C.A.F.R., FY 2008-09
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
For the Fiscal Year Ended September 30, 2009
Prepared By
Finance Department
W.E. Anderson, Director
i
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS Page
INTRODUCTORY SECTION
Letter of Transmittal I-1
Certificate of Achievement for Excellence in Financial Reporting I-7
City of Paris Organizational Chart I-8
List of Elected and Appointed Officials 1-9
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 State ent of Revenues, Expenditures, and Changes in Fund
Balances of Governments Funds to the Statement of Activities 18 5
Statement of Revenues, E enditures, 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 Stateme ts 26 -
Schedule
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - onmajor Governmental Funds 58 1
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Finds 60 2
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Criminal Justice Division rant Special Revenue Fund 62 3
Community Development Block Grant Special Revenue Fund . 63 4
Special Revenue Fund 64 5
Health Department Fund 65 6
Debt Service Fund 66 7
Capital Projects Fund 67 8
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules b Source 68 9
Schedule by Function and Activity 69 10
Schedule of Changes by F ction and Activity 71 11
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS (Continued) Page Table
STATISTICAL SECTION
Financial Trends
Net Assets by Component 73 1
Changes in Net Assets 75 2
Fund Balances of Governmental Funds 79 3
Changes in Fund Balances o Governmental Funds 81 4
Revenue Capacity
Property Tax Levies and Co ections 83 5
Property Tax Rates - All Direct and Overlapping Governments . 85 6
Assessed and Estimated Actual Value of Property 86 7
Principal Property Taxpayer 88 8
Debt Capacity
Ratio of Net General Obliga ion Bonded Debt to Assessed Value and
Net General Obligation Bo ded Debt Per Capita 90 9
Ratio of Outstanding Debt b Type 91 10
Direct and Overlapping Gov rnmental Activities Debt 93 11
Legal Debt Margin Information 94 12
Revenue Pledged Coverage Water and Sewer Revenue Bond 95 13
Demographic and Economic Information
Demographic and Economic Statistics 96 14
Principal Employers (Major Employers) 97 15
Operating Information
Operating Indicators by Function 98 16
Capital Asset Statistics by Function 100 17
Building Permits at Market Value 102 18
Full-Time Equivalent City G vernment Employees by Function 103 19
CONTINUING DISCLOSURE INFORMATION (Unaudited)
Continuing Disclosure Info ation 105
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2009
TABLE OF CONTENTS (Continued) Page
OVERALL COMPLIANCE, INTERNAL CONTROLS, 112
AND FEDERAL AWARDS S CTION
Federal:
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit f Financial Statements Performed in Accordance with
Government Auditing Stan d rds 113
Summary Schedule of Prior Audit Findings 115
Schedule of Findings and Questioned Costs 116
Corrective Action Plan 117
Report on Compliance with Requirements Applicable to Each Major Program and on
Internal Control Over Comp Hance in Accordance with OMB Circular A-133 118
Schedule of Expenditures of Federal Awards 120
Notes on Accounting Policies for Federal Awards 121
Schedules of Revenues and Expenditures:
Supplemental Food Program for Women, Infants, and Children 122
Edward Byrne Memorial Formula Grant Program 123
INTRODUCTORY SECTION
PAM
u..\\\\\uam ~\March 29, 2010
Mayor Jesse Freelen
and Members of the City Council
City of Paris, Texas
Dear Mayor and Council Me bers:
I am pleased to submit the Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended
September 30, 2009.
The City of Paris is a fmancia reporting entity as defined by the Government Accounting Standards Board codification section
2100. As such, it has a separately elected governing body chosen by its citizens in a general, popular election, is a legally
separate primary government, and is fiscally independent of other state and local governments. The financial reporting entity
includes all the funds of the p imary 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 f ancial 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, 2009, which
follows, was prepared by the Finance Department. The financial statements have been audited by McClanahan and.Hohnes,
LLP, CPAs, whose report is ' cluded herein. This audit satisfies Article III, Section 35 of the City Charter which requires that
an annual audit of all account of the City be made by an independent certified public accountant.
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P.O. BOX 90 7 • 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 fort 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 een prepared in accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (GASB).
This Comprehensive Annual F ancial 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 b the City.
2. The Financial Section includes the independent auditors' report, management's discussion and analysis,
financial state ents and related notes, and supplemental financial data.
3. The Statistica Section includes several tables of unaudited data depicting the financial history of the City, as
well as demo aphic information of other governmental units overlapping the City and other miscellaneous
statistics.
4. The Continu' g 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 info ation on all municipal bond issues sold after July 3, 1995.
The Notes to the Financial S tements are provided in the Financial Section and are considered essential to fair presentation
and adequate disclosure fortis 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) ' 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 TXU Electric's interconnected transmission system. It has a generating capacity of 22,808,000 KW. The supply of
electric power is adequate to eet 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 thre million customers in 12 states. There are 3 transmission lines serving the City with a line
pressure of 300 pounds per sq are 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 3,246.
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 lso located in the County. Other points of interest and activities include the Sam Bell Maxey
House, the A.M. Aikin Archiv s, Red River Valley Exposition, and the Lamar County Historical Society Museum.
Also, the City has 3 18-hole g if 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 founded in 11139 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 oderator 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 b 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 O Hook
Current taxable values for fis al year 2009-2010 reflect a 1.27% increase over the 2008-2009 values. Of this increase 25.47%
was due to new taxable property and the balance due to reappraisal. Building permits for new residential and commercial
construction totaled $53,399, 69 for fiscal year 2008-2009. This activity should be reflected in next year's taxable values.
Sales taxes for 2008-2009 in reased from the prior year by 13.08°/x. Current rebates are 3.07% below the 2008-2009 rebates
through December 2009. 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 p 21.3% compared to 2007-2008 taxes and is reflective of the recent construction of new hotels
in the City.
Franchise fees decreased 1.34% due to lower than expected payments from TXU Energy. This area is a major source of
revenue to the City and is ag essively 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 a as well as supporting already existing businesses.
General Fund receipts equaled 97.05% of budget. Expenses did not exceed total budget appropriations. General Fund
expenditures were only 88.1 % of budget.
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For the 2009-2010 fiscal year, the City Council adopted a tax rate of .52 cents per $100 of value. This is the same rate as the
previous year. This rate allow maintaining all services at their current levels or above and funds the interest and sinking fund
for the certificates of obligatio issued in 2000, 2002, and 2003.
Long-Term Financial Planni g and Relevant Financial Policies
The City is in the process of d veloping and a new long-range financial plan given the substantial refunding of its outstanding
debt for savings that occurred in February 2010. The City gained $1,993,902 in total debt service savings (11.58%) from the
refunding. Previously, the City had not planned on any substantial capital investment in its utility infrastructure until 2013 at
which time three of the utili related debt issued would be paid off. This approach had resulted in the steadily decreasing
outstanding debt shown in the financial statements. The City also plans to formalize key financial policies that are currently
being informally followed. T of the policies expected to be formalized include a rate maintenance policy for the utility fund
and a reserve level guideline for both the general fund and utility fund. The utility rate maintenance policy will help assure the
financial integrity of the enterprise fund along with its related interest and sinking funds. Likewise, adequate reserve levels
provide the City with the abili to deal with extraordinary events and maintain its credit worthiness. This credit worthiness, as
reflected in the current financial statements, allowed the City to obtain very favorable interest rates on the refunding bonds
referenced above.
Major Initiatives
The City of Paris continues t 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 City also continues toe and its effort in law enforcement related areas. Specifically, the City has targeted auto theft,
felony crime, and schools. Programs in this effort include the Auto Theft Task Force, school resource officers, and the Felony
Crimes Unit. One other continuing law enforcement effort was to upgrade equipment through several Justice Assistance
grants.
From a development standpoint the City has taken several steps. Reentry into the State of Texas Main Street Program should
channel additional funds for vitalization of existing structures and businesses. The City continues to work closely with the
Paris Economic Development Corporation to attract new business to Paris and to support existing businesses as well. Working
with the Chamber of Commerce, the City is effectively using the civic center to attract people and business to Paris. City
officials are also closely working with Keep Paris 13eautiful, Inc. to promote and improve the City. The Historic Preservation
Committee is working with local property owners to maintain the historical character of the City.
Other Financial Informatio
The financial statements of e City of Paris, Texas, have been prepared in conformity with generally accepted accounting
principles as applied to gove ental units. The Governmental Accounting Standards Board is the accepted standard-setting
body for establishing gove ental accounting and financial reporting principles. Using the GASB 34 reporting model, the
City's Comprehensive Annu 1 Financial Report provides for a management's discussion and analysis, government-wide
financial statements, major d financial statements, notes to the financial statements, and other required supplementary
information.
The City has a written investment policy that conforms to state statutes, which outlines permissible investments. The City
pools its cash balances for investment purposes from the various funds maintained in its consolidated cash account. Interest
earnings of the pool are allocated to the various funds of the City based upon a fund's equity position in the pool.
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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 ' the Texas Municipal League's risk pool.
Between 30 days and 90 day prior to the beginning of each fiscal year, the City Manager submits to the City Council a
proposed budget for the fiscal year beginning on the following October 1. The operating budget, which represents the
financial plan for the ensuing scal year, includes proposed expenditures and the means of financing them. Public hearings are
conducted at which all interes ed persons' comments concerning the budget for the next fiscal year are heard. The budget is
legally enacted by the City C uncil through passage of an ordinance not later than the 27th day of the last month prior to the
beginning of the fiscal year. Generally, appropriations are legally adopted at the department level. Budgetary controls are
maintained at the major cate ory of expenditure level within each operating division. All anticipated expenditures are
budgeted for control purposes. Capital project funds are appropriated on a project by project basis. Expenditures and/or
expenses are directly monitored by the City Council.
Internal Controls
Internal accounting controls re 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 b derived.
All internal control evaluatio is occur within this framework. The Finance Department's staff believes the City's internal
control structure adequately a sures compliance with laws and regulations and reasonable assurance for safeguarding of assets.
Debt
The following schedule outlin s the outstanding City debt as of 9-30-09:
Moody's
Tax Revenue Final Investors
Issue Supported Supported Maturi Rating Insured
1997 W & S Rev. Bonds $ - $ 2,525,000 06-15-16 A3
1998 Tax & Rev. Refunding Bonds - 2,035,000 12-15-11 A3
1998 W & S Rev. Refunding Bonds - 2,430,000 12-15-11 A3
2000 Tax & Rev. C 0. 4,175,000 - 12-15-19 A3
2000 W & S Rev. Bonds - 7,045,000 06-15-20 A3
2001 Tax & Rev. R funding Bonds - 1,745,000 06-15-12 A3
2002 Tax & Rev. C 0. 4,535,000 - 12-15-21 A3
2003 General Obligation
Refunding Bonds 1,970,400 2,134,600 12-15-14 A3
Total $10,680,400 $17,914,600
The City has no lease/purchase agreements outstanding.
A $120,600 note payable fo 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 prin ipal outstanding is $17,994. Final payment is due August 21, 2011.
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Independent Audit
The City Charter requires an annual audit to be made of the accounts, financial records, and transactions of all administrative
departments of the City by a certified public accountant selected by the City Council. The requirement has been complied
with, and the Independent Auditors' Report has been included in this report.
Awards
The Government Finance Offi ers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Paris for its comprehensive annual financial report (CAFR) for the fiscal
year ended September 30, 200 3. 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 financial report, whose contents conform to program standards. The CAFR must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement s 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 tot Mayor, City Council, and City Manager for their continuing interest and support in planning
and conducting the financial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
, , 2 . 0",,
W. E. Anderson
Director of Finance
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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, 2008
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.
ALE Opp"C 5
NITED STATES
AND ` N
CAIJAGA o
z~ , COiPORATiON1j
President
Executive Director
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City of Paris Organizational Chart
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Citizens of Paris
E City City Municipal
ttorney Council Judge
City Municipal
Manager Court
Community
UMISFinanc Police City Clerk Library Development
Utilities Airport Main Street
Warhouse/ HR Wastewater Purchasing Treatment Treatment.
Public
Works
Parks/ Traffic/
Water Sanitation Wastewater Streets/ Recren/ Engineering Garage Public
Distribution Collection Highways R.07 Li htin .
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City of Paris, Texas
List of Elected and Appointed Officials
Elected Officials
Jesse James Freelen - Mayor
Joe McCarthy - Mayor Pro-Tem
Will Biard
Stephen Brown
Kevin Kear
Edwin Pickle
Rhonda Rogers
Appointed Officials
Kevin Carruth - City Manager
W. E. Anderson - Finance Director
Stacy S. Napier - Engineering, Planning and Development Director
Doug Harris - Utilities Director
Bob Hundley - Police Chief
Ronnie Grooms - Fire Chief
Tom E. Hunt, III - Presiding Municipal Court Judge
Priscilla McAnally - Library Director
Kent McIlyar - City Attorney
Janice Ellis - City Clerk
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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.
PARIS, TEXAS 75460
R. E. BOSTWICK, CPA 903-784-4316
STEVEN W. MOHUNDRO, CPA FAX 903-784 4310
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA 304 WEST CHESTNUT
RUSSELL P. WOOD, CPA DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
Unqualified Opinions on Financial Statements 903-583-5574
FAX 903-583-9453
Accompanied by Required Supplementary Information
and Supplementary Information
Independent Auditors' Report
Honorable Mayor and City Council
City of Paris, Texas
We have audited the acco panying 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, 2009, which collectively
comprise the City's fina cial statements as listed in the table of contents. These financial statements are the
responsibility of the City of Paris, Texas' management. Our responsibility is to express opinions on these financial
statements based on our au it.
We conducted our audit ' accordance with auditing standards generally accepted in the United States of America and
the standards applicable t financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financia statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the ounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles use and significant estimates made by management, as well as evaluating the overall financial
statement presentation. W believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financi 1 statements referred to above present fairly, in all material respects, the respective financial
position of the governmen 1 activities, the business-type activities, the discretely presented component unit, each major
fund, and the aggregate remaining fund information including the budgetary commparison of the City of Paris, Texas,
as of September 30, 2009, 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 United States of America.
In accordance with Gove ent Auditing Standards, we have also issued our report dated March 29, 2010, on our
consideration of the City f Paris, Texas', internal control over financial reporting and on our tests of its compliance
with certain provisions of aws, regulations, contracts, grants, agreements, and other matters. The purpose of that report
is to describe the scope o our testing of internal control, our financial reporting, or on compliance. That report is an
integral part of an audit rformed in accordance with Government Auditing Standards and should be considered in
assessing the results of ou audit.
The management's discussion and analysis on pages through are not a required part of the financial statements but
are supplementary inform tion 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 nd presentation of the required supplementary information. However, we did not audit the
information and express n opinion on it.
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AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and City ouncil
City of Paris, Texas
Page 2
Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole.
The combining and individ al fund statements and schedules, statistical section, and continuing disclosure information
section are presented for p rposes of additional analysis and are not a required part of the basic financial statements.
The accompanying schedu e of expenditures of federal awards is presented for purposes of additional analysis as
required by the U. S. Office f Management and Budget Circular A-133, Audits of States Local Governments, and Non-
Profit Organizations, and i also not a required part of the basic financial statements of the City of Paris, Texas. The
combining and individual n nmajor fund financial statements and schedules and the schedule of expenditures of federal
awards have been subjecte to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, are fairly stated ' all material respects in relation to the basic financial statements taken as a whole. The
statistical and continuing disclosure information sections have not been subjected to the auditing procedures applied in
the audit of the basic financ al statements, and accordingly, we express no opinion on them.
Certified Public Accountants
Paris, Texas
March 29, 2010
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McCLANAHAN AND HOLMES, LLP
MANAGEMENT'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, 2009. We encourage
readers to consider the information presented here in conjunction with additional information that we have furnished in our
letter of transmittal as well as the City's financial statements.
Financial Highlights of the Primary Government
• The City lowered its to rate from 0.56 to 0.52 per $100 of valuation for the fiscal year 2008-09. This makes the
fourth time the City has lowered its rate since 2003-04 fiscal year when the tax rate was 0.695. For the upcoming
2009-10 fiscal year, the City will maintain the 0.52 tax rate. The City has accomplished this 17.5 cent tax rate
reduction 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 322 in fiscal year 2008-09. This
reduction was also part of an operational review and represents a significant and annually repeating savings to the
city.
• City-wide revenues this year exceeded City-wide expenses by $2,518,540 compared to $2,035,405 last year. The
City has made a concentrated effort to reduce expenses while seeking new sources of revenue and protecting its
existing revenue sources.
• Taking advantage of the increase in its General Fund reserves, the City Council authorized a transfer to the Capital
Projects Fund in the a ount of $794,239 in fiscal year 2006-07 for the City to set up a computer aided dispatch-
mobile data wireless n ork. This project will completely modernize this communication area of our emergency
services departments (P lice, Fire, and EMS) and offers opportunity for use by other departments. This project was
completed in fiscal year 2008-09.
• The assets of the City o Paris exceeded its liabilities at the close of the most recent fiscal year by $80,075,588 (net
assets), an increase of 2,518,540 or 3.24% over the previous year amount of $77,557,048. The most important
factor in this change is the decrease of long-term debt followed by a reduction of accounts payable and other
current liabilities. Of th amount known as net assets, $22,357,422 (unrestricted net assets) may be used to meet the
government's ongoing bligations to citizens and creditors.
• As of the close of th current fiscal year, governmental funds reported combined ending fund balances of
$15,852,036 compared o $15,328,642 the previous year. This amounts to an increase of $523,394 or 3.41%. This
increase was due prim ily to an increase in General Fund cash and investments. While the overall combined ending
fund balances for gove ental funds increased, the unreserved portion of those fund balances was $14,628,082 or
an increase of $2,254,860 or 18.22% over the previous year amount of $12,373,222. This increase was due to a drop
in the reserve for constriction. Unreserved fund balance is available for spending at the government's discretion.
• At the end of the fisc year, unreserved fund balance for the general fund was $13,751,446 or 64.58% of total
general fund expendi es. The prior year unreserved fund balance was $11,478,815 or 53.92% of general fund
expenditures. General land expenditures were essentially unchanged while the unreserved fund balance benefited
from an improved cash osition.
• The City of Paris' non current liabilities decreased by $3,564,393 or 10.37% during the current fiscal year. This
decrease is consistent m 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 serv ces for the City of Paris were $18,646,353 compared to $18,465,197 the previous year
because increased wat r and sewer collections exceeded the decrease in municipal court fines and EMS fees.
Operating/capital grant and contributions were $1,542,290 compared to $1,462,681 the previous year. This increase
was largely due to private contributions. General revenues were $18,637,182 compared to $17,839,079 the previous
year. This increase was due to increased sales taxes from multiple construction projects in and around the City.
• Transfers from business-type activities to governmental activities and from governmental activities to business-type
activities occurred duri g the year in the net amount of $902,699. This included administrative and franchise fees
transferred from business-type activities to governmental activities plus a one-time transfer of governmental
activities to business-type activities to reach a desired reserve level in the business-type activity.
• City-wide liabilities decreased $4,663,383 from $36,130,380 to $31,466,997. This amounted to 12.91%. Long-term
debt was the single fact r most affecting this change, but all liability categories were down compared to the previous
year.
• City-wide expenses increased $575,733 or 1.61% but were within the approved budget.
3
• The ratio of net assets to expenses was 217.05% for the year 2007-08 and 220.55% for the year 2008-09. The
decrease in long-term debt was the major factor in this improvement. Unrestricted net assets changed from
$20,087,182 in 2007-08 to $22,357,422 in 2008-09 an increase of 11.30% reflecting the decrease in restrictions for
construction projects.
• The ratio of City-wide n .,t assets restricted for debt service to total expenditures was 5.03% for the year 2007-08 and
7.60% for the year 2008-09. The City had a larger increase in net restricted assets for debt than the increase in City-
wide expenditures.
• Net long-term debt to a sets, a measure of solvency, was 30.21% in 2007-08 and 27.60% in 2008-09. Decreasing
debt caused this change.
Overview of the Financial Stat ments
This discussion and analysis are tended to serve as an introduction to the City of Paris' basic financial statements. The City
of Paris' basic financial stateme is are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) not to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government-wide Financial St tements
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 private-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 as ets 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 fist 1 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 re enues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the
City of Paris include general go ernment, public safety, public works, library, and airport. The business-type activities of the
City of Paris include water prod action and distribution as well as wastewater collection and treatment. The government-wide
financial statements include not only the City of Paris itself (known as the primary government), but also a legally separate
economic development corporation (known as the component unit) over which the City of Paris is able to exercise significant
control. Financial information for this component unit is reported separately from the financial information presented for the
primary government itself.
Fund Financial Statements
A fund is a grouping of related counts that is used to maintain control over resources that have been segregated for specific
activities or objectives. The C' 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 o account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on n ar-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end f 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 financ' g decisions. Both the governmental fund balance sheet and the governmental fund statement
4
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 nin 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 six governmental funds a combined into a single, aggregated presentation. Individual fund data for each of these
nonmajor governmental funds is rovided 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 financial statements can be found immediately after the Independent Auditors' Report.
