licenses and Permits
602,742
-
-
-
602,742
Fines and Fees
420,585
-
-
26,535
447,120
Leases
93,454
-
-
101,132
194,586
Charges for Services
-
-
-
794,894
794,894
Investment Earnings
1,200,943
180,852
136,379
98,355
1,616,529
Sanitation
1,704,009
-
-
-
1,704,009
Health
7,096,592
-
-
-
7,096,592
Intergovernmental
609,314
-
-
14,511
623,825
Other
938,400
-
-
124,833
1,063,233
Total Revenues
38,395,286
3,162,389
136,379
1,212,479
42,906,533
Expenditures
Current
General Government
2,720,083
-
68,049
55,449
2,843,581
Public Safety
15,307,177
-
-
-
15,307,177
Public Works
8,001,178
-
-
45,499
8,046,677
Health
6,953,714
-
-
-
6,953,714
Culture and Recreation
895,601
-
-
14,843
910,444
Cox Field Airport
-
-
-
850,524
850,524
Other
2,188,518
-
-
-
2,188,518
Debt Service
Principal
482,020
1,430,000
-
6,517
1,918,537
Interest
33,638
1,247,409
-
633
1,281,680
Bond Issuance Costs
-
83,696
-
-
83,696
Capital Outlay
General Government
-
-
119,372
-
11.9,372
Public Safety
340,818
-
3,782,763
-
4,123,581
Public Works
382,820
-
1,993,252
-
2,376,072
Health
558,121
-
-
-
558,121
Cox Field Airport
-
-
-
147,573
147,573
Total Expenditures
37,863,688
2,761,105
5,963,436
1,121,038
47,709,267
Excess (Deficiency) of Revenues
Over (Under) Expenditures
531,598
401,284
(5,827,057)
91,441
(4,802,734
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, 2025
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
PjojLects
Funds
Funds —
Other Financing Sources (Uses)
Tax Notes Issued
-
4,233,296
-
4,233,296
Inception of Lease
153,791
-
-
32,714
186,505
Proceeds from Sale of Capital Assets
114,441
2,225
-
116,666
Transfers In
175,451
4,179,784
291,881
4,647,116
Transfers Out
(619,273)
(4,304,797)
-
(6,000)
(4,930,070)
Insurance Recoveries
35,205
-
-
35,205
Total Other Financing
Sources (Uses)
___L140,385
(71,501)
4,182,009
318 �595
4288,718
Net Changes
in Fund Balances
391,213
329,783
(1,645,048)
410,036
(514,016)
Fund Balances - Beginning of Year
30,372,365
3,089,892
2,958,692
1,852,517
38,273,466_
Fund Balances - End of Year
$ 30,763,578
3,419,675
$ 1,313,644
$ _2,262,553
$ 37,759,450
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, 2025
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) $ (514,016)
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/amortization expense. This is the amount by which capital outlays
exceeded depreciation/amortization in the current period. 4,069,775
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins,
and donations) is to decrease net position. 3,506,894
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in governmental funds. (45,564)
Accrued interest expense reported in the statement of activities does not require the use of
current financial resources and, therefore, is not reported as an expenditure in governmental
funds. (36,349)
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. (1,362,731)
Pension expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred. (7,986,968)
OPEB expenses are not reported as expenditures in governmental funds and contributions
after the measurement date are deferred. . 375,612
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. (2,382,817)
Change in net position of governmental activities (Statement 2) $ (4,376,164
The accompanying notes to the financial statements are an integral part of this statement.
20
The accompanying notes to the financial statements are an integral part of this statement.
21
CITY OF PARIS, TEXAS
Statement 6
Statement of Revenues, Expenditures, and Changes in
Fund Balance
Budget
and Actual
General Fund
Year Ended September 30, 2025
Budgeted
Amounts
Variance with
Original
Final
Actual
Final Budget
Revenues
Taxes
Property
$ 8,837,000
$ 8,837,000
$ 8,579,420
$ (257,580)
Sales
10,875,000
10,875,000
11,402,451
527,451
Franchise
4,865,100
4,865,100
4,748,333
(116,767)
Hotel Occupancy
1,000,000
1,000,000
999,043
(957)
Licenses and Permits
365,800
365,800
602,742
236,942
Fines and Fees
341,800
341,800
420,585
78,785
Leases
24,000
24,000
93,454
69,454
Investment Earnings
1,053,000
1,053,000
1,200,943
147,943
Sanitation
1,710,000
1,710,000
1,704,009
(5,991)
Health
4,485,000
4,485,000
7,096,592
2,611,592
Intergovernmental Revenues
657,409
657,409
609,314
(48,095)
Other
403,800
403,800
938,400
534,600
Total Revenues
34,617,909
34,617,909
38,395,286
3,777,377
Expenditures
General Government
Council
352,938
446,232
49,738
396,494
Manager
860,494
784,445
1,023,990
(239,545)
Attorney
410,911
428,318
399,260
29,058
Municipal Court
303,718
300,305
319,474
(19,169)
Clerk
237,983
227,423
219,309
8,114
Finance
692,323
833,696
831,615
2,081
Total General Government
2,858,367
3,020,419
2,843,386
177,033
Public Safety
Police
9,866,070
9,733,764
9,475,869
257,895
Fire
6,135,310
6,731,872
6,491,848
240,024
Total Public Safety
16,001,380
16,465,636
15,967,717
497,919
Public Works
Community Development
1,925,490
1,997,551
1,908,037
89,514
Engineering
766,017
436,110
431,712
4,398
Public Works
263,392
320,499
305,236
15,263
Parks and Recreation
1,551,260
1,573,186
1,503,398
69,788
Sanitation
1,852,793
1,829,753
1,85 8,454
(28,701)
Streets and Highways
1,600,511
1,459,850
1,405,644
54,206
Traffic and Public Lighting
524,160
596,126
544,230
51,896
Garage
490,023
447,604
432,038
15,566
Total Public Works
8,973,646
8,660,679
8,388,749
271,930
The accompanying notes to the financial statements are an integral part of this statement.
21
CITY OF PARIS, TEXAS
Statement of Revenues, Expenditures,. and Changes in Fund Balance
Budget and Actual
General Fund
Year Ended September 30, 2025
Expenditures (Continued)
Health
Culture and Recreation
Paris Band
Library Services
Total Culture and Recreation
Other
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Inception of Lease
Proceeds from Sale of Capital Asset
Transfers In
Transfers Out
Insurance Recoveries
Total Other Financing
Sources (Uses)
Net Changes in Fund Balance *
Fund Balance - Beginning of Year
Fund Balance - End of Year
Statement 6
(Continued)
Budgeted Amounts
Variance with
Original
Final
Actual
Final Budget
5,445,777
5,109,610
7,579,717
(2,470,107)
23,050
26,097
24,632
1,465
891,085
913,171
870,969
42,202
914,135
939,268
895,601
43,667
2,524,232 #
2,521,925 #
2,188,518
333,407
36,717,537
36,717,537
37,863,688
(1,146,151)
(2,099,628)
(2,099,628)
531,598
2,631,226
_
-
153,791
153,791
114,441
114,441
175,451
175,451
(75,000)
(75,000)
(619,273)
(544,273)
50,000
50,000
35,205
(14,795)
(25,000)
(25,000)
(140,385)
(115,385)
(2,124,628) (2,124,628)
30,372,365 30,372,365
391,213 2,515,841
30,372,365 -
$ 28,247,737 $ 28,247,737 $ 30,763,578 $ 2,515,841
* The net change in fund balance was included in the budget as an appropriation (i.e., spendown) of fund balance.
The accompanying notes to the financial statements are an integral part of this statement.
22
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Fund
September 30, 2025
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 Assets
Less Accumulated Depreciation/Amortization
Total Capital Assets (Net of Accumulated Depreciation/Amortization)
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources
Deferred Outflows Related to Asset Retirement Obligation
Deferred Outflows Related to Pensions
Deferred Outflows Related to OPEB
Total Deferred Outflows of Resources
The accompanying notes to the financial statements are an integral part of this statement.
23
Statement 7
Water and Sewer
Entex° arise Fund
$ 11,702,895
14,932,652
26,635,547
3,419,944
165,956
973,594
96,524
31,291,565
41,233,100
10,640,617
928,783
52,802,500
3,064,392
339,620
71,340,277
33,529,104
84,050,863
28,926,854
7,413,878
2,607,698
207,587
(99,617,11 T
128,798,769
184,665,661
215,957,226
5,125,634
363,789
15,251
5,504,674
CITY OF PARIS, TEXAS
Statement of Net Position
Proprietary Fund
September 30, 2025
Liabilities
Current Liabilities
Accounts Payable and Accrued Liabilities
Accrued Interest Payable
Customers' Deposits - Restricted Assets
Bonds Payable - Current Portion
Right -to -Use Liability - Current Portion
Compensated Absences - Current Portion
Unearned Revenue
Total Current Liabilities
Noncurrent Liabilities
Bonds Payable - Noncurrent Portion
Right -to -Use Liability - Noncurrent Portion
Compensated Absences - Noncurrent Portion
Asset Retirement Obligation
Net Pension Liability
Total OPEB Liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources
Deferred Inflows Related to Pensions
Deferred Inflows Related to OPEB
Total Deferred Inflows of Resources
Net Position
Net Investment in Capital Assets
Unrestricted
Total Net Position
The accompanying notes to the financial statements are an integral part of this statement.
24
Statement 7
(Continued)
Water and Sewer
Enterise Fund
6,598,768
1,456,132
1,1 17,587
2,725,000
43,511
179,991
26,406
12,147,395
125,447,833
47,204
719,963
5,888,748
1,311,046
174,895
133 589,689
145 ,737,084
179,495
31,605
211,100
63,319,720
12,193,996
$ 75 513 716
Operating Expenses
CITY OF PARIS, TEXAS
Statement 8
5,699,469
Statement of Revenues, Expenses, and Changes in Fund Net Position
1,564,716
Contractual
Proprietary Fund
Maintenance
951,130
Year Ended September 30, 2025
909,006
Other
505,699
Water and Sewer
3,722,008
Amortization of Water Rights
EnteTrisc Fund
Operating Revenues
196,292
Total Operating Expenses
Charges for Services
Water Sales and Taps
$ 8,624,600
Sewer Charges and Taps
11,360,924
Sanitation Billing Fees
88,495
Service Charges
159,425
Industrial Surcharges
24,819
Miscellaneous
483,029
Total Operating Revenues
20,741,292
Operating Expenses
Personnel
5,699,469
Supplies
1,564,716
Contractual
4,585,419
Maintenance
951,130
Sundry Charges
909,006
Other
505,699
Depreciation/Amortization
3,722,008
Amortization of Water Rights
35,632
Amortization of Asset Retirement Obligation
196,292
Total Operating Expenses
18,169,371
Operating Income 2,571,921
Nonoperating Revenues (Expenses)
Investment Earnings
4,299,932
Property Taxes
1,345,979
Net Increase (Decrease) in the Fair Value of Investments
(444,183)
Intergovernmental
117,103
Gain/(Loss) on Sale of Capital Assets
25,247
Interest Expense
(4,941,965)
Net Nonoperating Revenues (Expenses)
mw 402,113
Income Before Capital Contributions, Other Revenue, and Transfers 2,974,034
Capital Contributions, Other Revenue, and Transfers
Transfers In
327,392
Transfers Out
_______444,438)
Total Capital Contributions, Other Revenue, and Transfers
282,954
Changes in Net Position
3,256,988
Net Position - Beginning of Year, as Previously Presented
_ 72,753,918
Restatement x`497,190)
Net Position - Beginning of Year, as Restated 72,256,728
Net Position - End of Year $ 75,513,716
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 Fund
Year Ended September 30, 2025
Water and Sewer
Enterprise Fund
Cash Flows from Operating Activities
Receipts from Customers and Users $ 20,288,676
Other Receipts 483,029
Payments to Suppliers, Contractors, and Service Providers (6,228,851)
Payments to Employees for Salaries and Benefits (3,773,045)
Net Cash Provided (Used) by Operating Activities 10,769,809
Cash Flows from Noncapital Financing Activities
Transfers In 327,392
Transfers Out (44,438)
Operating Grants 117,103
Net Cash Provided (Used) by Noncapital Financing Activities --...-400,057
Cash Flows from Capital and Related Financing Activities
Proceeds Received from Sale of Capital Assets 30,268
Acquisition and Construction of Capital Assets (39,742,682)
Principal Paid on Capital Debt (3,870,037)
Interest Paid on Capital Debt (5,517,652)
Property Taxes 1,328,045
Net Cash Provided (Used) by Capital and Related Financing Activities (47,772,058)
Cash Flows from Investing Activities
Interest on Investments 4,369,278
Purchases of Investment Securities (78,358,365)
Maturities of Investments 100,413,804
Net Cash Provided (Used) by Investing Activities 26,424,717
Net Increase (Decrease) in Cash and Cash Equivalents (10,177,475)
Cash and Cash Equivalents - Beginning of Year 36,813,022
Cash and Cash Equivalents - End of Year $ 26,635,547
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 Fund
Year Ended September 30, 2025
Water and Sewer
Enterprise Fund
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating Income
$ 2,571,921
Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities
Depreciation and Amortization
3,722,008
Amortization of Water Rights
35,632
Amortization of Asset Retirement Obligation
196,292
Decrease (Increase) in Accounts Receivable
103,879
Decrease (Increase) in Prepaid Items
19,853
Decrease (Increase) in Inventories
(256,269)
Decrease (Increase) in Net Pension Asset
42,955
Decrease (Increase) in Deferred Outflows of Resources
144,535
Increase (Decrease) in Accounts Payable and Other Accrued Liabilities
2,717,113
Increase (Decrease) in Customers' Deposits
14,998
Increase (Decrease) in Unearned Revenue
(88,464)
Increase (Decrease) in Compensated Absences
179,991
Increase (Decrease) in Net Pension Liability
1,311,046
Increase (Decrease) in Total OPEB Liability
(5,367)
Increase (Decrease) in Deferred Inflows of Resources
59,686
Total Adjustments
8,197,888
Net Cash Provided by Operating Activities
$ 10,769,809
Noncash Investing, Capital, and Financing Activities
Adjustment in Estimate of Asset Retirement Obligation $ 203,914
Increase in Deferred Outflow of Resources - Asset Retirement Obligation (203,914)
The accompanying notes to the financial statements are an integral part of this statement.
27
CITY OF PARIS, TEXAS
Statement of Fiduciary Net Position
Fiduciary Fund
September 30, 2025
Assets
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
Total Assets
Liabilities
Accounts Payable
Due to Other Funds
Total Liabilities
Net Position
Net Position Restricted for Other Purposes
Total Net Position
Statement 10
Custodial Funds
Court Costs Forestbrook Public
and Fees Improvement District
13,651 $ -
- 15,673
30,325 -
43,976 15,673
43,690 5,975
- - 9,698
43,690 15,673
286 -
286 $
The accompanying notes to the financial statements are an integral part of this statement.
28
CITY OF PARIS, TEXAS
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
Year Ended September 30, 2025
Additions
Contributions
State Court Fees Collected
Capital Contributions from Developers
Total Contributions
Investment Earnings
Interest
Total Investment Earnings
Total Additions
Deductions
Payments of Court Fees to State
Consultation Fees
Total Deductions
Change in Fiduciary Net Position
Net Position - Beginning of Year
Net Position - End of Year
Statement 11
Custodial Funds
Court Costs Forestbrook Public
and Fees Improvement District
$ 133,132 $ -
- 50,673
133,132 50,673
286 -
286 -
133,418 50,673
133,132 -
- 50,673
133,132 50,673
286 -
$ 286 $ -
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, 2025
I. Summai of Significant Accounting, Policies,
A, Description of Government -Wide Financial Statements
The government -wide financial statements (e.g., the statement of net position and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and it's component unit. For
the most part, the effect of interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from business -
type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary
government is reported separately from the legally separate component unit for which the primary government
is financially accountable.
B. Reporting Entity
The City of Paris, Texas (the City), operates under a council-manager form of govermnent 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, if any, 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, 2025
1. Summaly of Si %unficant 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 of the general government, except those accounted for in other funds.
The Debt Service Fund is used to account for the accumulation of resources that are restricted, committed,
or assigned for the payment of principal and interest on long-term general governmental obligations.
The Capital Projects Fund accounts for the acquisition and construction of the City's major capital
facilities, other than those financed by proprietary funds.
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, committed, or assigned 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 funds:
The Court Costs and Fees Custodial Fund include 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.
Forestbrook Public Improvement District (PID) Custodial Fund issued special assessment revenue bonds
for major capital improvements. These bonds, which were issued subsequent to year end, will be paid from
the special assessments levied by the PID on property owners within the PID's geographical boundaries.
The City collects the special assessment payments and makes the debt service payments for the PID. The
debt service transactions of a special assessment for which the government is not obligated in any manner
are reported in a custodial fund rather than a debt service fund, to reflect the fact that the government's
duties are limited to acting as a custodian of funds for the assessed property owners and the bondholders.
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.
31
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summar of Siggificant Accounting Policies (Continued)
D. Basis of Presentation — Fund Financial Statements (Continued)
Further, certain activity occurs during the year involving transfers of resources between funds. In the fund
financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund
financial statements, certain eliminations are made in the preparation of the government -wide financial
statements. Transfers between the funds included in governmental activities are eliminated so that only the net
amount is included as transfers in the governmental activities' column. Similarly, balances between the funds
included in business -type activities are eliminated so that only the net amount is included as transfers in the
business -type activities column.
E. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis
of accounting. Measurement focus indicates the type of resources being measured such as current financial
resources or economic resources. The basis of accounting indicates the timing of transactions or events for
recognition in the financial statements.
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 consistently 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, claims and judgments,
postemployment benefits, and environmental obligations are recognized later based on specific accounting rules
applicable to each, generally when payment is due. General capital asset acquisitions, including entering into
contracts giving the City the right to use assets, are reported as expenditures in governmental funds. Issuance of
long-term debt and financing through leases and subscription -based information technology arrangements 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
expenditure has 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 detennination of revenues earned, costs incurred, and/or net income is necessary for
management accountability.
32
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summa a+ of S_igtifcant Accqunhn Policies (Continued
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 non -budgeted
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, 2025, 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, 2025, the City Council approved a transfer of $1,313,178 from various departments to
other departmental line items. Expenditures exceeded appropriations in the following departments:
Manager $239,545, Municipal Court $19,169, Sanitation $28,701, Health $2,470,107, Transfers Out
$544,273.
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
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.
33
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summat of Si l ificant Accountmg,Policies (Continued)
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
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 LOGIC. Both investment pools carry investments at amortized cost, which
approximates fair value. Investments are priced daily and compared to the carrying value. If the ratio of the
fair value of the portfolio of investments to the carrying value of investments is less than .995 or greater
than 1.005, the investment pools will sell investment securities, as required, to maintain the ratio at a point
between 995 and 1.005. Participation in external investment pools is 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. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government -wide and fund financial statements. The cost of prepaid items are
recorded as expenditures/expenses when consumed rather than when purchased.
34
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summi;at;y of S. i nif cant Agg9pritmg Policies (Continued)
-1111,11,11-
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
5. 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.
6. 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 $10,000 and an estimated useful life in excess of two years. Such assets
are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are reported at acquisition value at the date of donation. Infrastructure acquired
prior to the implementation of GASB 34 are included in the financial statements. Information on leased
assets is presented in Note I.G.7. and subscription -based information technology arrangements (SBITA) is
presented in Note I.G.8.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as an expense
during the period incurred.
Property, plant, and equipment of the primary government, as well as the component unit, is depreciated
using the straight-line method over the following estimated useful lives:
Buildings and Improvements 20-40 years
Furniture, Fixtures, and Equipment 5-10 years
Vehicles 5 years
Works of Art 50 years
Public Domain Infrastructure 25-45 years
System Infrastructure 25-30 years
35
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
1. Sununai_y-Rf,S$igLiifwAiit.&�;gq ling Policies (Continued)
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
7. Leases
The Government Accounting Standards Board defines a lease as a contract that conveys control of the right to
use another entity's non-financial asset as specified in the contract for a period of time in an exchange or
exchange -like transaction.
MMEMM
The City is a lessor for non -cancellable leases of equipment. The City recognizes a lease receivable and a
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 the 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.
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 non -cancellable 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.
36
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
1. Summary ofi ei (Continued) .0
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
7. Leases (Continued)
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 term 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 payment,,; 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 non -cancellable 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
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 assets 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 the underlying asset from the lessor, the lease asset will be reclassified to the
appropriate class of owned assets.
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.
37
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. 3ummaly, of $ruficant„AccountJft Policies (Continued)
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
8. Subscription -Based Information Technology Arrangements (SBITA)
The City has non -cancellable 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 and proprietary fund 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 tern 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.
