C.A.F.R., FY 2010-11COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR
CITY OF PARIS, TEXAS
For the Fiscal Year Ended September 30, 2011
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Prepared By
Finance Department
W.E. Anderson, Director
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City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2011
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
I-9
FINANCIAL SECTION
Statement
Independent Auditors' Report
1
Management's Discussion and Analysis
3
Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets
12
1
Statement of Activities
14
2
Fund Financial Statements:
Balance Sheet - Governmental Funds
16
3
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds.......
17
4
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
19
5
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual- General Fund
20
6
Statement of Net Assets - Proprietary Funds
22
7
Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds...........
24
8
Statement of Cash Flows - Proprietary Funds
25
9
Notes to Financial Statements
27
-
Schedule
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
58
1
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
60
2
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Criminal Justice Division Grant 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 by Source
68
9
Schedule by Function and Activity
69
10
Schedule of Changes by Function and Activity
71
11
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2011
TABLE OF CONTENTS (Continued)
STATISTICAL SECTION
Financial Trends
Page Table
72
Net Assets by Component 73 1
Changes in Net Assets 75 2
Fund Balances of Governmental Funds 79 3
Changes in Fund Balances of Governmental Funds 81 4
Revenue Capacity
Property Tax Levies and Collections 83 5
Property Tax Rates - All Direct and Overlapping Governments . 85 6
Assessed and Estimated Actual Value of Property 87 7
Principal Property Taxpayers 88 8
Debt Capacity
Ratio of Net General Obligation Bonded Debt to Assessed Value and
Net General Obligation Bonded Debt Per Capita 90 9
Ratio of Outstanding Debt by Type 91 10
Direct and Overlapping Governmental 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 Government Employees by Function 103 19
CONTINUING DISCLOSURE INFORMATION (Unaudited)
Continuing Disclosure Information 105
City of Paris, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2011
TABLE OF CONTENTS (Continued) Page
OVERALL COMPLIANCE, INTERNAL CONTROLS,
AND FEDERAL AWARDS SECTION
111
Federal:
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 112
Summary Schedule of Prior Audit Findings 114
Schedule of Findings and Questioned Costs 115
Corrective Action Plan 116
Report on Compliance with Requirements Applicable to Each Major Program and on
Internal Control Over Compliance in Accordance with OMB Circular A-133 117
Schedule of Expenditures of Federal Awards 119
Notes on Accounting Policies for Federal Awards 120
Schedules of Revenues and Expenditures:
Special Supplemental Food Program for Women, Infants, and Children 121
Edward Byrne Memorial Justice Formula Grant Program 122
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INTRODUCTORY SECTION
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March 29, 2012
Mayor A. J. Hashmi
and Members of the City Council
City of Paris, Texas
Dear Mayor and Council Members:
I am pleased to submit the Comprehensive Annual Financial Report of the City of Paris, Texas (the City), for the fiscal year
ended September 30, 201 L
The City of Paris is a financial reporting entity as defined by the Government Accounting Standards Board codification section
2100. As such, it has a separately elected governing body chosen by its citizens in a general, popular election, is a legally
separate primary government, and is fiscally independent of other state and local governments. The financial reporting entity
includes all the funds of the primary government and its component unit, the Paris Economic Development Corporation
(PEDC). More information about PEDC can be found in footnote I.A. which deals with reporting entity topics. There are no
other potential component units.
The primary purpose of this report is to provide the City Council, citizens, financial community, and others with detailed
information concerning the financial condition and performance of the City of Paris. It is strongly recommended that any user
of this report read the Management's Discussion and Analysis included in the financial section of the report. In addition, this
report provides assurance that the City presents fairly its financial position as verified by independent auditors.
THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
The Comprehensive Annual Financial Report of the City of Paris, Texas, for the fiscal year ended September 30, 2011, which
follows, was prepared by the Finance Department. The financial statements have been audited by McClanahan and Holmes,
LLP, CPAs, whose report is included herein. This audit satisfies Article III, Section 35 of the City Charter which requires that
an annual audit of all accounts of the City be made by an independent certified public accountant,
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P.O. BOX 9037 • PARIS, TEXAS 75461-9037 • (903) 785-7511 • FAX ('903) 785-8519
The City Finance Department is responsible for both the accuracy of the presented data and the completeness and fairness of
the presentations, including all disclosures. I believe the data presented is accurate in all material aspects and is presented in a
manner which fairly sets forth the financial position and results of operations of the City. Furthermore, I believe that all
disclosures necessary to enable the reader to gain maximum understanding of the City's financial activity have been included.
The financial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the
Governmental Accounting Standards Board (GASB).
This Comprehensive Annual Financial Report consists of four parts:
1. The Introductory Section includes an organizational chart, list of elected and appointed officials, and this
transmittal letter, which highlights significant aspects of the financial operations during the year and particular
issues faced by the City.
2. The Financial Section includes the independent auditors' report, management's discussion and analysis,
financial statements and related notes, and supplemental financial data.
3. The Statistical Section includes several tables of unaudited data depicting the financial history of the City, as
well as demographic information of other governmental units overlapping the City and other miscellaneous
statistics.
4. The Continuing Disclosure Information Section contains nineteen tables of financial information required by
the United States Securities and Exchange Commission Rule 15c2-12. These tables provide investors with
updated information on all municipal bond issues sold after July 3, 1995.
The Notes to the Financial Statements are provided in the Financial Section and are considered essential to fair presentation
and adequate disclosure for this financial report. The notes include the Summary of Significant Accounting Policies for the
City and other necessary disclosures of important matters relating to the financial position of the City. The notes are treated as
an integral part of the financial statements and should be read in conjunction with them.
General Information Regarding the City and Surrounding County
The City of Paris is the county seat and principal commercial center of Lamar County and is located at the intersection of
United States Highways 271 and 82, approximately 100 miles northeast of Dallas near the Red River. The City is served by 7
banks. The City's 2010 census is 25,171, a decrease of 2.80% from the 2000 census of 25,898. The City has doubts about the
accuracy of the census count within its limits.
Lamar County (the County) is located in northeast Texas and borders the State of Oklahoma. The County, which is situated
between the Red River and the Sulphur River, is traversed by United States Highways 271 and 82, State Highways 19 and 24,
and 32 farm-to-market roads. The County's 2010 census is 49,793, an increase of 2.66% over the 2000 census of 48,499.
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 meet the requirements of any commercial or industrial demand. Atmos Energy provides natural
gas for residential, commercial, and industrial users. Atmos Energy is the largest provider of pure natural gas in America. It
provides service to over three million customers in 12 states. There are 3 transmission lines serving the City with a line
pressure of 300 pounds per square inch. Telephone service is provided by AT &T.
Educational facilities of the City are provided by 3 independent school districts. Each of the districts is accredited by the Texas
Education Agency. Higher education needs in the County are provided at Paris Junior College located in the City. Total
enrollment of these entities is 13,428.
Tourists are attracted to the area by activities on Lake Crook and Pat Mayse Reservoir. Pat Mayse Reservoir is located 15
minutes from the City and provides 6,000 acres for boating, fishing, and camping. The Gambill Goose Refuge and numerous
hunting and fishing areas are also located in the County. Other points of interest and activities include the Sam Bell Maxey
House, the A.M. Aikin Archives, Red River Valley Exposition, and the Lamar County Historical Society Museum.
Also, the City has 3 18-hole golf courses, 4 private and 1 public swimming pools, 26 tennis courts, 3 walk/jog tracks, a sports
complex, and 24 public park areas.
Government Organization
The City was founded in 1839 with the current charter adopted in November of 1948. The City operates under the
Council/Manager form of government with 7 council members elected from single member districts. The Mayor is elected by
the Council itself to serve as moderator of the group. The Council members can serve a maximum of three consecutive 2-year
staggered terms. The Mayor and Council appoint the City Manager, the City Attorney, and the Municipal Judge. The City is a
Home Rule City with all powers granted to home rule cities by the constitution and laws of the State of Texas. The Council
enacts legislation, adopts budgets, and determines policies of the City of Paris. The City Manager executes the laws and
administers the government of the City.
Economic Condition and Outlook
Current taxable values for fiscal year 2011-2012 reflect a 1.55% decrease over the 2010-2011 values. This decrease was
caused by a decrease in non-home site improvement values. Building permits for new residential and commercial
construction totaled $10,594,986 for fiscal year 2010-11. This activity should be reflected in next year's taxable values.
Sales taxes for 2010-11 increased from the prior year by 3.25%. This increase had been predicted due to the recovering local
economy. Current rebates are 0.91% above the 2010-11 rebates through March 2012.
Hotel occupancy taxes were down 10.29% compared to 2009-10 taxes and is reflective of the delinquency of two hotels. Both
of these hotels have either paid or made arrangements to pay their tax obligations in the 2011-12 fiscal year.
Franchise fees decreased 0.86% due to lower solid waste fees. This area is a major source of revenue to the City and is
aggressively guarded by City officials. There is some discussion by the Public Utilities Commission indicating that they may
reverse an earlier decision which had reduced franchise fee collections in the past few years.
The Paris Economic Development Corporation is working hand in hand with the Lamar County Chamber of Commerce to
recruit new business to the area as well as supporting already existing businesses.
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General Fund receipts equaled 94.58% of budget. This shortfall of revenues was caused by anticipated grant revenues not
materializing during the fiscal year. General Fund expenditures were only 91.01% of budget for the same reason, grant
expenditures were less than anticipated. For the 2011-12 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 allows maintaining all services at their current levels or above
and funds the interest and sinking fund for the certificates of obligation issued in 2002, 2003, and 2010.
Long-term Financial Planning and Relevant Financial Policies
The City is in the process of developing 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. The City does not plan on any substantial capital investment in its utility infrastructure until 2013 at which time a
substantial amount of utility related debt issued will be paid off. The City formalized a key financial policy that had been
informally followed previously: a utility rate maintenance policy. The utility rate maintenance policy will help assure the
financial integrity of the enterprise fund along with its related interest and sinking funds. Another policy expected to be
formalized is a reserve level guideline for both the general fund and utility fund. Adequate reserve levels provide the City with
the ability to deal with extraordinary events and maintain its credit worthiness. This credit worthiness, as reflected in the
current financial statements, allowed the City to obtain very favorable interest rates on the refunding bonds referenced above.
Major Initiatives
The City of Paris continues to work in environmentally related areas. Since 1984, over $50 million has been spent on water
and wastewater improvements. The City is working on formulating a new long range plan to maintain its infrastructure.
The City also continues to expand its effort in law enforcement related areas. Specifically, the City has targeted auto theft and
the public schools. Programs in this effort include the Auto Theft Task Force and school resource officers at various schools.
One other continuing law enforcement effort is to upgrade equipment through 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 revitalization of existing structures and businesses. The City continues to work closely with the
Paris Economic Development Corporation to attract new businesses to Paris and to support existing businesses as well.
Working with the Chamber of Commerce, the City is effectively using the civic center to attract people and business to Paris.
City officials are also closely working with Keep Paris Beautiful, Inc. to promote and improve the City. The Historic
Preservation Committee is working with local property owners to maintain the historical character of the City.
Other Financial Information
The financial statements of the City of Paris, Texas, have been prepared in conformity with generally accepted accounting
principles as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting
body for establishing governmental accounting and financial reporting principles. Using the GASB 34 reporting model, the
City's Comprehensive Annual Financial Report provides for a management's discussion and analysis, government-wide
financial statements, major fund financial statements, notes to the financial statements, and other required supplementary
information.
The City has a written investment policy that conforms to state statutes, which outlines permissible investments. The City
pools its cash balances for investment purposes from the various funds maintained in its consolidated cash account. Interest
earnings of the pool are allocated to the various funds of the City based upon a fund's equity position in the pool. The City of
Paris' primary risk exposures are in the areas of workers' compensation and tort liability. Provision for these risks is made
through participation in the Texas Municipal League's risk pool.
I-4
Between 30 days and 90 days prior to the beginning of each fiscal year, the City Manager submits to the City Council a
proposed budget for the fiscal year beginning on the following October 1. The operating budget, which represents the
financial plan for the ensuing fiscal year, includes proposed expenditures and the means of financing them. Public hearings are
conducted at which all interested persons' comments concerning the budget for the next fiscal year are heard. The budget is
legally enacted by the City Council through passage of an ordinance not later than the 27a` day of the last month prior to the
beginning of the fiscal year. Generally, appropriations are legally adopted at the department level. Budgetary controls are
maintained at the major category of expenditure level within each operating division. All anticipated expenditures are
budgeted for control purposes. Capital project funds are appropriated on a project by project basis. Expenditures and/or
expenses are directly monitored by the City Council.
Internal Controls
Internal accounting controls are designed to provide reasonable, but not absolute, assurance of the safeguarding of assets
against loss from unauthorized use or disposition and reliable financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not
exceed the benefits likely to be derived.
All internal control evaluations occur within this framework. The Finance Department's staff believes the City's internal
control structure adequately ensures compliance with laws and regulations and reasonable assurance for safeguarding of assets.
Debt
The following schedule outlines the outstanding City debt as of September 30, 2011:
Moody's
Tax
Revenue
Final
Investors
Issue
Supported
Supported
Maturi
Rating Insured
2002 Tax & Rev. C. 0.
$ 4,015,000
$ -
12-15-21
Aa3
2003 G. 0. Refunding Bonds
1,300,800
1,409,200
12-15-14
Aa3
2010 Tax & Rev. C. 0.
3,005,000
-
12-15-29
Aa3
2010 G. 0. Refunding Bonds
3,510,000
9,845,000
06-15-20
Aa3
Total
11.830.800 11.254.200
The City has no outstanding lease/purchase agreements.
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 Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Paris for its comprehensive annual financial report for the fiscal year
ended September 30, 2010. This was the fifteenth consecutive year that the government has achieved this prestigious award.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
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A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial
report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
Acknowledgments
The preparation of this report could not have been accomplished without the full support and efficient and dedicated efforts of
the entire staff of the Finance Department and the competent services of the independent auditors, McClanahan and Holmes,
LLP, CPAs. I express my appreciation to all members of the Finance Department who assisted and contributed to the
completion of this report and to all City departments involved in the preparation of information for this report. In addition, I
express my appreciation to the Mayor, City Council, and City Manager for their continuing interest and support in planning
and conducting the financial affairs of the City in a responsible and progressive manner.
Respectfully submitted,
W. E. Anderson
Interim City Manager & Director of Finance
I-6
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
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City of Paris, Texas
List of Elected and Appointed Officials
Elected Officials
A. J. Hashmi - Mayor
Richard Grossnickle - Mayor Pro-Tern
Robert Avila
Matt Frierson
Joe McCarthy
Edwin Pickle
John Wright
Appointed Officials
W. E. Anderson - Interim City Manager/
Finance Director
Shawn 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
Ron Sullivan - Public Works Director
I-9
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FINANCIAL SECTION
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McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
R. E. BOSTWICK, CPA
228 SIXTH STREET S.E.
STEVEN W. MOHUNDRO, CPA
PARIS, TEXAS 75460
GEORGE H. STRUVE, CPA
903-784-4316
ANDREW B. REICH, CPA
FAX 903-784-4310
RUSSELL P. WOOD, CPA
DEBRA J. WILDER, CPA
304 WEST CHESTNUT
DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
inions on Financial Statements
ualified O
Un
BONHAM, TEXAS 75418
p
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903-583-5574
Accompanied by Required Supplementary Information
FAX 903-583-9453
and Supplementary Information
Independent Auditors' Report
Honorable Mayor and City Council
City of Paris, Texas
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information including the
budgetary comparison of the City of Paris, Texas, as of and for the year ended September 30, 2011, which collectively
comprise the City's financial 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 audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing, Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund, and the aggregate remaining fund information including the budgetary comparison of the City of Paris, Texas, as
of September 30, 2011, 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 Government Auditing Standards, we have also issued our report dated March 29, 2012, on our
consideration of the City of Paris, Texas' internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grants, agreements, and other matters. The purpose of that report
is to describe the scope of our testing of internal control, our financial reporting, or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis and budgetary comparison information immediately following this report be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing standards generally accepted
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and City Council
City of Paris, Texas
Page 2
in the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of Paris, Texas' financial statements as a whole. The introductory section, combining and individual nonmajor
fund financial statements, statistical section, and continuing disclosure information section are presented for purposes of
additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund
financial statements are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in
all material respects in relation to the financial statements as a whole.
The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations, and is also not a required part of the basic financial statements of the City of Paris, Texas. The
statistical and continuing disclosure information sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we express no opinion on them.
a"Iy&, I ZV
Certified Public Accountants
Paris, Texas
March 29, 2012
McCLANAHAN AND HOLMES, LLP
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Paris (the City), we offer readers of the City of Paris, Texas' financial statements this narrative
overview and analysis of the financial activities of the City of Paris for the fiscal year ended September 30, 2011. 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 maintained its tax rate of 0.52 per $100 of valuation. Fiscal year 2010-11 is the third consecutive year at this
rate. The City has lowered its rate four times since the 2003-04 fiscal year when the tax rate was 0.695. For the
upcoming 2011-12 fiscal year, the City will also 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 City has been able to maintain the current tax rate despite a nationwide weak economy and an 8.5%
decrease in local sales taxes in 2009-10 from which the City has recovered 66.2% in the 2010-11 fiscal year.
• The number of budgeted positions dropped from 369 in fiscal year 2002-03 to 322 in fiscal year 2009-10. This
reduction was also part of an operational review and represents a significant and annually repeating savings to the
City. Two positions were added in fiscal year 2010-11, bringing the total City employees to 324.
• City-wide revenues this year exceeded City-wide expenses by $2,321,372 compared to $2,946,168 last year. The City
has made a concentrated effort to reduce expenses plus seeking new sources of revenue and protecting its existing
revenue sources.
• The assets of the City of Paris exceeded its liabilities at the close of the most recent fiscal year by $85,343,128 (net
assets) an increase of $2,321,372 or 2.79% over the previous year amount of $83,021,756. The most important factor
in this change was the decrease of long-term debt. Of the amount known as net assets, $24,217,521 (unrestricted net
assets) may be used to meet the government's ongoing obligations to citizens and creditors.
• As of the close of the current fiscal year, governmental funds reported combined ending fund balances of $16,759,950
compared to $18,000,218 the previous year. This amounts to a decrease of $1,240,268 or 6.89%. This decrease was
due to primarily to a decrease in the cash and investments of the Capital Projects Fund. Unreserved fund balance is
available for spending at the government's discretion.
• At the end of the fiscal year, unassigned fund balance for the general fund was $12,156,169 or 57.15% of the total
general fund expenditures. The prior year, unassigned fund balance was $11,376,619 or 52.7% of general fund
expenditures. General fund expenditures were essentially unchanged (down 1.4%) while the unreserved fund balance
increased due to increased cash and near cash assets.
• The City of Paris' non-current liabilities decreased by $4,391,853 or 17.97% during the current fiscal year due to the
usual debt payment.
• Total charges for services for the City of Paris were $18,808,783 compared to $18,734,131 the previous year. This
represents less than a one half percent increase. Operating/capital grants & contributions were $2,159,259 compared
to $1,786,730 the previous year. This increase was due to increased private contributions and grant activity. General
revenues were $17,503,660 compared to $17,885,493 the previous year. This decrease was due to lower property
taxes, hotel occupancy taxes, and contribution income. Property taxes were down due to the absorption of a new debt
issue within the existing total tax rate. This shifted revenue from O&M operations to debt service. Hotel taxes were
down due to delinquencies of two hotels. Since the end of the fiscal year, one hotel has completely paid its
delinquency and the other has made payout arrangements on its delinquency.
• Transfers from business-type activities to governmental activities and from governmental activities to business-type
activities occurred during the year in the net amount of $764,880. This included administrative and franchise fees
transferred from business-type activities to governmental activities.
• City-wide liabilities decreased $4,336,032 from $30,743,802 to $26,407,770. This amounted to a 14.10% decrease.
Long-term debt was the single factor most affecting this change.
• City-wide expenses increased $690,144 (1.9%) increasing from $35,460,186 to $36,150,330 with slight increases in
both government activities and business-type activities.
• The ratio of net assets to expenses was 234.12% for the year 2009-10 and 237.33% for the year 2010-11. A decrease
in non-current debt was the major factor in this improvement. Unrestricted net assets changed from $20,174,249 in
2009-10 to $24,217,521 in 2010-11, an increase of 20.04% reflecting the decrease in restrictions for construction
projects.
• The ratio of city-wide net assets restricted for debt service to total expenditures was 6.92% for the year 2009-10 and
9.52% for the year 2010-11. Both debt restricted net assets and total expenses were up from the previous year.
• Net long-term debt to assets, a measure of solvency, was 25.85% in 2009-10 and 22.02% in 2010-11. Decreasing debt
caused this change.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City of Paris' basic financial statements. The City of
Paris' basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements .
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City of Paris' finances,
in a manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Paris' assets and liabilities, with the difference between
the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City of Paris is improving or deteriorating.
The statement of activities presents information showing how the government's net assets changed during the most recent
fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result
in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Paris that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the
City of Paris include general government, public safety, public works, library, and airport. The business-type activities of the
City of Paris include water production and distribution as well as wastewater collection and treatment. The government-wide
financial statements include not only the City of Paris itself (known as the primary government), but also the 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 accounts that is used to maintain control over resources that have been segregated for specific
activities or objectives. The City of Paris, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City of Paris can be divided into two
categories: governmental funds and proprietary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for government activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's
near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The City of Paris maintains nine 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 are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report.
The City of Paris adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been
provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund 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 presented as business-type activities in the government-wide financial statements. The City of Paris
uses an enterprise fund to account for its water and sewer related activities.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The
proprietary fund used by the City of Paris is considered a major fund.
The basic proprietary fund financial statements can be found beginning with Statement 7 and continuing through Statement 9
of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide
and fund financial statements. The notes to the financial statements can be found immediately after the Statement of Cash
Flows-Proprietary Funds in this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary
information concerning the City of Paris' progress in funding its obligation to provide pension benefits to its employees.