Proprietary Funds
The City of Paris maintains only one type of proprietary fund. An enterprise fund (the type used by the City of Paris) is used
to report the same functions pre ented as business-type activities in the government-wide financial statements. The City of
Paris uses an enterprise fund to count for its water and sewer related activities.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund used by the Ci 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 Ci 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 the Financial Section.
Combining and individual fun 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 financial position. In the case of the
City of Paris, assets exceeded liabilities by $80,075,588 at the close of the most recent fiscal year. This compares to
$77,557,048 for the previous y ar. Increases in charges for services and capital grant revenue/contributions plus the regular
pay down of long-term debt acc unt for most of this increase.
By far the largest portion of the City of Paris' net assets (66.12%) reflects its investment in capital assets (e.g., land,
buildings, machinery, and eq ipment). 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 hemselves cannot be used to liquidate these liabilities.
5
i
City of Paris - Net Assets
Governmental Activities Business-Type Activities Total
2009 2008 2009 2008 2009 2008
Current & Other Assets $ 17,099, 84 $ 16,584,067 $ 13,444,091 $ 12,622,232 $ 30,543,775 $ 29,206,299
Capital Assets 37,470, 68 39,261,007 43,528,542 45,220,122 80,998,810 84,481,129
Total Assets 54,569, 52 55,845,074 56,972,633 57,842,354 111,542,585 113,687,428
Long-term Liabilities
Outstanding 11,508, 48 12,743,685 19,282,768 21,612,424 30,791,716 34,356,109
Other Liabilities 325,751 527,563 349,530 1,246,708 675,281 1,774,271
Total Liabilities 11,834, 99 13,271,248 19,632,298 22,859,132 31,466,997 36,130,380
Net Assets:
Invested in
Capital Assets
Net of Related Debt 26,663, 57 27,214,018 26,288,945 24,810,704 52,952,502 52,024,722
Restricted 952,225 2,634,911 3,813,439 2,810,233 4,765,664 5,445,144
Unrestricted 15,119, 71 12,724,897 7,237,951 7,362,285 22,357,422 20,087,182
Total Net Assets $ 42,735,2 53 $ 42,573,826 $ 37,340,335 $ 34,983,222 $ 80,075,588 $ 77,557,048
An additional portion of the Ci of Paris' net assets, $4,765,664 or 5.95% represents resources that are subject to external
restrictions on how they may be sed. The remaining balance of unrestricted net assets, $22,357,422 or 27.92% may be used
to meet the government's ongo' obligations to citizens and creditors.
There was a decrease of $679,480 in restricted net assets due to a reduced amount being set aside for construction which
more than offset the increase res iction for debt service. As would be expected, the increase in City assets accompanied by a
reduction in restricted assets produced an increase in unrestricted assets.
At the end of the current fiscal ear, the City of Paris is able to report positive balances in all three categories of net assets
(invested in capital assets net of elated 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 increas d the City of Paris' net assets by $161,427 or 6.40% during the current fiscal year. This
increase resulted from increases 'n capital grants/contribution, sales taxes, and hotel taxes. These increases offset decreases in
property taxes, operating grants franchise taxes, and interest earnings. Total governmental revenues were up $119,477 or
.49%. General revenues were own $463,172 or 2.67% due to lower property tax collections, investment earnings and
franchise fee collections. Progra revenues were up $260,765 or 1.30% due to increased capital grants and contributions.
Increase/
General venues 2009 2008 (Decrease)
Property Taxes $ 7,794,381 $ 73904,936 $ (110,555)
Sales Taxes 6,441,260 5,696,174 745,086
Franchise Taxes 2,859,338 2,898,214 (38,876)
Hotel Occupancy T es 526,998 434,441 92,557
Unrestricted Investment Earnings 174,636 399,676 (225,040)
Total General Revenues $ 17,796,613 $ 17,333,441 $ 463,172
6
The following table provides a summary of the City's operations for the years ending 2008 and 2009 for both governmental
and business-type activities:
City of Paris - Changes in Net Assets
Governmental Activities Business-Type Activities Total
2009 2008 2009 2008 2009 2008
Revenues:
Program Revenues:
Charges for Services $ 5,029,640 $ 5,452,944 $ 13,616,713 $ 13,012,253 $ 18,646,353 $ 18,465,197
Operating Grants
and Contributions 1,317,832 1,407,529 - - 1,317,832 1,407,529
Capital Grants 224,458 55,152
and Contributions 224,458 55,152
General Revenues:
Property Taxes 7,794,381 7,904,936 - 7,794,381 7,904,936
Sales Taxes 6,441,260 5,696,174 - 6,441,260 5,696,174
Franchise Taxes 2,859,338 2,898,214 - 2,859,338 2,898,214
Hotel Occupancy Taxes 526,998 434,441 - - 526,998 434,441
Unrestricted
Investment Earnings 174,636 399,676 212,479 309,586 387,115 709,262
Other - - 628,090 196,052 628,090 196,052
Total Revenues 24,368,543 24,249,066 14,457,282 13,517,891 38,825,825 37,766,957
Expenses: 3,590,461 2,076,554
General Government 3,590,461 2,076,554
Finance 449,227 467,865 - - 449,227 467,865
Public Safety 9,498,749 9,737,225 - - 9,498,749 9,737,225 Public Works 6,905,252 7,705,564 - - 6,905,252 7,705,564
Health 3,133,324 3,174,713 - - 3,133,324 3,174,713
Library Service 730,925 790,216 - - 730,925 790,216
Cox Field 294,089 262,533 - - 294,089 262,533
Interest on
Long-Term Debt 507,788 557,588 - - 507,788 557,588
Water &Sewer - - 11,197,470 10,959,294 11,197,470 10,959,294
Total Expenses 25,109,815 24,772,258 11,197,470 10,959,294 36,307,285 35,731,552
Increase in Net Assets
Before Transfers (741,272) (523,192) 3,259,812 2,558,597 2,518,540 2,035,405
Transfers/Special Item 902,699 1,100,000 (902,699) (1,100,000) -
Increase in Net Assets 161,427 576,808 2,357,113 1,458,597 2,518,540 2,035,405
Net Assets 10-1-08 42,573,826 41,997,018 34,983,222 33,524,625 77,557,048 75,521,643
Net Assets 9-30-09 $ 42,735,253 $ 42,573,826 $ 37,340,335 $ 34,983,222 $ 80,075,588 $ 77,557,048
Business-Type Activities
Business-type activities increased the City of Paris' net assets by $2,357,113. This increase was from a combination of
increased program revenues an contribution revenues.
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.
7
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
2009 2008
Total Assets $ 16,938,424 $ 16,613,139
Total Liabilities $ 1,086,388 $ 1,284,497
Fund Balances:
Reserved for:
Co struction 163,326 1,824,300
De t Service 712,570 741,912
No Ws 132,930 137,797
Inventories 215,128 251,411
Unre erved:
General Fund 13,751,446 11,478,815
Special Revenue Fund 792,271 811,645
Permanent Funds 84,365 82,762
Total Fund Balances 15,852,036 15,328,642
Total Liabilities and
Fu Balances $ 16,938,424 $ 16,613,139
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund balances of
$15,852,036. Approximately 92.27% of this total amount ($14,628,082) 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 ($163,326), 2) pay debt service
($712,570), 3) outstanding notes ($132,930), and 4) inventories ($215,128).
Governmental Funds
Revenues, Expenditures, &
Changes in Fund Balances
2009 2008
Revenues $ 24,402,139 $ 24,036,263
Expenditures 24,745,161 24,085,792
Excess (Deficiency) of Revenues
Over (Under) Expenditures (343,022) (49,529)
Total Other Fin cing Sources (Uses) 902,699 1,100,000
Net Change in and Balances 559,677 1,050,471
Increase (Decre e) in Inventory (36,283) 48,971
Fund Balances October 1 15,328,642 14,229,200
Fund Balances September 30 $ 15,852,036 $ 15,328,642
The general fund is the chief op rating fund of the City of Paris. At the end of the current fiscal year, unreserved fund balance
of the general fund was $13, 51,446 ($11,478,815 the previous year), while total fund balance reached $13,966,574
($11,730,226 the previous year'. The increase in the fund balance of the general fund was due to increased revenues and
other financing sources. Asa measure of the general fund's liquidity, it may be useful to compare both unreserved fund
balance and total fund balance total fund expenditures. Unreserved fund balance represents 64.58% of total general fund
expenditures, while total fund balance represents 65.59% of that same amount.
8
During the year, the City made budgeted transfers from the Water and Sewer Fund to the General Fund of $1,166,448 for
administrative support and fran hise fees, from the General Fund to the Capital Projects Fund of $943,196 to complete
specific projects, from the Capital Projects Fund to the Equipment Replacement Fund for $1,250,000 to establish this fund,
and from the Capital Projects Fund to the Water and Sewer Fund of $263,749 for Water and Sewer Projects completed. These
transfers had a significant influence on the changes in fund balance for these funds.
Debt Service Fund
The debt service fund has a tot 1 fund balance of $712,570 ($741,912 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 $29,342
($5,043 increase of the previous ear). The decrease was an immaterial amount (3.95%). The government enacted a dedicated
property tax for debt service at he beginning of the current fiscal year. This tax produced revenues of $1,308,298 in the
current fiscal year ($1,314,770 t 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 $7,237,951 ($7,362,285 the previous
year). This change was due to increased restriction for debt service. Other factors concerning the finances of this fund
have already been addressed in a discussion of the City of Paris' business-type activities.
General Fund Budgetary High ights
General fund budgeted expendi es were increased by $260,747 in anticipation of expected actual expenditures, however,
actual expenditures fell within t e original budget amount. The overall amended appropriation of the general fund was under
spent by $2,859,827 and under s ent the original appropriation by $2,599,080 ($1,391,304 under spent the previous year).
Capital Asset and Debt Administration
Capital Assets
The City of Paris' investment ' capital assets for its governmental and business-type activities as of September 30, 2009,
amounts to $80,998,810 ($84,481,129 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
Governmental Activities Business-Type Activities Total
2009 2008 2009 2008 2009 2008
Land $ 5,912,108 $ 5,903,022 $ 282,672 $ 282,672 $ 6,194,780 $ 6,185,694
Buildings & System 11,504,237 11,873,271 41,669,702 43,335,543 53,173,939 55,208,814
Improvements Other 2,986,068 2,142,297
than Buildings 2,986,068 2,142,297 -
Machinery, Furniture,
and Equipment 2,265,840 2,708,976 252,474 278,202 2,518,314 2,987,178
Infrastructure 14,623,257 15,928,612 - - 14,623,257 15,928,612
Construction in Progress 6,979 524,041 98,246 - 105,225 524,041
Water Rights-Net - - 792,470 806,137 792,470 806,137
Unamortized
Bond Expense 171,779 180,788 432,978 517,568 604,757 698,356
Total $ 37,470,268 $ 39,261,007 $ 43,528,542 $ 45,220,122 $ 80,998,810 $ 84,481,129
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 $28,595,000. Of this amount,
$10,680,400 comprises debt bac d by the full faith and credit of the government, and $17,914,600 represents bonds secured
solely by specified revenue sources (i.e., revenue bonds). The City also has a $17,994 note outstanding.
City of Paris - Outstanding Long-Term Debt
Governmental Activities Business-Type Activities Total
2009 2008 2009 2008 2009 2008
General
Obligation Bonds $ 10,680 400 $ 11,504,600 $ - $ - $ 10,680,400 $ 11,504,600
Revenue Bonds - 17,914,600 20,890,400 17,914,600 20,890,400
Note 17 994 26,354 - - 17,994 26,354
Total $ 10,698 394 $ 11,530,954 $ 17,914,600 $ 20,890,400 $ 28,612,994 $ 32,421,354
The City of Paris' bond debt d creased by $3,800,000 (11.73%) during the fiscal year. The City of Paris maintains an
underlying bond rating from Mo dy's of A2 (affirmed January 2010) with that rating being upgraded to Aa3 when the issues
are insured. In February of 2010, S&P granted the City an underlying rating of A+, upgraded to AAA when insured.
In February of 2010, the City re nded most of its general obligation and revenue debt into a single general obligation issue
in the amount of $17,075,000. This action was taken due to the drop in interest rates which allowed for total debt service
savings of $1,993,902 ($1,769,1 4 present value of savings). This was accomplished with no extension of the original debt
period. The total debt service savings amounted to 11.58% and present value savings amount to 10.27% of the refunded
bonds.
In March of 2010, the City issued $3,005,000 in combination tax and revenue certificates of obligation for a road
improvement and expansion project. These 20 year certificates have a true interest cost of only 3.69%.
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 leg 1 debt margin can be calculated. The state Attorney General has traditionally allowed up to
$1.50 per $100 valuation to be a )plied to debt service. The City levied a tax rate of $0.52 per $100 valuation for the 2008-09
fiscal years. This rate was broke down into $0.42439 per $100 valuation for operations and $0.09561 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 6.37%
of its debt capacity.
Additional information on the City of Paris' long-term debt can be found in note IV. F. of the Notes to the Financial
Statements.
Economic Factors and Next Year's Budgets and Rates
• Sales tax revenues are rejected to decrease 8% next year.
• New construction amo nted to 10 residential units and 17 commercial units.
• Local population growl is expected to be minimal.
• The tax rate is expecte to remain at $.52 per $100 of value.
• Electrical utility franch se fees are expected to decrease due to a Public Utility Commission ruling.
• Decrease in fuel and chemicals cost.
All of these factors were considered in preparing the City of Paris' budget for 2009-10.
Requests for Information
This financial report is designe to provide a general overview of the City of Paris' finances for all those with an interest in
the government's finances. Qu stions concerning any of the information provided in this report or requests for additional
information should be addresse to the Office of the Finance Director, 135 S.E. First Street, City of Paris, Texas 75460.
10
City of Paris, Texas Statement 1
Statement of Net Assets
September 30, 2009
Component
Primary Government Unit
Governmental Business-Type Economic
Activities Activities Total Development
ASSETS
Cash and Cash Equivalents $ 9,758,084 $ 3,629,446 $ 13,387,530 $ 2,318,943
Investments 4,275,693 597,834 4,873,527 501,762
Receivables (Net of Allowance
for Uncollectibles) 2,150,832 1,761,480 3,912,312 210,001
Internal Balances (33,311) 33,311 - -
Inventories 215,128 285,133 500,261 -
Due from Other Governme is 399,034 - 399,034 -
Restricted Assets:
Cash and Cash Equivalent - 4,551,497 4,551,497
Investments - 2,585,390 2,585,390
Notes Receivable 117,487 - 117,487 2,297,282
Net Pension Asset 216,737 - 216,737 -
Capital Assets (Net of
Accumulated Depreciatio
Land 5,912,108 282,672 6,194,780 1,629,155
Buildings and System 11,504,237 41,669,702 53,173,939 -
Improvements Other Thalk
Buildings 2,986,068 - 2,986,068
Machinery and Equipment 2,265,840 252,474 2,518,314 -
Infrastructure 14,623,257 - 14,623,257
Construction in Progress 6,979 98,246 105,225 -
Water Rights (Net of -
Accumulated Amortizati n) - 792,470 792,470
Unamortized Bond Expen e 171,779 432,978 604,757 -
Total Assets 54,569,952 56,972,633 111,542,585 6,957,143
The accompanying notes o the financial statements are an integral part of this statement.
11
City of Paris, Texas Statement 1
Statement of Net Assets (Continued)
September 30, 2009
Component
Primary Government Unit
Governmental Business-Type Economic
Activities Activities Total Development
LIABILITIES
Accounts Payable and
Other Current Liabilities 184,785 62,745 247,530 33,770
Accrued Interest 140,966 253,102 394,068 13,855
Customers' Deposits - 780,771 780,771 -
Noncurrent Liabilities:
Due Within One Year 1,024,853 3,172,246 4,197,099 270,644
Due in More Than One Year 10,484,095 15,363,434 25,847,529 2,345,000
Total Liabilities 11,834,699 19,632,298 31,466,997 2,663,269
NET ASSETS
Invested in Capital Assets,
Net of Related Debt 26,663,557 26,288,945 52,952,502 1,629,155
Restricted for:
Construction 163,326 1,622,571 1,785,897 -
Debt Service 571,604 2,190,868 2,762,472 259,490
Notes Receivables 132,930 - 132,930 -
Permanent Library Fund ,
Nonexpendable 84,365 - 84,365 -
Unrestricted 15,119,471 7,237,951 22,357,422 2,438,999
Total Net Assets $ 42,735,253 $ 37,340,335 $ 80,075,588 $ 4,293,874
12
City of Paris, Texas
Statement of Activities
For the Year Ended September 30, 2009
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government:
Governmental Activities:
General Government $ 3,590,461 $ - $ 184,764 $ -
Finance 449,227 - -
Public Safety 9,498,749 676,229 302,264 32,035
Public Works 6,905,252 1,693,133 59,645 172,620
Health 3,133,324 2,638,943 667,180 -
Library Service 730,925 21,335 8,508 7,972
Cox Field Airport 294,089 - 91,653 11,831
Interest on Long-Term Debt 507,788 - 3,818 -
Total Governmental Activities 25,109,815 5,029,640 1,317,832 224,458
Business-Type Activities:
Water and Sewer 11,197,470 13,616,713 -
Total Business-Type Activities 11,197,470 13,616,713 -
Total Primary Government $ 36,307,285 $ 18,646,353 $ 1,317,832 $ 224,458
Component Unit: -
Economic Development $ 635,248 $ - $ - $
General Revenues:
Property Taxes
Sales Taxes
Franchise Taxes
Hotel Occupancy Tax
Unrestricted Investment Earnings
Contribution Income
Transfers
Total General Revenues and Transfers
Change in Net Assets
Net Assets - Beginning, October 1, 2008
Net Assets - Ending, September 30, 2009
The accompanying notes the financial statements are an integral part of this statement.
13
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Primary ovemment Component Unit
Governmental Business-Type Economic
Activities Ac ivities Total Development
$ (3,405,697) $ - $ (3,405,697) $ -
(449,227) - (449,227) -
(8,488,221) - (8,488,221) -
(4,979,854) - (4,979,854) -
172,799 - 172,799 -
(693,110) - (693,110) -
(190,605) - (190,605) -
(503,970) - (503,970) -
(18,537,885) - (18,537,885) -
,419,243 2,419,243 -
419,243 2,419,243 -
(18,537,885) ,419,243 (16,118,642) -
- _ - (669,018)
7,794,381 - 7,794,381 -
6,441,260 - 6,441,260 1,288,374
2,859,338 - 2,859,338 -
526,998 - 526,998 -
174,636 212,479 387,115 187,530
628,090 628,090 -
902,699 (902,699) - -
18,699,312 (62,130 18,637,182 1,475,904
161,427 ,357,113 2,518,540 806,886
42,573,826 34,983,222 77,557,048 3,486,988
$ 42,735,253 $ 37,340,335 $ 80,075,588 $ 4,293,874
14
City of Paris Statement 3
Balance Sheet - Governmental Funds
September 30, 2009
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
ASSETS
Cash and Cash Equivalents $ 8,158,301 $ 742,880 $ 163,326 $ 693,577 $ 9,758,084
Investments 4,191,630 - - 84,063 4,275,693
Receivables (Net of
Allowance for
Uncollectibles) 2,072,804 78,028 - - 2,150,832
Notes Receivable 24,557 - - 92,930 117,487
Due from Other Funds 22,166 - - 22,166
Inventories 215,128 - - 215,128
-
Due from Other
Governments 178,754 - - 220,280 399,034
Total Assets $ 14,863,340 $ 820,908 $ 163,326 $ 1,090,850 $ 16,938,424
LIABILITIES AND F BALANCES
Liabilities:
Accounts Payable $ 171,877 $ - $ - $ 12,908 $ 184,785
Due to Other Funds - 33,311 - 22,166 55,477
Deferred Revenue 724,889 75,027 - 46,210 846,126
Total Liabilities 896,766 108,338 - 81,284 1,086,388
Fund Balances:
Reserved for:
Construction - - 163,326 - 163,326
Debt Service - 712,570 - - 712,570
Notes - - - 132,930 132,930
Inventories 215,128 - - - 215,128
Unreserved, Reported in:
General Fund 13,751,446 - - - 13,751,446
Special Revenue Funds - - - 792,271 792,271
Permanent Funds - - - 84,365 84,365
Total Fund Balances 13,966,574 712,570 163,326 1,009,566 15,852,036
Total Liabilities and
Fund Balances $ 14,863,340 $ 820,908 $ 163,326 $ 1,090,850
Amount reported for gove ental 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 nds. (Net of Accumulated Depreciation) 37,298,489
Other long-term assets ar not available to pay for current-period expenditures and, therefore,
are deferred or not refle ted in the funds. 1,062,863
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not report d in the funds. (11,478,135)
Net assets of governmental activities $ 42,735,253
The accompanying notes t 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, 2009
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Revenues:
Taxes:
Ad Valorem $ 6,470,585 $ 1,308,298 $ - $ - $ 7,778,883
Sales 6,441,260 - - - 6,441,260
Hotel Occupancy 526,998 - - - 526,998
Franchise and Gross Rece pts 2,859,338 - - - 2,859,338
Licenses and Permits 171,906 - - - 171,906
Fines and Fees 554,424 - - - 554,424
Use of Money and Propert) 292,738 3,818 12,218 8,254 317,028
Public Safety - 65,283 65,283
1,306,867
Sanitation 1,306,867 - -
Health 2,372,374 - - 211,584 2,583,958
Intergovernmental Revenu s 878,111 - - 696,969 1,575,080
Other 215,575 - - 5,539 221,114
Total Revenues 22,090,176 1,312,116 12,218 987,629 24,402,139
Expenditures:
Current:
General Government 1,065,019 - 10,971 - 1,075,990
Finance 430,364 - - - 430,364
Public Safety 9,239,029 - - 64,697 9,303,726
Public Works 5,527,296 - 64,393 - 5,591,689
Health 2,111,069 - - 900,945 3,012,014
Library Service 604,173 - - 11,975 616,148
Cox Field Airport 180,364 - - - 180,364
Other 1,551,033 - 776,561 32,650 2,360,244
Debt Service:
23,651 824,200 - - 847,851
Principal
Interest 1,424 517,258 - - 518,682
Capital Outlay:
General Government 9,086 - - - 9,086
Public Safety 170,062 250,714 - 420,776
191,929
Public Works 191,929 - -
Highways and Streets 60,611 - - - 60,611
Health 125,687 - - - 125,687
Total Expenditures 21,290,797 1,341,458 1,102,639 1,010,267 24,745,161
Excess (Deficiency) of
Revenues Over
(Under) Expenditures 799,379 (29,342) (1,090,421) (22,638) (343,022)
The accompanying notes t the financial statements are an integral part of this statement.