• 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 non -cancellable 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.
9. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position includes 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 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 includes 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 will not be recognized as an inflow of
resources (revenue) until that time. The City has a deferred inflow of resources related to pensions and
OPEB. See IVY. and G. for further information. In addition, the government has one type of item, which
arises only under a modified accrual basis of accounting, which qualifies for reporting in this category.
38
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summafy. of Si ilificant,„Accountinf Policies (Continued)
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
9. Deferred Outflows/Inflows of Resources (Continued)
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenues from the following source: property taxes. Deferred
amounts related to property taxes 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.
10. Net Position
For government -wide reporting as well as in proprietary funds, the difference between assets and deferred
outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is
comprised of three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization
and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the
acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred
inflows of resources that are attributable to the acquisition, construction or improvement of those
assets or related debt are included in the component of net position.
Restricted net position consists of restricted assets reduced by certain liabilities and deferred inflows of
resources related to those assets. Assets are reported as restricted when constraints are placed on asset
use either by external parties or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and
deferred inflows of resources that do not meet the definition of the two preceding categories.
Sometimes the City 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 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 net position to have been depleted before unrestricted net
position is applied.
11. Fund Balance
In governmental fund types, the difference between assets and deferred outflows of resources less liabilities
and deferred inflows of resources is called fund balance. The City's governmental funds report the
following categories of fund balances, based on the nature of any limitations requiring the use of resources
for specific purposes.
Nonspendable fund balance represents amounts that are either not in a spendable form or are legally or
contractually required to remain intact.
Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by
external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions
may be changed or lifted only with the consent of the resource providers.
39
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
1. Summagy of Si,grifcant Accounting Policies (Continued)
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance (Continued)
11. Fund Balance (Continued)
Committed fund balance represents amounts that can be used only for 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.
Assigned fund balance represents amounts that 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 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 general 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.
As previously mentioned, sometimes the City 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.
12. 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).
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 on 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 the property (real and personal) on January
1 of each year to secure the payment of all taxes, penalties, and interest ultimately imposed on the property.
The lien is effective until all such amounts are paid.
40
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summal°w_of Sigtaificant.,Accounfipg,.Policies (Continued)
H. Revenues and Expenditures/Expenses (Continued)
3. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for
services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent
years, and (3) is more likely than not to be used as time off or settled (for example, paid in cash to the
employee) during or upon separation from employment. Based on the criteria listed, five types of leave
qualify for liability recognition for compensated absences — vacation, sick leave, holidays, attendance
holidays, and compensatory time. The liability for compensated absences is reported as incurred in the
government -wide and proprietary fund financial statements. A liability for compensated absences is
,recorded in the governmental funds only if the liability has matured because of employee resignations or
retirements. The liability for compensated absences includes salary -related benefits, where applicable.
Vacation Benefits, Holidays, Attendance Holidays, Compensatory Time, and Sick Leave for Civil Service
Employees — The City's policy permits employees to accumulate earned but unused benefits, which are
eligible for payment at the employee's current pay upon separation from employment.
Sick Leave for Non -Civil Service Employees — The City's policy permits employees to accumulate earned
but unused sick leave. All sick leave lapses when employees leave employment of the City and, upon
separation from service, no monetary obligation exists. However, a liability for the estimated value of sick
leave that will be used by employees as time off is included in the liability for compensated absences.
4. Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary Funds distinguish operating revenues and expenses from non-operating 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/amortization 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 2025, the City adopted the following Governmental Accounting Standards Board (GASB)
Statements:
GASB Statement No. 101, Compensated Absences. The objective of this statement is to better meet the
information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences. That objective is achieved by aligning the recognition guidance under a unified model
and by amending certain previously required disclosures.
GASB Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide users of
government financial statements with essential information about risks related to a government's vulnerabilities
due to certain concentrations or constraints. This Statement defines a concentration as a lack of diversity related
41
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
I. Summa a of S gli ficanteAccountigPol cies (Continued)
J. Recent Accounting Pronouncements Adopted (Continued)
to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on
a government by an external party or by formal action of the government's highest level of decision-making
authority. Concentrations and constraints may limit a government's ability to acquire resources or control
spending.
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, 2025.
Statement
No ,Adoption Reguired
......... -
103 Financial Reporting Model September 30, 2026
Improvements
104 Disclosure of'Certain Capital Assets September 30, 2026
105 Subsequent Events September 30, 2027
II. Reconciliation of Government -Wide and Fund FinancialStatements
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 $48,918,571 are as
follows:
Land
Construction in Progress
Buildings
Less: Accumulated Depreciation — Buildings
Improvements Other Than Buildings
Less: Accumulated Depreciation — Improvements Other Than Buildings
Machinery and Equipment
Less: Accumulated Depreciation — Machinery and Equipment
Infrastructure
Less: Accumulated Depreciation — Infrastructure
Right -To -Use Assets - Leases
Less: Accumulated Amortization — Right -To -Use Assets - Leases
Right -To -Use Assets - SBITAs
Less: Accumulated Amortization — Right -To -Use Assets - SBITAs
Net Adjustment to Increase Fund Balance — Total Governmental Funds
to Arrive at Net Position — Governmental Activities
42
$ 6,142,418
2,169,152
23,020,700
(12,523,265)
9,159,840
(5,338,400)
29,780,300
(21,728,647)
56,710,475
(39,468,044)
701,395
(280,492)
991,502
......m.A4.18.363.)
48,918.571
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
II. Reconciliat on,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 and accrued
interest, are not due and payable in the current period and, therefore, are not reported in the funds." The details
of this $42,412,501 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
$ 28,430,000
1,407,158
4,190,000
110,931
393,992
506,682
410,082
6,813,656
_................ _.1.50.„q„ 00
$ A2,41ZM
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/amortization expense.” The details of this $4,069,775 difference are as follows:
Capital Outlay $ 7,472,222
Depreciation Expense .,(3,µ402m447)
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Position
Of Governmental Activities $ -4,009,.775.
Another element of that reconciliation states that "the net effect of various miscellaneous transactions involving
capital assets (i.e., sales, trade-ins, and donations) is to increase net position." The details of this $3,506,894
difference are as follows:
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. $ 3,506,894
Total Governmental Funds to Arrive at Changes in Net Position
of Governmental Activities $ 3,506,894
43
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
III. Stewardship, Compliance, andwAccountabiliti:
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, 2025.
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, 2025, the City maintained deposits at a bank with a carrying amount of $58,738,331, and the
bank's balances were $61,487,478. As of September 30, 2025, $750,000 was insured by FDIC and $60,737,478
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 $15,110,907 is considered a deposit for this footnote but is classified as an
investment on the face of the financial statements.
Discretely Presented Component Unit
At September 30, 2025, $250,000 was insured by FDIC and $1,950,634 was collateralized with securities
pledged. PEDC's carrying amount of demand deposits was $2,092,082 and the bank balance was $2,200,634.
The carrying amount of cash includes amounts related to custodial funds that are not reported in the component
unit column of the financial statements.
B. Investments
As of September 30, 2025, the City had the following investments:
Tylae of Secuny
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
Fair Value
2,351,314
1,311,756
1,251,400
190,662
15,110,907
34,314,385
13,909,197
_.. 22471.7491..
$
70911 118
Weighted
Average
Maturity
(Days)
The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
LOGIC is a public funds investment pool managed by J.P. Morgan Investment Management Inc. and Hilltop
Securities 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,
2025. However, the City had a zero balance at year end.
44
82
Weighted
Average
Credit
Maturity
.............RatmB.._._._
AA+
6.42
A-1+
5.60
AA+
2.50
AA+
0.89
Not Rated
0.33
0.17
AAAm
1.08
Weighted
Average
Maturity
(Days)
The City invested in the Texas Local Government Investment Cooperative (LOGIC) Liquid Asset Portfolio.
LOGIC is a public funds investment pool managed by J.P. Morgan Investment Management Inc. and Hilltop
Securities 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,
2025. However, the City had a zero balance at year end.
44
82
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed ..Notes _on„All Activities and Funds (Continued)
B. Investments (Continued)
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 UMB Bank N.A., which also serves
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.
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, 2025, the City was not
exposed to foreign currency risk.
45
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes All Activities and Funds (Continued)
C. Accounts Receivable and Payable
Amounts are aggregated into a single accounts receivable (net of allowance for uncollectible) 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 - $630,654, Fines -
$56,732, EMS - $393,352, Street Assessments - $26,473, Leases - $1,977,470 and Notes - $1,836,664.
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, 2025, the deferred
inflows of resources were $2,691,563.
At year end, PEDC had a receivable for sales tax of $441,303 and grants of $220,429. The balances are
expected to be collected within one year.
46
Nonmajor
Governmental
General _..._
Debt Service
Funds _ ...._....
Ente0lprise ...
Receivables
Accrued Interest
$ 43,832
$ -
$ 2,043
$ 165,956
Property Taxes
1,052,218
134,345
-
40,878
Sales Taxes
2,205,987
-
-
-
Hotel Occupancy Taxes
353,295
-
-
-
Franchise Taxes
496,837
-
-
-
Accounts
279,690
-
78,039
3,434,750
Street Assessments
26,473
-
-
-
Fines
2,565,440
-
-
-
EMS
5,081,122
-
-
-
Leases
1,193,382
-
943,923
-
Notes
12967,986
-
......._..._.
Gross Receivables
--15,266,262
134,345
1,024,005
3,64 1,584
Less Allowance for Uncollectible
f 6 476 602
i34 9921
__ ,,,.... ..,
684
155,N�
Net Total Receivables
,
$ 8,789,660
$ 99,353
$ 1,024,005
$ 3,585,900
Net receivable balances not expected to be collected within one year are Property Taxes - $630,654, Fines -
$56,732, EMS - $393,352, Street Assessments - $26,473, Leases - $1,977,470 and Notes - $1,836,664.
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, 2025, the deferred
inflows of resources were $2,691,563.
At year end, PEDC had a receivable for sales tax of $441,303 and grants of $220,429. The balances are
expected to be collected within one year.
46
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities and Funds (Continued)
C. Accounts Receivable and Payable (Continued)
Accounts payable at September 30, 2025, were as follows:
Governmental Activities
General Fund
Capital Projects
Special Revenues
Total — Governmental Activities
Business -Type Activities
Water and Sewer Fund
Total — Business -Type Activities
Fiduciary Activities
Custodial Fund — Court Costs and Fees
Custodial Fund — Forestbrook Public
Improvement District
Total — Fiduciary Activities
Accounts. ....... WaBes .._...... Totals
$ 1,580,918 $ 1,094,002 $ 2,674,920
777,921 - 777,921
.._..... M 16,639
2,375,478 � 1,101,685 .$3,477,163
$........._..6,405,,190 $ _193'25_78_' $.....6,598 768..,
$ 6,405,190 $ 193,578 $ 6,598,768
$ 43,690 $ - $ 43,690
.___ 529.75 . _............. 51975....,,
49 665
(Remainder of page intentionally left blank.)
47
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed,. Notes on All Activities and Funds, (Continued)
D. Capital Assets
Capital assets activity for the year ended September 30, 2025, follows:
22,936,307
84,393
Balance
Balance
Improvements Other Than Buildings
9/30/24 Additions
...........
Retirements 9/30/25
___.__ _ .... ..W ... _, ....W
Governmental Activities
9,159,840
Machinery and Equipment
Capital Assets, Not Being Depreciated
4,891,934
438,237
Land
$ 6,142,418 $ -
$ - $ 6,142,418
Construction in Progress
Sr
393 403 w ..5 588 427
1 ,.. _
3 , 2,169,152
Total Capital Assets,
514,890
186,505
Not Being Depreciated
g P
6,535 821 5,589,427
_.a.. _....._..
_._,.3,812,678 8,311,570
Capital Assets, Being Depreciated/Amortized
Buildings
22,936,307
84,393
-
23,020,700
Improvements Other Than Buildings
9,011,258
148,582
-
9,159,840
Machinery and Equipment
25,326,603
4,891,934
438,237
29,780,300
Infrastructure
52,818,522
3,891,953
-
56,710,475
Right -to -Use Lease — Equipment
514,890
186,505
-
701,395
Subscription -Based IT Assets
p
997 838
.-- ..........._.
......
_ ...... 6 336
9911502
Total Capital Assets,
Being Depreciated/Amortized
111,605,418
9,203 367
444,573
120,364,212
Less Accumulated Depreciation/Amortization for
Buildings
11,990,089
533,176
-
12,523,265
Improvements Other Than Buildings
5,016,696
321,704
-
5,338,400
Machinery and Equipment
20,930,595
1,236,289
438,237
21,728,647
Infrastructure
38,506,302
961,742
-
39,468,044
Right -to -Use Lease — Equipment
157,310
123,182
-
280,492
Subscription -Based IT Assets
.
226,354
—_.z_......
_.._._. ........ ......
418,363.�.......
Total Accumulated
Depreciation/Amortization
761799,337
3,402,447
444,573m
79,757 211
Total Capital Assets,
Being Depreciated/Amortized, Net
34 806 0815
_.._....
800 920
........... _.
_ .....................
40,607 001
....,....
Governmental Activities,
Capital Assets, Net
$41 341,902
$11 389,3, 7
$ 3,812,678
$48,918,571
48
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed, Notes, on All Activities and rFunds. (Continued)
D. Capital Assets (Continued)
Capital Assets, Being Depreciated/Amortized
Plant, Pumps, and Motors
Balance
Balance
-
9/30/24 _........
Additions Retirements 9/30/25
......................... __...._
Business -Type Activities
1,000,000
-
Capital Assets, Not Being Depreciated
Collection System
28,590,708
Land
$ 339,620
$ - $ - $ 339,620
Construction in Progress
34,455,719
36,938,134 53 576 71,340,277w
Total Capital Assets,
7,413,878
Furniture and Equipment
Not Being Depreciated
34,795,339
36,938,13453A76' 71,679,897
Capital Assets, Being Depreciated/Amortized
Plant, Pumps, and Motors
33,177,315
351,789
-
33,529,104
Distribution System
83,050,863
1,000,000
-
84,050,863
Collection System
28,590,708
336,146
-
28,926,854
Maintenance, Equipment, and Vehicles
6,860,537
655,363
102,022
7,413,878
Furniture and Equipment
2,092,872
514,826
-
2,607,698
Subscription -Based IT Assets
___.207 587
-
_._ ..
_._......
207 587
Total Capital Assets,
153,979,882_
2,858,12 .
... .... ------
Less Accumulated Depreciation/Amortization for
Plant, Pumps, and Motors
28,822,272
469,401
-
29,291,673
Distribution System
37,691,458
2,332,918
-
40,024,376
Collection System
23,248,788
381,888
-
23,630,676
Maintenance, Equipment, and Vehicles
4,360,302
467,725
97,001
4,731,026
Furniture and Equipment
1,811,391
28,559
-
1,839,950
Subscription -Based IT Assets
57,894
5
41,517„
_ . ......
99,411
Total Accumulated
Depreciation/Amortization
95,992,105
_ _
3722,08
0
97,001
99,617,112
Total Capital Assets,
Being Depreciated/Amortization, Net
57,987,777
X863 884b
_ 5,021
,57,118,872
Business -Type Activities,
Capital Assets, Net
92,783,116
36,074,250
58 597
128,798 769
Intangible Asset — Water Rights
4,113,119
-
-
4,113,119
Less Accumulated Amortization
1x0132095
_ mm _ 35 63 ?
....
1..,048,727
Total Intangible Asset -
Water Rights, Net
00 024
3�1.. _........
i35 632)
._
-
........_....m__
3,064 392
..�.......� ...._
Business -Type Activities,
Capital and Intangible Assets, Net
$95,883,140
oo o ����m „
18
$36,038,6„No w„
$ 58,597
,n y�,,,,,,�
13 ,
1,863,161
000„ o,�„ up,�,
49
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV, DetailedcNo on Al Activities and Fund's (Continued)
. .......... . ... t �_ I — .. Fund's
D. Capital Assets (Continued)
Depreciation/Amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General Government $ 394,382
Public Safety 1,042,762
Public Works, Including Depreciation of General Infrastructure Assets 1,418,803
Health 318,439
Culture and Recreation 116,167
Cox Field Airport _.-.1 1..1.894
Total Depreciation/Amortization Expense — Governmental Activities
Business -Type Activities
Water and Sewer
Total Depreciation/Amortization Expense — Business -Type Activities 3 757„640
E. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with Internal Revenue
Code Section 457.
6111
Balance
Balance
9/30/24
Additions Retirements
........ . . . . ...........
9/30/25
..........
PEDC
Capital Assets, Not Being Depreciated
Land
5,338,784
1,228,512 $
............ 6,567,296
Total Capital Assets,
Not BeinDepreciated
g
5338,784
1.228,512 ................. . . .
.. . ............
Capital Assets, Being Depreciated/Amortized
Equipment
6,895
6,895
Intangible Assets
9,900
-
9,900
Total Capital Assets,
Being Depreciated/Amortized
16 95
.........
............
795
Less Accumulated Depreciation/Amortization
for
Equipment
6,895
-
6,895
Intangible Assets
1,815
1 980
3,795
Total Accumulated
Depreciation/Amortization
8 710
1,980 . .
...................... ............... 1-102699
Total Capital Assets,
Being Depreciated/Amortization, Net
8,085
'6,105
PEDC, Capital Assets, Net
5,346,869
....
1,226,532
$ 6,573,401
Depreciation/Amortization expense was charged to functions/programs of the primary government as follows:
Governmental Activities
General Government $ 394,382
Public Safety 1,042,762
Public Works, Including Depreciation of General Infrastructure Assets 1,418,803
Health 318,439
Culture and Recreation 116,167
Cox Field Airport _.-.1 1..1.894
Total Depreciation/Amortization Expense — Governmental Activities
Business -Type Activities
Water and Sewer
Total Depreciation/Amortization Expense — Business -Type Activities 3 757„640
E. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with Internal Revenue
Code Section 457.
6111
CITY OF PARIS, TEXAS
Notes to Financial. Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activitiesand Funds (Continued)
F. Employee Retirement Systems and Plans
The City participates in a nontraditional defined benefit retirement plan for all full-time employees and
maintains a single -employed, defined benefit plan for firefighters.
As of and for the year ended September 30, 2025, the two plans had the following balances reported in the
government -wide financial statements:
Net
Deferred
Deferred
Pension
Outflows
Inflows
Pension
Liabiht (Asset)
of Resources
of Resources
Expense
Texas Municipal Retirement System
$ 7,986,681
$ 1,821,028
$ 1,059,128
$11,444,378
Paris Firefighters' Relief and Retirement Fund
(1494,133
... 753,458 w
,_.417539
_ ..A
468658.
Total Pension Plans
$ 6,492,548
$ 2,574,486
$ 1,476,667
$11,913,036
1. Texas Municipal Retirement System
Plan_ Description
The City of Paris participates as one of 938 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 Texas Government Code, Title 8, Subtitle G (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.
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, 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 equal 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. If a
member chooses a partial lump -sum distribution, it reduces the amount of their monthly retirement benefit.
51
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities and Funis (Continued)
F. Employee Retirement Systems and Pians (Continued)
1. Texas Municipal Retirement System (Continued)
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 2024
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%
Retiree Cost of Living Adjustment
0% of CPI
Employees Covered by„Beneft Terms.
At the December 31, 2024, valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive Employees or Beneficiaries Currently Receiving Benefits 251
Inactive Employees Entitled to but not yet Receiving Benefits 195
Active Employees 299
Total 745
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 withholds the member's contribution from wages on a pre-tax basis and sends it
to TMRS monthly. The City's contribution rate is determined annually using the Entry Age Normal actuarial
cost method that develops the annual cost of the City's retirement plan in two parts: that attributable to
benefits accruing in the current year, known as the normal cost, and that attributable to benefits earned prior to
the current year, known as prior service cost. Both are 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 5.36% and 11.14% in calendar years 2024 and 2025, respectively.
The City's contributions to TMRS for the year ended September 30, 2025, were $1,918,317 and were equal to
the required contributions.
52
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
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
The City's Net Pension Liability was measured as of December 31, 2024, and the Total Pension Liability
(TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date.
Actuarial As smltions
„
The Total Pension Liability in the December 31, 2024, actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall Payroll Growth 3.6% to 11.85%, 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. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected
on a fully generational basis by the most recent Scale MP -2021 (with immediate convergence) 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 fluty generational basis by the most recent Scale MP -2021 (with
immediate convergence) to account for future mortality improvements subject to the 3.5% and 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS as of December 31, 2022. They were adopted in 2023 and first used in the December 31, 2023,
actuarial valuation.
The long-term expected rate of return on pension plan investments is 6.75%. The pension plan's policy in
regard to the allocation of invested assets is established and may be amended by the TMRS Board of
Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation and
the production of income, in order to satisfy the short-term and long-term funding needs of TMRS.
