May 07, 2025 BAYTOWN AREA WATER AUTHORITY SPECIAL MEETING

NEXT, WE WILL CONSIDER A RESOLUTION AUTHORIZING A NEW UNTREATED WATER SUPPLY CONTRACT WITH THE CITY OF HOUSTON.

MOTION CARRIES.

[a. Consider a resolution authorizing a new Untreated Water Supply Contract with the City of Houston.]

GOOD AFTERNOON.

SORRY.

GOOD AFTERNOON, MADAM PRESIDENT AND UH, BOARD.

THIS ITEM IS A NEW, UH, UNTREATED WATER SUPPLY CONTRACT WITH THE CITY OF HOUSTON.

WE, UH, THE PRIMARY PURPOSE OF THE CONTRACT IS TO EXTEND THE TERM OF THE CONTRACT.

IT, UH, CURRENTLY EXPIRES IN 2040, AND AS YOU KNOW, WE ARE, UM, ISSUING, UM, DOING THE BIO EAST EXPANSION AND THERE WILL BE DEBT THAT WILL BE ISSUED AS A RESULT OF THAT NEW PROJECT.

AND SO, UM, IT WAS A REQUIREMENT THAT OUR WATER SUPPLY CONTRACT HAVE THE SAME TERM AS THE DEBT WE ARE ISSUING.

SO WE PLAN ON ISSUING 30 YEAR DEBT.

AND SO WE NEED TO SHOW THAT WE HAVE A WATER SUPPLY CONTRACT FOR 30 YEARS.

SO THAT, THAT IS THE, UH, PRIMARY PURPOSE OF GETTING THE NEW CONTRACT.

UM, IT IS A NEW CONTRACT RATHER THAN ANOTHER AMENDMENT.

THE CITY OF HOUSTON HAS A NEW CONTRACT FORM AND SO THEY WANTED TO GET US ON THEIR NEW FORM.

UM, FOR THE CURRENT OPERATIONS, THERE IS REALLY NO, UH, CHANGE IN, IN, UM, YOU KNOW, THAT WILL BE A RESULT OF THE NEW FORM OF THE CONTRACT.

UH, POSSIBLY IN FUTURE IF WE REQUEST ANOTHER INCREASE IT, IT MAY HAVE SOME IMPACTS THEN.

UM, SO THE, THE CONTRACT AS PROPOSED WOULD, UH, EXPIRE DECEMBER 31ST, 2055.

SO, UH, STAFF RECOMMENDS APPROVAL.

DO I HAVE A MOTION? I'LL MAKE THE MOTION.

DO I HAVE A SECOND? I'LL SECOND.

QUESTIONS, DISCUSSION.

SO IF I HEARD YOU RIGHT, NO REAL VERBIAGE CHANGES, UH, RATE INCREASES? WELL, THERE WAS VERBIAGE CHANGES.

UH, HOWEVER, IT'S NOT GOING TO IMPACT ANYTHING WE DO CURRENTLY THERE.

THERE'S NO CHANGE CURRENTLY TO OUR CURRENT OPERATION.

AND, UM, THE BIGGEST CHANGE, I BELIEVE IS IF WE REQUEST ADDITIONAL CAPACITY.

UH, THERE'S A CLAUSE IN THERE ABOUT, UM, HAVING TO PAY FOR THAT ADDITIONAL CAPACITY RESERVATION, WHETHER YOU USE THAT CAPACITY OR NOT.

UM, BUT IT DOESN'T APPLY TO US RIGHT NOW BECAUSE WE'RE, WE'RE NOT ASKING FOR ADDITIONAL CAPACITY.

AND, AND WE'RE REALLY NOT SCHEDULED TO, UM, UH, EXPAND BOW EAST AGAIN UNTIL PROBABLY ABOUT 2040 OR, OR AROUND THERE.

SO, AND AT THAT POINT, WOULD WE DO AN AMENDMENT TO THIS NEW ONE? YES.

RIGHT.

AND THE REASON FOR THE CONSOLIDATION IS JUST THAT THEY CHANGED THE WAY THAT THEY, THEY HAVE A NEW CONTRACT FORM THAT THEY'RE GETTING EVERYBODY ON, SO THEY DIDN'T WANT TO, AND, AND THE ORIGINAL CONTRACT, I THINK WAS FROM 91.