16
City of Paris, Texas Statement 4
Statement of Revenues, Expenditures and Changes in Fund Balances - (Continued)
Governmental Funds
For the Year Ended September 30, 2009
Other Total
Debt Capital Governmental Governmental
General Service Projects Funds Funds
Other Financing Sources (Uses):
Transfers In 2,416,448 - 943,196 - 3,359,644
Transfers Out (943,196) - (1,513,749) - (2,456,945)
Total Other Financing
Sources (Uses) 1,473,252 - (570,553) - 902,699
Net Changes
in Fund Balances 2,272,631 (29,342) (1,660,974) (22,638) 559,677
Fund Balances -
September 30, 2008 11,730,226 741,912 1,824,300 1,032,204 15,328,642
Increase (Decrease)
in Inventory (36,283) - - - (36,283)
Fund Balances -
September 30, 2009 $13,966,574 $ 712,570 $ 163,326 $ 1,009,566 $ 15,852,036
17
City of Paris, Texas Statement 5
Reconciliation of the Statement of Revenues, Expenditures and
Changes Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2009
Amounts reported for gove ental activities in the statement of activities (Statement 2) are
different because:
Net change in fund balanc s - total governmental funds (Statement 4). $ 559,677
Governmental funds reported capital outlays as expenditures. However, in the statement
of activities the cost ofthose 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 cu ent period. (1,796,243)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. (33,596)
Accrued interest reported ' the statement of activities does not require the use of current
financial resources and therefore is not reported as an expenditure in governmental funds. 10,894
The net change in inventory is a direct adjustment to fund balance in the funds. (36,283)
Some expenses reported ' the statement of activities do not require the use of current
financial resources and, herefore, are not reported as expenditures in governmental funds. 637,655
The issuance of long-terrr. 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 res urces of governmental funds. Neither transaction, however,
has any effect on net ass ts. Also, governmental funds report the effect of issuance
costs, premium, discoun s, and similar items when debt is first issued, whereas these
amounts are deferred an amortized in the statement of activities. This amount is the net
effect of these differences in the treatment of long-term debt and related items. 819,323
Change in net assets of g vernmental activities (Statement 2). $ 161,427
The accompanying notes the financial statements are an integral part of this statement.
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, 2009
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Revenues:
Ad Valorem Taxes $ 6,674,423 $ 6,674,423 $ 6,470,585 $ (203,838)
Municipal Sales Tax 5,593,750 5,593,750 6,441,260 847,510
Hotel Occupancy Tax 400,000 400,000 526,998 126,998
Franchise and Gross
Receipts Tax 2,816,300 2,816,300 2,859,338 43,038
Licenses and Permits 62,900 62,900 171,906 109,006
Fines and Fees 625,400 625,400 554,424 (70,976)
Use of Money and Property 445,820 445,820 292,738 (153,082)
Sanitation 1,322,000 1,322,000 1,306,867 (15,133)
Emergency Medical Service 2,331,610 2,331,610 2,372,374 40,764
Intergovernmental Revenues 2,360,024 2,360,024 878,111 (1,481,913)
Other 129,000 129,000 215,575 86,575
Total Revenues 22,761,227 22,761,227 22,090,176 (671,051)
Expenditures:
General Government:
Council 110,200 125,200 114,650 10,550
Manager 225,452 235,119 226,639 8,480
Attorney 360,019 362,519 350,156 12,363
Municipal Court 215,135 235,047 226,340 8,707
Clerk 159,375 161,042 156,320 4,722
Total General Government 1,070,181 1,118,927 1,074,105 44,822
Finance:
Accounting and Auditing 463,545 468,546 430,364 38,182
Public Safety:
Police 6,332,455 6,277,625 5,899,613 378,012
Fire 3,644,966 3,683,549 3,510,597 172,952
Total Public Safety 9,977,421 9,961,174 9,410,210 550,964
Public Works:
Community Development 779,758 888,062 868,594 19,468
Engineering 444,752 449,753 420,166 29,587
Public Works 144,796 147,296 140,620 6,676
Parks and Recreation 1,295,490 1,307,158 1,109,849 197,309
Sanitation 1,156,673 1,165,007 1,035,021 129,986
Streets and Highways 1,510,589 1,520,590 1,402,774 117,816
Traffic and Public Light' 520,328 510,013 480,473 29,540
Garage 297,112 294,379 276,006 18,373
Total Public Works 6,149,498 6,282,258 5,733,503 548,755
The accompanying notes to he financial statements are an intregal part of this statement.
19
City of Paris, Texas Statement 6
St tement of Revenues, Expenditures and Changes in Fund Balance - (Continued)
Budget and Actual
General Fund
For the Year Ended September 30, 2009
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Expenditures: (Continued)
Emergency Medical Services 2,250,439 2,341,275 2,246,434 94,841
Library Services 644,552 652,886 604,173 48,713
Cox Field Airport 1,704,353 1,605,186 180,364 1,424,822
Paris Band 20,850 21,350 21,021 329
Contingency 50,000 393,520 393,520 -
General 1,559,038 1,305,502 1,197,103 108,399
Total Expenditures 23,889,877 24,150,624 21,290,797 2,859,827
Excess of Revenues Over
(Under) Expenditures (1,128,650) (1,389,397) 799,379 2,188,776
Other Financing Sources
and (Uses):
Transfers In 1,128,650 1,128,650 2,416,448 1,287,798
Transfers Out - - (943,196) (943,196)
Total Other Financing
Sources and (Uses) 1,128,650 1,128,650 1,473,252 344,602
Net Changes in Fund Balance - (260,747) 2,272,631 2,533,378
Fund Balance -
September 30, 2008 11,730,226 11,730,226 11,730,226 -
Decrease in Inventory - - (36,283) (36,283)
Fund Balance -
September 30, 2009 $ 11,730,226 $ 11,469,479 $ 13,966,574 $ 2,497,095
20
City of Paris, Texas Statement 7
Statement of Net Assets
Proprietary Funds
September 30, 2009
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
ASSETS
Current Assets:
Cash and Cash Equivalents Pooled $ 972,821 $ 1,136,081
Cash and Cash Equivalents Non-Pooled 2,686,625 2,757,644
Restricted Cash and Cash E uivalents:
Revenue Bond Covenan Accounts - Non-Pooled 2,928,926 2,390,632
Revenue Bond Construc ion Accounts - Pooled 1,622,571 1,602,592
Accounts Receivable - Net 1,756,480 1,749,017
Accrued Interest Receivable 5,000 5,154
285,133 290,895
Inventories
Due From Other Funds 33,311 -
Total Current Assets 10,290,867 9,932,015
Non-Current Assets:
Investments:
Revenue Bond Covenant ccounts 2,585,390 2,087,838
Unrestricted 597,834 643,785
3,183,224 2,731,623
Water Rights, Net of Accumulated Amortization 792,470 806,137
Unamortized Bond Expens 432,978 517,568
Capital Assets:
Land 282,672 282,672
Plant, Pumps and Motors 32,184,008 31,938,393
Distribution System 36,871,149 36,479,063
Collection System 21,878,723 21,345,243
Maintenance Equipment and Vehicles 2,155,827 2,089,827
Furniture and Equipment 244,222 244,222
Construction in Progress 98,246 -
Less Accumulated Depreciation (51,411,753) (48,483,003)
Total Capital Assets et of Accumulated Depreciation) 42,303,094 43,896,417
Total Non-Current Assets 46,711,766 47,951,745
Total Assets 56,972,633 57,883,760
The accompanying notes tot financial statements are an intregal part of this statement.
21
City of Paris, Texas Statement 7
Statement of Net Assets (Continued)
Proprietary Funds
September 30, 2009
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
LIABILITIES
Current Liabilities:
Accounts Payable 62,745 181,460
Payable to U.S.A. for Water 'ghts - Current Portion 33,683 32,659
Interest Payable 253,102 307,122
Customers' Deposits 780,771 758,126
Lease Payable - Current Porti n - 44,871
Accrued Compensated Absen es - Current Portion 22,363 24,775
Due to Other Funds - 41,406
Revenue Bonds - Current Po ion 3,116,200 2,975,800
Total Current Liabilities 4,268,864 4,366,219
Non-Current Liabilities:
Revenue Bonds Payable - Lo g-Term Portion 14,798,400 17,914,600
Payable to U.S.A. for Water ghts - Long-Term Portion 480,907 514,592
Lease Payable - Long-Term onion - 11,922
Accrued Compensated Abse es Long-Term Portion 84,127 93,205
Total Non-Current Liabil ties 15,363,434 18,534,319
Total Liabilities 19,632,298 22,900,538
NE ASSETS
Invested in Capital Assets, Nei of Related Debt 26,288,945 24,810,704
Restricted for Debt Service 2,190,868 1,207,639
Restricted for Construction 1,622,571 1,602,594
Unrestricted 7,237,951 7,362,285
Total Net Asssets $ 37,340,335 $ 34,983,222
22
City of Paris, Texas Statement 8
Stat ment of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2009
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Operating Revenues:
Charges for Sales and Service :
Water Sales and Taps $ 7,745,873 $ 7,641,122
Sewer Charges and Taps 5,172,748 4,714,273
Sanitation Billing Fees 67,947 68,304
Service Charges 163,181 180,081
Industrial Surcharges 198,029 169,018
Miscellaneous 268,935 239,455
Total Operating Revenu s 13,616,713 13,012,253
Operating Expenses:
Personnel 2,892,699 2,907,442
Supplies 1,504,328 922,038
Contractual 2,092,137 2,096,829
Maintenance 367,845 492,070
Sundry Charges 308,698 389,605
Other 78,567 65,551
Depreciaton 2,928,750 2,902,977
Total Operating Expens s 10,173,024 9,776,512
Operating Income 3,443,689 3,235,741
Non-Operating Income (Expense):
Investment Earnings 212,479 309,586
Interest Expense - Revenue Bonds (919,584) (1,073,116)
Amortization of Bond Issue Expense (84,589) (93,093)
Bank Charges (6,610) (2,910)
Amortization of Water Right (13,663) (13,663)
Net Non-Operating Inc me (Expense) (811,967) (873,196)
Income (Loss) Before Capital Contributions
and Transfers 2,631,722 2,362,545
Capital Contributions 628,090 196,052
Transfers In 263,749 -
Transfers Out (1,166,448) (1,100,000)
Changes in Net Assets 2,357,113 1,458,597
Total Net Assets - Beginning 34,983,222 33,524,625
Total Net Assets - Ending $ 37,340,335 $ 34,983,222
The accompanying notes to th financial statements are an integral part of this statement.
23
City of Paris, Texas Statement 9
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2009
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Cash Flows from Operating Activities
Receipts from Customers and Users $ 13,609,240 $ 13,097,130
Payments to Suppliers (2,212,981) (1,893,370)
Payments to Employees (2,892,699) (2,907,442)
Payments to Contractors (2,301,438) (1,914,846)
Increase (Decrease) in (Paym nts for) Interfund Payables (41,406) 41,406
Net Cash Provided by Operating Activities 6,160,716 6,422,878
Cash Flows from Noncapital Financing Activities
Transfers Out (1,203,648) (1,100,000)
Net Cash Used by Noncapit 1 Financing Activities (1,203,648) (1,100,000)
Cash Flows from Capital and Related Financing Activities
Purchase of Capital Assets (363,476) (867,968)
Principal Paid on Revenue Bonds (2,975,800) (2,843,000)
Principal Paid on Water Rights (32,661) (31,666)
Principal Paid on Capital Lea es (56,793) (44,872)
Interest Paid on Long-Term ebt (973,604) (1,111,169)
Agent Fees Paid on Revenue onds (6,610) (2,910)
Net Cash Used by Capital d Related Financing Activities (4,408,944) (4,901,585)
Cash Flows from Investing Activities
Interest on Investments 135,628 250,365
Purchase of Investment Secu ities (1,441,952) (612,766)
Maturities of Investments 1,052,194 748,720
Net Cash Provided by Inv sting Activities (254,130) 386,319
Net Increase (Decrease) in Cash and Cash Equivalents 293,994 807,612
Cash and Cash Equivalents - Beginning 7,886,949 7,079,337
Cash and Cash Equivalents - Ending $ 8,180,943 $ 7,886,949
The accompanying notes to the financial statements are an integral part of this statement.
24
City of Paris, Texas Statement 9
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2009
Water and Sewer Water and Sewer
Enterprise Fund Enterprise Fund
Current Year Prior Year
Reconciliation of Operating In ome to Net Cash
Provided by Operating Activities:
Operating Income (Loss) $ 3,443,689 $ 3,235,741
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Depreciation 2,928,750 2,902,977
Decrease (Increase) in Accounts Receivable (7,473) 41,378
Decrease (Increase) in Inventory 5,762 (23,473)
Increase in Customers' De osits 22,645 43,499
Increase (Decrease) in Du to Other Funds (41,406) 41,406
Increase (Decrease) in Accrued Compensated Absences (11,490) 2,723
Increase (Decrease) in Accounts Payable (179,761) 178,627
Total Adjustments 2,717,027 3,187,137
Net Cash Provided by (Used Operating Activities $ 6,160,716 $ 6,422,878
Noncash Investing, Capital, an Financing Activities:
Increase in Market Value of Investments $ 61,843 $ 58,207
Capital Contributions 628,090 196,052
25
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
1. Summa of Significant Accounting Policies
A. Reporting Enti
The City of Paris, Texas (the City), operates under a council-manager form of government with
the mayor and six council members being elected. The accompanying financial statements present
the governme t and its component unit. The discretely presented component unit is reported in a
separate colu in the government-wide financial statements (see note below for a description) to
emphasize that it is legally separate from the government.
Discretely Pre ented Component Unit: The Paris Economic Development Corporation (PEDC) is
a government 1 non-profit corporation established July 19, 1993, funded by a quarter percent sales
tax. PEDC as organized exclusively for the purpose of benefiting and accomplishing public
purposes of he City of Paris, Texas, by promoting, assisting, and enhancing economic
development tivities for the City as provided by the Development Corporation Act of 1979. The
business and fairs are managed by a five-member board of directors appointed by the governing
body of the City of Paris, Texas. 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 financial 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 a d its component unit. For the most part, the effect of interf ind activity has been
removed fro these statements. Governmental activities, which normally are supported by taxes
and intergove ental 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 statemen of activities demonstrates the degree to which the direct expenses of a given
function orsegment 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 directly benefit from goods, services, or privileges
provided by 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 of properly included among program revenues are reported instead as general
revenues.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The gove ent-wide financial statements are reported using the economic resources
measurement ocus and the accrual basis of accounting, as is the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year fo which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibili requirements imposed by the provided have been met.
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and
accounting entity with a self-balancing set of accounts. Fund accounting segregates funds
according to heir 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.
26
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
I. Summa of Si ni scant Accounting Policies (Continued)
C. Measurement ocus, Basis of Accounting and Basis of Presentation (Continued)
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 acc al basis of accounting. Under the modified accrual basis of accounting revenues
are recognize 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. Sale 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 Spec'al Revenue Funds account for revenue sources that are legally restricted to
expends es for specific purposes (not including expendable trusts or major capital projects).
The Capi al Projects Funds account for the acquisition or construction of major capital
projects, her than those financed by proprietary or non-expendable trust funds.
The Debt ervice Funds account for the servicing of general long-term debt not being financed
by propri ary or non-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.
Pro rieta unds 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.
27
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
1. Summarv of Si nif ant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary finds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering go ds 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 serv ces. 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 o capital assets. All revenues and expenses not meeting this definition are reported
as nonoperat' revenues and expenses.
Proprietary funds include the following:
The Enter rise 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
determinat on of revenues earned, costs incurred, and/or net income is necessary for
manageme it accountability.
D. Assets, Liabili ies 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
obligation of the State of Texas, other obligations guaranteed or insured by the State of Texas
or the Unit -.d States, obligations of states and political subdivisions of any state meeting certain
rating requirements, certificates of deposit, and fully collateralized direct repurchase
agreement having a defined termination date.
The City d 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.
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 or as revenues, expenditures, or expenses in the funds involved.
28
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
1. Summ of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivable and Payables (Continued)
Transactio s which constitute reimbursements to a fund for expenditures or expenses initially
made fro that fund which were properly applicable to another fund are recorded as
expenditur s or expenses in the reimbursing fund and as reductions of the expenditure or
expense in he fund that is reimbursed.
The City's d 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 p rsonal) on January 1 of each year to secure the payment of all taxes, penalties, and
interest ult mately imposed on the property. The lien is effective until all such amounts are
paid.
3. Inventories
Inventories are valued at cost using the first-in, first-out method. Inventories of governmental
funds are m corded 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 eir 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.
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 g vernment 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
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.
29
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
I. Summ of Si nifi ant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
5. Capital Assets (Continued)
The cost o 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 a part of the capitalized value of the assets constructed. The total interest expense
incurred b business-type activities during the current fiscal year was $919,584. Of this
amount, none was included as part of the cost of capital assets under construction in connection
with water ine and sewer line construction projects.
Property, ant, and equipment of the primary government, as well as the component unit, is
depreciate 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 ver 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 c arges and amortized over the term of the related debt.
In the fu financial statements, governmental fund types recognize bond premiums and
discounts, is 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 c sts, even if withheld from the actual net proceeds received, are reported as debt
service ex enditures.
30
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
1. Summa of Si nifi ant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
8. Fund Equi
In the fun 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.
11. Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation o 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 et assets. One element of that reconciliation explains that "long-term liabilities,
including bons payable, are not due and payable in the current period and therefore are not
reported in the funds." The details of this $11,478,135 difference are as follows:
Bonds Pa able $ 10,680,400
Less: Deferred Charge for Issuance Costs (to be Amortized
over the Life of the Debt) (171,779)
Accrued Interest Payable 140,966
Loan Payable 17,994
Compens ed Absences 706,192
OPEB Li ility 19,519
Landfill Post Closure Care Costs 84,843
Net Adjus -merit to Reduce Fund Balance - Total Governmental Funds
to Arrive at Net Assets - Governmental Activities $ 11,478,135
B. Explanation f 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 ne 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, 2009
II. Reconciliation of Government-wide and Fund Financial Statements (Continued)
B. Explanation o 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 ($1,796,24-3) difference are as follows:
Capital Outlay $ 808,089
Depreciati n Expense (2,604,332)
Net Adju tment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Assets
of Gove ental Activities $ (1,796,243)
Another element of that reconciliation states that "the issuance of long-term debt (e.g. bonds,
leases) provi s current financial resources to governmental funds, while the repayment of the
principal of 1 ng-term debt consumes the current financial resources of governmental funds.
Neither trans tion, however, has any effect on net assets. Also, governmental funds report the
effect of issu ce costs, premiums, discounts, and similar items when debt is first issued, whereas
these amount are deferred and amortized in the statement of activities." The details of this
$819,323 di rence are as follows:
Amorti on of Issuance Costs $ (9,009)
Principal Repayments 847,851
OPEB Li ility (19,519)
Net Adj nt to Increase Net Changes in Fund Balances -
Total G vernmental Funds to Arrive at Changes in Net Assets
of Governmental Activities $ 819,323
III. Stewardship, CogUfflance and Accountability
A. Budgetary In rmation
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 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 t be 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
encumbrance) lapse or revert to the undesignated fund balance.