53
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Nates„on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
The long-term expected rate of return on pension plan investments was determined by weighing 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, 2024.
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 for the City. 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 (i.e., the employer's
normal cost).
54
Long -Tenn Expected Real
Asset Class
Target Allocation
Rate of ReturnAnthmetic l
„ .____....
Global Equity
35.0%
7.1%
Core Fixed Income
6.0%
5.0%
Non -Core Fixed Income
6.0%
6.8%
Other Private Markets
4.0%
7.3%
Real Estate
12.0%
6.7%
Hedge Funds
5.0%
6.4%
Private Equity
13.0%
8.5%
Private Debt
13.0%
8.2%
Infrastructure
6.0%
6.0%
Total
100.0%
Discount Rate
A single discount rate of 6.75% was used to measure the Total Pension Liability as of December 31, 2024.
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 for the City. 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 (i.e., the employer's
normal cost).
54
CITY OF PARIS, TEXAS
Notes to Financial. Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Net. Pension Liabilil +.and. Chan es,an the Pension Liabilily
Balance at 12/31/2023
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 12/31/2024
Increase (Decrease)
S,ensitivity,,,,of the Net Pen towChanl esm the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City's net pension liability (asset) would have been if it were calculated using a discount
rate that is 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 ........$ 18 7 .......... .........__ ... _ .... _. _._w__.._. ... ..... ........
ty' ty ( ) 97,631 $ 7,986,681 $ (1,038,601)
Pension Plan Fiduciary 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.com.
Pension Expense and Deferred -,Outflows off Resourc.q,s and__Deferred Inflows_ofwResources Relatedto
Pensions
For the year ended September 30, 2025, the City recognized pension expense of $11,444,378.
55
Net Pension
Total Pension
Plan Fiduciary
Liability
Liability
Net Position
(Asset)
oda)....... ......w
ibl. — ............
(a) — (b)
$... 73,141,216
$ 73 402,891
$ 1261,675)
2,727,458
-
2,727,458
5,563,007
-
5,563,007
9,612,994
-
9,612,994
269,405
-
269,405
-
1,018,758
(1,018,758)
-
1,330,467
(1,330,467)
-
7,625,525
(7,625,525)
(3,676,054)
(3,676,054)
-
-
(49,094)
49,094
__........_.......
(1148~
_. r ...,..
1,1 48
....w__............4 .4......
14,496810 w
,6,248,454„
8,248,356
S 87,638,026 �
$ 79,651,345
$ 7,986,681 mm
S,ensitivity,,,,of the Net Pen towChanl esm the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City's net pension liability (asset) would have been if it were calculated using a discount
rate that is 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 ........$ 18 7 .......... .........__ ... _ .... _. _._w__.._. ... ..... ........
ty' ty ( ) 97,631 $ 7,986,681 $ (1,038,601)
Pension Plan Fiduciary 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.com.
Pension Expense and Deferred -,Outflows off Resourc.q,s and__Deferred Inflows_ofwResources Relatedto
Pensions
For the year ended September 30, 2025, the City recognized pension expense of $11,444,378.
55
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes ,on All Activities and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Pension„ Expense, ,and Deferred Outflows of Resourcesand Deferred Inflows of ResourcesRelated to
Pensions (Continued)
At September 30, 2025, 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 Eamings
(Net of Current Year Amortization)
Contributions Subsequent to the Measurement Date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 190,632 $ 109,520
- 249,505
- 700,103
1,630,396 ----
$ � 1821028 $ 1059,128
Deferred outflows of resources, related to pensions resulting from contributions subsequent to the
measurement date of $1,630,396, will be recognized as a reduction of the net pension liability for the year
ending September 30, 2026. 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,
2026
2027
2028
2029
2030
Thereafter
56
$ (64,884)
875,876
(1,148,967)
(530,521)
. ..........
$ (868,496)
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Not .s on A11 Activities, and funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund
Plan Descripti9n
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 hired prior to October 1, 2022, 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, 2025. The City made no contributions during the
year ended September 30, 2025, and had no required contributions.
Employees Covered b Benefit Terms
At December 31, 2024, 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 employees4
.................................
Total 99
..
57
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes .o.n...A...ll Activi.tiesand _F_u_n_ds (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Service Retirement,Disability.and Dcat)l_D3enefits
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 non -nal fann 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 Methodsand..Assurnplions
The actuarial valuation date used to determine the total pension liability for the year ended September 30,
2025, and the most current available information required for disclosure under GASB Statement No. 67 is
based on an actuarial valuation as of December 31, 2024. The actuarial cost method used in the December
31, 2024, 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.
58
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities, and_. Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Net Pension Liability „and Changesm the „Pension Liabil'
The following presents the net pension liability of the Paris Firefighters' Relief and Retirement Fund,
calculated using the discount rate of 7.25%, as well as what the City's net pension liability (asset) would be
if it were calculated using a discount rate that is I -percentage -point lower (6.25%) or I -percentage -point
higher (8.25%) than the current rate:
1% Decrease in
Discount Rate
6.25%
Net Pension Liability $204,408
Pension ,Plan ,Fiduciary Net Position
I% Increase in
Discount Rate Discount Rate
T25% 8.25%
$(1,494,133) .$( ........
.........
(2,897,627)
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_ ExNpse and Deferred Outflows ofwResources and, Deferred Inflows,_ of Resources Related to
Pensions
For the year ended September 30, 2025, the City recognized pension expense of $468,658.
59
Increase (Decrease)
Net Pension
Total Pension
Plan
Liability
Liability
Fiduciary Net
(Asset)
Position,(.ry.....,
(a) — (b)
Balance at 12/31/2023
$ 15,370,058
_ ... .......
$ 16,728,381
$ (1,358 323)
Changes for the year:
Service Cost
-
-
-
Interest
1,071,933
-
1,071,933
Experience
19,285
-
19,285
Change of Benefit Terms
-
-
-
Difference Between Expected and Actual Experience
-
-
-
Changes of Assumptions
-
-
-
Contributions — Employer
-
-
-
Contributions — Employee
-
-
-
Net Investment Income
-
1,255,492
(1,255,492)
Benefit Payments, Including Refunds of Employee
Contributions
(1,169,559)
(1,169,559)
-
Administrative Expense
-
(28,464)
28,464
Other Changes-
Net Changes
8,3411_
57,469....
J35,8 10
Balance at 12/31/2024
$ 15,291,717
$ 16,785,850
$ (1,494,133)
The following presents the net pension liability of the Paris Firefighters' Relief and Retirement Fund,
calculated using the discount rate of 7.25%, as well as what the City's net pension liability (asset) would be
if it were calculated using a discount rate that is I -percentage -point lower (6.25%) or I -percentage -point
higher (8.25%) than the current rate:
1% Decrease in
Discount Rate
6.25%
Net Pension Liability $204,408
Pension ,Plan ,Fiduciary Net Position
I% Increase in
Discount Rate Discount Rate
T25% 8.25%
$(1,494,133) .$( ........
.........
(2,897,627)
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_ ExNpse and Deferred Outflows ofwResources and, Deferred Inflows,_ of Resources Related to
Pensions
For the year ended September 30, 2025, the City recognized pension expense of $468,658.
59
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes,on All„Act vities,and Funds (Continued)
F. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Pension Extaense and, Deferred Outflows of Resources andDeferredinflows of Resources Related to
Pensions (Continued)
At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resourcesof Resources
.............. . _ ..............
Difference Between Expected and Actual Economic Experience $ 57,015 $ 285,121
Changes in Actuarial Assumptions 696,443 -
Difference Between Projected and Actual Investment Earnings - 132,418
Contributions Subsequent to the Measurement Date -
Total $ 753,458 $ 417755399
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in
pension expenses as follows:
Fiscal Year Ended September 30,
2026
$ 170,927
2027
303,579
2028
(185,134)
2029
41,037
2030
2,755
Thereafter
_~$m u 2,755
Total
335,919
G. Other Post Employment Benefit (OPEB) Obligations
The City also participates in a 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) and maintains a single -employer plan for eligible retirees, the
City of Paris Retiree Health Care Plan.
As of and for the year ended September 30, 2025, the two plans had the following balances reported in the
government -wide financial statements:
Total
Deferred
Deferred
OPEB
Outflows
Inflows
OPEB
Lrabrht (Assetp
._._._. w.
of Resources
_.._......_
of Resources
.. .
Expense
Supplemental Death Benefits Fund $ 1,065,719
$ 92,954
$ 192,555
$ (30,054)
City of Paris Retiree Healthcare Plan 2,674,388
_.._...._w..,278,064
.......
484 373..._
...__, 215,240.......
Total OPEB Plans $1001 �3�740,107
$ 3711,, 018
N w�
$ 676,928
$o � 185,186
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed wNotes ,.on All Activities, and,,,Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
1. Supplemental Death Benefits Fund
Plan Descn ,tion
The SDBF covers both active and retiree participants with no segregation of assets and therefore does not 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.
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).
Em3alo ees_Covetp by A f t Terms„
At the December 31, 2024, valuation and measurement date, the following employees were covered by benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 187
Inactive employees entitled to but not yet receiving benefits 48
Active employees ._... ..............2,9.9w._
Total 534
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 0.41% and 0.37% of gross earnings in calendar year 2024 and 2025, respectively. The
City's contributions to TMRS SDBF for the year ended September 30, 2025 were $76,175 and were equal to the
required contributions.
61
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on„All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPER) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
g B Liability
Chan esm,min the OPE�.�.
The following presents the total SDBF OPEB liability of the City, calculated using the discount rate of 3.77 %,
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 (2.77%) or 1 -percentage -point higher (4.77%) than the current rate:
1% Decrease in
Increase
1% Increase in
i;Decreasei
....__.
_............Total
Discount Rate
OPE B
2.77%
Liabilim ...................._.
Balance at 12/31/23
$ -.. 1,098,411
Changes for the year:
$919,106
Service Cost
38,013
Interest
41,410
Change of Benefit Terms
-
Difference Between Expected and Actual Experience
(21,806)
Changes of Assumptions
(52,296)
Contributions — Employer
-
Contributions — Employees
Net Investment Income
-
Benefit Payments, Including Refunds of Employee Contributions
(38,013)
Administrative Expense
-
Other Changes
-
Net Changes
Q32,692 b
Balance at 12/31/24
$µ wwwww 1,065,719
The following presents the total SDBF OPEB liability of the City, calculated using the discount rate of 3.77 %,
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 (2.77%) or 1 -percentage -point higher (4.77%) than the current rate:
1% Decrease in
1% Increase in
Discount Rate
Discount Rate
Discount Rate
2.77%
3.77%
_...... _ ..... ...._..,
4.77%
.__ .........
..... ..._ ....._._......
Total OPEB Liability $1,249,317
$1,065,719
$919,106
$ulap1q;pgntal Death „Benefits Fund Net Position
Detailed information about the plan's net position is available in a separately issued TMRS financial report. That
report may be obtained on the Internet at www.tmrs.com.
62
CITY OF PARIS, TEXAS
Notes to Financial. Statements (Continued)
September 30, 2025
IV. Detailed Notes,ggA11 Activities................. and Funds (Continued)
G. Other Post Employment Benefit (OPER) Obligations (Continued)
1. Supplemental Death Benefits Fund (Continued)
OPEB Ex tense and,Deferred Outflows of ,Resources and Deferred, Inflows of Resources Related to OPEBs
For the year ended September 30, 2025, the City recognized OPEB expense in the amount of $(30,054).
At September 30, 2025, 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
4,969
33,834
151
Deferred Inflows
of Resources
30,262
162,293
$ 92 954 $ 192 555
$54,151 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, 2025. 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,
2026
$ (132,119)
2027
(6,011)
2028
(3,660)
2029
(11,962)
2030
-
Thereafter
-
Total $ (153,7521
2. City of Paris Retiree Health Care Plan
Plan Description
The City has in effect a single employer plan (the Plan) adopted by City Council resolution whereby people who
retire before age sixty-five will be provided with 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 does not 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.
63
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed _Notes ,non_All _Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
Benefits
Retiree health benefits are available to all retirees who meet the definition of a retiree as set for by City
ordinance. Retirees are responsible for the full cost of their retiree health benefits. Retirees who meet certain
conditions are eligible for a monthly subsidy from the City toward the purchase of health care coverage until the
retiree becomes age 65. Retirees are able to remain on the City group health insurance plan until the retiree
reaches age 65 or becomes eligible for Medicare coverage. Retiree premiums are 1.95 times the rates for active
employees. Retiree health 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 pian 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, 2023, the maximum amount of the monthly subsidy is $595.
Employees Cover_e_d_bw.�, enefit Terms
At the December 31, 2024, valuation and measurement date, the following employees were covered by benefit
terms:
Inactive Retirees or Beneficiaries Currently Receiving Benefits 10
Inactive, Nonretired Members -
Active employees 42
Total 52
Contributions
The City's contributions are financed on a pay-as-you-go basis. For the year ended September 30, 2025, the
contributions were approximately $66,614.
64
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed ..Notes wo..n.All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
Changes in the OPEBw Liability
1% Increase in
Increase
Discount Rate
(Decrease) ._......_.
3.08%
Total OPEB
5.08%
Liabili.( ...........,._......
Balance at 12/31/2023
$ 2,722,955
Changes for the year:
Service Cost
58,993
Interest
100,703
Change of Benefit Terms
-
Difference Between Expected and Actual Experience
(3,716)
Changes of Assumptions
(41,956)
Contributions — Employer
-
Contributions — Employees
Net Investment Income
-
Benefit Payments, Including Refunds of Employee Contributions
(162,591)
Administrative Expense
-
Other Changes
-
Net Changes
67i
Balance at 12/31/2024
$ 2674388 v
The following presents the total Plan OPEB liability of the City, calculated using the discount rate of 4.08%, 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 (3.08°/x) or 1 -percentage -point higher (5.08%) than the current rate:
1% Decrease in
1% Increase in
Discount Rate
Discount Rate
Discount Rate
3.08%
_ 4.08% _
5.08%
Total OPEB Liability $2 812,115
$2,674,388
75
$2,543,7..
The following presents the Plan's total OPEB liability, calculated using the assumed trend rates as well as what
the Plan's total OPER 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
__... _ ° ease
__.._1%Decrease _ Ass.... ..._.__...., 1 o Increase
_ .._......
Total OPEB Liability $2,511,568 $2,674,388 $2,849,892
65
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes. on All Activities and Funds (Continued)
G. Other Post Employment Benefit (OPEB) Obligations (Continued)
2. City of Paris Retiree Health Care Plan (Continued)
OPEB Plan Net Position
Detailed information about the plan's net position is available in a separately issued TMRS financial report. That
report may be obtained at 1444 N. Main Street, Paris, Texas 75460.
OPEB Exp±ensenand Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs
For the year ended September 30, 2025, the City recognized OPEB expense in the amount of $215,240.
At September 30, 2025, 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
115,106
162,958
Deferred Inflows
of Resources
334,563
149,810
$ 278 064 $ 484 373
Deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement
date of $162,958, will be recognized as a reduction of the OPEB liability for the year ending September 30,
2025. 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,
2026
$ (260,128)
2027
(106,766)
2028
(2,373)
2029
-
2030
-
Thereafter
-
Total $ (369,2677
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, 2025, were
approximately $3,449,342.
66
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
1V. Detailed Notes on All Activit . swand Funds, (Continued)
H. Water Sales and Commitments (Continued)
2. Construction Commitments
The City has active construction projects as of September 30, 2025. At year-end, the City's commitments
with contractors are as follows:
Protect _
To Date
Commitment
Waste Water Treatment Plant Improvements —
Phase 1
$ 43,425,986
$ 19,426,656
Waste Water Treatment Plant Improvements —
Phase 2
14,566,622
25,421,878
2025 Mill & Overlay
997 108
a_...__...w,_
8 ,16164
,
Total
98
$ 58,9,716
$ 586,69 8
4,7
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, 2025, and may be renewed 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. Other Commitments - PEDC
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 at September 30, 2025 is estimated to be $208,320.
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 at September 30, 2025 is estimated to be $360,000.
rem
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed on AllpActivities „and „Funds (Continued)e,
H.
Water Sales and Commitments (Continued)
5. Other Commitments — PEDC (Continued)
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
who paid out in installments over 5 years and $100,000 as an equipment relocation grant. The remaining
balance at September 30, 2025 is estimated to be $399,000.
Rodgers -Wade Manufacturing Company, Inc, — On October 17, 2023, the Board of Directors reached an
incentive agreement with Rodgers -Wade Manufacturing Company, Inc. PEDC will provide up to $280,000
for the creation of 57 full-time employees paid out in installments over 3 years. The remaining balance at
September 30, 2025 is estimated to be $93,334.
1. 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, 2025. 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 transfer of ownership. Equipment purchased through the agreement are pledged as security for repayment
of the lease liability. The present value and accumulated amortization are as follows:
Year Ending
September w30,___ ..
2026
Totals
K. Long -Term Liabilities
Pnncifal Interest Total
110,931 $ 3 464 $ 114,395.
$ 110,931 �,$3464 ��, �u$114,395
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
are reported as other financing uses. Issuance costs, even if withheld from the actual net proceeds received, are
reported as debt service expenditures.
MM
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed_ Notes, on All Activities and Funds (Continued)
K. Long -Term Liabilities (Continued)
General Obligation, Certificates of Obligation, and Other Long -Term Obligations
$9,750,000 General Obligation Bonds, Series 2017, due in annual installments varying from $455,000 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 $155,000 to $165,000 with final payment due June 15, 2032. Interest is payable semi-
annually at rates ranging from 1.07% 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 waterworks 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.
$8,780,000 General Obligation Bonds, Series 2016, due in annual installments varying from $385,000 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 of $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- 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 $150,000 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.
69
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities Funds (Continued)
K. Long -Term Liabilities (Continued)
General Obligation, Certificates of Obligation, and Other Long -Term Obligations (Continued)
$1,115,000 Tax Notes, Series 2020, due in annual installments of $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 Certificates of Obligation, Series 2021, due in annual
installments varying from $760,000 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 maturity 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 wastewater treatment
plant as needed in connection with the construction of a new wastewater 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 funding 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.
$26,795,000 Waterworks and Sewer System Revenue Bonds, Series 2022, due in annual installments varying
from $510,000 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.
$20,570,000 General Obligation Refunding Bonds, Series 2023, due in annual installments vary from $700,000
to $1,485,000 with final payment due on December 15, 2043. Interest is payable semi-annually at 5.00%. On
December 15, 2032, or any date thereafter, the bonds may be redeemed prior to their scheduled maturities at the
City's option. The bonds were issued on December 14, 2023, at a premium to pay off the Series 2013 General
Obligation Bonds and to fund Phase Il of the wastewater treatment plant. The bonds are reported as obligations
of the General Obligation Debt.
V01
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities and..F rids (Continued)
Detailed . . . ..... . .....
ME
General Obligation, Certificates of Obligation, and Other Long -Term Obligations (Continued)
$42,790,000 Combination Tax and Surplus Revenue Certificates of Obligation, Series 2024, due in annual
installments varying from $515,000 to $2,630,000 with final payment due on June 15, 2054, Interest is payable
semi-annually at rates ranging from 4.0% to 5.0%. On June 15, 2033, or any date thereafter, the bonds may be
redeemed prior to their scheduled maturities at the City's option. The bonds were issued on April 8, 2024, at a
premium for the purpose of constructing the final phase of the City's wastewater treatment plant. The bonds are
reported as obligations of the Enterprise Fund.
$3,995,000 Tax Notes, Series 2025, due in annual installments varying from $405,000 to $675,000 with final
payment due June 15, 2032. Interest is payable semi-annually at 5,00%. The principal installments of this note
are not subject to redemption prior to maturity. The note was issued July 23, 2025, for the purpose of paying
contractual obligations incurred or to be incurred in connection with the purchase and equipment of machinery,
trucks, and other vehicles for Police and EMS including legal, fiscal, engineering, architectural and other
professional services in connection with such projects. The note is reported as General Obligation debt.
The ordinances require that property taxes be levied and collected at a rate sufficient to pay principal and
interest as they come due. They also require that these funds be placed in special interest and sinking funds
created solely for the benefit of the obligations. At September 30, 2025, the fund balance in the Interest and
Sinking Funds are $3,419,675.
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. At September 30, 2025, there were no assets restricted to pay this liability.
A summary of long-term liability transactions for the year ended September 30, 2025, follows, as restated:
71
Balance
Balance
September 30,
September 30,
Due Within
2024
....... .. .. .......
Additions Reductions
2025
- — -----
........... One Year
Governmental Activities
Debt Payable
Bonds Payable
29,665,000
$ - $
1,235,000
$ 28,430,000
$ 1,860,000
Tax Notes Payable
390,000
3,995,000
195,000
4,190,000
600,000
Premium
1,287,309
238,296
118,447
1,407,158
-
Financed Purchases
288,902
- . ..........