Required supplementary information can be found in Note V. in Notes to the Financial Statements.
Combining and individual fund statements and schedules can be found immediately after the Notes to the Financial Statements
in this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the
City of Paris, assets exceeded liabilities by $85,343,128 at the close of the most recent fiscal year. This compares to
$83,021,756 for the previous year. Increases in capital grant revenue/contributions plus the regular pay down of long-term debt
account for most of this increase.
By far, the largest portion of the City of Paris' net assets ($57,167,044 or 66.98%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment). The City of Paris uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City of Paris' investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Net Assets
Governmental Activities
Business-ty
pe Activities
Total
2011
2010
2011
2010
2011
2010
Assets
Current & Other Assets
$ 18,329,557
$19,313,523
$ 12,366,088
$14,550,349
$ 30,695,645
$ 33,863,872
Capital Assets
37,417,751
37,449,994
43,637,502
43,092,060
81,055,253
80,542,054
Total Assets
55,747,308
56,763,517
56,003,590
57,642,409
111,750,898
114,405,926
Liabilities
Long-term Liabilities
Outstanding
12,905,470
13,782,012
11,706,684
16,596,662
24,612,154
30,378,674
Other Liabilities
770,754
296,025
1,024,862
709,471
1,795,616
1,005,496
Total Liabilities
13,676,224
14,078,037
12,731,546
17,306,133
26,407,770
31,384,170
Net Assets
Invested in Capital Assets
Net of Related Debt
25,311,134
26,871,917 31,855,910
28,883,901
57,167,044
55,755,818
Restricted
3,958,563
5,454,967 -
1,636,722
3,958,563
7,091,689
Unrestricted
12,801,387
10,358,596 11,416,134
9,815,653
24,217,521
20,174,249
Total Net Assets
$ 42,071,084
$42,685,480 $ 43,272,044
$40,336,276
$ 85,343,128
$ 83,021,756
An additional portion of the City of Paris' net assets ($3,958,563 or 4.63%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($24,217,521 or 28.37%) may be used
to meet the government's ongoing obligations to citizens and creditors.
There was a decrease in restricted net assets due to the elimination of the amount set aside for construction.
At the end of the current fiscal year, the City of Paris is able to report positive balances in all three categories of net assets
(invested in capital assets net of related debt, restricted assets, and unrestricted assets) 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 decreased the City of Paris' net assets by $614,396 (0.71%) during the current fiscal year. This
decrease was a result of decreases in property and hotel taxes. Total governmental revenues were down $238,791 (0.99
General revenues were down $337,822 (1.98%) due to lower property taxes and hotel occupancy taxes. Program revenues were
up $299,530 (4.35%) due to increased operating grants and contributions.
General Revenues
General Revenues
Property Taxes
Sales Taxes
Franchise Taxes
Hotel Occupancy Taxes
Unrestricted Investment Earnings
2011
$ 7,620,281
6,033,469
2,719,496
449,213
84,327
Increase/
2010 (Decrease)
$ 7,853,487 $ (233,206)
5,843,494 189,975
2,743,214 (23,718)
500,755 (51,542)
113,006 (28,679)
Total General Revenues $ 16,906,786 $ 17,053,956 $ (147,170)
The following table provides a summary of the City's operations for the years ending 2010 and 2011 for both governmental
and business-type activities.
Changes in Net Assets
Governmental Activities
Business-type Activities
Total
2011
2010
2011 2010
2011
2010
Revenues
Program Revenues:
Charges for Services
$ 5,010,646
$ 5,083,645
$ 13,798,137 $13,650,486
$ 18,808,783
$ 18,734,131
Operating Grants
and Contributions
1,953,631
1,431,301
- -
1,953,631
1,431,301
Capital Grants
and Contributions
205,628
355,429
- -
205,628
355,429
General Revenues:
-
-
Property Taxes
7,620,281
7,853,487
- -
7,620,281
7,853,487
Sales Taxes
6,033,469
5,843,494
- -
6,033,469
5,843,494
Franchise Taxes
2,719,496
2,743,214
- -
2,719,496
2,743,214
Hotel Occupancy Taxes
449,213
500,755
- -
449,213
500,755
Unrestricted
Investment Earnings
84,327
113,006
162,374 103,220
246,701
216,226
Other
-
-
434,500 728,317
434,500
728,317
Total Revenues
24,076,691
23,924,331
14,395,011 14,482,023
38,471,702
38,406,354
Expenses
General Government
2,890,290
2,632,370
- -
2,890,290
2,632,370
Finance
437,320
481,106
- -
437,320
481,106
Public Safety
9,880,712
10,021,261
- -
9,880,712
10,021,261
Public Works
7,667,367
7,279,655
- -
7,667,367
7,279,655
Health
3,202,551
3,184,085
- -
3,202,551
3,184,085
Library Service
719,240
751,523
- -
719,240
751,523
Cox Field
220,027
225,565
- -
220,027
225,565
Interest on
Long-Term Debt
438,460
460,678
- -
438,460
460,678
Water and Sewer
-
-
10,694,363 10,423,943
10,694,363
10,423,943
Total Expenses
25,455,967
25,036,243
10,694,363 10,423,943
36,150,330
35,460,186
Increase (Decrease) in
Net Assets before Transfers
(1,379,276)
(1,111,912)
3,700,648 4,058,080
2,321,372
2,946,168
Transfers/Special Item
764,880
1,062,139
(764,880) (1,062,139)
-
-
Increase (Decrease) in
Net Assets
(614,396)
(49,773)
2,935,768
2,995,941
2,321,372
2,946,168
Balance Beginning of Year
42,685,480
42,735,253
40,336,276
37,340,335
83,021,756
80,075,588
Balance End of Year
$42,071,084
$42,685,480
$43,272,044
$40,336,276
$85,343,128
$83,021,756
Business-type Activities
Business-type activities increased the City of Paris' net assets by $2,935,768. This increase was from a combination of
increased program revenues and increased contribution revenues.
7
Financial Analysis of the Government's Funds
As noted earlier, the City of Paris uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the City of Paris' governmental funds is to provide information on near-term inflows, outflows, and balances of
spendable resources. Such information is useful in assessing the City of Paris' financing requirements. In particular, unreserved
fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Governmental Funds
2011
2010
Total Assets
$ 18,253,551
$ 19,037,115
Total Liabilities
$ 1,493,601
$ 1,036,897
Fund Balances:
Nonspendable:
Inventory
199,519
214,932
Perm. Fund Principal
88,520
86,564
Restricted for:
Construction
-
2,783,934
Debt Service
3,426,387
2,628,654
Notes
95,900
128,285
Law Enforcement
132,367
-
Health
215,389
-
Assigned:
Library
123,249
-
Community Development
322,450
-
Unassigned:
General Fund
12,156,169
11,376,619
Special Revenue Fund
-
781,230
Total Fund Balances
16,759,950
18,000,218
Total Liabilities and
Fund Balances
$ 18,253,551
$ 19,037,115
As of the end of the current fiscal year, the City of Paris' governmental funds reported combined ending fund balances of
$16,759,950. Approximately 72.53% of this total amount ($12,156,169) constitutes unassigned fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not
available for new spending because it is non-spendable, restricted, or assigned to permanent fund principal ($88,520), pay debt
service ($3,426,387), outstanding notes ($95,900), inventories ($199,519), law enforcement ($132,367), health ($215,389),
library ($123,249), and community development ($322,450).
8
Governmental Funds
Revenues, Expenditures, and
Changes in Fund Balances
2011 2010
Revenues $ 23,848,441 $ 23,896,580
Expenditures 25,838,176 25,815,341
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,989,735) (1,918,761)
Total Other Financing Sources 764,881 4,067,139
Net Increase (Decrease) in Fund Balances (1,224,854) 2,148,378
Decrease in Inventory (15,414) (196)
Fund Balances-Beginning 18,000,218 15,852,036
Fund Balances-Ending $ 16,759,950 $ 18,000,218
The general fund is the chief operating fund of the City of Paris. At the end of the current fiscal year, unassigned fund balance
of the general fund was $12,156,169 ($11,376,619 the previous year), while total fund balance reached $12,355,688
($11,591,551) the previous year). The increase in the fund balance of the general fund was due to increased receivables, cash,
and cash equivalents. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance
and total fund balance to total fund expenditures. Unassigned fund balance represents 57.15% of total general fund
expenditures, while total fund balance represents 58.09% of that same amount.
During the year, the City made budgeted transfers from the Water and Sewer Fund and Other Governmental Funds to the
General Fund of $1,176,462 for administrative support and franchise fees and from the General Fund to the Capital Projects
Fund of $4,807 to complete specific projects.
Debt Service Fund
The debt service fund has a total fund balance of $2,706,272 ($2,628,654 the previous year), all of which is reserved for the
payment of debt service. The net increase in fund balance during the current year in the debt service fund was $77,618
($1,916,084 increase the previous year). The increase was 2.95% and was due to excess revenues over expenditures. The
government enacted a dedicated property tax for debt service at the beginning of the current fiscal year. This tax produced
revenues of $1,483,577 in the current fiscal year ($1,418,025 the previous year).
Proprietary Fund
The City of Paris' proprietary fund provides the same type of information found in the government-wide financial statements,
but in more detail.
Unrestricted net assets of the Water and Sewer Fund at the end of the year amounted to $11,416,134 ($9,815,653 the previous
year). This change was due to a decreased restriction for construction. Other factors concerning the finances of this fund have
already been addressed in the discussion of the City of Paris' business-type activities.
General Fund Budgetary Highlights
The final appropriation of the general fund was under spent by $2,098,585 (under spent $6,287,760 the previous year).
Capital Asset and Debt Administration
Capital Assets
The City of Paris' investment in capital assets for its governmental and business-type activities as of September 30, 2011,
amounts to $81,055,253 ($90,542,054 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. The increase was primarily due to the acquisition of water rights in Pat Mayse Reservoir.
Net Capital Assets
Governmental Activities
Business-ty
pe Activities
Total
2011
2010
2011
2010
2011
2010
Land
$ 5,912,108
$ 5,912,108
$ 339,620
$ 339,620
$ 6,251,728
$ 6,251,728
Buildings and System
10,719,401
11,112,173
38,242,651
39,644,856
48,962,052
50,757,029
Improvements Other
than Buildings
3,509,976
3,080,230
-
-
3,509,976
3,080,230
Machinery, Furniture,
and Equipment
1,952,302
2,559,125
432,051
583,014
2,384,353
3,142,139
Infrastructure
14,709,357
13,324,302
-
-
14,709,357
13,324,302
Construction in Progress
342,635
11,162,124
532,553
1,053,876
875,188
12,216,000
Water Rights-Net
-
-
3,563,235
778,803
3,563,235
778,803
Unamortized
Bond Expense
271,972
299,932
527,392
691,891
799,364
991,823
Total
$37,417,751
$47,449,994
$43,637,502
$43,092,060
$81,055,253
$90,542,054
Additional information on the City of Paris' capital assets can be found in note IV C of the Notes to the Financial Statements.
Long-term Debt
At the end of the current fiscal year, the City of Paris had total bonded debt outstanding of $23,085,000. Of this amount,
$11,830,800 comprises debt being paid for by property tax revenues, and $11,254,200 represents bonds being paid for by water
and sewer revenues.
Outstanding Long-term Debt
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
General Obligation Bonds $ 11,830,800 $ 12,766,600 $ - $ - $ 11,830,800 $ 12,766,600
Revenue Bonds - - 11,254,200 14,638,400 11,254,200 14,638,400
Note - 9,216 - - - 9,216
Total $ 11,830,800 $ 12,775,816 $ 11,254,200 $ 14,638,400 $ 23,085,000 $ 27,414,216
The City of Paris' bond debt decreased by $4,320,000 (15.76%) during the fiscal year. The City maintains an underlying bond
rating from Moody's of A2 (affirmed January 2010) with that rating being upgraded to Aa3 when the issues are insured. In
February 2010, S&P granted the City an underlying rating of A+ upgraded to AAA when insured.
10
The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of assessed
valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally allowed up to
$1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $0.52 per $100 valuation for the 2010-11
fiscal year. This rate was broken down into $0.41713 per $100 valuation for operations and $0.10287 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 6.85% 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 projected to increase 6.68% over the current budget.
• New construction amounted to 7 residential units and 9 commercial units.
• Local population growth is expected to be minimal.
• The tax rate is expected to remain at $.52 per $100 of value.
• Electrical utility franchise fees are expected to hold steady.
All of these factors were considered in preparing the City of Paris' budget for 2011-12.
Requests for Information
This financial report is designed to provide a general overview of the City of Paris' finances for all those with an interest in the
government's finances. Questions concerning any of the information provided in this report or requests for additional
information, should be addressed to the Office of the Finance Director, City of Paris, 135 S.E. First Street, Paris, Texas 75460.
11
City of Paris, Texas Statement 1
Statement of Net Assets
September 30, 2011
Component
Primary Government
Unit
Governmental
Business-Type
Economic
Activities
Activities
Total
Development
ASSETS
Cash and Cash Equivalents
$ 10,362,587
$ 7,922,969
$ 18,285,556
$ 4,000,802
Investments
41181,709
2,082,000
6,263,709
477,344
Receivables (Net of Allowance
for Uncollectibles)
2,312,377
1,870,463
4,182,840
209,000
Internal Balances
620,765
(620,765)
-
-
Inventories
199,519
358,909
558,428
-
Due from Other Governments
515,833
-
515,833
-
Restricted Assets:
Cash and Cash Equivalents
-
226,945
226,945
578,937
Investments
-
525,567
525,567
-
Notes Receivable
4,557
-
4,557
-
Net Pension Asset
132,210
-
132,210
-
Capital Assets (Net of
Accumulated Depreciation):
Land
5,912,108
339,620
6,251,728
1,655,772
Buildings and System
10,719,401
38,242,651
48,962,052
-
Improvements Other Than
Buildings
3,509,976
-
3,509,976
-
Machinery and Equipment
1,952,302
432,051
2,384,353
-
Infrastructure
14,709,357
-
14,709,357
-
Construction in Progress
342,635
532,553
875,188
-
Water Rights (Net of
Accumulated Amortization)
-
3,563,235
3,563,235
-
Unamortized Bond Expense
271,972
527,392
799,364
75,375
Total Assets
55,747,308
56,003,590
111,750,898
6,997,230
The accompanying notes to the financial statements are an integral part of this statement.
12
LIABILITIES
Accounts Payable and
Other Current Liabilities
Accrued Interest
Customers' Deposits
Noncurrent Liabilities:
Due Within One Year
Due in More Than One Year
Total Liabilities
NET ASSETS
Invested in Capital Assets,
Net of Related Debt
Restricted for:
Construction
Debt Service
Notes Receivables
Law Enforcement
Health
Permanent Library Funds,
Nonexpendable
Committed to:
Industrial Incentives
Unrestricted
Total Net Assets
City of Paris, Texas
Statement of Net Assets
September 30, 2011
Primary Government
Governmental Business-Type
Activities Activities Total
640,273 167,206 807,479
130,481 47,076 177,557
- 810,580 810,580
Statement 1
(Continued)
Component
Unit
Economic
Development
20,846
5,984
1,080,200 3,496,333 4,576,533 280,000
11,825,270 8,210,351 20,035,621 1,860,000
13,676,224 12,731,546 26,407,770 2,166,830
25,311,134
31,855,910 57,167,044 1,655,772
3,426,387
- 3,426,387 292,953
95,900
- 95,900 -
132,367
- 132,367 -
215,389
- 215,389 -
88,520 - 88,520 -
- - - 1,319,300
12,801,387 11,416,134 24,217,521 1,562,375
$ 42,071,084 $ 43,272,044 $ 85,343,128 $ 4,830,400
13
City of Paris, Texas
Statement of Activities
For the Year Ended September 30, 2011
Functions/Programs
Primary Government:
Governmental Activities:
General Government
Finance
Public Safety
Public Works
Health
Library Service
Cox Field Airport
Interest on Long-Term Debt
Total Governmental Activities
Business-Type Activities:
Water and Sewer
Total Business-Type Activities
Total Primary Government
Component Unit:
Economic Development
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 2,890,290
$ -
437,320
-
9,880,712
606,792
7,667,367
1,775,841
3,202,551
2,608,306
719,240
19,707
220,027
-
438,460
-
25,455,967
5,010,646
10,694,363 13,798,137
10,694,363 13,798,137
$ 326,552
202,827
655,612
671,018
5,066
82,267
10,289
1,953,631
197,200
8,428
205,628
$ 36,150,330 $ 18,808,783 $ 1,953,631 $ 205,628
$ 848,107 $ - $ - $ -
General Revenues:
Property Taxes
Sales Taxes
Franchise Taxes
Hotel Occupancy Tax
Unrestricted Investment Earnings
Contribution Income
Transfers
Total General Revenues, Contribution Income, and Transfers
Changes in Net Assets
Net Assets - Beginning, October 1, 2010
Net Assets - Ending, September 30, 2011
The accompanying notes to the financial statements are an integral part of this statement.
14
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Component Unit
Governmental
Business-Type
Economic
Activities
Activities
Total Development
$ (2,563,738)
$ -
$ (2,563,738) $ -
(437,320)
-
(437,320) -
(9,071,093)
-
(9,071,093) -
(5,038,714)
-
(5,038,714) -
76,773
-
76,773 -
(686,039)
-
(686,039) -
(137,760)
-
(137,760) -
(428,171)
-
(428,171) -
(18,286,062)
-
(18,286,062) -
-
3,103,774
3,103,774 -
-
3,103,774
3,103,774 -
(18,286,062)
3,103,774
(15,182,288) -
(848,107)
7,620,281
-
7,620,281
-
6,033,469
-
6,033,469
1,206,494
2,719,496
-
2,719,496
-
449,213
-
449,213
-
84,327
162,374
246,701
66,494
-
434,500
434,500
7,500
764,880
(764,880)
-
-
17,671,666
(168,006)
17,503,660
1,280,488
(614,396)
2,935,768
2,321,372
432,381
42,685,480
40,336,276
83,021,756
4,398,019
$ 42,071,084
$ 43,272,044
$ 85,343,128
$ 4,830,400
15
~ ` ```c,,, ITS ' ~ ~ ~~F~~ ~ ~ ~I
° ~u uw, u ~uuu~u u\uu~@, uuu~.~. euuu~ u\u~ u~u~\\\ueauuaem\\~a.a~a\a~~
City of Paris
Balance Sheet - Governmental Funds
September 30, 2011
Debt
General
Service Capital Projects
ASSETS
Cash and Cash Equivalents
$ 6,671,715
$ 2,082,006 $ 1,029,232
Investments
4,093,496
- -
Receivables (Net of
Allowance for
Uncollectibles)
2,161,664
94,813 -
Notes Receivable
4,557
- -
Due from Other Funds
-
620,765 -
Inventories
199,519
- -
Due from Other Governments
188,992
- -
Other
Governmental
Funds
Statement 3
Total
Governmental
Funds
$ 579,634 $ 10,362,587
88,213 4,181,709
55,900 2,312,377
- 4,557
56,204 676,969
- 199,519
326,841 515,833
Total Assets
$ 13,319,943
$ 2,797,584
$ 1,029,232
$ 1,106,792
$ 18,253,551
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable
$ 255,579
$ -
$ 309,117
$ 75,577
$ 640,273
Due to Other Funds
56,204
-
-
-
56,204
Deferred Revenue
652,472
91,312
-
53,340
797,124
Total Liabilities
964,255
91,312
309,117
128,917
1,493,601
Fund Balances:
Nonspendable:
Inventory
199,519
-
-
-
199,519
Permanent Fund Principal
-
-
-
88,520
88,520
Restricted For:
Debt Service
-
2,706,272
720,115
-
3,426,387
Notes
-
-
-
95,900
95,900
Law Enforcement
-
-
-
132,367
132,367
Health
-
-
-
215,389
215,389
Assigned:
Library
-
-
-
123,249
123,249
Community Development
-
-
-
322,450
322,450
Unassigned: General Fund
12,156,169
-
-
-
12,156,169
Total Fund Balances
12,355,688
2,706,272
720,115
977,875
16,759,950
Total Liabilities and
Fund Balances
$ 13,319,943
$ 2,797,584
$ 1,029,232
$ 1,106,792
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. (Net of Accumulated Depreciation) 37,145,779
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred or not reflected in the funds. 929,335
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported in the funds. (12,763,980)
Net assets of governmental activities $ 42,071,084
The accompanying notes to the financial statements are an integral part of this statement.
16
City of Paris, Texas Statement 4
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2011
Other
Total
Debt
Capital
Governmental
Governmental
General
Service
Projects
Funds
Funds
Revenues:
Taxes:
Ad Valorem
$ 6,138,790
$ 1,483,577
$ -
$ -
$ 7,622,367
Sales
6,033,469
-
-
-
6,033,469
Hotel Occupancy
449,213
-
-
-
449,213
Franchise and Gross Receipts
2,719,496
-
-
-
2,719,496
Licenses and Permits
112,142
-
-
-
112,142
Fines and Fees
501,601
-
-
-
501,601
Use of Money and Property
276,105
10,289
16,412
11,142
313,948
Public Safety
-
-
-
40,297
40,297
Sanitation
1,461,736
-
-
-
1,461,736
Health
2,342,766
-
-
235,730
2,578,496
Intergovernmental Revenues
788,084
-
-
980,238
1,768,322
Other
244,481
-
-
2,873
247,354
Total Revenues
21,067,883
1,493,866
16,412
1,270,280
23,848,441
Expenditures:
Current:
General Government
1,170,774 - 30,556
18,277
1,219,607
Finance
425,455 - -
-
425,455
Public Safety
9,142,531 - -
12,115
9,154,646
Public Works
5,469,848 - 1,679,363
310,221
7,459,432
Health
2,146,210 - -
908,339
3,054,549
Library Service
627,907 - -
3,070
630,977
Cox Field Airport
107,276 - -
-
107,276
Other
1,545,147 - -
-
1,545,147
Debt Service:
Principal
9,216 935,800 -
-
945,016
Interest
- 480,448 -
-
480,448
Capital Outlay:
General Government
79,551 - -
-
79,551
Public Safety
176,875 - -
-
176,875
Public Works
409,664 - -
-
409,664
Health
126,850 - -
-
126,850
Cox Field Airport
22,683 - -
-
22,683
Total Expenditures
21,459,987 1,416,248 1,709,919
1,252,022
25,838,176
Excess (Deficiency) of
Revenues Over
(Under) Expenditures (392,104) 77,618 (1,693,507) 18,258 (1,989,735)
The accompanying notes to the financial statements are an integral part of this statement.
