C.A.F.R., FY 2006-07COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR
CITY O~ PARIS, TEXAS
For the Fiscal Year Ended September 30, 2007
~~
~~'~
Prepared By
Finance Department
W.E. Anderson, Director
at
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2007
TABLE OF CONTENTS Paee
INTRODUCTORY SECTION
Letter of Transmittal ..................................... .............................. I-1
GFOA Certificate of Achievement ......................................................... I-7
City Organization Chart ................................................................ I-8
List of Elected and Appointed Officials ..................................................... I-9
FINANCIAL SECTION Statement
Independent Auditors'Report .............................. .............................. 1
Management's Discussion and Analysis ..................................................... 3
Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets .............................................................. 11 1
Statement of Activities ............................................................... 13 2
Fund Financial Statements:
Balance Sheet -Governmental Funds ................................................... 15 3
Statement of Revenues, Expenditures, and Changes in Fund Balances -Governmental Funds....... 16 4
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities .............................. 18 5
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual -General Fund ..................................................... 19 6
Statement of Net Assets -Proprietary Funds ............... .............................. 21 7
Statement of Revenues, Expenses, and Changes in Fund Net Assets -Proprietary Funds........... 23 8
Statement of Cash Flows -Proprietary Funds ............................................. 24 9
Notes to Financial Statements .......................................................... 26 -
Schedule
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds .... .............................. 56 1
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds ......................................................... 58 2
Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual:
Criminal Justice Division Grant Special Revenue Fund ..................................... 60 3
Community Development Block Grant Special Revenue Fund . .............................. 61 4
Special Revenue Fund ............................................................... 62 5
Health Department Fund ............................................................. 63 6
Debt Service Fund ................................... .............................. 64 7
Capital Projects Fund ................................................................ 65 8
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules by Source ...................................................... 66 9
Schedule by Function and Activity ..................................................... 67 10
Schedule of Changes by Function and Activity ............. .............................. 69 11
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2007
TABLE OF CONTENTS (Continued) Paee Table
STATISTICAL SECTION
Financial Trends
Net Assets by Component ............................................................. 71 1
Changes in Net Assets ................................................................. 72 2
Fund Balances of Governmental Funds ................................................... 74 3
Changes in Fund Balances of Governmental Funds ......................................... 76 4
Revenue Capacity
Property Tax Levies and Collections ..................................................... 78 5
Property Tax Rates -All Direct and Overlapping Governments ............................... 80 6
Assessed and Estimated Actual Value of Property ..............................:............ 81 7
Principal Property Taxpayers .......................................................... 83 8
Debt Capacity
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita ........................................... 85 9
Ratio of Outstanding Debt by Type ........................ .............................. 86 10
Direct and Overlapping Governmental Activities Debt ........ .............................. 88 11
Legal Debt Margin Information ......................................................... 89 12
Revenue Pledged Coverage -Water and Sewer Revenue Bond ................................. 90 13
Demographic and Economic Information
Demographic and Economic Statistics .................................................... 91 14
Principal Employers (Major Employers) .................................................. 92 15
Operating Information
Operating Indicators by Function ......................................................... 93 16
Capital Asset Statistics by Function ....................................................... 95 17
Building Permits at Market Value ................................. ..................... 97 18
Full-Time Equivalent City Government Employees by Function ................................ 98 19
CONTINUING DISCLOSURE INFORMATION (Unaudited)
Continuing Disclosure Information ........................................................ 100
~~ C~I~T Y~~~~ O,,F ~ ~~~R~hS
February 15, 2008
Mayor Jessee Freelen
and Members of the City Council
City of Paris, Texas
Dear Mayor and Council Members:
I am pleased to submit the Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended
September 30, 2007.
The City of Paris is a financial reporting entity as defined by the Government Accounting Standards Board codification section
2100. As such, it leas a separately elected governing body chosen by its citizens iri a general, popular election, is a legally
separate primary government, and is fiscally independent of other state and local governments. The financial reporting entity
includes all the funds of the primary government and its component unit, the Paris Economic Development Corporation. More
information about PEDC can be found in footnote I.A. which deals with reporting entity topics. There are no other potential
component units.
The primary purpose of this report is to provide the City Council, citizens, financial community, and others with detailed
information concerning the financial condition and performance of the City of Paris. It is strongly recommended that any user
of this report read the Management's Discussion and Analysis included in the financial section of the report. In addition, this
report provides assurance that the City presents fairly its financial position as verified by independent auditors.
THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
The Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended September 30, 2007, which
follows, was prepared by the Finance Department. The financial statements have been audited by McClanahan and Holmes,
LLP, CPAs, whose report is included herein. This audit satisfies Article III, Section 35 of the City Charter which requires that
an annual audit of all accounts of the City be made by an independent certified public accountant.
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P.O. BOX 9037 PARIS. TEXAS 75461-9037 (903) 785-7511 FAX (903) 785-8519
The City Finance Department is responsible for both the accuracy of the presented data and the completeness and fairness of
the presentations, including all disclosures. I believe the data presented is accurate in all material aspects and is presented in a
manner which fairly sets forth the financial position and results of operations of the City. Furthermore, I believe that all
disclosures necessary to enable the reader to gain maximum understanding of the City's financial activity have been included.
The financial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (GASB).
This Comprehensive Annual Financial Report consists of four parts:
1. The Introductory Section includes an organizational chart, list of elected and appointed officials, and this
transmittal letter, which highlights significant aspects of the financial operations during the year and particular
issues faced by the City.
2. The Financial Section includes the independent auditors' report, management's discussion and analysis,
financial statements and related notes, and supplemental financial data.
3. The Statistical Section includes several tables of unaudited data depicting the financial history of the City, as
well as demographic information of other governmental units overlapping the City and other miscellaneous
statistics.
4. The Continuing Disclosure Information Section contains nineteen tables of financial information required by
the United States Securities and Exchange Commission Rule 15c2-12. These tables provide investors with
updated information on all municipal bond issues sold after July 3, 1995.
The Notes to the Financial Statements are provided in the Financial Section and are considered essential to fair presentation
and adequate disclosure for this financial report. The notes include the Summary of Significant Accounting Policies for the
City and other necessary disclosures of important matters relating to the financial position of the City. The notes are treated as
an integral part of the financial statements and should be read in conjunction with them
General Information Regarding the City and Surrounding County
The City of Paris is the county seat and principal commercial center of Lamar County and is located at the intersection of
United States Highways 271 and 82, approximately 100 miles northeast of Dallas near the Red River. The City is served by 7
banks. The City's 2000 census is 25,898 an increase of 4.85% from the 1990 census of 24,699.
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 2000 census is 48,499, an increase of 7.77% over the 1990 census of 45,000.
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 364 bed medical center. It is part of the Essent Health System. Both the
north and south campuses operate fitness centers that offer a wide range of exercise programs and equipment. It compliments
the City's 130 doctors and 21 dentists that provide a wide range of general and special medical services.
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The City provides utilities through its 36 MGD water plant and 7.25 MGD wastewater plant. Electric power is supplied to
Paris by TXiJ 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 12,139.
Tourists are attracted to the area by activities on Lake Crook and Pat Mayse Reservoir. Pat Mayse Reservoir is located 15
minutes from the City and provides 6,000 acres for boating, fishing, and camping. The Gambill Goose Refuge and numerous
hunting and fishing areas are also located in the County. Other points of interest and activities include the Sam Bell Maxey
House, the A.M. Aikin Archives, Red River Valley Exposition, and the Hayden Museum of American Art.
Also, the City has 3 18-hole golf courses, 4 private and 1 public swimming pools, 26 tennis courts, 3 walk/jog tracks, a sports
complex, and 24 public park areas.
Government Organization
The City was incorporated in 1836 with the current charter adopted in November of 1948. 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 serve 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
Current taxable values for fiscal year 2007-2008 reflect a 4.94% increase over the 2006-2007 values. Of this increase 46.7%
was due to new taxable property and the balance due to reappraisal. Building permits for new residential and commercial
construction totaled $27,518,930 for fiscal year 2006-2007. This activity should be reflected in next year's taxable values.
Sales taxes for 2006-2007 increased from the prior year by 5.04%. Current rebates are 5.79% below the 2006-2007 rebates
through December 2007. Sales tax analysis using a 12 month and a 36 month moving average has indicated some weakening
of sales tax revenues.
Hotel occupancy taxes were up 8.74% compared to 2005-2006 taxes. This increase in activity is a reflection of new events
held in Paris designed to draw more visitors to the area.
Franchise fees increased .9% and are expected to continue slow growth. This area is a major source of revenue to the City and
is aggressively guarded by City officials.
The Paris Economic Development Corporation is working hand in hand with the Lamar County Chamber of Commerce to
recruit new business to the azea as well as supporting already existing businesses.
General Fund receipts equaled 103.25% of budget. Expenses did not exceed total budget appropriations. General Fund
expenditures were only 90.04% of budget.
I-3
For the 2007-2008 fiscal year, the City Council adopted a tax rate of .56 cents per $100 of value. This is a 3.225 cent rate
decrease. This rate allows maintaining all services at their current levels or above and funds the interest and sinking fund for
the certificates of obligation issued in 2000, 2002, and 2003.
Major Initiatives
The City of Paris continues to work in environmentally related areas. Since 1984 over $50 million has been spent on water
and wastewater improvements. The City has begun work on formulating a new long range plan to maintain its infrastructure.
The Council voted to increase water and sewer rates with the additional funds being designated for capital expenditures.
The City also continues to expand its effort in law enforcement related areas. Specifically, the City has targeted prevention
efforts with local youth. Programs in this effort include the Police Athletic League, school resource officers, and the DARE
program. One other continuing law enforcement program is the auto theft task force. A felony crimes unit operated in
conjunction with Lamar County, had a successful first year of operation.
From a development standpoint the City has taken several steps. Reentry into the State of Texas Main Street Program should
channel 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 amact people and business to Paris. City
officials are also closely working with Keep Paris Beautiful, Inc. to promote and improve the City. The Historic Preservation
Committee is working with local property owners to maintain the historical character of the City.
Financial Information
The fmancial statements of the City of Paris, Texas, have been prepared in conformity with generally accepted accounting
principles as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles. Using the GASB 34 reporting model, the
City's Comprehensive Annual Financial Report provides for a management's discussion and analysis, government-wide
fmancial statements, major fund fmancial statements, notes to the fmancial statements, and other required supplementary
information.
Cash Management/Investments
The City has a written investment policy that conforms to state statutes, which outlines pemussible 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.
Risk Management
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.
Budgetary Control
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
fmancial plan for the ensuing fiscal year, includes proposed expenditures and the means of fmancing them. Public hearings are
conducted at which all interested persons' comments concerning the budget for the next fiscal year are heard. The budget is
legally enacted by the City Council through passage of an ordinance not later than the 27`~ day of the last month prior to the
beginning of the fiscal year.
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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 duectly monitored by the City
Council.
Internal Controls
Internal accounting controls are designed to provide reasonable, but not absolute, assurance of the safeguarding of assets
against loss from unauthorized use or disposition and reliable financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not
exceed the benefits likely to be derived.
All internal control evaluations occur within this framework. The Finance Department's staff believes the City's internal
control structure adequately ensures compliance with laws and regulations and reasonable assurance for safeguarding of assets.
Debt
The following schedule outlines the outstanding City debt as of 9-30-07:
Moody's
Tax Revenue Final Investors
Issue Supported Supported Maturi RatinQ•
1997 W & S Rev. Bonds $ - $ 3,090,000 06-IS-16 A3
1998 Tax & Rev. Refunding Bonds - 3,240,000 12-15-11 A3
1998 W & S Rev. Refunding Bonds - 3,860,000 12-15-11 A3
2000 Tax & Rev. C. O. 4,690,000 - 12-15-19 A3
2000 W & S Rev. Bonds - 7,925,000 6-15-20 A3
2001 Tax & Rev. Refunding Bonds - 2,800,000 6-15-12 A3
2002 Tax & Rev. C. O. 5,005,000 - 12-15-21 A3
2003 General Obligation
Refunding Bonds 2,601,600 2.818,400 12-15-14 A3
Total
The City has various lease/purchase agreements outstanding for the purpose of acquiring certain equipment items with the
minimum lease payments amounting to $641,497. The last of these leases ends in the year 2010.
A $120,600 note payable for the construction of aircraft hangars and associated appurtenances at the City's Cox Field was
obtained February 27, 1991. The note bears an interest rate of 5% with principal and interest payments made in annual
installments. The current principal outstanding is $34,315.07. Final payment is due August 21, 2011.
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.
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Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Paris for its comprehensive annual fmancial report (CAFR) for the fiscal
year ended September 30, 2006. The Certificate of Achievement is a prestigious national award recognizing conformance with
the highest standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable' and efficiently
organized comprehensive annual fmancial report, whose contents conform to program standards. The CAFR must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the
Certificate of Achievement program requirements, and we are submitting it to GFOA.
Acknowledgments
The preparation of this report could not have been accomplished without the full support and efficient and dedicated efforts of
the entire staff of the Finance Department and the competent services of the independent auditors, McClanahan and Holmes,
LLP, CPAs. I express my appreciation to all members of the Finance Department who assisted and contributed to the
completion of this report and to all City departments involved in the preparation of information for this report. In addition, I
express my appreciation to the Mayor, City Council, and City Manager for their continuing interest and support in planning
and conducting the fmancial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
z~. e. ~~
W. E. Anderson
Director of Finance
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INTRODUCTORY SECTION
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~~~;~~~ ~:I~T~ ~ ~F~~ .~ I
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Paris
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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u""~' President
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Executive Director
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City of Paris Organizational Chart
City
Attorney
EMS ~ ~ Fire ~ ~ Police
MIS I 1 Finance
Citizens of Paris
;;t
City
Council
City
Manager
City Clerk
Municipal
Judge
Municipal
Court
Libra Community
ry Development
Utilities ~ ~ Airport ~ ~ Main Street
Accountin /
9
Auditing Utili Billin /
ty 9
Collection Warehouse/
Purchasing
HR Water
Treatment Wastewater
Treatment, ~~ Stations
Pu blic
Works
Water
Sanitation Wastewater Streets/ Parks/
Recreation/
Engineering
Garage
Distribution Collection Highways R.O.W.
Public
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:~
City of Paris, Texas
List of Elected and Appointed Officials.
Elected Officials
Jessee James Freelen -Mayor
Bill Strathern -Mayor Pro-Tem
Will Biard
Steven Brown
Kevin Gray
Mary Ann Fisher
Don Wilson
Appointed Officials
Kevin Carruth -City Manager
W. E. Anderson -Finance Director
Stacy S. Napier -City Engineer/Public Works Director
Jon Clack -Utilities Director
Karl Louis -Police Chief
Ronnie Grooms -Fire Chief
Tom Hunt -Municipal Court Judge
Lisa Wright -Community Development Director
Priscilla McAnally -Librarian
Kent McIlyar -City Attorney
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FINANCIAL SECTION
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MCCLANAHAN AND HOLMES, LLP
CERTIFIED PUBLIC ACCOUNTANTS
R. FRANK RAY, CPA 228 SIXTH STREET, S.E.
R. E. BOSTWICK, CPA PARIS, TEXAS 75460
STEVEN W. MOHUNDRO, CPA 903-784-4316
GEORGE H. STRUVE, CPA FAX 903-784-4310
ANDREW B. REICH, CPA
304 WEST CHESTNUT
DENISON,TEXAS75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
Unqualified Opinions on Financial Statements BONHAM, TEXAS 75418
Accompanied by Required Supplementary Information 903-583-5574
FAX 903-583-9453
and Supplementary Information
Independent Auditors' Report
Honorable Mayor and City Council
City of Paris, Texas
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information including the
budgetary comparison of the City of Paris, Texas, as of and for the year ended September 30, 2007, which collectively
comprise the City's financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial statements based
on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We
believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund, and the aggregate remaining fund information including the budgetary comparison for the General Fund of the
City of Paris, Texas, as of September 30, 2007, and the respective changes in financial position and cash flows, where
applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the Urrited
States of America.
The management's discussion and analysis on pages 3 through 10 are not a required part of the financial statements but
are supplementary information required by accounting principles generally accepted in the United States of America.
We have applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and City Council
City of Paris, Texas
Page 2
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of Paris, Texas', financial statements. The Introductory Section; Statistical Section; Continuing Disclosure
Information; and the combining and individual fund statements and schedules are presented for the purposes of
additional analysis and are not a required part of the financial statements. Such information, except for that portion
marked "unaudited" on which we express no opinion, has been subjected to the auditing procedures applied in the audit
of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial
statements taken as a whole.
Certified Public Accountants
Paris, Texas
February 15, 2008
McCLANAHAN ANt) HOLMES, LLP
MA~~IAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Paris, 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, 2007. 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
• From its peak of .695 cents per $100 in value in the 2003-04 fiscal year, the City has worked to lower its tax rate
to .59225 for the year covered by this report: fiscal year 2006-07. With the start of fiscal year 2007-08, the City
lowered its rate again to .56 cents per $100 in property value. The City has accomplished this by strict review of its
operational needs and increases to the taxable value of property within the City.
• The number of budgeted positions has dropped from 369 in fiscal year 2002-03 to 315 in fiscal year 2006-07. This
reduction was also part of an operational review and represents a significant and annually repeating savings to the
City.
• Between the years 2001 and 2004 City-wide expenses exceed City-wide revenues by $4,478,546. Since that time
(2005-2007), City-wide revenues have exceeded City-wide expenses by $8,381,379. The City has made a
concentrated effort to reduce expenses while seeking new sources of revenue. The financial turn around from these
efforts have yielded impressive results.
• Taking advantage of the increase in its General Fund reserves, the City Council authorized a transfer to the Capital
Projects Fund in the amount of $794,239 for the City to set up a computer aided dispatch-mobile data wireless
network. This project will completely modernize this communication area of our emergency services departments
(Police, Fire, and EMS) and offers opportunity for use by other departments.
• The assets of the City of Paris exceeded its liabilities at the close of the most recent fiscal year by $75,521,643(net
assets) an increase of $2,980,244 or 4.10% over the previous .year amount of $72,541,399. Of the amount known
as net assets, $18,875,035 (unrestricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
• As of the close of the current fiscal year, governmental funds reported combined ending fund balances of
$14,229,200 compared to $10,976,111 the previous year. This amounts to an increase of $3,253,089 or 29.63%.
While the overall combined ending fund balances for governmental funds increased, the unreserved portion of
those fund balances was $12,586,177 or an increase of $2,996,183 (30.38%) over the previous year amount of
$9,859,994. Unreserved fund balance is available for spending at the government's discretion. The primary reason
for the increase in fund balance was the improved cash position of the City.
• At the end of the fiscal year, unreserved fund balance for the general fund was $11,581,136 or 63.65% of total
general fund expenditures.
• The City of Paris' non-current liabilities decreased by $2,955,282 or 7.20% during the current fiscal year. This
decrease is consistent from year to year as the bulk of this decrease is due to payment of bonded debt that was set
up on a level pay basis.
• Total charges for services for the City of Paris were $17,218,686 compared to $17,776,211 the previous year.
Operating/capital grants & contributions were $1,244,186 compared to $1,890,962 the previous year. Fewer grants
have been available to the City over the last two years. General revenues were $18,152,717 compared to
$17,095,017 the previous year.
• There was a gain of $102,195 on the sale of Capital Assets.
• $1,100,000 in transfers from business-type activities to governmental activities occurred during the year.
• City-wide liabilities decreased $3,258,321 from $42,719,565 to $39,461,244. This amounted to 7.62%.
• City-wide expenses increased $321,801 or .96%.
• The ratio of net assets to expenses was 217.59% for the year 2005-06 and 224.35% for the year 2006-07 while
unrestricted net assets changed from $15,901,209 in 2005-06 to $18,875,035 in 2006-07 an increase of 18.70%
reflecting the City's improved cash position.
• The ratio of city-wide debt service to total expenditures was 6.97% for the year OS-06 and 7.73% for the year
2006-07.
• Net debt to assets, a measure of solvency, was 35.60% in 2005-06 and 33.11% in 2006-07.
Overview of the Financial Statements
This discussion and analysis are 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 fmancial 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 themselves.
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 aprivate-sector business.
The statement of net assets presents information on all of the City of Paris' assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the most recent
fiscal year. All changes in net assets 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 (government 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, library, 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 fmancial information
presented for the primary government itself.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The City of Paris, like other state and local governments, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Paris can be divided
into two categories: governmental funds and proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide fmancial 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 maintains 10 individual governmental 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 7 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 City of Paris adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been
provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund fmancial statements can be found beginning at Statement 3.