177,971_-....110,931
110,93..1....,
Total Debt Payable
31,631,211
4,233,296
1,726,418
34,138,089
2,570,931
Compensated Absences
5,450,925
1,362,731
-
6,813,656
1,372,636
Right -to -use Lease Liability
348,687
186,505
141,200
393,992
128,316
Right -to -use SBITA Liability
676,048
-
169,366
506,682
192,411
Landfill Post -Closure
Care Costs
150,000
Governmental Activities
Long -Term Liabilities
38,256,871
2,036,984
$42002,419
$ 4264294
The change in compensated absences above is a net change for the
year.
71
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on_Al1,Activities. and Fund;.s_ (Continued)
K. Long -Term Liabilities (Continued)
General Obligation, Certificates of Obligation, and Other Long -Term Obligations (Continued)
Component Unit
Notes Payable $ 2,099,585 $ - $ 131,599 $ 1,967,986 $ 131,322
Compensated Absences _m......... 44 964 24,642 * 69,606 24,642
Component Unit
Long -Term Liabilities$ a 2144,549 $ 24642 n $ mmm„131599 $_ 2,037,592 ro$ ww 155,964
The change in compensated �m
* - absences above is a net change for the year.
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
September
30,
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055
Totals
Governmental Water and Sewer
_..........._...-.. ........ ......... __ .... ......
Principal Interest Principal Interest
PEDC
Principal Interest
$ 2,460,000
Balance
$ 2,725,000
Balance
$ 131,322
2,470,000
September 30,
3,035,000
September 30,
Due Within
2,575,000
2024
Additions Reductions
2025
One Year
Business -Type Activities
1,098,843
3,300,000
4,581,922
153,992
Debt Payable
1,017,012
3,430,000
4,428,752
162,387
Bonds Payable
$ 128,770,000
$ - $ 3,830,000
$ 124,940,000
$ 2,725,000
Premium
3,827,481
- 310,787
3,516,694
-
Discount
(303,132)
i19,271i
1283861
-
Total Debt Payable
132,294,349
- 4,121,516
128,172,833
2,725,000
Compensated Absences
719,963
179,991 * -
899,954
179,991
Right -to -use SBITA Liability
1307.5.2 ..
.__..40,037.....
�.... 9017-15
43.51.1....
Business -Type Activities
Long -Term Liabilities
ro$ m 133,145,064
„
$ 179,991 $ 4r 16611 553
µa> ,5
$ $ 12 o,3 w ,502 �
4 16
$ 2 948,502
* - The change in compensated absences above is a net change for the year.
Component Unit
Notes Payable $ 2,099,585 $ - $ 131,599 $ 1,967,986 $ 131,322
Compensated Absences _m......... 44 964 24,642 * 69,606 24,642
Component Unit
Long -Term Liabilities$ a 2144,549 $ 24642 n $ mmm„131599 $_ 2,037,592 ro$ ww 155,964
The change in compensated �m
* - absences above is a net change for the year.
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
September
30,
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055
Totals
Governmental Water and Sewer
_..........._...-.. ........ ......... __ .... ......
Principal Interest Principal Interest
PEDC
Principal Interest
$ 2,460,000
$ 1,378,940
$ 2,725,000
$ 4,979,076
$ 131,322
2,470,000
1,292,722
3,035,000
4,863,401
138,481
2,575,000
1,189,338
3,165,000
4,725,967
146,031
2,140,000
1,098,843
3,300,000
4,581,922
153,992
2,245,000
1,017,012
3,430,000
4,428,752
162,387
8,445,000
3,841,596
19,580,000
19,722,635
1,235,773
6,760,000
2,148,523
23,235,000
15,435,635
-
5,525,000
566,625
24,870,000
10,615,370
-
-
-
27,820,000
5,864,081
-
...............-.........-a......
.........M.M.M.....-....
1..�..8�a ...
_nnnnnl w185,2.3.9.....
$ 32620 000
$ 12 533599
$ 124,940,000
$76,402078w „
$ 1967,986
72
$ 101,526
94,367
86,817
78,856
70,461
75,571
$ 507,598 ,.
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes„on,All Activities and Funds (Continued)
K. Long -Term Liabilities (Continued)
General Obligation, Certificates of Obligation, and Other Long -Term Obligations (Continued)
PEDC has an outstanding $2,500,000 Note Payable to the City issued December 27, 2021, due in monthly
installments of $19,404 through November 27, 2031, and a final payment of $1,035,099 on December 27, 2031,
with an initial interest rate of 2.14%. At September 30, 2025, the balance was $1,967,986 and the interest rate
was 5.32%.
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, 2025 was $231,664, which includes both lease revenue and interest.
As of September 30, 2025, the City had fifty-eight active leases. The leases have receipts that range from $400
to $27,237 and interest rates that range from 0.95% to 4.27%. As of September 30, 2025, the total combined
value of the lease receivable is $2,137,305, the total combined value of the short-term lease receivable is
$159,838, and the combined value of the deferred inflow of resources is $2,018,114. The leases had no variable
receipts or other receipts not included in the lease receivable within the fiscal year.
The City expects to receive the following lease receivable amounts for Governmental Activities in subsequent
years as follows:
Year Ending
., _._.......__._ es
.... General Activrti ..
Member 30
Sel. _....:._
Prmcl gal w„
_....... 1:_
I nterest
. _
2026
$ 159,838
$ 47,149
2027
166,900
44,678
2028
174,175
42,082
2029
163,982
39,366
2030
141,721
36,861
2031-2035
510,690
152,153
2036-2040
376,534
99,892
2041-2045
152,068
62,192
2046-2050
57,691
48,309
2051-2055
67,432
37,368
2056-2060
80,644
24,156
2061-2065
80,487
8,113
2066-2070
5,143
196
Totals $ 2,137,305 $ 642,515
73
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on 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, 2025, the City had twelve active leases. The leases have payments that range from $1,547
to $54,116 and interest rates that range from 0.48% to 4.89%. As of September 30, 2025, the total combined
value of the lease liability is $393,992, the total combined value of the short-term lease liability is $128,316.
The combined value of the right to use asset, as of September 30, 2025 of $701,395 with accumulated
amortization of $280,492 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 within the fiscal year.
As of Fiscal Year -End
Lease Asset Accumulated
....
ated
Asset Class Value Amortization
Equipment............_.. _ $.......w701,39.5.ry
.w...... S280,492 ..
Total Leases $ 701,395 $ 280,492
As of September 30, 2025, 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
3eftember 30,
Princ�fal
Interest
__._.w. ..........
2026
$ 128,316
$ 12,686
2027
128,304
8,613
2028
77,070
4,419
2029
35,088
1,643
2030
25,214 w
_ 789
Totals $ 393992 28>150
74
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed, Notes, on All_ Activities,,, and Funds (Continued)
M. Subscription -Based Information Technology Arrangements (SBITA)
As of September 30, 2025, the City has eight active subscriptions. The subscriptions have payments that range
from $21,312 to $88,338 and interest rates that range from 2.65% to 3.55%. As of September 30, 2025, the total
combined value of the subscription liability is $597,397, and the total combined value of the short-term
subscription liability is $235,922. The combined value of the right to use asset, as of September 30, 2025 of
$1,199,089 with accumulated amortization of $517,775 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.
As of Fiscal Year -End
µ
Subscription Accumulated
Asset ClassAsset Value Amortization
Software .._ ... .... ._.
$ 1,199,089 $ 517.774
Total Subscriptions $ w 1,199,089 $ 517774 a
As of September 30, 2025, 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
Governmental Activities
September 30,
Principal
Interest
_. ..___ . ......
2026
$ 192,411
$ 16,559
2027
148,246
10,695
2028
67,892
5,920
2029
48,981
3,519
2030
49,152
1,790
Business-TEe Activities
Principal Interest
.. .43,511 $ ... .._.
2,867
47,204 1,492
mm.......... �a. 1 $ 4,359
Totals $ 506,682 $ 38,483 $ 90,75 „5 � mmm
N. Interfund Transactions and Balances
During the year ended September 30, 2025, the City made transfers from the Debt Service fund to the Capital
Projects fund of $4,179,784 to provide funding for the construction and acquisition of capital assets. Other
minor transfers were made between funds making up transfers of:
Capital Other Water and
General Progects _- Governmental Sewer Transfers Out
._.._._„
.... _
General $ - $ - $ 291,881 $ 327,392 $ 619,273
Debt Service 125,013 4,179,784 - - 4,304,797
Other Governmental 6,000 - - - 6,000
Water and Sewer448 43 -
_. __. ._w..,. _... _.. 4,43.
4..._..
$ a„ 91,.� 4,,974508
Transfers In �m$ mm....175 451 4,179,784 $ 291 881 327,392 4„ „mmmm
VAI
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes on All Activities and. Funds (Continued)
N. Interfund Transactions and Balances (Continued)
Due To/Due Froms for the year ended consisted of the following:
Due to Debt Service Fund From:
General Fund $ w 78,510
Total Due to Debt Service Fund
Due to Special Revenue Fund From:
General Fund $ 13,739
Total Due to Special Revenue Fund 13 7 3
p , 9
Due to Fiduciary Fund From:
General Fund$ 20,627
Total Due to FiduciaryFund $ 20
,.�.. w_
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, 2025, these accounts, shown as cash and investments on the Statement of Net Position
—Proprietary Funds, are as follows:
Reserve Fund
Contingency Fund
$ 25,768,134
302,617
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:
76
Certificates of
Deposit and
Cash and Cash
Other
Equivalents µ
Investments _._._
Lake Crook
$ 4,634
$
Contingency
290,406
12,210
Loan
42,048
-
Bond Reserves and Sinking Funds
15,139,727
10,628,407
Construction
3,161,926
41,759,314
Other
601,935
-
Total Restricted Assets
$ ,1m9�240�676
�,nmm�e
�99,931
$ 52,399,931
76
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes onAllActivities and Funds (Continued)
P. Related Party
The Mayor 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. Commitments and Contingencies
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 council that resolution of these matters will not have a material
adverse effect on the financial condition of the City.
Asset Retirement Obligation — 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, 2025 to be $5,888,748. 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 wastewater utility system laws and regulations. At September 30, 2025, there were no assets
restricted to pay this liability.
R. Tax Abatements
As of September 30, 2025, 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 job 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
previously 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 Program
Industrial Incentives
Residential
77
Amount of Taxes Abated 2024-25
9,765
4,505
CITY OF PARIS, TEXAS
Notes to Financial Statements (Continued)
September 30, 2025
IV. Detailed Notes, on All Activities and Funds (Continued)
S. Subsequent Events
Subsequent events have been evaluated through March 20, 2026, the date the financial statements were
available to be issued.
In October 2025, the City approved a purchase agreement for the purchase of equipment for $217,974.
In November 2025, the City issued the City of Paris, Texas Special Assessment Revenue Bonds, Series 2025 in
the amount of $2,012,000 related to the Forestbrook Public Improvement District No. 1. The bonds are special
obligations of the City payable solely from the assessments levied against parcels within the Public
Improvement District and other pledged funds held under the indenture.
T. Adjustments and Restatements of Beginning Balances
During the fiscal year 2025, the City implemented GASB Statement No. 101, Compensated Absences.
Implementation of GASB Statement No. 101 resulted in an increase in the compensated absences liability to
reflect time that has accumulated and will be carried over to subsequent years and that is more likely than not to
be used for future paid absences; and a corresponding decrease in beginning net position for fiscal year 2025.
An error was identified affecting previously issued financial statements for the component unit relating to an
expense incurred in the prior year that had not been recorded as a liability at year-end. The effects of the change
in accounting principle and an error correction resulted in adjustments to and restatements of beginning net
position and fund balance, as follows:
111
Reporting Units Affected by Adjustments to and Restatements of Beginning
Balances
s
..............�. __.... ..�.........w
_ ............
�_........ .......... ..........�
.... .......... ....,ryry�
FundsGovernment-Wide
P
Unit
Proprietary
Governmental Business -Type
Economic
Fund
Activities Activities
Develo mem
9/30/2024, as previously reported
_ „
-111,11..
$ 72,753,918
.. _..
$ 45,282,394 $ 72,753,918
$ 7,629,256
Adoption of GASB 101, Compensated Absences
(497,190)
(4,090,006) (497,190)
(44,964)
Error Correction
.............,
9/30/2024, as restated
2.._
„$ 7256,728
w�. 72m 5.._...
$ 411„92,388„ $m 210,0,6728
$ � 7,483,922
111
REQUIRED SUPPLEMENTARY INFORMATION
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COMBINING AND INDIVIDUAL NONMAJOR
FUND STATEMENTS AND SCHEDULES
CITY OF PARIS, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Debt Service Fund
Year Ended September 30, 2025
Revenues
Taxes
Property
Hotel Occupancy
Investment Earnings
Total Revenues
Expenditures
Debt Service
Principal
Interest
Bond Issuance Costs
Total Expenditures
Excess of Revenues
Over Expenditures
Other Financing Sources (Uses)
Tax Notes Issued
Transfers Out
Total Other Financing
Sources (Uses)
Net Changes in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
Schedule 7
Budgeted Amounts
Variance with
Ori sinal
Final
Actual
Final Bud yet
$ 2,600,913
$ 2,600,913
$ 2,683,145
$ 82,232
168,235
168,235
298,392
130,157
22,500
22,500
180,852
158,352
2,791,648
2,791,648
3,162,389
370,741
1,523,728
1,523,728
1,430,000
93,728
1,254,911
1,254,911
1,247,409
7,502
400
400
83,696
(83,296)
2,779,039
2,779,039
2,761,105
17,934
12,609
12,609
401,284
388,675
-
-
4,233,296
4,233,296
-
-4,304,797)
4,304,797)
(71,501 (71,501
12,609 12,609 329,783 317,174
3,089,892 3,089,892 3,089,892 -
$ 3,102,501 $ 3,102,501 $ 3,419,675 $ 317,174
85
CITY OF PARIS, TEXAS
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
Capital Projects Fund
From Inception and Year Ended September 30, 2025
Revenues
Investment Earnings
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)
Proceeds from Sale of Capital Assets
Transfers In
Transfers Out
Certificates of Obligation Issued
Proceeds from Sale Capital of Assets
Total Other Financing Sources (Uses)
Net Changes in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year
Prior Current Total Actual
Years Actual Year Actual to Date
Schedule 8
Project
Authorization
(Bud�et'p
$ 896,813 $ 136,379 $ 1,033,192 $ -
502,576 - 502,576
1,399,389 136,379 1,535,768 -
2,275,598
187,421
285,630
46,204
915,942
3,736,559
725,207
-
35,555
-
563,384
-
568,811
-
13,451,870
1,993,252
144,232
-
7,100
35,000
110,667
-
19,083,996
5,963,436
(17,684,607) (5,827,057)
-
2,225
10,014,042
4,179,784
(2,549,549)
-
12,918,399
-
90,100
-
20,472,992
4,182,009
$ 2,788,385
(1,645,048)
86
2,958,692
$ 1,313,644
2,463,019
359,109
331,834
285,630
4,652,501
915,942
725,207
1,393,624
35,555
35,555
563,384
923,781
568,811
1,181,019
15,445,122
48,545,015
144,232
228,000
7,100
35,000
110,667
159,100
25,047,432
54,061,775
(23,511,664)
2,225
14,193, 826
(2,549,549)
12,918,399
90,100
24,655,001
$ 1,143,337
(54,061,775)
$ (54,061,77
CITY OF PARIS, TEXAS
Nonmajor Governmental Funds
September 30, 2025
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted, committed, or assigned to
expenditures for particular purposes.
Community Development Block Grant — This fund accounts for funds received from various federal grant programs and
expended for community development purposes.
Special Revenue Fund — This fund accounts for funds received from various sources and can be expended for improving
efficiency of the administration of justice; enhancing child safety, health, and nutrition; security devices and
technological enhancements for municipal court; and other improvement activity.
Cox Field Airport Fund — This fund accounts for activities of Cox Field Airport.
Library Memorial Funds — These funds account for resources given for book and library related purposes in memory of
individuals.
Permanent Fund
The permanent fund is used to report resources that are legally restricted to the extent that only earnings, not principal,
may be used for purposes that support the City's programs.
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.
87
CITY OF PARIS, TEXAS
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2025
Schedule 9
Liabilities
Accounts Payable and Other Accrued Liabilities S
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Leases
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
- $ 2,015 $ 22,307 $ $ 24,322 $
2,015 22,307 24,322
- 918 340 918,340
918,340 �. 918,340
Inventories - 1,972
Permanent Library Funds - -
Restricted for
Law Enforcement 1,548,610 -
Community Development 226,821 27,097
Assigned
Library
Community Development 264,035
Total Fund Balances 264,035 1,775,431 29,069
$ 24,322
24,322
918 340
918,340
1,972
- 1,972
-
113,656 113,656
1,548,610
- 1,548,610
Permanent
253,918
80,362 80,362
80,362
Special Revenue Funds
�wwwwww..._....... m.�._,.ww
264,035
Fund
._
113 656 2,262,553
Community...,,,..
_.
Total
Development
Special
Library
Library
Nonmajor
Block
Revenue
Cox Field
Memorial
Trust
Governmental
Grant
Fund
Airport
Funds
Total
Funds
Funds
Assets
Cash and Cash Equivalents
$ 264,035
$ 1,698,483
$ 11,006
$ 80,362
$ 2,053,886
$ 706
$ 2,054,592
Investments
-
-
-
-
110,907
110,907
Receivables
Accounts (Net of allowance for uncollectibles)
65,224
12,815
78,039
2,043
80,082
Leases
-
943,923
943,923
-
943,923
Inventories
-
1,972
1,972
-
1,972
Due from Other Funds
........_-M
13,739
._ .. - www.