At least th' 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
32
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
III. Stewardship, Comp- iance and Accountability (Continued)
A. Budgetary Information (Continued)
operating bud et which represents the financial plan for the ensuing fiscal year includes proposed
expenditures d the means of financing them. Public hearings are conducted at which all
interested pers ns' comments concerning the budget are heard.
The budget fo 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 of enact the budget within this time period, then the budget as submitted by the City
Manager beco es the legally authorized budget.
Expenditures ay 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, 2009, the City Council approved a transfer of $79,460 from six line items to several
departmental ine items. Also, the budget was amended to increase expenditures in several
departments b $543,020 primarily for inspection services and contingency expenditures.
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 re ed or the City will not be able to recover collateral securities in the possession of
an outside p . The City's policy requires deposits to be secured by collateral valued at market
or par, whic ever is lower, less the amount of the Federal Deposit Insurance Corporation
insurance (F C). 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 securitie held by the pledging financial institution's agent in the name of the City.
33
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
A. Deposits and Investments (Continued)
As of September 30, 2009, the City and Component Unit had the following investments:
Credit Weighted Average
Type of Secure Fair Value Rating Maturity (Years)
Primary Government
Mortgage Backed Securities:
Federal Home Lon Mortgage Corporation $ 5,009,093 AAA 2.47
Federal National Mortgage Association 602,270 AAA 3.00
Notes:
Federal Home Lo n Mortgage Corporation 593,115 AAA 0.33
Federal National Mortgage Association 1,170,376 AAA 0.86
Certificates of Deposit 84,063 Not Rated 0.50
Totals $ 7,458,917 2.08
Component Unit - PEDC
Certificates of Deposit $ 501,762 Not Rated 0.26
Interest Rate Risk. It is the policy of the City to invest public funds in a manner which will
provide the h ghest investment return with the maximum security while meeting the daily cash
flow demand of the entity and conforming to all state and local statutes governing the investment
of public fun s. The City's investment portfolio will be designed with the objective of attaining a
rate of returr throughout budgetary and economic cycles and commensurate with the City's
investment risk constraints and the cash flow characteristics of the portfolio. The City's
investments ategy is active. Given this strategy, the basis used by the Finance Director to
determine wh ther 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 b 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, 2009
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, 2009, 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 $279,268 of the PEDC bank balance of $922,285 was uninsured.
Custodial Credit Risk - Investments. For an investment, this is the risk that in the event of the
failure of the ounter-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, 2009, 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 exch nge rates. At September 30, 2009, the City was not exposed to foreign currency
risk.
B. Receivables
Receivables a of year-end, including the applicable allowances for uncollectible accounts, are as
follows:
Special Debt
General Revenue Service Enterprise
Receivables:
Interest $ 10,580 $ - $ - $ 5,000
Property Taxes 766,889 - 104,037 -
Sales Tax 1,011,000 - - -
Accounts 125,572 - - 1,756,480
Other Gove ents 178,754 220,280 - -
Street Assessments 26,473 - - -
Fines 139,045 - - -
EMS 2,393,451 - - -
Notes Receivable 24,557 92,930 - -
Gross Receivables 4,676,321 313,210 104,037 1,761,480
Less: Allowable for
Uncollecti les (2,400,206) - (26,009 -
Net Total Re eivables $ 2,276,115 $ 313,210 $ 78,028 $ 1,761,480
Net receivable balances not expected to be collected within one year are Property Taxes -
$381,911, F' es - $19,522, EMS - $312,543, and Street Assessments - $26,473.
35
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
B. Receivables (Continued)
Receivables as f year-end for PEDC are as follows:
Sales T Receivable $ 202,286
Accrued Interest Receivable 7,715
Notes Receivable 2,297,282
Total Receivables $ 2,507,283
PEDC has a n ate receivable bearing interest at 7.0% 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 no is secured by a security agreement, which lists PEDC as having a subordinate
interest in all espects to the financial institution involved and to other individuals as listed in the
security agreement. The balance of this note at September 30, 2009, was $2,247,281.
In past years, EDC granted incentives to a company to assist in locating a business locally and
who did not omply with the terms of the incentive agreement. As a result, the company is
repaying a po ion of the incentive $6,000 monthly. The balance remaining at September 30,
2009, is $50,0 0.
36
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on 11 Funds and Component Unit (Continued)
C. Capital Assets
Capital Assets Activity for the year ended September 30, 2009, follows:
Balance Balance
September 30, September 30,
2008 Increases Decreases 2009
Governmental Actteing ies
Capital Assets, Not Depreciated:
Land $ 5,903,022 9,086 $ 5,912,108
Construction in Press 524,041 265,226 782,288 6,979
Total Capital Ats,
Not Being Depreciated 6,427,063 274,312 782,288 5,919,087
Capital Assets, Being Depreciated:
Buildings 15,408,265 22,037 - 15,430,302
Improvements Other Than Buildings 3,737,869 1,014,378 - 4,752,247
Machinery and Equipment 16,727,567 294,163 87,724 16,934,006
Infrastructure 36,385,088 - - 36,385,088
Total Capital A ;sets,
Being Deprec ated 72,258,789 1,330,578 87,724 73,501,643
Less Accumulated Depreciation for:
Buildings 3,534,994 391,071 - 3,926,065
Improvements Oth r Than Buildings 1,595,572 170,607 - 1,766,179
Machinery and Equipment 14,018,591 737,299 87,724 14,668,166
Infrastructure 20,456,476 1,305,355 - 21,761,831
Total Accumulated Depreciation 39,605,633 2,604,332 87,724 42,122,241
Total Capital A sets,
Being Depreciated, Net 32,653,156 (1,273,754) - 31,379,402
Governmental Activities,
Capital Assets, Net $ 39,080,219 $ (999,442) $ 782,288 $ 37,298,489
37
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on 11 Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Balance Balance
September 30, September 30,
2008 Increases Decreases 2009
Business-Type Activities
Capital Assets, Not Being Depreciated:
Land $ 282,672 $ - $ - $ 282,672
Construction in Process - 98,246 - 98,246
Total Capital Ass ts,
Not Being Depre iated 282,672 98,246 - 380,918
Capital Assets, Being Depreciated:
Plant, Pumps, and Motors 31,938,393 245,615 - 32,184,008
Distribution System 36,479,063 392,086 - 36,871,149
Collection System 21,345,243 533,480 - 21,878,723
Maintenance Equipm nt and Vehicles 2,089,827 66,000 - 2,155,827
Furniture and Equipment 244,222 - - 244,222
Total Capital Assets,
Being Depreciat d 92,096,748 1,237,181 - 93,333,929
Less Accumulated Depreciation for:
Plants, Pumps, and Motors 20,000,898 1,037,830 - 21,038,728
Distribution System 15,379,020 1,115,729 - 16,494,749
Collection System 11,047,238 683,463 - 11,730,701
Maintenance Equipm nt and Vehicles 1,811,625 91,728 - 1,903,353
Furniture and Equipment 244,222 - - 244,222
Total Accumulated Depreciation 48,483,003 2,928,750 - 51,411,753
Total Capital Assets,
Being Depreciat d, Net 43,613,745 (1,691,569) - 41,922,176
Business-Type Activities,
Capital Assets, Net $ 43,896,417 $ (1,593,323) $ - $ 42,303,094
Intangible Asset - W ter Rights $ 11293,880 $ - $ - $ 1,293,880
Less Accumulated Amortization 487,747 13,663 - 501,410
Total Intangible Asset -
Water Rights $ 806,133 $ 13,663 $ - $ 792,470
Component Unit
Capital Assets, Not Being Depreciated:
Land Development Costs $ 1,445,652 $ 183,503 $ - $ 1,629,155
38
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Depreciation a ense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government $ 89,416
Finance 18,863
Public Safe 424,001
Public Works, Including Depreciation of General Infrastructure Assets 11722,240
Health 121,310
Cox Field Airport 113,725
Library Serv ce 114,777
Total Depreciation Expense - Governmental Activities $ 2,604,332
Business-Type Activities:
Water and Sewer - Total Depreciation Expense - Business-Type Activities $ 2,928,750
D. Construction Commitments
The City has active construction projects as of September 30, 2009. At year-end the City's
commitments ith contractors are as follows:
Spent Remaining
Project To Date Commitment
Water and Wastewater Capital Improvements $ 70,894 $ 146,387
E. Interfund Receivables, Payables, and Transfers
Interf ind balances at year-end consisted of the following individual fund receivables and payables:
Fund Receivables Payables
General Fund $ 22,166 $ -
Debt Service and - 33,311
Special Reve ue Fund - Health Department - 22,166
Water and Se er Enterprise Fund 33,311 -
Total $ 55,477 $ 55,477
39
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
E. Interfund Rece vables, Payables, and Transfers (Continued)
Interfund Transfers:
Transfer In
Water and Capital
General Sewer Projects
Fund Fund Fund Total
Transfer Out:
General Fund $ - $ - $ 943,196 $ 943,196
Capital Projects 1,250,000 263,749 - 1,513,749
Water and Sewe Fund 1,166,448 - - 1,166,448
$ 2,416,448 $ 263,749 $ 943,196 $ 3,623,393
During the year ended September 30, 2009, the City made budgeted transfers from Water and
Sewer Fund t General Fund for $1,166,448, from the General Fund to the Capital Projects Fund
of $943,196 t complete specific projects, and from the Capital Projects Fund to the Equipment
Replacement and for $1,250,000 and to the Water and Sewer Fund for $263,749 for Water and
Sewer project completed.
40
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
F. Long-Term Debt
General Obligation Certificates of Obligation and Other Long-Term Obligations:
$6,000,000 C mbination Tax and Revenue Certificates of Obligation, Series 2000, due in annual
installments varying from $280,000 to $495,000 with final payment due December 15, 2019.
Interest is payable semi-annually at rates ranging from 5.3% to 6.0%. 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 $255,000 to $460,000 with final payment due December 15, 2021.
Interest is payable semi-annually at rates ranging from 4.0% to 4.7%. 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 $410,00 to $800,000 with final payment due December 15, 2014. Interest is payable semi-
annually at ra es ranging from 3.1% 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 terest as they come due. They also require that these funds be placed in special
Interest and S Inking Funds created solely for the benefit of the obligations. At September 30,
2009, the fun balances in the Interest and Sinking Funds are $712,570. Revenues from the
Waterworks a d Sewer System are also pledged to secure the Certificates of Obligation.
$120,600 not 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.
The State of Texas is requiring additional monitoring of a landfill owned by the City that has been
closed for several years. The City and its' consultants estimate that, based on known
requirements, future costs may be $84,843. These costs are subject to change resulting from
inflation, deflation, technology, or changes in applicable laws or regulations.
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 $305,000 to $420,000 with final payment due June 15, 2016. Interest is
payable semi- annually at rates ranging from 4.5% to 5%.
$6,905,000 aterworks and Sewer System Revenue Refunding Bonds, Series 1998, due in annual
installments varying from $770,000 to $850,000 with final payment due December 15, 2011.
Interest is payable semi- annually at rates ranging from 4.6% to 4.95%.
41
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on 11 Funds and Component Unit (Continued)
F. Long-Term Debt (Continued)
$5,810,000 T and Revenue Refunding Bonds, Series 1998, due in annual installments varying
from $645,00 to $715,000 with final payment due December 15, 2011. Interest is payable semi-
annually at rats ranging from 4.6% to 4.95%.
$9,500,000 Waterworks and Sewer System Revenue Bonds, Series 2000, due in annual
installments varying from $480,000 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 T and Revenue Refunding Bonds, Series 2001, due in annual installments varying
from $560,00 to $605,000 with final payment due December 15, 2011. Interest is payable semi-
annually at rats ranging from 4.0% 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 o principal may be prepaid or redeemed prior to their scheduled due dates at the
option of the City.
The revenues f the Waterworks and Sewer System, after deducting the expenses of operation and
maintenance, re pledged for payment of bonds and interest. The ordinances authorizing the
issuance oft 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 Find 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, 2009, the asset
balances in the Interest and Sinking Funds, Reserve Fund, and Contingency Fund are $2,660,521,
$2,147,857, and $744,249, respectively. In addition, Series 1994 and Series 1998 Tax and
Revenue Refu ding Bonds ordinances require that ad valorem taxes be levied and collected
at a rate suffi ient to pay bonds and interest as they come due.
Water Rights Debt:
The City has fights 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.
General:
Certificates o 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 fore ending and improving the waterworks and sewer systems. Federal arbitrage
regulations apply to bonds and certificates of obligation issued by the City.
42
i
i
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on 11 Funds and Component Unit (Continued)
F . Long-Term Debt (Continued)
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
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 994,800 358,664 1,315,200 414,142
2014 1,044,000 314,036 1,396,000 350,330
2015-2019 4,111,800 957,890 4,568,200 907,120
2020-2022 1,815,000 108,013 835,000 44,881
$ 10,698,394 $ 3,058,841 $ 17,914,600 $ 3,755,421
43
i
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
F . Long-Term Debt (Continued)
A summary of long-term liability transactions for the year ended September 30, 2009, follows:
Balance Balance
September 30, September 30, Due Within
2008 Additions Reductions 2009 One year
Governmental Activities
Certificates of Obligation $ 11,504,600 $ - $ 824,200 $ 10,680,400 $ 872,578
Note 26,354 - 8,360 17,994 8,778
Capital Leases 15,291 - 15,291 - -
Compensated Absences 703,920 104,313 102,041 706,192 102,397
Infrastructure Cost
Reimbursement 393,520 - 393,520 - -
Landfill Post Closure
Care Costs 100,000 - 15,157 84,843 41,100
OPEB Liability - 19,519 - 19,519 -
Governmental Activities
Long-Term Liabilities $ 12,743,685 $ 123,882 $ 1,358,569 $ 11,508,948 $ 1,024,853
Business-Type Activities
Revenue Bonds $ 20,890,400 $ - $ 2,975,800 $ 17,914,600 $ 3,116,200
Water Rights Debt 547,251 - 32,661 514,590 33,683
Capital Leases 56,793 - 56,793 - -
Compensated Absences 117,980 11,191 22,681 106,490 22,363
Business-Type Activities
Long-Term Liabilities $ 21,612,424 $ 11,191 $ 3,087,935 $ 18,535,680 $ 3,172,246
Component Unit
Bonds Payable $ 2,760,000 $ - $ 200,000 $ 2,560,000 $ 215,000
Note Payable 273,561 - 217,917 55,644 55,644
Component Unit
Long-Term Liabilities $ 3,033,561 $ - $ 417,917 $ 2,615,644 $ 270,644
For the gove ental activities, compensated absences are liquidated by the general fund.
PEDC has ante payable to a bank to provide funding for an industrial park and other purposes.
This note bear interest at a rate of 4.942% with principal and interest payments due on a monthly
basis. The no is secured by a tax assignment and security agreement. It also contains, to the
extent permitte by law, a right of setoff in all accounts PEDC has with the lender. The balance of
the note at September 30, 2009, was $55,644.
44
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
F . Long-Term De it (Continued)
PEDC has out tanding Paris Economic Development Corporation Taxable Sales Tax Revenue
Bonds, Series 1998, originally issued at $4,200,000, bearing interest at 6.25% to 6.625°/x. Principal
payments are due serially in varying annual amounts to September 1, 2018, from $215,000 to
$365,000.
Sales and Use Taxes (one-quarter of one percent) levied by the City of Paris, Texas, within its
boundaries and r the Development Corporation Act of 1979, are pledged for payment of bonds and
interest. The m solution 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 Fu rd 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, 2009, the balances in the
Debt Service Fund and Reserve Fund are $20,333 and $463,783, respectively.
Debt Service requirements related to these bonds and notes are as follows:
Year Ending Bond Debt Requirements Note Payable
September 30, Principal Interest Principal Interest Total
2010 $ 215,000 $ 166,261 $ 55,644 $ 393 $ 437,298
2011 230,000 152,716 - - 382,716
2012 245,000 138,111 - - 383,111
2013 265,000 122,431 - - 387,431
2014 280,000 105,206 - - 385,206
2015 300,000 87,006 - - 387,006
2016 320,000 67,506 - - 387,506
2017 340,000 46,706 - - 386,706
2018 365,000 24,181 - - 389,181
$ 2,560,000 $ 910,124 $ 55,644 $ 393 $ 3,526,161
G. Restricted Net Assets and Restricted Asset Accounts
The City's Water and Sewer Revenue Bonds and Certificates of Obligation covenants require
certain restrict ions of net assets. The restricted portions are as follows:
Restricted for Revenue Bond Operations and Maintenance $ 1,446,619
Restricted for Contingency 744,249
Total Restricted Net Assets $ 2,190,868
Collections o Notes Receivable are restricted by grant agreements to be used for building
rehabilitation.
45
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
IV. Detailed Notes on All Funds and Component Unit (Continued)
G. Restricted Net Assets and Restricted Asset Accounts (Continued)
The balances o the City's restricted asset accounts are as follows:
Certificates of Accrued
Deposit and Interest and
Cash and Cash Other Other
Equivalents Investments Receivables
Customer Deposits $ 62,462 $ 679,778 $ 2,009
Revenue Bond Construction Account 1,622,571 - -
Revenue Bond C ent Debt Service Account 2,627,210 - 33,311
Revenue Bond Future Debt Service Account 239,254 1,905,612 2,991
Notes Receivable - - 92,930
Total Restricted As ets $ 4,551,497 $ 2,585,390 $ 131,241
V. Other Information
A. Risk Manage ent
The City is ex osed 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. he 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, 2009. There have been no settlements in excess of insurance coverage in any of the prior three
fiscal years.
B. Related Party
The City Council appoints the governing board of an entity which is legally separate from the
City. The C ty 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 ommitments
A contract wi 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.
46
II
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information (Continued)
C. Water Storage Commitments (Continued)
Forty percent (43,800 acre-feet) is for present storage and the remaining sixty percent (65,800
acre-feet) is ffir 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 eplacements when incurred.
Allocated cos for future water storage (60%) is $1,925,722 and the amount to be paid including
accumulated terest 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 art of the Water Resources Development Act. For a payment of $3,461,432
including irate est, the City will acquire the remaining storage rights. The City expects to fund this
acquisition frm 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. Tota water sales under these contracts to these entities during the year ended September
30, 2009, were approximately $3,425,000.
E. Civic Center Contract
The City is a arty to a contract with the Chamber of Commerce of Lamar County, Inc. whereby
three-seventh of the hotel/motel tax is to be dedicated to a fund to be used for improving,
enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides
that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through
September 30, 2009, 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.
F. Contingent Li bilities, Commitments, and Subsequent Events
Amounts rece ved or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, grin ipally 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 b disallowed by the grantor cannot be determined at this time although the City
expects such amounts, if any, to be immaterial.
The City is 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.
Management as evaluated subsequent events through March 29, 2010, the date on which the
financial statements were available to be issued.
47
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information ( ontinued)
F. Contingent Liabilities, Commitments, and Subsequent Events (Continued)
The City has applied for or has been awarded the following gants:
Amount of City
Grant Match
Owner Occupied Housing
Assistance Program $ 390,000 $ 46,875
Capital Improvement Program $ 4,911,088 $ 491,109
Bro fields Assessment/
Cleanup Grant Application $ 200,000 $ 40,000
Subsequent to September 30, 2009, the City Council approved the issuance of approximately $3
million in Cert ficates of Obligation for Collegiate Drive and other projects. In another action, the
City Council approved refunding $17.3 million in general obligation and water and sewer debt.
In past years, EDC entered into two incentive agreements, one with a company that operates a
call center facility. The agreement expires December 31, 2012, and is payable periodically over
the life of the ontract. The amount of the incentive is based on the number of employees and a
reimbursemen for equipment purchased and tenant improvement. The contract also provides for
refunds shoul a default by the company occur. Maximum amount of incentive payments under
the contract is $725,000 of which $325,000 has been paid. The other approved by the Board of
Directors is a expansion incentive agreement with a food manufacturer for training and the
addition of new employees not to exceed $477,500. During the year, the Board approved another
incentive package for a food manufacturer for up to $100,000 for training and $100,000 for net
gain of employees. The Board also approved $30,000 for participation of an incubator project.
G. Postemployme t 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 financed on a pay-as-you-go basis and for the year ended September 30,
2009, the con ibutions were approximately $119,000 for 27 retired employees. An additional 22
employees were eligible for this benefit.