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 fmancial statements, only in more detail.
The proprietary fund used by the City of Paris is considered a major fund.
The basic proprietary fund financial statements can be found beginning with Statement 7 and continuing through Statement
9 of this report.
Notes To The Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-
wide and fund financial statements. The notes to the financial statements can be found immediately after the Statement of
Cash Flows-Proprietary Funds in this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the City of Paris' progress in funding its obligation to provide pension benefits to its
employees. Required supplementary information can be found in Note V in Notes to Financial Statements.
Combining and individual fund statements and schedules can be found immediately after the Notes to the Financial
Statements in this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's fmancial position. In the case of the
City of Paris, assets exceeded liabilities by $75,521,643 at the close of the most recent fiscal year. This compares to
$72,541,399 for the previous year.
By far the largest portion of the City of Paris' net assets (68.90%) reflects its investment in capital assets (e.g., land,
buildings, machinery, and equipment). The City of Paris uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Paris' investment in its capital assets
is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Paris' Net Assets
Governmental Activities Business-Type Activities Total
2007 2006 2007 2006 2007 2006
Current & Other Assets $ 15,016,286 $ 12,159,632 $ 11,952,692 $ 11,063,040 $ 26,968,978 $ 23,222,672
Capital Assets 40,809,713 42,145,487 47,204,196 49,892,805 88,013,909 92,038,292
Total Assets SS,82S,999 54,305,119 S9,1S6,888 60,9SS,84S 114,982,887 115,260,964
Long-term Liabilities
Outstanding 13,543,854 13,857,860 24,529,239 27,170,515 38,073,093 41,028,375
Other Liabilities 285,127 643,196 1,103,024 1,047,994 1,388,151 1,691,190
Total Liabilities 13,828,981 14,SOl,OS6 25,632,263 28,218,509 39,461,244 42,719,565
Net Assets:
Invested in
Capital Assets
Net of Related Debt 28,296,810 28,935,168 23,735,238 23,590,438 52,032,048 52,525,606
Restricted 1,686,011 1,249,886 3,258,469 2,864,698 4,944,480 4,114,584
Unrestricted 12,014,197 9,619,009 6,530,918 6,282,200 18,54S,11S 15,901,209
Total Net Assets $ 41,997,018 $ 39,804,063 $ 33,52.4,625 $ 32,737,336 $ 7S,S21,643 $ 72,541,399
An additional portion of the City of Paris' net assets $4,614,560 (6.11%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets $18,875,035 (24.99%) may be used
to meet the government's ongoing obligations to citizens and creditors.
There was an increase of $829,896 in restricted net assets primarily due to additional amounts being set aside for
construction and debt service.
At the end of the current fiscal year, the City of Paris is able to report positive balances in all three categories of net assets
(Invested in capital assets net of related debt, Restricted assets, and Unrestricted assets) both for the government as a whole,
as well as for its separate governmental and business type activities. This was also true for the prior fiscal year.
Governmental Activities
Governmental activities increased the City of Paris' net assets by $2,192,955 during the current fiscal year. This increase
resulted mainly from a transfer from the City's enterprise fund and increases in property tax revenue, sales tax revenue, and
investment earnings. Total governmental revenues were up $348,972 or 1.48%. General revenues were up $1,007,598 or
6.00%. Program revenues were down $658,626 or 9.7% due to decreased grants and contributions.
General Revenues
2007
Increase
2006 (Decrease)
Property Taxes $ 7,924,453 $ 7,583,269 $ 341,184
Sales Taxes 5,673,616 5,401,371 272,245
Franchise Taxes 3,082,183 3,OS3,671 28,512
Hotel Occupancy Tax 430,991 396,333 34,658
Unrestricted Investment Earnings 571,678 342,306 229,372
Gain On Sale of Capital Assets 102,195 S68 101,627
Total General Revenues $ 17,785,116 $ 16,777,518 $ 1,007,598
The following table provides a sumrnary of the City's operations for the years ending 2006 and 2007 for both governmental
and business-type activities.
6
City of Paris' Changes in Net Assets
Governmental Activities Business-Ty pe Activities Total
2007 2006 2007 2006 2007 2006
Revenues:
Program Revenues:
Charges for Services $ 4,859,170 $ 4,896,619 $ 12,359,516 $ 12,879,592 $ 17,218,686 $ 17,776,211
Operating Grants
and Contributions 1,244,186 1,660,785 - - 1,244,186 1,660,785
Capital Grants
and Contributions 25,599 230,177 - - 25,599 230,177
General Revenues:
Property Taxes 7,924,453 7,583,269 - - 7,924,453 7,583,269
Sales Taxes 5,673,616 5,401,371 - - 5,673,616 5,401,371
Franchise Taxes 3,082,183 3,053,671 - - 3,082,183 3,053,671
Hotel Occupancy Tax 430,991 396,333 - - 430,991 396,333
Unrestricted
Investment Earnings 571,678 342,306 367,601 284,899 939,279 627,205
Other 102,195 568 - 32,600 102,195 33,168
Total Revenues 23,914,071 23,565,099 12,727,117 13,197,091 36,641,188 36,762,190
Expenses:
General government 1,722,181 1,391,781 - - 1,722,181 1,391,781
Finance 426,485 556,076 - - 426,485 556,076
Public Safety 9,045,085 9,138,101 - - 9,045,085 9,138,101
Public Works 7,217,841 6,826,116 - - 7,217,841 6,826,116
Health 2,897,836 2,889,602 - - 2,897,836 2,889,602
Library Service 690,413 745,653 - - 690,413 745,653
Cox Field 236,414 264,181 - - 236,414 264,181
Interest on
Long-Term Debt 584,861 614,799 - - 584,861 614,799
Water & Sewer - - 10,839,828 10,912,834 10,839,828 10,912,834
Total Expenses 22,821,116 22,426,309 10,839,828 10,912,834 33,660,944 33,339,143
Increase in Net Assets
Before Transfers 1,092,955 1,138,790 1,887,289 2,284,257 2,980,244 3,423,047
Transfers 1,100,000 1,090,000 (1,100,000) (i ,090,000) - -
Increase in Net Assets 2,192,955 2,228,790 787,289 1,194,257 2,980,244 3,423,047
Net Assets 10-1-2006 39,804,063 37,575,273 32,737,336 31,543,079 72,541,399 69,118,352
Net Assets 9-30-2007 $ 41,997,018 $ 39,804,063 $ 33,524,625 $ 32,737,336 $ 75,521,643 $ 72,541,399
Business-Type Activities
Business-type activities increased the City of Paris' net assets by $787,289. This increase was from a combination of
reduced expenses and increased investment earnings.
7
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,
unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of
the fiscal year.
Governmental Funds
2007 2006
Total Assets
Total Liabilities
Fund Balances:
Reserved for:
Construction
Debt Service
Notes
Inventories
Unreserved:
General Fund
Special Rev. Fd.
Permanent Funds
Total Fund Balances
Total Liabilities and
Fund Balances
$ 15,031,813 $ 12,175,159
$ 802,613 $ 1,199,048
659,763
736,869
43,951
202,440
11,581,136
924,573
80,468
14,229,200
$ 15,031,813
189,736
751,574
55,882
118,925
8,874,883
908,559
76,552
10,976,111
$ 12,175,159
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund balances of
$14,229,200. Approximately 88.45% of this total amount ($12,586,177) constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not
available for new spending because it has already been committed to 1) construction ($659,763), 2) pay debt service
($736,869), 3) outstanding notes ($43,951), and 4) inventories ($202,440).
Governmental Funds
Revenues
Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Increase (Decrease) in Inventory
Fund Balances-October 1
Fund Balances-September 30
Revenues, Expenditures, &
Changes in Fund Balances
2007 2006
$ 23,861,424 $ 23,663,297
22,533,695 25,183,372
1,327,729 (1,520,075)
1,841,845 1,090,000
3,169,574 (430,075)
83,515 (34,118)
10,976,111 11,440,304
$ 14,229,200 $ 10,976,111
The general fund is the chief operating fund of the City of Paris. At the end of the current fiscal year, unreserved fund
balance of the general fund was $11,581,136 ($8,874,883 the previous year), while total fund balance reached $11,783,576
($8,993,808 the previous year). The increase in the fund balance of the general fund was due to excess revenues over
expenditures and transfers into the general fund. As a measure of the general fund's liquidity, it may be useful to compare
both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 58.40%
of total general fund expenditures, while total fund balance represents 59.42% of that same amount.
Debt Service Fund
The debt service fund has a total fund balance of $736,869 ($751,574 the previous year), all of which is reserved for the
payment of debt service. The net decrease in fund balance during the current year in the debt service fund was $14,705
($26,180 increase the previous year). The decrease was an immaterial amount. The government enacted a dedicated
property tax for debt service at the beginning of the current fiscal year. This tax produced revenues of $1,306,714 in the
current fiscal year ($1,353,600 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 assets of the Water and Sewer Fund at the end of the year amounted to $6,530,918 ($6,282,200 the
previous year). This change was due to decreased interest expense on revenue bonds and increased investment earnings.
Other factors concerning the fmances of this fund have already been addressed in the discussion of the City of Paris'
business-type activities.
General Fund Budgetary Highlights
There were changes to individual departmental budget appropriations, but there was no increase in the total overall budget.
The overall appropriation of the general fund was under spent by $2,192,385 ($1,222,563 the previous year).
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, 2007,
amounts to $88,013,909 ($92,038,292 the previous year). Both of these amounts are net of accumulated depreciation. This
investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, roads,
highways, and bridges.
City of Paris-Net Capital Assets
Land
Buildings and System
Improvements Other
than Buildings
Machinery, Furniture,
and Equipment
Infrastructure
Construction in Progress
Water Rights-Net
Unamortized Bond Expense
Total
Governmental Activities Business-Type Activities Total
2007 2006 2007 2006 2007 2006
$ 5,903,022 $ 5,903,022 $ 282,672 $ 282,672 $ 6,185,694 $ 6,185,694
12,236,712 12,456,556 45,004,606 47,855,707 57,241,318 60,312,263
2,227,649 2,404,908 - - 2,227,649 2,404,908
2,871,815 2,911,873 255,163 170,250 3,126,978 3,082,123
16,963,028 18,261,789 - - 16,963,028 18,261,789
417,155 6,979 231,294 39,577 648,449 46,556
- - 819,800 833,463 819,800 833,463
190,332 200,360 610,661 711,136 800,993 911,496
$ 40,809,713 $ 42,145,487 $ 47,204,196 $ 49,892,805 $ 88,013,909 $ 92,038,292
Additional information on the City of Paris' capital assets can be found in note IV C of the Notes to the Financial
Statements.
9
Long-term Debt
At the end of the current fiscal year, the City of Paris had total bonded debt outstanding of $36,030,000. Of this amount,
$12,296,600 comprises debt backed by the full faith and credit of the government, and $23,733,400 represents bonds
secured solely by specified revenue sources (i.e., revenue bonds).
Governmental Activities
2007
2006
City of Paris Outstanding Gong-Term Debt
Business-Type Activities Total
2007 2006 2007 2006
General
Obligation Bonds $ 12,296,600 $ 13,054,000 $ - $ - $ 12,296,600 $ 13,054,000
Revenue Bonds - - 23,733,400 26,451,000 23,733,400 26,451,000
.Total $ 12,296,600 $ 13,054,000 $ 23,733,400 $ 26,451,000 $ 36,030,000 $ 39,505,000
The City of Paris' bond debt decreased by $3,475,000 (8.80%) during the fiscal year. The City of Paris maintains an
underlying bond rating from Moody's of A2 with that rating being upgraded to A3 when the issues are insured.
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 $0.59225 per $100 valuation for the
2006-07 fiscal year. This rate was broken down into $0.49294 per $100 valuation for operations and $0.09931 per $100
valuation for debt service. Using the traditional allowance of the state attorney general as a guide, the City of Paris is
utilizing only 6.22% of its debt capacity.
Additional information on the City of Paris' long-term debt can be found in note IV. G. of the Notes to the Financial
Statements.
Economic Factors and Next Year's Budgets and Rates
• Sales tax revenues are projected for 5.2% growth.
• Inflation was 2.8% September 30, 2007.
• New construction amounted to 31 residential units and 22 commercial units.
• Local population growth is expected to be minimal.
• The tax rate is expected to be at .56, a decrease of .03225 cents per $100 of value.
All of these factors were considered in preparing the City of Paris' budget for 2007-08.
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.
10
Y~ ii
..'ta`d'` .e.~..w~«~.a. +..x \ ,..,wa.. .~
City of Paris, Texas
Statement of Net Assets
September 30, 2007
Primary Government
ASSETS
Cash and Cash Equivalents
Investments
Receivables (Net of Allowance
for Uncollectibles)
Inventories
Due from Other Governments
Notes Receivable
Capital Assets (Net of
Accumulated Depreciation):
Land
Buildings and System
Improvements Other Than
Buildings
Machinery and Equipment
Infrastructure
Construction in Progress
Water Rights (Net of
Accumulated Amortization)
Unamortized Bond Expense
Total Assets
Governmental Business-Type
Activities Activities Total
$ 7,743,735 $ 7,079,337 $ 14,823,072
4,545,121 2,809,370 7,354,491
Statement 1
Component
V V V11V1111V
Development
$ 2,033,467
490,941
2,178,147 1,796,563 3,974,710 209,637
202,440 267,422 469,862 -
302,892 - 302,892 -
43,951 - 43,951 2,907,211
5,903,022 282,672 6,185,694 1,261,215
12,294,083 45,004,606 57,298,689 -
2,227,649 - 2,227,649 -
2,814,444 255,163 3,069,607 -
16,963,028 - 16,963,028 -
417,155 231,294 648,449 -
- 819,800 819,800 -
190,332 610,661 800,993 -
55,825,999 59,156,888 114,982,887 6,902,471
The accompanying notes to the financial statements are an integral part of this statement.
11
City of Paris, Texas Statement 1
Statement of Net Assets (Continued)
September 30, 2007
Component
Primary Government Unit
Governmental Business-Type Economic
Activities Activities Total Development
LIABILITIES
Accounts Payable and
Other Current Liabilities 120,167 757,849 878,016 -
Accrued Interest 164,960 345,175 510,135 16,124
Unearned Revenue - - -
Noncurrent Liabilities:
Due Within One Year 1,078,510 2,924,026 4,002,536 559,048
Due in More Than One Year 12,465,344 21,605,213 34,070,557 3,033,691
Total Liabilities 13,828,981 25,632,263 39,461,244 3,608,863
NET ASSETS
Invested in Capital Assets,
Net of Related Debt 28,296,810 23,735,238 52,032,048 -
Restricted for:
Construction 659,763 1,555,686 2,215,449 -
Debt Service 571,909 1,702,783 2,274,692 276,283
Notes Receivables 43,951 - 43,951 -
Permanent Library Funds
Nonexpendable 80,468 - 80,468 -
Unrestricted 12,344,117 6,530,918 18,875,035 3,017,325
Total Net Assets $ 41,997,018 $ 33,524,625 $ 75,521,643 $ 3,293,608
12
~,
-~p:: ~ ~ I ~~ ~ ~y~ 3 ~F ~ ~~ ~ ~ ~ I ~ ~
City of Paris, Texas
Statement of Activities
For the Year Ended September 30, 2007
Functions/Programs
Primary Government:
Governmental Activities:
General Government
Finance
Public Safety
Public Works
Health
Library Service
Cox Field
Interest on Long-Term Debt
Total Governmental Activities
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 1,722,181 $ - $ 231,848 $ -
426,485 - - -
9,045,085 806,321 209,928 12,904
7,217,841 1,626,253 26,576 2,364
2,897,836 2,406,995 657,391 -
690,413 19,601 18,831 10,331
236,414 - 82,854 -
584,861 - 16,758 -
22,821,116 4,859,170 1,244,186 25,599
Business-Type Activities:
Water and Sewer 10,839,828 12,359,516 - -
Total Business-Type Activities 10,839,828 12,359,516 - -
Total Primary Government $ 33,660,944 $ 17,218,686 $ 1,244,186 $ 25,599
Component Unit:
Economic Development $ 521,856 $ - $ - $ -
General Revenues:
Property Taxes
Sales Taxes
Franchise Taxes
Hotel Occupancy Tax
Unrestricted Investment Earnings
Gain on Sale of Capital Assets
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets -Beginning, October 1, 2006
Net Assets -Ending, September 30, 2007
The accompanying notes to the financial statements are an integral part of this statement.
13
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Primary Government Component Unit
Governmental Business-Type Economic
Activities Activities Total Development
$ (1,490,333) $ - $ (1,490,333) $ -
(426,485) - (426,485) -
(8,015,932) - (8,015,932) -
(5,562,648) - (5,562,648) -
166,550 - 166,550 -
(641,650) - (641,650) -
(153,560) - (153,560) -
(568,103) - (568,103) -
(16,692,161) - (16,692,161) -
- 1,519,688 1,519,688 -
- 1,519,688 1,519,688 -
(16,692,161) 1,519,688 (15,172,473) -
_ _ _ (521,856)
7,924,453
5,673,616
3,082,183
430,991
571,678
102,195
1,100,000
18,885,116
2,192,955
39,804,063
$ 41,997,018
367,601
(1,100,000)
(732,399)
787,289
32,737,336
$ 33,524,625
7,924,453
5,673,616
3,082,183
430,991
939,279
102,195
18,152,717
2,980,244
72,541,399
$ 75,521,643
1,134,833
284,269
897,246
2,396,362
$ 3,293,608
14
City of Paris _ Statement 3
Balance Sheet -Governmental Funds
September 30, 2007
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
ASSETS
Cash and Cash Equivalents $ 5,689,259 $ 730,869 $ 684,789 $ 638,818 $ 7,743,735
Investments 4,413,383 - 131,738 4,545,121
Receivables (Net of
Allowance for
Uncollectibles) 2,069,266 64,324 - 44,557 2,178,147
Notes Receivable 43,951 43,951
Due from Other Funds 15,527 15,527
Inventories 202,440 - - - 202,440
Due from Other
Governments 69,858 - 15,404 217,630 302,892
Total Assets $ 12,459,733 $ 795,193 $ 700,193 $ 1,076,694 $ 15,031,813
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable $ 67,562 $ - $ 40,430 $ 12,175 $ 120,167
Due to Other Funds - - - 15,527 15,527
Deferred Revenue 608,595 58,324 - - 666,919
Total Liabilities 676,157 58,324 40,430 27,702 802,613
Fund Balances:
Reserved for:
Construction - - 659,763 - 659,763
Debt Service - 736,869 - - 736,869
Notes - - - 43,951 43,951
Inventories 202,440 - - - 202,440
Unreserved, Reported in:
General Fund 11,581,136 - - - 11,581,136
Special Revenue Funds - - - 924,573 924,573
Permanent Funds - - - 80,468 80,468
Total Fund Balances 11,783,576 736,869 659,763 1,048,992 14,229,200
Total Liabilities and
Fund Balances $ 12,459,733 $ 795,193 $ 700,193 $ 1,076,694
Amount reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. (Net of Accumulated Depreciation) 40,619,381
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds. 666,919
Long-term liabilities, including bonds payable, are not-due and payable in the current period and,
therefore, are not reported in the funds. (13,518,482)
Net assets of governmental activities $ 41,997,018
The accompanying notes to the financial statements are an integral part of this statement.
15
City of Paris, Texas Statement 4
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2007
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Revenues:
Taxes:
Property $ 6,623,080 $ 1,306,714 $ - $ - $ 7,929,794
Sales 5,673,616 - - - 5,673,616
Hotel Occupancy 430,991 - - - 430,991
Franchise 3,082,183 - - - 3,082,183
Licenses and Permits 106,997 - - - 106,997
Fines and Fees 571,165 - - - 571,165
Investment Earnings 667,745 16,758 21,860 15,436 721,799
Public Safety - - - 34,151 34,151
Sanitation 1,311,187 - - - 1,311,187
Health 2,281,502 - - 177,687 2,459,189
Intergovernmental 604,405 - 2,364 654,337 1,261,106
Other 272,350 - - 6,896 279,246
Total Revenues 21,625,221 1,323,472 24,224 888,507 23,861,424
Expenditures:
Current:
General Government 966,627 - - - 966,627
Finance 414,080 - - - 414,080
Public Safety 8,532,551 - - 31,473 8,564,024
Public Works 5,494,458 - - 24,340 5,518,798
Health 1,979,104 - - 816,419 2,795,523
Library Service 562,118 - - 8,276 570,394
Cox Field 117,574 - - - 117,574
Other 752,256 - - - 752,256
Debt Service:
Principal 211,198 757,400 - - 968,598
Interest 10,766 585,277 - - 596,043
Capital Outlay:
General Government - - 63,644 - 63,644
Finance 59,328 - - - 59,328
Public Safety 77,740 - 418,423 - 496,163
Public Works 400,182 - - - 400,182
Highways and Streets 73,516 - (3,956) - 69,560
Health 80,198 - - - 80,198
Other 100,703 - - - 100,703
Total Expenditures 19,832,399 1,342,677 478,111 880,508 22,533,695
Excess (Deficiency) of
Revenues Over
(iJnder) Expenditures 1,792,822 (19,205) 453,887 7,999 1,327,729
The accompanying notes to the fmancial statements are an integral part of this statement.