ggmmw ..w
13,739 „
�-�
13,739ww
Total Assets
$ 264,035
$ 1,777,446
$ 969,716
S 80,362
$ 3,091,559
$ 113,656
$ 3,205,215
Liabilities
Accounts Payable and Other Accrued Liabilities S
Total Liabilities
Deferred Inflows of Resources
Unavailable Revenue - Leases
Total Deferred Inflows of Resources
Fund Balances
Nonspendable
- $ 2,015 $ 22,307 $ $ 24,322 $
2,015 22,307 24,322
- 918 340 918,340
918,340 �. 918,340
Inventories - 1,972
Permanent Library Funds - -
Restricted for
Law Enforcement 1,548,610 -
Community Development 226,821 27,097
Assigned
Library
Community Development 264,035
Total Fund Balances 264,035 1,775,431 29,069
$ 24,322
24,322
918 340
918,340
1,972
- 1,972
-
113,656 113,656
1,548,610
- 1,548,610
253,918
253,918
80,362 80,362
80,362
- 264,035
264,035
8Q362 2,148,897
113 656 2,262,553
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 264,035 $ 1,777,446 $ 969,716 $ 80,362 $ 3,091,559 $ 113,656 $ 3,205,215
88
CITY OF PARIS, TEXAS Schedule 10
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Year Ended September 30, 2025
89
Permanent
Special Revenue Funds
Fund
Community
Total
Development
Special
Library
Library
Nonmajor
Block
Revenue
Cox Field
Memorial
Trust
Governmental
Grant
_ Fund
Airport
Funds
Total
Funds
Funds
Revenues
Taxes
Hotel Occupancy
$ -
$ 52,219
$ -
$ -
$ 52,219
$ -
$ 52,219
Fees and Fines
-
26,535
-
-
26,535
-
26,535
Leases
-
-
101,132
-
101,132
-
101,132
Charges for Services
-
-
794,894
-
794,894
-
794,894
Investment Earnings
11,907
67,263
9,673
4,001
92,844
5,511
98,355
Intergovernmental
-
14,511
-
-
14,511
-
14,511
Other
-
91,131
32,711
�- 991
124,833
-
124,833
Total Revenues
11,907
251,659
_
938,410
Z,992
206,968
5,5111,212,479
Expenditures
Current
General Government
-
55,449
-
-
55,449
-
55,449
Public Works
-
45,499
-
-
45,499
-
45,499
Culture and Recreation
-
-
-
14,843
14,843
-
14,843
Cox Field
-
-
850,524
-
850,524
-
850,524
Debt Service
Principal
-
-
6,517
-
6,517
-
6,517
Interest
-
-
633
-
633
-
633
Capital Outlay
Cox Field
-
-
147,573
-
147,573
-
147,573
Total Expenditures
��
100,948
1,005 247
14,843
1,121,038
-
1,121,038
Excess (Deficiency) of Revenues
Over (Under) Expenditures
(U ) p
11 ,907
150,711
(66,837)
(9,851)
85,930
5,511
91,441
Other Financing Sources (Uses)
Inception of Lease
-
-
32,714
32,714
-
32,714
Transfers In
-
291,881
-
291,881
-
291,881
Transfers Out
(5,693)
(307)
-
(6,000)
-
(6,000)
Total Other Financing
Sources (Uses)
-
286,188
32,0407
-
318,595
-
318,595
Net Changes in Fund Balances
11,907
436,899
(34,430)
(9,851)
404,525
5,511
410,036
Fund Balances - Beginning of Year
252,�128
1,338,532
63,499
90,213
1,744,372
108,145
1,852,517
Fund Balances - End of Year
$ 264,035
$ 1,775,431
$ 29,069
$ 80,362
$ 2,148,897
$ 113,656
$ 2,262,553
89
Expenditures
Municipal Court
CITY OF PARIS, TEXAS
274,380
Schedule 11
218,931
Schedule of Revenues, Expenditures, and Changes in Fund Balance
25,000
25,000
Budget and Actual
25,000
Public Works
10,000
Special Revenue Funds
45,499
(35,499)
Culture and Recreation
Year Ended September 30, 2025
1,500
14,843
(13,343)
Budgeted Amounts
5,950
Variance with
-
Original Final
Actual
Final Budget
Revenues
1,005,247
60,598
Total Expenditures
Taxes
1,382,675
1,121,038
261,637
Hotel Occupancy
$ 45,000 $ 45,000
$ 52,219 $
7,219
Fees and Fines
19,515 19,515
26,535
7,020
Leases
- -
101,132
101,132
Charges for Services
835,000 835,000
794,894
(40,106)
Investment Earnings
53,140 53,140
92,844
39,704
Intergovernmental
51,000 51,000
14,511
(36,489)
Other
122,381 122,381
124,833
2,452
Total Revenues
1,126,036 1,126,036
1,206,968
80,932
Expenditures
Municipal Court
274,380
274,380
55,449
218,931
Police
25,000
25,000
-
25,000
Public Works
10,000
10,000
45,499
(35,499)
Culture and Recreation
1,500
1,500
14,843
(13,343)
Health
5,950
5,950
-
5,950
Cox Field
1,065,845
1,065,845
1,005,247
60,598
Total Expenditures
1,382,675
1,382,675
1,121,038
261,637
Excess (Deficiency) of Revenues
1,562,733
$ 1,562,733
$ 2,148,897 $
586,164
Over (Under) Expenditures
(256,639)
(256,639)
85,930
342,569
Other Financing Sources (Uses)
Inception of Lease
-
-
32,714
32,714
Transfers In
75,000
75,000
291,881
216,881
Transfers Out
-
-
(6,000)
(6,000)
Total Other Financing
Sources (Uses)
75,000
75,000
318,595
243,595
Net Changes in Fund Balance
(181,639)
(181,639)
404,525
586,164
Fund Balance -Beginning of Year
1,744,372
1,744,372
1,744,372
-
Fund Balance - End of Year $
1,562,733
$ 1,562,733
$ 2,148,897 $
586,164
ALI]
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERNMENTAL FUNDS
CITY OF PAFJS, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2025 and 2024
Governmental Funds Capital Assets
Land
Buildings
Improvements otber,rhan 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
a
RM,
NMI
23,020,700
22,936,307
9,159,840
9,011,258
29,780,300
25,326,603
56,710,475
52,818,522
Z, 101), 152
393,403_
126,982,885 S 116,628,511
$ 78,378,652
35,764,478
12,839,755
I'M
$ 73,660,534
33,635,121
1
STATISTICAL SECTION
CITY OF PARIS, TEXAS
Statistical Section
September 30, 2025
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 Tables 1-4
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 Tables 5-8
These schedules contain information to help the reader assess the government's
most significant local revenue source, the ad valorem tax.
Debt Capacity Tables 9-13
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 Tables 14-15
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 Tables 16-19
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.
92
CITY OF PARIS, TEXAS Table I
Net Assets/Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Business -Type Activities
Net Investment in Capital Assets $ 33,466,855 24,198,822 $ 18,322,809 $ 25,779,748
Restricted - - - -
Unrestricted 14,460,833 22,900,345 22,945,722 16,473,443
Total Business -Type Activities,
Net Position
$ 47,927,688
Fiscal Year
$ 41,268,531
$ 42,253,191
2016
2017
201 8
2019
Governmental Activities
Net Investment in Capital Assets
$ 63,972,639
$ 46,170,160
$ 39,036,237
Net Investment in Capital Assets
$ 30,505,784
$ 21,971,338
$ 20,713,428
$ 18,064,569
Restricted
3,003,799
3,004,564
12,548,372
8,782,171
Unrestricted
1,890,470
11,159,128
53,717
4,831,122
Total Governmental Activities,
Net Position
$ 83,327,741
$ 83,234,197
$ 74,584,048
Net Position
$ 35,400,053
$ 36,135,030
$ 33,315,517
$ 31,677,862
Business -Type Activities
Net Investment in Capital Assets $ 33,466,855 24,198,822 $ 18,322,809 $ 25,779,748
Restricted - - - -
Unrestricted 14,460,833 22,900,345 22,945,722 16,473,443
Total Business -Type Activities,
Net Position
$ 47,927,688
$ 47,099,167
$ 41,268,531
$ 42,253,191
Primary Government
Net Investment in Capital Assets
$ 63,972,639
$ 46,170,160
$ 39,036,237
$ 43,844,317
Restricted
3,003,799
3,004,564
12,548,372
8,782,171
Unrestricted
16,351,303
34,059,473
22,999,439
21,304,565
Total Primary Government,
Net Position
$ 83,327,741
$ 83,234,197
$ 74,584,048
$ 73,931,053
93
Table 1
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 21,907,532
$ 26,703,929
$ 28,267,799
$ 31,070,770
$ 11,085,414
$ 16,803,202
8,272,920
7,357,621
6,528,631
7,540,275
8,304,997
7,471,035
6,866,108
6,606,102
22,093,914
22,295,017
25,891,983
12,541,987
$ 37,046,560 $ 40,667,652 $ 56,890,344 $ 60,906,062 $ 45,282,394 $ 36,816,224
$ 28,880,579
$ 31,236,956
$ 20,720,075
$ 26,718,407
$ 10,791,448
$ 63,319,720
14,923,230
13,975,247
15,457,391
15,782,990
61,962,470
12,193,996
$ 43,803,809 $ 45,212,203 $ 36,177,466 $ 42,501,397 $ 72,753,918 $ 75,513,716
$ 50,788,111
$ 57,940,885
$ 48,987,874
$ 57,789,177
$ 21,876,862
$ 80,122,922
8,272,920
7,357,621
6,528,631
7,540,275
8,304,997
7,471,035
21,789,338
20,581,349
37,551,305
38,078,007
87,854,453
24,735,983
$ 80,850,369
$ 85,879,855
$ 93,067,810
$ 103,407,459
$ 118,036,312
$ 112,329,940
94
CITY OF PARIS, TEXAS Table 2
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Program Revenues
Governmental Activities
Charges for Services
General Government
6,572
Fiscal Year
214,000
304,818
2016
2017
2018
2019
Expenses
Public Works
1,780,836
1,463,576
1,470,248
Governmental Activities
Health
2,519,387
2,609,811
2,732,908
General Government
$ 3,463,908
$ 3,748,965
$ 3,421,223
$ 3,651,888
Finance
400,665
398,262
404,443
402,943
Public Safety
12,595,127
12,456,655
12,061,033
13,228,151
Public Works
7,020,333
7,126,349
6,882,186
8,274,343
Health
2,633,051
2,836,429
2,884,339
3,205,596
Culture and Recreation
799,187
781,092
866,435
914,874
Cox Field Airport
217,995
235,546
243,666
344,964
Interest on Long -Term Debt
237,313
185,852
399,291
194,004
Total Governmental Activities
27,367,579
27,769,150
27,162,616
30,216,763
Business -Type Activities
Water and Sewer Services
12,100,940
14,095,860
14,594,309
14,568,695
Total Business -Type Activities
12,100,940
14,095,860
14,594,309
14,568,695
Total Primary Government
Expenses
39,468,519
41,865,010
41,756,925
44,785,458
Program Revenues
Governmental Activities
Charges for Services
General Government
6,572
181,197
214,000
304,818
Public Safety
361,100
342,083
376,322
353,571
Public Works
1,780,836
1,463,576
1,470,248
1,437,157
Health
2,519,387
2,609,811
2,732,908
2,979,160
Culture and Recreation
16,874
127,997
120,942
100,014
Cox Field Airport
91,810
98,382
134,716
161,527
Operating Grants and Contributions
672,298
338,718
154,497
165,064
Capital Grants and Contributions
424,332
2,147,065
522,574
1,160,602
Total Governmental Activities
5,873,209
7,308,829
5,726,207
6,661,913
Business -Type Activities
Charges for Services
Water and Sewer 14,617,218 13,781,748 14,168,934 14,452,703
Operating Grants and Contributions - - - -
Capital Grants and Contributions - - - -
Total Business -Type Activities 14,617,218 13,781,748 14,168,934 14,452,703
Total Primary Government
Program Revenues 20,490,427 21,090,577 19,895,141 21,114,616
95
Table 2
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 3,927,783
$ 5,000,473
$ 7,371,230
$ 4,224,231
$ 5,425,724
$ 6,319,376
481,645
480,880
519,980
1,051,634
796,901
831,615
12,727,703
11,874,360
12,265,360
13,157,874
13,761,148
21,777,271
6,699,707
6,452,355
8,186,910
9,148,859
9,819,300
10,836,898
4,267,819
3,962,596
3,781,493
9,029,457
6,606,156
8,355,465
846,669
762,080
774,910
932,113
988,985
1,266,589
311,796
374,649
1,099,517
1,109,416
1,061,018
999,324
115,000
99,169
52,281
- 39,542
262,654
228,305
29,378,122
29,006,562
34,051,681
38,693,126
38,721,886
50,614,843
14,026,074
15,241,543
15,747,874
19,043,534
20,624,122
23,111,336
14,026,074
15,241,543
15,747,874
19,043,534
20,624,122
23,111,336
43,404,196
44,248,105
49,799,555
57,736,660
59,346,008
73,726,179
277,689
237,376
567,805
513,883
627,895
638,840
562,859
530,151
346,023
317,331
321,835
319,966
1,473,803
1,493,826
1,488,587
1,479,235
1,637,218
1,722,549
4,790,535
4,818,960
5,946,071
8,745,253
6,648,010
7,108,890
60,928
80,657
65,827
75,814
78,512
76,710
161,619
170,579
774,986
840,779
742,095
795,494
2,151,740
369,289
522,574
1,536,446
1,467,445
551,903
324,889
239,450
1,096,373
1,090,865
1,237,428
57,789
9,804,062
7,940,288
10,808,246
14,599,606
12,760,438
11,272,141
15,043,788
16,567,528
18,397,839
19,633,034
20,935,627
20,741,292
-
-
1,371,533
998,533
468,281
117,103
-
-
-
62,500
188,074
-
15,043,788
16,567,528
19,769,372
20,694,067
21,591,982
20,858,395
24,847,850
24,507,816
30,577,618
35,293,673
34,352,420
32,130,536
96
CITY OF PARIS, TEXAS Table 2
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2016 2017 2018 2019
Net (Expense)/Revenue
Governmental Activities __SIL,494,370L ,20,460,321 (21,436,409 (23,554,850)
Business -Type Activities 2,516,278 ��314,-112 425,375 115,992)
Total Primary Government,
Net Expense (18,978,092) ___22,774,4331 (21,861,784) (23,670,842)
General Revenues and Transfers
Governmental Activities
Property Taxes
7,748,872
8,175,530
9,170,951
9,358,943
Sales Taxes
7,051,858
7,233,526
7,317,162
7,369,079
Franchise Taxes
2,502,614
4,211,397
4,315,694
4,305,851
Hotel Occupancy Taxes
630,545
657,270
662,263
675,158
Unrestricted Investment Earnings
80,129
173,656
426,518
581,115
Miscellaneous
315,989
361,125
387,306
272,338
Contributed Capital
651,847
-
-
-
Gain/(Loss) on Sale of Capital Assets
(57,026)
-
(57,940)
49,951
Transfers
1,579,100
382,794
610,955
X331
Total Governmental Activities
20,503,928
21,195,298
22,832,909
22,089,404
Business -Type Activities
Property Taxes
-
-
-
-
Unrestricted Investment Earnings
291,131
315,872
380,393
577,621
Gain/(Loss) on Sale of Capital Assets
-
-
-
-
Transfers
1,579,100
(382,794)
610,955)
523,031
Total Business -Type Activities
(1,287,969)
(66,92
(230,562)
1,100,652
Total Primary Government
19,215,959
21,128,376
22,602,347
23,190,056
Changes in Net Position
Governmental Activities
(990,442)
734,977
1,396,500
(1,465,446)
Business -Type Activities
1,228,309
381,034)
� (655,937)
984,660
Total Change in Net Position
$ 237,867
$ 353,943
$ 740,563
$ (480,786)
97
Table 2
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
(19,574,060) 066,27423,243,435�y24093,5201 (25,961,448) (39,342,702
1,017,714 1,325,985 4,021,498 1,650,533 967,860 ____2� ,252,941
(18,556,346)1�9 740,28 (19,221,937) 2442,9871 4,993,588) 51
9,338,087
9,561,394
9,863,420
9,207,529
11,121,845
11,216,999
8,245,939
9,196,157
9,650,605
10,496,451
10,828,578
11,402,451
4,714,021
4,253,182
4,827,601
4,725,373
4,697,982
4,748,333
872,418
1,192,873
1,151,124
1,284,639
1,451,801
1,349,654
197,203
41,704
279,262
1,369,937
1,968,083
1,616,529
714,470
546,391
1,548,315
1,012,657
3,061,069
1,291,966
_
-
-
-
-
3,506,894
25,246
125,176
111,727
170,071
-
116,666
146,679
(177,451
11,746,203
( 157,419
23,005,896
282,954
23,960,705
24,739,426
39,178,257
28,109,238
10,123,462
34,966,538
-
-
-
1,228,894
1,145,302
1,345,979
427,723
(51,563)
(1,376,170)
3,248,285
5,133,463
3,855,749
-
19,321
66,138
38,800
-
25,247
146,679
177,451
(11,746,203
157,419
23,005,896
282,954
574,402
145,209
(13,056,235)
4,673,398
29,284,661
5,509,929
24,535,107
24,884,635
26,122,022
32,782,636
39,408,123
40,476,467
4,386,645
3,673,152
15,934,822
4,015,718
(15,837,986)
(4,376,164)
1,592,116
1,471,194
�9,0�34,737)
6,323,931
30,252,521
3,256,988
$ 5,978,761 $ 5,144,346 $ 6,900,085 $ 10,339,649 $ 14,414,535 $ 1,119,176)
98
General Fund
Nonspendable
Restricted
Unassigned
Total General Fund
All Other Governmental Funds
Nonspendable
Restricted
Assigned
Unassigned
Total All Other Governmental Funds
CITY OF PARIS, TEXAS Table 3
Fund Balances of Govenunental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2016 2017 2018 2019
$ 223,911 $ 326,985 $ 418,995 $ 483,575
387,950 446,493 498,359 577,814
10,227, 839 10,849,390 11,753,392 12,390,089
$ 10,839,700 $ 11,622,868 $ 12,670,746 $ 13,451,478
$ 91,565 $ 92,347
2,525,049 12,009,532
188,569 82,042
- 57,705
$ 93,689 $ 96,007
10,991,000 8,108,350
299,013 292,571
$ 2,805,183 $ 12,241,626 $ 11,383,702 $ 8,496,928
99
Fiscal Year
2020 2021 2022 2023 2024 2025
$ 500,495
$ 181,620
$ 394,147
$ 273,147
$ 3,901,324
$ 1,594,170
659,322
710,901
750,650
802,872
846,070
920,885
15,990,260
20,596,761
23,926,645
26,253,936
25,624,971
28,248,523
$ 17,150,077 =j=2L,489,=28=2= $ 25,071,442 $ 27,329,955 $ 30,372,365 $ 30,763,578
$ 98,400
$ 98,543 $ (46,841)
$ 1.02,505
$ 207,978
$ 214,891
7,512,067
6,633,684 5,679,098
6,636,873
7,350,782
6,436,494
295,955
- 302,615
319,421
342,341
344,397
-
- 145,724
-
-
-
$ 7,906,422
$ 6,732,227 $ 6,080,596
$ 7,058,799
$ 7,901,101
$ 6,995,782
Will
CITY OF PARIS, TEXAS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Revenue
Taxes
Licenses and Permits
Fines and Fees
Leases
Charges for Services
Investment Earnings
Sanitation
Health
Intergovernmental
Other
Total Revenues
Expenditures
Current
General Government
Finance
Public Safety
Public Works
Health
Culture and Recreation
Cox Field Airport
Other
Debt Service
Principal
Interest
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
Proceeds From Sale of 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
2016 2017 2018
$ 17,976,072
$ 20,280,057
$ 21,447,857
152,016
155,363
197,920
515,147
491,880
495,708
173,004
272,039
561,234
1,474,874
1,463,576
1,470,248
2,519,387
2,609,811
2,614,504
1,096,630
1,463,514
677,072
386,853
258,051
346,789_
24,293,983-
26 994,291
27,811,332
1,301,401
1,288,458
1,180,280
400,665
398,262
404,443
11,125,560
11,026,655
10,850,538
5,556,359
5,549,270
5,356,374
2,366,673
2,535,135
2,670,131
717,395
697,503
736,513
110,330
129,269
112,562
1,771,889
1,738,115
1,716,365
991,899
1,161,513
1,580,682
254,304
196,358
447,294
-
103,399
4,410
2,350,010
3,564,942
_4,474,952
29,071,427
27,173,947
28,624,534
4,777,444
(179,656)
(813,202
975,185
-
-
-
9,913,399
190,000
3,437,300
466,536
994,335
(1,858,200)
(83,742)
(383,374)
2,554,285
10,296,193
800,961
(70,865)
103,074
40,517
$ (2,294,024)
$ 10,219,611
$ 28,276
5.07%
5.47%
8.09%
101
102
Fiscal Year
iO 19
2022
2023
2024
2025
$21,672,347
$23,106,141
$24,155,434
825.561'800
% 25.793.589
$ 28,045,570
$ 28J63'003
277.507
259.117
211,660
532^557
404,887
610.658
002.742
480,618
743.152
663,873
472^743
455.229
440.489
447,120
-
-
-
167,337
180,619
188,277
194,586
-
-
774,986
848.777
741`994
794,894
742,644
375,074
212,284
282'927
1,369.937
1.968'003
1'616,529
1,437.157
1,462,452
1,470,297
1,462,220
1.461,058
1,405'361
1`704,009
2,991^995
5,117.649
4'806,996
5'933,986
8^733,472
6,637,100
7,096.592
1.325,665
2`503.393
706,574
1.704.040
2'992.541
2.131,405
623,825
2I4502
692�04
524,586
l
1065955
2,118,692
1,063,233
� 43
9
�2���d52
J0�O0�35
42J85�84
44�9���_
42,906,533
1.238,366
1.371.042
1'170,304
1,436.945
1'402,106
1.821^831
2.011'966
402`943
40,645
480.880
519,980
1,051.694
790.901
031'615
11,253.953
12,032^115
11,374,139
23,924,796
12,482.397
12'861/455
15`307.177
5,644019
5.065.867
4'991'668
6.050,354
6,817,178
8,380.291
8,046.677
2`845'874
4,050,990
5,200.820
5.505.417
8'717,240
6.960.778
6`953.714
756.566
723.742
679.491
716'644
013.140
892,739
910,444
210,051
179.631
242'809
972.755
975`641
1'038,916
050'524
1'845.609
I.922'363
I,038.073
1,829,866
1`936`078
2,344,997
2.188`918
1,577.e03
1,635.780
3,315,266
1.663.315
1.196`529
1.599.008
1'918.537
443,205
398.844
389.169
331.657
304.184
929.957
1,281,680
-
-
-
203`212
83,696
4,399,885
5,540,8372�15,698
4,595,330
4,137,2253,259,726
7,324,719
�30,611,
zO74 33 ,86
05
32,306,40532,306,405�
47�3Q�67
�---
39,833,360
---~-�
40�l7�83
-----
47709267
'
1,765,000
-
21,849`699
-
'
1'500,000
-
-
'
-
-
1,115,000
-
'
'
4,233,296
-
(62,000)
(81,992)
-
-
_
57,835
'
'
-
-
'
35,205
'
'
I78.821
13,421
271,089
186,505
-
'
-
218,091
779,748
-
27,678
2,570,626
9,358.332
12,4241,644
1,699125
661.115
4,647116
(550.700)
(2.717,305)
(3,535.783)
@78,440
(1,850,445)
(23,667,011)
(4.930,070)
-
l5l�y6_
�3h7
___l�(�.
0A
~�__�n/�m!-
�
�ll0666
I,319,321
2,771.823
12.100.391
284.092
(105.360)
4,288^718
T71Y4
7.30%
12.4896
4.450,/o
3.97%
6.74%
T95Y6
102
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.