17
City of Paris, Texas
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2011
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Changes
in Fund Balances
Fund Balances -
September 30, 2010
Increase (Decrease)
in Inventory
Fund Balances -
September 30, 2011
Statement 4
(Continued)
Other
Total
Debt
Capital
Governmental
Governmental
General
Service
Projects
Funds
Funds
1,176,462
-
-
-
1,176,462
(4,807)
-
(370,312)
(36,462)
(411,581)
1,171,655
-
(370,312)
(36,462)
764,881
779,551
77,618
(2,063,819)
(18,204)
(1,224,854)
11,591,551
2,628,654
2,783,934
996,079
18,000,218
(15,414)
-
-
-
(15,414)
$ 12,355,688
$2,706,272
$ 720,115
$ 977,875
$ 16,759,950
18
'I'T FQ~ P-\,A,,,,
City of Paris, Texas Statement 5
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2011
Amounts reported for governmental activities in the statement of activities (Statement 2) are
different because:
Net change in fund balances - total governmental funds (Statement 4). $ (1,224,854)
Governmental funds reported capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount by which depreciation exceeded
capital outlays in the current period. (309,283)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. 228,249
Accrued interest reported in the statement of activities does not require the use of current
financial resources and, therefore, is not reported as an expenditure in governmental funds. 41,988
The net change in inventory is a direct adjustment to fund balance in the funds. (15,414)
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds. (274,044)
The issuance of long-term debt (e.g. bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets. Also, governmental funds report the effect of issuance
costs, premium, discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities. This amount is the net
effect of these differences in the treatment of long-term debt and related items. 938,962
Change in net assets of governmental activities (Statement 2). $ (614,396)
The accompanying notes to the financial statements are an integral part of this statement.
19
City of Paris, Texas
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual
General Fund
For the Year Ended September 30, 2011
Budgeted Amounts
Original
Final
Revenues:
Ad Valorem Taxes $
6,298,848
$ 6,298,848
Municipal Sales Tax
5,630,000
5,630,000
Hotel Occupancy Tax
480,000
480,000
Franchise and Gross
Receipts Tax
2,635,600
2,635,600
Licenses and Permits
96,125
96,125
Fines and Fees
516,100
516,100
Use of Money and Property
374,511
374,511
Sanitation
1,496,445
1,496,445
Emergency Medical Services
2,331,208
2,331,208
Intergovernmental Revenues
1,989,351
1,989,351
Other
224,850
224,850
Total Revenues
22,073,038
22,073,038
Expenditures:
General Government:
Council
111,423
134,423
Manager
295,587
300,587
Attorney
426,448
426,448
Municipal Court
231,178
231,178
Clerk
160,065
160,065
Total General Government
1,224,701
1,252,701
Finance:
Accounting and Auditing
469,876
469,876
Public Safety:
Police
6,131,484
6,037,884
Fire
3,780,611
3,874,811
Total Public Safety
9,912,095
9,912,695
Public Works:
Community Development
1,498,643
1,248,643
Engineering
458,905
458,905
Public Works
210,063
210,063
Parks and Recreation
1,862,050
1,862,050
Sanitation
1,089,433
1,014,933
Streets and Highways
1,529,556
1,529,556
Traffic and Public Lighting
497,401
497,401
Garage
283,535
283,535
Total Public Works
7,429,586
7,105,086
Actual
$ 6,138,790
6,033,469
449,213
2,719,496
112,142
501,601
276,105
1,461,736
2,342,766
788,084
244,481
21,067,883
203,779
298,399
383,651
219,364
145,131
1,250,324
425,455
5,757,375
3,566,305
9,323,680
877,182
426,212
204,203
1,149,278
877,540
1,578,475
484,776
277,570
5,875,236
The accompanying notes to the financial statements are an intregal part of this statement.
Statement 6
Variance with
Final Budget
$ (160,058)
403,469
(30,787)
83,896
16,017
(14,499)
(98,406)
(34,709)
11,558
(1,201,267)
19.631
(1,005,155)
(69,356)
2,188
42,797
11,814
14,934
2,377
44,421
280,509
308,506
589,015
371,461
32,693
5,860
712,772
137,393
(48,919)
12,625
5,965
1,229,850
20
City of Paris, Texas
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual
General Fund
For the Year Ended September 30, 2011
Expenditures: (Continued)
Emergency Medical Services
Cox Field Airport
Paris Band
Library Services
General
Contingency
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Sources
and (Uses):
Transfers In
Transfers Out
Total Other Financing
Sources and (Uses)
Net Changes in Fund Balance
Fund Balance -
September 30, 2010
Decrease in Inventory
Fund Balance -
September 30, 2011
Budgeted Amounts
Statement 6
(Continued)
Variance with
Original
Final
Actual
Final Budget
2,294,297
2,347,147
2,278,248
68,899
113,390
133,390
129,959
3,431
20,850
22,350
22,218
132
633,634
633,634
627,907
5,727
1,491,041
1,491,041
1,526,960
(35,919)
50,000
-
-
-
23,639,470
23,367,920
21,459,987
1,907,933
(1,566,432)
(1,294,882)
(392,104)
902,778
1,140, 000 1,140,000
1,140,000 1,140,000
(426,432)
11,591,551
(154,882)
11,591,551
11176,462 36,462
(4,807) (4,807)
1,171,655 31,655
779,551 934,433
11,591,551 -
(15,414) (15,414)
$ 11,165,119 $ 11,436,669 $ 12,355,688 $ 919,019
21
City of Paris, Texas
Statement of Net Assets
Proprietary Funds
September 30, 2011
Statement 7
Water and Sewer
Water and Sewer
Enterprise Fund
Enterprise Fund
Current Year
Prior Year
ASSETS
Current Assets:
Cash and Cash Equivalents - Pooled
$ 7,549,516
$ 4,382,910
Cash and Cash Equivalents - Non-Pooled
373,453
2,777,652
Restricted Cash and Cash Equivalents:
Revenue Bond Construction Accounts - Pooled
-
1,636,722
Customer Deposits - Pooled
226,945
251,169
Total Cash and Cash Equivalents
8,149,914
9,048,453
Accounts Receivable - Net
1,868,719
2,088,930
Accrued Interest Receivable
1,744
2,781
Inventories
358,909
297,833
Total Current Assets
10,379,286
11,437,997
Non-Current Assets:
Investments:
Customer Deposits
525,567
478,987
Unrestricted
2,082,000
2,633,365
Total Investments
2,607,567
3,112,352
Water Rights, Net of Accumulated Amortization
3,563,235
778,803
Unamortized Bond Expense
527,392
691,891
Capital Assets:
Land
339,620
339,620
Plant, Pumps and Motors
32,638,547
32,475,478
Distribution System
38,253,301
36,980,361
Collection System
22,318,244
22,293,694
Maintenance Equipment and Vehicles
2,574,510
2,612,009
Furniture and Equipment
244,222
244,222
Construction in Progress
532,553
1,053,876
Less Accumulated Depreciation
(57,354,122)
(54,377,894)
Total Capital Assets (Net of Accumulated Depreciation)
39,546,875
41,621,366
Total Non-Current Assets
46,245,069
46,204,412
Total Assets
56,624,355
57,642,409
The accompanying notes to the financial statements are an intregal part of this statement.
22
City of Paris, Texas Statement 7
Statement of Net Assets (Continued)
Proprietary Funds
September 30, 2011
Water and Sewer
Water and Sewer
Enterprise Fund
Enterprise Fund
Current Year
Prior Year
LIABILITIES
Current Liabilities:
Accounts Payable
167,206
99,919
Payable to U.S.A. for Water Rights - Current Portion
-
480,909
Interest Payable
47,076
128,643
Customers' Deposits
810,580
804,895
Accrued Compensated Absences - Current Portion
6,533
2,350
Due to Other Funds
620,765
640,368
General Obligation Bonds Payable - Current Portion
3,489,800
3,384,200
Total Current Liabilities
5,141,960
5,541,284
Non-Current Liabilities:
General Obligation Bonds Payable - Long-Term Portion
7,764,400
11,254,200
Unamortized Bond Premium
310,387
402,793
Accrued Compensated Absences Long-Term Portion
135,564
107,856
Total Non-Current Liabilities
8,210,351
11,764,849
Total Liabilities
13,352,311
17,306,133
NET ASSETS
Invested in Capital Assets, Net of Related Debt
31,855,910
28,883,901
Restricted for Construction
-
1,636,722
Unrestricted
11,416,134
9,815,653
Total Net Asssets
$ 43,272,044
$ 40,336,276
23
@~ ~TT 'IFY a AN A t,
a~` ~•S".>~.uwuuu~ q~~o~o~ uua.~~u~uuul. ~uuuc. ~H~CSC. uuuu~ ~uu~\ uuuu~u~uu~u~uuuu~~. uuu~.'~~uu~
City of Paris, Texas Statement 8
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2011
Water and Sewer
Water and Sewer
Enterprise Fund
Enterprise Fund
Current Year
Prior Year
Operating Revenues:
Charges for Sales and Services:
Water Sales and Taps
$ 8,336,146
$ 8,072,440
Sewer Charges and Taps
4,951,015
4,968,912
Sanitation Billing Fees
77,296
69,729
Service Charges
164,094
162,454
Industrial Surcharges
94,369
210,511
Miscellaneous
175,217
166,440
Total Operating Revenues
13,798,137
13,650,486
Operating Expenses:
Personnel
3,030,918
3,040,784
Supplies
1,123,279
962,988
Contractual
2,024,526
1,808,652
Maintenance
550,199
529,452
Sundry Charges
430,558
345,671
Other
42,386
45,252
Depreciaton
3,045,371
3,002,136
Total Operating Expenses
10,247,237
9,734,935
Operating Income
3,550,900
3,915,551
Non-Operating Income (Expense):
Investment Earnings
162,374
103,220
Interest Expense - Revenue and General Obligation Bonds
(340,226)
(629,957)
Amortization of Bond Issue Expense
(164,499)
(76,916)
Bank Charges
-
(1,000)
Amortization of Water Rights
(34,807)
(13,667)
Amortization of Bond Premium
92,406
32,532
Intergovernmental Revenue
395,144
728,317
Net Non-Operating Income (Expense)
110,392
142,529
Income (Loss) Before Capital Contributions and Transfers
3,661,292
4,058,080
Capital Contributions
39,356
-
Transfers In
375,120
1,873,035
Transfers Out
(1,140,000)
(2,935,174)
Changes in Net Assets
2,935,768
2,995,941
Total Net Assets - Beginning
40,336,276
37,340,335
Total Net Assets - Ending
$ 43,272,044
$ 40,336,276
The accompanying notes to the financial statements are an integral part of this statement.
24
City of Paris, Texas
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2011
Cash Flows from Operating Activities
Water and Sewer
Enterprise Fund
Current Year
Statement 9
Water and Sewer
Enterprise Fund
Prior Year
Receipts from Customers and Users
$ 14,024,033
$ 13,329,478
Payments to Suppliers
(2,151,796)
(1,870,663)
Payments to Employees
(2,995,807)
(3,037,068)
Payments to Contractors
(1,931,106)
(1,776,908)
Increase (Decrease) in Interfund Payables
(19,603)
637,493
Net Cash Provided by Operating Activities
6,925,721
7,282,332
Cash Flows from Noncapital Financing Activities
Transfers In
4,808
845,000
Transfers Out
(1,140,000)
(2,935,174)
Net Cash Used by Noncapital Financing Activities
(1,135,192)
(2,090,174)
Cash Flows from Capital and Related Financing Activities
Purchase of Capital Assets
(646,164)
(1,322,736)
Refunded Bonds Issued
-
13,235,000
Principal Paid on Revenue Bonds
(3,384,200)
(3,186,200)
Bonds Redeemed
-
(13,325,000)
Principal Paid on Water Rights
(480,909)
(33,681)
Purchase of Water Rights
(2,819,239)
-
Interest Paid on Long-Term Debt
(421,793)
(719,347)
Bond Issue Cost
-
(335,828)
Premium on Bonds Issued
-
435,325
Agent Fees Paid on Revenue Bonds
-
(1,000)
Construction Grants
395,144
756,945
Net Cash Used by Capital and Related Financing Activities
(7,357,161)
(4,496,522)
Cash Flows from Investing Activities
Interest on Investments
Purchase of Investment Securities
Maturities of Investments
Net Cash Provided by Investing Activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning
Cash and Cash Equivalents - Ending
142,367
(515,465)
1,041,191
668,093
(898,539)
9,048,453
$ 8,149,914
113,102
(1,821,231)
1,880,003
171,874
867,510
8,180,943
$ 9,048,453
The accompanying notes to the financial statements are an integral part of this statement.
25
City of Paris, Texas Statement 9
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2011
Water and Sewer
Water and Sewer
Enterprise Fund
Enterprise Fund
Current Year
Prior Year
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities:
Operating Income (Loss)
$ 3,550,900
$ 3,915,551
Adjustments to Reconcile Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Depreciation
3,045,371
3,002,136
Decrease (Increase) in Accounts Receivable
220,211
(319,762)
Decrease (Increase) in Inventory
(61,076)
(12,700)
Increase in Customers' Deposits
5,685
24,124
Increase (Decrease) in Due to Other Funds
(19,603)
637,493
Increase in Accrued Compensated Absences
31,891
3,716
Increase in Accounts Payable
152,342
31,774
Total Adjustments
3,374,821
3,366,781
Net Cash Provided by (Used in) Operating Activities
$ 6,925,721
$ 7,282,332
Noncash Investing, Capital, and Financing Activities:
Increase (Decrease) in Market Value of Investments
$ 20,941
$ (12,101)
Capital Contributions
$ 39,356
$ -
26
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City of Paris, Texas
Notes to Financial Statements
September 30, 2011
I. Summary of Significant Accounting Policies
A. Reporting Entity
The City of Paris, Texas (the City), operates under a council-manager form of government with
the mayor and six council members being elected. The accompanying financial statements present
the government and its component unit. The discretely presented component unit is reported in a
separate column in the government-wide financial statements (see note below for a description) to
emphasize that it is legally separate from the government.
Discretely Presented Component Unit: The Paris Economic Development Corporation (PEDC) is
a governmental non-profit corporation established July 19, 1993, funded by a quarter percent sales
tax. PEDC was organized exclusively for the purpose of benefiting and accomplishing public
purposes of the City of Paris, Texas, by promoting, assisting, and enhancing economic
development activities for the City as provided by the Development Corporation Act of 1979. The
business and affairs are managed by 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 and its component unit. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from the legally separate component unit.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund 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 for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provided have been met.
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and
accounting entity with a self-balancing set of accounts. Fund accounting segregates funds
according to their intended purpose and is used to aid management in demonstrating compliance
with finance-related legal and contractual provisions. The minimum number of funds is
maintained consistent with legal and managerial requirements.
27
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, 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 accrual basis of accounting. Under the modified accrual basis of accounting revenues
are recognized when susceptible to accrual (i.e., when they are "measurable and available").
"Measurable" means the amount of the transaction can be determined and "available" means
collectible within the current period or soon enough thereafter to pay liabilities of the current
period. The City considers all revenues available if they are collected within 60 days after year-
end. Expenditures are recorded when the related fund liability is incurred, except for unmatured
interest on general long-term debt which is recognized when due, and certain compensated
absences and claims and judgments which are recognized when the obligations are expected to be
liquidated with expendable available financial resources.
Property taxes, franchise taxes, licenses, interest, and special assessments are susceptible to
accrual. Sales taxes are recognized as revenue in the period when the exchange transaction on
which the tax is imposed occurs. Other receipts and taxes become measurable and available when
cash is received by the City and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City. It accounts for and reports all
financial resources not accounted for in another fund.
The Capital Projects Funds account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlay.
The Debt Service Funds account for and report financial resources that are restricted,
committed, or assigned to expenditures for principal and interest.
The City reports non-major governmental funds as Other Governmental Funds which include
special revenue funds and a permanent fund. Special Revenue Funds are used to account for
and report the proceeds of specific revenue sources that are restricted or committed to
expenditures for specific purposes other than for debt service or capital projects. The
Permanent Fund is used to account for and report resources that are restricted to the extent that
only earnings and not principal may be used.
The City reports its Water and Sewer Enterprise Fund, a proprietary fund as a major fund.
Proprietary funds are accounted for on the flow of economic resources measurement focus and
use the accrual basis of accounting. Under this method, revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred. The City applies all applicable
Financial Accounting Standards Board pronouncements issued after November 30, 1989, in
accounting and reporting for its proprietary operations.
28
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
1. Summary of Significant Accounting Policies (Continued)
C. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the water and sewer enterprise fund are charges to customers for
sales and services. The water and sewer fund also recognizes as operating revenue the portion of
tap fees intended to recover the cost of connecting new customers to the system. Operating
expenses for enterprise funds include the cost of sales and service, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
Proprietary funds include the following:
The Enterprise Fund is used to account for operations that are financed and operated in a
manner similar to private business enterprises, where the governing body has decided that the
determination of revenues earned, costs incurred, and/or net income is necessary for
management accountability.
D. Assets, Liabilities and Equity
1. Deposits and Investments
Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from date of acquisition.
Statutes authorize the City and PEDC to invest in obligations of the U. S. Treasury, direct
obligations of the State of Texas, other obligations guaranteed or insured by the State of Texas
or the United States, obligations of states and political subdivisions of any state meeting certain
rating requirements, certificates of deposit, and fully collateralized direct repurchase
agreements having a defined termination date.
The City did not engage in repurchase or reverse repurchase agreement transactions during the
current year.
Investments are reported in the accompanying balance sheet at fair value with changes in fair
value being reported as part of investment income.
2. Receivables and Payables
Transactions between funds that would be treated as revenues, expenditures, or expenses if the
involved organizations were external to the governmental unit (interfund services provided) are
accounted for as revenues, expenditures, or expenses in the funds involved.
29
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
1. Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
2. Receivables and Payables (Continued)
Transactions which constitute reimbursements to a fund for expenditures or expenses initially
made from that fund which were properly applicable to another fund are recorded as
expenditures or expenses in the reimbursing fund and as reductions of the expenditure or
expense in the fund that is reimbursed.
The City's ad valorem taxes are levied on October I and are due no later than January 31 of the
following year. Taxes become delinquent February 1, after which time penalties and interest
and, if not paid by July, attorney's collection fees are added. A tax lien attaches to property
(real and personal) on January 1 of each year to secure the payment of all taxes, penalties, and
interest ultimately imposed on the property. The lien is effective until all such amounts are
paid.
3. Inventories
Inventories are valued at cost using the first-in, first-out method. Inventories of governmental
funds are recorded as expenditures when consumed rather than when purchased.
4. Restricted Assets
Prior to the issuance of General Obligation Refunding Bonds, Series 2010, the City's Water
and Sewer Revenue Bonds and Certificates of Obligation covenants required certain
restrictions of net assets. After the refunding occurred, these legal restrictions no longer
existed. In order to safeguard the financial integrity of the water and sewer system, the City
Council approved a resolution establishing and maintaining funds comparable to those required
by the refunded bonds.
5. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items) are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets are defined
by the government as assets with an initial, individual cost of more than $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.
30
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
1. Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
5. Capital Assets (Continued)
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. The total interest expense
incurred by business-type activities during the current fiscal year was $340,226. Of this
amount, none was included as part of the cost of capital assets under construction in connection
with water line and sewer line construction projects.
Property, plant, and equipment of the primary government, as well as the component unit, is
depreciated using the straight line method over the following estimated useful lives:
Buildings and Improvements 20-40 years
Furniture, Fixtures and Equipment 5-10 years
Vehicles 5 years
Public Domain Infrastructure 25-45 years
System Infrastructure 25-30 years
6. Compensated Absences
Vacation and sick leave benefits are accumulated by City employees in accordance with
guidelines suggested in the City's personnel policies.
7. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement
of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as issuance costs, during the current period. The face amount of debt issued
is reported as other financing sources. Premiums received on debt issuances are reported as
other financing sources while discounts on debt issuances are reported as other financing uses.
Issuance costs, even if withheld from the actual net proceeds received, are reported as debt
service expenditures.
31
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
1. Summary of Significant Accounting Policies (Continued)
D. Assets, Liabilities and Equity (Continued)
8. Fund Equity
It is the City's policy to first use restricted fund balance prior to the use of unrestricted fund
balance when an expense is incurred for purposes for which both restricted and unrestricted
fund balance are available. The City's policy for the use of unrestricted fund balance amounts
require that committed amounts would be reduced first, followed by assigned amounts and
then unassigned amounts when expenditures are incurred for purposes for which amounts in
any of those restricted fund balance classifications could be used.
II. Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the
Government-Wide Statement of Net Assets
The governmental fund balance sheet includes a reconciliation between fund balance - total
governmental funds and net assets - governmental activities as reported in the government-wide
statement of net assets. One element of that reconciliation explains that "long-term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds." The details of this $12,763,980 difference are as follows:
Bonds Payable
$ 11,830,800
Less: Deferred Charge for Issuance Costs (to be Amortized
Over the Life of the Debt)
(271,972)
Premiums on Bonds Payable (to be Amortized
Over the Life of the Debt)
103,360
Accrued Interest Payable
130,482
Compensated Absences
782,085
OPEB Liability
122,352
Landfill Post Closure Care Costs
66,873
Net Adjustment to Reduce Fund Balance - Total Governmental Funds
to Arrive at Net Assets - Governmental Activities
$ 12,763,980
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activity
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances - total governmental funds and
changes in net assets of governmental activities as reported in the government-wide statement of
activities. One element of that reconciliation explains that "governmental funds report capital
outlays as expenditures. However, in the statement of activities the cost of those assets is
32
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
Il. Reconciliation of Government-Wide and Fund Financial Statements (Continued)
B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activity
(Continued)
allocated over their estimated useful lives and reported as depreciation expense." The details of
this ($309,283) difference are as follows:
Capital Outlay $ 2,490,252
Depreciation Expense (2,799,535)
Net Adjustment to Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Assets
of Governmental Activities $ (309,283)
Another element of that reconciliation states that "the issuance of long-term debt (e.g. bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, governmental funds report the
effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas
these amounts are deferred and amortized in the statement of activities." The details of this
$973,962 difference are as follows:
Amortization of Issuance Costs $ (27,960)
Amortization of Premiums 21,906
Principal Repayments 945,016
Net Adjustment of Increase Net Changes in Fund Balances -
Total Governmental Funds to Arrive at Changes in Net Assets
of Governmental Activities $ 938,962
III. Stewardship Compliance and Accountability
Budgetary Information
Annual budgets are legally adopted on a basis consistent with generally accepted accounting
principles for all governmental funds except the capital projects funds, proprietary funds, and
library trust funds. The budget for the capital projects funds is legally adopted for specific projects
and may exceed one year. Formal budgetary integration is not employed for the proprietary funds.
The City adopts an annual, informal budget as a financial plan for all proprietary funds. The
library trust funds include non-budgeted financial activities, which are not subject to an
appropriated budget and the appropriation process or to any legally authorized non-appropriated
budget review and approval process. The community development block grant fund is not
annually appropriated. At the close of each fiscal year, any unencumbered appropriation balance
(appropriations including prior year encumbrances less current year expenditures and
encumbrances) lapse or revert to the undesignated fund balance.
33
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
III. Stewardship Compliance and Accountability (Continued)
Budgetary Information (Continued)
At least thirty days prior to the beginning of each fiscal year, the City Manager submits to the City
Council a proposed budget for the fiscal year beginning on the following October 1. The
operating budget which represents the financial plan for the ensuing fiscal year includes proposed
expenditures and the means of financing them. Public hearings are conducted at which all
interested persons' comments concerning the budget are heard.
The budget for the next fiscal year is legally enacted by the City Council through passage of an
ordinance not later than the twenty-seventh day of the last month of the fiscal year. If the City
Council does not enact the budget within this time period, then the budget as submitted by the City
Manager becomes the legally authorized budget.
Expenditures may not legally exceed appropriations at the department level for each legally
adopted annual operating budget. The City Manager may, without Council approval, transfer
appropriation balances from one expenditure account to another within a department or agency of
the City. The City Council, however, must approve any transfer or unencumbered appropriation
balances or portions thereof from one department or agency to another. During the year ended
September 30, 2011, the City Council approved a transfer of $216,350 from nine line items to
several departmental line items.
IV. Detailed Notes on All Funds and Component Unit
A. Deposits and Investments
Custodial Credit Risk for deposits is the risk that in the event of a bank failure, the City's deposits
may not be returned or the City will not be able to recover collateral securities in the possession of
an outside party. The City's policy requires deposits to be secured by collateral valued at market
or par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation
insurance (FDIC). Collateral agreements must be approved prior to deposit of funds as provided
by law. The City was not exposed to custodial credit risk since deposits are insured or collaterized
with securities held by the pledging financial institution's agent in the name of the City.
34
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
A. Deposits and Investments (Continued)
As of September 30, 2011, the City and Component Unit had the following investments:
Credit Weighted Average
Type of Security Fair Value Rating Maturity (Years)
Primary Government
Mortgage Backed Securities:
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Bank
Certificates of Deposit
Totals
$ 1,297,361
AAA
6.77
3,395,251
AAA
3.05
2,008,451
AAA
0.25
88,213
Not Rated
0.50
$ 6,789,276
2.90
Component Unit - PEDC
Certificates of Deposit
$ 477,344 Not Rated 0.60
Interest Rate Risk. It is the policy of the City to invest public funds in a manner which will
provide the highest investment return with the maximum security while meeting the daily cash
flow demands of the entity and conforming to all state and local statutes governing the investment
of public funds. The City's investment portfolio will be designed with the objective of attaining a
rate of return throughout budgetary and economic cycles and commensurate with the City's
investment risk constraints and the cash flow characteristics of the portfolio. The City's
investment strategy is active. Given this strategy, the basis used by the Finance Director to
determine whether market yields are being achieved shall be the six-month U.S. Treasury Bill and
the Average Fed Funds rate. No other formal policy related to interest rate risk is included in the
City's adopted investment policy.
Credit Risk is the risk that an issuer or other counter-party will not fulfill its obligations. Investing
is performed in accordance with the City's investment policy adopted by the City Council
complying with State law and the City Charter. City funds may be invested in securities
authorized by Chapter 2256 of the State of Texas Government Code.
Concentration of Credit Risk. The City's policy is to diversify its investments by security type
and institution. With the exception of obligations of the United States or its agencies and
authorized pools, no more than 50% of the City's total investment portfolio will be invested in a
single financial institution with the exception of its local depository.
35
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
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, 2011, 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 $275,904 of the PEDC bank balance of $908,248 was uninsured.
Custodial Credit Risk - Investments. For an investment, this is the risk that in the event of the
failure of the counter-party, the City may not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. As of September 30, 2011, the
City did not have custodial credit risk exposure.
Foreign Currency Risk is the risk that an investment denominated in the currency of a foreign
country could reduce its United States of America dollar value as a result of changes in foreign
currency exchange rates. At September 30, 2011, the City was not exposed to foreign currency
risk.
B. Receivables
Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as
follows:
Special
General
Revenue
Receivables:
Interest
$ 12,275
$ -
Property Taxes
738,995
-
Sales Tax
1,046,000
-
Accounts
230,308
-
Other Governments
188,992
326,841
Street Assessments
26,473
-
Fines
103,211
-
EMS
2,775,209
-
Notes Receivable
4,557
55,900
Gross Receivables
5,126,020
382,741
Less: Allowable for
Uncollectibles
(2,770,807)
-
Net Total Receivables
$ 2,355,213
$ 382,741
Debt
Service Enterprise
$ - $ 1,744
126,417 -
1,918,719
126,417 1,920,463
31,604 50,000
$ 94,813 $ 1,870,463
Net receivable balances not expected to be collected within one year are Property Taxes -
$405,210, Fines - $1,600, EMS - $100,000, and Street Assessments - $26,473.
At year end, PEDC had a receivable for sales tax of $209,000.
36
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets
Capital Assets activity for the year ended September 30, 2011, follows:
Governmental Activities
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets,
Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Total Capital Assets,
Being Depreciated
Less Accumulated Depreciation for:
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets,
Being Depreciated, Net
Governmental Activities,
Capital Assets, Net
Balance
Balance
September 30,
September 30,
2010
Increases
Decreases
2011
$ 5,912,108
$ - $
-
$ 5,912,108
1,162,124
2,101,721
2,921,210
342,635
7,074,232
2,101,721
2,921,210
6,254,743
15,430,302
-
-
15,430,302
5,030,260
615,378
-
5,645,638
17,852,086
308,981
546,835
17,614,232
36,391,488
2,690,382
-
39,081,870
74,704,136
3,614,741
546,835
77,772,042
4,318,129
392,772
-
4,710,901
1,950,030
185,632
-
2,135,662
15,292,961
915,804
546,835
15,661,930
23,067,186
1,305,327
-
24,372,513
44,628,306
2,799,535
546,835
46,881,006
30,075,830
815,206
-
30,891,036
$ 37,150,062 $ 2,916,927 $ 2,921,210 $ 37,145,779
37
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Balance
Balance
September 30,
September 30,
2010
Increases
Decreases
2011
Business-Type Activities
Capital Assets, Not being Depreciated:
Land
$ 339,620
$ -
$ -
$ 339,620
Construction in Process
1,053,876
755,178
1,276,501
532,553
Total Capital Assets,
Not Being Depreciated
1,393,496
755,178
1,276,501
872,173
Capital Assets, Being Depreciated:
Plant, Pumps, and Motors
32,475,478
163,069
-
32,638,547
Distribution System
36,980,361
1,272,940
-
38,253,301
Collection System
223293,694
24,550
-
22,318,244
Maintenance, Equipment and Vehicles
2,612,009
31,644
69,143
2,574,510
Furniture and Equipment
244,222
-
-
244,222
Total Capital Assets,
Being Depreciated
94,605,764
1,492,203
69,143
96,028,824
Less Accumulated Depreciation for:
Plants, Pumps, and Motors
22,086,915
1,053,375
-
23,140,290
Distribution System
17,585,757
1,104,501
-
18,690,258
Collection System
12,432,005
704,888
-
13,136,893
Maintenance Equipment and Vehicles
2,028,995
182,607
69,143
2,142,459
Furniture and Equipment
244,222
-
-
244,222
Total Accumulated Depreciation
54,377,894
3,045,371
69,143
57,354,122
Total Capital Assets,
Being Depreciated, Net
40,227,870
(1,553,168)
-
38,674,702
Business-Type Activities,
Capital Assets, Net
41,621,366
(797,990)
1,276,501
39,546,875
Intangible Asset - Water Rights
1,293,880
2,819,239
-
4,113,119
Less Accumulated Amortization
515,077
34,807
-
549,884
Total Intangible Asset -
Water Rights, Net
778,803
2,784,432
-
3,563,235
Total Capital and Intangible Assets
$ 42,400,169
$ 1,986,442
$ 1,276,501
$ 43,110,110
Component Unit
Capital Assets, Not Being Depreciated:
Land Development Costs $ 1,644,760 $ 11,012 $ - $ 1,655,772
38
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
C. Capital Assets (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government
$ 104,068
Finance
11,865
Public Safety
518,757
Public Works, Including Depreciation of General Infrastructure Asset
1,815,829
Health
148,002
Library Service
88,263
Cox Field Airport
112,751
Total Depreciation Expense - Governmental Activities
$ 2,799,535
Business-Type Activities:
Water and Sewer - Total Depreciation Expense - Business-Type Activities $ 3,045,371
D. Construction Commitments
The City has active construction projects as of September 30, 2011. At year-end the City's
commitments with contractors are as follows:
Project To Date Commitment
Water and Wastewater Capital Improvements $ 21,978 $ 85,213
E. Interfund Receivables, Payables, and Transfers
Interfund balances at year-end consisted of the following individual fur
Fund Receivables
General Fund $ -
Debt Service Fund 620,765
Special Revenue Fund - Health Department 56,204
Water and Sewer Enterprise Fund -
Total $ 676,969
id receivables and payables:
_ Payables
$ 56,204
_ 620,765
$ 676,969
39
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
E. Interfund Receivables, Payables, and Transfers (Continued)
Interfund Transfers:
Water and
General
Sewer
Transfer
Fund
Fund
Out
General Fund
$ -
$ 4,807
$ 4,807
Water and
Sewer Fund
1,140,000
-
1,140,000
Capital Projects Fund
-
370,312
370,312
Other Governmental
36,462
-
36,462
Transfer In
$ 1,176,462
$ 375,119
$ 1,551,581
During the year ended September 30, 2011, the City made budgeted transfers from Water and
Sewer Fund to General Fund for $1,140,000; from the General Fund to the Capital Projects Fund
of $4,807 to complete specific projects. As Water and Sewer projects were completed in the
Capital Projects Fund, accumulated costs were transferred to the Water and Sewer Fund, $370,12.
During the year, a special revenue fund was closed out and the balance was transferred to the
General Fund, $36,462.
F. Long-Term Debt
General Obligation Certificates of Obligation and Other Long-Term Obligations:
$6,060,000 Combination Tax and Revenue Certificates of Obligation, Series 2002, due in annual
installments varying from $280,000 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. The certificates are additionally secured by and payable
from a limited pledge (not to exceed $2,500) of the surplus revenues of the waterworks and sewer
systems.
$7,130,000 General Obligation Refunding Bonds, Series 2003, due in annual installments varying
from $410,000 to $800,000 with final payment due December 15, 2014. Interest is payable semi-
annually at rates ranging from 3.6% 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.
$3,005,000 Combination Tax and Revenue Certificates of Obligation, Series 2010, due in annual
installments varying from $105,000 to $230,000 with final payment due December 15, 2029.
Interest is payable semi-annually at 3.2% to 4.2%. On December 15, 2020, or any date thereafter,
unpaid principal installments may be prepaid or redeemed prior to their scheduled due dates at the
City's option. The certificates are additionally secured by and payable from a limited pledge (not
to exceed $1,000) of the surplus revenues of the waterworks and sewer systems.
40
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
F. Long-Term Debt (Continued)
General Obligation Certificates of Obligation and Other Long-Term Obligations (Continued)
$17,075,000 General Obligation Refunding Bonds, Series 2010, due in annual installments
varying from $1,050,000 to $3,445,000, with final payment due June 15, 2020. Interest is payable
semi-annually at rates ranging from 2.0% to 4.0%. On June 15, 2018, or any date thereafter, the
outstanding bonds may be redeemed prior to their scheduled maturities at the City's option. These
bonds were issued February 15, 2010, at a premium for the purpose of refunding $17,220,000 in
outstanding bonds reported as Enterprise Fund debt and General Obligation debt.
The ordinances require that ad valorem taxes be levied and collected at a rate sufficient to pay
principal and interest as they come due. They also require that these funds be placed in special
interest and sinking funds created solely for the benefit of the obligations. At September 30, 2011,
the fund balances in the Interest and Sinking Funds are $2,076,272.
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 $66,873. These costs are subject to change resulting from
inflation, deflation, technology, or changes in applicable laws or regulations.
Water Rights Debt:
Long-term debt service requirements for the next five years and after in five year increments are as
follows:
Year Ending
September 30,
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2030
General Obligation
Principal Interest
$ 1,080,200 $ 422,842
1,119, 800
1,164,000
1,016,800
860,000
4,390,000
1,340,000
860,000
384,778
343,164
302,096
268,655
845,430
265,873
72,285
Water and Sewer
Principal
$ 3,489,800
1,350,200
1,411,000
1,233,200
1,040,000
2,730,000
$ 11,830,800 $ 2,905,123 $ 11,254,200
Remainder of this page intentionally left blank.
41
Interest
327,220
243,358
209,284
162,501
134,206
240,113
$ 1,316,682
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
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, 2011, follows:
Balance
Balance
September 30,
September 30,
Due Within
2010
Additions
Reductions
2011
One year
Governmental Activities
Certificates of Obligation
$ 12,766,600
$ -
$ 935,800
$ 11,830,800
$ 1,080,200
Note
9,216
-
9,216
-
-
Compensated Absences
792,717
80,112
90,744
782,085
90,744
Landfill Post Closure
Care Costs
68,693
-
1,820
66,873
23,030
OPEB Liability
19,519
250,718
147,885
122,352
-
Governmental Activities
Long-Term Liabilities
$ 13,656,745
$ 330,830
$ 1,185,465
$ 12,802,110
$ 1,193,974
Business-Type Activities
Revenue Bonds
$
14,638,400
$
- $
3,384,200
$
11,254,200
$
3,489,800
Water Rights Debt
480,909
-
480,909
-
-
Compensated Absences
110,206
38,425
6,533
142,098
6,533
Business-Type Activities
Long-Term Liabilities
$
15,229,515
$
38,425 $
3,871,642
$
11,396,298
$
3,496,333
Component Unit
Bonds Payable
$
2,415,000
$
- $
275,000
$
2,140,000
$
280,000
Component Unit
Long-Term Liabilities
$
2,415,000
$
- $
275,000
$
2,140,000
$
280,000
For the governmental activities, compensated absences are liquidated by the general fund.
Remainder of this page intentionally left blank.
42
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
F . Long-Term Debt (Continued)
PEDC has outstanding Paris Economic Development Corporation Sales Tax Revenue Refunding
Bonds, Series 2010, originally issued at $2,685,000, bearing interest at 1.76% to 4.39%. Principal
payments are due serially in varying annual amounts to September 1, 2018, from $280,000 to
$340,000.
Sales and Use Taxes (one-quarter of one percent) levied by the City of Paris, Texas, within its
boundaries under the Development Corporation Act of 1979, are pledged for payment of bonds and
interest of the Component Unit. The resolution authorizing the issuance of the bonds requires that
monthly deposits be made to the Debt Service Fund in an amount sufficient to pay the next
maturing bonds and interest.
A Reserve Fund is required to be maintained with a balance of at least $346,192, the average
annual principal and interest requirements of the bonds. At September 30, 2011, the balances in the
Debt Service Fund and Reserve Fund are $108,709 and $470,228, respectively.
Debt Service requirements related to these bonds and notes are as follows:
Bond Debt Requirements
Years
Principal
Interest
Total
2012
$ 280,000
$ 70,192
$ 350,192
2013
290,000
65,264
355,264
2014
290,000
58,536
348,536
2015
300,000
50,271
350,271
2016
315,000
40,221
355,221
2017
325,000
28,251
353,251
2018
340,000
14,926
354,926
$ 2,140,000
$ 327,661
$ 2,467,661
G. Restricted Net Assets and Restricted Asset Accounts
In order to safeguard the financial integrity of the water and sewer system, the City Council
approved a resolution establishing and maintaining funds comparable to those required by the
revenue bonds refunded in 2010. At September 30, 2011, these accounts, shown as cash and
investments on the Statement of Net Assets - Proprietary Funds, are as follows:
Reserve Fund $ 2,235,966
Contingency Fund 776,568
43
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
IV. Detailed Notes on All Funds and Component Unit (Continued)
G. Restricted Net Assets and Restricted Asset Accounts (Continued)
Collections of Notes Receivable are restricted by grant agreements to be used for building
rehabilitation.
The balances of the City's restricted asset accounts are as follows:
Certificates of
Accrued
Deposit and
Interest and
Cash and Cash
Other
Other
Equivalents
Investments
Receivables
Customer Deposits $ 226,945
$ 525,567
$ -
Notes Receivable -
-
55,900
Total Restricted Assets $ 226,945
$ 525,567
$ 55,900
V. Other Information
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City purchases
insurance coverage from commercial insurers and participates in risk pools to limit risk of loss in
these areas. The risk pools maintain adequate protection from catastrophic losses to protect their
financial integrity. Aggregate protection is also maintained to ensure that the City shall at no time
be assessed. The City's contributions are limited to the rates calculated under the agreement.
There has been no significant reduction in insurance coverage during the year ended September
30, 2011. 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 City is not able to impose its will on this entity, and a financial benefit/burden
relationship is not present; therefore, it is considered a related organization.
C. Water Storage Commitments
During the year, a supplemental agreement with the United States of America for water storage
space in Pat Mayse Lake (the Project) was executed. As a result, the City has the right to utilize
an undivided 100% of the usable conservation storage space in the project between elevations 451
feet and 415 feet above sea level which is estimated at 109,600 acre feet. For a payment of
$3,461,432, the City paid off the liability for existing space and acquired the rights to the final
60% storage space. The Government reserves the right to control and use all storage in
accordance with project purposes, to take such measures to preserve life and or property including
the right not to make downstream releases and to inspect, maintain, or repair the project. The City
will be required to pay 10.526% of the cost of joint-use repair, rehabilitation, and replacement and
26.659% of the annual experienced joint-use operation and maintenance of the project.
44
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
D. Water Sales
The City has contracts extending for several years to sell treated and untreated water to five
entities. Total water sales under these contracts to these entities during the year ended September
30, 2011, were approximately $3,703,000.
The City has an agreement with a commercial dairy to furnish a supply of potable water up to
1,500,000 gallons per day for a twenty year term. At September 30, 2011, the dairy was under
construction.
E. Civic Center Contract
The City is a party to a contract with the Chamber of Commerce of Lamar County, Inc. whereby
three-sevenths of the hoteUmotel tax is to be dedicated to a fund to be used for improving,
enlarging, equipping, repairing, operating, or maintaining a civic center. The contract provides
that the Chamber of Commerce of Lamar County, Inc. will operate the civic center through
September 30, 2011, and may be reviewed for four additional one year terms upon written
agreement of the parties. Either party may terminate this contract at the end of the current term by
giving thirty days notice.
F. Contingent Liabilities, Commitments, and Subsequent Events
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the City
expects such amounts, if any, to be immaterial.
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the City's counsel that resolution of these matters will
not have a material adverse effect on the financial condition of the City.
Management has evaluated subsequent events through the date of the report, the date on which the
financial statements were available to be issued.
PEDC has extended several incentive agreements to various companies:
(1) Call center facility - The agreement expires December 31, 2012, and is payable periodically
over the life of the contract. The amount of the incentive is based on the number of
employees and a reimbursement for equipment purchased and tenant improvement. The
contract also provides for refunds should a default by the company occur. Remaining
commitment at September 30, 2011, is $100,000.
(2) Warehouse company - Company is to create 35 new jobs providing an incentive amount of
$105,000.
45
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
F. Contingent Liabilities, Commitments, and Subsequent Events (Continued)
(3) Commercial dairy - Facility is not yet operating but the incentive is to provide
reimbursement (beginning in the sixth year of operation) for the difference in a flat water
rate and the amount actually charged for five years. This amount is estimated to be
$664,300.
(4) Soup manufacturer - The incentive is to participate in the cost of a solar storage structure to
the extent of $100,000.
(5) Bumper manufacturer - Company is to create 20 new jobs providing an incentive amount of
$100,000.
(6) Retail and office structure - Incentive is to participate in reimbursement of sewer line
construction to the extent of $250,000.