16
City of Paris, Texas Statement 4
Statement of Revenues, Expenditures and Changes in Fund Balances - (Continued)
Governmental Funds
For the Year Ended September 30, 2007
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Other Financing Sources (Uses):
Sale of Capital Assets - - 102,195 - 102,195
Capital Leases 639,650 - - - 639,650
Transfers In 1,129,372 4,500 851,091 - 1,984,963
Transfers Out (855,591) - 29,372 - (884,963)
Total Other Financing
Sources (Uses) 913,431 4,500 923,914 - 1,841,845
Net Changes
in Fund Balances 2,706,253 (14,705) 470,027 7,999 3,169,574
Fund Balances -
September 30, 2006 8,993,808 751,574 189,736 1,040,993 10,976,111
Increase (Decrease)
in Inventory 83,515 - - - 83,515
Fund Balances -
September 30, 2007 $11,783,576 $ 736,869 $ 659,763 $ 1,048,992 $ 14,229;200
17
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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
For the Year Ended September 30, 2007
Amounts reported for governmental activities in the statement of activities (Statement 2) are
different because:
Net change in fund balances -total governmental funds (Statement 4).
Governmental funds reported capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which depreciation exceeded
capital outlays in the current period.
Revenues in the statement of activities that do not provide current fmancial resources
are not reported as revenues in the funds.
Accrued interest reported in the statement of activities does not require the use of current
fmancial resources and therefore is not reported as an expenditure in governmental funds.
The net change in inventory is a direct adjustment to fund balance in the funds.
Some expenses reported in the statement of activities do not require the use of current
fmancial resources and, therefore, are not reported as expenditures in governmental funds.
The issuance of long-term debt (e.g. bonds, leases) provides current fmancial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current fmancial resources of governmental funds. Neither transaction, however,
has any effect on net assets. Also, governmental funds report the effect of issuance
costs, premium, 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
effort of these differences in the treatment of long-term debt and related items.
Change in net assets of governmental activities (Statement 2).
The accompanying notes to the financial statements are an integral part of this statement.
$ 3,169,574
(1,325,710)
(49,548)
11,182
83,515
(14,978)
318,920
$ 2,192,955
18
City of Paris, Texas Statement 6
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual
General Fund
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Revenues:
Ad Valorem Taxes $ 6,514,245 $ 6,514,245 $ 6,623,080 $ 108,835
Municipal Sales Tax 5,313,000 5,313,000 5,673,616 360,616
Hotel Occupancy Tax 325,000 325,000 430,991 105,991
Franchise and Gross
Receipts Tax - 2,920,300 2,920,300 3,082,183 161,883
Licenses and Permits 77,925 77,925 106,997 29,072
Fines and Fees 534,050 534,050 571,165 37,115
Use of Money and Property 165,720 165,720 667,745 502,025
Santitation 1,332,500 1,332,500 1,311,187 (21,313)
Emergency Medical Service 2,108,000 2,108,000 2,281,502 173,502
Intergovernmental Revenues 1,559,212 1,559,212 604,405 (954,807)
Miscellaneous Revenues 93,650 93,650 272,350 178,700
.Total Revenues... 20,943,602. 20,943,602 21,625,221 681,619
Expenditures:
General Government:
Council 92,950 122,950 123,679 (729)
Manager 155,064 170,064 171,725 (1,661)
Attorney 369,581 369,581 355,839 13,742
Municipal Court 204,684 219,684 206,041 13,643
Clerk 117,919 117,919 109,343 8,576
Total General Government 940,198 1,000,198 966,627 33,571
Finance:
Accounting and Auditing 429,069 429,069 486,736 (57,667)
Public Safety:
Police 6,126,658 6,126,658 5,495,660 630,998
Fire 3,506,050 3,506,050 3,132,095 373,955
Total Public Safety 9,632,708 9,632,708 8,627,755 ~ 1,004,953
Public Works:
Community Development 652,017 652,017 563,777 88,240
Engineering 453,399 453,399 429,710 23,689
Public Works 136,547 136,547 133,392 3,155
Parks and Recreation 1,123,930 1,123,930 1,096,656 27,274
Solid Waste 1,204,999 1,204,999 1,076,234 128,765
Streets and Highways 1,969,233 1,969,233 2,110,757 (141,524)
Traffic and Public Lighting 505,409 505,409 - 464,777 40,632
Garage 278,130 278,130 254,971 23,159
Total Public Works 6,323,664 6,323,664 6,130,274 193,390
The accompanying notes to the fmancial statements are an intregal part of this statement.
19
City of Paris, Texas Statement 6
Statement of Revenues, Expenditures and Changes in Fund Balance - (Continued)
Budget and Actual
General Fund
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Expenditures: (Continued)
Emergency Medical Service 2,124,118 2,224,118 2,069,023 155,095
Library Services 630,511 630,511 562,118 68,393
Cox Field Airport 876,815 876,815 127,251 749,564
Paris Band 20,850 20,850 18,770 2,080
Contingency 302,705 52,705 20,152 32,553
General 744,146 834,146 823,693 10,453
Total Expenditures 22,024,784 22,024,784 19,832,399 2,192,385
Excess of Revenues Over
(Under) Expenditures (1,081,182) (1,081,182) 1,792,822 2,874,004
Other Financing Sources
and (Uses):
Capital Leases - - 639,650 639,650
Transfers In 1,090,000 1,090,000 1,129,372 39,372
Transfers Out - - (855,591) (855,591)
Total Other Financing
Sourcing and (Uses) 1,090,000 1,090,000 913,431 176,569
Net Changes in Fund Balance 8,818 8,818 2,706,253 2,697,435
Fund Balance -
September 30, 2006 8,993,808 8,993,808 8,993,808 -
Increase in Inventory - - 83,515 83,515
Fund Balance -
September 30, 2007 $ 9,002,626 $ 9,002,626 $ 11,783,576 $ 2,780,950
20
City of Paris, Texas _ Statement 7
Statement of Net Assets
Proprietary Funds
For the Year Ended September 30, 2007
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
ASSETS
Current Assets:
Cash and Cash Equivalents -Pooled $ 200,008 $ 1,487,008
Cash and Cash Equivalents -Non-Pooled 6,879,329 4,570,232
Accounts Receivables -Net 1,790,395 1,878,147
Accrued Interest Receivable 6,168 22,795
Inventories 267,422 258,814
Total Current Assets 9,143,322 8,216,996
Non-Current Assets:
Investments 2,809,370 2,942,209
Water Rights, Net of Accumulated Amortization 819,800 833,463
Unamortized Bond Expense 610,661 711,136
Capital Assets:
Land 282,672 282,672
Plant, Pumps and Motors 31,740,002 31,740,002
Distribution System 36,210,888 36,210,888
Collection System 20,649,492 20,649,492
Maintenance Equipment and Vehicles 1,995,191 1,955,986
Furniture and Equipment 244,222 244,222
Construction in Progress 231,294 39,577
Less Accumulated Depreciation (45,580,026) (42,774,633)
Total Capital Assets (Net of Accumulated Depreciation) 45,773,735 48,348,206
Total Non-Current Assets 50,013,566 52,835,014
Total Assets 59,156,888 61,052,010
The accompanying notes to the financial statements are an intregal part of this statement.
21
City of Paris, Texas Statement 7
Statement of Net Assets (Continued)
Proprietary Funds
For the Year Ended September 30, 2007
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
LIABILITIES
Current Liabilities:
Accounts Payable 43,222 15,852
Payable to U.S.A. for Water Rights -Current Portion 31,665 30,702
Interest Payable 345,175 385,291
Lease Payable -Current Portion 40,661 -
Accrued Compensated Absences -Current Portion 8,700 9,900
Due to Other Funds - 96,165
Revenue Bonds -Current Portion 2,843,000 2,717,600
Total Current Liabilities 3,312,423 3,255,510
Non-Current Liabilities:
Revenue Bonds Payable -Long-Term Portion 20,890,400 23,733,400
Payable to U.S.A. for Water Rights -Long-Term Portion 547,252 578,917
Customer Deposits 714,627 646,851
Lease Payable -Long-Term Portion 61,004 -
Accrued Compensated Absences Long-Term Portion 106,557 99,996
Total Non-Current Liabilities 22,319,840 25,059,164
Total Liabilities 25,632,263 - 28,314,674
NET ASSETS
Invested in Capital Assets, Net of Related Debt 23,735,238 23,590,438
Restricted for Debt Service 1,702,783 1,395,310
Restricted for Construction 1,555,686 1,469,388.
Unrestricted 6,530,918 6,282,200
Total Net Assets $ 33,524,625 $ 32,737,336
22
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City of Paris, Texas Statement 8
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2007
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Operating Revenues:
Charges for Sales and Services:
Water Sales and Taps $ 7,256,997 $ 7,539,449
Sewer Charges and Taps 4,711,135 4,886,837
Sanitation Billing Fees 68,611 69,006
Service Charges 67,910 60,830
Industrial Surcharges 122,719 133,474
Miscellaneous 132,144 189,996
Total Operating Revenues - 12,359,516 12,879,592
Operating Expenses:
Personnel 2,878,197 2,796,134
Supplies 812,232 838,846
Contractual 1,896,632 2,171,488
Maintenance 527,943 415,661
Sundry Charges 419,164 330,274
Other 79,763 113,429
Depreciaton 2,911,156 2,798,751
Total Operating Expenses 9,525,087 9,464,583
Operating Income 2,834,429 3,415,009
Non-operating Income (Expense):
Investment Earnings 367,601 284,899
Contribution Income - 32,600
Interest Expense -Revenue Bonds (1,195,694) (1,322,300)
Amortization of Bond Issue Expense (100,475) (107,378)
Bank Charges (4,909) (4,910)
Amortization of Water Rights (13,663) (13,663)
Net Non-operating Income (Expense) (947,140) (1,130,752)
Income (Loss) Before Operating Transfers 1,887,289 2,284,257
Transfers Out (1,100,000) (1,090,000)
Changes in Net Assets 787,289 1,194,257
Total Net Assets -Beginning 32,737,336 31,543,079
Total Net Assets -Ending $ 33,524,625 - $ 32,737,336
The accompanying notes to the financial statements are an integral part of this statement.
23
City of Paris, Texas
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2007
Cash Flows from Operating Activities
Receipts from Customers and Users
Payments to Suppliers
Payments to Employees
Payments to Contractors
Payments for Interfund Payables
Net Cash Provided by Operating Activities
Cash Flows from Noncapital Financing Activities
Transfers Out
Net Cash Used by Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities
Purchase of Capital Assets
Principal Paid on Revenue Bonds
Principal Paid on Water Rights
Principal Paid on Capital Leases
Interest Paid on LTD
Agent Fees Paid on Revenue Bonds
Water and Sewer
Enterprise Fund
Current Year
$ 12,514,465
(1,830,494)
(2,872,846)
(1,909,650)
(96,165)
5,805,310
(1,100,000)
(1,100,000)
(181,732)
(2,717,600)
(30,702)
(27,727)
(1,235,810)
(4,909)
Net Cash Used by Capital and Related Financing Activities (4,198,480)
Cash Flows from Investing Activities
Interest on Investments
Purchase of Investment Securities
Maturities of Investments
344,380
(628,359)
799,246
Net Cash Provided by (Used By) Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents -Beginning
Cash and Cash Equivalents -Ending
515,267
1,022,097
6,057,240
$ 7,079,337
The accompanying notes to the fmancial statements are an integral part of this statement.
Statement 9
Water and Sewer
Enterprise Fund
Prior Year
$ 13,151,843
(1,720,299)
(2,775,410)
(2,187,560)
(1,746,753)
4,721,821
(1,090,000)
(1,090,000)
(79,697)
(2,602,200)
(29,769)
(1,353,523)
(4,910)
(4,070,099)
307,269
(1,418,084)
652,727
(458,088)
(896,366)
6,953,606
$ 6,057,240
24
City of Paris, Texas .~ Statement 9
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2007
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income (Loss) $ 2,834,429 $ 3,415,009
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used by) Operating Activities:
Depreciation 2,911,156 2,798,751
Decrease in Accounts Receivable 104,379 149,776
Increase in Inventory (8,608) (22,089)
Increase in Customers' Deposits 67,776 122,475
Decrease in Due to Other Funds (96,165) (1,746,753)
Increase in Accrued Compensated Absences 5,361 20,724
(Decrease) in Accounts Payable (13,018) (16,072)
Total Adjustments 2,970,881 1,306,812
Net Cash Provided by (Used by) Operating Activities $ 5,805,310 $ 4,721,821
Noncash Investing, Capital, and Financing Activities:
Increase (Decrease) in Market Value of Investments $ 39,185 $ (37,212)
Capital Contributions - 32,600
Capital Leases 129,392 -
25
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City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summary of Significant Accounting Policies
A. Reporting Entity
The City of Paris, Texas (the City), operates under acouncil-manager form of government with
the mayor and six council members being elected. The accompanying financial statements present
the government and its component unit. The discretely presented component unit is reported in a
separate column in the government-wide financial statements (see note below for a description) to
emphasize that it is legally separate from the government.
Discretely Presented Component Unit: The Paris Economic Development Corporation (PEDC) is
a governmental non-profit 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 of Paris, Texas, 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 alive-member board of directors appointed by the governing
body of the City of Paris, Texas. The auditor's report for the year ended September 30, 2006
contained a qualification due to lack of conformity with generally accepted accounting principles
in regard to a note receivable valuation allowance. As a result, Net Assets -Beginning in the
Statement of Activities has been reduced by $900,000 to reflect this prior period adjustment.
Complete financial statements for PEDC may be obtained at its administration office at 1125
Bonham Street, Paris, Texas 75460.
B. Government-Wide and Fund Financial Statements
The government-wide fmancial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the primary
government and its 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.
The statement of activities demonstrates the degree to which the duect 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. Program revenues include 1) charges to
customers or applicants who purchase, use, or duectly 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.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary
fund financial statements. Revenues are recorded when earned and expenses are recorded when a
liability is iricurred, 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 provided have been met.
26
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and
accounting entity with aself-balancing set of accounts. Fund accounting segregates funds
according to their intended purpose and is used to aid management in demonstrating compliance
with finance-related legal and contractual provisions. The minimum number of funds is
maintained consistent with legal and managerial requirements.
The City has the following fund types:
Governmental Funds are used to account for the City's general government activities.
Governmental fund types use the flow of current financial resources measurement focus and the
modified accrual basis of accounting. Under the modified accrual basis of accounting revenues
are recognized when susceptible to accrual (i.e. when they are "measurable and available").
"Measurable" means the amount of the transaction can be determined and "available" means
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The City considers all revenues available if they are collected within 60 days after year-
end. Expenditures are recorded when the related fund liability is incurred, except for unmatured
interest on general long-term debt which is recognized when due, and certain compensated
absences and claims and judgments which are recognized when the obligations are expected to be
liquidated with expendable available financial resources.
Property taxes, franchise taxes, licenses, interest, and special assessments are susceptible to
accrual. Sales taxes are recognized as revenue in the period when the exchange transaction on
which the tax is imposed occurs. Other receipts and taxes become measurable and available when
cash is received by the City and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
Governmental Funds include the following fund types:
The General Fund is the primary operating fund of the City. It accounts for all financial
resources of the general government except those required to be accounted for in another fund.
The Special Revenue Funds account for revenue sources that are legally restricted to
expenditures for specific purposes (not including expendable trusts or major capital projects).
The Capital Projects Funds account for the acquisition or construction of major capital
projects, other than those financed by proprietary or non-expendable trust funds.
The Debt Service Funds account for the servicing of general long-term debt not being financed
by proprietary ornon-expendable trust funds.
The Permanent Fund accounts for assets held by the City pursuant to an agreement whereby
the principle position remains intact but the earnings may be used to achieve the objectives of
the fund.
27
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summary of Significant Accountinc Policies (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary Funds are accounted for on the flow of 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 City applies all applicable Financial
Accounting Standards Board pronouncements issued after November 30, 1989, in accounting and
reporting for its proprietary operations.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the water and sewer enterprise fund are charges to customers for
sales and services. The water and sewer fund also recognizes as operating revenue the portion of
tap fees intended to recover the cost of connecting new customers to the system. Operating
expenses for enterprise funds include the cost of sales and service, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
Proprietary funds include the following:
The Enterprise Fund is used to account for operations that are financed and operated in a
manner similar to private business enterprises, where the governing body has decided that the
determination of revenues earned, costs incurred, and/or net income is necessary for
management accountability.
D. Assets, Liabilities and Equity
1. Deposits and Investments
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.
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.
Investments are reported in the accompanying balance sheet at fair value with changes in fair
value being reported as part of investment income.
28
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summar~gnificant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivables and Payables
Transactions between funds that would be treated as revenues, expenditures, or expenses if the
involved organizations were external to the governmental unit (interfund services provided) are
accounted for as revenues, expenditures, or expenses in the funds involved.
Transactions which constitute reimbursements to a fund for expenditures or expenses initially
made from that fund which were properly applicable to another fund are recorded as
expenditures or expenses in the reimbursing fund and as reductions of the expenditure or
expense in the fund that is reimbursed.
The City's ad valorem taxes are levied on October 1 and are due no later than January 31 of the
following year. Taxes become delinquent February 1, after which time penalties and interest
and, if not paid by July, attorney's collection fees are added. A tax lien attaches to property
(real and personal) on January 1 of each year to secure the payment of all taxes, penalties, and
interest ultimately imposed on the property. The lien is effective until all such amounts are
paid.
3. Inventories
Inventories are valued at cost using the fast-in, first-out method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
4. Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set
aside for their repayment, are classified as restricted assets because their use is limited by
applicable bond covenants. The Water Revenue Construction Fund is used to report those
proceeds of revenue bond issuances that are restricted for use in construction. The Revenue
Bond Sinking Funds are used to segregate resources accumulated for debt service payments
over the next twelve months. The Revenue Bond Reserve and Contingency Accounts are used
to report resources set aside to make up potential future deficiencies in the Revenue Bond
Sinking Funds and to meet unexpected contingencies or to fund asset renewals and
replacements. The Pat Mayse Reserve Fund is being accumulated to assist in funding future
water storage rights.
5. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items) are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets are defined
by the government as assets with an initial, individual cost of more than $5,000 and an
estimated useful life in excess of two years. Such assets are recorded at historical cost or
29
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
5. Capital Assets (Continued)
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation. Infrastructure acquired prior to the
implementation of GASB 34 are included in the financial statements.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. The total interest expense
incurred by business-type activities during the current fiscal year was $1,195,694. Of this
amount, none was included as part of the cost of capital assets under construction in connection
with water line and sewer line construction projects.
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
Public Domain Infrastructure 25-45 years
System Infrastructure 25-30 years
6. Compensated Absences
Vacation and sick leave benefits are accumulated by City employees in accordance with
guidelines suggested in the City's personnel policies.
7. Long-Term Obligations
In the government-wide financial statements and proprietary fund types 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 fund type statement
of net assets. Bond premiums and discounts, as well as issuance costs, 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
deferred charges and amortized over the term of the related debt.
30
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
I. Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
7. Long-Term Obligations (Continued)
In the fund financial statements, governmental fund types 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.
8. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally segregated for a specific
purpose. Designations of fund balance represent tentative management plans that are subject
to change.
II. Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-wide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance -total
governmental funds and net assets -governmental activities as reported in the government-wide
statement of net assets. One element of that reconciliation explains that "long-term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds." The details of this $13,518,482 difference are as follows:
Bonds Payable $ 12,296,600
Less: Deferred Charge for Issuance Costs (to be Amortized
over the Life of the Debt) (190,332)
Accrued Interest Payable 164,960
Capital Leases Payable 539,832
Loan Payable 34,315
Compensated Absences 673,107
Net Adjustment to Reduce Fund Balance -Total Governmental Funds
to Amve at Net Assets -Governmental Activities $ 13,518,482
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activity
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 assets 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
31
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
II. Reconciliation of Government-wide and Fund Financial Statements (Continued)
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activity
(Continued)
allocated over their estimated useful lives and reported as depreciation expense." The details of
this ($1,325,710) difference are as follows:
Capital Outlay $ 1,269,778
Depreciation Expense (2,595,488)
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Assets
of Governmental Activities $ (1,325,710)
Another element of that reconciliation states that "the issuance of long-term debt (e.g. bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, governmental funds report the
effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of activities." The details of this
$318,920 difference are as follows:
Capital Leases $ (639,650)
Amortization of Issuance Costs (10,028)
Principal Repayments 968,598
Net Adjustment to Increase Net Changes in Fund Balances -
' Total Governmental Funds to Arrive at Changes in Net Assets
of Governmental Activities $ 318,920
III. Stewardship, Compliance and Accountability
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles
for all governmental funds except the capital projects funds, proprietary funds, and library trust
funds. The budget for the Capital Projects Funds 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 funds include non-budgeted financial activities, which are not subject to an appropriated
budget and the appropriation process or to any legally authorized non-appropriated budget review
and approval process. 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
32
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
Council a proposed budget for the fiscal year beginning on the following October 1. The
III. Stewardship, Compliance and Accountability (Continued)
A. Budgetary Information (Continued)
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.
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, 2007, the City Council approved a transfer of $250,000 from Contingency to
several departmental line items.
B. Excess of Expenditures Over Appropriations
For the year ended September 30, 2007, expenditures exceeded appropriations in the Council,
Manager, Finance, Streets and Highways, and Transfers Out.
These over expenditures were funded by available fund balance and other financing sources.
IV. Detailed Notes on All Funds and Component Unit
A. Deposits and Investments
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 paz, whichever is lower, less the amount of the Federal Deposit Insurance Corporation
insurance (FDIC). Collateral agreements must be approved prior to deposit of funds as provided
by law. The City was not exposed to custodial credit risk since deposits are insured or collaterized
with securities held by the pledging fmancial institution's agent in the name of the City.
33
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
A. Deposits and Investments (Continued)
As of September 30, 2007, the City and Component Unit had the following investments:
Credit Weighted Average
Type of Security Fair Value Rating Maturity (Years)
Primary Government
Mortgage Backed Securities:
Government National Mortgage Corporation $ ~ 25,134 N/A 1.83
Federal Home Loan Mortgage Corporation 1,722,993 N/A 3.79
Federal National Mortgage Association 1,297,341 N/A 4.24
Notes:
Federal Home Loan Mortgage Corporation 2,634,399 AAA 0.72
Federal National Mortgage Association 534,637 AAA 0.46
Federal Farm Credit Bank 1,008,250 AAA 0.75
Certificates of Deposit 131,337 N/A 0.42
Totals $ 7,354,491 2.04
Component Unit - PEDC
Certificates of Deposit $ 490,941 N/A 0.29
Interest Rate Risk. It 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 will be designed with the objective of attaining a
rate of return throughout budgetary and economic cycles, commensurate with the City's
investment risk constraints and the cash flow characteristics of the portfolio. 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 six-month U.S. Treasury Bill and
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 or other counter-party will not fulfill its obligations. Investing
is performed in accordance with the City's investment policy adopted by the City Council
complying with State law and the City Charter. City funds may be invested in securities
authorized by Chapter 2256 of the State of Texas Government Code.
Concentration of Credit Risk. The City's policy is to diversify its investments by security type
and institution. With the exception of obligations of the United States or its agencies and
authorized pools, no more than 50% of the City's. total investment portfolio will be invested in a
single financial institution with the exception of its local depository.
34
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
A. Deposits and Investments (Continued)
Custodial Credit Risk -Deposits. In the case of deposits, this is the risk that in the event of a bank
failure, the City's deposits may not be returned to it. As of September 30, 2007, the City's bank
balance was not exposed to custodial credit risk. As of the same date PEDC had exposure to
custodial credit risk because $285,544 of the PEDC bank balance of $870,544 was uninsured.
Custodial Credit Risk -Investments. For an investment, this is the risk that in the event of the
failure of the counter-party, the City may not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. As of September 30, 2007, the
City did not have custodial credit risk exposure.
Foreign Currency Risk is the risk that an investment denominated in the currency of a foreign
country could reduce its United States of America dollar value as a result of changes in foreign
currency exchange rates. At September 30, 2007, the City was not exposed to foreign currency
risk.
B. Receivables
Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as
follows:
Special Capital Debt
General Revenue Projects Service Enterprise
Receivables:
Interest $ 37,034 $ - $ - $ - $ 6,168
Property Taxes 749,319 - - 85,766 -
Sales Tax 995,000 - - - -
Accounts 119,638 44,557 - - 1,790,395
Other Governments 69,858 217,630 15,404 - -
Street Assessments 26,473 - - - -
Fines 141,529 - - - -
EMS 1,538,879 - - - -
Notes Receivable - 43,951 - - -
Gross Receivables 3,677,730 306,138 15,404 85,766 1,796,563
Less: Allowable for
Uncollectibles (1,538,606) - - 21,442 -
Net Total Receivables $ 2,139,124 $ 306,138 $ 15,404. $ 64,324 $ 1,796,563
Receivable balances not expected to be collected within one year are Property Taxes - $479,915,
Fines - $100,000, EMS - $1,138,879; Notes Receivable - $32,020; and Street Assessment - $26,473.
35
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
B. Receivables (Continued)
Receivables as of year-end for PEDC are as follows:
Sales Tax Receivable
Accrued Interest Receivable
Notes Receivable
Total Receivables
$ 199,084
10,553
2,907,211
$ 3,116,848
PEDC has a note receivable bearing interest at 7.00% from a corporation located in Paris, Texas,
to assist with the purchase of an existing business. The note is due in monthly installments of
principal and interest of $32,000 through April 15, 2017, at which time the remaining principal is
due. This note is secured by a security agreement, which lists PEDC as having a subordinate
interest in all respects to the financial institution involved and to other individuals as listed in the
security agreement. The balance of this note at September 30, 2007, was $2,669,211 .
PEDC and C-Tech, Inc. entered into an incentive agreement and a loan agreement dated June 16,
2003. PEDC agreed to grant C-Tech, Inc. certain economic incentives in consideration of C-
Tech's agreement to conduct business, create new jobs over a certain period of time, and execute
and deliver anon-interest bearing promissory note in favor of PEDC with an original principal
amount of $1,500,000. C-Tech, Inc. did not comply with the terms of the agreements and the
terms were renegotiated. On July 25, 2007, a new agreement became effective which provided for
an immediate payment of $250,000, and additional payment of $50,000 by December 2, 2007, and
monthly payments of $6,000 until $200,000 is paid, beginning September 1, 2007. The balance
remaining of the note is $238,000.
36
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets
Capital Asset Activity for the year ended September 30, 2006, follows:
Governmental Activities
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Total Capital Assets,
Being Depreciated
Less Accumulated Depreciation for:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities,
Capital Assets, Net
Balance Balance
September 30, September 30,
2006 Increases Decreases 2007
$ 5,903,022 $ - $ - $ 5,903,022
6,979 478,075 67,899 417,155
5,910,001 478,075 67,899 6,320,177
15,218,309 219,916 - 15,380,854
3,648,710 - - 3,648,710
16,215,764 639,650 638,536 16,274,249
36,114,216 - - 36,114,216
71,196,999 859,566 638,536 71,418,029
2,761,753 382,389 - 3,144,142
1,243,802 177,259 - 1,421,061
13,303,891 737,079 638,536 13,402,434
17,852,427 1,298,761 - 19,151,188
35,161,873 2,595,488 638,536 37,118,825
36,035,126 (1,735,922) - 34,229,204
$ 41,945,127 $ (1,257,847) $ 67,899 $ 40,619,381
37
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Business-Type Activities
Capital Assets, Not Being Depreciated:
Land
Construction in Process
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated:
Plant, Pumps, and Motors
Distribution System
Collection System
Maintenance Equipment and Vehicles
Furniture and Equipment
Total Capital Assets,
Being Depreciated
Less Accumulated Depreciation for:
Plants, Pumps, and Motors
Distribution System
Collection System
Maintenance Equipment and Vehicles
Furniture and Equipment
Total Accumulated Depreciation
Total Capital Assets,
Being Depreciated, Net
Business-Type Activities,
Capital Assets, Net
Component Unit
Capital Assets, Not Being Depreciated:
Land Development Costs
Balance Balance
September 30, September 30,
2006 Increases Decreases 2007
$ 282,672 $ - $ - $ 282,672
39,577 191,717 - 231,294
322,249 191,717 - 513,966
31,740,002 - - 31,740,002
36,210,888 - - 36,210,888
20,649,492 - - 20,649,492
1,955,986 144,968 105,763 1,995,191
244,222 - - 244,222
90,800,590 144,968 105,763 90,839,795
17,901,295 1,059,356 - 18,960,651
13,149,720 1,119,822 - 14,269,542
9,693,660 671,923 - 10,365,583
1,785,735 60,055 105,763 1,740,027
244,223 - - 244,223
42,774,633 2,911,156 105,763 45,580,026
48,025,957 (2,766,188) - 45,259,769
$ 48,348,206 $.(2,574,471) $ - $ 45,773,735
$ 1,275,215 $ - $ 14,000 $ 1,261,215
38
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government $ 76,749
Finance 12,405
Public Safety 466,119
Public Works, Including Depreciation of General Infrastructure Assets 1,699,043
Emergency Medical Service 102,313
Cox Field 118,840
Library 120,019
Total Depreciation Expense -Governmental Activities $ 2,595,488
Business-type Activities:
Water and Sewer -Total Depreciation Expense -Business-type Activities $ 2,911,156
D. Construction Commitments
The City has active construction projects as of September 30, 2007. At year-end the City's
commitments with contractors are as follows:
Project To Date Commitment
Waste Water Improvements $ 160,374 $ 170,374
Computer Aided Dispatch System 410,175 794,239
E. Interfund Receivables, Payables, and Transfers
Interfund balances at year-end consisted of the following individual fund receivables and payables:
Fund
General Fund
Special Revenue Fund -Health Department -
Induect Cost
A o~A;.,~},lA
a 1J,JL/
Payable
$ -
15,527
39
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
E. Interfund Receivables, Payables, and Transfers (Continued)
Interfund Transfers:
Transfers Out:
General Fund
Capital Projects
Water and Sewer Fund
Transfers In
General Debt
Fund Service
Capital
Projects Total
$ - $ 4,500 $ 851,091 $ 855,591
29,372 - - 29,372
1,100,000 - - 1,100,000
$ 1,129,372 $ 4,500 $ 851,091 $ 1,984,963
During the year ended September 30, 2007, the City made a budgeted transfer from Water and
Sewer Fund to General Fund for $1,100,000, a transfer from General Fund to Capital Projects
Fund to fund a computer aided dispatch system, and other miscellaneous transfers.
F. Capital Leases
The City has lease agreements as lessee for fmancing the acquisition of equipment. These lease
agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at
the present value of the future minimum lease payments as of the date of their inception.
The assets acquired through capital leases are as follows:
Assets:
Machinery and Equipment
Less: Accumulated Depreciation
Total
Governmental Business-Type
Activities Activities
$ 786,744 $ 129,392
(178,926) (12,939)
$ 607,818 $ 116,453
40
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
F. Capital Leases (Continued)
The following is a schedule of the future minimum lease payments under these capital leases and
the present value of the net minimum lease payments at September 30, 2007:
Fiscal Year Ending General
September 30, Obligation
2008 $ 247,753
2009 231,383
2010 91, 860
Total Minimum Lease Payments 570,996
Amount Representing Interest (31,164)
Present Value of Future
Minimum Lease Payments $ 539,832
G. Long-Term Debt
General Obligation Certificates of Obligation and Note:
Water and
Sewer
$ 44,612
44,612
18,588
107,812
(6,147)
$ 101,665
$120,600 note payable for the construction of aircraft hangars and associated appurtenances at the
City's Cox Field was obtained February 27, 1991. The note bears interest at 5% with principal and
interest payments of $9,677 made in annual installments through March 2011.
$6,000,000 Combination Tax and Revenue Certificates of Obligation, Series 2000, due in annual
installments varying from $265,000 to $495,000 with final payment due December 15, 2019.
Interest is payable semi-annually at rates ranging from 5.30% to 6.75%. On December 15, 2009,
or any date thereafter, unpaid principal installments may be prepaid or redeemed prior to their
scheduled due dates at the City's option.
$6,060,000 Combination Tax and Revenue Certificates of Obligation, Series 2002, due in annual
installments varying from $230,000 to $460,000 with final payment due December 15, 2021.
Interest is payable semi-annually at rates ranging from 4.00% to 4.70%. On December 15, 2012,
or any date thereafter, unpaid principal installments may be prepaid or redeemed prior to their
scheduled due dates at the City's option.
$7,130,000 General Obligation Refunding Bonds, Series 2003, due in annual installments varying
from $410,000 to $800,000 with fmal payment due December 15, 2014. Interest is payable semi-
annually at rates ranging from 2.5% to 3.9%. On December 15, 2009, or any date thereafter,
unpaid principal installments may be prepaid or redeemed prior to their scheduled due dates at the
City's option.
The ordinances require that ad valorem 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,
2007, the fund balances in the Interest _and Sinking Funds are $736,869. Revenues from the
Waterworks and Sewer System are also pledged to secure the Certificates of Obligation.
41
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
G. Long-Term Debt (Continued)
Water and Sewer Revenue Bonds and Certificates of Obligation:
$5,000,000 Waterworks and Sewer System Revenue Bonds, Series 1997, due in annual
installments varying from $260,000 to $420,000 with final payment due June 15, 2016. Interest is
payable semi-annually at rates ranging from 4.5% to 6.5%.
$6,905,000 Waterworks and Sewer System Revenue Refunding Bonds, Series 1998, due in annual
installments varying from $700,000 to $850,000 with final payment due December 15, 2011.
Interest is payable semi- annually at rates ranging from 4.5% to 4.95%.
$5,810,000 Tax and Revenue Refunding Bonds, Series 1998, due in annual installments varying
from $590,000 to $715,000 with final payment due December 15, 2011. Interest is payable semi-
annually at rates ranging from 4.5% to 4.95%.
$9,500,000 Waterworks and Sewer System Revenue Bonds, Series 2000, due in annual
installments varying from $400,000 to $835,000 with final payment due June 15, 2020. Interest is
payable semi-annually at rates ranging from 5.375% to 6.875%.
$5,130,000 Tax and Revenue Refunding Bonds, Series 2001, due in annual installments varying
from $515,000 to $605,000 with final payment due December 15, 2011. Interest is payable semi-
annually at rates ranging from 3.65% to 4.125%.
On June 15, 2007, for series 1997; on December 15, 2008, for both 1998 series; on June 15, 2010,
for Series 2000; and on December 15, 2009, for Series 2001, or any date thereafter, the unpaid
installments of principal may be prepaid or redeemed prior to their scheduled due dates at the
option of the City.
The revenues of the Waterworks and Sewer System, after deducting the expenses of operation and
maintenance, are pledged for payment of bonds and interest. The ordinances authorizing the
issuance of the bonds require that monthly deposits be made to Interest and Sinking Funds in
amounts sufficient to pay the next maturing bonds and interest.
A Reserve Fund is required to be accumulated with a required reserve amount of at least
$1,677,519, the average annual principal and interest requirements of the 1997, 1998, and 2000
Series bonds. The ordinances also call for the creation of a Contingency Fund into which equal
monthly deposits are made until the balance is $500,000. At September 30, 2007, the asset
balances in the Interest and Sinking Funds, Reserve Fund, and Contingency Fund are $2,446,460,
$1,940,806, and $503,692, respectively. In addition, Series 1994 and Series 1998 Tax and
Revenue Refunding Bonds ordinances require that ad valorem taxes be levied and collected
at a rate sufficient to pay bonds and interest as they come due.
Water Rights Debt:
The City has rights to water storage at Pay Mayse Lake. Payments for these rights are $49,826
due annually, including principal and interest at 3.137% through 2017 and $25,211 for ten years
after that.
42
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV, Detailed Notes on All Funds and Component Unit (Continued)
G. Long-Term Debt (Continued)
General:
Certificates of Obligation were originally issued for construction or improvements in various areas
including streets, buildings, parks, and airport. Water and Sewer Revenue Bonds were originally
issued for extending and improving the waterworks and sewer systems. Federal arbitrage
regulations apply to bonds and certificates of obligation issued by the City.
Long-term debt service requirements for the next five years and after in five year increments
are as follows:
Year Ending General Obligation Water and Sewer
September 30, Principal Interest Principal Interest
2008 $ 799,961 $ 551,767 $ 2,843,000 $ 1,106,797
2009 832,560 516,099 2,975,800 973,077
2010 872,578 478,753 3,116,200 832,401
2011 910,016 440,720 3,259,200 680,904
2012 950,200 400,765 3,424,800 525,643
2013-2017 4,455,600 1,367,085 5,744,400 1,453,136
2018-2022 3,510,000 371,518 2,370,000 263,337
$ 12,330,915 $ 4,]26,707 $ 23,733,400 $ 5,835,295
43
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
G. Long-Term Debt (Continued)
A summary of long-term liability transactions for the year ended September 30, 2007, follows:
Balance
September 30,
2006 Additions
Governmental Activities
Certificates of Obligation
Note
Capital Leases
Compensated Absences
Governmental Activities
Long-Term Liabilities
Business-Type Activities
Revenue Bonds
Water Rights Debt
Capital Leases
Compensated Absences
Business-Type Activities
Long-Term Liabilities
Component Unit
Bonds Payable
Note Payable
Note Payable
Component Unit-
Long-Term Liabilities
Balance
September 30,
Reductions 2007
Due Within
One year
$ 13,054,000 $ - $ 757,400 $ 12,296,600 $ 792,000
41,897 - 7,582 34,315 7,962
103,798 639,650 203,616 539,832 227,548
658,165 63,831 48,889 673,107 51,000
$ 13,857,860 $ 703,481 $ 1,017,487 $ 13,543,854 $ 1,078,510
$ 26,451,000 $ - $ 2,717,600 $ 23,733,400 $ 2,843,000
609,619 - 30,702 578,917 31,665
- 129,392 27,727 101,665 40,661
109,896 13,605 8,244 115,257 8,700
$ 27,170,515 $ 142,997 $ 2,784,273 $ 24,529,239 $ 2,924,026
$ 3,130,000 $ - $ 180,000 $ 2,950,000 $ 190,000
371,360 - 209,370 161,990 161,990
677,852 - 197,102 480,750 207,058
$ 4,179,212 $ - $ 586,472 $ 3,592,740 $ 559,048
For the governmental activities, compensated absences are liquidated by the general fund.
PEDC has two notes payable to a bank to fund an incentive agreement with a corporation planning
to create and operate a computer services business in Paris, Texas and for funding for an industrial
park. One note bears interest at a rate of 3.692% with principal and interest payments due on a
monthly basis. The balance of the note at September 30, 2007, was $161,990. A second note
bears interest at a rate of 4.942% with principal and interest due on a monthly basis. The balance as
of September 30, 2007, was $480,750. Both notes are secured by a tax assignment and security
agreement and contain, to the extent permitted by law, a right of set off in all accounts PEDC has
with the lender.
PEDC has outstanding Paris Economic Development Corporation Taxable Sales Tax Revenue
Bonds, Series 1998, originally issued at $4,200,000, bearing interest at 6.625% to 7.75%. Principal
payments are due serially in varying annual amounts to September 1, 2018, from $190,000 to
$365,000.
44
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
G. Long-Term Debt (Continued)
Sales and Use Taxes (one-quarter of one percent) levied by the City of Paris, Texas, within its
boundaries under the Development Corporation Act of 1979, are pledged for payment of bonds and
interest. The resolution authorizing the issuance of the bonds requires that monthly deposits be
made to the Debt Service Fund in an amount sufficient to pay the next maturing bonds and interest.
A Reserve Fund is required to be maintained with a balance of at least $388,708, the average
annual principal and interest requirements of the bonds. At September 30, 2007, the balances in the
Debt Service Fund and Reserve Fund are $32,450 and $449,957, respectively.