103
Percent
Collection
of Current
of Current
Levy
Year's
Collected
Delinquent
Fiscal
Total
Taxes During
During
Tax
Total
Roll
Year
-Tax Lely —
Fiscal Year
Fiscal Year
Collections
—Collections
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
9,889,259
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
2023
2023-24
12,178,255
11,891,745
97.65
144,617
12,036,362
2024
2024-25
12,630,430
12,185,932
96.48
108,681
12,294,613
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.
103
Ratio
Ratio of
of Total
Delinquent
Collections
Outstanding
Taxes
To Total
Delinquent
To Total
Tax Levi,,
Taxes
v^
Taxjvy Le
_
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
98.83
286,509
2.35
97.34
444,498
3.52
104
Table 5
(Continued)
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CITY OF PARIS, TEXAS Table 7
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Unaudited
Sources:
Lamar County Appraisal District
106
Real Pro pert :
Personal Property
Estimated
Estimated
Assessed
Actual
Assessed.
Actual
Roll
Year
Value
Value
Value
Value
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
2023
2023-24
2,214,972,789
2,944,250,811
669,478,496
894,128,560
2024
2024-25
2,192,196,479
2,925,237,252
650,695,449
871,579,590
Sources:
Lamar County Appraisal District
106
Table
107
Total
Assessed
Estimated
Value as
Assessed
Actual
Percentage of
Total Direct
Bx �
Value
Vxk^c
Actual Value
Tax Rate
$737/465,045
8 1,533`734,568
S 2`271,190,613
67.53%
$ 0.50195
018,108,161
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
808.369,749
1,732`236,641
2,532,606,440
68.40
0.55195
796.855~011
1,794,161`289
2,501,016.300
6925
0j1608
749,929,169
1,924.031,445
2,673,960,614
7195
8.48078
853,324,797
2.228,001'573
3,081,326`370
72.31
045373
939,467,007
2,423,466.605
3,362,933,612
72.06
0.44278
98.928_086
2.884.451.285
3.838,379.371
75.15
0.47782
953.028,086
2,842.801.928
3'796'816,842
74.08
0.46120
107
CITY OF PARIS, TEXAS
Principal Property Taxpayers
September 30, 2025 and 2016
Unaudited
Table 8
Totals
Source:
Lamar County Appraisal District
108
$ 953,006,262 35.25%
2025
Percentage
of Total
Taxable
Freeze Adjusted
Assessed
Taxable
TU.Z
JEof Business
Value
Rank
-Assessed Value.
Vistra Corp. (Lamar Power Partners)
Electric Utility
$ 345,120,980
1
1236%
Campbell Soup Company - A
Disposable Diapers
181,406,982
2
631%
Kimberly-Clark Corporation - A
Food Manufacturer
164,998,064
3
6.10%
American Spiral Weld III Inc.
Pipe Manufacturer
90,772,009
4
3.36%
Essent PRMC, LP A
Hospital
49,765,240
5
1.84%
Oncor Electric Delivery
Electric Utility
36,856,600
6
136%
Potter Industries
Glass Manufacturer
24,517,405
7
0.91%
Atmos Energy
Gas Utility
23,718,530
8
0.88%
Huhtamaki Inc
Electric Utility
18,278,800
9
0.68%
Paris Generation, LP
Electric Utility
17,571,652
10
0.65%
Campbell Soup Company - B
Food Manufacturer
-
0.00%
Campbell Soup Company - C
Food Manufacturer
0.00%
Alpha Lake Limited
Shopping Center
0.00%
Walmart
Discount Store
0.00%
Totals
Source:
Lamar County Appraisal District
108
$ 953,006,262 35.25%
Percentage
Taxable of Total
Assessed Taxable
Value Rank Assessed Value
—~—
$ 296,943,390
l
1166%
88,006369
3
5.83%
88.017,542
2
5.83%
10,990,372
P
0.6996
27'369,961
4
1.81%
22,302.540
5
1.484
-
,°"'"
'
O.O0%
21,701,150
6
1.44%
12,775,831
7
0.85%
-
0.00%
'
0.00%
10,596,530
8
0.70%
90174
10
06
109
Table
CITY OF PARIS, TEXAS
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Unaudited
Table 9
Sources:
Lamar County Appraisal District
City of Paris
110
Ratio
of Net
Not
General
General
Bonded
Bonded
Taxable
Gross
Less Debt
Debt To
Debt
Fiscal
Estimated
Assessed
General
Service
Net General
Assessed
Per
Year�jta
-
_EMulation
Value
Bonded Debt
Funds
Bonded Debt
Value
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
2023-24
24,930
2,801,652,344
28,930,000
3,491,161
25,438,839
0.91
1,020.41
2024-25
25,037
2,842,891,928
28,430,000
3,320,322
25,109,678
0.88
1,002.90
Sources:
Lamar County Appraisal District
City of Paris
110
CITY OF PARIS, TEXAS Table 18
Ratio of Outstanding Debt byType
Lost Ten Fiscal Years
Unaudited
Sources:
City Finance Office
Samco Capital Markets, Inc.
Bureau otEconomic Analysis
lll
Govermnental Activities
Business -Type Activities
General
Fiscal
Obligation
Financed
[eases/
Utility Rate Financed
Leases/
Year
Bonds
—Yuzobus�
yu/cbnueo
SBITA
2016
$ 6/442'624
$],538,45A
$ -
$ 37,997,715 S '
2017
15,461,503
1`397,929
-
-
45.175,173 -
-
2018
14'306,032
1.253,181
-
-
44,264.589 -
-
2019
12.848,000
1.104.890
-
-
41`075,000 '
-
2020
12`975.000
950,526
-
38,875,000 -
2021
11'830.000
792`453
'
955,008
80,430,000 '
-
2022
9,300,000
629,538
218'870
770,000
90'440^000 '
2023
9,860,000
461.737
345,965
580,000
113,005'000 '
167,524
2024
29,665.080
288'902
1.024,735
390,000
128.770,000
130'752
2025
28,430,000
110,931
900'674
4,190.000
124,940,000 -
90`715
Sources:
City Finance Office
Samco Capital Markets, Inc.
Bureau otEconomic Analysis
lll
Table 10
(Continued)
Business -Type
Activities
Total
Percentage
Primary
of Personal
Per
Other Government
Income
Ca )ita
$ - $ 45,978,798
2.47%
$ 1,810
- 62,034,605
3.23
2,438
- 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
- 124,420,226
4.72
5,022
- 160,269,389
6.00
6,408
- 158,662,320
5.80
6,335
112
CITY OF PARIS, TEXAS Table I 1
Direct and Overlapping
Governmental Activities Debt
September 30, 2025
Unaudited
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
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.
113
General
Percent
Amount
Obligation
Applicable
Applicable
Bonded Debt
to
to
Taxin D, Jurisdiction
Outstanding„v
Government
Government
Lamar County
$ 4,225,000
62.75%
$ 2,651,187
Paris Independent School District
36,960,000
49.30
18,221,280
Chisum Independent School District
45,643,535
47.75
21,794,788
North Lamar Independent School District
41,695,000
58.23
24,278,999
Subtotal Overlapping Debt
128,523,535
66,946,254
City of Paris (Direct Debt)
28,430,000
100.00
28,430,000
Total Direct and Overlapping Debt
$ 156,953,535
$ 95,376,254
Per Capita Direct and Overlapping Funded Debt
$ 6,269
$ 3,809
Sources: Outstanding debt and applicable percentages provided by each governmental unit.
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.
113
CITY OF PARIS, TEXAS Table 12
Legal Debt Margin Information
September 30, 2025
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 $.46120 per $100
valuation for the fiscal year ended September 30, 2025.
114
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
115
Net Revenue
Average Remaining
Available
Debt Service Requirements
Fiscal
Gross
Operating
For Debt
Percent
Year
Revenues*
Ex aenses**
ServicePrinci
. al Interest
Total***
Coverage
2015-16
$ 14,894,489
$ 7,834,768
S 7,059,721
$ - $ -
$ -
N/A
201.6-17
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
24,310,01.1
1.1,955,809
12,354,202
956,964 844,960
1,801,924
6.86%
2023-24
26,309,801
12,479,380
13,830,421
978,519 826,765
1,805,284
7.66%
2024-25
26,529,553
14,447,363
12,082,190
1,000,769 807,788
1,808,557
6.81%
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
115
CITY OFPARIS, TEXAS Table 14
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Paris, TX
(l) Includes Paris Independent School District, North Lamar Independent School District,
Cbovo`Independent School District, and Paris Junior College
Sources:
Paris Tridependent School District '9,832
North Lamar Independent School District '2,395
ChivmoIndependent School District -1,l84
Paris Junior College '4,456
Bureau of Economic Analysis
D8Census Bureau
Updated 02/05/2026
116
Paris, TX
MDcxpoixm
Paris, TX
Paris, TX
MicmpNitam
Service Area
MicmpNitan
Micupohon
Service Area
Per Capita
Service Area
Percent
Calendar
Service Area
Pc,moou]
Pomoou}
Modluo
SJuuoi
Unemployment
`ycmryo�uht�o�
____�
_____
��nm�
Income
O
�uw:
2015
49.440
$l^857,D79'V00
$ 37'570
40.5
I2,121
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
2^027,862.464
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
2,330.095,344
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
2023
51.249
2,661,668,064
51,936
422
11.826
3.9
2024
51,249
2,744.742,000
53'557 *
39.7
11,867
4.3
(l) Includes Paris Independent School District, North Lamar Independent School District,
Cbovo`Independent School District, and Paris Junior College
Sources:
Paris Tridependent School District '9,832
North Lamar Independent School District '2,395
ChivmoIndependent School District -1,l84
Paris Junior College '4,456
Bureau of Economic Analysis
D8Census Bureau
Updated 02/05/2026
116
CITY OF PARIS, TEXAS
Principal Employers
Fiscal. Years End 2025 and 2016
Unaudited
Table 15
Source:
U.S. Department of Labor
PEDC
Bureau of Labor Statistics
Additional Information:
September 30, 2025
Se tember 30, 2016
Paris ISD
618
Percentage
396
City of Paris
Percentage
Paris Junior College
446
Chisum ISD
of Total
Lamar County
212
of Total
2,209
City
City
Tax a er
Em to ees
Rank
Em Elo ment
Em leo �ees
Rank
Em cloyment
Paris Regional Medical Center
900
1
7.61%
900
1
8.60%
Kimberly-Clark Corporation
700
2
5.92%
730
3
6.99%
Campbell Soup Company
680
3
5.75%
887
2
8.48%
The Results Company*
419
4
3.54%
-
0.00%
HWH/WePack Logistics
419
5
3.54%
150
7
1.43%
Huhtamaki**
240
6
2.03%
180
6
1.72%
RK Hall Construction LTD
200
7
1.69%
299
5
2.85%
Delco Trailers
200
8
1.69%
-
0.00%
American SpiralWeld
140
9
1.18%
-
0.00%
Universal Fabricating
140
10
1.18%
-
0.00%
Turner Industries
-
0.00%
747
3
7.14%
J Skinner Baking Co.
-
0.00%
95
9
0.90%
Silgan Can Co.
-
0.00%
78
10
0.74%
Daisy Farms
-
0.00%
115
8
1.15%
Totals
4 038
34.13%
4,181
39.99%
Source:
U.S. Department of Labor
PEDC
Bureau of Labor Statistics
Additional Information:
Public Employers:
Paris ISD
618
North Lamar ISD
396
City of Paris
341
Paris Junior College
446
Chisum ISD
196
Lamar County
212
Total
2,209
Notes:
(*) TCTM in 2016
(**) Paris Packaging in 2016
117
CITY OF PARIS, TEXAS
Operating Indicators by Function
Last Ten Fiscal Years
Unaudited
GOVERNMENT:
Date of Incorporation - 1836
Current Charter - Adopted November 2, 1948
FACILITIES:
Airports:
Number of Airports
Fire Protection:
Number of Stations
Number of Fire Hydrants
Number of Employees (certified)
Employees Per 1,000 Population
Libraries:
Number of Libraries
Number of Volumes
Circularization of Materials
Circulation Per Capita
Library Cards in Force
Police Protection:
Number of Stations
Number of Employees (certified)
Employees Per 1,000 Population
Parks and Recreation:
Park Acres Developed
Park Acres Undeveloped
City Parks
Streets:
Paved Lanes - Miles
Unpaved Streets - Miles
WATER AND SEWER UTILITY:
Average Daily Water Consumption - Gallons
Maximum Day's Water Consumption - Gallons
Annual Water Consumption - Gallons
Water Mains - Miles
Water Connections - Metered
Sewer Mains - Miles
Area Miles
Number of Full -Time Employees
Sources: Various City of Paris Departments
Table 16
Fiscal Year
2016 2017 2018 2019
1
1
1
1
3
3
3
3
1,313
1,333
1,357
1,367
51
51
51
51
2.01
2.00
2.00
2.00
1
1
1
1
84,162
85,630
72,288
81,185
119,265
114,611
103,389
99,239
4.69
4.50
4.06
3.90
13,551
14,312
10,441
8,734
1
1
1
1
60
60
57
57
2.36
2.35
2.24
2.24
87
87
87
87
221
221
221
221
24
24
24
24
171
171
171
174
3
3
3
3
10,701,294
13,241,942
10,759,444
10,775,920
17,983,000
18,493,000
18,137,000
19,202,000
3,977,369,000
4,833,309,000
3,927,197,000
3,937,831,000
185
185
185
185
9,995
9,766
9,698
9,679
209
209
209
209
38.02
38.02
38.02
38.02
328
330
331.5
333
119
Table 16
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
1
1
1
1
1
1
3
3
3
3
3
3
1,408
1,399
1,510
1,515
1,519
1,519
51
51
52
52
52
52
2.00
2.08
2.12
2.08
2.08
2.08
1
1
1
1
1
1
79,821
81,739
82,409
83,003
81,969
73,191
81,249
86,120
103,731
95,982
89,429
110,089
3.19
3.51
4.24
3.85
3.58
4.40
8,424
9,337
10,345
10,550
12,766
13,879
1
1
1
1
1
1
57
57
57
57
57
57
2.24
2.32
2.12
2.28
2.28
2.28
87
87
87
87
87
187
221
221
221
221
221
221
24
24
24
24
24
24
174
174
174
174
174
174
3
3
3
3
3
3
11,138,000
11,740,173
13,715,333
14,907,339
13,751, 515
14,918,867
17,747,000
19,386,000
29,661,000
22,876,000
26,013,000
20,565,000
4,078,053,000
4,285,163,000
5,015,467,000
5,574,431,000
5,246,754,000
4,956,853,000
185
185
185
185
185
185
9,810
9,754
9,776
9,778
9,778
9,741
209
209
209
209
209
209
38.02
38.02
38.02
38.02
38.02
38.02
322
314
314
317
317
317
119
CITY OF PARIS, TEXAS
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Table 17
Fiscal Year
2016 2017 2018 2019
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)
174
174
174
174
Streetlights
2,228
2,230
2,231
2,235
Traffic Signals*
-
-
-
-
Culture and Recreation
Park Acreage
286
286
286
308
Swimming Pools - Municipal
1
1
1
1
Tennis Courts
14
14
14
14
Community Centers
I
I
I
I
Water
Water Mains (miles)
185
185
185
185
Fire Hydrants
1,313
1,333
1,357
1,367
Maximum Daily Capacity
36,000
36,000
36,000
36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles)
209
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.
120
Table 17
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
1
1
1
1
1
1
10
10
10
10
10
10
3
3
3
3
3
3
6
6
6
6
-
-
174
174
174
174
174
174
2,235
2,235
2,235
2,240
2,240
2,240
308
308
308
308
308
408
1
1
1
1
1
1
14
14
14
14
14
14
1
1
1
1
1
1
185
185
185
185
185
185
1,408
1,399
1,510
1,515
1,519
1,519
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
121
CITY 0PPARIS, TEXAS
Building Permits at Market Value
Last Ten Fiscal Yum
Dnuodbod
Sources: City ofParis Community Development Department
122
Residential
Total
Commercial
Construction
Property Value
Commercial
Construction
Residential
Fiscal Year
Units
4,I01`770
Units
2016
59
$ 7`038,210
44
2017
18
12'653,657
31
2018
33
39,273^020
31
2819
15
64,446.766
25
2020
21
15,636,180
36
2021
8
7.995.151
17
2022
17
43,395,000
35
2023
4
11.565,427
15
2024
y
3,284,857
31
2025
26
64.365,990
27
Sources: City ofParis Community Development Department
122
Residential
Total
Construction
Construction
Value
$ 3,252,018
$ 11'090,228
3`914`081
16,567'738
4,I01`770
43`374,740
3.744.359
60,191,125
5,366,500
21.002.680
1.908,787
9,903,938
7,237.430
50,632,430
3,766,818
15`332'245
8,452,403
11,737.260
5,668'262
70,034'252
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
123
Fiscal Year
2016
2017
2018
2019
Function:
Manager
3.0
3.0
3.0
3.0
Attorney
4.0
4.0
2.0
2.0
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
83.5
84.0
Fire
57.0
58.0
58.0
58.0
Community Development
4.5
4.5
4.0
4.0
Engineering
7.5
7.5
6.0
6.0
Public Works
2.0
2.0
3.0
3.0
Parks & ROW
11.0
12.0
12.0
12.0
Sanitation
12.0
12.0
11.0
12.0
Streets
15.0
15.0
17.0
17.0
Traffic & Lighting
2.0
2.0
2.0
2.0
Garage
5.5
5.5
6.0
6.0
EMS
26.0
26.0
26.0
27.0
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
16.5
16.5
16.5
17.5
Water Distribution
11.0
11.0
12.5
12.5
Waste Water Collection
8.5
8.5
8.5
8.0
Waste Water Treatment Plant
22.5
22.5
22.5
21.5
Lift Stations
3.0
3.0
3.0
3.0
Information Technology
2.5
2.5
3.5
3.0
Totals
328.0
330.0
331.5
333.0
* Includes related grant employees.
Seasonal employees not included.
Source: City of Paris Finance Department
123
Table 19
(Continued)
Fiscal Year
2020 2021 2022 2023 2024 2025
3.0
4.0
4.0
4.0
5.0
5.0
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
3.0
3.0
5.0
5.0
5.0
6.0
6.0
4.0
83.0
77.5
77.5
79.5
84.5
68.0
59.0
52.0
52.0
52.0
52.0
50.0
5.5
15.0
15.0
15.0
16.0
16.0
4.5
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
11.0
10.0
10.0
10.0
12.0
8.0
8.0
6.0
6.0
6.0
0.0
0.0
11.0
12.0
12.0
12.0
16.0
6.0
1.0
1.0
1.0
1.0
1.0
2.0
5.5
6.0
6.0
6.0
5.5
5.0
27.0
27.0
27.0
27.0
30.0
25.0
10.5
10.5
10.5
10.5
11.0
10.0
2.0
2.0
2.0
2.0
2.0
2.0
8.0
8.0
8.0
8.0
9.0
9.0
18.0
18.0
18.0
18.0
17.0
17.0
9.0
11.0
11.0
11.0
14.0
9.0
8.0
8.0
8.0
8.0
9.0
9.0
26.0
21.0
21.0
21.0
21.0
16.0
3.0
3.0
3.0
3.0
3.0
2.0
3.0
3.0
3.0
3.0
3.0
3.0
322.0
314.0
314.0
317.0
332.0
281.0
124
CONTINUING DISCLOSURE INFORMATION
CONTINUING DISCLOSURE INFORMATION FOR
CITY OF PARIS, TEXAS
UNAUDITED
ASSESSED VALUATION
TABLE 1
2024-2025 Actual Market Value of Taxable Property (100% of Actual)
$
4,156,325,334
Less Exemptions:
Local, Optional Over -65 and/or Disabled Homestead Exemptions $ 39,308,395
Disabled and Deceased Veterans' Exemptions 27,235,267
Productivity Loss 29,507,205
Personal Use of Business Vehicle 189,730
Freeport 106,921,033
Pollution Control / Solar 58,094,137
Abatement Loss 197,906,626
Cap Loss (101/6) 159,811,394
Historical / Other 30,763,708
Totally Exempt Property 529,806,847
Total Exemptions
1,179,544,342
2024-2025 Net Taxable Assessed Valuation
2,976,780,992
Frozen Taxable Value and Transfer Adjustment
_
X271,547,046)
Freeze Adjusted Net Taxable Assessed Valuation
$
2,705,233,946
Source: Lamar County Appraisal District and the Issuer.