In connection with a first lien loan by a bank to a commercial operation in the amount of
$5,800,000, PEDC has entered into a Guaranty of Collection agreement. The loan payment is
guaranteed by an individual (and a related company), and in addition, PEDC has guaranteed the
full and prompt collection of the principal and interest due under the note together with limited
cost of collection. If the lender makes demand under the Guaranty of Collection agreement, the
lender will allow PEDC to satisfy its liability in monthly installments as specified in the original
note. The agreement is dated September 23, 2010, and will terminate when the note is paid or the
expiration of ten years.
In September 2011, the Board of Directors approved a $2,000,000 revolving line of credit with a
bank for future economic development projects. The note is dated September 14, 2011, and bears
interest at 1.29% which is due monthly. The principal is due in one payment on September 12,
2012, and is secured by sales tax revenues and other income received by PEDC except that portion
of income currently obligated or subsequent bond issued as contemplated by the Series 2010
bonds. The interest rate is subject to change based on changes in an independent index and the
rate charged is to be 1.96% under the index which at September 12, 2011, was 3.25%. The note
documents also provide for right of setoff by the lender in all accounts the lender holds and other
restrictions pertaining to issuance of additional debt, maintenance of liquidity, and furnishing of
financial information. At September 30, 2011, no funds have been advanced under this line of
credit.
PEDC has an agreement for office space and other items with the Lamar County Chamber of
Commerce which expires September 30, 2013, and which provides for payment of an annual
service fee of $60,000.
Subsequent to year end, the Board of Directors approved a commitment of $1,500,000 supporting
funding of the expansion to four-lane of State Highway 24 in Delta County, Texas, to be paid
over an amortized twenty years.
46
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
G. Postemployment Benefits Other Than Pensions
The City has in effect a single employer 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, 2011, the contributions were approximately $129,000 for 24 retired employees. An
additional 22 employees were eligible for this benefit. Calculations are based on benefits provided
under the plan in effect at the time of each valuation and on the pattern of sharing of costs.
Actuarial information as of September 30, 2011:
Development of the Annual Required Contribution
Employer Normal Cost
Amortization of UAAL
Annual Required Contribution (ARC)
Percentage Contributed
2009 2010 2011
$ 16,423 $ 20,637 $ 73,791
121,843 121,843 143,761
$ 138,266 $ 142,480 $ 217,552
86% 76% 68%
Amount of Contribution
$
118,747 $
108,331
$
147,885
Interest on Net Obligation
$
- $
878
$
2,415
ARC Adjustment
$
- $
814
$
3,397
Increase in Net Obligation
$
19,519 $
34,149
$
68,684
Net Obligation
$
19,519 $
53,668
$
122,352
The ARC for 2009 and 2010 has been calculated to remain at a level dollar amount and the
unfunded actuarial accrued liabilities were amortized as a level dollar amount over a period of 15
years. For 2011, a closed amortization period for the unfunded actuarial accrued liabilities is 27
years, which is appropriate because the plan has no benefits to employees hired after October 1,
2004. Inflation rate assumption is 3%, healthcare cost trend rate is 3%, and the rate of investment
return is 4.5%. The actuarial calculation for the plan reflects a long-term perspective. 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 they
occur, reduce (increase) the Unfunded Actuarial Accrued Liability. The City's subsidy for a
retiree covered by the plan is assumed to increase 3%. Rates of salary increase vary from 3.5% to
5.25% based on years of service.
47
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
G. Postemployment Benefits Other Than Pensions (Continued)
Determination of Unfunded Actuarial Accrued Liability
Present Value of Future Benefits
i) Retirees and Beneficiaries
ii) Vested Terminated Members
iii) Active Members
Total Present Value of Future Benefits
Present Value of Future Normal Costs
December 31,
2009 2010 2011
$ 1,028,420
$ 1,028,420
$ 765,003
483,343
483,343
2,149,810
1,511,763
1,511,763
2,914,813
173,995
173,995
643,893
Actuarial Accrued Liabilities
Actuarial Value of Assets
Unfunded Actuarial Accrued Liability
$ 1,337,768 $ 1,337,768 $ 2,270,920
$ 1,337,768 $ 1,337,768 $ 2,270,920
Funded Ratio 0.00% 0.00% 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 is
4.5%.
The City intends to obtain an actuarial evaluation of the plan every two years. Actuarial
valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future, and actuarially determined amounts are subject to
continual revision as results are compared to past expectations and new estimates are made about
the future.
H. Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in accordance with
Internal Revenue Code Section 457.
48
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
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 firefighters and a single-employer, defined plan for firefighters.
1. Texas Municipal Retirement System
Plan Description
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 837 currently administered by TMRS, an
agent multiple-employer public employee retirement system. The plan provisions that have
been adopted by the City are within the options available in the governing state statutes of
TMRS.
Benefits
Upon retirement, 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 of three sources: prior service credits, current service credits, and updated service
credits. At 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 or 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 member'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 increased by the City match currently in effect. The resulting sum is then compared
to the member's actual account balance increased by the actual City match and actual interest
credited. If 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.
49
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Benefits (Continued)
The plan provisions are adopted by the governing body of the City, within the options available
in the state statutes governing TMRS. Plan provisions for the City were as follows:
Deposit Rate: 6%
Matching Ratio (City to Employees): 2 to 1
A member is vested after 5 years
Members can retire at certain ages, based on the years of service with the City.
The Service Retirement Eligibilities for the City (expressed as years of service/age) are:
5 years/age 60
20 years/any age
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 cost contribution rate and the prior service cost contribution rate, which is calculated to
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
contribution 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 recognition of the projected impact of annually repeating benefits, such as Updated
Service Credit and Annuity Increases. The employer contribution rate cannot exceed a
statutory maximum 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
contribution rate in advance for budgetary purposes, there is a one-year delay between the
actuarial valuation that serves as the basis for the rate and the calendar year when the rate goes
into effect. For actuarial valuation, the market related method is used for assets. Other
assumptions include no cost-of-living adjustments, projected salary increases vary by age and
service, inflation at 3%, and the investment rate of return is 7.0%. The level percent of payroll
is the amortization method used.
50
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
I. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Contributions (Continued)
During the past three fiscal years, the City has contributed 100% of its annual pension cost as
follows: 2010 - $1,195,726, 2009 - $1,204,639, and 2008 - $1,278,809. At September 30,
2009, 2010, and 2011, the net pension obligation is zero.
Schedule of Funding 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
2008
$ 24,480,444
$ 30,338,881
$ 5,858,437
80.7%
$ 10,784,615
54.3%
2009
25,841,641
31,658,754
5,817,113
81.6
10,635,564
54.7
2010
42,636,949
43,396,366
759,417
98.3
11,352,419
6.7
During the year 2011, state law changed the fund structure of TMRS and a reserve fund
previously not included in the calculation of the funded ratio or calculated contributions was
combined with other funds to form one Benefit Accumulation Fund. As allowed by the new
law, the Actuarial Valuation as of December 31, 2010 reflects the combination of funds and
any other effects of the law.
Restructuring TMRS accounts produces a more efficient funding structure that:
Reduces year-to-date volatility in city contribution rates.
Eliminates the leverage that existed in the former three-fund structure.
Reduces the downside risk of adverse investment returns on city accounts.
Removes the need to maintain a substantial percentage of assets as a reserve.
Results in lower contribution rates for most cities.
Improves actuarial funding rations for most cities.
TMRS issues a publicly available comprehensive annual financial report that includes financial
statements and required supplementary information (RSI) for TMRS; the report also provides
detailed explanations of the contributions, benefits, and actuarial methods and assumptions
used by the system. This report may be obtained from TMRS' website at www.TMRS.com.
51
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
1. Texas Municipal Retirement System (Continued)
Supplemental Death Benefits
The City also participates in the cost sharing multiple-employer defined benefit group-term life
insurance plan 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 employees. The City may terminate coverage under and discontinue participation by
adopting an 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 employee'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 is an "other postemployment benefit." The City contributes to the Supplemental
Death Benefits 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 the program is to assure that adequate resources are available to meet all death
payments for 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 calendar years at the annual required contribution rate of .08% (2009) and .08% (2010)
and .08%(2011).
2. Firefighters' Relief and Retirement Fund
Plan Description
The Paris Firefighter's Relief and Retirement Fund, a single-employer defined benefit pension
plan, is established under the authority of the Texas Local Firefighters' Retirement Act and is
administered by a Board of Trustees made up of three members elected from and by the fund's
members, two representatives of the City of Paris, Texas, and two citizen members. Specified
plan provisions are governed by a plan document and a trust agreement executed by the Board
of Trustees. The plan is an independent entity for financial reporting purposes and issues a
stand-alone financial statement. A copy of the audited financial statement may be obtained
from the Board of Trustees, Paris Firefighters' Relief and Retirement Fund, P.O. Box 9037,
Paris, Texas 75461. Governing state law requires public retirement systems to hire an actuary
to make a valuation at least once every three years of the assets and liabilities of the system and
to determine if the assumptions and methods are reasonable.
Eli ibg ility
The plan covers current and former firefighters of the City of Paris, Texas, as well as certain
beneficiaries. The City of Paris contributes 12% 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.
52
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
I. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Eligibility (Continued)
Employee contributions are "picked up" by the City of Paris, Texas, as permitted under Section
414(h)(2) of the Internal Revenue Code. Fund members receive credit for service for the
period during which they pay into and keep on deposit in the fund, the contributions required
by the fund.
The fund was amended effective January 1, 2009.
The City's annual required contribution to the plan for fiscal year 2011 was based on a payroll
of $2,323,265 and amounted to $278,792. Covered employees made contributions of
$278,792. The plan covers 38 retirees and beneficiaries, 25 fully vested active employees, and
29 nonvested active employees.
Service Retirement Disability and Death Benefits
A member is eligible for service retirement on either (a) the date that the member has both
attained age 55 and completed 20 years of service or (b) the date as of which the sum of the
member's age and years of service first equals 80 provided the member has completed 20 years
of service. A member who retires under the service retirement provisions of the fund will
normally receive a monthly benefit equal to $94 multiplied by his/her years of service at
retirement. The minimum service retirement benefit is $500 per month. Service retirement
benefits are payable for the member's lifetime. In the event the member's death precedes that
of his/her spouse, two-thirds of the member's pension will be continued to the spouse
for his/her lifetime. An active member who becomes disabled will receive a monthly
disability benefit. If a member dies while in active service, his/her widow(er) will receive an
immediate monthly benefit, payable for his/her lifetime.
Annual Pension Cost
The actuarial valuation date used to determine the Annual Required Contribution for the year
ended September 30, 2011, and the most current available information required for disclosure
under Paragraph 22 of GASB Statement No. 27 is January 1, 2011. The actuarial cost method
used in the January 1, 2011, valuation is the entry age normal actuarial cost method. This
method is also referred to as the entry age actuarial cost method under the terminology
developed by the Joint Committee on Pension Terminology. The valuation measures
the actuarial balance between the present value of future benefits and the sum of (i) the present
value of future contributions and (ii) the actuarial value of assets. The plan is not subject to the
minimum funding requirements of Internal Revenue Code Section 430. There has been no
change in the actuarial cost method since the last actuarial valuation.
53
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Annual Pension Cost (Continued)
The actuarial assumptions used in the actuarial valuation performed as of January 1, 2011,
include a rate 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
27.9 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 from contributions, interest, dividends, and miscellaneous income over the last five
years are added to the initial asset value. Likewise, all benefit payments, contribution refunds,
and expenses are subtracted from the initial asset value. In this manner, all such receipts and
disbursements are recognized immediately.
Actuarial Value of Assets
Actuarial Accrued Liability (AAL)
Unfunded AAL (UAAL)
January 1,
2007 2009 2011
$ 6,901,424 $ 6,144,348 $ 6,736,683
11,368,809 12,179,917 12,964,325
$ 4,467,385 $ 6,035,569 $ 6,227,642
Funded Ratio
Covered Payroll
60.7% 50.4% 52.0%
$ 1,781,420 $ 2,035,271 $ 2,196,182
UAAL as a Percentage of Covered Payroll 250.8% 296.5% 283.6%
54
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Annual Pension Cost (Continued)
Development of the Actuarial Value of Assets
Market Value as of January 1
Contributions, Interest and Dividends
Contributions by the City
Contributions by Members
Dividends and Interest
Other
Disbursements
Benefits Paid Monthly
Administrative Expenses
Contributions Refunded
Net Realized and Unrealized Gains and Losses
Realized Gains (Losses)
Unrealized Gains (Losses)
December 31,
2008 2009 2010
$ 7,158,898 $ 5,120,290 $ 6,036,399
306,216
289,868
277,875
262,283
289,868
277,875
272,515
178,460
176,181
21,835
1,763
1,869
862,849
759,959
733,800
809,723
717,912
882,185
68,702
92,250
100,952
34,129
48,460
35,511
912,554
858,622
1,018,648
(431,974)
(362,736)
76,309
(1,556,929)
1,377,508
443,842
(1,988,903)
1,014,772
520,151
Market Value as of December 31 5,120,290 $ 6,036,399 6,271,702
Adjustments to Develop Actuarial Value, Net 1,024,058 464,981
Actuarial Value of Assets $ 6,144,348 $ 6,736,683
55
City of Paris, Texas
Notes to Financial Statements
September 30, 2011
V. Other Information (Continued)
1. Employee Retirement Systems and Plans (Continued)
2. Firefighters' Relief and Retirement Fund (Continued)
Other Information - Most Current Available
Annual Pension Cost
Actual Employer Contributions
Change in Net Pension Balance
Net Pension Balance Prior Year
Net Pension Balance Current Year
Annual Required Contribution
Interest on Net Pension Balance
Adjustment to the ARC
December 31,
2009 2010 2011
$ 275,556 $ 279,411 $ 246,388
290,747
278,862
278,792
(15,191)
549
(32,404)
317,809
333,000
332,451
$
333,000
$
332,451
$
364,855
$
283,263
$
287,486
$
254,450
$
25,425
$
26,640
$
26,596
$
17,718
$
18,565
$
18,534
56
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 accounted for funds received and expended in connection with the City's
multi-agency narcotics task force and was not active during the year and has been closed.
Community Development Block Grant - This fund accounts for funds received from various federal grant programs and
expended for community development purposes.
Special Revenue Fund - This fund accounts for funds received from various sources and can be expended for improving
efficiency of the administration of justice; enhancing child safety, health, and nutrition; security devices and
technological enhancements for municipal court; and other improvement activity.
Health Department - This fund accounts for funds received primarily from federal, state, another local entity, and local
fees. Employees of the fund are responsible for protecting the public health through immunization programs, operation
of a health clinic, health inspections, restaurant inspections, food handlers training, mosquito control, well baby clinics,
and family planning programs.
Library Memorial Funds - These funds account for resources given for book and library related purposes in memory of
individuals.
Permanent Funds
Library Trust Funds - These funds account for resources of a permanent nature whereby only earnings and not principal
may be used for books and library related purposes.
Other Major Governmental Funds
Debt Service Fund - This fund accounts for the accumulation of resources and the payment of general obligation
principal and interest.
Capital Projects Fund - This fund accounts for proceeds from bond issues and transfers.
57
City of Paris, Texas
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2011
Special Revenue
Criminal
Community
Justice
Development Library
Division
Block Special Health Memorial
Grant
Grant Revenue Department Funds
ASSETS
Cash
l iS, /JL
4 /,S /4 1L_i,L4V
Investments -
-
-
- -
Notes Receivable -
55,900
-
- -
Due from Other Funds -
-
-
56,204 -
Due from Other Governments -
161,690
-
165,151 -
Total Assets $ -
$ 492,542
$ 133,752
$ 268,729 $ 123,249
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable $ -
$ 74,192
$ 1,385
$ - $ -
Deferred Revenue -
-
-
53,340 -
Total Liabilities -
74,192
1,385
53,340 -
Fund Balances
Non-Spendable
Permanent Fund Principal
Restricted for:
Notes
Law Enforcement
Health
Assigned:
Library
Community Development
Total Fund Balances
Total Liabilites and
Fund Balances
95,900
322,450
418,350
132,367 - -
- 215,389 -
123,249
132,367 215,389 123,249
$ - $ 492,542 $ 133,752 $ 268,729 $ 123,249
58
Schedule 1
Permanent
Total
Library Nonmajor
Trust Governmental
Total Funds Funds
$ 579,327 $ 307 $ 579,634
- 88,213 88,213
55,900 - 55,900
56,204 - 56,204
326,841 - 326,841
$ 1,018,272 $ 88,520 $ 1,106,792
$ 75,577 $ - $ 75,577
53,340 - 53,340
128,917 - 128,917
- 88,520
88,520
95,900 -
95,900
132,367 -
132,367
215,389 -
215,389
123,249 -
123,249
322,450 -
322,450
889,355 88,520
977,875
$ 1,018,272 $ 88,520 $ 1,106,792
59
City of Paris, Texas
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2011
Special Revenue
Revenues:
Memorial Donations
Interest Earned
Grant Revenue
Local Revenue
Total Revenues
Expenditures:
Municipal Court
Community Development
Police
Health
Library
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
Other Financing Uses -
Transfers Out
Net Changes in
Fund Balances
Fund Balances -
Septembers 30, 2010
Fund Balance -
Septembers 30, 2011
Criminal
Community
Justice
Development
Library
Division
Block
Special
Health
Memorial
Grant
Grant
Revenue
Department
Funds
Total
$ _
$ -
$ -
$ -
$ 2,873
$ 2,873
49
5,883
1,061
-
2,193
9,186
-
309,220
-
671,018
-
980,238
12,354
-
27,943
235,730
-
276,027
12,403
315,103
29,004
906,748
5,066
1,268,324
- 18,277 - - 18,277
310,221 - - - 310,221
- 12,115 - - 12,115
- 908,339 - 908,339
- - - 3,070 3,070
310,221 30,392 908,339 3,070 1,252,022
12,403
4,882 (1,388)
(1,591)
1,996 16,302
(36,462)
(36,462)
(24,059) 4,882
(1,388)
(1,591)
1,996
(20,160)
24,059 413,468
133,755
216,980
121,253
909,515
$ - $ 418,350
$ 132,367
$ 215,389
$ 123,249
$ 889,355
60
Schedule 2
Permanent
Total
Library Nonmajor
Trust Governmental
$ - $ 2,873
1,956 11,142
- 980,238
- 276,027
1,956 1,270,280
- 18,277
- 310,221
- 12,115
- 908,339
- 3,070
1,252,022
1,956 18,258
- (36,462)
1,956 (18,204)
44 ;An 004 A'70
$ 88,520 $ 977,875
61
City of Paris, Texas
Criminal Justice Division Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended September 30, 2011
Revenues:
Local Revenue
Interest Earned
Total Revenues
Excess Revenues Over Expenditures
Other Financing Uses -
Transfers Out
Net Changes in Fund Balance
Fund Balance - September 30, 2010
Fund Balance - September 30, 2011
$ 12,354
49
12,403
12,403
36,462
(24,059)
24,059
Schedule 3
62
City of Paris, Texas
Community Development Block Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
For the Year Ended September 30, 2011
Revenues:
Interest Earned
Grant Revenue
Total Revenues
Expenditures:
Community Development
Total Expenditures
Excess Revenues Over Expenditures
Fund Balance - September 30, 2010
Fund Balance - September 30, 2011
$ 5,883
309,220
315,103
310,221
310,221
4,882
413,468
$ 418,350
Schedule 4
63
City of Paris, Texas
Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2011
Budgeted Amounts
Original Final
Revenues:
Interest Earned $
-
$ -
Local Revenue
65,850
65,850
Total Revenues
65,850
65,850
Expenditures:
Municipal Court
144,000
144,000
Police Department
70,000
70,000
Total Expenditures
214,000
214,000
Excess Revenues Over
(Under) Expenditures
(148,150)
(148,150)
Fund Balance - September 30, 2010
133,755
133,755
Fund Balance - September 30, 2011 $
(14,395)
$ (14,395)
Schedule 5
Variance with
Actual
Final Budget
$ 1,061 $
1,061
27,943
(37,907)
29,004
(36,846)
18,277
125,723
12,115
57,885
30,392
183,608
(1,388)
146,762
133,755
-
$ 132,367 $
146,762
64
City of Paris, Texas
Health Department Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2011
Budgeted Amounts
Original Final
Revenues:
Grant Revenue $ 698,129 $ 698,129
Local Revenue 272,444 272,444
Total Revenues
970,573
Expenditures:
Health
970,573
Total Expenditures
970,573
Excess Revenues Over
(Under) Expenditures
-
Fund Balance - September 30, 2010
216,980
Fund Balance - September 30, 2011 $
216,980
970,573
970,573
Schedule 6
Variance with
Actual Final Budget
$ 671,018 $ (27,111)
235,730 (36,714)
906,748 (63,825)
908,339 62,234
908,339 62,234
(1,591) (1,591)
216,980 216,980 -
$ 216,980 $ 215,389 $ (1,591)
65
City of Paris, Texas Schedule 7
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2011
Budgeted Amounts
Variance with
Original Final Actual Final Budget
Revenues:
Ad Valorem Taxes $ 1,417,164 $ 1,417,164 $ 1,483,577 $ 66,413
Interest Earned - - 10,289 10,289
Total Revenues 1,417,164 1,417,164 1,493,866 76,702
Expenditures:
Bond Principal Retirement 935,800 935,800 935,800 -
Interest and Fiscal Charges 480,448 480,448 480,448 -
Total Expenditures 1,416,248 1,416,248 1,416,248 -
Excess Revenues Over Expenditures
and Net Changes in Fund Balances 916 916 77,618 76,702
Fund Balance - September 30, 2010
2,628,654
2,628,654
2,628,654 -
Fund Balance - September 30, 2011
$ 2,629,570
$ 2,629,570
$ 2,706,272 $ 76,702
66
City of Paris, Texas Schedule 8
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
From Inception and For the Year Ended September 30, 2011
Prior
Current
Total
Project
Years
Year
to Date
Authorization
Revenues:
Investment Income
$ 14,911
$ 16,412
$ 31,323
$ -
Total Revenues
14,911
16,412
31,323
-
Expenditures:
City Council
2,415
25,556
27,971
2,420
City Attorney
9,948
5,000
14,948
15,000
Fire
131,970
-
131,970
132,000
Community Development
79,684
-
79,684
72,800
Engineering
17,867
-
17,867
17,870
Public Works
5,160
-
5,160
5,165
Parks and Recreation
221,436
2,516
223,952
229,005
Solid Waste
254,322
-
254,322
254,350
Streets and Highways
910,878
1,676,847
2,587,725
3,314,380
Traffic and Public Lighting
81,833
-
81,833
90,100
Garage
20,227
-
20,227
20,500
Emergency Medical Service
75,581
-
75,581
75,585
Library
2,415
-
2,415
2,420
Bond Issue Costs
41,157
-
41,157
-
Total Expenditures
1,854,893
1,709,919
3,564,812
4,231,595
Excess of Revenues Over
(Under) Expenditures
(1,839,982)
Other Financing Sources (Uses):
Transfers In
2,403,705
Transfers Out
(955,094)
Certificates of Obligation Issued
3,005,000
Net Changes in Fund Balance
$ 2,613,629
Fund Balance, September 30, 2010
Fund Balance, September 30, 2011
(1,693,507) (3,533,489) (4,231,595)
2,403,705 2,403,705
(370,312) (1,325,406) (1,325,406)
3,005,000 3,005,000
(2,063,819) $ 549,810 $ (148,296)
2,783,934
$ 720,115
67
m........r....~I aav Q)F P~AI~
CAPITAL ASSETS USED IN
THE OPERATION OF GOVERNMENTAL FUNDS
z
.PIN
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedules by Source
September 30, 2011 and 2010
Governmental Funds Capital Assets:
Land
Buildings
Improvements Other Than Buildings
Machinery and Equipment
Infrastructure
Construction in Progress
Total Governmental Funds Capital Assets
Investments in Governmental Funds Capital Assets by Source:
General Fund
Capital Projects Funds
Donations
Total Investments in Governmental Funds Capital Assets by Source
2011
$ 5,912,108
15,430,302
5,645,638
17,614,232
39,081,870
342,635
$ 84,026,785
$ 57,990,426
20,722,078
5,314,281
$ 84,026,785
Schedule 9
2010
$ 5,912,108
15,430,302
5,030,260
17,852,086
36,391,488
1,162,124
$ 81,778,368
$ 57,723,855
19,045,232
5,009,281
$ 81,778,368
68
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2011
Function and Activity
Land
Improvements Machinery
Other Than and
Buildings Buildings Equipment
General Government:
Council
Manager
Attorney
Clerk
Finance
Total General Government
Public Safety:
Police
Fire
Total Public Safety
Public Works:
Community Development
Engineering
Public Works
Parks and Recreation
Solid Waste
Streets and Highways
Traffic and Public Lighting
Garage
Other Unclassified
Total Public Works
Emergency Medical Service
Cox Field
Library
Total Governmental Funds
Capital Assets
$ 339,906
$ 2,457,709
$ 93,522
$ 571,904
_
_
-
10,187
_
-
9,948
113,768
-
14,737
-
71,230
-
-
-
395,261
339,906
2,472,446
103,470
1,162,350
619,585
5,911,262
781,775
3,377,609
159,268
2,189,378
131,969
2,626,695
778,853
8,100,640
913,744
6,004,304
3,299,676
-
377,509
161,691
-
10,747
-
193,062
125,543
-
-
842,073
112,230
92,268
3,250,024
880,400
626,395
-
42,079
1,382,553
138,590
88,220
80,192
2,050,297
_
_
-
189,023
-
95,121
-
84,966
_
-
52,361
65,884
4,302,434
286,356
3,802,165
5,849,949
-
94,177
6,200
2,284,706
429,120
3,428,970
741,517
221,929
61,795
1,047,713
78,542
2,090,994
$ 5,912,108
$ 15,430,302
$ 5,645,638
$ 17,614,232
69
Schedule 10
Infrastructure Total
$ - $ 3,463,041
- 10,187
- 123,716
- 85,967
- 395,261
- 4,078,172
10,690,231
5,107,310
15,797,541
- 3,838,876
- 203,809
- 967,616
- 4,334,922
- 2,051,027
39,081,870 41,439,169
- 189,023
180,087
- 118,245
39,081,870 53,322,774
2,385,083
4,821,536
3,279,044
$ 39,081,870 $ 83,684,150
70
City of Paris, Texas
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For the Year Ended September 30, 2011
Schedule 11
Govermnental Funds
Governmental Funds
Capital Assets
Capital Assets
Function and Activity
September 30, 2010
Additions
Deductions
September 30, 2011
General Government:
Council
$ 3,383,490
$ 79,551
$ -
$ 3,463,041
Manager
10,187
-
-
10,187
Attorney
123,716
-
-
123,716
Clerk
85,967
-
-
85,967
Finance
395,261
-
-
395,261
Total General Government
3,998,621
79,551
-
4,078,172
Public Safety:
Police
10,754,513
81,259
145,541
10,690,231
Fire
5,013,910
93,400
-
5,107,310
Total Public Safety
15,768,423
174,659
145,541
15,797,541
Public Works:
Community Development
3,473,726
365,150
-
3,838,876
Engineering
211,209
-
7,400
203,809
Public Works
967,616
-
-
967,616
Parks and Recreation
4,192,333
178,149
35,560
4,334,922
Solid Waste
2,051,027
-
-
2,051,027
Streets and Highways
39,004,231
2,690,382
255,444
41,439,169
Traffic and Public Lighting
189,023
-
-
189,023
Garage
186,387
-
6,300
180,087
Other Unclassified
118,245
-
-
118,245
Total Public Works
50,393,797
3,233,681
304,704
53,322,774
Emergency Medical Service
2,354,823
126,850
96,590
2,385,083
Cox Field
4,821,536
-
-
4,821,536
Library
3,279,044
-
-
3,279,044
Total Governmental Funds
Capital Assets
$ 80,616,244
$ 3,614,741
$ 546,835
$ 83,684,150
71
STATISTICAL SECTION
° a ca~a~ ~r '\\\uu~~ ~uuu\P\ uu ~u~`, u~u~~v~. \4\\\~~~ uutiu~. uuuu ~nuu~~uu~u\\\uu\uuu~ua\\u\4uuu~
STATISTICAL SECTION
This part of the City of Paris' comprehensive annual financial report contains detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary information
says about the government's overall financial health.