Debt Service requirements related to these bonds and notes are as follows:
Year Ending Bond Debt Requirements Note Payable Note Payable
September 30, Principal Interest Principal Interest Principal Interest Total
2008 $ 190,000 $ 193,486 $ 161,990 $ 2,549 $ 207,058 $ 19,442 $ 774,525
2009 200,000 178,761 - - 217,733 8,767 605,261
2010 215,000 166,261 - - 55,959 473 437,693
2011 230,000 152,716 - - - - 382,716
2012 245,000 138,111 - - - - 383,111
2013-2017 1,505,000 428,856 - - - - 1,933,856
2018-2019 365,000 24,181 - - - - 389,181
$ 2,950,000 $ 1,282,372 $ 161,990 $ 2,549 $ 480,750 $ 28,682 $ '4,906,343
H. Restricted Net Assets and Restricted Asset Accounts
The City's Water and Sewer Revenue bonds and Certificates of Obligation covenants require
certain restrictions of net assets. The restricted portions are as follows:
Restricted for Revenue Bond Operations and Maintenance $ 1,199,091
Restricted for Contingency 503,692
Total Restricted Net Assets $ 1,702,783
Collections of Notes Receivable are restricted by grant agreements to be used for building
rehabilitation.
45
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
IV. Detailed Notes on All Funds and Component Unit (Continued)
H. Restricted Net Assets and Restricted Asset Accounts (Continued)
The balances of the City's restricted asset accounts are as follows:
Customer Deposits
Revenue Bond Contingency
Revenue Bond Construction Account
Revenue Bond Current Debt Service Account
Revenue Bond Future Debt Service Account
Funding Future Water Storage Rights
Notes Receivable
Total Restricted Assets
V. Other Information
A. .Risk Management
Cash and Cash
Equivalents
$ 198,691
147,257
1,596,074
2,446,460
37,743
2,513,290
Certificates of
Deposits and
Other
Investments
$ 553,741
354,935
1,900,694
$ 6,939,515 $ 2,809,370
Accrued
Interest and
Other
Receivables
$ -
1,500
2,369
2,299
43,951
$ 50,119
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, 2007. There have been no settlements in excess of insurance coverage in any of the prior three
fiscal years. In past years, the City operated aself-funded benefits pool for employees which was
replaced May 1, 2006, by coverage provided through an inter-local agreement with TML
Intergovernmental Employees Benefits Pool.
The claims liability is based on the requirements of Governmental Accounting Standards Board
Statement No. 10, which requires that a liability for claims be reported if information prior to the
issuance of the financial statements indicates that it is probable that a liability has been incurred at
the date of the financial statements and the amount of the loss can be reasonably estimated. For
the fiscal years ended September 30, 2006 and 2007, changes on unpaid claims liability are as
follows:
2006
Balance at Beginning of Year $ 439,949
Claims Incurred During the Year 1,840,755
Payments on Claims
Elimination of Liability
Balance at End of Year
(2,244,704)
$ 36,000
46
2007
$ 36,000
(9,891)
(26,109)
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information (Continued)
B. Related Party
The City Council appoints the governing board of an entity which is legally separate from the
City. The City is not able to impose its will on this entity, and a financial benefit/burden
relationship is not present; therefore, it is considered a related organization.
C. Water Storage Commitments
A contract with the United States of America for water storage space in Pat Mayse Lake entitles
the City to utilize one hundred percent of the storage space between elevations 451.0 and 415.0
feet above sea level.
Forty percent (43,800 acre-feet) is for present storage .and the remaining sixty percent (65,800
acre-feet) is for future water storage. The City is to repay the government the entire amount of
construction costs allocated to the water storage right acquired by the City. The City is obligated
to pay 9.46% of the ordinary operation and maintenance cost of the project annually and 4.22% of
major capital replacements when incurred.
Allocated cost for future water storage (60%) is $1,925,722 and the amount to be paid including
accumulated interest mentioned below is to be on a pro rata basis as more storage is acquired by
the City. The City has been advised than an offer to purchase the remaining storage has been
approved as part of the Water Resources Development Act. For a payment of $3,461,432
including interest, the City will acquire the remaining storage rights. The City expects to fund this
acquisition from unused bond proceeds and assets accumulated for this purpose.
D. Water Sales
The City has contracts extending for several years to sell treated and untreated water to five
entities. Total water sales under these contracts to these entities during the year ended September
30, 2007, were approximately $3,190,000.
E. Civic Center Contract
The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby
three-sevenths of the hoteUmotel 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, 2007, and may be automatically extended for additional one-year terms ending
September 30, 2010. Either party may terminate this contract at the end of the current term by
giving thirty days notice in advance of the automatic renewal.
47
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information (Continued)
F. Contingent Liabilities and Commitments
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the City
expects such amounts, if any, to be immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City's counsel that resolution of these matters will
not have a material adverse effect on the financial condition of the City.
In connection with a housing infrastructure grant awarded in 1999, the grantor has stated that the
City is not in compliance with the requirements of the grant and $393,500 of the cost if being
questioned. The City feels that the non compliance is due to lack of oversight by the developer
and is attempting to negotiate a fmal settlement.
In the past, the City operated a landfill, which was closed several years ago however, the property
is still owned. The City is responsible for post-closure care and maintenance, which is not
expected to be significant for any future year. Post-closure care is an estimate and subject to
changes resulting from inflation, deflation, technology, and changes in applicable laws and
regulations.
PEDC had no outstanding incentive agreements related to economic development.
G. Postemployment Benefits Other Than Pensions
The City has in effect a plan adopted by City Council resolution whereby persons who retire
before age sixty-five will be provided health care coverage until they become sixty-five. The
City's contributions are fmanced on spay-as-you-go basis and for the year ended September 30,
2007, the cost was approximately $129,000 for 40 retired employees. An additional 46 employees
were eligible for this benefit.
H. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with
Internal Revenue Code Section 457.
I. Employee Retirement Systems and Plans
The City maintains anon-traditional defined benefit retirement plan for all full-time employees
except for firefighters and asingle-employer, defined benefit plan for firefighters.
48
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information
I. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System
Plan Description
The City provides pension benefits for all of its full-time employees (except firefighters)
through anon-traditional, joint contributory, hybrid defined benefit plan in the state-wide
Texas Municipal Retirement System (TMRS), one of 821 currently administered by TMRS, an
agent multiple-employer public employee retirement system.
Benefits
Benefits depend upon the sum of the employee's contributions to the plan with interest, and the
City-financed monetary credits with interest. At the date the plan began, the City granted
monetary credits for service rendered before the plan began of a theoretical amount at least
equal to two times what would have been contributed by the employee with interest, prior to
establishment of the plan. Monetary credits for service since the plan began are a percent
(150%) of the employee's accumulated contributions. In addition, the City can grant, as often
as annually, another type of monetary credit referred to as an updated service credit which is a
theoretical amount which, when added to the employee's accumulated contributions and the
monetary credits for service since the plan began, would be the total monetary credits and
employee contributions accumulated with interest if the current employee contribution rate and
City matching percent had always been in existence and if the employee's salary had always
been the average of his salary in the last three years that are one year before the effective date.
At retirement, the benefit is calculated as if the sum of the employee's accumulated
contributions with interest and the employer-fmanced monetary credits with interest were used
to purchase an annuity.
The plan provisions are adopted by the governing body of the City, within the options available
in the state statutes governing TMRS. Plan provisions for the City were as follows:
Deposit Rate:
6%
Matching Ratio (City to Employees): 2 to 1
A member is vested after 5 years
Members can retire at certain ages, based on the years of service with the City.
The Service Retirement Eligibilities for the City (expressed as years of service/age) are:
5 years/age 60
20 years/any age
49
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information
I. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Contributions
Under the state law governing TMRS, the actuary annually determines the City's contribution
rate. This rate consists of the normal cost contribution rate and the prior service cost
contribution rate, both of which are calculated to be a level percent of payroll from year to
year. The normal cost contribution rate finances the currently accruing monetary credits due to
the City matching percent, which are the obligation of the City as of an employee's retirement
date, not at the time the employee's contributions are made. The normal cost contribution rate
is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to
each employee at the time his/her retirement becomes effective. The prior service contribution
rate amortizes the unfunded actuarial liability over the remainder of the plan's 25-year
amortization period.. The unit credit actuarial cost method is used for determining the City's
contribution rate. Both the employees and the City make contributions monthly. Since the
City needs to know its contribution rate in advance for budgetary purposes, there is a one-year
delay between the actuarial valuation that serves as the basis for the rate and the calendar year
when the rate goes into effect. For actuarial valuation, the market related method is used for
assets. Other assumptions include no projected salary increases or cost-of-living adjustments,
inflation at 3.5%, and the investment rate of return is 7%. The level percent of payroll is the
amortization method used.
During the past three plan years, the City has contributed 100% of its annual pension cost as
follows: 2006 - $1,188,241 , 2005 - $1,158,159; and 2004 - $1,177,209. At September 30,
2005, 2006, and 2007, the net pension obligation is zero.
Schedule of Funding Pro rg ess
Actuarial
Liability
Actuarial as a
Valuation Actuarial Actuarial Unfunded Percentage
December Value of Accrued Actuarial Funded Covered of Covered
31, Assets Liability Liability Ratio Payroll Payroll
2004 $ 21,204,977 $ 28,601,946 $ 7,396,969 74.1% $ 9,547,350 77.5%
2005 21,322,495 29,062,212 7,739,717 73.4 8,887,246 87.1
2006 22,158,991 30,579,449 8,420,458 72.5 9,301,960 90.5
50
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information
I. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Contributions (Continued)
Paris is one of 821 municipalities having their benefit plan administered by TMRS. Each of
the 821 municipalities have an annual, individual actuarial valuation performed. All
assumptions for the December 31, 2006 valuations are contained in the 2006 TMRS
Comprehensive Annual Financial Report, a copy of which may be obtained by writing to P.O.
Box 149153, Austin, Texas 78714-9153.
2. Firefighters's Relief and Retirement Fund
Plan Description
The Paris Firefighter's Relief and Retirement Fund, asingle-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 fmancial 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.
Eli ig'bility
The Plan covers current and former firefighters of the City of Paris, Texas, as well as certain
beneficiaries. The City of Paris contributes 13.88% of each member's total pay (including
regular, longevity, and overtime pay but excluding lump sum distributions for unused sick
leave or vacation). Fund members contribute to the fund at a rate of eleven percent of pay.
Employee contributions are "picked up" by the City of Paris, Texas, as permitted under Section
414(h)(2) of the Internal Revenue Code. Fund members receive credit for service for the
period during which they pay into and keep on deposit in the fund, the contributions required
by the fund.
The fund was amended effective October 1, 2006.
The City's annual required contribution to the plan for fiscal year 2007 was based on a payroll
of $2,003,290 and amounted to $274,561. Covered employees made contributions of
$220,362. The Plan covers 30 retirees and beneficiaries, 30 fully vested active employees, and
18 nonvested active employees.
51
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information (Continued)
I. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Service Retirement Disability and Death Benefits
A member is eligible for service retirement on either (a) the date that the member has both
attained age 55 and completed 20 years of service or (b) the date as of which the sum of the
member's age and years of service first equals 80 provided the member has completed 20 years
of service. A member who retires under the service retirement provisions of the fund will
receive a monthly benefit equal to the greater of $89.50 multiplied by his/her years of service
at retirement or another formula using other factors. Service retirement benefits are payable
for the member's lifetime. In the event the member's death precedes that of his/her spouse,
two-thuds of the member's pension will be continued to the spouse for his/her lifetime. An
active member who becomes disabled will receive a monthly disability benefit. If a member
dies .while in active service, his/her widow(er) will receive an immediate monthly benefit,
payable for his/her lifetime.
Annual Pension Cost
The actuarial valuation date used to determine the Annual Required Contribution for the year
ended September 30, 2007, and the most current available information required for disclosure
under Paragraph 22 of GASB Statement No. 27 is January 1, 2007. The actuarial cost method
used in the January 1, 2007, valuation is the entry age normal actuarial cost method. This
method is also referred to as the entry age actuarial cost method under the terminology
developed by the Joint Committee on Pension Terminology. The valuation measures the
actuarial balance between the present value of future benefits and the sum of (i) the present
value of future contributions and (ii) the actuarial value of assets. The plan is not subject to the
minimum funding requirements of Internal Revenue Code Section 412. There has been no
change in the actuarial cost method since the last actuarial valuation.
The actuarial assumptions used in the actuarial valuation performed as of January 1, 2007,
include a rate of return on the actuarial value of assets of 8.00% per year compounded annually;
UP 1994 Mortality Table; termination rates from the Actuary's Pension Handbook; disability
rates from 1985 Society of Actuaries Disability Table Study; and assumed retirement age of 55
with 20 years of service or satisfied the rule of 80. Compensation increases for individual
members and total payroll is 4.5% compounded annually. Projected post retirement benefit
increases are zero. The amortization of the unfunded actuarial accrued liability was deternuned
as a level percentage of payroll. The amortization period is an open amortization period over
20.8 years.
The actuarial value of assets is smoothed market value which smoothes interest and dividends
as well as investment gains and losses. Calculation of the actuarial value of assets begins with
an "initial asset value."
52
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information (Continued)
I. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Annual Pension Cost (Continued)
The initial asset value is the market value of assets five years prior to the valuation date. All
receipts from contributions, interest, dividends, and miscellaneous income over the last five
years are added to the initial asset value. Likewise, all benefit payments, contribution refunds,
and expenses are subtracted from the initial asset value. In this manner, all such receipts and
disbursements are recognized immediately.
January 1,
2003 2005 2007
Actuarial Value of Assets
Actuarial Accrued Liability (AAL)
Unfunded AAL (UAAL)
Funded Ratio
Covered Payroll
$ 6,128,263 $ 6,967,797 $ 6,901,424
9,676,328 10,802,145 10,951,137
$ 3,548,065 $ 3,834,348 $ 4,049,713
63.3% 64.5% 63.0%
$ 1,968,378 $ 2,093,252 $ 1,781,420
UAAL as a Percentage of Covered Payroll 180.3% 183.2% 227.3%
53
City of Paris, Texas
Notes to Financial Statements
September 30, 2007
V. Other Information (Continued)
I. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Development of the Actuarial Value of Assets
Market Value as of January 1
Contributions, Interest and Dividends
Contributions by the City
Contributions by Members
Dividends and Interest
Other
December 31,
2004 2005 2006
$ 6,352,304 $ 6,607,720 $ 6,570,452
272,228 257,286 253,191
229,967 201,567 197,946
196,087 238,695 221,268
3,241 274 13,398
701,523 697,822 685,803
Disbursements
Benefits Paid Monthly
Administrative Expenses
Net Realized and Unrealized Gains and Losses
650,888 913,153 769,028
93,809 95,498 111,172
744,697 1,008,651 880,200
Realied Gains (Losses) 35,691 333,986 484,560
Unrealized Gains (Losses) 262,899 (60,425) 215,377
298,590 273,561 699,937
Market Value as of December 31 6,607,720 $ 6,570,452 7,075,992
Adjustments to Develop Actuarial Value, Net 360,077 (174,568)
Actuarial Value of Assets $ 6,967,797 $ 6,901,424
Other Information
Annual Pension Cost
Percentage of Annual
Pension Cost Contributed
Net Pension Obligation
2004 2005 2006
$ 272,228 $ 257,286 $ 253,191
100% 100% 100%
$ - $ - $ -
54
:~
A,~~ . ;~ ~~~ ~I~ . ~~YY ~ ~~F~~ ~~~~~ ~~ _ ~I
Nonmajor Governmental Funds
Special Revenue
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular
purposes.
Criminal Justice Division Grant -This fund accounts for funds received and expended in connection with the City's
multi-agency narcotics task force.
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 which 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.
Health Department -This fund accounts for funds received primarily from federal, state, another local entity, and local
fees. Employees of the fund are responsible for protecting the public health through immunization programs, operation
of a health clinic, health inspections, restaurant inspections, food handlers training, mosquito control, well baby clinics,
and family planning programs.
Library Memorial Funds -These funds account for resources given for book and library related purposes in memory of
individuals.
Permanent Funds
Library Trust Funds -These funds account for resources of a permanent nature whereby only earnings and not principal
maybe used for books and library related purposes.
Other Major Governmental Funds
Debt Service Fund -This fund accounts for the accumulation of resources and the payment of general obligation
principal and interest.
Capital Projects Fund -This fund accounts for proceeds from bond issues and transfers.