GENERAL OBLIGATION BONDED DEBT PRINCIPAL
TABLE 2
General Obligation Debt Principal Outstanding: (As of September 30, 2025)
Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB)
$
1,110,000
General Obligation Bonds, Series 2016
5,465,000
General Obligation Bonds, Series 2017
6,510,000
General Obligation Bonds, Series 2018
390,000
General Obligation Refunding Bonds, Series 2020
1,015,000
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020
785,000
Tax Notes, Series 2020
195,000
Combination Tax and Revenue Certificates of Obligation, Series 2021
38,775,000
General Obligation Pension Bonds, Series 2022
10,390,000
General Obligation Refunding Bonds, Series 2023
20,120,000
Combination Tax and Surplus Revenue Surplus Certificates of Obligation, Series 2024
42,790,000
Tax Notes, Series 2025
3,995,000
Total Gross General Obligation Debt Principal Outstanding:
131,540,000
Less: Self -Supporting General Obligation Debt Principal
Combination Tax and Revenue Certificates of Obligation, Series 2013 (TWDB) (100% WS)
1,110,000
General Obligation Bonds, Series 2016 (100% WS)
5,465,000
General Obligation Bonds, Series 2018 (86% WS)
390,000
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2020
785,000
Combination Tax and Revenue Certificates of Obligation, Series 2021
26,770,000
General Obligation Pension Bonds, Series 2022
10,390,000
Combination Tax and Surplus Revenue Certificates of Obligation, Series 2024
42,790,000
Total Self -Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds:
87,700,000
Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds:
$
43 840,000
General Obligation Interest and Sinking Fund Balance as of September 30, 2025
$
3,419,675
Ratio of Gross General Obligation Debt Principal to 2024-25 Freeze Adjusted Net Taxable Assessed Valuation
4.86%
Ratio of Net General Obligation Debt Principal to 2024-25 Freeze Adjusted Net Taxable Assessed Valuation
1.62%
2024-25 Freeze Adiiusted Net Taxable Assessed Valuation
$
2,705,233,946
Population: 1980 - 25,498; 1990 - 24,699; 2000 - 25,898; 2010 - 25,171 Current (Estimate)
25,037
Per Capita 2024-2025 Freeze Adjusted Net Taxable Assessed Valuation
$
108,049
Per Capita Gross General Obligation Debt Principal
$
5,254
Per Capita Net General Obligation Debt Principal
$
1,751
125
CONTINUING DISCLOSURE INFORMATION FOR
CITY OF PARIS, TEXAS
UNAUDITED
WATERWORKS AND SEWER SYSTEM REVENUE DEBT SERVICE REQUIREMENTS TABLE 2A
Fiscal Year 9/30
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Current Total Debt
Service
The Bonds
Principal
$ 510,000
535,000
565,000
590,000
625,000
655,000
680,000
715,000
750,000
790,000
830,000
870,000
915,000
960,000
1,005,000
1,060,000
1,110,000
1,165,000
1,225,000
1,285,000
1,350,000
1,415,000
1,490,000
1,560,000
1,640,000
1,725,000
$..a _ 26,020,000
126
Combined Debt
Interest
Total
Service
$ 1,297,488
$ 1,807,488
$ 1,807,488
1,271,988
1,806,988
1,806,988
1,245,238
1,810,238
1,810,238
1,216,988
1,806,988
1,806,988
1,186,013
1,811,013
1,811,013
1,153,200
1,808,200
1,808,200
1,127,000
1,807,000
1,807,000
1,093,000
1,808,000
1,808,000
1,057,250
1,807,250
1,807,250
1,019,750
1,809,750
1,809,750
980,250
1,810,250
1,810,250
938,750
1,808,750
1,808,750
895,250
1,810,250
1,810,250
849,500
1,809,500
1,809,500
801,500
1,806,500
1,806,500
751,250
1,811,250
1,811,250
698,250
1,808,250
1,808,250
642,750
1,807,750
1,807,750
584,500
1,809,500
1,809,500
523,250
1,808,250
1,808,250
45 9, 000
1,809,000
1,809,000
391,500
1,806,500
1,806,500
320,750
1,910,750
1,810,750
246,250
1,806,250
1,806,250
168,250
1,808,250
1,808,250
86,250
1,811,250
1,811,250
$ .ww........ 21,005,165µ
$47,025,165
$ 47,025,165
126
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PRINCIPAL TAXPAYERS 2024-25 UNAUDITED TABLE 4
Source: Lamar County Appraisal District
PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLE 5
Tax Net Taxable
Year AssessedValuationtn>
Tax Tax °/6 Collections Year
Rate Le Current Total Ended
2015
$ 1,533,734,568
0.50195
% of
97.10
99.90
9-30-16
Total 2025
1,627,397,467
0.50195
2025 Net Taxable
Assessed
Name
Type of Property
Assessed Valuation
Valuation
Vistra Corp. (Lamar Power Partners)
Electric Utility
$ 345,120,980
12.76%
Campbell Soup Company - A
Disposable Diapers
181,406,982
6.71%
Kimberly-Clark Corporation - A
Food Manufacturer
164,998,064
6.10%
American Spiral Weld III Inc.
Pipe Manufacturer
90,772,009
3.36%
Essent PRMC, LP A
Hospital
49,765,240
1.84%
Oncor Electric Delivery
Electric Utility
36,856,600
1.36%
Palter Industries
Glass Manufacturer
24,517,405
0.91%
Atmos Energy
Gas Utility
23,718,530
0.88%
Huhtamaki Inc
Electric Utility
18,278,800
0.68%
Paris Generation, LP
Electric Utility
�w _ 175 ?1652
0.65%
Total
2,884,451,285
$ 953 006 262
35,25%
Based on a 2025 Freeze Adjusted
Net Taxable Assessed Valuation of
2,7115233,946
2024
Source: Lamar County Appraisal District
PROPERTY TAX RATES AND COLLECTIONS (UNAUDITED) TABLE 5
Tax Net Taxable
Year AssessedValuationtn>
Tax Tax °/6 Collections Year
Rate Le Current Total Ended
2015
$ 1,533,734,568
0.50195
$ 7,627,731
97.10
99.90
9-30-16
2016
1,627,397,467
0.50195
8,093,094
98.11
(b) 99.52 (b)
9-30-17
2017
1,681,747,299
0.55195
9,145,965
98.11
99.51
9-30-18
2018
1,732,236,641
0.55195
9,381,829
98.15
100.71
9-30-19
2019
1,794,161,289
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
2,228,001,573
0.45373
9,888,259
97.83
99.49
9-30-22
2022
2,423,466,605
0.44278
10,441,096
97.73
99.35
9-30-23
2023
2,884,451,285
0.47782
12,178,254
97.65
98.99
9-30-24
2024
2,842,891,928
0.46120
12,630,430
96.48
97.43
9-30-25
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_ror tax years 2013-2022 represent Freeze Adjusted Net Taxable Valuations.
(D) Current Fiscal Year collections are as of September 30, 2022 (Unaudited).
Source: The Lamar County Appraisal District, the City's 2023 Comprehensive Annual Financial Report and additional information from the City.
TAX RATE DISTRIBUTION 'UNAUDITED' TABLE 6
2025-26
2024-25
2023-24
2022-23
2021-22
2020-21
General Fund $ 0.30773
$ 0.31292$$
0.3217b
$ 0.34377
$ 0.37357 $
0.39788
I & S Fund
0.14828
0.15606
0.09901
0.08016
--T---0.45
0.08290
_0.16466
TOTAL $ �WW 0.47239ww
$ 0.46120 m
$......0.47782 µ
$ 0.44278
73 $ww
0.48078
Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District
128
MUNICIPAL SALES TAX TABLE 7
UNAUDITED
The Issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to a property tax relief
and/or an economic and industrial development tax. The voters of the City approved the imposition of a 1/4 cent additional sales tax to be used
for property tax reduction and a 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began on October 1,
1993, and the City received its fust payment in December, 1993. Collections on a calendar year basis are as follows:
Source: State Comptroller of Public Accounts Website.
129
City Collections as
($) Equivalent of
Calendar
Total
1.00%
0.25%
% of Ad Valorem
Ad Valorem
0.25%
Year
Collected
Citi
Pro r Tax Red_
Tax Levv
Tax Rate
EDC
2009
$ 7,591,224
W
$ 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
1,658,382
87.90
0.45
1,658,382
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
2024
13,079,032
8,719,355
2,179,839
89.49
0.49
2,179,839
2025
13,682,994
9,121,943
2,280,508
90.28
0.42
2,280,543
* 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.
129
GENERAL FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
AND ANALYSIS OF CHANGES IN FUND BALANCES
2,720,083
2,570,804
2,412,942
TABLE 8
UNAUDITED
Public Safety
15,307,177
12,860,941
12,479,429
23,917,194
11,367,228
Public Works
Fiscal Year Ended Se tember 30
_ W
6,817,178
20252024
� �
��-
2023-2022
6,953,714
2021
Revenues:
5,595,417
5,199,358
Culture and Recreation
895,601
891,597
Ad Valorem Taxes
$ 8,579,420
$ 8,238,439
$ 8,207,911
$ 8,287,694
$ 7,971,838
Sales Taxes
11,402,451
10,828,578
10,496,451
9,650,605
9,196,157
Franchise Tax
4,748,333
4,697,982
4,725,373
4,827,601
4,253,182
Hotel Occupancy Taxes
999,043
1,081,333
949,983
848,508
881,259
Licenses and Permits
602,742
610,658
484,807
532,557
211,668
Fines and Fees
420,585
423,160
426,856
432,115
615,721
Leases
93,454
95,074
81,361
-
-
Investment Earnings
1,200,943
1,364,200
950,902
201,997
198,965
Sanitation
1,704,009
1,405, 361
1,461,058
1,462,220
1,470,237
Health
7,096,592
6,637,108
8,733,472
5,933,986
4,806,996
Intergovernmental Revenue
609,314
2,035,101
2,051,423
1,574,428
706,574
Other Revenues
938,4001,444,229
710,472
695,364
442 020
Total Revenues
38,395,286
_ 38,861,223
W 39,280,069
34,447,075
30,754,617
Exllen....ltu,es....,µ
Current
General Government
2,720,083
2,570,804
2,412,942
1,917,259
1,613,946
Public Safety
15,307,177
12,860,941
12,479,429
23,917,194
11,367,228
Public Works
8,001,178
7,880,542
6,817,178
6,050,354
4,991,668
Health
6,953,714
6,366,967
8,717,240
5,595,417
5,199,358
Culture and Recreation
895,601
891,597
804,955
715,243
677,612
Cox Field Airport
-
-
-
1,224
242,809
Other
2,188,518
2,364,997
1,936,078
1,829,866
1,838,073
Capital Outlay
General Government
-
401,747
1,386,613
561,165
252,387
Public Safety
340,818
1,585,513
689,772
1,060,330
870,874
Public Works
382,820
255,978
1,060,768
1,199,200
941,371
Health
558,121
296,877
323,283
486,604
216,631
Cox Field Airport
-
-
-
65,000
Debt Service
515,658
581,117
195 155
187,670
186 690
Total Expenditures
37 863,688
36,057,080
36,823,413
43,521,526
28,463,647
Excess (Deficit) of Revenues
Over Expenditures
531,598
2,804,143
2,456,656
(9,074,451)
2290,970
Other Financing Sources (Uses):
Inception of Lease
153,791
271,089
13,421
278,821
-
Inception of Subscription -Based IT Arg.
-
779,748
218,091
-
-
Operating Transfers In
175,451
507,017
1,183,110
12,682,538
2,751,240
Operating Transfers Out
(619,273)
(1,533,905)
(1,822,765)
(603,609)
(802,211)
Proceeds From Sale of Capital Assets
114,441
-
210,000
155,367
151,266
Insurance Recoveries
35,205
-
-
-
-
Total Other Financing Sources (Uses):
(140,385)
23,949
(198,I43
12,513,117
2,100,295
Excess of Revenues and Other Sources
Over Expenditures and Other Uses
391,213
2,828,092
2,258,513
3,438,666
4,391,265
Fund Balance - Beginning of Year,
as previously presented
30,372,365
27,329,955
25,071,442
21,420,072
____17,150,077
Restatement
-
214,318
-
212,704
(52,060)
Fund Balance - Beginning of Year,
as restated
30,372,365
27,544,273
25,071,442
21,632,776
17,098,017
Fund Balance - End of Year
$ 30,763,578
$ 30,372,365
$ 27,329,955
$ 25,071,442
$ 21,489,282
Source: The Issuer's Comprehensive Annual Financial Reports.
130
CONDENSED WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT (UNAUDITED) TABLE 9
Fiscal Year Ended Se tember 30
2025 2024 2023 2022 2021
Operating Revenues
Total Revenues $ 26,529,553 $ 26,309,801 $ 19,633,034 $ 18,397,839 $ 16,567,528
Expenses (N)
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
14,447,363
12,939,187
11,736,249
10,151,891
10,308,035
$ 12,082,190 $
13,370,614
$ 7,896,785 $
8,245,948 $
6,259,493
$ 1,717,488 $
1,711,737
$ - $
- $
-
7.03
5.54
N/A
N/A
N/A
$ 8,038,522 $
7,115,603
$ 6,624,452 $
5,289,797 $
3,842,897
1.50x
1.33x
1.19x
1.56x
1.63x
9,741
9,755
9,778
9,786
9,762
9,328
9,324
9,362
9,198
9,175
(°) Revenues include operating revenues, interest income and other revenues of the Waterworks and Sewer System.
(b) Expenses include total expenses less depreciation and amortization of the Waterworks and Sewer System.
Sources: Information from the Issuer and the Issuer's Annual Audited Financial Reports.
WATER RATES (UNAUDITED) TABLE 10
Current Rates
(Rates Effective July 1, 2022)
Residential 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 2
$5.04 / 100 Cubic Feet
1" and Larger
$66.81 for first 1
$5.04 / 100 Cubic Feet
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"
$16.36 for first 2
$4.94 / 100 Cubic Feet
1" - 2"
$65.54 for first 1
$4.03 / 100 Cubic Feet
Larger than 2"
$235.24 for first
$4.03 / 100 Cubic Feet
Commercial Industrial Class Meters Greater Than Three Inch
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
$4.03 / 100 Cubic Feet
6"
$6,052.22 for first
$4.03 / 100 Cubic Feet
8" and Larger
$8,069.63 for first
$4.03 / 100 Cubic Feet
Source: Information from the Issuer
131
PRINCIPAL WATER CUSTOMERS 2024-2025 AUDITED TABLE 11
(October 1, 2024 to September 30, 2025)
SEWER RATES (UNAUDITED) TABLE 12
Current Rates
Residential Cass
Commercial Industrial Class
(Residential Rates Effective April 1, 2024)
Average Monthly
Average
Name of Customer
Consumption.
_Monthly Bill
Lamar Power Partners*
18,195,873
$ 56,770
Lamar County Water Supply
15,393,287
89,815
Campbell Soup Company
12,998,542
75,075
Daisy Farms
2,597,202
13,322
Paris Generation LP
1,338,394
13,054
Kimberly Clark
899,308
30,833
Paris Housing Authority
192,677
8,112
Lamar County Human Resources
84,820
3,501
Spanish Oaks
80,122
3,319
North Lamar ISD
W 75,356
_____j,493
Total
51,855,581
$ 297,294 ta>
Total Water Sales as of September 30, 2025 (unaudited)
$ 8,624,600
Principal Water Customers represent approximately 41.36% o%total
annual water sales.
Includes raw water sales.
SEWER RATES (UNAUDITED) TABLE 12
Current Rates
Residential Cass
Commercial Industrial Class
(Residential Rates Effective April 1, 2024)
(Commercial Rates Effective April 1, 2024)
Average
Service in Excess of Base
Meter Size
Base Cost
(For Each Additional
(Inche��
(Per Cubic _Foot)
w 100 Cubic Feet) _
3/4" or Less
$25.92 for first 200 Cubic Feet
$12.80 / 100 Cubic Feet
1" and Larger
$127.99 for first 1,000 Cubic Feet
$12.80 / 100 Cubic Feet
(Commercial Rates Effective April 1, 2024)
PRINCIPAL SEWER CUSTOMERS - 2023-2024 (UNAUDITED) TABLE 13
(October 1, 2024 to September 30, 2025)
Name of Customer
Kimberly Clark
Paris Housing Authority
Lamar County Human Resources
Spanish Oaks
Paris Junior College
North Lamar ISD
Lamar County
Campbell Soup Supply
Town Parc Investors. LLC
Hyde Park TX LLC
Total
Total Sewer Charges as of September 30, 2025 (unaudited)
Average Monthly
Average
Service in Excess of Base
Meter Size
Base Cost
(For Each Additional
nches)
{Per Cubic Foot)
100 Cubic Feet)
3/4" or Less
$34.49 for first 200 Cubic Feet
$13.28 / 100 Cubic Feet
1" - 2"
$132.81 for first 1,000 Cubic Feet
$13.28/ 100 Cubic Feet
Larger than 2"
$265.66 for first 2,000 Cubic Feet
$13.28 / 100 Cubic Feet
PRINCIPAL SEWER CUSTOMERS - 2023-2024 (UNAUDITED) TABLE 13
(October 1, 2024 to September 30, 2025)
Name of Customer
Kimberly Clark
Paris Housing Authority
Lamar County Human Resources
Spanish Oaks
Paris Junior College
North Lamar ISD
Lamar County
Campbell Soup Supply
Town Parc Investors. LLC
Hyde Park TX LLC
Total
Total Sewer Charges as of September 30, 2025 (unaudited)
Average Monthly
Average
Consumh'_gn
Monthly Bill
346,028
$ 43,631
192,677
25,061
84,820
11,264
80,122
10,640
65,311
9,293
57,611
7,677
55,915
7,588
49,193
6,533
48,602
6,350
46,544
6,181
_134,218
1,026,823
$ lal
$ 11,360,924
Principal Sewer Customers represent approximately 14.17% of total annual sewer charges.
132
HAYTER
E N G I N E E R I N G
4445 SE Loop 286, Paris, Texas 75460 1 903.785.0303
City of Paris
PO Box 9037
Paris, TX 75461
Provide Municipal Engineering Services as requested in writing by City.
10.03 Engineering
Labor
Senior Survey Technician
Senior Survey Technician
Principal
Surveyor
Project Engineer-P.E.
Engineering & Consulting Labor
Project Manager-P.E.
Engineering & Consulting Labor
Survey Technician I
Survey Technician I
Survey Technician II
Survey Technician II
Expense
Mileage
Invoice number 21238
Date 03/31/2026
Project 180079 Paris 2020 Municipal
Engineering Services
Billed
Hours Rate Amount
8.50 95.00 807.50
1.50 230.00 345.00
0.75 175.00 131.25
2.75 195.00 536.25
1.50 65.00 97.50
1.50 85.00 127.50
Billed
Units Rate Amount
8.00 0.70 5.60
Phase subtotal 2,050.60
Invoice total 2,050.60
Aging Summary
Invoice Number Invoice Date Outstanding Current Over 30 Over 60 Over 90 Over 120
21238 03/31/2026 2,050.60 2,050.60
Total 2,050.60 2,050.60 0.00 0.00 0.00 0.00
City of Paris Invoice number 21238 Invoice date 03/31/2026
Page 1 of 2
City of Paris
Invoice number 21238
Project 180079 Paris 2020 Municipal Engineering Services Date 03/31/2026
City of Paris
Michael N. Tibbets
Principal In Charge
Invoice number 21238
Invoice date 03/31/2026
Page 2 of 2
Item No. 12
i
TO: Mayor, Mayor Pro Tem, and Members of the City Council
Rose Beverly, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJECT: Draft ordinance regulating donation drop boxes
DATE: April 13, 2026
BACKGROUND: It is not possible to drive the streets of Paris without noticing a proliferation of
donation drop boxes. At best, such boxes can be aesthetically unpleasing even when kept tidy; at
worst, when they are allowed to overflow, or or when they are located in high traffic areas, they
can pose immediate threats to public health and safety. Many cities regulate where such boxes can
be placed, the materials they must be constructed of, and how they must be maintained for these
reasons. The federal courts have held that because solicitations for donations, even when in the
form of a donation box, are "speech," regulations on such solicitations may not infringe on the
solicitor's 1st Amendment rights. Consequently, it is important that any such regulations are
carefully drafted.
STATUS OF ISSUE: I have attached a draft ordinance regulating donation boxes for your review
and discussion. I have modeled the ordinance on the ordinance in effect in Arlington, Texas.
Arlington's ordinance has the distinct advantage of having been recently vetted in the courts. The
ordinance requires each donation box to have a permit, and it regulates:
• The location of boxes, which are limited to industrial and commercial zoning districts,
and setbacks so that boxes don't impede traffic.
• Signage, construction materials, size, and appearance of boxes.