IS THAT YEAH, IT SAYS 91 9.

94 94.

SO IT'S AN OLD FARM.

THEY JUST WANTED TO GO TO THEIR NEWER CONTRACT.

THIS, UH, TALKS ABOUT ISSUING, UH, THESE 30 YEAR BONDS.

IN THE NEXT ITEM, THERE'S DISCUSSION ABOUT SOMETHING CALLED SWIFT.

YES, SIR.

IS THIS THE SAME? UH, YES SIR.

SO THERE WE'RE REFER WHAT'S REFERRED TO AS BONDS HERE IS REFERRED TO AS A LOAN IN THE NEXT IT IS, IT IS.

IT'S, WE, WE WEREN'T, I GUESS, UH, INITIALLY WE KNEW THEY HAD TO BE DEBT.

UM, SO IF WE DON'T GET THE SWIFT, UH, APPLICATION APPROVED, THEN WE HAVE TO ISSUE OTHER DEBT, BE REVENUE BONDS OR SOMETHING.

RIGHT, RIGHT.

UH, BUT OUR INTENT IS TO APPLY FOR THE SWIFT LOANS AND GET A LOAN THROUGH THE TEXAS WATER DEVELOPMENT BOARD.

AND THAT THAT WILL BE COVERED ON THE NEXT ITEM.

THERE'S A, IN THE CONTRACT, IT, IT, AND I'M SORRY, THIS IS JUST FOR MY INFORMATION 'CAUSE I'M STILL TRYING TO CATCH UP

[00:05:01]

WITH ALL THIS.

IT TALKS ABOUT RETURN FLOWS TO HOUSTON, BELONGING TO HOUSTON.

WHAT IS THE RETURN FLOW AND HOW DOES THAT ORIGINATE? I'M NOT SURE THERE, THERE SHOULD BE NO RETURN FLOWS.

UM, I THINK THAT WOULD BE THE CASE IF WE, SO WE TAKE WATER FROM, UH, COASTAL WATER AUTHORITY CANAL.

IF WE DISCHARGE ANYTHING BACK INTO COASTAL WATER AUTHORITY CANAL THAT WOULD BELONG TO THE CITY OF HOUSTON.

WE CAN'T, YOU KNOW, TAKE BACK SOMETHING WE'VE DISCHARGED.

WHY WOULD WE BE DISCHARGING WATER? WE, WE SHOULDN'T.

THAT'S, YOU KNOW, JUST PART OF THEIR STANDARD CONTRACT.

WE OKAY.

WE ORDINARILY WE'RE NOT GONNA DISCHARGE BACK INTO A CANAL.

FRANK, DOES THAT, UH, DOES THAT RESTRICT US ON, UH, GRAY WATER REUSE? I DON'T THINK SO.

I, I THINK THAT'S JUST DEALING WITH THE COASTAL WATER AUTHORITY CANAL AND STATE OF HOUSTON HAS RIGHTS TO THAT, SO.

OH, OKAY.

I'M JUST CURIOUS ABOUT WHAT THAT MEANT.

MOTION CARRIES UNANIMOUSLY.

ALL RIGHT.

DOES ANYONE ELSE HAVE A QUESTION OR NEED CLARIFICATION? IF NOT, ALL THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? LIKE, SIGN.

CONSIDER A RESOLUTION AUTHORIZING THE SUBMISSION OF A STATE WATER IMPLEMENTATION FUND FOR TEXAS SWIFT LOAN APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD IN THE AMOUNT OF $69 MILLION FOR THE AUTHORITIES EUR WATER TREATMENT PLANT PHASE TWO EXPANSION.

UM, NEXT, WE WILL

[b. Consider a resolution authorizing the submission of a State Water Implementation Fund for Texas (SWIFT) loan application to the Texas Water Development Board (TWDB) in the amount of $69,000,000.00, for the Baytown Area Water Authority East Surface Water Treatment Plant Phase II Expansion Project.]

YES, MA'AM.