55
City of Paris, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2007
Special Revenue
Criminal Community
Justice Development Library
Division Block Special Health Memorial
Grant Grant Revenue Department Funds
ASSETS
Cash $ 36,026 $ 262,684 $ 137,601 $ 98,072 $ 104,144
Investments - - - - 51,561
Notes Receivable - 43,951 - - -
Accounts Receivable 44,557 - - - -
Due from Other Governments - - - 217,630 -
Total Assets $ 80,583 $ 306,635 $ 137,601 $ 315,702 $ 155,705
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable $ 11,967 $ - $ - $ 208 $ -
Due to General Fund - - - 15,527 -
Total Liabilities 11,967 - - 15,735 -
Fund Balances
Reserved for Notes - 43,951 - - -
Unreserved - Undesignated 68,616 262,684 137,601 299,967 155,705
Total Fund Balances 68,616 306,635 137,601 299,967 155,705
Total Liabilites and
Fund Balances $ 80,583 $ 306,635 $ 137,601 $ 315,702 $ 155,705
56
Schedule 1
Permanent
Total
Library Nonmajor
Trust Governmental
Total Funds Funds
$ 638,527 $ 291 $ 638,818
51,561 80,177 131,738
43,951 - 43,951
44,557 - 44,557
217,630 - 217,630
$ 996,226 $ 80,468 $ 1,076,694
$ 12,175
15,527
27,702
43,951
924,573
968,524
$ - $ 12,175
80,468
27,702
43,951
1,005,041
$ 996,226 $ 80,468 $ 1,076,694
57
City of Paris, Texas
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2007
Special Revenue
Revenues:
Memorial Donations
Interest Earned
Grant Revenue
Local Revenue
Total Revenues
Expenditures:
Municipal Court
Community Development
Police
Health
Library
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Fund Balances -
Septembers 30, 2006
Fund Balance -
Septembers 30, 2007
Criminal Community
Justice Development Library
Division Block Special Health Memorial
Grant Grant Revenue Department Funds Total
$ - $ - $ - $ - $ 6,896 $ 6,896
- 1,966 907 628 8,019 11,520
- 2,750 - 651,587 - 654,337
- - 34,151 177,687 - 211,838
- 4,716 35,058 829,902 14,91.5 884,591
- - 19,678 -
- 24,340 - -
499 - 11,296 -
- - - 816,419
499 24,340 30,974 816,419
(499) (19,624) 4,084 13,483
- 19,678
- 24,340
- 11,795
- 816,419
8,276 8,276
8,276 880,508
6,639 4,083
69,115 326,259. 133,517 286,484 149,066 964,441
$ 68,616 $ 306,635 $ 137,601 $ 299,967 $ 155,705 $ 968,524
58
Schedule 2
Permanent
Total
Library Nonmajor
Trust Governmental
Fnnlie Fnn~e
$ - $ 6,896
3,916 15,436
- 654,337
- 211,838
3,916 888,507
- 19,678
- 24,340
- 11,795
- 816,419
- 8,276
- 880,508
3,916 7,999
76,552 1,040,993
$ 80,468 $ 1,048,992
59
City of Paris, Texas Schedule 3
Criminal Justice Division Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Revenues:
Grant Revenue $ - $ - $ - $ -
Local Revenue - - - -
Program Income - - - -
Total Revenues - - - -
Expenditures:
Police 130,224 130,224 499 129,725
Total Expenditures 130,224 130,224 499 129,725
Excess Revenues Over
(Under) Expenditures (130,224) (130,224) (499) 129,725
Fund Balance -September 30, 2006 69,115 69,115 69,115 -
Fund Balance -September 30, 2007 $ (61,109) $ (61,109) $ 68,616 $ 129,725
60
City of Paris, Texas _ Schedule 4
Community Development Block Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Revenues:
Interest Earned on
Notes Receivable $ - $ - $ 1,966 $ 1,966
Grant Revenue - - 2,750 2,750
Total Revenues - - 4,716 4,716
Expenditures:
Community Development - - 24,340 (24,340)
Total Expenditures - - 24,340 (24,340)
Excess Revenues Over
(Under) Expenditures - - (19,624) (19,624)
Fund Balance -September 30, 2006 326,259 326,259 326,259 -
Fund Balance -September 30, 2007 $ 326,259 $ 326,259 $ 306,635 $ (19,624)
61
City of Paris, Texas Schedule 5
Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Revenues:
Interest Earned $ 500 $ 500 $ 907 $ 407
Local Revenue 26,400 26,400 34,151 7,751
Total Revenues 26,900 26,900 35,058 8,158
Expenditures:
Municipal Court 127,987 127,987 19,678 108,309
Police Department 4,500 4,500 11,296 (6,796)
Total Expenditures 132,487 132,487 30,974 101,513
Excess Revenues Over
(Under) Expenditures
(105,587) (105,587) 4,084
109,671
Fund Balance -September 30, 2006 133,517 133,517 133,517
Fund Balance -September 30, 2007 $ 27,930 $ 27,930 $ 137,601
$ 109,671
62
City of Paris, Texas
Health Department Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2007
Budgeted Amounts
Original Final
Revenues:
Grant Revenue $ 615,828 $ 615,828
Local Revenue 259,973 259,973
Interest Earned - -
Total Revenues 875,801 875,801
Expenditures:
Schedule 6
Variance with
Final Budget-
Positive
Actual (Negative)
$ 651,587 $ 35,759
177,687 (82,286)
628 628
829,902 (45,899)
Health 875,801 875,801 816,419 59,382
Total Expenditures 875,801 875,801 816,419 59,382
Excess Revenues Over
(Under) Expenditures - -
Fund Balance - September 30, 2006 286,484 286,484
Fund Balance - September 30, 2007 $ 286,484 $ 286,484
13,483 13,483
286,484 -
$ 299,967 $ 13,483
63
City of Paris, Texas Schedule 7
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2007
Budgeted Amounts Variance with
Final Budget-
Positive
Original Final Actual (Negative)
Revenues:
Ad Valorem Taxes $ 1,343,005 $ 1,343,005 $ 1,306,714 $ (36,291)
Interest Earned - - 16,758 16,758
Total Revenues 1,343,005 1,343,005 1,323,472 (19,533)
Expenditures:
Bond Principal Retirement 757,400 757,400 757,400 -
Interest and Fiscal Charges 585,605 585,605 585,277 328
Total Expenditures 1,343,005 1,343,005 1,342,677 328
Excess Revenues Over
(Under) Expenditures - - (19,205) (19,205)
Other Financing Sources:
Transfers In - - 4,500 4,500
Fund Balance -September 30, 2006 751,574 751,574 751,574 -
Fund Balance -September 30, 2007 $ 751,574 $ 751,574 $ 736,869 $ (14,705)
64
City of Paris, Texas
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
From Inception and For the Year Ended September 30, 2007
Prior Current
Revenues:
Investment Income
Grant and Other Revenues
Total Revenues
Expenditures:
City Council
City Attorney
Police
Parks
Streets and Highways
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Tax and Revenue
Bond Proceeds
Sale of Capital Assets
Transfers In (Out)
Net Change in Fund Balance
Fund Balance, September 30, 2006
Fund Balance, September 30, 2007
Total
to Date
Schedule 8
Project
$ 958,554 $ 21,860 $ 980,414 $ -
1,048,495 2,364 1,050,859 -
2,007,049 24,224 2,031,273 -
1,184,267 58,260 1,242,527 500,000
- - 5,384 5,384 -
6,856,090 418,423 7,274,513 6,240,000
1,121, 844 - 1,121, 844 1,000,000
4,956,891 (3,956) 4,952,935 4,320,000
14,119,092 478,111 14,597,203 12,060,000
(12,112,043) (453,887) (12,565,930) (12,060,000)
12,061,549 - 12,061,549 12,060,000
59,393 102,195 161,588 -
180,837 821,719 1,002,556 -
$ 189,736 470,027 $ 659,763 $ -
$ 659,763
65
,~~.,.,.. f~~~~.rf a . ~I\ ~ ~~yw ~~ ~Faa~~ a ~ ~ ~I~\s
`~""ew.,ww..,.:. ~ a ~oxw3. mwuw~ ~o~ v~~wa,wrx.~v.~
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2007 and 2006
Governmental Funds Capital Assets:
Land
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Construction in Progress
Total Governmental Funds Capital Assets
Investments in Governmental Funds Capital Assets by Source:
General Fund
Capital Projects Funds
Donations
Total Governmental Funds Capital Assets by Source
2007
$ 5,903,022
15,380,854
3,648,710
16,274,249
36,114,216
417,155
$ 77,738,206
$ 56,144,423
16,941,581
4,652,202
$ 77,738,206
Schedule 9
2006
$ 5,903,022
15,218,309
3,648,710
16,215,764
36,114,216
6,979
$ 77,107,000
$ 55,991,292
16,463,506
4,652,202
$ 77,107,000
66
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2007
Function and Activity
General Government:
Council
Manager
Attorney
Clerk
Finance
Total General Government
Public Safety:
Police
Fire
Total Public Safety
Public Works:
Community Development
Engineering
Public Works
Parks and Recreation
Solid Waste
Streets and Highways
Traffic and Public Lighting
Garage
Other Unclassified
Total Public Works
Emergency Medical Service
Cox Field
Library
Total Governmental Funds
Capital Assets
Improvements Machinery
Other Than and
Land Buildings Buildings Equipment
$ 330,820 $ 2,457,709 $ - $ 571,904
- - - 10,187
- - - 113,768
- 14,737 - 71,230
- - - 395,261
330,820 2,472,446 - 1,162,350
619,585 5,911,262 25,000 3,168,223
159,268 2,189,378 - 2,490,820
778,853 8,100,640 25,000 5,659,043
3,299,676 - - 120,782
- 10,747 - 163,369
125,543 - - 842,073
112,230 92,268 2,775,200 843,806
626,395 - 42,079 1,116,031
138,590 88,220 41,729 1,776,146
- - - 117,366
- 79,121 - 71,039
- - - 17,036
4,302,434 270,356 2,859,008 5,067,648
- 60,729 - 2,072,285
429,120 3,428,970 741,517 221,929
61,795 1,047,713 23,185 2,090,994
$ 5,903,022 $ 15,380,854 $ 3,648,710 $ 16,274,249
67
Schedule 10
Infrastructure Total
$ - $ 3,360,433
- 10,187
- 113,768
- 85,967
- 395,261
- 3,965,616
- 9,724,070
- 4,839,466
- 14,563,536
- 3,420,458
- 174,116
- 967,616
- 3,823,504
- 1,784,505
36,114,216 38,158,901
- 117,366
- 150,160
- 17,036
36,114,216 48,613,662
- 2,133,014
- 4,821,536
- 3,223,687
$ 36,114,216 $ 77,321,051
68
City of Paris, Texas Schedule 11
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
September 30, 2007
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity September 30, 2006 Additions Deductions September 30, 2007
General Government:
Council
Manager
Attorney
Clerk
Finance
Total General Government
Public Safety:
Police
Fire
Total Public Safety
Public Works:
Community Development
Engineering
Public Works
Parks and Recreation
Solid Waste
Streets and Highways
Traffic and Public Lighting
Garage
Other Unclassified
Total Public Works
Emergency Medical Service
Cox Field
Library
Total Governmental Funds
Capital Assets
$ 3,200,041 $ 160,392 $ - $ 3,360,433
10,187 - - 10,187
113,768 - - 113,768
85,967 - - 85,967
335,933 59,328 - 395,261
3,745,896 219,720 - 3,965,616
9,804,493 85,950 166,373 9,724,070
4,839,466 - - 4,839,466
14,643,959 85,950 166,373 14,563,536
3,343,828 84,118 7,488 3,420,458
184,508 - 10,392 174,116
967,616 - - 967,616
3,692,122 131,382 - 3,823,504
2,042,857 184,682 443,034 1,784,505
38,096,634 73,516 11,249 38,158,901
117,366 - - 117,366
150,160 - - 150,160
17,036 - - 17,036
48,612,127 473,698 472,163 48,613,662
2,052,816 80,198 - 2,133,014
4,821,536 - - 4,821,536
3,223,687 - - 3,223,687
$ 77,100,021 $ 859,566 $ 638,536 $ 77,321,051
69
STATISTICAL SECTION
>~
STATISTICAL SECTION
This part of the City of Paris' comprehensive annual financial report contains detailed information as a
context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the government's overall financial health.
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
70
.,
.~ ~., ; ; ~ ~I~ ~~ a~y~~ ~ ~Fa~ pp ~ ~ ~~~I~S~
., < a ~ ~~ ~ 'ham` .~a..w. v~~A ~w.w. '~aa~~~\ ma~wa r..~~~~a~el.~~
Governmental Activities:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Governmental
Activities,Net Assets
'Business-Type Activities:
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Business-Type
Activities, Net Assets
Primary Government
Invested in Capital Assets,
Net of Related Debt
Restricted
Unrestricted
Total Primary Government,
Net Assets
Fiscal Year
2003 2004 2005
$ 19,842,402 $ 19,947,827 $ 25,293,563
11,014,363 7,549,815 5,089,243
4,715,567 5,790,128 7,192,467
$ 35,572,332 $ 33,287,770 $ 37,575,273
Table 1
~nn~ ~M7
$ 28,935,168 $ 28,296,810
1,249,886 1,356,091
o ~ i o nno 17 add i 17
$ 39,804,063 $ 41,997,018
$ 24,433,769 $ 25,324,447 $ 24,119,931 $ 23,590,438 $ 23,735,238
5,668,693 3,935,871 3,936,107 2,864,698 3,258,469
3,675,892 4,592,176 3,487,041 6,282,200 6,530,918
$ 33,778,354 $ 33,852,494 $ 31,543,079 $ 32,737,336 $ 33,524,625
$ 44,276,171 $ 45,272,274 $ 49,413,494 $ 52,525,606 $ 52,032,048
16,683,056 11,485,686 9,025,350 4,114,584 4,944,480
8,391,459 10,3 82,304 10,679,508 15,901,209 18,545,115
$ 69,350,686 $ 67,140,264 $ 69,118,352 $ 72,541,399 $ 75,521,643
Fiscal year 2003 was the initial year of implementation of GASB Statement No. 34.
Fiscal years prior to 2002 were not restated in GASB No. 34 format.
2005 has been reclassified to be consistent with 2006.
City of Paris, Texas
Net Assets by Component
Last Five Fiscal Years
(Accrual Basis of Accounting)
Unaudited
71
City of Paris, Texas
Changes in Net Assets
Last Five Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fisca l Year
2003(1) 2004 2005 2006 2007
Expenses
Governmental Activities:
General Government $ 2,209,909 $ 2,275,969 $ 2,188,590 $ 1,391,781 $ 1,722,181
Finance 487,253 540,815 515,965 556,076 426,485
Public Safety 9,228,741 9,554,945 9,825,404 9,138,101 9,045,085
Public Works 7,500,073 8,102,061 6,957,522 6,826,116 7,217,841
Health 2,881,164 3,724,003 2,904,920 2,889,602 2,897,836
Library Service 1,165,646 917,450 718,779 745,653 690,413
Cox Field 253,822 256,149 258,496 264,181 236,414
Interest on Long-Term Debt 932,025 1,022,551 - 627,691 614,799 584,861
Total Governmental
Activities Expenses 24,658,633 26,393,943 23,997,367 22,426,309 22,821,116
Business-Type Activities:
Water and Sewer Services 9,647,360 9,997,416 10,554,510 10,912,834 10,839,828
Total Primary Government
Expenses $ 34,305,993 $ 36,391,359 $ 34,551,877 $ 33,339,143 $ 33,660,944
Program Revenues
Governmental Activities:
Charges for Services:
General Government $ 133,746 $ 125,001 $ 184,469 $ 167,032 $ -
Public Safety 573,497 485,266 379,992 698,497 806,321
Public Works 1,550,057 1,602,974 1,718,241 1,609,895 1,626,253
Health 2,056,370 3,000,742 1,648,008 2,389,663 2,406,995
Library Services 55,910 - 38,960 31,532 19,601
Operating Grants
and Contributions 2,892,360 3,442,169 2,823,843 1,660,785 1,244,186
Capital Grants and Contributions - - 194,227 230,177 25,599
Total Governmental Activities
Program Revenues 7,261,940 8,656,152 6,987,740 6,787,581 6,128,955
Business-Type Activities: _
Charges for Services:
Water and Sewer Service 10,412,475 10,929,862 12,160,851 12,879,592 12,359,516
Total Primary Government
Program Revenues $ 17,674,415 $ 19,586,014 $ 19,148,591 $ 19,667,173 $ 18,488,471
Net (Expense)/Revenue
Governmental Activities $(17,396,693) $(17,737,791) $(17,009,627) $(15,638,728) $(16,692,161)
Business-Type Activities 765,115 932,446 1,606,341 1,966,758 1,519,688
Total Primary Government,
Net Expense $(16,631,578) $(16,805,345) $(15,403,286) $(13,671,970) $(15,172,4?3)
72
Table 2
2003(1)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes $ 7,260,943
Sales Taxes 4,726,406
Franchise 3,034,049
Hotel Occupancy 310,920
Investment Earnings 155,320
Grants, Donations,
2004
Fiscal Year
2005 2006 2007
$ 7,456,850 $ 7,733,700 $ 7,583,269 $ 7,924,453
4,794,743 5,066,926 5,401,371 5,673,616
2,465,130 3,062,589 3,053,671 3,082,183
302,334 314,404 396,333 430,991
127,251 112,310 342,306 571,678
and Miscellaneous - - - 418,603 568 102,195
Transfers (2,603,160) 1,235,454 4,588,598 1,090,000 1,100,000
Special Item - (928,533) - - -
Total Governmental Activities 12,884,478 15,453,229 21,297,130 17,867,518 18,885,116
Business-Type Activities:
Investment Earnings
Transfers
Contribution
Special Item
Total Business-Type Activities
Total Primary Government
Change in Net Assets
Governmental Activities
Business-Type Activities
Total Primary Government
243,952 191,576
2,603,160 (1,235,454)
- 593,660
- (408,088)
2,847,112 (858,306)
$ 15,731,590 $ 14,594,923
$ (4,512,215) $ (2,284,562)
3,612,227 74,140
70,731
(4,588,598)
602,111
(3,915,756)
$ 17,381,374
$ 4,287,503
(2,309,415)
284,899
(1,090,000)
32,600
(772,501)
$ 17,095,017
$ 2,228,790
1,194,257
367,601
(1,100,000)
(732,399)
$ 18,152,717
$ 2,192,955
787,289
$ (899,988) $ (2,210,422) $ 1,978,088 $ 3,423,047 $ 2,980,244
(I) Fiscal Year 2003 was the initial year of implementation of GASB Statement No. 34.
Fiscal years prior to 2003 were not restated in GASB No. 34 format.
73
City of Paris, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
.1998 1999 2000 2001 2002
General Fund
Reserved $ 151,236 $ 160,716 $ 213,667 $ 190,273 $ 171,248
Unreserved 6,126,815 5,757,173 6,290,822 4,811,122 6,085,946
Total General Fund $ 6,278,051 $ 5,917,889 $ 6,504,489 $ 5,001,395 $ 6,257,194
All Other Governmental Funds
Reserved $ 999,600 $ 1,011,399 $ 6,573,994 $ 5,275,529 $ 10,663,363
Unreserved, reported in:
Special Revenue Funds 246,164 295,377 408,946 570,378 774,466
Permanent Funds 38,063 42,933 45,237 47,516 76,261
Total All Other Governmental Funds $ 1,283,827 $ 1,349,709 $ 7,028,177 $ 5,893,423 $ 11,514,090
74
Table 3
Fiscal Year
2003 2004
2005
2006 2007
$ 217,610 $ 155,608 $ 153,043 $ 118,925 $ 202,440
5,502,760 3,735,128 5,375,749 8,874,883 11,581,136
$ 5,720,370 $ 3,890,736 $ 5,528,792 $ 8,993,808 $ 11,783,576
$ 8,071,051 $ 7,776,342 $ 4,831,754 $ 997,192 $ 1,440,583
800,930 909,520 1,006,385 908,559 924,573
77,454 (196,478) 73,373 76,552 80,468
$ 8,949,435 $ 8,489,384 $ 5,911,512 $ 1,982,303 $ 2,445,624
75
City of Paris, Texas
Changes in Fund Balances of Governmental Funds (1)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
1998 1999 2000
Revenues
Taxes $11,125,408 $11,583,826 $12,772,897
Licenses andPemuts 47,147 68,658 53,451
Fines and Fees 466,837 445,958 452,700
Use of Money and Property 270,970 254,347 348,828
Public Safety 720 1,080 1,800
Sanitation Fees 1,354,255 1,482,995 1,547,223
Health 1,853,508 1,622,654 1,567,331
Intergovernmental 1,289,185 1,228,946 1,026,441
Other 378,693 447,933 426,702
Total Revenues 16,786,723 17,136,397 18,197,373
Expenditures
General Government 1,394,551 1,441,212 1,521,641
Finance 379,179 383,940 505,245
Public Safety 6,513,684 7,637,819 7,928,492
Public Works 4,830,986 5,050,915 5,388,190
Health Department 825,403 740,734 693,691
Emergency Medical Service 1,309,932 1,269,897 1,376,163
Insurance Trust Fund - - -
Library 620,041 706,498 682,798
Cox Field 722,545 108,274 160,870
Other 14,703 14,088 15,459
Debt Service
Interest 234,306 223,633 212,109
Principal 175,000 185,000 195,000
Capital Outlay - - -
Total Expenditures 17,020,330 17,762,010 18,679,658
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Proceeds of Capital Leases
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
(233,607) (625,613) (482,285)
99, 845 - -
1,026,780 1,036,825 1,036,825
- (750,000) -
1,126,625 286,825 1,036,825
Adjustment Due to Change in Accounting Principle
Increase (Decrease) in Reserve for Inventory
Net Change in Fund Balances
Debt Service as a Percentage of Noncapital Expenditures
(7,397)
$ 885,621
2.70%
9,480
$ (329,308)
2.54%
52,951
$ 607,491
2.37%
Source: City of Paris
Notes: (1) Includes General and Debt Service Fund for years through 2002, (2) GASB 34 adopted,
(3) Included in General Fund 2005
76
Table 4
Fiscal Year
2001 2002 2003(2) 2004 2005 2006 2007
$13,434,372 $13,748,657 $15,323,499 $14,959,510 $16,109,433 $16,435,160 $17,116,584
84,660 114,720 80,666 73,163 98,611 87,137 106,997
535,496 545,236 472,857 501,124 556,895 543,606 571,165
305,362 204,846 265,980 247,260 357,262 493,234 721,799
1,800 1,800 172,955 208,878 230,029 212,729 34,151
1,380,109 1,382,796 1,349,711 1,346,443 1,361,406 1,287,138 1,488,874
2,353,402 2,844,927 2,043,589 2,246,352 2,083,448 2,489,961 2,935,839
1,088,493 2,197,149 2,715,441 2,493,221 2,272,486 1,867,098 613,665
998,580 664,848 302,489 852,469 470,791 247,234 374,545
20,182,274 21,704,979 22,727,187 22,928,420 •23,540,361 23,663,297 23,963,619
1,751,664 2,340,802 1,577,462 1,612,645 1,545,542 1,210,298 966,627
440,423 439,535 476,883 533,799 508,968 549,079 414,080
8,795,690 8,222,361 8,675,218 9,070,046 9,136,810 8,653,589 8,564,024
7,730,857 6,004,759 5,957,419 6,473,823 5,324,999 5,193,512 5,518,798
691,507 747,528 800,717 797,474 844,625 822,734 816,419
1,790,374 1,824,006 1,790,799 1,844,574 1,862,313. 1,890,825 1,979,104
_ - - 879,643 - (3) - -
729,600 720,407 1,034,918 795,347 601,885 621,327 570,394
171,691 130,929 132,347 133,295 134,542 143,620 117,574
19,501 18,460 505,553 484,044 535,395 60,011 752,256
640,983 531,561 744,280 796,024 670,102 622,773 596,043
290,000 390,000 862,838 1,225,517 1,065,372 864,958 968,598
_ - 3,664,855 1,833,954 3,163,974 4,550,646 1,269,778
23,052,290 21,370,348 26,223,289 26,480,185 25,394,527 25,183,372 22,533,695
(2,870,016) 334,631 (3,496,102) (3,551,765) (1,854,166) (1,520,075) 1,429,924
- - 59,980 87,114 - - 639,650
1,095,535 1,100,000 1,352,661 1,929,831 1,799,397 1,152,590 1,984,963
- - (1,062,866) (694,377) (881,956) (62,590) (884,963)
1,095,535 1,100,000 349,775 1,322,568 917,441 1,090,000 1,739,650
750,000 - - - - -
(23,394) (19,026) 44,848 (60,488) (3,091) (34,118) 83,515
$(1,047,875) $ 1,415,605 $(3,101,479) $(2,289,685) $ (939,816) $ (464,193) $ 3,253,089
4.65% 4.67% 7.12% 8.20% 7.81%
7.74% 7.60%
77
City of Paris, Texas
Property Tax Levies and Collections (1)
Last Ten Fiscal Years
Unaudited
Percent
Collection of Current
of Current Levy
Year's Collected Delinquent
Fiscal Total Taxes During During Tax Total
Roll Year Tax Levy Fiscal Year Fiscal Year Collections Collections
1997 1997-98 $4,724,497 $ 4,548,919 96.28% $ 644,287 $ 5,193,206
1998 1998-99 4,948,368 (2) 4,687,960 94.74 170,442 4,858,402
1999 1999-00 5,332,833 5,159,009 96.74 95,404 5,254,413
2000 2000-01 6,132,621 5,854,458 95.46 100,023 5,954,481
2001 2001-02 6,216,227 6,099,899 98.13 110,277 6,210,176
2002 2002-03 7,303,340 7,003,492 95.89 95,148 7,098,640
2003 2003-04 7,470,691 7,180,706 96.12 97,476 7,268,182
2004 2004-OS 7,762,498 7,422,657 95.62 98,005 7,520,665
2005 2005-06 7,670,001 7,312,326 95.34 58,944 7,371,270
2006 2006-07 7,935,867 7,683,568 96.82 - 7,683,568
Source:
City of Paris
Lamar County Appraisal District
Note:
(1) Taxes stated are for General Fund and Debt Service Funds.