Financial Trends Tables 1-4
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity Tables 9-13
These schedules present information to help the reader assess the affordability of
the government's current levels of outstanding debt and the government's ability
to issue additional debt in the future.
Demographic and Economic Information Tables 14-15
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information Tables 16-19
These schedules contain service and infrastructure data to help the reader under-
stand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
72
City of Paris, Texas
Net Assets by Component
Last Nine Fiscal Years
(Accrual Basis of Accounting)
Unaudited
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
73
Table 1
Fiscal Year
2007
2008
2009
2010
$ 28,296,810
$ 27,214,018
$ 26,663,557
$ 26,871,917
$ 25,311,134
1,356,091
2,634,911
952,225
5,454,967
3,958,563
12,344,117
12,724,897
15,119,471
10,358,596
12,801,387
$ 41,997,018 $ 42,573,826 $ 42,735,253 $ 42,685,480 $ 42,071,084
$ 23,735,238
$ 24,810,704
$ 26,288,945
$ 28,883,901 $ 31,855,910
3,258,469
2,810,233
3,813,439
1,636,722 -
6,530,918
7,362,285
7,237,951
9,815,653 11,416,134
$ 33,524,625 $ 34,983,222 $ 37,340,335 $ 40,336,276 $ 43,272,044
$ 52,032,048
$ 52,024,722
$ 52,952,502
$ 55,755,818
$ 57,167,044
4,944,480
5,445,144
4,765,664
7,091,689
3,958,563
18,545,115
20,087,182
22,357,422
20,174,249
24,217,521
$ 75,521,643 $ 77,557,048 $ 80,075,588 $ 83,021,756 $ 85,343,128
74
City of Paris, Texas
Changes in Net Assets
Last Nine Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Expenses
Governmental Activities:
General Government
Finance
Public Safety
Public Works
Health
Library Service
Cox Field Airport
Interest on Long-Term Debt
Total Governmental
Activities Expenses
Business-Type Activities:
Water and Sewer Services
Total Primary Government
Expenses
Program Revenues
Governmental Activities:
Charges for Services:
General Government
Public Safety
Public Works
Health
Library Services
Operating Grants
and Contributions
Capital Grants
and Contributions
Total Governmental Activities
Program Revenues
Business-Type Activities:
Charges for Services:
Water and Sewer Service
Total Primary Government
Program Revenues
Fiscal Year
2003
2004
2005
2006
$ 2,209,909
$ 2,275,969
$ 2,188,590
$ 1,391,781
487,253
540,815
515,965
556,076
9,228,741
9,554,945
9,825,404
9,138,101
7,500,073
8,102,061
6,957,522
6,826,116
2,881,164
3,724,003
2,904,920
2,889,602
1,165,646
917,450
718,779
745,653
253,822
256,149
258,496
264,181
932,025
1,022,551
627,691
614,799
24,658,633
26,393,943
23,997,367
22,426,309
9,647,360
9,997,416
10,554,510
10,912,834
$ 34,305,993 $ 36,391,359 $ 34,551,877 $ 33,339,143
$ 133,746
$ 125,001
$ 184,469
$ 167,032
573,497
485,266
379,992
698,497
1,550,057
1,602,974
1,718,241
1,609,895
2,056,370
3,000,742
1,648,008
2,389,663
55,910
-
38,960
31,532
2,892,360
3,442,169
2,823,843
1,660,785
7,261,940
- 194,227 230,177
8,656,152 6,987,740 6,787,581
10,412,475 10,929,862 12,160,851 12,879,592
$ 17,674,415 $ 19,586,014 $ 19,148,591 $ 19,667,173
75
Table 2
Fiscal Year
2007 2008
2009
2010 2011
$ 1,722,181
$ 2,076,554
$ 3,590,461
$ 2,632,370
$ 2,890,290
426,485
467,865
449,227
481,106
437,320
9,045,085
9,737,225
9,498,749
10,021,261
9,880,712
7,217,841
7,705,564
6,905,252
7,279,655
7,667,367
2,897,836
3,174,713
3,133,324
3,184,085
3,202,551
690,413
790,216
730,925
751,523
719,240
236,414
262,533
294,089
225,565
220,027
584,861
557,588
507,788
460,678
438,460
22,821,116
24,772,258
25,109,815
25,036,243
25,455,967
10,839,828
10,959,294
11,197,470
10,423,943
10,694,363
$ 33,660,944 $ 35,731,552 $ 36,307,285 $ 35,460,186 $ 36,150,330
806,321
1,029,991
676,229
757,291
606,792
1,626,253
1,690,210
1,693,133
1,709,552
1,775,841
2,406,995
2,710,279
2,638,943
2,595,679
2,608,306
19,601
22,464
21,335
21,123
19,707
1,244,186
1,407,529
1,317,832
1,431,301
1,953,631
25,599
55,152
224,458
355,429
205,628
6,128,955
6,915,625
6,571,930
6,870,375
7,169,905
12,359,516 13,012,253 13,616,713 13,650,486 13,798,137
$ 18,488,471 $ 19,927,878 $ 20,188,643 $ 20,520,861 $ 20,968,042
76
City of Paris, Texas
Changes in Net Assets
Last Nine Fiscal Years
(Accrual Basis of Accounting)
Unaudited
Fiscal Year
2003
2004
2005
2006
Net (Expense)/Revenue
Governmental Activities
$(17,396,693)
$(17,737,791)
$(17,009,627)
$(15,638,728)
Business-Type Activities
765,115
932,446
1,606,341
1,966,758
Total Primary Government,
Net Expense
$(16,631,578)
$(16,805,345)
$(15,403,286)
$(13,671,970)
General Revenues and Other Changes in Net Assets
Governmental Activities:
Taxes
Property
$ 7,260,943
$ 7,456,850
$ 7,733,700
$ 7,583,269
Sales
4,726,406
4,794,743
5,066,926
5,401,371
Franchise
3,034,049
2,465,130
3,062,589
3,053,671
Hotel Occupancy
310,920
302,334
314,404
396,333
Investment Earnings
155,320
127,251
112,310
342,306
Grants, Donations, and Miscellaneous
-
-
418,603
568
Transfers
(2,603,160)
1,235,454
4,588,598
1,090,000
Special Item
-
(928,533)
-
-
Total Governmental Activities
12,884,478
15,453,229
21,297,130
17,867,518
Business-Type Activities:
Investment Earnings
243,952
191,576
70,731
284,899
Contribution
-
593,660
602,111
32,600
Transfers
2,603,160
(1,235,454)
(4,588,598)
(1,090,000)
Special Item
-
(408,088)
-
-
Total Business-Type Activities
2,847,112
(858,306)
(3,915,756)
(772,501)
Total Primary Government
$ 15,731,590
$ 14,594,923
$ 17,381,374
$ 17,095,017
Changes in Net Assets
Governmental Activities
$ (4,512,215)
$ (2,284,562)
$ 4,287,503
$ 2,228,790
Business-Type Activities
3,612,227
74,140
(2,309,415)
1,194,257
Total Primary Government
$ (899,988)
$ (2,210,422)
$ 1,978,088
$ 3,423,047
77
Table 2
Continued
Fiscal Year
2007 2008 2009 2010 2011
$(16,692,161) $(17,856,633) $(18,537,885) $(18,165,868) $(18,095,410)
1,519,688 2,052,959 2,419,243 3,226,543 3,103,774
$(15,172,473) $(15,803,674) $(16,118,642) $(14,939,325) $(14,991,636)
$ 7,924,453
$ 7,904,936
$ 7,794,381
$ 7,853,487
$ 7,620,281
5,673,616
5,696,174
6,441,260
5,843,494
6,033,469
3,082,183
2,898,214
2,859,338
2,743,214
2,719,496
430,991
434,441
526,998
500,755
449,213
571,678
399,676
174,636
113,006
84,327
102,195
-
-
-
-
1,100,000
1,100,000
902,699
1,062,139
764,880
18,885,116
18,433,441
18,699,312
18,116,095
17,671,666
367,601
309,586
212,479
103,220
162,374
-
196,052
628,090
728,317
434,500
(1,100,000)
(1,100,000)
(902,699)
(1,062,139)
(764,880)
(732,399)
(594,362)
(62,130)
(230,602)
(168,006)
$ 18,152,717 $ 17,839,079 $ 18,637,182 $ 17,885,493 $ 17,503,660
$ 2,192,955 $ 576,808 $ 161,427 $ (49,773) $ (636,302)
787,289 1,458,597 2,357,113 2,995,941 2,935,768
$ 2,980,244 $ 2,035,405 $ 2,518,540 $ 2,946,168 $ 2,299,466
78
City of Paris, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Unaudited
Fiscal Year
2002
2003 2004
2005
General Fund
Reserved
$ 171,248
$ 217,610 $ 155,608
$ 153,043
Unreserved
6,085,946
5,502,760 3,735,128
5,375,749
Total General Fund
$ 6,257,194
$ 5,720,370 $ 3,890,736
$ 5,528,792
All Other Governmental Funds
Debt Service and Capital Projects
$ 10,663,363
$ 8,071,051
$ 7,776,342
$ 4,831,754
Special Revenue Funds
774,466
800,930
909,520
1,006,385
Permanent Funds
76,261
77,454
(196,478)
73,373
Total All Other Governmental Funds
$ 11,514,090
$ 8,949,435
$ 8,489,384
$ 5,911,512
79
Table 3
Fiscal Year
2006 2007 2008 2009 2010 2011
$
118,925
$ 202,440
$
251,411
$ 215,128
$
214,932
$
199,519
8,874,883
11,581,136
11,478,815
13,751,446
11,376,619
12,156,169
$
8,993,808
$ 11,783,576
$
11,730,226
$ 13,966,574
$
11,591,551
$
12,355,688
$
997,192
$ 1,440,583
$
2,704,009
$ 1,008,826
$
5,540,873
$
3,426,387
908,559
924,573
811,645
792,271
781,230
889,355
76,552
80,468
82,762
84,365
86,564
88,520
$
1,982,303
$ 2,445,624
$
3,598,416
$ 1,885,462
$
6,408,667
$
4,404,262
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
Revenues
Taxes
Licenses and Permits
Fines and Fees
Use of Money and Property
Public Safety
Sanitation Fees
Health
Intergovernmental Revenues
Other
Total Revenues
Expenditures
General Government
Finance
Public Safety
Public Works
Health Department
Emergency Medical Service
Insurance Trust Fund
Library
Cox Field Airport
Other
Debt Service
Interest
Principal
Capital Outlay
Total Expenditures
2002 2003(2) 2004
$13,748,657
$15,323,499
$14,959,510
114,720
80,666
73,163
545,236
472,857
501,124
204,846
265,980
247,260
1,800
172,955
208,878
1,382,796
1,349,711
1,346,443
2,844,927
2,043,589
2,246,352
2,197,149
2,715,441
2,493,221
664,848
302,489
852,469
21,704,979
22,727,187
22,928,420
2,340, 802
1,577,462
1,612,645
439,535
476,883
533,799
8,222,361
8,675,218
9,070,046
6,004,759
5,957,419
6,473,823
747,528
800,717
797,474
1,824,006
1,790,799
1,844,574
-
-
879,643
720,407
1,034,918
795,347
130,929
132,347
133,295
18,460
505,553
484,044
531,561
744,280
796,024
390,000
862,838
1,225,517
-
3,664,855
1,833,954
21,370,348
26,223,289
26,480,185
Excess of Revenues Over (Under) Expenditures
Other Financing Sources (Uses)
Proceeds of Capital Leases
Transfers In
Transfers Out
Certificates of Obligation Issued
Total Other Financing Sources (Uses)
Increase (Decrease) in Reserve for Inventory
Net Changes in Fund Balances
Debt Service as a Percentage of Noncapital Expenditures
334,631 (3,496,102) (3,551,765)
- 59,980 87,114
1,100,000 1,352,661 1,929,831
- (1,062,866) (694,377)
1,100,000 349,775 1,322,568
(19,026) 44,848 (60,488)
$ 1,415,605 $ (3,101,479) $ (2,289,685)
4.67% 7.12% 8.20%
Source: City of Paris
Notes: (1) Includes General and Debt Service Fund for years through 2002
(2) GASB 34 adopted
81
Table 4
Fiscal Year
2005 2006 2007 2008
2009 2010 2011
$16,109,433
$16,435,160
$17,116,584
$16,909,018
$17,606,479
$16,941,815
$16,824,545
98,611
87,137
106,997
101,776
171,906
88,935
112,142
556,895
543,606
571,165
652,804
554,424
526,668
501,601
357,262
493,234
721,799
532,435
317,028
274,986
313,948
230,029
212,729
34,151
67,335
65,283
57,369
40,297
1,361,406
1,287,138
1,488,874
1,319,923
1,306,867
1,347,707
1,461,736
2,083,448
2,489,961
2,935,839
2,646,417
2,583,958
2,621,420
2,578,496
2,272,486
1,867,098
613,665
1,504,435
1,575,080
1,736,611
1,768,322
470,791
247,234
374,545
302,120
221,114
301,069
247,354
23,540,361
23,663,297
23,963,619
24,036,263
24,402,139
23,896,580
23,848,441
1,545,542
1,210,298
966,627
962,561
1,075,990
1,109,767
1,219,607
508,968
549,079
414,080
448,951
430,364
462,282
425,455
9,136,810
8,653,589
8,564,024
9,283,682
9,303,726
9,489,393
9,154,646
5,324,999
5,193,512
5,518,798
5,562,625
5,591,689
5,509,576
7,459,432
844,625
822,734
816,419
925,195
900,945
942,596
908,339
1,862,313
1,890,825
1,979,104
2,128,274
2,111,069
2,095,897
2,146,210
601,885
621,327
570,394
675,209
616,148
642,830
630,977
134,542
143,620
117,574
145,052
180,364
112,800
107,276
535,395
60,011
752,256
1,057,566
2,360,244
1,468,366
1,545,147
670,102
622,773
596,043
563,669
518,682
443,618
945,016
1,065,372
864,958
968,598
1,304,230
847,851
871,978
480,448
3,163,974
4,550,646
1,269,778
1,028,778
808,089
2,666,238
815,623
25,394,527
25,183,372
22,533,695
24,085,792
24,745,161
25,815,341
25,838,176
(1,854,166)
(1,520,075)
1,429,924
(49,529)
(343,022)
(1,918,761)
(1,989,735)
-
-
639,650
-
-
-
-
1,799,397
1,152,590
1,984,963
2,764,641
3,359,644
5,338,879
1,176,462
(881,956)
(62,590)
(884,963)
(1,664,641)
(2,456,945)
(4,276,740)
(411,581)
_
_
_
_
-
3,005,000
-
917,441
1,090,000
1,739,650
1,100,000
902,699
4,067,139
764,881
(3,091)
(34,118)
83,515
48,971
(36,283)
(196)
(15,414)
$ (939,816)
$ (464,193)
$ 3,253,089
$ 1,099,442
$ 523,394
$ 2,148,182
$ (1,240,268)
7.81%
7.74%
7.60%
8.17%
5.46%
5.04%
6.16%
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
2001
2001-02
$6,216,227
$ 6,099,899
98.13%
$ 116,629
$ 6,216,528
2002
2002-03
7,303,340
7,003,492
95.89
107,156
7,110,648
2003
2003-04
7,470,691
7,180,706
96.12
103,943
7,284,649
2004
2004-05
7,762,498
7,422,657
95.62
120,120
7,542,777
2005
2005-06
7,670,001
7,312,326
95.34
98,222
7,410,548
2006
2006-07
7,935,867
7,683,568
96.82
88,710
7,772,278
2007
2007-08
7,952,325
7,696,134
96.78
20,869
7,717,003
2008
2008-09
7,837,300
7,579,213
96.71
57,760
7,636,973
2009
2009-10
7,797,457
7,624,228
97.78
50,588
7,674,816
2010
2010-11
7,651,941
7,418,544
96.95
-
7,418,544
Source:
City of Paris
Lamar County Appraisal District
Note:
(1) Taxes stated are for General 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
100.00%
$ 24,982
.40%
97.36
35,528
.49
97.51
51,167
.69
97.17
62,624
.81
96.62
61,927
.81
97.94
58,942
.74
97.04
62,881
.79
97.44
79,542
1.02
98.43
103,934
1.33
96.95
171,693
2.24
84
v, T1z Z c~ TNT PAM
cllk k
uuti
City of Paris, Texas Table 6
Property Tax Rates-All Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
Unaudited
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
City of Paris
O&M $ 0.51962 $ 0.56104
I & S 0.09038 0.13396
Total $ 0.61000 $ 0.69500
Lamar County
O&M $ 0.34780 $ 0.36210
I & S 0.02280 0.01960
Total $ 0.37060 $ 0.38170
Paris ISD
O&M $ 1.50000 $ 1.50000
I & S 0.08000 0.09000
Total $ 1.58000 $ 1.59000
Chisum ISD
O&M $ 1.12000 $ 1.50000
I & S 0.15500 0.15500
Total $ 1.27500 $ 1.65500
North Lamar ISD
O&M $ 1.31168 $ 1.41740
I & S 0.23870 0.22810
Total $ 1.55038 $ 1.64550
Paris Junior College
O&M $ 0.16780 $ 0.17830
I & S 0.00800 0.00210
Total $ 0.17580 $ 0.18040
$ 0.57289
0.12211
$ 0.69500
$ 0.35730
0.03170
$ 0.38900
$ 1.38500
0.21800
$ 1.60300
$ 1.48000
0.17500
$ 1.65500
$ 1.46810
0.17740
$ 1.64550
$ 0.19070
0.00250
$ 0.19320
$ 0.57977
0.11248
$ 0.69225
$ 0.38060
0.03070
$ 0.41130
$ 1.50000
0.09200
$ 1.59200
$ 1.48000
0.16800
$ 1.64800
$ 1.45840
0.13060
$ 1.58900
$ 0.19220
$ 0.19220
$ 0.56650 $ 0.49294
0.12575 0.09931
$ 0.69225 $ 0.59225
$ 0.41320 $ 0.42140
0.02220 0.02150
$ 0.43540 $ 0.44290
$ 1.50000 $ 1.37000
0.08200 0.08200
$ 1.58200 $ 1.45200
$ 1.50000 $ 1.37000
0.16800 0.16400
$ 1.66800 $ 1.53400
$ 1.45910 $ 1.33370
0.08620 0.08630
$ 1.54530 $ 1.42000
$ 0.19220 $ 0.19220
$ 0.19220 $ 0.19220
$ 0.46526
0.09474
$ 0.56000
$ 0.42340
0.01950
$ 0.44290
$ 1.04000
0.40500
$ 1.44500
$ 1.04005
0.15570
$ 1.19575
$ 1.04005
0.12811
$ 1.16816
$ 0.19800
$ 0.19800
$ 0.43113
0.08887
T O-52000
$ 0.41430
0.01860
F O.43290
$ 1.04000
0.40500
$ 1.44500
$ 1.04000
0.20000
$ 1.24000
$ 1.04000
0.11811
TI. 15811
$ 0.18740
$ 0.18740
$ 0.42439 $ 0.41713
0.09561 0.10287
$ 0.52000 $ 0.52000
$ 0.40360 $ 0.39420
0.01900 0.01890
$ 0.42260 $ 0.41310
$ 1.17000 $ 1.17000
0.15500 0.25500
$ 1.32500 $ 1.42500
$ 1.04000 $ 1.04000
0.18000 0.16000
$ 1.22000 $ 1.20000
$ 1.04000 $ 1.04000
0.10811 0.09650
$ 1.14811 $ 1.13650
$ 0.18500 $ 0.18974
$ 0.18500 $ 0.18974
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
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
2009
2009-10
976,009,565
1,421,783,219
529,489,256
647,710,890
2010
2010-11
927,464,815
1,420,238,161
551,247,563
622,482,077
Sources:
City of Paris
Lamar County Appraisal District
86
Table 7
Exemptions
Total
Estimated
Assessed Actual
Value Value
Assessed
Value as a
Percentage of
Actual Value
Total Direct
Tax Rate
$ 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
1,121,338,793
1,738,232,912
64.51
0.69225
630,507,298
1,107,979,488
1,738,486,786
63.73
0.69225
431,693,714
1,339,952,274
1,771,645,988
75.63
0.59225
435,866,389
1,419,106,196
1,854,972,585
76.50
0.56000
545,265,684
1,486,477,991
2,031,743,675
73.16
0.52000
563,995,288
1,505,498,821
2,069,494,109
72.75
0.52000
564,007,862
1,478,712,378
2,042,720,238
72.39
0.52000
87
City of Paris, Texas
Principal Property Taxpayers
September 30, 2011 and 2002
Unaudited
2011
Percentage
Taxable
of Total
Freeze Adjusted
Assessed
Taxable
Taxpayer
Type of Business
Value
Rank
Assessed Value
Lamar Power Partners
Electric Utility
$ 199,223,960
1
14.66%
Kimberly-Clark Corp.-A
Disposable Diapers
104,568,245
2
7.70
Campbell Soup-A
Food Manufacturer
37,797,291
3
2.78
Campbell Soup-B
Warehouse
35,315,400
4
2.60
Essent-PRMC-A
Hospital
30,955,371
5
2.28
Paris Generation, LP
Electric Utility
23,702,000
6
1.74
Oncor Electric
Electric Utility
19,316,640
7
1.42
Silgan Can Co.