UH, AS YOU STATED, THIS IS, UH, THIS ALLOWS STAFF TO SUBMIT AN APPLICATION FOR, UM, STATE WATER IMPLEMENTATION FUND, UH, LOAN APPLICATION.

SO IT WOULD, UM, IT WOULD BE A, UH, LOAN FOR 30 YEARS AND IT WOULD BE USED TO EXPAND OUR, UH, BIO EAST PLANT.

UM, WE STARTED, UM, I GUESS WHEN WE STARTED THE PROJECT, WE, UH, DECIDED TO PURSUE THE, UH, SWIFT FUNDS.

UH, AS, AS SUCH WE ADDED THIS PROJECT TO THE STATE WATER PLAN, UH, WHICH WE'VE SUCCESSFULLY DONE THAT.

SO THAT WAS, UH, YOU KNOW, THE FIRST STEP IN THAT.

AND, UM, SO NOW WE ARE AUTHORIZED TO SUBMIT OUR APPLICATION AND WE'RE ASKING THE BOARD TO, UH, ALLOW US TO SUBMIT THE APPLICATION.

AND THEN WE WOULD GET NOTIFIED LATER THIS YEAR IF WE, IF WE, UH, ARE APPROVED.

AND THIS, THIS, AS I SAID, IS INTENT TO FUND THE EXPANSION.

UH, WE HAVE, UH, 69 MILLION AS THE AMOUNT OF THE LOAN AT SOME, I'M SORRY.

AT SOME POINT IN HERE, I, I'D LIKE TO CALL FOR A MOTION IN A SECOND.

OH, WE DIDN'T MOTION.

AND THEN WE, WE CAN HAVE QUESTIONS.

WHAT IS THE, AND I'M SORRY, JUST FOR THE PURPOSE OF THE RECORD, WHAT IS THE MOTION, UH, THAT WE APPROVE THE, UH, SUBMISSION OF THE APPLICATION? OKAY, I SECOND PROCEED.

UM, SOMEWHERE IN HERE I SAW THAT THIS IS A LOW TAR, LOW INTEREST LOAN, UH, COMPARABLE TO BOND RATES, LESS THAN BOND RATES.

UM, I'LL SEE IF, UM, OUR BOND COUNCIL KNOWS THE RATES.

I I BELIEVE IT'S SUPPOSED TO BE, UH, BELOW THE MARKET RATE.

IT'S TYPICALLY, CAN YOU COME, MA'AM, WOULD YOU COME? IF YOU WANT TO SPEAK, CAN YOU COME TO THE MICROPHONE AND STATE YOUR NAME FOR THE RECORD? YEP.

LINDSAY KOVAR.

BGE.

SO YES, YOU GET SUBSIDIZED RATES AS A PART OF THIS PROGRAM.

SO IT IS USUALLY LOWER THAN MARKET FUND RATES.

AND YES.

AND, AND JONATHAN FRAS WITH BRACEWELL.

UM, THE OTHER THING I WANNA CLARIFY IS WHEN YOU'RE MAKE, WHEN YOU'RE RECEIVING A SWIFT LOAN FROM THE WATER DEVELOPMENT BOARD, YOU ARE GOING TO ISSUE REVENUE BONDS TO THE WATER DEVELOPMENT BOARD TO EVIDENCE THAT LOAN.

SO WHAT WE'RE TALKING ABOUT BONDS AND THE LOAN, THEY'RE ALL ONE THING, UH, BECAUSE THEY HAVE TO GET SOME INSTRUMENT BACK FROM THE WATER AUTHORITY TO EVIDENCE THE LOAN THAT THEY'RE GIVING.

AND SO WHEN YOU DO THAT, UH, LATER THIS YEAR, THEY'LL GIVE US A, A LIST OF THE INTEREST RATES ASSOCIATED WITH IT.

AND IT'S A SCALE THAT THAT SHOWS WHAT THE, UH, UH, WHAT THE, WHAT THE SUBSIDIZED RATES ARE, UH, FOR THESE TYPES OF PROJECTS.

GOING TO SELL THEM TO WILL BE DIFFERENT AND THE PROCESS WILL BE DIFFERENT AND THE FEES WILL BE DIFFERENT.