Initial actuarial information as of December 31, 2008:
Development of the Annual Required Contribution
Emp oyer Normal Cost $ 16,423
Amortization of UAAL 121,843
Annual Required Contribution (ARC) $ 138,266
Percentage Contributed 86%
48
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information (Continued)
G. Postemployme t Benefits Other Than Pensions (Continued)
The ARC shown has been calculated to remain at a level dollar amount. The unfunded actuarial
accrued liabilities were amortized as a level dollar amount over a period of 15 years. A 15-year
amortization eriod for unfunded actuarial accrued liabilities complies with the GASB
requirements. The Projected Unit Credit Cost Method was used in the valuation. The actuarial
present value of benefits allocated to the valuation year is the Normal Cost. The actuarial present
value of benefits allocated to all prior periods is the Actuarial Accrued Liability. Actuarial gains
(losses) as the occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
Determination of Unfunded Actuarial Accrued Liability
A. P resent Value of Future Benefits
i Retirees and Beneficiaries $ 1,028,420
ii Vested Terminated Members -
ii' Active Members 483,343
Total Present Value of Future Benefits 1,511,763
B. Present Value of Future Normal Costs 173,995
C. Actuarial Accrued Liabilities (A.-B.) $ 1,337,768
D. Actuarial Value of Assets $ -
E. Unfunded Actuarial Accrued Liability (C.-D.) $ 1,337,768
F. F ded Ratio (D./C.) 0.00%
The Unfunded Actuarial Accrued Liability (UAAL) is not booked as an expense all in one
year and does not appear in the Employer's Statement of New Assets. The discount rate used if
4.5%.
H. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with
Internal Revenue Code Section 457.
49
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information Continued)
1. Employee Retirement Systems and Plans
The City maintains a non-traditional defined benefit retirement plan for all full-time employees
except for fire fighters and a single-employer, defined plan for firefighters.
1. Texas Mun cipal Retirement System
Plan Descr tion
The City provides pension benefits for all of its eligible employees (except firefighters)
through a non-traditional, joint contributory, hybrid defined benefit plan in the state-wide
Texas Municipal Retirement System (TMRS), 1 of 833 currently administered by TMRS, an
agent multi le-employer public employee retirement system.
Benefits
Upon retir ment, benefits depend on the sum of the employee's contributions, with interest, and
the City-financed monetary credits, with interest. City-financed monetary credits are
composed f three sources: prior service credits, current service credits, and updated service
credits. A the inception of the plan, the City granted monetary credits for service rendered
before the plan began (or prior service credits) of a theoretical amount at least equal to two
times what would have been contributed by the employee, with interest, prior to establishment
of the plan. Monetary credits for service since the plan began (or current service credits) are
150% of the employee's accumulated contributions. In addition, the city can grant, either
annually o on an annually repeating basis, another type of monetary credit referred to as
Updated Service Credit. This monetary credit is determined by hypothetically recomputing the
member's account balance by assuming that the current member deposit rate of the City has
always been in effect. The computation also assumes that the member's salary has always
been the ember's average salary - using a salary calculation based on the 36-month period
ending a year before the effective date of calculation. This hypothetical account balance is
increased by 3% each year, not the actual interest credited to member accounts in previous
years, and ncreased by the City match current in effect. The resulting sum is then compared to
the memb is actual account balance increased by the actual City match and actual interest
credited. I the hypothetical calculation exceeds the actual calculation, the member is granted a
monetary credit (or Updated Service Credit) equal to the difference between the hypothetical
calculation and the actual calculation. At retirement, the benefit is calculated as if the sum of
the employee's contributions, with interest, and the city-financed monetary credits, with
interest, were used to purchase an annuity.
The plan provisions are adopted by the governing body of the City, within the options available
in the state statutes governing TMRS. Plan provisions for the City were as follows:
Deposit Rate: 6%
Matching Ratio (City to Employees): 2 to 1
A member is vested after 5 years
50
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information Continued)
I. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Benefits (Continued)
Members an 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
Contributions
Under the state law governing TMRS, the contribution rate for each city is determined annually
by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the
normal co t contribution rate and the prior service cost contribution rate, both of which are
calculated o be a level percent of payroll from year to year. The normal cost contribution rate
finances the portion of an active member's projected benefit allocated annually; the prior
service co tribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the
applicable period for that city. Both the normal cost and prior service contribution rates
include re ognition of the projected impact of annually repeating benefits, such as Updated
Service C edit and Annuity Increases. The employer contribution rate cannot exceed a
statutory aximum rate, which is a function of the employee contribution rate and the city
matching percentage. The prior service contribution rate amortizes the unfunded actuarial
liability over the remainder of the plan's 25-year closed amortization period. Both the
employees and the City make contributions monthly. Since the City needs to know its
contribute rate in advance for budgetary purposes, there is a one-year delay between the
actuarial v luation 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
assumptio is include no cost-of-living adjustments, projected salary increases vary by age and
service, in ation at 3%, and the investment rate of return is 7.5%. The level percent of payroll
is the amo ization method used.
During the past three fiscal years, the City has contributed 100% of its annual pension cost as
follows: 2008 - $1,278,809, 2007 - $1,313,744, and 2006 - $1,188,241. At September 30,
2007, 2008, and 2009, the net pension obligation is zero.
51
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information (Continued)
1. Employee Ret' ement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Plan Description (Continued)
Contributions (Continued)
Schedule o Fundin Progress
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
2006 $ 22,1 8,991 $ 30,579,449 $ 8,420,458 72.5% $ 9,301,960 90.5%
2007 24,2 3,647 30,472,916 6,269,269 79.4 9,960,392 62.9
2008 24,4 0,444 30,338,881 5,858,437 80.7 10,784,615 54.3
Paris is 1 833 municipalities having their benefit plan administered by TMRS. Each of the
833 municipalities have an annual, individual actuarial valuation performed. All assumptions
for the Dec mber 31, 2008 valuations are contained in the 2008 TMRS Comprehensive Annual
Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin,
Texas 78714-9153.
Su lemen al Death Benefits
The City also participates in the cost sharing multiple-employer defined benefit group-term life
insurance Ian operated by the TMRS known as the Supplemental Death Benefits Fund. The
City elected, by ordinance, to provide group-term life insurance coverage to both current and
retired em loyees. The City may terminate coverage under and discontinue participation by
adopting at i ordinance before November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump-sum payment approximately equal to
the emplo e's annual salary (calculated based on the employee's actual earnings, for the 12-
month period preceding the month of death); retired employees are insured for $7,500; this
coverage i an "other postemployment benefit." The City contributes to the Supplemental
Death Ben fits Fund at a contractually required rate as determined by an annual actuarial
valuation. The rate is equal to the cost of providing one-year term life insurance. The funding
policy for he program is to assure that adequate resources are available to meet all death
payments r the upcoming year; the intent is not to pre-fund retiree term life insurance during
employees entire careers. The City contributed 100% of its required contribution for the last
three years at the annual required contribution rate of .09%.
52
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Informatio (Continued)
I. Employee Retirement Systems and Plans (Continued)
2. Firefighter' Relief and Retirement Fund
Plan Desc i tion
The Paris Firefighter's Relief and Retirement Fund, a single-employer defined benefit pension
plan, is es ablished under the authority of the Texas Local Firefighters' Retirement Act and is
administe ed by a Board of Trustees made up of three members elected from and by the fund's
members, two representatives of the City of Paris, Texas, and two citizen members. Specified
plan provisions are governed by a plan document and a trust agreement executed by the Board
of Trustees. The plan is an independent entity for financial reporting purposes and issues a
stand-alone financial statement. A copy of the audited financial statement may be obtained
from the Board of Trustees, Paris Firefighters' Relief and Retirement Fund, P.O. Box 9037,
Paris, Texas 75461. Governing state law requires public retirement systems to hire an actuary
to make a valuation at least once every three years of the assets and liabilities of the system and
to determine if the assumptions and methods are reasonable.
Eli ibili
The Plan covers current and former firefighters of the City of Paris, Texas, as well as certain
beneficiar es. The City of Paris contributes 14.01% 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 12% 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 du ing which they pay into and keep on deposit in the fund, the contributions required
by the fu .
The fund as amended effective January 1, 2009.
The City' annual required contribution to the plan for fiscal year 2009 was based on a payroll
of $2,332,363 and amounted to $290,747. Covered employees made contributions of
$279,884. The Plan covers 30 retirees and beneficiaries, 24 fully vested active employees, and
24 nonve ted active employees.
Service R tirement Disability and Death Benefits
A member is eligible for service retirement on either (a) the date that the member has both
attained a 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 $94 multiplied by his/her years of service at
retiremen. The minimum service retirement benefit is $500 per month. Service retirement
benefits are payable for the member's lifetime. In the event the member's death precedes that
of his/her spouse, two-thirds of the member's pension will be continued to the spouse for
53
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information Continued)
1. Employee Retir ment Systems and Plans (Continued)
2. Firefighters' elief and Retirement Fund (Continued)
Service Ret' ement Disabili and Death Benefits (Continued)
his/her lifetime. An active member who becomes disabled will receive a monthly disability
benefit. If member dies while in active service, his/her widow(er) will receive an immediate
monthly benefit, payable for his/her lifetime.
Annual Pens on Cost
The actuarial valuation date used to determine the Annual Required Contribution for the year
ended September 30, 2009, 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 y 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 finding 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 rat of return on the actuarial value of assets of 8% 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 determined
as a level percentage of payroll. The amortization period is an open amortization period over
25.1 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."
The initial asset value is the market value of assets five years prior to the valuation date. All
receipts fro contributions, interest, dividends, and miscellaneous income over the last five
years are ad led 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.
54
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
2. Firefighters Relief and Retirement Fund (Continued)
Annual Pension Cost (Continued)
January 1,
2003 2005 2007
Actuarial Value of Assets $ 6,128,263 $ 6,967,797 $ 6,901,424
Actuarial Accrued Liability (AAL) 9,676,328 10,807,294 11,368,809
Unfunded A AL (UAAL) $ 3,548,065 $ 3,839,497 $ 4,467,385
Funded Ratio 63.3% 64.5% 60.7%
Covered Payroll $ 1,968,378 $ 2,093,252 $ 1,781,420
UAAL as a P rcentage of Covered Payroll 180.3% 183.4% 250.8%
Development of the Actuarial Value of Assets
December 31,
2006 2007 2008
Market Value as of January 1 $ 6,570,452 $ 7,075,992 $ 7,158,898
Contributions, Interest and Dividends
Contributions by the City 253,191 282,687 306,216
Contributions by Members 197,946 228,882 262,283
Dividends and Interest 221,268 209,790 272,515
Other 13,398 6,028 21,835
685,803 727,387 862,849
Disbursements
Benefits Pa' Monthly 769,028 757,831 809,723
Administrative Expenses 111,172 106,818 102,831
880,200 864,649 912,554
Net Realized and Unrealized Gains and Losses
Realized Gains (Losses) 484,560 621,237 (431,974)
Unrealized Gains (Losses) 215,377 (401,069) (1,556,929)
699,937 220,168 (1,988,903)
Market Value as of December 31 7,075,992 $ 7,158,898 $ 5,120,290
Adjustments to Develop Actuarial Value, Net (174,568)
Actuarial Va ue of Assets $ 6,901,424
55
City of Paris, Texas
Notes to Financial Statements
September 30, 2009
V. Other Informatio (Continued)
1. Employee Retirement Systems and Plans (Continued)
2. Firefighters Relief and Retirement Fund (Continued)
Development f the Actuarial Value of Assets (Continued)
Other Inform tion
December 31,
2004 2005 2006
Annual Pension Cost $ 229,417 $ 180,182 $ 156,826
Percentage o Annual
Pension Co Contributed 119% 143% 162%
Net Pension Balance $ 49,118 $ 126,222 $ 222,587
56
i
Nonmajor Governmental Funds
Special Revenue
Special revenue funds are used to account for specific revenues that are legally restricted to expenditures 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 and was not active during the year.
Community Development Block Grant - This fund accounts for funds received from various federal grant programs and
expended for community development purposes.
Special Revenue Fund - is 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 enhancement for municipal court; and other improvement activity.
Health Department - This find accounts for funds received primarily from federal, state, another local entity, and local
fees. Employees of the fun 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 progr is.
Library Memorial Funds - These funds account for resources given for book and library related purposes in memory of
individuals.
Permanent Funds
Library Trust Funds - These funds account for resources of a permanent nature whereby only earnings and not principal
may be used for books and library related purposes.
Other Major Governmental Funds
Debt Service Fund - This fund accounts for the accumulation of resources and the payment of general obligation
principal and interest.
Capital Projects Fund - Thi fund accounts for proceeds from bond issues and transfers.
57
City of Paris, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2009
Special Revenue
Criminal Community
Justice Development Library
Division Block Special Health Memorial
Grant Grant Revenue Department Funds
ASSETS
Cash $ 36,329 $ 299,028 $ 143,756 $ 95,121 $ 119,041
Investments - - - - -
Notes Receivable - 92,930 - -
Due from Other Governments - 20,000 169 200,111 -
Total Assets $ 36,329 $ 411,958 $ 143,925 $ 295,232 $ 119,041
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable $ 12,270 $ - $ - $ 638 $ -
Deferred Revenue - - - 46,210 -
Due to General Fund - - - 22,166 -
Total Liabilities 12,270 - - 69,014 -
Fund Balances
Reserved for Notes - 132,930 - - -
Unreserved - Undesignated 24,059 279,028 143,925 226,218 119,041
Total Fund Balances 24,059 411,958 143,925 226,218 119,041
Total Liabilites and
Fund Balances $ 36,329 $ 411,958 $ 143,925 $ 295,232 $ 119,041
58
Schedule 1
Permanent
Total
Library Nonmajor
Trust Governmental
Total Funds Funds
$ 693,275 $ 30 $ 693,577
- 84,063 84,063
92,930 - 92,930
220,280 - 220,280
$ 1,006,485 $ 84,36 $ 1,090,850
$ 12,908 $ - $ 12,908
46,210 - 46,210
22,166 - 22,166
81,284 - 81,284
132,930 - 132,930
792,271 84,36 876,636
925,201 84,36f 1,009,566
$ 1,006,485 $ 84,30 $ 1,090,850
59
City of Paris, Texas
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2009
Special Revenue
Cr' inal Community
Ju tice Development Library
Division Block Special Health Memorial
Grant Grant Revenue Department Funds Total
Revenues:
Memorial Donations $ - $ - $ - $ - $ 5,431 $ 5,431
Interest Earned - 4,531 435 211 1,474 6,651
Grant Revenue - 30,000 - 666,969 - 696,969
Local Revenue - 108 65,283 211,584 - 276,975
Total Revenues - 34,639 65,718 878,764 6,905 986,026
Expenditures:
Municipal Court - - 28,699 - - 28,699
Community Development - 32,650 - - - 32,650
Police - - 35,998 - - 35,998
Health - - - 900,945 - 900,945
Library - - - - 11,975 11,975
Total Expenditures - 32,650 64,697 900,945 11,975 1,010,267
Excess of Revenues Over
(Under) Expenditures - 1,989 1,021 (22,181) (5,070) (24,241)
Fund Balances -
Septembers 30, 2008 24,059 409,969 142,904 248,399 124,111 949,442
Fund Balance -
Septembers 30, 2009 $ 24,059 $ 411,958 $ 143,925 $ 226,218 $ 119,041 $ 925,201
60
Schedule 2
Permanent
Total
Library Nonm jor
Trust Gove ental
Funds Funds
$ - $ 5,431
1,603 8,254
- 696,969
5
2-16,97
1,603 9V,629
8,699
2,650
5,998
9(0,945
1,975
- 1,0 0,267
1,603 (22,638)
82,762 1,032,204
$ 84,365 $ 1,0 9,566
61
i
City of Paris, Texas Schedule 3
Criminal Justice Division Grant Special Revenue Fund
chedule of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended September 30, 2009
Revenues:
Grant Revenue $ -
Local Revenue -
Program Income -
Total Revenues -
Expenditures:
Police -
Total Expenditures
Excess Revenues Over
(Under) Expenditures -
Fund Balance - September 30, 2008 24,059
Fund Balance - September 30, 2009 $ 24,059
62
City of Paris, Texas Schedule 4
Community Development Block Grant Special Revenue Fund
chedule of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended September 30, 2009
Revenues:
Interest Earned on
Notes Receivable $ 4,531
Other Income 108
Grant Revenue 30,000
Total Revenues 34,639
Expenditures:
Community Development 32,650
Total Expenditures 32,650
Excess Revenues Over
(Under) Expenditures 1,989
Fund Balance - Septembe 30, 2008 409,969
Fund Balance - Septembe 30, 2009 $ 411,958
63
I
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, 2009
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Revenues:
Interest Earned $ 500 $ 500 $ 435 $ (65)
Local Revenue 34,500 34,500 65,283 30,783
Total Revenues 35,000 35,000 65,718 30,718
Expenditures:
Municipal Court 136,000 136,000 28,699 107,301
Police Department 20,700 20,700 35,998 (15,298)
Total Expenditures 156,700 156,700 64,697 92,003
Excess Revenues Over
(Under) Expenditures (121,700) (121,700) 1,021 122,721
Fund Balance - Septemb 30, 2008 142,904 142,904 142,904 -
Fund Balance - September 30, 2009 $ 21,204 $ 21,204 $ 143,925 $ 122,721
64
City of Paris, Texas Schedule 6
Health Department Fund
Sc edule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2009
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Revenues:
Grant Revenue $ 725,724 $ 725,724 $ 666,969 $ (58,755)
Local Revenue 252,718 252,718 211,795 (40,923)
Total Revenues 978,442 978,442 878,764 (99,678)
Expenditures:
Health 965,894 965,894 900,945 64,949
Total Expenditures 965,894 965,894 900,945 64,969
Excess Revenues Over
(Under) Expenditures 12,548 12,548 (22,181) (34,729)
Fund Balance - September 0, 2008 248,399 248,399 248,399 -
Fund Balance - September 0, 2009 $ 260,947 $ 260,947 $ 226,218 $ (34,729)
65
City of Paris, Texas Schedule 7
Debt Service Fund
Sch dule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2009
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Revenues:
Ad Valorem Taxes $ 1,341,482 $ 1,341,482 $ 1,308,298 $ (33,184)
Interest Earned - - 3,818 3,818
Total Revenues 1,341,482 1,341,482 1,312,116 (29,366)
Expenditures:
Bond Principal Retirement 824,200 824,200 824,200
Interest and Fiscal Charges 517,282 517,282 517,258 24
Total Expenditures 1,341,482 1,341,482 1,341,458 24
Excess Revenues Over
(Under) Expenditures - - (29,342) (29,342)
Fund Balance - September 30, 008 741,912 741,912 741,912 -
Fund Balance -September 30, 009 $ 741,912 $ 741,912 $ 712,570 $ (29,342)
66
City of Paris, Texas Schedule 8
Capital Projects Fund
Sch dule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
rom Inception and For the Year Ended September 30, 2009
Prior Current Total Project
Years Year to Date Authorization
Revenues:
Investment Income $ - $ 12,218 $ 12,218 $ -
Total Revenues - 12,218 12,218 -
Expenditures:
City Council - 10,971 10,971 -
Community Development - 776,561 776,561 658,196
Police 506,063 250,714 756,777 851,091
Traffic and Public Lighting - 14,513 14,513 26,700
Highways and Streets - 49,880 49,880 50,000
Total Expenditures 506,063 1,102,639 1,608,702 1,585,987
Excess of Revenues Over
(Under) Expenditures (506,063) (1,090,421) (1,596,484) (1,585,987)
Other Financing Sources (Uses :
Transfers In 506,063 943,196 1,449,259 1,585,987
Transfers Out - (1,513,749) (1,513,749) -
Net Change in Fund Balance $ - (1,660,974) $ (1,660,974) $ -
Fund Balance, September 30, 2008 1,824,300
Fund Balance, September 30, 2009 $ 163,326
67
I
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERNMENTAL FUNDS
City of Paris, Texas Schedule 9
apital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2009 and 2008
2009 2008
Governmental Funds Capital A sets: '
Land $ 5,912,108 $ 5,903,022
Buildings 15,430,302 15,408,265
Improvements Other Than Buildings 4,752,247 3,737,869
Machinery and Equipment 16,934,006 16,727,567
Infrastructure 36,385,088 36,385,088
Construction in Progress 6,979 524,041
Total Governmental Funds apital Assets $ 79,420,730 $ 78,685,852
Investments in Governmental F ds Capital Assets by Source:
General Fund $ 57,070,354 $ 56,600,702
Capital Projects Funds 17,347,495 17,082,269
Donations 5,002,881 5,002,881
Total Investments in Gove ental Funds Capital Assets by Source $ 79,420,730 $ 78,685,852
68
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2009
Improvements Machinery
Other Than and
Function and Activity Land Buildings Buildings Equipment
General Government:
Council $ 339,906 $ 2,457,709 $ 13,971 $ 571,904
Manager - - - 10,187
Attorney - - - 113,768
Clerk - 14,737 - 71,230
Finance - - - 395,261
Total General Government 339,906 2,472,446 13,971 1,162,350
Public Safety:
Police 619,585 5,911,262 781,775 3,489,790
Fire 159,268 2,189,378 - 2,521,295
Total Public Safety 778,853 8,100,640 781,775 6,011,085
Public Works:
Community Development 3,299,676 - 19,831 136,352
Engineering - 10,747 - 182,595
Public Works 125,543 - - 842,073
Parks and Recreation 112,230 92,268 2,954,929 858,000
Solid Waste 626,395 - 42,079 1,128,231
Streets and Highways 138,590 88,220 67,242 1,911,288
Traffic and Public Lighting - - - 117,366
Garage - 95,121 - 71,039
Other Unclassified - - 52,361 25,286
Total Public Works 4,302,434 286,356 3,136,442 5,272,230
Emergency Medical Service - 94,177 - 2,175,418
Cox Field 429,120 3,428,970 741,517 221,929
Library 61,795 1,047,713 78,542 2,090,994
Total Governmental Funds
Capital Assets $ 5,912,108 $ 15,430,302 $ 4,752,247 $ 16,934,006
69
Schedule 10
Infrastructure Total
$ - $ 3,383, 90
- 10,187
- 113,-,68
- 85,967
395,261
3,988, 73
10, 802, 12
4,869, 41
- 15,672, 53
- 3,455, 59
- 193, 42
- 967,(16
- 4,017, 27
- 1,796,-05
36,385,088 38,590, 28
- 117, 66
166,60
- 77,647
36,385,088 49,382, 50
5
- 2,269,'9
4,821, 36
- 3,279,044
$ 36,385,088 $ 79,413,"51
70
Ii
City of Paris, Texas Schedule l l
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Year Ended September 30, 2009
Governmental Funds Governmental Funds
Capital Assets Capital Assets
Function and Activity September 30, 2008 Additions Deductions September 30, 2009
General Government:
Council $ 3,374,404 $ 9,086 $ - $ 3,383,490
Manager 10,187 - - 10,187
Attorney 113,768 - - 113,768
Clerk 85,967 - - 85,967
Finance 395,261 - - 395,261
Total General Government 3,979,587 9,086 - 3,988,673
Public Safety:
Police 9,906,049 896,363 - 10,802,412
Fire 4,839,466 30,475 - 4,869,941
Total Public Safety 14,745,515 926,838 - 15,672,353
Public Works:
Community Development 3,455,859 - - 3,455,859
Engineering 193,342 - - 193,342
Public Works 967,616 - - 967,616
Parks and Recreation 3,837,698 179,729 - 4,017,427
Solid Waste 1,784,505 12,200 - 1,796,705
Streets and Highways 38,564,915 25,513 - 38,590,428
Traffic and Public Lighting 117,366 - - 117,366
Garage 166,160 - - 166,160
Other Unclassified 17,036 60,611 - 77,647
Total Public Works 49,104,497 278,053 - 49,382,550
Emergency Medical Service 2,231,632 125,687 87,724 2,269,595
Cox Field 4,821,536 - - 4,821,536
Library 3,279,044 - - 3,279,044
Total Governmental Funds
Capital Assets $ 78,161,811 $ 1,339,663 $ 87,724 $ 79,413,751
71
i
STATISTICAL SECTION
STATISTICAL SECTION
This part of the City of Pari ' 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 o erall financial health.