(2) Includes $440,386 for annexed property not certified on original roll.
78
Table 5
Ratio Ratio of
of Total Delinquent
Collections Outstanding Taxes
To Total Delinquent To Total
Tax Levy Taxes Tax Levy
109.92% $ 34,978 0.74%
98.18 35,109 0.71
98.53 31,992 0.60
97.10 37,641 0.61
99.90 39,236 0.63
97.20 54,305 0.74
97.29 74,329 0.99
96.88 92,123 1.19
96.11 108,713 1.42
96.82 144,333 1.82
79
d
a . F ~~ ~I~ ~~ ~~y,. ~ ~F~~ p~ 3 ~~I~s~
City of Paris, Texas
Property Tax Rates -All Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited
Fiscal City of Lamar
Year Paris County
1997-98 $ 0.55342 $ 0.3593
1998-99 0.55342 0.3593
1999-00 0.58598 0.3593
2000-01 0.61000 0.3536
2001-02 0.61000 0.3706
2002-03 0.69500 0.3817
2003-04 0.69500 0.3890
2004-OS 0.69225 0.4113
2005-06 0.69225 0.4354
2006-07 0.59225 0.4429
Source:
Lamar County Appraisal District
Table 6
North Paris
Paris Chisum Lamar Junior
ISD ISD ISD College
$ 1.5140 $ 1.3400 $ 1.4160 $ 0.1645
1.5140 1.3400 1.4310 0.1701
1.5140 1.3200 1.3328 0.1664
1.5340 1.2700 1.4555 0.1637
1.5800 1.2750 1.5555 0.1758
1.5900 1.6550 1.6455 0.1804
1.6030 1.6550 1.6455 0.1932
1.5920 1.6480 1.5890 0.1922
1.5820 1.6680 1.5453 0.1922
1.4520 1.5340 1.4200 0.1922
80
City of Paris, Texas
Assessed and Estimated Actual Value of Property
Last Ten Fiscal Years
Unaudited
Real Property Personal Property
Estimated Estimated
Assessed Actual Assessed Actual
Roll Year Value Value Value Value
1997 1997-98 $ 552,306,260 $ 725,849,799 $ 301,415,790 $ 379,120,536
1998 1998-99 498,685,880 805,740,196 315,906,118 393,635,983
1999 1999-00 545,290,533 896,167,518 364,793,148 446,286,953
2000 2000-01 576,146,428 1,102,603,652 429,187,515 508,071,682
2001 2001-02 583,199,505 1,287,925,857 435,837,160 502,434,580
2002 2002-03 608,127,686 1,242,258,670 442,746,610 512,931,510
2003 2003-04 621,789,647 1,231,490,850 452,957,240 525,642,730
2004 2004-OS 660,183,973 1,209,772,832 461,154,820 528,460,080
2005 2005-06 675,842,648 1,236,845,116 432,136,840 501,641,670
2006 2006-07 913,539,354 1,267,999,388 426,412,920 503,646,600
Sources:
City of Paris
Lamar County Appraisal District
81
Table 7
Exemptions
$ 251,248,285
384,784,181
432,370,790
605,341,391
771,323,772
704,315,884
682,386,693
616, 894,119
630,507,298
431,693,714
Total
Assessed
Value
$ 853,722,050
814,591,998
910,083,681
1,005,333,943
1,019,036,665
1,050,874,296
1,074,746,887
1,121,338,793
1,107,979,488
1,339,952,274
Estimated
Actual
Value
$1,104,970,335
1,199,376,179
1,342,454,471
1,610,675,334
1,790,360,437
1,755,190,180
1,757,133,580
1,738,232,912
1,738,486,786
1,771,645,988
82
City of Paris, Texas
Principal Property Taxpayers
September 30, 2007 and 1998
Unaudited
2007
Percentage
Taxable of Total
Assessed Taxable
Taxpayer Type of Business Value Rank Assessed Value
Lamar Power Partners Electrict Utility $ 249,843,560 1 17.61%
Kimberly Clark Corp. Disposable Diaper Mfg. 120,999,590 2 8.53
Campbell Soup Food Manufacturer 64,322,680 3 4.53
Essent PRMC LP Hospital 45,020,610 4 3.17
Paris Generation LP Electric Utility 30,481,070 5 2.15
TXtl Delivery Electric Utility 22,062,180 6 1.55
Si7gan Can Co. Can Manufacturer 18,278,800 7 1.29
Sara Lee Bakery Food Manufacturer 12,778,110 8 .90
Turner Industries Pipe Manufacturer 10,768,235 9 .76
Campbell Soup Supply LLC Food Manufacturer 9,302,780 10 .66
Walmart Stores, Inc. Discount Store - - -
S.W. Bell Telephone Utility - - -
Flex-O-Cite Reflector Products - - -
Precision Printing Product Packaging - - -
Totals
$ 583,857,615 41.15%
Source:
Lamar County Appraisal District
83
Table 8
1998
Percentage
Taxable of Total
Assessed Taxable
Value Rank Assessed Value
$ - -
73,566,169 1 8.45%
12,561,761 5 1.44
67,076,500 2 7.71
11,352,460 7 1.30
14,389,364 4 1.65
11,623,623 6 1.34
17,144,657 3 1.97
9,903,778 8 1.14
9,543,080 9 1.10
9,112,979 10 1.05
$ 236,274,371 27.15%
84
,~a,~.... ~ ~I~ ~ ~~ ,~~w ~ ~F~~ p~ ~ z ~I~s~
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
Ratio
of Net Net
General General
Bonded Bonded
Taxable Gross Less Debt Debt To Debt
Fiscal Estimated Assessed General Service Net General Assessed Per
Year Population Value Bonded Debt Funds Bonded Debt Value Capita
1997-98 26,474 $ 853,722,050 $ 4,485,000 $ 263,080 $ 4,221,920 0.49 $159.47
1998-99 26,738 814,591,998 4,300,000 293,934 4,006,066 0.49 149.83
1999-00 26,978 910,083,681 10,105,000 319,913 9,785,087 1.08 362.71
2000-01 26,017 1,005,333,943' 9,815,000 616,704 9,198,296 0.92 353.55
2001-02 26,136 1,019,036,665 15,485,000 624,713 14,860,287 1.46 568.58
2002-03 26,255 1,050,874,296 19,240,000 911,685 18,328,315 1.74 698.09
2003-04 26,374 1,074,746,887 18,235,000 1,087,396 17,147,604 1.60 650.17
2004-OS 26,493 1,121,338,793 13,776,800 725,394 13,051,406 1.16 492.64
2005-06 26,612 1,107,979,488 13,054,000 751,574 12,302,426 1.11 462.29
2006-07 26,732 1,339,952,274 12,296,600 736,869 11,559,731 .86 432.43
Source:
City of Paris
85
City of Paris, Texas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited
Fiscal
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source:
City of Paris
Governmental Activities
General
Obligation Capital
$ 4,485,000
4,300,000
10,105,000
9,815,000
15,485,000
19,240,000
18,235,000
13,776,800
13,054,000
12,296,600
Leases
$350,127
241,907
228,537
708,454
762,691
609,833
476,429
238,734
103,798
539,832
Other
$ 90,904
85,772
80,383
74,725
68,784
62,546
55,996
49,119
41,897
34,315
Business-Twe Activities
Water and Capital
Sewer Bonds Leases Other
$31,990,000 $ 8,532 $ 823,900
30,675,000 43,180 799,919
38,775,000 85,703 775,187
36,630,000 53,645 749,679
35,605,000 35,349 723,370
29,565,000 21,329 696,236
27,620,000 6,459 668,251
29,053,200 - 639,388
26,451,000 - 609,619
23,733,400 101,665 578,917
86
Table 10
Total
Primary Per
Government Capita
$ 37,748,463 $ 1,478
36,145,778 1,409
50,049,810 1,933
48,031,503 1,846
52,680,194 2,016
50,194,944 1,912
47,062,135 1,784
43,757,241 1,652
40,260,314 1,513
37,284,729 1,395
87
City of Paris, Texas Table 11
Direct and Overlapping
Governmental Activities Debt
September 30, 2007
Unaudited
General Percent Amount
Obligation Applicable Applicable
Bonded Debt to to
Taxing Jurisdiction Outstanding Government Government
City of Paris $ 12,296,600 100% $ 12,296,600
Lamar County 4,037,523 62.75 2,533,545
Paris Independent School District 41,714,999 49.30 20,565,494
Chisum Independent School District 6,085,000 47.75 2,905,587
North Lamar Independent School District 5,940,000 58.23 3,464,802
Paris Junior College - 100 -
Total Direct and Overlapping Funded Debt
$ 70,074,122
$ 41,766,028
Per Capita Direct and Overlapping Funded Debt
Per Capita Direct Debt -See note
Sources:
Texas Municipal Reports
Lamar County Appraisal District
Lamar County
Paris Independent School District
Chisum Independent School District
North Lamar Independent District
Paris. Junior College
Note: $2,818,400 debt included in Refunding bonds will be be retired by the Water and Sewer Fund
and are not included in the above calculation of Per Capita Direct Debt.
$ 1,562.40
$ 460.00
88
City of Paris, Texas Table 12
Legal Debt Margin Information
September 30, 2007
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 $.59225 per $100
valuation for the fiscal year ended September 30, 2007.
Source:
City of Paris
89
City of Paris, Texas Table 13
Revenue Pledged Coverage -Water and Sewer Revenue Bonds
Last Ten Fisical Years
Unaudited
Net Revenue Average Remaining
Available Debt Service Requirements
Fiscal Gross Operating For Debt Percent
Year Revenues* Expenses** Service Principal Interest Total*** Coverage
1997-98 $ 9,671,524 $ 5,257,572 $ 4,413,952 $ 1,777,222 $ 812,200 $ 2,589,422 1.70%
1998-99 9,833,441 5,163,027 4,670,414 1,804,411 766,440 2,570,851 1.82
1999-00 11,127,992 5,472,876 5,655,116 1,938,750 939,660 2,878,410 1.96
2000-01 11,342,029 6,263,668 5,078,361 1,927,895 821,680 2,749,575 1.85
2001-02 10,853,869 6,175,627 4,678,242 1,978,056 767,877 2,745,933 1.70
2002-03 10,656,427 5,924,832 4,731,595 1,478,250 529,768 2,008,018 2.36
2003-04 11,715,098 5,791,260 5,923,838 1,726,250 572,654 2,298,904 2.58
2004-OS 12,833,693 5,923,360 6,910,333 1,936,880 561,473 2,498,353 2.77
2005-06 13,197,091 6,665,832 6,531,259 1,889,357 504,932 2,394,289 2.73
2006-07 12,727,118 6,613,931 6,113,187 1,825,646 448,869 2,274,515 2.69
Notes:
(1)* Gross Revenues =Operating and Non-Operating Revenue of the Water and Sewer Fund
(2)** Operating Expenses excluding depreciation
(3)*** Agent fees not included
Sources:
Southwest Securities Official Statement
Rauscher Pierce Refsnes Official Statement
City of Paris CAFR
90
City of Paris Table 14
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Calendar
Year County
Estimated
Population
1997 47,193
1998 47,602
1999 48,013
2000 48,499
2001 48,075
2002 49,096
2003 49,480
2004 49,598
2005 49,644
2006 49,863
(1) Information not available.
County
County Per Capita County Percent
Personal Personal Median School Unemployment
Income Income Age Enrollments (2) Rate
$ 936,777,000 $ 19,850 (1) 10,937 9.1%
978,120,000 20,548 37.5 10,602 6.2
1,043,316,000 21,730 38.2 11,956 5.3
1,079,738,000 22,263 36.9 11,986 5.9
1,072,093,000 22,300 37.9 12,794 6.7
1,087,968,000 22,160 36.9 12,078 8.1
1,117,816,000 22,591 36.9 12,203 6.5
1,170,186,000 23,593 37.5 12,272 7.0
1,240,000,000 24,993 37.5 12,201 6.1
(1) (1) 37.5 12,139 5.5
(2) Includes Paris Independent School District, North Lamar Independent School District,
Chisum Independent School District, and Paris Junior College.
Sources:
City of Paris
Paris Independent School District
North Lamar Independent School District
Chisum Independent School District
Paris Junior College
Chamber of Commerce
Bureau of Economic Analysis
91
~,.~..~ ~a. ~I\, a~Yy ~ F~~ ~~a ~ ~~~I~
City of Paris, Texas Table 15
Principal Employers (Major Employers)
Fiscal Year End 2007 and 1998
Unaudited
1998 **
Percentage Percentage
of Total of Total
City City
a
er
Tax Employees Rank Employment Employees Rank Employment
y
p
Essent - PRMC* 1,000 1 9.80% 1,239 4&6 10.45%
Kimberly Clark Corp. 850 2 8.33 927 2 7.82
Campbell Soup Co. 800 3 7.84 1,235 1 10.42
Sara Lee Bakery* 600 4 5.88 728 3 6.14
TCIM 550 5 5.39 - - -
Tumer International Pipe* 500 6 4.90 540 5 4.56
We-Pack Logistics 300 7 2.94 140 10 1.18
R K Hall Construction 250 8 2.45 - - -
Paris Packaging 176 9 1.72 - - -
Rogers-Wade Mfg. 120 10 1.18 - - -
Paris Industries - - - 230 7 1.94
Precision Printing - - - 189 8 1.59
Rodgers-Wade Mfg. - - - 140 9 1.18
Totals 5,146 50.43% 5,368 45.28%
* Essent-PRMC is the hospital resulting from the merging of St. Joseph Hospital and McCuistion Hospital. The 1998
employment number for Essent is the combined employment of these two employers. Sara Lee was formerly Earth
Grains and Turner Pipe was formerly Babcock and Wilcox.
** Estimate
Source: Chamber of Commerce
92
City of Paris, Texas
Operating Indicators by Function
Last Ten Fiscal Years
Unaudited
GOVERNMENT:
Date of Incorporation - 1836
Current Charter -Adopted November 2, 1948
Fiscal Year
1998 1999 2000 2001
FACILITIES:
Airports:
Number of Airports 1 1 1 1
Fire Protection:
Number of Stations 3 3 3 4
Number of Fire Hydrants 979 981 1,018 971
Number of Employees (certified) 54 54 57 57
Employees Per 1,000 Population 2.04 2.02 2.11 2.19
Library:
Number of Libraries 1 1 1 1
Number of Volumes 93,196 102,360 111,232 129,083
Circularization of Materials 294,379 315,745 321,549 332,750
Circulation Per Capita 11.12 11.80 11.90 12.78
Library Cards in Force 17,225 18,417 22,239 24,377
Police Protection:
Number of Stations 1 1 1 1
Number of Employees (certified) 57 57 59 61
Employees Per 1,000 Population 2.16 2.13 2.18 2.34
Parks and Recreation:
Parks' Acres Developed 87 87 87 87
Parks' Acres Undeveloped 96 96 131 221
City Parks 21 21 22 24
Streets:
Paved Lane -Miles 196 197 197 199
Unpaved Streets -Miles 9 11 11 10
WATER AND SEWER UTILITY:
Average Daily Water Comsumption -Gallons 13,560,000 12,561,000 12,443,571 12,221,421
Maximum Day's Water Consumption -Gallons 23,447,000 21,519;000 22,080,000 21,129,651
Annual Water Consumption -Gallons 7,949,505,000 4,591,909,000 4,554,347,000 4,460,818,744
Water Mains -Miles 168 185 185 190
Water Connections -Metered 10,141 10,137 10,003 10,137
Sewer Mains -Miles 200 189 189 205
Area Miles 37.34 42.89 42.89 42.89
Number of Full-Time Employees 335 337 359 359
Source: City of Paris
93
Table 16
2002 2003 Fiscal Year
2004 2005
2006 2007
1 1
1
4
4 1
1
1
1,039
56
1,042 4
1,045 4
4
4
2.14 56
2
13 54 1,082
48 1'048 1,093
. 2.05
1
81
48
1 . 1.80 1.80
121,732 1
123,626 1 1
1
347,290
13
29
337,947 106,687
308,527 102,801
2
106,955 1
109
789
.
26,644 12 87
29
247
11.70 10,956
7.96 195 944 ,
187,547
, 26,406
15
551 7.36 7.02
1 , 21,164
23
285
62
2.37 1
2
47 1
62
62 ,
1
. 2.35 2
34 62 63
87 . 2.33
221 87
221 87
221
87
24
24
24 221
221 87
221
199 199 24 24 24
10
10 199
10 199
199
10
10 171
3
11,405,367
2 0, 2 71, 8 51 10,905, 049
17
10, 83 8, 754
10
619
2 68
4,162,959,000 3, , 0 75, 000
980 343 000
16,257,000 ,
,
18,603,000 12, 43 5, 000
19
10,335,000
190 ,557,000
> 2,966,984,000 3,876
033
000 16,842,000
10,183 208
10
294
208 ,
,
4,
208 538,690,000 3, 774,782,000
205 ,
195 9,941 9,865 208
803
9 183
195
195 , 9,979
42.89
42
89 195
189
. 42.89 42
89
369
369 . 42'89 39.18
350
325
318
318
94
City of Paris, Texas
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Function:
Public Safety
Police
Stations
Patrol Units
Fire Stations
Sanitation
Collection Trucks
Highways and Streets
Streets (Miles)
Streetlights
Traffic Signals*
Culture and Recreation
Parks Acreage
S~'lmming Pools -Municipal
Tennis Courts
Community Centers
Water
Water Mains (miles)
Fu•e Hydrants
Maximum Daily Capacity
(thousands of gallons)
Sewer
Sanitary Sewers (miles)
Maximum Daily Treatment Capacity
(thousands of gallons)
1998 Fiscal Year
1999 2000
2001
1
11
11
1
1
3 11 11
3 3 4
205
N/A
N
A
208
209
_ / N/A N/A
183
18
218
1 1 308
- _ 1 1
1 1
1 _
1
168
979
185
185
190
36,000 981
36
000 1,018 971
, 36,000
36,000
200 189
7,250 189 205
7,250 7,250
7,250
Source: Various City Departrnents
* City has none. All inside City limits belong to the State of Texas.
95
Table 17
Fiscal Year
2002 2003 2004 2005 2006 2007
1 1 1 1 1 1
11 11 11 11 11 11
4 4 4 4 4 4
_ _ _ _ 13 8
209 209 209 209 209 174
N/A N/A N/A 2,160 2,198 2,212
308 308 308 308 308 308
1 1 1 1 1 1
_ _ _ _ 14 14
1 1 1 1 1 1
190 208 208 208 208 183
1,039 1,042 1,045 1,082 1,082 1,093
36,000 36,000 36,000 36,000 36,000 36,000
205 195 195 195 195 189
7,250 7,250 7,250 7,250 7,250 7,250
96
City of Paris, Texas Table 18
Building Permits at Market Value
Last Ten Fiscal Years
Unaudited
Commercial Residential Total
Property Value Commercial Construction Residential Construction Construction
Fiscal Year Units Value Units Value Value
1998 28 $ 14,713,300 68 $ 4,415,900 $ 19,129,200
1999 53 15,683,840 58 6,732,750 22,416,590
2000 36 7,121,494 75 6,814,061 13,935,555
2001 35 13,307,866 85 9,074,912 22,382,778
2002 37 13,476,520 90 8,862,903 22,339,423
2003 38 5,092,241 65 7,476,004 12,568,245
2004 26 6,571,777 67 4,420,392 10,992,169
2005 42 15,372,158 47 4,870,500 20,242,658
2006 23 6,682,498 46 3,643,500 10,325,998
2007 22 24,575,805 31 2,943,125 27,518,930
Source:
City of Paris
97
City of Paris, Texas
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
1998 1999 2000 2001
Function:
Manager 4.0 1.5 2.0 2.0
Attorney 3.0 4.0 5.0 5.0
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 80.0 84.0 84.0
Fire 56.0 56.0 58.0 59.0
Community Development - - - -
Engineering 11.0 11.0 11.0 11.0
Public Works - 3.0 3.0 3.0 3.0
Parks & ROW 8.5 8.5 8.5 15.5
Sanitation 15.5 15.5 20.5 17.5
Streets 27.0 29.0 29.0 22.0
Traffic & Lighting 3.5 3.5 3.5 2.5
Garage 5.0 5.0 5.0 7.0
EMS 20.0 20.0 20.0 25.0
Airport 2.0 2.0 2.0 2.0
Library 14.0 14.0 14.0 14.0
Warehouse 2.5 2.5 2.5 2.5
Water Billing 11.0 10.0 11.0 11.0
Water Treatment Plant 17.5 17.5 17.5 17.5
Water Distribution 12.5 12.5 12.5 12.5
Waste Water Collection 7.5 7.5 7.5 7.5
Waste Water Treatment Plant 26.0 26.0 26.5 26.5
Lift Stations 4.0 4.0 4.0 4.0
Totals 347.5 344.0 358.0 362.0
* Includes related grant employees.