SO, SO WE'RE GONNA, IF WE GET APPROVED, WE'RE GOING TO ISSUE REVENUE BONDS AND IF WE DON'T GET APPROVED, WE'RE GONNA ISSUE REVENUE BONDS.

YES, SIR.

THAT'S THE WAY THAT IT WOULD WORK.

IT'S THE, THE PERSON TO WHOM YOU'RE

[00:10:01]

UM, YEAH.

THEY, THEY THEY WILL BE, BUT THE BIGGEST DIFFERENCE WILL BE, UH, KIND OF THE INTEREST RATE DIFFERENCES ASSOCIATED WITH IT, BECAUSE YOU'RE GETTING THAT SUBSIDIZED RATE FROM THE WATER DEVELOPMENT MORTGAGE.

AND THE SECOND QUESTION I HAVE IS SOMEWHERE I SAW THAT WE'RE ELIGIBLE FOR PRINCIPAL LOAN FORGIVENESS OF ALMOST $72 MILLION.

HOW DO WE GET $72 MILLION OF PRINCIPAL REDUCTION IF WE'RE ONLY BORROWING $69 MILLION? THAT, THAT IS A DIFFERENT PROJECT.

THAT'S A DIFFERENT PROJECT.

SO, UM, IF YOU RECALL THE TCQ RECENTLY PUT OUT THAT YOU HAVE TO REGULATE FOR PFAS, WHICH IS THE FOREVER CHEMICALS.

UM, THAT IS NOT GONNA BE A PART OF THIS EXPANSION BECAUSE IT, UM, REQUIRES SOME ADDITIONAL TESTING AND SOME THINGS THAT JUST FRANKLY, MESS WITH YOUR SCHEDULE SO MUCH YOU WOULDN'T GET THIS BUILT IN TIME.

ALSO, THE OTHER REASON WE'RE GONNA DO IT FROM A SEPARATE PROJECT, BECAUSE THAT, UM, PROGRAM FROM TWDB, THE DRINKING WATER SRFC, THEY HAVE WAY TOO MANY ACRONYMS. EMERGING CONTAMINANT PROGRAM IS SPECIFIC FOR TREATING FOR REGULATORY ITEMS LIKE PFAS.

YOU CANNOT USE THAT FUNDING FOR EXPANSIONS.

SO IF WE WOULD'VE TRIED TO KEEP PFAS IN THIS EXPANSION, IT COULD HAVE HURT YOUR ELIGIBILITY FOR THAT PRINCIPAL LOAN FORGIVENESS.

SO WE'VE SEPARATED IT INTO TWO DIFFERENT PROJECTS.

SO THIS 69 MILLION LOAN IS FOR THE EXPANSION.

THE 72 MILLION FORGIVENESS IS FOR PFAS TESTING, DESIGN, AND CONSTRUCTION OF TREATMENT AT BOTH OF YOUR WATER PLANTS.

SO WE'VE GOT TWO SEPARATE PROJECTS GOING ON.

I, YES, SIR.

DIDN'T READ THAT CORRECTLY, I GUESS.

OPPOSED? UH, MOTION CARRIES UNANIMOUSLY.

NO, IT'S CONFUSING.

ALL RIGHT.

DOES ANYONE ELSE HAVE A QUESTION OR, UM, DISCUSSION CONCERNING THE SWIFT LOAN APPLICATION? IF NOT, I WOULD CALL FOR THE VOTE.

ALL THOSE IN FAVOR? AYE.

AYE.

REPORT SECTION OF THE AGENDA AND RECEIVE A STATUS REPORT ON THE AUTHORITIES EAST EXPANSION PROJECT.

UM, WE'LL MOVE TO THE

[a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project.]

GREAT.

THAT'S ME AGAIN.

SO, UM, I DO HAVE OUR SLIDES.

THESE ARE ONES THAT Y'ALL HAVE SEEN PRETTY REGULARLY.

THESE ARE ONES I'M GONNA KEEP SO I CAN KEEP CONSISTENCY ON THE STATUS.