The ordinance does not address the "content" of the boxes, by which I mean, it is completely
neutral as to who may operate such boxes so long as they have followed the procedural, location,
and physical requirements of the ordinance. These procedural, location, and physical requirements
are what the courts call "time, place, and manner" regulations, and they are permissible whereas
content based restrictions are not. Because the Arlington ordinance regulates only the "time, place,
and manner" of operating donation boxes and is neutral as to the content of the solicitation, the 5t"
Circuit Court of Appeals found that it passes Constitutional muster. The Supreme Court has
declined to hear the case, so the 5th Circuit opinion, delivered in 2024, stands.
Here is what is in the ordinance before you:
• Every donation box in the city must have a permit, and the permit decal must be displayed
on the box. Unpermitted boxes are subject to impoundment by the city, and if unclaimed
after 10 days will be deemed to be abandoned property subject to sale or disposal by the
city.
• Donation boxes will only be allowed in the Heavy Industrial (HI), Light Industrial (LI),
and Commercial zoning districts. Only one box, with some minor exceptions, may be
placed on a single lot.
• Permit requirements include written consent of the property owner for placement of the
box; keeping the area within 25 feet of the box clean and free of debris or overflowing
donated materials; boxes must be constructed of metal; boxes shall be a single color,
allowing for corporate logos and trade dress color schemes, with no fluorescent colors
permitted; boxes must be at least 40 feet from street rights-of-way (unless there is an
existing landscaping setback) and may not be permitted in within the row of parking
adjacent to street right -of way; contact information and a notice to donors that all donations
must fit inside the box must be legible on the front of the box; and boxes may not exceed
120 cubic feet in size.
Example from City or Arlington website, included here to give an idea of size and materials. It doesn't appear
to be compliant with the setback requirement, but it's difficult to tell if it's adjacent to a street or to a parking
lot.
• Application requirements, which include annual application and permit fees. Permits
expire 1 year from their issuance. Applicants must provide the GPS location of the
proposed box.
• Each box must have a separate permit regardless of who owns it, and each permit
application requires a separate fee.
• Maintenance and upkeep requirements include joint and several liability of the owner of
the box and the property owner for upkeep and removal of donations, meaning the
landowner may be fined as well as the owner of .
• Permits may be revoked if the owner receives a citation under the ordinance in the
preceding 12 -month period; if the owner knowingly made false statements on the
application; or has otherwise become disqualified to have a permit. There is an appeals
process (first to the administrator, and then to the city manager or her designee) for denial
or revocation of permits. In the case of revocation, if the owner doesn't remove the box
within 10 days, the city can impound it. After revocation, the owner will not be eligible for
another permit for one year from the date of revocation.
• Violations of the ordinance are Class C misdemeanors punishable by a fine of up to
$500.00, and each day the violation continues is a separate offense. The State does not have
to prove any culpable mental state. This manner of enforcement is in addition to the
assessment of impoundment and storage fees, and to any other manner of enforcement such
as remedies obtained through the Building and Standards Commission.
• The fee appendix is amended to provide the following fees: Permit fee -4200.00;
impoundment fee -4200.00; storage fee -420.00 per day. These are the fees that Arlington
charges. They seem reasonable.
It's important to remember that all of these requirements have been blessed by the 5'" Circuit, and
that blessing has been left to stand by the Supreme Court. The primary attribute is that the
regulations don't address content (in this case, they don't impermissibly discriminate between
charitable and non -charitable organizations) and that the issues they do address are limited to time
(a one-year permit), place (zoning, setback, and other location specifics), and manner
(maintenance, upkeep, and appearance of boxes). Within this general framework, you may want
to consider some tweaks to the individual requirements, but again, the framework is sound.
BUDGET: There may be some budgetary impact related to staff time and labor in processing and
enforcement, but hopefully, these would be offset by the required fees.
RECOMMENDATION: Provide direction to staff.
Discussion Draft -4 1 2=6
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING CHAPTER 5, "BUSINESS REGULATIONS," ARTICLE 5.05,
"SOLICITORS, VENDORS AND HANDBILL DISTRIBUTORS," BY ADDING
DIVISION 3, "DONATION BOXES;" PROVIDING A REPEALER CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE;
PROVIDING A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the laws of the State of Texas and Section 11 of the Charter of the City of
Paris, Texas grant to the City the exclusive dominion, control and jurisdiction in, upon, and
over and under the public streets, avenues, alleys, highways and other public property of the
City; and
WHEREAS, donation boxes have proliferated throughout the city and have been
placed in various locations, including city rights-of-way and on vacant lots and on other
private property, often without consent of the landowners; and
WHEREAS, the failure to properly empty and clean donations boxes has resulted in
an unsightly and littered appearance around many such boxes; and
WHEREAS, donation boxes attract dumping and the disposal of household furniture,
appliances, trash, and other items not suitable for reuse, which can pose an immediate
adverse effect upon the public health and safety; and
WHEREAS, the City Council desires to enact regulations addressing the placement,
maintenance, operation, and use of donation boxes in the City of Paris to prevent nuisance,
blight, and unsanitary and dangerous conditions resulting from the use of donation boxes;
and
WHEREAS, the City Council finds it necessary to adopt the ordinance for the health,
safety and welfare of the general public and for the protection of landowners and residents
of the city;
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.
1
Section 2. That the City Council hereby amends Chapter 5, "Business Regulations,"
Article 5.05, "Solicitors, Vendors and Handbill Distributors," of the Code of Ordinances, City
of Paris, Texas, by adding Division 4, "Donation Boxes," to read as follows:
"Division 4 Donation Boxes
§ 5.05.100 General Provisions
(a) Purpose. The purpose of this Division is to protect the public health, safety, and
welfare of the residents of Paris by requiring registration and permitting of donation
boxes on private property within the corporate limits of the City of Paris. This
Division further serves to protect the aesthetic well-being of the community and to
promote the tidy and ordered appearance of developed property. The provisions
included herein are intended to provide efficient legal remedies for unpermitted or
poorly maintained donation boxes that threaten the orderly development of the city.
(b) Applicability. The requirements of this Division shall apply to all donation boxes
regardless of whether said boxes were placed prior to the effective date of these
regulations. No previously placed donation boxes shall be granted any legally non-
conforming rights under this Division or any other ordinance or provisions of this
Code of Ordinances as my from time to time be amended.
§ 5.05.101 Definitions
For the purposes of this Division, the following terms have the following meanings:
"Administrator" means the director of the department designated by the City Manager to
enforce and administer this Division, including the directors designees.
"City Appeal Officer" means the City Manager or the City Manager's designee for the
purposes of hearing appeals from denials or revocation of permits.
"Donation Box" means any drop-off box, container, trailer, or other receptacle that is
intended for use as a collection point for accepting donated textiles, clothing, shoes, books,
toys, dishes, household items, or other salvageable items of personal property.
"Fluorescent" means a color that appears very bright, vivid, or glowing to the human eye.
"Front Side" means the side of a donation box that contains the opening that allows the
depositing of donated items.
"GPS" means global positioning system.
"Person" includes an individual, sole proprietorship, corporation, association, nonprofit
corporation, partnership, joint venture, limited liability company, estate, trust, public or
private organization, or any other legal entity.
2
§ 5.05.102 Registration
(a) Donation Box—General Provisions
(1) It shall be unlawful for any person to place or maintain, or allow to be placed or
maintained, a donation box at any location within the City of Paris without first having
been issued a valid permit in according to this Division.
(2) Any donation box located within the jurisdiction of the City of Paris that does not have
a current, valid permit shall be subject to impoundment by the city. Any donation box
impounded by the city shall be released to the owner upon payment of all applicable
impoundment and storage fees. If a donation box is impounded for longer than 10
calendar days, it shall be considered abandoned property subject to disposal or sale
at the city's sole discretion.
(3) Donation boxes shall only be permitted to be placed on real property located within
the following use districts in the city's Zoning Ordinance: Heavy Industrial (HI), Light
Industrial (LI), and Commercial (C). Donation boxes shall not be permitted to be
placed on real property located within any other zoning districts.
(4) It shall be unlawful to place a donation box upon any public property or in any public
right of way regardless of the zoning district without prior written consent of the City.
(b) Donation Box Permit and Decal Required
It shall be unlawful for any person that owns, leases, or is in control of, or is entitled to
possession of real property within the city to authorize or allow any donation box to be
placed on or remain on such real property without a valid permit decal in compliance
with the provisions of this Division.
(c) Permit Requirements
(1) Permit and decal re uired. A permit and corresponding decal to allow a donation box
to be placed and used at a designated location shall be issued by the Administrator
within sixty (60) days of receipt of a completed application after determining that all
the requirements of this Section are satisfied.
(2) AuJhorization fQr ase. A person seeking to place a donation box on real property must
obtain written authorization allowing the placement of the donation box from from
the real property owner, lessee, or property manager of said real property.
(3) Re ui amntIQ keQp clean. A permit holder shall be responsible for collecting the
contents of the donation box to prevent overflow and littering. A permit holder shall
keep the real property situated within 25 feet of the location of a donation box clean
3
and free of debris, trash, broken glass, coat hangers, close, clothing accessories, or
excess donations. A permit holder that fails to maintain the cleanliness of the
surrounding real property may receive a notice of violation from the city. If the city
elects to send a notice of violation to the email address on file for the permit holder,
the permit holder shall have 48 hours to remedy the complaint. Failure to comply
with a notice of violation may result in the issuance of a citation by the city. A permit
holder who is issued a citation within the one-year term of a donation box permit is
subject to revocation of the associated donation box permit.
(4) Number ofkoxgs allowed. No more than one (1) donation may be permitted on any
one lot. In the case of a shopping center or office development that consists of multiple
platted lots, the Administrator shall treat the shopping center or office development
as if it is only one contiguous lot. In the case of a shopping center or office
development, the Administrator can permit a single additional donation box,
provided that neither box is within 50 feet of the other. The 50 foot distance
requirement does not apply if both donation boxes are operated by the same person.
(5) M.aximum.s'N of the box. No donation box shall exceed 120 cubic feet in size.
(6) Permissloconstru t ion._ rials. Each donation box shall be constructed from
metal material to prevent high winds from toppling and/or moving the donation box
and to reduce the potential of arson or graffiti.
(7) CQIoLof the -box. Each donation box shall be painted one solid color. Trade dress color
schemes or corporate logos will be allowed. No fluorescent colors shall be used for a
donation box or its associated signage.
(8) �o,ordinates. No donation box shall be permitted without a valid set of GPS
coordinates identifying the placement location of the donation box.
(9) Pla_,Wt on ssie. No donation box shall be permitted within the row of parking
emen
adjacent to street right-of-way unless an existing landscape setback is present and in
good condition. If there is no existing landscape setback, a donation box shall not be
placed less than 40 feet from the adjacent street right-of-way.
(10) Notic,to donors. Each donation box shall clearly indicate in writing on the
side of each box that all donations must fit into and be placed within the donation box.
The size of lettering for the notice shall not be less than one-half inch in height.
(11) Contac, information. The permit holder placing or maintaining the donation
box shall display on the donation box the current contact information of the person
operating the box including name, street address and phone number. Said
information must be readable and clearly visible to the public from the front side of
4
the box. The size of lettering for the contact information shall be not less than one-
half inch in height.
(d) Applications for Permits
(1) Applicants for permits under this Division shall file a written, sworn application with
the Administrator. The application shall include the written authorization of the
property owner, lessee, or property manager allowing placement of the donation box
on property owned, leased, or managed by them. A site plan depicting the exact
proposed location (with GPS coordinates indicated) of the donation box shall be
submitted with each application.
(2) A separate permit application shall be required for each donation box regardless of
the ownership thereof. Permits issued under the provisions of this Division shall be
valid only at the address and GPS coordinates stated in the permit.
(3) An annual permit fee for each donation box shall be required. All permits shall expire
on the one-year anniversary of the date of issuance.
(4) Any person denied a permit shall have the right to appeal such action in accordance
with the provisions of subsection (i) herein.
(e) Transfer of Permit Prohibited
No permit issued under the provisions of this section shall be transferrable. The
authority a permit confers is conferred only on the permit holder named therein.
(f) Maintenance and Upkeep
(1) The permit holder and the real property owner shall be held jointly and severally
liable and responsible for the maintenance, upkeep, and servicing of the donation box
and for the clean-up and removal of any donations left on the property outside of the
donation box.
(2) The city shall have the authority to abate any property in violation of this section that
is deemed a public nuisance under the procedures contained in Chapter 4, Article
4.03, and Chapter 7, Article 7.04 of this Code of Ordinances. This provision does not
exclude or limit the use of any other provision in the this Code of Ordinances or the
laws of the State of Texas.
(3) The visual and structural integrity of the donation box must be continuously
maintained.
S
(4) The placement of the donation box shall not impede traffic nor visually impair any
motor vehicle operation within a parking lot, driveway, or street.
(5) The donation box shall not be located in a required landscape or building setback,
drainage easement, floodplain, driveway, utility easement, or fire lane.
(6) At least one (1) stacking or parking space must be provided for use of persons
accessing the donation box.
(7) The donation box must not be located in, or block public access to, any required off-
street parking spaces, access easements, or stacking lanes serving a structure on the
property, fire lane, or fire hydrant.
(8) The current permit decal for the specific donation box must be affixed and displayed
at all times on the outside of the donation box on the front side.
(9) The donation box shall only be used for the solicitation and collection of clothing and
household items. All donation materials must fit into and be placed inside the
donation box. The collection or storage of any materials outside the donation box is
strictly prohibited.
(10) No donation box shall be permitted to be placed or remain within 200 feet
from a residential dwelling zoning district. Said distance shall be measured from a the
donation box to a residential lot line.
(11) The donation box shall be continuously maintained in compliance with all
requirements imposed by subsection (c) herein.
(g) Revocation of Permit
(1) Groups. Any permit issued hereunder may be revoked by the Administrator if the
permit holder has (1) received a citation for a violation of this division with the
preceding 12 -month time period; or (2) has knowingly made a false statement in the
application; or (3) has otherwise become disqualified for the issuance of a permit
under the terms of this section.
(2) Notice. Notice of the revocation shall be given to the permit holder in writing, with
the reasons for the revocation specified in the notice, served either by personal
service or by certified United States mail to their last known address. The revocation
shall become effective the day following personal service, or if mailed, three (3) days
from the date of mailing.
31
(3) Anneal: Hearin. The permit holder shall have ten (10) calendar days from the
effective date of such revocation in which to file notice with the Administrator of their
appeal from the order revoking said permit. The Administrator shall provide for a
hearing on the appeal in accordance with the provisions of subsection (i) herein.
(4) Removal of Box; Ii.poundment. Upon finalization of any revocation the permit holder
shall remove said donation box no later than ten (10) days after said final decision.
Upon expiration of this 10 -day grace period, the donation box shall acquire
noncompliant status and be subject to immediate impoundment without further
notice. Any donation box impounded by the city shall be released to the owner upon
payment of all applicable impoundment and storage fees. If a donation box is
impounded for longer than ten (10) calendar days, it shall be considered abandoned
property subject to disposal or sale at the city's sole discretion.
(5) One -fir V in Pre iod. In the event that a permit or permits of a permit holder is
revoked by the Administrator, no second or additional permit shall be issued to such
person within one year of the date such permit or permits were revoked.
(h) Fees
All fees established by this Division shall be in the amount set forth Appendix A,
Article A1.000, Section A1.006 to this Code of Ordinances.
(i) Administrative Appeals of Denial or Revocation of Permit
(1) Upon denial or revocation of a permit for placement of a donation box, the
Administrator, or his or her designee, shall notify the applicant or permit holder in
writing of the reason for which the permit is subject to denial or revocation. The
applicant or permit folder may then file a written request for a hearing with the
Administrator within ten (10) calendar days following service of such notice. If no
written request for hearing is filed within ten (10) calendar days, the denial or
revocation is final.
(2) Upon receipt of a written request for hearing of denial or revocation of a donation box
permit, the Administrator shall notify the applicant or permit holder of the date and
place of hearing, to be conducted within twenty (20) calendar days of the date on
which the notice of appeal was filed with the administrator.
(3) The hearings provided for in this section shall be conducted by the Administrator or
a designated hearing officer at a time and place designated by the Administrator or
the hearing officer. Based upon the evidence presented at such hearing, the
Administrator or the hearing officer shall sustain, modify, or rescind any notice or
order considered at the hearing. The Administrator shall furnish a written notice of
7
the hearing decision to the applicant or permit holder requesting the hearing. In
reaching his or her decision, the Administrator or designated appeal officer may
consider the factors set forth in subsection 0) (4) herein.
(4) An applicant or permit NoURFer for wnom a clenial or revocation (77 a yerifil
sustained after the hearing in front of the Administrator or designated hearing officer
may appeal that decision directly to the City Appeal Officer.
(5) An appeal, either to the Administrator or designated hearing officer, or to the City
Appeal Officer, shall not stay the denial or revocation of the permit unless otherwise
directed by the Administrator.
0) Appeals of Administrator Decision
(1) All appeals to the City Appeal Officer must be made in writing and received by the city
no later than ten (10) calendar days after any final decision of the Administrator or
designated hearing officer in accordance with subsection (i).
(2) The City Appeal Officer shall schedule the appeal hearing for no less than twenty (20)
days from receipt of the appeal and shall provide written notice of the time and place
of the appeal to the appellant.
(3) If the City Appeal Officer finds by a preponderance of the evidence that the denial or
revocation of the donation box permit was necessary to protect the health, safety, or
welfare of the general public the City Appeal Officer shall affirm the denial or
revocation of appellant's donation box application or permit.
(4) The City Appeal Officer may consider any or all of the following factors when reaching
a decision on the merits of the appeal:
(A) The number of violations, convictions, or liability findings;
(B) The number of previous revocations or denials;
(C) The number of repeat violations at the same location;
(D)The degree to which previous violations endangered the public health,
safety, or welfare; or
(E) Any pending action or investigation by another agency.
(5) After the hearing, the City Appeal Officer shall issue a written order. The order shall
be provided to the appellant by personal service or by certified mail, return receipt
requested.
(6) The City Appeal Officer may affirm or reverse the denial or revocation of the donation
box permit. If affirmed, the order issued must state that the appellant is not eligible
8
to receive a new donation box permit sooner than one year after the date of the order.
If reversed, the donation box permit shall be reinstated immediately (in the case of a
revocation) or within three (3) business days (in the case of a denial).
(7) The determination of the City Appeal Officer shall be final on the date the order is
signed and shall be the final decision by the city.
(8) An appeal to the City Appeal Officer does not stay the effect of a denial or revocation
or the use of any enforcement measure unless specifically ordered by the
Administrator or the City Appeal Officer.
§ 5.05.103 Enforcement and Penalties
(a) Offense/Penalty
(1) A person who violates any provision of this Division by performing an act prohibited
or by failing to perform a required act is guilty of a misdemeanor punishable by a fine
not to exceed Five Hundred Dollars and No/Cents ($500.00). Each day the violation
continues shall be a separate offense.
(2) A culpable mental state is not required for the commission of an offense under this
Article.
(3) Nothing in this Division shall limit the remedies available to the City in seeking to
enforce the provisions of this Division.
(4) All other legal remedies are reserved by the City if necessary to enforce the provisions
of this Division. This shall be in addition to, and not in lieu of, the criminal penalties
provided for in this Division."
Section 3. That Appendix A, "Fee Schedule," Article A1.000, "Miscellaneous Fees," of
the Code of Ordinances shall be be amended by adding Section A1.006, "Donation Box Fees"
to read as follows:
"Section A1.006 Donation Box Fees
The following fees relating to the operation of donation boxes in the city are hereby
established:
(1) Annual permit application fee: $200.00
(2) Impoundment fee: $200.00
(3) Storage fee: $20.00 per day.
9
Section 4. 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 5. 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 6. 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 7. 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.
PASSED AND ADOPTED on by the City Council of the City of Paris, in regular session
on this the day of 2026.
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Stephanie H. Harris, City Attorney
10
Mihir Pankaj, Mayor
Item No. 13
Memorandum
TO: Mayor, Mayor Pro -Tem & City Council
Rose Beverly, City Manager
FROM: Janice Ellis, City Clerk
SUBJECT: CHANGES FOR MEETING DATE IN MAY
DATE: April 13, 2026
BACKGROUND: Ordinarily, the second City Council meeting of May is cancelled due to that
meeting falling on Memorial Holiday.
STATUS OF ISSUE: According to the regular meeting schedule, the fourth Monday (May 27) of
the month is Memorial Day and a holiday.
Option 1: Cancel the May 27 City Council meeting and do not reschedule for another date. There
have been additional City Council workshops in the last several months with more expected. We
also anticipate City Council special meetings during the budget cycle.
Option 2: Cancel the May 27 City Council meeting and reschedule for May 18.
BUDGET: N/A
RECOMMENDATION: Staff recommend Option 1.