Can Manufacturer
15,213,190
8
1.12
Essent-PRMC-B
Hospital
13,245,390
9
0.97
Kimberly-Clark Corp.-B
Warehouse
12,100,240
10
0.89
Walmart Stores, Inc.
Retailer
-
-
-
Earthgrains Baking
Food Manufacturer
-
-
-
S.W. Bell Telephone
Telephone Utility
-
-
-
Paris Packaging
Paper Carton Manufacturer
-
-
-
Turner Industries
Pipe Manufacturer
-
-
-
Totals
$ 491,437,727 36.16%
Source:
Lamar County Appraisal District 88
Table 8
2002
Percentage
Taxable
of Total
Assessed
Taxable
Value
Rank
Assessed Value
123,621,910
1
12.13
64,596,460
2
6.34
46,613,400
3
4.57
18,190,550
5
1.78
28,438,740
4
2.79
15,072,490
6
1.48
13,166,680
7
1.29
10,708,500
8
1.05
9,237,000
9
.91
5,186,530
10
.51
$ 334,832,260 32.85%
89
'117Y 0 F f~?A,
\o°O\\\\\\s` " a\ ,~\'A,
Fiscal
Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Estimated
Population
26,136
26,255
26,374
26,493
26,612
26,732
26,852
26,972
27,092
25,337
Source:
City of Paris
City of Paris, Texas
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net General Obligation Bonded Debt Per Capita
Last Ten Fiscal Years
Unaudited
Taxable
Gross
Less Debt
Assessed
General
Service
Net General
Value
Bonded Debt
Funds
Bonded Debt
$1,019,036,665
$ 15,485,000
$ 624,713
$ 14,860,287
1,050,874,296
19,240,000
911,685
18,328,315
1,074,746,887
18,235,000
1,087,396
17,147,604
1,121,338,793
13,776,800
725,394
13,051,406
1,107,979,488
13,054,000
751,574
12,302,426
1,339,952,274
12,296,600
736,869
11,559,731
1,419,106,196
11,504,600
741,912
10,762,688
1,486,477,991
10,680,400
712,570
9,967,830
1,505,498,821
12,766,600
2,628,654
10,137,946
1,478,712,378
11,830,800
2,706,272
9,124,528
Ratio
of Net
General
Bonded
Debt To
Assessed
Value
1.46%
1.74
1.60
1.16
1.11
0.86
0.76
0.67
0.67
0.62
Table 9
Net
General
Bonded
Debt
Per
Capita
$ 568.58
698.09
650.17
492.64
462.29
432.43
400.82
369.56
374.20
360.13
90
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
2002
$ 15,485,000
$762,691 $
68,784
$35,605,000
$ 35,349 $
723,370
2003
19,240,000
609,833
62,546
29,565,000
21,329
696,236
2004
18,235,000
476,429
55,996
27,620,000
6,459
668,251
2005
13,776,800
238,734
49,119
29,053,200
-
639,388
2006
13,054,000
103,798
41,897
26,451,000
-
609,619
2007
12,296,600
539,832
34,315
23,733,400
101,665
578,917
2008
11,504,600
15,291
26,354
20,890,400
56,793
547,251
2009
10,680,400
-
17,994
17,914,600
-
514,590
2010
12,766,600
-
9,216
14,638,400
-
480,909
2011
11,830,800
-
-
11,254,200
-
-
Source:
City of Paris
(1) Information not available
(2) See Table 14 for personal income and population data
91
Table 10
Total
Percentage
Primary
of Personal
Per
Government
Income (2)
Capita
$52,680,194
4.86%
$ 2,016
50,194,944
4.44
1,912
47,062,135
4.03
1,784
43,757,241
3.65
1,652
40,260,314
3.15
1,513
37,284,729
2.76
1,395
33,040,689
2.28
1,231
29,127,584
(1)
1,080
27,895,125
(1)
1,030
23,085,000
(1)
911
92
City of Paris, Texas Table 11
Direct and Overlapping
Governmental Activities Debt
September 30, 2011
Unaudited
General
Percent
Amount
Obligation
Applicable
Applicable
Bonded Debt
to
to
Taxing Jurisdiction
Outstanding
Government
Government
City of Paris
$ 11,918,120
100.00%
$ 11,918,120
Lamar County
2,816,979
62.75
1,767,654
Paris Independent School District
54,781,863
49.30
27,007,459
Chisum Independent School District
10,420,000
47.75
4,975,550
North Lamar Independent School District
4,000,000
32.67
1,306,800
Paris Junior College
-
-
-
Total Direct and Overlapping Funded Debt
$ 83,936,962
$ 46,975,583
Per Capita Direct and Overlapping Funded Debt
$ 3,312.82
$ -
Per Capita Direct Debt - See note
$ -
$ 1,854.03
Sources:
Lamar County Appraisal District
Lamar County
Paris Independent School District
Chisum Independent School District
North Lamar Independent School District
Paris Junior College
Note: $11,254,200 debt included in Refunding Bonds will be retired by the Water and Sewer Fund
and is 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, 2011
Unaudited
The maximum tax rate permitted by Article XI, Section 5 of the State of Texas constitution is $2.50 per $100 of
assessed valuation. Consequently, no legal debt margin can be calculated. The state attorney general has traditionally
allowed up to $1.50 per $100 valuation to be applied to debt service. The City levied a tax rate of $.52 per $100
valuation for the fiscal year ended September 30, 2011.
Source:
City of Paris
94
City of Paris, Texas
Revenue Pledged Coverage - Water and Sewer Revenue Bonds
Last Ten Fisical Years
Unaudited
Fiscal Gross
Year Revenues*
2001-02
$ 10,853,869
2002-03
10,656,427
2003-04
11,715,098
2004-05
12,833,693
2005-06
13,197,091
2006-07
12,727,118
2007-08
13,321,839
2008-09
13,829,192
2009-10
13,753,706
2010-11
13,960,511
Table 13
Net Revenue
Average Remaining
Available
Debt Service Requirements
Operating
For Debt
Percent
Expenses**
Service
Principal
Interest
Total***
Coverage
$ 6,175,627
$ 4,678,242
$ 1,978,056
$ 767,877
$ 2,745,933
1.70%
5,924,832
4,731,595
1,478,250
529,768
2,008,018
2.36
5,791,260
5,923,838
1,726,250
572,654
2,298,904
2.58
5,923,360
6,910,333
1,936,880
561,473
2,498,353
2.77
6,665,832
6,531,259
1,889,357
504,932
2,394,289
2.73
6,613,931
6,113,187
1,825,646
448,869
2,274,515
2.69
6,873,535
6,448,304
1,740,867
394,042
2,134,909
3.02
7,244,274
6,584,918
1,628,600
341,402
1,970,002
3.34
6,732,799
7,020,907
1,463,840
173,848
1,637,688
4.29
7,201,866
6,758,645
1,250,466
146,298
1,396,764
4.84
Notes:
(1)* Gross Revenues = Operating and Non-Operating Revenue of the Water and Sewer Fund
Excluding Contribution Revenue and Premium Amortization
(2)** Operating Expenses Excluding Depreciation
(3)*** Agent Fees Not Included
Sources:
Southwest Securities Official Statement
Rauscher Pierce Refsnes Official Statement
City of Paris CAFR
95
City of Paris
Demographic and Economic Statistics
Last Ten Calendar Years
Unaudited
Calendar
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Paris, Tx.
Micropolitan
Service Area
Population
48,075
49,096
49,480
49,598
49,644
49,863
49,090
49,286
49,027
49,793
Paris, Tx.
Micropolitan
Service Area
Personal
Income
$ 1,072,093,000
1,083,295,000
1,129,645,000
1,168,310,000
1,197,342,000
1,277,234,000
1,349,975,000
1,451,000,000
1,522,000,000
(1)
Paris, Tx.
Micropolitan
Paris, Tx.
Service Area
Micropolitan
Per Capita
Service Area
Personal
Median
School
Income
Age
Enrollments (2)
$ 22,300
37.9
12,794
22,065
36.9
12,078
22,830
36.9
12,203
23,556
37.5
12,272
24,119
37.5
12,201
25,615
37.5
12,139
27,500
37.5
12,441
29,440
37.2
13,156
31,044
37.9
13,761
(1)
39.7
13,428
(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 - 3,679
North Lamar Independent School District - 2,950
Chisum Independent School District - 841
Paris Junior College - 5,958
Chamber of Commerce
Bureau of Economic Analysis
Table 14
Percent
Unemployment
Rate
6.7%
8.1
6.5
7.0
6.1
5.5
5.2
5.5
8.4
9.7
96
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City of Paris, Texas Table 15
Principal Employers (Major Employers)
Fiscal Year End 2011 and 2002
Unaudited
Taxoaver
Essent-PRMC
Campbell Soup
Kimberly-Clark Corp.
Turner Industries
TOM
We-Pack Logistics
R K Hall Construction, LTD
Paris Packaging, Inc.
Silgan Can Co.
T & K Machinery
Sara Lee Bakery
Rogers-Wade Manufacturing Co.
Totals
Public Employers:
Paris ISD
North Lamar ISD
City of Paris
Paris Junior College
Lamar County
Totals
640
500
320
245
1,895
2011
2002
Percentage
Percentage
of Total
of Total
city
city
Employees
Rank
Employment
Employees
Rank
Employment
1,000
1
9.28%
1,046
2
9.14%
900
2
8.36
1,200
1
10.49
800
3
7.43
915
3
8.00
700
4
6.50
550
6
4.81
480
5
4.46
756
5
6.61
300
6
2.79
133
10
1.16
250
7
2.32
202
7
1.77
176
8
1.63
186
8
1.63
90
9
0.84
-
-
-
79
10
0.73
-
-
-
-
-
-
757
4
6.62
-
-
-
140
9
1.22
4,775
44.34%
5,885
51.45%
* Essent-PRMC is the hospital resulting from the merging of St. Joseph Hospital and McCuistion Hospital. The
employment number for Essent 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
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Table 16
Fiscal Year
2006 2007
2008
2009
2010
2011
1
1
1
1
1
1
4
4
3
3
3
3
1,078
1,093
1,112
1,173
1,189
1,222
48
48
48
48
51
51
1.80
1.80
1.79
1.77
1.88
2.01
1
1
1
1
1
1
106,955
109,789
106,607
97,243
98,895
90,524
195,944
187,547
162,278
162,957
159,966
144,830
7.36
7.02
6.07
6.04
5.90
5.71
21,164
23,285
12,011
12,011
15,941
13,461
1
1
1
1
1
1
62
63
62
61
62
62
2.33
2.35
2.31
2.26
2.28
2.44
87
87
87
87
87
87
221
221
221
221
221
221
24
24
24
24
25
24
199
171
172
160
171
160
10
3
3
3
3
3
12,435,000
10,335,000
10,678,976
10,185,500
10,069,000
11,687,000
19,557,000
16,842,000
18,360,000
20,394,000
21,311,000
21,900,000
4,538,690,000
3,774,782,000
3,912,548,000
3,624,429,000
3,675,218,000
4,611,321,000
208
183
184
184
183
183
9,803
9,979
9,888
9,905
10,076
9,834
195
189
190
190
197
188
42.89
39.18
39.18
39.18
39.18
39.18
316
319
321
322
322
324
99
City of Paris, Texas
Capital Asset Statistics by Function
Last Ten Fiscal Years
Unaudited
Fiscal Year
2002
2003
2004
2005
Function:
Public Safety
Police
Stations
1
1
1
1
Patrol Units
11
11
11
11
Fire Stations
4
4
4
4
Sanitation
Collection Trucks
-
-
-
-
Highways and Streets
Streets (miles)
209
209
209
209
Streetlights
N/A
N/A
N/A
2,160
Traffic Signals*
-
-
-
-
Culture and Recreation
Parks' Acreage
308
308
308
308
Swimming Pools - Municipal
1
1
1
1
Tennis Courts
-
-
-
-
Community Centers
1
1
1
1
Water
Water Mains (miles)
190
208
208
208
Fire Hydrants
1,039
1,042
1,045
1,082
Maximum Daily Capacity
36,000
36,000
36,000
36,000
(thousands of gallons)
Sewer
Sanitary Sewers (miles)
205
195
195
195
Maximum Daily Treatment Capacity
7,250
7,250
7,250
7,250
(thousands of gallons)
Source: Various City Departments
* City has none. All inside the City limits belong to the State of Texas.
100
Table 17
Fiscal Year
2006
2007 2008 2009
1
1
1
1
1
1
11
11
10
10
10
10
4
4
4
3
3
3
13
8
8
8
8
8
209
174
174
160
174
174
2,198
2,212
2,224
2,217
2,216
2,220
308
308
308
308
308
286
1
1
1
1
1
1
14
14
14
14
14
14
1
1
1
1
1
1
208
183
184
184
184
183
1,082
1,093
1,112
1,173
1,189
1,222
36,000
36,000
36,000
36,000
36,000
36,000
195
189
190
190
190
189
7,250
7,250
7,250
7,250
7,250
7,250
2010 2011
101
lky
` ~uuuuuuo • Wuur uuuu~u uuu\u0, anti. a \\U\C'~~ .uuu~l. uu~ u~uu\uuuuuuuu\'av\~uuD~uu\\\~
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
2002
37
$ 13,476,520
90
$ 8,862,903
$ 22,339,423
2003
38
5,092,241
65
7,476,004
12,568,245
2004
26
6,571,777
67
4,420,392
10,992,169
2005
42
15,372,158
47
4,870,500
20,242,658
2006
23
6,682,498
46
3,643,500
10,325,998
2007
22
24,575,805
31
2,943,125
27,518,930
2008
21
20,329,436
13
1,167,500
21,496,936
2009
17
51,951,894
10
1,447,675
53,399,569
2010
11
12,228,169
10
1,276,918
13,505,087
2011
9
10,025,486
7
569,500
10,594,986
Source:
City of Paris
102
City of Paris, Texas
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Unaudited
Function:
Manager
Attorney
Court Clerk
City Clerk
Finance
Police*
Fire
Community Development
Engineering
Public Works
Parks & ROW
Sanitation
Streets
Traffic & Lighting
Garage
EMS
Airport
Library
Warehouse
Water Billing
Water Treatment Plant
Water Distribution
Waste Water Collection
Waste Water Treatment Plant
Lift Stations
Information Technology
Totals
* Includes related grant employees.
Seasonal employees not included.