SO WHERE WE ARE WITH THE PROJECT IS WE HAVE RECEIVED THE 30% BASED DESIGN FROM, UM, BWP.

THAT'S YOUR TEAM WORKING ON IT.

WE'VE RECEIVED IT.

WE'VE ALREADY COMMENTED ON IT.

UM, I WILL SAY OVERALL WE WERE HAPPY, YOU KNOW, WITH THE DESIGN, OF COURSE THERE ARE SOME COMMENTS AND DISCUSSIONS THAT ARE STILL HAPPENING.

UM, BUT OVERALL WE WERE, WE WERE HAPPY WITH IT.

WE PROVIDED THOSE COMMENTS AND

[b. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending September 30, 2024.]

THEY ARE NOW MOVING INTO THEIR 60% DESIGN SUBMITTAL.

WE ALSO RECEIVED, UM, SORRY, WE ALSO RECEIVED THE 30% BASELINE COST MODEL FOR THE PROJECT.

UM, WE JUST RECEIVED THAT.

WE'VE PRESENTED SOME INITIAL COMMENTS BACK TO THEM LAST WEEK AND WE'RE HOLDING A WORKSHOP WITH THEM TOMORROW TO GO OVER THOSE COSTS AND TO, TO GO OVER OUR COMMENTS, UH, TO THE COST MODEL AS WELL.

SO THERE, THERE WILL BE MORE TO COME ON THAT CLOSER TO THE 60%, BUT THERE'S STILL JUST A LOT OF REVIEWS AND DISCUSSION HAPPENING WITH BOTH THE DESIGN AND THE COST MODEL RIGHT NOW.

UM, I BELIEVE YOU'VE SEEN THIS, BUT THIS IS JUST KIND OF A GOOD OVERVIEW OF WHAT THE DESIGN CURRENTLY LOOKS LIKE, YOU KNOW, FOR THIS SYSTEM.

I KNOW WE, WE HAD GOTTEN QUESTIONS PREVIOUSLY ABOUT HOW MUCH OF THE ORIGINAL DESIGN WERE WE STILL USING RIGHT NOW.

I WOULD SAY THE MAJORITY OF THE ORIGINAL FACILITIES ARE GOING TO BE USED OR, UM, EXPANDED OR, OR USED THAT SAME DESIGN TO EXPAND, YOU KNOW, FACILITIES WITH A FEW EXCEPTION, BUT THE MAJORITY OF WHAT WE'LL SAY WHILE WE'RE CLEANING UP, ALSO SOME OPERATIONAL ISSUES.

SO THESE ARE JUST SOME FUN SCHEMATICS, YOU KNOW, OF THE PLANT.

UM, I ALREADY KIND OF TALKED ABOUT THIS A LITTLE BIT, BUT THIS IS KIND OF WHERE WE'RE AT.

WE'VE GOTTEN A PRELIMINARY DESIGN, THEY'RE MOVING ON TO 60%.

WE ANTICIPATE THE 60% DESIGNED TO BE THIS SUMMER.

UM, AND THAT'S ALSO WHEN WE'LL START GETTING INTO THE NEGOTIATIONS FOR THE GUARANTEED MAXIMUM PRICE CONTRACT AS WELL.

I'M GONNA SKIP MY SWIFT 'CAUSE WE'VE JUST TALKED ABOUT THAT QUITE A BIT, BUT I DO JUST WANNA MENTION WHAT YOU APPROVED TODAY REALLY IS THE RESOLUTION TO APPLY.

UM, THERE WILL BE FURTHER APPROVALS THAT Y'ALL WILL HAVE TO DO ONCE WE GET FURTHER INTO THE APPLICATION, YOU KNOW, FOR THE SWIFT, SO I'VE JUST KINDA LISTED 'EM HERE, JUST KIND OF SO YOU DON'T COME UP, YOU KNOW, IN THE NEXT MONTH.

GO, WAIT, I THOUGHT WE ALREADY APPROVED THIS.

YOU, YOU'VE APPROVED ONE PART, YOU KNOW OF IT AT THIS POINT.

SO CITY COUNCIL WILL MEET TO DO A RESOLUTION BASICALLY AGREEING, YOU KNOW, WITH THIS, THIS APPLICATION.