Financial Trends Tables 1-4
These schedules conta n trend information to help the reader understand how the
government's financia performance and well-being have changed over time.
Revenue Capacity Tables 5 - 8
These schedules contain information to help the reader assess the government's
most significant local evenue source, the property tax.
Debt Capacity Tables 9-13
These schedules prese t information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability
to issue additional deb in the future.
Demographic and Eco omic Information Tables 14-15
These schedules offer demographic and economic indicators to help the reader
understand the enviro ent within which the government's financial activities
take place.
Operating Information Tables 16-19
These schedules contain service and infrastructure data to help the reader under-
stand how the information in the government's financial report relates to the
services the governme t provides and the activities it performs.
72
City of Paris, Texas
Net Assets by Component
Last Seven Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2003 2004 2005 2006
Governmental Activities:
Invested in Capital Assets,
Net of Related Debt $ 19,842,402 $ 19,947,827 $ 25,293,563 $ 28,935,168
Restricted 11,014,363 7,549,815 5,089,243 1,249,886
Unrestricted 4,715,567 5,790,128 7,192,467 9,619,009
Total Governmental Activities,
Net Assets $ 35,572,332 $ 33,287,770 $ 37,575,273 $ 39,804,063
Business-Type Activities:
Invested in Capital Assets,
Net of Related Debt $ 24,433,769 $ 25,324,447 $ 24,119,931 $ 23,590,438
Restricted 5,668,693 3,935,871 3,936,107 2,864,698
Unrestricted 3,675,892 4,592,176 3,487,041 6,282,200
Total Business-Type Activities,
Net Assets $ 33,778,354 $ 33,852,494 $ 31,543,079 $ 32,737,336
Primary Government:
Invested in Capital Assets,
Net of Related Debt $ 44,276,171 $ 45,272,274 $ 49,413,494 $ 52,525,606
Restricted 16,683,056 11,485,686 9,025,350 4,114,584
Unrestricted 8,391,459 10,382,304 10,679,508 15,901,209
Total Primary Government,
Net Assets $ 69,350,686 $ 67,140,264 $ 69,118,352 $ 72,541,399
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
Table 1
2007 2008 2009
$ 28,296,810 $ 27,214,018 $ 26,663,557
1,3 56,091 2,634,911 952,225
12,344,117 12,724,897 15,119,471
$ 41,997,018 $ 42,573,826 $ 42,735,253
$ 23,735,238 $ 24,810,7 4 $ 26,288,945
3,258,469 2,810,233 3,813,439
6,530,918 7,362,295 7,237,951
$ 33,524,625 $ 34,983,222 $ 37,340,335
$ 52,032,048 $ 52,024,722 $ 52,952,502
4,944,480 5,445,144 4,765,664
18,545,115 20,087,192 22,357,422
$ 75,521,643 $ 77,557,018 $ 80,075,588
74
City of Paris, Texas
Changes in Net Assets
Last Seven Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal 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
75
Table 2
2008 2009
$ 2,076,554 $ 3,590,461
467,865 449,227
9,737,225 9,498,749
7,705,564 6,905,252
3,174,713 3,133,324
790,216 730,925
262,533 294,089
557,588 507,788
24,772,258 25,109,815
10,959,294 11,197,470
$ 35,731,552 $ 36,307,285
1,029,991 676,229
1,690,210 1,693,133
2,710,279 2,638,943
22,464 21,335
1,407,529 1,317,832
55,152 224,458
6,915,625 6,571,930
13,012,253 13,616,713
$ 19,927,878 $ 20,188,643
76
I
City of Paris, Texas
Changes in Net Assets
Last Seven Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2003(1) 2004 2005 2006 2007
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) $(15,172,473)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property Taxes $ 7,260,943 $ 7,456,850 $ 7,733,700 $ 7,583,269 $ 7,924,453
Sales Taxes 4,726,406 4,794,743 5,066,926 5,401,371 5,673,616
Franchise 3,034,049 2,465,130 3,062,589 3,053,671 3,082,183
Hotel Occupancy 310,920 302,334 314,404 396,333 430,991
Investment Earnings 155,320 127,251 112,310 342,306 571,678
Grants, Donations,
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 243,952 191,576 70,731 284,899 367,601
Transfers 2,603,160 (1,235,454) (4,588,598) (1,090,000) (1,100,000)
Contribution - 593,660 602,111 32,600 -
Special Item - (408,088) - - -
Total Business-Type
Activities 2,847,112 (858,306) (3,915,756) (772,501) (732,399)
Total Primary
Government $ 15,731,590 $ 14,594,923 $ 17,381,374 $ 17,095,017 $ 18,152,717
Change in Net Assets
Governmental
Activities $ (4,512,215) $ (2,284,562) $ 4,287,503 $ 2,228,790 $ 2,192,955
Business-Type
Activities 3,612,227 74,140 (2,309,415) 1,194,257 787,289
Total Primary
Government $ (899,988) $ (2,210,422) $ 1,978,088 $ 3,423,047 $ 2,980,244
(1) Fiscal Year 2003 was the ini ial year of implementation of GASB Statement No. 34.
Fiscal years prior to 2003 were not restated in GASB No. 34 format.
77
i
Table 2
Continued
2008 2009
$(17,856,633) $(18,537,885
2,052,959 2,419,243
$(15,803,674) $(16,118,642
$ 7,904,936 $ 7,794,381
5,696,174 6,441,260
2,898,214 2,859,338
434,441 526,998
399,676 174,636
1,100,000 902,699
18,433,441 18,699,312
309,586 212,479
(1,100,000) (902,699
196,052 628,090
(594,362) (62,130
$ 17,839,079 $ 18,637,182
$ 576,808 $ 161,427
1,458,597 2,357,113
$ 2,035,405 $ 2,518,540
78
City of Paris, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2000 2001 2002 2003
General Fund
Reserved $ 213,667 $ 190,273 $ 171,248 $ 217,610
Unreserved 6,290,822 4,811,122 6,085,946 5,502,760
Total General Fund $ 6,504,489 $ 5,001,395 $ 6,257,194 $ 5,720,370
All Other Governmental Funds
Reserved $ 6,573,994 $ 5,275,529 $ 10,663,363 $ 8,071,051
Unreserved, reported in:
Special Revenue Funds 408,946 570,378 774,466 800,930
Permanent Funds 45,237 47,516 76,261 77,454
Total All Other Governme tal Funds $ 7,028,177 $ 5,893,423 $ 11,514,090 $ 8,949,435
79
Table 3
Fiscal Year
2004 200 2006 2007 2008 2009
$ 155,608 $ 153,043 $ 118,925 $ 202,440 $ 251,411 $ 215,128
3,735,128 5,375, 49 8,874,883 11,581,136 11,478,815 13,751,446
$ 3,890,736 $ 5,528, 92 $ 8,993,808 $ 11,783,576 $ 11,730,226 $ 13,966,574
$ 7,776,342 $ 4,831, 54 $ 997,192 $ 1,440,583 $ 2,704,009 $ 1,008,826
909,520 1,006, 85 908,559 924,573 811,645 792,271
(196,478) 73,373 76,552 80,468 82,762 84,365
$ 8,489,384 $ 5,911, 12 $ 1,982,303 $ 2,445,624 $ 3,598,416 $ 1,885,462
80
City of Paris, Texas
Changes in Fund Balances of Governmental Funds (1)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2000 2001 2002
Revenues
Taxes $12,772,897 $13,434,372 $13,748,657
Licenses and Permits 53,451 84,660 114,720
Fines and Fees 452,700 535,496 545,236
Use of Money and Property 348,828 305,362 204,846
Public Safety 1,800 1,800 1,800
Sanitation Fees 1,547,223 1,380,109 1,382,796
Health 1,567,331 2,353,402 2,844,927
Intergovernmental 1,026,441 1,088,493 2,197,149
Other 426,702 998,580 664,848
Total Revenues 18,197,373 20,182,274 21,704,979
Expenditures
General Government 1,521,641 1,751,664 2,340,802
Finance 505,245 440,423 439,535
Public Safety 7,928,492 8,795,690 8,222,361
Public Works 5,388,190 7,730,857 6,004,759
Health Department 693,691 691,507 747,528
Emergency Medical Service 1,376,163 1,790,374 1,824,006
Insurance Trust Fund - - -
Library 682,798 729,600 720,407
Cox Field 160,870 171,691 130,929
Other 15,459 19,501 18,460
Debt Service
Interest 212,109 640,983 531,561
Principal 195,000 290,000 390,000
Capital Outlay - - -
Total Expenditures 18,679,658 23,052,290 21,370,348
Excess of Revenues Over (Under) Expenditures (482,285) (2,870,016) 334,631
Other Financing Sources (Uses)
Proceeds of Capital Leases - - -
Transfers In 1,036,825 1,095,535 1,100,000
Transfers Out - -
Total Other Financing Sources ses) 1,036,825 1,095,535 1,100,000
Adjustment Due to Change in Accounting Principle - 750,000 -
Increase (Decrease) in Reserve or Inventory 52,951 (23,394) (19,026)
Net Change in Fund Balances $ 607,491 $ (1,047,875) $ 1,415,605
Debt Service as a Percentage o Noncapital Expenditures 2.37% 4.65% 4.67%
Source: City of Paris
Notes: (1) Includes General d Debt Service Fund for years through 2002, (2) GASB 34 adopted,
(3) Included in General Fund 2005
81
Table 4
Fiscal Year
2003(2) 2004 2005 2006 2007 2008 2009
$15,323,499 $14,959,510 $16,109,433 $16,435,160 $17,116,584 $16,909,018 $17,606,479
80,666 73,163 98,611 87,137 106,997 101,776 171,906
472,857 501,124 556,895 543,606 571,165 652,804 554,424
265,980 247,260 357,262 493,234 721,799 532,435 317,028
172,955 208,878 230,029 212,729 34,151 67,335 65,283
1,349,711 1,346,443 1,361,406 1,287,138 1,488,874 1,319,923 1,306,867
2,043,589 2,246,352 2,083,448 2,489,961 2,935,839 2,646,417 2,583,958
2,715,441 2,493,221 2,272,486 1,867,098 613,665 1,504,435 1,575,080
302,489 852,469 470,791 247,234 374,545 302,120 221,114
22,727,187 22,928,420 23,540,361 23,663,297 23,963,619 24,036,263 24,402,139
1,577,462 1,612,645 1,545,542 1,210,298 966,627 962,561 1,075,990
476,883 533,799 508,968 549,079 414,080 448,951 430,364
8,675,218 9,070,046 9,136,810 8,653,589 8,564,024 9,283,682 9,303,726
5,957,419 6,473,823 5,324,999 5,193,512 5,518,798 5,562,625 5,591,689
800,717 797,474 844,625 822,734 816,419 925,195 900,945
1,790,799 1,844,574 1,862,313 1,890,825 1,979,104 2,128,274 2,111,069
879,643 - (3) - - - -
1,034,918 795,347 601,885 621,327 570,394 675,209 616,148
132,347 133,295 134,542 143,620 117,574 145,052 180,364
505,553 484,044 535,395 60,011 752,256 1,057,566 2,360,244
744,280 796,024 670,102 622,773 596,043 563,669 518,682
862,838 1,225,517 1,065,372 864,958 968,598 1,304,230 847,851
3,664,855 1,833,95 3,163,974 4,550,646 1,269,778 1,028,778 808,089
26,223,289 26,480,185 25,394,527 25,183,372 22,533,695 24,085,792 24,745,161
(3,496,102) (3,551,76 (1,854,166) (1,520,075) 1,429,924 (49,529) (343,022)
59,980 87,11 - - 639,650 - -
1,352,661 1,929,831 1,799,397 1,152,590 1,984,963 2,764,641 3,359,644
(1,062,866) 694,37 (881,956) (62,590) (884,963) (1,664,641) (2,456,945)
349,775 1,322,56 917,441 1,090,000 1,739,650 1,100,000 902,699
44,848 (60,48 (3,091) (34,118) 83,515 48,971 (36,283)
$ (3,101,479) $(2,289,68) $ (939,816) $ (464,193) $ 3,253,089 $ 1,099,442 $ 523,394
7.12% 8.20% 7.81% 7.74% 7.60% 8.17% 5.46%
82
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
1999 1999-00 $5,332,833 $ 5,159,009 96.74% $ 96,902 $ 5,255,911
2000 2000-01 6,132,621 5,854,458 95.46 101,792 5,956,250
2001 2001-02 6,216,227 6,099,899 98.13 113,775 6,213,674
2002 2002-03 7,303,340 7,003,492 95.89 104,151 7,107,643
2003 2003-04 7,470,691 7,180,706 96.12 97,926 7,278,632
2004 2004-05 7,762,498 7,422,657 95.62 112,261 7,534,918
2005 2005-06 7,670,001 7,312,326 95.34 89,160 7,401,486
2006 2006-07 7,935,867 7,683,568 96.82 77,066 7,760,634
2007 2007-08 7,952,325 7,696,134 96.78 (6,524) 7,689,610
2008 2008-09 7,837,300 7,579,213 96.71 - 7,579,213
Source:
City of Paris
Lamar County Appraisal District
Note:
(1) Taxes stated are for G neral Fund and Debt Service Funds.
83
Table 5
Ratio Ratio of
of Total Delinquent
Collections Outstanding Taxes
To Total Delinquent To Total
Tax Levy Taxes Tax Levy
98.56% $ 27,310 0.51%
97.12 32,054 0.52
99.96 31,858 0.51
97.32 41,655 0.57
97.43 60,369 0.81
97.07 74,362 0.96
96.50 75,142 0.98
97.79 74,108 0.93
96.70 95,036 1.20
96.71 141,530 1.81
84
I
City of Paris, Texas Table 6
Property Tax Rates - All Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited
North Paris
Fiscal City of Lamar Paris Chisum Lamar Junior
Year Paris County ISD ISD ISD College
1999-00 $ 0.58598 $ 0.3593 $ 1.5140 $ 1.3200 $ 1.3328 $ 0.1664
2000-01 0.61000 0.3536 1.5340 1.2700 1.4555 0.1637
2001-02 0.61000 0.3706 1.5800 1.2750 1.5555 0.1758
2002-03 0.69500 0.3817 1.5900 1.6550 1.6455 0.1804
2003-04 0.69500 0.3890 1.6030 1.6550 1.6455 0.1932
2004-05 0.69225 0.4113 1.5920 1.6480 1.5890 0.1922
2005-06 0.69225 0.4354 1.5820 1.6680 1.5453 0.1922
2006-07 0.59225 0.4429 1.4520 1.5340 1.4200 0.1922
2007-08 0.56000 0.4429 1.4450 1.1950 1.1680 0.1980
2008-09 0.52000 0.4329 1.4450 1.2400 1.1581 0.1874
Source:
Lamar County Appraisal Distr ct
85
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
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 2004-05 660,183,973 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
2007 2007-08 947,674,496 1,307,620,265 471,431,700 547,352,320
2008 2008-09 999,644,811 1,428,948,675 486,833,180 602,795,000
Sources:
City of Paris
Lamar County Appraisal District
86
Table 7
Total Assessed
Estimated Value as a
Assessed Actual Percentage of Total Direct
Exemptions Value Value Actual Value Tax Rate
$ 432,370,790 $ 10,083,681 $1,342,454,471 67.79% 0.58598%
605,341,391 1,005,333,943 1,610,675,334 62.42 0.61000
771,323,772 1,019,036,665 1,790,360,437 56.92 0.61000
704,315,884 1,050,874,296 1,755,190,180 59.87 0.69500
682,386,693 1,074,746,887 1,757,133,580 61.16 0.69500
616,894,119 1, 21,338,793 1,738,232,912 64.51 0.69225
630,507,298 1, 07,979,488 1,738,486,786 63.73 0.69225
431,693,714 1, 39,952,274 1,771,645,988 75.63 0.59225
435,866,389 1, 19,106,196 1,854,972,585 76.50 0.56000
545,265,684 1, 86,477,991 2,031,743,675 73.16 0.52000
87
~I
City of Paris, Texas
Principal Property Taxpayers
September 30, 2009 and 2000
Unaudited
2009
Percentage
Taxable of Total
Assessed Taxable
Taxpayer Type of Business Value Rank Assessed Value
Lamar Power Partners Electric Utility $ 225,707,100 1 16.06%
Kimberly Clark Corp. Disposable Diapers 114,657,809 2 8.16
Campbell Soup Co. Food Manufacturing 46,979,380 3 3.34
Essent - PRMC Hospital 36,065,360 4 2.57
Paris Generation Electric Utility 24,952,240 5 1.78
Campbell Soup Supply Warehouse 24,778,414 6 1.76
Silgan Can Company Can Manufacturing 23,127,200 7 1.65
Oncor Electric Delivery Electric Utility 20,880,950 8 1.49
Kimberly Clark Supply Warehouse 15,268,470 9 1.09
Essent - PRMC Clinics 14,905,790 10 1.06
Sara Lee Bakery Food Manufacturing - - -
S. W. Bell Telephone Utility - - -
Paris Packaging Product Packaging - - -
General Foam Plastics Plastic Products - - -
Wal-Mart Discount Store - - -
Totals $ 547,322,713 38.96%
Source:
Lamar County Appraisal istrict
88
Table 8
2000
Percentage
Taxable of Total
Assessed Taxable
Value Rank Assessed Value
118,268,610 1 11.76
69,071,060 2 6.87
62,834,200 3 6.25
8,626,920 8 0.85
15,018,560 4 1.49
13,827,440 5 1.37
9,668,920 6 0.96
9,664,330 7 0.96
8,009,250 9 0.79
7,299,950 10 0.72
$ 322,289,240 32.02%
89
City of Paris, Texas Table 9
Ratio of Net General Obligation Bonded Debt to
Asse sed Value and Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Unaudited
Ratio
of Net Net
General General
Bonded Bonded
Taxable Gross Less Debt Debt To Debt
Fiscal Estimated Assessed General Service Net General Assessed Per
Year Population Value Bonded Debt Funds Bonded Debt Value Capita
1999-00 26,978 $ 910,083,681 $10,105,000 $ 319,913 $ 9,785,087 1.08% $ 362.71
2000-01 26,017 1,0 5,333,943 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 1,0 0,874,296 19,240,000 911,685 18,328,315 1.74 698.09
2003-04 26,374 1,0 4,746,887 18,235,000 1,087,396 17,147,604 1.60 650.17
2004-05 26,493 1,1 1,338,793 13,776,800 725,394 13,051,406 1.16 492.64
2005-06 26,612 1,1 7,979,488 13,054,000 751,574 12,302,426 1.11 462.29
2006-07 26,732 1,3 9,952,274 12,296,600 736,869 11,559,731 0.86 432.43
2007-08 26,852 1,419,106,196 11,504,600 741,912 10,762,688 0.76 400.82
2008-09 26,972 1,486,477,991 10,680,400 712,570 9,967,830 0.67 369.56
Source:
City of Paris
90
~I
City of Paris, Texas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Unaudited
Governmental Activities Business-Type Activities
General
Fiscal Obligation Capital Water and Capital
Year Bonds Leases Other Sewer Bonds Leases Other
2000 $ 10,105, 00 $228,537 $ 80,383 $38,775,000 $ 85,703 $ 775,187
2001 9,815, 00 708,454 74,725 36,630,000 53,645 749,679
2002 15,485, 00 762,691 68,784 35,605,000 35,349 723,370
2003 19,240, 00 609,833 62,546 29,565,000 21,329 696,236
2004 18,235, 00 476,429 55,996 27,620,000 6,459 668,251
2005 13,776, 00 238,734 49,119 29,053,200 - 639,388
2006 13,054, 00 103,798 41,897 26,451,000 - 609,619
2007 12,296, 00 539,832 34,315 23,733,400 101,665 578,917
2008 11,504, 00 15,291 26,354 20,890,400 56,793 547,251
2009 10,680, 00 - 17,994 17,914,600 - 514,590
Source:
City of Paris
(1) Information not available.