Source: City of Paris
Fiscal Year
2002
2003
2004
2005
3.0
3.0
3.0
2.0
5.0
5.0
5.0
5.0
4.0
4.0
4.0
4.0
2.0
2.0
2.0
2.0
5.0
5.0
5.5
5.5
80.0
88.0
88.0
86.0
58.0
57.0
58.0
58.0
6.5
6.5
6.5
8.5
7.5
6.5
7.5
7.5
3.0
4.0
4.0
3.0
16.5
15.5
16.5
12.0
17.5
19.5
17.5
17.5
22.0
22.0
22.0
21.0
2.5
2.5
2.5
2.5
6.0
6.0
6.0
4.0
26.0
26.0
26.0
26.0
2.0
2.0
2.0
1.0
14.0
15.0
14.0
10.5
2.5
2.5
2.5
2.0
11.0
10.0
10.0
9.0
17.5
17.5
17.5
16.5
12.5
12.5
12.5
12.5
7.5
7.5
7.5
7.5
26.5
25.5
24.5
25.5
4.0
4.0
3.0
3.0
362.0 369.0
367.5 352.0
103
Table 19
Fiscal Year
2006
2007
2008
2009
2010
2011
1.0
1.0
2.0
2.0
2.0
2.0
3.0
3.0
3.0
4.0
4.0
4.0
3.0
3.0
3.0
3.0
4.0
4.0
2.0
2.0
3.0
3.0
3.0
3.0
5.5
5.5
5.5
5.5
5.5
6.0
82.0
87.0
85.0
84.0
84.0
84.5
49.0
52.0
52.0
52.0
52.0
52.0
7.5
6.5
6.5
5.5
5.5
7.0
6.5
6.5
6.5
6.5
6.5
6.5
2.5
2.5
2.5
3.0
3.0
3.0
9.0
9.0
9.5
9.5
9.5
9.0
16.5
12.5
12.5
12.0
12.0
12.0
15.0
15.0
15.0
15.0
15.0
15.0
2.0
2.0
2.0
2.0
2.0
2.0
4.0
6.0
6.0
6.0
6.0
5.5
26.0
26.0
26.0
26.0
26.0
26.0
1.0
2.0
1.0
0.0
0.0
0.0
10.5
10.5
11.5
11.5
10.5
10.5
2.0
1.0
2.0
2.0
2.0
2.0
7.0
7.0
7.5
8.0
8.0
8.0
15.5
15.5
15.5
15.5
15.5
15.5
11.5
11.5
11.0
11.5
11.5
11.5
7.5
7.5
7.5
7.5
7.5
7.5
23.5
21.5
22.5
22.5
22.5
22.5
3.0
3.0
3.0
3.0
3.0
3.0
-
1.0
1.0
2.0
2.0
2.0
316.0 320.0 322.5 322.5 322.5 324.0
104
`.eu ~....w.. a`" \
~I, ~~Y ~ ~ p~ ~~IS~
. nog ~auxu~w ~N~N~b\NQ\a. ~uu\~. ~ti~~~~~`~ ~~~\A ~a~~~o~~u~~~~~u~~~.~u~r~r~~a~~\~~~~
CONTINUING DISCLOSURE INFORMATION
(Unaudited)
a` I
ll qFpApis
CONTINUING DISCLOSURE INFORMATION FOR THE
CITY OF PARIS, TEXAS
ASSESSED VALUATION
TABLE 1
2011-2012 Actual Market Value of Taxable Property (100% of Actual)(')
$ 2,053,139,804
Less Exemptions:
Local, Optional Over-65 and/or Disabled Homestead Exemptions
$39,531,707
Disabled and Deceased Veterans' Exemptions
11,277,769
Productivity Loss
24,375,305
Partially Exempt Property
109,081
Freeport
106,826,843
Pollution Control / Solar
45,725,145
Abatement Loss
85,671,620
Cap Loss (10%)
2,633,517
Historical /Other
589,460
Totally Exempt Property
274,571,620
591,312,067
2011-2012 Net Taxable Assessed Valuation
1,461,827,737
Less Frozen Taxable Value Loss
102,841,264 N
Freeze Adjusted Net Taxable Assessed Valuation
$ 1,358,986,473
See 'AD VALOREM TAX PROCEDURES" and "CITYAPPLICATION OF THE PROPERTY TAX CODE" in the
Official Statement for a description of the Issuer's taxation procedures.
(N The City adopted the tax,freeze.for persons 65 years ofage or old on November 4, 2008.
The 2008 Tax Year
values will be used as the "Base Values" and the first freeze loss occurred in the 2009 Tax Year.
Source: Lamar County Appraisal District
GENERAL OBLIGATION BONDED DEBT PRINCIPAL
TABLE 2
General Obligation Debt Principal Outstanding: (As of September 30, 2011)
Combination Tax and Revenue Certificates of Obligation, Series 2002
$ 4,015,000
General Obligation Refunding Bonds, Series 2003
2,710,000
General Obligation Refunding Bonds, Series 2010
13,355,000°1
Combination Tax and Revenue Certificates of Obligation, Series 2010
3,005,000
Total Gross General Obligation Debt Principal Outstanding
23,085,000 te1
Less: Self-Supporting General Obligation Debt Principal
General Obligation Refunding Bonds, Series 2003 (52.00%) 1,409,200
General Obligation Refunding Bonds, Series 2010
(Excludes that portion of the 2010 Refunded Obligations (Series 2000 COs) used 100% for Gen Fund purposes) 9,845,000
Total Self-Supporting General Obligation Debt Outstanding Following the Issuance of the Bonds 11,254,200
Total Net General Obligation Debt Principal Outstanding Following the Issuance of the Bonds $ 11,830,800
General Obligation Interest and Sinking Fund Balance as of September 30, 2011 $ 2,082,005
Ratio of Gross General Obligation Debt Principal to 2011-2012 Freeze Adjusted Net Taxable Assessed Valuation 1.70%
Ratio of Net General Obligation Debt Principal to 2011-2012 Freeze Adjusted Net Taxable Assessed Valuation 0.87%
2011-2012 Freeze Adjusted Net Taxable Assessed Valuation $ 1,358,986,473
Population: 1980 - 25,498; 1990 - 24,699; 2000 - 25,898 Current (Estimate) 25,337
Per Capita 2011-2012 Freeze Adjusted Net Taxable Assessed Valuation $ 53,636
Per Capita Gross General Obligation Debt Principal $ 911
Per Capita Net General Obligation Debt Principal $ 467
Includes principal amount of $10, 750, 000 that was originally issued as water and sewer system revenue bonds and were
refunded as general obligation bonds from proceeds of the Series 2010 GO Refunding Bonds.
105
TABLE 3
PRINCIPAL TAXPAYERS 2011
% of Total 2011
2011 Net Taxable
Assessed
Name
Type of Property
Assessed Valuation
Valuation
Lamar Power Partners LP
Electric Utility
$ 199,223,960
14.66%
Kimberly Clark Corporation
Disposable Diaper Manufacturing
104,568,245
7.70
Campbell Soup
Food Manufacturing
37,797,291
2.78
Campbell Soup
Warehouse
35,315,400
2.60
Essent PRMC LP
Health Care Services / Hospital
30,955,371
2.28
Paris Generation LP
Utility
23,702,000
1.74
ONCOR Electric Delivery Company
Electric Utility
19,316,640
1.42
Silgan Can Company
Can Manufacturing
15,213,190
1.12
Essent PRMC LP
Health Care Services / Clinic
13,245,390
0.97
Kimberly Clark Corporation
Warehouse
12,100,240
0.89
Total
$ 491.43.727
36.16
Based on a 2011 Freeze Adjusted Net Taxable Assessed Valuation of
$ 1,358,986,473
Source: Lamar Counly Appraisal Di trict
PROPERTY TAX RATES AND COLLECTIONS t.l TABLE 4
Tax
Net Taxable
Tax
Tax
% Collections
Year
Year
Assessed Valuationo)
Rate
Levy
Current
Total
Ended
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
7,837,300
96.71%
97.25%
9-30-09
2009
1,405,294,035
0.52000
7,797,457
97.78%
97.78%
9-30-10
2010
1,380,460,473
0.52000
7,590,855
97.65% t0
97.65%
9-30-11
2011
1,358,986,473
0.52000
7,551,650
71.69% td>
71.69%
9-30-12
Note: Although "Total" tax collection percentages in this table include delinquent tax collections, they are allocated to the year they were
originally levied instead of the year in which they were collected
See "AD VALOREM TAX PROCEDURES" and "CITY APPLICATION OF THE PROPERTY TAX CODE" in the OfcialSmtement fora description of
the Issuer's taxation procedures.
rnl Certified Values may change during the tax year due to various supplements and protests, and valuations reported on a different dale may not match
those shown on this table. Net Taxable Assessed Valuations for tax years 1999 through 1007 are as shown in the City's 2008 Comprehensive Annual
Financial Report.
u 2010 Tax Year figures are as ofSeptember 30, 2011 (Audited).
rdl Current 1011 Tax Year figures are as ofFebniary, 1, 2012.
Source: The Lamar County Appraisal District and the City's 2010 Comprehensive Annual Financial Report.
TAX RATE DISTRIBUTION TABLE 5
2011-12 2010-11 2009-10
200849
2007-08 2006-07
2005-06 2004-05 2003-04
General Fund $ 0.41000 $ 0.41713 $0.42439
$0.43113
$0.46526 $0.49294
$0.56650 $0.57977 $0.57289
I & S Fund 0.11000 0.10287 0.09561
0.08887
0.09474 0.09931
0.12575 0.11248 0.12211
Total L0.52000 $0.52000 11=
. 0 000
$Q.= $0 ~2225
+lal
Sources: Texas Municipal Report published by the Municipal Advisory Council of Texas and the Lamar County Appraisal District.
106
MUNICIPAL SALES TAX TABLE 6
The issuer has adopted the provisions of Chapter 321, as amended, Texas Tax Code. In addition, some issuers are subject to
a property tax relief and/or an economic and industrial development tax.
The voters of the City approved the imposition of a 1/4
cent additional sales tax to be used for property tax reduction and a 1/4 cent sales tax for economic developmen
t purposes.
Levy of the additional sales taxes began
on October 1,
1993, and the City received its fi
rst payment in December 1993.
Collections on a fiscal year basis are as foll
ows:
City Collections as
Equivalent of
Fiscal Total
1.00%
0.25%
% of Ad Valorem
Ad Valorem
0.25%
Year Collected
CCU Prop Tax Red
Tax Levy
Tax Rate
EDC
2002-03 $ 5,619,187 $
3,746,125 $
936,531
64.12%
$ 0.45
$ 936,531
2003-04 5,782,790
3,855,193
963,798
64.51%
0.45
963,798
2004-05 6,005,911
4,003,941
1,000,985
64.48%
0.45
1,000,985
2005-06 6,440,845
4,293,897
1,073,474
69.99%
0.48
1,073,474
2006-07 6,727,939
4,485,293
1,121,323
70.65%
0.42
1,121,323
2007-08 6,900,209
4,600,139
1,150,035
72.31%
0.40
1,150,035
2008-09 7,645,512
5,097,008
1,274,252
81.29%
0.42
1,274,252
2009-10 7,012,193
4,674,795
1,168,699
74.94%
0.39
1,168,699
2010-11 7,214,963
4,809,975
1,202,494
78.55%
0.41
1,202,494
2011-12(a) 3,075,024
2,050,016
512,504
33.93%
0.18
512,504
Colleclions.for Fiscal Year 2011-2012 are through February 29, 2012 (five months only).
Source: State Comptroller of the Slate of Texas Website.
Note: Fiscal Year sales tax revenue totals represent monthly revenues received from the State by the City from October
through September of each fiscal year.
The remainder of this page is intentionally left blank.
107
WATERWORKS AND SEWER SYSTEM OPERATING STATEMENT TABLE 7
Fiscal Year Ended September 30
Operating Revenues
2011
2010
2009
2008
2007
2006
2005
Water Sales and Taps
$ 8,336,146
$ 8,072,440
$ 7,745,873
$ 7,641,122
$ 7,256,997
$ 7,539,449
$ 7,069,193
Sewer Charges and Taps
4,951,015
4,968,912
5,172,748
4,714,273
4,711,135
4,886,837
4,670,660
Service Charges
164,094
162,454
163,181
180,081
67,910
60,830
55,759
Industrial Surcharges
94,369
210,511
198,029
169,018
122,719
133,474
161,330
Miscellaneous
175,217
166,440
268,935
239,455
132,144
189,996
134,209
Investment Earnings
162,374
103,220
212,479
309,586
367,601
284,899
70,730
Total Revenues
13,883,215
13,683,977
13,761,245
13,253,535
12,658,506
13,095,485
12,161,881
Expenses (h)
7,201,866
6,732,799
7,244,274
6,873,535
6,613,931
6,665,832
5,923,360
Net Revenue Available for Debt Service
$ 6,681,349
$ 6,951,178
$ 6,516,971
$ 6,380,000
$ 6,044,575
$ 6,429,653
$ 6,238,521
Annual Revenue Bond Requirements
$ -
$ 1,088,669
$ 2,174,545
$ 2,177,164
$ 2,182,054
$ 2,182,496
$ 2,029,243
Coverage of Annual Revenue Bond
Requirements
All Obligations Paid from
System Revenues
Coverage of Annual Requirements on all
Bonds Paid from System Revenues
Customer Count:
Water
Sewer
6.39 x 3.00 x 2.93 x 2.77 x 2.95 x 3.07 x
$ 3,805,992 $ 1,624,011 $ 3,948,712 $ 3,949,633 $ 3,951,188 $ 3,955,095 $ 3,828,166
Does not include Sanitation Billing Fees of $
(b) Excludes depreciation
1.76 x
4.28 x
1.65 x
1.62 x
1.53 x
1.63 x
1.63 x
9,834
9,942
9,901
9,982
9,979
9,803
9,865
9,455
9,450
9,441
9,533
9,547
9,363
9,444
77,296 $
69,729 $
67,947 $
68,304 $
68,611 $
69,006 $
69,700
108
WATER RATES TABLE 8
(Rates Effective August 1, 2011)
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"
$9.05 for first 200 Cubic Feet
$3.06 / 100 Cubic Feet
1" and Larger
$44.12 for first 1,000 Cubic Feet
$3.06 1 100 Cubic Feet
Commercial I 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"
$11.32 for first 200 Cubic Feet
$3.141 100 Cubic Feet
1" - 2"
$45.28 for first 1,000 Cubic Feet
$2.57 1100 Cubic Feet
Larger than 2"
$162.55 for first 3,000 Cubic Feet
$2.57 1100 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"
$2,761.00 for first 100,000 Cubic Feet
$2.57 / 100 Cubic Feet
6"
$4,005.00 for first 150,000 Cubic Feet
$2.57 1100 Cubic Feet
8" and Larger
$5,341.00 for first 200,000 Cubic Feet
$2.57 / 100 Cubic Feet
Source: The issuer's current Water and Sewer Rates Ordinance
PRINCIPAL WATER CUSTOMERS 2010-11 TABLE 9
(October 1, 2010 through September 30, 2011) (Unaudited)
2010-2011
2010-2011
Average Monthly
Average
Name of Customer
Product
Consumption (Cu Ft.)
Monthly Bill
Campbell Soup Company
Soups/Juices/Sauces
13,754,422
$ 134,346
Lamar County Water Supply
Water District
13,264,013
101,283
Lamar Power Partnerslai
Electric Utility
11,637,883
21,543
Paris Generation
Electric Utility
1,287,551
19,815
Kimberly Clark
Disposable Diapers
1,129,817
28,076
Paris Regional Medical Center
Medical Care
410,263
11,399
Paris Housing Authority
Multifamily Housing
190,568
4,821
Sara Lee Bakery
Food
188,275
7,327
MJC Water District
Water District
186,837
4,724
Paris Independent School District
Public School Education
173,106
6,713
Paris Junior College
Higher Education
164,600
4,334
Totals 42,387,335
$ 344,381
(a) Includes raw water consumption
Source: Information from the issuer
109
SEWER RATES TABLE 10
(Rates August 1, 2011)
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" $11.11 for first 200 Cubic Feet $4.50 / 100 Cubic Feet
1" and Larger $51.82 for first 1,000 Cubic Feet $4.50 / 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"
$14.80 for first 200 Cubic Feet
$4.68 / 100 Cubic Feet
1" - 2"
$51.82 for first 1,000 Cubic Feet
$4.68 / 100 Cubic Feet
Larger than 2"
$104.83 for first 2,000 Cubic Feet
$4.68 / 100 Cubic Feet
Source: The issuer's current Water and Sewer Rates Ordinance
PRINCIPAL SEWER CUSTOMERS 2010-2011 TABLE 11
(October 1, 2010 through September 30, 2011) (Unaudited)
Name of Customer
Product
Kimberly-Clark
Disposable Diapers
Paris Regional Medical Center
Medical Care
Sara Lee Bakery
Food
Paris Housing Authority
Multifamily Housing
Texas Highway Department
Public Transportation
Paris Junior College
Higher Education
Paris Independent School District
Public School Education
Bettes Enterprises
Car Wash
Lamar County
County Government
Lamar County Human Resources Non-Profit Corp
2010-2011
2010-2011
Average Monthly
Average
Consumption (Cu Ft.)
Monthly Bill
585,231
$ 24,721
312,800
13,609
188,275
8,188
190,568
8,105
141,833
6,035
135,150
5,874
91,290
4,098
89,810
3,807
85,572
3,654
85,077
3,626
Totals 1,905,606
$ 81,717
Source: Information from the issuer
110
OVERALL COMPLIANCE, INTERNAL CONTROLS
AND FEDERAL AWARDS SECTION
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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. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations.
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
R. E. BOSTWICK, CPA
STEVEN W.MOHUNDRO,CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA
RUSSELL P. WOOD, CPA
DEBRA J. WILDER, CPA
228 SIXTH STREET S.E.
PARIS, TEXAS 75460
903-784-4316
FAX 903-784-4310
304 WEST CHESTNUT
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 financial 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, 2011, which collectively comprise the City of Paris, Texas',
basic financial statements and have issued our report thereon dated March 29, 2012. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Paris, Texas', internal control over financial reporting as
a basis for designing our auditing 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 performing 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 that 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 not necessarily identify all deficiencies in internal control that might be significant deficiencies
or material weaknesses. We 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 reasonable 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
112
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and City Council
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, 2012
113
McCLANAHAN AND HOLMES, LLP
a. .uaawaa. ' yuw ~au~ r.. ~'t, uu~v. ti\\~~ ru. PAM
City of Paris, Texas
Summary Schedule of Prior Audit Findings
Fiscal Year Ended September 30, 2011
Finding/Recommendation Current Status
None
114
City of Paris, Texas
Schedule of Findings and Questioned Costs
For the Fiscal Year Ended September 30, 2011
Section I - Summary of Auditor's Results
Financial Statements
Type of auditors' report issued: Unqualified
Internal control over financial reporting:
Material Weakness(es) identified?
Reportable condition(s) identified that are not considered to be
material weakness(es)?
Noncompliance material to financial statements noted?
Federal Awards
Internal control over major programs:
Material weakness(es) identified?
Reportable conditions(s) identified that are not considered to be
material weakness(es)?
yes X no
yes X none reported
yes X no
yes X no
yes X none reported
Type of auditors' report issued on compliance for major programs: Unqualified
Any audit findings disclosed 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 distinguish 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
115
City of Paris, Texas
Corrective Action Plan
For the Fiscal Year Ended September 30, 2011
Not Applicable
116
McClanahan and Holmes, LLP
CERTIFIED PUBLIC ACCOUNTANTS
R. E. BOSTWICK, CPA
STEVEN W. MOHUNDRO, CPA
GEORGE H. STRUVE, CPA
ANDREW B. REICH, CPA
RUSSELL P. WOOD, CPA
DEBRA J. WILDER, CPA
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
228 SIXTH STREET S.E.
PARIS, TEXAS 75460
903-784-4316
FAX 903-784-4310
304 WEST CHESTNUT
DENISON, TEXAS 75020
903-465-6070
FAX 903-465-6093
1400 WEST RUSSELL
BONHAM. TEXAS 75418
903-583-5574
FAX 903-583-9453
Compliance
We have audited the compliance of the City of Paris, Texas, with the types of compliance requirements described in the
U.S. Office of Management and Budaet (OMB) Circular A-133 Compliance Supplement that are applicable to each of
its major federal programs for the year ended September 30, 2011. 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 laws, regulations, contracts, and grants applicable to its major federal programs is the
responsibility of the City's management. 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 material 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 Paris, Texas, complied, in all material respects, with the requirements referred to above that
are applicable to its major federal programs for the year ended September 30, 2011.
Internal Control Over Compliance
The management of the City of Paris, Texas, is responsible for establishing and maintaining effective internal control
over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In
planning and performing our audit, we considered the City's internal control over compliance with requirements that
could have a direct and material effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness
of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Paris,
Texas', internal control over compliance.
117
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
Honorable Mayor and City Council
City of Paris, Texas
Page 2
A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does
not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect
noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is
a control deficiency, or combination 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 material 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 internal 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 did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses, as defined 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 specified parties.
Aa,weIZZ444 A441, /jc,~4/ Lu-)
Certified Public Accountants
Paris, Texas
March 29, 2012
118
McCLANAHAN AND HOLMES, LLP
City of Paris, Texas
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2011
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Health and Human Services
Passed Through Texas Department of State Health Services:
Special Supplemental Food Program for Women,
Infants, and Children
Inmunization Grants
Preventative Health and Health Services
Block Grant
Maternal and Child Health Services Block Grant
to the States
Total U.S. Department of Health and Human Services
U.S. Department of Housing and Urban Development
Passed Through Texas Department of Rural Affairs:
Community Development Block Grants/
Entitlement Grants
HOME Invested Partnerships Program
Federal
CFDA Project
Number Number
10.557
93.268
93.991
93.994
14.218
14.239
Total U.S. Department of Housing and Urban Development
U.S. Department of Justice
Direct Program:
Edward Byrne Memorial Justice Assistance
Grant Program 16.738
Total Direct Program
Passed Through Texas Criminal Justice Division:
Edward Byrne Memorial Formula Grant Program 16.579
Total Passed Through Texas Criminal Justice Division
Total U.S. Department of Justice
Total Expenditures of Federal Awards
119
2009-030034
2009-028474
2009-028229
2009-029467
728056
1001053
1000930
2007-DJ-BX-1323
2008-DJ-BX-0347
2009-DJ-BX-0323
PI-04-A10-18226-02
Expenditures
$ 275,995
106,310
109,843
2,861
495,009
97,459
350
30,000
127,809
895
9,971
12,070
22,936
146,847
146,847
169,783
$ 792,601
City of Paris, Texas
Notes on Accounting Policies for Federal Awards
For the Year Ended September 30, 2011
Note 1: Basis of Presentation
The accompanying schedule 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 requirements 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.
120
City of Paris, Texas
Special Supplemental Food Program
for Women, Infants, and Children
Schedule of Revenues and Expenditures
For the Year Ended September 30, 2011
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 - 09/30/09
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
es
Indirect Char
000 -
18
1,054
1,054
16,946
g
,
Total Expenditures
288,228 -
275,995
275,995
12,233
Excess Revenues
Over Expenditures
$ - $ -
$ -
$ -
$ -
121
City of Paris, Texas
Edward Byrne Memorial Formula Grant Program
For the Schedule of Revenues and Expenditures
Year Ended September 30, 2011
Federal Financial Assistance
Federal Grantor: United States Department of Justice
Pass Through Grantor: Texas Criminal Justice Division
CFDA Number
Project Number
Contract Period 10/01/08 - 09/30/09
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 $ - $ - $ - $ - $ -
122
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