UM, IN FUTURE MEETINGS YOU WILL ALSO HAVE TO DO A RESOLUTION APPROVING THE FINANCE AGREEMENT WITH TWDB APPROVING A SEVENTH AMENDMENT TO THE WATER SUPPLY CONTRACT WITH CITY OF BAYTOWN, A BOND RESOLUTION THAT WILL

[00:15:01]

INCLUDE THE ESCROW AGREEMENT, PRIVATE PLACEMENT MEMO, AND PAR IN AGREEMENT.

AND THEN CITY COUNCIL WILL ALSO APPROVE THAT SAME SEVENTH AMENDMENT TO THE WATER SUPPLY AND AN ORDINANCE APPROVING THE BAAH BOND RESOLUTION.

SO ALL OF THAT IS TO COME.

WHAT IS, UH, SORRY, WHAT IS PAR AGREEMENT? I'M GONNA HAVE TO ASK THE EXPERT ON THAT ONE.

SORRY.

THE PAR AGREEMENT IS THE PAYING AGENT REGISTRAR AGREEMENT.

THE PAYING AGENTS, THE INDIVIDUAL THAT WHEN YOU'RE READY TO PAY PRINCIPAL AND INTEREST, YOU'LL PAY IT TO THEM AND THEN THEY'LL TRANSFER THOSE FUNDS TO THE WATER DEVELOPMENT BOARD.

OKAY, THANK YOU.

GOOD.

AND THEN THE LAST, AGAIN, WE'VE ALREADY TALKED ABOUT, WE DID SUBMIT ON YOUR BEHALF AN INTENDED USE PLAN TO THE TEXAS WATER DEVELOPMENT BOARD FOR THAT $72 MILLION PRINCIPAL LOAN FORGIVENESS, WHICH IS INTENDED FOR THE PFAS TREATMENT.

AND, BUT IT IS NOT JUST AT THE EAST PLANT.

IT IS AT BOTH, YOU KNOW, OF THE, THE PLANTS.

UM, I'M JUST GONNA MENTION, I KNOW 72 MILLION IS A, A VERY LARGE, UM, NUMBER, WHICH IS, UM, MAYBE OKAY.

'CAUSE IT'S GRANT.

SO, BUT THE, THE REASON WE DID THAT IS THAT'S THE TREATMENT THAT IS CURRENTLY MOST DESIRED.

IT HAS A HIGHER CAPITAL COST, BUT LOWER OPERATING COSTS, YOU KNOW, SO IF WE'RE GONNA GET PRINCIPAL FORGIVENESS, WE'D RATHER GET THAT THE HIGHER CAPITAL COST.

SO Y'ALL WILL HAVE LOWER, YOU KNOW, FUTURE COSTS AS WELL.

BUT WE'LL KIND OF HAVE TO WAIT.

THIS IS A PROGRAM THAT HAS A MAX AMOUNT TO GIVE OUT, YOU KNOW, TO, TO ENTITIES.

SO FAR THEY'VE BEEN ABLE TO GET OUT GENERALLY WHAT'S BEEN REQUESTED, BUT, UM, I HAVE A FEELING THEY'RE GONNA CONTINUE TO GET MORE OF THESE REQUESTS.

YOU KNOW, AS WELL AS THAT PFAS REGULATION, UM, REQUIREMENT GETS CLOSER AND CLOSER.

SO WE'RE A LITTLE BIT IN A WAIT AND SEE IF THEY WILL APPROVE THE FULL, YOU KNOW, 72 MILLION.

BUT IT'S GONNA TAKE USUALLY A FEW MONTHS BEFORE WE'LL HEAR BACK FROM THEM.

AND THIS IS SPECIFICALLY FOR THE CAPITAL NEEDED TO TREAT THE WATER, NOT SELECT THE TESTING BEFOREHAND OR ANYTHING.

IT'LL INCLUDE EVERYTHING.

IT INCLUDES THAT TOO.

YEAH.

IT'S THE, IT'S THE, THE WHOLE, UM, CRADLE TO GRAVE, YOU KNOW, PROJECT.

ALL RIGHT.