Seasonal employees not included.
Source:
City of Paris
98
Table 19
Fiscal Year
2002 2003 2004 2005
3.0 3.0 3.0 2.0
5.0 5.0 5.0 5.0
4.0 4.0 4.0 4.0
2.0 2.0 2.0 2.0
5.0 5.0 5.5 5.5
80.0 88.0 88.0 86.0
58.0 57.0 58.0 58.0
6.5 6.5 6.5 8.5
7.5 6.5 7.5 7.5
3.0 4.0 ~ 4.0 3.0
16.5 15.5 16.5 12.0
17.5 19.5 17.5 17.5
22.0 22.0 22.0 21.0
2.5 2.5 2.5 2.5
6.0 6.0 6.0 4.0
26.0 26.0 26.0 26.0
2.0 2.0 2.0 1.0
14.0 15.0 14.0 10.5
2.5 2.5 2.5 2.0
11.0 10.0 10.0 9.0
17.5 17.5 17.5 16.5
12.5 12.5 12.5 12.5
7.5 7.5 7.5 7.5
26.5 25.5 24.5 25.5
4.0 4.0 3.0 3.0
362.0 369.0 367.5 352.0
2006 2007
1.0 1.0
3.0 3.0
3.0 3.0
2.0 2.0
5.5 5.5
82.0 84.0
49.0 52.0
7.5 6.5
6.5 6.5
2.5 2.5
9.0 9.0
16.5 12.5
15.0 15.0
2.0 2.0
4.0 6.0
26.0 26.0
1.0 1.0
10.5 10.5
2.0 1.0
7.0 7.0
15.5 15.5
11.5 11.5
7.5 7.5
23.5 21.5
3.0 3.0
316.0 315.0
99
~.+ 3
CONTINUING DISCLOSURE INFORMATION
(Unaudited)
„~...~. .. ~: ~Ia ~~ ~~ ~. ~F~~ A~R~I~S
a°~~ ~\m..wf wa~.a..ro •`Kaw\"$ r ..w. ~~ww.uaa\~~ ~ v ~w~,~•earaiaM~w~~@~
CONTINUING DISCLOSURE INFORMATION FOR
THE CITY OF PARIS, TEXAS
ASSESSED VALUATION
TABLE CD-1
2007 Actual Market Value of Taxable Property (100% of Actual)
Less Exemptions:
Local, Optional Over-65 and/or Disabled Homestead Exemptions
Disabled and Deceased Veterans' Exemptions
Productivity Loss
Freeport
Pollution Control/Solar
Exempt
Abatement Loss
Cap Loss (10%)
$ 46,348,877
2,798,730
16,980,300
75,899,290
22,756,245
240,291,829
30,360,320
430,798
1,854,972,585
2007 Net Taxable Assessed Valuation
435,866,389
$ 1,419,106,196
GENERAL OBLIGATION BONDED DEBT TABLE CD-2
General Obligation Debt Principal Outstanding: (As of September 30, 2007)
Tax and Revenue Refunding Bonds, Series 1998 $ 3,240,000
Combination Tax and Revenue Certificates of Obligation, Series 2000 4,690,000
Tax and Revenue Refunding Bonds, Series 2001 2,800,000
Combination Tax and Revenue Certificates of Obligation, Series 2002 5,005,000
General Obligation Refunding Bonds, Series 2003 5,420,000
Total Gross General Obligation Debt Principal Outstanding 21,155,000
Less Self-Supporting General Obligation Debt Principal:
Tax and Revenue Refunding Bonds, Series 1998 (100%) 3,240,000
Tax and Revenue Refunding Bonds, Series 2001 (100%) 2,800,000
General Obligation Refunding Bonds, Series 2003 (retired by water/sewer revenues) 2,818,400
Total Self-Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds 8,858,400
Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds $ 12,296,600
General Obligation Interest and Sinking Fund. Balance as of September 30, 2007 $ 730,869
Ratio of Net General Obligation Debt Principal to 2007 Net Assessed Valuation 0.87%
2007 Net Assessed Valuation $ 1,419,106,196
Population: 1980 - 25,498; 1990 - 24,699; 2000 - 25,898 Current (Estimate) 26,732
Per Capita 2007 Net Assessed Valuation $ 53,086
Per Capita Gross General Obligation Debt Principal $ 791
Per Capita Net General Obligation Debt Principal $ 460
100
PRINCIPAL TAXPAYERS - 2006-2007 TABLE CD-3
of Total 2007
2007 Net Taxable Assessed
Name Tvpe of Property Assessed Valuation Valuation
Lamar Power Partners Utility $ 249,843,560 17.61%
Kimberly-Clark Disposable Diapers 120,999,590 8.53
Campbell Soup, Inc. Food Manufacturing 64,322,680 4.53
Essent Hospital 45,020,610 3.17
Paris Generation (Direct Energy) Utility 30,481,070 2.15
TXU Electric Delivery Co. Electric Utility 22,062,180 1.55
Silgan Can Co. Can Manufacturing 18,278,800 1.29
Sara Lee Bakery Food Manufacturing 12,778,1(0 0.90
Tumer Industries Pipe Manufacturing 10,768,235 0.76
Campbell Soup Supply, LLC Food Manufacturing 9,302,780 0.66
Total $ 583,857,615 41.15%
Based on a 2007 Net Taxable Assessed Valuation of $ 1,419,106,196
PROPERTY TAX RATES AND COLLECTIONS TABLE CD-4
Tax Net Tazable Tax Tax % Collections Year
Year Assessed Valuation Rate Lery Current Total Ended
1997-98 853,722,050 0.55342 $ 4,724,497 96.28% 109.88% 9-30-1998
1998-99 814,591,998 0.55342 4,948,368 94.74 98.16 9-30-1999
1999-00 910,083,681 0.58598 5,332,833 96.74 98.51 9-30-2000
2000-O1 1,005,333,943 0.61000 6,132,621 95.46 97.06 9-30-2001
2001-02 1,019,036,665 0.61000 6,216,227 98.13 99.86 9-30-2002
2002-03 1,050,874,296 0.69500 7,303,340 95.89 97.16 9-30-2003
2003-04 1,074,746,887 0.69500 7,470,691 96.12 97.14 9-30-2004
2004-OS 1,121,338,793 0.69225 7,762,498 95.62 96.39 9-30-2005
2005-06 1,107,979,488 0.69225 7,670,001 95.34 95.34 9-30-2006
2006-07 1,339,952,274 0.59225 7,935,867 96.82 96.82 9/30/2007
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
TAX RATE DISTRIBUTION TABLE CD-5
2007 2006 2005 2004 2003 2002 2001 2000
General Fund $ 0.46526 $ 0.49294 $ 0.56650 $ 0.57977 $ 0.57289 $ 0.56104 $ 0.51962 $ 0.51738
I & S Fund 0.09474 0.09931 0.12575 0.11248 0.12211 0.13396 0.09038 0.09262
TOTAL $ 0.56000 $ 0.59225 $ 0.69225 $ 0.69225 $ 0.69500 $ 0.69500 $ 0.61000 $ 0.61000
MUNICIPAL SALES TAX TABLE CD-6
The Issuer has adopted the provision of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to a property tax relief and/or an economic and
industrial development tax. The voters of the City approved the imposition of a 1/4 cent additional sales tax to be used for property tax reduction and a 1/4 cent sales
tax for economic development purposes. Levy of the additional sales taxes began on October 1, 1993, and the City received its first payment in December 1993.
Collections on calendar year basis are as follows:
($) Equivalent of
Calendar Total 1.00% 0.25% 0.25% % of Ad Valorem Ad Valorem
Year Collected City Prop Tax Red EDC Tax Levy (b) Tax Rate (b) FY Levy
1997 $ 4,893,683 $ 3,262,455 $ 815,614 $ 815,614 105.28% 54.50 96-97 $ 3,873,454
1998 4,971,047 3,314,031 828,508 828,508 87.68 48.52 97-98 4,724,497
1999 5,518,744 3,679,162 919,791 919,791 92.94 51.43 98-99 4,948,368
2000 5,991,043 3,994,029 998,507 998,507 93.62 54.86 99-00 5,332,833
2001 5,340,121 3,560,081 890,020 890,020 72.56 44.26 00-01 6,132,621
2002 5,414,993 3,609,995 902,499 902,499 72.59 43.58 01-02 6,216,227
2003 5,562,491 3,708,327 927,082 927,082 63.47 44.31 02-03 7,303,340
2004 5,782,791 3,855,193 963,799 963,799 64.51 44.83 03-04 7,470,691
2005 6,080,297 4,053,531 1,013,383 1,013,383 65.27 45.18 04-OS 7,762,498
2006 6,601,772 4,40],182 1,100,295 1,100,295 71.73 51.52 OS-06 7,670,001
2007 6,628,611 4,419,075 1,104,768 1,104,768 69.61 49.01 06-07 7,935,867
~b~ Based on l % City portion plus .15% Property Tax Reduction portion
101
REVENUE BONDS DEBT DATA - TABLE CD-7
(As of September 30, 1007)
Revenue Bonds Debt Principal Outstanding:
Waterworks and Sewer System Revenue Bonds, Series 1997
Waterworks and Sewer System Revenue Refunding Bonds, Series 1998
Waterworks and Sewer System Revenue Bonds, Series 2000
General Obligation Refunding Bonds 2003 (retired by utility revenues)
Total Gross Revenue Debt
Note: Does not include general obligation self-supporting debt
REVENUE BONDS DEBT SERVICE REQUIREMENTS
$ 3,090,000
3,860,000
7,925,000
2,818,400
$ 17,693,400
TABLE CD-8
Currently
Outstanding Total
Fiscal Year Revenue The Series 2000 Bonds Debt
Ending 9/30 Debt Service Principal Interest Total Service
2008 $ 1,291,355 $ 425,000 $ 460,809 $ 885,809 $ 2,177,164
2009 1,287,955 455,000 431,590 886,590 2,174,545
2010 1,294,320 480,000 400,309 880,309 2,174,629
2011 1,296,718 505,000 367,309 872,309 2,169,027
2012 1,300,038 530,000 340,165 870,165 2,170,203
2013 432,000 560,000 311,015 871,015 1,303,015
2014 434,000 600,000 280,215 880,215 1,314,215
2015 436,900 630,000 246,465 876,465 1,313,365
2016 438,900 665,000 210,240 875,240 1,314,140
2017 - 705,000 172,003 877,003 877,003
2018 - 745,000 131,113 876,113 876,113
2019 - 790,000 87,344 877,344 877,344
2020 - 835,000 44,881 879,881 879,881
$ 8,212,186 $ 7,925,000 $ 3,483,458 $ 11,408,458 $ 19,620,644
The City has historically paid debt service requirements on its general obligation system debt from Surplus Revenues of the system t
continue to do so in the future. However, in the event the Surpl us Revenues aze not on deposit or budgeted for deposit in the
102
COVERAGE FACTOR (Revenue Bonds Only) ~ TABLE CD-9
Average Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-07
Estimated average annual revenue debt service following the issuance of the bonds (2008- 2020)
Coverage Factor
Maximum Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-07
Estimated maximum annual revenue debt service following the issuance of the bonds (2008)
Coverage Factor
$ 5,676,974
$ 1,509,280
3.76 x
$ 5,676,974
$ 2, 177, 164
2.61 x
COVERAGE FACTOR (Revenue Bonds Plus System General Obligation Debt) TABLE CD-10
Average Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-07
Estimated average annual system debt service including system GO bonds (2008 - 2020)
Coverage Factor
Maximum Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-07
Estimated maximum annual system debt service including system GO bonds (GO-2012 Rev-2007)
Coverage Factor
$ 5,676,974
$ 2,274,420
2.50 x
$ 5,676,974
$ 3,537,508
1.60 x
103
REVENUE BONDS PRINCIPAL REPAYMENT SCHEDULE
TABLE CD-I1
Principal Payment Schedule
Fiscal Year Bonds Series 2000
Ending 9/30 Outstanding Revenue Bonds Total
2008 $ 975,000 $ 425,000 $ 1,400,000
2009 1,020,000 455,000 1,475,000
2010 1,075,000 480,000 1,555,000
2011 1,130,000 505,000 1,635,000
2012 1, 190,000 530,000 1,720,000
2013 360,000 560,000 920,000
2014 380,000 600,000 980,000
2015 400,000 630,000 1,030,000
2016 420,000 665,000 1,085,000
2017 - 705,000 705,000
2018 - 745,000 745,000
2019 - 790,000 790,000
2020 - 835,000 835,000
$ 6,950,000 $ 7,925,000 $ 14,875,000
ENTERPRISE NET ASSETS
TABLE CD-12
(As of September 30, 2007)
Invested in Capital Assets, Net of Related Debt
Restricted for Debt Service
Restricted for Construction
Unrestricted
Total Enterprise Fund Balances
$ 23,735,238
1,702,783
1,555,686
6,530,918
$ 33,524,625
UTILITY PLANT IN SERVICE TABLE CD-13
(As ofSepternber 30, 2007)
Water & Sewer
Land $ 282,672
Plant, Pumps and Motors 31,740,002
Distribution and Collection Systems 56,860,380
Furniture and Equipment 244,222
Automobiles and Other Vehicles 1,995,191
Construction in Progress 231,294
Total 91,353,761
Less: Accumulated Depreciation 45,580,026
Net Utility Plant in Service $ 45,773.735
104
REVENUE BONDS AUTHORIZED BUT UNISSUED TABLE CD-14
Date of Amount Issued
Authorization Puraose Authorized To Date Unissued
8-14-56 WW & SS $ 2,300,000 $ 2,100,000 $ 200,000
9-21-65 Sewer System 200,000 ]00,000 100,000
Totals $ 2,500,000 $ 2,200,000 $ 300,000
WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT
Fiscal Year Ended September 30
2007 2006 2005 2004 2003
$ 7,256,997 $ 7,539,449 $ 7,069,193 $ 6,158,999 $ 6,098,221
4,711,135 4,886,837 4,670,660 4,293,315 3,929,5]4
122,719 133,474 161,33 0 137,014 155,960
200,054 250,826 189,968 269,690 155,763
12,290,905 12,810,586 12,091,15 I 10,859,018 10,339,458
6,613,931 6,665,832 5,923,360 5,791,260 5,983,547
$ 5,676,974 $ 6,144,754 $ 6,167,791 $ 5,067,758 $ 4,355,9] 1
Operating Revenues ~'~
Water Sales and Taps
Sewer Charges and Taps
Industrial Charges
Other
Total Revenues
Expenses
Net Revenue Available
for Debt Service
Annual Revenue
Bond Requirements
Coverage of Annual Revenue Bond
Requirements
Annual Requirements on all Bonds
Paid from System Revenues
Coverage of Annual Requirements
on al] Bonds Paid from
from System Revenues
Customer Count:
Water
Sewer
~ Does not include Sanitation Billing Fees of
$ 2,177,164 $ 2,182,054 $ 2,182,496 $ 2,032,813 $ 2,022,356
2.61 x 2.82 x 2.83 x 2.49 x 2.15 x
TABLE CD-15
$ 3,529,410 $ 3,575,423 $ 3,830,594 $ 3,834,728 $ 3,811,647
1.61 x
9,979
9,547
$ 68,611
1.72 x 1.61 x
9,803 9,865
9,363 9,444
$ 69,006 $ 69,700
1.32 x 1.14 x
9,941 10,153
9,648 9,688
$ 70,844 $ 73,017
105
WATER RATES TABLE CD-16
(Rates Effective September 1, 1007)
Residential Class
Base Cost and Additional Service in Excess of Base
Meter Size Cubic Foot Charge (For Each Additional
Inches (Per Cubic Foot) 100 Cubic Feet)
5/8" - 3/4" $8.64 for first 200 Cubic Feet $2.92 / 100 Cubic Feet
1" and Larger $42.12 for first 1,000 Cubic Feet $2.92 / 100 Cubic Feet
Commercial /Industrial Class
Base Cost and Additional Service in Excess of Base
Meter Size Cubic Foot Charge (For Each Additional
Inches (Per Cubic Foot) 100 Cubic Feet)
5/8" - 3/4" $10.53 for first 200 Cubic Feet $2.92 / 100 Cubic Feet
1" - 2" $42.12 for first 1,000 Cubic Feet $2.39 / 100 Cubic Feet
Larger than 2" $151.20 for first 3,000 Cubic Feet $2.39 / 100 Cubic Feet
Commercial /Industrial Class
(Meters Greater Than Three Inches)
Base Cost and Additional Service in Excess of Base
Meter Size Cubic Foot Charge (For Each Additional
Inches (Per Cubic Foot) 100 Cubic Feet)
4 $2,484.00 for first t 00,000 Cubic Feet $2.39 / 100 Cubic Feet
6 $3,726.00 for first 150,000 Cubic Feet $2.39 / 100 Cubic Feet
8 and Larger $4,968.00 for first 200,000 Cubic Feet $2.39 / 100 Cubic Feet
PRINCIPAL WATER CUSTOMERS - 2006-2007 TABLE CD-17
FY 2007 FY 2007
Average Monthly Average
Name of Customer Product Consumption (Cu Ft.) Monthly Bill
Lamar Power Partners Electric Utility 14,754,361 $ 26,261
Campbell Soup Soups, Juices, Sauces 11,074,633 100,105
Lamar County Water Supply Water Utility 11,033,830 67,297
Paris Generation LP Electric Utility 1,552,901 20,672
Kimberly Clark Diapers 1,448,186 32,496
Sara Lee Food 511,358 13,578
Paris Regional Med. Center Medical Care 482,336 11,655
MJC Water District Water Utility 176,298 4,012
Paris Housing Authority Low Income Housing 127,228 3,704
Turner Industrial Group Pipe Mfg. 124,425 3,527
Paris Junior College Higher Education 123,187 2,909
Totals 41,408,743 $ 286,216
106
SEWER RATES ~ TABLE CD-18
(Rates Effective September 1, 2007)
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" $9.27 for first 200 Cubic Feet $3.75/ 100 Cubic Feet
1"and Larger $43.26 for first 1,000 Cubic Feet $3.75 / 100 Cubic Feet
Commercial Industrial Class
Service in Excess of Base
Meter Size Base Cost (For Each Additional
Inches (Per Cubic Footl 100 Cubic Feetl
5/8" - 3/4" $12.36 for first 200 Cubic Feet $3.91 / 100 Cubic Feet
1" - 2" $43.26 for first 1,000 Cubic Feet $3.91 / 100 Cubic Feet
Larger than 2" $87.52 for first 2,000 Cubic Feet $3.91 / 100 Cubic Feet
PRINCIPAL SEWER CUSTOMERS - 2006-2007 TABLE CD-19
FY 2007 FY 2007
Average Monthly Average
Name of Customer Product Consumption (Cu Ft.) Monthly Bill
Sara Lee Bakery Snack CakesBread 511,358 $ 19,524
Kimberly Clark Disposable Diapers 409,032 15,595
Paris Regional Med. Center Medical Care 397,408 15,631
Paris Housing Authority Housing 155,719 5,997
Turner Industries Pipe Mfg. 121,787 4,293
Paris Junior College Higher Education 107,435 4,129
Bettes Enterprises Car Wash 97,666 3,729
Paris ISD Public Education 84,201 3,416
Sesame Solutions Food 75,019 2,868
Paris Nursing Home Long Term Care 66,508 2,540
Totals 2,026,133 $ 77,722
107