(2) See Table 14 for pe sonal income and population data
91
Table 10
Total Percentage
Primary of Personal Per
Government Income (2 Capita
$ 50,049,810 4.64% $ 1,855
48,031,503 4.4 1,846
52,680,194 4.85 ) 2,016
50,194,944 4.4 1,912
47,062,135 4.0 1,784
43,757,241 3.6 1,652
40,260,314 3.1 1,513
37,284,729 (1 1,395
33,040,689 (1 1,231
29,127,584 (1 1,080
92
i
City of Paris, Texas Table 11
Direct and Overlapping
Governmental Activities Debt
September 30, 2009
Unaudited
General Percent Amount
Obligation Applicable Applicable
Bonded Debt to to
Taxing J isdiction Outstanding Government Government
City of Paris $ 10,680,400 100% $ 10,680,400
Lamar County 3,404,961 62.75 2,136,613
Paris Independent School District 57,137,301 49.30 28,168,689
Chisum Independent School District 11,955,000 47.75 5,708,512
North Lamar Independent School District 3,240,850 32.67 1,058,785
Paris Junior College - 100 -
Total Direct and Overlapp g Funded Debt $ 86,418,512 $ 47,752,999
Per Capita Direct and Over apping Funded Debt $ 1,770.46
Per Capita Direct Debt - S note $ 395.98
Sources:
Lamar County Appraisal District
Lamar County
Paris Independent School District
Chisum Independent Sch of District
North Lamar Independent School District
Paris Junior College
Note: $2,134,600 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. The percentage overlap
is based on overlapping geographic areas.
93
City of Paris, Texas Table 12
Legal Debt Margin Information
September 30, 2009
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 $ 00 valuation to be applied to debt service. The City levied a tax rate of $.52 per $100
valuation for the fiscal year ended September 30, 2009.
Source:
City of Paris
94
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
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
2004-05 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
2007-08 13,321,839 6,873,535 6,448,304 1,740,867 394,042 2,134,909 3.02
2008-09 13,829,192 7,244,274 6,584,918 1,628,600 341,402 1,970,002 3.34
Notes:
(1)* Gross Revenues = Operating and Non-Operating Revenue of the Water and Sewer Fund
excluding Contribu ion Revenue
(2)** Operating Expenses excluding depreciation
(3)*** Agent fees not included
Sources:
Southwest Securities Offial Statement
Rauscher Pierce Refsnes Official Statement
City of Paris CAFR
95
i
City of Paris Table 14
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Paris, Tx.
Paris, Tx. Micropolitan Paris, Tx.
Paris, Tx. Micropolitan Service Area Micropolitan
Micropolitan Service Area Per Capita Service Area Percent
Calendar Service Area Personal Personal Median School Unemployment
Year Population Income Income Age Enrollments (2) Rate
1999 48,013 $ 1,043,316,000 $ 21,730 38.2 11,956 5.3%
2000 48,499 1,079,738,000 22,263 36.9 11,986 5.9
2001 48,075 1,072,093,000 22,300 37.9 12,794 6.7
2002 49,096 1,083,295,000 22,065 36.9 12,078 8.1
2003 49,480 1,129,645,000 22,830 36.9 12,203 6.5
2004 49,598 1,168,310,000 23,556 37.5 12,272 7.0
2005 49,644 1,197,342,000 24,119 37.5 12,201 6.1
2006 49,863 1,277,234,000 25,615 37.5 12,139 5.5
2007 49,090 1,349,975,000 27,500 37.5 12,441 5.2
2008 49,286 (1) (1) 37.2 13,156 5.5
(1) Information not available
(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 Sch of District
Chisum Independent School District
Paris Junior College
Chamber of Commerce
Bureau of Economic Analysis
96
City of Paris, Texas Table 15
Principal Employers (Major Employers)
Fiscal Year End 2009 and 2000
Unaudited
2009 2000
Percentage Percentage
of Total of Total
city city
Taxpayer Employees Rank Employment Employees Rank Employment
Essent - PRMC 1,000 1 8.87% 1,225 1 12.34%
Kimberly Clark Corp. 850 2 7.54 925 3 9.31
Campbell Soup Co. 800 3 7.10 1,200 2 12.08
Turner Industries 700 4 6.21 520 6 5.23
Sara Lee Bakery 600 5 5.32 660 4 6.64
T C I M 550 6 4.88 600 5 6.04
We - Pack 300 7 2.66 276 8 2.78
R K Hall Construction 250 8 2.21 - - -
Paris Packaging 176 9 1.56 172 10 1.73
Silgan Can Company 90 10 0.79 - - -
Paris Industries - - - 300 7 3.02
Buster Paving - - - 265 9 2.66
5,316 47.14% 6,143 61.83 %
* Essent-PRMC is the hospital resulting from the merging of St. Joseph Hospital and McCuistion Hospital. The 1999
employment number for Ess nt is the combined employment of these two employers. Sara Lee was formerly Earth
Grains and Turner Industries was formerly Babcock and Wilcox. Silgan Can was part of Campbell Soup.
* * Estimate
Source: Chamber of Commerce
U.S. Department of Labor
97
City of Paris, Texas
Operating Indicators by Function
Last Ten Fiscal Years
Unaudited
GOVERNMENT:
Date of Incorporation - 1836
Current Charter - Adopted Novem er 2, 1948
Fiscal Year
2000 2001 2002 2003
FACILITIES:
Airports:
Number of Airports 1 1 1 1
Fire Protection:
Number of Stations 3 4 4 4
Number of Fire Hydrants 1,018 971 1,039 1,042
Number of Employees (certified) 57 57 56 56
Employees Per 1,000 Population 2.11 2.19 2.14 2.13
Libraries:
Number of Libraries 1 1 1 1
Number of Volumes 111,232 129,083 121,732 123,626
Circularization of Materials 321,549 332,750 347,290 337,947
Circulation Per Capita 11.90 12.78 13.29 12.87
Library Cards in Force 22,239 24,377 26,644 29,247
Police Protection:
Number of Stations 1 1 1 1
Number of Employees (certified) 59 61 62 65
Employees Per 1,000 Population 2.18 2.34 2.37 2.47
Parks and Recreation:
Parks' Acres Developed 87 87 87 87
Parks' Acres Undeveloped 131 221 221 221
City Parks 22 24 24 24
Streets:
Paved Lanes - Miles 197 199 199 199
Unpaved Streets - Miles 11 10 10 10
WATER AND SEWER UTILITY:
Average Daily Water Comsumptio - Gallons 12,443,571 12,221,421 11,405,367 10,905,049
Maximum Day's Water Consumption - Gallons 22,080,000 21,129,651 20,271,851 17,075,000
Annual Water Consumption - Gallons 4,554,347,000 4,460,818,744 4,162,959,000 3,980,343,000
Water Mains - Miles 185 190 190 208
Water Connections - Metered 10,003 10,137 10,183 10,294
Sewer Mains - Miles 189 205 205 195
Area Miles 42.89 42.89 42.89 42.89
Number of Full-Time Employees 358 362 362 369
Source: City of Paris
98
Table 16
Fiscal Year
2004 2005 2006 2007 2008 2009
1 1 1 1 1 1
4 4 4 4 4 4
1,045 1,082 1,078 1,093 1,112 1,173
54 48 48 48 48 48
2.05 1.81 1.80 1.80 1.79 1.77
1 1 1 1 1 1
106,687 102,801 106,955 109,789 106,607 97,243
308,527 210,956 195,944 187,547 162,278 162,957
11.70 7.96 7.36 7.02 6.07 6.04
26,406 15,551 21,164 23,285 12,011 12,011
1 1 1 1 1 1
62 62 62 63 62 61
2.35 2.34 2.33 2.35 2.31 2.26
87 87 87 87 87 87
221 221 221 221 221 221
24 24 24 24 24 24
199 199 199 171 172 160
10 10 10 3 3 3
10,838,754 10,619,268 12,435,000 10,335,000 10,678,976 10,185,500
16,257,000 18,603,000 19,557,000 16,842,000 18,360,000 20,394,000
2,966,984,000 3,876,033,000 4,538,690,000 3,774,782,000 3,912,548,000 3,624,4293000
208 208 208 183 184 184
95941 9,865 9,803 9,979 9,888 9,905
195 195 195 189 190 190
42.89 42.89 42.89 39.18 39.18 39.18
367 352 316 319 321 322
99
City of Paris, Texas
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2000 2001 2002 2003
Function:
Public Safety
Police
Stations 1 1 1 1
Patrol Units 11 11 11 11
Fire Stations 3 4 4 4
Sanitation
Collection Trucks - - -
Highways and Streets
Streets (Miles) 208 209 209 209
Streetlights N/A N/A N/A N/A
Traffic Signals* - - -
Culture and Recreation
Parks Acreage 218 308 308 308
Swimming Pools - Municipal 1 1 1 1
Tennis Courts - - -
Community Centers 1 1 1 1
Water
Water Mains (miles) 185 190 190 208
Fire Hydrants 1,018 971 1,039 1,042
Maximum Daily Capacity 36,000 36,000 36,000 36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles) 189 205 205 195
Maximum Daily Treatment Capa ity 7,250 7,250 7,250 7,250
(thousands of gallons)
Source: Various City Departments
* City has none. All inside City limits belong to the State of Texas.
100
Table 17
Fiscal Year
2004 200 2006 2007 2008 2009
1 1 1 1 1 1
11 11 11 11 10 10
4 4 4 4 4 3
- 13 8 8 8
209 2C9 209 174 174 160
N/A 2,160 2,198 2,212 2,224 2,217
308 30 308 308 308 308
1 1 1 1 1
14 14 14 14
1 1 1 1 1
208 20 208 183 184 184
1,045 1,08 1,082 1,093 1,112 1,173
36,000 36,00 36,000 36;000 36,000 36,000
195 19 195 189 190 190
7,250 7,25 7,250 7,250 7,250 7,250
101
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
2000 6 $ 7,121,494 75 $ 6,814,061 $ 13,935,555
2001 5 13,307,866 85 9,074,912 22,382,778
2002 7 13,476,520 90 8,862,903 22,339,423
2003 8 5,092,241 65 7,476,004 12,568,245
2004 6 6,571,777 67 4,420,392 10,992,169
2005 2 15,372,158 47 4,870,500 20,242,658
2006 3 6,682,498 46 3,643,500 10,325,998
2007 2 24,575,805 31 2,943,125 27,518,930
2008 1 20,329,436 13 1,167,500 21,496,936
2009 7 51,951,894 10 1,447,675 53,399,569
Source:
City of Paris
102
City of Paris, Texas
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2000 2001 2002 2003
Function:
Manager 2.0 2.0 3.0 3.0
Attorney 5.0 5.0 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* 84.0 84.0 80.0 88.0
Fire 58.0 59.0 58.0 57.0
Community Development - - 6.5 6.5
Engineering 11.0 11.0 7.5 6.5
Public Works 3.0 3.0 3.0 4.0
Parks & ROW 8.5 15.5 16.5 15.5
Sanitation 20.5 17.5 17.5 19.5
Streets 29.0 22.0 22.0 22.0
Traffic & Lighting 3.5 2.5 2.5 2.5
Garage 5.0 7.0 6.0 6.0
EMS 20.0 25.0 26.0 26.0
Airport 2.0 2.0 2.0 2.0
Library 14.0 14.0 14.0 15.0
Warehouse 2.5 2.5 2.5 2.5
Water Billing 11.0 11.0 11.0 10.0
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 26.5 26.5 26.5 25.5
Lift Stations 4.0 4.0 4.0 4.0
Information Technology - - - -
Totals 358.0 362.0 362.0 369.0
* Includes related grant employees.
Seasonal employees not included.
Source: City of Paris
103
Table 19
Fiscal Year
2004 2005 2006 2007 2008 2009
3.0 2.0 1.0 1.0 2.0 2.0
5.0 5.0 3.0 3.0 3.0 4.0
4.0 4.0 3.0 3.0 3.0 3.0
2.0 2.0 2.0 2.0 3.0 3.0
5.5 5.5 5.5 5.5 5.5 5.5
88.0 86.0 82.0 87.0 85.0 84.0
58.0 58.0 49.0 52.0 52.0 52.0
6.5 8.5 7.5 6.5 6.5 5.5
7.5 7.5 6.5 6.5 6.5 6.5
4.0 3.0 2.5 2.5 2.5 3.0
16.5 12.0 9.0 9.0 9.5 9.5
17.5 17.5 16.5 12.5 12.5 12.0
22.0 21.0 15.0 15.0 15.0 15.0
2.5 2.5 2.0 2.0 2.0 2.0
6.0 4.0 4.0 6.0 6.0 6.0
26.0 26.0 26.0 26.0 26.0 26.0
2.0 1.0 1.0 2.0 1.0 0.0
14.0 10.5 10.5 10.5 11.5 11.5
2.5 2.0 2.0 1.0 2.0 2.0
10.0 9.0 7.0 7.0 7.5 8.0
17.5 16.5 15.5 15.5 15.5 15.5
12.5 12.5 11.5 11.5 11.0 11.5
7.5 7.5 7.5 7.5 7.5 7.5
24.5 25.5 23.5 21.5 22.5 22.5
3.0 3.0 3.0 3.0 3.0 3.0
- - - 1.0 1.0 2.0
367.5 352.0 316.0 320.0 322.5 322.5
104
CONTINUING DISCLOSURE INFORMATION FOR THE
CITY OF PARIS, TEXAS
ASSESSED VALUATION TABLE CD-1
2009-2010 Actual Market Value of T able Property (100% of Actual)(') $ 2,069,522,629
Less Exemptions:
Local, Optional Over-65 and/or Disabled Homestead Exemptions $47,114,166
Disabled and Deceased Veterans' Exemptions 4,966,623
Productivity Loss 24,284,890
Partially Exempt Property 120,375
Freeport 118,200,154
Pollution Control / Solar 50,342,085
Abatement Loss 50,841,460
Cap Loss (10%) 9,632,562
Historical / Other 29,220
Totally Exempt Property 259,234,720 564,766,255
2009-2010 Net Taxable Assessed Val ation 1,504,756,374
Frozen Taxable Value Loss 99,462,339 N
Freeze Adjusted Net Taxable Assessed Valuation $ 1,405,294,035
See "AD VALOREM TAX PROCEDU S" and "CITYAPPLICATION OF THE PROPERTY TAX CODE" in the
Official Statement for a description the Issuer's taxation procedures.
rol The City adopted the tax freeze for per ons 65 vears ofa¢e or old on November 4, 2008. The 2008 Tax Year values
will be used as the "Base Values" an the first freeze loss will occur in the 2009 Tax Year.
Source: Lamar County Appraisal District
GENERAL OBLIGATION BO ED DEBT PRINCIPAL TABLE CD-2
General Obligation Debt Principal utstanding: (As of February 1, 2010)
Combination Tax and Revenue C rtificates of Obligation, Series 2002 $ 4,280,000
General Obligation Refunding Bonds, Series 2003 3,420,000
General Obligation Refunding Bonds, Series 2010 17,075,000 W
Total Gross General Obligation Debt Principal Outstanding: 24,775,000 (8)
Current Issue General Obligation Debt Principal
Combination Tax and Revenue C rtificates of Obligation, Series 2010 (the "Certificates") 3,005,000
(Scheduled to be delivered April 8, 2010)
Total Gross General Obligation Debt Principal Outstanding Following the Issuance of the Bonds: 27,780,000
Less: Self-Supporting General Obligation Debt Principal
General Obligation Refunding B nds, Series 2003 (52.00%) $ 1,778,400
General Obligation Refunding B nds, Series 2010 (77.38%) 13,212,635
Total Self-Supporting General Obligat on Debt Outstanding Following the Issuance of the Bonds: $ 14,991,035
Total Net General Obligation Debt Pri cipal Outstanding Following the Issuance of the Bonds: $ 12,788,965
General Obligation Interest and Sinking Fund Balance as of September 30, 2009 (Unaudited) $ 1,016,080
Ratio of Gross General Obligation De Principal to 2009-2010 Net Taxable Assessed Valuation 1.98%
Ratio of Net General Obligation Debt Principal to 2009-2010 Net Taxable Assessed Valuation 0.91%
2009-2010 Freeze Adjusted Net Taxable Assessed Valuation $ 1,405,294,035
Population: 1980 - 25,498; 1990 - 24,699; 2000 - 25,898 Current (Estimate) 26,972
Per Capita 2009-2 10 Net Taxable Assessed Valuation $ 52,102
Per Capita Gross General Obligation Debt Principal $ 1,030
Per Capita Net General Obligation Debt Principal $ 474
°i Includes principal amount of $10, 750, 00 that was orizinal1v issued as water and sewer svstem revenue bonds and were
were refunded as general obligation bonds from proceeds of the Series 2010 GO Refunding Bonds.
105
PRINCIPAL TAXPAYERS 2009 TABLE CD-3
2009 Net Taxable Assessed
Name Type of Property Assessed Valuation Valuation
Lamar Power Partners LP Electric Utility $ 225,707,100 16.06%
Kimberly Clark Corporation Disposable Diaper Manufacturing 114,657,809 8.16%
Campbell Soup Food Manufacturing 46,979,380 3.34%
Essent PRMC LP Health Care Services / Hospital 36,065,360 2.57%
Paris Generation LP Utility 24,952,240 1.78%
Campbell Soup Supply LLC Food Manufacturing Warehouse 24,778,414 1.76%
Silgan Can Company Can Manufacturing 23,127,200 1.65%
ONCOR Electric Delivery Company Electric Utility 20,880,950 1.49%
Kimberly Clark Corporation Warehouse 15,268,470 1.09%
Essent PRMC LP Health Care Services / Clinic 14,905,790 1.06%
fi 547.322.713
Total
Based on a 200 Freeze Adjusted Net Taxable Assessed Valuation of $ 1,405,294,035
Source: Lamar County Appraisal Dist ict
PROPERTY TAX RATES AND COLLECTIONS (a) TABLE CD-4
Tax Net Taxable Tax Tax % Collections Year
Year Assessed Valuation (b) Rate Levy Current Total Ended
2000 $ 1,005,333,943 $ 0.61000 $ 6,132,621 95.46% 97.14% 9-30-01
2001 1,019,160,711 0.61000 6,216,227 98.13 99.96 9-30-02
2002 1,050,874,296 0.69500 7,303,340 95.89 97.31 9-30-03
2003 1,074,746,887 0.69500 7,470,691 96.12 97.40 9-30-04
2004 1,121,338,793 0.69225 7,762,498 95.62 97.00 9-30-05
2005 1,107,979,488 0.69225 7,670,001 95.34 96.36 9-30-06
2006 1,339,952,274 0.59225 7,935,867 96.82 97.53 9-30-07
2007 1,419,106,196 0.56000 7,952,325 96.78 96.78 9-30-08
2008 1,507,138,018 0.52000 7,721,000 98.02 98.02 9-30-09
2009 1,405,294,035 0.52000 7,307,529 84.83 (d) 84.83 (d) 9-30-10
Note: Although "Total" tax collectio percentages in this table include delinquent tax collections, they are allocated to the year they
were originally levied instead o the year in which they were collected.
See "AD VALOREM TAX PROCE URES" and "CITY APPLICATION OF THE PROPERTY TAX CODE" in the Official Statement. for
a description of the Issuer's taxation procedures.