AND THAT'S MY LAST SIDE.

ANY OTHER QUESTIONS? UH, I'M SORRY.

AND THIS IS SOMETHING THAT WE'RE GONNA HAVE TO DO REGARDLESS OF WHAT HAPPENS WITH ANY OF THIS.

CORRECT.

THIS IS A NEW REGULATION FOR Y'ALL.

SO, AND I THINK A QUESTION IF YOU DO, IF YOU DON'T GET THIS FULL 72 MILLION LOAN FORGIVENESS, UM, YOU'LL HAVE TO THEN LOOK AT THE DIFFERENT TREATMENTS.

DO YOU SPEND MORE NOW OR DO YOU SPEND MORE, YOU KNOW, EACH YEAR.

BUT AGAIN, THE HOPE IS YOU GET THIS SO YOU DON'T HAVE TO TO MAKE THAT DECISION.

, THANK Y'ALL.

UH, NEXT WE WILL RECEIVE OUR QUARTERLY FINANCIAL AND INVESTMENT REPORTS.

UH, WE HAVE TWO, ONE FOR THE QUARTER ENDING SEPTEMBER 30TH, 2024.

AND ONE FOR THE QUARTER ENDING DECEMBER 31ST, 2024.

UH, GOOD EVENING BOARD.

UM, I AM PRESENTING THE FOURTH QUARTER FINANCIAL, WHICH IS KIND OF OUTTA ORDER 'CAUSE YOU'VE ALREADY RECEIVED THE AUDIT.

UM, SO I WILL JUST HIGHLIGHT THAT THE BUDGET REVENUE CAME IN AT 21.6 MILLION, WHICH WAS 130% OVER WHAT WAS BUDGETED.

AND THE EXPENDITURES WERE 107% OVER WHAT WAS BUDGETED, LEAVING US AT A WORKING CAPITAL BALANCE OF 10.9 MILLION.

FOR OUR CIP PROGRAM.

WE CAME IN AT 2.4 MILLION AND OUR EARNINGS FOR THE YEAR WAS 385,000 WITH A BOOK VAL BOOK VALUE BALANCE OF 14,259,000.

AND I'M HAPPY TO ANSWER ANY QUESTIONS.

DOES ANYONE HAVE ANY QUESTIONS ON THE SEPTEMBER 30TH REPORT? NO.

NO THANK YOU.

AND I'M HAPPY TO ANSWER ANY QUESTIONS.

AND THIS IS THE FIRST QUARTER AS WE ARE TRYING TO GET CAUGHT UP FOR FISCAL YEAR 25.

THIS IS THE FIRST QUARTER FINANCIAL REPORT.

UM, AND THIS ONE WE ARE CURRENTLY AT 5.2 MILLION, WHICH IS 25%, WHICH IS ACTUALLY ON TARGET FOR WHAT WE BUDGETED.

OUR EXPENDITURES ARE 5.5 MILLION, WHICH IS 28% OF OUR BUDGET AND FOR LEAVING US WITH ALSO STILL A WORKING CAPITAL BALANCE OF 10.6, $10.6 MILLION.

UM, OUR CIP PROGRAM IS, UM, AT 3.5 MILLION AND OUR BOOK VALUE FOR OUR INVESTMENTS AT THIS POINT IS 10.8 MILLION WITH INVESTMENT EARNINGS OF 140,000.

[00:20:01]

ANY, ANY QUESTIONS CONCERNING? NO.

WOULD SAY WE NOW WOULD LIKE TO RECEIVE THE MANAGER'S REPORT.

THANK YOU VERY MUCH.

UM, THAT WOULD CONCLUDE OUR REGULAR BUSINESS AND I

[a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, June 18, 2025, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ]

GOOD AFTERNOON.

UM, NOT TOO MUCH TO REPORT, UH, THIS MONTH, BUT WE DO HAVE OUR NEXT MEETING SCHEDULED FOR WEDNESDAY, JUNE 18TH AT, UH, 4:30 PM IN, UH, IN THIS VERY ROOM.

SO THAT'S ALL I HAVE UNLESS YOU ALL HAVE ANY QUESTIONS? NO.