(h) Certified Values may change during, the tax year due to various supplements and protests, and valuations reported on a different date may
not match those shown on this table. Net Taxable Assessed Valuations for tax years 1998 through 2007 are as shown in the City's
2008 Comprehensive Annual Financial Report.
2008 Tax Year.figures are as of Sep ember 30, 2009 (Audited).
( d) Current 2009 Tax Year figures are its of February 1, 2010.
Source: The Lamar County Appraisal District, and the City's 2008 Comprehensive Annual Financial Report.
TAX RATE DISTRIBUTION TABLE CD-5
2009-10 008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
General Fund $0.42439 0.43113 $0.46526 $0.49294 $0.56650 $0.57977 $0.57289 $0.56104
I & S Fund 0.09561 0.08887 0.09474 0.09931 0.12575 0.11248 0.12211 0.13396
TOTAL $4 4~ $
Sources: Texas Municipal Report publ shed by the Municipal Advisory Council of Texas and the Lamar County Appraisal District.
106
MUNICIPAL SALES TAX TABLE CD-6
The Issuer has adopted the provisions o 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 1/4 cent sales tax for economic development purposes. Levy of the additional sales taxes began
on October 1, 1993, and the City receive its first payment in December, 1993. Collections on a fiscal year basis are as follows:
City Collections as Equivalent of
Fiscal Tot d 1.00% 0.25% % of Ad Valorem Ad Valorem 0.25%
Year Colle ted city Prop Tax Red Tax Levy Tax Rate EDC
1999-00 $ 5,6 0,318 $ 3,746,879 $ 936,720 87.83% 0.51 $ 936,720
2000-01 5,4 4,563 3,629,708 907,427 73.98 45.13 907,427
2001-02 5,4 4,993 3,609,995 902,499 72.59 44.28 902,499
2002-03 5,6 9,187 3,746,125 936,531 64.12 44.56 936,531
2003-04 5,7 2,791 3,855,194 963,798 64.51 44.83 963,798
2004-05 6,0 5,911 4,003,941 1,000,985 64.48 44.64 1,000,985
2005-06 6,4 0,845 4,293,897 1,073,474 69.98 48.44 1,073,474
2006-07 6,7 7,939 4,485,293 1,121,323 70.65 41.84 1,121,323
2007-08 6,9 0,208 4,600,139 1,150,035 72.31 40.49 1,150,035
2008-09 7,6 5,512 5,097,008 1,274,252 82.52 42.91 1,274,252
2009-10 (a) 2,9 2,771 1,948,514 487,128 33.33 17.33 487,128
Collections for Fiscal Year 2009-2610 are through February 28, 2010 (five months only).
Source: State Comptroller of the State Texas Website.
Note: Fiscal Year sales tax revenue to Is represent monthly revenues received from the State by the Cityfrom October
through September of each ftsc year.
REVENUE BOND DEBT PRINCIPAL DATA TABLE CD-7
(As of March 1, 2010)
Revenue Bond Debt Principal Outstanding:
Waterworks and Sewer System Reven a Bonds, Series 2000 $ 480,000
(All the City's other WS Revenue Bonds were refunded in the Series 2010 General Obligation Refunding Bonds issue.)
Total Gross Revenue Debt $ 480,000
Note: Does not include general obligat on self-supporting debt.
REVENUE BONDS DEBT SERVICE, REQUIREMENTS TABLE CD-8
Fiscal Year Remaining WS Revenue Debt from Series 2000 Bonds
Ending 9-30 Principal Interest Total
2010 $ 480,000 $ 16,500 $ 496,500
The City has historically paid debt service requirements on its general obligation System debt from Surplus Revenues of the System and
intends to continue to do so in the future. However, in the event the Surplus Revenues are not on deposit or budgeted for deposit in the
Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied, then the City is obligated to levy and
collect an ad valorem tax sufficient t pay principal of and interest on such System debt and the outstanding general obligation bonds.
107
COVERAGE FACTOR (Revenue Bonds Only) TABLE CD-9
Average Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-09 $ 6,516,971
Total Remaining Revenue Deb Service Outstanding (Payable 6-15-10) $ 496,500
Coverage Factor 13.13 x
COVERAGE FACTOR (Revenue Bonds Plus System General Obligation Debt) TABLE CD-10
Average Annual Debt Service Re irement
Net Revenue available for debt service for fiscal year ended 9-30-03 $ 6,516,971
Estimated average annual system debt service including system GO Bonds (2010-2020) $ 1,593,350
Coverage Factor 4.09 x
Maximum Annual Debt Service Requirement
Net Revenue available for debt service for fiscal year ended 9-30-03 $ 6,516,971
Estimated maximum annual sy em debt service including system GO Bonds (2012) $ 3,384,253
Coverage Factor 1.93 x
ENTERPRISE NET ASSETS TABLE CD-11
(As of September 30, 2009)
Invested in Capital Assets, Net of Retained Debt $ 26,288,945
Restricted 3,813,439
Unrestricted 7,237,951
Total Enterprise Net Assets $ 37,340,335
UTILITY PLANT IN SERVICE TABLE CD-12
(As of September 30, 2009)
Water & Sewer
Land, Plant, Pumps and Motors
Plant, Pumps and Motors $ 32,466,680
Distribution and Collection Systems 58,749,872
Furniture and Equipment 244,222
Automobiles and Other Vehicle 2,155,827
Construction in Progress 98,246
Total 93,714,847
Less: Accumulated Depreciation 51,411,753
Net Utility Plant in Service $ 42,303,094
REVENUE BONDS AUTHORIZED BUT UNISSUED TABLE CD-13
Date of Amount Issued
Authorization Purpose Authorized To Date Unissued
8-14-56 W & SS $ 2,300,000
9-21-65 S wer System 200,000
Totals $ 2,500,000 $ 2,200,000 $ 300,000
108
I
WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT TABLE CD-14
Fiscal Year Ended September 30
Operating Revenues 2009 2008 2007 2006 2005
Water Sales and Taps $ 7,745,873 $ 7,641,122 $ 7,256,997 $ 7,539,449 $ 7,069,193
Sewer Charges and Taps 5,172,748 4,714,273 4,711,135 4,886,837 4,670,660
Service Charges 163,181 180,081 67,910 60,830 55,759
Industrial Surcharges 198,029 169,018 122,719 133,474 161,330
Miscellaneous 268,935 239,455 132,144 189,996 134,209
Investment Earnings 212,479 309,586 367,601 284,899 70,730
Total Revenues 13,761,245 13,253,535 12,658,506 13,095,485 12,161,881
Expenses (b) 7,244,274 6,873,535 6,613,931 6,665,832 5,923,360
Net Revenue Available for Debt Servi e $ 6,516,971 $ 6,380,000 $ 6,044,575 $ 6,429,653 $ 6,238,521
Annual Revenue Bond Requirements $ 2,174,545 $ 2,177,164 $ 2,182,054 $ 2,182,496 $ 2,029,243
Coverage of Annual Revenue Bond
Requirements 3.00 x 2.93 x 2.77 x 2.95 3.07 x
Annual Requirements on all Bonds Paid from
System Revenues $ 3,948,712 $ 3,949,633 $ 3,951,188 $ 3,955,095 $ 3,828,166
Coverage of Annual Requirements on all
Bonds Paid from System Revenues 1.65 x 1.62 x 1.53 x 1.63 x 1.63 x
Customer Count:
Water 9,901 9,982 9,979 9,803 9,865
Sewer 9,441 9,533 9,547 9,363 9,444
Does not include Sanitation Billing Fees of $ 67,947 $ 68,304 $ 68,611 $ 69,006 $ 69,700
(h) Excludes depreciation.
109
WATER RATES TABLE CD-15
(Rates Effective October 1, 2008)
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" $8.81 for first 200 Cubic Feet $2.98 / 100 Cubic Feet
1" and Larger $42.96 for first 1,000 Cubic Feet $2.98 / 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" $10.74 for first 200 Cubic Feet $2.98 / 100 Cubic Feet
I" - 2" $42.96 for first 1,000 Cubic Feet $2.44 / 100 Cubic Feet
Larger than 1" $154.22 for first 3,000 Cubic Feet $2.44 / 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" $2,534.00 for first 100,000 Cubic Feet $2.44 / 100 Cubic Feet
6" $3,800.00 for first 150,000 Cubic Feet $244 / 100 Cubic Feet
8" and Larger $5,067.00 for first 200,000 Cubic Feet $2.44 / 100 Cubic Feet
Source: The Issuer's current Water an Sewer Rates Ordinance
PRINCIPAL WATER CUSTOMER - 2008-2009 TABLE CD-16
(October 1, 2008 through September 30, 2009) (Unaudited)
2008-2009 2008-2009
Average Monthly Average
Name of Customer Product Consumption (Cu Ft.) Monthly Bill
Lamar Power Partners(e) Electric Utility 14,032,817 $ 24,640
Campbell Soup Company Soups/Juices/Sauces 12,591,264 120,732
Lamar County Water Supply Water 11,640,431 79,957
Paris Generation Electric Utility 1,829,123 24,142
Kimberly Clark Disposable Diapers 1,190,633 29,238
Sara Lee Bakery Snack Cakes/Breads 484,208 14,275
Paris Regional Medical Center Medical Care 403,051 11,820
Paris Housing Authority Housing 178,431 4,613
Paris Junior College Public Education 125,476 3,226
Paris Independent School District Public Education 116,893 4,969
Sesame Solutions Food Processor 115,444 2,865
Totals 42,707,771 $ 320,477
Includes raw water consumption.
Source: Information from the Issuer.
110
SEWER RATES TABLE CD-17
(Rates October 1, 2008)
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" $ 9.83 for first 200 Cubic Feet $3.98 / 100 Cubic Feet
1" and Larger $45.86 for first 1,000 Cubic Feet $3.98 / 100 Cubic Feet
Commercial Industrial Class
Service in Excess of Base
Meter Size Base Cost (For Each Additional
Inches (Per Cubic Foot) 100 Cubic Feet)
5/8" - 3/4" $13.10 for first 200 Cubic Feet $4.14 / 100 Cubic Feet
1" - 2" $45.86 for first 1,000 Cubic Feet $4.14 / 100 Cubic Feet
Larger than 2" $92.77 for first 2,000 Cubic Feet $4.14 / 100 Cubic Feet
Source: The Issuer's current Water and Sewer Rates Ordinance
PRINCIPAL SEWER CUSTOMERS - 2008-2009 TABLE CD-18
(October 1, 2008 through September 30, 2009) (Unaudited)
2008-2009 2008-2009
Average Monthly Average
Name of Customer Product Consumption (Cu Ft.) Monthly Bill
Kimberly-Clark Disposable Diapers 578,932 $ 23,976
Sara Lee Bakery Snack Cakes/Breads 484,208 20,134
Paris Regional Medical Center Medical Care 270,568 44,694
Paris Housing Authority Multifamily Housing 166,509 6,952
Texas Highway Department Public Transportation 101,892 4,226
Paris Junior College Higher Education 97,954 4,102
Paris Independent School District Public School Education 90,168 3,931
Bettes Enterprises Car Wash 89,556 3,715
Lamar County County Government 82,475 3,435
Sesame Solutions Food Processor 74,786 3,105
Totals 2,037,048 $ 118,270
Source: Information from the Issue
111
i
OVERALL COMPLIANCE, INTERNAL CONTROLS
AND FEDERAL AWARDS SECTION
OVERALL COMPLIANCE, INTERNAL CONTROLS
AND FEDERAL AWARDS SECTION
This section includes elements required by Government Auditing Standards, issued by the Comptroller General of the
United States and U.S. Offi e of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations.
112
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
RUSSELL P. WOOD, CPA DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-583-5574
Report on Internal Control Over Financial Reporting and on FAX 903-583-9453
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Honorable Mayor and City Council
City of Paris, Texas
We have audited the fm cial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City of
Paris, Texas, as of and for the year ended September 30, 2009, which collectively comprise the City of Paris, Texas',
basic financial statements and have issued our report thereon dated March 29, 2010. We conducted our audit in
accordance with auditing s andards generally accepted in the United States of America and the standards applicable to
financial audits contained ' Government Auditing _Standards , issued by the Comptroller General of the United States.
Internal Control Over Fina cial Re ortin
In planning and performing our audit, we considered the City of Paris, Texas', internal control over financial reporting as
a basis for designing our a diting procedures for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the City of Paris, Texas', internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Paris, Texas', internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the
normal course of perform' their assigned functions, to prevent or detect misstatements on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the City of Paris, Texas',
ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted
accounting principles such at there is more than a remote likelihood that a misstatement of the City of Paris, Texas',
financial statements that is more than inconsequential will not be prevented or detected by the City of Paris, Texas',
internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City of
Paris, Texas', internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph
of this section and would n t necessarily identify all deficiencies in internal control that might be significant deficiencies
or material weaknesses. W did not identify any deficiencies in internal control over financial reporting that we consider
to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reas nable assurance about whether the City of Paris, Texas', financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the determination of
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
113
i
Honorable Mayor and City ouncil
City of Paris, Texas
Page 2
financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the City Council, management, others within the
organization, and federal awarding agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Certified Public Accountants
Paris, Texas
March 29, 2010
McCLANAHAN ANplIPLMES, LLP
City of Paris, Texas
Summary Schedule of Prior Audit Findings
Fiscal Year Ended September 30, 2009
indin ecommendation Current Status
None
115
City of Paris, Texas
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended September 30, 2009
Section I - Summary of Auditor's Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal control over financ al reporting:
Material Weakness(es) i entified? yes X no
Reportable condition(s) i entified that are not considered to be
material weakness(es)? yes X none reported
Noncompliance material to financial statements noted? yes X no
Federal Awards
Internal control over major programs:
Material weakness(es) id ntified? yes X no
Reportable conditions(s) identified that are not considered to be
material weakness(es)? yes X none reported
Type of auditors' report iss ed on compliance for major programs: Unqualified
Any audit findings disclose that are required to be reported in accordance
with Section 510(a) of Circular A-133? yes X no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
10.557 Special Supplemental Food Program for Women, Infants, and Children
16.579 Edward Byrne Memorial Formula Grant Program
Dollar threshold used to dis inguish between type A and type B programs: $300,000
Auditee qualified as low-risk auditee? yes X no
Section II - Financial Statement Findings
None
Section III - Federal Award Findings and Questioned Costs
None
116
City of Paris, Texas
Corrective Action Plan
For the Fiscal Year Ended September 30, 2009
Not Applicable
117
MCCLANAHAN AND HOLMES, LLP
R. FRANK RAY, CPA CERTIFIED PUBLIC ACCOUNTANTS 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
RUSSELL P. WOOD, CPA DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM, TEXAS 75418
903-583-5574
FAX 903-583-9453
Report on Compliance with Requirements Applicable
to Each Major Program and on Internal Control Over
Compliance in Accordance with OMB Circular A-133
Honorable Mayor and City Council
City of Paris, Texas
Compliance
We have audited the compl ance of the City of Paris, Texas, with the types of compliance requirements described in the
U.S. Office of Mana emen and Bud et OMB Circular A-133 Compliance Supplement that are applicable to each of
its major federal programs or the year ended September 30, 2009. The City's major federal programs are identified in
the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance
with the requirements of aws, regulations, contracts, and grants applicable to its major federal programs is the
responsibility of the City's anagement. Our responsibility is to express an opinion on the City's compliance based on
our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States Local Governments, and Non-
Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that
could have a direct and in terial effect on a major federal program occurred. An audit includes examining, on a test
basis, evidence about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on the City's compliance with those requirements.
In our opinion, the City of aris, Texas, complied, in all material respects, with the requirements referred to above that
are applicable to its major deral programs for the year ended September 30, 2009.
Internal Control Over Com liance
The management of the Ci of Paris, Texas, is responsible for establishing and maintaining effective internal control
over compliance with req irements of laws, regulations, contracts, and grants applicable to federal programs. In
planning and performing o audit, we considered the City's internal control over compliance with requirements that
could have a direct and ma erial effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our pinion on compliance, but not for the purpose of expressing an opinion on the effectiveness
of internal control over co pliance. Accordingly, we do not express an opinion on the effectiveness of the City of Paris,
Texas', internal control over compliance.
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
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Honorable Mayor and City Council
City of Paris, Texas
Page 2
A control deficiency in an ntity's internal control over compliance exists when the design or operation of a control does
not allow management or mployees, in the normal course of performing their assigned functions, to prevent or detect
noncompliance with a type f compliance requirement of a federal program on a timely basis. A significant deficiency is
a control deficiency, or co bination of control deficiencies, that adversely affects the entity's ability to administer a
federal program such that there is more than a remote likelihood that noncompliance with a type of compliance
requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's
internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that mat rial noncompliance with a type of compliance requirement of a federal program will not be
prevented or detected by the entity's internal control.
Our consideration of the in ernal control over compliance was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or
material weaknesses. We id not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as de ed above.
This report is intended solely for the information and use of the City Council, management, others within the
organization, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by
anyone other than these spe ified parties.
ACertifPublic Accountants
Paris, Texas
March 29, 2010
McCLANAHAN ANPIIIOLMES, LLP
City of Paris, Texas
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2009
Federal
CFDA Project
Federal Grantor/Pass-Through Grantor/Pro am Title Number Number Expenditures
U.S. Department of Health arid Human Services
Passed Through Texas Department of State Health Services:
Special Supplemental Food Program for Women,
Infants, and Children 10.557 2009-030034 $ 275,995
Inmunization Grants 93.268 2009-028474 106,310
Preventative Health and Health Services
Block Grant 93.991 2009-028229 109,843
Maternal and Child Health Services Block Grant
to the States 93.994 2009-029467 2,861
Total U.S. Department of Health and Human Services 495,009
U.S. Department of Housing and Urban Develo ment
Passed Through Texas Department of Rural Affairs:
Community Development Block Grants/
Entitlement Grants 14.218 728056 97,459
HOME Invested Partnerships Program 14.239 1001053 350
1000930 30,000
Total U.S. Department of Housing and Urban Development 127,809
U.S. Department of Justice
Direct Program:
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 2007-DJ-BX-1323 895
2008-DJ-BX-0347 9,971
2009-DJ-BX-0323 12,070
Total Direct Program 22,936
Passed Through Texas Criminal Justice Division:
Edward Byrne Memorial Formula Grant Program 16.579 PI-04-A10-18226-02 146,847
Total Passed Through exas Criminal Justice Division 146,847
Total U.S. Department ~f Justice 169,783
Total Expenditures of deral Awards $ 792,601
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City of Paris, Texas
Notes on Accounting Policies for Federal Awards
For the Year Ended September 30, 2009
Note 1: Basis of Presentation
The accompanying schedul of expenditures of federal awards includes the federal grant activity of the City of Paris,
Texas, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in
accordance with the requi ements of OMB Circular A-133, Audits of States Local Governments, and Non-Profit
Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the
preparation of, the financial statements.
During the year, Federal awards did not include non-cash assistance or insurance. At year end, there were no loans or
loan guarantees.
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City of Paris, Texas
Special Supplemental Food Program
for Women, Infants, and Children
Schedule of Revenues and Expenditures
For the Year Ended September 30, 2009
Federal Financial Assistance
Federal Grantor: United States Department of Health and Human Services
Pass Through Grantor: Texas Department of State Health Services
CFDA Number 10.557
Project Number 2009-030034
Contract Period 10/01/08 - 9/30/09
Award Prior Current
Budget Year Year Total Variance
Revenues:
Federal $ 288,228 $ - $ 275,995 $ 275,995 $ (12,233)
Total Revenues 288,228 - 275,995 275,995 (12,233)
Expenditures:
Personnel 205,754 - 222,152 222,152 (16,398)
Travel 5,000 - 2,382 2,382 2,618
Supplies 10,000 - 1,742 1,742 8,258
Other 49,474 - 48,665 48,665 809
Indirect Charges 18,000 - 1,054 1,054 16,946
Total Expenditures 288,228 - 275,995 275,995 12,233
Excess Revenues
Over Expenditures $ - $ - $ - $ - $ -
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City of Paris, Texas
Edward Byrne Memorial Formula Grant Program
For the Schedule of Revenues and Expenditures
Year Ended September 30, 2009
Federal Financial Assistanc
Federal Grantor: United States Department of Justice
Pass Through Grantor: Texas Criminal Justice Division
CFDA Number
Project Number
Contract Period 10/01/08 - 9/30/09
Award Prior Current
Budget Year Year Total Variance
Revenues:
Federal $ 167,686 $ - $ 146,847 $ 146,847 $ (20,839)
Total Revenues 167,686 - 146,847 146,847 (20,839)
Expenditures:
Certified Peace Officers Salaries 120,224 - 99,294 99,294 20,930
Contractual and
Professional Services 47,462 - 47,553 47,553 (91)
Total Expenditures 167,686 - 146,847 146,847 20,839
Excess Revenues
Over Expenditures $ - $ - $ - $ - $
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